United Cannabis Corp. f/k/a MySkin Inc (OTCBB:CNAB) Flying High Despite Short Session
About half an hour after Thursday’s opening bell, an article appeared on a website called Investor Place. In it, the author performed a technical analysis of United Cannabis Corp. f/k/a MySkin Inc (OTCBB:CNAB)’s chart and concluded that this is the stock to trade for the day.
Generally speaking, a lot of people reckon that penny stocks aren’t particularly influenced by the technical parameters, but despite this, CNAB registered quite a session during the three and a half hours of trading on Thursday. More than 143 thousand shares of common stock changed hands which means that the dollar volume at the end of the day stood at well over $500 thousand. CNAB opened the session with a small gap down at $3.35, but then started climbing. When the closing bell rang, it was sitting at $3.78 per share, representing a total of 11.18% in daily gains.
We’ve seen penny stocks make more significant jumps, but even so, CNAB‘s performance was not at all bad, especially considering the short session. The question now is: “Can it make a consistent run in the right direction?“.
Judging by the historical price movement, CNAB isn’t the most resilient stock on the OTC Markets. The company effectuated a 4-for-1 split back in March and shortly after, the ticker managed to gain some ground. At the beginning of April it even reached over $10 per share, but at one point, it simply ran out of steam. Two months later, it was sitting at $0.75.
The current run appears to be pretty similar to the initial one and as we mentioned in our previous articles, there really isn’t much to support it in the long run. At least for the time being.
Indeed, the latest report doesn’t look too bad. On March 31, CNAB had:
- $1.5 million in cash and current assets
- less than $12 thousand in current liabilities
- a quarterly net loss of $138 thousand
The company certainly has money to operate, but the lack of revenues is quite disturbing. You also have to think about the people running CNAB and their track records.
Paul Enright, United Cannabis’ Vice President who, until recently, had controlling interest in the company, is still listed as a Director at Sierra Resource Group Inc (OTCMKTS:SIRG) – a delinquent, terribly performing triple-zero stock that has a rich promotional history. He was also once involved with Marine Exploration Inc. – a highly controversial OTC company that is now traded under the In Ovations Hldgs In (OTCMKTS:INOH) name and ticker symbol. Its performance isn’t all that brilliant as well.
Then you have CNAB‘s partners from Hop-On Inc (OTCMKTS:HPNN). They too tried to lure investors in by announcing their entrance into the marijuana business in February and as a result, the stock spiked above the $0.001 per share mark. Unfortunately, it failed to remain there for long and right now, four and a half months later, it’s sitting at $0.0004 (85% below the 52-week high). Like CNAB, HPNN is headed by people with a less-than-stellar reputation.
Once you do some research, you’ll see that there’s quite a lot of things you need to bear in mind while making your final decision on CNAB. Doing your own due diligence and considering the risks carefully is essential.
