|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||14.29 - 14.95|
|52 Week Range||8.13 - 25.25|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||120.38|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||23.97|
BOULDER, CO , May 24, 2019 /CNW/ - (CSE:CWEB, OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), the market share leader in hemp-derived CBD extract products, is pleased to announce today that the Underwriters (as defined below) of its previously-announced underwritten public offering of 7,000,000 common shares of the Company sold by certain current shareholders (the "Selling Shareholders") at a price of C$20.00 per share (the "Offering Price") have exercised in full their option to purchase an additional 1,050,000 common shares from the Selling Shareholders at the Offering Price. The gross proceeds to the Selling Shareholders under the exercise of this over-allotment will be C$21,000,000 , and together with the gross proceeds from the initial closing on May 15, 2019 of C$140,000,000 , the aggregate gross proceeds of the offering (the "Offering") will be $161,000,000 .
How Cresco Labs Stacks Up against Other Cannabis PlayersCresco LabsCresco Labs (CRLBF) is a multistate cannabis company that has presences in both the adult use and medical cannabis markets. The company has its own production and distribution
Charlotte’s Web Holdings’ Returns Compared to Its Peers'Charlotte’s Web HoldingsThe cannabis space has seen a lot of investor interest over the last few quarters. We’ve also seen some new listings in the cannabis sector. Looking at the YTD
BOULDER, CO , May 16, 2019 /CNW/ - Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") (CSE:CWEB, OTCQX:CWBHF), the market leader in hemp CBD extract products, announces will issue its 2019 first quarter results following the close of trading on the Canadian Securities Exchange (CSE) on May 28 , 2019. A conference call to discuss the results has been scheduled for the following day on May 29 at 8:00 a.m. Eastern Time . To participate in the call, please dial 1-647-427-7450 or 1-888-231-8191 approximately 10 minutes before the conference call and provide conference ID 7798405. A recording of the call will be available through June 5, 2019 . To listen to the rebroadcast please dial 1-416-849-0833 and provide the same conference ID.
BOULDER, CO , May 15, 2019 /CNW/ - (CSE:CWEB, OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), the market share leader in hemp-derived CBD extract products, is pleased to announce today the closing of its previously announced underwritten public offering of 7,000,000 common shares of the Company sold by certain current shareholders (the "Selling Shareholders") at a price of C$20.00 per share for total gross proceeds of C$140 million (the "Offering"). The Offering was conducted pursuant to the terms of an amended and restated underwriting agreement among the Company, the Underwriters (as defined below) and the Selling Shareholders dated May 13, 2019 (the "Underwriting Agreement").
Shortly after discussing the appeal in owning Charlotte’s Web Holdings (CWBHF), the company announced a secondary offering from selling shareholders. The offering is concerning since the company is still in the early stages of development, but the stock price is a better deal now after taking the hit from this secondary.Big SecondaryAfter disclosing that the company has an interesting position in the CBD pet market forecast to surge to a market size of $1.16 billion by 2022, Charlotte’s Web announced that selling shareholders were unloading 7 million shares at a price of C$20.00. The deal is ~$15 or about $10 below the recent highs.The selling shareholders have another 15% allotted to the deal that will in total raise C$161 million for early investors. The diluted share count is around 106 million.The stock now has a market valuation down at $1.5 billion so the deal amounts to nearly 10% of the outstanding shares. The amount is very sizable, but the shareholders are now less of a risk to unload more shares with the hemp-derived CBD market set to soar in the next 5 years. Source: Charlotte’s Web presentationPreliminary Q1Along with the secondary offering, Charlotte’s Web released preliminary Q1 numbers. The company forecasts revenues of $21 to $22 million with adjusted EBITDA of $4.0 to $4.5 million on gross margins of up to 75%.The revenues are right inline with Q4 revenues so the lack of growth might trouble some investors. Last year, Charlotte’s Web saw the biggest jump in sequential revenues during Q2 and Q4.The passing of the Farm Bill near the start of the quarter likely caused the market to delay some decisions to figure out the best way to take advantage of the new CBD market dynamics. The company forecasts a return to the historical EBITDA norms in the 30% to 35% range while most cannabis companies don’t even have historical norms. During Q1, Charlotte’s Web saw EBITDA margins dip to 20%.The CBD wellness company did provide some tepid forecasts for the rest of 2019. The projection for revenues of $120 to $170 million for the