cbdMD Inc. (NYSE: YCBD) is a producer and distributor of cannabidiol (CBD) products in the United States. It focuses on the consumer health and wellness market with CBD-derived gummies, topical ointments, tinctures, bath products, and pet products.
In its Q2 preliminary revenue report, the company advised $9.4 million in revenue, a year over year increase of 67%. In anticipation of economic challenges related to Coronavirus, the company is on track to reduce operating expenses by up to $5 million in Q3.
Although the CBD market is likely to see lower sales volume from the Coronavirus pandemic and resulting lockdowns, there’s still a likely upside for this pick in the long term. cbdMD Inc. has invested heavily in marketing. It spends up to $5 million a year growing its brand presence, which has been effective so far. The company currently sells its products through over 5,000 retail partners. At the end of March, the business had $15 million in free cash, which will help it to weather the slow economic conditions today. Its eCommerce sales model is booming. 70% of all sales in Q2 were online.
The low price today and average estimated target price of $5.07 will appeal to bargain investors. This is one of the best penny stocks in the cannabis industry to consider.
- 1 Year Price Growth: -79.06%
- YTD Price Growth: -61.54%
- 3 Month Price Growth: -22.40%
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