Is it Time to Focus on CBD Stocks Again (YCBD, RLBD, NEPT, JAZZ, TPB, MJNA, CVSI)

One of the keys to finding new opportunities is discovering deep value – where investors have tossed everything overboard in a particular theme with no regard for long-term performance potential. Find those opportunities and you unlock enormous stores of long-term low risk return potential.

The CBD space may offer such an opportunity right now. 

The long-term performance potential is defined by the mainstream adoption of CBD products over the next 5-10 years. That growth is rated by top analysts to be among the most dramatic of any industry in the world over that time. But the rose went off the bloom for investors on a supply boom a couple years ago. And over-indebtedness sealed the deal on the localized bear.

But now we have that same long-term growth picture in place and some very undervalued stocks, given the context provided by those projections for overall CBD growth. According to Research and Markets, the global cannabidiol (CBD) oil market is expected to reach $5.3 billion by 2025 with Asia-Pacific as one of the fastest-growing regions.

As such, we take a look below at some of the most interesting names in the space. 

Neptune Wellness Solutions Inc. (Nasdaq:NEPT) is a diversified health and wellness company. It engages in building a broad portfolio of quality, affordable consumer products in response to long-term secular trends and market demand for natural, plant-based, sustainable and purpose-driven lifestyle brands.

The firm’s brands include Biodroga Neutraceuticals, MaxSimil, Organic Foods & Beverages, Beauty & Personal Care, Forest Remedies, Ocean Remedies, Neptune Wellness, Mood Ring, PanHash, Sprout, NurturMe, and Nosh. 

Neptune Wellness Solutions Inc. (Nasdaq:NEPT) recently announced that its subsidiary, Sprout Foods, Inc., has relaunched its website: https://www.sproutorganics.com. The new site provides a direct line for purchase with consumers via ecommerce and showcases a new look and feel for the Sprout brand, which is carried over into packaging, an updated logo, and a reset of the brand’s tone and voice.

“We believe refreshing our Sprout brand, relaunching the Sprout website and developing a seamless DTC platform is essential as we scale and prepare for a fully integrated DTC campaign in the first half of 2022. The new branding brings a cohesive look and feel across each of our product lines – from pouches to snacks to meals – enabling Sprout to have better brand recognition among consumers and further grow brand awareness,” said Capp Culver, CEO, Sprout Foods.

It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. 

Neptune Wellness Solutions Inc. (Nasdaq:NEPT) managed to rope in revenues totaling $12.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -42.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($48.6M against $29.9M).

Real Brands Inc (OTCMKTS:RLBD) is an up and coming name in the CBD space. The result of a 2020 merger with Canadian American Standard Hemp, the new arrangement brought together industrial-scale hemp CBD oil/isolate extraction and processing, wholesaling of CBD oils and isolate, and production and sales of numerous hemp-derived CBD consumer brands of smokable, edible and topical products.

RLBD is over 23% owned by Turning Point Brands, Inc. (NYSE:TPB), a billion dollar NYSE-listed company that is also a customer of RLBD now for bulk CBD oils and isolates used in Turning Point products. Turning Point has more than 250,000 points of distribution with leading brands such as Zig-Zag®, Stoker’s®, and Beech Nut®.

Real Brands Inc (OTCMKTS:RLBD) recently announced that it has launched ”Phaze Brand CBD”. According to the company’s most recent release, each new product is designed for a specific segment of an athlete’s typical day. Rise, Compete, Recover and Sleep are the four groups of SKUs and are purposely formulated with vitamins, extracts and other ingredients uniquely suited to each part of the day.

All PHAZE offerings are scrutinized for ingredient quality. Organic ingredients are used when possible, and all hemp extract is from U.S.-grown hemp.

“We are extremely proud of our newest brand PHAZE, as it represents a culmination of our five plus years in the hemp and CBD space,” stated CEO Thom Kidrin. “We have identified the target consumers and their needs, as well as defined their motivations to consume. In doing so, we have designed PHAZE to delight athletes who live to compete and are constantly in search of ways to train harder, perform better, and recover faster.”

Real Brands Inc (OTCMKTS:RLBD) has been outperforming the broad CBD space, which has been out of favor in a characteristic manner after its up-cycle two years ago. Now, it has consolidated. But RLBD has been demonstrating relative strength against that background. Shares are now holding above 2020 levels. 

Medical Marijuana Inc. (OTC US:MJNA) engages in the development, sale, and distribution of hemp oil that contains naturally occurring cannabinoids. It operates through the following three segments: U.S. Operations, HempMeds and Kannaway. 

The company’s services include development of cannabinoid-based health and wellness products, and the development of medical grade compounds. Its brands include Defined, Revive, Hempvap, Kannakick, and Canchew.

Medical Marijuana Inc. (OTC US:MJNA) recently announced that its subsidiary Kannaway Japan had its best revenue month in the Company’s history in November 2021.

“We’ve experienced tremendous growth and success in Japan this quarter,” said Kannaway CEO Blake Schroeder. “We are excited about our continued development throughout Asia-Pacific as we continue to expand our presence throughout the region.”

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. 

Medical Marijuana Inc. (OTC US:MJNA) managed to rope in revenues totaling $9.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -24.5%, 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 ($6.4M against $9M, respectively).

Other key tickers in the CBD space include cbdMD Inc. (NYSE American:YCBD), Jazz Pharmaceuticals PLC (Nasdaq:JAZZ), Turning Point Brands Inc. (NYSE:TPB), and CV Sciences Inc. (OTC US:CVSI).

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Published by Donna Fago

I believe in writing content Informing investors with the knowledge they need to invest better today- I have been following the markets for many years and was asked to join the team at WallStreetPR.com recently due to my passion for the markets.