Marijuana Company of America Inc. (OTC: MCOA) Analyst Report



Traders News Source Mission Statement

We strive to highlight the future potential as well as the inherent risk in each small cap company we cover while remaining neutral as a leading third-party equity research and corporate access firm.


Marijuana Company of America Inc. (OTC: MCOA) is a cannabis marketing and distribution company that distributes medical cannabis products providing product sourcing, branding, payment, distribution and knowledge.


During February 2017, MCOA announced that it entered into a non-binding LOI while performing due diligence to finalize a joint venture agreement with Bougainville Ventures, Inc. for the purpose of housing tenant growers engaging in the cultivation, processing and commercial availability of legal marijuana in the State of Washington.

Subject to final agreement, MCOA will invest up to $1 million in JV for 50% equity ownership and share in profits. While, Bougainville Ventures, Inc. will contribute its expertise in establishing the facilities.


***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP – SMS/text alert service for free, simply text the word “Traders” to the phone number “25827” from your cell phone***


During 2016, MCOA launched its flagship wellness product called hempSMART Brain. It’s a CBD product combined with a bunch of branded ingredients, and it can purportedly improve brain function and brain health. Management plans to distribute its product through a Multi Level Marketing (MLM) program.

MCOA’s MLM model might have the company positioned better than other cannabis names in the industry. California, Massachusetts, Maine, and Nevada voted to legalize marijuana for recreational use, while North Dakota, Arkansas, Montana, and Florida voted for medical use. This creates plenty of opportunities for MCOA to recruit new members and sell its hempSMART brand of products.


MCOA operates in Marijuana industry that has rapidly & recently turned into a multi-billion dollar massive growth market across US and Canada with many new states legalizing it. According to a recent estimates, cannabis market crossed $6.7 billion from the U.S. alone in 2016, and that sale of cannabis are set to rise to $22.8 billion in the U.S. by 2020.  Also, Combined recreational cannabis sales could total an estimated $40-$45 billion, if cannabis is legalized across the United States of America.

The company’s stock has unsurprisingly found some strength in the recent past. It has been powering due to the favorable impact of the company’s recent announcements and growing popularity & demand of the industry.

Description & about the Company:

Marijuana Company of America Inc. (OTC: MCOA) was founded in 2015 and is headquartered in Southern California. MCOA provides product sourcing, branding, payment, distribution, and knowledge base through architecture to maintain customer loyalty and capture market share. MCOA is developing a unique member-only state-by-state club operation for the purposes of better serving individuals desiring to get all the benefits of cannabis. Club members and affiliates in legal medicinal or adult use states will use its app or website to place their order for next-day delivery. MCOA’s CBD line will be available to club members in all 50 states and internationally. The company’s CEO is Donald Steinberg, who was the founder of Medical Marijuana Inc (OTCMKTS:MJNA).


Major product & divisions:

HempSMART: HempSMART brand, represents MCOA’s non-THC, hemp derived, product line. HempSMART products are formulated wit cannabinoid base that is derived from hemp. hempSMART Brain is formulated with CBD or Cannabidiol as the core ingredient combined with high quality branded ingredients to compliment the CBD to support brain health. This is a first-of-its-kind product with a synergistic blend of natural brain support ingredients, blended with water soluble CBD to provide optimal bioavailability for brain support and protection.


Club Harmoneous: It is a multi level marketing (MLM) model for Distribution of MCOA products, as a sort of run-your-own-business program. Through this, MCOA’s offers Marketing Services designed to increase membership. This is done through an affiliate referral program where members refer new member patients and earn discounts and income.

Cultivation and processing: Last month, MCOA entered into a Letter of Intent with Bougainville Ventures, Inc. for the purpose of housing tenant growers engaging in the cultivation, processing and commercial availability of legal marijuana in the State of Washington.

