CV Sciences Inc (CVSI)

[playofthedivine]

CBD: Craze Or Secular Growth Story? $CVSI

Just out in Seeking Alpha
At first glance looks bullish.
Too late for me to read. Check it out.

https://seekingalpha.com/article/4276178-cbd-craze-secular-growth-story

Summary

CBD revenue is soaring but there remains doubt that it will transition to sustained long-term growth.
Since CBD has not been approved by the FDA for human consumption, it remains technically illegal in the U.S. and a looming issue.
In the midst of a meteoric rise in demand for CBD products, the top three CBD pure-play stocks were down over 50% from recent highs.
Article will attempt to clarify the current status of CBD and consider the merits of industry pure play candidates.

Conclusion

Both consumers and CBD suppliers are set to become winners in the huge growth ahead for CBD that could occur in high double-digits or even triple-digits. Due to wide consumer acceptance and broad evidence that CBD is benefiting the lives of people worldwide, as documented in hundreds of reviews and consumer testimonies, CBD is quickly going mainstream. Based on the FDA statement that followed the May 31 hearing, it is clear that the FDA has a full awareness of the moving parts, including a strong and growing consumer preference for a product that clearly provides benefits. In the Charlotte's Web Q2 conference call, management cited that 80% of consumers have an awareness of CBD and are open to try it, while CBD has a household penetration of only 7%.

While the industry will be subject to regulation, further clarification of the FDA position on CBD could prove to be a bonanza for major CBD players, paving the way for much wider adoption at the largest retailers. At the same time, regulation will purge the market of unscrupulous players that have been detrimental to consumer interests. Few industries offer potential growth prospects comparable to CBD. As the industry matures, there will undoubtedly be gross margin compression, but at much larger revenue and scale.