CWBHF - Why It May Be Time to Sell Charlotte's Web
Charlotte's Web (OTC: CWBHF) stock is up by about 40% in the past month -- which is far better than the Horizons Marijuana Life Sciences ETF (OTC: HMLSF) has performed during that time, with returns of about 20%. The hemp company's gotten a boost from its first-quarter results, which it released on May 14. And while the stock may be seeing some bullishness of late, it may not last. Here's why it could be a great time to sell shares of the company today.
In Q1, there really wasn't much of a reason for investors to get excited about the company's path. Revenue of $21.5 million was down 1% from the prior-year period's $21.7 million. Meanwhile, the Colorado-based company's expenses have continued to rise. Operating expenses climbed 77% from a year ago, and that led to Charlotte's Web incurring a loss of $11.5 million in Q1, compared with a profit of $2.3 million the year before. It was the third period in a row in which the company landed in the red.
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