Cannabis Science, Inc. (OTCMKTS:CBIS) Bounces Back Up
Cannabis Science, Inc. (OTCMKTS:CBIS) made a 17.63% leap yesterday, despite the negative media attention thrown its way by a popular online journal.
The company managed to jump all the way to $0.1381 on a $2 million volume, despite being mercilessly criticized by TheStreet. CBIS was characterized as an “overvalued financial train-wreck”. Despite the mean-spirited undertone of the commentary, this may indeed be the case when it comes to CBIS.
This particular company has disappointed its supporters on multiple occasions. The ticker’s history of drops that cut the company’s stock short whenever it gathers upward momentum is indicative of CBIS precarious hold on the market. But how can a ticker be stable, when the company shows such meager financials:
- cash – $462 NUMBER NOT IN THOUSANDS
- total assets – $585 thousand
- total liabilities – $3.5 million
- revenue – $70 thousand
- net loss – $1.1 million
CBIS enthusiasts may argue that the figures given above are outdated, because they depicted CBIS‘s financial state 6 months ago – well before the marijuana fever gripped the market. However, anyone who has done due diligence on CBIS knows that the company hasn’t had a filing since then – the 10-K covering 2013 was supposed to be filed 10 days ago, but was delayed. This is common practice among the more dubious marijuana stocks these days, and can be taken as a red flag. The reason for the delay remains unspecified, but postponing the filing has given the ticker time to bounce back on a sector-wide surge that followed the most recent mass-crash of the marijuana branch.
As it is now, it’s safe to say that investors that are rashly committing to CBIS stock are gambling blindly on hype and hope. The company has spouted numerous optimistic press releases to bolster its market positions, but those are hardly a reliable source of information on its activities. Until its commercial success is documented through an official filing, there’s no real way to tell if CBIS is advancing or not. The 10-K should be available in no more than 4 days, and is expected to be a turning point for CBIS. If it is as unimpressive as the last one, the ticker may be looking at a rough ride down to the bottom of the charts.
Ultimately, it is up to the investor to decide if it is worth gambling on high risk stocks. However, investors should always be wary of companies with ridiculously overblown market caps – such as Growlife Inc. (OTCBB:PHOT) and Tranzbyte Corp. (OTCMKTS:ERBB).