year is very conservative considering March sells hit a record of $8 million for an annualized rate of $96 million and a quarterly rate of $24 million.Charlotte’s Web has now topped 6,000 retail stores in May with a 50% increase in retail locations just this year alone. Those additional retail doors will contribute to significant revenue growth in 2019. More importantly than where the company reaches annual sales this year is that the run rate entering 2020 should be significantly higher.The company is doubling the planting of hemp acres in 2019 to 300 acres. Charlotte’s Web already boosted production 10 fold last year and similar production this year would bring the 2019 production to 20 fold the level of 2017. The company remains positioned with plenty of supplies of hemp-derived CBD while other players are just working on how to enter the industry with an intent of ramping up production next year.TakeawayThe key investor takeaway is that Charlotte’s Web looks appealing down below $15 having dipped from an April high of $25. The selling shareholders didn’t utilize the best time to unload significant shares, but the company is a market leader in the promising CBD sector with an appealing $1.5 billion valuation after the dip.New investors get a better deal with the stock down to $15.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. More recent articles from Smarter Analyst: * Micron's (MU) Tech Roadmap Highlights Flattening Cost Curve, Says Analyst; Reiterates Neutral on the Stock * Time to Cash Out on Cannabis Stock Canopy Growth (CGC) * GW Pharmaceuticals (GWPH) Stock Could Run Much Higher Over Time * Trade Tensions Bring Micron (MU) Stock Down, But Cascend Remains Bullish
Cannabis Sector Weekly Update: Sell-Off amid Market Weakness(Continued from Prior Part)EarningsLast week, we saw a flurry of earnings from cannabis players. Charlotte’s Web Holdings (CWEB) (CWBHF) released its preliminary first-quarter results on
Cannabis Sector Weekly Update: Sell-Off amid Market WeaknessCannabis weekly updateLast week, cannabis ETFs fell for the second consecutive week. The Horizons Marijuana Life Sciences ETF (HMMJ) saw a negative price action of 3.1%, while the ETFMG
A few months ago, I was thinking that medical marijuana would become legal in the United States by 2023, with recreational use to follow a few years later. I now expect it to be much sooner than that. And everyone who owns cannabis stocks stands to benefit-- perhaps by the 2020 election.One Republican who's close to President Trump, Dana Rohrabacher, is expecting it even SOONER: "as early as spring of 2019."Well, that's about where we are now. So it's time to get positioned in high-quality cannabis stocks with U.S. operations, if you haven't already.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNearly every Democratic presidential candidate has called for legalization. According to the insiders I've spoken with at cannabis conferences, President Trump is moving closer to introducing such a policy as well. The tax revenues alone would be more than any politician could pass up. * 7 Cloud Stocks to Buy on Overcast Days Already, the dominos are starting to fall -- which brings me to the first pot stock to own BEFORE legalization hits: Canopy Growth (CGC)One of the most important developments in the history of the U.S. marijuana industry hit the headlines just before the Easter holiday. Canadian cannabis giant Canopy Growth (NYSE:CGC) announced that once legalization is passed, it will buy a U.S.-based marijuana company called Acreage Holdings (OTCMKTS:ACRGF).Acreage already operates in 20 U.S. states, and was one of the first to tackle the East Coast market. Founder and CEO Kevin Murphy is a Wall Street transplant -- and incredibly well connected. Acreage's board includes three of the most important people on the planet: former U.S. Speaker of the House John Boehner, former Massachusetts governor and current presidential candidate William Weld, and former Prime Minister of Canada Brian Mulroney.Acreage has another advantage: the ability to manufacture and distribute on a national scale. That's thanks to its late-2018 acquisition of Form Factory.Canopy has already created billions in wealth for its shareholders, as you can see in the chart below. Imagine what it can do as the biggest player in the much-larger U.S. market.With marijuana illegal in the United States, pot stocks based here are still in the earlier part of that chart. The legal limitations result in the stocks trading at a major discount to their Canadian peers (for the moment). So, let's take a look at some of our highest-quality options. Innovative Industrial Properties (IIPR)Innovative Industrial Properties (NYSE:IIPR) is the only publicly traded marijuana real estate investment trust (REIT) - a vehicle that owns assets and must pay out 90% of its profits to shareholders.I've always loved the company's business model. It buys grow facilities from the growers, often providing them with much needed money for their businesses, and then leases the land back to them. Innovative Industrial