Georgi Kamburov

Cannabis Science, Inc. (OTCMKTS:CBIS) Pushed Up By Industry-Wide Surge

by Georgi Kamburov January 2, 2014
2CBISchart.pngOn the first day of 2014 the entire marijuana and cannabis sector got a massive boost as investors once again flocked to the companies in a buying frenzy. Pennystocks operating in the industry that were largely forgotten by the market in the previous months suddenly found themselves once again among the top traded stocks for the day. Cannabis Science, Inc. (OTCMKTS:CBIS, CBIS message board) was certainly not an exception. 

CBIS added more than a quarter to their value when they closed at $0.0515 just shy of the highest point for the day. Traded volume exploded and 28 million share changed hands throughout the session which is seven times more than the average for the company. This drastic change in investors sentiment came just days after CBISdropped to a new 52-week low of just $0.028 per share.

This time the industry hype was caused by the first legal sale of marijuana for recreational use in the state of Colorado. For now only a couple of dozen stores were operational but in the coming weeks that number will grow substantially. Regulators have granted 178 licenses for cultivation, 136 for retail stores, 31 for spin-off products and 3 for testing.

CBIS are not directly involved with the recreational use of marijuana and instead have put themselves to the task of developing cannabis formulation-based drugs. In November the company submitted a patent application in Europe that covers the development of drugs treating a variety of neurobehavioral disorders. That however doesn't change the dismal state of the company's financials. 

According to the last quarterly report they filed at the end of September CBIS had: 
  • $462 cash
  • $288 thousand total current assets
  • $3.5 million total liabilities
  • $70 thousand revenues 
  • $1.1 million net loss
They have a negative working capital of more than $3 million, the accumulated deficit has passed $90 million and looking at their cash reserves investors should expect even more dilution of the common stock. Just for the time between September 30 and November 19 when the report was filed CBIS issued another 50 million shares bringing the outstanding amount to 760 million out of the 850 million authorized. 

7PHOTchart1.pngThe current over-enthusiastic prices are not likely to hold for much longer as the company's fundamentals are clearly not capable of supporting them. In a few months another hype-wave might happen as the next state in line legalizes the sale of recreational marijuana but untill then, without any major developments, CBIS is bound to depress back to its previous price ranges. 

The two leading companies in the sector - Medical Marijuana, Inc. (OTCMKTS:MJNA) and Growlife, Inc. (OTCBB:PHOT) also benefited from the increased buying with MJNA climbing up by 16% to $0.155 per share while PHOT had a more subdued gain of 6% to arrive at $0.151 per share.

Comments 24

1. Guest
January 08, 2014, 04:00PM

Quotes *he* is not actively selling the software they're just advertising on his page. It's not even affiliate marketing it's literally just adspace that he sold to a relevant company. Stop smoking pot you idiots.

2. Guest
January 06, 2014, 08:41PM

Quotes Has anyone bought this software? Is it any good?

3. Guest
January 06, 2014, 08:40PM

Quotes Has anyone bought this software? Is it any good? Site legit?

4. Guest
January 04, 2014, 04:57PM

Quotes I bought 6000 shares at .03 and it has doubled my money since

5. Guest
January 03, 2014, 03:48PM

Quotes Oh sure...
This company is exactly like MSFT and AMZN.
Except that those companies made money and were profitable.
But aside from that and a million other things, no difference at all.

6. Guest
January 03, 2014, 12:50PM

Quotes Come on loser pumper bag holders. Make sure you empty out your picky banks and keep buying CBIS. CBIS will be the next Microsoft or Amazon. Keep buying.

7. Guest
January 03, 2014, 11:01AM

Quotes Wow I can't believe this stock is so cheap has anybody seen the patents that they have there due to make a killing. This company doesn't keep cash so the money will go to the investors.

8. Guest
January 03, 2014, 10:53AM

Quotes You pumper losers have gone completely insane and mad. Comparing this to Amazon? amazon started out at an IPO at $18 a share. CBIS is pure junk and as always went up only on hype. This is a diluted pig. You pumpers are pathetic losers. Keep living in lala land. Too funny.

9. Guest
January 03, 2014, 10:39AM

Quotes You know people waited on new years eve to buy the pot just wait until other products go on the market. Green Gold.

10. Guest
January 03, 2014, 10:37AM

Quotes I like the pot stocks its the new thing and even us little stock players can get in.

11. Guest
January 03, 2014, 10:36AM

Quotes This company owns patents and is waiting to be able to use its patents. Marijuana is getting more accepted which will increase demands from this company. Profits will go up lucky to see this stock this cheep. Green Gold rush. AMAZ is in the loss because it uses it proceeds for expansion so does this company.

12. Guest
January 03, 2014, 10:31AM

Quotes What is a better stock than a Marijuana stock. During the crash only the vice stocks made money. Marijuana is the next vice stock.

13. Guest
January 03, 2014, 10:29AM

Quotes Yes the people here that smoke the pot realize how much money is to be made with pot. The stock will go up any lots of money will be made who will get that money is the shareholders. buy now when the 200% gains can be made don't wait until its already high and steady.

14. Guest
January 03, 2014, 10:26AM

Quotes Mary jane is big watch these stocks lucky back down again today I can buy the stock cheap. Buy Now

15. Guest
January 02, 2014, 07:52PM

Quotes All u pumpers need to stfu. This is nothing more then a pump. It has been pumped a million times and always ends up back in dumps. Toilet paper has more value then the company. The hype will die over the weekend and all the promoter groups will be exiting and you losers will be left with the toilet paper. Almost a billion shares OS.

16. Guest
January 02, 2014, 02:50PM

Quotes $462 cash
$288 thousand total current assets
$3.5 million total liabilities
$70 thousand revenues
$1.1 million net loss

And how is the author using scare tactics? This move is purely on the news of pot being legal in Colorado. Where was it last week? You guys who are making comparisons to MSFT and AMZN need to stop smoking pot...

I have more cash in my back-pocket than this company has on the balance sheet and what on Earth is up with nearly a billion shares outstanding...

17. Guest
January 02, 2014, 11:47AM

Quotes Just saying I agree this guy wrong up almost 50% and climbing. Just selling software.

18. Guest
January 02, 2014, 11:28AM

Quotes I think it will hit a new 52 week high today.

19. Guest
January 02, 2014, 11:22AM

Quotes Making sick money on CBIS up 33% glad I got in.

20. Guest
January 02, 2014, 10:49AM

Quotes He is just trying to sell some software. No better way than some scare tactic.

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