Cannabis stocks are witnessing the dawn of their second boom in the aftermath of Joe Biden’s presidential victory, and we’ve only just seen the beginning ...
Aurora Cannabis Inc. (NYSE:ACB) went from $4.43 on November 4th to $11.21 on November 9th.
Canopy Growth (NYSE:CGC) shot from $19 on November 4th to almost $25 five days later, in a run it hasn’t seen since the first cannabis boom of 2018.
Tilray (NASDAQ:TLRY) surged from $6.00 on November 4th to over $10 on November 9th.
And there will be more where this came from as U.S. states line up in a renewed legalization drive on a ‘blue wave’.
Now, the legal marijuana market is on track to reach as much as $73.6 billion by 2027, according to Grand View Research.
The only thing missing right now is the difference between a multi-billion-dollar market and a potential trillion-dollar market.
It’s cannabis data. The biggest marijuana gold mine there is.
The one thing that stands to secure the real science behind medical cannabis …
The one thing that could potentially help shave millions of dollars off the costs of getting new pharmaceutical drugs approved …
The one thing that could put Big Pharma on a brand new spending spree.
The one thing no one thought of -- until now.
This is where cannabis, pure science and big data come together at the potentially most lucrative point for medical cannabis--and much more.
Led by CEO Doug Chloupek, Juva Life is a California-based, vertically integrated company that has an entire ecosystem of six divisions, including Juva Cultivation, Juva Research, Juva Manufacturing, Juva Distribution, Juva Retail, and Juva Delivery.
Juva is working with top scientists to create a unique research database that will--for the first time ever--show consumers, manufacturers, doctors, natural healthcare providers and Big Pharma exactly which natural health products really work, for which health problems.
This is where natural health products get put on a sound scientific foundation, thanks to Juva.
And its unique database could easily make it a juicy acquisition target for Big Pharma.
The End of Medicinal Cannabis Confusion?
Consumers lack the basic information they need to make informed decisions about medicinal marijuana products.
In fact, as of this time last year, a study revealed that nearly 40% of Americans did not even know the difference between CBD and marijuana.
Another 70% surveyed weren't sure if the products on the market were safe.
It’s also a pioneer in another way: It’s the only company that can unlock the complex chemistry of cannabis to efficiently bring evidentiary consumer products to market.
In other words, this is where consumers get knowledgeable for the first time.
It’s where the online snake oil salesmen are overtaken by proper science and pioneering biotech experts.
It’s where consumers finally get exactly what they need.
Juva is about to take the guesswork out of medicinal cannabis, making the product more attractive for current users and accessible for new customers.
It’s also where clinicians will get a cannabis advantage.
Clinicians are interested in being able to further explore natural bioactives, but they need higher evidentiary standards to fully jump on board.
That’s exactly what Juva aims to provide.
But that’s now all it will do ….
A Boon for Big Pharma
Juva’s big data system for cannabis combined with its biotech prowess aims to create an entire life science ecosystem … and one that is, for the first time in this industry’s young history, efficient.
Juva’s state-of-the-art technology platform won’t just help the industry find its footing and consumers find a heightened level of confidence and efficacy, it will also present a valuable licensing opportunity for Big Pharma.
One of Big Pharma’s biggest problems is the mountains of money it costs and time it takes to get new pharmaceutical drugs approved.
Juva’s research protocols, already approved by the Western Institutional Review Board, could speed up the process for Big Pharma dramatically.
That’s something investors like to hear.
The multitude of opportunities in the cannabis, medical marijuana and CBD sectors are attractive in their own right …
But if you add a potential tie-in to Big Pharma and a company sitting on the leading edge of data-driven technology, you get something even more attractive: You get a potential target for acquisition.
This is the biggest thing to happen to cannabis since Canada legalized it for recreational purposes on a nationwide level in 2018.
That was the first boom.
The second boom is all about science, big data and boosting market share and Juva is leading the way, with investors potentially eyeing first-mover advantage as Phase 2 of the cannabis push kicks off.
Big Pharma is hot on the trail of cannabis. It fully intends to compete on this front, and Juva is an exceptional tech-driven bridge between the two sectors, with a database on medical cannabis.
Once unleashed, that proprietary database could launch a heated scramble for the real cannabis gold mine.
The unleashing starts now, with Juva’s recent IPO.
Aurora Cannabis is one of the biggest names in the burgeoning marijuana sector. With a market cap over $1.29 billion, Aurora has carved out its position as a leader in the industry. Over the past couple of years, Aurora has completed a number of high-profile takeovers, including the buyout of CanniMed and MedReleaf. And the company is still making moves.