Properties receives an initial base rent of 10%-16% of the total investment, and rent grows approximately 3%-4.5% a year. A typical lease is 10-20 years, with the targeted size of the initial deal from $5 million to more than $30 million.It's a win for the growers and a win for the company, which has grown to a market value of $780 million by repeating that acquisition and leaseback model over and over. As marijuana moves toward legalization in the United States, Innovative Industrial Properties is undoubtedly the best positioned real estate business.Not only is Innovative Industrial Properties the only marijuana stock to pay a dividend, it was the first to list on a major U.S. exchange. It began trading on the NYSE on December 1, 2016. Today, Innovative Industrial Properties is indeed the clear leader in marijuana real estate. Early investors have made a lot of money along the way…and many more will rush in the moment marijuana is legalized federally. iAnthus Capital (ITHUF)In October, iAnthus Capital (OTCMKTS:ITHUF) was part of the biggest marijuana merger of the time. By buying MPX Bioceuticals, iAnthus now has operations in 11 states, more than 60 retail locations, and over 500,000 square feet of cultivation and processing space.Most importantly for us as investors in marijuana stocks -- iAnthus is expected to be one of the first to turn a meaningful profit.iAnthus released its fourth-quarter numbers on April 2, with quarterly revenue coming in at $2.2 million on full-year sales of $4.5 million. Specifically, iAnthus generates revenue in nine of the 11 states it is currently approved to do business in. California should join that list as No. 10 in the next couple of months. The company has 21 dispensaries open with the ability to open 40+ more. It has a total of 200,000 square feet in cultivation and processing facilities in nine states and the potential to increase that to as much as 580,000 square feet.And it's about to expand even further. On March 29, iAnthus also announced that it would purchase CBD for Life, a national cannabidiol (CBD) brand in the United States. Its products are currently available in more than 750 retail outlets throughout the country. That number will likely skyrocket once marijuana is legal in every state. Charlotte's Web (CWBHF)No list of my favorite U.S. cannabis stocks is complete without Charlotte's Web (OTCMKTS:CWBHF), my pick for the InvestorPlace Best Stocks for 2019 Contest.Charlotte's Web is the world's leading brand by market share in the production and distribution of CBD wellness products. It gets its name from a five-year-old girl named Charlotte Figi whose grand mal seizures were drastically reduced -- from 300 per week to just two or three a month -- thanks to this company's high-quality CBD oil. It's an amazing story, and just one example of why this industry is set to grow 40X in the coming years.For these reasons, Charlotte's Web's jump to a major stock exchange in either the U.S. or Canada is inevitable, and I suspect the announcement is right around the corner. I see the company garnering more and more market share as CBD oil hits the shelves in CVS Health (NYSE:CVS) and Walgreens (NASDAQ:WBA) stores… just for starters. I Also Like Penny Pot Stocks. Here's WhyCanopy, Innovative Industrial Properties, iAnthus, and Charlotte's Web are the heavyweights in their markets. All of them started out as penny stocks.For that matter, so did Coca-Cola (NYSE:KO), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Microsoft (NASDAQ:MSFT). But people who invested with Steve Jobs and Bill Gates when they were operating out of garages are now, of course, incredibly wealthy. And these companies went from just a couple of employees -- to employing millions worldwide.You might own AAPL stock yourself. But many of the gains have already been made. For example, in the last two years, it's up 24%. In the same time, IIPR is up 387%, and CGC is up 480%.Think about it: It's easier to go from $0.50 to $3 per share, than it is to go from $200 to $1,200 per share.And while these stocks are so tiny, the "big money" on Wall Street is locked out. But not us. Click here to learn more.I've got a whole presentation for you on all the reasons I like penny pot stocks with U.S. legalization around the corner. But it boils down to their ability to innovate.It's about buying the equivalent of Apple before the iPhone… not Apple once it's cranking out more expensive versions of the same product.Now, when it comes to penny stocks, you've got to weed through a lot of trash. Let me show you my five-step method for picking the RIGHT penny stocks.After my presentation, you'll have the chance to learn about the four penny pot stocks my research is highlighting now. Actually, I'll throw in a fifth penny pot stock just for fun.With legalization about to hit possibly in the next few weeks - it's now or never.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 * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post 4 Pot Stocks to Own for Full-Blown Federal Marijuana Reform appeared first on InvestorPlace.
