2.8400 -0.01 (-0.35%)
After hours: 4:00PM EST
|Bid||2.7400 x 1100|
|Ask||2.8900 x 800|
|Day's Range||2.8400 - 2.9900|
|52 Week Range||2.5400 - 7.2400|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 11, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.80|
cbdMD, Inc. (NYSE American: YCBD), a nationally recognized consumer cannabidiol (CBD) brand, announced today that it will host a conference call at 4:15 p.m., Eastern Time, on Wednesday, December 18, 2019, to discuss the company’s fiscal 2019 financial results and business progress.
Paw CBD, a division of cbdMD, Inc. (NYSE American: YCBD), a nationally recognized consumer cannabidiol (CBD) brand, was awarded an accolade given by one of the top publications in the pet industry. Pet Business Magazine named Paw CBD's Calming Turkey CBD Soft Chews as a top CBD product for pets in their dog calming aids category.
The U.S. Food and Drug Association has crushed investor hopes for substantial growth in cannabidol (CBD) sales. The government organization doubled down on previous statements surrounding the “safety concerns” of long-term use of CBD along with the lack of clear testing. The FDA currently has CBD products as illegal to market by adding it to a food or labeling it as an dietary supplement.The new FDA warning will follow with official guidelines at a later date. For now, stores selling ingestibles (food products) will likely continue, but the biggest problem facing the sector is that the large FDM retailers have withheld placing these items in stores due to the uncertainty surrounding the FDA guidelines.The CBD market opportunity was forecast by the Brightfield Group at the potential of reaching over $21 billion by just 2022. This upside potential likely won’t occur now due to the strong warnings from the FDA leaving open the door for only reaching the low-end potential of $4.4 billion.The biggest problem for investors is around the FDA warnings that might scare away potential users in the future. Per the FDA based mostly on the limited testing from the FDA-approved drug Epidiolex, CBD has to the potential to harm users via the following: * CBD can cause liver injury. * CBD can affect the metabolism of other drugs, causing serious side effects. * CBD mixed with alcohol or other depressants increases the risk of drowsiness.One of the biggest concerns of the FDA is the lack of testing on CBD regarding the science, safety and quality of the products. For example, testing on lab animals has already found problems with the male offspring of CBD-treated pregnant females. In addition, little is known in the way of the long-term use impact.Due to these concerns from the FDA, we’ve delved into these three U.S. CBD companies that will be impacted by the likely slower than expected rollout of CBD products at major retailers and potential reduced demand from consumers in the short term:Charlotte’s Web Holdings (CWBHF)Charlotte’s Web Holdings is the leader in the domestic CBD sector and a company that had already warned on the impact of the FDA. The company missed Q3 estimates due to a slower rollout from the FDM channel awaiting clearer regulations from the FDA.The other problem is the competitive landscape in the CBD category. Previous research had the amount of CBD brands at only 600 last year with the number sky rocketing to 2,800 now.The market has the worst-case scenario of tons of brands reaching market while the FDA remains restrictive on food products and dietary supplements. The problem for Charlotte’s Web is that only 15% of sales from specialty stores come from topicals (lotions, creams, balm rubs) while the rest comes from the ingestible category.The CBD company is seeing the most growth from the large retailers with distribution deals with Kroger and Vitamin Shoppe contributing to the FDM retail partners expanding by 787 locations in the quarter. Unfortunately, these stores aren’t generating the expected sales causing Charlotte’s Web to cut revenue estimates to only up to $150 million in 2020 or virtually 50% below previous analyst estimates of around $280 million.The CBD company recently completed an equity offering raising $50 million reducing the capital dilution risk to new investors. But overall, the stock is dead money until the FDM channel opens up. (See Charlotte’s Web's price targets and analyst ratings on