Charlotte's Web Holdings Inc (CWBHF)

[Trulio_217]

At this point, its clear the FDA is the biggest factor limiting sales.

From the report:

Topicals account for less than 15% of our sales at independent stores that carry both our topical and ingestible CBD product lines. This indicates the potential revenue catalyst of a broad adoption of ingestible products within the FDM channel. We are prudently investing in the expansion of our production and distribution capacities as planned, ahead of anticipated FDA regulatory clarity that could enable wider adoption of our product portfolio. We remain hopeful that broad political support will help drive quick regulatory resolutions in 2020.

Competition is a constant pressure. But CW (and CVSI, for that matter) share shelf space with a limited number of companies at CVS and other large, national retailers. If you extrapolate CW's independent store figures, you can deduce that once the FDA issues regulations and companies can sell ingestible products at these outlets, you'll get a big bump in revenues from the 9000 stores where CW sells its products. Until then...

I'm pleased CW revised its 2019 forecast. Should have occurred with the last earnings report after the CFO who made the forecast separated from the company.

https://investors.charlottesweb.com/press-releases/press-release-details/2019/Charlottes-Web-Holdings-Reports-2019-Q3-Earnings/default.aspx