Bulls and Bears Face Off in Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF)

Bulls and Bears Face Off in Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF)

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Traders focused on the CBD space will be watching the action in Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) closely as the stock pulls back in mid-week action to break under its April-May range lows and the 50-day simple moving average. To add some further color to the action, the company just announced the expansion of its canine-focused pet products, launching an all-new 12 SKU lineup comprised of hemp-extract infused chews, flavored and unflavored oils, and a topical balm.

According to the release, “Since introducing its first PAWS hemp-extract product for pets in February 2017, interest has exceeded all expectations, producing high demand and sales growth. With today’s launch of the expanded pet product line, Charlotte’s Web aims to increase its market share in the rapidly growing market segment for hemp-derived CBD pet products. According to market research firm, Brightfield Group, the CBD Pet market is forecast to grow at a Compound Annual Growth Rate (CAGR) of 151% between 2018-2022 to a market size of US$1.16B.”

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) bills itself as a company that 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.

Charlotte’s Web Holdings, Inc. sells its products online as well as through distributors, and brick and mortar retailers.

The company was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte’s Web Holdings, Inc. in July 2018. The company was incorporated in 2018 and is headquartered in Boulder, Colorado.

According to company materials, “Charlotte’s Web Holdings, Inc. is the market leader in the production and distribution of innovative hemp-based cannabidiol (“CBD”) wellness products. 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. Charlotte’s Web current product categories include tinctures (liquid products), capsules, topical, as well as pet products. Charlotte’s Web hemp-based whole plant extracts are sold through select distributors, brick and mortar retailers, and online through the Company’s website.”

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As noted above, CWBHF just announced the expansion of its canine-focused pet products, launching an all-new 12 SKU lineup comprised of hemp-extract infused chews, flavored and unflavored oils, and a topical balm.

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action CWBHF shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -11% on above average trading volume.

All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. It pays to take note of this fact due to the relatively small float size in the stock (roughly 24M shares).

“So many of our customers share amazing stories about the noticeable improvements in their dog’s lives when incorporating our hemp-extract into their diets,” stated Kelsey Morrison, Associate Director of Product Development at Charlotte’s Web.  “We applied a thoughtful scientific approach to animal health, expanding from our single oil extract offering to twelve SKUs enhanced with additional botanicals to support your dog’s mind, body and soul.  This new pet line aims to improve the lives of those who help us improve ours. Because they’re not just pets, they’re family.”

Earning a current market cap value of $1.62B, CWBHF has a significant war chest ($100.3M) of cash on the books, which must be weighed relative to about $19.3M in total current liabilities. One should also note that debt has been growing over recent quarters. CWBHF is pulling in trailing 12-month revenues of $90.3M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 22.2%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $CWBHF 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 $CWBHF, either long or short, and we have not been compensated for this article.

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