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Get Prepared for the Resurgence of the CBD Theme (CURLF, GWPH, HMPQ, CVSI)

Mainstream consumer adoption of CBD products represents a tailwind set to push overall CBD sector growth in the quarters ahead. This year alone is expected to show growth of over 900% in the space as mainstream big-brand retailers – such as Kroger’s, Walgreens, Walmart, Rite-Aid, and others – begin to carry CBD products in plain sight of browsing consumers.

 

This dynamic has helped raise awareness of the health benefits now being attributed to CBD, which has become known for its ability to help treat minor issues such as headaches and inflammation as well as contributing in care for more serious ailments, such as cancer, epilepsy, and multiple sclerosis.

 

Stocks in the space have been correcting in recent months, but these bargains won’t last forever.

 

As we near the next major leg of this growth boom, investors need to be prepared with a shopping list. Here are some interesting suggestions to consider: Curaleaf Holdings Inc (OTCMKTS:CURLF), GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), HempAmericana Inc (OTCMKTS:HMPQ), and CV Sciences Inc (OTCMKTS:CVSI)

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) is a vertically integrated cannabis player that has started to move into the hemp-based CBD space in an aggressive fashion. The stock has been outperforming the broader hemp-cannabis-cbd complex in recent action, which is notable.

The company just announced that it has opened its 27th dispensary in Florida at 3631 NW Federal Highway in Jensen Beach on Friday, November 15th.

According to the release, “Curaleaf has the largest cannabis dispensary footprint in the US with 50 dispensaries across the country and continues to execute on its strategy of rapid expansion in Florida. The new 4,500 square foot location is accessible to patients from the Jensen Beach area, including the communities of Jupiter, Port St. Lucie, Stuart, Port Salerno and Palm City, and will offer a full range of premium quality medical cannabis products and private consultations by meticulously trained staff.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates a large number of dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry’s leading resource in education and advancement through research and advocacy.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

And the stock has been acting well over recent days, up something like 11% in that time.

“We have been hearing from patients about the need for a full-service medical cannabis center along the Martin County and St. Lucie County coast,” said Joe Lusardi, Curaleaf CEO. “Curaleaf is proud to be the first dispensary in Jensen Beach, and we look forward to serving this community.”

Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $64.9M 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%, 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 ($140.3M against $64.1M).

 

 

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) has predicated its overall model on prescription CBD-based products.

The company recently announced that two of its medicines, EPIDYOLEX (cannabidiol) oral solution and Sativex (nabiximols), have been recommended by the UK’s National Institute for Health and Care Excellence (NICE) to receive routine reimbursement from NHS England.

According to its release, “This represents the first-time any plant-derived cannabis-based medicine has been recommended by NICE for use on the NHS. Cannabidiol oral solution is recommended as an adjunctive therapy for seizures associated with Lennox Gastaut syndrome (LGS) or Dravet syndrome, in conjunction with clobazam, for patients two years of age and older. Nabiximols, reviewed as part of NICE’s evaluation of cannabis-based medicinal products (CBMPs), has been considered cost effective for the treatment of spasticity due to multiple sclerosis.”

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) bills itself as a biopharmaceutical company that engages in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant.

The company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. Its lead product is Epidiolex, an oral medicine which is in Phase III clinical development for the treatment of refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.

The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates, which are in Phase I and II clinical development for the treatment of glioma, neonatal hypoxic-ischemic encephalopathy, adult epilepsy, and schizophrenia.

Further, the company has license and development agreements with Otsuka Pharmaceutical Co. Ltd.; Almirall S.A.; Bayer HealthCare AG; Ipsen Biopharm Ltd; and Neopharm Group. It primarily operates in Europe, the United States, Canada, and Asia. GW Pharmaceuticals plc was founded in 1998 and is based in Cambridge, the United Kingdom.

We started off by noting that GWPH recently hit the wires with the announcement

Even in light of this news, GWPH has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -17%.

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) generated sales of $71.7M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 80.7% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($583.7M against $83.9M).

