There’s every other CBD stock out there, and then there’s Smart Decision, Inc. (OTCMKTS:SDEC). That seems to be the message from the market right now. SDEC shares continue to display strength following a big breakout move from a technical basing range in January, where the stock found support in the nickel range. Now, the stock is up testing the $0.35 level. As far as we can tell, it’s the only stock associated with the CBD space that is showing any real positive action for its shareholders. So, what’s going on here?
The most important point to make on SDEC is that it isn’t a CBD producer or CBD-based product supplier. It’s a unique solution for CBD producers and suppliers to gain access to consumers, which they desperately need. CBD has suffered from slow action by regulators but also a general glut. There’s no denying the fact that consumer demand growth is rampant – analysts are calling for 125% annual growth for sales of CBD-based products over the next 5 years, making it one of the most powerful growth trends in the market right now. But that hasn’t translated into success for equity investors in the space, except for SDEC.
Smart Decision, Inc. (OTCMKTS:SDEC) is effectively a portal for ecommerce in the CBD space. It is predicated on the inescapable reality that growth in CBD product sales is a consequence of a steady and robust mainstreaming trend – basically, this was a small niche market that is turning into a mainstream market. That means, every day, more and more people set out in search of CBD-based products for the first time, with no real understanding of how to shop for the right product to meet their needs.
That’s no small issue. CBD is a complicated market. You have to choose among brands, delivery mechanisms, potencies, bioavailability formats, and all sort of other variables. For a first time consumer, it’s hard to feel confident you are buying the right product, and that’s frustrating. Even appraising the challenge can be a hit to confidence, which turns away a lot of potential sales.
The Smart Decision solution is “a consumer-facing resource designed in partnership with MIT-trained software engineers, leveraging computational data science, machine learning, and AI to connect CBD product suppliers with new-adopter customers in search of CBD-based product solutions, overcoming the overly complicated CBD product landscape to allow CBD shoppers to quickly find the right product to suit their needs.”
The platform is on-schedule in the development timeline and the company plans to launch a beta version by the end of March. An advanced preview of the platform will reportedly be granted in person to attendees at the USA CBD Expo 2020 in Las Vegas, NV, which takes place from February 13-15.
This platform needs products. In that vein, the company recently announced that it was seeing huge demand from producers and suppliers to join up and sell through the algorithm on CBDSmartDecision.com after it launches this spring. The demand to join up has been so strong, the company’s CEO, Adam Green, has already said they are contemplating capping the community of suppliers on the platform very soon to drive a scarcity value for access as a pay off for the stock’s longer-term shareholders.
The Big Picture
Smart Decision, Inc. (OTCMKTS:SDEC) is a new force in the hemp space. And the company plans to be just that: a force in the hemp space. These guys have ambitions that run all the way to working with hemp regulators and the broad scientific community to ensure a safe, happy ascent for hemp-based products in North America, clearing the road of any official risks to their model.
That makes sense.
In fact, the company just announced that it has joined both the National Hemp Association and the Hemp Industries Association in order to expand its position as a leader in the Hemp and CBD industry.
“Ultimately, this represents an outreach that will span thousands of industry professionals that we can tap to create even greater value for our current and prospective shareholders,” remarked Adam Green, CEO of Smart Decision. “Through these relationships, we can work to educate the public about the exceptional attributes of hemp products, facilitate the exchange of information and technology between hemp agriculturists, processors, manufacturers, distributors and retailers, and maintain and defend the integrity of hemp products.”
So far, this is being taken as one more notch in the company’s win column as it continues to push higher. But this is still very early innings. Huge catalysts lie in front of this one for the market to latch onto. It will be showing off the goods at conferences, officially launching, releasing terms of partnership deals it negotiates with suppliers, and ultimately starting to evidence financial performance and growth in the months ahead. That could translate into a lot more upside in SDEC shares.