The Daily Buzz: Outsized Opportunities in CBD (CWBHF, ISWH, CVSI)

Donna Fago - September 19, 2019

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF)is the big pure-play name in the CBD space. It must be reckoned with. It’s also one of the most actively traded and researched tickers on the OTC right now. So we always have an interest in keeping tabs on the name.

First and foremost, famed investor Whitney Tilson recently gave a nod to Stansberry’s Tom Carroll, and his view of the stock. Mr. Carroll’s words aren’t to be lightly dismissed: “It’s the leader in CBD products, with a five-year lead on everyone else. It has strong brand recognition and great intellectual property on its seeds and strains. And it has far less regulatory uncertainty than most other companies. I think this is a ‘must own’ in the sector.”

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 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.

Charlotte’s Web Holdings, Inc. is the 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.

With CBD forecasts boiling over as US mainstream consumer adoption accelerates, the stock is set to potentially benefit if the company is able to effectively take advantage.

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) pulled in sales of $33.5M in its last reported quarterly financials, representing top line growth of 50.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($67.2M against $18.3M).

 

International Spirits & Wellness Holdings Inc. (OTC:ISWH)has been an interesting sub-penny pivot into the CBD space. The company has recently started to see huge revenue growth numbers and appears to be flying under the radar for investors, which may represent an opportunity.

The company’s Home Health Care segment is in a boom, demonstrating tangible financial performance in the space, leading to EBITDA profitability and 6,400% sales growth. That defines the company’s Q2 and Q3 of 2019. But Q4 is likely going to be defined by the company’s resumption of high volume sales of its P19 branded nano-infused CBD-based wellness products.

As noted in its most recent press release, after a period of reconfiguring its CBD supply chain and strategic relationship with BioPulse Labs, ISWH just announced that sales of its line of branded P19 CBD-Based Wellness products is resuming. This could put an enormous charge into the stock as investors start to look forward to a new narrative defined by profitability and strong growth heading into the final quarter of the year.

“Growth estimates for the overall CBD market are in the process of being revised sharply higher as mainstream consumer adoption dramatically outperforms prior baseline expectations for 2019,” commented Terry Williams, ISWH CEO. “It’s a perfect time for our diverse array of hemp-derived CBD products to resume live sales and distribution. This is a principle reason we have had to mark up our financial expectations heading into Q4.”

According to the company, ISWH is eager to restart sales given recent upward adjustments to forecasts for growth in CBD demand over coming quarters. Brightfield Group, a leading market and consumer intelligence firm for the legal CBD and cannabis industries, recently increased its own growth forecast for the CBD market, published analysis calling for a 706% year-over-year CBD product sales jump in the US in 2019 to around $5 billion in total sales, with sales expected to reach $23.7 billion by 2023.

While it is trading at a deep sub-penny price, the company is heading toward profitability with growing revenues. This is a contrarian opportunity that shouldn’t be discounted.

 

CV Sciences Inc (OTCMKTS:CVSI)suffered an key breach of technical support yesterday. That has an impact. The question now is whether or not that breakdown will extend with meaningful follow-through. To help add flesh on the bone, the company just announced that it received the “NEXTY Consumer Choice Award” in the Supplement Category for the Company’s PlusCBD Oil Total Plant Complex Peppermint Spray.

According to the release, “Bestowed each year at Natural Products Expo East and West, the NEXTY Awards recognize natural products that eclipse others within their category in terms of innovation, inspiration, and integrity. All product candidates are evaluated via a rigorous submission and two-tiered judging process, and the winning products are selected based on targeted consumer feedback from 1,000 consumers who sample and score the products.”

CV Sciences Inc (OTCMKTS:CVSI) focuses on developing and commercializing novel therapeutics utilizing synthetic Cannabidiol (CBD). 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 in manufacturing, marketing and selling plant-based CBD products to a range of market sectors, including nutraceutical, beauty care, specialty foods, and vape.

Following the CanX Acquisition in December 2015, CV Sciences commenced its preclinical drug development program during the second quarter of 2016. The Company’s drug development efforts include pursuing synthetic-based Cannabidiol drug candidates in areas that have the potential to provide significant improvements in therapeutic patient treatments with sizable addressable markets.

The company was formerly known as CannaVEST Corp. and changed its name to CV Sciences, Inc. in January 2016. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.

CV Sciences Inc is led by Michael J. Mona, JR. founder of CV Sciences, Mr. Mona possesses over 30 years of senior management experience in a range of industries including real estate/construction, industrial farming, chemical processing and consumer products. Mr. Mona is a recognized industry leader in hemp farming operations and chemical extraction and has established a global supply chain of hemp-derived products.

“Consumers choose and trust PlusCBD Oil because of our quality, purity and consistency. We offer the highest quality line of gluten-free, non-GMO full spectrum hemp CBD products in the industry and we’ve built our reputation on product purity and fundamentally sound research practices,” said Joseph Dowling, Chief Executive Officer of CV Sciences. “We are proud to be recognized by consumers as their favorite supplement, especially by those who are new to CBD.”

CV Sciences Inc (OTCMKTS:CVSI) pulled in sales of $16.9M in its last reported quarterly financials, representing top line growth of 36.5%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($15.7M against $11.8M).

Donna Fago

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.

Sign Up To Get Our Latest Stocks Alerts