|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||10.00 - 10.97|
|52 Week Range||8.35 - 25.25|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||119.64|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.10|
Last month, Charlotte's Web announced that it would partner with Nielsen to guide US retail companies on the growth of the CBD (cannabidiol) space.
As with most cannabis companies in the current correction, Charlotte’s Web Holdings (CWBHF) has taken a big hit as sentiment for the sector remains negative.It's debatable how long the industry will remain down, but once it bottoms out, it's obvious that the stronger cannabis companies will rebound nicely, and those willing to endure the current volatility in the cannabis sector will be rewarded with solid returns once the bottom is reached.Those companies that have positioned themselves for long-term growth within the specific segment of the cannabis market they compete in, such as Charlotte’s Web Holdings has in the CBD market, they should get the biggest boost from the market rebound that will inevitably come.In this article we'll look at why it's only a matter of time before Charlotte’s Web Holdings enjoys a strong recovery, and what the key catalysts will be.Recent performanceThe key thing going forward with Charlotte’s Web is for investors to manage expectations. What has driven market sentiment negative concerning the cannabis industry has been the market's reaction to what is considered disappointing performances, when in reality it was inevitable that the high-flying cannabis sector went through a season of correction after soaring for a prolonged period of time.After exploding with huge multiples in the early stage of growth, companies are now settling down into a more reasonable growth trajectory, which while still being significant, will be much more subdued than in the past.This is why the last earnings report for Charlotte’s Web resulted in overreaction from the market, even though the company produced decent numbers.While missing on revenue by $2.78 million and earnings per share by $0.03, that was primarily because expectations were still so high, at a time when the company was entering into a more mature state of growth.A sign that its growth was starting to become more realistic was the fact it year-over-year growth was up only 45 percent to $25 million. Normally that would be a solid number, but when measured against some of its peers, it was fairly modest.On the other hand, the company generated a gross margin of 75 percent, which produced $18.8 million in gross profits.Another factor that could boost results is that the company increased the number of retail outlets it sold out of by 1926, finishing the quarter at 7871. The current quarter will give a better view of the impact on the company because it'll include a full quarter of results.Growth catalystsThe major growth catalyst for Charlotte’s Web is the CBD segment, which is projected to soar to $23.7 billion in annual sales by 2023, according to the Brightfield Group.If the company is able to maintain its current market lead, it's going to account for long-term for many years. As competition heats up it may lose some of that share, but taking into account the expected growth in CBD, even a decline in market share would likely result in a significant increase in sales.On the production side of the business, it increased the amount of acreage planted for 2019 by 862 acres, up 187 percent year-over-year.Other catalysts include the release of a new pet line in the last quarter, which at the time had twelve new SKU's. The company also has signed distribution deals with Krogers and CVS Health. It also launched a new line of CBD gummies with three SKU's.Concerning gummies, in the latter part of September 2019 it announced it was now selling its gummies via The Vitamin Shoppe, a specialty retailer of nutritional products. It was already selling extract oil tinctures and liquid capsules. The deal will provide a more comprehensive product line for consumers while increasing sales.The CBD gummies will be sold in 738 The Vitamin Shoppe stores in 45 states.Consensus VerdictOverall, the cannabis company remains a Wall Street darling, as TipRanks analytics showcasing Charlotte’s Web as a Strong Buy. With an average price target of $23.31, analysts are predicting massive upside potential of nearly 80% for the stock. In total, Charlotte’s Web has received 3 'buy' ratings in the last three months. (See Charlotte’s Web price targets and analyst ratings on TipRanks)ConclusionEven though the cannabis sector is in a temporary lull, there is no doubt it's going to rebound once the current correction reaches a floor. Since nothing has changed in relationship to the growth of the cannabis sector, those companies like Charlotte’s Web that are positioned for this ongoing growth, are going to do very well over the long term.There is going to be a lot of competition coming in the CBD segment of the market, so the level of market share Charlotte’s Web is able to retain and/or grow, will determine its performance going forward.As mentioned earlier, the company could realistically lose some market share while still growing revenue and earnings because of the soaring demand for CBD products.I'm not suggesting Charlotte’s Web will lose market share, only that it's possible as an increasing number of competitors enter the market. My point is that even if it loses some share, it probably won't have an impact on the company's growth through 2023.On the other hand, if it's able to maintain and grow share, the upside of its market value is going to vastly exceed expectations.The long-term future of Charlotte’s Web looks very bright, and for patient investors it should generate solid returns for them, based upon the catalysts now in play.To find more good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched feature that unites all of TipRanks’ equity insights.
NEW YORK , Oct. 9, 2019 /CNW/ - Nielsen (NYSE:NSLN) and Charlotte's Web Holdings, Inc. (TSX: CWEB, OTCQX: CWBHF), jointly announced an analytic relationship between the world's leading CBD brand with the world's leading market intelligence company. 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.
