Cannabis Science, Inc. (PINK:CBIS) Fails to Take Off
Cannabis stocks have collectively cooled down after the hype around their product peaked. Some however are holding better than others. Cannabis Science, Inc. (PINK:CBIS) almost looked like it could have another short two or three day run but it ground to a halt. Yesterday CBIS closed 4% down at $0.05 per share.
The company has long slipped out of its euphoric heights around the date of the U.S. presidential election and now wobbles along a diminishing amplitude curve. On the first day of trading for 2013, CBIS jumped up 13% in what could have been another short run of profit but it was not to be. Yesterday the stock plopped back down on a larger share volume.
There is little about CBIS that could excite investor interest apart from the mere claim that the company operates in the hemp business. The latest official financial statement available from CBIS is dated September 2012 and even that contains the following enthusiasm-deflating figures:
- $9 thousand in cash
- $3.3 million current liabilities
- Q3 revenue of under $2 thousand
- net loss for Q3 and 2012 respectively $2 million and $14 million
Those numbers may be enough to scare away most everyone. The company still hasn’t got a product that’s anywhere near completion. CBIS‘s website still has placeholder pages for their ‘Products’ section, containing descriptions of diseases. Despite all the optimistic press releases in the last couple of months of 2012, CBIS seems to have never really gone anywhere. The enterprise is still neck-deep in debt and has no means to finance its alleged product trials, that are still a long way from clinical tests.
A competitive marijuana business, Medical Marijuana, Inc. (PINK:MJNA) is doing somewhat better on the charts. Despite some ups and downs along the way MJNA is still around its November price. The company has a proven source of revenue that generates millions and has no claims to grandeur, hammering away at developing and integrating its subsidiaries and growing its business.
