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Dang! That is one beautiful chart. Thanks for conceiving of doing that kind of comparison. A picture sure is worth 1000 words (or 1000% gain!)
Georgie: Regarding that opening candle tomorrow. What would you be looking for with that candle in terms of what it might mean for the rest of the day?
$3.22 close. extremely bullish.
Too soon to really know – the question is “is this a tails company?”
https://www.collaborativefund.com/blog/tails-you-win/
Tails, You Win
Morgan HouselJun 21, 2018
Steamboat Willie put Walt Disney on the map as an animator. Business success was another story. Disney’s first studio went bankrupt. Later cartoons were monstrously expensive to produce, and financed at onerous terms. By the mid-1930s Disney had produced more than 400 cartoons – most of them short, most of them liked, and most of them losing money. Disney and his studio were nearly broke.
Snow White and the Seven Dwarfs changed everything. The $8 million it earned in the first six months of 1938 was an order of magnitude higher than anything the studio earned previously. It transformed Disney Studios. All company debts were paid off. Key employees got retention bonuses. The company purchased a new state-of-the-art studio in Burbank, where it remains today. By 1938 Walt had produced several hundred hours of film. But in business terms, the 83 minutes of Snow White was pretty much all that mattered.
Long tails drive everything. They dominate business, investing, sports, politics, products, careers, everything. Rule of thumb: Anything that is huge, profitable, famous, or influential is the result of a tail event. Another rule of thumb: Most of our attention goes to things that are huge, profitable, famous, or influential. And when most of what you pay attention to is the result of a tail, you underestimate how rare and powerful they really are.
Venture capital is a tail-driven business. You’ve likely heard that. Make 100 investments, and almost all of your return will come from five of them; most of your return from one or two.
Correlation Ventures crunched the numbers. Out of 21,000 venture financings from 2004 to 2014, 65% lost money. Two and a half percent of investments made 10x-20x. One percent made more than 20x return. Half a percent – about 100 companies – earned 50x or more. That’s where the majority of the industry’s returns come from. It skews even more as you drill down. There’s been $482 billion of VC funding in the last ten years. The combined value of the ten largest venture-backed companies is $213 billion. So ten venture-backed companies are valued at half the industry’s deployed capital.
There is a feeling, I’ve noticed, that this low-hit, high-stakes path is unique to VC in the investment world.
I want to show you that it’s not. Long tails drive everything.
The most successful venture-backed companies – the tails – go on to become public companies. And it’s easy to measure how important tail returns are to public markets. Spoiler alert: It’s not much different than VC.
The S&P 500 rose 22% in 2017. But a quarter of that return came from 5 companies – Amazon, Apple, Facebook, Boeing, and Microsoft. Ten companies made up 35% of the return. Twenty-three accounted for half the return. Apple alone was responsible for more of the index’s total returns than the bottom 321 companies combined.
The S&P 500 gained 108% over the last five years. Twenty-two companies are responsible for half that gain. Ninety-two companies made up three-quarters of the returns.
The Nasdaq 100 skews even more. The index gained 32% last year. Five companies made up 51% of that return. Twenty-five companies were responsible for 75% of the overall return.
It’s always like this. J.P. Morgan Asset Management published the distribution of returns for the Russell 3000 from 1980 to 2014. Forty percent of all Russell 3000 stock components lost at least 70% of their value and never recovered. Effectively all of the index’s overall returns came from 7% of components. That’s the kind of thing you’d associate venture capital. But it’s what happened inside your grandmother’s index fund.
You can drill this down even more.
Amazon drove 6.1% of the S&P 500’s returns last year. And Amazon’s growth is almost entirely due to Prime and AWS, which itself are tail events inside a company that has experimented with hundreds of products, from the Fire Phone to travel agencies.
Apple was responsible for almost 7% of the index’s returns. And it is driven overwhelmingly by the iPhone, which in the world of tech products is as tail-y as tails get.
Who’s working at these companies? Google’s hiring acceptance rate is 0.2%. Facebook’s is 0.13%. Apple’s is about 2%. So the people working on these tail projects that drive tail returns have tail careers.
Warren Buffett once said he’s owned 400 to 500 stocks during his life and made most of his money on 10 of them. Charlie Munger followed up: “If you remove just a few of Berkshire’s top investments, its long-term track record is pretty average.” Same for Ben Graham. The postscript of the Intelligent Investor discusses a “partnership’s investment” in one stock, Geico:
The aggregate of profits accruing from this single investment decision far exceeded the sum of all the others realized through 20 years of wide-ranging operations in the partners’ specialized fields, involving much investigation, endless pondering, and countless individual decisions.
