|Bid||7.86 x 0|
|Ask||7.89 x 0|
|Day's Range||7.68 - 7.96|
|52 Week Range||6.21 - 16.24|
|Beta (3Y Monthly)||2.76|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 11, 2019 - Nov 15, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||12.64|
Shares of Aurora Cannabis tumbled after the company missed revenue expectations, despite trimming its forecast earlier. Cam Battley, Aurora chief corporate officer, joins Zack Guzman and Akiko Fujita on 'The Ticker' to discuss how the pot company is looking to move forward.
On Sep. 11, earnings results from Alberta-based Aurora Cannabis (NYSE:ACB) stock took the center stage in the cannabis space. To the surprise of analysts, ACB stock posted disappointing earnings. Earlier in August, ACB stock has already decreased the forecast. So when Aurora Cannabis stock missed the diminished expectations, investors were not forgiving.For cannabis investors, ACB stock needs little introduction. At present, Aurora Cannabis is Canada's largest producer of cannabis, which gives the company certain economies of scale. Especially in its early days, Aurora Cannabis stock was a can't-miss for investors. Yet since March, it has come off a long way from peak performance.The ACB stock price is now hovering around $5.90, close to January's lows in the $5 range. Understandably, investors are wondering what may be next for ACB stock given the recent decline in the price. Let's look at the company's fundamentals, industry developments, as well as the stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips ACB Stock's Q4 Results Failed to ImpressWhen it released Q4 results for the fiscal year ended June 30, Aurora Cannabis stock missed revenue expectations. ACB stock's net loss came at C$2.26 million on net revenue of C$98.94 million, with an adjusted EBITDA loss of C$11.7 million (or $8.9 million).Analysts had estimated revenue of C$108 million. In Q4 last year, Aurora stock had reported net income of C$79.9 million, on net revenue of C$19.1 million.Like many other cannabis producers -- such as Canopy Growth (NYSE:CGC) or Tilray (NASDAQ:TLRY) -- ACB has so far not able to convert the revenue growth into real profits.ACB stock's disappointing earnings follow several other poor results from large Canadian cannabis companies. And not everyone is convinced that Canadian recreational pot sales will remain strong.Most pot stocks are burning through loads of cash and losing money like there's no tomorrow. Cash flows are far from predictable. Investors are concerned that the initial hype surrounding the industry could be decreasing further.It is likely that the rich valuations in this commodity-based consumer market may take a further hit in the coming months. The recent price weakness in most pot stocks including ACB has improved relative valuations, but these stocks aren't cheap. Headwinds That May Affect Aurora Cannabis StockIt is important to remember that weed is an agricultural commodity. In late 2018, during the early weeks following legalization, Canadians spent about $40 million on legal weed. However, since then sales haven't really held up. Instead the figures have come in much less robust than initially anticipated.In other words, there are possibly too many players in Canada, a relatively small market. Annual Canadian sales are not likely to exceed $4 billion. In the legal retail market there is an oversupply. And as the largest producer, Aurora Cannabis is likely to have a major supply in its inventory.On the other hand, the black market is still thriving in Canada. Thus, how can a producer like Aurora Cannabis maintain high margins in an industry that does not have meaningful growth potential?No one knows when (or if) federal legalization will happen in the U.S. And other international sales outside these two countries are not big enough to act as a substantial catalyst for the share price of ACB as well as other pot stocks.Could consolidation be a way forward for most of these cannabis producers like Aurora stock? Could Canadian Legalization 2.0 Help ACB Stock?In Canada, pot edibles and beverages will become legal on Oct. 17, one year from the original legalization of cannabis in the country. Industry watchers are referring to this new era in Canadian pot markets as "Legalization 2.0."New products are not expected to hit shelves till Dec. 16 as license holders will have to give Health Canada 60 days notice if they intend to sell them. Upcoming Canadian regulations will strictly limit what types of consumables can be produced and marketed. For example, manufacturers cannot legally combine pot and alcohol in products.In some ways, this significant legal development feels like deja-vu. Many industry watchers regard the legalization of edibles and beverages as another another significant milestone for pot companies. So what does that mean for ACB stock?Around this time last year, Canadian cannabis stocks had started rallying in anticipation of the nationwide adult-use legalization. For example in mid-August, 2018, Aurora Cannabis stock touched a low of $4.05. By mid-October, ACB stock saw a high of $12.53.Therefore, the hype surrounding the launch of pot edibles and drinks in Canada is likely to give a bit of fizz to ACB stock in the coming weeks, too. However I don't expect as big of a jump this September.In other words, it might become a classic case of "buy the rumor; sell the news." The Bottom Line on ACB StockIn the coming weeks, I expect ACB stock to trade between $5 and $7. From a valuation standpoint, the stock is not necessarily a bargain at $5. However, I expect the second stage of legalization in Canada to give a boost to most pot stocks.For Aurora stock, $7 level would be likely to act as strong resistance. Only after the stock is able to push through and stay above $7 can Aurora shareholders begin to relax for the longer-term prospects.The cannabis industry remains speculative at best. Yet there may still be an opportunity for those with a high risk tolerance. Given the new steps in legalization in Canada, this quarter might be an opportune time to start a position ACB stock.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Aurora Cannabis Stock Share Price Might Still Move Up appeared first on InvestorPlace.
