ACB.TO - Aurora Cannabis Inc.

Toronto - Toronto Delayed Price. Currency in CAD
-0.16 (-2.34%)
At close: 4:18PM EDT
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Previous Close6.83
Bid6.66 x 0
Ask6.67 x 0
Day's Range6.55 - 6.78
52 Week Range6.21 - 16.24
Avg. Volume4,213,303
Market Cap6.771B
Beta (3Y Monthly)2.76
PE Ratio (TTM)N/A
EPS (TTM)-0.29
Earnings DateNov 11, 2019 - Nov 15, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est10.73
  • PR Newswire

    Aurora Cannabis Announces Date of Annual General Meeting

    TSX: ACB | NYSE: ACB EDMONTON , Sept. 20, 2019 /PRNewswire/ - Aurora Cannabis Inc. (the " Company " or " Aurora ") (NYSE | TSX: ACB), the Canadian company defining the future of cannabis ...

  • Cannabis Roundup: HEXO, CRON, CURA, and ACB
    Market Realist

    Cannabis Roundup: HEXO, CRON, CURA, and ACB

    Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.

  • Mayor to Regulate Cannabis Stores in Chicago
    Market Realist

    Mayor to Regulate Cannabis Stores in Chicago

    Chicago mayor Lori Lightfoot has introduced an ordinance regulating cannabis stores, keeping them away from the city's central business district.

  • Aurora Cannabis Stock Will Slide Until the Cash Hemorrhage Stops

    Aurora Cannabis Stock Will Slide Until the Cash Hemorrhage Stops

    Aurora Cannabis (NYSE:ACB) stock price has been on a deep slide lately. ACB stock is down 14% since it reported earnings on September 11 for the quarter ending June.Source: Shutterstock The market was deeply disappointed. ACB had guided analysts to expect revenues from $100 million CAD to $107 million CAD for the quarter. But revenue came in at $99 million CAD.But more importantly, cash is now dangerously low. In fact, two days before the announcement, ACB closed on a $360 million credit facility which was sorely needed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cash Flow Losses ContinuingACB is still generating huge cash flow operating and investing losses. During Aurora Cannabis's Q4 ending June, its operating losses and investing activities drained out $180.4 million CAD. The amount includes required capital expenditures (capex) and asset sales. * 8 Dividend Stocks to Buy for a Recession By the end of June ACB's cash and securities balances had dwindled to $218.8 million CAD. So you can see why Aurora needed to raise the $360 million CAD credit facility in early September.If ACB's September quarter was using up another $180 to $200 million CAD, that credit facility just plugged a hole in a dam with a lot of cracks.The September quarter needs to start showing the company is profitable on a free cash flow basis. Otherwise, ACB will have to continue raising more debt or possibly even equity. Market Fears about ACB's LiquidityACB stock is reacting to its apparent need for more liquidity. For example, Aurora's capex spending in Q4 ending June was $167 million CAD alone. ACB sold assets worth $117 million CAD. If it had not done so, losses and investing activities would have drained out $297 million CAD during Q4.Moreover, ACB's $218.8 million CAD cash balance included $46 million of restricted cash not available to pay operating bills. That left only $173 million CAD in usable cash at June end.Here is my estimate of Aurora's cash balance as of now (mid-September): $236 million CAD ($173 million CAD June cash balance less $297 million CAD cash outflow in the September quarter, plus $360 million CAD in new credit loans on Sept. 9.)So without that September 9 credit facility Aurora Cannabis might have run out of money in the bank Aurora Cannabis Stock's $7 Billion CAD Valuation Is At RiskThe revenue miss and the recent credit facility spooked the market. These imply Aurora will not be cash-flow positive anytime soon.It seems amazing that the ACB stock price still has a $7 billion CAD market value given this liquidity balance.Canopy Growth (NYSE: CGC) has a $12 billion CAD market value. But CGC has $3.2 billion CAD in cash and securities as of June. ACB has only $236 million CAD based on the calculations above.Investors are spooked. They fear ACB will not be profitable in the next quarter either, and ACB might need to raise equity or take on more debt. An equity issue would dilute shareholders. It would likely be issued at a huge discount to the present price. Further debt raises would only add to ACB's estimated $500 million CAD debt.In summary, ACB stock is not going to rise anytime soon -- at least not until Aurora can stop the cash flow hemorrhaging. In fact, Aurora Cannabis stock could crater, especially if more equity needs to be raised. * 7 Triple-'F' Rated Stocks to Leave on the Shelf I would wait for Aurora to become cash-flow positive or until ACB stock stops its present slide. Don't try to catch a falling knife here.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks. The Guide launched on August 30. Subscribers during September receive a 20% discount, plus a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post Aurora Cannabis Stock Will Slide Until the Cash Hemorrhage Stops appeared first on InvestorPlace.

  • Cannabis Samples Didn’t Pass Tests in Nevada
    Market Realist

    Cannabis Samples Didn’t Pass Tests in Nevada

    The Nevada Department of Taxation announced that four cannabis products sold between May 28 and July 10 failed the secondary microbial test.

  • Marijuana Legalization: O’Rourke Blazes His 2020 Campaign
    Market Realist

    Marijuana Legalization: O’Rourke Blazes His 2020 Campaign

    Democratic presidential candidate Beto O’Rourke is known for voicing his opinion on federal marijuana legalization. He supports marijuana legalization.

  • Why The Future Marijuana Superpower Could Come From This Region
    Investor's Business Daily

    Why The Future Marijuana Superpower Could Come From This Region

    Marijuana companies are betting that South America will supply the world with outdoor-grown cannabis at a fraction of North America's costs.

  • Canopy Growth Facing Giant Losses

    Canopy Growth Facing Giant Losses

    Canopy Growth Corp. (CGC), the largest cannabis company in the world by market capitalization, has seen its stock plunge by more than 50% over the last 11 months, dragging down its value from about $20 billion to $9.5 billion today. Now, the Canadian grower faces even more trouble ahead as it racks up an estimated $500 million in losses for the two-year period ending March of 2021, according to Oppenheimer analyst Rupesh Parikh, according to Barron’s as outlined in detail below. The woes at Canopy Growth, whose stock initially soared several-fold after it went public, illustrates both the massive operating and market challenges facing cannabis producers, and waning investor optimism for cannabis stocks such as Aurora Cannabis Inc. (ACB), Tilray Inc. (TLRY) and Cronos Group Inc. (CRON).

