|Bid||2.5705 x N/A|
|Ask||2.5905 x N/A|
|Day's Range||2.5000 - 2.8635|
|52 Week Range||2.5000 - 9.0800|
|Beta (3Y Monthly)||1.97|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Canadian weed giant Aurora Cannabis missed on its top and bottom lines. The company posted an adjusted EBITDA loss of $39.7 million Canadian dollars which was wider than the expected loss of just over $20 million Canadian dollars. CEO and Founder of Cannabis Data Firm BDS Analytics Roy Bingham joins Yahoo Finance’s Zack Guzman and Emily McCormick, along with Strictly Cookies CFO Courtney Comstock, to discuss.
Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.
Aurora Cannabis Inc. shares plunged to their lowest prices in more than two years Friday, after an earnings report that included disappointing numbers and plans to cut spending sent analysts racing to cut their expectations for the Canadian marijuana producer.
As if pot stocks didn't suffer enough pain already, this week they took a massive beating. Canopy Growth (NYSE:CGC) fell 15% just yesterday. Wall Street sold CGC stock in droves as they hated the earnings report. It's down another 2% today in sympathy to the earnings drop Aurora Cannabis (NYSE:ACB) suffered. Year to date, the stock is down 50%, while the S&P 500 is up 25% and at all-time highs.Source: Shutterstock Today's write up is to caution against catching the falling knife in Canopy Growth stock and all the cannabis stock cohort without careful consideration.These may turn out to be falling machetes with tiny handles. And the brave bulls here could end up missing digits.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut for CGC, there could be some relief near $14 per share. The next significant level below it is $10.50 per share.The gloomy warning is is nothing against the specifics of CGC, but the segment also has massive challenges, none greater than the regulatory environment. Yes, the legalization of cannabis on some of the state levels were tremendous steps forward, but it is still illegal in the eyes of the federal government. So pot companies will continue to face this headwind for at least another year. There is no imminent expectation of a change from Washington on that. * 10 Cheap Stocks to Buy Under $10 Fundamentally, Canopy Growth stock is not cheap. It still loses a lot of money and sells at astronomical multiples of its total revenues. So it needs a massive change to occur in order to set those metrics back in line with what Wall Street investors expect from a growth company. This is a lot to ask from a company who still has an interim CEO. It is safe to say that these companies won't be on the 13-F from Warren Buffett's Berkshire Hathaway anytime soon.The thesis for cannabis applications is still viable. There is no denying that the world wants it. Mainstream companies are itching to offer cannabis infused products of all kinds. In addition to the traditional uses, edibles are already popular. Then there is the potential for "drinkables" as they are supposed to give beer and wine a run for their money. CBD-infused topicals are already very popular to an almost ridiculous level.It's not a magic potion, yet the public thinks it has healing powers for humans and pets. Unlike on Wall Street, the cannabis mania on main street is still high. It Is Not Easy to Like CGC StockCritics of the cannabis segment make valid points and it's up to the companies like CGC to prove them wrong. The legislation efforts may fade from here since the tax revenues have failed to meet expectations. The black market is still strong. It still is cheaper to trade pot through illegal venues thereby circumventing the state income.As for the reaction to the CGC earnings, the experts are still split. The fans will continue to be fans and the critics will not change sides on this report. Management missed earnings and the sellers punished the stock hard. Investors didn't care much for management saying that the challenges are short term. They also need to get the C-suite in order after a tumultuous year for them. * 7 Stocks to Buy With Great Charts The bottom line is that beauty is in the eye of the beholder for Canopy Growth stock. It has nothing going for it now so it is easy to hate on it. But this is when the pool of sellers empties out and stocks find bottoms. It's just not a hard line in the sand. Those who brave new long positions here should also use specific stops. I would prefer a test long near $14 because this is a stand out spike from mid November of 2016. It stood for a whole year before the bulls broke through it. These pivot zones usually provide support on the way down.It is important to note that last night, ACB also reported earnings and the slaughter in pot stocks continues this morning. ACB confirmed a lot of the fears. While ACB medical applications were barely up year over year, their retail was cut by a third. They also announced efforts to fortify their balance sheet and this includes cutting back on expansions. They wouldn't do that if things were looking promising. These are not signs of a growing industry. It looks more like an industry in crisis to justify its very existence. So buyers in CGC stock need to beware. Conviction in the trades here is medium at best.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post Canopy Growth Stock May Be Too Dangerous to Buy Now appeared first on InvestorPlace.
