Update: CBCA Is No Longer CBCA

Jul.25.14 | About: Crown Baus (CBCA)

Cannabis Capital is no longer Cannabis Capital. It changed its name yet again, to Crown Baus Capital Corp (OTCQB:CBCA), while keeping its CBCA ticker. But more importantly, another piece of news showed just how worthless the whole thing is, and how it trading at a still-massive $1.3 billion is just a temporary scheme and the shares will end up dropping another 90%, just like I stated in my original article when the stock was still trading at $15.50 per share.

What piece of news was that? Well, it was the fact that the controlling shareholder, Yong Ok Cho, sold his 75,000,000 shares for all of $7,500 to Castor Management Services. Surely, this was not an arm's length transaction, but still it seeing each share valued at $0.0001 is like a premonition of the future in this situation. After all, the company had all of $185 in the asset side of its balance sheet when I first covered it.

To put things into perspective, a company with assets of $185 would have to have an ROE of 120% per year over 20 years to turn those $185 into $1.3 billion. Not going to happen. Indeed, nothing is going to happen here - the stock will simply slide down more and more until becoming basically worthless.

Disclosure: The author has no positions in any stocks mentioned, but may initiate a short position in CBCA over the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.