  • Cannabis 2.0: Aurora Cannabis Gears Up for Edibles Market
    Market Realist

    Cannabis 2.0: Aurora Cannabis Gears Up for Edibles Market

    Cannabis 2.0 legalization will take place in Canada next month. Cannabis players are gearing up to expand in the edibles market.

  • Should You Believe the Long-Term Narrative for Tilray Stock?

    Should You Believe the Long-Term Narrative for Tilray Stock?

    In a distressing reversal of fortune, cannabis-related companies like Tilray (NASDAQ:TLRY) have suffered sharply. No longer content on listening to a strong narrative, investors wanted hard numbers. Unfortunately, the weed alpha dogs like Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) have all produced disappointing results. For Tilray stock, it's down more than 56%.Source: Jarretera / Of course, several analysts have their take on the issue, and I'm not going to speak for any of them. I will say, though, that in my view, marijuana investments like TLRY stock are stuck between two worlds: one that emphasizes traditional investment metrics, such as earnings-per-share, and another that banks on the broader industry's potential.To be frank, most investors -- and I'm one of them -- got caught up in the latter. Generally, we believe that it's an incredibly difficult, if not impossible to assess names like Tilray stock against traditional metrics. It's unlike a blue-chip stock where you have ample historical data to work with.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, I don't begrudge that volatility rocked this space. Sure, I'd argue against the magnitude of bearishness. Nevertheless, investors must see firm evidence that their funds are being put to good use. Due to recent controversies like the CannTrust Holdings (NYSE:CTST) scandals, these high-profile incidents impugned the entire sector.Therefore, investors lost patience, which I can appreciate. From their perspective, it was time to put up or shut up. When major player after major player failed to produce confidence-inspiring earnings results, prior weed advocates abandoned ship. * 8 Dividend Stocks to Buy for a Recession But with TLRY stock appearing to have stabilized at the $30 level, should speculators consider giving it another look? Tilray Stock Has a Great Story … If It Can Turn the PageNot too long ago, TLRY stock touched the $300 level on an intra-day basis. If you think about it, this is a remarkable concept: at one point, no matter how briefly, someone thought that Tilray stock was worth $300 a pop. In that context, losing a zero is a very good price indeed.Joking aside, my InvestorPlace colleague Ian Bezek explored the idea of capitalizing on the marijuana sector's fallout. Regarding Tilray stock, Bezek sees potential. However, he notes that other companies like Canopy and Cronos have big backers. Without similar support for Tilray, the medical cannabis specialist has an uphill challenge.It's a fair point. From the get-go, cannabis firms have sought mainstream credibility. Nothing spells out "making it" quite like a backer like Altria Group (NYSE:MO) or Constellation Brands (NYSE:STZ).In that regard, I agree with Bezek. However, Tilray stock features a powerful narrative that just got more interesting.As I'm sure you've heard, the vaping crisis has captured the nation's attention. Increasingly, the public, including some vape users, are leery about the practice.Because the vaping news cycle seemingly gets worse every day, I'm not sure how this will play out. However, cannabis, which is also a "vapable" substance, for medicinal use has only ramped up in popularity. In fact, some medical professionals who were previously opposed to cannabis are now prescribing it.And that sentiment suits TLRY stock for the long haul. Tilray's products are consumables wrapped in unassuming and discreet labeling. Designed purely for medicinal purposes, they don't have the stigma associated with stereotypical cannabis platforms.Plus, the vaping crisis provides an opportunity for TLRY to distinguish itself as a medicinal player, not a recreational one. That's crucial as it reaches out to the international markets. A Global Opportunity to AdvantageMany, if not most bullish arguments about TLRY stock focus on the potential U.S. legalization of marijuana. After all, 62% of the American people support legalization. With a total population of over 327 million, that could add up to serious coin.However, the U.S. isn't the only non-Canadian nation that's growing tolerant to weed. In a surprising report from CNBC, many Asian countries are turning toward medical cannabis. Historically known for their draconian narcotics laws, if Asia converts to green, it would be a game-changer, irrespective of what happens in the U.S. * 10 Companies Making Their CEOs Rich For example, Japan recently approved clinical trials for Epidiolex, a cannabidiol (CBD)-based oral solution for helping epileptic patients. Consequently, Japan also has a rapidly aging population. If medical cannabis gains greater acceptance there, it would represent a huge boon for specialists like Tilray. Logically, this would skyrocket Tilray stock, perhaps back to its intra-day highs.That said, TLRY stock has a financial credibility problem. Management must convince prospective buyers that it can stay in the business long enough to actualize these positive forward narratives.And that's the underlying reason why Tilray stock and its ilk are so volatile. Yes, the story is great … profound, even. But getting there is the hard part. I for one am a believer, but I can also appreciate why others remain skeptical.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 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Should You Believe the Long-Term Narrative for Tilray Stock? appeared first on InvestorPlace.

