Unless you’ve been living under a rock, you are probably almost sick of hearing about the projected investment boom in CBD (cannabidiol). CBD comes from the cannabis plant and has been shown to have many health benefits in terms of both prevention and treatment, as well as a generally positive impact on health and well-being in everyday life.
As such, a number of companies have moved into the space. With the signing of the 2018 Farm Bill, analysts expect the pace of growth in the CBD space to only accelerate. So, we thought it was a good time to take a close look at the space and highlight some interesting investment opportunities. We will focus on three interesting stocks with ties to CBD today: New Age Beverages Corp (NASDAQ:NBEV), For The Earth Corp (OTCMKTS:FTEG), and GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH).
New Age Beverages Corp (NASDAQ:NBEV) trumpets itself as a healthy functional beverage company that engages in the development, marketing, sales, and distribution of beverages.
The company offers ready to drink (RTD) tea, RTD coffee, kombucha, energy drinks, relaxation drinks, coconut waters, functional waters, and rehydration beverages, as well as functional medical beverages.
It provides its products under the Búcha Live Kombucha, XingTea, XingEnergy, Marley One Drop, Marley Mellow Mood, Marley Mate, Marley Cold Brew, Coco-Libre, PediaAde, and Aspen Pure PH and Aspen Pure Probiotic Water brands, as well as the Bio-Shield and en-Hanced brands.
The company sells its products across 50 states in the United States; and approximately 10 countries internationally through direct and store door distribution systems. New Age Beverages Corporation is headquartered in Denver, Colorado.
New Age Beverages Corp (NASDAQ:NBEV) generated sales of $13.2M, 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 -0.9% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($28.6M against $3M).
NBEV shares have been trending to the upside after nailing support into place in November at key support near the stock’s 200-day simple moving average just above the $3 level.
For The Earth Corp (OTCMKTS:FTEG) trumpets itself as a company that manufactures and sells consumable household products in the United States and internationally.
However, based on the company’s most recent press release, this is the newest player in the red hot CBD space. The company just announced that it has signed a Letter of Intent with Vliso AI to acquire their CBD Vending Machine Division (CHOW).
According to the release, “We’ve recently signed a letter of intent with Vliso AI for their CBD Vending Machine Division, (CHOW). FTEG’s CEO, Nelson Grist, said, “Vliso AI (Vliso.com) has AI vending technology that we hope to use to make a quick and profitable entrance into the CBD space.” The placement of CBD vending machines requires a lower placement cost into public areas that are not easily accessible or cost effective to have a presence. It is important to note that consummation of this transaction and our entrance into the CBD space is entirely dependent on future financing, of which there is no assurance.”
The removal of hemp from federal prohibition under the Controlled Substances Act of 1970 (CSA) will, according to all analysis, indeed mean a broad expansion in the scale and scope of the total U.S. hemp industry. And experts expect this to have a disproportionately positive impact on growth in the hemp-derived CBD products market segment (see new New Frontier Data’s Hemp Business Journal estimates, for example).
That should bode well for investors as the stock test key support on the chart on increasing trading volume.
GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) bills itself as a biopharmaceutical company that engages in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant.
The company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. Its lead product is Epidiolex, an oral medicine which is in Phase III clinical development for the treatment of refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.
The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates, which are in Phase I and II clinical development for the treatment of glioma, neonatal hypoxic-ischemic encephalopathy, adult epilepsy, and schizophrenia.
Further, the company has license and development agreements with Otsuka Pharmaceutical Co. Ltd.; Almirall S.A.; Bayer HealthCare AG; Ipsen Biopharm Ltd; and Neopharm Group. It primarily operates in Europe, the United States, Canada, and Asia. GW Pharmaceuticals plc was founded in 1998 and is based in Cambridge, the United Kingdom.
GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) managed to rope in revenues totaling $2.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -13.5%, 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 ($354.9M against $58.7M).
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