Cannabis Science Inc (OTCMKTS:CBIS) Erodes Weekly Gains

Earlier in last week, the stock price of Cannabis Science Inc (OTCMKTS:CBIS) managed to jump more than 140% up on the chart. The stock was trading close to $0.016 on August 18 and in a matter of just one trading session reported strong gains to close at $0.042. However, the stock failed to build on the initial positive momentum in following sessions, and declined more than 5% on Friday to close the week at $0.0301.

The performance

Cannabis Science has been continuously making new lows since the start of 2015 when the stock traded close to eight cents per share. The recent strong performance on the chart was possible due to a latest PR that contained some promising news. Cannabis reported that after four years of long wait, they will finally pay the dividend to investors with record date December 31, 2010. It should be noted that the company submitted Definitive Schedule 14C in August 2011.

The highlights

Cannabis Science reported that the company will try to reward their current shareholders too and if possible will try to issue a new dividend with a record October 9, 2015. In the same PR, the company also highlighted its plans to up list on a national exchange. There is no doubt that the Press Release contained some promising news but investors should keep in mind that for now nothing fundamentally has changed for the company.

The numbers

As per the last annual report for fiscal 2014, Cannabis Science reported net loss of $16 million and $1,031 in revenue. For 1Q2015, the company posted $37,524 in cash and $186,000 as total current assets. The total liabilities came at $3.8 million and revenue was $0.

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Cannabis Science Inc (OTCMKTS:CBIS) continued its correction to the end of the week as it ended the last trading session with a loss of 5.35%. The volume of the session at 13.8 million was exactly the same with the daily average, offering no particular clue about the price action in the coming days. The stock had rallied very sharply earlier in the month, appreciating by more than 200% in just a few sessions but the correction came equally sharp. A bit of support can be expected around $0.0240 but that must be held by the bulls to keep the bullish hopes alive.

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