ACB - Aurora Cannabis Inc.

NYSE - NYSE Delayed Price. Currency in USD
0.7995
-0.0101 (-1.25%)
At close: 4:02PM EDT

0.8036 0.00 (0.51%)
After hours: 5:25PM EDT

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Commodity Channel Index

Commodity Channel Index

Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close0.8096
Open0.8450
Bid0.8100 x 4000
Ask0.8029 x 900
Day's Range0.7800 - 0.8640
52 Week Range0.6000 - 9.3700
Volume50,558,453
Avg. Volume33,454,749
Market Cap923.047M
Beta (5Y Monthly)1.99
PE Ratio (TTM)3.70
EPS (TTM)0.2160
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
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Overvalued
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    • Cannabis Countdown: Top 10 Marijuana And Psychedelic Stock News Stories Of The Week
      Benzinga

      Cannabis Countdown: Top 10 Marijuana And Psychedelic Stock News Stories Of The Week

      Welcome to the Cannabis Countdown. In this week's rendition, we'll recap and countdown the top 10 Marijuana and Psychedelic Stock News stories for the week of March 30th - April 5th, 2020.Without further ado, let's get started.* Yahoo Finance readers, please click here to view full article.10\. COVID-19 Forces Analysts to Reassess, 8 Pot Stocks with Recent Ratings and Price Target UpdatesThe COVID-19 Pandemic Has Changed the Game for Nearly Every Cannabis CompanyIn response to the Coronavirus, many analysts have updated their research on individual Pot Stocks to factor in the virus' impact. Here's a recap of the recent analyst activity including updated ratings and price targets.READ FULL ANALYSTS UPDATES ARTICLE9\. Aurora Cannabis is a "Piece of Crap", This Fund Manager SaysThere Are Many Bargains Out There Right Now But Aurora Isn't One of Them, Says Brian Acker of Acker FinlayAcker appeared (from home) on BNN Bloomberg's "Market Call" program recently and fielded a call on onetime market darling Aurora Cannabis (NYSE: ACB). His answer to whether or not the beaten-down stock was a buy was a resounding no.READ FULL AURORA CANNABIS ARTICLE8\. MindMed Acquires Exclusive License to Eight Clinical Trials of LSDMindMed Partners with World-Leading Psychedelic Research Laboratory at University Hospital BaselThe multi-year deal gives MindMed (OTC: MMEDF) access to largest collection of clinical trials & knowhow for LSD psychedelic research including a Phase 2 clinical trial of LSD for the treatment of anxiety.READ FULL MINDMED ARTICLE7\. NYSE Aims to Boot CannTrust After Concluding Cannabis Producer 'No Longer Suitable for Listing'NYSE Said it Reached its Decision After the CannTrust Obtained a Creditor Protection Order from the Ontario Superior Court of JusticeThe New York Stock Exchange's (NYSE) regulatory enforcement arm has initiated the delisting process for CannTrust Holdings (NYSE: CTST) after concluding the Canadian licensed producer (LP) "is no longer suitable for listing."READ FULL CANNTRUST ARTICLE6\. Pot Stocks Plunge After Another Round of Disappointing EarningsHexo Drops Over 20% After Large Write-Downs, Medipharm Notes Oversupply of Bulk Cannabis Hurt PricesHEXO Corp. (NYSE: HEXO) led Cannabis Stocks down this week after the company reported Earnings that were hit by huge write-downs. MediPharm Labs (OTCQX: MEDIF) fell as well after the company reported net income of $1.9 million versus a net loss of $3.5 million a year ago. Cronos Group (NASDAQ: CRON) also reported earnings this week.READ FULL CANNABIS EARNINGS ARTICLE5\. Cronos Group Will Emerge from this Crisis, Raymond James SaysRaymond James analyst Rahul Sarugaser Reviewed Q4 Earnings from Canadian LP Cronos GroupIn the analyst's update to clients on Cronos Group (NASDAQ: CRON), Sarugaser said the ho-hum earnings coupled with a hitch in the company's U.S. business are enough to trigger a target reduction, but that the stock is still looking attractive at these prices.READ FULL CRONOS GROUP ARTICLE4\. Champignon Brands Bolsters Special Advisory Committee + SHRM Technical Breakout Chart UpdateChampignon Brands Appoints Jay Kheita to the Company's Special Advisory CommitteeChampignon Brands (OTC: SHRMF) announced that it appointed another essential member to its Special Advisory Committee. Mr. Kheita is a founder of AltMed Capital Corp, a leading Canadian Psychedelic medicine clinic operator. Since last week's technical breakout alert, shares of SHRM have surged as much as 77%.READ FULL CHAMPIGNON BRANDS ARTICLE3\. Hollister Biosciences Closes Transformational Venom Extracts Acquisition, Psychedelics Deal Up NextThe Highly Accretive Acquisition Strengthens Hollister's Brand Portfolio While Expanding its Footprint Across Multiple StatesVenom Extracts brings with it 2019 EBITDA of $2.5 million on revenue of $16.4 million, putting Hollister Biosciences (OTC: HSTRF) on the fast track to becoming a cannabis industry leader in 2020. In addition to becoming a leader in the cannabis sector, Hollister is diversifying into the highly promising world of Psychedelics.READ FULL HOLLISTER ARTICLE2\. FDA Grants GW Pharma Priority Review for Cannabidiol Drug in Seizure ConditionThis Status is Usually Granted to Therapeutics That Have the Potential to Treat an Illness That Doesn't Have an Existing TherapyA drug from GW Pharmaceuticals (NASDAQ: GWPH) targeting a cause of genetic epilepsy has received Priority Review status from the U.S. Food and Drug Administration.READ FULL GW PHARMA ARTICLE1\. These 2 Companies Could Be Turning LSD, Magic Mushrooms, Ketamine and MDMA into the Next Blockbuster DrugsInvestors Who Missed the Last Bull Market in Weed Stocks or Got in Too Late Should Start Researching the "Shroom Boom" ImmediatelyEarly cannabis investors and business minds are positioning themselves in the world of Psychedelic Medicine as the flow of smart money hits the market. Canopy Growth (NYSE: CGC) founder Bruce Linton and Billionaire "Mr. Wonderful" Kevin O'Leary from Shark Tank, are going all-in on what they think is a much bigger opportunity than the cannabis boom.READ FULL SHROOM BOOM ARTICLEImage by Stephen VanHove from Pixabay See more from Benzinga * Cannabis Countdown: Top 10 Marijuana And Psychedelics Industry News Stories Of The Week * Cannabis Countdown: Top 10 Marijuana And Psychedelic Stock News Stories Of The Week * Cannabis Countdown: Top 10 Marijuana And Psychedelic Stock News Stories Of The Week(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • High Tide Temporarily Closes Ontario Retail Cannabis Stores and Provides Business Update
      CNW Group

