Why is Charlotte’s Web Stock Dropping?

The cannabis industry is going through some interesting times. It’s something we touched on in our recent piece on The Paradox of Marijuana Stocks. Sales are supposed to be going through the roof, yet not all companies will be around to take advantage of the “boom” as capital dries up. The end result is a cannabis industry that collectively stagnates.

We recently drove through the Pacific Northwest doing field research on what’s going on at dispensaries. The price of edibles has gone through the roof for some reason, and the “budtenders” refuse to acknowledge this. You won’t find 100 MG of edibles under $15 USD. That’s when we learned about Rick Simpson Oil. You gotta try this stuff. Essentially, it’s a syringe loaded with what appears to be black tar heroin, but is actually a cannabis plant extract that contains 1,000 mg of THC. At a price point of $15, it’s hard to comprehend why anyone would even buy edibles.

Anyways, today we’re here to talk about another emerging trend in the cannabis industry that’s undergoing some change – cannabidiol (CBD).

CBD as an Investment Thesis

Just to bring you all up to speed on the CBD investment thesis, it’s different from the larger cannabis theme in a number of ways. CBD products do not contain THC (the good stuff that gets you high), so it’s not regulated like cannabis is but instead falls into some sort of grey area. You’re not allowed to cal