Last two weeks have been strong for Cannabis Science Inc (OTCMKTS:CBIS) as its stock moved from nearly $0.016 to as high as $0.047. The stock eroded some gains last week and is now trading close to $0.037.
Cannabis Science has witnessed an interesting movement up and down on the chart in last few trading sessions. An optimistic and boastful news released pushed it up on huge volume on August 18, 2015, after which it witnessed a correction. The decline was short-lived as the stock added over 40% to its market cap in two consecutive trading sessions last week. It comes as a surprise for many investors as there is no justified reason to support this bounce.
Cannabis initial gains can be attributed to hype surrounding marijuana-related boastful news. The sudden and sharp decline that followed was the natural outcome of dissipating hype, as it generally happens with OTC stocks.
It is not like Cannabis Science Inc (OTCMKTS:CBIS) has released any promising press releases, social media posts or reports in the last week or so. The company is delinquent in submitting its latest financial report for 2Q2015 and yet the stock seems to be gathering positive momentum. Of course, the online commenters including StockMarketMonitors and MicroCapDaily have covered the company on several occasions. However, the publication of these articles and the timing of the gains indicate that mentioned articles are not behind the recent jump of CBIS stock.
As per the 1Q2015 quarterly report, the company reported cash of $37,000 and total current assets f $186,000. The total liabilities came at $3.8 million while net loss stood at $4.2 million. Cannabis Science reported no revenue in 1Q2015, which clearly reveals that there is nothing substantial to get excited about its recent stock performance.
In early morning trade on Monday, the stock price of Cannabis Science extended its decline and was trading down 4%.