Cannabis Science Inc. (OTCMKTS:CBIS) Still Going Down
When we last looked at Cannabis Science Inc. (OTCMKTS:CBIS) it had just managed to recover from the sector-wide crash that took nearly every marijuana related company down on Jan. 10. As it turns out the company’s modest rise did not turn into another upward spike, as most expected – share prices have been on a steady decline since then.
This pattern of rise and fall seems to have a firm grip on the pot stock market. Last week’s seizure was also experienced by companies such as Tranzbyte Corp. (OTCMKTS:ERBB) and Creative Edge Nutrition Inc. (OTCMKTS:FITX), whose charts show remarkable similarity to CBIS‘s. Despite the differences in their general market standing, dollar volume, financial state and overall activities, all of the aforementioned companies have crashed by the end of last week, managed to stabilize for a session or two, then begun a steady decline.
It is safe to say that the present fickle disposition of the market is largely responsible for said chart movements. A glance at CBIS‘s latest 10-Q, which covers the period ended Sept. 30, 2013 and was filed on Nov. 19, 2013, clearly reveals that the company hasn’t earned its present uplifted market standing through commercial success. The report clearly states the following disconcerting financial information:
- Cash $462
- Total current assets $288 thousand
- Quarterly revenues $70 thousand
- Total liabilities $3.5 million
- Net loss $1.1 million
In decline though the company may be, CBIS‘s present position on the chart is still paces ahead of the company’s actual business achievements. When you consider this simple fact, it becomes all too clear that CBIS is only kept up by the marijuana hype. It is clearly one of the most obvious, and thus – most heavily traded, pot stock companies. And, like almost all companies in the marijuana sector lately, it offers as much opportunity for significant profit as it does for great loss.
Due diligence is, as usual, advisory when dealing with high risk companies.
