The Daily Buzz: Three for the Friday Trading Radar (FRAN, CURLF, CWBHF)

admin - September 13, 2019

Francesca’s Holdings Corp (NASDAQ:FRAN) just reported financial results for the second quarter ended August 3, 2019. The stock has been skyrocketed in reaction on a small float.

Michael Prendergast, Interim CEO, stated, “We are very pleased to see significant improvement in our comparable sales for the second quarter. After a long period of double digit comp sales declines we achieved considerable sequential improvement in our comp sales in each month within the quarter. Gross margin was impacted by aggressive markdowns on poor performing legacy products that we accelerated within the quarter. However, we saw strong and better than expected sell through on new merchandise. Our merchant teams have done an excellent job of shifting back to a “read and react” buying and planning strategy, resulting in more nimble buying and planning processes. We believe effective implementation of this data analytic and customer demand strategy is driving a meaningful improvement in both boutique traffic and conversion during the second quarter.  We realized material savings this quarter through a number of cost reduction initiatives that we have been executing since the beginning of fiscal 2019.  In addition, we continue to make headway in optimizing our real estate portfolio. We are extremely pleased with our progress, which we believe is validating our go-forward turnaround strategy and look forward to driving continued positive momentum in the business.”

Francesca’s Holdings Corp (NASDAQ:FRAN) bills itself as a company that, through its subsidiaries, operates a chain of boutiques.

The company offers fashion apparel, jewelry, accessories, and gifts for women between the ages of 18 and 35. Its apparel products include dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates; and jewelry comprise necklaces, earrings, bracelets, and rings.

The company’s accessories consist of handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches, beauty products, and hair accessories; and gifts include fragrances, candles, bath and body products, home accessories, books, wall art, nail polish, and miscellaneous items.

As of February 2, 2019, the company operated approximately 727 boutiques in 47 states and the District of Columbia, as well as serves its customers through francescas.com. Francesca’s Holdings Corporation was founded in 1999 and is headquartered in Houston, Texas.

Francesca’s Holdings Corp (NASDAQ:FRAN) pulled in sales of $87.1M in its last reported quarterly financials, representing top line growth of -27.2%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($17.5M against $83.8M, respectively).

Curaleaf Holdings Inc (OTCMKTS:CURLF) the company is the first in Florida to launch medical cannabis tablets, available in all 26 Curaleaf dispensaries across the state. Curaleaf, operator of the largest cannabis retail footprint in the US, with 49 dispensaries across the country, also sells medical cannabis in tablet form in Connecticut, New Jersey, Maryland and New York, with plans to launch in additional states.

The company operates as an integrated medical and wellness cannabis operator in the United States. The stock is the trading equity of the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.

Curaleaf, Inc. operates 30 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.

CURLF generated sales of $64.9M, 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 38.4% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($140.3M against $64.1M).

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.

The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

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. CURLF shares have been relatively flat over the past month of action, with very little net movement during that period.

“Knowing that our premium quality medical cannabis products allow so many of our patients to live life well, we are always looking for alternative administration methods to meet patients’ needs,” said Joe Lusardi, Curaleaf CEO. “We are proud to be the first to offer Florida’s patients the option of medical cannabis tablets.”

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) is probably the most clear pure-play in the CBD space. With estimates on CBD product sales growth recently ratcheted higher for the year by several firms, the stock will likely continue to be on the trading radar in a big way.

The company managed to rope in revenues totaling $33.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 50.6%, 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 ($67.2M against $18.3M).

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.

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.

We haven’t seen any obvious company-specific catalysts emerge the past couple weeks, but we wouldn’t be surprised to see that change into quarter end. The environment is rife with expansion potential for a company so well placed on an industry basis. So it likely should be a mainstay on the trading radar.

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