The partnership was Graham’s own. Long tails, everywhere.
Benedict Evans tweeted a reminder about VC last week: “Silicon Valley is a system for running experiments. It’s the nature of experiments that some fail – the key is for the ones that work to really really work.”
He’s right. But that isn’t unique to VC. Extreme winners and losers emerge faster in VC than other investment styles. But extremes are the norm, everywhere. Great ideas and great execution are rare. Most competitive fields have strong feedback loops: Losers keep losing because no one wants to be associated with losers, and winners keep winning because winning opens doors, and open doors beget more open doors. Amazon is successful in part because it has cheap capital, and it has cheap capital because it’s successful. Sears, on the other hand, has virtually no shot at redemption. In many industries, customers do not want the fifth-best product. Talented employees don’t want the fifth-best employer. They want the best. So winning accrues to just a few. It’s as true for large companies as it is for startups, even if the latter happens faster.
A takeaway from that is that no matter what you’re doing, you should be comfortable with a lot of stuff not working. It’s normal. This is true for companies, which need to learn how to fail well. It’s true for investors, who need to understand both the normal tail mechanics of diversification and the importance of time horizon, since long-term returns accrue in bunches. And it’s important to realize that jobs and even entire careers might take a few attempts before you find a winning groove That’s how these things work.
And remember, reading this means you belong to the only species out of 8.7 million on this planet that can read. And our planet is the only one out of 100 billion in our galaxy that we know has life. So just reading this article is the result of the longest tail you can imagine.
BearNakey: Did you ever find any connection to PGxPlus+
“Been researching PGxPlus+ potentials, appears there is a company from NJ (Barry's local area), Admera Health.
Admera has developed a verrry similar lab test to identify dosages of various drugs: https://marketplace.athenahealth.com/product/pgx.
Partnership or acquisition???”
Have been waiting patiently for the delayed move post Nasdaq application news. This move certainly needs another positive PR or two to create a new floor of support above $3.
We’re close to seeing that 52 week high ($3.08) out.
Still confident we see uplist soon with a major SP move on Tutes starting to establish their larger positions.
Congrats to the longs here
Was That CBD Gum Tiger Woods and Phil Mickelson Chewed During the Masters?
https://www.greenentrepreneur.com/article/332523
Only they know if it's CBD gum they were chewing but there are many reasons why they might.
Brendan BuresApril 22, 2019
Was That CBD Gum Tiger Woods and Phil Mickelson Chewed During the Masters?
Image credit: Andrew Redington | Getty Images
Tiger Woods
4 min read
Brought to you by The Fresh Toast
Tiger Woods completed one of the greatest comeback stories in sports this past weekend by winning the Masters It’s his first major tournament victory following an 11-year drought that included national scandals, a debilitating back injury, and more. At various points, commentators said any remaining hope around a Tiger comeback was delusional. He’d never win another major tournament, they said.
But Woods proved all the doubters wrong by coming from behind in his victory at Augusta, a feat he’d never previously accomplished. So what was his secret? Long-time fans and golf watchers surely noticed at least one significant change in behavior from Tiger -- he was chewing gum. Like, a lot of gum. Whenever the camera cut to Tiger, it seemed his molars were always moving.
Believe it or not, chewing gum during rounds is a new trend amongst professional golfers. After the suggestion of his teacher Cameron McCormick, Jordan Spieth chewed gum throughout the 2017 British Open to calm his nerves and it worked -- Spieth won the tournament.
RELATED: These Pro Boxers Are Using CBD For Performance Enhancement And Recovery
The New York Times reported last month that Phil Mickelson recently started chewing gum while golfing “to boost his cognitive function.” Data and research backs up Mickelson’s gummy beliefs. “Studies have shown that chewing gum is associated with improved alertness and the ability to process new information, though the results are far from definitive,” the Times’ Karen Crouse wrote.
“The chewing aspect stimulates the frontal cortex,” added Mickelson.
But some have speculated that Woods and Mickelson aren’t chewing regular old bubblegum -- they’re chomping on CBD gum. The PGA Tour’s Anti-Doping Agency usually follows the protocol set by the World Anti-Doping Agency. And when WADA announced athletes could use cannabidiol (CBD), as it didn’t consider the substance performance-enhancing, the PGA Tour adopted similar rules.
Related: Why Synthetic CBD Is (Probably) the Future of Cannabis Pharma
However, players received an official PGA Tour newsletter earlier this month advising them not to use CBD products. Their reasoning? “CBD products (like all supplements) pose a risk to athletes because they have limited government regulation and may contain THC, the psychoactive component of cannabis that is prohibited,” the newsletter read. Was this newsletter possibly a response to golfers chewing CBD gum? We can only wonder.