Over the last 12 months, Aurora Cannabis Inc (NYSE: ACB) stock fell by 37.45%. Bank of America Merrill Lynch's Christopher Carey reiterated a Neutral rating on Aurora Cannabis and lowered the price objective from CA$5.50 ($4.16) to CA$5. Cantor Fitzgerald’s Pablo Zuanic upgraded the stock from Neutral to Overweight and raised the price target from CA$5.10 to CA$5.85.
While some market analysts point to a blue wave being value destructive to the overall market, it could boost cannabis stocks, says CFRA's Garrett Nelson.
The marijuana company has put the brakes on much of its capital spending, part of an effort to conserve cash in order to survive until its operations make a profit.
Aurora Cannabis is the newest member of the pot-stocks earnings-miss club after reporting quarterly results that came in below analysts' forecasts. What's next for cannabis companies?
Hexo (NYSE:HEXO) stock is nearing the danger zone. Since Nov. 7, the HEXO stock price is down 10%. That's the continuation of an ongoing slide. In the last six months, the stock is down over 70%.Source: Shutterstock Some of this drop is due to investors' ongoing retreat from cannabis stocks. HEXO for the most part has not been tainted by a particular scandal. However, like all the cannabis stocks, they have yet to show a profit. And with full legalization still some time away in the U.S. (not to mention the unknowns regarding regulation), investors are backing away from this industry.However, a greater concern regarding HEXO is investors struggling to understand exactly what the company is and where it fits in the cannabis sector. And that is leading to the larger question of whether or not the company will be acquired. As I look at HEXO, I see acquisition as not only probable, but likely.InvestorPlace - Stock Market News, Stock Advice & Trading Tips HEXO Is the Goldilocks of the Cannabis SectorThe term "Goldilocks" is colloquially used to describe an economy that is not too hot and too cold. If you'll indulge me, I'm borrowing the Goldilocks word to describe HEXO. I believe that the company is in an interesting space in the cannabis sector. It's not large enough to compete with the big producers like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). However, the stock is not so small as to be irrelevant. * 10 Cheap Stocks to Buy Under $10 The cannabis sector is about to embark on a consolidation phase. As the cannabis market emerged, many companies popped up. Many have and will fail. Others, like Canopy and Aurora have a lot of cash that ensure they will be part of the next stage of the business cycle. HEXO Is Not a Significant ProducerHEXO is not a major producer of cannabis. And frankly, their attempt to increase their production capacity is causing problems to the company's balance sheet. During their 2019 fiscal year, the company purchased 25 million CAD of dried cannabis to keep up with demand. The company subsequently wrote down that purchase to 8.1 million CAD.Write-downs like that are one reason that the company continues to report steep losses even as revenue is slowing. For example, in their most recent quarter, HEXO was expecting net revenue to come in around 14 million CAD to 18 million CAD after accounting for returns and retroactive inventory adjustments. HEXO Has Some Compelling PartnershipsBut HEXO has never been a major cannabis producer. And they haven't wanted to be. Instead, HEXO has focused on trying to form partnerships to get products to market. This is presenting two opportunities for HEXO stock to grow in the short term. But it's these same opportunities that make HEXO a desirable addition for another cannabis company.HEXO has a joint venture with Molson Coors Brewing (NYSE:TAP). The venture, called Truss has a partnership to produce Flow Glow, which is essentially cannabis-infused water (albeit in miniscule amounts). But HEXO is not alone in this space. Tilray (NASDAQ:TLRY) has a partnership with Anheuser-Busch (NYSE:BUD) and Canopy has its much publicized partnership with Constellation Brands (NYSE:STZ).And in May 2019, HEXO made an acquisition of its own with its 263 million CAD purchase of Newstrike Brands. Newstrike is the parent company for Up Cannabis, a brand that is gaining traction in Canada and could provide some growth. One of the reasons HEXO made this deal was the opportunity to increase its production space. * 7 Food Stocks to Buy Now But here again, chasing production is a double-edged sword. As I pointed out above, trying to increase their cannabis supply is part of what's leading to write-downs and losses. Those losses are beating up the stock price. In fact, the 1.8 million square feet of cultivation space that HEXO gained from the Newstrike deal is currently shuttered as part of their cost cutting plan. HEXO Has a Limited Path to Growth on Its Own MeritsHEXO is an intriguing cannabis company because it looks like it's at least attempting to get its balance sheet right. But being financially responsible is not giving it the opportunity to be a major player on the production side. And it may find that there just isn't a niche in which they can find a truly competitive advantage.But they are not insignificant, and they may very well prove to be a takeover target as the industry begins to consolidate. As recently as November 2018, Hexo CEO Sebastien St-Louis announced the company was on sale for the right price. However, with HEXO stock sinking below the $2 mark, there may be no time like the present for companies who are looking to buy the cannabis firm.As of this writing, Chris Markoch did not have an interest in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post HEXO Stock Is Primed for an Acquisition Now appeared first on InvestorPlace.
