An interesting thing has happened for PotNetwork Holdings Inc (OTCMKTS:POTN) shares over recent days. The stock was cast into the outer darkness and left for dead two weeks ago, as shares broke under the critical price of $0.30/share and dove another 35%. But then it hit the key 200-day simple moving average and, lo and behold, the level held. Since then, we have seen a sharp rally over more than 40% in the past few days following a week of clear and resolute support. One reason we might see such support is the company’s strong course of sales growth in its CBD segment.
As a case in point, the company just announced over $2 million in sales revenues recorded for the month of April. Compared with the $1,009,900 the company achieved in April of 2017, April 2018’s revenues represent a 98% year over year increase. According to the release, “PotNetwork Holdings, Inc.’s wholly owned subsidiary Diamond CBD, Inc. recently revealed that Diamond CBD’s Vape Additive, Liquid Gold Vape Juice, Chill Gummies, Tinctures and Biotech Creams, are the brand’s most successful products according to the 2018 Investor Relations FAQ, and are being sold in 1000’s of retail locations across the United States.”
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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According to the release, also in April, advancements included the Federal Drug Administration (FDA) request for public comments regarding “the abuse potential, actual abuse, medical usefulness, trafficking, and impact of scheduling changes” of cannabis and related products such as hemp-derived CBD oil, ahead of the 40th meeting of the World Health Organization’s Expert Committee on Drug Dependence (ECDD).
We’ve witnessed 5% added to share values of the stock over the past week of action, but that move comes in the context of a larger bearish trend. The situation may be worth watching. POTN has a history of dramatic rallies. What’s more, the stock has registered increased average transaction volume recently, with the past month seeing 16% beyond what we have been seeing over the larger time frame.
Earning a current market cap value of $58.8M, POTN has about $258k in cash on the books, which must be weighed relative to about $282k in total current liabilities. The company has pulled in about $14.5M in TTM revenues. The company is also seeing major top-line sales growth, with revenues jumping over 1,300% on an annual basis as of its latest filed data. You can bet we will update this one again as new information comes into view. 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.