Cannabis Science, Inc. (OTCMKTS:CBIS) Slows Down Its Climb
The stock of Cannabis Science, Inc. (OTCMKTS:CBIS) has been enjoying some rather impressive support from investors. The stock has been climbing upwards for seven sessions in a row now on increasing volumes. The biggest jump in share price happened on Monday when CBIS closed at $0.189 or 33% above the previous session. During the trading day it even briefly soared to a new 52-week high of $0.26 per share.
Expectedly after such a positive performance yesterday’s trading was much more hesitant. Still CBIS never fell into the red and managed to end the day nearly 4% up at $0.197. As we said traded volume continued to grow and more than 75 million shares were exchanged on the market resulting ina dollar value of $15.2 million.
Only Medical Marijuana, Inc. (OTCMKTS:MJNA) from the marijuana pennystocks had a bigger dollar value but that didn’t save them from sliding 3% down at the end of the day. The other industry leader – Growlife, Inc. (OTCBB:PHOT) also put an end to its positive trend by dropping 6% to $0.25 per share. Keep in mind that CBIS has been moving up on general hype alone and traders might be tempted to start taking profits at the current inflated prices. If you don’t already have a position in the company it may not be for the best to chase after the stock. CBIS will find it hard to support such share prices if left on its own when their fundamentals are in a such grim state. At the end of September they reported having:
- $462 cash
- $288 thousand total current assets
- $3.5 million total current liabilities
- $70 thousand revenue
- $1.1 million net loss
Another big concern is the fact that the official mailing address for the company appears to be nothing more than a PO Box.
The marijuana hype is going strong for now but at some point it will start to lose steam. In order to avoid being among the bag holders be sure to do your own due diligence and decide on appropriate time horizons for any trades involving penystocks.
