Many Cannabis sector stocks are near lows, and many have endured massive selloffs. Picking one out of the group, like Tilray (TLRY) which is currently valued at $1.4B trading at $14 per share on the Nasdaq currently. Shares in Tilray were substantially higher just a few quarters ago the share price in Q4 2018 was over $100 and had a massive sell-off in 2019. It is clear the froth has evaporated, and those lofty multiples now only apply to companies that can demonstrate cash flow, in fact, cannabis sector stocks who plan to list are very careful to have revenue traction before they launch on any exchange.
We noted in a recent podcast with a new listing on the Canadian Securities Exchange already has a boatload of revenue, and thinks they can generate $40 million-plus from a single product line. They intend to list in Canada, Germany and Mexico.
CanaFarma Frank Barone Head of Product Development at the company talked with host Josh Lankford about how they generated $6 million in CBD sales for their Yooforic chewing gum product in the second half of 2019, and how they plan to ramp up the affiliate marketing machine in 2020. Listen to the podcast here.
Mr. Barone described the benefits of Direct to Consumer sales and has recently proven efficacy via sales of ‘Yooforic’ hemp oil, CBD infused chewing gum. The power of d2c is that sales per SKU can be driven to hundreds of millions of dollars in a single year. Frank Barone gave an in-depth understanding of d2c and how it is powering one of the fastest revenue growths in the cannabis industry.
Cannabis sector stocks have emerged from the massive 2019 sell-off, and are turning the corner as reality takes hold, and companies must sell the product, and have new product ideas in the pipeline. This is the state of the union in the sector in 2020, and stocks like Tilray will find some footing as the early leaders in the sector take some limps, but clearly it is all about revenue in the Cannabis Sector