ACB - Aurora Cannabis Inc.
| Previous Close | 8.68 |
| Open | 8.62 |
| Bid | 8.46 x 45900 |
| Ask | 8.50 x 900 |
| Day's Range | 8.44 - 8.64 |
| 52 Week Range | 4.05 - 12.52 |
| Volume | 10,606,017 |
| Avg. Volume | 28,262,195 |
| Market Cap | 8.727B |
| Beta (3Y Monthly) | 2.62 |
| PE Ratio (TTM) | 39.31 |
| EPS (TTM) | N/A |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
- Zacks•9 hours ago
Marijuana Stocks & ETFs: What Investors Need to Know
Here is what investors need to know about cannabis investing and the first actively managed pot ETF.
- InvestorPlace•13 hours ago
Why Strong Q3 Numbers Make Aurora Stock Worth Buying
Aurora Canncbabis (NYSE:ACB) stock traded higher in mid-May after the Canadian cannabis giant reported third-quarter numbers that, while short of expectations, broadly confirmed that ACB is benefiting from favorable underlying trends. Investors cheered the favorable results, and ACB stock traded slightly higher in response to the report.Context is important in this case. Many expected Aurora's third-quarter numbers to be pretty bad. There was an overwhelming amount of data which suggested that the Canadian cannabis market had flat-lined in the early parts of 2019. Consequently, expectations were low heading into the print. * 7 High-Yield REITs to Buy (Even When the Market Tanks) But Aurora didn't report bad third-quarter numbers. Instead, Aurora reported pretty good third -quarter results. Across the board, everything from revenues to volumes to margins improved sequentially, implying that while the Canadian cannabis market may have flat-lined in early 2019, Aurora did not.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's bullish for ACB stock. For a long time, Aurora stock has been the most undervalued big name Canadian pot stock. Two things have held it back. Specifically, concerns that its current leadership position in the Canadian cannabis market is slipping and the fact that the company doesn't have a big-time investment from a consumer-staples giant.The first of those concerns was addressed by the company's strong third-quarter numbers. The second concern should be addressed later this year. As a result, now seems like a good time to get bullish on ACB stock, since the relative valuation discount of Aurora Cannabis stock won't last forever. Aurora Reported Strong NumbersFrom head to toe, Aurora's third-quarter earnings report was pretty good. Despite the headline misses, every single metric rapidly moved in the right direction for Aurora. This confirms that Aurora is not only a leader in the Canadian cannabis market, but also that it's widening its lead.Its total revenues rose 21% sequentially, as its revenue from consumers surged 37% quarter-over-quarter and its medical revenue increased 8%. Meanwhile, the number of kilograms of cannabis that it produced rose nearly 100% quarter-over-quarter, while the number of kilograms it sold rose over 40%. Production cost per gram of cannabis dropped more than 25% quarter-over-quarter, and its gross margins rose four points sequentially.Across the board, Aurora's operations improved from late 2018 to early 2019. In the wake of murmurs that the Canadian cannabis market was flat during that stretch and the muted growth numbers Cronos (NASDAQ:CRON) reported not too long ago, it's clear that Aurora is accelerating its leadership position in the Canadian cannabis market.This acceleration of leadership, coupled with the large investment that the company should receive soon, pave the path for ACB stock to head way higher in 2019. Aurora Stock Can Rise MeaningfullyThe relative undervaluation of ACB stock, which won't last too long, creates a compelling opportunity for investors in 2019.The market currently values each kilogram of cannabis that Tilray (NASDAQ:TLRY) and Canopy (NYSE:CGC) sold last quarter at about $1.5 million. The market simultaneously values each kilogram of cannabis that Cronos sold last quarter at more than $4.5 million. But when it comes to Aurora, the market thinks each kilogram of cannabis sold last quarter is worth less than $1 million.The disparity has nothing to do with growth. Aurora's revenues, production capacity, and sales volumes are growing as quickly as anyone else's in the industry. It has nothing to do with size, either, as Aurora is the second-biggest player in the market behind Canopy. Nor does it have anything to do with profitability, as Aurora has one of the highest gross margins in the sector.Instead, it has everything to do with two things. First, investors question the longevity and sustainability of Aurora's current leadership position. Second, investors question how Aurora can compete with companies that have received billion-dollar investments from consumer-staples giants.The first concern was addressed by ACB's strong third-quarter numbers. The second concern will be addressed later this year. Aurora didn't receive a large investment like Canopy or Cronos, yet But, considering this company continues to expand its production footprint and leadership position, and that ACB stock trades at a huge discount to its peers, it's only a matter of time before some big consumer-staples giant steps in and pours in a few billion dollars.Once that happens, there will be no reason for ACB stock to trade at a lower valuation than other major marijuana stocks. The discrepancy will go away, and as it does, Aurora Cannabis stock will fly higher. The Bottom Line on ACB StockAurora's third-quarter numbers were actually much better than most expected, and imply that Aurora is extending its leadership position in the Canadian cannabis market. The longer its position in the market improves, the higher the odds that the company will receive a huge investment from a consumer-staples giant. The higher those odds go, the higher ACB stock will go.As of this writing, Luke Lango was long ACB and CGC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Why Strong Q3 Numbers Make Aurora Stock Worth Buying appeared first on InvestorPlace.