Cronos Group (NASDAQ:CRON) stock fell 5.2% on Sept. 9 as a result of investors' concerns about the cannabis company's focus on vaping products. Those offerings have come under severe scrutiny in recent weeks, due to the death of six people from lung disease related to their use. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsCronos isn't the only cannabis company to have a vested interest in the success of vaping pens, but at the moment, it appears to be the biggest player taking it on the chin as a result of the recent health scare. If you own CRON stock, now is the time to be thankful that Altria (NYSE:MO) owns 45% of the cannabis company, with an option to buy an additional 10% in the future. Here are three reasons why that's the case. * 7 Discount Retail Stocks to Buy for a Recession Altria Understands Lungs Better Than MostWho would have more knowledge about how our lungs operate than a company whose products are directly responsible for harming them?Altria would not have made a $12.8 billion investment in Juul Labs or a $1.8 billion investment in CRON stock if it didn't understand the health risks associated with vaping. MO has been down this road many times with cigarettes. The fact that President Trump and his administration are trying to crack down on the sale of flavored e-cigarettes, while understandable, isn't really crucial for CRON stock. According to the Center for Disease Control and Prevention, 480,000 Americans die each year due to smoking. That's a staggering amount. However, we haven't seen cigarettes outlawed as a result of that sad situation. In fact, the FDA is currently trying to ban the sale of menthol cigarettes, but the tobacco companies will continue to fight the agency's legal efforts for years to come. Flavored e-cigarettes will likely take a long time to ban. The reality is that Altria understands what's at stake when it comes to vaping and e-cigarettes. They, along with the rest of the industry, are not going to go quietly into the night. Remember, the NRA isn't the only trade group in the U.S. with a powerful lobby. CRON Stock and a Potential MergerIn recent weeks, Altria's been negotiating with Philip Morris International (NYSE:PM), the owners of the Marlboro brand outside the U.S., to reunite after 11 years as separate companies. Last October, before Altria bought up a big chunk of CRON stock, I suggested that Philip Morris should make a play for one of Canada's big cannabis companies. "The tobacco companies were born to manufacture and sell the various by-products of the cannabis plant which includes marijuana and hemp," I wrote at the time. "The fact that only now are they considering a move -- after legalization in Canada -- suggests they've been irreparably scarred by years of tobacco litigation."Cowen & Co. analyst Vivien Azer recently suggested that the crackdown on vaping flavoring might be the nudge CRON and MO needed to officially tie the knot. After an acquisition, CRON would be controlled by a company with $54.7 billion pf annual revenue and $14.3 billion in free cash flow, providing it with plenty of capital to fight any potential opposition to cannabis vaping in the future. Altria Has a Beverage UnitCronos isn't the only cannabis company with a big focus on vaping. Aurora Cannabis (NYSE:ACB) is focusing on vape pens and edibles while ignoring cannabis beverages.I believe that's a mistake. Perhaps not a lethal one, but a mistake nonetheless. The older people get, the less they want to be messing with their lungs,. That's why I think cannabis-infused drinks will win in the end. Altria, although not nearly as involved in the alcoholic beverages industry as it once was, still owns premium wine producer Ste Michelle Wine Estates. In addition, as a result of Anheuser-Busch's (NYSE:BUD) $100-billion acquisition of SABMiller in 2016, Altria owns 10% of BUD stock.It's hard to imagine Budweiser turning down an opportunity to partner with Atria and Cronos to produce cannabis-infused drinks on a global basis. As long as Altria continues to own a big chunk of Cronos Group stock, I don't think investors need to overreact to the latest health concerns surrounding vaping. 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 * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Reasons Altriaas Investment in Cronos Group Stock Is Positive for CRON appeared first on InvestorPlace.
Among investment sectors, few have incurred the kind of volatility as legal marijuana. Major Canadian cannabis players like Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON) forwarded disappointing earnings reports. Thus, with Aurora Cannabis (NYSE:ACB) set to launch its fiscal fourth-quarter results, many had hopeful eyes on Aurora Cannabis stock.Source: Shutterstock Unfortunately, those expectations were badly misplaced. Aurora disclosed its Q4 numbers after Wednesday's close, and Wall Street did not react kindly. On the top line, the medical-cannabis specialist rang up $98.9 million CAD, which represented a 52% lift from the prior quarter. However, Aurora management forecasted Q4 sales to come in between $100 million CAD to $107 million CAD. As a result of the revenue miss, the ACB stock price tanked in after-hours trading.After a night's rest to digest the news, the Street immediately hit the "sell" button. Due to the mini-panic, Aurora Cannabis stock closed Sept. 12 below the $6 level. From a technical perspective, this was an unfortunate development. ACB stock was finally looking interesting since the beginning of this month. Now, questions have sprouted about this once-vaunted cannabis player.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnother factor that has raised concerns among investors is Aurora's international business. One of the biggest investment arguments for Aurora Cannabis stock is its international footprint, the biggest in the sector. However, most of the company's financial performance comes from its local Canadian market. * 10 Battered Tech Stocks to Buy Now But in Europe, for example, the company generated $4.5 million CAD in medical-cannabis sales. That's up 12%, a very modest rate compared to its Canadian growth rate. With management continuing to make high-dollar investments, can ACB stock survive? Aurora Cannabis Stock Tanked for Understandable ReasonsHeading into the Q4 earnings report, the ACB stock price had robust technical momentum. At the same time, on a fundamental basis, the organization was going up against a wall of pressure.Primarily, every other major cannabis player had failed to impress the Street. Unlike in late 2017, Aurora Cannabis stock and its ilk did not benefit from the honeymoon effect. Cannabis investments no longer moved on compelling narratives, such as Canada legalizing recreational weed. Instead, prospective buyers