As the cannabis market takes a hit due to fears over lost vaping revenues and the industry in general is still struggling to generate profits, Charlotte’s Web (CWBHF) is poised to benefit from the market turmoil. The market leader in CBD hemp extract products is already highly profitable and doesn’t need aggressive capital spending due to a focus of selling online and via major retail chains. The biggest risk to the Charlotte’s Web business was the ramping competition in the space and the recent market weakness should help curtail the expansion of small brands.Major Retailer ExpansionNo better example exists in the success of a company’s products is for an existing retail customer to expand the product line offered. In such a scenario, The Vitamin Shoppe (VSI) expanded the Charlotte’s Web product line to include selling CBD gummies. The specialty retailer already sold CBD hemp extract oil tinctures and liquid capsules.Vitamin Shoppe has 738 stores across 45 states providing for a substantial expansion by simply flipping a switch on a new product. Charlotte’s Web recently had a similar expansion with Kroger. The grocery chain agreed to expand the number of stores carrying CBD product from the leading CBD brand to 1,350 stores placing their CBD products in over 8,000 retail locations.Wild CBD Opportunity The CBD opportunity in the U.S. is a very is large and set to see explosive growth through 2022, but the size of the market could vary substantially. According to the Brightfield Group, the market could grow from $0.6 billion to $21.9 billion by 2022, if the FDA sets a regulatory environment for ingestibles. The market might only reach $4.4 billion with limited consumer adoption and slow FDA actions.(Source: Charlotte’s Web presentation)Even the worst-case scenario has CBD related sales growing by 633% in the matter of four years. The biggest question for Charlotte’s Web is the market share obtained under both scenarios with the CBD competitive landscape growing. The number of brands in the category grew from 200 in 2017 to nearly 2,000 brands now.Major Canadian cannabis players like Aurora Cannabis (ACB) and Canopy Growth (CGC) both planned to make major splashes in the U.S. CBD space in 2020, but the recent sector weakness could derail some of those plans. In addition, smaller players are unlikely to obtain funding in the current cannabis climate setting up Charlotte’s Web for a stronger future.The stock has felt the hit along with the sector with Charlotte’s Web dipping back down to the $13s. The market valuation of $1.3 billion is very appealing considering the $300 million analyst estimates for 2020 revenue with strong EBITDA margins of up to 30%. Importantly, the company will be able to fund future expansion via cash flows while other sector players will need outside sources in a market where attractive financings could become increasingly limited.Consensus VerdictWall Street’s analysts have been nothing but bullish on Charlotte’s Web over the past 7 months. With a return potential of nearly 67%, the stock's consensus target price stands at $23.08. (See Charlotte’s Web's price targets and analyst ratings on TipRanks)TakeawayThe key investor takeaway is that Charlotte’s Web is correctly positioned to benefit from the surging demand for CBD products in the U.S. The recent stock market weakness had the double benefit of making the stock cheap to buy and potentially reducing the amount of competition in the sector going forward allowing Charlotte’s Web to obtain better brand awareness and market share in a suddenly crowded space.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.Disclosure: No position.
The third quarter was definitely a bumpy ride for the stock market. One could call it a roller coaster -- primarily because roller coasters usually drop you off at the same spot where you got on. The S&P 500 saw gains of just under 0.5%, the Dow Jones gained 0.75% and the Nasdaq lost a bit more than 1%.Must like the rest of the market, the Best Stocks for 2019 race didn't see a lot of lasting moves. A CBD company continues to move among the top five, a cutting-edge telahealth company holds onto second, and a direct-to-consumer retailer continues its explosive growth. There's one quarter left for big moves, but it's far from anyone's game. * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? Without further ado, let's get into the Best Stocks for 2019, ranked from bottom to top.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 10\. Syrah Resources (SYAAF)Investor: Eric FryYear-to-Date Change Through Q3: -70%Q2 Ranking: 10The story for Syrah Resources (OTCMKTS:SYAAF) went from can it be the best stock for 2019 to can it survive 2019?It looks like it will. 2020 is a bit less likely. Beyond that…well SYAAF really needs that electric vehicle revolution to come soon.The bull thesis for Syrah is that as electric vehicles become more profitable, the companies that supply the materials needed for the cars' batteries will also take off. Graphite is an often overlooked one of these materials, and Syrah owns Balama Mine, the world's highest grade graphite mine. But the prices of these battery components didn't increase as expected.In his update, Eric Fry explained:"Despite the booming market for electric vehicles worldwide, an "echo boom" in the prices of the so-called battery metals has failed to materialize. The prices of copper, cobalt, lithium, and graphite are all languishing near three-year lows. Nickel is the lone standout among the key battery metals, as its price recently hit a new five-year high.In response to the dire conditions in the graphite market, Syrah slashed production by two-thirds last month. And there is no guarantee that this deep production cut will be the last, as the price of graphite has slumped about 15% since the start of the year."Read more about SYAFF stock here. 9\. Weibo (WB)Source: testing / Shutterstock.com Investor: Kyle WoodleyYTD Change: -23%Q2 Ranking: 9Though it's up a modest 1.84% in Q3, Chinese digital company Weibo (NASDAQ:WB) hasn't turned around just yet. It was still down 23% at the end of Q3.But Investorplace's Luke Lango believes that WB has turned around and that turnaround is here to stay:"Weibo stock has been in a secular downtrend since early 2018. But, all major signs (improving fundamentals, favorable optics, and bullish technicals) imply that this downtrend is over."The biggest challenge remaining for WB -- and all Chinese stocks? The trade war. We keep hearing from the Trump Administration