Charlotte’s Web Holdings Inc. (OTCMKTS:CWBHF) stock has been on fire and showing no signs of slowing down. Since June, the stock has rallied by more than 80% as positive price action signal strengthening market sentiment. The spike has coincided with an uptick in trading volume signaling renewed investor interests.
Enhancing Hemp Production
Price action indicates that the stock could be on its way back to 52-week highs of $25.25. Pullbacks from higher highs have so far acted as buy opportunity from where buyers have come in and continued to push the stock higher. Above the $20 mark, Charlotte’s Web looks set to make a run for the $24 mark, a crucial resistance level.
A 187% increase in Hemp acres planted is one of the development that continues to strengthen investor confidence on Charlotte’s Web. As it stands, the company is well-positioned to be a market leader in Hemp CBD, which explains the love it continues to receive in the market.
According to the Chief Executive Officer, Deanie Elsner, strong demand for Hemp products is one of the factors guiding increased Hemp production. With tens of thousands of Americans, relying on the company’s products, it is safe to say that Charlotte’s web is on its way to generating significant returns.
Similarly, Charlotte’s Web is in the process of expanding its hemp cultivation production and distribution operations. The company is fresh from signing a lease for a 136, 610 square foot industrial building in Colorado, poised to support the expansion drive.
“This is a time of rapid growth and transformation for Charlotte’s Web, and these new facilities are necessary to support the production, warehousing and distribution of our growing product lines and volumes,” said Stephen Lerner, Chief Operating Officer at Charlotte’s Web.
In addition to ramping up Hemp production, Charlotte’s Web is also increasingly exploring new ways of strengthening its sales channels. The company is fresh from inking a strategic partnership with Kroger Co that is opened to carrying the company’s products in 1, 350 stores across 22 states in the U.S A deal with Kroger marks an important milestone in Charlotte’s Web push to strengthen its distribution network in pursuit of revenues.
Improved Hemp production capacity, as well as enhanced distribution network, is one of the reasons why Charlotte Web is flying high. The stock looks set to continue edging higher as investors take note of the solid fundamentals.