were placing extra attention on the "boring" stuff, like fiscal sustainability.That created a major problem. Let me be blunt: There are two reasons why mainstream financial institutions take a pass on cannabis-related businesses. First, legal uncertainties -- and political controversies -- surround the sector. Second, the financials for most of these names are rough.And that's been the story for Aurora Cannabis stock and its peers throughout this year. Undoubtedly, Aurora and the rest of the marijuana market offer tremendous potential in their narratives. For example, if the U.S. legalizes marijuana, it changes the calculus for ACB stock.But before the narrative comes the reality. While Aurora's revenue growth has been impressive on a mathematical scale, so has its debt load. Sure, companies like Aurora have healthy cash balances, in part due to strategic partnerships. Yet the concern is this: Aurora cannot keep spending without turning at least some of its narrative potential into hard results.Ultimately, I think that's why the Street was so disappointed. The cannabis market has stepped out of the honeymoon phase and into the "show me" phase. In other words, investors are tired of hearing bedtime stories. Instead, they want some evidence that these tales are based on facts.If you looked at the Q4 results, you really didn't get that impression from Aurora Cannabis stock. Should You Dump ACB Stock?Part of being a good investor is knowing when to give up. Unlike sports, there's no such thing as a moral victory in the markets. Either you're making money or you're not.Under this framework, Aurora Cannabis stock looks like a candidate to sell. And I don't blame you if you decide to go that route.That said, here's the plain truth about ACB stock: No matter what anybody says about the financials, the play here has always been the narrative. When companies in established industries show the kind of quarterly results that Aurora does, you should jettison immediately -- we know approximately the upper boundaries of traditional industries.But we really don't know anything about marijuana. Maybe the segment peaked in Ottawa, and everybody else doesn't know it yet. Or, the U.S. and other regions will start opening the legalization door.Clearly, Aurora Cannabis is banking aggressively on this latter possibility. Whether you believe in the same will determine how you approach ACB stock.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 * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Hereas Why Aurora Cannabis Stock Stumbled appeared first on InvestorPlace.
London Stock Exchanges Rebuffs Hong Kong Hong Kong is in the news again, but this time not for rioting. The London Stock Exchange (OTCMKTS:LNSTY), which trades over the counter in the US, has rejected the preliminary $37 billion takeover bid from Hong Kong Exchanges and Clearing (OTCMKTS:HKXCY), and has also said that it has no interest […]The post Market Morning: LSE Rebuffs Hong Kong, China US Ceasefire, Secret Cannabis Formula, ECB Printing Resumes appeared first on Market Exclusive.
Legalizing medical marijuana has been a challenge in Florida. Looking at the initiatives, recreational legalization might see daylight in Florida by 2020.
The two largest pot companies in the world have developed secret formulas that predicts U.S. federal and state cannabis legalization.
Like many other companies in the cannabis industry, Aurora Cannabis Inc (NYSE:ACB) is facing some challenges. These challenges have caused the price of Aurora Cannabis stock to fall over the past few months. In March, it traded over $10 per share, while ACB stock price is currently below $6.Aurora just announced its Q4 earnings. Here is a look at the nine Key Performance Indicators that the company likes to focus on. The comparisons below reflect changes from the company's third quarter to its fourth quarter, which ended on June 30. All of the monetary figures are in Canadian dollars.Consumer Revenue grew about 53% from $29.6 million to $44.9 million.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMedical Revenue grew almost 10% to $29.6 million from $27 million.International Revenue increased 12% from $4 million to $4.5 million.Cash Cost to Produce a Gram dropped an impressive 20% from $1.43 to $1.14.Average Net Selling Price per Gram fell 17% to $5.32 from $6.40.Gross Margin on Cannabis Net Revenue increased three percentage points to 58%.Kilograms Produced grew by 86% to 29,034.Selling, General, and Administrative costs rose 9% to $72.9 million.Active Registered Patients increased by 10% from 77,136 to 84,729. * 7 Discount Retail Stocks to Buy for a Recession At first glance, these numbers appear to be pretty impressive. Other than SG&A costs growing by a small amount and the drop in the average selling price per gram, the numbers increased considerably.However, something that wasn't in the press release announcing the earnings may give more insight into how the company is performing. And that would be its actual earnings.That's right. The company's profits (or, in the case of its 2019 results, its losses) were not mentioned in the earnings release. That has to be a sign that its earnings were not good because if they were, you can bet they would have been highlighted. I found them on the company's consolidated financial statements.Its net income for 2019 was a loss of $297,924,000 Canadian dollars. That was a dramatic drop verses the previous year's income of $69,227,000 CAD. In 2019, ACB reported a loss per share of 29 cents CAD, versus its 2018 EPS of 16 cents CAD. In Q4, its EPS came in at 13 cents, unchanged versus the same period a year earlier.I suppose that I can't blame ACB for not wanting people to focus on the fact that the company is losing a lot of money. Obviously, however, you should be aware of this if you own Aurora Cannabis stock or are considering buying shares. At some point, ACB will need to make some significant changes because if it keeps losing money, then ACB stock price will probably keep going down. What's next for Aurora Cannabis Stock?ACB stock has been consolidating over the past few days, since it broke out of its recent downtrend. If Aurora Cannabis stock trends lower, it will probably find some short-term support around the $5.50 level because that is where its most recent low was two weeks ago. If ACB stock rallies, there will most likely be resistance again around the $7 level because that was where it hit resistance in early August. If Aurora Cannabis stock falls, look for support around $5 because that is where its lows were in January and December.At the time of this writing, Mark Putrino did not hold any positions in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Where Is Aurora Cannabis Stock Headed? appeared first on InvestorPlace.
