Why Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) Action is Mysterious

Why Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) Action is Mysterious


With CBD growing at 900% in 2019 according to Brightfield Group, and Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) pulling in trailing 12-month revenues of $113.8M at over 50% topline growth, it’s somewhat difficult to understand the action in shares of the stock, which continue to track sideways for the past month. That said, the rest of the space has been in a dive, so it’s actually a reflection of technical relative strength, which bodes well for the future. Further juice can be squeezed from the company’s announcement of an analytic relationship between the world’s leading cannabidiol (CBD) brand and the world’s leading market intelligence company.

According to the release, “Together, Nielsen and Charlotte’s Web will help guide the U.S. retail market for consumer packaged goods (CPG) companies through the evolution of the CBD space. Mirroring the changing tide happening across the U.S. retail and CPG industry, this new relationship marks an open and symbiotic relationship that is forming between the emerging CBD industry and the U.S. retail and manufacturing community.”

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 an analytic relationship between the world’s leading cannabidiol (CBD) brand and the world’s leading market intelligence company.

We’ve witnessed flat action for the past week. Furthermore, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 15% above the average volume levels in play in this stock over the longer term.

“This is a game changer for hemp CBD retail analytics,” said Deanie Elsner, CEO of Charlotte’s Web. “As the market leader in CBD, we have an obligation to advance objective data, purchase dynamics and insights that can be leveraged by our retailers in the Food, Drug and Mass channels. Nielsen is a trusted industry leader who was an obvious choice as our analytics partner. They provide unbeatable data and insights which will set the stage for one source of truth for the CBD category.”

Earning a current market cap value of $536M, CWBHF has a significant war chest ($67.2M) of cash on the books, which stands against about $18.3M in total current liabilities. CWBHF is pulling in trailing 12-month revenues of $113.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 50.6%. We will update the story again as soon as developments transpire. 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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