Technicals and Fundamentals Come Together for PotNetwork Holdings Inc (OTCMKTS:POTN)

Technicals and Fundamentals Come Together for PotNetwork Holdings Inc (OTCMKTS:POTN)


PotNetwork Holdings Inc (OTCMKTS:POTN) has been working sideways in what technicians call a symmetrical triangle pattern. The pattern has reference points delineated by the stock’s key trend highs around the $0.96 area and its subsequent pivot low at about $0.33/share. That forms the outline, with the central axis area coming through in the region of $0.50-0.65/share, where the stock is currently trading. As the pattern plays out, the company continues to report strong sales growth guidance for its CBD business.

In that vein, the company just announced that its wholly-owned subsidiary, Diamond CBD, Inc., has reported that the Company has generated over 3 quarters of a million dollars, just within the first 10 days of February.

PotNetwork Holdings Inc (OTCMKTS:POTN) has two wholly owned subsidiaries, First Capital Venture, the makers of Diamond CBD OILS and Sunrise Auto Mall Inc.

Diamond CBD is focused on the advanced research and development of “the industry’s finest premium hemp extracts” and making them available to the global marketplace. The Company’s “notable team”, consisting of hemp industry pioneers and natural product experts, chemists, and scientists, is dedicated to producing “the finest and purest Cannabidiol (CBD) oil.”

POTN’s message continues: “Setting the Company ahead of its competitors, First Capital Ventures Inc and Diamond CBD Inc. deliver advanced product quality to market through the team’s creation of diverse and top quality hemp extracts that contain a broad profile of cannabinoids and other natural hemp derived molecules.

The result is a robust selection of Diamond CBD Oils, made from Industrial Hemp, which enhances the formula to be considered among the most powerful natural CBD E-Liquids on the market. Sunrise Auto Mall, Inc., launched in June of 2014, as an operation geared toward enabling people challenged with bad or no credit in securing quality transportation while simultaneously rebuilding the client’s credit.

POTN has developed a highly profitable business model around the continually rising subprime lending industry. Potnetwork Holdings Inc. acting as the holding company for the present subsidiary is planning to continue to expand from within as well as through future acquisitions.”

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As noted above, the company just announced that its Diamond CBD subsidiary has reported that the Company has generated over 3 quarters of a million dollars, just within the first 10 days of February.

According to the release, “Eclipsing last year’s sales of $163,000 for the same interval, revenues reflect year-over-year growth in the range of 363 percent. PotNetwork Holding continues advancement on multiple levels; expanded product lines, enhanced corporate strategies, and the continued strengthening of momentum in support of the Company’s establishment of consistent record-breaking trends.”

The chart pattern suggests that we have a battle underway between bulls and bears that is so far an even match over the past six weeks. However, the fact that this pattern has appeared in the context of a standing upward trend biases the pattern toward a bullish outcome on a larger time frame basis. Given the fact that the CBD Oil space is widely anticipated to grow at breakneck pace over coming quarters, one would be hard-pressed to fight against that technical interpretation at this stage of the game.

The chart shows -8% chopped out of share pricing for the name in the past week. But traders should keep this stock on the radar. POTN has a history of dramatic rallies. Moreover, the name has registered increased average transaction volume recently, with the past month seeing a bit less than 130% beyond its prior sustained average level.

Currently trading at a market capitalization of $146M, POTN apparently has about $576k in cash on the books as of its latest reporting documentation, which compares quite favorably with about $30k in total current liabilities. The company has also pulled in about $4.4M in sales for the quarter ended September 30, 2017. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $POTN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $POTN, either long or short, and we have not been compensated for this article.