Pot stocks faced pressure this week after Aurora Cannabis posted disappointing earnings, but Cowen analysts are mostly bullish on the sector as the firm initiated coverage of five other companies. Cresco Labs , Green Thumb and Curaleaf all received outperform ratings from Cowen with per-share price targets of $14, $18.
Aurora Cannabis posted its fourth-quarter earnings after the market closed on Wednesday. The company posted revenues of 98.9 million Canadian dollars.
High Tide Announces Opening of 1st KushBar Location Bringing its Total to 25 Branded Retail Cannabis Stores across Canada
Just a few giants still dominate the emerging cannabis industry, so it's always news when one reports earnings. Number two by market cap is Aurora Cannabis (NYSE:ACB) stock, which dropped roughly 9.5% today on last night's quarterly results. But there's a lot more to this story behind the headlines - and a major upside catalyst on the horizon. So let's take a look.The sell-off tells me that investors reacted to analyst expectations and not reality. Wall Street had been looking for roughly 103 million Canadian dollars in revenues, and Aurora turned in C$98.9 million.Now, first of all, only a handful of analysts follow ACB stock at this point, so it's hard to extrapolate anything meaningful from that. Today had nearly 25 million shares changing hands based on, like, five guys' opinions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecondly, keep in mind that Aurora's revenues are growing faster than you'll see with almost any other industry.Specifically, in this latest quarter (fiscal Q4 2019), Aurora's C$98.9 million was a 52% increase from fiscal Q3 2019 revenues of C$65.1 million. When you look at the year-ago quarter, that's a 72% increase (from C$55.2 million). And when you look at the same quarter two years ago, that's a 447% increase (from C$18.1 million).And then you've got to look at future projections. In the chart below you see that the trend is still strong. For 2020, we're looking at potentially $521 million in annual revenues - more than double where we are now. And by 2022, Aurora Cannabis is projected to be a $1.7 billion company by revenue. That's just three years from now. (And that's U.S. dollars, not Canadian.)Source: YCharts So for Aurora to miss by C$4 million … that's a drop in the bucket. Especially when you look at the bigger trend.Now, I mention this not to prove my commitment to ACB stock or really any particular cannabis company. I mention it to illustrate that the sellers today are falling into a trap that we at Investment Opportunities avoid:…namely, getting caught up in short-term thinking for what should be a long-term play.And the sellers are about to miss out on what could be a major bullish event. Get Ready for "Legalization 2.0"Now is a particularly bad time to be selling Canadian pot stocks. Because "Legalization 2.0" is about to hit.Next month, on October 17, companies can apply for a license from Health Canada to sell cannabis edibles, beverages, and vaping products, as well as extracts and topicals. Then, 60 days later - in December - these products will actually hit the store shelves.A year into full legalization, Canada has over 200 licensed growers and sellers of the marijuana flower - for a country of less than 40 million people. If the cannabis giants want to stay dominant, there's a big opportunity among edibles and vapes in particular. These products have higher profit margins than the flower - as high as 92%. What's more, they open the doors to a deeper pool of customers… including folks more likely to use cannabis if they can do so more discreetly, without the smoke.And this is clearly on executives' minds. Aurora Cannabis already warned in May that it would be building up inventory, preparing to release edibles, vapes, and concentrates - and that, in fact, this buildup may hold back revenues a bit for this latest quarter.Aurora's strategy here is telling. The company has made it pretty clear that this specific product line-up takes the "U.S. consumer" into account. And when you look at the numbers, it's obvious why. Canada is Just The BeginningThe California marijuana market alone is bigger than all of Canada… and it's growing. If and when U.S. legalization occurs, the United States will immediately become the largest market in the world. In fact, it will be bigger than the rest of the world combined.I expect federal legalization very soon - and again, you need to be invested well BEFORE a big catalyst hits.And aside from legalization nationwide, U.S. stocks are already the best buying opportunity in marijuana.At Investment Opportunities, we were able to ride Canadian stocks like Canopy Growth (NYSE:CGC) much of the way higher, which I'm quite proud of. But a lot of attractive U.S. stocks are both undervalued and still in "penny stock" territory.Penny stocks often get a bad rap. But they are actually critical to the global marketplace. The world NEEDS tiny companies -- just as much as bigger ones. They're the job creators. The innovators.You just want to be VERY choosy about which ones you buy.I use strict guidelines to pick penny stocks -- and I tell you all about them in this free presentation.You'll see my five-step evaluation process for early investments, including in the marijuana market. Then you'll see how to get a free copy of America's Top 4 Marijuana Moonshot Stocks… I'll even give you a fifth bonus name just for fun. Click here to watch now.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Aurora Cannabis (ACB) Stock: The Real Story With This Earnings Report appeared first on InvestorPlace.
