Legal Cannabis Will Crush CBD Stocks — Avoid Charlotte’s Web Holdings

In this episode of my Marijuana Market Update, I take a closer look at Charlotte’s Web Holdings Inc. (OTC: CWBHF) a CBD stock.

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Today, I want to address a great email I received from Dave H.:

I’ve been watching your Marijuana Market Update podcasts for a few months and I really appreciate your honest and straightforward reporting on the status of the cannabis market. It’s not easy to find good, straight talk on investing in this sector, and I was reluctant to invest in it before listening to your views. I’m glad I started investing in October 2020 because I’ve made some decent gains since then.

I was wondering if I could get your take on a company called Charlotte’s Web Holdings (CWBHF). It’s not a straight cannabis play as it is more involved with the CBD oil side of the business. Do you feel that CBD oil has the same upside potential as some of the straight cannabis stocks? I have a couple of relatives who swear by the stuff as a pain reliever.

Again, thanks for the podcasts, and keep up the good work.

About Charlotte’s Web Holdings

Charlotte’s Web Holdings Inc. (OTC: CWBHF) is based in Boulder, Colorado and specializes in producing and distributing hemp-based cannabidiol wellness products, including tinctures, capsules, gummies, topicals and pet products.

In short, it doesn’t produce and sell cannabis: it produces and sells CBD, which comes from cannabis, but doesn’t contain THC.

CBD is more widely accessible in the U.S. as it’s not psychoactive.

Charlotte’s Web sells its products through its website and physical stores.

Charlotte’s Web Holdings Stock

The company’s stock is volatile.

Charlotte’s Web hit $2.96 per share in March 2020 but jumped to more than $6.80 in June.

That was followed by a drop that found the stock hit a new low of $2.34 in September.

It bounced up to above $5 following the 2020 election, dropped back down to just above $3 and has climbed back up to around $5 per share today.

Charlottes Web Holdings stock

The Issue With the CBD Market

Dave also asked about my thoughts on the CBD market.

I can tell you that the outlook is actually pretty strong. Total CBD sales could hit as high as $1.9 billion in 2022, according to the Hemp Business Journal. You can see CBD sales growth since 2014 in the chart below.

CBD stocks chart

But it’s not all good news. Watch my Marijuana Market Update to see what headwinds are facing this industry in the short- and long-term.

While I’m not a fan of Charlotte’s Web as a CBD stock play now, I think there are still some profitable buys within the industry in 2021. Watch the video to see what’s on my radar.

Cannabis Watchlist

Now, I want to look at our Cannabis Watchlist on Money & Markets.

Our watchlist continues to perform well. Our six positions are averaging a 36% gain! Read about Planet 13 Holdings Inc. (OTC: PLNHF), my latest addition to the Cannabis Watchlist, here.

cannabis watchlist January 2021

You can take a deeper look at the watchlist in my video here.

Where to Find Us

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To watch the Marijuana Market Update before anyone else, just subscribe to our YouTube channel and get an alert when we release a new update.

Coming up this week, we’ll have more on The Bull & The Bear podcast and our Money & Markets Week Ahead, so stay tuned.

Until next time…

Safe trading,

Matt Clark signature

Matt Clark

Research Analyst, Money & Markets

Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.

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