Cannabis Sativa Inc. (OTCMKTS:CBDS) Shoots Up Again

tags: CBDS

Cannabis Sativa Inc. (OTCMKTS:CBDS) added 11.83% to its market cap yesterday, nearly reaching the $1.9 mark in that trading session. So what’s wrong with this situation?

A bit of due diligence reveals that the company’s share structure seems quite stable. CBDS‘s shares outstanding have totaled about 17 million for a long while now, and although it did mention in its reports that it may be forced into a bit of dilution to finance its activities in the future, the fact that the company is has managed to stay away from toxic convertibles to date is indeed commendable.

So far – so good, but unfortunately, that is pretty much where the list of positive things one could say about CBDS ends.

While the company certainly has an edge over many others in the same tier and branch, that doesn’t necessarily mean that it is good. Suffice it to say that CBDS‘s latest financial report looked like this:

  • Cash and Cash Equivalents – $14 thousand
  • Total Current Assets – $100 thousand
  • Total Liabilities – $521 thousand
  • Revenues – $15 thousand
  • Net Loss for the Period – $321 thousand

Although one could say with confidence that unlike many others in the same branch CBDS isn’t really committing terrible crimes against its investor value, it is also a sad fact that the company doesn’t seem to be doing much of anything else worthwhile either. Meanwhile, its market cap just jumped over $30 MILLION.

So what does this mean for investors? Well, while the possibility to exploit the ticker’s volatility for profit seems to be present here, investors should beware the high probability of a crash that could cost them dearly.

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