      High Tide Temporarily Closes Ontario Retail Cannabis Stores and Provides Business Update

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    • Aurora Cannabis (ACB): Strong Industry, Solid Earnings Estimate Revisions
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      Aurora Cannabis (ACB): Strong Industry, Solid Earnings Estimate Revisions

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    • Below $1, Is Aurora Stock Finally a Buy?
      InvestorPlace

      Below $1, Is Aurora Stock Finally a Buy?

      The cannabis sector looked like it was ready to come roaring back to life to start 2020. But long before the coronavirus began sweeping through the world, Aurora Cannabis (NYSE:ACB) and its peers were feeling the selling pressure. Aurora stock now trades for less than a buck, causing investors to wonder what's next.Source: Shutterstock I have not been a fan of Aurora stock for some time. Once support failed in the summer, there was no reason to be long this name. I didn't like it in August or in December, and wasn't surprised when it hit new lows in February.Aurora's main problem is similar to many of its peers: it doesn't have strong enough fundamentals to back up its valuation. When the financials aren't the catalyst, a stock needs strong technicals for the bulls to have a chance. But once support gave way, ACB has done nothing but move lower and lower.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith all that said, I don't like to stay fixed on a position. Meaning that, if the situation warrants going from bearish to bullish, I will. Does Aurora stock deserve that designation? Let's take a closer look. Valuing Aurora StockIf you recall from February, Aurora gave investors plenty to chew on. Its CEO was stepping down and the company took large impairment charges and write-downs. Aurora also announced preliminary fiscal second-quarter results that were well below Street expectations. * 30 Stocks on a Deathwatch Further, the company said, "We believe that the long-term opportunity for Aurora remains very compelling, despite a slower than anticipated rate of industry growth in the near-term."That was before COVID-19 became the world's focal point. However, it's not clear what impact the coronavirus is having on the cannabis space. To some degree, it may actually be helping. Alcohol sales have been on the rise amid the panic, and at least one analyst has made the case that cannabis sales have been steady.While most consumers were okay in mid-March, millions have now been out of work for a few weeks. The longer it takes for them to get back to work, the worse the impact is going to be on the economy. At one point not long ago, New York was a big potential catalyst for cannabis. But with COVID-19 wreaking havoc on the state, it's clear that marijuana legalization is on the backburner, according to the governor.In the most recent quarter, Aurora stock had 156 million CAD in cash. Current assets of 629.8 million CAD easily outweighed current liabilities of 213.9 million CAD. However, in that current asset count was 45 million CAD of restricted cash and over 200 million CAD in inventory.Further, ACB is not free cash flow positive or profitable. Its recent quarter showed a sequential decline in revenue and almost flat year-over-year growth. Guidance for the current quarter put sequential growth at flat to negative. In short, the financials don't get me very excited.Trading ACB StockA look at the technicals reveals a slightly improved situation, but not by much. As you can see from the one-year daily chart, Aurora stock has been trending lower since support near $7 broke in July. Click to Enlarge Source: Chart courtesy of StockCharts.comPurple arrows on the chart highlight this level turning from support to resistance in August. Since then, a series of lower lows and lower highs have followed before shares completely blew out in March.ACB bottomed at 60 cents before rebounding higher with Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY), Cronos Group (NASDAQ:CRON) and others from the space. For Aurora stock, that rally topped out at $1.13 before shares retreated back below $1.So, what now?Shares made an extreme move lower that, with time, may prove to be the low. But at this point in time, we don't know that with any certainty. From here, bulls need to see Aurora put in a higher low. They also need to see the stock break out of this dreadful downtrend. If it can do both -- break the downtrend and begin trending higher -- then Aurora stock may have a place as a speculative holding in one's portfolio.Unfortunately, we're not there yet and because the financials aren't attractive enough on their own, Aurora as a whole is a pass for me. I certainly wouldn't be short at this point, but I wouldn't be long either. Instead, use the market's decline as an opportunity to buy high-quality stocks at a discount.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 * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Below $1, Is Aurora Stock Finally a Buy? appeared first on InvestorPlace.

