A bearish downtrend has hit the entire cannabis sector in the last 48 hours. As such, CBWTF stock is currently down 2.16% and selling for $0.62 USD on the OTC. Let’s check in with Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF).
CBWTF Stock: What’s After April?
The month of April saw a stagnating trend where CBWTF stock found it difficult to breach the $0.70 USD mark. Shares firmly stayed anywhere between $0.60–$0.70. However, according to OracleDispatch, there is bullish potential shining:
“The stock has held strong support at the 50-day simple moving average, and could spark a fresh round of interest on a break above the key 200-day average, which is just above at about $0.70/share.”
One reason the shares may break out is recent news that its wholly-owned subsidiary, Robinsons Cannabis Inc., has been granted “standard cultivation and processing licenses by Health Canada pursuant to the Cannabis Act and Cannabis Regulations.”
CBWTF Stock: Streaming Company
As a cannabis streaming company, Auxly Cannabis Group provides investment for cannabis companies to establish themselves. Its funding allows for facility expansions, operations, and initial construction. What the company receives in exchange is minority equity interests and a cut of the cultivation production.
It’s perhaps too early to know the impact the Robinsons news will have on CBWTF stock. And the current market downtrend isn’t helping any company in need of a boost. But there is a lot of potential ahead for the low valuation here.
As a multi-faceted stock, Auxly stock offers investors the potential to see returns from many avenues. This takes reliance off of one subsidiary or one venture to keep the entire operational body afloat. However, to truly see if Auxly’s unique business model will work, investors need to give these shares time. Returns on investment won’t likely be seen this side of 2020.
Are you a CBWTF stock fan?
Featured Image: Canva