TipRanks)CV Sciences (CVSI) While Charlotte’s Web has a sizable market cap of nearly $1 billion, the other pure stocks in the CBD sector are much smaller. CV Sciences has a listed market value of $114 million with a fully diluted share count of 115 million shares and the stock is already down 15% on the harsher statements from the FDA.The company actually saw Q3 sales decline from the same period last year due to the uncertain regulatory environment. All while, CV Sciences grew their distribution points by 18% sequentially from Q2 to 5,400 stores. The company is in about half the retail stores of Charlotte’s Web while having similar distribution deals with Kroger and Vitamin Shoppe highlighting the competitive nature of the CBD space already.The company guided 2019 revenues to $56 million placing the stock valuation at slightly above 2x sales estimates. CV Sciences was highly profitable last year based on strong sector gross margins that topped 70%. The recent hiccup in the space suddenly has the company losing money while only having about $14 million in cash on the balance sheet.The biggest concern here for the smaller players is the lack of access to cheap capital as the market turns down. (See CV Sciences' stock-price forecast on TipRanks)cbdMD (YCBD)cbdMD is the smallest company in this group with Q3 revenues of only $8.0 million. Contrary to CV Sciences, cbdMD saw revenues surge 150% from last Q3.The company has a smaller retail footprint with only 3,000 retail doors at the end of Q3, though the numbers are up from only 600 at the end of 2018. cbdMD places a bigger focus on celebrity endorsements that include Bubba Watson from the PGA Tour and Ice Cube’s Big 3 basketball league.The company expects to drive substantial revenue growth over the next two years going from FY19 sales of $25 million to FY20 sales of $85 million to a whopping $300 million in FY21. cbdMD might have a more successful marketing model in the near term with celebrity endorses outweighing FDA warnings, but the revenue estimates appear far too aggressive for the current competitive landscape.The company has solid gross margins of 63%, but the operating expenses are far too large pushing the quarterly operating loss to over $6 million on only $8 million in net sales. The FDA regulatory environment is far too restrictive to invest in a money losing CBD company with unrealistic targets. (Find out how the Street’s average price target for cbdMD breaks down)To find better ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
You don't have to look too far to recognize the devastation that has occurred among marijuana stocks. Due to generally disappointing financial performances, the sector has been awash in red ink. Unfortunately, investors are losing patience with this chronically losing market, which has -- unsurprisingly -- affected marijuana penny stocks disproportionately.Naturally, I understand if someone is hesitant to dive into this sector, irrespective of the discount. We can talk all day about the transformative potential of legal cannabis, and I've done exactly that. But Wall Street has nervously eyeballed financial viability. Without any of the major players stepping up to the plate, cannabis investments, especially marijuana penny stocks, have incurred volatility.But if you're willing to absorb the bruises inherent in "botanical" companies, you may want to reconsider marijuana stocks. First, several green competitors rebounded on Tuesday on the announcement of a proposed Congressional bill to remove "criminal prohibitions against marijuana at the federal level."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf successful, this would represent a huge lift for both the major cannabis players and marijuana penny stocks. Currently, the Agriculture Improvement Act of 2018, colloquially known as the farm bill, federally legalizes industrial hemp and hemp-derived products. Specifically, this means that hemp or hemp-derived cannabis products like cannabidiol (CBD) cannot contain more than 0.3% tetrahydrocannabinol (THC) content.A second upshot for marijuana stocks is that Americans have a growing distrust for the medical system. That's not surprising, considering major pharmaceutical firms' involvement in the raging opioid crisis. People are looking for true, naturally sourced therapies and cannabis offers