The SPDR S&P 500 (NYSEARCA:SPY) hit new all-time highs on Thursday. Who would have predicted that for the stock market today?Not many were looking for such a robust rally to take place over the past few trading sessions. But InvestorPlace readers were ready. They knew that the stock market was trading in a well-defined range throughout the month of August and they knew when that range resolved to the upside.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOnce resistance gave way and we saw follow through from the bulls, that's when it was clear new highs were possible. In fact, we wrote: "Above resistance could send the S&P 500 back to 3,000, while a move below support likely brings up a test of the 200-day moving average."So what's causing this rally anyway? Markets liked the de-escalating tone between China and the U.S., even though there some reports say the trade war will not likely be resolved any time soon. More Quantitative Easing, Please?For those looking for more quantitative easing from the Federal Reserve, don't hold your breath. The Fed is scheduled to make its rate decision next week on Wednesday, Sept. 18. As it currently stands, the Fed Funds Rate is pricing in an 88.8% probability of a 25 basis point cut next week. The other 11.2% probability has the Fed keeping rates unchanged.Put simply, the U.S. is not in the economic position -- either with low growth or negative interest rates -- to warrant more stimulus. But the European Union is. * 10 Battered Tech Stocks to Buy Now The European Central Bank announced a 10-basis-point cut in its deposit rate to -0.5%, in-line with expectations. The ECB also announced that it will restart its QE program to the tune of $20 billion per month beginning Nov. 1. While ECB president Mario Draghi says there's only a low chance chance of an E.U. recession, those odds have increased.QE should be a boost, but it's concerning that it's needed after a near-decade of various policies. Movers in the Stock Market TodayIt was an exciting day in the stock market today, if not just because equities are flirting with their all-time highs. However, not all assets are moving favorably.While gold prices -- and the SPDR Gold Shares (NYSEARCA:GLD) -- closed higher on the day, GLD finished well off its morning highs. The can be said for bonds too, via the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT). The fall in bonds helped pave the way for bank stocks to continue their rally on Thursday, even as they approach resistance.The Top Stock Trades column took a closer look at the bank stocks earlier today.What else was moving?Aurora Cannabis (NYSE:ACB) fell roughly 10% and hovered near its session lows in the stock market today. The decline came after the company reported its quarterly results, missing revenue expectations and showing margin pressure. The woes of the cannabis space continue.Shares of General Electric (NYSE:GE) fell 1.2%, but Baker Hughes (NYSE:BHGE) was making waves after the former became a seller of the latter.BHGE opened notably lower on the day and fell to $21.36. However, it finished higher by 1.5% at $22.63 despite GE announcing it will cut its stake from 50.3% to roughly 39.5% as it looks to raise capital.The IPO market remains a mixed bag, with the latest shake-up coming from SmileDirectClub (NASDAQ:SDC). Shares priced at $23, above the $19-$22 range. But that didn't please investors, as shares tumbled 27.5% in their debut. Ouch. Heard on the StreetShares of Activision Blizzard (NASDAQ:ATVI) got off to a hot start in the stock market today. However, the stock only managed to climb 1% by the time the market closed. That's despite Nomura analysts upgrading the stock to "buy" and raising their price target from $49 all the way to $64. The target implies more than 16% upside from Wednesday's closing price.Wells Fargo analysts are ringing the bell on Caterpillar (NYSE:CAT) and Deere (NYSE:DE). They downgraded both stocks from "outperform" to "market perform," assigning price targets of $170 and $143, respectively.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 * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Stock Market Today: Should Investors Expect More Quantitative Easing?Â appeared first on InvestorPlace.
On Tuesday, Eight Capital removed its target price for CannTrust Holdings due to uncertainty about the risks involved in the company's future operations.
[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.]In financial markets certain levels are more important than others with respect to the amount of supply and demand that exists within them. In addition, financial market prices are always doing one of three things. They are either going up, going down or staying the same. When applied correctly, technical analysis of marijuana stocks should help you identify the important levels and trends in this sector.Understanding these dynamics will help you make money. For instance, suppose you want to buy a stock if it drops to the $10 level. Your plan may not work if you don't understand the current market dynamics. There may be significant support at the $11 level. The stock may fall but not get to $10. It may find support around $11 and then rally. Because you didn't know where the support was, you lost out on a chance to make money for one dollar.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere was important news for the industry that no one seems to be talking about. The Office of the Attorney General said that it will begin processing applications to research cannabis. As of right now, the University of Mississippi is the only institution in the United States that is currently allowed to do so. The DEA said that it wants to improve access to marijuana research. This is a major step down the path toward legalization on a Federal Level. * 10 Battered Tech Stocks to Buy Now This news could be the reason why many of the stocks in this industry have broken their recent downtrends and have been consolidating. Aurora Cannabis Inc (ACB)Aurora Cannabis Inc (NYSE:ACB) is a Canadian-based company that grows and sells medical marijuana, indoor cultivation systems and hemp-related food products.ACB broke its downtrend after finding support around the $5.50 level. If this level breaks and it goes lower, look for support around the $5 level. This is where the lows were in December