When President Biden took over the Oval Office in January of this year, there was a buzz amongst investors that industries such as electric vehicles, renewable energies, and cannabis would soon take off. Well, it has been three months and the electric vehicle and renewable energies sector have been dragged down by the recent tech and growth industry correction, and cannabis just seems like it hasn’t been a high priority for the Biden administration.
But while newer investors may confuse a temporary cycle out of growth stocks due to larger, macroeconomic factors, this by no means says that these industries are bad investments. In fact, savvy investors know to be greedy when others are fearful, and to be fearful when others are greedy.
HempFusion is gaining momentum as one of the leading CBD product manufacturers in the world
HempFusion Wellness (OTCMKTS:CBDHF) is quietly gaining momentum as one of the leading CBD product manufacturers in the world. If you haven’t heard of CBD, it is the second most active ingredient from the marijuana plant, and is often confused with THC, or the psychoactive part of marijuana that gets you high. In fact, CBD has no impact on your cognition aside from acting as a relaxing agent, and is often used to treat anxiety and stress. There are numerous health benefits with taking CBD as well, including pain relief and has been seen to reduce some of the things that lead to diseases such as cancer and diabetes.
You can see why CBD is gaining popularity, not just in America, but around the world as well. Much of the discussion around the cannabis industry has been about state legalization, but a majority of this surrounds products with THC. CBD-infused items that are oils and cosmetics with no THC are actually federally legalized by the FDA, which means that many HempFusion products can already be sold around the country. HempFusion recently dedicated itself to re-focusing its digital enterprise to allow for a much more robust eCommerce platform, something that has been elevated around the internet during the COVID-19 pandemic.
A distribution network is growing
HempFusion also prides itself on a vast distribution network that has already scaled a majority of North America and can be found on shelves in popular chains like Whole Foods, Sprouts, and Vitamin Shoppe. Now, HempFusion is about to be sold in the United Kingdom and elsewhere in Europe, where the CBD and cannabis industries are just starting to heat up. Additionally, HempFusion is also about to start utilizing Ali Baba’s distribution in China, to reach the largest population in the world.
Part of HempFusion’s popularity is its reliance on high-quality ingredients that are organic, non-GMO, and DNA-verified. The FDA has been strict on CBD products, but with these ingredients meeting the highest standards on the market, HempFusion should have no issues in receiving FDA approval, which could mean its products can hit the shelves of mainstream retailers like Walmart.
But hey, we get it, check out the ticker symbol. OTC or over-the-counter stocks are inherently risky, and most investors will just steer clear of them no matter what the company does. While HempFusion is certainly not a profitable enterprise yet, they have a remarkably clean balance sheet with more cash on hand than the debt, which is unusual for a company that is headed into hyper-growth mode.
It is also currently trading at a price to sales ratio of 52, which of course, isn’t ideal. But this ratio should fall back down to Earth as sales around the world begin to accumulate. Another good sign? The short ratio for the stock is next to nothing at 0.10%. Nobody wants to bet against HempFusion right now and neither should you. With global expansion on the horizon, and already with 46 products in stores around the U.S. and Canada, HempFusion is definitely worth a further look as an investment that is nearly 50% off of its 52-week highs.