Charlotte’s Web Holdings (CWBHF) has a lot going for the company. Not only is the company perfectly positioned in the domestic CBD market, but also the stock is remains relatively under the radar. The company recently expanded a canine-focused pet line due to strong market demand that should reward shareholder.Big Pet OpportunityAccording to the Brightfield Group, the CBD pet market is forecast to surge to a market size of $1.16 billion by 2022. Charlotte’s Web recently launched an expanded canine-focused pet lineup with 12 new SKUs to capture growing demand.The market for canine products focuses on products for calming dogs to reduce stresses and to general pain relief from stiffness in hips and joints. Charlotte’s Web uses hemp extracts to make chews, balms, and flavored and unflavored oils to supply the canine market.In Q4, revenues from animal nutrition products grew by 126%. The 2018 growth for the canine products was 189%, though some of the excitement should be tampered down due to the products only being released in February 2017. The revenue amounts are still relatiely small, but the key is Charlotte’s Web building up a brand name as the market opens up.Hidden ValueWhile Charlotte’s Web doesn’t appear cheap on first brush, the company is uniquely positioned in the CBD market. A big plus is that, the company is focused on being a brand with a strong ecommerce platform for their hemp-based CBD products.The stock has a current market value in the $1.7 billion range with a 2019 revenue target of $190 million. The forecast is for revenue growth of about 150% that is impressive until one views some projections of other companies in the cannabis sector.Without the costly retail stores, Charlotte’s Web doesn’t have all of the large fixed costs. In addition, the Colorado-based company already has the supplies due to a 10 fold increase in hemp production in 2018 to 675,000 pounds.The company is ahead of the game as other players like Canopy Growth (CGC) and Village Farms (VFF) look to just now enter the CBD market following the passing of the 2018 Farm Bill. Charlotte’s Web is already on the market releasing updates to existing product lines like the canine pet lineup.In Q4, the company produced 20% EBITDA margins on revenues of only $21.5 million. Higher revenues from expanded product lines and more retail distribution outlets in 2019 should lead to some substantial revenue growth followed by strong EBITDA margins. The company forecasts a return to historical EBITDA norms in the 30% to 35% range while most cannabis companies don’t even have historical norms.As 2019 ends, the market will stop throwing all of the cannabis stocks into one basket with a likely preference for strong brands with high margins. Companies without the high fixed costs of large farming operations and retail locations will likely find strong appeal among investors.TakeawayThe key investor takeaway is that Charlotte’s Web continues to expand production lines and distribution sources without spending wildly on facilities. The stock recently bounced off highs and has several catalysts for even higher prices including the uplisting of the stock to a major stock exchange.For these reasons, Charlotte’s Web is not only friendly to pets, but also shareholders.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more: Can Marijuana Stock Charlotte’s Web (CWBHF) Go Even Higher? More recent articles from Smarter Analyst: * Micron's (MU) Tech Roadmap Highlights Flattening Cost Curve, Says Analyst; Reiterates Neutral on the Stock * Time to Cash Out on Cannabis Stock Canopy Growth (CGC) * GW Pharmaceuticals (GWPH) Stock Could Run Much Higher Over Time * Trade Tensions Bring Micron (MU) Stock Down, But Cascend Remains Bullish
It's become trendy for stock "gurus" to start pushing marijuana stocks. A few months ago, most of them were silent on the issue. Now they all seem to be pounding the table.I urged people to consider cannabis stocks back in 2014 - for one simple reason: Colorado had opened the door by being the first U.S. state to legalize recreational marijuana.Since then, Colorado has made over $6 billion in legal marijuana sales in just four years. This has produced more than $927 million in tax revenue. Some of the biggest names in U.S. legal cannabis operate there, like Charlotte's Web (OTCMKTS:CWBHF) and Elixinol Global (OTCMKTS:ELLXF), and they are flourishing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom the beginning, I knew that was just the first "domino" to fall… leading to full, federal legalization.Given that we've been under marijuana prohibition for generations, many folks are still skeptical. Well, based on the facts, news, and trends - not a gut feeling for or against marijuana - I do expect legalization, and soon. And