    • Aurora Cannabis (ACB): A Real Lift or a Dead Cat Bounce?
      TipRanks

      Aurora Cannabis (ACB): A Real Lift or a Dead Cat Bounce?

      In mid-March, Aurora Cannabis (ACB) hit a 52-week low of $0.60 per share, with some commentators believing it hadn't hit bottom yet. While it appears a bottom is in, the question going forward is whether or not the company can hold on to some of its recent gains.After hitting its bottom, a little over a week later the company soared to over $1.13 per share, pulling back to $0.85 per share as I write.In this article we'll look at whether or not the company will be able to sustain or increase these gains, and what it would take to do so.The key factor in the near termWithout a doubt the key to short-term growth for Aurora is recreational sales in Canada. If it is able to do well there, it will surprise the market to the upside and give its share price another boost that would have a good chance to hold if there are no negative surprises in its next earnings report.If Aurora is able to match last quarter's recreational pot revenue, it should exceed it by at least several million because of the inclusion of derivative sales in this quarter; that means higher revenue, margins and earnings from those sales. Another element would be if it is able to attract new customers to derivatives, which would represent a significant increase in its performance if the new customers represent meaningful numbers in the reporting period.Add to that the gradual increase in retail outlets to sell in, and it points to a possible solid win in this quarter. The caveat will be if it is in fact able to at least sell as much recreational pot as it did last quarter; that's not a guarantee, so we'll have to wait and see if the increase in stores and sales of derivatives will allow it to exceed recreational pot sales expectations.On the positive side, if it is able to generate the same number of sales with recreational pot without derivative sales, it could surprise to the upside in a big way. That could happen if it is able to regain some Canadian market share.The negative catalyst would be if coronavirus ends up having a detrimental impact on Canadian sales.International salesAfter dropping the ball last quarter in regard to licensing in Germany, the company temporarily lost some business until it met German requirements. With that behind them, there is no doubt Aurora will win back that business, although it could take a couple of quarters to do so.What it means is revenue from international sales in the last quarter should rebound, and combined with the potential increase in recreational sales, would add more fuel to the fire.Over the long term Aurora Cannabis will be one of the international market leaders in the cannabis sector, but for now it'll take time to build that business out.Eventually I think this will be the best performing segment Aurora competes in.Consensus VerdictMost of Wall Street is surveying the cannabis player from the sidelines, with TipRanks analytics demonstrating ACB as a Hold. Based on 16 analysts polled in the last 3 months, only 1 say "buy," while 11 suggest "hold," and 4 recommend "sell." That said, the 12-month average price target still stands at $1.69, which marks about 96% upside from where the stock is currently trading. (See Aurora Cannabis stock analysis on TipRanks)ConclusionAs has been the case in the recent past, some of the things having a negative effect on Aurora Cannabis and its Canadian peers remain in place, and that has been potentially worsened with the emergence of coronavirus.I don't think coronavirus will have an impact on sales to long-term cannabis users, but it may slow down the number of new users entering the market. That could undermine the company in the near term because it's highly probable that derivatives will be more palatable to new users who don't want the perceived stigma that smoking or vaping cannabis would have on them. The company has said about 20 percent of its sales in this quarter are from derivatives, which based upon sales from last quarter, would be over $7 million.If it is exceeding last quarter's sales, that number could be higher.How this will play out is Aurora is partially reliant on growth from opening new retail stores in Canada, and should grow nicely in conjunction with the openings.Whether or not coronavirus has had a lot of impact on the performance of Aurora won't be known until the earnings report. So far it hasn't been suggested that has been the case, but it should be considered a probability.If the things outlined in this article go right for Aurora, it will surprise the market to the upside in the short term, and would lay a foundation for incremental, sustainable growth.As the number of retail stores multiply and international sales climb, Aurora's future prospects look bright, as it has the potential to quickly ramp up production with the production facilities it can quickly bring on line and complete construction on.To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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    • High Tide Reports First Quarter 2020 Financial Results Featuring 173% Revenue Increase over the Same Period of the Previous Year
      CNW Group