a viable pathway. * 7 Killer Stocks No One Knows About With that, let's take a look at seven compelling marijuana penny stocks: cbdMD (YCBD)Source: Shutterstock Before I get into it, I should caveat that cbdMD (NYSEAMERICAN:YCBD) isn't a name most folks would consider belonging among key marijuana penny stocks to buy. Furthermore, cbdMD does not specialize in marijuana products. Instead, they focus on broad spectrum CBD -- products that contain CBD, other cannabinoids and essential oils (terpenes), but zero THC.This last point is especially important for YCBD stock because cbdMD has endorsement deals with several pro-athletes. Arguably, the most well known is two-times Masters champion Bubba Watson. As Watson relayed in an interview, he needed a product that would help with the aging process. He also required a product that would allow him to compete professionally without pinging positive for a drug test.Another reason why YCBD stock deserves a top billing is that cbdMD is headquartered in the U.S. And the American market is wide open for a company to establish a CBD brand, according to cbdMD CEO Marty Sumichrast. Thanks to a comprehensive and effective product portfolio along with key endorsements, YCBD stock is a name you shouldn't ignore. Hexo (HEXO)Source: Shutterstock Among the worst hit marijuana stocks, Hexo (NYSE:HEXO) was trading within the respectable $4 price range in late summer of this year. However, a rash of poor fiscal performances in the sector substantially hurt HEXO stock. And specific to the underlying company, the growing losses in net income have worried investors.As a result, HEXO is now counted among the worst hit marijuana penny stocks. Still, if you've got an iron stomach, I believe this embattled firm has serious upside potential.For one thing, management has earned respect for its forthrightness regarding its unlicensed cannabis production incident. Due to an oversight, Hexo mistakenly produced cannabis in an unlicensed area. However, unlike CannTrust (NYSE:CTST), management reported the incident to governing agency Health Canada. Optically, despite an unfortunate error, I think it is a good look for HEXO stock because of the honesty involved. * 10 Best High-Growth Stocks to Buy for Young Investors Second, Hexo has a joint venture with Molson Coors Brewing (NYSE:TAP) to produce CBD-infused beverages. Experts peg this market to hit over $1 billion by 2022, presenting an opportunity for HEXO stock. CV Sciences (CVSI)Source: Kimberly Boyles / Shutterstock.com Under the best of circumstances, equity shares of small pharmaceutical companies are subject to extreme volatility. Logically, then, marijuana penny stocks that focus on cannabis-based drugs are just as unpredictable, if not more so. And that's the case with CV Sciences (OTCMKTS:CVSI) and CVSI stock.Back when the weed market was still fresh, companies like CV Sciences experienced dramatic surges in valuation. However, with the Street demanding hard results and not merely tantalizing narratives, the cannabis investment sector crumbled.Still, CVSI stock makes a compelling case for itself if you're willing to accept the wildness in its pricing dynamic. One of the company's drugs is a synthetic CBD formulation designed to curb smokeless tobacco use and addiction. With the vaping crisis becoming one of the hot topics earlier this year, CV Sciences' products have incredible relevancy. Cannabis Sativa (CBDS)Source: Shutterstock Like many marijuana penny stocks, Cannabis Sativa (OTCMKTS:CBDS) started off with great promise thanks to its multi-varied brands and businesses. For instance, the company opened up its first "hi Brand International" dispensary in Portland, Oregon. It's also seeking opportunities for expansion into green-friendly states.That said, one of the more intriguing businesses connected to CBDS stock is the skincare market. According to retail cannabis market experts, the CBD skincare market will likely reach $1.7 billion by 2025. That might not sound like a groundbreaking number. However, considering that Cannabis Sativa only made half-a-million dollars last year, this could be a huge prospect for CBDS stock. * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio Moreover, speculators should consider the broader implications. Major marijuana stocks, such as Cronos Group (NASDAQ:CRON), are