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I have confidence in this share.
This trade isn’t for the nervous investor. My advice would be to steer clear if you don’t have the stomach for it.
For everyone else, if you can buy for under 20p and can hold onto your investment until October/November I think you will see a nice return on your investment.
Lots of little positive indicators. Good management structure. Inspired hires. Growth market. Kanobo is a good measure of it’s likely performance after product placement.
I’ve placed £10,000 in this share at 11.76. I’m down quite considerably but I’m not remotely sweating it. I’m very relaxed.
Good advice
Buy below 9p sell over 12p or hold for big jump in Autumn
A very honest post. I’ve about £10k in these at 10p. Not many people will admit to losses, but it’s hypothetical until you sell. There’s plenty of bull**** artists that purport to buy at the very bottom and sell that the top. I’m in it fit at least a year.
Feeling much happier, £32,000 in at an average of 16p, up until this week my average was 26p !
I have dipped back in on the lows to top up after my initial investment of £25,000 back on the first day.
I feel so much happier now.
Roll on some positive news over the coming weeks...
If José Mourinho started a new club and entered the football league at the very bottom would you bet against him reaching the top of the lower divisions in year 1? Further, if he made a signing from the premier division (think Ren) within weeks of his announcement what would you do? Would you sit it out of the sidelines and “wait and see” or would you have confidence that he knows what he is doing and over a period of time will be playing with big boys? Thus buy a season ticket? That’s what this share represents to me. The management & team they are putting in place inspires confidence.
Incidentally people in the U.K. spend as much money on their pets as they do their spouse and children. More so. We are a nation of animal lovers. This team knows what it’s doing. They’ve probably got distributors already lined up.
If the price had bottomed out at 3p I would still be “in” .... my only regret is that I don’t have more money to invest. I have a private pension and I’m seriously considering selling some of my portfolio to buy more.
Opportunities like this are rare. It’s scary as hell and I have to avoid obsessively checking the price. However, I’m very happy with my choice.
The more I learn, the more I realise I do not know:
https://twitter.com/greenhamneggs/status/1384426803700408321?s=21
This is fascinating and I wonder really how much I know about who CBX's competitors will be in 12 months' time?
If you really want to understand more about the market head over to the USA. There are loads of well written, financially astute, observational articles written. It will highlight the “highs” & “lows” of this market.
Yes it’s competitive. So is football. It’s not about the market it’s about what your bringing to it (management & product). The USP. The distribution channels & creating market share.
CBX are positioning themselves well.
Takayama, its going to be competitive. As the previous poster mentioned, look at the US. I would suggest look at Canada instead due to the full legislation rather than the 'part' that the US has. I personally don't think its 12 months, over the next 3 to 3 years a lot of new players will come in, most will not make it, or they will need big investors backing them. If you look at the big players listed in the US/Canada who is making money, 1 or 2. The rest are running big debt margins and are hoping for a buyout, its very very hard currently to raise cash from banks or private institutions etc. Hence why they listed on various markets. It is still very early days for the cannabis industry no matter what you read. The US is the real deal breaker, once they go legal on a FED level then the companies at the fore front will be the real winners.
CBX have raised a decent amount of cash, that puts them in the front with the likes of Love Hemp, have a good BoD and for the sector they are targeting puts them right at the front of the queue. The other big factor IMO will be legislation in the UK/Europe, as CBD starts to become more and more mainstream the 'law' will need to keep up, bigger costs will be involved, contracts harder to get etc etc.
Thanks Bushmaster. You're right. There is a whole world out there. But I'm guessing that CBX were probably fairly valued at 5p at the IPO. I'm not sure they're front of the queue. There are a whole load of other players here in the UK. CBX look like a small fish in the big pond. It was exciting on IPO day as it looked as they were only one of three players in the UK market, but they're not. Only one in three in terms of being a pure CBD play on the LSE. In terms of funds, I'd disagree there is any difficulty in getting funds if you've got a good business. Do you know how many times Northern Leaf were oversubscribed? And there was a £25k minimum investment! . Sorry if it sounds like a deramp. It isn't meant to be. The CBD market is expanding, but investors in here shouldn't overestimate the significance of CBX. I hope the SP goes up, but it looks an increasingly risky investment. It feels to me the enthusiasm comes from PIs hoping to make a quick buck rather than detailed understanding of the market. Listening to this podcast made me realise how little I knew compared to an experienced CBD player : https://www.share-talk.com/zaks-sunday-roast-11th-april-analysis-of-stocks-markets-by-traders-and-investors/#gs.zbshvz
Takayama, who are these other players in CBX sector? I don't understand the small fish pond comment?
