Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) is trying to make a comeback after coming under immense short selling pressure. A plunge of nearly 30% is the last thing that investors expected, of a newly listed company. However, bulls appear to be regaining control, fuelling suggestions that a turnaround could be in play.
Charlotte Web Holdings Price Analysis
The announcement that the company has surpassed more than 3,000 retail locations across the U.S is the latest catalyst that appears to have strengthened the stock’s sentiments in the market. With such a footprint, the company should be able to hit its sales target, the key to generating the desired shareholders value.
After plunging to the $9 a share level, the stock has since retaken the $10.50 handle, on investors reacting to the company’s expanding retail footprint. Given that the stock is still engulfed in a steep downtrend after the recent sell-off, it needs to rise and stabilize above the $11.50 handle to quash concerns of a further slide.
Above the $11.50 mark, Charlotte’s Web Holdings should be on its way back to 52-week highs of $13.89. However, considering that the stock is still engulfed in a steep downtrend, it remains susceptible to further declines. A breach of the $9 a share level, could open the door for short sellers to continue pushing the stock lower.
About Charlotte’s Web Holdings
Charlotte’s Web Holdings is a developer and distributor of hemp-based Cannabidiol wellness products. Some of the company’s products include CBD hemp oils, as well as capsules, topical and pet products. The company sales its products online as well as through distributors across the country and through brick and mortar retailers.
Why Did Charlotte’s Web Holdings Bottom Out
A recent 20% spike from all-time lows came on investors reacting to the announcement that the company’s mainstream market is growing at an impressive rate. Charlotte’s Web Holdings has now surpassed 3,000 retail locations across the country.
The development is an important milestone given that the company will now be able to target a wider target market as demand for marijuana products continues to grow. The company surpassed the 3,000 milestone in the third quarter paving the way for it to finish the year on a high.
“Firstly, I would like to commend our incredible and committed staff who worked tirelessly to achieve this milestone. I would also like to thank our dedicated retail partners for their continued support of our mission and for valuing the trust that is closely associated with our brand name,” said Hess Moallem.
Product Pipeline Expansion
Charlotte’s Web Holdings has since expanded its pipeline of products as it looks to take advantage of the ever-growing demand for hemp-based products. CBD gaining traction in mainstream markets is another development that continues to affirm sales opportunities worth pursuing.
The company has also diversified its sales and marketing strategy to focus on a wider variety of retailers from small specialty health food stores to regional pharmacies. It has also set sights on grocery chains. The addition of more than 40 Bartell drug stores in the North West all but underlines the company’s aggressive marketing strategy.
According to the Chief Executive Officer, this is just but the beginning of a continued expansion drive that seeks to take the company’s operations to all corners of the country as well as worldwide.
“We are deeply committed to the millions of people who benefit from Charlotte’s Web, and we will continue breaking new ground to ensure our products are made available in as many retail locations as possible,” said Mr. Moallem.
There is no doubt that Charlotte’s Web Holdings is still in early life as a public cannabis company. However, the company has shown it has what it takes to be a successful cannabis play. Making its products available in over 3,000 retail locations is a milestone that underscores how committed it is to pursuing revenue opportunities.
The filling of financial results is a development that will go a long way in affirming the company’s credentials when it comes to sales as well as the ability to develop shareholder value. Revenue growth is another catalyst that will go a long way in strengthening the stock’s sentiments in the market after the recent slump.
After the recent slump in share price, it may be wise to wait for the stock to stabilize above the $11 a share level to consider it a long-term play.
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Disclosure: We have no position in CWBHF and have not been compensated for this article.