Shares of Charlie’s Holdings (OTCMKTS:CHUC) have been gaining momentum over the past week with a jump of 11%, but lost 30% in the past month.
Market Reaction
On Monday, CHUC stock ended flat at $0.18 with more than 68k shares, compared to its average volume of 60k shares. The stock has moved within a range of $0.1612 – 0.1950 after opening trade at $0.18.
Earnings Recap
Charlie’s Holdings (OTCMKTS:CHUC), a key player and one of the industry leaders in the elite nicotine-based, e-cigarette space, announced its financial results on November 15, 2021, for Q3 of this year (ended on September 30, 2021). They have done well with increases in revenue, gross profit, and operating income, as compared to 3rd quarter of 2020.
Revenue has shot up by 34% to $5.2 million, while gross profit stands at $2.9 million, having increased by 31%. Operating income and net income has risen to $0.4 million and $3.1 million respectively. There have been Board changes, which are a part of the company’s move for their uplist to a national securities exchange, while uplisting to the OTCQB Venture Market is successfully complete.
Their best-selling e-liquids are in the select remaining PMTA submissions to the FDA that are still viable. Charlie’s PMTA’s cost more than $5 million and are among the most comprehensive PMTA’s in the entire industry. They are fully committed to regulatory compliance and youth access prevention, and hence are hopeful that submissions to the FDA will be recognized as distinguished and subsequently approved.
An exclusive portfolio of synthetic nicotine brand styles, flavor profiles, and innovative product formats, have been developed by the company, which aren’t subject to FDA review at present. Charlie’s 100% tobacco-free nicotine, Pachamama Disposables come under this category, and is a $100+ million market opportunity!
Key Quote
“Charlie’s has had a very productive and rewarding year thus far, as we returned to 20-30% revenue growth and operating profitability,” reported Matt Montesano, Charlie’s Holdings, Inc. Chief Financial Officer. “In recent weeks, our revenue growth has accelerated even more and our balance sheet continues to improve, putting us in a much better financial position.”
Traders Review
CHUC stock is trading below the 20-Day and 50-Day Moving averages of $0.18 and $0.19 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.46. The stock is down 30% over the past 3-month.
