5 Reasons Investors Shouldn't Sell Charlotte's Web After Its Q3 Earnings Miss
Charlotte's Web (OTC: CWBHF) is coming off a quarter that disappointed investors. The hemp company used to be one of the safer bets in the cannabis industry. While marijuana stocks posted mounting losses, Charlotte's Web normally turned a profit. This quarter, however, it posted a loss, sending investors into a panic, as the stock has now lost nearly half its value in just three months and is close to its 52-week low.
But investors shouldn't panic just yet; this could be a great buying opportunity. Here are five reasons why Charlotte's Web investors should hang on and why the results may not have been bad enough to justify this type of sell-off.
The big advantage Charlotte's Web has over any marijuana stock is distribution. It can ship across the country, and it has a wide reach into many national brands that aren't worried about doing business with the company since hemp isn't outlawed federally like marijuana -- even though there are still places where hemp is illegal. Kroger now has Charlotte's Web products at 1,350 of its stores across 22 states. With a broad reach and being sold on shelves in big-name chains, Charlotte's Web is setting itself up for success by being able to reach more consumers than ever before.
Source Fool.com