      High Tide Reports First Quarter 2020 Financial Results Featuring 173% Revenue Increase over the Same Period of the Previous Year

      High Tide Reports First Quarter 2020 Financial Results Featuring 173% Revenue Increase over the Same Period of the Previous Year

    • Aurora Cannabis (ACB) Stock Gets a Recession Boost; What’s Next?
      TipRanks

      Aurora Cannabis (ACB) Stock Gets a Recession Boost; What’s Next?

      The global economic shutdown due to the coronavirus was a potential nightmare for Aurora Cannabis (ACB). The Canadian cannabis company is in the middle of cutting capacity and costs for the new reality in the market while trying to avoid running out of cash. A complete shutdown of cannabis stores would’ve crushed any remaining hope in financial improvements at the business, but the market has seen the opposite effect of the shutdown actually lead to a boost to cannabis sales as consumers stay at home.Booming SalesOn March 17, Canopy Growth (CGC) announced the closure of all 23 of their retail stores in Canada due to the Covid-19 outbreak. Since this point, sales have soared in Canada as consumers have rushed to purchase weed.Several provinces including Ontario and Quebec have deemed cannabis stores as essential while the Ontario Cannabis Store’s website had the director of communications confirm sales over the weekend doubled the sales from only two weeks ago. Likewise, Nova Scotia reported cannabis sales spiked 76% last week.Whether due to fears of store closures or adult users staying at home with no work, people have flocked to cannabis stores to ensure supplies to wait out the virus from home. In addition, a supplier like Aurora Cannabis gets the extra benefit of not having Canopy Growth stores open.The one major caveat is that Canadian cannabis sales could yet be impacted as the virus outbreak rolls throughout the country and any lingering impact is unknown.RescueThe sales boost couldn’t have come at a better time. The Canadian sector was flooded with cannabis supply and companies were struggling to generate profitable revenue growth. Aurora Cannabis alone had C$216 million in inventory on their books suggesting enough supply for the next year.The company couldn’t afford another quarter of weak sales. Based on the initial sales indications from March, Aurora Cannabis should top analyst estimates for a revenue rebound to C$65 million in the current quarter. The company had net revenues of C$63 million in the December quarter.The company has initiated a cost reduction program to get quarterly operating expenses below C$45 million. A key aspect of any turnaround is for Aurora Cannabis and the sector to actually generate revenue growth in 2020 with new retail stores opening and Cannabis 2.0 products launching. The combination will help cut the EBITDA losses.Ontario was set to start allowing 20 new stores to open per month and the Covid-19 outbreak might provide some regulatory and construction delays, but the market should start seeing consistent growth in the key province. Aurora Cannabis has survived the bottom and can now continue with at-the-market equity sales to raise funds for operations and the last remaining capex spending.TakeawayThe key investor takeaway is that Aurora Cannabis got the sales boost the company needed to get over the hump. The former CEO selling 12.16 million shares into the open market on March 16 was the headline that likely created a bottom in the stock below $0.70.Aurora Cannabis should see the diluted share count balloon to 1.3 to 1.4 billion shares outstanding. As the company approaches an EBITDA breakeven level later in the year with the streamlined operations, the stock will finally get a footing back above $1.According to TipRanks, the consensus on Wall Street is that Aurora stock is a “hold” for investors. But TipRanks might as well have said “buy” — because analysts, on average, think the stock, currently at $0.99, could zoom ahead to $1.71 within a year, delivering 71% profits to new investors. (See Aurora stock analysis on TipRanks)

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      Top Marijuana Stocks That Pay Dividends

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      Zacks

      Implied Volatility Surging for Aurora Cannabis (ACB) Stock Options

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    • When the Smoke Clears, Canopy Growth Stock Will Be a Winner
      InvestorPlace