entering the U.S. CBD market via acquisitions like the Lord Jones deal. Of course, Lord Jones is a big CBD skincare brand. Thus, CBDS stock is at least fundamentally moving in the right direction. MariMed (MRMD)Source: Shutterstock If there's one phrase to describe marijuana stocks, it's that this industry represents the perpetual clash between theory and reality. In theory, legal cannabis opened up the door to previously untappable revenue streams. But in reality, the industry suffered from unexpected supply chain issues, stymieing an otherwise unprecedented breakthrough.However, this theory-versus-reality conflict also benefits MariMed (OCTMKTS:MRMD) and MRMD stock. Primarily, MariMed operates as an administrative and operational advisor for the burgeoning cannabis industry. While legalization in North America has brought initial enthusiasm, cannabis-based enterprises are incredibly tough to get up and running. Here, MariMed plays the role of expert consultant, navigating clients away from common pitfalls toward higher probabilities of success.Despite the obvious need for the company's services, that hasn't stopped MRMD stock from turning volatile. In fact, today, it's firmly in the territory of marijuana penny stocks. Still, shares appeared to have stabilized since mid-October, tempting the contrarian approach. MedMen Enterprises (MMNFF)Source: Shutterstock It's almost tragic what happened to MedMen Enterprises (OTCMKTS:MMNFF) recently. Just days ago, MMNFF stock was trading above the all-too-critical $1 threshold. But with the ugly realization that the underlying company could face bankruptcy, shares tumbled below that threshold. Now, it's on this list of very speculative marijuana penny stocks.But can it eventually join the ranks of "regular" marijuana stocks? I'm going to be blunt: MMNFF stock is now one of the riskiest names in the cannabis markets. On the flipside, it does have tremendous upside potential because of this overwhelming risk.In my interview with cbdMD's CEO Marty Sumichrast, he articulated the concept of cannabis branding. When it comes to the retail space, I can't think of a cleaner and more professional brand than MedMen Enterprises. It doesn't try to be an over-the-top weed distributor. Instead, they're focused on quality products and excellent customer service. * 7 High-Yield ETFs to Buy Now Will this be enough to save MMNFF stock? Undoubtedly, this is a gamble, but an interesting one. Diego Pellicer Worldwide (DPWW)Source: Shutterstock If you're looking for the "ultimate" in marijuana penny stocks, then treat yourself to Diego Pellicer Worldwide (OTCMKTS:DPWW). Funny, but true story: I didn't even know about this company's existence until an InvestorPlace reader named Anthony reached out to me and asked me about it. Curious, I researched DPWW stock and I must say it's an intriguing concept.Generally speaking, legal cannabis retailers fall under two camps: those that emphasize the "street image" of the cannabis plant and businesses that cater to therapeutic use. However, Diego Pellicer introduces a third option: premium, luxury-themed cannabis products.Under ideal circumstances, DPWW stock might work out. Making cannabis isn't exactly rocket science. Thus, with supply rising, industry players need a distinguishing brand. Diego Pellicer has that in droves.What it doesn't have, though, is market credibility. DPWW stock currently trades at less than 2 cents. You've been warned.As of this writing, Josh Enomoto is long YCBD, HEXO, and MRMD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Consumer Stocks to Buy Before Black Friday * 9 Tantalizing Dividend Stocks for 2020 * 5 Lottery Stocks With Triple-Digit Upside The post 7 Marijuana Penny Stocks That Have Ridiculous Possibilities appeared first on InvestorPlace.
cbdMD, Inc. , a nationally recognized consumer cannabidiol brand, today announced the timing for the payment of its declared regular monthly dividend of $0.0667 per share of its 8.0% Series A Cumulative Convertible Preferred Stock for December 2019.
cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBD.PR.A), a nationally recognized consumer cannabidiol (CBD) brand, announced today that in tandem with its strong sequential sales growth recently reported, the company has also been ranked the highest in several key categories within the CBD industry.