- SmarterAnalyst•18 hours ago
Aurora Cannabis Lost Money in Q3 — And That’s Okay?
Canadian pot stock Aurora Cannabis (ACB) reported its fiscal third-quarter earnings last week, showing weaker than expected sales, and a greater than expected EBITDA loss for the quarter. Aurora booked $65.1 million in sales during the quarter, and incurred an "adjusted EBITDA" loss of $36.6 million. The company did not even bother reporting the size of its net loss for the quarter as calculated under GAAP -- so you know it had to be pretty bad.The good news is that, once analysts got through opining on the quarter, investors were ready to chalk it up as a win. (And Aurora Cannabis closed trading Thursday up 2.4%).Seaport Global's report is instructive. Calling Aurora's quarter a "slight sales miss (actually, Aurora missed Seaport's sales estimate of $71.3 million by nearly 9%), Seaport analyst Brett Hundley urged investors to focus more on Aurora's progress in bringing down production costs, and the potential for the company to sell higher-margin products so as to become able to earn better profits in the future. Hundley reiterated a Neutral rating on ACB stock without suggesting a price target. (To watch Hundley's track record, click here)Aurora doubled its production of cannabis from Q2 to Q3, gaining scale of production, and predicted it will produce as much as 25,000 kilograms of marijuana in Q4, currently underway. As production ramps up and production efficiencies kick in, this should help to grow gross margin (which came in at 55% in Q3 -- four points below consensus).Also helping to grow the gross will be new, higher-margin marijuana products. "Vapes" (cannabis oil that can be heated and inhaled in an e-cigarette-like vaporizer) and "gummies" (i.e. edible marijuana) are two products Hundley especially has his eyes on, noting that such "cannabis derivative products are expected to be available for sale in Canada" by October 2019. Not only does Aurora view these products as higher margin than plain marijuana "flower" (for smoking). The company also believes there's a bigger market opportunity here than in cannabis-infused beverages, for example -- which the analyst notes currently comprises "~2% or less of market share" in the U.S.Not that Aurora is ignoring the smokables market, though -- it's just looking to extract extra margins there when possible. In particular, Hundley likes the company's acquisition of "organic cannabis" producer Whistler, and its stake in The Green Organic Dutchman.Notwithstanding Hundley's optimism that all of the above will help perk up Aurora Cannabis's profit margins going forward, for the time being, the analyst left his estimates for future sales and earning unchanged. As of today, Hundley is still projecting Aurora will end 2019 with sales of $268.3 million, roughly triple that to $833.9 million in 2020, then grow it another 50% to $1.25 billion in 2021. Earnings-wise ... well, there still doesn't seem to be much hope we'll see GAAP profits anywhere in the near future. That being said, the analyst is still hoping to see Aurora turn "adjusted EBITDA" profitable next year (after losing $199 million in negative adjusted EBITDA this year).That still doesn't give investors much to hang a valuation on, unless you're satisfied using price-to-sales ratios. With an unprofitable company like Aurora Cannabis, it seems you may have to be satisfied with that for some time to come.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on ACB: * BMO Cautious on Aurora Stock as Profitability Remains a Challenge * Aurora Stock Is at the Mercy of Investors * Aurora Cannabis (ACB) Stock Is Still a Buy, Says Analyst More recent articles from Smarter Analyst: * The Clouds Are Getting Darker for Tesla (TSLA) Stock * Amazon (AMZN) Continues Diversifying; J.P. Morgan Bullish on the Stock * Micron (MU) Stock Remains a Long-Term Buy, Says Analyst * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy
- Motley Fool•18 hours ago
These Billionaire Money Managers Bought Aurora Cannabis Stock in the First Quarter
The most popular pot stock on the planet has found its way into some prominent portfolios.
