|Bid||4.7700 x 0|
|Ask||4.7800 x 0|
|Day's Range||4.7600 - 5.0200|
|52 Week Range||4.5900 - 13.6700|
|Beta (3Y Monthly)||1.97|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 14, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.63|
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.
All Items of Business Approved EDMONTON , Nov. 11, 2019 /PRNewswire/ - Aurora Cannabis Inc. (the "Company" or "Aurora" or the "Issuer") (NYSE │ TSX: ACB), the Canadian company ...
As they start reporting September quarter sales this week, analysts fear the industry’s sales may have dropped from the June period. In Monday morning trading on Nasdaq, Cronos stock was down 4% at $8.18. BMO Capital Markets analyst Tamy Chen predicts the industry’s sales of recreational cannabis could have dropped 20% from June to September, as provincial wholesalers manage their inventories to deal with limited warehouse space and a retail bottleneck of too few stores.
Cannabis Countdown: Top 10 Marijuana Stock News Stories of the Week Welcome to the Cannabis Countdown . In this week’s rendition, we’ll recap and countdown the top 10 marijuana stock news stories for ...
MKM Partners lowered its quarterly estimates for Canadian cannabis companies Canopy Growth Corp. and Aurora Cannabis Inc. , and said he expects neither company will show much improvement in sales when they report earnings on Thursday. Analyst Bill Kirk cited three reasons for the cuts, namely that inventory being held at provinces is weighing on shipments from manufacturers, pricing is falling and lower prices won't help shift product because legal weed is still way more expensive than black market product. "While net sales estimates have come down for both since the end of August (-18% for Canopy and -25% for Aurora), we believe there is still some risk to revenue estimates and EBITDA estimates (EBITDA estimate only down 8% for Canopy)," Kirk wrote in a note to clients. "With sequential growth suddenly stalling/declining, we believe P&L de-leverage will negatively surprise (costs planned for growth, but no growth)." That will cause the bulls to revisit the industry's expectations about how quickly companies can attain profitability. "For instance, Aurora is unlikely to be EBITDA positive by June 2020 as consensus expects," he wrote. Kirk lowered his sales forecast for Canopy's fiscal second quarter to C$95.4 million ($72.1 million) from a previous C$114.5 million and compared with the consensus of C$101.5 million. For Aurora, he lowered his fiscal first-quarter sales forecast to C$92.2 million from a previous C$98.0 million and consensus of C$89.7 million. Kirk rates Canopy as neutral and Aurora as sell. Canopy's U.S.-listed shares were last down 0.7% premarket, while Aurora was up 0.3%.
Short sellers have continued to build positions in the cannabis sector, even after a broad re-rating of risk following a steep summer selloff, according to financial analytics firm S3 Partners.
One year after the legalization of recreational marijuana in Canada, the country is preparing for "Cannabis 2.0." The second phase of legalization will bring three new classes of cannabis to ...
InvestorPlace's Mark Hake recently stated that Cronos (NASDAQ:CRON), which is down more than 67% from its 52-week high of $25.10, is severely overvalued, arguing that CRON stock is by far the most expensive of its Canadian cannabis peers with an enterprise value 58 times sales.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's fair enough. But before you write off investing in Cronos stock, I'd like you to consider another financial metric. It paints a slightly different picture. By the end, I think you might see things a little differently. Cash in the BankCronos completed its $300 million acquisition of Redwood Holdings after the end of its second quarter on June 30. It paid cash for $225 million of the purchase, with the rest came from newly issued Cronos Group stock. InvestorPlace's David Moadel discussed the positive aspects of Cronos' Redwood buy in August, suggesting that the move gives it an excellent entry into the hemp market and its various CBD-related product lines. It's not unlike the February 2019 acquisition by Tilray (NASDAQ:TLRY) of Manitoba Harvest, a significant player in hemp foods, for $316 million.Cronos reports its Q3 2019 results on Nov. 11. It will be essential to pay attention to the company's cash position. At the end of June, Cronos had $2.3 billion CAD in cash, cash equivalents and short-term investments of one year or less. It has no debt. * 7 Beverage Stocks to Stock Up On The company closed its acquisition of Redwood on Sept. 5. Its share price at that