Q: In the last year, I have gone from being up on PBIT, to being down about 30 percent. What is your outlook for this stock? Is it a buy, sell or hold? Thanks
5i Research Answer:
A $41M company is going to have big swings regardless. The stock is down 75% in the past 52 weeks and down 23% this year. It has about $3M cash and a large revenue base, but has never made money and cash flow is negative (-$12M last 12 months). Insiders own about 20%. Its focus on the cannabis sector is of course not helping its business. It is going to need more capital and that is likely worrying investors. It raised a small amount of money in December but that will not last very long.