      When the Smoke Clears, Canopy Growth Stock Will Be a Winner

      The selloff in the market and in Canopy Growth (NYSE:CGC) stock both continue. Markets plunged again earlier this week, and Canopy stock hasn't been immune to the selling pressure. Now, shares trade back where they did in 2017.Source: Jarretera / Shutterstock.com As I've argued over the past few weeks, investors need to keep their cool. This selloff has not been easy and certainly has not been fun. But over time, the economy and the markets will recover.In the meantime, however, the volatility is dispiriting. However, as I've told subscribers of my Cannabis Cash Weekly service, in these environments investors sometimes have to step back and let the chaos play out.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTaking that step back, the opportunity in CGC stock becomes more clear. The long-term growth opportunity in cannabis is delayed -- not eliminated. Canopy is the industry's leader, and should remain so. In fact, it may emerge with an even stronger position. * 10 Stocks to Invest In for a Post-Coronavirus Whipsaw Canopy isn't going anywhere. This, too, shall pass -- and when it does, CGC stock will rally sharply. Canopy Cuts BackEven before panic gripped the markets, it was becoming increasingly clear that the cannabis industry was headed for a shakeout. And that shakeout is almost guaranteed at this point.In the sector as a whole, there is too much debt and too much capacity. Canopy chief executive officer David Klein made precisely that point in an interview on Feb. 14. "There's not a lot of market demand for cannabis production facilities," he told Yahoo! Finance. "There's a lot of capacity in Canada and no logical buyers."That capacity is why Canopy announced earlier this month that it was closing two facilities in British Columbia. Furthermore, a greenhouse project in Ontario also is being canceled. Canopy isn't throwing good money after bad.Wall Street largely cheered the move -- for good reason. It cuts Canopy's costs, and in turn, speeds its path toward profitability. It also keeps the company from participating in "race to the bottom" pricing in wholesale cannabis.It's also a decision many other cannabis companies won't be able to make. An Industry Shakeout LoomsCanopy can make that decision because of its fortress balance sheet. In 2018, Constellation Brands (NYSE:STZ,NYSE:STZ.B) invested some $4 billion into Canopy Growth.Much of that money has been spent. Canopy has made acquisitions, and spent heavily to build out production assets. In fact, it's clear in retrospect that previous management spent too much. That's a key reason why Constellation sent Klein -- formerly its chief financial officer -- to take the top spot at Canopy.However, Canopy still has a good chunk of that cash remaining. As of Dec. 31, the company had 2.3 billion CAD (about $1.6 billion) in cash on its balance sheet. With losses coming down and long-term debt of just 536 million CAD ($373 million), the company is in excellent financial shape.To put it simply, Canopy isn't going bankrupt -- but other producers will. There's a real chance the equity in Aurora Cannabis (NYSE:ACB) gets wiped out, one reason I've long recommended even cannabis bulls avoid that name. Moreover, MedMen Enterprises (OTCMKTS:MMNFF) had to call off its acquisition of PharmaCann -- likely due to financing worries. Its OTC stock price -- just 19 cents -- shows its desperate state.The news is just as bad, if not worse, for many smaller, private operators. Those companies don't have the cash to weather store closures or any short-term effects.Canopy, however, does. And that positions it well going forward. How CGC Stock Can BenefitCertainly, a worldwide pandemic is not how anyone hoped the cannabis industry would become more rational. But it's also likely that the response to the coronavirus from China simply will be the catalyst, not the cause. Given debt levels and overcapacity, many smaller operators were going to fail regardless.That said, Canopy would benefit either way. In fact, a recent transaction shows how. Last week, Canopy and TerrAscend (OTCMKTS:TRSSF) entered into a loan agreement. Canopy is lending TerrAscend 80.5 million CAD, backed by TerrAscend's assets.The loan has an interest rate of 6.1% annually over the next decade -- but that's not the prize. Canopy also received more than 17 million warrants to buy TerrAscend shares, most of them at an exercise price of 3.74 CAD per share.If TerrAscend, which currently trades below 2 CAD, posts a huge rally, Canopy will get its money back while also owning a nice chunk of the company at an attractive price.If it doesn't, though, Canopy has first claim on its assets, brands, and retail operations.This kind of savvy deal is what Klein was hired to make. And it highlights the opportunities Canopy will have for the next few years. The company can patiently wait out the upheaval in its industry, and pick its spots to make investments that can drive significant value.Of course, that's exactly what investors should be doing right now. As they do so, they should give at least a long look to Canopy Growth stock.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. Matt does not directly own the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 of the Best Long-Term Stocks to Buy in a Bear Market * 7 "Perfect 10" Healthcare Stocks to Buy Now * Where the FANG Stocks Sit in This Wild Market The post When the Smoke Clears, Canopy Growth Stock Will Be a Winner appeared first on InvestorPlace.

    • Here's How Coronavirus Can Impact Cannabis Industry
      Zacks

      Here's How Coronavirus Can Impact Cannabis Industry

      Marijuana should be avoided during the pandemic as users share marijuana joints, which may increase the spread of the virus.