- Benzinga•yesterday
The Week In Cannabis: Big Earnings Reports, Biden's Change Of Heart, New Report On Dispensaries
As the presidential race continues to heat up, Democratic contender and former Vice President Joe Biden has come out in support of decriminalizing cannabis — but not of full legalization. “Nobody should be in jail for smoking marijuana,” he said. A myriad of cannabis-related bills were submitted in the House of Representatives, most of them aimed at protecting certain groups using medical marijuana, from military veterans to students.
- Motley Fool•2 days ago
Aurora Cannabis Had a Great Quarter -- but Here's What We Still Don't Know
Unanswered questions for the marijuana producer could keep the stock from flying as high as it could.
- MarketWatch•2 days ago
Where Aurora sees cannabis opportunity beyond selling buds in Canada
As recreational marijuana moves beyond buds and countries besides Canada mull legalization, cannabis companies have a lot of potential roads to travel as they seek to grow.
- MarketWatch•2 days ago
Aurora maps its future as New Jersey gets set to put cannabis legalization to the vote
Aurora Cannabis Inc. shares were in focus again Thursday, as investors continued to digest weaker-than-expected earnings and the company’s plans to grow its business.
- Motley Fool•2 days ago
How Did Tilray Stack Up to the Competition?
Here's a look at Tilray's recent performance compared with its largest competitors.
- Motley Fool•2 days ago
Aurora Makes Its Case to Be Pot's Dominant Player
Efforts to grow worldwide are panning out well so far for the cannabis company.
- Motley Fool•3 days ago
3 Brand-Name Food and Beverage Companies That Want In on the Marijuana Craze
Edibles and infused beverages have these well-known snack and beverage businesses seeing green.
- Motley Fool•3 days ago
Better Buy: Aphria vs. Aurora Cannabis
One of these marijuana stocks has been the bigger winner recently. But which is better poised to win in the future?
- Motley Fool•3 days ago
You'll Never Guess Who's Betting Against Canadian Cannabis Stocks
The chairman of a giant U.S. cannabis company wants to use a controversial investing strategy.
- Zacks•3 days ago
The Cannabis Craze
The "Cannabis Craze" had everyone and their brother buying up marijuana stocks. These cannabis stocks didn't have enough free-floating shares to cover the massive amount of buy interest leading them to skyrocketed at the end of 2018 far above their fair value.
- Investor's Business Daily•3 days ago
Are These Marijuana Stocks A Good Buy Now? Look Past The Hype
Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.
- InvestorPlace•4 days ago
Without a Better Story, Cronos Stock May Have Further to Fall
Marijuana stocks like Cronos (NASDAQ:CRON) look a bit creaky at the moment, and CRON stock may be Exhibit A in the case that the group is stalling out. Cronos stock has dropped by over one-third just since early March, with the near-term question whether a recent bottom can hold.Source: Shutterstock I'm skeptical it will. Valuation is a bit more reasonable than it was earlier this year, when I thought Cronos Group stock was overvalued. But CRON is hardly cheap. Analysts have turned bearish. And that bearishness seems to coincide with the core problem here.Cronos simply hasn't driven the right kind of narrative for a marijuana stock at this valuation. Looking around the sector, there are concise, obvious bull cases for most of the well-covered stocks. Outside of the nearly $2 billion in cash coming in from Altria (NYSE:MO), Cronos lacks that case. And until that changes, Cronos is likely to struggle.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Chinese Stocks That Could Pop On a Trade Deal The Need for a StoryInvesting in cannabis stocks at the moment isn't about the fundamentals. This is an industry at the very beginning of its growth. Price/earnings and even price/sales multiples are enormous and not necessarily comparable. The fundamental toolkit an investor might use to value a mature company simply doesn't apply in the sector at the moment.And so both the decision to invest in the sector at all, and which cannabis stock to choose, come down largely to long-term projections and even feel. Will the industry grow for years, as proponents argue? Is the oversupply already seen in legalized