It is (predominantly) a red day on the cannabis penny stocks market. It’s always disappointing to see that! And it’s no different for one very small company by the name of Cannabis Science Inc. (OTC:CBIS)
Cannabis Penny Stocks: CBIS Stock
Investors have been clearly interested in this small marijuana biotech because CBIS stock has experienced sharp swings both up and down.
But these stocks come very cheap, currently selling for just short of $0.04 USD and are down 2.78% on the day. As with any stock this cheap, it would take a mammoth few years to really make significant gains. However, these stocks have managed to gain over 15% this year thus far; it’s not huge but as the cannabis sector gets busier, could CBIS stock surge further?
Cannabis Penny Stocks: Risks
Sadly, it’s too hard to tell if Cannabis Science stock will grow or not. Many investments are still driven by hype in this sector. And with an industry over-populated with small poorly managed microcaps, it’s hard to tell which will remain standing when the hype-dust eventually settles.
Those biotechnology firms that do remain will have solid balance sheets, FDA approved products, and major partnerships with giant drug firms.
And this could be a problem for Cannabis Science. The company currently has only $30,000 cash on hand, and a debt of $2.73 million. That’s not good. It has yet to have any FDA approved products on the market. It also has major cannabis penny stock competitors with much bigger market caps; think GW Pharmaceuticals (NASDAQ:GWPH), 22nd Century Group (NYSE:XXII), and INSYS Therapeutics (NASDAQ:INSY).
What is Cannabis Science?
Based in Irvine, California, Cannabis Science boasts a market cap of $102 million USD.
The company’s aim is clear. It wants to receive US FDA approval for cannabis-based medicines, with key focus areas being skin cancer, HIV, and PTSD treatments.
Currently, Cannabis Science has research collaborations with the Dana-Farber Cancer Institute to develop cannabinoid-based cancer treatments, as well as with Stellenbosch University to treat chronic pain.
The company also operates two pharmacies in California, with a line of products ranging from inhalation aerosols to drops, patches, capsules, extracts, creams, and balms.
CBIS stock is moving, but is it moving fast enough? It’s hard to know which penny stocks to invest in, but fundamentals cannot be ignored.
Featured Image: Depositphotos/© stokkete