|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.30 - 6.88|
|52 Week Range||2.75 - 23.90|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||8.48|
(TSX:CWEB, OTCQX:CWBHF) Charlotte's Web, the company behind the world's most trusted hemp extract has achieved another milestone in its continued commitment to innovation and consistency in hemp genetics. The Company has earned U.S. utility patent U.S. 10,653,085, its second U.S. patent for hemp genetics. This patent is for 'CW1AS1', a new hemp variety created by company co-founder Joel Stanley and Sr. Director of Cultivation R&D; Bear Reel. The patent takes Charlotte's Web's premier proprietary genetics to the next generation, and builds a strong wall of protection around it, and the products made from it.
It's been a good week for Charlotte's Web Holdings, Inc. (TSE:CWEB) shareholders, because the company has just...
The U.S. CBD sector held so much promise after the government approved the 2018 Farm Bill. Market research firms stared placing total addressable market targets topping $20 billion in a few years, but the FDA has left the market to mostly just lotions and creams leaving the high demand products off major retailer shelves.At the same time, thousands of different brands have flooded to the space including ones from the large Canadian cannabis LPs. Both Aurora Cannabis and Canopy Growth, amongst others, have launched brands in the U.S. due to CBD being legal in the U.S pushing the brand totals above 2,000.CBD is the non-psychedelic version of marijuana associated with health and wellness products. Unfortunately for the market segment, the FDA has a mandate to require testing on food products declassified as a Schedule I drug. CBD falls into this category and the majority of the potential sales boost from CBD is tied into ingestible products like foods, dietary supplements and beverages.The sector is left mostly selling lotions and topical creams where product demand is normally around 15% of the total market demand. For the most part, mass retailers haven’t been willing to take on products under regulatory scrutiny by the FDA. The market once targeted at $20 billion in sales is now forecast by BDS to reach $12.3 billion in 2022 while Jefferies only predicts a market of $3.5 billion as the current pace and regulatory dynamics limits growth.The key here is that the related CBD stocks are now appropriately beaten down for the worse case scenario. The positive news from the coronavirus outbreak is that medical cannabis was considered essential in a sign that the regulators and governments continue to view cannabis products as essential parts of life leading to speculation the U.S. federal government will approve regulation allowing the expanded sales of CBD by requiring the FDA to remove any restrictions will pushing forward with testing.We’ve delved into three stocks set to benefit from ramped-up sales in CBD space. Using TipRanks’ Stock Comparison tool, we lined up the three alongside each other to get the lowdown on what the near-term holds for these CBD players.Canopy Growth (CGC)Canopy Growth is the new play in the space. Originally, the large Canadian was wasting money heading into the crowded U.S. cannabis space, but now the space is largely fragmented and likely to lose a ton of smaller players during the economic shutdown.Some of the estimates of the U.S. CBD market space alone match or even exceed the cannabis space in Canada. Canopy's first and foremost product has a better opportunity to grab shelf space now and the company could use their balance sheet to purchase some struggling players in the industry on the cheap. Similar to the Abacus Health acquisition by CWH, Canopy Growth could easily snap up some CBD brands in the U.S. on weakness and spend far below $100 million.At $14.50, the company only has a market cap of $5 billion with FY21 revenue estimates of $500 million. When Canopy Growth was originally forecasting 2020 sales topping $1 billion, the U.S. CBD market appeared more of a distracting move by the company. Now, a sudden removal of FDA restrictions could actually make the CBD product a prime revenue generator of the business.Canopy Growth was already a buy in the low teens and a big boost in the CBD space will magnify the market opportunity. The large Canadian player has far more capital to thrive via a protracted tough regulatory environment.TipRanks points to analyst sentiment split between confidence and caution on Canopy Growth shares. Out of 13 analysts