Recent announcements:

MCOA recently announced that it has entered into a non-binding Letter of Intent while performing due diligence to finalize a joint venture agreement with Bougainville Ventures, Inc. for the purpose of housing tenant growers engaging in the cultivation, processing and commercial availability of legal marijuana in the State of Washington


According to the release, MCOA will invest up to $1 million in cash in a newly formed entity and receive 50% equity ownership and 50% share in net profits produced by the joint venture. Bougainville Ventures, Inc. will contribute its expertise in establishing facilities related to the production, processing and management for tenant growers utilizing an I-502 Tier 3 license, with leased property, established partnerships, licensing agreements and marketing relationships.


Expected synergies:

Management confirmed that partnership would allow them to produce high quality products at the lowest possible prices, thereby benefiting their supply chain. Management is of the view that such partnerships would allow them to cultivate superior products in each state, whilst remaining within the state laws.


About Bougainville Venture Inc (JV Partner):

Bougainville Venture Inc., is in the core business of converting irrigated farmland that was traditionally used to grow marginally profitable feed crops, to greenhouse-equipped farmland used to grow luxury crops with a primary focus on marijuana. Bougainville offers fully built out turnkey solutions to licensed I-502 tenant-growers and luxury crop growers who will lease the facilities for production and processing.


Previous announcements:

Previously, MCOA also announced that it has successfully retained the services of 420 Pros, for the provision of marketing and branding services, for its hempSMART and Club Harmoneous products. Furthermore, it is expected that MCOA would attend a number of expos and trade shows across the country, in the near future, in a bid to reach a larger market.


The company also engaged a CPA firm to complete a two-year audit of its financial statements as part of the process of preparing to become a fully reporting public company with the intent of uplisting to a higher reporting exchange.
Key Stock Influences:

Some key influences that might govern future stock price performance include:

  • MCOA’s distribution strategy is still at a very nascent stage. Though, the initial product is on shelves, and the program is underway. MCOA’s ability to revamp its sales strategy and to align with mainstream markets would hold the key over the near to medium term.
  • MCOA’s ability to maintain its liquidity and financial flexibility to fund its incremental capital requirements. Since cannabis is still illegal at federal level, and only selective states have passed legislation to legalize cannabis for medical purposes, it is not easy for MCOA to access capital on agreeable terms. Also, any additional equity raise is exposed to significant dilution risk.
  • Company’s ability to timely deliver under its signed contract for cultivation and processing.

Earnings Review:

The company is in the process of reporting its latest financials. As of September 30, 2016, the Company has generated no revenue per its financial statements.


Liquidity and Capital Resources:

At September 30, 2016, the Company’s had limited liquidity and cash reserves. From the date of inception until September 30, 2016, the Company has incurred losses of $4,782,071.


The Company’s ability to continue as a going concern is dependent upon its ability to develop additional sources of capital and ultimately to achieve profitable operations.



Stock Performance

On Monday, March 13th, 2017, MCOA shares declined by -5.2% to $0.0540 on an average volume of 10.01 shares exchanging hands. Market capitalization is $95.70 million. The current RSI is 24.44.

In the past 52 weeks, shares of MCOA have traded as low as $0.00 and as high as $0.20.

At $0.0540, shares of MCOA are trading below their 50-day moving average (MA) at $0.07 and above their 200-day MA at $0.04.

The present support and resistance levels for the stock are at $0.0520 & $0.580 respectively.



About Traders News Source:

Big Opportunities in Small Cap’s


Traders News Source recent profiles and track record, 534% in verifiable potential gains for our members on 3 small cap alerts alone!


January 31st, 2017 (NASDAQ: HIMX) opened at $5.10/share and hit a high of $9.68/share March 24th, 2017 for gains of 89% within 60 days-


February 6th, 2017- (NASDAQ: SCON) opened at $1.12/share hit a high of $1.80/share within 10 days our members potential gains- 60% –


March 6th, 2017 (OTC: USRM) opened at .035/share and hit over .17/share within 25 days for gains of 385% for our members-


These are numbers that make traders drool. Any trader in any market would fall all over themselves to see numbers like this. So, if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.


We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.






Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.

Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.


This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.


We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.


When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.


17B Disclosure

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.


PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.


Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.


TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.


The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.


Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.