and January.If the stock trades higher, there is a good chance that it will hit resistance around the $7 level. This level was resistance in August. It was also support in June and July.Why would a prior level that was support become a resistance level? One of the reasons is because the people who bought it at $7 when it was support are now looking at losses. They tell themselves that if the stock trades back up to the $7 level, they will sell it to get out at breakeven. This supply of stock at the level creates resistance. Cronos Group Inc (CRON)Cronos Group Inc (NASDAQ:CRON) grows and sells marijuana.CRON stock has broken its recent downtrend and has been consolidating above support around the $10.75 level. If it rallies there will probably be resistance around the $14 level. It was a support level from May through late July.It seems to me like CRON stock will continue to consolidate in the short-term. It is in the middle of a range and the momentum is neutral.An interesting but largely ignored dynamic with this stock is that by consummating its deal with Altria (NYSE:MO) CRON effectively became a sin stock. These are stocks of companies that engage in what some would consider unethical behavior. Altria, AKA Phillip Morris, certainly fits the description. * The 7 Stocks Hedge Funds Are Buying Big Because of this certain institutional money managers that have ESG concerns will not be able to invest in the stock. This could put it at a disadvantage to its competitors. Canopy Growth Company (CGC)Canopy Growth (NYSE:CGC) grows and sells marijuana.CGC stock broke its recent downtrend and has been consolidating around the $27 level.If it heads lower, there is a good chance that it will find support around $23. This is where it recently found a low before rallying. The people who wanted to buy at $23 and didn't tell themselves that if it drops back to $23, they will buy it.Those who shorted it at $23 are now looking at a loss. They tell themselves that if the stock drops back and they can get out of it at breakeven, they will cover at $23. Added to this are professional traders that want to profit off of a clearly defined level and you can understand why a prior support level could be support again.If CGC heads higher there is a good chance that it will run into resistance around the $32 level. This level was support in the first half of August. KushCo Holdings, Inc. (KSHB)KushCo Holdings, Inc. (OTCMKTS:KSHB) sells packaging supplies.KSHB stock has broken its recent downtrend and has been consolidating around the $3.75 level.Consolidating or trading sideways are terms that refer to markets that are in equilibrium. In other words, the forces of supply are equal with the forces of demand.When stocks are in a downtrend, the forces of supply are stronger than the forces of demand. When markets are trending higher the forces of demand are overpowering the forces of supply. * The 10 Best Index Funds to Buy and Hold When trendlines are properly understood and drawn correctly, a trendline break could mean that the control of the market is about to change. In the situation here when the red downtrend line broke, it was an early indication that the selloff was about to come to an end. The stock has been trading sideways since then. HEXO Corp (HEXO)HEXO Corp (NYSE:HEXO) grows and sells medical marijuana.HEXO recently found support around the $3.80 level. This level will probably be support again if it heads lower. The stock may have formed a reversal pattern, which would mean that it is about to head lower.The stock rallied everyday from Aug. 30 through Sept. 6. Each day, the closing price was higher than the opening price. These days are blue on the chart. The days when the closing price was lower than the opening price are red.Then on Sept. 9 something happened which could mean that the forces of supply are about to take leadership over from the forces of demand.You can see that the stock opened at what was the high price of the day. Then it sold off over the course of the day and closed at its lows (this is represented by the big red line). This pattern could mean that the sellers are about to take control of the market. Innovative Industrial Properties (IIPR)Innovative Industrial Properties (NYSE:IIPR) manages industrial properties and leases them to licensed medical marijuana growers.IIPR is consolidating below the important $90 level. This level is important because it was a resistance level from last March through June. Then, when the market saw some dramatic selling two weeks ago, it is where the stock found a floor. Since then, it slowly traded through the level and has been consolidating below it.Why would a level that was prior resistance become support? Those who bought it there and those who wanted to buy it but didn't each told themselves they will acquire shares if it drops back to the level. * 7 Strong-Buy Stocks Hedge Funds Are Buying Now Those who are short were feeling pretty good when it went lower. But after the stock rallied and broke $90 to the upside they are losing money. They say to themselves that they will buy it back at $90 if they can, so they can close out of their position without losing money. This demand for the stock at the $90 level is what creates support. Medicine Man Technologies, Inc. (MDCL)Medicine Man Technologies, Inc. (OTCMKTS:MDCL) provides cultivation consulting services to cannabis growers.MDCL stock is overbought and it is approaching a level that has been resistance before. We will probably see some profit taking or consolidation.The levels around $3.90 were the top in April, and then again in May and June. In addition, MDCL stock is the most overbought that it has been since April.Overbought refers to the momentum. Momentum is where the price is today versus where it was X many days ago. When this number reaches an extreme to the upside, it is considered to be overbought.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 selloff.As of this writing, Mark Putrino did hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post 7 Marijuana Stocks With Critical Levels to Watch appeared first on InvestorPlace.
Canadian cannabis company Aurora Cannabis Inc (NYSE: ACB ) reported fourth-quarter results Wednesday that fell short of the company's own expectations and received a mixed review from two Street analysts. ...
