Is Charlotte's Web Stock in Trouble?
For a while, it looked like Charlotte's Web (OTC: CWBHF) may not succumb to the drastic fall that pot stocks have endured over the past year. After all, being in the legal hemp business has protected the company a bit more since hemp is legal federally, unlike marijuana. That's allowed Charlotte's Web to sell its products in more than 9,000 locations across the country, enjoying widespread distribution in more than 40 states.
Unfortunately, that hasn't been enough to keep the stock safe from the bears. In the past six months, the stock is down 71%, which is more than the Horizons Marijuana Life Sciences ETF's fall of 53% over the same period.
The sell-off started back in August, around the time that industry giant Canopy Growth released its ugly first-quarter results where it reported a loss of 1.28 billion Canadian dollars. Admittedly, that had nothing to do with Charlotte's Web, but cannabis stocks, even ones that are involved mainly in hemp, can often get dragged down together as investors' concerns rise for the industry as a whole.
Source Fool.com
