Cannabis-Rx, Inc. (OTCMKTS:CANA): The Promotion Turned into Disaster
Cannabis-Rx, Inc. (OTCMKTS:CANA) looks finished, at least if we take into account the panicked selling. Even while promoters are trying to puff the price up, CANA began sinking further. The price losses are still limited, as the ticker slid down a bit above 10% on Tuesday, to $0.861. Dollar volumes reached just above $1 million, though more than a million shares, a record number, were dumped on the market. 
But this is precisely the event that made the pumpers happy. Now, the latest email from MicroCapProfiler1 mentions that buying would return, to cover short sales. It’s also interesting to note that while CANA was mentioned in 23 emails with a total budget of $300,000, the latest round of pumpers took up the ticker for an unknown compensation, very probably for free, as a way to boost their past record. 
In addition, the company tries to boost its condition with new PR. Late on Tuesday, CANA set the ground for a better day by announcing a change in treasurers. An experienced banker and financial expert, Munjit S. Johal will join the recently converted MMJ company. Mr. Johal will have to deal with the following financial results, a heritage from a time when CANA was a pure-play real estate company:
- $2.18 million cash
- $4.3 million total current liabilities
- $255,614 net loss
- $8.07 current assets, including receivables
This condition is much better in comparison to other OTC cannabis stocks, but keep in mind that the major factor for the rise in CANA is the robust publicity. And since the campaign has been going on for a while, we can expect the cord to be pulled at any moment, leaving the ticker to drift.
In the past, when cannabis companies were left without promotions, the sheer enthusiasm of the general market worked even better than emails. But this is not the case in the last month or so, when the constant demand for MMJ stocks diminished. CANA tries to salvage some of its appeal, by stating that real estate companies will benefit greatly from servicing the cannabis sector.
While investors’ forums have taken notice of the company’s inherent qualities, there is also the extreme caution following the sudden slide in price. The movement of CANA recalls that of overly promoted companies from the past few years. The biggest risk is the relatively high price, which has a big leeway to drop to nothing.
CANA compared itself to Advanced Cannabis Solutions, Inc. (OTCMKTS:CANN), but unfortunately this stock did not show the expected gains. CANN was suspended by the SEC for a few days, and has been sinking since then.
CANA is unique in its price range, and may regain a little after such a bad start, but still be aware that the gains are not guaranteed. Avoid over-investing in these heavily promoted companies.
