General Cannabis Corp (OTCMKTS:CANN) Has Second Thoughts

[[tagnumber 0]][[tagnumber 1]]General Cannabis Corp (OTCMKTS:CANN) is one of those companies whose stocks got really big with the marijuana legalization hype from last year. The ticker reached heights of over $48 per share, but quickly turned to a slide.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The beginning of this year saw [[tagnumber 6]]CANN[[tagnumber 7]] reaching for the $10 per share mark, however, the excitement was short–lived. On August 24 the company reached a 52–week low of $0.75 and the reasons for the downward movement are pretty obvious. One of the main is the numbers that anyone can see in the company’s financial reports.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $16,371[[tagnumber 13]] [[tagnumber 12]]current assets: $248,990[[tagnumber 13]] [[tagnumber 12]]current liabilities: $2,445,185[[tagnumber 13]] [[tagnumber 12]]quarterly revenues: $427,201[[tagnumber 13]] [[tagnumber 12]]quarterly net loss: $4,349,222[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Although [[tagnumber 6]]CANN[[tagnumber 7]] is one of the few companies that ventured into the cannabis industry and is actually making a profit we can’t ignore the big net loss and the very small amount of cash that the company has on hand.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Meanwhile, the company isn’t too keen on issuing press releases so the upward run that the ticker recorded in the first half of this month is rather strange. Nonetheless, it led [[tagnumber 6]]CANN[[tagnumber 7]] to close at $1.30 per share in Monday’s session on a volume that we haven’t seen in more than a year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]And finally, after around two months of silence [[tagnumber 6]]CANN[[tagnumber 7]] issued a press release before the opening bell yesterday. It announced a letter of intent to acquire a casual lifestyle brand called Chiefton Supply®.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Unfortunately, it seems that the increased volume was already too much to handle and, despite the PR, we saw [[tagnumber 6]]CANN[[tagnumber 7]] drop 10% down the charts for a close at $1.17, while a total of 120 thousand traded shares generated $157 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We see that the ticker is a bit more stable in today’s trading, but that doesn’t mean that it can’t turn to sliding once again. Doing your due diligence and weighing out the risks is absolutely crucial.[[tagnumber 2]]