 

 

HempAmericana Inc (OTCMKTS:HMPQ) is more speculative, but could also be more promising given where the company is in its development path, and how cheap shares appear to be at present levels, with the transition from development stage to commercial stage operations just now underway.

The first point to make here is how the company’s recent catalysts line up – the company just announced a big inventory build of $500K-plus in top quality hemp-based CBD products. Following that, the company released its ecommerce site and started to accumulate a sales force. Now, we see a number of interesting marketing and distribution steps being taken, including its recent signing of an LOI to with Smart Decision, Inc. to participate in a cutting edge algorithmic product recommendation system.

This is important because the company has a strong manufacturing process with premium high-capacity supercritical CO2 CBD Oil extraction technology and a next-generation cultivation methodology. Once the inventory of the company’s high-grade product is assembled, all the remains is the distribution phase to monetize.

HempAmericana Inc (OTCMKTS:HMPQ) is an emerging leader in the CBD products market.

The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system.

The Company’s CBD oil business uses the brand designation, “Weed Got Oil”. HempAmericana also researches, develops, and sells products made of industrial hemp, including a popular brand of hemp rolling papers marketed under the brand name, “Rolling Thunders”.

The company’s leadership is well-regarded, as noted by Adam Green, CEO of Smart Decision, in its most recent release: “We’re excited to have the opportunity to work with HempAmericana. Their operations and CBD manufacturing processes are both unique and truly impressive. Hemp Americana’s CEO, Sal Rosillo, is a visionary in both the Cannabis and CBD space. CBDSmartDecision.com will be the first company that has HempAmericana’s permission to recommend their product range on the affiliate level.”

This is a highly speculative name because we haven’t seen big sales growth kick in yet. But, based on all appearances, that shift is underway now and we may be hearing a lot more for this stock soon.

 

CV Sciences Inc (OTCMKTS:CVSI) is, in many ways, the pure play spiritual leader of the CBD space due to its breakout parabolic move in 2018, catching the attention of the major financial media and really kicking off the CBD stock craze. But oh how the times have changed.

The company just announced a new distribution partnership with Southeastern Grocers, Inc. (SEG) with an initial launch at 115 Winn-Dixie stores in Florida and 37 BI-LO stores in South Carolina. PlusCBD™ Oil products are available at these stores as of November 3, 2019.

According to the release, “CV Sciences’ new distribution partnership with SEG’s Winn-Dixie and BI-LO banners increases distribution and availability of a broad assortment of the Company’s best-selling PlusCBD™ Oil products, including ingestible dietary supplements. New distribution at select Winn-Dixie stores in Florida and BI-LO stores in South Carolina includes both topical products, such as PlusCBD™ Oil Extra Strength and Original Balm and PlusCBD™ Oil Roll-On, as well as PlusCBD™ Oil full spectrum hemp extract dietary supplements, including Gold Formula Softgels, Gold Formula Drops and Gummies, and Total Plant Complex Sprays.”

CV Sciences Inc (OTCMKTS:CVSI) bills itself as a company that operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors.

It operates through two segments, Specialty Pharmaceuticals and Consumer Products. The company focuses on developing and commercializing prescription drugs utilizing synthetic cannabidiol (CBD) as the active pharmaceutical ingredient. Its initial drug candidate is CVSI-007 that combines CBD and nicotine for the treatment of smokeless tobacco use and addiction.

The company also engages in the development, manufacture, marketing, and sale of consumer products containing plant-based CBD under the PlusCBD Oil name in various market sectors, including nutraceutical, beauty care, specialty foods, and vape.

The stock has suffered a bit of late, with shares of CVSI taking a hit in recent action, down about -20% over the past week.

CV Sciences Inc (OTCMKTS:CVSI) generated sales of $12.6M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -25.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($14.2M against $12.1M).

Published by Christine Lawrence

Christine Lawrence is a financial analyst. She loves analyzing socioeconomic trends in the background of financial moves. She has overall seven years of experience in Auditing, Finance and Writing.

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