U.S. markets like Oregon a long-term risk? When does broader U.S. legalization arrive? Who of the myriad publicly traded cannabis plays wins and who loses?In that type of investing environment, a stock needs a succinct bull case, an elevator pitch so to speak. And most of the well-covered cannabis plays have that type of case. Canopy Growth (NYSE:CGC) is the early leader, and thanks to Constellation Brands (NYSE:STZ,NYSE:STZ.B) has the largest war chest. Aurora Cannabis (NYSE:ACB) is taking so many shots on goal that it's likely to score on at least one of them. Charlotte's Web (OTCMKTS:CWBHF) is the pure play on CBD (cannabidiol) oil. Even struggling Tilray (NASDAQ:TLRY) may have positioned itself to win if capacity gets overbuilt. And so on. What Is the Story Behind CRON Stock?What's the story behind CRON stock, however? The company has a ton of cash coming in, to be sure. But its production capabilities aren't particularly impressive: as The Motley Fool noted, Cronos isn't even in the top ten in terms of available capacity. Its Spinach retail brand doesn't appear as strong as those from Canopy or Hexo (NYSE:HEXO). Its positioning in the Canadian adult-use market seems behind that of many peers.Even analysts somewhat favorable to the stock aren't sure what to make of it, as James Brumley noted earlier this month. CIBC World Markets analyst John Zamparo wrote that the company hadn't given much colors on its plans for actually using that capital. Cannacord Genuity cited "a number of strategic initiatives that could eventually unlock longer-term value."Those aren't compelling points in favor of Cronos stock. Rather, they're something more akin to a "poke and hope" strategy. Cronos has a lot of cash, and the marijuana industry should grow, so the company will eventually figure something out. That kind of case might work in the middle of 2018, or the beginning of 2019, when marijuana stocks on the whole are soaring. As we've seen of late, however, it can't work forever. Cronos Group Stock Isn't CheapMeanwhile, Cronos remains priced in line with those peers who have better stories - and better growth. Cronos' Q1 report wasn't particularly impressive either fundamentally or in terms of management commentary. The company did turn a profit but only thanks to non-cash benefits, some of which related to the Altria deal. On an operating basis, Cronos continues to lose money.That's not a problem on its own: most stocks in the space are posting operating losses as they build out production, processing, and supply chain capabilities. But CRON, relative to revenue, continues to be valued roughly in line with the leaders of the space.That's not going to hold if Cronos can't prove that it will be a leader long-term. Right now, it's not making a good enough case - and until that changes, Cronos stock is going to underperform. And with marijuana stocks right now seeming to stall out, that in turn suggests that CRON is headed below $15.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) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Without a Better Story, Cronos Stock May Have Further to Fall appeared first on InvestorPlace.
- InvestorPlace•4 days ago
How Trade War 2.0 Benefits Struggling Cronos Stock
As things stand now, cannabis firm Cronos Group (NASDAQ:CRON) is a two-faced investment. CRON stock recovered well from late last year's volatility, as CRON stock is up nearly 49% since the beginning of January. But Cronos stock shed 30% since March 1, putting a sour taste in recent buyers' mouths.Source: Shutterstock Fundamentally, Cronos has the same split personality. Last week, the company reported its first-quarter results. On paper, Cronos delivered a strong beat. Analysts' consensus estimate pegged earnings per share at a loss of two cents. Instead, EPS came in at 36 cents on the positive end of the scale.Moreover, Cronos rang up 6.47 million CAD, or $4.8 million, of net sales. That was a massive 120% increase from the year-ago quarter. But as The Motley Fool's Sean Williams noted, the cannabis firm benefited from multiple one-off events. All things considered Cronos Group loses money on its operations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestorPlace Managing Editor John Kilhefner has also joined in on the fun. Kilhefner bought CRON stock because, in his