Are CBD Stocks Ready to Ride Again? (JAZZ, YCBD, NEPT, CVSI, MJNA, ALST)

There’s reason to believe the CBD market could come roaring back to prominence ahead given continued strong growth projections from key analysts.

Companies like Neptune Wellness Solutions Inc (NASDAQ:NEPT), cbdMD Inc (NYSEAMERICAN:YCBD), Jazz Pharmaceuticals PLC (NASDAQ:JAZZ), Medical Marijuana Inc (OTC US:MJNA), Allstar Health Brands Inc (OTC US:ALST), and CV Sciences Inc (OTC US:CVSI) are all part of this story.

The long-term picture for the CBD market is still just as promising as ever. According to Quince Market Insights, the global cannabidiol (CBD) market has been estimated to reach $2.74 billion in 2021 and is projected to grow at a CAGR of around 51% during the forecast period till 2030, which would make it one of the most explosive growth themes over the next decade.

CBD stocks got ahead of themselves a few years ago. The resulting fallout was akin to the fate of the dotcom stocks after the 2000 bust. But this process resulted in long-term gains for tech stocks after the bust. Similarly, CBD is still a niche market destined to go mainstream. Leadership names in the space could represent important opportunities for speculators with risk capital ready to be put to work.

We take a look here at a few of the most compelling opportunities in the space.

 

Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) operates as a biopharmaceutical company that focuses on the identification, development and commercialization of pharmaceutical products in the areas of narcolepsy, oncology, pain and psychiatry. 

The company’s product portfolio includes: Xyrem, Xywav, Sunosi, Erwinaze, Vyxeos, Defitelio, and Zepzelca. It also has established products in the CBD space.

Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) recently announced the Health Canada approval and availability of Sunosi® (solriamfetol) for the treatment of excessive daytime sleepiness (EDS) associated with narcolepsy or obstructive sleep apnea (OSA) in adult patients. Once-daily Sunosi is approved with doses of 75 mg and 150 mg.1

According to the company’s release, EDS is characterized by the inability to stay awake and alert during the day resulting in unplanned lapses into sleep or drowsiness.11,13,16 Major contributors to EDS are narcolepsy, a chronic, debilitating neurological disorder characterized by the inability to regulate sleep-wake cycles normally2,3,4, and OSA, a condition where a person’s breathing stops for brief periods of time when they sleep.1

And the stock has been acting well over recent days, up something like 2% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -7%. 

Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) managed to rope in revenues totaling $751.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 33.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($891.4M against $880.6M).

 

Allstar Health Brands Inc (OTC US:ALST) is the most speculative name on our list today, but the company is making key strides that shouldn’t be overlooked and may be the most interesting stock here simply due to the fact that it hasn’t been pushed by investors as of yet, suggesting the potential for appreciation of shares once a crowd discovers the stock and gets behind it.

ALST is a specialty pharmaceutical and nutritional supplements company moving toward a potentially prominent position in the Covid management space, especially when it comes to hot spots in underserved markets around the world. But the company has recently gained traction in the CBD space.

Allstar Health Brands Inc (OTC US:ALST) and Gold River Productions, Inc. (OTC US:GRPS) recently announced the formation of a partnership in a new venture in distribution. “The wait is over,” explains Pete Wanner, CEO of AllStar. “We are excited about the launch of Gold River’s products and to be the first in line to purchase GRPS products. We have a number of distributors anxiously awaiting their products, Dr. Bond’s Gummy line: Sleepy Watermelon, Relief Raspberry and Calming Mango.”

According to the company’s release, this is a game changer for the CBD industry. “Gold River has created a high-grade formulation that targets specific consumer issues. We have not seen any formulations like this. We’ve tried them, tested them, sampled them and the results are very supportive. This isn’t your average CBD gummy. Not by a long shot. Our initial distribution will be in Jamaica and Florida. Now that we have product, we will be engaging in larger distribution channels including the United States, Mexico, Canada as well as the adjacent Islands. What intrigues us most about Gold River is their product line, which is unique, high end and in our opinion, a fresh and new in the nutraceutical world. It will set the gold standard. They did it right, and their video is spot on.”

“AllStar Health Brands is the perfect team member to our new partnership,” says Chairman of the Board of Gold River Productions, Richard Goulding, M.D. “AllStar and the marketplace have been more than patient as COVID upset out timetable. Together wnow see the whole picture and can’t wait to turn our combined sales and distribution networks loose aiming to satisfy the pent up demands.”

Allstar Health Brands Inc (OTC US:ALST) CEO Wanner further explained, “What intrigues us the most is scalability where we already see the potential for increased sales as Dr. Bond and Dr. Goulding talk about the nutraceutical products they are working on and hope to introduce to the markets in the near term future The gummy line is the first of many to come.”

 

cbdMD Inc (NYSEAMERICAN:YCBD) produces and distributes various cannibidiol (CBD) products. It operates the consumer hemp-based CBD brand. The firm’s product categories include CBD tinctures, capsules, gummies, bath bombs, topical creams, and animal treats and oils. 

It also offers pet related CBD products under the Paw CBD brand name, and distributes its products through an e-commerce Website, wholesalers, and various brick and mortar retailers in the United States. 

cbdMD Inc (NYSEAMERICAN:YCBD) recently released a full line of drink mixes, adding to their robust offering of products. Available in four flavors including Strawberry Kiwi, Lemonade, Peach and Fruit Punch, these drink mixes can be easily dissolved into any beverage and come packed with 25 mg of CBD per packet with added vitamin C. No added sugar or caffeine, these drink mixes use Nano-Encapsulated Technology for fast, water-soluble absorption so users can experience the benefits in a quick time frame.

“We’re constantly looking for new ways to innovate within the CBD industry and offer a variety of product solutions for our customers. This new line of drink mixes makes adding CBD to a daily routine even easier, giving people the options they want to make the right decisions for a healthy lifestyle. And, we look forward to debuting even more exciting and innovative products this Fall,” said Martin Sumichrast, Chairman & co-CEO of cbdMD, Inc.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. YCBD shares have been moving higher over the past week overall, pushing about 12% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action. 

cbdMD Inc (NYSEAMERICAN:YCBD) managed to rope in revenues totaling $10.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -0.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($20M against $6.8M).

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