  • 3 Medical Marijuana Stocks to Buy

    3 Medical Marijuana Stocks to Buy

    [Editor's note: This story was previously published in March 2019. It has since been updated and republished.]Often, when analysts or bloggers talk up the potential of marijuana stocks, the focus is on the consumer side of the industry. But some of the best stocks in the pot sector may be medical marijuana stocks.Indeed, it's on the medical side where growth is likely to be largest in the near term. Canada did legalize recreational marijuana last year, but investors promptly sold the news in response. Almost a year later, stocks like Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY) have recently touched 52-week lows.InvestorPlace - Stock Market News, Stock Advice & Trading TipsU.S. legalization is likely to be a long slog. Attitudes are mixed in Europe -- but even in legalized markets, black market (and untaxed) operators will be able to take share.Meanwhile, approval of medical marijuana (in the U.S. and elsewhere) seems to be moving at a faster pace. In such a highly regulated market, black market and even smaller producers likely will be shut out. Quality and consistency will be key. Here, scale will matter. And those companies that win early have the best chance of becoming market leaders -- and providing big gains for investors. * 8 Dividend Stocks to Buy for a Recession As always -- and particularly in this space -- investors need to mind the risks and size of their positions accordingly. But for investors who see medical marijuana stocks as the next big thing, these three are the best stocks to buy for investors enamored with weed. Medical Marijuana Stocks to Buy: Charlotte's Web (CWBHF)Source: Kevin McGovern / Charlotte's Web (OTCMKTS:CWBHF) has become one of the leading players in CBD oil (cannabidiol). And though Charlotte's Web products are made from hemp -- at least for now -- instead of marijuana, the stock still looks like one of the best plays in the sector.InvestorPlace's Matt McCall named CWBHF (the stock also trades on the Canadian Securities Exchange under ticker CWEB) as his pick for our list of the best stocks for 2019. McCall's case makes some sense. CBD oil sales are soaring, and Charlotte's Web is a market leader. As McCall pointed out, the federal farm bill in the U.S. provided a catalyst by legalizing hemp.So far this year, Charlotte's Web stock has outperformed most recreational players, gaining 65% year-to-date. But a nearly 30% pullback from August highs creates another opportunity for an attractive entry point. Second-quarter earnings appear to have disappointed some investors, but revenue growth of 45% year-over-year and 15% quarter-over-quarter suggest the growth story remains intact.There is a risk here from U.S. Food and Drug Administration regulation, but the agency seems unlikely to be a roadblock to Charlotte's Web stock's growth. With so many customers yet to try CBD oil -- and so many existing users attached -- market growth should be huge. And while CWBHF isn't cheap from a valuation standpoint, its position as a market leader should allow it to grow into its valuation. Cronos (CRON)Source: Shutterstock Like most major cannabis plays, shares of Cronos (NASDAQ:CRON) have declined of late. CRON stock has dropped by 50% since early March.The declines may continue. CRON, like many of its peers, still isn't cheap. And it still isn't profitable. But there's a lot to like here, particularly for investors more interested in the medical side of the industry than the consumer side.To be sure, investors see Cronos as a consumer play. The $1.8 billion investment by tobacco giant Altria (NYSE:MO) brings in not only cash, but Altria's advertising expertise and distribution reach.But investors can't ignore that Cronos is a medical marijuana stock as well. In fact, it's that business that drove the majority of its revenue until recently. And it also has given the company a beachhead in multiple markets around the world, from its home market of Canada to Germany, Israel and Poland. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Cronos is looking to export medical marijuana via a joint venture in Israel. Its partnership with Gingko Bioworks aims to biologically manufacture expert cannabis strains. Those strains could be used for consumer products -- but they might also have medical applications as the effect of cannabinoids is better understood.The broader case for CRON stock is that the company isn't looking to be a producer, where management sees prices and profits likely to be minimal as supply increases. If that strategy works, it will allow Cronos to profit from higher-margin derivative sales to consumers. But that high-level expertise will also make Cronos a potential leader on the medical side as well. Aurora Cannabis (ACB)Source: ElRoi / Like CRON stock, Aurora Cannabis (NYSE:ACB) has a "falling knife" chart. ACB stock touched a seven-month low at the beginning of the month, and a rebound was undercut by a disappointing fiscal fourth-quarter report on Thursday.Given that Aurora likely will need to raise capital relatively soon, patience is probably advised here.But from a long-term standpoint, there's an attractive case here. Aurora's global reach is probably greater than that of any cannabis play at the moment. Medical sales drove just 30% of net cannabis revenue in Q4, but that figure should rise as efforts in Germany and Latin America drive growth.Aurora will in part be a consumer play, as is the case for most marijuana stocks at this point. But its medical business is already large - and growing. In fact, Aurora already serves nearly 90,000 medical marijuana patients worldwide. As that figure rises, so will Aurora's revenue. Once profitability follows -- which should be next year -- the long slide in ACB stock may finally reverse.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors The post 3 Medical Marijuana Stocks to Buy appeared first on InvestorPlace.

