Ever since marijuana was legalized in various states around the US and the whole of Canada, it has quickly become one of the fastest-growing industries. Consequently, a number of companies have emerged and their stocks have grown impressively over the past year. However, amidst all that, many investors may have failed to notice that another company in the marijuana space is making big moves in the hemp CBD market and hence, many experts believe that Charlotte’s Web Holdings (CSE:CWEB) (OTCQX:CWBHF) could prove to be an excellent investment.
In this regard, it is first important to note that unlike cannabis, hemp is legal all across the United States and Charlotte’s Web does not have to deal with the sort of uncertainty that is common with the cannabis industry. Additionally, it can set up its production operations in any state in the country. Also, it can ship its products with ease as well. The lack of barriers with regards to hemp has made it a fairly attractive company for many analysts. However, the reasons go far beyond that. Charlotte’s has assiduously grown its network of retail outlets over the years. Currently, there are as many as 6000 retail outlets that stock the products that are produced by the company.
However, one of the most important factors in favor of this marijuana stock is the fact that it has posted profits in each of the last four quarters and seems primed to continue to do so as it consolidates its position in the hemp market. At this point in time, its profit margin stands at 14% and none of the profit includes any non-operating items. Which is another positive aspect of its recent profit surge. It goes without saying that Charlotte’s has managed to build up a viable business that is able to churn out consistent profits in a high growth industry. Although hemp cannot generate as high margins as marijuana, there is a lot of positives about Charlotte’s Web Holdings.
Shares of Charlotte’s Web have outperformed the broader cannabis sector in the past one month as this marijuana stock has soared 55% since June 14. However, the stock is still 30% off from its 52-week high of $25.25 on the OTC market.