Cannabis Sativa Inc (OTCMKTS: CBDS) finds itself in a precarious position and at risk of plunging to all-time lows, amidst soaring short selling pressure. After a bounce back early in the year, the stock has once again come down tumbling, in what appears to be a continuation of the underlying long-term bear trend.
CBDS Share Price Analysis
A sell-off of the stock is in stark contrast to a bullish momentum that has engulfed the broader cannabis sector. A good number of stocks have registered impressive gains, on the expansion of the cannabis sector following the legalization of recreational use in Canada.The passing of 2018 Farm Bill in the U.S is also set to give rise to new opportunities, a development that has helped shore the valuation of most stocks. Amidst the events, Cannabis Sativa has continued to edge lower raising serious concerns about its long-term prospects.One of the reasons why investors have continued to push the stock lower is because of lack of updates needed to validate underlying developments as well a the company’s long-term prospects. As it stands, the stock remains engulfed in a steep bear trend and in dire need of new catalysts if it is to bounce back in line with the bullish momentum in the overall sector.In the short term, Cannabis Sativa will have to retake the $3 a share mark to avert further slides. Above the technical level, the stock should be able to make a run for the $4 a share handle, a crucial resistance level. CBDS Daily ChartA rally followed by a close above the $4 a share mark could give bulls a reason to come back and push the stock higher as part of a bull trend. Conversely, below the $3 share technical level, Cannabis Sativa remains vulnerable to further drops given the underlying bear trend.
What Does Cannabis Sativa Inc Do?
Cannabis Sativa is engaged in the development, manufacturing, and sale of herbal-based skin care products in the U.S. The company boasts of a diverse pipeline made up of cannabis-infused products. The company’s products are mostly used to relieve pain for sore muscles as well as joints and back pain.
What Next For Cannabis Sativa Inc
Waning investor confidence is a development that should be of great concern to Cannabis Sativa management. To avert further slides, the team will have to come out and reiterate the company’s long-term prospects through clear-cut updates.Late last year, the company confirmed that the United States Patent Office had approved its patent application for the use of cannabis-based compositions and methods for treating hypertension.
“We are excited to see the patent finally be issued. Cannabis Sativa made a bold deal acquiring this pending IP in the merger acquisition of Kush in 2014, which included Kubby Patent and Licenses. This lozenge patent is the second patent to be granted resulting from that agreement," said CEO Mike Gravel.
Cannabis Sativa had hinted the possibility of patterning a California licensed holder as part of an effort to further develop Lozenge. The company had also hinted at the possibility of exploring licensing agreements as it seeks to accrue maximum value from the patent and the lozenge product line.
PrestoDoctor Prospects
Mid last year, the company did embark on an aggressive expansion drive as part of its PrestoDoctor initiative. The company had already set a framework for expanding the online medical marijuana recommendation service into Pennsylvania after registering more than 3,800 people in the first week of launch.
“We are extremely excited to be expanding to Pennsylvania and to help patients have easier access in obtaining a medical marijuana card. With so many people looking for an opioid alternative and other natural options, it’s important to provide an easy, honest, and affordable service,” said PrestoDoctor® Co-Founder and CEO, Kyle Powers.
Bottom Line
Cannabis Sativa has paid a hefty price on failing to issue press releases detailing ongoing developments as well as long-term plans. While the stock has taken a significant hit, one cannot dispute the fact that the stock might as well have hit rock bottom, and due for a bounce back. A bounce-back could be in the offing especially on the company providing updates underscoring what it is doing to safeguard its future.We will be updating our subscribers as soon as we know more. For the latest updates on CBDS, sign up below!Disclosure: We have no position in CBDS and have not been compensated for this article.
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