U.S. stock futures are extending yesterday's gains. The big boost came last night when President Trump announced via Twitter a delay in the planned increase of tariffs toward China.Source: Shutterstock Heading into the open, futures on the Dow Jones Industrial Average are up 0.22%, and S&P 500 futures are higher by 0.22%. Nasdaq-100 futures have added 0.63%.Wednesday's optimism in equities spilled into the options pits with call volume running hot. Approximately 22.4 million calls and 18.6 million puts changed hands on the session. The call surge made waves at the CBOE as well. The equity put/call volume ratio dropped to 0.54, while the 10-day moving average dropped toward 0.62 -- a six-week low.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions activity was a mixed bag on Wednesday (Options traders zeroed in on analyst actions yesterday). Aurora Cannabis (NYSE:ACB) saw renewed options interest ahead of fourth-quarter earnings, which disappointed. Boeing (NYSE:BA) boomed to a five-month high on strong volume. Finally, Apple (NASDAQ:AAPL) rallied to a new 2019 high after unveiling its Apple TV+ service.Let's take a closer look: Aurora Cannabis (ACB)A powerful rally carried Aurora Cannabis into last night's earnings release. Unfortunately, the optimism was misplaced and ACB stock is trading down 10.5% premarket. For the fourth quarter, the Canadian Cannabis company posted net revenue of C$98.9 million, which came in below the range Aurora Cannabis forecasted just last month. * 10 Battered Tech Stocks to Buy Now The adjusted EBITDA loss was C$11.7 million. Last quarter, the company had stated they expected positive earnings for Q4.On the bright side, because ACB stock experienced a run-up ahead of the number, this morning's thrashing is only returning its price to Monday's low. Continued weakness could lead to a retest of its 52-week low at $5.38, though.As far as options trading goes, traders were chasing calls throughout the session. The mad dash pushed total activity to 325% of the average daily volume, with 123,106 contracts traded. Calls accounted for 75% of the day's take.Pumped up premiums were pricing in an earnings gap of 72 cents or 11%. So, with ACB set to open down just shy of 11%, I'd say the derivatives market absolutely nailed the move -- three cheers for market efficiency. Boeing (BA)Boeing shares exploded higher yesterday, breaking a key short-term resistance zone. Volume pushed to 8.4 million shares reflecting a buying stampede. The culprit seems to be the ongoing rotation seen in the overall market. Over the past week, we've seen many leaders lag while laggards have led.This week's behavior in BA stock provides a teachable moment. My morning Google search revealed a spate of ominous-sounding news headlines for the wounded Aerospace company. Here are a few: "When Does Patience Run Out for Boeing Stock?," "New Blow for Boeing," and "The Boeing 777x Suffers Another Setback." And yet, despite the drama, BA stock is booming over the last two trading sessions, proving once again that news is often noise and price is king.BA now sits above all major moving averages and has seen a ton of improvement in volume patterns. Distribution days have disappeared, and accumulation is making a comeback. Consider $400 the next upside targetOn the options trading front, calls outpaced puts by a modest margin. Activity swelled to 209% of the average daily volume, with 174,949 total contracts traded. Calls added 63% to the session's sum.Fear and uncertainty have all but unwound. Implied volatility tumbled to 27% or the 21st percentile of its one-year range. Premiums are now baking in daily moves of $6.50 or 1.7%. * 7 Strong-Buy Stocks Hedge Funds Are Buying Now Apple (AAPL)After a volatile ride post-earnings, Apple shares are back to booming. The stock rocketed 3.2% higher yesterday finally eclipsing a ceiling which had kept a lid on it for four months. Volume soared alongside the rally with over 44.3 million shares changing hands.With resistance cleared, AAPL stock is now positioned to attack last year's $233.47 peak. That's your next upside target.Not surprisingly, calls dominated the options trading. Total activity climbed to 206% of the average daily volume, with 933,345 contracts; 65% of the trading came from call options alone.The improving price trend has taken the wind out of implied volatility's sails. Yesterday it dropped to 26% or the 22nd percentile of its one-year range. With premiums now only pricing in daily moves of $3.63 or 1.6%, buying options is better than selling them right now.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Thursday's Vital Data: Aurora Cannabis, Boeing and Apple appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) stock dropped in after-hours trading on a weak earnings report. Shares fell from $6.49 at the close Sept. 11 to below the $6 level. With results failing to meet consensus, investor sentiment for ACB stock could become more negative. But is this recent stumble an opportunity to load up on Aurora Cannabis stock?Source: Jarretera / Shutterstock.com Shares continue to trade at a high valuation. But the long-term strategy for Aurora may still be in motion. Let's take a closer look and see if there's short-term upside for the ACB stock price. ACB Stock Earnings Fall Shy of ConsensusOn Sept. 11, Aurora released earnings for their fourth quarter which ended June 30. Net cannabis revenue grew 61% from the prior year's quarter, to $94.6 million CAD. The company's cash cost to produce per gram fell 20% to $1.14 CAD per gram. Gross margins grew to 58% from 55% in the prior year's quarter. Thanks to increased margins, the company's adjusted EBITDA losses shrunk from $36.6 million CAD in Q3 2019 to a $11.7 million CAD loss in Q4 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor fiscal year 2019, sales were $247.9 million CAD. This is an 349% increase from the prior fiscal year. But despite this growth, Aurora fell short of consensus. Earlier in 2019, ACB anticipated positive adjusted EBITDA by the end of FY19. But the company revised this guidance in August. After yesterday's earnings, the company is no longer referencing "positive adjusted EBITDA." Instead, Aurora "expects adjusted EBITDA to improve." * 10 Battered Tech Stocks to Buy Now The analyst community also pared down their estimates after the August walk-back. According to FactSet (NYSE:FDS), prior to August, analysts estimated Q4 revenue of roughly $112 million CAD. This was cut to a range of $100 million CAD-$107 million CAD. With actual Q4 performance falling short of this revised consensus, there are new challenges to the growth story with ACB stock.Other cannabis stocks have posted weak results in the past few months. Weak numbers at Canopy Growth (NYSE:CGC) pushed shares down 25% since mid-August. Tilray (NASDAQ:TLRY) shares have fallen from $41.16 per share