Results25 May 2022 18:52
Stand back and look at the bigger picture around this stock & the CBD industry in general
Last year the CBD industry was sold to investors as the next ‘big thing’, get in on the ground floor, the next Amazon, Apple & Microsoft etc, all the usual PR nonsense, sprinkle a few celebrity endorsements from Sir Beckham and Bingo the private investors were hooked
Roll forward 18 months & the reality has not lived up to the dream, the products have been generally well received by the market but nowhere near the sales volume original forecast by the company in their IPO document
Most of the original management team have left the company, the largest shareholder has recently been selling their holding, & the regulators have not been kind to the industry in general,
The upcoming results will no doubt show the company is still loss-making & still burning through its cash reserves, which at some point will need to be replenished for the company to continue trading, in the current economic environment that could be challenging.
This issue is not unique to CBX, many other quoted company’s in this segment have suffered the same fate,
Chill brands share price last year traded over 100p per share is now 2.35p
OCTP floated at 5p now stands at 0.95p
Kanabo 30p last year now stands at 3.75p
Love hemp shares are now suspended
Be very careful on these boards who you take advice from, I myself held 1m shares in this company and sold out at 7p because of my research on this company & the industry in general
Others such as Ad-Meliora who is constantly promoting this company, by his own admission, owns no share at all
I do agree there will be winners that emerge from this industry, but at the moment I feel it is too much of a risk to take to pick one out
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