The Daily Buzz: On the Radar this Week (CWBHF, KSHB, CRLBF)

Steve Hackney - August 19, 2019

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) has continued to press on in a generally bullish mode and posture, pulling back last week to test key support well above its major moving averages before springing back to the upside to close the week with only minor losses in a trend that has pushed the stock over 80% higher in the past two months.

To further flesh out the story, the company just announced that Russell Hammer has joined the Company as Chief Financial Officer.

According to the release, “Mr. Hammer, who has most recently served as an advisor in private equity investments, brings more than 30 years of finance experience in the retail, tourism and technology sectors. With his experience leading multi-billion-dollar multinational companies, he is the latest top-tier executive to join Charlotte’s Web as the Company accelerates its growth and evolution into a global consumer packaged goods (“CPG”) brand. Mr. Hammer replaces Rich Mohr, who as CFO has overseen the Company’s successful transition to a publicly traded company and market leader in hemp CBD products.”

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) bills itself as a company that 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 was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte’s Web Holdings, Inc. in July 2018. The company was incorporated in 2018 and is headquartered in Boulder, Colorado.

KushCo Holdings Inc (OTCMKTS:KSHB) is a stock with some very interesting dynamics dominating the chart right now. The most important point that should jump out at even a casual price action observer is the way this stock closed out the action last week, dropping down to test the $3.60 area and then rebounding in a blitz of accumulation buying to close back up near $4.50. It was a huge turnaround, representing a 22% turnaround in the final 24 hours to close the week basically flat. So much for the shorts who thought they might have a foothold on a bearish pattern break.

Helping to frame recent action, the company just announced the creation of their new Retail Services division. According to the release, “The new business unit will focus on providing comprehensive retail solutions, through strategic partnerships with best-in-class sales agencies, to leading CBD brands. KushCo’s retail services division will focus on industry education and compliance, as well as building distribution networks of CBD brands across conventional retail channels. With Retail Services experienced leadership optimizing growth opportunities, this division will expand the Company’s platform and fuse two industries that have historically operated independent of each other.”

KushCo Holdings Inc (OTCMKTS:KSHB) is the parent company to a diverse group of business units that are transformative leaders in the cannabis, CBD and other related industries. KushCo Holdings’ subsidiaries and brands provide exceptional customer service, product quality, compliance knowledge and a local presence in serving its diverse customer base.

KushCo Holdings’ brands include Kush Bottles, a dynamic sales platform that is the nation’s largest and most respected distributor of packaging, supplies, and accessories, Kush Energy, which provides ultra-pure hydrocarbon gases and solvents to the cannabis and CBD sector, Hybrid Creative, a premier creative design agency for cannabis and non-cannabis ventures, and Koleto Packaging Solutions, the research and development arm driving intellectual property development and acquisitions.

Founded in 2010, KushCo Holdings has now sold more than 1 billion units and regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe. KushCo Holdings subsidiaries maintain facilities in the five largest U.S. cannabis markets as well as having a local sales presence in every major U.S. cannabis market.

 


Cresco Labs Inc (OTCMKTS:CRLBF) pulled in sales of $28M in its last reported quarterly financials, representing top line growth of 25%. That’s a strong curve when you consider that this stock had declined as much as 40% in just over months as of late last month. This is a productive name in a fast-growing market space – cannabis, with US and Canadian exposure – so it’s rather remarkable to see such a steady and dominant offer weighing down action in shares of the stock over that period.

But that’s also why we would highlight it this morning: the chart may have turned, and it may be important to have this stock back on the radar as the action progresses this week. In all, we have seen a recovery of nearly 35% over the past half-month. And now we have a key test underway at the downward sloped trend line defining the pullback from the highs in April as well as the all-important 50-day moving average to kick off the new week.

Cresco Labs Inc (OTCMKTS:CRLBF) pulled in sales of $28M in its last reported quarterly financials, representing top line growth of 25%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($151.5M against $49.5M).

The company manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products. 

The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand. 

In addition, it operates a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.

Framing recent action further, the company just announced that its Euro-denominated shares are now listed on the Frankfurt Stock Exchange and are trading under the symbol “6CQ.” According to the release, the Company’s shares continue to be listed on the Canadian Securities Exchange under the symbol “CL” and on the OTCQX under the symbol “CRLBF.”

This is important as it gives the company access to a wider pool of capital markets and investment flows, which promises to potentially feed back into accelerating growth across key segments.

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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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