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Three days notice of a year-end financial report. Yeah, nothing to worry about here! Of course, when you operate a "thrift shop" with imported barrels of European paste, you don't really have to worry about goodwill impairments if the second-hand clothing labels you stock suddenly go out of style!
CVSI has Transformed the life savings of its common investors into magic beans and false promises. Where is the quarterly report? No news ain't good news in this case!
Well, Darth just listed several plans CW has out in motion (international expansion et al) that would be a contingency for the event of delayed FDA approval, so they're probably not doomed like CV, but we're not comparing any more, so ...
Scargo labs going out of business? Sounds like foreshadowing to me …. No cGMP, no revenue growth, no facility and no cash equals no reason to expect dimes to turn to dollars. CVSI is dead in the water. Bloop.
So let me get this straight … $1.66 million in cash as of last September, which includes the ignominy of accepting $2.9 million pounds of Government cheese. A settlement of $0.712 million, arrived at because CV couldn't afford to pay for further litigation. This company ain't running on fumes … the engines have cut out completely. Bet you twelve cents they don't report on Friday!
Seems like ALL the new products have "salt added" ;)
I don't compare CW to anyone; I said the culling of small companies has started, and that CVSI won't survive - I was responding to Wulf, who describes CVSI's stock price as a function of CW's .. I guess you better hope CW's bubble doesn't burst! That 7.2 BILLION figure sounds like a Brightfield approximation from 2019 … unless that 7.2 billion refers to the total amount of CBD revenue in the USA for 2021, then you're conflating. Please link where you got that 7.2 billion number from... is it from the same website Wolfman got his p/s ratio of 4.32 for CW a month ago? Now, about YOUR thought process - CW's stock price has nearly doubled on almost a million shares traded daily over the last week … do you think it is possible this might be happening because the next earnings will be positive? CW has so many catalysts, CVSI has none. But you know that.
In other words, this stock's price is dependant on the stock price of the bellwether stock of the industry. I wouldn't worry about swimming in CW's wake - I WOULD worry about YCBD taking a 20% dump today after reporting revenue loss. You don't think the same will happen here after reported earnings? Meanwhile, Canopy's CBD sales are the strongest they have ever been … CBD is selling, but not for small, derivative companies like this one. The cull has started, and CVSI is dead in the water. Adieu
Up 40% on an identical piece of news as the itsy bitsy bellwether company, and then timberrrrrrrrr. Ever get the feeling you've been cheated? We love you Mona, Moan Moan Mona ...
After filtering through all the anger, fake news and math, it isn't hard to see that CWEB is the bellwether stock of the CBD space, and is best positioned to take advantage of what meager opportunities the current market may offer. Vertically integrated companies from seed to shelf are the only ones who will survive in the future, and look at what is on offer here: an operational 137,000 square foot facility to further upscale and streamline what are already reducing operating costs, brand recognition based on superior product made from USDA Certified organic hemp. The much-maligned Elsner was a victim of bad timing, as her CPG expertise was never allowed to be used - she really didn't put a foot wrong; this company will be one of the few survivors, and the share price will explode when it becomes profitable, which could be Q1 2022! At a price to sales ratio of 1.00/0.64 (0.64 derived from 141 million shares over a MODEST projected yearly revenue of $90 million from 2021)… which is 1.56 … this is an absolute steal! The best in space, period.
Ummm, according to this: https://finance.yahoo.com/quote/CWBHF/key-statistics?p=CWBHF
Price to Sales = Price per Share/Earning Per Share = 1.04/0.67 = $4.32??? Why is your calculation NOT 1.04/0.67. Over to you WQLF! Please try to speak normally.
Well, as Maxwell's Silver Hammer would say, at least you aren't burning cash … as you don't have any to begin with!!
Let me get this straight … a $3.0 million dollar operating loss for this term, and selling off millions of shares at 0.26 to keep the doors open and pay salaries … up to a maximum of $5.3 million, which will pay for six more months. Revenues declining from last year, when the PANDEMIC was in full force. This company is positioned for lots of things, but growth ain't one of them, unless you call selling off shares at a 3-cent premium growth ...
Well, they certainly won't use it to buy 50 million shares of YOUR stock, seeing as they're focused on GROWTH. They almost broke even this term, you'll never sing that! Ahoooo ...and buh-bye
CWBHF up 10%, YCBD up 5%, MSOS up 6%, YOLO up 6%, and this company stays at 0.22 cents a share. No gains at all the week before earnings. Do you think the shareholders are being looked after? What spin can you possibly put on this?
