The CBD Boom is going to roll on into a new phase.
And we want to welcome you to that adventure, and to take a closer look at a few stocks that might represent deep value in the space – they are all “beaten down” and all perhaps set to have a say in who dominates the scene in the next phase: Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF), International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH), CV Sciences Inc (OTCMKTS:CVSI).
Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) is probably the leading pure-play in the CBD space among all investable CBD companies on the publicly traded markets by current measures in terms of exposure and market penetration. But that doesn’t mean it will be able to hold onto that top spot indefinitely. And there is an army of companies looking to grab the trophy.
But none of that means the company isn’t executing on its opportunities.
So far, as each phase of the CBD boom has unfolded, Charlotte’s Web has managed to further entrench itself in a leadership role in terms of distribution footprint and branding reputation. That’s an execution story with some legs and it continues to demand a corresponding level of attention from investors seeking exposure to the thematic premise of CBD.
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.
The company sells its products online as well as through distributors, and brick and mortar retailers. 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.
The company’s current product categories include tinctures (liquid products), capsules, topical, as well as pet products. 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 of its core opportunities. It has established a reputation for execution thus far, but it doesn’t have a moat around that success, so its leadership role is vulnerable to usurpation from smart upstarts below the radar, such as GDET, which we discuss below.
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. (OTCMKTS:ISWH) is an up-and-comer with a lot to prove, but with some major momentum in place right now. The company is doing great, even if the stock is still saddled with either
The company is trading deep in sub-penny land, but just reported big quarterly numbers, including back to back quarters of triple-digit sequential revenue growth and profitability on an operating basis. To push the story even further, ISWH just announced an agreement in the works with a major partner for manufacturing and marketing to launch five new CBD-based products and lead the charge in a comprehensive branding refresh for the company’s P19 CBD-based products brand.
“While we cannot fully disclose the identity of the counterparty in this Agreement, we can state that this is a well-known, nationally respected firm that has in-house access to cutting edge technology and a competitive, nationwide marketing and distribution footprint,” stated Terry Williams, CEO of ISWH.
International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) bills itself as an authorized importer, licensor, and marketer of premium beverage brands, with sales of innovative products and brands worldwide. But it’s now into much more than that, with strong results in a Health and Wellness segment that leans on both its proprietary P19 CBD products brand and a thriving Home Healthcare service.
Based in Nevada, the Company’s expertise lies in the strategic development and aggressive early growth of its brands and the establishment of these brands as viable and profitable as an incubator. ISWH intends to nurture emerging brands through critical stages of market development, including conceptualization, go-to-market strategy, supply chain and logistics engineering, integrated marketing, and distribution.
In addition, ISWH has now established itself as a health and wellness company with a focus on reshaping the CBD products market through state-of-the-art nanotechnology processes, developing a wide range of nano-infused CBD gummies and beverages formulations. These products will be sold through the Company’s website, as well as through established wholesale and retail distribution channels.
The company has also partnered with Bengala Technologies to develop and commercialize enterprise and B2B software technology products targeting the logistics and supply-chain marketplace.
According to its latest release, the deal will involve trademarks, web development, social media, and overall marketing strategy, along with manufacturing services for the products themselves. The partner mentioned in the release apparently has a powerful reach with a national presence and will be involved in distribution overall.
Mr. Williams continued, “As soon as the Agreement is fully executed, we will disclose all facts involved. But, given where we know things stand at this point, we felt we had a responsibility to inform our shareholders and the broader marketplace that this deal was in the works and set for completion, and to begin to convey the dramatic impact that this will likely have on our operations going forward. This Agreement sets in motion a process that will put ISWH on the map in the CBD space on a significantly expanded scope and scale.”
ISWH is pulling in trailing 12-month revenues of $172K as of end of June, but just reported a monster Q3 with over $225K in fresh income and gross profitability from operations. In addition, the company is seeing massive recent top-line growth, with sequential quarterly revenues growing at 6497.2%.
Shares of CV Sciences Inc (OTCMKTS:CVSI) may have just reacted to the proverbial “kitchen sink” quarter, with a splash to the downside that has been followed by the strangest thing seen on the stock’s chart for quite some time: the rare specter of “support”. The company just announced its financial results for the quarter ended September 30, 2019, highlighted by revenues of $12.6 million.
“We continued to execute our expansion efforts, growing our retail distribution by 18% during the third quarter. We added new national retail partners in both the food, drug and mass (FDM) and natural products channels and we continue to see strong retailer interest across all channels. We broadened our product offerings, with the launch of a new body care line, further expanding our presence in hemp-derived CBD topicals, while allowing us to capitalize on the growing interest of national retailers,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.
CV Sciences Inc (OTCMKTS:CVSI) bills itself as a life science company that 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.
According to company materials, “CV Sciences, Inc. (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. CV Sciences, Inc. has primary offices and facilities in Las Vegas, Nevada and San Diego, California.”