By: Perry Coleman
Investors in Medical Marijuana, Inc’s (MJNA) showed their support for Dr. Sanjay Gupta’s recent apology about “misleading America” by not looking hard enough for the benefits of medical marijuana. The shares soared as high as 60% before declining in afternoon trading, most likely due to some profit taking, but still closed up a respectable 39.92% on the day. Volume for the day was over 37.4 million shares traded, far above the 4.7 million daily average traded.
Dr. Gupta’s revelation was completely unexpected and seemed to shock the medical marijuana community. At last count, his article “Why I changed my mind on weed” on CNN.com had 27,513 comments. The article, which was actually published on Thursday, didn’t prompt any initial response. But about one hour into the market open on Friday, the stock started to climb. “The Gupta Effect,” which is what some have dubbed the doctor’s effect on the market, may have had a little extra help: U.S. Attorney General Eric Holder spoke about sentencing reform in a National Public Radio (NPR) interview, which he expounded upon on Monday when he spoke to the American Bar Association.
The Gupta Effect
Dr. Gupta’s endorsement of marijuana having true medicinal value will most likely be one of the defining moments that helps legalization reform and the acceleration of research. His presence on the issue provides a gigantic leap of creditability. Dr. Gupta is “an American neurosurgeon and an assistant professor of neurosurgery at Emory University School of Medicine and associate chief of the neurosurgery service at Grady Memorial Hospital in Atlanta, Georgia.” (Citation 1) He also holds the title of CNN Chief Medical Correspondent and was asked to be Surgeon General of the United States.
His affiliation with CNN provides a media platform that is watched and respected around the world. Dr. Gupta had previously denounced the benefits of medical marijuana, so the endorsement didn’t come overnight. He cites significant research over the last year as the catalyst for his reversal—research that he shared during the CNN special documentary, WEED, which aired Sunday night.
The documentary was fair and balanced and examined the pros and cons of marijuana use from both medicinal and recreational perspectives. One of the most significant revelations he shared was that the component in marijuana that provides the most medical benefit is the cannabinoid cannabidiol (CBD), which is derived mostly from the hemp plant’s seed and stalk.
CBD does not get you high and is legal to consume in the United States. In fact, it can be purchased from the companies of Medical Marijuana, Inc’s (MJNA), PhytoSPHERE Systems and its intellectual property holder, CannaVest Corp (OTC: CANV). The companies are conducting research and are improving the quality and standardization of hemp-based CBD products.
The Holder Effect
Many, including members of congress, have been awaiting a response from Attorney General Eric Holder on how the Department of Justice (DOJ) would respond to the legalization of recreational use of marijuana in Washington state and Colorado. In his NPR interview, Holder offered some bold statements that seem to be precursors to a revolutionary policy shift for the DOJ. Categorizing current policies as “disastrous” and expressing the need for leadership to roll them back are very foretelling. His policies are expected to be the catalyst for the acceptance of wider reform initiatives that have to be vetted through the executive and legislative branches of government.
Obviously the title of this article is symbolic of the market reaction to Dr. Gupta’s apology and support of medical marijuana. It was chosen because there is a real benefit to the investors of MJNA, which includes the longer-term acceptance of the components of marijuana as legitimate products in the consumer market.
Two of the company’s products which are available now are CanChew gum and Real Scientific Hemp Oil (RSHO). These products come in high quality packaging that provides convenient, measured delivery of CBD that will not produce any intoxicating effects for users. This was a significant concern for parents highlighted in Dr. Gupta’s documentary in treating childhood epilepsy, who wanted their children to get the medical benefits of Cannabidiol without getting high.
I wrote a three part series on RSHO that highlights the evolution of this product and its many benefits which are linked below:
- Real Scientific Hemp Oil – Part I – The Journey From Commodity to Medicine
- Real Scientific Hemp Oil – Part II – The Journey from Commodity to Medicine
- Real Scientific Hemp Oil – Part III – The Journey from Commodity to Medicine
The hemp-based CBD products of Medical Marijuana, Inc. come with a Certificate of Analysis to verify CBD concentration. Most importantly of all, because their CBD products are derived from non-psychoactive hemp, both CanChew and RSHO are legal to purchase and consume in all 50 states without restrictions.
The need for more research and acceptance of the medicinal benefits of marijuana has received national attention through Dr. Gupta’s documentary. The next event on the horizon is Attorney General Holder’s speech, the outcome of which is being analyzed as this article is published. The tide has shifted for those who need the help that the components of marijuana can provide and both suffers and patient investors will be rewarded.
Dr. Gupta’s special will re-air Friday at 10:00PM on CNN. He has followed up with numerous interviews that offer new information on the topic. It looks like Dr. Gupta’s apology will continue to be followed by action.
Citation 1 – Website link: http://en.wikipedia.org/wiki/Sanjay_Gupta