words, he was "greedy." He wanted a "quick short-term boost" and what better place to get that than with marijuana? * 6 Chinese Stocks That Could Pop On a Trade Deal However, Kilhefner now regrets buying Cronos stock. For one thing, after clearing his thoughts, he doesn't view marijuana as an investment but rather, pure speculation. More critically, the reality of cannabis hasn't come anywhere close to the hype. For instance, Canadian cannabis stores are selling fewer botanical products than previously anticipated.With that negative backdrop, it's no wonder why investors are have mixed views on CRON stock. Still, I think Kilhefner and others may want to consider another massive catalyst: China. CRON Stock Has Received a Massive TailwindOne of the more surprising developments in geopolitics recently is that the trade war is back on. For weeks, it appeared that the Trump administration and its Chinese counterpart were ready to make a deal.But the deal appears to have fallen through. This latest freeze in U.S.-China relations may not thaw for quite some time. As InvestorPlace's William Roth explained, our military exercises in the South China Sea appeared to have been carefully orchestrated.What does that have to do with CRON stock? Everything. Trump has pushed himself into a corner economically. The initial round of tariffs already hurt many businesses across multiple sectors. With the President threatening even harsher penalties, astute market observers are bracing themselves for a rough landing.Of course, one sector that has absorbed substantial damage is agriculture. Already weakened from demographic challenges, American farmers have been put in a vice grip by tariffs. Since much of this country's agricultural base is located in conservative regions, Trump can't play hardball with the Chinese without incurring political penalties.That is where CRON stock and other major marijuana names like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) come into the picture. If this "trade war 2.0" worsens - again, Roth forwarded evidence that it will - full recreational legalization is on the table.Despite growing political momentum, getting rid of the federal government's Schedule I classification appeared to be a pipe dream. Even during the Obama administration, marijuana tip-toed a delicate balance between states' rights and federal oversight.But right now, there's a good chance that our economy will enter a recession. Trump will either have to give in to the Chinese or make concessions on the cannabis legalization front. I'd say that's a long-term benefit to CRON stock. Don't Give Up on Cronos Stock!If Kilhefner hasn't dumped his shares of Cronos Group stock, I'd recommend he bite the bullet and wait. Politically, what's currently happening is the best thing ever for the marijuana industry.If I know anything about the Chinese, they hate losing face. If I know anything about Trump, he hates losing, period. Both Trump and his counterpart, President Xi, are egomaniacs who are unwilling to concede an inch to each other.In this situation, China must rely more on its allies, Russia and North Korea. We, on the other hand, are in a great position: we don't need dictators and despots to prop up our economy. Instead, we just need to convince roughly half our citizens that they won't be condemned to eternal damnation for their botanical indulgences.While religion has been historically very strong in this country, that goes away in a recession. The easy fix is legalization, or at least a much more tolerant (and transparent) policy.I agree with Kilhefner that CRON stock is a gamble. However, I disagree with his conclusion. Now is the best time to consider making that bet.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post How Trade War 2.0 Benefits Struggling Cronos Stock appeared first on InvestorPlace.
- Benzinga•4 days ago
Large Option Traders Are Selling The Aurora Cannabis Earnings Pop
Aurora Cannabis Inc (NYSE: ACB) shares traded higher by 8 percent this week after the company reported a mixed first-quarter earnings report Tuesday evening. Throughout the week, Benzinga Pro subscribers received a number of options alerts related to Aurora Cannabis. On Wednesday morning around 10:30 a.m., a trader sold 2,000 Aurora call options at a $9 strike price that expire on Dec. 20.
