|Bid||5.00 x 43500|
|Ask||5.03 x 21500|
|Day's Range||4.92 - 5.10|
|52 Week Range||4.58 - 12.52|
|Beta (3Y Monthly)||2.85|
|PE Ratio (TTM)||23.24|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
The formerly ousted Canopy Growth Co-Founder Bruce Linton joins Yahoo Finance’s Zack Guzman and Heidi Chung to discuss his new positions within the cannabis industry and his outlook for the cannabis market. New York Post Wall Street Reporter Kevin Dugan also joins YFi PM to discuss.
Aurora Cannabis shares are tumbling after Stifel downgraded the Canadian cannabis producer to “sell.” Yahoo Finance’s Zack Guzman and Brian Cheung discuss with CampusReform.org Editor-in-Chief Cabot Phillips.
Aurora Cannabis, Boeing, Apple and Take-Two Interactive are the companies to watch.
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 ...
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.
Chicago mayor Lori Lightfoot has introduced an ordinance regulating cannabis stores, keeping them away from the city's central business district.
With a $5.25 billion market capitalization, Aurora Cannabis (ACB) is the second most highly-valued cannabis stock on the market (after Canopy Growth). It's also the most polarizing name among cannabis analysts, garnering 4 'buy,' 5 'hold,' and two 'sell' ratings in the past 3 months.(See Aurora's price targets and analyst ratings on TipRanks) On Thursday, MKM Partners analyst Bill Kirk initiated coverage on Aurora stock and told investors to sell it.What provoked the analyst to make this move? "We believe profitability for cultivators [such as Aurora Cannabis] will generally get worse before getting better. Pricing is already decreasing and supply availability will continue to grow/improve." And as any Econ 101 student can tell you, given constant demand, any increase in supply tends to push prices (and profits) down.Supporting the theory, Kirk observes that already, "most new markets have shown decreasing profitability for cultivation." (In Colorado for instance, one of the first states to "legalize" in the U.S., wholesale marijuana flower prices are said to have dropped by half in their first few years of legalization -- from $2,000 per pound in 2016 to $1,000 more recently). Despite this fact, most analysts following Aurora stock, notes Kirk, are projecting unprecedented levels of growth for Aurora Cannabis -- and in this case, "unprecedented" can be best defined as "historically unlikely."Whereas Kirk notes that consensus expectations call for Aurora to swing from negative C$157 million in profit in 2019 to positive C$241 million in 2021, the analyst predicts profitability will be much longer in coming. He projected negative earnings before interest and taxes of C$314 million this year, for example, followed by negative C$265 million in 2020, negative C$199 million -- indeed, no operating profit whatsoever before 2024 at the earliest. (And no free cash flow before 2025).And the story gets worse.As investors have soured on the marijuana story, resulting in "industry equity declines," Aurora's stock price has suffered greatly -- falling by nearly 45% over the past 12 months. This lower stock price could "cause more difficulty [for Aurora] refinancing some convertible notes coming due (March 2020)." Investors who might have happily offered Aurora money in exchange for the chance to later trade in their loan demands for shares of an increasingly higher-priced Aurora stock, will be less enthusiastic about the prospect of getting to buy into a stock that's steadily losing value.Without the ability to fund itself by issuing convertible debt, Aurora "will have to go back to the capital markets [seeking more traditional loans] at a time when profitability still hasn't been reached." Such loans could be harder to come by with Aurora looking like more of a credit risk. And even if the company can convince banks to loan it money, they will probably demand higher interest rates, further weighing on the company's ability to turn a profit.Taking a cue from these hypothetical lenders, Kirk is going ahead and rating Aurora Cannabis stock a "sell" itself, and predicting the shares will hit C$5 within a year. (See Aurora's price targets and analyst ratings on TipRanks)
When MKM analyst Bill Kirk initiated coverage of Aurora Cannabis (ACB) with a "sell" rating yesterday, the company's low cash reserves ($238 million) relative to debt levels ($486 million) were high on the analyst's list of concerns.Fortunately, this is not a problem that HEXO Corp (HEXO) has. Blessed with a balance sheet replete with cash ($129 million) and little debt ($23 million) to offset it, HEXO is one Canadian cannabis company where a lack of cash is not an immediate concern. Perhaps even more importantly, though, Kirk likes HEXO's business model and the prospect for the company to quickly make the tradition to a sustainable business of providing cannabis for the THC edibles market.As a result, Kirk initiates coverage on HEXO with a "buy" rating and C$12.00 price target, predicting about 130% gain for the Canadian marijuana stock in the next 12 months.HEXO, as Kirk explains, "has the best chance of creating a defensible brand" of marijuana ingredients that its consumer products partners such as Molson Coors (with which HEXO operates a joint venture) can incorporate into their products. In addition to just beer, Kirk sees HEXO providing a key ingredient in other beverages, cosmetics, and food. In furtherance of this strategy, HEXO has trademarked the phrase "Powered by HEXO" to advertise its importance in its partners' products.By making its cooperation in the creation of a product both clear and desirable to consumers (think how important seeing "Intel Inside" used to be to your choice of buying a laptop), Kirk argues that HEXO will avoid becoming just another "commoditized" marijuana producer. It could even be invited by future partners to team up, and thereby gain "early access to some exciting [marijuana product] categories."This could soon become important if, as expected, Canada legalizes the sale of "cannabis edibles" in December -- an event that Kirk describes as "Day One" of a new era for the marijuana industry. As he explains, HEXO is one half of a "two-horse field" angling to dominate the market for marijuana edibles. Giant Canopy Growth, partnered with Constellation Brands, is obviously the "horse" getting most of the attention today. But HEXO, partnered with Molson Coors, is the other half of the equation. The first company to get to market once edibles are permissible in Canada, argues Kirk, will have the best chance of building a "defensible moat" in the business.This will become even more important as marijuana production capacity ramps up over time. "Compared to Canopy, Aurora, and Tilray," you see, "HEXO has less growing" capacity -- but that's okay because simply cranking out "grams for the sake of grams" will become a losing proposition as supplies surge and marijuana prices fall. What's most important is figuring out a way to get the most money out of the marijuana you sell -- and in Kirk's estimation, HEXO's emphasis on building a brand, and making its product attractive to consumer goods partners, is the best way to do that.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.