Aurora Cannabis Inc. reported a 19% sequential decline in revenue, reporting sales of C$75.3 million ($56.8 million) versus C$98.9 in the previous quarter, as the company slows its expansion plans in Canada and abroad.
It's been a rough 2019 for Canopy Growth (NYSE:CGC) stock. But the launch of the company's "Cannabis 2.0" products next month could change that. Canopy and the pot space at-large could rebound if sales of beverages, edibles, and vapes live up to expectations.Source: Jarretera / Shutterstock.com But is this enough to move the needle for Canopy Growth stock? Even after a nearly 65% decline from its 52-week high, shares trade at a high valuation. Strategic partner Constellation Brands' (NYSE:STZ) multi-billion dollar investment provided a cash cushion. However, as the company burns through cash, Canopy could eventually need additional capital infusions.The pot space is betting big on "Cannabis 2.0". Does this mean its time to buy ahead of launch? Don't bet the ranch. While the shellacked share prices of pot stocks could rebound, all bets are off regarding upside.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut before we get to what will be, let's review what was. No Escaping a Terrible QuarterShares of Canopy Growth dropped to a two-year low yesterday after the company reported a weaker-than-expected $374.6 million net loss in its fiscal second quarter. It seems consumers lost interest in cannabis in the period, leading CGC to report $47.9 million in charges, including a $15.9 million inventory write-down.To be sure, net revenue in the quarter tripled YoY to $76.6 million, compared with $23.3 million in the same quarter last year, but it was off from Q1's $90.5 million.What happened? Acting CEO Mark Zekulin blamed Ontario's slow intro of pot retail stores as the biggest contributor to the miss. The province is the country's biggest market , so that's gotta hurt. He's been quite vocal with authorities about green lighting more legal locations, but it seems to be falling on deaf ears -- "Eh?"."Why it's not just happening right away, I do not know," Zekulin told BNN Bloomberg.He isn't expected to be "acting" much longer, as Canopy is reported to be zoning in on a permanent replacement for ousted co-founder and former CEO Bruce Linton.Now, as I was saying … let's take a closer look at CGC stock, and see why Cannabis 2.0 may not be enough to save the stock. * 7 Large-Cap Stocks to Give a Wide Berth Cannabis 2.0: Reality vs. Hype for CGC StockCanada legalized recreational marijuana sales last year. The "2.0" of legalization came just last month, with the regulatory green light for CBD- and THC-infused drinks, edibles and non-flower products.With Canopy's launch of Cannabis 2.0 products coming on schedule for early December, we are getting a clearer picture of the new product launches. A few weeks ago, Barron's took a look Canopy's upcoming products. The company is launching 13 cannabis-infused drinks, a line of cannabis-infused chocolate, as well as vape products.Is there demand for these products? Some 60% of cannabis users, and 80% of non-users want to try out infused beverages. With the drinks offering a low-THC buzz, they could be an alternative to alcoholic beverages like beer and wine.Cowen analyst Vivien Azer is bullish about Cannabis 2.0's impact on the industry. She projects these products could produce $2.3 billion CAD ($1.7 billion) in annualized sales by next year. But will this translate into revenue growth for Canopy? The company faces heavy competition in the beverage, edibles, and vapes space. Competitors like Hexo (NYSE:HEXO) have beverage launches of their own. Meanwhile, in its earnings report, the company said it used $404.7 million in cash, mostly for its operations, along with the construction of its manufacturing and beverage production facilities.While beverages are a big part of the Canopy Growth stock story, the company is pursuing other growth opportunities. Recently, Canopy