CanaFarma (CNFA) trading volume continued to strengthen across multiple markets, from Canada to the German Borse, much of that is because they are a rare “cash producing” cannabis sector stock. The companies core skill set is Direct Marketing, and has had some success selling it’s Yooforic CBD Gum product, while keeping new product launches on track.
Many publicly-traded cannabis stocks are buying CBD companies to add cash flow. Leaders in the sector like Aurora (ACB) and others look to capture an expanded multiple that exists because investors are paying up hoping for legalization and a federal mandate for all weed stocks.
This keeps multiples, and (therefore) company valuations outsized. It also leads to crushing pullbacks as we have had in 2019 in the sector. But where we are in 2020 and have a changing economy in a Covid-19 world. CanFarma is a prime candidate for these accelerated multiples, and is indicative of these public company’s willingness to buy cash flow in the industry.
In recent news, the company put out a press release and talked about its upcoming plan.
The Company takes a very methodical, metrics-based analytical approach to bring products to market. By testing in a microcosm, our marketing analysts are able to decipher which channels are generating the strongest results. We then mechanically eliminate those efforts that produced at a sub-par level, make adjustments to those that provided acceptable results, and capitalize on those strategies that performed at the highest levels. We then continue to add novel tests and repeat the same methodology.
During our June through November 2019 test of the introduction of the YOOFORIC™ hemp-infused chewing gum brand, the above-described strategy yielded the following:
- “Unique Customer Count” grew an average of 75% per month.
- “Unique Customer Order Count” grew an average of 96% per month.
- Gross Revenue grew by an average of 103% per month.
David Lonsdale, CEO of CanaFarma said, “We are very pleased with the performance of our metrics-based marketing model to date and look forward to applying the knowledge gained from our initial product sales as we look to scale up our marketing and sales efforts in the future.”