As of 12:15 p.m. EST, Charlotte's Web was down 6.8%. Analysts are uncertain what's causing the sell-off, citing everything from a recent rise in government bond rates to a "risk cluster" surrounding investors who've sunk their money into high-flying tech stocks. What does any of that have to do with Charlotte's Web Holdings, you ask?
What happened to Charlotte's web stock price?
Charlotte's Web's stock was trading at $4.49 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization (WHO). Since then, CWBHF shares have decreased by 77.3% and is now trading at $1.02. View which stocks have been most impacted by COVID-19. Are investors shorting Charlotte's Web?
Is Charlotte's web efficiently growing its dividend?
Charlotte's Web does not have a long track record of dividend growth. In the past three months, Charlotte's Web insiders have not sold or bought any company stock. Is Charlotte's Web a buy right now?
How does Charlotte's web's short interest stack up in November?
Charlotte's Web saw a increase in short interest during the month of November. As of November 30th, there was short interest totaling 3,429,500 shares, an increase of 23.2% from the November 15th total of 2,784,300 shares. Based on an average daily volume of 993,100 shares, the days-to-cover ratio is currently 3.5 days.
Is Charlotte's Web Holdings (CWEB) in a good position to buy?
The company was founded by Joel Stanley and Jared Stanley in 2013 and is headquartered in Boulder, CO. Is Charlotte's Web Holdings (TSE:CWEB) In A Good Position To Invest In Growth? Charlotte's Web has received a consensus rating of Hold. The company's average rating score is 2.33, and is based on 1 buy rating, 2 hold ratings, and no sell ratings.
How high will Charlotte's Web stock go?
On average, they anticipate Charlotte's Web's stock price to reach $1.29 in the next twelve months. This suggests a possible upside of 185.0% from the stock's current price.
Is Charlotte's Web out of business?
("Charlotte's Web," "CW" or the "Company"), the market leader and manufacturer of The World's Most Trusted Hemp Extract™, has completed a reorganization to drive agility and growth as the Company prepares to launch new products, channels and markets, with intent to return to positive cash flow in 2022.
Is CBD stock a good investment?
CBD is a newer product to the market than marijuana itself and many people don't know about it just yet, however, it has proven to have steady growth and looks as though it will only grow more in the future, making it a worthy investment, despite it still being a new market.
Will Charlottes Web be acquired?
Abacus Health Products Acquisition The acquisition closed the topical gap in Charlotte's Web's portfolio. The timing of the acquisition, during the COVID-19 pandemic, did present challenges.
What company owns Charlotte's Web?
the Stanley BrothersCharlotte's Web, founded by the Stanley Brothers, is an industry-leading pioneer creating whole-plant hemp health supplements.
Where was Charlotte's Web banned?
KansasIn 2006, Kansas banned Charlotte's Web because “talking animals are blasphemous and unnatural” and passages about the spider dying were also criticized as being “inappropriate subject matter for a children's book.”
What is the biggest CBD company?
Folium BiosciencesTop CBD Products SuppliersCompanyAnnual Est. Revenue1.Folium Biosciences$200 Million2.Aurora Cannabis, Inc.$199.44 Million3.Charlotte's Web$58.32 Million4.Gaia Herbs$56.88 Million6 more rows
Should I invest in hemp?
Investing in hemp is a much safer option for cannabis investors, who may be concerned about the lack of nationwide legality of marijuana in the U.S. and the impact it could have on the industry's growth. Although over the long term, the marijuana market may explode in size, that's still a long way from happening.
Is the CBD market profitable?
CBD stores can be highly profitable, with data showing that companies are seeing net profit margins of above 40%. The industry is expected to reach $20 billion by 2024.
Which two major brands became a part of Charlotte's Web once the company acquired Abacus?
Charlotte's Web Acquires Abacus Health ProductsBOULDER, Colo., June 11, 2020 /PRNewswire/ - Charlotte's Web Holdings, Inc. ... Joining the Charlotte's Web family of brands are Abacus' consumer brands CBD MEDIC™ and Harmony Hemp, and for professional practitioners, Abacus' CBD CLINIC™ brand.More items...•
Who owns CBD medic?