I've got six reasons why. * 7 Dangerous Dividend Stocks to Stay Far Away From Catalyst 1: SAFE Banking Act & STATES ActThe first official step to full-blown legalization will likely be one of two specific bills that are working their way through Congress.In March, the Secure and Fair Enforcement (SAFE) Banking Act passed the U.S. House Committee on Financial Services with bipartisan support. If passed, the bill will allow banks to work with marijuana companies without fear of breaking any laws.Only a small number of regional banks and credit unions currently take the risk of offering services to the industry. Banking costs for marijuana companies are exceptionally high - try $5,000 a month maintenance fees! - due to the risk banks are taking by technically breaking federal laws. So, access to traditional banks/loans would be a game-changer.The other piece of legislation, the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, will allow individual states to make their own laws on cannabis, including banking. Any bank lawfully working with marijuana businesses will be protected under the STATES Act.At least one of these bills will likely be passed in the coming months, and possibly both. Either would be a major step toward legalizing marijuana in the United States. Catalyst 2: The 2020 ElectionNote: Please understand that my analysis on politics and the stock market is 100% from an investing point of view. I have no desire to push any type of politics on you in any manner. I hate it when other people do that to me, and I would never do it to you. My one and only goal is to make you money.The 2020 presidential election is already in the daily headlines. I've lost track of the number of Democrats that have thrown their hats into the ring. I know it's more than 20… and the election is still more than a year-and-a-half away!These candidates come from all types of backgrounds. Some are far left and others are more moderate. The candidates will undoubtedly take vicious shots at each other as they try to secure the Democratic nomination, but there is one topic that could create that kumbaya moment - marijuana.Nearly every Democratic candidate has called for legalization of even recreational marijuana as well expunging federal charges related to cannabis. Former Vice President Joe Biden is one major exception, but I don't think we've heard the last from him on this issue. Expect the topic to be at the forefront of town halls and debates over the next 18 months.In the meantime, several bills were introduced in the last year that would legalize marijuana nationwide. The one that has the best chance - and the backing of big-name Democrats - is the Marijuana Justice Act. It was originally introduced in 2017, but a vote never took place. New Jersey Senator Cory Booker reintroduced the bill in February. Its chances of getting through the Senate are very low, but the bill does put pressure on the Republicans up for re-election. That brings me to the next catalyst… Catalyst 3: President TrumpI have attended a few cannabis conferences recently, and I stay in touch with industry insiders. In just the last few months, I've noticed a significant increase in the number of insiders who expect President Trump to introduce a bill to legalize marijuana. Based on what I'm hearing from them and people who have connections in D.C., the odds of the president introducing such a bill are now well above 50%.We know President Trump wants another term, and according to a poll by Civilized, cannabis users plan to vote come November 3, 2020. Civilized is a pro legalization site, but about 90% of people surveyed said they intend to vote in the next presidential election. That's significant, and about 3% higher than non-cannabis consumers.Democrats will make sure marijuana is front and center in all debates. And it makes sense politically for Republicans, too. Backing marijuana's legalization will not hurt the party's voter base and could bring some moderates over to their side.That is where President Trump comes into play. If legalizing marijuana can swing some moderate Democrats to his side, he will not hesitate. I and others I talk with increasingly believe President Trump will strike preemptively and legalize marijuana before the election. Catalyst 4: The DEAMarijuana remains a Schedule 1 drug in the United States, which is one reason it is illegal. According to the Drug Enforcement Administration (DEA), Schedule 1 drugs are generally unsafe with a high potential for abuse and no accepted medical use.More and more studies refute all three of those criteria when it comes to marijuana. The last qualifier - no accepted medical use - is now known to be simply false.What will it take for the DEA to remove marijuana from Schedule 1? Well, the first