Dragni Dragnev

Is Cannabis Sativa Inc. (OTCMKTS:CBDS) Going To Bounce?

by Dragni Dragnev April 8, 2016

Cannabis Sativa Inc. (OTCMKTS:CBDS, CBDS message board) lost a painful 14.96% chunk of its market cap yesterday, but is already on the road to recovery in today's early trading, but how long will this state of developments last?

Well, there are a few factors to consider before one could begin to answer that question.

First off, CBDS seems to be one of the more popular cannabis-related tickers on the OTC Markets at the present moment. The marijuana fever that shook the market a few years back is over now, but every now and again developments reignite the spark, which allows underachievers to soar for no reason whatsoever aside from having the magical word “cannabis” in their name and a cannabis leaf in their logo.

Although it would be sad to say so, it looks like this is precisely what is happening to CBDS now. And if you think calling the company an underachiever is a little harsh, well, take a look at its latest financial report:

  • cash - $22 thousand
  • current assets - $1.8 million
  • current liabilities - $268 thousand
  • quarterly revenues - $6 thousand
  • quarterly net loss - $1.8 million

The biggest achievement in that quarterly filing is the fact that the company hasn't drowned investor value in toxic dilution yet, which is something that so many other marijuana companies have already done, much to the regret of their investors. However, it is highly unlikely that this silver lining alone will be able to keep the ticker afloat this time around.

In conclusion – since CBDS is still volatile, investors might yet be able to exploit said volatility for profit. However doing so is risky, because the ticker has next to nothing but hype pushing it upward at the present moment.

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