  • 7 Marijuana Stocks With Critical Levels to Watch

    7 Marijuana Stocks With Critical Levels to Watch

    [Editor's note: This story will be updated each week with new stocks and analysis. Please check back often for Mark's latest take on marijuana stocks.]Unfortunately technical analysis has a bad reputation. However, it is probably well deserved. Most of the technical analysis of marijuana stocks that I see is dubious at best and downright terrible at worst. Many analysts mindlessly try to identify patterns without really understanding what they are supposed to mean. Some analysts are even proponents of bizarre techniques like Gann Theory and Elliot Waves. My belief is that these methods are better suited for a Twilight Zone episode than for making money in real markets.In financial markets, there are certain price levels that are more important than others with regards to the amount of supply and demand that exists at them. In addition, stock prices are always doing one of three things. They are either going up, going down or staying the same. You can see this by looking at almost any chart. If you understand technical analysis and apply it correctly, you can identify these important levels and trends.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks to Buy for a Recession Knowing where these levels are will help you profit. For example, suppose you want to buy a stock if it gets down to $5 a share and then sell it if it rallies to $10. If there is support around the $5.50 level, the stock could fall to $5.50 and then rally to $10. Because you didn't know where the support was, you would have missed out on a significant profit for 50 cents. Marijuana Stocks With Levels to Watch: Aphria (APHA)Aphria (NYSE:APHA) manufactures and sells medical cannabis in Canada and internationally. It currently has a market cap of about $1.5 billion.APHA stock has looked rough recently, down more than 7% in the past week. This is probably sympathy pain due to Aurora Cannabis (NYSE:ACB) being downgraded at Stifel from "hold" to "sell."If it continues to head lower, there will probably be some support around the $6 level. This is where the two most recent lows were on Aug. 15 and Aug. 27.If it gets oversold it may have a tradable rally off of the level. The key is to not try to catch the bottom. Bottoms are typically more volatile than tops. This is because tops are created by hope while bottoms are created by fear.A better strategy could be to wait until the downtrend is broken before buying it. In other words, buy it after it starts to rally. You won't get the low trade, but the risk-reward ratio is better than trying to guess where the exact bottom is. Hexo (HEXO)Hexo (NYSE:HEXO) produces, markets and sells cannabis. The current market cap is about $985 million.When a stock is rallying, the forces of demand are in control. When a stock is selling off, the forces of supply are in control. A reversal pattern shows a change of this leadership.From Aug. 28 through Sept. 6, buyers controlled the market. The stock rallied every day. Then the action on Sept. 9 formed a reversal pattern. It has dropped by about 10% since then.The up days are blue and the down days are red on the chart. On Sept. 9, the stock opened at the day's high. The buyers were in control that morning. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Then the stock sold off over the course of the day and closed at the lows. This action means that the forces of demand have run out of steam and the forces of supply have taken over. These dynamics are what forms a reversal pattern on the chart. Cronos (CRON)Cronos (NASDAQ:CRON) grows and sells marijuana. Its current market cap is $3.8 billion.CRON stock continues to trend sideways above support around the $10.75 level. It has been trading in the same range for about one month. If the support at the $10.75 level breaks, it will probably become a resistance level.How does this happen? Why would a level that was support become resistance? Consider the following.The investors who bought a stock at a support level are feeling good when it bounces and they are making money. But then when the level breaks and the stock goes lower, they are now looking at a loss. They tell themselves that if the stock rallies back up to that level, they will sell it so that they can get out of it without losing any money. They place their sell orders at the level, and this supply of stock is what creates resistance. The Green Organic Dutchman (TGODF)The Green Organic Dutchman (OTCMKTS:TGODF) engages in the provision of medical cannabis solutions. It currently has a market cap of around $500 million.Aurora Cannabis was a large holder of TGODF stock. It recently announced that it sold its position of 28.8 million shares to a consortium of Canadian Banks. This caused TGODF to drop by about 10%.There is a chance that the consortium, or at least members of it, have been selling the shares they acquired in the block transaction. This could be what is forcing the stock lower. If this is the case, then when this selling comes to an end, there is a good chance that we will see a meaningful rebound. * 7 Momentum Stocks to Buy On the Dip TGODF is also oversold. The last time that it was this oversold, in July, a large rally followed. The term "oversold" refers to momentum. It is a measurement of where the stock is today versus where it was X many days ago. When this number reaches an extreme to the downside it is considered to be oversold. Aurora Cannabis (ACB)Aurora is a Canadian-based company that grows and sells medical cannabis products. It currently has a market capitalization of about $5.4 billion.ACB stock has been crushed over the past week. It has dropped from $6.50 to $5.30. Last week the company reported a loss for the fourth-quarter that was larger than expected and revenue that was short of estimates. Because of this, Stifel Nicholas downgraded the stock from "hold" to "sell."When the stock dropped, it found support around $5.50. This was expected because it is where the recent lows were. The next morning, the level broke and the stock traded lower. The $5.50 level may become a resistance level now.If it continues to trade lower, it may find support around the $5 level. This is because this level was where the lows were in December. It is also an important level psychologically. If ACB is oversold when it reaches that level, there is a good chance that it will be a low-risk buying opportunity. Medicine Man Technologies (MDCL)Medicine Man Technologies (OTCMKTS:MDCL) provides cultivation consulting services to cannabis growers. The current market cap is about $133 million.MDCL stock seems to be failing at resistance after becoming overbought.The levels around $3.90 were the top in April, and then again in May and June. This is the reason why there is resistance at this level.Like oversold, overbought refers to the momentum of the stock. When this number reaches an extreme to the upside, it is considered to be overbought. * 7 Tech Stocks You Should Avoid Now This is an important dynamic to understand about markets. When they are oversold and get to support, they tend to rebound. When markets are overbought and get to resistance they tend to sell off, as is the case here. Kushco Holdings (KSHB)Kushco Holdings (OTCMKTS:KSHB) sells packaging products and solutions. It currently has a market cap of about $270 million.On Sept. 11, the company reconfirmed its guidance and discussed what it believes are positive developments. Apparently shareholders were not impressed. The stock has been in a free-fall since then.I do not know when (or if) the selloff will come to an end. A clue that may signal that this is about to happen could be extremely large volume. This would be a sign of capitulation and would be a short-term bullish dynamic for the stock.Capitulation means that the sellers are sick of the misery the stock is causing and they just want to get out. They tell their brokers to sell it and they don't even care about the price. They want it to go away. This usually results in very-large-volume trading. This could be a short-term bullish dynamic.At the time of this writing Mark Putrino did not have any positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post 7 Marijuana Stocks With Critical Levels to Watch appeared first on InvestorPlace.

  • CBD Products: McConnell Wants FDA to Ease Regs
    Market Realist

    CBD Products: McConnell Wants FDA to Ease Regs

    Earlier this week, Senator Mitch McConnell submitted a proposal that would require the FDA to set a policy for the sale of hemp CBD products.

  • The Cannabis Market Is Looking Up, Even If Cannabis Stocks Aren’t

    The Cannabis Market Is Looking Up, Even If Cannabis Stocks Aren’t

    (Bloomberg Opinion) -- Almost exactly a year ago, a small Canadian cannabis company was generating a lot of buzz (sorry, couldn’t resist the pun). Despite trifling quarterly revenue of $9.7 million, Tilray Inc.’s market capitalization got so high (sorry again, I’ll stop) that it briefly eclipsed that of major companies people have actually heard of, such as American Airlines Group Inc.The boom quickly faded — not surprising, given how senseless it looked even in the moment — and Tilray’s stock has continued to decline. And the cannabis sector has also stumbled recently.But this dampened enthusiasm for marijuana stocks does not necessarily reflect fading prospects for the marijuana market, which still has promise. Instead, it is related to short-term challenges associated with a bumpy rollout of legal marijuana in Canada, which are making it hard for winners to quickly emerge.In October 2018, Canada became only the second country to legalize recreational marijuana. But it’s still not particularly easy for Canadian consumers to get their hands on cannabis, as the pace of dispensary openings has been slow.In a research note, Vivien Azer of Cowen & Co. offered this example to demonstrate how sparse dispensaries are, on a per capita basis, in Ontario, the country’s most populous province:Kenneth Shea, a Bloomberg Intelligence analyst, notes that even within the small ecosystem of stores, it’s been tough in early days to match supply with demand, with dispensaries sometimes sold out of higher-quality strains.Meanwhile, average prices for legal cannabis remain well above prices on the illegal market. If the legal product is still inconvenient to buy, and if the illegal product is cheaper, then it follows that dispensary sales of cannabis haven’t exactly soared yet.In this fast-evolving, Wild West of a market, some industry heavyweights have ended up disappointing investors with their recent sales or profitability figures. Aurora Cannabis Inc., for one, had said in May it was on track to achieve growth in adjusted earnings before interest, taxes, depreciation and amortization in the fourth quarter. When it reported results last week, it said it had failed to meet this target, citing “challenges at the retail level” that were “beyond its control.”That doesn’t mean there aren’t realistic paths for the industry’s leading companies to earn more revenue as they bolster their capacity and as the forthcoming addition of more Canadian retail locations gives them a chance to court more customers. Plus, some of the biggest opportunity in Canada is yet to come: In the first year of legalization, the country allowed sales of only certain cannabis products, including smokeable flower and oils. Edibles and beverages are to be phased in later this year, potentially drawing interest from a wider swath of consumers who aren’t interested in smoking but are curious about cannabis.Looking beyond Canada, forecasts suggest medical and recreational markets will continue to open up worldwide, providing ample opportunity for long-term growth if these companies can ramp up their supply quickly and build compelling brands.So, a year after Tilray’s wild ride, investors seem to be getting more cautious about cannabis stocks. It’s hard to know which companies will eventually prosper — and it’s risky to try to make a quick investing buck from it. The outlook for the industry as a whole, however, remains plenty upbeat.To contact the author of this story: Sarah Halzack at shalzack@bloomberg.netTo contact the editor responsible for this story: Michael Newman at mnewman43@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at©2019 Bloomberg L.P.

