PotNetwork Holdings Inc (OTCMKTS: POTN) could be on its way out of one-year lows after a roller coaster first quarter. The formation of a double bottom on price action is already signaling potential bounce back as the upward momentum continues to gather pace.
POTN Catalysts And Price Analysis
Fuelling the upside action after the underperformance of the past year is the confirmation that the Company generated record revenues for Fiscal 2018. The company projecting yet another record-breaking year also continues to shore the stock’s market sentiments.PotNetwork Holdings has also sought to strengthen its long-term prospects by expanding into the $130 billion wellness market. The company has also embraced the multibillion-dollar cannabis B2B community with the unveiling of a new streamlined website.The stock has since bounced off the $0.10 support level signaling further upside action. Standing in the way of the emerging uptrend is the $0.18 resistance level. After a rollercoaster first quarter, PotNetwork Holdings will have to rally and find support above the $0.18 mark to be considered a bull play.Below the $0.18 resistance level, the stock remains susceptible to trading in range as has been the case for the better part of the year. Conversely, of breach of the $0.10 support level, could result in the acceleration of the sell-off wave that could result in the stock plunging further, in continuation of the long-term downtrend.
What Does PotNetwork Holdings Do?
PotNetwork Holdings is a company that engages in the research, development, and sale of hemp-derived CBD oil products. Its wholly owned subsidiary Diamond CBD develops and distributes the products through distributors and resellers.
Why is PotNetwork Holdings Bottoming Out?
Shares of PotNetwork Holdings have started bottoming out on the confirmation that the company is expecting robust revenue growth in 2019. The company has moved to take advantage of the growing global CBD market.For starters, PotNetwork Holdings has expanded its CBD product line with new releases. The company has also strengthened its marketing and product development as well as manufacturing and supply chain as it seeks to strengthen its sale channels.The company is planning to build on the success of 2018, whereby it generated record revenues of $25 million representing 78% year over year increase. The growth was mostly driven by the Company’s wholly-owned subsidiary Diamond CBD Inc. that continued to cement its position as an industry leader in the growing of market for premium hemp extracts.During the year, the company also expanded its research, development and marketing campaigns as part of the growth strategy. The company has since introduced MediPets product line as part of the innovation drive further expanding its footprint into the $69.5 billion consumer sale market.
“As a result of the new line, today we are approaching multiple new points of distribution, from pet supply stores to veterinary facilities. We firmly believe that our product formulations for pet wellness are unsurpassed in the marketplace and have positioned us for continued strong growth in this new niche market,” explained CEO Kevin Hagen.
In addition to the CBD pet market expansion, PotNetwork has also expanded its footprint as it seeks to claim a piece of the $46 billion coffee market. The company has since unveiled a line of coffee and tea K-Cup capsules. Plans are also underway to sell the products in shopping malls across the U.S as part of the sales strategy.Diamond CBD has also launched a fleet of mobile sales vans as it seeks to enhance penetration in brick & mortar retail outlets as part of the sales and marketing campaign.
Bottom Line
PotNetwork has not enjoyed the best of runs even on the broader cannabis sector trending higher. While the stock has struggled for direction in recent months, markets sentiments have improved signaling a potential bounce back from all-time lows.Record revenues for 2018 as well as a 2019 outlook signaling robust revenue growth in 2019 should continue to strengthen investor confidence in the stock.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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