Stocks

Cannabis…A Drug Store Near You

When President Donald Trump signed the 2018 farm bill with that came the legalization of hemp (which is defined as a cannabis plant with under 0.3% of tetrahydrocannabinol, or THC) and the opportunity to flood the market with cannabidiol, or CBD in drinks, snacks topical applications, etc.

NOTE: CBD is a non-psychoactive cannabis compound which promises to help everything from anxiety to pain.

This last week, Walgreens announced that they will sell CBD creams, patches and sprays in nearly 1,500 stores in select states.  This comes on the heels of CVS announcing two weeks ago, that it will sell CBD-containing topicals, including creams and salves, in eight states earlier in March.  One of those companies fortunate enough to partner with CVS was Curaleaf’s products.

Curaleaf Holdings, Inc. operates as an integrated medical and wellness cannabis operator in the United States. It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

Curaleaf made $77.1 million in revenue in 2018, but they are forecasting $400 million for 2019.  And the revenue should only increase if Curaleaf is able to expand beyond 800 CVS stores that it’s currently in.

NOTE: CVS has 10,000 pharmacy locations.

Another thing Curaleaf has going for itself is the stock is sold in the OTC market, but if they get uplisted, the stock would get even more exposure for purchase. So lets go to the charts to see where Curaleaf might be heading next.

If the weekly candle on Curaleaf can close above the previous wicks that would be good news for the Bulls.

If price a move higher, the chart suggests to go long if and when price pulls back to the daily demand at $9. Otherwise, the other buying opportunity will be at the daily demand at $5.75.

NOTE: I would prefer the level at $5.75 because it’s below the gap fill and there is more evidence of buyers and unfilled orders there.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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