to near $30 per share since its August earnings release. Reality is bringing pot stock valuations back to earth. Does this mean it's time to buy on the dip? Let's take a look at the valuation of ACB stock relative to peers. Aurora Cannabis Stock Trades at a Premium to PeersACB stock trades at a premium to most of its peers. Aurora Cannabis stock trades at an enterprise value/sales ratio of 53. Compare this to Canopy Growth, which trades at an EV/Sales ratio of 40.5. Tilray trades at an EV/Sales of 36.2. Aphria (NYSE:APHA) trades at a low EV/Sales ratio of 9.7. The only major pot stock trading at a higher valuation is Cronos (NASDAQ:CRON). Cronos trades at a staggering EV/Sales ratio of 106.4.But does this make ACB stock overvalued? The cannabis sector in general continues to be richly priced. Despite stumbles, investors anticipate a bright future for the marijuana industry. But with top-line performance falling short of expectations, can investors expect a short-term rebound? The Canadian marijuana market continues to be over saturated. A fully open U.S. market continues to be out of reach. Congress has made little progress on federal marijuana legislation.A saving grace for Aurora Cannabis stock is the company's global diversification. As I have mentioned previously, Aurora's focus on European markets has been a strength. Aurora has also focused more on the stable medical segment. But other risks counter the bullish case. The company's heavy use of convertible debt could cause problems down the road. Additional issuance of shares could drive the ACB stock price down further. Stay on the Sidelines With AuroraIt's tough to stomach the current ACB stock price. While the company has many strengths, the path to profitability remains unclear. There needs to be a shakeout in the Canadian cannabis market before it can become profitable. Solid movement on the U.S. federal legalization front needs to happen. One of the major marijuana stocks needs to hit profitability. Even if said "profitability" is adjusted positive EBITDA.I believe marijuana stocks will fall further. Aurora Cannabis stock is no exception. The company's shares could rebound on a crumb of good news. But in the short term, all bets are off with regards to the ACB stock price. To play it safe, stay on the sidelines with Aurora. Wait for a more opportune moment. If valuations turn irrationally low, make your move. But otherwise do not enter a position.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Weak Earnings Might Cause Aurora Cannabis Stock to Keep Falling appeared first on InvestorPlace.
Canopy Growth (NYSE:CGC) has bounced back by 16.3% so far in September after a brutal sell-off over the past few months. I recommended Canopy Growth stock back on Au. 30. I felt the stock had been oversold given how little its fundamental picture has changed.Source: Shutterstock A brand new report on Canadian cannabis market share seems to confirm the idea that Canopy is dominating the nascent Canadian market. Experienced investors know a first-mover advantage is extremely valuable in the long-term.One of the biggest reasons why CGC stock has dropped in the past few months is because its losses have been heavier than expected. However, the early market share numbers suggest Canopy's strategy of aggressively investing in ramping up its business is already paying off.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The NumbersBank of America found Canopy has a 25% market share of all cannabis listings in Canada. The study included 1,980 listings, 101 brands and 39 different cannabis producers. * 10 Stocks to Sell in Market-Cursed September Canopy Growth Corp has the largest share of the Canadian market by a long shot. Analyst Christopher Carey says Canopy's market share is roughly double the 13% market share of its closest competitors, Aurora Cannabis (NYSE:ACB) and Organigram (NASDAQ:OGI).Carey says establishing that first-mover advantage is critical."Establishing distribution - early and big - can be significant in creating long-term market share moats for a business competing in new consumer categories prone to fragmentation," he said.Unfortunately, the market share study wasn't all good news for Canopy Growth stock. The 25% "share of listings" represents product already on shelves throughout Canada. Bank of America also looked at "sell-in," or total retail purchases of cannabis. Sell-in represents the future share of listings. In that statistic, Canopy has dropped to second place with 22%, trailing Aurora at 27%. The Future of CannabisCarey says investors shouldn't get too worried about Canopy losing sell-in share. In the June quarter, Canopy's harvest jumped 183% quarter-over-quarter, much of which was hot-selling THC flower.Carey is expecting this spike in harvest will translate to a 33% quarterly increase in Canopy sell-in in the fiscal second quarter of 2020. That big push could push Canopy back ahead of Aurora in sell-in share.Obviously having that top market share spot is ideal, but as long as Canopy remains at or near the top, investors should be rewarded in time. Certainly, investors want Canopy Growth to be the Coca-Cola (NYSE: KO) of cannabis, but it will be just fine if Canopy Growth stock ends up the PepsiCo (NASDAQ: PEP) of Canadian cannabis.In fact, PEP stock has generated a total return of more than 2,630% over the past 30 years. KO stock has a total return of 2,570% in that time. How to Play Canopy Growth StockThe latest Canadian market share numbers were certainly good enough to keep Carey in the bull camp when it comes to CGC stock."Canopy remains a company, if a still imperfect story, with a chance at becoming a leading global player in cannabis, especially given its industry leading [balance] sheet and partnership," he said.Bank of America has a "buy" rating and $27.66 price target for Canopy Growth stock.If you are a cannabis investor that believes the industry is just getting started, I think you can't go wrong owning Canopy Growth stock. My only recommendation would be to hedge your bets by owning ACB stock and at least two or three other cannabis stocks as well.As much as you love Canopy Growth stock and think Canopy will end up as the Coke or Pepsi of cannabis, it is still extremely early in the cannabis game. Especially in the event of U.S. legalization, there will be plenty of demand to support multiple market winners.It's likely most of the smaller names can't beat out Canopy Growth Corp and Aurora directly. But they might make appealing buyout targets down the line.I would recommend all cannabis investors buy Canopy Growth stock, ACB stock and at least two more of their favorite cannabis plays for a more diversified approach to the market.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Canopy Growth Stock Needs to Be One of Your Main Cannabis Plays appeared first on InvestorPlace.