The present bull market is littered with group momentum dynamics. We have seen big momo action power the electric vehicle plays, the cloud stocks, the edge computing players, the space exploration stocks, gold stocks, and other groups. All of these groups have one thing in common: huge growth potential.
But there’s one niche group in the market that hasn’t really been sucked up into that momentum spotlight by market participants this year, despite having potentially the most dramatic growth outlook of any group in the market: the cannabinoid stocks.
Estimates for the CBD stocks alone are regularly cited as looking for triple-digit CAGR’s over the next half decade. By comparison, the high and mighty EV space is only forecast to heat up to about 20-25% CAGR over the next few years. That doesn’t hold a candle to the growth outlook expected to form the context for CBD-based product brands over the same period.
With that in mind, we take a look at a handful of highly active names in the space, including: cbdMD Inc (NYSEAMERICAN:YCBD), Medical Marijuana Inc (OTCMKTS:MJNA), Tauriga Sciences Inc (OTCMKTS:TAUG), and Neptune Wellness Solutions Inc (NASDAQ:NEPT).
cbdMD Inc (NYSEAMERICAN:YCBD) recently announced reported record net sales of $10.6 million in its third fiscal 2020 quarter ended June 30, 2020.
“cbdMD reported its single biggest quarterly net sales in its history. Our decisions to concentrate on building brand equity for award winning cbdMD and Paw CBD brands, as well as and focus on our e-commerce strength, has paid off. We have separated ourselves from our competitors and demonstrated that we can grow market share and be fiscally responsible at the same time, with our GAAP and non-GAAP operating results improving by 80% and 96%, respectively, from the comparable periods in fiscal 2019. With $15 million in cash on hand at June 30, 2020, we believe we have more than enough financial strength to grow our operations for the foreseeable future, absent any additional unforeseen impact from COVID-19,” said Martin Sumichrast, the Company’s Chairman and co-Chief Executive Officer.
cbdMD Inc (NYSEAMERICAN:YCBD) promulgates itself as a company that produces and distributes various cannibidiol (CBD) products.
It owns and operates the consumer hemp-based CBD brand, cbdMD. The company’s product categories include CBD tinctures, capsules, gummies, bath bombs, topical creams, and animal treats and oils. It also offers pet related CBD products under the Paw CBD brand name.
The stock has suffered a bit of late, with shares of YCBD taking a hit in recent action, down about -16% over the past week. Shares of the stock have powered higher over the past month, rallying roughly 7% in that time on strong overall action.
cbdMD Inc (NYSEAMERICAN:YCBD) pulled in sales of $10.6M in its last reported quarterly financials, representing top line growth of 32.2%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($15.1M against $4.4M).
Medical Marijuana Inc (OTCMKTS:MJNA) recently announced that it has welcomed NHL and network marketing veteran Mike Hartman to its subsidiary Kannaway®’s Sports Team. Hartman will help spread awareness on the benefits of cannabidiol (CBD) for athletes and those who are just looking to lead a healthy, active lifestyle.
“Mike Hartman has demonstrated the ability to generate successful results within multiple business and career paths, leveraging both athletic ability and business acumen,” said Kannaway® CEO Blake Schroeder. “It’s extremely impressive and I have no doubt he will reach even greater heights in Kannaway.”
Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries.
The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry.
Even in light of this news, MJNA has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.
Medical Marijuana Inc (OTCMKTS:MJNA) pulled in sales of $13.4M in its last reported quarterly financials, representing top line growth of -34%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($5M against $11.1M, respectively).
Tauriga Sciences Inc (OTCMKTS:TAUG) is a revenue generating, diversified life sciences company, with a proprietary line of functional “supplement” chewing gums (flavors include Pomegranate, Blood Orange, Peach-Lemon, Pear Bellini, Mint, and Black Currant) as well as two ongoing Biotechnology initiatives. The key focus here is cannabinoid-based chewing gum, and the company is already generating significant sales.
TAUG hit the ground running earlier this week with three major releases, each of which carry definite implications for the company’s ability to generate returns in the future for its shareholders.
Tauriga Sciences Inc (OTCMKTS:TAUG) just announced that it has become a certified Supplier at a number of major supermarket chains, including Food Lion, Stop & Shop, Giant, Hannaford, Martin’s, and Peapod.
According to its release, the company is operating through the SupplierOne Platform, which is used by more than 1,200 Buyers and 330 Buying Companies. The company’s entire Tauri-Gum™ product line, inclusive of the requisite documentation (supplemental information), is now accessible to Buyers for these top supermarket chains, which represent major national players, including the largest U.S. based online grocer.
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 16% in that timeframe.
Tauriga Sciences Inc (OTCMKTS:TAUG) is really just starting to seriously ramp up commercial-stage operations. The company has revenues, but we would expect much larger numbers just around the corner given recent steps to expand market share, end-market footprint, and visibility.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) recently announced that it has been authorized by Health Canada to sell cannabis products to provinces and territories.
According to its release, this sales license includes edibles, vapes, extracts, and topicals, including beverage products to name a few. This authorization adds to previously held processing license and will expand Neptune’s cannabis operations to include proprietary branded products. Additionally, the authorization enhances the capabilities of the Company’s white label offerings, providing incremental value and service offerings to its B2B customers.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) frames itself as a company that operates as a health and wellness products company. The company operates through two segments, Nutraceutical and Cannabis.
The Nutraceutical segment offers turnkey solutions, such as raw material sourcing, formulation, quality control, and quality assurance for omega-3 and hemp-derived ingredients under different delivery forms, including softgels, capsules, and liquids.
The Cannabis segment provides extraction and purification services from cannabis and hemp biomass. The company also offers formulation and manufacturing solutions for value added product forms, such as tinctures, sprays, topicals, vapor products, edibles, and beverages. It offers its products under the Forest Remedies and Ocean Remedies brand.
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 2% in that timeframe. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -5%.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) generated sales of $9.5M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 3.9% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($16.6M against $17.2M, respectively).
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