Can B Corp (OTC:CANB)- As CBD And Cannabis Become More Mainstream, Can B Corp Is Set To Benefit

As CBD usage becomes more in demand and widespread, Can B Corp (OTC:CANB) is a company primed to grow.

  • 2020’s election night was a tipping point for easing CBD regulations and legalizing cannabis.
  • A Biden presidency could send CBD and cannabis stocks soaring
  • The global CBD market is forecasted to grow at around 52.7% CAGR between 2020 and 2026, while the U.S. CBD market has an forecasted CAGR of 107% through 2023[1].
  • CBD could be a revolutionary treatment for COVID-19 lung damage[2]
  • With CBD’s upside, Can B Corp’s (OTC:CANB) stock is shockingly cheap.
  • Can B surges on good news, and has a strong gross profit margin, solid short-term solvency, and attractive short-term technicals

How many times have you heard that “2020’s election is the most important election of our lifetime?” Sure, it has been a very pivotal election for a variety of reasons. We are still in the middle of a pandemic, and the country has never been as divided as it is now. While the counting of the ballots appears to be winding down, it appears that Joe Biden will eventually win the presidency- despite the controversies. However, the biggest winner on election night was cannabis and CBD.

What Happened On Election Night?

Measures to legalize cannabis and decriminalize other drugs won the most clear cut victories on election night. Arizona, New Jersey, South Dakota, Montana and Mississippi all legalized some form of marijuana use, while Oregon became the first state to decriminalize possession of small amounts of harder drugs. According to Avis Bulbulyan, CEO of SIVA Enterprises, “this is a tipping point for drug policy absent any federal reform[3].”

Although Joe Biden has not officially been declared the winner yet, he is expected to win the presidential nomination. Biden and the Democratic Party are considered to be considerably more marijuana friendly than the opposition. While the broader market has rallied post-election, cannabis and CBD related stocks have surged by over 4 times the amount than the markets. Just take a look at the returns of a comprehensive cannabis related ETF this week- the ETFMG Alternative Harvest ETF (MJ)[4].

In the last 5 days alone, this ETF surged by over 32%.

However, while the sentiment is optimistic for cannabis due to election night, there is a potentially larger growth trend within the cannabis surge- CBD.

What Is CBD?

In short, CBD is THC’s (the active component found in cannabis) cousin. CBD stands for cannabidiol, and is the second most prevalent active ingredient in cannabis. CBD is an essential component of medical marijuana, and is derived directly from the hemp plant. CBD provides relief for anxiety, depression and post-traumatic stress disorder, and can be taken as an oil, edible, lotion, or more. But what has made CBD so widely accepted and adopted is that does not have psychoactive effects.

New York’s New Laws Could Mean Even Bigger Things For CBD

While CBD’s cousin garnered most of the attention on election night, CBD may have quietly had an even bigger night. New York State just passed new laws easing regulations on hemp extracts that could serve as a model for future state or federal action. New York State’s new regulations are the first of its kind in the nation, allowing higher THC limits in hemp extracts. This will make the CBD extraction process considerably easier and permit more widespread sales since THC temporarily rises above the allowable 0.3% limit during extraction. New York State has also set their own standards for ingestible CBD that can go into food and beverages, and has made it considerably easier for CBD to be included in consumer products.

Joy Beckerman, a hemp consultant, believes that New York’s new CBD laws will inspire other regulators and even the U.S. Food and Drug Administration. “They understand that in the absence of the FDA taking the reins and creating a framework, that somebody is going to have to sort of lead the way,” Beckerman said[5]. “That could essentially become a template for the FDA,” she said.

CBD Has Already Been Surging…But It’s Nowhere Near Its Peak

Because of the increasing acceptance and widespread usage of CBD, the global CBD market is expected to skyrocket. In fact, according to a new report from Global Market Insights, the CBD Market size exceeded USD 2.8 billion in 2019 and is set to grow at around 52.7% CAGR between 2020 and 2026, with a global market valuation exceeding $89 billion by 2026[6].