Related: CBD: Hazy Regulations, Huge Rewards Lure Entrepreneurs
But it would also make sense why CBD gum would attract golfers, especially older ones like Mickelson and Woods. Not only would CBD calm any nerves in competitive play, it’d also ease any aches and pains a golfer might endure throughout a given tournament.
“Competition at the highest levels of professional sports can no doubt be very stressful, especially when legacy and money is on the line,” says Chris D’Alberti, the co-founder of a Highline Wellness, a company that produces various CBD products. “CBD Gum is an amazing tool to help reduce the stress levels of top athletes while also boosting their cognitive functioning. Along with lowering the stress levels of athletes, CBD helps reduce inflammation and improve sleep quality for quicker recovery.”
While we can’t confirm it’s CBD gum they’re chewing, all the signs point to why golfers might consider it. Next time you’re on the links, maybe give it a try. It could just be the difference between a bogey and par in your game.
This article was first published in The Fresh Toast, a content partner of Green Entrepreneur.
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CBD Has Gone Mainstream: What's Next?
There are many reasons to expect CBD will be commonplace in homes across America.
Jay HartenbachMay 3, 2019
CBD Has Gone Mainstream: What's Next?
Image credit: Tinnakorn Jorruang | Getty Images
6 min read
Opinions expressed by Green Entrepreneur contributors are their own.
Those of us who have worked in the hemp industry the last few years have witnessed an exponential increase in the demand for CBD. I am often asked if the CBD industry has peaked. My short answer is no -- we are just scratching the surface of CBD’s potential -- but to fully answer the question, it is helpful to understand how this whole CBD craze started.
With the 2014 Farm Bill, the cultivation of hemp and sale of CBD became federally legal for the first time in 75 years. While this opened the door to mainstream acceptance, CBD was still considered a fringe product. Companies looking to sell CBD products had to work with special farms licensed under state Hemp Research Pilot Programs. Many states were unsure how to regulate CBD and there were often regulatory contradictions between state departments. Despite the legality of our products, it was often difficult to obtain ordinary banking services, or even shipping partners willing to transport the products.
Despite these difficulties, the groundswell for CBD was fully underway. While larger corporations and traditional marketing platforms wanted nothing to do with CBD, independent retailers across the country were adopting CBD en masse. Chiropractic offices, pharmacies and nutrition stores alike recognized both the demand for CBD and the health benefits for their customers. Consumer interest built slowly until, by 2017, CBD was a hot commodity for specialty retailers - even though the majority of Americans had still not heard of CBD or realized it was tied to the medical marijuana movement sweeping the country.
Related: Move Aside, CBD: New Data Finds THC Is the Real Medicine in Medical Marijuana
On December 21st, 2018, the hemp industry took its largest step forward. Passage of the 2018 Farm Bill transitioned hemp and CBD from pilot programs to a permanent legal status. Almost overnight, there was a paradigm shift in how Americans looked at and treated CBD. FDIC Insured banks opened accounts for CBD companies. Questions fielded by our customer service team shifted from “Are these products illegal?” to “I have heard about CBD; what products would be right for me?” Medical research universities are now co-sponsoring studies on the effects of CBD. The World Anti-Doping Agency, which oversees Olympic athletes, removed CBD from its list of banned substance, opening up the potential for endorsements by world-class athletes.
Mainstream consumers are now ready for CBD and the demand is growing by the day. CBD companies have seen record growth in recent months. The revenues of my company, Medterra, jumped 35 percent in the 30 days following the signing of the Farm Bill. What’s even more exciting is that the growth appears sustainable as new channels continually open up.
With the newfound attention on CBD there has been increased scrutiny. Many skeptics claim CBD is just the latest health fad and, due to the lack of medical research, question whether CBD has any benefits. We certainly cannot expect the interest to perpetually increase at such a rate but consumer demand for hemp and CBD show no signs of fading. Significant clinical research is underway and experienced CBD users have only become more vocal on its effects.
CBD is proving to be different from past health crazes (remember juice cleanses?) that faded. With the latest Harvard Medical research recognizing inflammation as a common factor in many diseases, CBD’s anti-inflammatory, non-psychoactive properties open it to all walks of life.
The largest change in the CBD industry since passage of the 2018 Farm Bill is the interest from major retailers with thousands of retail stores across the United States. This interest alone will dwarf what the CBD industry has done in recent years and grow CBD into the $20B+ industry that is predicted in 2022.