  • Is Tilray Stock’s Crushing Bear Market Finally Over?

    Is Tilray Stock’s Crushing Bear Market Finally Over?

    Tilray (NASDAQ:TLRY), like so many marijuana stocks, is having a terrible year. Yes, some traders like to make fun of anyone that bought Tilray stock near its $300/share peak. But don't forget that as recently as this January, Tilray stock still traded for as much as $100 per share. This year alone, shares have lost more than half their remaining value.Source: Jarretera / That shouldn't come as a surprise. As I explained in May, the company was doing better on earnings but the supply growth from other producers overwhelmed Tilray's progress. That's been a valid concern so far. TLRY stock has continued to sink as the oversupply in the Canadian marijuana market has further intensified.The worst may finally be over, however. Tilray stock has rebounded more than 20% from its 52-week low since the start of September.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip Is Tilray ready to rally again? Tilray's Growth Strategy Seems ReasonableDespite the punishing decline in Tilray's stock price, management hasn't panicked. As I explained in that previous article, Tilray CEO Brendan Kennedy has focused on disciplined supply growth at a reasonable price. Tilray's deals, such as buying Manitoba Harvest came at affordable prices rather than paying big bucks as firms like Canopy Growth (NYSE:CGC) have done with some of their acquisitions.Tilray has also wisely used convertible bonds to raise funds. The convert feature is now way out of the money, ensuring that shareholders won't be diluted unless Tilray shares go on a monster run. This was a savvy way to raise nearly half a billion in funds without hitting TLRY stock owners with much dilution.Finally, while the international market hasn't taken off that quickly, Tilray has a shot there as well. The company is building out its facilities in Portugal -- again at a reasonable build-out cost. Still Hasn't Reached Critical MassTilray stock bears, on the other hand, continue to question Tilray's prospects. While the company certainly has avoided some of the excesses of its rivals, at the end of the day you need revenues and profits to justify your share price.And Tilray simply doesn't have much of either. Tilray's market cap, even with the stock at just $30, is still almost $3 billion. That's a huge valuation for a company that has produced less than $100 million in revenues over the last year. If revenues reach $200 million over the next year or two and Tilray manages to maintain a still robust 10x price/sales ratio, that'd imply an additional 33% downside on TLRY stock to around $20/share.Also, despite the small revenue base, Tilray has a ton of product lines. With the addition of Manitoba Harvest, it now has foods and supplements in addition to the more standard fare. And Tilray has international operations in a variety of countries. Yet, it hasn't added up to a critical mass that can deliver sustainable profits just yet. Like with Aurora (NYSE:ACB), Tilray has a lot of irons in the fire, but there's no sign that any particular thing is heating up just yet. CannTrust Reminds Us Of Dangers In The Cannabis IndustryWhile Tilray stock has enjoyed a welcome rebound, the industry isn't out of the woods yet. The huge supply and demand imbalance continues to weigh painfully on the sector. And that's not all. Regulatory risk remains a major concern.Tuesday brought us a fresh reminder on that front. CannTrust (NYSE:CTST) stock plunged another 14% on the day. CannTrust hit new all-time lows after admitting that Health Canada had suspended the company's license to produce and sell marijuana. It's a suspension, rather than a full revocation of their operating license. Still, it was a huge blow to the company's already damaged credibility.The license suspension on its own shouldn't come as a huge surprise. As InvestorPlace's Josh Enomoto recently wrote, CannTrust suffered two major scandals. The first involved illegal growing operations hidden with false walls. CannTrust fired its CEO with cause, along with other top employees, as a result. The company also somehow had black market seeds get mixed into its inventory.Adding it all up, CannTrust stock is now down a shocking 90% from where it traded earlier in 2019. That's a nearly total wipeout for a New York Stock Exchange-listed company. While there's nothing that dramatic going on with Tilray from a scandal point of view, CannTrust's collapse serves as a fitting reminder that this is a new industry that will have tons of growing pains.Also, it's worth noting that marijuana companies have started getting more traction in mainstream stock indexes and associated ETFs. However, the index operators will now kick CannTrust stock out of the primary Canadian stock index and related ETFs, and other fund operators may be slower to include pot stocks like Tilray in their funds as a result of this incident. Tilray Stock VerdictTilray has much better management than CannTrust, thank goodness. But that doesn't mean that is time to get too excited about the recent rebound in the TLRY stock price.The cannabis industry is continuing to face massive growing pains. There will be winners eventually. But more companies will end up like CannTrust as well. The industry is young and a lot of competition has to fall by the wayside for the survivors to prosper. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Tilray, without a major partner, hasn't yet proven that it will be able to be one of the industry's eventual winners. For now, Cronos (NASDAQ:CRON) and Canopy, with their major backers, might be a safer choice until the industry's slump ends.At the time of this writing, Ian Bezek had no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Is Tilray Stock's Crushing Bear Market Finally Over? appeared first on InvestorPlace.

