CV Sciences Inc (OTCMKTS: CVSI) has lost its spark after a massive surge in the first quarter. The stock is back to where it started the year at, on the upswing losing its momentum. Price action activity has so far remained subdued in a tight $6.30 to $4.20 trading range.
CV Sciences Price Analysis
While the subdued market activity is a point of concern, CV Sciences has continued to fire on all angles when it comes to operational efficiency. Double-digit revenue growth supplemented by gross margin expansion are some of the developments that affirm a company doing well when it comes to execution of its growth strategy.
The Company has also expanded its distribution network into Food, Drug, and Mass channels as the race for accelerated sales growth continues to heat up. Amidst the developments, the stock has continued to edge lower as investors trust continue to edge lower.
The recent plunge has exposed the stock to a critical support at the $4.20 level. Above the critical support level, CV Sciences remains supported for further upside action as has been the case in the recent past. Conversely, a breach of the support level could result in the stock plunging further as part of the emerging downtrend.
A rally followed by a close above the $6.30 level, on the other hand, could open the door for the stock to power higher in continuation of the long-term downtrend. As it stands, CV Sciences is likely to bounce off the critical support level, as recent developments continue to strengthen investor sentiments in the stock.
What Does CV Sciences Do?
CV Sciences operates through two segments of consumer products and specialty pharmaceuticals. The Consumer segment markets and sells consumer products containing hemp-based cannabidiol oil. The Specialty segment, on the other hand, is involved in the development of cannabinoids for the treatment of a range of medical indications.
Buy Rating Boost
Amidst the underperformance in the stock market, CV Sciences continues to elicit interest from equity research firms. Analysts from Roth Capital have initiated coverage of the stock with a ‘buy’ rating. The brokerage firm has a $9 share price target on the stock.
The bullish rating does not come as a surprise as a flurry of positive developments continues to underscore the Company’s long-term prospects. For starters, the Company is fresh from reporting an 85% increase in first-quarter sales that came in at $14.9 million.
The increase underscored the Company’s continued organic expansion into new sales channels. CV Sciences has made its products available in Food Drug and mass channels as part of an effort of diversifying its sales channels. The expansion drive has since seen the Company’s retail store, count increase to 3,308 stores nationwide.
Since the passage of the, 2018 Farm Bill in the U.S, CV Sciences has continued to register a significant interest in its hemp derived CBD category across retailers and channels. According to the CEO, Joseph Dowling, CVSI continues to experience growth in its hemp drug development program as well.
“Our drug development program remains on track, and we continue to anticipate filing an Investigational New Drug application in late 2019 / early 2020. We have the brand, the people and the unique business model focused on both consumer products and drug development to maximize our opportunity in the rapidly growing hemp CBD industry,” said Mr. Dowling.
According to the Chief Executive, CVSI is well positioned to capitalize on both growing consumer demand and benefit of enhanced regulation with the development of the hemp-based CBD market.
CVSI poor show in the market could be attributed to growing concerns about the widening net loss. In the first quarter, the Company generated a $9.4 million operating net loss compared to a $0.7 million operating income, generated a year ago.
In defense of the wider than expected net loss, management insists it was as a result of additional stock-based compensation and payroll expense associated with the retirement of the former CEO.
While CV Sciences is trending lower, one cannot dispute the fact that its long-term prospects and growth metrics remain intact, given the developments in the CBD market. Robust revenue growth is a milestone that underscores a company in a phase of growth.
Roth Capital initiating coverage of the stock with a buy rating is another development that underscores the Company’s long-term prospects when it comes to shareholder value generation. The pullback lower in our view presents an opportunity to buy the stock at a discount.
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Disclosure: We have no position in CVSI and have not been compensated for this article.
Charlotte’s Web Holdings Inc (OTCMKTS: CWBHF) on Track for a Record-Breaking Year
Charlotte’s Web Holdings Inc (OTCMKTS: CWBHF) is on course for a record-breaking year and continues to live up to much of the expectations as one of the best stocks in the cannabis sector.
Investing in a leader of one of the rapidly growing industries across the globe makes for a significant opportunity. Investing early makes it even better. Charlotte’s stock is a leader in the US CBD market and currently trades on the CSE market in Canada and the OTC in the US.
Charlotte’s Web Holdings Price Analysis
The stock has been climbing up in the charts lately (especially the start of this year) transforming into a leader and one of the market’s most active pot stocks.
It’s fair to say that Charlotte’s price has been relatively up and down in the past month, but it’s now getting the moment up again slowly but surely.
The company is striving to meet the ever-growing CBD product demand, and as it stands, the stock is trading at $15.30. Charlotte Web Holdings is well positioned to get on climbing the ladder given the current strength of the upward momentum.
Charlotte’s Web Holdings Brief Review
Charlotte Web is the market share leader in the hemp-derived CBD extract products. It boasts a robust pipeline of products in tinctures, capsules as well as topical products. The…
Why Cannabis Science Inc (OTCMKTS:CBIS) Is Bottoming Out
Shares of Cannabis Science Inc (OTCMKTS: CBIS) are looking to bottom out, from one-year lows, after a roller coaster first quarter. The stock has had to contend with wild swings since the start of the year.
After starting the year on a roll and rallying by more than 50%, the stock did succumb to bearish pressure consequently plunging to the $0.03 level.
CBIS Catalysts And Price Analysis
With the stock having taken out the $0.04 level, it might as well have hit the floor and due for a correction higher as a bounce-back play. Some of the catalysts triggering a rally from current lows is the confirmation that the company is expanding its footprint into Canada.
In the recent past, the company has also confirmed the formation iCannabinoid Ambassadors Program. The program is geared towards expanding the company’s footprint and supporting the development of initiatives into new markets.
Cannabis Science has also confirmed plans to expand the scope of its sponsored research in Nigeria to address the potential use of CBD to treat neurological conditions such as Post Traumatic Disorder.
A bounce back from the $0.03 level could as well signal revitalized investors sentiments in the wake of recent developments. After the recent bounce back, the $0.05 is the immediate resistance level standing in the way of the stock edging higher from current lows.
Cannabis Science needs to rally and find support above…
CV Sciences Inc (OTCMKTS: CVSI) Is The Best Bet Among CBD Stocks
CV Sciences Inc (OTCMKTS: CVSI) is one of the best known CBD stocks trading on the OTC Markets. The company makes a popular form of chewing gum and its CBD oil is currently the highest-quality top-selling brand, with an excellent reputation for product safety and efficiency.
So far this year, this popularity has not translated into a top-performing stock. For most of 2019, CVSI has been range-bound, whereas in 2018 we saw the stock run from $1 to $9 in just 4 months. Investors are now asking if we are going to see another explosive move this summer?
First up, here’s a little background info for those of you that aren’t familiar with CVSI. CV Sciences, Inc. operates two distinct business segments: a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors; and a drug development division focused on developing and commercializing novel therapeutics utilizing CBD. The Company’s PlusCBD Oil™ is the top-selling brand of hemp-derived CBD on the market, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry. CV Sciences, Inc. has primary offices and facilities in San Diego, California and Las Vegas, Nevada.
Deloitte & Touche LLP As Auditor
The big expectation we have here at MJ Global Report is that CVSI is going to uplist to NASDAQ. This…