polled in the last 12 months, 6 rates CGC a Buy, 6 say Hold, while only 1 suggests Sell. However, the consensus average price target stands at $20.86, marking a 43% upside potential from current levels. (See Canopy stock analysis on TipRanks)Charlotte’s Web Holdings (CWBHF)The ultimate signal for the health in the sector is Charlotte’s Web Holdings. The company is the clear independent leader in the U.S. CBD space and the stock hit a new 52-week low below $3 in March.The stock now has a market cap below $500 million while the original sales goal for this year was $350 million. Analysts even forecast 2021 sales topping $500 million as recently as mid-2019.Any signs of health in the CBD sector will first be seen via a boost in the stock price of CWH and the quarterly results. With the acquisition of Abacus Health Products, the company has access to over 15,000 unique retail doors plus some 16,500 health provider offices to expand distribution and consolidate market leadership in the space.CWH just needs the FDA to clear up the regulatory uncertainty surrounding food products and business will soar. H.R. 5587 would amend the Food, Drug, and Cosmetic Act to remove the requirements placing regulatory restrictions on food products. The new company will only trade at ~1x sales estimates once the FDA relaxes regulations.With 3 recent Buy ratings under its belt, CWH gets a Strong Buy from the analyst consensus view. The stock is a bargain at $4 and with an average price target of $7.31, an 81% twelve-month rise could be in the cards. (See CWH stock analysis on TipRanks)cbdMD (YCBD)cbdMD continues to trade near all-time lows below $1 following preliminary FQ2 numbers. The company focused on CBD sales saw revenues hit $9.4 million in the quarter, as sales were hit by the FDM mass market where the Covid-19 pandemic impacted sales.The company operates under the cbdMD and Paw CBD brands with a high reliance on influencers to sell products via their e-commerce site. While cbdMD expanded to over 5,300 retail doors, total tales were still driven predominantly by their e-commerce channel with over 70% of FQ2 sales from this channel.As with other CBD focused players, the company generates gross margins in the 65% range. Unfortunately, cbdMD has to spend $5 million in the marketing and sales area in order to drive sales leading to a net loss of about $5.1 million in the prior quarter after stripping out non-cash charges.The company has an improved cash balance of $14.5 million at the end of March. The stock is the speculative play of the group with investors buying this stock in a scenario where the FDA relaxes regulations on CBD food products sooner rather than later.To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
The best companies make tough moves in difficult times. With the CBD market struggling and the U.S. economy heading into a recession, Charlotte’s Web Holdings (CWBHF) made the aggressive move to snap up CBD competitor Abacus Health (ABAHF) for a fraction of their previous valuation. The move makes the new company a clear leader in the fractioned CBD space and a survivor when the economy and stock market rebounds.Acquisition DetailsCWH is paying 0.85 shares for each share of Abacus Health. The deal has the company issuing ~19.2 million shares for around 15% of the company.The new entity had a December 31 cash balance of $90.4 million with combined Q3 sales of $29.1 million. Abacus Health distributes 50 SKUs through ~12,000 unique retail doors and 16,500 healthcare providers for a combined entity with access to 15,000 unique doors. The move helps eliminate competition in around 9,000 of those existing stores.Abacus Health provides the company with more access to the topicals market and healthcare providers to expand their market reach in the promising CBD space. The new CWH has a 34.7% market share in the FDM market and 43.5% in the drug retail space.The company promises the deal is accretive to adjusted EBITDA targets in 2020 and should help the new entity fend of increased competition in the market. The one benefit of the coronavirus shutdown of the economy is the likely elimination of weaker funder competitors in the sector.Deep ValueAnalyst estimates have the new entity generating $190 million in 2020 sales with $144 million coming from CWH and $46 million from Abacus Health. The new entity will have around 67 million shares outstanding for a market cap of ~$450 million.The stock is very attractive here with an enterprise value of only $360 million and a current year revenue target of $190 million. The possibility exists for some revenue cuts with the weak economy and the tough competitive environment in the CBD space.Any positive signals from the FDA actually removing restrictions from food and dietary products will lead to sales taking off. Analysts originally pegged combined 2020 sales at close to $400 million before the FDA muddled the regulatory environment for food and dietary products. The moves caused the mass retailers signed up by CWH to retract plans to offer a full range of CBD products until regulatory clarity returns.The stock only trades at an EV of ~2.0x 2020 sales targets and less than 0.9x normalized sales targets, if the FDA ever eliminates regulatory scrutiny in the sector. The company had 75% gross margins and strong EBITDA margins before sales growth took a hit.TakeawayThe key investor takeaway is that CWH becomes a powerhouse in the CBD market. The Abacus Health deal makes the company better positioned for the topicals market and the healthcare segment. Once the economy picks back up, the stock will rebound as CWH traded up above $6 for most of February. The company continues to build for the future similar to how strong companies operate in difficult times.Judging from the consensus breakdown, it has been relatively quiet when it comes to analyst activity. Over the last three months, only 3 analysts have reviewed CWH. Both of which, however, were bullish, making the consensus a Strong Buy. On top of this, the $7.71 average price target puts the upside potential at nearly 74%. (See CWH stock analysis on TipRanks) More recent articles from Smarter Analyst: * Covid-19: Could Bellerphon Therapeutics’ INOpulse Help Address Hospital Ventilator Shortage? * From Cancer to COVID-19, Aim ImmunoTech’s Ampligen Shows Promise * 3 High-Powered Dividends Stocks With Over 7% Dividend Yield * Inovio Advances COVID-19 Vaccine to Phase 1 Testing; Analyst Reiterates 'Buy'
As you might know, Charlotte's Web Holdings, Inc. (TSE:CWEB) last week released its latest yearly, and things did not...
NEW YORK, NY / ACCESSWIRE / March 24, 2020 / Charlotte's Web Holdings, Inc. (OTCMKTS:CWBHF) will be discussing their earnings results in their 2019 Fourth Quarter Earnings call to be held on March 24, ...
Charlotte's Web Announces Line of Credit with J.P. Morgan and Engagement for Commercial Banking Services
Charlotte's Web to Acquire Abacus Health Products for Combined 35% Marketshare of CBD in Food/Drug/Mass Retail Channel
(TSX: CWEB; OTCQX: CWBHF) – Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") the market leader in hemp-derived extract products, is pleased to announce that an expert panel has unanimously concluded that Charlotte's Web's full spectrum hemp extract is Generally Recognized as Safe (GRAS) for use in certain foods in accordance with stringent regulatory safety guidelines and safety data available using well accepted toxicological principles.
Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") (TSX:CWEB, OTCQX:CWBHF), the market leader in hemp-derived CBD extract products, announces the establishment of Charlotte's Web Labs (CW Labs) an internal division for research & development substantially expanding on the Company's efforts around the science of hemp derived phytocannabinoids, terpenes and flavonoid compounds. The Company is placing its existing R&D; team under the leadership of recently hired Senior Vice President of Innovation, Tim Orr, who will lead CW Labs' expanded team of a dozen external and internal research specialists based in Buffalo, New York and Boulder, Colorado. Mr. Orr is a global healthcare executive with more than three decades of commercial and product development experience in the diagnostics, life sciences, and medical device industries. Mr. Orr has held top executive and management positions at Johnson & Johnson and Abbott Laboratories.
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E...
BOULDER, CO , March 4, 2020 /CNW/ - (TSX: CWEB; OTCQX: CWBHF) – Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") the market leader in hemp-derived extract products, has completed the audit of its 2019 hemp harvest, the sole source of the Company's full spectrum extracts which are high in naturally occurring cannabidiol ("CBD"). With its vertically integrated model, Charlotte's Web controls its supply chain to optimize product quality, traceability, and cost, bringing its high-quality hemp in at lower than comparable spot market prices.