The Cellular Goods share price falls. Is now the time to buy?
Our 6 'Best Buys Now' Shares Zaven Boyrazian | Friday, 5th March, 2021 | More on: CBX Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee. Get the full details on this £5 stock now – while your report is free. In the world of IPOs Cellular Goods (LSE:CBX) is one stock whose share price has been like a roller-coaster ride. From its original listing price of 5p, Cellular Goods share price shot up by 400% on its first day of trading.Since then, the stock has seen some pull-back. But is this an opportunity to add the company to my growth portfolio? Let’s take a look.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...The first UK-Listed cannabis stockCellular Goods is a provider of premium consumer products based on cannabidiol (CBD) and is the first company to be listed on the London Stock Exchange to do so.Rather than extracting CBD from hemp plants, the company uses synthetic CBD created in a lab. Why? Because the chemical supply is more consistent, ecologically sensitive, and scalable than relying on hemp plant growers.The company is launching with two product lines targeting different segments of the cannabis market. The first is a face-mask & serum, and the second is a topical roll-on athletic recovery gel. Both of these products will be manufactured by Arcania Apothecary, which will act as a contracted manufacturing organisation (CMO).The goal is to provide a premium series of products and leverage its quality to build a reputable brand over its vast number of competitors. As promising as that sounds, there are some considerable risks to consider.Risks aheadAs it stands, the company has yet to sell any of its products. Meaning it currently does not generate any revenue. Its face-mask and recovery gel are both unproven products. And considering the market is already flooded with hundreds of CBD products by household names such as Holland & Barrett and Boots, Cellular has a tough road ahead.Without any revenue, it’s difficult to judge the level of demand for its products or how sticky they will be with customers. To me, there are a lot of unknowns, and an unprofitable business with no existing revenue sources is quite a risky investment. Perhaps the realisation of this is why the Cellular Goods share price has been falling over the past few weeks.The Cellular Goods share price: time to buy?The legal UK cannabis market is still in its infancy. But its growth rates are quite impressive. In 2020, £300m was spent on CBD products. By comparison, there was only £119m spent on Vitamin-C related goods.At current growth rates, the CBD market is projected to reach £1bn in sales by 2025. That’s an average 35% increase each year.Needless to say, the sector shows a lot of promise for large returns. However, even at its current share price, Cellular Goods is just too risky an investment for my tastes.Once more information is known about the performance of its products, I’ll take another look. But for now, I think there are safer growth stocks out there that better fit my portfolio. FREE REPORT: Why this £5 stock could be set to surge The Cellular Goods share price falls. Is now the time to buy? Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you'll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Enter Your Email Address Zaven Boyrazian does not own shares in Cellular Goods. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Like this one... Simply click below to discover how you can take advantage of this. Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Zaven Boyrazian