that a trade deal is close, but that's about as good as having no information about trade talks at all. * 7 Important IPO Stocks to Watch for the Long Run Will things improve for WB in the coming years? Almost definitely. Will they improve before the end of 2019? Probably not. 8\. Canada Goose (GOOS)Source: rblfmr / Shutterstock.com Investor: Will AshworthYTD Change: 1%Q2 Ranking: 8Canada Goose (NYSE:GOOS) had a much better Q3 than Q2, rising over 10% and bringing it back to flat returns for 2019. The turnaround was based mostly on solid double-beat earnings report that saw revenues grow 59% and earnings grow 37% year-over-year. GOOS's wholesale business also rebounded, retaking the lead over the company's DTC business.Investors were disappointed that it was just a double beat quarter, and not a double-beat-and-raise quarter, however.And Canada Goose isn't out of the woods just yet. As Investorplace's Ashworth stated:"One class-action lawsuit filed in early September suggests that Canada Goose management failed to disclose or made misleading statements about its sourcing of down and fur.While I picked GOOS as my top stock of 2019, I too am concerned about the way it treats the animals used to source its down and fur. As an animal lover, I wouldn't stand for any ill-treatment of animals. The company denies its suppliers' abuse the animals that are used in sourcing materials for its parkas, etc. I've chosen to take them at their word."Whether or not these lawsuits have merits remains to be seen, but it is pretty clear that GOOS will not take the top spot this year.Especially once you take into account that the 10% gains of Q3 have been erased in the first two sessions of Q4.Read more about GOOS stock here. 7\. Viper Energy Partners (VNOM)Source: Shutterstock Investor: Neil GeorgeYTD Change: 10%Q2 Ranking: 8Viper Energy Partners (NASDAQ:VNOM) is an oil and gas play, but it's not a traditional one. Instead of producing either material or refining it, VNOM owns prime parts of the Permian Basin which it leases out to E&P companies. This should isolate VNOM from some of the volatility of the energy sector, and it has."Viper has generated a return through the first three quarters of 2019 of 10.81% -- well outpacing the traditional E&P companies' stocks.It has also been expanding its properties thanks to its affiliation with Diamondback Energy (NASDAQ:FANG) which founded the company through a drop-down of property assets to Viper back in 2014."The problem? The energy sector itself. The Energy Select Sector SPDR (NYSEARCA:XLE) was up 1.2% for the first nine months of 2019. So VNOM's investment thesis held true, but the energy sector is seriously lagging other stocks this year.This doesn't mean Viper Energy isn't a good stock or dividend play, but it does mean 2019 isn't its year. * 7 High Volatility Stocks to Buy as the Market Rebounds Read more about VNOM here. 6\. LyondellBasell (LYB)Source: Via LyondellBasellInvestor: Charles SizemoreYTD Change: 10%Q2 Ranking: 7LyondellBasell (NYSE:LYB) is a plastics, chemicals and refining company -- and that wasn't the right sector to be in this year. Furthermore, with just a 9x trailing P/E and 7x forward P/E, LYB is deep in value stock territory."With cheap valuations like these, you might assume that Lyondell had hit a rough patch. But nothing could be further from the truth. Gross margins and operating margins have trended higher for years, and revenues have been stable.The lack of investor interest in Lyondell has far less to do with company performance and far more to do with the neighborhood it's in. In a world of social media hype, a plastics, chemicals and refining company just isn't all that interesting. But as investors rotate out of the story stocks of the last decade in search of new opportunities, they're likely to give reliable dividend payers like Lyondell a closer look."LYB didn't win the Best Stocks for 2019 contest, but the stock is still worth a look - especially if you think value stocks will come back in 2020.Read more about LYB here. 5\. Amazon (AMZN)Source: Jonathan Weiss / Shutterstock.com Investor: Readers' ChoiceYTD Change: 16%Q2 Ranking: 5Readers' Choice stock Amazon (NASDAQ:AMZN) didn't have a great quarter. Though it held onto the 5th place slot, it's actually down 10% in Q3. Right now, AMZN stock isn't even beating the S&P 500 for 2019. Maybe it's time to pick a different stock for 2020?What this loss seems to come down to is that investors are growing weary of Amazon's growth without thought for profits attitude. The strategy got AMZN to $1 trillion in market cap, so it did pay off, but it looks like investors are starting to expect a more mature company."This was highlighted earlier in Q3 when AMZN missed Q2 earnings per share expectations and plummeted nearly 12% in a few sessions. That's over $100 billion in market cap erased over a miss of 35 cents per share.This plunge was despite a revenue beat, so the message investors are sending here is clear: They expect more in profits than Amazon has been delivering."Of course, the long-term narrative for Amazon is still strong, but AMZN winning the Best Stocks for 2019 at this point depends more on the leaders taking a nose dive than several hundred billion in market cap flowing into AMZN in the next three months. * 5 Stocks Under $10 Worth the Risk Read more about AMZN here. 4\. Adobe (ADBE)Source: r.classen / Shutterstock.com Investors: John Jagerson and Wade HansenYTD Change: 22%Q2 Ranking: 4Despite holding onto 4th place, Adobe (NASDAQ:ADBE) didn't have the best Q3. It fell 8%. But one bad quarter isn't much in the scheme of things for a stock like ADBE. Adobe produces industry leading products and was one of the first companies to capitalize on the new software subscription revenue model.Can ADBE rebound from its Q3 losses and take the top spot in the Best Stocks for 2019 contest? That remains to be seen.Read more about ADBE here. 3\. Charlotte's Web Holdings (CWBHF)Source: Shutterstock Investor: Matt McCallYTD Change: 25%Q2 Ranking: 3For a third place stock, Charlotte's Web (OTCMKTS:CWBHF) has a better shot than you might think of winning the Best Stocks for 2019. One reason is that Charlotte's Web is in the very volatile pot sector. Who could forget the day Tilray (NASDAQ:TLRY) ran up to $300 from $230 and back to $150 in a single trading session? I'm not saying Charlotte's Web - or the 2019 pot sector - is nearly that volatile, but a run of 40% over three months is certainly possible.Another reason a win is still possible