|Bid||5.22 x 36200|
|Ask||5.23 x 4000|
|Day's Range||5.20 - 5.28|
|52 Week Range||4.58 - 12.52|
|Beta (3Y Monthly)||2.85|
|PE Ratio (TTM)||24.12|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
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.
Shares of Aurora Cannabis Inc. dropped 5.9% in premarket trading Monday, after Stifel Nicolaus analyst Andrew Carter recommended selling the Canada-based cannabis company following disappointing quarterly results. Carter cut his rating to sell from hold and slashed his price target to C$5, which is 36% below Friday's closing price, from C$7. The U.S.-listed shares closed Friday at $5.95. He wrote in a note to clients that Aurora's fiscal fourth-quarter results point to a "less robust in-market performance and difficulty to continue positioning for the larger global opportunity." Carter said he believes Aurora's financing efforts will be "challenged" against a backdrop of "overwhelmingly negative investor sentiment" towards the sector, damaged credibility and limited near-term catalysts to drive enthusiasm. Aurora's U.S.-listed stock has tumbled 21.3% over the past three months, while the ETFMG Alternative Harvest ETF has dropped 19.1% and the S&P 500 has gained 4.2%.
Aurora Cannabis falls Monday after an analyst from Stifel Nicolaus cuts his rating on the medical cannabis products company to sell from hold and slashes his price target.
This week, we saw Teva Pharmaceutical Industries Ltd (NYSE: TEVA ) make a big move in the cannabis industry, through a distribution deal between its subsidiary Salomon, Levin, Elstein, and InterCure Ltd ...
Thursday was not a good day to be invested in Canadian cannabis company Aurora Cannabis (ACB).Last month if you recall, Canada's second largest marijuana company lowered guidance for fiscal Q4 sales with an earnings pre-announcement warning that sales would range from only $100 million to $107 million. Wall Street assumed Aurora management was lowballing its estimates, though, with analysts' consensus expectations continuing to call for sales of $108 million heading into earnings.Instead, Aurora missed its own guidance range (and Wall Street's) entirely, reporting Wednesday evening that its actual sales for the final quarter of fiscal 2019 were only $98.9 million.Earnings were a disappointment, too. And to be clear, we're talking here not about actual GAAP earnings, but just the more lenient version -- earnings before interest, taxes, depreciation, and amortization -- that Wall Street has been focusing on all across the marijuana industry (in an implicit acknowledgement that none of these companies are going to be truly profitable anytime soon).In its Q3 earnings report, Aurora management had hinted that after several quarters of negative margins, it might finally turn EBITDA-profitable in Q4. Heading into earnings day, some analysts agreed that profitability was on the horizon -- while the consensus on Wall Street was that Aurora would report a slightly negative EBITDA of $4.1 million.As it turned out, EBITDA for the quarter was negative $11.7 million, far worse than anyone expected.Even that negative EBITDA number doesn't capture the full extent of how much money Aurora Cannabis is burning however. In a note following the earnings release, Seaport Global analyst Brett Hundley pointed out that Aurora increased the amount of cash spent on capital improvements by 73% year over year. The $167.4 million in capital expenditures made in the quarter, when added to the $4.6 million in negative cash from operations, resulted in total free cash flow of negative $172 million.With cash reserves dwindling, and no cash coming in from operations to offset them, Hundley warned: "Assuming overall cash burn remains at elevated levels" -- and Aurora management in fact confirmed that it will continue to spend heavily on capex through next quarter at least -- [then even "accounting for additional cash from its expanded credit facility and disposal of Green Organic Dutchman shares, the company has enough cash on hand [to fund only about] 2.4 quarters of operation."That gives Aurora barely half a year to figure out a way to make money selling marijuana -- or else issue and sell a bunch of new shares to keep itself solvent.Commenting on the results, BMO Capital Markets analyst Tamy Chen characterized Aurora's revenue miss as only "modest," and noted that "Aurora expanded its [recreational marijuana market] share in the quarter." (Aurora's market share in recreational weed is now 21.9%, up 340 basis points from last quarter).Nevertheless, the upshot of all the above is that both Seaport Global and BMO Capital are only willing to rate the stock "neutral" and "market perform," respectively -- both hold-equivalent ratings. Even after the stock fell 9.4% on Wednesday's news, neither one is willing to clamber out on a limb and recommend buying the stock.With sales failing to climb as expected, profitability still a ways away, and cash reserves dwindling, I cannot say as I blame them.Consensus VerdictUltimately, the word on the Street points to a sidelined majority on Aurora Cannabis. In the last three months, the cannabis stock has landed 3 ‘buy’ ratings vs. 5 ‘hold’ ratings. That said, the consensus average price target points to $9.06, or nearly 54% upside potential for the stock. This suggests that by consensus expectations, for now, the bulls still win on ACB.
The two largest pot companies in the world have developed secret formulas that predicts U.S. federal and state cannabis legalization.
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.
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.