With all the hoopla over the cannabis market, its younger brother is a more promising star: CBD. The CBD market wins over the cannabis market because it doesn’t have any hurdles to jump – that means legal or cultural – on its way to billions in total global sales. It just needs greater visibility.
Cannabis is expected to grow by leaps and bounds, but it suffers from both legal and cultural pushback. It isn’t just about legality here. Decades of disinformation and legacy norm boundaries have dealt cannabis a heavy toll in the PR department, and that ground isn’t easy to make up in a hurry.
But none of that exists in any important way for CBD because all of that is really about THC. Furthermore, there are other “innocent” cannabinoids to talk about next, including CBG, CBN, THCV, CBDA, etc. Each can get in line for its own coming out party over coming years.
But the winner right now, according to experts and analysts, is CBD. One recent piece of research (May 2020, Industryresearch.biz) for strictly CBD oil shows growth expectations at a CAGR of roughly 32.0% over the next five years, to reach over $1.25 billion by 2024, up from $311.8 million in 2019. These numbers are smaller simply because this is the market for CBD by itself. The market for CBD-based products is much larger, and will grow to be many times this size over the same period, with analysts calling for $15-25 billion in sales by 2025. Grand View Research, for example, puts the global cannabidiol-based products market at a value of $4.6 billion already by 2018. Their research suggests it will grow by over 22% CAGR from 2019 to 2025 to reach nearly $19 billion.
With that in mind, we take a look at a selection of active CBD stocks, including cbdMD Inc (NYSEAMERICAN:YCBD), Medical Marijuana Inc (OTCMKTS:MJNA), Cannabis Global Inc (OTCMKTS:CBGL), CBD of Denver Inc (OTCMKTS:CBDD), and Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF).
cbdMD Inc (NYSEAMERICAN:YCBD) owns and operates the consumer hemp-based CBD brand, cbdMD. The company’s product categories include CBD tinctures, capsules, gummies, bath bombs, topical creams, and animal treats and oils.
It also offers pet related CBD products under the Paw CBD brand name. The company distributes its products through an e-commerce Website, wholesalers, and various brick and mortar retailers in the United States.
cbdMD Inc (NYSEAMERICAN:YCBD) just announced that its pet CBD brand, Paw CBD, has seen an approximate 64% increase in net sales from its March 2020 quarter of approximately $750,000 to approximately $1,229,000 for its June 2020 quarter.
“Paw CBD was launched less than one year ago, and now it is one of America’s leading CBD pet brands,” said Ken Cohn, CMO of cbdMD, Inc. “Sales metrics are all moving in the right direction, with Paw CBD now trending at over a $7mm annualized run rate, and cbdMD’s overall direct-to-consumer (DTC) sales making up over 70% of the brand’s revenue. We are seeing the DTC power of cbdMD.com translating into significant growth for PawCBD.com.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 11% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 54% in that time on strong overall action.
cbdMD Inc (NYSEAMERICAN:YCBD) pulled in sales of $9.4M in its last reported quarterly financials, representing top line growth of 65.7%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($14.9M against $5.8M).
Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets, including CBD products. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry.
It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products. In addition, the company provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics, and consulting and securities services to businesses and individuals in the legal cannabis industry.
Medical Marijuana Inc (OTCMKTS:MJNA) just recently announced that its subsidiary Kannaway is proud to support the European Industrial Hemp Association (EIHA) in its recent opinion letter to the European Commission on the legal status of cannabidiol (CBD) and hemp.
EIHA’s letter was written in response to the European Commission’s decision to suspend all applications for hemp extracts and natural cannabinoids under the European Union’s Novel Food rules and also deem under a “preliminary conclusion” that extracts from the flowering and fruiting tops of the hemp plant should be considered a drug under the United Nations Single Convention on Narcotic Drugs of 1961. EIHA explains that the decision is “not based on the latest scientific literature nor inspired by the current debate at the United Nations level.”
Even in light of this news, MJNA has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -13%.
Medical Marijuana Inc (OTCMKTS:MJNA) managed to rope in revenues totaling $13.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -34%, 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 ($5M against $11.1M, respectively).
Cannabis Global Inc (OTCMKTS:CBGL) is one of the most interesting and possibly undervalued names in the space given its strong IP backing – with more than a half dozen provisional patents in process at the USPTO – and its innovative movement toward non-CBD cannabinoid production technology, suggesting the company will be at the vanguard of any move to establish the more exotic cannabinoids as commercial-scale markets.
One of the key moves made recently by the company is its venture into the alcohol substitute mixing space. According to its recent release, Hemp You Can Feel™ mixers are now available for online consumer purchase as well as bulk purchase for wholesale distribution. Cocktails based on the Hemp You Can Feel™ mixers provide an experience on par with light alcohol consumption, but without any of the harmful side effects of alcohol.