is Charlotte's Web's size. Other than SYAAF, CWBHF is the only one of our stocks sporting a sub-$1 billion market cap, that means less investor money is needed to move the needle. For today's $675 million market cap to hit 60% gains for the year, only about $200 million would needed to be invested in the company.We only check in with the Best Stocks once a quarter, but CWBHF has topped 100% gains twice in 2019, the last time being Aug. 5. It's as if we're just getting snapshots of a race, and that works just fine for a lot of stocks, but most stocks are much steadier than Charlotte's Web. Will the next snapshot happen on a day when Charlotte's Web has once again sprinted into first place before being overtaken again by a steadier runner? We'll have to see.Matt McCall pointed out that Charlotte's Web is well-positioned for this growth even among pot stocks:"Charlotte's Web remains one of a handful of cannabis companies that is able to turn a profit. That's huge. CWBHF is expected to earn $0.19 per share this year, followed by $0.69 in 2020 and up to $1.07 by 2021.…The stock is undervalued based on both earnings and revenue forecasts. Using the 2021 numbers, which is less than two years from now, CWBHF stock trades with P/E ratio of 14.3 and a price-to-sales of 1.67.Stocks that are in high-growth sectors such as cannabis and CBD should (and typically do) trade at valuations higher than the overall market. A P/E ratio between 40 and 50 for Charlotte's Web would be in-line with other high-growth stocks."In my opinion, Charlotte's Web has a higher chance to take the top spot than even the next stock on the list. * 7 Stocks the Insiders Are Buying on Sale Read more about CWBHF here. 2\. Teladoc (TDOC)Source: Shutterstock Investor: Jason MoserYTD Change: 37%Q2 Ranking: 2Teledoc (NYSE:TDOC) has had its ups and downs in 2019 to be sure, but the moves haven't been nearly as wild as the ones in Charlotte's Web stock. As a result, TDOC is up a very respectable 37% as of the end of Q3.Teladoc is the undisputed leader in the telehealth space. It's a company that makes it possible to seek medical attention, virtually without having to travel to a doctor's appointment. As more services and industries become digital in some way and the U.S. cries out for healthcare reform, a company at the intersection of these two things stands to profit big.And its growth is going well. As The Motley Fool's Jason Moser pointed out:"TDOC stock's second-quarter results showed us the business remains on track. There were a couple of leadership additions with Mala Murthy coming on as CFO and David Sides as COO… TDOC's revenue for the quarter came in just over $130 million -representing 24% organic growth."Moser also pointed out upcoming catalysts for TDOC:"Medicare Advantage will be a nice catalyst in the coming years as it will open them up to an opportunity as large as 20 million additional members.It also sounds like the CVS (NYSE:CVS) partnership continues to develop nicely. There was plenty of positive language on the earnings call regarding the relationship building with CVS and Aetna. Minute Clinics have expanded to 8 additional states, and the Aetna acquisition has stoked the HealthHub concept …In fact CVS plans to have 1,500 HealthHUB locations operating by the end of 2021."Will any of these catalysts hit in time for the end of 2019? That remains to be seen.Read more about TDOC here. 1\. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com Investor: Louis NavellierYTD Change: 58%Q2 Ranking: 1And finally, Lululemon (NASDAQ:LULU) holds onto the top spot for the second consecutive quarter, and no one else really came close. LULU closed out Q3 a whopping 21 percentage points ahead of TDOC.Louis Navellier of Growth Investor attributes Lululemon's success to two things: being an entirely direct-to-consumer company and smart management.The first allows LULU to control costs and quality and keep close track of what customers want. LULU keeps production costs down and can release new products strategically in a way that won't leave them sitting on shelves. This lets LULU "charge a premium for quality products that are in limited supply.""The second force that keeps LULU stock chugging along is the company's smart management. The key to success here is that its management has known how to time Lululemon's growth.Lululemon hung back as its popularity grew, choosing to focus on building out its yoga business into the women's athleisure force it is today. Thanks to this, it was able to grow its reputation in a much more profitable way than simply flooding the market with stores and products. That cachet with its target market (and, thus, staying power) is a big reason I named it as my pick for the InvestorPlace Best Stocks of 2019 contest.And now, as it enters the men's space, analysts are drooling over the potential."So will LULU keep it's lead through the end of Q4 and win the whole thing? It seems likely, but nothing in the market is certain so I'm not betting against the other front runners either.Read more about LULU here.As of this writing, Regina Borsellino held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Best Stocks for 2019: Q3 Was a Roller Coaster appeared first on InvestorPlace.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
BOULDER, CO , Sept. 24 2019 /PRNewswire/ - ( CSE: CWEB; OTCQX: CWBHF ) Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), the market leader in whole-plant CBD hemp ...
The greatest barrier to the full exploitation of the cannabis market in the US is the patchwork quilt of various legalization regimes in the country. Cannabis is fully illegal in 9 states, fully legal in 11, and subject a variety of laws in the remaining 30. Some states permit medical use, some permit medical use of CBD extracts only, while others have partially decriminalized it. At the Federal level, marijuana remains fully illegal as a Schedule 1 Controlled Substance, but the closely related hemp plant was fully legalized at the Federal level by the 2018 Farm Bill.The legalization of hemp opens exciting prospects for cannabis in the US. Aside from its industrial uses – hemp can be used in the manufacture rope, fabrics, and paper, to name just a few – the plant is a major source of cannabidiol extracts, the CBDs that are quickly becoming popular in medicinal use. CBD, being legal, is starting to take off in the marketplace, and those cannabis companies with a focus on this non-psychoactive compound will find themselves well-positioned to take off with it.And