Looking at the performance of the cannabis stocks around the world in the last 12 months, the numbers have been startling. One such index that does, the Bloomberg Intelligence Global Cannabis Competitive Peers Index, noted that the price to sales ratio moved to over 100. To put this in its proper perspective, even the likes of tech standouts Apple and Amazon only boast a price to sales ratio of 4 or 5. Cannabis investing is on the up right now.
Number of Companies in CBD Expanding Fast
The number of companies involved in producing Cannabis-derived products – usually CBD products for different markets – is expanding with over 100 listed businesses on global stock exchanges and many others operating as private concerns too.
Given that the recent performance of the listed stocks has handily beaten Bitcoin, Gold and mainstream stocks, many early adopters have moved to invest in companies that produce CBD products. Not only are their products tending to sell well, but the valuations are off the chart as investors’ excitement grows.
Names from the Retail Industry Seeing the Potential
It’s rare to observe this level of interest from both investors and customers alike. The interest is colliding with an increasing number of big players from retail and other industries getting involved with companies in this new industry. The cannabis industry has attracted some pretty impressive retail names, including Peter Horvath. People who know how to operate a successful business and bring acumen, knowledge and a desire to make a new industry work are joining up.
Of course, the increased sophistication on the operational side of CBD companies has encouraged new and potential investors who typically aren’t early adopters, but are willing to invest once the early players have merged. Indeed, that process is ongoing with numerous mergers and acquisitions happening every month within the industry as companies look to consolidate to gain significant market share.
Use of CBD Products is Growing and Diversifying
CBD products started out as a single solution with a specific delivery model. Often, buyers were looking for pain relief from aches, muscle wear and general discomfort outside of traditional medicine when paracetamol and other over-the-counter painkillers weren’t doing much for them.
Now the market is segmented into different brands which appeal to different categories of buyers. This is a clear sign of a maturing market where products aren’t targeted to all buyers but being created and refined for those who know exactly what they want.
For instance, there are now beauty products like lip balms, body washes and creams infused with CBD oil that give the human body a better chance of healing up. These types of products hold greater appeal to women who are used to buying them, but certainly men are also seeing the attraction.
With the growing interest in CBD-based retail products, sales are booming. Companies associated with the industry are getting an uplift in their valuations as a result. The good times are here.