Related: Is CBD Better Than Big Pharma? Patients Seem to Think So.
Furthermore, these large corporations represent a significant stamp of approval for this growing industry. One of the first national retailers taking this step forward is CVS. With a multi-state rollout, CVS made headlines for its progressive stance on CBD. Consumers seeing CBD on major retailer shelves are no longer hesitant to try the products they keep hearing about on the news. It has sparked a chain reaction for other national retailers to begin carrying CBD.
With this market opportunity now blossoming, consumers have seen a flood of new CBD companies. This will change the CBD industry in ways both good and bad. Companies unconcerned with quality (or even selling genuine CBD) pose a risk of damaging consumers perceptions on the efficacy of CBD. To combat this, industry groups are developing third-party approvals, such as the US Hemp Authority to audit the supply chain and manufacturing of prospective CBD companies. This transparency encourages both consumers and retailers to enter the space.
The wave of new CBD companies post-2018 Farm Bill is driving significant innovation. Where the relatively low competition of the past did not force innovation or differentiation, CBD companies are now trying to identify their unique place in the market. This innovation will ultimately benefit consumers as the most effective or specified companies will retain consumers selecting from a myriad of choices. While it had been good enough to simply sell pure CBD tinctures, consumers are now demanding unique product blends that are ultimately more efficacious. Those companies that cannot evolve will simply fade into obscurity and off retail shelves.
Related: 7 Statistics Entrepreneurs Need to Know About Legal Cannabis and CBD
We are just starting to see the true potential of hemp. CBD has been the cornerstone of the hemp revival but the future will include a variety of other hemp derived cannabinoids that are similar to CBD, but offer wide-ranging effects on the body. One of these is Cannabinol (CBN), which research has demonstrated potential as an effective sleep aid.
With such a rapidly growing industry that is now just overcoming major regulatory hurdles, it is near impossible to predict how CBD will evolve in the coming years. What can be certain is that CBD is quickly becoming a mainstay for consumers across the world and just starting to hit its true potential.
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Green Roads is mentioned in this article. It’s a Florida-based company and sells its CBD-infused products in about 6,000 stores and 2,000 doctors’ offices nationwide. Brightfield lists it as the largest private company specializing in hemp-derived CBD; co-founder Arby Barroso estimated the company’s 2018 revenue at $45 million.
CBD: Hazy Regulations, Huge Rewards Lure Entrepreneurs
https://www.greenentrepreneur.com/article/330137
The market for CBD is booming in a gray area of the law. Little is clear except there is a lot of money to be made.
Garrett RudolphMarch 15, 2019
CBD: Hazy Regulations, Huge Rewards Lure Entrepreneurs
Image credit: J. Michael Jones | Getty Images
12 min read
Brought to you by Marijuana Venture
Risk versus reward. It’s the equation hundreds, if not thousands, of companies across the United States are weighing with regards to CBD.
And despite an overwhelming lack of clarity at the federal level, companies of all shapes, sizes and philosophies are wading into the ever-deepening pool of hemp-based consumer products. From retail giants like Safeway and Rite-Aid to smaller, regional chains like New Seasons Market. From iconic, luxury retailers like Barneys to boutique wellness shops throughout the country. From major CBD brands like Charlotte’s Web, which boasts sales to more than 3,000 retail outlets nationwide, to startups like New York-based New Highs CBD.
The manufacture and sale of CBD products remain legal gray areas, but companies are moving fast to establish their brands, jockeying for the advantage of being first-movers and capitalizing on the cannabidiol rush.
Whether CBD is the next big boom or a bubble surging to its bursting point, no one can say for certain. Like Tulip mania and the dot-com frenzy, it’s probably a combination of both. But the CBD industry is definitely in the midst of its watershed moment.
Related: Move Aside, CBD: New Data Finds THC Is the Real Medicine in Medical Marijuana
Legalization vs. the FDA
CBD’s momentum has been building for years. Its sharp rise can be tracked to CNN’s “Weed” documentary, which in 2013 exposed the world to the Stanley brothers and their CBD-rich cannabis varietal that helped young Charlotte Figi treat grand mal seizures.
That building buzz turned to roar with the passage of the 2018 Farm Bill, formally titled the Agricultural Improvement Act of 2018. However, the Farm Bill’s passage also led to widespread misconceptions.
“No doubt about it,” says Ronie Schmelz, an attorney in California with Tucker Ellis, who advises clients on regulations set forth by the FDA, Federal Trade Commission and other agencies, as well as representing them against class-action lawsuits brought by consumers.
