The nature of investing is that you win some, and you lose some. Anyone who held Integrated Cannabis Company, Inc. (CNSX:ICAN) over the last year knows what a loser feels like. The share price has slid 66% in that time. Integrated Cannabis Company may have better days ahead, of course; we've only looked at a one year period. It's down 69% in about a quarter. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.

Check out our latest analysis for Integrated Cannabis Company

With just CA$108,346 worth of revenue in twelve months, we don't think the market considers Integrated Cannabis Company to have proven its business plan. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. Investors will be hoping that Integrated Cannabis Company can make progress and gain better traction for the business, before it runs low on cash.

We think companies that have neither significant revenues nor profits are pretty high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. 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. Integrated Cannabis Company has already given some investors a taste of the bitter losses that high risk investing can cause.

Our data indicates that Integrated Cannabis Company had CA$8.5m more in total liabilities than it had cash, when it last reported in July 2019. That puts it in the highest risk category, according to our analysis. But since the share price has dived -66% in the last year , it looks like some investors think it's time to abandon ship, so to speak. You can see in the image below, how Integrated Cannabis Company's cash levels have changed over time (click to see the values). The image below shows how Integrated Cannabis Company's balance sheet has changed over time; if you want to see the precise values, simply click on the image.

Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. You can click here to see if there are insiders selling.

A Different Perspective

Given that the market gained 12% in the last year, Integrated Cannabis Company shareholders might be miffed that they lost 66%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Notably, the loss over the last year isn't as bad as the 69% drop in the last three months. So it seems like some holders have been dumping the stock of late - and that's not bullish. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

But note: Integrated Cannabis Company may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.