Thanks to both Canadian legalization as well as the 2018 farm bill here in the states, North America has essentially become "little Amsterdam." Moreover, favorably shifting public sentiment in the U.S. has made cannabis-infused beverage companies like New Age Beverages (NASDAQ:NBEV) intriguing for both consumers and investors alike. Particularly, NBEV stock appeals for the underlying broad mixture of cannabis and general health-related drinks.Source: monticello / Shutterstock.com Still, cannabis stocks are infamous for their volatility. Due to myriad challenges, along with questions about the industry's financial viability, several investors have dumped out of their positions. Despite New Age Beverages stock not being a pure cannabis play, shares have not received an exemption from the pain. Naturally, investors remain unsure how to approach NBEV.Further adding to the pressure, New Age will release its third-quarter earnings results on Nov. 14 before the opening bell. Since Q2 2017, the company has failed to deliver positive earnings per share. As such, investors will likely want to see some meaningful pathway toward profitability for NBEV stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven the rough waters of the broader cannabis industry, it's difficult to guess how the markets will respond on Thursday. Still, legal cannabis products, especially cannabis-infused beverages are incredibly popular. With that, here are three arguments for and against New Age Beverages stock: Pros: Strong Projected Growth for Cannabis BeveragesCannabis-based beverages, specifically cannabidiol or CBD-infused drinks, will be huge in the U.S. According to research firm Zenith Global, this market will hit a value of $1.4 billion at the end of 2023. To put this into context, Zenith projects CBD beverages to reach $227 million at the end of this year. * 7 Tech Stocks You Should Avoid Now In addition, companies like New Age have the opportunity to convert curious newcomers to cannabis-based products and therapies. According to an August 2019 Gallup poll, 14% of Americans say they use CBD. While impressive, this figure also leaves an ample opportunity for New Age to advantage, potentially lifting NBEV stock.Not only that, High Yield Insights performed a study revealing that the most popular CBD products are baked goods. Coming in second place are CBD gummies. While not beverages, these are consumable formats with which everyone is familiar.Therefore, it's not a stretch to assume that the folks who like CBD edibles will eventually make the switch to CBD-infused beverages. That's a potential net positive for New Age Beverages stock. Pros: American Market Wide Open for NBEV StockRecently, I interviewed Marty Sumichrast, chairman and co-CEO of cbdMD (NYSEAMERICAN:YCBD). In our long-format discussion, Sumichrast mentioned that the U.S. market is wide open. Furthermore, he argues that Americans prefer CBD to tetrahydrocannabinol (THC)-based botanicals.Combined with the company's impressive array of products, this dynamic places cbdMD in a position to become the dominant CBD brand in the U.S.As a shareholder of YCBD, I wish them well. However, because the U.S. market is so open without an established dominant player, it allows companies like New Age to carve out a niche in a specific sub-segment like CBD-infused beverages. Pros: New Age Beverage Stock Isn't a Pure Cannabis PlayAlthough heavily associated with CBD, NBEV stock isn't purely a CBD investment. And right now, I'd say that fact offers some key advantages.Namely, New Age hasn't followed its cannabis peers in aggressive fiscal maneuvering. Although the company hasn't been profitable in a while, you can clearly see the pathway to eventual profitability. Primarily, NBEV features strong revenue growth and reasonable expenses.Also, New Age has a relatively solid balance sheet, highlighted by nearly $84 million in cash and only $13.4 million in long-term debt. Combined with its long-term capital lease obligations, these liabilities amount to $60.5 million.Simply put, management isn't making wild swings. At this point, that's a positive for NBEV stock. Cons: Legal Uncertainty in U.S. CBD MarketDespite much potential, New Age hasn't yet entered the CBD-infused beverage space in the U.S. Why? Management has blamed a "murky" legal environment.I don't fault them. Under the 2018 farm bill, industrial hemp and hemp-derived products are legal for individuals to purchase. But that doesn't necessarily mean that CBD is legal. After all, cannabis is still considered a Schedule I drug.How do American companies get around this tricky situation? CBD derived from hemp is permissible under the farm bill. However, CBD from any other source -- even if it contains less than 0.3% THC as mandated by the law -- is illegal.Even when you have everything