Democratic presidential candidate Beto O’Rourke is known for voicing his opinion on federal marijuana legalization. He supports marijuana legalization.
Marijuana companies are betting that South America will supply the world with outdoor-grown cannabis at a fraction of North America's costs.
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 Viridian Cannabis Deal Tracker is an information service that monitors capital raise and M&A activity in the legal cannabis industry. Analyzing within 12 key industry sectors, the Viridian Cannabis Deal Tracker provides cannabis companies, investors, and acquirers with the data, trends, and intelligence they need to make informed decisions regarding deal valuations, terms, and structures. Since its inception, the Viridian Cannabis Deal Tracker has tracked and analyzed more than 2,400 capital raises totaling over $29 billion as well as more than 800 M&A transactions.
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.
Cronos Group (NASDAQ:CRON) is not alone as its shares have fallen more than 33% since April 5. Compliance issues and regulatory delays in Canada, have also weighed on Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). CRON stock, though, has fared the best of that bunch. Yet, despite the problems, you'd be hard-pressed to find a faster-growing industry than cannabis. According to recent research, the global market size is expected to reach $66.3 billion by the end of 2025, though these estimates vary widely. InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut Wall Street still has mixed reactions when it comes to Cronos Group stock. Out of the 14 analysts reviewing the stock, eight have given it a hold rating. Here are a few reasons why analysts aren't more bullish about CRON stock. Cronos Delivered Mixed Q2 ResultsCRON stock hit a new 52-week low in early August, thanks in part to a mixed earnings report. Initially, the company's shares rose due to better-than-expected sales. But Cronos Group also saw its operating losses widen. And on the earnings call, company executives said they expect these losses to increase during the second half of the year. This is due to Cronos' investments in sales and marketing and other growth initiatives. * 10 Battered Tech Stocks to Buy Now As well, Cronos Group lags behind other cannabis companies in terms of production. While it produced nearly 1,600 kilos during the second quarter, that's less than one-fifth of the the 29,000 kilos Aurora Cannabis produced. Vaping Concerns Could Affect CRON StockCanadian cannabis companies are currently waiting on the second wave of cannabis legalization, set for the middle of next month. This will include a limited supply of items like vapes, cannabis-infused beverages, and edibles.But there is a growing concern in the U.S. about the safety of vaping. More than 450 Americans dealt with vaping-related lung illnesses and five of these patients died. It's unclear what's causing the illnesses but there does seem to be a link between THC-infused products and vaping. (My InvestorPlace colleague Josh Enomoto has a contrarian take on this today.) * 7 Momentum Stocks to Buy On the Dip In March, Cronos Group received an equity investment from the tobacco giant Altria Group (NYSE:MO). Altria also owns a stake in the e-cigarette makers Juul, which gives Cronos access to additional vaping technology. However, this could pose a problem is the health-related concerns continue to gain traction. Expect More Supply Issues in CanadaCanada continues to deal with ongoing supply issues since legalizing cannabis in October 2018. The regulatory agency Health Canada is dealing with a backlog of licensing applications.Most likely, Canada will still be dealing with this issues when cannabis derivatives hit the shelves in December. And it will continue to slow the ability of companies like CRON to harvest, process, and sell cannabis.As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks. 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 Cronos Group Stock Continues to Lag as Canada Headwinds Hold Back Sector appeared first on InvestorPlace.
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 stock falls after Stifel Nicolaus analyst Andrew Carter turns bearish, slashes price target in wake of “bad” quarterly results.
Today at 2:10 PM ET, the S&P; 500 Index fell 0.3% as investors watched rising oil prices. The cannabis sector also fell today, as its ETFs traded in the red.
Aurora Cannabis stock fell after Stifel analysts downgraded the stock to sell. Meanwhile, most other marijuana stocks swung to losses.