    • Top Marijuana Stocks for April 2020
      Investopedia

      Top Marijuana Stocks for April 2020

      The marijuana industry is made up of companies that either support or are engaged in the research, development, distribution, and sale of medical and recreational marijuana. Some of the biggest companies in the marijuana industry include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and GW Pharmaceuticals PLC (GWPH). Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market, posting a total return of -73.4% compared to -12.1% for the S&P 500 over the past 12 months. These market performance numbers and the statistics in the tables below are as of March 17.

    • Pot smokers stock up for pandemic on ‘the vice of choice when alone’
      MarketWatch

      Pot smokers stock up for pandemic on ‘the vice of choice when alone’

      As Americans faced seclusion due to the COVID-19 pandemic, shoppers in San Francisco had the option of stocking up on one popular product with a minimal amount of human interaction: Marijuana.

    • Aurora Cannabis Founder Dumps 12 Million Shares, and Jefferies Is Not Amused
      TipRanks

      Aurora Cannabis Founder Dumps 12 Million Shares, and Jefferies Is Not Amused

      Terry Booth, the founder and one-time CEO of Aurora Cannabis (ACB), has just sold 12.2 million shares of the company he once ran -- a development, says Jefferies analyst Owen Bennett, that is "not great for sentiment" about the stock.You don't say!As Aurora announced in a press release Monday, "Terry Booth has filed a report on the System for Electronic Disclosure by Insiders (SEDI) regarding his sale of approximately 12,161,900 shares into the open market ... in connection with the previously announced transition of Mr. Booth's role within the Company." The transition in question being, of course, Booth's resignation as CEO announced last month.Why is Booth selling now? One might imagine that, because Booth is leaving the company, he'd want to cut ties with Aurora entirely, and is therefore selling off his stake in order to make as clean a cut as possible. But as Bennett points out, Booth "remains in a strategic advisor role" at the company. He has not in fact cut ties entirely. Moreover, as an important advisor to Aurora Cannabis, he presumably has a good insider's vantage point to how things are going within Aurora, and what the company's prospects look like.In Bennett's estimation, Monday's stock sale suggests that Booth may see "some more difficult times ahead."Which is not to say that the times behind Aurora have been all unicorns and rainbows. Indeed, a chart of Aurora Cannabis's fortunes over the past 12 months shows an almost straight line down from the top left axes to the bottom right, as Aurora Cannabis stock has sunk from a share price of nearly $10 a year ago, to $0.70 today -- a decline of 93%.Most recently, Bennett notes, the company has lost its Chief Corporate Officer (Cam Battley, who resigned in December), followed by an announcement of a restructuring plan, including new "ambitious profitability targets" that no one seems to have much faith in.Fact is, most analyst estimates still don't see Aurora turning GAAP profitable before 2023 at the earliest -- and the way things are going, the company may not make it that long. At last report, Aurora Cannabis was deeply unprofitable ($1.1 billion lost last year), burning cash (about $610 million burnt last year), and mired in debt (nearly $350 million in long term debt, against cash reserves of only about $140 million).Sure, to hear management tell it, Aurora remains "the Canadian company defining the future of cannabis worldwide." Executive Chairman and Interim CEO Michael Singer still insists, "the Board and management remain focused on the plan we laid out in February and we are progressing as planned toward appropriate capital allocation, balance sheet strength, and profitability." And even Booth says he's only selling because "market volatility with respect to COVID-19 and a number of opportunities in the industry led to me taking some cash to the sidelines ... I believe many cannabis stocks including Aurora are undervalued and I will be watching present market conditions unfold. I will definitely be considering buying back in once the dust settles."Regardless, actions speak louder than words. Investors owning the stock today, and seeing its founder dumping his shares  -- even with an expressed intention of perhaps buying back later -- might now be thinking to themselves "maybe we should think about buying back later, too, but for now -- sell!"Turning now to the rest of the Street, it appears that other analysts are generally on the same page. With 12 Holds, 4 Sells, and just single Buy, the consensus rating comes in as a Hold. The average price target among these analysts stands at $1.87, which is about 165% higher than ACB's current value -- most likely a result of the quick drop and analysts’ inability to turnaround new price targets so quickly. (See Aurora Cannabis stock analysis on TipRanks)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

    • Aurora Founder, Former CEO Terry Booth To Sell 12.16M Shares
      Benzinga

      Aurora Founder, Former CEO Terry Booth To Sell 12.16M Shares

      Aurora Cannabis Inc. (NYSE: ACB) announced Monday that founder and former CEO Terry Booth has disclosed the sale of around 12.16 million shares of the company.The sale of Aurora's shares is linked with Booth's resignation from the position of CEO last month, the cannabis company said."The board and management remain focused on the plan we laid out in February and we are progressing as planned toward appropriate capital allocation, balance sheet strength, and profitability. We look forward to updating the markets on our next quarterly earnings call," Executive Chairman and Interim CEO Michael Singer said in a statement.Aurora's shares were trading 5.42% lower at 73 cents per share during Monday's pre-market session.Related Links:Why Restructuring Efforts Don't Necessarily Signal The End Of A Cannabis Company's DownturnAurora Cannabis Analyst Sees Power In Restructuring, Still Projects Stock VolatilityPhoto courtesy of Aurora. See more from Benzinga * Tilray Shares Fall After Q4 Print, Analyst Questions Positive EBITDA Projection * Aurora Cannabis Analyst Sees Power In Restructuring, Still Projects Stock Volatility * Aurora Cannabis Analyst Says Company Needs 'Much Work On Costs'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    • MarketWatch