right, CBD laws are still very confusing and perhaps contradictory. Because of this uncertainty, New Age Beverages stock risks losing momentum to competitors. Cons: Too Many AssumptionsAs enticing as CBD beverages are, nobody really knows how the market will respond. Though enticing for those looking for a non-offensive way to enjoy cannabis, CBD-infused drinks could end up becoming a fad.More critically, CBD itself could also become a fad. While I don't think this will be the case, I concede that the medical community is hesitant about endorsing CBD. Further research is necessary for medical professionals to feel comfortable prescribing cannabidiol or other cannabis-based therapies.Until that happens, NBEV stock has a fundamental risk associated with it. Cons: Big-Name CompetitionAs with most good ideas, NBEV isn't the only one pursing cannabis-infused beverages. Several players are involved in the CBD beverage space, most notably the joint partnership between Molson Coors Brewing (NYSE:TAP) and Hexo (NYSE:HEXO).Depending on how popular CBD-infused beverages become, other big players might enter the space. This could either be positive for New Age Beverages stock (i.e., a buyout) or it could be negative. Frankly, if larger players enter the space, they could use their leverage to build out a new brand.Also, the fact that NBEV is stalling in the U.S. market isn't a great confidence booster. Final AssessmentNew Age Beverages stock is a risk, but a compelling one. With the right amount of luck, shares can take off thanks to its powerful CBD brand. And because the U.S. market is ripe for the taking, the possibilities are endless.However, NBEV stock falls short because of the legality issue of CBD. And while I'm enthusiastic about CBD-infused beverages, the industry has question marks about viability.Ultimately, though, a lot of the bad news is baked into the price. If you can stomach the risk, NBEV stock is worth a careful, measured shot.As of this writing, Josh Enomoto is long YCBD and HEXO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Give a Wide Berth * 7 Potential New Stocks That Should Not Go Public * 5 Chinese Stocks to Buy Surging Higher The post 3 Pros, 3 Cons for New Age Beverages Stock appeared first on InvestorPlace.
cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBD.PR.A), a nationally recognized consumer cannabidiol (CBD) brand, announced today preliminary unaudited net sales for the fourth quarter of fiscal 2019 which ended September 30, 2019. “cbdMD’s unaudited net sales were $9.5 million for our last quarter of fiscal 2019, which was an increase of over 67% from our March 2019 quarter, which was our brand’s first full publicly reported fiscal quarter following the closing of the acquisition of the brand in December 2018. The quarterly net sales results presented in this release are not based upon our audited financial consolidated statements which will appear in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 are preliminary and may change.
CHARLOTTE, N.C., Nov. 6, 2019 /PRNewswire/ -- cbdMD, Inc., a nationally recognized consumer cannabidiol (CBD) brand (NYSE American: YCBD), is excited to announce that they have become the Official CBD Partner, and the first CBD sponsor, of Skatepark of Tampa (SPoT). During its 26-year existence, SPoT has become the most recognized skatepark in the world for producing events that are considered the most watched in the sport. The annual Tampa Am and Tampa Pro contests are some of the most highly regarded events in skateboarding and draw thousands of spectators, athletes and viewers from around the world.
LOS ANGELES, Nov. 5, 2019 /PRNewswire/ -- Today, the World Surf League (WSL) announced a new partnership with cbdMD, a nationally recognized consumer cannabidiol (CBD) brand (NYSE American: YCBD). The official holding period for the cbdMD Jaws Big Wave Championships opened November 1, 2019, and runs through March 31, 2020. A must-see for every surf enthusiast, the cbdMD Jaws Big Wave Championships is the world's premier paddle-only big wave event, taking place at the famed Pe'ahi surf break on the north shore of Maui, Hawaii.
CHARLOTTE, N.C. , Nov. 4, 2019 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD) - Team cbdMD MMA fighter Jorge Masvidal earned the inaugural "BMF" title belt Saturday night in Madison Square ...
cbdMD, Inc., a nationally recognized consumer cannabidiol (CBD) brand (NYSE American: YCBD), announces its partnership with Hawaiian based ABC Stores, a leading travel retail chain serving travelers in over 70 stores throughout the U.S., Guam, and Saipan. Each location will offer products from cbdMD, including CBD oil tinctures, capsules, topicals, gummies, and more. “We’ve always been at the forefront of finding new items to enhance customer experience,” said ABC Stores.