Schmelz points out that the Farm Bill does a lot to protect hemp farmers, allowing the wonder-crop to be grown legally, removing it from Schedule I and providing safety mechanisms for interstate transportation, insurance and financial services. However, the landmark bill doesn’t address the parameters of selling the end products.
“That remains within the purview of each individual state, and states have taken different approaches to legalization of marijuana,” Schmelz says.
Related: CBD Is Taking the Cannabis Industry Mainstream
Following the passage of the act, the FDA issued a statement that ingestible products containing cannabis or cannabis-derived compounds remain under the purview of the FDA and the Federal Food, Drug and Cosmetic Act. FDA Commissioner Scott Gottlieb’s statement spurred several states and municipalities to enact stricter regulations, including New York City, which now prohibits restaurants and bars from selling CBD (read more about the crackdown on Page 140).
“It didn’t necessarily throw any wrenches into our plans,” says New Highs CBD founder Sarah Remesch, whose company is based in the Big Apple. “There were talks of using our products in cocktails or food; none of those really made sense for us. I think it’s actually good to have some regulation to keep the consumer safe at the end of the day. A lot of people don’t know what’s in CBD, so they see it on a menu -- ‘Oh yeah, toss that in my latte’ -- and they don’t know how it’s going to affect them.”
“It’s remarkable how many products are out there on the marketplace,” says Richard Fama, a New York-based lawyer with Cozen O’Conner, who has been involved with FDA regulations and class-action litigation against food and beverage companies for more than a decade. “There were certainly a lot of marketers who jumped on the bandwagon after the passage of the Farm Bill, but I don’t know how much attention was paid to Commissioner Gottlieb after that.”
Lawyers, lawmakers and entrepreneurs alike are waiting impatiently for clarity on the subject.
“It is still a quagmire,” Schmelz says. “I think a lot of people assume that because the Farm Bill was passed, it’s open season now and it’s risk-free to go ahead and sell products that contain hemp products that meet the definition in the Farm Bill. That’s simply not the case.”
Related: Martha Stewart Living the CBD Life
States’ Rights
Much like marijuana, each state has vastly different rules about the legality of CBD, who can sell it, what type of licenses -- if any -- are required, what type of products are allowed, what regulatory authority oversees the production and sale, and how CBD products factor into state-sanctioned medical and recreational marijuana programs. These rules are in a constant state of flux; a wide-open opportunity one day could face an impossible barrier the next, and vice versa.
“What I can tell you is that there are states out there -- Texas is one example -- that are very hostile to marijuana, so you probably run a huge risk if you want to sell products there,” Schmelz says. “But it remains to be seen whether other states, which are more hospitable to marijuana, for example for medical purposes, will permit the sale of hemp and hemp-derived products in their states.”
That said, the opportunity is proving irresistible to modern oil prospectors, even in the Lone Star State. Like the brazen wildcatters of lore, CBD retailers are staking claims in the new frontier of the cannabis space. Prohibition Creamery in Austin began selling CBD-infused ice cream on Valentine’s Day. Dab is a CBD/hemp café in San Antonio. Amsterdam Co. plans to open a CBD-themed coffee shop in Houston later this year. LazyDaze Counterculture is a prominent smoke shop and CBD café chain with storefronts in Austin, San Antonio, Killeen, Laredo and Pflugerville and more in the works. American Shaman, the booming CBD retail franchise, has opened shops across Texas. SA Botanicals is a local CBD manufacturer and distributor with more than a dozen retail locations in San Antonio.
The Oklahoma-based franchise CBD Plus USA has one store open in Plano and lists locations in Amarillo, Frisco, Grapevine, Lewisville, McKinney, Tarrant County, The Colony and Wichita Falls as “coming soon” on the company’s website. Countless smoke shops, head shops and “wellness” centers sell CBD and hemp products -- some of which are indiscernible from the packaged cannabis flower sold in dispensaries up and down the West Coast. And don’t forget Texas’ favorite son, the legendary Willie Nelson, who sells the Willie’s Remedy line of CBD-infused coffee throughout the country.
In some cases, these emerging CBD businesses are in direct competition with Texas’ three licensed producers of high-CBD, low-THC cannabis for card-holding medical patients. And that’s just in Texas -- a state that still has some of the most draconian marijuana laws in the universe. One can imagine what the CBD market looks like in weed-friendly Washington, Oregon, California or Colorado.
Unprecedented Opportunity
It’s easy to hear the siren’s song of CBD. Its potential as an additive in any type of product -- from cosmetics and topicals to foods and beverages -- and its non-psychoactive properties are the makings of a multibillion-dollar commodity.