- InvestorPlace•4 days ago
The Bullish Thesis for Tilray Stock Is Still Alive and Well
Every so often, Wall Street experiences a craze that is fascinating like Bitcoin in 2017. But now it's the cannabis stocks and Tilray (NASDAQ:TLRY) has been a wild one to watch. It went public last year and within two months it had rallied 1,000%. 2019 has not been kind to TLRY stock as it's down 32% year-to-date, yet it is still up 110% since its inception. Compare that to the S&P 500, which is barely up 2% in a year.Source: Shutterstock Today's write up is to encourage those who like the stock to hold it and to also discourage those who want to short it. For full disclosure, I am not long Tilray nor am I an uber fan or a perma-bull of it.While the IPO was orderly, the period that followed was bonkers. In September it spiked to its $300 all-time high from $93 in three days. Clearly, it was a massive short squeeze where buying begot buying until the equilibrium was restored.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnfortunately for the Tilray stock bulls that was the high mark and it has traded horrendously since then. It is now below $50 and it can't sustain a rally. It's not so much that the fundamentals have deteriorated greatly. It is simply that the stock trade broke from the massive artificial rally. It takes time to restore the natural price action.TLRY still has not grabbed the attention of major corporations. Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON) got billions from Constellation Brands (NYSE:STZ) and Altria (NYSE:MO). Tilray is still going at it alone and it's struggling. It will need better alliances or it risks falling behind.Before you send me hate mail on this, I am not calling TLRY stock dead. Cannabis stocks are a special breed in this early stage. They are trying to establish the industry on Main Street and they may not be able to always impress Wall Street in the short term. There will be ups and downs but the bullish thesis is too diverse in scope to call it dead now. * 10 Baby Boomer Stocks to Buy So what's a fair value for TLRY stock? There is none because at this point they all carry massive market capitalization but with a tiny fraction of it in sales. TLRY's cap is $6 billion and it recently reported $23 million in sales.To that, management reported a big top line beat and 195% growth year over year. The stock spiked 6% on the headline and it is holding the zone decently given the overall stock market jitters. More importantly, its deliveries doubled year-over-year and that is the focus of many experts. They can't grow into their potential if they cannot deliver it as well as improve their margins along the way.The cannabis industry is still trying to adjust to its new legal status. This is a trend that is spotty for now but will grow its ubiquity with time. The U.S. market is an important one and many states will soon follow the ones that have already legalized it. But on the federal level, it may not be that easy. Luckily there are dozens of other countries for TLRY to potentially serve. Bottom Line on TLRY StockThe hoopla around cannabis stocks like Tilray is that they will disrupt so many huge markets that their upside potential should also be massive. The recreational use is what first comes to mind to most people but there are so many more like medicinal applications, potables and edibles. Maybe one day pot-based drinks will replace some of the soda, wine and beer consumption. * Top 7 Dow Jones Stocks of 2019 -- So Far Skeptics would call it a craze. Maybe, but unlike bitcoin where the concept escapes 99% of all people, everyone knows what cannabis is and is immediately interested in learning more about it. The allure of it is undeniable as I see evidence of the interest everywhere I go.So the bottom line is that although the experts can dismiss Tilray based on valuation and its distance from its all-time high, they would be making a mistake. Because as big as the potential of this multi-headed future area of business is, it will be impossible to quantify here let alone judge it right. Either avoid it altogether or plug your nose and buy the stock for the long term.We saw the skeptics lose fortunes trying to short Amazon (NASDAQ:NFLX) and Netflix (NASDAQ:NFLX). Netflix still gets a pass on profitability because of its global expansion potential as should most cannabis stocks … including TLRY stock.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post The Bullish Thesis for Tilray Stock Is Still Alive and Well appeared first on InvestorPlace.
- SmarterAnalyst•4 days ago
Aurora Cannabis (ACB) Stock Is at the Mercy of Investors