A different report focused specifically on the U.S. market, makes an even more bullish call on CBD through 2023. According to predictive analysis and market research company Brightfield Group, CBD will see a product sales growth in the United States of 706% through 2023[7]. Additionally, the report notes that CBD revenue was only about $620 million in 2018. As this revenue is forecasted to grow to $23.7 billion by 2023, this nets a CAGR of 107%[8]. While cannabis garners most of the attention, cannabis’ CAGR of around 25% over the same time period pales in comparison.

CBD Could Contribute To Treating COVID

While the world continues to be on edge regarding COVID, CBD could actually be a potential treatment for the pandemic. As the world continues to anxiously wait for a vaccine or widespread treatment, the Medical College of Georgia completed a study over the summer involving CBD that produced staggering results.

According to the study, CBD appears to reduce the “cytokine storm” that damages the lungs and kills many patients with COVID-19 through increasing the levels of a natural peptide called apelin. Apelin is known to reduce inflammation, and patients who have died from COVID have a noticeably lower level of apelin after experiencing the “cytokine storm.” The study showed CBD’s ability to improve oxygen levels and reduce inflammation and physical lung damage. Apelin levels in the test were noticeably normalized while lung functions stabilized. In fact, levels of apelin dropped close to zero in their adult respiratory distress syndrome (ARDS) model and increased 20 times with CBD[9].

More work is needed, including researching how CBD produced these groundbreaking results. Additionally, wide scale human trials need to happen first before it should be seen as a treatment for COVID-19. But the results are quite encouraging. Exposure to CBD companies now before the cannabinoid gets widespread approval as a treatment for COVID could offer exciting upside.

Can B Corp (OTC:CANB)- A Shockingly Cheap CBD Company With Tremendous Pop

This type of environment is perfect for CBD companies such as Can B Corp. There are less and less restrictions on CBD’s sale and usage by the minute. Furthermore, investors know that with a projected Biden presidency, the restrictions could become even looser. It’s simply what the people want- look what happened on election night when cannabis was on the ballot. In fact, even before election night, a Pew Research Center survey found that 67% of the US supports legalization[10]. People are also seeing that CBD has significant health benefits, including with COVID. Which all makes Can B Corp even more attractive as a cheap entry point into the CBD sector.

Can B is a health and wellness company that provides CBD products in the form of oils, creams, moisturizers, isolate, gel caps, spa products, and concentrates to help with pain, insomnia, epilepsy, anxiety, inflammation, and nausea. But why Can B instead of a different stock, or a marijuana ETF just to get some kind of exposure?

The simple answer is Can B is such a cheap way to enter the CBD industry, with a mouth watering upside. The company is trading at only $.50 a share, and appears to be the perfect way to get in on the ground floor as demand for CBD is nowhere even close to the peak. In fact, demand is only now just beginning to truly increase. As many retailers are finding it impossible to keep up their supply with the demand for CBD, companies like Can B are set to reap the benefits.

It Is A Successful CBD Company That Is So Much More Than A CBD Company

Can B is known as a health and wellness CBD company. That is who they are at their core, they are well known for this, and they are very successful at this. They already have well known CBD brands such as Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil, Pure Health Products, and Green Grow Farms. Can B also uses a greatly effective multi-channel distribution channel to reach consumers, including medical facilities, doctors offices, retailers, online and direct.

Can B though is so much more than just a CBD provider. They are now providing nutritional supplements and medical devices.

Can B’s Superfoods brand is a new line of nutritional supplements for consumers that use the finest ingredients such as Goji, Cacao, Maca, Chia, Flax, Lecithin, Matcha Green Tea, Yerba Mate’ & Vegan Probiotics[11]. Additionally, they have partnered with Dr. Karl Zarse in launching ImmuneX2. This ImmuneX2 collaboration with Dr. Zarse is generating a lot of excitement as a super immune boosting AM/PM supplement. Expected to ship by the end of November, ImmuneX2 consists of a physician-developed immunity optimization formula and uses a proprietary customer blend focused on immune system optimization[12].

