A 78% increase in revenues, sums up PotNetwork Holdings Inc (OTCMKTS: POTN) stellar performance in 2018 that affirms underlying growth. During the year, the company cemented its position as an industry leader when it comes to premium hemp extracts.
POTN Catalysts And Share Price Analysis
The stellar performance is likely to continue in 2019 as the company has already registered over 1 million page views as people continue to flock its news site. The company’s cannabis subsidiary Diamond CBD is spearheading the growth, having become a household name in the cannabis sector.The subsidiary is fresh from booking a $300,000-purchase order at the influential AS Market Week in New York. In addition, it has expanded its footprint into the $72 billion pet industry in pursuit of opportunities for growth.Investors taking note of a wave of positive developments that point to a bright future have started pushing the stock up the charts after a harrowing crash in 2018. Last year, PotNetwork shed more than 80% in market share as it came under immense short selling pressure.Fast forward, 2019 has started on a roll, as PotNetwork continues to bottom out from all-time lows. A 50% Spike from one-year lows could as well signal the stock’s bounce back credentials, at the back of strengthening investor’s confidence in the stock.A recent spike has exposed PotNetwork to the $0.18 mark, which is the immediate resistance level. A violation of the $0.18 mark should reaffirm the emerging uptrend, setting the stage for the stock to make a run for the $0.28 mark, the next substantial resistance level.POTN Daily ChartConversely, the stock faces support at the $0.13 mark, a breach of which could result in the acceleration of the sell-off wave, in continuation of the long-term bear trend.As it stands, PotNetwork remains well positioned to bottom out supported by improving underlying fundamentals.
About PotNetwork
PotNetwork through its subsidiaries is engaged in the research, development, and sale of hemp-derived products. The company sells its products through distributors, resellers as well as auto dealerships.
Revenue Growth
Shares of PotNetwork have started showing signs of bottoming out from all-time lows as investors react to a string of positive developments that point to a bright future in terms of value generation. The company delivering a stellar performance in 2018 and reiterating growth for 2019 is one of the developments that has investors excited.In 2018, the company made $25 million in revenues representing a 78% year over year increase. The management attributes the increase to the company’s wholly owned subsidiary Diamond CBD that deals in cannabis products.During the year, the company leveraged a robust marketing campaign that allowed it to educate and reach out to a broader target market thus strengthening its sales channels. The wholesale distribution network currently accounts for 60% of the total sales as online sales stand at 40%.
“These fully audited financial statements underline an incredible year for PotNetwork Holdings and are the culmination of a lot of hard work and are a sign of great things to come over the course of the next year,” stated CEO Kevin Hagen.
News Site Growth
In keeping up with the 2018 momentum, PotNetwork has confirmed the signing of 35,000 subscribers for its May issue. The company also continues to fill advertising space for the second issue as it continues to affirm its credentials as an industry leader for marijuana news and information.
Pet Industry Opportunity
PotNetwork has also embraced the Multibillion-dollar Cannabis B2B Community with the launch of a streamlined website as it seeks to become the go-to site for all information cannabis. The company’s site will now include business listings as well as marijuana stock market quotes.The company has also set sights on the $72 billion pet industry with its hemp-derived products MediPets.
“We recognize that our consumers love their pets as much as any member of their family. That's why our Meditates team is dedicated to creating a range of CBD-infused products in different flavors and categories that will help keep pets healthy and happy," said Kevin Hagen,” explained Mr. Hagen’s.
Bottom Line
After a rollercoaster 2018, PotNetwork has finally found its footing as it continues to fire on all angles when it comes to operational efficiency. Revenue growth, signing of purchase orders and expansion of the company’s cannabis news site, underscore a company in a phase of robust growth.The share price is yet to reflect the company’s tremendous potential. While PotNetwork has started bottoming out, a potential breakout could be in the offing heading into the second half of the year.We will be updating our subscribers as soon as we know more. For the latest updates on POTN, sign up below!Disclosure: We have no position in POTN and have not been compensated for this article.
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