Charlotte, N.C., Oct. 25, 2019 /PRNewswire-PRWeb/ -- cbdMD, Inc. (NYSE American: YCBD) announced today it has come on board as the exclusive CBD partner for both Monster Energy Supercross and the Monster Energy Cup that took place Saturday night at Sam Boyd Stadium in Las Vegas. The multi-year agreement officially began at Saturday's annual all-star event but will extend into the 2020 Monster Energy AMA Supercross and FIM World Championship season. "We're excited to be the first motorsport to have an exclusive deal within the CBD category," said Jason Bitsoff, SVP of Global Sponsorship for Feld Entertainment.
cbdMD will be on-site at Save Mart in Modesto, CA on Saturday, October 26th with Team cbdMD athlete Daniel Cormier CHARLOTTE, N.C. , Oct. 25, 2019 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), a nationally ...
Despite the broader positive implications of cannabis legalization, individual players have not performed well this year. That goes five-fold for one of my favorite speculative picks, Hexo (NYSE:HEXO). Like other names in the industry, HEXO failed to impress stakeholders with substantive financial results. However, this October has been particularly brutal to the Hexo stock price.Source: Shutterstock Earlier this month, management made a gut-wrenching disclosure: due to slower-than-expected store rollouts in its native Canada, the company reduced net revenue expectations by roughly 40%. Adding insult to injury, the cannabis firm also withdrew its fiscal year 2020 outlook. Previously, management suggested they were on pace to hit 400 million CAD in revenue.Because of the dreadfully disappointing news, the Hexo stock price had nowhere to go but down. The fallout even dragged down major names like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). And just recently, HEXO announced that they will postpone their fourth-quarter earnings report to Oct. 28.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEven though I'm bullish on the cannabis sector and a shareholder of Hexo stock, I must admit the obvious: what has transpired is a dark comedy of errors.That said, I'm not panicking. Instead, I'm eyeing longer-term trends that could eventually revive the deeply distressed Hexo stock price. Here are five reasons I'm optimistic (and I'll let you decide if I'm delusional). Bad News for Hexo Stock Is Baked InI know this is an incredibly overused term. Believe it or not, I try to avoid it if possible. However, with HEXO, I think the phrase is more than justified: the bad news is baked in.Let's address the obvious: what really took down the Hexo stock price earlier this month was management's decision to concede failure. They lost this game; thus, it doesn't make sense for the company to lose the same game twice.And since this shock, bearish traders haven't really pushed shares to new, agonizing depths. In fact, HEXO has so far stabilized above $2.50.Moreover, the disappointment and embarrassment could represent a silver lining. Nothing corrects improper behavior faster than pain. After suffering the consequences of aggressive expansionary strategies, management will likely adopt a more fiscally responsible approach. Over the long haul, that's net positive for Hexo stock. Product Diversity Bolsters HEXOAside from poor financial performance, another reason why cannabis stocks floundered was the vaping crisis. Currently, the Centers for Disease Control and Prevention acknowledge 33 deaths across 24 states from alleged vaping-related illnesses. * 10 Stocks to Sell Before December's Meltdown While health officials are still searching for a culprit, they have targeted vaping with illegal substances, such as THC, the psychoactive compound associated with the marijuana plant. And because the public uses the terms cannabis and marijuana interchangeably, companies specializing in cannabis-based vape products suffered from association.I could go all day about the difference between legal hemp-derived cannabis products and THC, but I'll save that discussion for another time. For now, an important point to consider is product diversity. Cannabis platforms extend beyond vaping and smoking and into areas such as edibles and ointments.A platform that's especially popular is cannabidiol (CBD)-infused beverages. Here, HEXO has a partnership with Molson Coors Brewing (NYSE:TAP) to deliver such beverages. And they're doing exactly that, with CBD-infused spring water set to launch in Canada next month.As I've argued before, beverages and other consumable products are non-offensive platforms. Thus, those who are curious about CBD can do so without the stigma associated with other platforms (i.e., smoking a joint). Growing Endorsements from Professional AthletesIn the digital and social media