  • Avoid Aurora Cannabis Stock Until Investor Fears Subside

    Avoid Aurora Cannabis Stock Until Investor Fears Subside

    Aurora Cannabis (NYSE:ACB) can't seem to catch a break. After rallying to around $6.30 earlier this month, the stock resumed its downtrend, closing Sept. 17 at $5.27. What will it take for Aurora Cannabis stock to shake off its downtrend?Source: ElRoi / On Sept. 11, Aurora reported fourth-quarter 2019 results that disappointed investors. Markets did not like the company's revenue and margin numbers. Revenue rose 52%, adding $44.9 million CAD in the quarter to the $98.9 million CAD total.But, the average selling price of dried cannabis dropped 30% to $5.58 CAD and the average selling price of cannabis extracts fell 23%. The declines are due to increased sales in the consumer market. Bulk wholesale sales, although having a very attractive margin, also hurt average selling price slightly.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis fall, Aurora will introduce new product formats to the Canadian consumer market. This could widen the company's addressable market but may also result in lower profitability in the near term.Retail distribution is still a short-term constraint, as the company's fiscal 2019 results showed. But a retail infrastructure expansion in 2020 -- with physical store openings across Canada -- will drive revenue growth. Higher OutputKilograms produced rose 12-fold to 29,034 kilograms. Aurora sold 17,793 kilograms, up 10-fold from last year. Operating costs improved but not enough to satisfy investors. Gross margin improved slightly, reaching 58%. ACB stock price will respond favorably if the company demonstrates an ability to keep ahead of its competition. It improved its per-gram cost of production, which gives Aurora plenty of flexibility to expand its business. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars The Aurora Sky unit was produced at a cost of around $1 a gram. Continued improvements, while maintaining a high-quality product, will help Aurora operate with extremely healthy margins. Expansion in the United States, EuropeAurora recently announced a major partnership in the United States. Along with the UFC, a mixed martial arts organization, Aurora will fund a joint clinical research program that will examine the use of hemp-derived CBD as an effective treatment for pain, inflammation, wound-healing and recovery on MMA athletes. If the study yields positive data, Aurora could form partnerships and collaborative studies with other sports organizations. For now, the UFC deal is a big win for Aurora because the organization has over 300 million fans in over 170 countries.In Q4, Aurora benefited from stronger European sales. Sales in Germany lagged and will need more attention. Aurora won a contract for supplying a very small amount of cannabis in Italy. Still, getting support from the Italian government is a positive start. And because the European market is quality driven, not price driven, Aurora has a good chance of winning more supply deals in the future. Risks for ACB StockAurora is a leading cannabis supplier in Canada, but revenue growth did not meet analyst expectations. Even though it reached almost 90,000 registered patients, sales will only improve as patients take advantage of writing off the cost of medical cannabis. Increasing insurance coverage will also lead to higher consumption of its products. So long as customers seek physician care while using medical cannabis, Aurora will benefit from higher sales in the medical market.After watching ACB stock fall so quickly in recent trading sessions, it is clear that investors are no longer willing to wait for the company to reach positive EBITDA. Yet anyone invested in Aurora stock will need to exercise more patience. The company is currently manufacturing all of its products at commercial scale. As it rolls out its products, it will not sell below costs. So as its market expands, product demand will result in a sustained pricing level that is of high margin for Aurora. My Takeaway on Aurora Cannabis StockDespite analysts expressing disappointment over Aurora's Q4 numbers, the average price target is still 52.9% above the recent $5.27 closing price (per TipRanks). In the next few days, Aurora stock could trend lower and might even close at new yearly lows. The sentiment is too negative to ignore, so investors should wait for buyers to step in before starting a position.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Avoid Aurora Cannabis Stock Until Investor Fears Subside appeared first on InvestorPlace.

  • There Isn’t a Silver Lining for Aurora Cannabis Stock

    There Isn’t a Silver Lining for Aurora Cannabis Stock

    The past six months have gone from bad to worse for Canadian cannabis producer Aurora Cannabis (NYSE:ACB). In just a few short months, Aurora Cannabis stock has shed nearly 70% of its value as both the industry and the firm itself faced severe headwinds.Source: Shutterstock Despite being a popular pick among millennial investors this summer, ACB stock has been on a downward trajectory. Even worse, it looks unlikely to reverse anytime soon. Aurora Cannabis Stock DowngradeA big part of the reason why the ACB stock price has floundered is due to negative analyst commentary. Most recently, Stifle Nicolaus analyst Andrew Carter gave the stock a "sell" rating with a $5 price target. That's a whopping 30% lower than where the stock is trading today. That's including the massive decline over the past six months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCarter pointed to the firm's dismal fourth-quarter results. He noted that this is just the beginning of a larger, more concerning story. Carter believes the firm will soon be coming to capital markets, looking for more cash to fund future growth plans. * 7 Momentum Stocks to Buy On the Dip The trouble with that is investors aren't exactly keen on the marijuana industry right now. And that's reflected in the prices of cannabis stocks across the board. Simply put, the uncertainty about the Canadian recreational market coupled with worries about the industry's future as new regulations are proposed has made investing here risky.With the current macroeconomic environment and a skittish market on the table as well, investors are putting their money elsewhere. Future Looks BleakBut even if they were looking to take on a little risk and dip their toe in the marijuana market, Aurora Cannabis stock is likely the last place they'd want to put their money. As I highlighted last month, ACB hasn't given investors much to go on when it comes to future growth prospects.So far, the firm hasn't given any indication about its plans to enter the CBD market. That's a huge growth opportunity that isn't marred with as many regulatory challenges as the recreational cannabis industry is.Even more importantly, though, is the fact that ACB doesn't have any commercial partners to help it grow in the retail space. This is a big deal for a few reasons.First, in order for pot products to gain momentum, they need money and reach. Big brands like Molson Coors (NYSE:TAP) and Constellation Brands (NYSE:STZ) have been inking deals with cannabis companies to bring their products to market. However, ACB hasn't buddied up. That added safety simply isn't there for ACB investors.Not only that, the fact that no big-name brands have cozied up to ACB should raise some major red flags. The company even brought on Nelson Peltz as a strategic advisor in order to help the firm find a strategic partner. It's worrying that six months later, there's been no movement in that department. Time is Running Out for ACBIt's hard to find any upside in Aurora Cannabis stock right now. As the industry comes under pressure, competition will heat up. Plus, ACB's better-funded, more exposed rivals will likely come out on top. Unfortunately, Aurora appears to have missed that boat. As the firm starts searching for ways to fund its future, it will likely struggle to find investors willing to take that risk. The Bottom LineNormally, I love a turnaround story. And I truly believe that following Warren Buffett's advice to be fearful when the market is greedy and greedy when the market is fearful is hands down the best way to make investment decisions.However, I think the worry surrounding ACB stock right now is well founded. Not only is the company in a precarious position during a turbulent time for the pot industry, but its balance sheet is on shaky ground as well.The firm has paid a staggering amount for its acquisitions over the past few years. Those investments have yet to prove their worth. I'd stay well away from Aurora Cannabis stock for the foreseeable future unless the company makes a drastic about-face over the next few months.As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post There Isn't a Silver Lining for Aurora Cannabis Stock appeared first on InvestorPlace.

