Has Charlotte's Web Stock Reached a Bottom?

Charlotte's Web (OTC: CWBHF) is having a rough 2020. Not only is it continuing to struggle to grow its sales amid the pandemic, but the Drug Enforcement Agency (DEA) also released interim rules on hemp processing in August, making the stock a riskier investment. Down around 60% this year, shares of Charlotte's Web are underperforming the S&P 500 and its 6% returns thus far. Even the Horizons Marijuana Life Sciences ETF isn't doing nearly as badly, falling 27% year to date.

But recently, investors have become more bullish on the hemp stock, and it's up around 20% in just the past month (both the Horizons ETF and S&P 500 were up around 5% during that time). Is this a sign that the stock has recovered, or is it a brief pause before shares of Charlotte's Web plummet further? Let's take a closer at whether now may be a good time to invest in the company.

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Source Fool.com