The cannabis industry is arguably in better shape today than it was in 2019, and there are opportunities to buy many strong companies at a fraction of the value they were trading last year. The fast growth of the cannabis industry has sparked investor interest in CBD stocks like ERBB.
If you see a company that has the potential to exponentially grow revenues and earnings, but is still in the growth stage in which they are spending heavily on expansion, you have to take a leap of faith to buy early.
But if you wait until the money is rolling in, the share price will likely have already risen to reflect a more traditional valuation and the opportunity for huge gains will be gone. Any investor who avoided marijuana stocks over the past two years would be well served to take another look. Right now could well be the opportunity you’ve been waiting for.
About a third of CBD consumers say they will shift from brick-and-mortar stores to online to buy their products during the pandemic, according to Bethany Gomez, managing director of the Brightfield Group, a consumer research firm.
Forty-seven percent of CBD customers already had or planned to stock up on CBD and 37% of CBD customers planned to use CBD more frequently because of the COVID-19 pandemic, which means ongoing opportunities for more online sales, Gomez told Hemp Industry Daily webinar attendees in April. Before the coronavirus pandemic, 85% or goods “were bought in a four-wall physical retail environment,” said Christopher Gavigan, founder and CEO of Prima, which sells CBD-infused topicals at Sephora stores.
The growth in cannabis sales appears to have brought some relief to cannabis stocks, which have been going through a rough period.
American Green, Inc. (OTC: ERBB) became, in 2009, America’s second publicly-traded company in the cannabis industry. American Green now, with its more than 50,000 individual certified shareholders, is one of the largest (in shareholder count) in the cannabis sector, American Green’s mission is to lead the cannabis and premium CBD industry. Leveraging our team of professionals in cultivation management, manufacturing, extraction, wholesale, retail, and community outreach, we strive to develop sustainable initiatives in the cannabis-adjacent and CBD industries, laser-focused on adding company and shareholder value.
Earlier this week, the company announced that its largest smart vending machine customer, EZ Weed, has hit the ground running with their current nationwide sales team who provide dispensaries and CBD shops with the ability to better serve their customers using the revolutionary Smart Vending Kiosk developed by American Green in association with their independent technology partner, PanPacific International. EZ Weed’s current order of 20 machines are fully paid for and production is underway.
According to Richard Dow, Executive Vice President of EZ Weed, “Response to our marketing efforts has been overwhelming from so many dispensary owners who immediately see the tremendous value this specially-designed AGM Kiosk can bring to their businesses and customers. Once the highly trained team at EZ Weed connects with a business owner, it doesn’t take them long to make the decision to bring in the smartest and most efficient piece of marketing and sales equipment they’ve ever seen.”
According to Lindel Creed, American Green’s head of its vending division, “This most recent order of 20 smart kiosk units from EZ Weed makes it the largest single order our company has received to date…and that’s saying a lot because American Green began selling its smart vending kiosk over 5 years ago. It seems that the United States is finally waking up to the utility that our AGM smart kiosk brings to this segment of the marketplace.”
“We have the ability to customize the Kiosk with a wrap that matches each location’s logo and mission. In selected locations, every Kiosk creates an opportunity for American Green to display and dispense our company’s proprietary, high-quality CBD line of premium products. We have found extremely high interest from many of our kiosk customers in receiving a select vendor’s package of American Green CBD products picked especially for their customers and at wholesale prices,” concludes Mr. Creed.
Concludes Mr. Dow from EZ Weed, “We have found that there are very creative people out there in the world who are interested in the EZ Weed business model and plan to use our Automated Smart Kiosks in very unique and profitable ways. We salute all the creative thinkers out there that continue to show, even us, how many uses and opportunities there are for this Smart Vending Kiosk,” concludes Dow.
Several upcoming catalysts could catapult American Green Corp. (OTC: ERBB) shares higher. In our view, a bounce is all but guaranteed.