Yes, the bellwether CWBHF stock would CLEARLY be better off instructing a private company to purchase shares at a lower price in the days before reporting earnings at a time when the entire sector is experiencing a dramatic price increase ... makes sense lol. You'll have to explain this further, you understand ...
Not as far as the bounce you need from $0.20 to $2.31, and then to 3, 4 and $5 plus ....
From CVSI's 2Q 2021 report : A gross revenue of $5.1 million with a gross margin of less than half. An operating loss of $3.5 million, with a cash balance of $3.0 million. If this quarter does not improve, and there is no reason to think it will, I don't see how this company can move forward without an operating budget. Where will capital come from?
If this is the case, this company is finished. I can't see anything other than bankruptcy. How many millions of shares will it take to raise capital? Where is the money going to come from? Not from revenue ...
I'm afraid you are misinformed about CWEB, as your posts aren't factual. If you want a discourse on a company's finances, present some links and a coherent line of thought as to how much capitol spending becomes "cash burn". GT's comparison is a relevant one - too bad certain people have a reaction to it.
I am sure he has been ready for months, but what kind of announcements do you expect? No Certified B, no USDA Organic Cert, not even hemp sourced in the US ... what is going to suddenly boost sales of this over the hundreds of other CBD companies? Not even money for marketing ...
There will be more products as "SOON" as they issue more shares, further diluting a penny stock, as there is no money for infrastructure. CW may rent you its facilities if you beg … actually, no they won't, as they can't vouch for where YOUR hemp comes from.
Right prediction, wrong company. How can you "test" $2 million in quarterly revenue, though?
Displaying the kind of wit that will keep you invested in CVSI forever … so happy you're a Mod here!
Oh noooo, are you sure you guys want to be mentioned alongside a disastrous stock heading to $1.50? Seriously though, could you guys please pay back your Government loan so we can get our tax refund?
"Group think study" is a rather convenient term to describe "Peer-reviewed" isn't it?
Do you ever get the feeling you've been cheated? The Shondells say: I love you Mona, Moan, Moan, Moan yeah I dooooo ...
You still don't understand the difference between burning cash and investing I see. There is no volume because no one will sell. Another step forward today with international expansion. More retail doors, which will be opening for more post-pandemic customers. Manufacturing and shipping from one central site, producing products under the guise of a CEO whose entire career is in CPG and informed by big data. I'd say we are TEN times more ready than you guys … New Harvest? More like "Something Extracted From Someone's Old Harvest"...
But it isn't the greatest product, is it? It it WAS a good product, you would be able to invest in smart things like vertical integration and relevant infrastructure. You would get a CEO with years of CPG experience for when, or IF the FDA decision comes through. You would participate in FDA-approved clinical studies to provide evidence for the FDA. But you guys do NOTHING … you import Europaste. It's why you're at 40 cents a share, with dilution coming for capital. The market looks forward … this is what is sees for you guys. Adios
Wow, it`s like a ghost town in here! Hello ….. echo …. Is there a big party somewhere else.... are all the rats jumping ship ...
Ha ha ha Only this board would get excited about CBD for Pets, like it's something new .. do you guys like LL Cool J? Sing this to the tune of "Goin' Back To Cali" … we're goin' back to twenty, to twenty, to twenty ... we're goin' back to twenty …" Look at me, I'm original too!!
Keep rockin' CVSI, maybe you'll break into the top 300,000 websites for traffic someday!! Why post about expanding pet shops … you don't even have any pet products, dumbo … you have a man in a blonde wig who says, "does this shit even work?" Take a good look at your numbers.. is it working?
Ooooooh-whee CWEB gettin' back to regular service, CVSI back to gettin' bummed you understand … no revenue, no relevant product, no future - except for maybe becoming Mods on other webboards ha ha ha. I honestly DO think the people on this board do ALL the buying and selling of CVSI. Soon you'll be the only ones buying the products too!
Oh no ha ha ha ha! CWEB gettin' BONED … CVSI gettin' BUMMED … have a nice weekend - enjoy your Europaste.
Disappointed with stock price, not company performance
We have a CPG expert as CEO, and are investing in infrastructure for vertical integration and mass production. Our management team is more experienced than Trulieve's, the most obvious example of how well vertical integration can work with favorable legislation. Our business model may not be the greatest match for current conditions, but management is doing fine. Our revenue didn't collapse, it just shifted … more into D2C, which is by the most important COVID-19 sales channel anyway! The industry's revenue decreased 63% on average. 63%! I don't understand the relation of CWEB's stock price to its performance, but at least I can admit I don't know - I am very certain that a strong brand name is being built and I suppose for now, it has to be enough!