  • Canopy Growth Looks for CEO, Linton Gets a New Role
    Market Realist

    Canopy Growth Looks for CEO, Linton Gets a New Role

    Canopy Growth took the market by surprise and let CEO Bruce Linton go. After leaving Canopy Growth, Linton joined three companies in an advisory role.

  • CannTrust Loses License: Will It Fall below $1?
    Market Realist

    CannTrust Loses License: Will It Fall below $1?

    CannTrust reported that its license under the Cannabis Act was suspended. The company won't be able to produce cannabis. Will CannTrust fall below $1?.

  • Aphria Stock Is the Most Well-Behaved Pot Stock on the Market

    Aphria Stock Is the Most Well-Behaved Pot Stock on the Market

    Anyone who's been halfway paying attention to the action in cannabis stocks knows it hasn't been an easy ride. From the most well-known names to the most obscure, it's been a volatile and difficult ride. Aphria (NYSE:APHA) is no exception, with Aphria stock down big from its highs.Source: Shutterstock Shares have fallen roughly 40% from the February highs and almost 60% from its 52-week highs. To say that it's been a rough ride is putting it lightly and these two performance marks emphasizes as much.Earlier this week, we highlighted a silver lining in Aurora Cannabis (NYSE:ACB). After the company reported earnings, shares took a tumble. But so far at least, the stock has avoided a lower low. That's the positive take despite the revenue miss and bearish reaction in the stock price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, APHA stock has its own silver lining: the stock is actually trending higher. Aphria Stock Is Stronger Than It SeemsComing into August, Aphria stock had been dragging hard. Shares were down almost 50% in just a few months and sentiment couldn't have been worse. Then better-than-expected earnings propelled shares higher, as the stock ran from a low of $5.02 to roughly $7.50 just a day later.The one-day ~50% rally set the tone for APHA, even though shares are now lower at this point. I think the stock is down from its post-earnings high as investors try to work through various resistance points and as they fight the bearish stigma attached to the industry right now. * 7 Tech Stocks You Should Avoid Now There's no reason to mince words about it: Cannabis stocks are out of favor right now. That's not likely to persist forever, which is why it's important to look for stocks showing relative strength. While Aphria stock is not showing strength relative to the market, it is showing strength relative to its peers.Identifying stocks with relative strength is because they're the ones that tend to outperform when the group comes back in favor.Even though shares have been under pressure lately, Aphria stock is still up 16.2% so far in 2019. That's better than Canopy Growth (NYSE:CGC), Aurora Cannabis and Cronos Group (NASDAQ:CRON). CRON, ACB and CGC are all positive on the year too, but lag APHA.The performance is also better than Tilray (NASDAQ:TLRY) and New Age Beverages (NASDAQ:NBEV), which are both down in 2019.Of the group, Aphria stock is the top performer over the last six, three and one month. For the last timeframe, APHA stock is up almost 11%. So this is certainly worth paying attention to. The Exact Breakout Point As you can see on the chart above, we have an ascending triangle formation developing in Aphria stock. That's where uptrend support (blue line) continues to squeeze a stock higher against a static level of resistance. It's a bullish trade development, as investors look for a breakout.In this case, recent resistance has been near $7.20. But that's not the big breakout point, in my view. Instead, I'm looking at the $7.60 level. This level has been notable resistance since the April breakdown. If Aphria stock can clear it, it will also mean that APHA has reclaimed its 200-day moving average.In this case, clearing $7.60 could trigger a big-time breakout. The first upside target is 61.8% retracement at $8.68. Above that and I'm looking for a gap-fill up to $9.85.There is risk, though.If uptrend support fails, it puts the ascending triangle formation at risk of failing. Below it and the 50-day moving average is the first downside target. Below that puts the $5.80 level on watch and below that, the $5 mark is possible. The Bottom Line on APHA StockThe bottom line here is simple: Aphria stock is the most well-behaved stock in the cannabis space showing the most relative strength among its peers. Its stock has a very clear setup on the charts, while its most recent earnings report was good enough to ignite the recent rally.A glance at the balance sheet reveals $422 million in cash and short-term equivalents. That's notable, given the stock's $1.67 billion market cap.Further, current assets of $577 million is more than five times its current liabilities of $102.5 million. Total assets also significantly outweigh total liabilities, total $1.8 billion vs. $524 million. * 7 Momentum Stocks to Buy On the Dip In other words, Aphria is more than capable of covering its short-term obligations as it focuses on growing its business. If there's a speculative cannabis stock worth monitoring right now, it's Aphria in my opinion.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Aphria Stock Is the Most Well-Behaved Pot Stock on the Market appeared first on InvestorPlace.

  • Cannabis Roundup: IIPR, WEED, ACB, and APHA
    Market Realist

    Cannabis Roundup: IIPR, WEED, ACB, and APHA

    The markets were flat today as the Fed started its two-day meeting. Cannabis ETFs reported mixed performance, and cannabis stocks traded mostly in the red.

