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Charlotte's Web: Improving Trends Not Visible Yet

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  • Charlotte's Web reported another weak quarter with revenues of $24.2 million missing estimates.
  • The company continues to have multiple catalysts for future revenue growth including primarily FDA regulatory certainty.
  • The stock only trades at 3x '22 revenue estimates, likely to be conservative once Congress approves a CBD bill.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
While the trends in the CBD market continue to head in the right direction, Charlotte's Web Holdings (OTCQX:CWBHF) has yet to see much in the way of financial benefits. The lack of FDA regulations on CBD in dietary products continues to hold back the sector. My investment thesis remains very Bullish on the stock with plenty of positive indications Congress will finally pass a bill giving the FDA regulatory clarity needed to drive growth.

Read the full article on Seeking Alpha. 

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


Update - Oct. 7

Big news for the CBD market as CA approves the retail sale of hemp-derived products via AB 45. CWH has been just crushed this year and this news is very bullish for the stock. 

-CV Sciences, Inc. (OTCQB:CVSI +6.7%) shares trade up after the California legislature passes AB 45, which will explicitly allow the retail sale of products containing hemp-derived extracts and cannabinoids
-As a California-based company, we are very pleased with the enactment of AB 45, which we believe will lead to significant retail expansion of CV Sciences’ PlusCBD products in our home state, while also serving as a model for responsible CBD legalization for other states,” said CEO Joseph Dowling.
-Following AB 45's passage, the Company expects California retailers to expand or begin receiving product shipments from Charlotte's Web. This includes Charlotte's Web current national retail partners which combined represent more than 1,000 locations in California, that can now confidently offer Charlotte's Web products to consumers with clear regulatory guidance across the state.


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