Date : November 13, 2018
New Opportunity: Potnetwork Holdings Inc. (OTCMKTS: POTN)
Keep in mind that, when we speak of this stock (POTN), we are dealing with something we know quite well: We called it as a bullish setup in late 2017, and watched it rise nearly 2,000% in a few weeks. It was a stunning run.
Now, we see another interesting setup in the name and want to get it back on your radar. Why? Three main points.
First, the growth in the CBD space may be the most explosive market phenomenon in play right now. The CBD Oil market is set to grow over 700% between now and 2020, becoming in its own right a $2.1B sub-industry of the $20B overall cannabis sector. That’s from Forbes.
Second, the technicals suggest a new consolidative base is in its final stages, with primary support in the $0.18 – 0.20 area, well above its “take-off” point around a nickel in November.
And third, because we are seeing some great signals from management.
Company: Potnetwork Holdings Inc.
Latest News: http://finance.yahoo.com/q/h?s=POTN+Headlines
Company Website: http://www.potnetworkholding.com
Who is POTN
Who is POTN
Potnetwork Holdings Inc. (OTCMKTS: POTN) is a publicly traded company that acts as a holding company for its subsidiaries including First Capital Venture Co., the owner of Diamond CBD, Inc. – which is the real key asset here.
As noted above, the company’s CBD segment is registering massive and accelerating growth. As a case in point, the company just announced sales of $18.1 Million for the first 9 months of this year, realizing an $8.6 Million increase in year over year sales. This follows the Company’s recent announcement of its record third quarter revenues of $6.1 Million.
That’s a 90% year over year jump in overall CBD sales.
According to company materials, Diamond CBD focuses on the research, development, and multi-national marketing of premium hemp extracts that contain a broad range of cannabinoids and natural hemp derivatives. Diamond CBD’s team consists of hemp industry pioneers and natural product experts, chemists, and scientists, dedicated to producing the finest and purest cannabidiol oils.
The result is a robust selection considered among the most powerful natural CBD oils and E-Liquids found anywhere. PotNetwork Holdings Inc. is committed to growth by the expansion of its subsidiaries and the strategic acquisition of additional businesses.
Moreover, the company is expanding its product offerings and expanding its geographic reach as the marketplace continues to provide it with clear confirmation that POTN is producing with market-dominant execution in terms of both design and marketing strategy.
POTN has been racking up the big catalysts of late. One of the most interesting moves is the company’s announcement that it is preparing to list its common stock on the Canadian Securities Exchange. The company has engaged Canadian securities counsel to assist with the listing process. A CSE listing will allow the Company’s common stock to be dual listed in both U.S. and Canada.
In other words, they are opening up access to the shares to millions of other potential investors. That is rarely a bad idea, especially for a company that deals in cannabis-related end markets, especially for new investors that have demonstrated a seemingly bottomless appetite for investable access to the cannabis and CBD growth theme. Canada is the capital of Cannabis.
In addition, the company just announced that it has initiated a mobile team equipped with an inventory of displays and CBD infused edible treats and oils designed to deliver stock and launch sales through brand new vendors in untapped retail stores and congruent facilities such as fitness centers, etc., across the U.S.
According to the release, “The company most recently announced that it distributed a 25k of its CBD-infused gummy bear products to potential customers at the prestigious CHAMPS Convention held at the famed Atlantic City Convention Center this month. The company has a well-established history of tapping new markets and expanding its distribution footprint through moves like this. And the new product is set to take a new big bite out the market share pie.”
This is exactly the type of thing we like to see!
We also noted above that the technical picture is a strong signal for the stock. There’s a ton of potential here.
Shares of the stock have been doing something that technical analysts call “basing”. That’s when support is marshalled over the course of months to secure a key zone of accumulation and bidding for the so-called “smart money”. It all has be read from the charts – we don’t have any special information here. But our technical sense is that the stock is indeed Basing right now.
The zone of interest is between $0.18 and $0.20. As you will note, that is a much higher low than the beginning of this new bull market trend in POTN shares. The stock is still up almost 300% since last November. How many stocks do you know that have gone through a strong basing pattern after correcting prior gains and can still make that claim?
I’m guessing the answer to that is “Zero”. So, let’s look at the chart.
POTN (Potnetwork Holdings Inc.) has two wholly owned subsidiaries, First Capital Venture, the makers of Diamond CBD OILS and Sunrise Auto Mall Inc.
Diamond CBD is focused on the advanced research and development of “the industry’s finest premium hemp extracts” and making them available to the global marketplace. The Company’s “notable team”, consisting of hemp industry pioneers and natural product experts, chemists, and scientists, is dedicated to producing “the finest and purest Cannabidiol (CBD) oil.”
POTN’s messaging continues: “Setting the Company ahead of its competitors, First Capital Ventures Inc and Diamond CBD Inc. deliver advanced product quality to market through the team’s creation of diverse and top quality hemp extracts that contain a broad profile of cannabinoids and other natural hemp derived molecules.
The result is a robust selection of Diamond CBD Oils, made from Industrial Hemp, which enhances the formula to be considered among the most powerful natural CBD E-Liquids on the market. Sunrise Auto Mall, Inc., launched in June of 2014, as an operation geared toward enabling people challenged with bad or no credit in securing quality transportation while simultaneously rebuilding the client’s credit.
POTN has developed a highly profitable business model around the continually rising subprime lending industry. Potnetwork Holdings Inc. acting as the holding company for the present subsidiary is planning to continue to expand from within as well as through future acquisitions.”
- POTN is forming a major technical base with strong upside potential as it enters the key November period (which launched a 1900% rally last year)
- POTN is making real money, with trailing revs already coming in at $21.5M
- POTN is starting to see major topline growth, with quarterly y/y revs increasing at 79%
- POTN continues to show remarkable growth across the board, with a 90% y/y swell in CBD segment sales.
- POTN is benefitting from the 700% growth projected for the CBD Oil market segment.
- POTN is coming off an RSI trough under 30, pointing to a massively oversold stock now heading back the other way.
Last year, at just about this time, we put this stock in front of you, and it rallied nearly 2,000%. The setup may be even better this time around. The CBD market continues to boom, but the cannabis world is centered in Canada. That’s why we like to see this company getting ready to list its shares in Canada as well as the US.
Bringing in a new pool of investors is never a bad thing, especially when you can show 90% growth in a massive booming marketplace and just invested in even more aggressive sales activity.
The technicals and fundamentals both suggest POTN is worth watching at current levels.