An excerpt from a Bloomberg article by journalists Craig Giammona and Kristine Owram hit the nail on the head: “The growing demand for CBD dovetails with Americans’ long-standing appetite for super foods and ingredients that promote wellness. In a divided and anxious nation, moreover, many people are willing to try products that claim to ease insomnia and stress. CBD is following a path already traveled by tumeric, acai berries, ginkgo biloba and so on. People tell each other the stuff works, word travels, and the cash registers keep ringing.”
By all accounts, those cash registers will be kept busy in the coming years, as hemp production ramps up and more Americans have access to, and interest in, CBD products.
In its 2019 Global State of Hemp report, Hemp Business Journal estimated total CBD sales in the U.S. could hit $1.5 billion by 2020 and $2.26 billion by 2022, up from $641 million in 2018. Based on data from Hemp Business Journal, BDS Analytics and wellness-focused data firm SPINS, the report’s 2022 projection is comprised of $1.3 billion in hemp-derived CBD sales, $647 million from marijuana-derived CBD and $310 million from pharmaceuticals (Epidiolex).
Meanwhile, the Chicago-based market research firm Brightfield Group has predicted even steeper growth, estimating CBD sales hit $22 billion by 2022.
Related: Why the CBD Market Is Likely to Boom for Many Years
It remains to be seen if -- or more precisely, when -- some of the major retail holdouts will begin stocking their shelves with CBD. To date, giants like Walmart, Costco, Target, Kroger, Amazon and Whole Foods have been CBD-free zones (although Target briefly flirted with CBD in 2017 before pulling Charlotte’s Web’s CW Hemp products from its shelves, and Amazon sells dozens of “hemp oil” products that are essentially identical to “CBD-infused” merchandise sold elsewhere by the same manufacturers).
With the vast regulatory uncertainty hanging over the CBD industry, most lawyers would suggest a wait-and-see attitude. But that advice is not putting any sort of damper on the entrepreneurial spirit.
Charlotte’s Web, the company founded by the Stanley brothers and named after the strain made famous by “Weed,” is still the most well-known CBD company, posting $48 million in sales -- and gross profit of $36 million -- in the first three quarters of 2018 (fourth quarter financials had not been released by the company as of publication). Charlotte’s Web went public in 2018.
Green Roads, a Florida-based company, sells its CBD-infused products in about 6,000 stores and 2,000 doctors’ offices nationwide. Brightfield lists it as the largest private company specializing in hemp-derived CBD; co-founder Arby Barroso estimated the company’s 2018 revenue at $45 million.
And Cura Wellness, one of the fastest growing marijuana companies in the country, made mainstream inroads in February, announcing a partnership to sell Cura’s Select CBD brand at New Seasons Market grocery stores in California, Oregon and Washington.
There’s a parallel between the emerging CBD trade and the birth and development of the medical marijuana industry as entrepreneurs in both categories have charged ahead without full consent from the Feds, blazing their own trail and daring regulators -- and competitors -- to keep up.
Like Craft Cannabis Alliance executive director Adam Smith said in the March 2019 issue of Marijuana Venture, “Waiting for explicit permission from the federal government in cannabis has never been a winning strategy.”
Seller Beware
State and federal legislation for CBD -- and in fact, for all things cannabis -- is trending toward acceptance. Most people believe there’s no going back. The train, as they say, has left the station, but how can CBD producers and retailers planning to carry CBD products protect themselves as much as possible from violating the complicated rules?
“Of course, like any good lawyer would say: They should seek legal advice,” Schmelz says.
“Just because the Farm Bill has passed, they shouldn’t think they have a risk-free opportunity to sell products with CBD derived from hemp in their stores,” she says, “particularly given the stated position of the FDA that it is unlawful to introduce food and dietary supplements containing CBD or THC into interstate commerce, regardless of whether they are hemp-derived. Retailers also need to consider whether there are state or local ordinances that restrict the sales of such products.”
She also recommends businesses to look at whether selling CBD products could invalidate their insurance policies, lease agreements, bank accounts, etc.
And for both manufacturers and retailers, it’s important to ensure the label on the packaging matches what’s actually in the product. With CBD products, in particular, there have been widespread reports of wildly inaccurate labeling -- including products that contain THC, despite being labeled as having zero percent THC.
Grandiose health claims are also not uncommon.
“I was just buying my dog some pet food and they had CBD-infused pet treats saying it cured epilepsy and seizures,” Fama says. “I think that’s where you’re going to see the FDA cracking down more significantly -- products making health claims.”
