x min read

What Next for Canbiola Inc (OTCMKTS:CANB) After 300% Spike?

What Next for Canbiola Inc (OTCMKTS:CANB) After 300% Spike?
Written by
Jim Bloom
Published on
August 29, 2018
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook
InsidrFinancial

Canbiola Inc (OTCMKTS:CANB) might as well have run ahead of fundamentals on rallying by more than 300% after remaining under pressure for the better part of the first half of the year. The explosive rise has seen the stock establish itself as a volume leader in the market. The big question remains, Does the stock have what it takes to continue climbing high?Canbiola Price ActionThere is still a wave of concern as to whether the stock has what it takes to sustain the recent explosive rally. The surge has come at the back of no solid news. While the larger cannabis industry has continued to climb higher after a rollercoaster first half, it still does not justify the stock’s meteoric rise in recent trading sessions. CANB Daily ChartCanbiola is currently trading at the $0.08 level, its two-year highs. Even though the stock is still flirting with two-year highs, it has lost a substantial amount of value on spiking to highs of $0.14. It remains to be seen if the 40% pullback is a minor correction, from which the stock will continue to power high.In the short term, Canbiola faces immediate support at the $0.07 mark, below which, its pullback from this year’s highs could accelerate to the $0.04 mark; the next support level.What Does Canbiola Do?Canbiola is a cannabis-focused company specializing in the sale of CBD based products such as oils, creams, and moisturizers. The company is currently developing a line of proprietary products in addition to seeking synthetic growth through acquisitions in the industry.Why did Canbiola Explode?The catalyst behind the recent price surge is a presser whereby the Chief Executive Officer Marco Alfonsi, reiterated that they had made important strides in penetrating new markets. According to the chief executive officer, they remain focused on engaging strategic medical partners as part of the latest push to grow exposure exponentially.In addition, Canbiola doubled its revenues in the second quarter at the back of an aggressive marketing campaign backed by a robust product line. Revenues in the second quarter surged to $148,248 from $2,135 reported the previous year.Buoyed by the second quarter sales numbers, the company has embarked on a nationwide rollout campaign as it looks to target a broader target market. The company expects exponential sales growth to doctors and medical facilities going forward.Over the next 12 months, Canbiola is to focus on expanding the size of third manufacturing facilities, manufacturing its products. The company intends to expand the size, in a bid to keep up with growing demand for its cannabis products according to the Chief executive officer.

“The results speak for themselves. The product is being accepted. The doctors are now starting to refer more physicians to us. So, when you have physicians referring other physicians, we’re obviously on the right path,” said Mr. Alfonsi.

According to the Chief executive Officer, Canbiola is looking forward to being one of the beneficiaries of the exciting times in the industry. For starters, physicians are becoming increasingly aware of alternatives to drugs, especially cannabis drugs, found to be viable alternatives for addressing various medical conditions while reducing the risk of addiction.The company also remains focused on penetrating the medical community market in pursuit of growth. By targeting physicians and medical practitioners directly, Canbiola should be able to reach a good number of patients, in need of various cannabis products for addressing such things as chronic pain.

“Our nationwide Roll-Out has begun and continues to grow dramatically due to our strong affiliation with very clear-cut distribution channels. We see exponential growth to Doctors and Medical Practices nationwide selling Canbiola products. We have developed a new section on our site to help our potential clients locate doctors and practices in their locality,” Canbiola in a statement.

What Next For CanbiolaAn explosive rise from pennies to highs of $0.14 a share is one that does not paint a clear picture of Canbiola’s performance over the past one year. The meteoric rise in under one month is one that should be approached’ with caution even though the stock is a long-term play.With the stock still trading at record highs despite a 40% pullback, it may be wise to wait and see whether the pullback will hold and act as support for further movement on the upside. The stock remains susceptible to further declines even as the overall cannabis industry continues to bounce back.We will be updating our subscribers as soon as we know more. For the latest updates on CANB, sign up below!Disclosure: We have no position in CANB and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.