age, nothing is more effective than an endorsement from a celebrity. Admittedly, HEXO isn't as big on celebrity endorsements - unless you count the Tragically Hip. However, the company ride on the coattails of other companies that are.A prime example is cbdMD (NYSEAMERICAN:YCBD). If you take a look at their website, you'll notice high-profile, successful athletes have jumped aboard the cbdMD train. In my opinion, one of the most notable endorsement deals involves golfer Bubba Watson.A two-time Masters champion, Watson is a crowd favorite. Notably, he inked a multi-year sponsorship deal with cbdMD. What's particularly remarkable about this news is that golf is a sport that caters to older, affluent individuals.By logical deduction, I don't think it's a stretch to assume that the average golf fan leans politically conservative. And in this environment, Watson -- again, a crowd favorite -- will showcase legal cannabis to the world.Granted, the benefit is mostly toward cbdMD. However, curious minds will surely gravitate toward the cannabis industry as a whole. And that, I believe, is a positive for Hexo stock. Illegal Cannabis Will DeclineFor years, proponents of legal cannabis argued persuasively that legalization will disincentivize the underlying criminal trade. After all, why risk procuring weed illegally if you can get it through perfectly legal channels? * 7 Safe Stocks to Buy and Hold Through 2020 While a reasonable assertion, it just hasn't rung true. For example, Canada's illegal green market "remains robust." In the second quarter of this year, illicit spending totaled 918 million CAD. That translates into 60% of the overall market.Naturally, illegal sales will take a bite out of Hexo stock, along with the competition. However, botanical experts predict that by 2024, black market cannabis will only represent 14% of total sales. Put another way, a sizable headwind will virtually disappear. Jobs, Jobs, JobsIn the same study regarding illegal cannabis in Canada, experts noted that in five years' time, the cannabis industry will essentially create more than 75,000 jobs.Opponents of cannabis legalization -- typically for moralistic reasons -- often overlook the comprehensive benefits of the plant. Especially with the global economy strained from hot-button issues like the U.S.-China trade war, no country can afford ignoring potential avenues for job growth.Additionally, the labor market forecast isn't based merely on theory. In the U.S., the cannabis industry represents the fastest-growing job market. In my opinion, whatever political resistance exists will fade very quickly when money (and votes) are involved.Of course, job growth doesn't directly impact Hexo stock. But it will influence the scope of legalization internationally, potentially expanding the company's revenue base.As of this writing, Josh Enomoto is long HEXO. He is also considering acquiring a long position in YCBD in the next 48 hours. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy With 100% Upside Potential * 7 Reasons to Buy Microsoft Stock Now * 3 Consumer Staples Stocks to Buy for Conservative Investors The post 5 Reasons Why I Still Believe in Hexo Stock appeared first on InvestorPlace.
cbdMD, Inc. , a nationally recognized consumer cannabidiol brand, today announced the timing for the payment of its declared regular monthly dividend of $0.0667 per share of its 8.0% Series A Cumulative Convertible Preferred Stock for November 2019.
cbdMD, Inc. (NYSE American: YCBD), today announced the closing of its previously announced underwritten public offering of 500,000 shares of its 8.0% Series A Cumulative Convertible Preferred Stock at a purchase price of $10.00 per share for total gross proceeds of $5,000,000, before deducting underwriting discounts, commissions and other offering expenses payable by the company. The shares are expected to begin trading on the NYSE American LLC under the symbol “YCBD PR A” on October 21, 2019. The shares are convertible into shares of cbdMD’s common stock at the holder’s option at a conversion price of $6.00 per share, or by cbdMD at a conversion price of $6.00 per share if the trading price of its common stock equals or exceeds $8.25 per share for at least 20 trading days in any 30 consecutive trading day period ending five days prior to the date of notice of conversion.
Team cbdMD Athlete, Steve Arpin, to donate his pink fire suit worn for Breast Cancer Awareness CHARLOTTE, N.C. , Oct. 14, 2019 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), a nationally recognized ...
cbdMD expands into Save Mart in Modesto, California CHARLOTTE, N.C. , Oct. 11, 2019 /PRNewswire/ -- cbdMD, Inc. (NYSE American: YCBD), a nationally recognized consumer cannabidiol (CBD) brand, is proud ...