thing is old-fashioned common sense. Heroin, LSD, and ecstasy are all Schedule 2 drugs, which in theory means they are less dangerous than marijuana. That's crazy. You don't need a medical or biology degree to see how out of touch and outdated that is.Beyond common sense, there are other things that will force the DEA to change marijuana's classification. The most likely are more studies demonstrating the positive medicinal effects of marijuana.This is yet another silly situation because government regulations make it extremely difficult to perform those studies. However, new Attorney General William Barr has said he supports more marijuana research, and the more individual states do, the higher the likelihood this will change.The bottom line is that the DEA's blessing is necessary for marijuana to be legalized. If all other parties, including Congress and President Trump, get behind legalization, the DEA will have no choice but to succumb to the pressure. Catalyst 5: The Farm BillSomething called the Farm Bill doesn't sound all that exciting, but believe me, it is. The bill legalized hemp in the United States for the first time in over 80 years.To be clear, the legalization of hemp did not have any direct effect on marijuana laws. But it did open up the conversation of doing the same thing with cannabis, which is important. If the Farm Bill was a test run of legalization, the government should be satisfied.We're already seeing demand for hemp-related goods. Products that include cannabidiol (CBD), the non-psychoactive part of the plant, are now found in food, drinks, skincare products, etc. What's more, they are available at places like CVS Health (NYSE:CVS), Walgreens (NASDAQ:WBA), and Bed, Bath & Beyond (NASDAQ:BBBY). The hemp-CBD market is expected to balloon 40X over the next few years. Catalyst 6: Money, Money, MoneyGood or bad, right or wrong, many decisions are made based on money. When it comes to marijuana, the dollar signs are too big to ignore.The amount of tax revenue that states could generate from legal marijuana is impressive. And when politicians of one state watch neighboring states bring in revenue, it puts pressure on them to get in on the action. Thus, the snowball effect of more states legalizing marijuana.Job creation is an often overlooked benefit of legalization. One study shows that marijuana could result in over 300,000 new jobs by 2020.California has already created 80,000 jobs in the marijuana industry, according to a study from ICF International. To put that into money terms - that is a $3.5 billion increase in labor income. And guess what? More income taxes as well.All states would love to have hundreds of millions in additional revenue. So would the federal government… which is a big reason for the bold prediction I'm making now.The United States is flying towards legalization, which means U.S. pot stocks have massive potential ahead. As an investor, you need to grab your slice of that pie. However you feel about marijuana, numbers don't lie, and getting in on the ground floor of a mega-trend like this is how you build explosive wealth.But it's critical to get in BEFORE America legalizes nationally.Marijuana stocks are about to deliver their next wave of wealth much quicker than you'd think. Click here for my presentation on the topic.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 * 7 Dangerous Dividend Stocks to Stay Far Away From * 7 Tips for New Investors Young and Old * 10 Great Stocks to Buy on Dips Compare Brokers The post 6 Signs That Marijuana Legalization is Closer Than You Think appeared first on InvestorPlace.
Charlotte’s Web Holdings' Preliminary Q1 Results(Continued from Prior Part)Cannabis stocksOn May 8, Charlotte’s Web Holdings (CWEB) (CWBHF) released its preliminary first-quarter results. The company maintained its 2019 revenue guidance of
Charlotte’s Web Holdings' Preliminary Q1 ResultsCharlotte’s Web HoldingsOn May 8, Charlotte’s Web Holdings (CWEB) (CWBHF) released its preliminary first-quarter results after the markets closed. The company expects to post revenues of $21
BOULDER, CO , May 9, 2019 /CNW/ - (CSE:CWEB, OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web", or the "Company"), the market share leader in hemp-derived CBD extract products, announces the pricing of its previously announced underwritten public offering of an aggregate of 7 million common shares at a price of C$20.00 per share for total gross proceeds of approximately C$140 million . All of the common shares in the offering are to be sold by certain current shareholders. The offering is expected to close on or about May 15, 2019 , subject to the satisfaction of customary closing conditions, including the listing of the common shares on the Canadian Securities Exchange.
