CV Sciences Returns to Profitability
The cannabis industry is experiencing impressive growth in the last two quarters of 2018. In this regard, CV Sciences returns to profitability after many months of losses. However, there seems to be concerns by investors regarding the integrity of its financials.
In its financial results for the third quarter of 2018, CV Sciences reports record sales. Interestingly, the strong performance comes from the cannabidiol (CBD) products.
According to the company, it is doing excellent on the hemp/CBD products it launched. Further, the company reveals that it is expanding into the natural products sector and is setting up a retail line. Interestingly, the company’s branded products are performing well. This underscores the company’s ability to set up new sales channels.
The latest financial results indicate the company is reaping the rewards of the expansion into all sales channels. Interestingly, the company posted $13.6 million in sales. This represents a 143% increase from the same period last year.
On the other hand, the firm reports a quarterly increase in sales which sustains at the rate of 10% quarterly. Specifically, the company insists that the rosy numbers are as result of increases retail channels for natural products. As at now, the company controls 2,093 retail locations across the country.
However, even as CV Sciences returns to profitability, technical analysis of CV Science may indicate an oversold situation. Williams Percentage Range is a good place to start when determining the oversold or overbought situation. Currently, the 14-day Williams Percentage Range for CV Science Inc (CVSI) stands at -89.71.
Usually, a value in the range of 0 and -20 indicates that the shares are overbought. On the other hand, values in the range of -80 to -100 suggest an oversold case. Therefore, it is safe to state that the company’s shares belong to the oversold case. Basically, the Williams Percentage Range, pioneered by Larry Williams, might be considered the opposite of the Fast Stochastic Oscillator.
Interestingly, the cannabis industry is growing rapidly especially after Canada legalized the products. As a result, business is booming. Further, some firms are taking extra steps in incorporating Bitcoin into their business models.
Bitcoin to Boost Business
As the CryptoCoinReporter reveals, Telegrass, an Israeli cannabis marketplace is accepting Bitcoin. Interestingly, the entity revealed that customers who pay via the cryptocurrency would receive discounts on their products.
“Telegrass claims that it is committed to the legalization of cannabis in Israel. The community has a telegram network which connects buyers to sellers, enables merchants to list their products and expand their market,” the CryptoCoin reporter further details.
However, some knowledgeable observers allege that some companies are riding the cannabis boom while cooking financial data. Particularly, they argue that CVSI could be culpable for presenting untrue financial reports, especially for Q2 of 2018.
Also, the observers question the character of the founder of the company who they say has a previous fraud judgment.