Shares of PotNetwork Holdings Inc (OTCMKTS:POTN) are attempting to break higher after imploding in 2018. The stock shed more than 70% in market value in 2018. However, a solid start to the New Year has seen the stock rally by more than 40% as the upward momentum continues to gather pace.Catalysts and Share Price AnalysisInvestor confidence in the stock has spiked in recent weeks in response to a string of positive development. For starters, the company is fresh from reporting product orders of more than $200,000 through its subsidiary.In addition, the company’s wholly owned subsidiary Diamond CBD has unveiled a new set of brain Chill Slushy machines in the Florida area. Diamond CBD has also strengthened its product line with a new line of CBD oils, edibles and creams that are now available in a number of large pharmacy chains.Recent developments have helped shore the stock sentiments in the market, depicted by the stock bottoming out from all-time lows. The stock is currently trading in an uptrend, as pullbacks act as buy opportunities from where the stock has continued to power high.PotNetwork Holdings faces immediate resistance at the $0.18 level on further movements on the upside. A rally followed by a close above the critical resistance level should affirm the emerging uptrend, setting the stage for the stock to continue powering higher. POTN Daily ChartAbove the $0.18 mark, the stock should make a run for the $0.27 mark, seen as the next substantial resistance level. A breach of the $0.14 level on sell-offs, on the other hand, could give short sellers a reason to continue pushing the stock lower, in continuation of the long-term downtrend.What Does PotNetWork Holdings do?PotNetwork through its subsidiaries engages in the research, development, and sale of hemp-derived and CBD oil products. The company sells its products through distributors and sellers as well as through its website.Why is PotNetwork Holdings Bottoming Out?PotNetwork Holdings has started bottoming out on investors reacting to improving underlying fundamentals. For starters, the company’s subsidiary Diamond CBD has made impressive strides as it continues to pursue revenue opportunities in the cannabis sector.The subsidiary successfully booked over $200,000 worth of CBD product sales for the wellness market in influential tobacco Plus Expo held in February. The expo drew over 500 exhibitors with over 3,000 industry leader and buyers in attendance. PotNetwork also added new wholesale customers to its client list expected to strengthen revenue streams going forward.
“As we all know, success in business in no small part is not just about having great products but also about being able to effectively showcase your products, and rapidly build their distribution to the right audiences. These CBD Sales Centers are a great tool to do just that, and bring our products to the consumer," said Kevin Hagen, CEO of Diamond CBD parent company PotNetwork Holdings, Inc.
In addition, Diamond CBD milestone, PotNetwork has expanded its in-depth coverage of the cannabis sector by unveiling its first issue in-depth print magazine. The magazine will offer a 360-degree view of the cannabis industry focusing on small retail cannabis businesses to publicly traded companies.
"In this hi-tech information age, the difference between success and failure is often having the kind of in-depth knowledge that our online team takes pride in delivering to its readers. With PotNetwork Magazine, investors and entrepreneurs will not just have a chance to become experts in cultivation & retail, but also be able to stay on top of the latest trends,” said Mr. Hagen.
In addition, PotNetwork subsidiary Diamond CBD has inked deals that will see its CBD oils, edibles, and creams made available in several large pharmacy chains. With the deals, the company remains well positioned to target a broader target market and in the process strengthen its revenue streams.Bottom LinePotNetwork did underperform in 2018 a move that resulted in it imploding to all-time lows when it comes to share price and market value. Fast forward fundamentals have improved, and the stock has continued to show signs of bottoming out from all-time lows.Investors’ confidence has inched higher in response to the company inking deals, for cannabis product supplies. The stock sentiments in the market have also inched higher on the company inking deals with large pharmacy chains.After the recent spike, the stock looks set to continue powering higher in line with the bullish momentum in the market as well as the improving fundamentals.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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