announced a partnership deal with Drake. But this celebrity "cannabis wellness" venture may not be a slam dunk. Canopy's past celebrity partnerships have failed to pay off. These sorts of deals are good PR, but probably won't move the needle.Regulatory red tape remains a big headwind. A lack of retail locations makes it tough for companies like Canopy to unload swelling inventories. There's a lot at play for the future of CGC stock, and not all of it hinges on "Cannabis 2.0".With these risks and opportunities, is Canopy Growth stock priced for a contrarian bet? Let's look at valuation, and see if today's price presents a strong entry point. Canopy Growth Stock Richly Priced Relative to PeersUsing the enterprise value/sales (EV/Sales) ratio, CGC stock remains more expensive than most of its peers. Canopy trades at an EV/Sales (trailing 12 months) of 26.5x. Aurora Cannabis (NYSE:ACB) trades at trailing 12 month (TTM) EV/Sales ratio of 20.6x. Aphria (NYSE:APHA), Tilray (NASDAQ:TLRY), and Hexo all trade at lower TTM EV/Sales ratios than Canopy. Only Altria (NYSE:MO) backed Cronos Group (NASDAQ:CRON) trades at a higher valuation (TTM EV/Sales of 37.6).But Canopy's premium to ACB, APHA, TLRY, and HEXO could be justified. Like Cronos, Canopy is backed by a deep-pocketed partner. This provides the cash necessary to sustain operations as it scales to profitability. * 7 Great High-Yield Stocks With Payouts Over 5% As seen in my recent Cronos analysis, strategic partners can be a doubled-edged sword. With Cronos, Altria has incentive to drive the company's share price lower, allowing it to take it over on the cheap. The same situation could occur with Canopy Growth stock. If shares fall further, Constellation can step in and acquire a larger share of the company at lower prices.Constellation also has the opportunity to capture much of Canopy's potential upside. The beverage giant holds multiple tranches of warrants. The first tranche allows them to buy 88.5 million shares at $50.40 CAD a share. The second and third tranches allow them to buy 51.3 million additional shares at higher prices. With declines in the CGC stock price, Canopy extended the warrants' expiration date to November 2023 for the first tranche and November 2026 for the second and third.These warrants are priced at higher levels than Canopy's current trading price. But if the company rebounds, Constellation stands to reap much of the upside. Tread Carefully With CGC StockEven after falling from $52.74 per share down to below $20 a share, CGC stock is not cheap. High expectations for Cannabis 2.0 continue to be priced into shares. Investors today can make a bet that infused beverages and edibles pay off. But it's important to note the impact of Constellation's de-facto control of the company.So what's the play? Buy Canopy Stock if you're willing to stomach the risks. But other pot names selling at lower valuations may enable you to make that bet at a more reasonable price.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post 'Cannabis 2.0' May Not Be Enough to Save Canopy Growth Stock appeared first on InvestorPlace.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) reported its financial and operational results for the three and nine months ended September 30, 2019. The company experienced a loss of C$20.1 million for the third quarter. The important move TGOD made in the quarter was entering the recreational market with a small pilot in Ontario. […]The post Cannabis Stock News Roundup November 15 appeared first on Market Exclusive.
Alibaba, Now May Not Be the Best Time to IPO in Hong Kong Alibaba (NYSE:BABA) is going public in Hong Kong with a $13.4 billion listing, and it’s putting extra stress on the Hong Kong banking system specifically at a time when the island is on the verge of exploding in cacophonous riots leading to […]The post Market Morning: Alibaba Goes Hong Kong, Uber Dump, Alzheimer's Hope, Cannabis Collapse appeared first on Market Exclusive.