  • 5 Top Stock Trades for Wednesday: BA, ACB, PINS

    5 Top Stock Trades for Wednesday: BA, ACB, PINS

    The stock market was relatively calm on Tuesday as investors await a rate decision from the Federal Reserve on Wednesday. There were still some big movers on the day though, so let's look at a few top stock trades. Top Stock Trades for Tomorrow 1: BoeingAs investors grow optimistic about getting the MAX 737 back in action, Boeing (NYSE:BA) stock is coiling and looking to move higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares have been consolidating between $375 and $385. In order to trigger a move higher, BA stock needs to clear $385. Just overhead -- near $387 -- is the 38.2% retracement. If Boeing can clear both marks, a rally into the $390s is possible. Above the March high and BA may even fill the gap back up over $410. * 7 Tech Stocks You Should Avoid Now If shares resolve lower, see that recent uptrend support (blue line) buoys the name. Top Stock Trades for Tomorrow 2: Aurora CannabisI hate to say it, but investors should have seen the decline coming in Aurora Cannabis (NYSE:ACB) stock. InvestorPlace readers have been leery of ACB for months now, and our recent call that shares may fall again only reiterated that cautious stance.Now breaking below the August lows, let's see if ACB draws in buyers near $5. We can't trust the name on the long side while it's below $5.40 -- at least in the short term. Even if it does reclaim this mark, it's only good for a short-term bounce.Below $5 and the December lows are possible, but let's take it one step at a time and see if it hits $5 to begin with. Top Stock Trades for Tomorrow 3: PinterestPinterest (NYSE:PINS) wants to begin rallying again, but it faces a tough road with high-growth tech stocks under pressure recently. On the charts, there's a lot of overhead, too.$30 is a significant mark, while the 50-day moving average is up at $30.57 and the declining 20-day moving average is at $31.05. $32 has also proven significant. Not to pummel you with numbers, but making matters even more complicated, the 50% retracement is at $29.94 and the 38.2% is at $31.57.So let's simplify it.PINS has a lot of marks between $30 and $32. Above $32 and it has mostly blue skies. Below $30 and it has the 100-day moving average at $29 and uptrend support at $28.Even simpler? Above $32 is bullish, below $28 is bearish. Top Stock Trades for Tomorrow 4: CorningCorning (NYSE:GLW) is getting hit hard on Tuesday, down more than 7%. On the weekly chart above, we can see shares being rejected by the 100-week moving average.It puts a key support zone on watch just below current levels. The ~$27 mark has been notable over the last three years, while the 200-week moving average stepped up as big-time support last month. That's currently at $26.50.Below that mark and GLW is in trouble. If we get a dip down into the $27 area, aggressive investors have a better risk/reward there than here, but GLW isn't my cup of tea. Top Stock Trades for Tomorrow 5: Acadia PharmaceuticalsAcadia Pharmaceuticals (NASDAQ:ACAD) has been a beast lately, gapping from $23.77 to almost $39 in a single move.ACAD stock consolidated that move beautifully in a narrowing range, before resolving higher on Monday. It tried to breakout over $44 again on Tuesday -- which has been multi-day resistance -- but was rejected. * 7 Momentum Stocks to Buy On the Dip Over $44 puts the $44.85 highs on the table and over that, ACAD can regain upside momentum. A break below $40 signals that Acadia needs more time to consolidate.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post 5 Top Stock Trades for Wednesday: BA, ACB, PINS appeared first on InvestorPlace.

  • Aurora versus Canopy: A Post-Earnings Valuation Update
    Market Realist

    Aurora versus Canopy: A Post-Earnings Valuation Update

    On September 16, Aurora Cannabis was trading at 7.26 Canadian dollars. Its stock has fallen 14.7% since it reported its fiscal 2019 fourth-quarter results.

  • Aurora Cannabis Stock and the Pot Market’s Credibility Problem

    Aurora Cannabis Stock and the Pot Market’s Credibility Problem

    Aurora Cannabis (NYSE:ACB) missed earnings estimates by a mile, but you wouldn't know it from the company's press release or statements from some boosters.Source: Shutterstock Sales of $74.2 million were about $7 million below estimates that had previously been revised down, and there was an unexpected loss of $8.9 million from two of its investments. The net loss to common stockholders, however, was reported as just 2 cents per share. * 7 Momentum Stocks to Buy On the Dip The company's press release was filled with happy talk. CEO Terry Booth said ACB had taken its place "as the global leader in cannabis production, research, innovation, and international market development." He later called himself "a little red-faced" about the miss.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut one analyst was so fooled he proceeded to pound the table for a stock that is now 15% below its pre-earnings level, insisting sales had "soared 349%." The Credibility GapAll this highlights a growing credibility gap between pot advocates and economic reality, the kind of thing that often comes before a market's hard fall.Pot advocates have insisted that legal marijuana is a gold mine with enormous pent-up demand. The reality is it's a minefield with a lot of un-exploded ordnance.While Canada legalized marijuana use a year ago, it's still subject to provincial regulation. Many provinces have been slow-walking their approvals due to concern with health impacts. Legislators in New York refused to go along with a call for legalization. Even Illinois, the 11th state to legalize the drug, is having trouble getting its market set up.At the same time, vaping, a popular method for taking marijuana because it involves taking less smoke into the lungs, is under renewed attack. Aurora chairman Michael Singer said he is "very worried" about the U.S. vaping situation. He insists Aurora will test all its vaping products under rigorous Canadian standards, but a ban on e-cigarettes would be certain to have deep impacts on the marijuana market. The CBD Oil BoomOne big protection against the iffy situation with marijuana is CBD oil. People in chronic pain are anxious to try this marijuana derivative as opioids have become demonized. Aurora has been pursuing the opportunity in the states, using the advice of strategic advisor Nelson Peltz and signing an endorsement deal with the Ultimate Fighting Championship (UFC).But just as the pot market is in a "trough of disillusionment," as I called it before earnings, CBD oil is about to enter one just as Aurora ramps up investment.While there is anecdotal evidence the substance helps with pain, scientists have found no evidence it works on anything but some forms of epilepsy. Pain relief is also one of the least-supported benefits in clinical trials.The result of this lack of information is that desperate people want CBD oil to cure cancer or heal their pets. This could give CBD oil the reputation of being not a cure-all, but snake oil. The Bottom Line on ACB StockThe boom in Aurora Cannabis stock took off before the science or market could justify it.Legal products must go through stringent regulation and tested for safety before they enter a market. Illegal ones do not. Marijuana and its derivatives exist in a gray area between legal and illegal, where all sorts of claims are made but few have been vetted.The two states that legalized weed first, Colorado and Washington, knew they were just making an illegal high legal, and acted accordingly. The new market is out way ahead of its skis. Whether Aurora has enough cash to reach its promised land should now be an open question.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Aurora Cannabis Stock and the Pot Market's Credibility Problem appeared first on InvestorPlace.