BOULDER, CO , May 8, 2019 /CNW/ - Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") (CSE:CWEB, OTCQX:CWBHF), the market share leader in hemp-derived CBD extract products, today reported certain preliminary financial results for the first quarter ended March 31, 2019 . "We view these national accounts as big wins for Charlotte's Web," said Mr. Moallem. "Though they are entering the category slowly, these accounts are expected to transition from pilot sites to broader rollouts with expanded offerings in the future, and we have prepared ourselves in order to support these valued partners, including the introduction of new products across the consumable, topical and pet categories.
BOULDER, CO , May 8, 2019 /CNW/ - (CSE:CWEB, OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web", or the "Company"), the market share leader in hemp-derived CBD extract products, intends to sell its common shares in an underwritten public offering. All of the common shares in the offering are to be sold by certain current shareholders.
Key Cannabis Sector Updates: Price Action and Analyst Ratings(Continued from Prior Part)Cannabis updateLast week, Emerald Health Therapeutics (EMH) closed with losses of 9.4%. The company released its fourth-quarter and full-year 2018 earnings last
Key Cannabis Sector Updates: Price Action and Analyst RatingsCannabis stocksCannabis ETFs traded on a negative note last week. The Horizons Marijuana Life Sciences ETF (HMMJ) fell 1.2%, while the ETFMG Alternate Harvest ETF (MJ) gained 0.33%. The
BOULDER, CO , May 7, 2019 /CNW/ - (CSE:CWEB, OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web", or the "Company") the market share leader in hemp-derived CBD extract products, is pleased to announce 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. 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 .
This newly-introduced cannabis exchange-traded fund is holding 32 pot stocks -- but it's not nearly as diversified as it sounds.
The bull case for Charlotte's Web (OTCMKTS:CWBHF) stock seems reasonably easy to make. The producer of hemp and hemp-derived CBD (cannabidiol) oil has a massive growth opportunity akin to that of marijuana stocks. Yet with the passage of the Farm Bill late last year, Charlotte's Web products should be clearly legal in the U.S. That suggests a larger, nearer-term market opportunity for Charlotte's Web - and perhaps more potential near-term gains for Charlotte's Web stock.Source: Shutterstock Indeed, I recommended Charlotte's Web stock at the end of last year. That's proven to be a smart call. CWBHF stock has gained nicely, rising about 70%. Those gains are roughly in line with most marijuana stocks: Canopy Growth (NYSE:CGC) has gained 80%, and Cronos Group (NASDAQ:CRON) about 60%. Clearly, optimism toward the Farm Bill and a broader 'risk-on' sentiment in equity markets have helped cannabis and hemp stocks across the board.At current levels, however, there are risks to CWBHF stock. Marijuana stocks on the whole look potentially stretched, and while Charlotte's Web has some advantages over that group, its valuation too incorporates quite a bit of growth. An awful lot of good news seems priced in at this point - but there are risks that could send Charlotte's Web stock tumbling.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks That Are Under $10 The Valuation of Charlotte's Web StockThe story behind Charlotte's Web, as a business, looks attractive. The company is a leader, and likely the leader, in the growing CBD oil space. Its hemp production has soared, rising more than tenfold to 675,000 pounds in 2018, per the Q4 release. And now larger retailers are coming on board: Walgreens (NASDAQ:WBA) and Rite Aid (NYSE:RAD) both announced recently that they would add CBD products to their stores.In other words, there are several avenues for growth. Charlotte's Web has the potential to take market share in what looks to be an extremely fragmented industry, either through acquisitions or through the eventual failure of some of the myriad producers in CBD. Points of distribution are going to rise. Charlotte's Web on its website cites 4,000 retail locations at the moment. Walgreens has over 18,000 stores, and Rite Aid nearly 2,500.To be sure, neither Walgreens nor Rite Aid is launching CBD products in all of its stores immediately. Rite Aid is limiting its initial exposure to just topical products in a few states. But the broad point still holds: Charlotte's Web can take more share in a market set to reach more customers through more stores.One key