In not a huge surprise, Aurora Cannabis (ACB) reported FQ3 numbers for the March quarter that missed analyst estimates. Also not a big surprise, the stock is flat to up on the miss. The numbers provide a crucial insight into the troubling sales of legalized cannabis in the Canadian adult-use market, but the company still has a huge market opportunity to spin the stock market back towards a positive long-term view.Looking Past Disappointing QuarterFor the quarter, Aurora reported revenues of C$65.1 million compared to estimates up at C$67.5 million. Typically, such a revenue miss would crush a company with a $9 billion market cap that is only delivering about $50 million in quarterly revenues, but a lot of the global market opportunity isn’t open yet including consumables in Canada.The market is quickly looking past the quarter despite the company reporting a large EBITDA loss of C$36.6 million. The big issue with the Canadian companies is the push for wide global expansion that has a company like Aurora spending wild on future sales that aren’t guaranteed. For this reason, SG&A expenses were C$67.1 million in the quarter; though relatively flat from the prior quarter.A couple of key figures for the quarter are the gross margin and the average net selling price. In FQ3, Aurora saw the gross margin rise slightly to 55% and the selling price per gram dipped 6% sequentially to C$6.40 per gram. The weakness here is problematic with a ton of additional supply hitting the market over the next year.Supply QuestionsThe question Aurora hasn’t really answered for investors is what happens with the additional supply hitting the market this quarter and in the future. The large cannabis company has long projected reaching an annual production rate of 150,000 kg by the end of March and still maintains 25,000 kgs on the market in the June quarter.The large cannabis company harvested 15,590 kgs in the March quarter, up from 7,822 kgs in the December quarter. The FQ3 kgs sold was 9,160, up from 6,999 kgs in the previous quarter.Both numbers were substantially above prior year levels, but the key is what happens when the current quarter inventory supplies are 150% more than the amount sold in the March quarter. The average net selling price per gram dipped 20% from last FQ3 to C$6.40 per gram.The company is still promoting the concept of Aurora being EBITDA positive in the June quarter. The stock price would’ve taken a hit, if management walked back from this target, but closing the gap on a C$36.6 million EBITDA loss is an incredible amount and requires strong pricing in the cannabis sector.Aurora didn’t really quantify the need for raising their total projected capacity from 500K kg to 625K kg back in early April. The company is still harping on the potential upside that comes from Ontario opening up additional retail stores and the consumables market opening up in October. The company plans to set aside some of the inventory to build supplies for the vapes and edibles products when the market opens up new revenue streams later this year.TakeawayThe key investor takeaway is that Aurora remains in a precarious position where the company will have a difficult time maintaining previous lofty projections despite the suggestions otherwise with the FQ3 results. With about 1.1 billion shares outstanding and an additional at-the-market offering open for C$400 million worth of shares, the stock has a market value of ~$9 billion with additional dilution on the way.The risk to the downside wasn’t eliminated with this report. If management ever confirms some of the worst fears regarding pricing, mounting losses and wild capacity expansion, the stock will get crushed. For now, Aurora is getting a pass for missing estimates, but this positive outcome won’t always occur.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on ACB: * Aurora Cannabis (ACB) Stock Is Still a Buy, Says Analyst * M&A to Save Aurora Cannabis (ACB) Stock in the End * The Cannabis ‘Magic Bus’ Is About to Leave the Station! Next Stops? Aurora Cannabis (ACB) More recent articles from Smarter Analyst: * The Clouds Are Getting Darker for Tesla (TSLA) Stock * Amazon (AMZN) Continues Diversifying; J.P. Morgan Bullish on the Stock * Micron (MU) Stock Remains a Long-Term Buy, Says Analyst * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy
- TheStreet.com•4 days ago
Aurora Cannabis Up 2.4%; Tera Tech Off 5.6%: Cannabis Stocks Mixed
Cannabis stocks were mixed Thursday. Among cannabis stocks tracked by TheStreet, four rose while six fell. Aurora Cannabis shares rose 20.5 cents, or 2.36%, to $8.89. Tera Tech shares fell 4.49 cents, or 5.
- Benzinga•5 days ago
Aurora Cannabis Exec Says Positive EBITDA Would Be 'Game-Changer'
Aurora continues to expand its international footprint after establishing a first-mover advantage in most of the 24 countries in which it operates, Singer told "Fast Money" host Melissa Lee. Aurora is evaluating new partnerships with the help of strategic adviser Nelson Peltz, Singer said. Aurora offered the Street a 2019 outlook in January that forces the company to take a "very disciplined" approach to its business, Singer said.
