GB SCIENCES is up 19.67 percent despite modest market slide

Today article will break down GB SCIENCES. I will inspect if investors should continue to be optimistic for the company outlook. Inspite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2020. The current disturbance may also be a sign of long term up-swing for the company investors. We found thirty-two available financial indicators for GB SCIENCES which can be compared to its peers in the sector. To make sure the equity is not overpriced, please check out all GB SCIENCES INC fundamentals including its Shares Owned by Insiders, Current Ratio, Z Score, as well as the relationship between EBITDA and Market Capitalization . As GB SCIENCES INC appears to be a penny stock we also urge to confirm its Price to Earning numbers. Use GB SCIENCES to enhance returns of your portfolios. The stock experiences very speculative upward sentiment. The trend is possibly hyped up. Check odds of GB SCIENCES to be traded at $0.0449 in 30 days.
Published over a year ago
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Reviewed by Vlad Skutelnik

This firm currently holds 11.22 M in liabilities with Debt to Equity (D/E) ratio of 71.8 indicating the firm may have difficulties to generate enough cash to satisfy its financial obligations. The company has Current Ratio of 0.44 indicating that it has a negative working capital and may not be able to pay financial obligations when they are due. GB SCIENCES dividends can provide a clue to current valuation of the stock. The firm is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. The book value of the company was currently reported as 0.05. The company recorded loss per share of 0.11. GB SCIENCES INC had not issued any dividends in recent years. The entity had 1:10 split on 2013-10-31.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include GB Sciences income statement, its balance sheet, and the statement of cash flows. Potential GB Sciences investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although GB Sciences investors may use each financial statement separately, they are all related. The changes in GB Sciences's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GB Sciences's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of GB Sciences fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of GB Sciences performance into the future periods or doing a reasonable stock valuation. The intrinsic value of GB Sciences shares is the value that is considered the true value of the share. If the intrinsic value of GBLX is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares GB Sciences. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring GB Sciences on a daily basis if you are holding a position in it. GB Sciences is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as GB Sciences stock to be traded above the $1 level to remain listed. If GB Sciences pink sheet price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is GB Sciences's Liquidity

GB Sciences financial leverage refers to using borrowed capital as a funding source to finance GB Sciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. GB Sciences financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to GB Sciences' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of GB Sciences' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between GB Sciences's total debt and its cash.

An Additional Perspective On GB Sciences

GB SCIENCES INC has beta of -0.03. As returns on market increase, returns on owning GB SCIENCES are expected to decrease at a much smaller rate. During bear market, GB SCIENCES is likely to outperform the market. The recent GB SCIENCES INC price drops may raise some interest from investors. The Stock closed today at a share price of 0.0359 on slow start in trading volume. The company directors and management were unable to exploit market volatilities in December. However, diversifying your overall positions with GB SCIENCES can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 14.07. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the GB SCIENCES INC partners. GB SCIENCES reports 37.5 m current valuation. GB SCIENCES is selling for under 0.0359. That is 19.67 percent increase. Today highest was 0.0378. GB SCIENCES Average Assets is fairly stable at the moment. Further, GB SCIENCES Earnings before Tax is fairly stable at the moment.
To conclude, we believe that at this point GB SCIENCES is fairly valued with very high odds of financial turmoil within the next 2 years. Our ongoing buy/sell recommendation on the company is Strong Sell.

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