cbdMD: The Wanted Pullback

 

  • cbdMD reported a strong March quarter with net revenues growing 26%.
  • The pure-play CBD player guided December quarter sales to grow by 35% to reach nearly $16 million.
  • The stock is cheap at below 3x FY22 sales estimates that appear very low with the potential for the ingestible market to finally move forward.
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The U.S. cannabidiol (CBD) space was a tough place to invest in the last year or so. cbdMD (YCBD) was a $6 stock back in mid-2019 and investors can now buy the stock sub-$3 despite the general bullish long-term view of the CBD space. My investment thesis is more bullish on the stock as the mass retailers look to move forward with stocking CBD-infused food products with or without FDA approval.

Read the full article on Seeking Alpha. 


Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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