Aurora Cannabis tumbles after the Canadian recreational cannabis producer and distributor joins the club of pot companies that have missed earnings estimates.
Aurora Cannabis reports fiscal Q1 earnings after the close, after Wall Street gouged Canopy Growth as its stock dived on its results. Other marijuana stocks sold off too.
Aurora Cannabis Inc (NYSE: ACB) reported first-quarter sales of CA$70.8 million ($53.4 million) Thursday, down from CA$94.6 million in the fourth quarter. Medical cannabis revenue grew 3% sequentially, while consumer cannabis revenue fell 33%, the company said. The drop in consumer cannabis revenue is due to a slowdown in provincial ordering over the summer as distributors worked through inventories and the industry felt the impact of a "slow pace of retail store licensing" in Canada, Aurora said.
Aurora Cannabis Inc. (the "Company" or "Aurora") (NYSE | TSX: ACB), the Canadian company defining the future of cannabis worldwide, announced today its financial and operational results for the first quarter of fiscal 2020 ended September 30, 2019.
Aurora Cannabis Inc. ("Aurora" or the "Company") (NYSE | TSX: ACB), the Canadian company defining the future of cannabis worldwide, announced today that it has provided notice to all holders (the "Debentureholders") of the Company's CAD$230 million 5% unsecured, convertible debentures due March 9, 2020 (the "Debentures") of an opportunity to voluntarily convert their Debentures at the Amended Early Conversion Ratio (as defined herein).
Ask Benjamin Witte about Recess, and one of the first places he’ll send you is the company’s Instagram page.
Cannabis stocks have been getting smoked. Still, with Aurora Cannabis (NYSE:ACB) reporting this evening, can the tide be turned? Let's see what Wall Street is expecting from ACB stock and what's required on the price chart before investors can buy shares with increased odds for longer-term profits.Source: Shutterstock Cannabis stock investors coming into this week's earnings season have continued to feel the burn in a big way. Wednesday was a disaster after producer Cronos (NASDAQ:CRON) reported weak and disappointing quarterly results.Worse yet, in early Thursday, trade peers Tilray (NASDAQ:TLRY) and Canada's largest player Canopy Growth (NYSE:CGC) are reinforcing the bear case.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn brief, existing anxieties tied to oversupply problems, regulatory red tape, weaker-than-expected demand, rising costs, declining margins and disappearing road maps toward profitability have only grown larger. And painful price declines in CRON, CGC, TLRY and others are a reflection of today's increased fears, disappointment and frustration with cannabis stocks.Now it's ACB stock's turn at the earnings altar. Aurora is set to release its results after the close of trade on Thursday. * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside In front of Aurora stock's Q1 confessional, Wall Street is forecasting sales to explode by 220% year-over-year. That's the good news, if any. More important for Canada's second largest producer, pricing and margins on products sold and lack of profitability are going to be scrutinized by Wall Street. And as InvestorPlace's Vince Martin notes, it's a numbers problem for ACB stock.Ultimately, there's nothing to suggest ACB has an ace up its sleeve this evening. Still, given the damage, is it time to start growing a position in Aurora stock? Despite the stock shedding nearly 75% from its October 2018 all-time-high and a decline of nearly 40% this year, the price chart is still saying otherwise. ACB Stock Weekly ChartIt has been a couple of months since Aurora Cannabis stock could even be labeled a speculative buy on the price chart. Technically, all the cards for the bull case were off the table in September. This is true after a challenge of 62% and long-standing angular support failed a weekly candlestick higher-low pattern. And conditions have only grown worse for ACB investors.This week, shares have broken lower from a flag pattern stationed beneath the less important 76% Fibonacci level. At the same time, an oversold stochastics is now readying to form a bearish crossover. The net takeaway is oversold conditions in ACB stock (and other cannabis stocks for that matter) will produce more painful lows in the coming weeks. The trend is your friend in Aurora stock, but only if you're comfortable with short exposure.My position is that ACB stock isn't even worth a small allocation within investors' portfolios.But what if ACB stock can become the next Microsoft (NASDAQ:MSFT) or Amazon.com (NASDAQ:AMZN) within the cannabis market? The "dot-com" bust certainly wasn't kind to those market leaders either, right?I suggest staying out of harm's way. At the end of the day, there is a lot of work to be done before and if a meaningful bottom is formed and more thoughtful Aurora Cannabis stock investors might eventually be rewarded.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post Why Aurora Cannabis Stock Isn't Worth a Hit Before Earnings appeared first on InvestorPlace.