they are sure to take off - a study by BDS Analytics predicts the CBD market reaching $20 billion annually by 2024. BDS' Jessica Lukas sees the market expanding across a variety of categories in the next near future, including food, candy, beverages, and skin and beauty. She says, "While dispensaries and e-commerce drive the majority of cannabinoid sales today in the US, this shifts versus the next five years."We’ve delved into TipRanks’ database to find three companies that are ready to gain on CBD. Aphria, Inc.Aphria (APHA – Get Report) astounded the markets back in early August, with a C$20 million top-line beat in the quarterly report, and better yet, a quarterly profit of C$15.8 million. The profit line represented a C$29.7 million beat – the forecast had been for a C$13.9 million net loss. It was an impressive quarter for the third-largest producer in the global cannabis markets.Aphria offers investors two other important features, besides a turn to profitability. First, the stock is available at a low price, just $6.16 on the New York market. And second, Aphria has leveraged its scale into partnerships with the US CBD markets. Aphria’s CBD products are based on marijuana-derived hemp, so the Canadian-based company faced trade hurdles in addition to the legal patchwork in the States – but a shift to hemp-based product, or Federal legalization of CBD, will put Aphria in a strong position to expand its operations quickly.Writing of the company just after the quarterly report, Canaccord Genuity analyst Matthew Bottomley described the “solid rebound in cannabis revenues” as a “pleasant surprise,” and went on to note that increased efficiency in packaging and distribution had improved gross margins. Backing up his buy rating and $12 price target, Bottomley wrote, “Although we were discouraged in the previous quarter, we believe Aphria’s strong FQ4 indicates that the company is still competing for a top-three spot in the Canadian cannabis market.” His price target suggests a robust 95% upside for Aphria.More recently, 3-star analyst Justin Keywood, of GMP FirstEnergy, initiated coverage of APHA. He was impressed enough by the stock to start it with a buy rating and a price target of $10.50. His target suggests an upside potential of 71%.APHA’s consensus rating is a Moderate Buy, based on 4 reviews from the past three months. The reviews include 2 buys, 1 hold, and 1 sell. APHA shares sell for $6.16, and the average price target of $7.79 indicates a 26% potential upside for the stock. Charlotte’s Web Holdings, Inc.Most of the big cannabis companies are Canadian-based, logical since was the first country in North American to introduce full legalization. Charlotte’s Web (CWBHF – Get Report), based in Boulder, Colorado, is the exception. It’s an exception that proves the rule, however, as Colorado was one of the first US jurisdictions to fully legalize marijuana at the State level.Charlotte’s Web’s main products are based on CBD extracts and include CBD and hemp oils, capsules, and edible gummies. The company even markets products for pets – they have a hemp extract designed for dogs. Since the products are derived from legal hemp-extracted CBD, Charlotte’s Web has a marketing advantage over most competitors: large, established chains are willing to carry the products. Kroger (KR – Get Report) and CVS (CVS – Get Report) both carry Charlotte’s Web CBD products as over-the-counter pharmaceuticals.A rough fiscal second quarter did not stop analysts from giving strong ratings to CWBHF. Jason Zandberg, a 4-star analyst with PI Financial, reiterated his buy rating and $22 price target last month. He noted, “hemp supply will not be an issue for CWEB in the foreseeable future, as the company planted 862 acres in 2019, a 187 per cent increase from the 300 acres planted in 2018.” Looking at the financial forecast, Zandberg wrote, “Management maintains revenue guidance of between $120 million and $170... The range is dependent on the FDA providing positive regulations for hemp-derived CBD in 2019. While we believe that the FDA will eventually do this, our expectation is that it will not happen this year.” Zandberg’s price target is based on this optimistic scenario, and implies an upside of 35% to the shares.Piper Jaffray’s Michael Lavery was also impressed by CWBHF, enough to start his coverage of the company with a buy rating and a $25 price target. His target indicates confidence in a 49% for CWBHF.Overall, Charlotte’s Web has a Strong Buy consensus rating, based on 3 buys assigned in the past three months. The stock’s $23 average price target suggests an upside of 38% from the $16.75 current share price. GW Pharmaceuticals, Inc.With GW Pharma (GWPH – Get Report) we get to a cannabis company that is also a mainstream stock. GW is a long-established biotech firm, originally founded as an early adopter in the cannabis industry. GW has two cannabis-derived drugs on the open market: Sativex, a treatment for the symptoms of multiple sclerosis, and Epidiolex, a treatment for epilepsy associated with Dravet Syndrome in children. Epidiolex was approved by the US FDA in 2018.Standing squarely where the cannabis industry meets the pharmaceutical business, GW Pharma benefits from having two approved drugs to market. While the company operates with a net loss (not uncommon in either the cannabis or pharmaceutical fields), the August quarterly report continued a four-quarter run of improving earnings. The reported loss of 78 cents per share was a 55% improvement over the expected EPS loss of $1.74.Wall Street has high expectations for GW Pharma. Predictions are, the company will grow more than 90% in fiscal 2019, and turn to profits in 2020. Rosy prospects have prompted analysts to raise more than just expectations – Stifel’s 5-star analyst Paul Matteis raised his price target to $228 in his recent review of the stock. His new target implies an impressive upside of 76%. Oppenheimer’s Esther Rajavelu is even more optimistic, increasing her target to $239 for an 85% upside.GW Pharma’s consensus rating is a Strong Buy, based on a unanimous 6 buy ratings. The stock’s $223 average price target implies a premium of 73% from the current share price of $128.Visit TipRanks’ Analysts' Top Stocks, and find out which stocks have the full attention of Wall Street's best analysts.
Charlotte's Web Holdings Inc (OTC: CWBHF ), the producer of the Charlotte’s Web brand of CBD products, secured the first U.S. patent for a strain of hemp in July, according to Leafly . The company’s ...