      Aurora Cannabis ex-CEO Terry Booth sells 12.2 million of his company shares

      Aurora Cannabis Inc. said Monday its former Chief Executive Terry Booth has sold 12.2 million of his company shares into the open market. This deal "is in connection with the previously announced transition of Mr. Booth's role within the company. U.S.-listed shares of Aurora, the most widely held stock on the Robinhood platform, were down about 12% in premarket trade.

    • PR Newswire

      Aurora Cannabis Announces Share Sale by Founder Terry Booth

      Aurora Cannabis Inc. (the "Company" or "Aurora") (NYSE | TSX: ACB), the Canadian company defining the future of cannabis worldwide, today announced that Terry Booth has filed a report on the System for Electronic Disclosure by Insiders (SEDI) regarding his sale of approximately 12,161,900 shares into the open market. This transaction is in connection with the previously announced transition of Mr. Booth's role within the Company.

    • MarketWatch

      Cannabis stocks tumble along with broader market, Aurora Cannabis down 9%

      Cannabis stocks fell sharply Monday, swept up in the broader market rout that was triggered by an oil price war between Saudi Arabia and Russia and the continued spread of the coronavirus. The ETMG Alternative Harvest ETF was down 5.7%, with every one of its constituent stocks, which include tobacco companies, trading lower. The Cannabis ETF was down 7.5%, with all of its constituent stocks lower. Aurora Cannabis Inc. , the most widely held stock on the trading platform RobinHood, fell 9%. Canopy Growth Corp. , the market leader, was down 5.6%. Tilray was down 10%, after MKM analyst Bill Kirk said he's struggling to make sense of the math in Tilray's guidance that it will have positive adjusted EBITDA in the fourth quarter of 2020. "Adjusted EBITDA would still be negative even if: 1) 4Q'20 revenue was 2x 4Q'19 (difficult, but possible); 2) gross margin expanded 500bps (low probability that needs large international contribution); and 3) adjusted SG&A costs were flat y/y on an absolute basis (extremely unlikely given growth required)," Kirk wrote in a note to clients. Kirk lowered his fair value estimate on the stock to $13 from $26. Cronos Corp. was down 3.4%. The S&P 500 was down 4.8% and the Dow Jones Industrial Average was down 5%.

    • Will Things Go From Bad to Worse for Aurora Stock?
      InvestorPlace

      Will Things Go From Bad to Worse for Aurora Stock?

      Things have not been going well for Canadian cannabis stocks like Aurora Cannabis (NYSE:ACB). Aurora lost 32% of its value over the last month. And so far, March isn't looking much better; Aurora stock today hit a new 52-week low of $1.16 per share.Source: Shutterstock Some of the stock's plunge s due to the weakness of the cannabis industry as a whole. But there are several other factors that have been dragging Aurora down recently.Last month, the company's CEO, Michael Singer, announced he would be stepping down from his position. And Aurora plans to implement a variety of cost-cutting measures, including over 500 job cuts. Plus, ongoing concerns about the coronavirus from China aren't helping matters much.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen it comes to Aurora stock, investors are likely bracing themselves for more bad news. So how much worse can things get? Here are four things to know: 1\. The Coronavirus May Cause Problems for AuroraOne of the most immediate concerns for Aurora Cannabis is dealing with the impact of the coronavirus. Concerns about the coronavirus are causing problems for many companies, especially those with Chinese manufacturers. * 9 Stocks to Buy If People Get Stuck at Home Aurora depends on Chinese manufacturers for many of its products, including vape pens. A slowdown or a halt of Chinese supply chains could significantly impact the company's bottom line. 2\. Aurora's Balance Sheet Doesn't Seem to Be ImprovingThe company's dismal balance sheet is what worries most Aurora Cannabis investors. The company has made over a dozen acquisitions since 2016, and grossly overpaid for most of them. And Aurora's free cash flow continues to be worrisome.During the company's most recent earnings report, it announced an EBITDA loss, excluding certain items, of 80 million CAD. The company also reported significant goodwill and asset-impairment charges.However, the company said its core Canadian assets wouldn't be affected by any write-downs. Meanwhile, Aurora does have a plan to restructure its debt ,and the company plans to lay off more than 500 employees in the coming months. 3\. The Canadian Cannabis Market Is Still Pretty InefficientIn 2020, it's expected that a number of new cannabis retail stores will be opening across Canada. This change is long overdue as the Canadian market is seriously lacking in retail cannabis stores.However, even if the store rollout goes according to plan, Aurora will likely only see a 25% increase in its profits. And the Canadian cannabis market is still much slower and less efficient than many people would like. 4\. Support for Aurora Stock Seems to Be DwindlingAnd finally, even people who were once optimistic about the potential for Aurora stock seem to be losing faith. The company is considered a hold on Wall Street, and most analysts have "hold" or "sell" ratings on the stock.There's no doubt that the cannabis industry is going to be profitable in the long-run. It's just unclear how long Aurora Cannabis will be along for the ride.Jamie Johnson is a personal finance freelance writer and has been writing for InvestorPlace since mid-2019. She writes for a number of other well-known financial sites, including Credit Karma, Quicken Loans and Bankrate. As of this writing, Jamie Johnson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Stocks to Buy If People Get Stuck at Home * 7 Strong Value Stocks to Buy for 2020 * 5 High-Yield Dividend Stocks With Great Buyback Programs The post Will Things Go From Bad to Worse for Aurora Stock? appeared first on InvestorPlace.

