3 CBD Penny Stocks to Watch in April 2020 for Price Changes

CBD Penny Stocks

There are very few industries that have been spared from the damage caused by the coronavirus pandemic in recent days. However, that does not mean that it is not the time to look at certain stocks that could do well later, and one such category of stocks is CBD penny stocks. The cannabis industry at large may have faltered over the past months, but the CBD industry has grown at an impressive pace, so it could be worthwhile for investors to take a look at some of the CBD penny stocks in the market.

The markets may be in turmoil at this point in time, but investors need to keep in mind that there is potential for massive growth in the CBD sector. The passage of the updated Farm Bill back in 2018 made industrial hemp cultivation legal across the United States, which came as a major boost to the industry. CBD is now one of the most important factors behind the growth of the medical cannabis industry, so investors could track certain CBD penny stocks in the month of April to see whether things really will take off. Here is a quick look at three CBD penny stocks that could be tracked by investors at this point.

CBD Penny Stocks to Watch: Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF)

CBD Penny Stocks

Charlotte’s Web Holdings is quite simply the biggest player in the CBD space at this point in time by capturing large portions of the market through its hemp-based CBD products.

Like other stocks, Charlotte’s Web stock has also had its share of trouble during this massive market selloff, but on Monday, the stock actually gained by 13.1% and another 185% this morning after the company made a major announcement. Charlotte's Web announced that it has acquired Abacus Health Products in a deal worth $68 million. The transaction has been done entirely in stock.

>> 3 Pot Stocks to Watch After the Recent Crash

The acquisition will give Charlotte's Web a 35% share in the hemp CBD market and make it the number one player by quite some distance. Abacus gives Charlotte's Web a major foothold on the CBD topicals space.

Moreover, the company’s retail presence will also be boosted by another 4,000 stores to take the total to 15,000. Despite the hammering received by cannabis stocks yesterday, CWEB stock emerged as a clear winner and for good reason. It could be the stock to watch out for in April.

CBD Penny Stocks to Watch: Organigram Holdings (TSX:OGI) (NASDAQ:OGI)

Investors looking for a CBD penny stock play in April could also consider having a closer look at Organigram Holdings. The company has emerged as one of the major players in the CBD market in recent times. On Monday, the company announced that it is taking steps for the safety of its employees and customers against the coronavirus pandemic.

In order to promote social distancing at this time, the company is going to lay off many of its employees. Organigram added that such a reduction in the workforce is also going to lead to a reduction in packaged goods and production. Now, clearly, this measure is also going to affect Organigram's bottom line to a considerable degree, so it is necessary for investors to keep an eye on the stock in the month of April to see how it is faring.

Back in January, the company released its financial results for the first fiscal quarter of 2020, and the performance proved to be highly encouraging.

The company produced C$25.2 million in revenue, which beat analyst estimates and accounted for 102% year-on-year growth in the quarter. Investors could put this stock on their watch lists for the coming month.

CBD Penny Stocks to Watch: Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF)

CBD Penny Stocks

In its third-quarter results, Cresco Labs revealed that it had $73.7 million in cash and cash equivalents as of September 30, 2019, while it spent only $18.7 million towards its operations in the first nine months of the year. However, it should be kept in mind that the company is based in the United States, and the ongoing lockdown there is almost certain to have an adverse effect on its bottom line.

 The company’s cash balance might not be of much consequence if its sales take a significant hit. Moreover, it is unlikely that the United States government is going to provide any relief to the cannabis industry. The coronavirus pandemic has put entire industries into a tailspin, and it is still not clear what sort of effect this will have on companies like Cresco.

This CBD penny stock is already down 75% in 2020 so far, and a better indication of its direction will perhaps be available in April.

>> Read More Penny Stock News

Featured image: Pixabay

Please See Disclaimer

If You Liked This Article Click To Share

Risks and Disclosure:

Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained on this website is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions made or suggested and the actual results.

All statements and opinions expressed are the opinions of the author and not of Potstocknews.com or its officers. The author is wholly responsible for the validity of all statements. Potstocknews.com was not involved in any aspect of the article preparation. The author was not paid by Market Jar Media Inc for this article. The author did not pay Potstocknews.com to publish or syndicate this article.

This article does not constitute as investment advice. Each reader is encouraged to consult with his or her individual financial advisor; any and all actions taken by a reader as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Potstocknews.com's terms of use and full legal disclaimer. This article is in no way a solicitation for investment. Potstocknews.com does not render general or specific investment advice. Any information on Potstocknews.com should not be considered a recommendation to buy or sell any security. Potstocknews.com does not endorse or recommend the business, products, services or securities of any company mentioned on Potstocknews.com.

Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment and possibly their entire investment. Any content on this website should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Please see our full disclaimer here for additional details before making any investment decisions.