It was recently discovered that Charlotte's Web Holdings (CWBHF) has been awarded what appears to be the first U.S. patent for a hemp strain, according to US Patent and Trademark Office filings.A report from Leafly noted that the related "documents describe CW2A as a hardy plant, resistant to cold and capable of producing up to 6.24% CBD and only 0.27% THC."In the fast-growing CBD market, a patent like this could be a huge competitive advantage for Charlotte’s Web.The patent itselfThe first thing to understand about this patent is it's a plant patent, not what is identified as a utility patent. That means the patent held by Charlotte's Web gives it legal protection from a competitor growing that specific cultivar from a clone.Charlotte's Web may have also been awarded a Utility patent as well, but that isn't available to the public until after a waiting period of 18 months. The basic difference between the two is a Utility patent also covers seeds and the various chemical compositions of the plant. A Utility patent gives a plant a wider range of protections.As for the characteristics of the plant itself, it would yield a significant amount of dry weight CBD which would be then extracted and sold to consumers. It also appears to have the ability to be grown in a number of different environments, providing more flexibility on the production side of the equation.With a number of U.S. hemp farmers struggling at times to keep their hemp from getting hot, which means from exceeding the legal 0.3% THC threshold, the low amount of THC in CW2A would provide a wide margin of safety.Keep in mind that this is a hemp patent, not a cannabis patent. There have been a number of cannabis patents that have been applied for and approved of.The difference between hemp and cannabis isn't botanical, but legal. Hemp is identified legally as having no more than 0.3% THC in it.Significance of the patentI've been saying for some time the long-term profitability in the cannabis sector is going to eventually come to those companies that are able to develop various strains or research-backed characteristics that differentiate themselves from competitors.In the short term recreational pot will continue to be the biggest generator or revenue, but CBD and medical pot are eventually going to be the products that generate the widest margins and strongest earnings.As for this hemp patent and Charlotte's Web, this could be a huge competitive advantage for the company. It's interesting that the company didn't tout the patent, which suggests to me it either is waiting for a Utility patent to be revealed, or for those of us that discover it and report on its potential.With the well-known Charlotte's Web strain, and the Stanley brothers adding a hemp patent to their arsenal, it could be a tremendous branding and marketing opportunity for the company, which could be more important than the hemp patent and the accompanying positive characteristics.The Stanley brothers, the founders and operators of Charlotte's Web Holdings, are excellent at branding and marketing. It's easy to see how they could leverage this to take a commanding lead in the CBD market.That's why it's puzzling as to why they didn't go public with their achievement. It's also why I think there's more to come, by which I mean a potential Utility patent to be revealed.Now that the cat is out of the bag, I wouldn't be surprised to see some branding and marketing movement on this front.Whatever the timing ends up being, it's apparent the company has taken a lead on its competitors, and if consumers perceive the brand to be superior to other brands, it will be a moat that the company can defend; it would win a lot of market share in the current CBD commodity market.Consensus VerdictThe cannabis player stands as a 'Strong Buy' name among Wall Street analysts. In the last three months, Charlotte's Web has won three bullish recommendations. With a return potential of close to 40%, the stock's consensus price target lands at $23.17.ConclusionThere are several things to like about the hemp patent. It adds another arrow to the branding and marketing quiver of Charlotte's Web; provides a quality product that should result in higher extraction of CBD and the ability to grow under various conditions; and most importantly, should allow the company to leverage products derived from the strain to be differentiated from competitors.With the proven branding and marketing expertise of management, this could be a significant step into winning market share in the CBD market, which is projected to quickly grow into a double-figure multi-billion dollar market.This is going to be a big growth catalyst for the company if the traits listed in the hemp patent are proven to be consistently accurate, and consumers consider it to be a better product than other CBD offerings.This hot cannabis stock is also resonating with investors, with individual portfolios in the TipRanks database showing a net increase in Charlotte's Web.
It’s clear that the seeds for future growth have been planted in a budding cannabis space. According to Grand View Research, the global legal marijuana market is expected to reach $66.3 billion by 2025, with many investors hoping to get in on the action. That being said, it hasn’t necessarily been smooth sailing for cannabis stocks this year. A few have actually seen growth slow with some being weighed down by tax concerns in the U.S. and supply-side issues. For example, Tilray (TLRY) has plummeted 61% year-to-date. With that in mind, analysts say that some cannabis stocks look more poised to soar than the rest. We wanted to take a closer look at 3 of the top players in this space to see which cannabis stock Wall Street analysts believe will come out on top. Let’s dig in. Aurora Cannabis Inc. (ACB)With shares falling 31% in the last three months, investors are wondering what is going with Aurora.The cannabis company still has a way to go before it sees a profit. While Aurora hasn’t posted results for fiscal Q4 2019 yet, it did report a CA$158.4 million loss in fiscal Q3. However, management pointed out that several positive initiatives have placed Aurora on the road towards profitability.The company has made substantial efforts to improve the scale of its business, with Aurora already leading the industry when it comes to production capacity. Currently, production is on track to reach 625,000 kilograms of cannabis per year. Aurora wants to improve this figure by bringing industrial scale to its growing facilities. Management hopes to accomplish this through the ramping up of its Sky and Sun locations. Not to mention these facilities could bring production costs down, with Sky’s production costs expected to be less than $1.00 per gram.The company will also start to develop new technology, genetics and intellectual property at two new test facilities in order to drive sustainable and high-quality outdoor production.Based on the reduction of its operating costs and improved product offerings from its superior facilities, Ladenburg Thalmann & Co. analyst Glenn Mattson believes Aurora has the advantage over its competitors. As a result, he initiated coverage with a Buy and set a $9 price target on July 17. The four-star analyst thinks share prices could surge 61% over the next twelve months.All in all, the Street is cautiously optimistic about ACB. It has a ‘Moderate Buy’ analyst consensus and a $9 average price target, suggesting 56% upside potential. Canopy Growth (CGC) The next cannabis stock on our list has also been the target of negative media sentiment after it reported a C$1.28 billion loss in its first fiscal quarter of 2020 as well as missed