    • Largest Canadian Cannabis Companies Spinning Off 'Value Brands' To Combat Illicit Markets With Cheap Weed
      Benzinga

      Largest Canadian Cannabis Companies Spinning Off 'Value Brands' To Combat Illicit Markets With Cheap Weed

      By The Fresh Toast's Brendan Bures, provided exclusively to Benzinga Cannabis.Canadians want cheap weed and retailers have finally figured out they should be the ones giving it to them. Legalizing marijuana is only half the battle in weeding out black market dealers. In California, there are three illegal sellers for every one regulated dispensary. Add to that the fact that California gram prices rank near the top of legal recreational markets -- plus the state has some of the highest taxes on weed -- and you understand why consumers flock to the black market, which claims up to 80% of all California marijuana sales.Canada recently announced a creative solution to battle its own black market problem -- selling cheaper weed.According to latest data from Statistics Canada, legal marijuana increased by 107% in the country, but 70% of all cannabis sales go to illegal sources. In its first year of legal marijuana, Canadian retail sales totaled just over $1 billion. An impressive number, but the marijuana black market totaled between $5 to $7 billion during that same time period.Big marijuana players, like Tilray and Aurora Cannabis, bet early on that what Canadian consumers wanted was high-grade, top-of-the-line product. But they bet wrong, as quality goods beget lofty prices. Statistics Canada reported that in Q4 of last year, legal marijuana averaged CA$10.30 ($7.83) per gram while consumers could find an average of CA$5.73 ($4.36) per gram on the black market. That resulted in a difference of CA$4.57 ($3.47), representing the second-widest margin between the two since Canada's marijuana laws took hold in late 2018.Photo by Yarygin/Getty ImagesIn response, Canada's biggest marijuana players have pivoted to creating spin-off "value brands" of its marijuana goods. Canopy Growth, for example, will release a one-ounce product called "Twd. 28" (an ounce contains 28 grams) where consumers should expect to pay an average price of $4.00 per gram, with THC counts between 13-25%."All of this is designed to draw consumers from the illicit market and into legal channels," Adam Greenblatt, Canopy's business development lead, told CNBC. "It's there to provide more variety and more of a value offering to ideally mature the market. Low-cost cannabis attracts bulk purchasers, people on the illicit side who would buy their cannabis by the ounce. People who buy cannabis by the ounce have been toughest to convert."Aurora announced in a company conference call last month the demand for cheap weed was jumping higher and higher. The market share for cheap weed--qualified as less than CA$9, or $6.79 USD--had risen from 2% last summer to about 17% now. Aurora will soon release its "Daily Special" value brand, sold in three size topping out at 15 grams. Meanwhile, Tilray will introduce "The Batch," which will alos be sold in three sizes, with a maximum of 7 grams."The Batch is a new no-frills cannabis brand focused on delivering quality cannabis flower and pre-rolls at competitive prices," Tilray's Chief Marketing Officer Adine Fabiani-Carter told CNBC. "We expect our new product format and offerings to increase revenue and profitability over the long term."The market has spoken and what it wants is cheap marijuana. Canadian retailers have finally figured out they should be the ones giving it to them.Photo by RichVintage/Getty ImagesSee more from Benzinga * Not All CBD Is Created Equal: Here's Which One's Good For Seizures And Which One Is Not * Biden, Bloomberg, Gabbard, Sanders, Trump And Warren: Where Do Candidates Stand On Cannabis? * Clean At Sephora: A Program That Ensures Your CBD Products Are Safe And Clear Of Bad Ingredients(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.