United Cannabis Corp (OTCMKTS:CNAB) Looks Like A Pullback Entry Opportunity

United Cannabis Corp (OTCMKTS:CNAB) is one of the few cannabis sector stocks that took a dive early this week, and the company is currently available at a close to 15% discount on its Monday close. With the cannabis ballots coming in in favor of recreational legalization in some major jurisdictions, and the volume of speculative capital that we have seen flow into the sector in the lead up to the deciding ballots, it's safe to say that some of the corrections we are seeing are just that – temporary pullbacks as traders take profits off the table and markets realign ahead of a return to the upside momentum.We think United Cannabis just corrected, and the current price might be an opportunity to load up at a discount.Before we get into why, here's a quick introduction to the company.United Cannabis is one of the more established names in the space, having been active in cannabis for the best part of half a decade, with management that have experience dating back to the first wave of speculative cannabis capital inflow, as part of the medical marijuana legalization rush in California back at the turn of the century. The current CEO kicked off with a focus in Colorado, but the team has since expanded to operate what is now a pretty sprawling network of business entities, centered around a medicinal cannabis range called Prana Bio Nutrient Medicinals. It's got distribution agreements in place for this range in a host of states, and internationally in Puerto Rica (by way of an MOU as reported in the latest PR) and is endorsed by some of the space's biggest names – Bubbleman, a grower and renowned expert in cannabis cultivation and medical use, Harborside Health Center, an established health facility in California that serves as the company's exclusive Prana distributor, and more.So, with that out the way, let's get to why we think this one is set to grow.Our thesis is two pronged:First, the company's low float is going to turnover so many times in the hands of the volume drawn to the space post-legalization, that it's very difficult to see a way in which price can't rise to the tune of multiples of its current levels. From a purely mathematical standpoint, there's upside to be had.Second, the company seems to be bang in the middle of what looks to be a wave of positive news flow, and this is going to draw speculative sentiment and fan the flames of the above mentioned float turnover.The above mentioned Puerto Rico MOU is just the latest in a host of developments that serve to underpin this news flow. October brought with it a Jamaican JV that will United team up with Rastafari Studies Centre for Cannabis Research, University of West Indies, Mona, to establish protocols for the development of Ital Standards which will be used as a guide for the processing, cultivation and consumption of cannabis. The turn of this month, the company announced planned design and deployment of a mobile extraction laboratory in collaboration with Cheribum Interests, Inc., through its subsidiary Budcube Cultivation Systems.Revenues were down slightly during the second quarter of 2016 on a quarter over quarter basis, reported at $197K for the three months ended June 30 compared to $245K a quarter earlier, but 2016 full year looks set to beat out on full year 2015, with the latter reported at a little over $562K, and 2016 half year in at circa $445K already.Cash is a concern, with current on hand less than $10K, down from just shy of $120K at the turn of the year, so dilution might be an issue near term. This said if we see the growth we expect over the coming couple of quarters, and value lost through dilution should be negated b a rise in market capitalization.We will be updating our subscribers as soon as we know more. For the latest updates on CNAB, sign up below!Disclosure: We have no position in CNAB and have not been compensated for this article.