Recently, Aurora closed a $173 million public offering to fund new growth opportunities in the sector, selling 23 million shares at $7.50 per unit. And the timing is perfect as a number of U.S. states have just approved new regulations surrounding medical and recreational cannabis use.
Though Aurora had a tough year in the market, seeing its share price fall 67% from $21.96 to $7.06 at the time of writing, the decline does present an opportunity for investors looking to gain exposure to the budding cannabis market as positive sentiment slowly begins to return to the sector.
Contrary to Aurora, Canopy Growth has had a pretty stellar year. Though the company posted a lost in year-over-year revenue, its stock price has remained resilient thanks to its big-name partnerships. In fact, just this year, beverage giant Constellation Brands, increased its stake in the cannabis producer to 38.6%
Bill Newlands, president and CEO of Constellation Brands explained, "While global legalization of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial. Canopy is the best position to win in the emerging cannabis space and we are confident in the strategic direction of the company under David Klein and his team."
In another headline-grabbing partnership, Canopy Growth recently announced the launch of Martha Stewart CBD edibles. The collaboration includes a 60-count box featuring 15 season flavors including Passionfruit, Calamondin, and Quince. The box retails for $64.99 and is already available for purchase on Canopy’s website.
Thanks to these strategic moves, Canopy has seen its share price jump from its March low of $10.37 to today’s near-yearly high of $24.04, representing a 131% increase for investors who jumped in at the right time. And as bullish news continues to mount for the emerging industry, Canopy will likely be one of the biggest benefactors.
Tilray Inc. (NASDAQ:TLRY)
Tilray is another leader in Canada’s cannabis industry. With a near-billion-dollar market cap, Tilray is well-positioned to benefit from the ongoing wave of legalization – both medicinal and recreational – in the United States. Following the recent elections, five more states voted to legalize medical or recreational cannabis, and Tilray is optimistic that other states will follow.
CEO Brendan Kennedy noted, "Adult-use legalization in New Jersey is likely to have a domino effect on the states of New York, Pennsylvania, and Connecticut, as elected officials are worried that their residents will go to New Jersey to purchase product and thereby not generate tax dollars in their home state.” Kennedy also noted that the pandemic could act as a catalyst in speeding up legalization, as well.
Though Tilray’s financials took a hit, as did most of the stock market, due to the COVID-19 pandemic, its most recent earnings report was a lot milder than expected. While it still posted a loss, it was significantly less than Wall Street had expected. As a result, the company’s share price has mostly stabilized after its dramatic March decline.
Following its July slump, Cronos Group has seen a surge in trading volume, with a renewed investor interest which has also been reflected in its share price. Since September, the company has seen its share price jump from $5.04 to a price of $7.23 today. That’s a 43% return in just two months. Not too shabby.
The Canadian firm, though primarily an equity investor, has made some major moves in recent years, wheeling and dealing with some of the hottest names in the sector. Because of its forward-thinking attitude, it has drawn the attention of many major mainstream players, including the company behind Marlboro, Altria Group, which purchased a 45% stake in the company in 2018 for a total of $2.4 billion.
Despite the relatively tough year, new president and CEO of Cronos Group, Kurt Schmidt remained optimistic, noting in the most recent earnings call that “Our [Cronos Group] value will come from technology breakthroughs and branded sales that will help establish relationships with our consumers. There's top-tier talent across this organization and I'm excited to lead this impressive team into the next phase of growth.”
Aphria, currently valued at just over $1.9 billion, is a giant in the industry. The Ontario-based cannabis company has operations in more than 10 countries and distributes medical cannabis across the globe. Thanks to its big-picture approach to the industry, Aphria has been able to thrive while many of its peers have stumbled.
Recently, in anticipation of wider U.S. legalization, Aphria entered into a $300 million deal to aquire SweetWater Brewing, one of the biggest craft beer brewers in the United States. The purchase aims to help Aphria capitalize on the growing “lifestyle” market associated with both craft beer and high-end cannabis.
Aphria Chairman and CEO Irwin Simon noted, “We will establish and grow our U.S. presence through SweetWater's robust, profitable platform of craft brewing innovation, manufacturing, marketing and distribution expertise. At the same time, we will build brand awareness for our adult-use cannabis brands, Broken Coast, Good Supply, Riff and Solei, through our participation in the growing $29 billion craft brew market in the U.S. ahead of potential future state or federal cannabis legalization.”
By. Nikki Pulver
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