He suggests avoiding any claims that a product could prevent, cure or diagnose a disease -- including in pets, as those products are not immune from penalties related to false or deceptive claims, such as unsubstantiated medical benefits.
Retailers can require an indemnity clause in their sales agreements. Fama says he always tells people entering a food or beverage business -- including those of the CBD-infused variety -- that “an indemnity provision is only as good as the financial position of the company that is agreeing to indemnify you.”
For a lot of companies selling CBD, “their ability to indemnify a future loss might not exist,” he says. “So the retailer really needs to be doing their due diligence.”
The bottom line is that despite the explosive growth of the CBD market, businesses still need to follow the same basic steps as any startup.
“Don’t rush into it,” Fama says. “Do your homework. Consult legal counsel.”
This article originally appeared on Marijuana Venture and appears here under a content partnership with Green Entrepreneur.
Green Entrepreneur Podcast
Each week hear inspiring stories of business owners who have taken the cannabis challenge and are now navigating the exciting but unpredictable Green Rush. Listen Now
Seems if they did do that AND revenue growth is phenomenal along with continued positive expansion, SP would be right back to $5 with big funds buying in
I haven’t heard this before. Is this anecdotal or is there a link where I can read about this minimum? I have seen very low float Nasdaq companies SP appreciate quite nicely. If this is true, what are the alternatives besides a forward split which seems far fetched to me.
Thanks mate!
I just don't see where any traders can make any significant profit given how little volume there is.
There's no way I could trade out of my large position without causing the SP to move lower.
So a trader can trade a few thousand shares and maybe grab a few cents. whoopee do!
Maybe someone can explain the rationale for a trader to play a ticker like this with so little volume
I’m not seeing an updated float number at otc.com. Anyone have that figure? Last I heard it was around 9 million shares.
Shorts are at 310k over the last month. Up 100% from the prior month If the data at OTC.com is correct.
https://www.otcmarkets.com/stock/PRED/quote#short-interest
A little more drop and I'll accumulate a few thousand more shares. Only additional perceived positive news will pop this back to $1.80 and on towards $2. Patience pays like with PRED.
“The researchers are planning a large, multicenter clinical trial to test the drug metronidazole in women who have the painful condition.”
Key word: “planning.” Not in stage 1 or even stage 2, but only in the planning stage.
I continue to learn a lot from certain iHub members; especially jefra, SL, microcappaty, marketmakerchartist, Marty among some others.
One of the things I’ve learned relative to holding long here is the only thing more important than having a great investment thesis (let smart management and fundamentals speak for themselves) is knowing what will kill my investment thesis and having the decisiveness to act when I see the signs of it cracking.
Catalysts are inherent to my investment thesis with CVSI. There has been no cracking and I see no cracking in the near future. Just still too many near-term catalysts to cause any doubt in my thesis. fundamentals are strong with CVSI, so no cracking there. It’s about future growth and future growth depends on continued catalysts. We’re still in the infancy of this sector’s growth. When the catalysts dry up, I’ll move on.
Motley Fool articles are invariably just click bait to lure in naive retail investors to buy into their subscription. That being said, any positive slant for CVSI based on FACT is welcomed:
“Reasons to prefer CV Sciences to Medical Marijuana? It's growing revenue faster, it's profitable, and there appear to be no liquidity concerns.”
I’m not sure why the word “appear” was necessary though. The only thing apparent about their liquidity is that it’s good.
Re: Sprouts stores rolling out topical CBD. Say, Benjamin, need a link for this mate. Thanks. I shop at our local Sprouts every other day or so and am always chatting with the health guru employee in the vitamin/cometic department. I've asked him to keep me posted of any new news regarding CBD products coming to the stores. He has said that numerous companies have sent them samples, but due to grey area with FDA, they send them back. NOW, topical is another story.
I needed that LOL MMC!! Brilliant!
Thanks Marty! That was my suspicion, just wanted to get other perspectives.
One thing for sure: “there’s a whole lotta shakin’ goin’ on” behind those CVSI management doors.
Cutes: enough already. Muted.
Cutes: There’s a big distinction to be made between rah rah cheerleading and confirmation of the fundamentals. It just so happens you are conveniently forgetting or not bothering to make the connection that the cheerleaders here understand the fundamentals. They aren’t just pumpers like the majority of posters on pinky stocks. Let the fundamentals speak man!!! Let the cheerleaders cheer!! Read a filing or two or three.
Now cutes, this one of your posts I can agree with to an extent. I’ve wondered the same, and all I come up with for an explanation is that we’re on the OTC which keeps the majority of Tute money from flowing in. They can comfortably watch from the sidelines and wait for uplist and further confirmation before taking positions. Their pockets are deep enough that they don’t care if they enter at much higher prices.
