Bulls are slowly winning the fight against the bears as PotNetwork Holdings Inc (OTCMKTS:POTN) continues to bottom out from this year lows. A bear run that began early in the year has started showing signs of exhaustion as investors react to the continued improvement of underlying fundamentals in recent weeks.
PotNetwork Price Analysis
Shares of PotNetwork Holdings came down tumbling after skyrocketing to record highs of $0.96 a share early in the year. The tumble came at the backdrop of soaring short selling pressure in the overall industry. However, with industry as well as the company’s fundamentals improving in recent months, the stock could as well climb high, heading into year-end.
After a spike from the $0.18 mark to the $0.28 handle, the stock faces immediate resistance at the $0.37 mark on the continuation of the uptrend. A breach of the critical resistance level should mark an end to a bear run that began early in the year.
A rally followed by a close above the $0.37 mark should open the door for bulls to push the stock to the $0.54 mark, seen as the next resistance level. On the downside, the stock faces immediate support at the $0.18 mark. A breach of the support level could provide short sellers a reason to push the stock lower to the $0.09 mark.
Factoring in recent price action activity as well as recent developments, it is becoming increasingly clear that PotNetwork Holdings is on the cusp of bottoming out from the current lows.
About PotNetwork Holdings
PotNetwork Holdings is a publicly traded company that engages in the sale of hemp-derived CBD oil products through its subsidiaries. The company operates as a holding company for its subsidiaries such as First Capital that owns Diamond CBD a maker of Diamond CBD oils.
PotNetwork Holdings Robust revenue Growth
Renewed investor interest in PotNetwork Holdings, after the underperformance of the first of the year, stems from improved operational efficiency depicted by robust revenue growth. Reports that the company generated revenues of $12 million for the first six months of the year is a big development. This is in part because it underscores a 137% year-over-year increase.
“Diamond CBD’s consistent trend of breaking sales records is the result of its continued expansion of innovative product lines, and results-oriented market diversification and sales strategies that continue to broaden its distribution footprint and consumer brand preference for its products,” PotNetwork Holdings in a statement.
Robust revenue growth should persist heading into year-end as the company embarks on an aggressive marketing campaign. For instance, the company’s subsidiary Diamond CBD is fresh from recording over 400 new orders in a three days show event in Las Vegas.
The subsidiary has also expanded its footprint to 50 states in the U.S in pursuit of new revenue opportunities. The unit is slowly growing into an industry leader complimented by a line of proprietary premium products ranging from Cannabinoids to natural hemp derivatives as well as hemp extracts
In the first half of the year, PotNetwork Holdings announced the establishment of a marketing wall for building and protecting market share. The company has since engaged the services of two law firms, tasked with the responsibility of handling intellectual property and regulatory guidance.
PotNetwork Holdings intends to explore and initiate registration trademarks and patents as it continues to evaluate the feasibility of FDA approval for some of its products. Patent registrations, as well as trademarks, should go a long way in making it easy for the company to solidify its existing market position for current and future products.
Form 10 Filling
Separately, PotNetwork Holdings has filed Form 10 with the U.S Securities and Exchange Commission as it looks to register its stock under the SEC Act of 1934. Listing under the Form 10 will make the company subject to periodic reporting requirements. The filling also paves the way for the company to pursue a listing on the OTC markets.
What Next For PotNetwork Holdings
PotNetwork Holdings is one of the companies that has felt the full brunt of short sellers in the cannabis sector. While the stock has lost more than 50% in market value since the start of the year, the same is not as a result of deteriorating operational efficiency.
Robust revenue growth underlines the fact that the company is firing on all cylinders when it comes to operational efficiency. That said the stock looks set to bottom out, heading into year-end, as investors take note of the solid underlying 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.