Cannabis Sativa Inc. (OTCMKTS:CBDS) Finally manages To Recover
Cannabis Sativa Inc. (OTCMKTS:CBDS) had been crashing hard for a while, and the filing of its latest financial report didn’t really do a lot to alleviate that situation – but now it is surging with renewed vigor.
There could be little doubt that this latest climb was made possible by the announcement that GW Pharmaceuticals made about the positive Phase 3 trial data for its drug Epidiolex, for the treatment of Dravet syndrome. It should be obvious why investors were excited about this new development – if the science checks out, a whole new market niche may open up for marijuana companies such as CBDS.
Naturally, this will give said companies a chance to capitalize on a brand new market opportunity – which is awesome. However, this is where we get to the heart of the problem .
There is no evidence to date that suggests that this company is capable of capitalizing on any opportunity whatsoever. CBDS certainly hasn’t done so in the past, otherwise its latest financial report, for the fiscal 2015, wouldn’t look as sorry as this:
- Cash and Cash Equivalents – $10 thousand
- Total Current Assets – $79 thousand
- Total Current Liabilities – $371 thousand
- Revenues – $11 thousand
- Net Loss – $7.4 MILLION
The only even remotely positive thing that can be said about CBDS‘s financial standing at the end of the reported period is that it looks like it hasn’t managed to drown investor value in dilution yet.
Everything else about the company just seems to scream “dubious mediocre OTC Markets marijuana pinksheets ticker that’s just piggybacking on hype”.
This makes CBDS‘s current chart position extremely precarious, because as we all know hype jumps tend not to last, and when they come to an end, the results are seldom pretty, especially if the company in question has nothing else going for it.
Investors should definitely take that into consideration and act accordingly.
