Cannabis Science (CBIS)
Cannabis Science (CBIS) more than doubled for the year-to-date to trade at a 16 cents a share. It must be the name driving the share price, because it sure isn’t the legalization of marijuana.
Cannabis Science has nothing to to with growing, selling or distributing medical marijuana. Rather, it’s trying to develop medications based on cannabinoids to treat everything from autism to cancer to HIV. It’s like an ambitious and goofy biotech — cancer and HIV? — not a medical marijuana stock.
As for legalization helping its business, well, that doesn’t enter into it. Real scientists working in real labs have no trouble getting hold of cannabinoids for research purposes. Meanwhile, CBIS doesn’t have any drugs in the pipeline. Both its cancer and HIV programs are still in the pre-clinical investigation stage. That means they exist somewhere on a white board.
Little wonder then that CBIS has no profits. Hell, it barely has revenue. From 2005 to the end of 2012 (the last date for which data is available) revenue totaled $127,000. That’s cumulative.
And for all this, CBIS has a market cap of $123 million.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.