Rob GronkowskiFollowing his retirement from professional football in March 2019, Rob Gronkowski announced his partnership with Abacus Health Products, the company behind CBDMEDIC topical pain relief products. In doing so, Gronkowski became an outspoken advocate for CBD in an effort to help athletes and people suffering with pain.
Who owns Abacus pills?
Charlotte's Web to Acquire Abacus Health Products for Combined 35% Marketshare of CBD in Food/Drug/Mass Retail Channel. Charlotte's Web Holdings, Inc.
Who is the Motley Fool?
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
Does Charlotte's Web have a contract with Lifetime?
Charlotte's Web said that it has signed a multiyear exclusive contract with privately held fitness company Life Time to put its products on the latter company's shelves . The agreement covers over 140 of the Lifecares stores located within Life Time's fitness centers throughout the U.S. Charlotte's Web CBD products will also be available in its new partner's online store.
Is Charlotte's Web a good company?
Charlotte's Web didn't specify the financial details of the arrangement, which is perhaps why investors traded down the stock slightly after that earlier burst of optimism. While it's always good for a brand to expand its reach (particularly in the challenging cannabis industry), without knowing the dollar amounts of this arrangement, it's hard to judge how advantageous it'll be for the company.
What happened
Shares of Charlotte's Web Holdings (OTC: CWBHF) were falling by 9.3% as of 3:40 p.m. EDT on Tuesday. The cannabidiol (CBD) pioneer didn't report any news, though. There weren't any other major developments that appeared to impact Charlotte's Web. So, why did the stock fall?
So what
When a stock falls on no apparent news, the best thing to do is sit tight. Nothing has changed about Charlotte's Web's business nor its prospects.
Now what
It's possible that news could be announced in the near future that provides a fuller explanation for why Charlotte's Web stock dropped today. But don't count on it. High-growth stocks often have big daily swings for no apparent reason.
CBD as an Investment Thesis
Just to bring you all up to speed on the CBD investment thesis, it’s different from the larger cannabis theme in a number of ways. CBD products do not contain THC ( the good stuff that gets you high ), so it’s not regulated like cannabis is but instead falls into some sort of grey area.
Conclusion
We’ve always been wary about investing in the cannabis industry because there are far too many regulatory risks right now. While every cannabis stock out there soared to new heights as investors piled in, we warned about the excessive number of scams being perpetrated.
The CBD seller's stock seems to be tangled up with the tech sell-off
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Has the market correction finally arrived? It sure feels like it today, with the Nasdaq first falling nearly 4%, then rebounding, but now falling again, and currently off about 2.4% as of 12:15 p.m. EST.
So what
Analysts are uncertain what's causing the sell-off, citing everything from a recent rise in government bond rates to a "risk cluster" surrounding investors who've sunk their money into high-flying tech stocks.
Now what
With a negative P/E ratio, negative free cash flow, and a fair slug of debt on its books, Charlotte's Web doesn't look to me like any kind of a bargain -- a safe port in a sell-off storm that investors might flock to as the rest of the market tanks.
About Charlotte's Web
Charlotte's Web Holdings, Inc. engages in the production and distribution of hemp-based, cannabinoid wellness products. It offers human ingestible products such as tinctures, capsules, and gummies, topicals, and pet products. It also markets powdered supplements, beverage, food, beauty, sport, professional and over-the-counter wellness.
Headlines
Is Charlotte's Web Holdings (TSE:CWEB) In A Good Position To Invest In Growth?
Charlotte's Web (OTCMKTS:CWBHF) Frequently Asked Questions
2 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Charlotte's Web in the last twelve months. There are currently 2 hold ratings for the stock. The consensus among Wall Street research analysts is that investors should "hold" Charlotte's Web stock.
CBD as an Investment Thesis
Just to bring you all up to speed on the CBD investment thesis, it’s different from the larger cannabis theme in a number of ways. CBD products do not contain THC ( the good stuff that gets you high ), so it’s not regulated like cannabis is but instead falls into some sort of grey area.
Conclusion
We’ve always been wary about investing in the cannabis industry because there are far too many regulatory risks right now. While every cannabis stock out there soared to new heights as investors piled in, we warned about the excessive number of scams being perpetrated.