But what’s really exciting investors is Can B’s Duramed line. Duramed combines medical devices with CBD, and provides wearable bioelectronic devices for the delivery of sustained acoustic medicine (SAMs). This product is so ahead of its competition though, because the SAM Pro 2.0 is the first and only FDA cleared wearable low intensity ultrasound device that delivers multi-hour treatments to accelerate healing and improve function for musculoskeletal injuries (muscle, tendon, ligament) and reduce chronic pain (without opioid pain medication)[13].

Can B Surges On Good News

With a market cap of nearly $1.88 million, Can B Corp. is a nano-cap stock. While that may signify volatility, and scare off certain investors, the tailwinds are too attractive to ignore with a stock this cheap, with that small of a market cap. There are simply too many once in a generation macro-level opportunities in the CBD space that offer so much upside for companies such as Can B Corp. The company has only 4.83 million shares outstanding, and a 79.8% float shares to outstanding shares ratio. The float is the number of shares actually available for trading, while shares outstanding are all the shares that a company authorizes and issues, and are purchased by investors. This ranks in the 57.7% percentile for the healthcare sector, and is above the average rate of 70.6%.

This level means that the company, while it experiences volatility, surges on good news and any news regarding the ease of cannabis restrictions. As said earlier, cannabis stocks have surged this week due to the legalizations that passed on election night, and the projected Joe Biden victory. Remember that cannabis ETF that surged by nearly 32% this week? The Can B stock surged by nearly the same amount… TODAY[14].

In the last 5 days alone, the stock has also surged by nearly 38%.

This is only the beginning though. As the fallout from the election continues to stabilize, and CBD and cannabis become more widely accepted and legalized, the slightest bit of positive news will send shares surging vertically.

Gross Profit Margin, Short-Term Solvency, And Short-Term Technicals Are All Attractive

This is not just any penny stock that is simply a speculative gamble. This is a company in a growth industry trading at a grossly undervalued price with some actual fundamentals and technicals to back it up.

The company first and foremost has a gross profit margin of 89.3%. This is a phenomenal ratio especially when compared to its average gross profit margin of 75.4% for fiscal years ending December 2015 to 2019[15]. This figure also dwarfs that of the broader healthcare sector and many of its top competitors as well[16].

Furthermore, Can B is more than capable of meeting its short term obligations. The company has a current ratio of 2.1x and a quick ratio of 1.2x meaning that it has nearly 2 times more current assets than it has short term liabilities, and that the company has more than enough cash, short term Investments, and accounts receivable to pay off its current liabilities. These are very strong fundamentals for a perceived penny stock. But this isn’t where the strong short term outlook ends either. According to barcharts, Can B has strong short term technical indicators with respect to the 20 Day Moving Average.

To Sum It Up….

At such an astoundingly cheap price, Can B Corp (OTC:CANB) offers enticing opportunities to not only chase the increase in cannabis legalization, but expose yourself to the most lucrative high growth sector of it- CBD. As the demand for CBD rises, and it becomes more accepted and embraced for its health benefits, companies such as Can B are becoming more in demand in order to keep up the supply. Additionally, because the demand for CBD is so high right now, the political situation has only spurred on the rally. Remember- Can B’s stock, in just one day, surged almost as much as the cannabis ETF did in one week. The company has a limitless upside on top of its small float. When there is good news, the stock increases quickly, the stock rises quickly and explosively. Additionally, its gross profit margin beats the broader healthcare sector, it is more than capable of meeting its short term liabilities, and its short term technicals show promise. As the fallout of the election continues, the near term future for CBD stocks such as Can B look very bright.

