Some StillCanna Inc. (CNSX:STIL) shareholders are probably rather concerned to see the share price fall 33% over the last three months. But that doesn't change the fact that the returns over the last three years have been spectacular. Indeed, the share price is up a whopping 800% in that time. As long term investors the recent fall doesn't detract all that much from the longer term story. Only time will tell if there is still too much optimism currently reflected in the share price.
It really delights us to see such great share price performance for investors.
StillCanna didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). Investors will be hoping that StillCanna can make progress and gain better traction for the business, before it runs low on cash.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Some StillCanna investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
StillCanna had liabilities exceeding cash by CA$287,184 when it last reported in April 2019, according to our data. That makes it extremely high risk, in our view. So we're surprised to see the stock up 108% per year, over 3 years, but we're happy for holders. Investors must really like its potential. You can click on the image below to see (in greater detail) how StillCanna's cash levels have changed over time. The image below shows how StillCanna's balance sheet has changed over time; if you want to see the precise values, simply click on the image.