Who won? It’s pretty clear: Cannabis, Hemp, and CBD.
The sticky plant was legalized on all grounds in Arizona, Montana, New Jersey, and South Dakota. The most important piece of this story is really about the crossover along cultural lines – three of these four states qualify as canaries in the coalmine for national legalization by extrapolation as the cannabis plant becomes accepted and mobilized around product development and distribution on a mainstream, bipartisan basis.
It’s just a matter of time.
With that in mind, we take a look at a few of the more active and interesting stocks with direct exposure to the CBD theme, including: cbdMD Inc (NYSEAMERICAN:YCBD), Cannabis Global Inc (OTCMKTS:CBGL), and Medical Marijuana Inc (OTCMKTS:MJNA).
cbdMD Inc (NYSEAMERICAN:YCBD) is perhaps the top-tier player in the pure-play CBD space. The company promulgates itself as a company that produces and distributes various cannibidiol (CBD) products.
It owns and operates the consumer hemp-based CBD brand, cbdMD. The company’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. The company distributes its products through an e-commerce Website, wholesalers, and various brick and mortar retailers in the United States.
cbdMD Inc (NYSEAMERICAN:YCBD) just announced that the company was proud to support MMA champion Daniel “DC” Cormier, a premier member of “Team cbdMD”, which is the CBD industry’s premier athletic sponsorship program, as he prepares for the fight of his career. This past Saturday, August 15, 2020, Cormier headlined a primetime MMA showdown against heavyweight champ Stipe Miocic in a highly anticipated ‘rubber match’. ‘Miocic vs. Cormier 3’ aired live at 10 PM ET (ESPN+ PPV) from the UFC APEX facility in Las Vegas.
“My mind is ready, and my body is ready to do something great. This fight is the build-up of years of hard work and preparation. Thousands of hours on the mat and endless amounts of time training. This fight means everything to me, literally everything. And I am so thankful for cbdMD and put my trust in their CBD ‘Recover’ Inflammation Cream, CBD bath bombs, and CBD gummies to help me get ready for this major fight,” said Cormier.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Shares of the stock have powered higher over the past month, rallying roughly 7% 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 32.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($15.1M against $4.4M).
Cannabis Global Inc (OTCMKTS:CBGL) continues to make progress. This is one of the most interesting names in the CBD space given its strong IP backing – with more than a half dozen provisional patents in process at the USPTO – and its innovative movement toward non-CBD cannabinoid production technology.
This includes beverages, a range of CBD products, explorations into exotic cannabinoids, and its line of Hemp You Can Feel™ products, which now include both alcohol substitute cocktail mixers and a range of infused sweeteners.
Cannabis Global Inc (OTCMKTS:CBGL) recently announced the filing of a new patent application resulting from its Project Varin research program. The application addresses new methods for the creation of highly bioavailable and ultra-fast acting cannabinoids for use in beverages, food, topical, and other applications. The non-provisional application expands on the developments and technologies outlined in the provisional applications that were filed on November 4, 2019.
According to the release, the Company believes this technology is revolutionary, holding the potential to rewrite the efficacy and cost equations in the cannabis industry. Additionally, the technology will allow for significantly faster onset of active cannabinoids ingredients, which are expected to be experienced in minutes, versus oftentimes in hours for current generations of cannabinoid infusion technologies.
“We believe what we have created is highly significant to the cannabis industry, especially as nationwide cannabis legalization looms on the horizon,” commented Arman Tabatabaei, CEO of Cannabis Global. “This new cannabinoid delivery system is designed to allow beverage, food, and cosmetic product formulators to use significantly less cannabinoids in products while achieving similar or meaningfully greater efficacy. Our patent filing covers not only the new processes developed to create the new forms of cannabinoids but also the nanoparticles and nanofibers using the outlined processes and ingredients. We are especially proud of the fact we have been able to use food-grade ingredients in many of the formulations allowing consumer product companies to produce the clean labels consumers are increasingly desiring.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. CBGL shares have been moving higher over the past week overall, pushing about 14% to the upside on above average trading volume.
Cannabis Global Inc (OTCMKTS:CBGL) just cracked the surface on commercial-stage operations in its last quarterly update. And, given the strong R&D foundation, we could imagine big things ahead if it executes on its current strategy.
Medical Marijuana Inc (OTCMKTS:MJNA) is a chronic loser in the space, but one that can occasionally get hot and run in a spike on some sort of announcement. However, the long-term trajectory has been overpromising, underperformance, and a dilution-filled trip down the chart.
The company operates in the medical marijuana and industrial hemp markets. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry.
Medical Marijuana Inc (OTCMKTS:MJNA) recently announced that the Japanese division of its subsidiary Kannaway® had its best month ever in Company history in July 2020.
“Kannaway has made tremendous progress around the world as consumers in Japan and across Asia continue to show an exciting increase in interest for cannabidiol (CBD) products,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “Our team has truly shown what can be accomplished with passion, hard work and high-quality products designed to support the body’s crucial endocannabinoid system.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. MJNA shares have been moving higher over the past week overall, pushing about 2% 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.
Medical Marijuana Inc (OTCMKTS:MJNA) managed to rope in revenues totaling $11M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -46.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($5M against $10.5M, respectively).
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