I’m confident these firms are already quite aware of PRED’s potential
You don’t have to convince me Brother! I’ve spent days reading through everything and I am absolutely convinced that we have one of the best Bio plays in the sector. Let’s come back here a year from now and you naysayers can explain your uninformed negative sentiment
mrplmer: "It's going to $1.41 so you got time."
have you on mute, but saw a reply to this message.
just want to express my deep gratitude for your genuine concern for our investments. Please continue to inform us with your educated, informed predictions.
I'll take you off of mute now so I make sure not to miss your welcomed advise.
BTW, how's that AVXL goin' for ya'? Dang, what a pick that was for you a couple of years ago.
Take good care and Thanks a mil ~
"formation \/\/ to the upside"
might be to early, but that final line of the \/\/ is looking good
I can’t imagine $3.12 without news. But I’ll take it anyway comes.
IB: mind explaining the option price being symbolic? I’m somewhat ignorant of options and would like to understand what you mean. TIA
CVSI news out- Proxy - hmmmm
https://ir.cvsciences.com/sec-filings-email/content/0001510964-19-000016/cvsi-20190415x14a.htm
PRE 14A: Preliminary proxy statement not related to a contested matter or merger/acquisition
HTML PDF
Q. When is the Meeting?
A. June 11, 2019 at 10 a.m., local time.
Proposal 1: To elect five directors to hold office until the next annual meeting of stockholders and until their successors are duly elected and qualified;
Proposal 2: To approve a proposal to amend the Company's Certificate of Incorporation to adopt a classified Board of Directors;
Proposal 3: To ratify Deloitte & Touche LLP, as our independent registered public accounting firm for the fiscal year ending December 31, 2019
Proposal 4: To amend the Company’s Amended and Restated 2013 Equity Incentive Plan, as amended (2013 Plan) to increase the number of shares issuable under the 2013 Plan;
Proposal 5: To amend the 2013 Plan to include an automatic "evergreen" provision regarding the shares to be annually added to the 2013 Plan;
Proposal 6: To approve on an advisory, non-binding basis named executive officer compensation;
Proposal 7: To approve on an advisory, non-binding basis the frequency of the shareholder advisory vote to approve named executive officer compensation;
In case anyone is wondering—
Evergreen Provision:
It is common for publicly traded corporations to provide more than just regular salary compensation to their management and key personnel. Often, corporate boards will decide to provide special compensation to key personnel, in order to attract and retain top talent and to help align management's interests with those of shareholders.
Such compensation commonly takes the form of stock option grants, in which a specified allotment of option contracts, with an exercise date set for some point in the future, is provided to selected employees. Selected employees can also be issued new shares by the corporation. Both forms of compensation can be very lucrative and, as the value of both common shares and stock options increases as the company's share price rises, both have the effect of aligning the economic interests of management and shareholders.
NOW THIS IS GREAT NEWS! CV SCIENCES APPOINTS DELOITTE & TOUCHE LLP AS AUDITOR
WHAT DOES THIS TELL YOU MATES!!
April 15, 2019
LAS VEGAS, April 15, 2019 (GLOBE NEWSWIRE) -- CV Sciences, Inc. (OTCQB: CVSI) (the “Company”, “CV Sciences”, “our”, “us” or “we”), a preeminent supplier and manufacturer of hemp CBD products, announced that it has appointed Deloitte & Touche LLP (“Deloitte”) as the Company’s new independent registered public accounting firm.
“Following a thorough selection process, the Company’s Audit Committee has concluded that Deloitte is best positioned to meet the evolving needs of CV Sciences. We would like to thank Tanner LLC for the quality work and expertise they have provided over the last three years,” said Joseph Dowling, Chief Executive Officer of CV Sciences.
The Company has also filed a Form 8-K with the Securities and Exchange Commission noting the engagement of Deloitte.
Can we get a dragonfly Doji to signify a bullish up trend?
Almost every ticker on my MJ watch list is down 4-6% - many in the first hour of trading. Volatility rules this sector!!
Yep! Love the gap fill. So far anyway. my first positions filled today at 1.73 & 1.61
Certainly got a big laugh out of me. Man have they lost the plot.
Max: ya’ killin’ us wid humor mate!
Bone:
Actually finding way better deep research at Seeking Alpha.
Scynexis, Undervalued And Filling A Critical Need In The Antifungal Space - George Crist
But you have to be a premium member to read the article. I was able to read all the comments of this article via the StockTwits link I discovered.
Cheers
Michael