“Because of the ultra-low levels of hemp extracts utilized, we feel we set a new standard for product-safety and satisfaction in the hemp food and beverage category with this product,” commented Arman Tabatabaei, CEO of Cannabis Global. “While our Hemp You Can Feel™ beverages likely have the lowest hemp extract levels in the industry, we believe we provide a vastly superior positive effect upon use. We invite all consumers and alcohol industry participants to try what we see as the first viable alternative to alcoholic beverages. Our website is www.HempYouCanFeel.com. Take the HempYouCanFeel Challenge!”
Cannabis Global Inc (OTCMKTS:CBGL) believes the use of Hemp You Can Feel™ is significantly safer than the consumption of other hemp-based or high-cannabidiol (CBD) based beverages. Because of the natural water solubility of the preparations, only a minuscule amount of hemp extracts is present in the cocktail mixers. Laboratory analysis and results by High Performance Liquid Chromatography (HPLC) indicated the presence of hemp extracts in the non-detectable category.
Shares of CBGL are testing key support in recent action, and have a history of sharp runs off of support when challenged. We would also note that the company has been get more and more catalysts out in the public eye in recent weeks suggesting that something new and positive is usually on the way to fuel the next move.
Cannabis Global Inc (OTCMKTS:CBGL) had no reported sales in its last quarterly financial data. But it appears to be closing in on commercial-stage operational gains for shareholders and has a strong IP edge in the industry.
CBD of Denver Inc. (OTCMKTS:CBDD) is another less well-known name making strong strides in the space. The company engages in developing and commercializing cannabidiol (CBD) products. It is involved in the research, development, and distribution of premium hemp extract products. CBD of Denver Inc. operates as a subsidiary of Swiss Industry Ventures AG. CBDD is focused on using equity to acquire profitable Swiss assets at attractive valuations to create value for shareholders.
CBDD offers a superior CBD product that is full spectrum without depending on THC to activate the benefits of the cannabidiol. According to company materials, CBDD was created to offer the consumer a unique and new perspective on the unorganized and confusing CBD industry. CBD of Denver, Inc. is the only company to release a comprehensive CBD Social Network (www.cbdsocialnetwork.com). The idea of the network is to connect CBD users from America and around the world to interact and discuss CBD uses, treatments and products. The site has been active for 3 months and already receives 2000-2500 hits a day.
CBD of Denver Inc. (OTCMKTS:CBDD) just put out a recent announcement providing additional information on the revenue reported for Rockflowr, GmbH and CBD Welt 24, GmbH.
According to the release, revenue for Rockflowr and CBD Welt 24, subsidiaries of CBD of Denver, Inc., was reported in CBDD’s 2nd Quarter Disclosure with OTC Markets as of the date each company was acquired and not for their own full quarter. To provide context for the revenue numbers reported in CBDD’s quarterly statement, CBBD is providing the revenue generated by Rockflowr and CBD Welt24 for their full quarters and not just since they were acquired by CBDD in the middle of quarter.
Rockflower: For the period from April 1, 2020 through June 30, 2020 Rockflowr had revenue of 1,710,000.00 CHF or approximately $1,833,120.00 USD with net profits of 131,089 CHF or approximately $140,527 USD. CBD Welt 24: For the period from April 1, 2020 through June 30, 2020 CBD Welt24 had revenue of 56,500.00 CHF or approximately $60,568,00 with a net profit 45,416 CHF of approximately $48,686 USD. This amount only reflects revenue after the first harvest as it took two months from initial planting until first harvest to generate revenue. Moving forward, CBD Welt24 expects a harvest every month that should substantially increase revenue.
CBD of Denver Inc. (OTCMKTS:CBDD) just posted a net profit in Q2, which is the first time in the company’s history that it has achieved that milestone, which the company rightly sees as an indication of being on the right course in terms of providing value for its shareholders.
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.
Charlotte’s Web Holdings, Inc. is a 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 Holdings Inc (OTCMKTS:CWBHF) recently announced its “Trust The Earth” initiative, which is designed to democratize access to hemp-derived products for those seeking wellness and relief.
Studio Number One, a creative agency co-founded by artist Shepard Fairey, created the original artwork, first publicly exhibited by Charlotte’s Web as a mural in Brooklyn in October 2019. Today, Studio Number One’s original art is exhibited from the ground up, literally, as field art on a mammoth scale of 76-acres in America’s heartland.
Even in light of this news, CWBHF has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.
Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) pulled in sales of $28.9M in its last reported quarterly financials, representing top line growth of 0.1%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($75.5M against $42.2M).
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