Cannabis Science Inc. (OTCMKTS:CBIS) Spikes Before The Storm
By the end of last week it seemed quite possible that Cannabis Science Inc. (OTCMKTS:CBIS) would be headed for the bottom of the stock charts for good. The descent the company registered for a few sessions after Jan. 10 seemed to be the way things were going to progress for a while, but CBIS managed to shoot 21.69% up again last Friday.
Drastic and unpredictable market value fluctuation though that may have been, it was far from unexpected. Analysts and investors alike have, on multiple occasions, borne witness to today’s fickle pot stock market flinging a ticker sky-high or crashing the entire marijuana sector over a single session. This time CBIS‘s ascent was anything but coincidental, however.
While other companies in the same branch, such as Tranzbyte Corp. (OTCMKTS:ERBB) and Creative Edge Nutrition Inc. (OTCMKTS:FITX) continued to fall, albeit slowly, CBIS was getting back on its feet on a fresh press release.
On Jan. 16 the company proudly announced its plans to launch an observational clinical research study in 2014. Said extensive testing will focus on patient use of cannabis and cannabis-based products, the clinical outcomes of such use for a myriad of medical conditions, as well as many related subjects. CBIS also made public its intention to acquire funding as well as academic and clinical partners for this project.
Apparently some people found it very impressive and more than a little encouraging that a company named “Cannabis Science Inc.” is going to actually perform scientific research related to cannabis. Despite the fact that the press release seems to only contain repetitive well-wishing and smugly optimistic statements about an uncertain future project, buyers jumped at CBIS stock in no time. Meanwhile the company is yet to report a single step taken towards the announced goal, but that didn’t seem to discourage investors.
What got CBIS enthusiast roiled was most probably the part of the announcement, that the company had filed an application of a cannabinoid based patent. Obviously the promise of “enormous potential for the extension of its portfolio and filing of further patents” was enough to make more than 2000 transactions. Despite the fact that the patent is not yet approved, by closing time on Jan. 17 the company’s stock had risen as high as $0.101 in spite its low opening.
Which just goes to show how in the present hyped state any little nudge can make a company shoot up the charts. Or crash down to the very bottom. Thus due diligence is, as always, advisory in the extreme, especially since the market is most likely to go into a frenzy over President Barack Obama’s weekend statement, that ‘Marijuana is no more dangerous than alcohol’. Investors and analysts alike are sure to witness some interesting developments once Martin Luther King Day is behind us.