A trader knows when to get out. An investor knows not to get in. A plunger is better off in Las Vegas. Tilray (NASDAQ:TLRY) and the other cannabis stocks were for plungers. Traders who paid close attention, and who got out at the first sign of a reversal, made money. Plungers were taken to the cleaners.Source: Shutterstock At its opening price of $21.26 per share on Nov. 13, Tilray was down 80% over the last year, and its market capitalization is down to $2.1 billion. The promises of easy profits from mass marijuana growing were a puff of smoke, one that like any other high faded with the dawn.The latest quarterly report, with a loss of 50 cents per share on revenue of $51.1 million, was the last straw for the stock, and perhaps for the whole group.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's time to look for a new fad. Start Abandoning the FieldInvestorPlace has been following the pot investment fad since it started. The latest verdict of Luke Lango on Tilray stock was devastating. It may take another 20% of losses for the stock to find its footing, he wrote on Nov. 6.Since then the shares are down almost 10%. * 7 Tech Stocks to Buy for the Rest of 2019 Brad Moon warned investors this was coming a month ago. Tilray fell 13% after rival Hexo (NYSE:HEXO) disappointed. "Investors hate uncertainty," he wrote. I would add that plungers confuse promise with reality. Traders buy the rumor and sell the news, good or bad.Tilray was the first cannabis company to list on a U.S. exchange, a year ago in July. It started at $17 and went as high as $214, with a brief intra-day run to $300, before the fall. Traders made out like bandits. They followed charts with each trade, adding with each rise, taking profits with each fall, getting out entirely at the first sign of trouble.The trouble, as I recently explained about Aphria (NYSE:APHA), is that companies like Tilray, Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) bet on a demand explosion that hasn't come. When it became clear that Canada was slow-walking legalization, and that U.S. states weren't rushing to follow Colorado and Washington into recreational pot, they figured things like creams or CBD oil would soak up the crop.These were patent medicines, in the view of the medical establishment. They were fads. People tried them, and most put them away. What Happens Now?There may be a legal pot market. It may be profitable. But it will be much smaller, and grow much more slowly, than the boosters have suggested.Tilray may not live to see that day. It had just $184 million of cash at the end of June. That's enough to get through, at most, another year of losses. With the other pot suppliers also sitting on product surpluses, losses look certain.What happens next will be a slow, grinding consolidation phase, something we've seen in the oil patch over the last five years. Those with capital will buy up those without at fire-sale prices, until supply lines up with demand and profits can flow. The Bottom Line on Tilray StockThe question is how big those eventual profits may be.I wouldn't touch Tilray on a bet right now. I've suggested Canopy, because Constellation Brands (NYSE:STZ), which holds a big position, can backstop it. Others have suggested Aphria, due to its lower production costs. David Moadel has suggested that Aurora might reward patient investors.Investors should have patience with profitable stocks that are out of favor. Don't have patience with unprofitable ones. You may want to wait to find a buying opportunity in one of these names as the market turns and more of it starts to light up.What say I? Thanks, but no thanks.Dana Blankenhorn is a financial and technology journalist. He is the author of the historical mystery romance The Reluctant Detective Travels in Time, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks to Buy for the Rest of 2019 * 7 Biotech Stocks to Buy With Plenty of Power in the Pipeline * 5 Stocks to Buy That Are Set for Monster Growth in 2020 The post Tilray Stock Has Fallen and Canat Get Up appeared first on InvestorPlace.
Cronos earnings were positive, but may not be comparable. Sales jumped but missed views, a common problem for the industry.
Weed companies in Canada have consistently over-promised and under-delivered for investors at earnings time, a big reason previously fattened valuations have been on a severe diet. The next major test for the tortured set of names begins Monday.