For these reasons, I see…

12 Reasons Why Can B Corp (OTC:CANB) Offers The Most Bang For Your Buck In Exposure To CBD

  1. CBD Was The Biggest Winner On Election Night: Neither the Republicans nor the Democrats were the biggest winner on election night. Rather it was cannabis and CBD. 5 states legalized some form of cannabis, and Oregon decriminalized all recreational drugs.
  2. New York’s New Laws Could Be A Template For The FDA: New York’s new laws easing the restrictions on CBD could likely become a template for the FDA.
  3. CBD Has Surged With More Room To Run: The global CBD market is forecasted to grow at around 52.7% CAGR between 2020 and 2026, while the U.S. CBD market has an forecasted CAGR of 107% through 2023.
  4. CBD Could Be Used As A COVID Treatment: As the world continues to wait for a COVID-19 vaccine, CBD has shown very encouraging clinical results as a potential COVID-19 treatment. CBD appears to reduce the “cytokine storm” that damages the lungs and kills many patients with COVID-19 through increasing the levels of a natural peptide called apelin
  5. Can B’s Cheap Stock Price Offers A “Ground Floor” Opportunity: The growth potential of CBD, combined with Can B’s cheap stock price, poses an opportunity to get in on the ground floor of the CBD boom.
  6. Diversifying Into Other Growing Industries: While Can B’s core competency is as a CBD company, they have also branched out into nutritional supplements and medical devices.
  7. Its Duramed Line Has The Only FDA Approval Of Its Kind: Can B’s Duramed is the first and only FDA cleared wearable low intensity ultrasound device that delivers multi-hour treatments to accelerate healing and improve function for musculoskeletal injuries (muscle, tendon, ligament) and reduce chronic pain (without opioid pain medication).
  8. Stock Surges On Good News: With its small cap and small float, the stock surges vertically on good news. In fact, today alone, it surged by almost as much as a cannabis ETF did in a week.
  9. Its Gross Profit Margin Is Strong And Has Trended Upwards: Can B’s gross profit margin of 89.3% at face value is strong. But it seems even stronger when noting that it’s nearly 14% higher than its average gross profit margin of 75.4% for fiscal years ending December 2015 to 2019.
  10. Its Gross Profit Margin Also Beats The Competition’s: Can B’s gross profit margin is over 35% higher than the broader healthcare sector, and better than many of its closest competitors
  11. Able To Meet Short-Term Obligations: Can B has a current ratio of 2.1x and a quick ratio of 1.2x meaning that it has nearly 2 times more current assets than it has short term liabilities, and that the company has more than enough cash, short term Investments, and accounts receivable to pay off its current liabilities.
  12. Bullish Technical Indicators: Can B’s 20 Day Moving Average indicates strong short term technical indicators.

[1] https://www.prnewswire.com/news-releases/us-cbd-market-projected-to-grow-at-107-annual-average-cagr-through-2023-300893763.html

[2] https://scitechdaily.com/cbd-helps-reduce-covid-19-lung-damage-by-increasing-levels-of-protective-peptide/

[3] https://www.nbcnews.com/politics/2020-election/tipping-point-psychedelics-cannabis-win-big-across-country-election-night-n1246469

[4] https://yhoo.it/3euQr8c

[5] https://hempindustrydaily.com/should-broad-spectrum-cbd-be-defined-what-about-isolate-nys-new-extract-rules-could-be-model-for-nation/

[6] https://www.streetinsider.com/Globe+Newswire/Hemp%2C+Inc.+Praises+Five+New+States+to+Legalize+Marijuana+for+Recreational+andor+Medicinal+Use/17560570.html

[7] https://www.prnewswire.com/news-releases/us-cbd-market-projected-to-grow-at-107-annual-average-cagr-through-2023-300893763.html

[8] https://www.prnewswire.com/news-releases/us-cbd-market-projected-to-grow-at-107-annual-average-cagr-through-2023-300893763.html

[9] https://scitechdaily.com/cbd-helps-reduce-covid-19-lung-damage-by-increasing-levels-of-protective-peptide/

[10] https://www.pewresearch.org/fact-tank/2019/11/14/americans-support-marijuana-legalization/

[11] https://canbsuperfoods.com/about-the-superfoods/

[12] https://finance.yahoo.com/news/b-corp-partners-dr-karl-100000152.html

[13] https://apnews.com/press-release/globenewswire-mobile/access-to-health-care-health-diagnosis-and-treatment-diagnostic-imaging-ultrasound-e2ebe01f6d2e65dcea8a37c03c168629

[14] https://yhoo.it/3k5SHnw

[15] https://finbox.com/OTCPK:CANB/explorer/gp_margin

[16] https://finbox.com/OTCPK:CANB/explorer/gp_margin

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