- InvestorPlace•5 days ago
The 3 Best Marijuana Stocks to Buy Right Now
Since their inception, marijuana stocks attracted significant attention. Due to both investment sentiment - and let's face it, raw emotions - the cannabis sector absolutely skyrocketed. But now, the segment is attracting attention for failing to live up to analysts' expectations. Is the honeymoon phase over for weed?Hardly! While cannabis firms have produced some disappointing results during earnings season, that's no reason to abandon them. For one thing, the resurgent U.S.-China trade war is incredibly favorable for marijuana stocks to buy. Prolonged tensions will almost surely cause us economic damage. An easy fix here is to legalize weed and fully open the door to a multi-billion dollar industry.Another reason to stay the course with marijuana stocks to buy is the medicinal-cannabis market. Currently, 33 states have legalized medical marijuana, which is indirectly an indictment against the pharmaceutical industry. As I've argued many times before, pharmaceuticals must take at least some responsibility for the opioid crisis. This story alone has converted many people who have realized the benefits of all-natural treatments.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, medical marijuana is becoming a popular and potentially profitable exported good. We all know that progressive Europe is receptive to cannabis-based therapies. But more shocking is that conservative Asian countries notorious for their draconian anti-drug policies have demonstrated tolerance. Thailand became the first Southeast Asian country to legalize medical marijuana, while South Korea is the first East Asian country to jump onboard. * Top 7 Dow Jones Stocks of 2019 -- So Far No matter how you look at it, this development strongly benefits the "botanical" industry. Here are the best three marijuana stocks to buy right now: Aurora Cannabis (ACB)Source: Shutterstock Aurora Cannabis (NYSE:ACB) recently issued its earnings results for the first quarter of 2019. Let's just say the print wasn't exactly great for ACB stock. Although Aurora Cannabis' net-revenue haul of 65.2 million CAD exceeded the year-ago quarter's tally by a country mile, it missed analysts' consensus target of 67.6 million CAD.Also a miss was earnings per share. Wall Street expected a loss of 4 cents per share, but Aurora instead delivered a loss of 16 cents. With such a wide gap, conventional wisdom dictates that you should avoid ACB stock.Actually, though, even if Aurora Cannabis hit its metrics with flying colors, I wouldn't pay much attention. Why? Because this is a marathon investment toward an unprecedented sector. As such, you'll find nearer-term noise. Ignore it.The key here is that the management is positioning itself for dominance in the lucrative medical-marijuana market. Its acquisition of Whistler Medical Marijuana indicates that the focus is on quality, not quantity. When weak marijuana stocks get flushed out, ACB will remain standing. Canopy Growth (CGC)Source: Shutterstock Undeniably, a motivating factor to buy shares of Canopy Growth (NYSE:CGC) is the company's international presence. Primarily, it puts up a strong showing in the European mainland. Currently, Canopy is pushing both westward and eastward in the region. However, the ultimate prize for CGC stock and others is the U.S. market.Of course, this is seemingly a pipe dream due to our country's (misguided) Schedule I classification of marijuana. Still, CGC stock jumped mid-April when Canopy announced a contingent offer to buy out Acreage Holdings (OTCMKTS:ACRGF). Canopy will pay $300 million upfront if the U.S. legalizes marijuana.Many botanical advocates argue that Schedule I is a relic of the ignorant and racist past. However, it's still federal law, which means cannabis firms in green-friendly states are still technically at risk. * 7 Stocks to Buy that Lost 10% Last Week But thanks to the U.S.-China trade war, I genuinely believe that full legalization is nearing reality. A prolonged conflict with the world's second-biggest economy will invariably hurt our own fiscal health. That's why the U.S. has to explore marijuana if they insist on playing hardball with China. If so, look for CGC stock to soar. Hexo (HEXO)Source: Shutterstock If you're like most folks who learned about marijuana stocks to buy late in the game, you're probably hesitant on exposing yourself to the top-tier names. After all, we see them splattered on investment headlines all over the internet. If that's you, you might want to check out Hexo (NYSEAMERICAN:HEXO).For starters, Hexo is an understated name. It generates interest, of course, but not nearly as much as the top dogs. I believe that benefits HEXO stock and is partially the reason why shares have steadily made robust gains. Year-to-date, the cannabis firm's equity is up over 113%.That said, HEXO stock has much more upside remaining over the long term. Renowned alcoholic beverage-maker Molson Coors Brewing (NYSE:TAP) has a partnership with Hexo to develop cannabidiol (CBD) infused, non-alcoholic drinks.CBD recently gained mainstream recognition because it offers the cannabis plant's health benefits, but without levering a negative psychoactive effect. In other words, the compound is a perfect gateway for consumers to try other cannabis-based products.This is a partnership that provides multiple natural synergies. Even though it's not quite a household name, you should put Hexo on your list of marijuana stocks to buy.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post The 3 Best Marijuana Stocks to Buy Right Now appeared first on InvestorPlace.
Yahoo Finance Video•4 days agoWhy the son of the late Notorious B.I.G says cannabis-related products can be used as tools for wellness
Think BIG, a new brand of cannabis, is out to raise awareness for criminal justice reform — all while paying homage to hip-hop legend The Notorious BIG. The California-based social movement strives to promote art and creativity through the sale of recreational marijuana use. Think BIG Founder CJ Wallace and Co-Founder and President Willie Mack sat down with Yahoo Finance’s Julie Hyman and Adam Shapiro to break down how the company got started and what’s next for Think BIG.