analyst estimates for revenue on August 15. That’s not to say that analysts have given up on Canopy, with some telling investors they will just have to be patient.It’s important to note that Canopy stands to benefit from the 2.0 market, or Canada’s plan to let cannabis producers add popular vapes, edibles and infused beverages to be sold legally later this year. “The Canadian space is about to gain a fair amount of pricing power, in our view, as the 2.0 market opens up late this year,” Seaport Global analyst Brett Hundley explained. The company has taken several steps forward in its journey towards profitability. In an effort to expand its 30% stake in the Canadian adult recreational cannabis market, Canopy has made a significant investment in production and retail. The analyst believes the strengthening of its brand leading up to the launch of its edibles in late-fall was an especially important step in the right direction. “We think Canopy can regain some lost share of shelf, as it leverages R&D, IP and partnerships to bring leading value-added products to market,” Hundley added.It doesn’t hurt that Canopy has placed a focus on growing its customer base outside of Canada. Over the last few years, new facilities have been built to enable production in Germany, Denmark and the U.S. Once they become fully operational, they are expected to drive significant revenue. All of these factors played into Hundley’s Canopy ratings boost. On August 26, the one-star analyst upgraded CGC from a Hold to a Buy and raised his price target to $31, suggesting 28% upside potential. Wall Street isn’t quite as bullish. CGC has a ‘Moderate Buy’ analyst consensus as well as a $42 average price target, implying 73% upside potential. Charlotte’s Web Holdings Inc. (CWBHF)Some analysts believe that the last stock on our list is uniquely positioned to soar as it doesn’t rely on legalization like other players in the space. It already offers CBD products, including capsules and oil, in the U.S. The key here is that these products can also be shipped anywhere in the U.S., legally.Even more exciting for investors, CWBHF is already profitable. On August 14, the company reported second quarter gross profit reached almost $19 million thanks to its products appearing in 1,926 additional retail locations, including CVS Health (CVS) and Kroger (KR), as well as new stock keeping units for gummies and its pets line. While this number is by no means huge, it is significant as the two previous stocks we mentioned have yet to achieve profitability. Charlotte’s Web is also garnering praise for its selection of its new CEO, Deanie Elsner. The former executive at Kraft Heinz (KHC) and Kellogg (K) is widely viewed as a good fit in terms of where the company is now. Based on all of these factors, Piper Jaffray analyst Michael Lavery believes the cannabis stock is well positioned to gain from what is expected to be major growth in the U.S. hemp CBD market. As a result, the one-star analyst initiated coverage with a Buy and set a $25 price target on August 12. Lavery thinks share prices could soar as much as 50% over the next twelve months.The word on the Street is that Charlotte’s Web is a ‘Moderate Buy’. Its $25 average price target indicates 50% upside potential. The Final VerdictThe results are in, with Wall Street betting on Canopy to soar the highest. While analysts still expect significant upside from Aurora and Charlotte's Web, CGC takes the top spot.Find analysts’ favorite stocks with the Top Analysts’ Stocks tool
The cannabis sector has a projected market opportunity topping $200 billion, but the companies that focus on large specific niches such as CBD might provide the best reward to shareholders. Charlotte’s Web Holdings (CWBHF) has the results to prove that focus pays off and the stock is near all-times highs for this reason. Investors waiting for a pullback might not get the opportunity to load up on this hot sector.Q2 Results CWH actually reporting slightly disappointing numbers for Q2. The key being that reported revenues of $25.0 million missed analyst estimates by $1.2 million.Investors can clearly overlook short-term blips as the company moves toward national CB rollouts with CVS Health (CVS) and Kroger (KR), amongst others. Not to mention, the company generated adjusted EBITDA margins of 16% and net income of $2.2 million.Yes, while the big Canadian cannabis LPs lose tons of money building far flung operations across the globe, CWH has already generated a money machine. The company is focused solely on domestic CBD sales via either online sales or distribution partners. The company doesn’t need expensive stores either.For this reason, top line sales growth isn’t nearly as impressive as other market participants, but the gross margins are much higher. Q2 revenues only grew 45% YoY, but CWH is near an inflection point with growth and 7%% gross margins. Analysts forecast quarterly sales to surge to nearly $60 million by next Q1 and to eventually top $100 million by the following December quarter.From the June 2019 quarter to the December 2020 quarter, the CBD specialist will generate 300% quarterly revenue growth. Normal markets would salivate over this type of growth.Reason To Focus The reason to focus on a particular segment of the burgeoning cannabis market is the individual scale and sizes are massive. The domestic CBD market alone is projected to surge from ~$1 billion in 2019 to potentially $7 billion by 2023.(Source: CWB presentation)Too many companies are chasing the full $200 billon market opportunity to mounting losses and cash crunches. CWH has $51.4 million in cash and spent about $10 million in the first half of the year to build inventories. The company doesn’t have massive cash needs outside of building inventories to meet demand.The CBD company already has distribution deals for nearly 8,000 retail locations. CWH has a deal with Kroger for 1,350 stores while the large retailer has double the retail locations leading to easy expansion for CWH once the grocery chain and the market is ready for a full national rollout.TakeawayThe key investor takeaway is that Charlotte’s Web has already become a profit machine by focusing on a sole market niche with a market opportunity topping $7 billion in a few years.The stock has a reasonable market valuation in the $1.8 billion range now with a ’20 revenue target of $300 million. A cannabis or CBD stock trading around 6x forward sales estimates is rather reasonable for the sector, but the volatile sector and complexities of a national rollout of a product where the FDA still has plenty of questions should provide some hiccups that send the stock lower and offer a better entry point for new investors.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.Disclosure: No position.
BOULDER, CO, Aug. 21, 2019 /PRNewswire/ - (TSX: CWEB, OTCQX: CWBHF), Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), the market leader in whole-plant hemp CBD extract products is pleased to announce the results from its 2019 annual general and special meeting of shareholders held on August 20, 2019 in New York (the "Meeting"). Each of the matters voted upon at the Meeting is discussed in detail in the Company's Management Information Circular dated July 10, 2019 (the "Circular"), a copy of which is available on the Company's SEDAR profile at www.sedar.com. The total number of votes cast at the Meeting was 55,076,745, representing 56.57% of the total number of votes attached to the outstanding voting shares of the Company. The appointment of MNP LLP as the auditors of the Company to hold office until the close of the next annual meeting of shareholders of the Company.