day's close was $11.58, which means it likely issued approximately 6.5 million shares of its stock for the $75 million stock portion of the deal. Add that to the 374.7 million shares outstanding at the end of June, and you get 381.2 million shares outstanding and a market capitalization of $2.8 billion based on a share price of $7.99.So, Cronos' market cap is 1.9 times its net cash position. Using the top six Cannabis stocks by revenue, here is how Cronos makes out compared to its peers. Top Six Canadian Cannabis Stocks by RevenueCompany Market Cap Net Cash MC/Net Cash Canopy Growth (NYSE:CGC) $6.7 billion $1.8 billion 3.7x Aphria (NYSE:APHA) $1.2 billion $61 million 19.7x Aurora Cannabis (NYSE:ACB) $3.6 billion -$243.2 million -14.8x Tilray $2.2 billion -$159.6 million -13.8x Cronos $2.8 billion $1.7 billion 1.6x Hexo (NYSE:HEXO) $626.1 million $80.7 million 7.8x Source: MorningstarNote: $1 CAD = $0.76 U.S. The Bottom Line on CRON StockI can already hear fans of Aurora and Tilray screaming bloody murder. How dare I use such an unfair metric that fails to take into consideration the fact that both of these companies used their stock as currency to grow their businesses?Cronos, on the other hand, chose to partner with Big Tobacco. Altria (NYSE:MO) owns 45% of Cronos and can increase that to 55% -- and Canopy did the same with Big Booze -- Constellation Brands (NYSE:STZ) owns 38% of Canopy and has the right to increase that to above 50%. To date, it appears that Cronos and Canopy's shareholders have the last laugh. After all, consider the former shareholders of MedReleaf, which was acquired by Aurora in July 2018. When Aurora announced the deal in May 2018, it was worth $3.2 billion CAD. Today, the 407.6 million shares MedReleaf shareholders would have received are worth $1.5 billion CAD, less than half the value at the time of the deal's announcement. In hindsight, cash would have been much nicer.More importantly, by getting a heavy hitter to shoulder some of the cost of growing its business, Cronos now has plenty of cash and industry experience to help it navigate the next stage of its growth. Since many cannabis players are likely to go out of business in the next 12-24 months, it ought to be comforting to Cronos shareholders that the company is sitting on so much cash.No. CRON stock is not severely overvalued.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Investors Should Use Other Metrics to Evaluate Cronos Group Stock appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) stock has slowly cratered this year. Shares have fallen from a 52-week high of $10.32 on March 19 to $3.73 at the close Nov. 6. High hopes for the "cannabisphere" have not lived up to expectations.Source: Shutterstock Despite oversupply, Aurora plans to ramp up production more than 3-fold to 500,000 kilos/year. Yet this is much more pot than the market can bear. With continued operating losses, the road to profitability seems miles away. But with the stock price bottoming out, we are getting closer to a reasonable price for ACB stock. * 7 Beverage Stocks to Stock Up On With the next earnings release expected next week, is now the time to take a position? Not so fast! Aurora Cannabis stock has fallen far, but additional downside could be on the table.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Headwinds Continue to Plague ACB StockHeading into earnings, Aurora Cannabis stock faces many issues. Cowen's Vivien Azer is bearish on upcoming results. She believes a bulk of last quarter sales were a one-time event. Last quarter, Aurora sold C$20 million worth of pot into the wholesale market. Assuming this event is not repeated, she anticipates sales to fall 24% quarter-over-quarter.Azer is also concerned with the company's convertible debt due in March. In prior analysis, I have discussed Aurora's convertible debt issue. The current share price is far below the conversion price. Because of this, the company will need to find alternative ways to refinance the debt. Aurora could issue new convertible notes. They could also raise equity. Either situation will be dilutive for ACB stock.Analyst consensus for future revenue is also falling. Previously, Seeking Alpha analysts estimated sales of $775.2 million for the fiscal year ending Jun 2021. This has since fallen to $652.7 million.But this could be darkness before the dawn. Next month is the start of "Cannabis 2.0," when marijuana products such as edibles and beverages hit Canadian shelves. The rollout of these high-margin products could be a saving grace for the pot space.Will "Cannabis 2.0" move the needle for ACB stock? Unlike peers such as Hexo (NYSE:HEXO), Aurora is not as tied to the recreational space. Their efforts have been focused on the prosaic medicinal end of the business. This has allowed them to diversify globally. As InvestorPlace's Tom Taulli recently wrote, Aurora has made big inroads in Europe and Latin America.Building a business in more regulated medical marijuana may not be as sexy as a cannabis-infused drink. But long-term, it may provide the company with stability to withstand Darwinian competition in the pot game. Aurora Stock Cheaper Than Peers (But It's No Bargain)Using the enterprise value/sales (EV/Sales) metric, ACB stock is cheaper than many of its pot stock peers. Aurora trades at a trailing twelve-month EV/Sales of 25.37. In comparison, Canopy Growth (NYSE:CGC) trades at a current EV/Sales ratio of 18.63. Pot stocks like Aphria (NYSE:APHA) trade at much lower valuations (EV/Sales of 4.6). But Aurora Cannabis stock remains cheaper than Cronos Group (NASDAQ:CRON). CRON continues to trade at a high EV/Sales ratio (335.56).For the pot stocks, trailing EV/Sales may not be the best metric. Applying EV/Sales to estimated FY21 revenue gives us a EV/Sales valuation of 6.3. Canopy's future EV/Sales ratio (using FY21 estimates) is 7.7. This also demonstrates the market giving ACB stock a discount relative to peers like CGC.But using forward sales is not an exact science. With revenue estimates continuing to fall, it's tough to see where Aurora and its peers will be a year from now.On an absolute basis, Aurora Cannabis stock is expensive. Recently, InvestorPlace's Will Healy compared Aurora's price-to-sales (Price/Sales) ratio to that of the S&P 500. According to Healy, the average Price/Sales ratio for the S&P 500 is 2.2. By comparison, Aurora trades for 20 times current revenue.This premium is unsustainable. With the pot industry troubles, I am doubtful ACB stock will "grow into its valuation." Shares have more downside from here, even if projected growth continues. Bottom Line: Wait For Cannabis 2.0 to Play OutIt's tough to predict short-term moves in the pot space. Most of the current news is priced into shares. ACB stock is no exception. Investors understand the company's headwinds, and have acted accordingly. But in the next few months, the industry's prospects could change.If Cannabis 2.0 turns out to be the gold mine it has been touted as, Aurora Cannabis should reap some benefit. While not as levered to edibles and beverages as its peers, improved demand for legalized marijuana (in whatever shape or form) will quell fears of oversupply.The fortunes of Aurora stock could turn on a dime, so don't short this stock. Don't buy it either, considering the murky waters in the short-term. Keep pot stocks like ACB on your radar, but take your time before making a move.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 * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Has Aurora Cannabis Stock Bottomed Out? Not So Fast! appeared first on InvestorPlace.
[Editor's note: "10 Medical Marijuana Stocks to Cure Your Portfolio" was previously published in October 2019. It has since been updated to include the most relevant information available.] Invariably, no other investment class generates as much interest and controversy as marijuana stocks. Within a generation, public sentiment toward legalization shifted dramatically from strongly opposed to mostly supportive. This is largely due to demographics, as the more progressive millennials replace older Americans in positions of influence.Additionally, marijuana stocks represent a viable economic channel that can help bridge the gap for many states' financial issues. For instance, green-friendly Colorado enjoys significant tax revenues from its botanical industry. I don't see this trend changing for the worse anytime soon, as awareness and popularity is only increasing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, cannabis isn't without its controversies. Primarily, the federal government classifies marijuana as a Schedule I drug, putting it on par with hardcore narcotics like cocaine. Thus, no matter how liberal some states become toward their agricultural ambitions, the specter of federal oversight and crackdowns keeps many entrepreneurs and businesses away.However, we have one critical exception to the rule: marijuana stocks that specialize in medicinal and therapeutic benefits. For one thing, medical cannabis mitigates the stereotypical image of potheads and general no-gooders. Plus, people experiment with pharmaceuticals all the time. Why not allow these same patients the choice for natural alternatives? * 7 Retail Stocks to Avoid for the Holidays More critically