risk, however, is that the story isn't exactly unknown by investors at this point. Charlotte's Web stock now has a market capitalization over $2 billion. It trades at about 30x 2018 revenue and 100x 2018 Adjusted EBITDA. Those are huge numbers, mostly in line with larger marijuana stocks. Yet Charlotte's Web, in part because it had a larger 2017 base, isn't growing as fast as most THC-based companies.Sales rose 'just' 74% in 2018. That's an impressive rate, certainly, but lags the triple-digit rates seen elsewhere in the space. Adjusted EBITDA rose 48%. But that includes a year-over-year decline in the fourth quarter. As impressive as Charlotte's Web market opportunity is, recent growth must repeat for years to support the current valuation. Anything less simply isn't good enough. Is CBD a Fad?And that growth requires that CBD demand continue to grow at the same nearly exponential rate at which it has of late. That seems possible but hardly guaranteed. The Charlotte's Web origin story, as Matt McCall detailed in calling Charlotte's Web stock his best pick for 2019, is that a girl named Charlotte saw her seizures decrease dramatically when she started taking CBD oil. Many other customers swear by the product for myriad other uses.But as the New York Times pointed out in February, at least so far there's little scientific evidence backing the effectiveness of CBD oil. In fact, there's little standardization even of dosing, particularly given the various types of applications. Swallowing CBD oil results in a very different dose of cannabidiol than a topical cream.Anecdotal evidence appears to support some use for the product, admittedly. But advocates and CHWBF bulls are expecting adoption and persistence rates to stay as high going forward as they have been of late.It remains to be seen whether that will be the case. A product that supposedly cures so many afflictions will inspire demand. But it will also raise expectations. If new customers expect CBD oil to be a super-supplement and it fails, what then?Indeed, we've seen similar trends come and go, particularly in dieting. Atkins was huge, then it faded. Gluten-free sales soared among customers without specific allergies, then faded.CBD oil obviously is different from those products. But there's still a valid question: is it a wonder drug, or just another fad that will come and go? At this point, the jury still is out. Where Do Margins Go?Even assuming the market continues to grow, there's a key question in terms of profit margins: what does a mature CBD market look like? Is it akin to food and beverage markets, where there are differentiated, branded products at the high end and low end? Or does CBD, the benefits of which supposedly are based on the underlying compound, become commoditized?This question is key for marijuana stocks as well. But in CBD, it seems even more pressing. Charlotte's Web at the moment has an edge over smaller rivals because it seems more trustworthy. It's been around longer. It's respected. Consumers can trust the manufacturing process, and trust that the CBD content is accurately measured. Smaller, less well-known rivals may not have the same level of trust.At some point, however, that changes. A major company like Coca-Cola (NYSE:KO) may enter the space. Or clearer legalization may allow for more standardized manufacturing and more transparent production processes and labeling.If CBD oil is simply a commodity, Charlotte's Web almost certainly loses pricing power. If there's no "better" CBD oil, producers will compete more on price and less on branding. Charlotte's Web's first-mover advantage will evaporate and margins will decline.There are similar worries on the cannabis side. Legalization in Oregon, for instance, has led to plunging prices. The same Farm Bill that led to so much optimism behind Charlotte's Web stock could lead to a similar outcome in CBD oil. And at 100x EBITDA and 130x net income, Charlotte's Web stock is not priced for falling prices or stagnant margins.That's the broad worry at this point. Even with a decline in recent sessions, Charlotte's Web stock still looks priced for something close to perfection. But risks lurk. At this price, it only takes one of the risks to lead CWHBF to tumble.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 U.S. Shale Oil Stocks to Buy as Prices Rise * 10 Stocks to Sell Before They Give Back 2019 Gains * 10 Oversold Stocks to Run From Compare Brokers The post 3 Key Risks to Consider Before Jumping into Charlotte's Web Stock appeared first on InvestorPlace.