I don't see ZOE as compo either, the US markets seems to ge their overall focus.
MGC, KNB you can exclude. Love Hemp are what I would call competiton for CBX, short and long term. NL I agree, 25K min from investors as you say, but not from any bank. Maybe I should of been clearer, yes you can get investors to invest, placings (I think there as a 25% discount on NL via CLN) and hence why they want to float - The cannabis industy is not like any other business, you could have the best business plan, no bank will loan you the funds currently for CBD or especially high grade THC flower, so I don't agree with that comparison. Back to NL, they want to produce flower, 'they want' and are not currently doing so for THC med cannabis, so for me there is no comparison, not saying you made that point :) They were oversubscribe, but investors are looking at them and comparing GWP, EMMAC, Tilray, that is going to be NL compo and they are a long way off from giving any of those 3 a run for their money. Not to see when they float in Q4 there won't be money made by investors.
Front of the queue comment - For their business model I think they are, who is in front of CBX, or side by side?
Bushmaster - I think you are wrong on writing ZOE off as they will be one of the major competitors to CBX. I understand your comment about the US but that is the focus for their CBD smokes and pouches which are obviously not competition. ZOE have recently been promoting their new range of products on IG which include a much bigger cosmetics range (anti-ageing creams and serums). The gift boxes that have seen sent out look great and will supposedly be on High Street shelves long before the CBX products are launched. The website hasn't been updated yet but is supposed to go live soon and will be interesting to see.
I don't see too much competition from Love Hemp at the moment - they don't seem to have a clear direction and are not really targeting the luxury market. Their new tie-up with UFC may give them a higher profile in the sports sector but will need a lot of re-branding as it's a very different market to where they currently sit.
There are plenty of other companies not listed that will be competition - Pureis is one that springs to mind amongst others.
The arena is huge and there is plenty of room for multiple players - it's important that CBX meet their launch dates and are clear with their target market and branding/marketing but I see no reason they shouldn't do well. If the link to DB continues that will always help with the publicity and keep them in the public eye.
Put me down for 40p by Christmas
I reckon Great Products ~ Great Packaging ~ Great Promotion & A GREAT CHRISTMAS
In It To Win It ...... Snooze You Definitely Lose
obstando, I take your point on ZOE. Love Hemp I am not sure, its not that difficult to white label, do some fancy packaging and take to market. The reason for my thinking on LH is due to their distrubtion chain already in place, unlike CBX and I will add ZOE to the list. UFC is one strand, they have others, will they compete in other products, I can't see why not. Pureis etc etc, there are many that is for sure. Do these companies have the cash resources to supply into major chains (I presume this is part of the CBX strategy) and keep that going, I am not sure. If we take DB on face value, the sports angle and take Sports Direct as a example stockest, the company supplying in will need to show its sitting on stock, can deliver and will put money into a marketing strategy to drive traffic to SD. We know branding in this market is everything. Plus a company like Sports Direct will want an account, 30/60 days. I would also suggest the US suppliers will not want to be financing CBX. All this takes cash flow and lots of it.
Its a big arena as you say. Will CBX and others being listed help them open doors, having decent BoD's will also help. How this impacts on non listed companies such as Pureis, Voyager etc is diffiult to judge, but there will be a negative impact for them if they are tendering for the same contracts. Having a company listed is easier to raise capital, so its easier to grow a company quicker if you start to win big contracts that are going to need finance. As you rightly suggest its down to the CBX BoD to keep to their targets and I do think this will do well long term.
Blue's rolling in, i think this is going to pop today...... 10p here we come.
bushmaster - I also take your point on LH but my concern there is that even after 3 years on High Street shelves they are not making money. They are now looking at massive expansion which is a bit like putting the cart before the horse.
ZOE have a distributor lined up but no announcement yet and are currently only selling online in the UK. In their last release they stated that the smokes will be on shelves in the UK by end of Q2 so I assume that the distribution arrangements for both will be announced soon.
Funding is critical and I mentioned some time back that there would need to be another placing here. To roll out products is incredibly costly and it would be very naive for investors not to expect a raise here before launch. LH had a recent cash raise and will be almost certainly need more before long especially with the proposed expansion in to the US and Asia.
ZOE recently announced a facility for access to funds up to $35M which at face value looks like a great deal with minimal dilution.
The non-listed companies will probably survive and do very nicely but not on the scale that those listed companies are targeting. The big money needs big investment and of course it's easier for listed companies to raise additional funds but always at the cost of dilution. That doesn't mean it's always a negative (far from it) but dilution does impact existing shareholders.
The words coming from CBX sound good so it's now down to the BOD to deliver.