Five years ago, when I first started following publicly-traded cannabis stocks, there was little substance to the small universe of companies that purported to be in or providing goods or services to the industry. Fortunately, now there are many legitimate companies, some generating substantial revenue. Despite this significant progress, there are still hundreds of companies trading as penny stocks on the OTC that have little merit in my view. Today, I want to share my thoughts on just a few of them.

Cannabis Sativa Inc.

CBDS, which files with the SEC, began trading in 2014. The company has 21.2 million shares outstanding as of September 30, 2017 and has not yet produced material revenue ($121,400 in Q3, with an operating loss of $1.14 million). A review of its SEC filings reveals a substantial amount of Form 4s, which represent sales by insiders. The market cap at the recent closing price of $5.35 is approximately $113mm. Tangible book value at September 30th was -$3.47 million.

Click to read the entire article on Forbes.