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The Daily Buzz: Finding Volatility on a Friday in August (OSTK, CWBHF, CVSI)

Overstock.com Inc (NASDAQ:OSTK) operates as an online retailer in the United States and internationally. It operates through Retail and tZERO segments.

Shares ripped higher yesterday following news that its CEO, Patrick Byrne, was set to step down following controversial comments related to investigations of election interference and US intelligence agents (the “deep state” comments).

The company offers furniture; and home décor, including rugs, bedding and bath, home improvement, kitchen items, and other related products. It also operates Worldstock Fair Trade, a store that provides handcrafted products; Pet Adoptions, a free service and portal to display pets available for adoption; and Overstock Hotels, a portal that enables customers to search and book properties within its Website.

In addition, the company operates Supplier Oasis, a single integration point for partners to manage their products, inventory, and sales channels, as well as obtain multi-channel fulfillment services through its distribution network; and offers businesses advertising products or services on its Website. It provides its products and services through its Internet Websites, such as overstock.com, o.co, and o.biz.

Further, it focuses on the development and commercialization of financial applications of blockchain technologies. The company was formerly known as D2-Discounts Direct and changed its name to Overstock.com, Inc. in October 1999. Overstock.com, Inc. was founded in 1997 and is headquartered in Midvale, Utah.

This should not be overlooked with a float in play that’s limited — about 28M shares. Traders should not overlook this combination, as a jump in average daily transaction volume in a stock with a restricted float can unleash fireworks as supply is squeezed.

OSTK has a significant war chest ($125.9M) of cash on the books, which is balanced by about $203.8M in total current liabilities. OSTK is pulling in trailing 12-month revenues of $1.6B. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -22.6%.

 

CV Sciences Inc (OTCMKTS:CVSI) 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.

The company just announced further expansion of its industry-dominating PlusCBD™ Oil brand into the specialty retail channel with The Vitamin Shoppe, Inc. (NYSE: VSI).

According to the release, “CV Sciences’ expansion broadens distribution and availability of a broad assortment of the Company’s best-selling PlusCBD™ Oil products. Distribution across The Vitamin Shoppe’s national footprint includes both topical products, such as PlusCBD™ Oil Extra Strength Balm and recently launched PlusCBD™ Oil Roll-On, as well as PlusCBD™ Oil full spectrum hemp extracts including Gold Formula Softgels, Gold Formula Drops, and Total Plant Complex Sprays and Capsules.  PlusCBD™ Oil products will be available beginning on September 22, 2019 at 383 Vitamin Shoppe stores in 30 U.S. states and Puerto Rico. This expansion brings CV Sciences’ PlusCBD™ Oil distribution to more than 5,300 retail locations throughout the U.S.”

Moreover, CV Sciences, Inc. operates as a life science company. 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.

If you’re long this stock, then you’re liking how the stock has responded to the announcement. CVSI shares have been moving higher over the past week overall, pushing about 19% to the upside on above average trading volume.

CV Sciences Inc (OTCMKTS:CVSI) generated sales of $14.9M, 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 4.8% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($13.6M against $11.3M).

 

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) continues to trace out a lateral long-term pattern with the potential to breakout and make this period since it began trading all look like an elaborate base. Time will tell.

The stock has been strong over the past couple months as estimates around the CBD space have been on the move higher with reports that mainstream consumers are starting to adopt the substance at an unexpected rate.

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) develops and distributes hemp-based cannabidiol (CBD) wellness products. Its products include CBD hemp oils, capsules, topicals, and pet products that feature CBD hemp oil extracts.

Charlotte’s Web Holdings, Inc. sells its products online as well as through distributors, and brick and mortar retailers. The company is a clear market leader in the production and distribution of innovative hemp-based cannabidiol wellness products. Founded by the Stanley Brothers, the Company’s premium quality products start with proprietary hemp genetics that are responsibly manufactured into whole plant hemp extracts naturally containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other beneficial hemp compounds. Industrial hemp products are non-intoxicating.

Charlotte’s Web current product categories include tinctures (liquid products), capsules, topical, as well as pet products. Charlotte’s Web hemp-based whole plant extracts are sold through select distributors, brick and mortar retailers, and online through the Company’s website.

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.

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) generated sales of $33.5M, 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 16% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($67.2M against $18.3M).

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.



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