Breakout Action in Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF)

Breakout Action in Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF)


Shares of Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) have been working through an interesting technical process in recent weeks. Last week’s action goes a long ways to further define the pattern as the stock breaks back above the confluence point of both of the major moving averages (50-day, 200-day) on a healthy uptick in volume. Technically, that’s a bullish signal. Helping to flesh out the story, the company just announced that it has entered into a research initiative with Rodale Institute and Natural Care to pioneer regenerative organic hemp farming.

According to the release, “The research will be conducted at Pocono Organics, a start-up regenerative organic farm in Long Pond, Pennsylvania. In alignment with its corporate social responsibility values, Charlotte’s Web has been active in responsible farming practices since 2016.”

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 that it has entered into a research initiative with Rodale Institute and Natural Care to pioneer regenerative organic hemp farming.

We’ve witnessed 5% piled on for shareholders of the company during the trailing month. Moreover, the name has benefitted from a jump in recent trading volume to the tune of 43% above the average volume levels in play in this stock over the longer term.

“We’re very proud to be an active partner supporting this research, which aims to bring regenerative agriculture to hemp in this region of the country, through our collaboration with Rodale Institute, Natural Care, and Pocono Organics,” said Deanie Elsner, CEO of Charlotte’s Web. “As the industry leader, Charlotte’s Web aims to continually raise the bar for responsible hemp farming practices. It is our intent that the data from this research will support furthering sustainability for hemp farming.”

Currently trading at a market capitalization of $576M, CWBHF has a significant war chest ($92.3M) of cash on the books, which stands against about $20.7M 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 $102.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 74.2%. This may be a very interesting story and we will look forward to updating it again soon. 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.