United Cannabis Corp. f/k/a MySkin Inc (OTCBB:CNAB) Climbs Above $3 Again
United Cannabis Corp. f/k/a MySkin Inc (OTCBB:CNAB) went through some changes back in March. The company spun-off its skin care business, acquired some assets and intellectual property, did a few changes to the management team and the share structure, and officially became a pot stock.
This happened slap bang in the middle of the hype and excitement surrounding the marijuana industry and, not surprisingly, the ticker’s performance was quite impressive. At least during the first few weeks.
The enthusiasm around the new business plan dragged CNAB (which back then was still traded under the MYSK symbol) out of the sub-dollar levels and flung it as high as $10.50 on April 9. Unfortunately, it then caved in under the pressure and plummeted towards the bottom. On June 19 (just seventy-one days after hitting its 52-week high of $11.45) it closed the session at a little over $0.75 per share.
All in all, the performance was pretty typical for the overly hyped up marijuana related penny stocks. If you take a look at Vape Holdings Inc (OTCMKTS:VAPE)’s chart, for example, you’ll see that the action around them during the last six and a half months was all but identical. As we mentioned in some of our articles, a recovery for VAPE seems unlikely at the moment. The question is: “Are things any different over at CNAB‘s camp?“.
The stock performance over the last couple of days suggests that investors are ready to trust the company once again. CNAB registered five consecutive green sessions and after a 34% jump yesterday, it’s back above the $3 per share mark. The ticker also racked up a dollar volume of over $550 thousand in just six and a half hours which means that more and more people are jumping in.
The thing is, CNAB already showed us that excitement alone is never going to be enough. So, can anything else support the stock in the long run?
The latest 10-Q doesn’t look too catastrophic. Here’s what the company recorded at the end of March:
- total assets: $1.5 million in cash
- current liabilities: $11 thousand
- no quarterly revenues
- quarterly net loss: $138 thousand
As you can see, the company is not exactly strapped for cash and although there’s still no revenues coming from the cannabis business plan, the partnership agreement with WeedMD (which was announced on June 5) suggests that this is about to change.
Judging by the facts above, we can conclude that CNAB is pretty much a waiting game at the moment. Hopefully, they will be able to get the consulting business off the ground and if the wind is fair, they might just turn out to be one of the few companies that will take advantage of the extremely lucrative pot industry. While you’re waiting for the future financial statements and press releases however, you might want to consider one or two more things.
Growlife Inc (OTCMKTS:PHOT) was once considered to be one of the safest bets in the cannabis business. The SEC however had other ideas and the suspension order from April 10 sent out quite a shockwave throughout the market. Many people reckon that if PHOT can get the axe, nobody’s safe and we tend to agree.
At the same time, a name in CNAB‘s management team does raise some eyebrows. Until recently, the company was headed by Paul Enright who was once involved with a penny stock enterprise called Marine Exploration Inc (now known as In Ovations Hldgs In (OTCMKTS:INOH)). He is still listed as a Director at Sierra Resource Group Inc (OTCMKTS:SIRG).
We reckon that researching these two companies and reading through the articles available on them (such as this one) might not be a bad call.