Cannabis Science, Inc. (OTCMKTS:CBIS) Remains Red
The marijuana sector of the OTC markets remains a largely volatile and speculative playground for traders with a high tolerance for risk. The most recent movement of Cannabis Science, Inc. (OTCMKTS:CBIS) is more proof of that. After a hurried green run, CBIS lost 25% of its share price in two consecutive sessions.
The company keeps a steady stream of press releases coming, even if they may contain very little information that is of any consequence to shareholders. Last week CBIS chimed in to ‘applaud’ the farm bill concerning industrial hemp. This was followed by a news release about CBIS cooperating with a non-profit organization to improve awareness and educate both the public and health professionals on the benefits of medical cannabis.
It seems it’s becoming increasingly trendy to put up PR announcements on this sort of topic as Medical Marijuana, Inc. (OTCMKTS:MJNA) also posted a similar one, except it was focused on the benefits of cannabidiol in particular. Unlike MJNA, however, CBIS did not follow this by more PR related to new contracts and revenue projections in the millions.
The company is still sitting on its Q3 results that were far from exciting:
- $426 in cash
- $72 thousand in revenues for Jan-Sep 2013
- $3.8 million in net loss for Jan-Sep 2013
The fact that CBIS president and interim CFO Robert Melamede is offloading his shares doesn’t help much either. At the start of January 2014 Mr. Memalede had 50.3 million CBIS shares. Several Form 4-s later, this number slipped down to 46.5 million in the latest filing dated Feb 5. Investors can interpret this sort of thing on their own, especially in light of the fact that the share price of CBIS has more than tripled over the same period of time.
Another big pot sector mover in Friday’s market was Hemp, Inc. (OTCMKTS:HEMP). HEMP‘s share price slid nearly 40% over the last two sessions, stopping at $0.18 at Friday’s closing bell.