To the peeps who show up every six months to claim their charts cried "I told you so" … it's so easy this way, isn't it?
Charlotte's Web still has tonnes of Upside; C$10 Price Target from PI Financial
https://www.cantechletter.com/2020/09/charlottes-web-still-has-tonnes-of-upside-says-pi-financial/
Worth noting that EVERY analyst virtually present at the Conference Call continues to have CWEB rated as either overweight, or as overperforming in the industry.
Weak retail figures were offset by robust direct-to-consumer sales for US CBD company Charlotte’s Web Holdings (Charlotte’s Web Holdings Stock Quote, Chart, News TSX:CWEB), according to analyst Jason Zandberg of PI Financial.
In an earnings update to clients on Tuesday, Zandberg kept his “Buy” rating and C$10.00 target unchanged, saying a lot for CWEB depends on when and how regulations surrounding CBD in the US pan out.
Boulder, Colorado-based Charlotte’s Web, a producer and distributor of hemp-based CBD products, announced its second quarter 2020 results on Monday, coming in with consolidated revenue of $21.6 million compared with $25.0 million a year ago. Adjusted EBITDA was a loss of $5.7 million compared to positive $3.8 million for Q2 2019. (All figures in US dollars except where noted otherwise.)
The company said in its report that COVID-19 has had its effect on retail and health practitioner sales channels due to decreased foot traffic into stores and temporary location closures. The quarter was nonetheless eventful for CWEB, which closed on its acquisition of Abacus Health Products, a US leader in over-the-counter topical products combining active pharmaceutical ingredients with hemp extract.
“Second quarter revenue was below expectations due to the impact of COVID-19 on retail sales,” said Deanie Elsner, CEO of Charlotte's Web, in a press release. “However, our DTC sales increased 33.6 per cent, largely offsetting declines in B2B retail sales. We made excellent progress building out our infrastructure and expanding our products portfolio with the closing of the Abacus acquisition. Abacus CBD Medic products are now being sold through our online store and we look forward to realizing more cross-selling revenue synergies with Abacus through our FDM partners.”
Charlotte’s Web ended the second quarter with cash and cash equivalents of $99.8 million compared to $53.0 million for the end of the previous quarter.
Zandberg said the Q2 revenue was in line with his expectations while the $5.7-million EBITDA loss was better than his estimated loss of $6.5 million. Zandberg said CWEB’s CBD gummy product line did well over the quarter, with sales growing 500 per cent year-over-year and now accounting for 20 per cent of the company’s overall product revenue.
At the same time, the company saw topical CBD product sales decline by 49 per cent year-over-year. Zandberg noted that the Abacus acquisition, which closed on June 11, represented $0.6 million in sales during its shortened contribution to the quarter.
“CWEB recorded negative EBITDA of ($5.7 million). This is the third consecutive quarter of negative EBITDA as gross margins declined to 53 per cent (75 per cent last year) and SG&A expenses represented 129 per cent of revenue. Gross margins face headwinds due to competitive pressures but we expect SG&A costs to decline as a percentage of revenue as CWEB integrates efficiencies with Abacus,” Zandberg wrote.
“The biggest catalyst for CWEB, in our opinion, is the regulatory environment within the CBD market that is currently non-existent and requires changes. We are watching the pending legislation surrounding hemp-based CBD dietary supplements (Bill HR 8179) which was introduced in the US House of Representatives in early September. We believe enforceable regulations will eliminate unfair competitive practices and should positively impact CWEB’s share price,” Zandberg argued.
Looking ahead, the analyst is calling for fiscal 2020 revenue and EBITDA of $111.2 million and negative $23.5 million, respectively, and for fiscal 2021 revenue and EBITDA of $166.6 million and $27.1 million, respectively.
At press time, Zandberg’s C$10.00 target represented a projected 12-month return of 166 per cent.
Charlotte's Web Q2 Earnings Report Summary
This is cut-and-pasted from user "Will" on the Yahoo Conversations message board.
A lot of noise on the message boards due to the less than stellar Q2 report but for those who haven't yet listened, here is a recap of the Q2 2020 Earnings Call. Essentially, COVID has impacted business (which they indicated was not the case in Q1 earnings call)
CEO Opening Remarks
1. Covid has impacted B2B business due to store closings and foot traffic declines
2. Company has donated $1M of product to those in need due to Covid
3. Abacus acquisition cemented leadership in topical and clinical relationships
4. DTC represented 72% of revenue in Q2 with B2B the remaining 28%
5. In discussions with more national pet chain retailers for distribution in FY21
6. Closed competitive pricing gaps across product portfolio with new pricing initiatives
7. Expect topical sales to increase significantly in 2H'20 (Abacus and organic growth)
8. 100-day business integration plan is on track for Abacus and beginning to realize cost synergies
9. Now operational in new manufacturing center and expect to be fully operational in early FY21 to realize more cost savings
CFO Opening Remarks
1. Abacus contributed about $700K in Q2'20
2. Expect mid 60s gross margin in H2'20 and increasing into FY21
3. $6M per quarter in H2'20 to reflect restructuring and acquisition of Abacus (??)
