Shares of PotNetwork Holdings Inc (OTCMKTS:POTN) came down tumbling after rising to all-time highs early last year. The stock broke even in 2018 having lost all the gains accrued in the first half of the year. The sell-off came on investors’ confidence in the company taking a hit amidst concerns about long-term prospects.
PotNetwork Holdings Price Analysis
Fast forward things are starting to look up for the cannabis play as the stock is slowly showing signs of bottoming out from one-year lows. Renewed investors interest in the stock comes on the U.S Senate passing the Farm’s Bill, which has brought about a new lease of opportunities in the burgeoning sector.
In addition, PotNetwork Holdings has sought to diversify its operations in pursuit of new revenue streams. The company has already expanded its footprint into the multi-billion CBD-infused coffee and Tea K-Kup sector. The cannabis company has also embarked on an aggressive marketing campaign as it looks to strengthen sales on the cannabis front.
High turnover in traded shares in the market has continued to support a recent upswing from lower lows. After bouncing from the $0.08 handle, the stock faces immediate resistance at the $0.16 mark as part of the emerging uptrend.
A rally followed by a close above the $0.16 mark could open the door for the stock to make a run for the $0.24 mark, the next substantial resistance level. Below the $0.24 mark, the stock remains vulnerable to further declines taking into consideration the underlying long-term bear trend.
What Does PotNetwork Holdings Do?
PotNetwork Holdings act as a holding company for its principal subsidiaries First Capital Venture Co that owns Diamond CBD. The subsidiary researches, develops, and sells a broad range of cannabinoids and natural hemp derivatives.
$867 Billion Farm Bill Factor
The management team touting the opportunities up for grabs with the passing of the $867 billion Farm Bill is the latest catalysts strengthening PotNetwork Holdings sentiments in the market. The bill proposes the removal of CBD from the Controlled Substance Act consequently placing it under the Department of Agriculture for Supervision.
The passing of the bill marks the first step on the redefining of THC as a legal plant. For that reason, it should open the door for new opportunities when it comes to better research as well as the production of high-quality formulations. According to PotNetwork Holdings CEO, Kevin Hagen, Farm Bill is revolutionary and should have a positive impact on the broader industry.
“Over the past year Management has effectively positioned the Company to capitalize on that window of opportunity, with a consumer base ripe for growth through expanded interstate commerce and increased sourcing opportunities,” said Mr. Hagen.
PotNetwork’s subsidiary Diamond CBD has already positioned itself as it seeks to take advantage of the landmark legislation. Having established itself as a market leader the company has an unveiled, a new strategy as it looks to ramp up sales. For starters, the company is eyeing strategic partnerships to propel its established brands.
The company has also unveiled a new referral program as part of its new marketing strategy. Under the new program, account holders will receive a $25 coupon for referring a friend into the company’s website. The CEO expects the program to help the company stay connected and build relationships with new customers all in pursuit of sales.
New Product Line
In addition, PotNetwork Holdings has sought to strengthen its revenue streams by unveiling a new product line in the cannabis sector. The company has consequently launched a new CBD-infused Coffee Line as it eyes sales opportunity in the multi-billion coffee industry.
Premium Chill Coffee Capsules are the latest products added to the company’s broad range of cannabinoid and hemp products. Each Chill Coffee comes infused with 25mg of CBD oil and weighs about 1.2Oz. PotNetwork Holding is targeting offices and businesses with the new coffee line as a way of ensuring people are able to start a day with a new sense of chill.
“The cannabis industry is growing at an explosive rate. Wanting to give customers an experience that they could enjoy, our aim is to be hemp industry pioneers bringing innovative hemp-derived products to the whole world,” said Mr. Hagen.
After a wild run in 2018, PotNetwork is ready to turn the page both on operational efficiency and in the market. The strengthening of the company’s product line, as well as the passing of the Farm Bill, are some of the development that affirms the company’s growth metrics.
Renewed investor interest underlines the fact that most of them remain confident about the company’s long-term prospects. That said the stock looks like a bargain at current levels especially on improving fundamentals.
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Disclosure: We have no position in POTN and have not been compensated for this article.