for marijuana stocks, the medicinal aspect offers the best chance for international acceptance. Currently, very few jurisdictions allow recreational weed. Given the abundance of traditional and conservative nations, a green world is unlikely. But as Thailand and South Korea demonstrated, medical cannabis is a much easier sell.As a result, you want exposure not just to marijuana stocks, but also to the therapeutic element. Here are 10 names to consider: AbbVie (ABBV)Source: Shutterstock Whenever you have a discussion about cannabis stocks, chances are, AbbVie (NYSE:ABBV) isn't the first name you think about. One of the healthcare sector's blue chips, ABBV stock has soared on its vast therapeutic pipeline.We're talking mainstream solutions for common ailments and diseases like arthritis and plaque psoriasis.Still, AbbVie maintains some botanical credibility with its Marinol therapy. A synthetic cannabis-based drug, Marinol addresses chemotherapy-related side effects, such as vomiting or nausea. In addition, it helps restore appetite among AIDS patients.Of course, you should note that Marinol isn't among AbbVie's top-selling products. Therefore, you're only getting limited exposure to cannabis with ABBV stock. But based on the extreme volatility of marijuana stocks, that isn't such a bad gig. Emerald Health Therapeutics (EMHTF)Source: Shutterstock Not that I would know, but growing cannabis allegedly isn't rocket science.With the right conditions, the right equipment and a reasonable car, anyone can grow their stash. But cultivating the plant so that it addresses specific ailments and symptoms? That takes real effort, which is where Emerald Health Therapeutics (OTCMKTS:EMHTF) comes in.Rather than just pumping out the green stuff, Emerald deliberately seeks out the strains most effective in addressing patients' needs. The company provides a wide selection of strains, which range in weight, tetrahydrocannabinol (THC) content, and cannabidiol (CBD) strength. Their impressive portfolio should lift EMHTF stock over the long run, as interest in CBD products accelerates. * 7 Retail Stocks to Avoid for the Holidays It's important to be careful with pot stocks, though. On a year-to-date basis, EMHTF stock is down 75%. While all cannabis stocks suffer volatility risk, Emerald's concentration on medicinal weed should help mitigate downside pressure. Aurora Cannabis (ACB)Source: Shutterstock I've spent a lot of time discussing Aurora Cannabis (NYSE:ACB), and I don't mean to keep double-dipping into this company. Still, I keep going back for a reason: ACB stock is an excellent play within the medical-marijuana market.A key factor in my bullishness for Aurora is its management team. In my view, they're making smart decisions through their acquisitive strategy.Rather than merely focusing on outright capacity, they're looking out over the horizon. Aurora's buyout of Whistler Medical Marijuana gave the organization significant leverage in medical cannabis due to Whistler's extensive genetics bank.Furthermore, ACB stock is a strong performer. In the beginning of the year, shares skyrocketed roughly 70% before plummeting. It's down 28% this year. The inevitable correction should be only temporary. Among marijuana stocks, Aurora is exceptionally well-positioned for sustainable growth. Cronos Group (CRON)Source: Shutterstock One of the top names among major marijuana stocks, Cronos Group (NASDAQ:CRON) naturally attracts a lot of attention. This time, though, they're attracting the wrong kind.Prior to its earnings report for the second quarter, I worried about the company's revenue target.Hit or exceed it, and management can stave off criticism, but speculators looking for a discounted price may want to put CRON stock back on their radar. After concerns about vaping safety hit the news, Cronos has shed all of this year's gains and more, as it's down nearly 24% YTD. * 7 Retail Stocks to Avoid for the Holidays Plus, Cronos has international legitimacy among medicinally focused cannabis stocks. Featuring partnerships and joint ventures across five continents, the company is ahead of the game. CannTrust (CTST)In business, even the green kind, you can't get ahead of yourself. So while lucrative opportunities exist in the international sector, CannTrust (NYSE:CTST) remains firmly committed to winning its native Canadian market.At the same time, CannTrust can't afford to ignore the rest of the world. Although Canada becoming the first G7 nation to legalize recreational weed generated headlines, our northern neighbors alone can't support this burgeoning industry.Therefore, management has focused on the growth and capacity