CBD Stocks Poised for Long-Term Payoff? (NEPT, YCBD, CBGL, MJNA)
Perhaps the most interesting growth market looking ahead over the next 5-10 years is in the CBD space. The key to this story is the “mainstreaming” dynamic. Imagine a pie that is seven inches in diameter. You get a slice of that pie. So do five other people. That means you get about 6.5 square inches of pie. But if that pie grows to 30 inches in diameter over coming years, that same share grows over 18 times bigger. We may see a similar phenomenon in the CBD space – and the market for other legal cannabinoid-based products – as this supplement moves from being a niche market to a mainstream household solution to everyday life, and all its rigors. With that in mind, we take a look at a selection of active CBD stocks, including: Neptune Wellness Solutions Inc (NASDAQ:NEPT), cbdMD Inc (NYSEAMERICAN:YCBD), Cannabis Global Inc (OTCMKTS:CBGL), and Medical Marijuana Inc (OTCMKTS:MJNA). Neptune Wellness Solutions Inc (NASDAQ:NEPT) frames itself as a company that operates as a health and wellness products company. The company operates through two segments, Nutraceutical and Cannabis. The Nutraceutical segment offers turnkey solutions, such as raw material sourcing, formulation, quality control, and quality assurance for omega-3 and hemp-derived ingredients under different delivery forms, including softgels, capsules, and liquids. The Cannabis segment provides extraction and purification services from cannabis and hemp biomass. The company also offers formulation and manufacturing solutions for value added product forms, such as tinctures, sprays, topicals, vapor products, edibles, and beverages. Neptune Wellness Solutions Inc (NASDAQ:NEPT) just announced its proprietary Mood Ring cannabis brand for the Canadian market. The Mood Ring brand and product line will officially launch in select Canadian markets this fall to meet consumer demand for high-quality, affordable and environmentally friendly cannabis products. Mood Ring leverages Neptune's decades of experience in the wellness, extraction and consumer packaged goods (CPG) industries to bring product offerings to market that are designed to meet the specific demands of Canadian consumers. Mood Ring CBD products primarily target wellness-focused consumers looking for natural products, whereas Mood Ring THC concentrates focus on the recreational market. Even in light of this news, NEPT has had a rough past week of trading action, with shares sinking something like -13% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Neptune Wellness Solutions Inc (NASDAQ:NEPT) managed to rope in revenues totaling $21.4M in overall sales during the company's most recently reported quarterly financial data -- a figure that represents a rate of top line growth of 389.9%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($25.5M against $22.9M). cbdMD Inc (NYSEAMERICAN:YCBD) promulgates itself as a company that produces and distributes various cannibidiol (CBD) products. It owns and operates the consumer hemp-based CBD brand, cbdMD. The company's product categories include CBD tinctures, capsules, gummies, bath bombs, topical creams, and animal treats and oils. It also offers pet related CBD products under the Paw CBD brand name. The company distributes its products through an e-commerce Website, wholesalers, and various brick and mortar retailers in the United States. cbdMD Inc (NYSEAMERICAN:YCBD) just announced that the company was proud to support MMA champion Daniel "DC" Cormier, a premier member of "Team cbdMD", which is the CBD industry’s premier athletic sponsorship program, as he prepares for the fight of his career. This past Saturday, August 15, 2020, Cormier headlined a primetime MMA showdown against heavyweight champ Stipe Miocic in a highly anticipated ‘rubber match’. ‘Miocic vs. Cormier 3’ aired live at 10 PM ET (ESPN+ PPV) from the UFC APEX facility in Las Vegas. "My mind is ready, and my body is ready to do something great. This fight is the build-up of years of hard work and preparation. Thousands of hours on the mat and endless amounts of time training. This fight means everything to me, literally everything. And I am so thankful for cbdMD and put my trust in their CBD ‘Recover’ Inflammation Cream, CBD bath bombs, and CBD gummies to help me get ready for this major fight," said Cormier. The stock has suffered a bit of late, with shares of YCBD taking a hit in recent action, down about -18% over the past week. But the stock has been one of the big leaders in the space over the past four months. cbdMD Inc (NYSEAMERICAN:YCBD) managed to rope in revenues totaling $10.6M in overall sales during the company's most recently reported quarterly financial data -- a figure that represents a rate of top line growth of 32.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($15.1M against $4.4M). Cannabis Global Inc (OTCMKTS:CBGL) is a story that continues to get more interesting, particularly given the lack of a sharp price rise in the stock despite a number of strong catalysts recently coming into play. It has the feel of a speculative, low-priced snake coiled up and ready to strike. In this case, could it be the bears who taste that venom? One of the key moves made recently by the company is its venture into the alcohol substitute mixing space. According to its recent release, Hemp You Can Feel™ mixers are now available for online consumer purchase as well as bulk purchase for wholesale distribution. Cocktails based on the Hemp You Can Feel™ mixers provide an experience on par with light alcohol consumption, but without any of the harmful side effects of alcohol. Another big move is the company’s developing relationship with Amazon.com as a seller on its platform at a time where everyone knows it’s harder and harder to get access to that status. Cannabis Global Inc (OTCMKTS:CBGL), specifically, announced that it has now begun shipping its new Hemp You Can Feel™ Coffee product to Amazon. As announced in the Company's release dated May 21, Cannabis Global has designed a new Hemp You Can Feel™ Coffee product specifically for sale on the Amazon.com platform. That product has been fully developed, produced, and packaged, and the first shipment to Amazon occurred last week. "We look forward to receiving word back from Amazon in coming days as we undergo the final stage of formal evaluation for what has become a much rarer privilege during the pandemic," commented Cannabis Global CEO, Arman Tabatabaei. "We have done our part and all indications are positive. We believe this product has revolutionary potential, and the Amazon.com platform carries the potential to deliver enormous exposure and accessibility." Shares of CBGL are testing key support in recent action, and have a history of sharp runs off of support when challenged. We would also note that the company has been get more and more catalysts out in the public eye in recent weeks suggesting that something new and positive is usually on the way to fuel the next move. Cannabis Global Inc (OTCMKTS:CBGL) had no reported sales in its last quarterly financial data. But it appears to be closing in on commercial-stage operational gains for shareholders and has a strong IP edge in the industry. Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets. Note, this is certainly not our favorite name on this list, given its long and storied history of dilution and underperformance in almost every respect for now decades. But it is in the space and actively traded. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry. Medical Marijuana Inc (OTCMKTS:MJNA) recently announced that the Japanese division of its subsidiary Kannaway® had its best month ever in Company history in July 2020. “Kannaway has made tremendous progress around the world as consumers in Japan and across Asia continue to show an exciting increase in interest for cannabidiol (CBD) products,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “Our team has truly shown what can be accomplished with passion, hard work and high-quality products designed to support the body’s crucial endocannabinoid system.” If you're long this stock, then you're liking how the stock has responded to the announcement. MJNA shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -6%. Medical Marijuana Inc (OTCMKTS:MJNA) managed to rope in revenues totaling $13.4M in overall sales during the company's most recently reported quarterly financial data -- a figure that represents a rate of top line growth of -34%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($5M against $11.1M, respectively). Read the full article