Cannabis Science Inc (OTCMKTS:CBIS) has continued to pull back in recent trade. This is a stock that goes through cycles. We picked the bottom and the top nicely on the last cycle, as you can see from our prior posts. There is very little here of any substance, but occasionally the shorts get squeezed. And, given the track record and debt level involved in this one, there are usually plenty of aggressive shorts hanging around the tape in CBIS. In its latest move, the company just announced the beta launch of iCannabinoid, the Company’s state-of-the-art, high technology social media and educational website.
According to the release, “CBIS expects iCannabinoid to be the premier online platform for all things Cannabinoid-related, and will create a community of patients, advocates, doctors, researchers, parents, lawyers, growers, journalists, government and private-sector leaders, community organizers, and other interested parties.” From what we can see, the site looks like something that may have been banged together on a weekend for a couple hundred bucks. Hence, this is hardly a game changer, which is why the stock did not really react at all to the news.
Cannabis Science Inc (OTCMKTS:CBIS) defines itself according to the narrative of a leading-edge researcher and designer of cannabinoid solutions to health problems.
The company has been a world-class dilution machine over many years, and any serious larger time-frame bullish thesis must ultimately square off with that dynamic. Over the past 18 years, the real value of a $54,000 investment here has fallen to less than a dime. This is simply due to tactics such as reverse splits, convertible debt, and share creation.
The company has never really made any money, and consistently uses communications tactics to latch onto whatever new theme is tickling the palate of microcap investors, such as its latest attempt to latch onto the cryptocurrency theme. We think there is virtually no chance that this idea will ever amount to anything. They create shares and sell them with messaging and pay themselves. There are many “real companies” in the micro-cap space. As far as we have seen over the years, this is not one of them. Be sure to keep that in mind.
CBIS claims to be involved in developing medicines for autism, blood pressure, cancer and cancer side effects, as well as for other illnesses comprising for general health maintenance, though no sales have ever materialized from any of these pursuits.
It also claims to be developing CS-TATI-1 for newly diagnosed and treatment-experienced patients with drug-resistant HIV strains, as well as those intolerant of available therapies; CS-S/BCC-1 to treat basal and squamous cell carcinomas; and a proprietary cannabis-based therapy for neurological conditions.
In addition, CBIS offers an online video-based medical cannabis education system, including courses, such as medical cannabis law, medical marijuana, cooking, horticulture, and bud tending; and manufactures and distributes specialty horse and pet grooming and topical applications. It has a license agreement with Apothecary Genetics Investments LLC to produce various brand formulations for California medical cannabis market.
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According to the company’s latest release, “iCannabinoid is designed to serve as an information center, resource hub, and support group for those seeking alternative cannabinoid treatments for various critical ailments such as Cancer, Arthritis, Parkinson’s Disease, Anxiety, Multiple Sclerosis, and more. This new website is designed to be a conduit to provide timely and relevant information for Cannabis users to share with each other 24/7 online.”
The chart shows -7% stripped out of share pricing for the stock in the past week. In addition, the listing has seen interest climb, with an increase in recent trading volume of 12% over the long run average.
Now commanding a market cap of $170.7M, CBIS has virtually no cash on the books, which compares with about $2.3M in total current liabilities. CBIS is pulling in effectively nonexistent trailing 12-month revenues (of $7K). However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -15.2%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $CBIS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CBIS, either long or short, and we have not been compensated for this article.