Among marijuana stocks, very few have achieved profitability. But sooner or later, every company needs to reach that milestone.That sounds obvious, like "Business 101." In fact, it's one of the most basic requirements for a stock to trade on the "Big Board," the New York Stock Exchange (NYSE)… and also for the Nasdaq, for that matter.And yet, in the cannabis industry, Charlotte's Web (OTCMKTS:CWBHF) is one of the few that can deliver positive earnings! That's just one reason I want to put it on your radar today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCharlotte's Web was one of the original hemp-cannabidiol (CBD) companies, and perhaps the biggest success story of Colorado's legal cannabis boom. * 10 Stocks Under $5 to Buy for Fall CWBHF is also my pick for InvestorPlace's Best Stocks for 2019 contest - but really, it's among the top marijuana stocks for the next three years, at least, and here's why:With news Wednesday that the company's Q2 revenue rang in at $25 million, Charlotte's Web is expecting to post sales of $120-$170 million for the year. (At the midpoint, that puts the stock at a very attractive price-to-sales ratio of just 6X). But next year, analysts are expecting sales of $348 million… and $444 million the year after that.If that sounds lofty, keep in mind that Charlotte's Web CBD will soon be in twice as many stores as it was last year. From a niche product that was mainly found in health stores, you can now buy it at "big box" stores like CVS Health (NYSE:CVS) and, now, Kroger (NYSE:KR).The deal with Kroger, announced on July 31, is big; it adds 1,350 stores (in 22 states) to Charlotte's Web's retail network. The total number of retail locations carrying the company's products stood at 7,817 at the end of the quarter, up 1,926.Demand for hemp-CBD and this particular brand is booming, and to keep up, Charlotte's Web just expanded into the prestigious Colorado Technology Center, strategically located between the cities of Boulder and Denver.With the new location, Charlotte's Web will quadruple its footprint. After all, to make hemp-CBD, you've got to process a lot of hemp. And while operations will begin "early next year," the growth opportunity there will be just beginning.The Colorado Tech Center is better known for its tech startups, and Charlotte's Web is bringing some of that same energy to this expansion. Rather than resorting to CBD extraction techniques that are "decades old," their ambition is to use state-of-the-art technology to maintain what's always been the company's edge: "the highest-quality products."Here's another significant edge: reputation. The truth about the CBD market is that there are a lot of bad players - and those other guys will soon be removed by the coming wave of federal regulation. As I always say in Investment Opportunities, marijuana stocks are one group that needs regulators. And as a legitimate leader of the industry, Charlotte's Web will be the beneficiary.That's the context of the company's eye-catching earnings-per-share (EPS) projections. Already leading the pack with $0.27 per share expected this year, that should increase to $0.74 next year and $1.06 in 2021.The stock is up 65% since I picked it for the Best Stocks contest, even after it stumbled on Wednesday's quarterly report. But given these projections, CWBHF is still a steal as it trades around $20 on the over-the-counter (OTC) markets.As for the major stock exchanges - which open up a whole new world to companies like this - Charlotte's Web is on the right track to meet the NYSE and Nasdaq's earnings requirements for the long term. And I always believe in investing in a great stock early - BEFORE it makes that jump. Marijuana Stocks: Another "Jumper" Stock You Won't Want to MissGiven that it's fully legalized on its federal level, Canada is always a popular place to look for marijuana stocks, too. And one of my picks there just announced that it will "jump" to the Toronto Stock Exchange. (Charlotte's Web did, too, for that matter.)When a company moves to the big leagues, it opens up lots of doors for financing, offerings, and big institutional money. It's like the market's "seal of approval": an elite status with long-term benefits to the share price.In the next six to 12 months, I expect this particular Canadian stock to announce a second uplisting - to a U.S. exchange. That would be even more significant.Business wise, I'd put its extraction operation up against anyone's. At Investment Opportunities, you can get all the details on this and other up-and-coming cannabis stocks in the legalization mega-trend. Timing is EverythingEarly stage investing can be exciting… but also tricky.When a new industry booms - when billions of dollars are up for grabs - you can be sure all kinds of people will rush into the sector and try to get their share.Some of the companies will have smart, hardworking people running the show… great people to invest with. But, let me tell you, some of these folks aren't the kind of people you'd ever want to invite over for dinner… let alone do business with.That's a fact of life in any industry. But this challenge is magnified in a new industry with massive potential - like the legal marijuana industry.This is why it is critical to have a system… a framework for evaluating legal marijuana stocks.A path to profitability is certainly one of the things I look for here. But there's a little more to it than that!So, I created a 5-Factor Analytical Model for evaluating newly public legal marijuana companies to as part of my Cannabis Cash Calendar.I've put my model to the test in recent weeks to uncover my next Cannabis Cash Calendar recommendation… which I just released on Tuesday to my Investment Opportunities readers. But there is still time for you to get in on it, too, as it's still under my buy price!The opportunity in legal weed is much like the opportunity internet stocks offered in 1994… or that bitcoin offered in 2015. It is set to grow so much over the next 10 years that it will turn out to be one of the three biggest investment opportunities of your entire life - no matter when you were born.Click here to learn more and find out how you can get immediate access to my new recommendation.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Marijuana Stocks: Catch the Next Hot Pot Stock Before It 'Jumps' appeared first on InvestorPlace.
The cannabidiol (CBD) leader returned to solid sequential revenue growth, but its spending soared even more than its sales did.
Charlotte’s Web Holdings, Inc. (OTC: CWBHF ) reported 45% year-over-year second-quarter revenue growth Wednesday. Gross margins for the quarter were 75.3%, with $18.8 million in gross profits. The whole-plant ...