narrative to compete effectively at home and, later, abroad.To achieve the second leg of this journey, CannTrust teamed up with Denmark's Stenocare to distribute medical cannabis products in that country.It also inked a partnership with an Australian firm for similar distribution arrangements. While it's not the most common name among marijuana stocks, CTST stock provides a risky, but viable, opportunity. Innovative Industrial Properties (IIPR)Most marijuana stocks focus on the industry's front face; namely, production. As I mentioned earlier, marijuana isn't that difficult to grow. So long as you have the green light legally, the physical barrier to entry is relatively short.But the real challenge, though, is finding a consistent source of financing. This is where Innovative Industrial Properties (NYSE:IIPR) lends a helping hand.Despite momentum toward legalization, several financial institutions shy away from cannabis ventures.Innovative Industrial plugs the gap, offering critical capital through its leaseback business model. * 7 Retail Stocks to Avoid for the Holidays Thanks to the company's tremendous utility, IIPR stock has lit up the markets. Shares are currently up more than 75% YTD. Technically, IIPR may have gotten a bit overheated. That said, I wouldn't get too greedy looking for the perfect entry point. Innovative Industrial levers a proven business model that is only increasing in relevancy. Terra Tech (TRTC)Everyone recognizes cannabis stocks for two things: their incredible potential and their equally incredible volatility. Unfortunately, stakeholders of medical-cannabis producer Terra Tech (OTCMKTS:TRTC) find themselves in the latter category.So far this year, TRTC stock is down around 53%.And the bad news doesn't end there. Terra Tech only had $1.9 million of cash at the end of Q2.So why take a bet on TRTC stock? First, its vertically integrated organization may facilitate significant efficiencies as political momentum increases. Second, I dig their leadership team. The head execs are experts in finance, which should prove beneficial in properly navigating TRTC across choppy waters. Charlotte's Web (CWBHF)Source: Shutterstock When most people look at Charlotte's Web (OTCMKTS:CWBHF), they're thinking that they missed the boat. After all, CWBHF stock jumped 78% at the beginning of this year.From the opening price this year, however, Charlotte's Web shares are down over 10%.As much as I love marijuana stocks, I'm fairly certain that this cannabis firm is due for a further pullback. But once that occurs, I wouldn't waste too much time squabbling over the granularity.Instead, I'd consider what our own Matt McCall had to say. Thanks to the popularity of CBD, Charlotte's Web's CBD-based products could be distributed across mainstream retail channels. * 7 Retail Stocks to Avoid for the Holidays Unquestionably, such an event would launch CWBHF stock into the stratosphere. Moreover, because most CBD products contain no trace of THC, they don't fall under severe federal guidelines. Therefore, don't get too greedy looking for an ideal price point when CWBHF corrects. Cannabis Science (CBIS)On paper, Cannabis Science (OTCMKTS:CBIS) represents the next evolution among cannabis stocks: pharmaceutical firms that devote their time and research exclusively toward medical marijuana.Not only that, this is a much-needed development that could lift CBIS stock, as well as the entire botanical industry.For decades, people unquestionably trusted the mainstream healthcare and pharmaceutical network.However, the rapidly escalating opioid crisis has proven that well-intentioned medical professionals can lever a tragic impact. One of the underlying causes of this crisis is the addictiveness of prescribed medicines.Organizations like Cannabis Science can potentially mitigate this situation with naturally sourced therapies free of psychoactive side-effects. That's the allure of CBIS stock. However, shares trade for $0.0049 cents a pop, so this is only for the risk-tolerant. GW Pharmaceuticals (GWPH)Source: Shutterstock On a surface level, GW Pharmaceuticals (NASDAQ:GWPH) brings a lot of positives to the table. As pioneers among medicinally-concentrated marijuana stocks, they lever substantial credibility.Their Sativex drug for addressing symptoms associated with multiple sclerosis achieved better-than-expected results. This only encourages other companies to pursue cannabis-based therapies for many other diseases. * 7 Retail Stocks to Avoid for the Holidays As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post 10 Medical Marijuana Stocks to Cure Your Portfolio appeared first on InvestorPlace.
