United Cannabis Corp. f/k/a MySkin Inc (OTCBB:CNAB) Still Going Strong
On April 9, United Cannabis Corp., f/k/a MySkin Inc (OTCBB:CNAB)’s stock peaked at $11.45 per share. On June 19, just seventy-one days later, it dropped to $0.75. This sort of performance would normally make investors extremely angry, but it would appear that in the case of CNAB, they are not too bothered.
In fact, they are coming back to the company as we speak. The ticker registered three green sessions on the trot and gained a total of 63%. The volumes are significant which means that people are actually putting money in CNAB and are hoping for a bright future. Will their prayers be answered, though?
As the new name would suggest, CNAB is now operating in the marijuana industry which, on the one hand, is a good thing. Plenty of analyst have spent quite a lot of time researching the sector and they all say that the business should experience some massive growth in the coming months and years.
There is the other side of the coin, however. CNAB is not simply a company dealing in the marijuana industry. It’s an OTC listed penny stock dealing in the marijuana industry and that makes a big difference. The SEC reckons that a lot of people are trying to take advantage of cannabis hype and fleece investors of their hard earned money.
The Commission issued some warnings and suspended a fairly big number of pot stocks over the last two quarters. That, of course, doesn’t necessarily mean that CNAB is about to suffer the same faith, but we still reckon that keeping all the risks in mind might not be a bad call.
It should be noted that with $1.5 million in the bank and next to no debt, CNAB‘s financial situation doesn’t look bad at all (they’re certainly better off than most of their penny stock counterparts), but even that can’t give us any guarantees.
If you’ve been following the so-called green rush closely, you’d know that Fusion Pharm Inc (OTCMKTS:FSPM)’s balance sheet looked solid enough. Unfortunately, that didn’t stop the SEC from suspending the stock and putting it on the Gray Market where it’s now traded at around a third of its pre-suspension value.
As you can see, there are plenty of risks associated with CNAB‘s new business plan, but in the interest of fairness, we should assume that they might just be able to make it. Unfortunately, even on the PR front, the company is not particularly active.
Back in May, for example, they announced a partnership with Hop-On Inc (OTCMKTS:HPNN), but they somehow forgot to inform us what we can expect from the new deal.
Peter Michaels, the person at the helm of HPNN (whose stock performance over the last couple of months has been absolutely atrocious), for example, had some close encounters with the police eleven years ago and his company tried to market a modified Nokia as a brand new phone.
Paul Enright, CNAB‘s Vice President, on the other hand, received some media exposure when he was involved with a penny stock called Marine Exploration Inc (now known as In Ovation Hldgs (OTCMKTS:INOH)).
Will this put a spoke in CNAB‘s wheels? We’re about to find out. Whatever happens, considering the risks carefully before putting any money on the line is absolutely essential.