Cannabis Sativa Inc (OTCMKTS:CBDS) Under Pressure From Shorts

Cannabis Sativa Inc (OTCMKTS:CBDS) is the subject of increased short selling pressure, despite turning bullish recently. The stock is showing signs of trading lower after a recent 25% plus pull back. The pullback raises serious concerns about the stock’s long-term prospects given the lack of new catalysts needed to avert a further slide.

Cannabis Sativa Price Analysis

The stock’s sentiments in the market have taken a hit in recent weeks, on the lack of substantial updates from the management. Investors remain in the dark as to what the company is doing behind the scene on its bid to generate shareholder value. CBDS Daily ChartAfter rallying to the $8 a share level, the stock has pulled back to the $5.12 level, in what appears to be short sellers regaining control. The pullback faces immediate support at the $4.20 level, below which the stock remains susceptible to further declines. A breach of the $4.20 level, could see short sellers pushing the stock to the $2.50 mark, on a continuation of the long-term downtrend.Cannabis Sativa faces immediate resistance at the $6.60 mark on any bounce back, after the recent sell-off. A breach of the resistance level could open the door for the stock to make a run for the $8 a share level ahead of 52-week highs of $9.74 a share.

What Does Cannabis Sativa Do?

Cannabis Sativa is a publicly traded company that licenses cannabis related intellectual property. In addition, the company is engaged in the marketing and branding of cannabis-based products and services. The company has also licensed the ‘hi and White Rabbit’ brands and holds patents to an Ecuadorian Sativa strain of cannabis.

Declining Net Loss

Shares of Cannabis Sativa had been trading high, on the company reporting impressive Q2 financial results. Confirmation that the company’s net loss for the three months ended June 30, 2018, did drop to (-$1 Million) from (-$1.9 million) appears to have sparked a bullish momentum. Net loss for the first six months of the year dropped to (-$2.4 million) from (-$3.9 million) reported a year ago.The company also reported impressive revenues of $206,474 for the three months ended June 30, 2018, up from $1,981 reported a year ago. Revenue for the first six months of the year skyrocketed to $301,064 from $3,046 reported a year ago.Separately, Cannabis Sativa has confirmed that its subsidiary PrestoDoctor has launched an online medical Marijuana recommendation portal in Pennsylvania. The HIPPA compliant trusted online recommendation platform seeks to offer residents an easy way of getting their Pennsylvania Medical Marijuana Card.

PrestoDoctor Portal

PrestoDoctor has simplified the process by providing the state required two doctor appointment, online. Patients will now be able to speak to licensed compassionate physicians who specialize in medical marijuana card evaluations on a touch of a button.

“Easier access to alternative care is the driving mission at Presto Doctor, and has made Presto Doctor the #1 rated online medical marijuana recommendation platform,” said CEO Kyle Powers, “We are committed to serve patients in Pennsylvania with the integrity we have displayed in California, Nevada, and New York.”

CFO Confirmation

In addition, the company has confirmed unit has retained the services of Donald Lundborn as the Chief Financial Officer. Mr. Lundborn will continue to oversee the company’s business systems as well as operational procedures and budgeting.

“He is a true financial professional with the experience needed to help us meet our business objectives. I am confident that Don will develop new systems and procedures to implement our current business model in a more strategic and fiscally sound manner," said the company’s President David Tobias.

What Next For Cannabis Sativa

Cannabis Sativa impressive run in the market is starting to show signs of exhaustion. A 25% plus pullback is a testament of waning investor confidence about the stock’s long-term prospects. A lack of new catalysts could see the stock edging lower on increased short selling pressure.The management team has for the longest time stayed numb in providing insights and information about the company’s operational efficiencies. A lack of updates on what the company is doing behind the scene to accelerate revenue growth could come to haunt the stock.The recent plunge could be a warning sign of what could happen should the management fail to offer an update that would act as a catalyst in strengthening the recent Bull Run. That said, it might be wise to take a back seat and wait for further confirmation on the next direction of trade after the recent pullback.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.