On September 12, Aurora Cannabis (ACB) Chair Michael Singer spoke with CNN Business. He said, “We expect to have a significant footprint in the US in the coming quarters." The company also highlighted its “laser-focused” stance on the hemp-derived CBD (cannabidiol) market in the US on its fourth-quarter earnings call. BDS Analytics and Arcview Market […]
Aurora's shortfall in the quarter is evident due to a reported $20.1 million of bulk wholesale trim sales that are unlikely to repeat at the same level, Carter said in a Sunday downgrade note. The headline net cannabis revenue of CA$94.7 million suggests a net cannabis revenue base closer to CA$75 million versus Stifel's estimate of CA$92.5 million.
Aurora Cannabis stock fell on a disappointing earnings report last week. Now an analyst at Stifel says it is time to sell the Canadian marijuana stock.
Aurora Cannabis (ACB) Chief Corporate Officer Cam Battley told Marijuana Business Daily in a recent phone interview that the company was focused on entering the U.S. CBD market in the near future.Within a couple of quarters the company is going to catapult far beyond all of its competitors in relationship to production capacity. It's expected to produce over 625,000 kilograms annually by early 2020.Considering the slow licensing process in Canada concerning retail outlets, and its current shortage of GMP compliant cannabis to sell to overseas market, the company will need to find more outlets for its growing amount of product.Meanwhile, ACB has a cautiously optimistic Moderate Buy consensus rating from the Street. This breaks down into 4 'buy', 5 'hold' and 1 'sell' ratings in the last three months. We can also see from TipRanks that the average analyst price target is $8.07 - 45% upside from the current share price. (See ACB's price targets and analyst ratings on TipRanks)Canadian cannabis demandSome have drawn the wrong conclusion concerning cannabis demand in Canada, saying supply is already outpacing demand, but that's simply not true at this time.The reality is demand remains robust, and the lack of retail outlets to sell cannabis through is what has been limiting potential sales for Aurora and other suppliers in the country.While that is slowly starting to improve, it's going to take a lot longer for the full potential to be realized. The legalizing of derivatives will help, but that won't have an impact until the first quarter of 2020, and it remains to be seen how much current sales will be cannibalized by higher-margin and more desirable derivative sales.However it works out, it should result in improvement in the top and bottom lines of the company. That will also be leveraged by the increase in the number of stores cannabis can be bought in.European Union Good Manufacturing Practice (GMP) certificationsIn a few weeks Aurora stated it will have two more GMP certifications in Canada. That will provide more product that can be sold in international markets requiring compliance to those standards.As mentioned above, global sales have been more modest than expected because of the shortage of medical cannabis that meet GMP standards.The two new facilities – Aurora Vie and Aurora River – will add a combined annual production capacity of GMP-compliant medical cannabis of about 32,000 kilograms. This will go a long way to boosting sales in global markets.It will eat up some of the vast supply becoming available in 2020.The U.S. marketA number of analysts and investors have been waiting to see what Aurora is going to do in the U.S. market after it hinted at some significant moves a couple of quarters ago.Cam Battley said this:> “What I do expect is within a very short period of time we’ll be entering into the U.S. with another point of entry, and a significant one.> > “We’re learning what the strengths and weaknesses are of (multistate operators) and other business models, so we are definitely laser-focused, short term, on CBD derived from hemp, because that can be done now. It’s fully permissible now."At this time I don't see Aurora being at any competitive disadvantage, as the CBD market in the U.S. is highly commoditized at this time, and any move it makes to differentiate with strong partners could position it for strong sales growth under the right conditions.One concern I do have is what Battley said concerning entering the U.S. in a similar way Canopy Growth did with Acreage Holdings. In my view that would be a huge mistake.I wouldn't have a problem with that if it did so solely with CBD, but if it goes beyond that based upon the assumption the U.S. will sometime soon legalize cannabis at the federal level, it could be disastrous over the long term. The reason why is it would lock up capital that may never experience a return on investmentMy view based upon researching the political sentiment in the U.S. is, there is no consensus or political will to make legalizing pot a priority. Not only that, there is legitimate opposition at high levels which isn't going to go away anytime soon.But if Aurora lands a deal or deals with some large companies based in the U.S. in regard to CBD, it's going to increase sales for Aurora at meaningful levels. It will also provide an outlet for its huge supply coming in 2020.ConclusionAurora is now in a race between the increase in supply levels and various outlets to sale its product in. I think Canada, even though extremely slow in licensing retail outlets, will increase enough where a lot of Aurora's excess supply will be sold in that market.Europe, while a great long-term market, will be even slower because of the availability of GMP-compliant cannabis taking time to grow.That means it's going to be very important for Aurora to find alternative markets to compete in, and there is none larger than the U.S. cannabis market.I don't see any oversupply issues for Aurora over the next three quarters, but in the second half of 2020 it could start to become an issue if growth in Canada and Europe is slower than expected, and it takes awhile for Aurora to land a good deal with a U.S.-based company.Many good things are in store for Aurora Cannabis, but in the near term there will be some growing pains because of some of the things it has no control over, and finding a deal with an American company that makes sense within its stated strategy of not giving up control to secure investment from larger companies such as Canopy Growth did with Constellation Brands.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.