4. Expect FDA to provide guidance in mid-2021 for regulatory pathway for CBD
5. Identified 10% cost synergies and reduction efforts to streamline business
6. Expect Abacus to contribute $5M in 2H'20
7. Guidance for FY20: Expect Q2 to be lowest quarter for the year and 2H'20 to be up versus 1H'20. Flat to modestly up for FY20 versus FY19
CEO
Regarding regulatory framework, ValidCare clinical results to be provided Q4 and peer review published in early FY21. Should help with FDA framework. Management is confident that favorable regulatory framework to come in FY21 either through FDA or Congress.
Q&A
1. Build-out of operational and distribution center and bringing in-house of testing (rather than outsourcing) will result in savings. From Abacus deal, expect both revenue and cost synergies. Deanie says this is the strongest management team she has ever worked with... and management team will be surgical in executing
2. DTC business is up due to double-digit conversion rates and strong underlying trends on KPIs. However, traffic has been down (YIKES) due to economic and political uncertainty. Management expects traffic to come back. Management is optimistic as people buying Abacus products are also adding CWEB products in the basket during the first month under CWEB operations.
3. In the industry, COVID-19 is causing a natural shakeout of the weaker CBD companies but will occur slowly in natural channels. Real shakeout will occur mostly when FDM retailers start selling CBD once regulatory pathway occurs. This is when CWEB will really shine (CWEB is being built to benefit from FDM opening up) as FDM may only work with a dozen or so companies rather than natural channels that work with many more companies and SKUs.
4. 2H'20 guidance. Q3 is already pacing ahead of Q2 with only a couple weeks left to go (CFO didn't say by how much). As management looks at SPINS and Nielsen data, they are seeing velocities and takeaway rebound again to pre-COVID levels. Expect to see expanded distribution in national pet retail relationship in 2H'20.
5. New product introductions. Gummies have been doing well and expect to launch additional gummies SKUs. Company will sell more trial packs and value-size (larger) packs to close the product portfolio gaps. CW Labs was launched in February 2020. You can count on us to launch innovative products by channel in FY21 in Q4'20 and Q1'21. In April, company executed a price reduction to align more with market and the gap has narrowed through August. Company is not seeing a lot of price reaction to CWEB's price reduction and company is seeing increasing sales velocities.
6. What is the health of overall CBD market and category? Lack of regulatory environment has left open for competitors to operate at will and cause consumers to have bad experiences. However, demand from DTC shows that consumers are seeking CBD solutions for anxiety and other issues. Management sees mid-teens to high-teens billions for size of CBD market. 2020 for CBD market has been a disappointment but overall market is still growing about 11% YoY. However, industry expects to see accelerated growth into 2021 and beyond. Management is tracking THC competitors as they expand into CBD and watches very closely. Management is focused on a good offense against its competitors (patented genetics, differentiated and advantaged brand, relationships). Product portfolio will evolve to fill gaps in the market toward a scaled play. Will begin to launch these initiatives in Q1'21. Will roll out a brand portfolio backed by science and data and will push portfolio to take advantage of OTC and healthcare.
Silence before earnings is always ominous, but I prefer the silence over you talking out of your ass. According to Alexa and Iq web rankings, Charlotte's website traffic has almost doubled since May - with July's Brightfield Research report asserting the importance of growth in e-commerce, this is a hopeful sign for earnings. The awarding of B-Corporation status coinciding with the opening of their new distribution facility is very positive as well. Remember, May's Q1 earnings took place amid negative industry sentiment after CVSI set a "blistering pace" with their awful earnings, but our stock price still rebounded sharply from average earnings … at least this time YCBD had positive growth with their e-commerce, so it can be done ...
Thank you for sharing, this report is very eye-opening. Btw who the hell are Global Widget?
How large are your bags that you have to come over here? 8% down dammmmmmn, and I see the MSOS Cannabis ETF investing in us to the tune of 4% ... funny, I don't see your company there. The Brightfield report is certainly full of valuable predicted information, too bad they "predicted" a revenue of 11.4 million for you ... plus or minus 6 million ha ha ha. Don't give yourself another stroke.