Cellular Goods share price has declined sharply in the past few months. After soaring to an all-time high of 29p in February 2021, the stock has collapsed by over 92% to the current level of 2.10p, bringing its total market cap to over 10.86 million pounds. This performance is in line with that of other companies in the industry like Tilray and SNDL.
Cellular Goods is a company in the CBD industry that is headquartered in the UK. It deals with products like moisturizers, face serum, and shaving moisturizers. For example, its calming after shaving moisturizer sells for 32 pounds. However, a quick look at its website shows that some of its key products are temporarily suspended, which will affect its future revenue growth.
Cellular Goods published its interim results for the half-year to February 28th. The firm said that the new CEO will increase the company’s focus on key verticals like skincare, ingestible, and after-sports recovery. The firm also launched its Look Better range of products on Amazon Marketplace, where it hopes to scale its business.
It also launched its rejuvenating cannabinoid face serum that prevents anti-ageing caused by UV-light exposure. Still, the biggest challenge is that many online advertisers have placed a ban on CBD advertising. At the same time, the Food Standards Authority (FSA) in the UK announced regulations on the sector. In a statement, the firm said:
“We are also facing significant headwinds to building growth momentum, but the building blocks to improve our performance have now been laid. As a result, I expect the benefits of our strategy to become evident from next year when we expect trading conditions to normalise.”
The daily chart shows that the CBX share price has been in a strong bearish trend in the past few months. It crashed from a high of 29p to a low of 0.93. It has moved to the 25-period and 50-period moving averages. It has moved below the important level at 5.02p, which was the lowest level on September 28th last year.
Therefore, the stock will likely continue falling as it faces major headwinds. This could see it fall to about 1p. A move above the resistance at 3p will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 09:39