Marijuana firms have been in focus these last few weeks following the buzz around marijuana legalization in different U.S. states. Cannabis Sativa Inc (OTCMKTS:CBDS) is up almost 800% this year and currently boasts a market cap of over 100 million. However, the firm is primarily a tiny webshop having little assets and little to benefit from any vote. In fact, the company’s insiders are reported to be selling right from the start of this year, cashing out in 166 distinct transactions.
Since last few weeks, all eyes have been on marijuana stocks, as the two major events passed by, The first event was the election of new President of the U.S. and the second major event was voting on recreational marijuana use in five U.S. states.
Although it’s a well-known fact that most marijuana shares are low quality, traders play in them regardless. The same is reflected in Cannabis stock, which although has gained substantially in this year, but still it is not clear as to what the firm actually do and who are interested in this stock.
Cannabis Sativa has updated that it is engaged in the advancing and commercializing of natural cannabis product. Mainly, it’s a web shop, also selling its products through Amazon. In the first half of 2016, the company posted $65,000 dollars, and made a loss of $380,000 in the process. The numbers are surely disappointing and hence people should be practical here. There are market participants who are selling their holdings. Despite all this, it should be noted that investing in marijuana stocks is not about reaping short gains, instead it is more about a wait and watch game that can reap benefits in coming period.
Cannabis Sativa offer numerous products with CBD in it, which is a chemical ingredient in a hemp plant or marijuana. Unlike THC, CBD doesn’t get users high and is being studied across the globe for a plentiful of medical applications.