Even though Aurora Cannabis (NYSE:ACB) stock has fallen throughout 2019, the company still has a market capitalization of around $3.5 billion. But as marijuana stocks are undergoing a major correction with no end in sight, why should investors still consider buying or holding ACB stock?Source: ElRoi / Shutterstock.com Strong Results From a CompetitorOn Oct. 15, Aphria (NYSE:APHA), whose market cap is one-third that of Aurora, reported that its revenue had soared 800% year-over-year to C$126.1 million. Its net income fell 23% to C$16.4 million. Still, Aphria's fiscal 2020 revenue guidance of C$650 million to C$700 million should make investors more optimistic about marijuana stocks.In Aurora's Q4 results, unveiled in September the company reported that its revenue had quadrupled YoY to $C74.98 million. Aurora enjoys leading market share and brand awareness in the Canadian consumer market. Its production increased, and Aurora expects the expansion of its retail infrastructure to enable its revenue growth to accelerate in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Avoid for the Holidays In addition to launching new brick-and-mortar stores across Canada, ACB will further increase its engagement with consumers. Medical CannabisAurora grew the number of patients participating in its research studies by 10% to over 84,000 patients. Referrals from its own clinics and the over 60 clinics with whom it partners will strengthen its medical business. Capital SpendingAurora invested over $100 million in its Aurora Sun greenhouse production project. The initiative is progressing nicely.The company's investments in technology and automation are expected to drive its operating costs lower. Plus, its production costs will fall over the long-term. In Q1, its capital spending will still be significant, but it's expected to fall in subsequent quarters.With a number of its production facilities nearing completion, Aurora is positioned to attain meaningful market share, not only in Canada. but globally, too.In the past, various regulatory and systemic constraints limited Aurora's growth rate and raised its inventory levels.But as it opens more stores, expect its revenue growth to accelerate. Management predicts that its core business will grow and is confident that ACB stock will benefit from strong demand. Positive EBITDA AheadAurora is targeting positive EBITDA, now that it has shifted from rapid M&A to disciplined, focused execution.Investors have been upset about excess spending by cannabis firms. Still, ACB stock can rebound in 2020 as ACB becomes profitable ahead of its peers.Its retail expansion, especially in the province of Ontario, a big Canadian market, should help it reach positive EBITDA, boosting ACB stock. Plus, as new types of cannabis products like edibles are launched, Aurora has plenty of opportunities to grow both its market share and revenue. The Bottom Line on Aurora Stock14 analysts who cover ACB stock have an average price target of $6.60 on Aurora stock. That is well above yesterday's closing price of $3.58.No new analyst report has been issued on ACB stock in two weeks. In the near-term, I expect a number of analysts to downgrade Aurora stock and lower their price targets on the name, correctly reflecting the uncertainties facing cannabis producers in Canada. But in the long-term, when Aurora has more stores open, its business will be in good shape. So, expect ACB stock to recover over the long haul.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Aurora Cannabis Stock Will Be Boosted by ACB's Retail Expansion appeared first on InvestorPlace.
CALGARY , Nov. 7, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that the Canna Cabana location in Unit #130 at 6751 50 Avenue in Red Deer and the KushBar location in Unit #103 at 7701 44 Street in Lloydminster (the "New Stores") received their first deliveries of recreational cannabis products from Alberta Gaming, Liquor and Cannabis ("AGLC") and today will begin selling cannabis and accessories. To celebrate each of their grand openings, festivities will take place at the New Stores on Saturday, November 9th .
Like all cannabis stocks, it's been a rough year for Tilray (NASDAQ:TLRY). After becoming one of the first cannabis companies to issue an initial public offering in July 2018, the stock has almost come full circle.Source: Jarretera / Shutterstock.com Upon its debut, TLRY stock was $17 per share. Tilray was then carried on the cannabis wave and inflated to a closing price of $139.60 on Nov. 7, 2018. Today Tilray stock is trading at around $23 per share and some analysts are wondering if the $17 IPO price will offer support for the falling stock.However, as troubled as the cannabis industry looks today, doubts over legalization are the only reasons to avoid the sector. Unless marijuana fans fail to secure federal legalization, cannabis stocks have a bright future -- if you have the time and the patience to wait for it.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Bubble Has Burst for Pot StocksIt wasn't long ago that marijuana stocks were the darlings of Wall Street. But the 2018 bubble has burst. And if you are an investor that was counting on the inflated prices of these stocks to fund an impending retirement, you're out of luck. The market has soured on these stocks. And like a lot of "unicorn" stocks, investors are waiting for these companies to prove themselves by posting a profit. * 7 Under-the-Radar Retail Stocks to Buy Now It's important to note that Tilray stock is not being singled out. That would be more concerning. But the entire industry is being affected. Take for example Canopy Growth (NYSE:CGC). On Sept. 7, 2018, CGC stock was at a record level of $51.53. As of this writing, the stock is trading for less than half of that price. The same can be said of Aurora Cannabis (NYSE:ACB) stock that was trading for $10.52 on Oct. 12, 2018. As of this writing, it is trading at $3.78.But does that mean they are not worth the investment? That depends on your time horizon. Housing prices get into bubbles, too. Does that mean your house isn't worth the investment? That's the nature of a free market. The key to any marijuana stock is to remember it's a long-term play. How Long Will it Take for Growth to Emerge?Despite the shifting tide of public support, full legalization of cannabis will take time, particularly in the United States. However, while Canada has now achieved full legalization for both medicinal and recreational marijuana, TLRY is taking an unconventional approach.Although headquartered in Canada, TLRY is focusing its efforts outside of Canada. Specifically, Tilray is looking to deploy its capital in the United States and European markets. In terms of global growth opportunities, these markets are, in the words of Tilray CEO Brendan Kennedy, "orders of magnitude" larger than Canada's.To help accomplish this, TLRY is acquiring assets in a number of segments of the worldwide cannabis market. Most notably, Tilray acquired Manitoba Harvest, the world's largest hemp food company, in April. This gave it a push into the U.S. hemp market which some analysts concede positions Tilray better than many of its Canadian peers.Tilray also acquired a 250,000 square-foot facility in Portugal to streamline its European operations. Plus, the company recently signed an agreement with Cannamedical Pharma, a German medical cannabis importer that will give Tilray access to the German market.Tilray is also not a grower. Instead, it is committed to an asset-light model that relies less on production and more on product development and retailing.The company is largely focused in the medicinal marijuana sector. While this area looks to have a lot of promise, there may be a long and winding road to regulatory approval. Can You Afford to Wait on Tilray Stock?Over the next few years, investors will need to practice patience because profit is not likely for any of the major cannabis stocks. The cannabis industry as a whole has been tainted by several negative headlines. But that has more to do with a few bad actors than the overall potential of the space. The potential hasn't changed. The question will be can the industry deliver?Cannabis legalization is becoming a reality in more and more of the United States. In just the last few years, 10 states have legalized recreational marijuana. A significantly larger number have approved cannabis for medicinal use. The pace of legalization is slow. The pace of regulation will also be slow. But as the cannabis market evolves to one that is legal and regulated, there are several large cannabis players who stand to benefit. I believe Tilray is one company that will have a seat at that high table.As of this writing, Chris Markoch did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Under-the-Radar Retail Stocks to Buy Now * 7 Specialty Retail Stocks to Buy Now * 5 Cannabis Stocks With "Lit" Growth Prospects The post The Bubble Has Burst, But Tilray Stock Is More Than a Penny Stock appeared first on InvestorPlace.
Aphria’s stock price has risen 8.9% since reporting its Q1 earnings on October 15. The cannabis sector's weakness offset some of these gains.
Cannabis company Cronos Group has expanded its presence in the US cannabidiol market through a tie-up with tobacco company Altria Group.
NYSE | TSX: ACB EDMONTON , Nov. 6, 2019 /PRNewswire/ - Aurora Cannabis Inc. ("Aurora" or the "Company") (NYSE | TSX: ACB), the Canadian company defining the future of cannabis worldwide, ...
Aurora Cannabis and Charlotte's Web Holdings are set to report their earnings next week. Could their results bring some relief to the cannabis sector?
After a bruising summer of selling, has the Canadian cannabis sector finally bottomed out? Cantor Fitzgerald says it has.
Canopy Growth (CGC) (WEED) and Cronos Group (CRON) are set to release their earnings next week. The cannabis sector has been on a roller coaster this year.
Top executives at one of the largest weed companies in the world appear uncertain how to say the name of a flagship recreational cannabis brand, San Rafael ‘71.
Innovative Industrial Properties buys property from cannabis growers and leases it back under long-term contracts.
Canopy Growth and Aurora Cannabis are tumbling after MKM partners lowered its quarterly estimates on the marijuana companies. Yahoo Finance's Jared Blikre joins Akiko Fujita on The Ticker.