|Bid||1.6600 x 47300|
|Ask||1.6700 x 40700|
|Day's Range||1.6200 - 1.7000|
|52 Week Range||1.4300 - 10.3200|
|Beta (5Y Monthly)||1.52|
|PE Ratio (TTM)||7.73|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
CALGARY , Feb. 21, 2020 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that it has closed the acquisition of a retail cannabis store (the "Transaction") currently operating in Tisdale, Saskatchewan (the "Tisdale Store") as licensed by the Saskatchewan Liquor and Gaming Authority (the "SLGA"). The consideration paid to acquire the Tisdale Store was $200,000 in cash, $500,000 in the form of a promissory note due six months from the time of closing of the Transaction and 5,000,000 of common shares of the Company.
Since peaking in just short of a year ago, most cannabis stocks seen nothing but red. Aurora Cannabis (NYSE:ACB) stock features in the list of worst performers. Shares currently trade at $1.68, down 83% from a 52-week high of $10.32 in mid-March 2019. While a short-term technical bounce is likely from oversold levels, I remain bearish on Aurora stock.Source: Shutterstock Before talking about some key points in Q2 2020 results and other reasons to remain bearish, the following point is worth noting -- Aurora Cannabis expects the total size of the cannabis industry at $200 billion. The company has an annual production capacity of 150,000 kg and is operational in more than 20 countries.These numbers seem big, but the stock has crumbled. So it's important to understand the reason for this divergence.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMy view is as follows: The marijuana industry is still at an early stage of growth and the inflection point is still years away. For cannabis companies and investors, this reality is gradually sinking-in.Aurora Cannabis is likely to see years of cash burn through investment in medical research and significant marketing expenses. The same holds true for other cannabis companies.The coming quarters and years will not decide the market leader. It will decide on the companies that eventually survive. For Aurora Cannabis, deciding to eliminate 17% to 18% of its workforce is a survival decision. * 7 Exciting Stocks to Buy for Aggressive Investors More such decisions are expected in the coming quarters that target to arrest cash burn. A very likely step is to focus on few countries than target multiple regions as it increases the cost. Important Observations From Q2 2020 ResultsAurora Cannabis recently announced Q2 2020 results and there are multiple points that back a bearish view on the stock.For Q2 2020, Aurora reported revenue of 56 million CAD ($42.2 million), which was just 3.4% higher than Q2 2019. Further, EBITDA level loss was 80.2 million CAD for Q2 2020 as compared to 44.7 million CAD for Q2 2019.Even with operational presence in multiple markets, top-line growth is disappointing. To add to the woes, cash burn has accelerated.For the first half of 2020, Aurora reported cash used in operations of 229.6 million CAD as compared to cash used of 132.9 million CAD in the comparable period for 2019.With a cash buffer of just 156.3 million CAD, Aurora Cannabis will soon require funding. Therefore, more dilution of equity is coming in 2020.While I am making a year-on-year comparison, it is worth noting that revenue for Q2 2020 declined by 26% from Q1 2020. For high growth industries, sequential revenue decline is a disappointment and underscores my view that inflection point is still years away.Furthermore, medicinal cannabis and consumer cannabis net revenue also saw a sequential declined in Q2 2020. Aurora has been talking about the launch of Cannabis 2.0 products, with 23 SKUs -- including vapes, concentrates, gummies, chocolates, baked goods and mints -- introduced in December 2019. The coming quarterly results will be critical as it will provide insights on the impact of new product launch. * 7 'Strong Buy' Stocks With Over 50% Upside Potential Even in the medicinal cannabis segment, growth is years away. Aurora is doing the right thing by focusing on clinical research. The research areas include pain, epilepsy, anxiety, cancer, and neuro-degeneration, among others. Only when clinical research establishes the benefits and the FDA gives an approval, will Aurora see growth in medicinal cannabis. Last Word on Aurora StockIn the coming quarters, Aurora Cannabis is likely to be a leaner organization with a relatively conservative growth strategy. This will help in conserving cash for an extended period of slow growth.According to the U.S. National Institute of Drug Abuse, cannabis has several negative effects on health. Just as an example, brain development and memory is effected. These observations can translate into a regulatory headwind for recreational cannabis in the long-term.Overall, there are multiple challenges to navigate and that makes Aurora stock unattractive even after a sharp decline. There can be short-term trading opportunities from oversold levels, but ACB shares are far from being a core portfolio holding.Faisal Humayun is senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Failing Tech Stocks to Disconnect From Now * 5 Ideal Dividend Stocks for New Investors * 4 Stocks to Buy No Matter Who Wins the 2020 Election The post Even Under $2, Aurora Stock Remains Unattractive appeared first on InvestorPlace.
Tim Seymour, CIO of Seymour Asset Management and co-host of CNBC's "Fast Money," joined Benzinga’s PreMarket Prep on Thursday , ahead of his appearance at the Cannabis Capital Conference Feb. ...
Canopy Growth Corp.’s U.S.-listed shares rose Monday, extending gains made Friday after the Canadian cannabis company surprised investors with better-than-expected earnings.
The latest earnings report of Aurora Cannabis (ACB) came in as expected, with results confirming a weak quarter for the company.While the worst appears to be over, a major problem is the lack of clarity in Canada especially, concerning what the actual demand for cannabis is.In this article we'll examine why this will keep the future outlook of Aurora Cannabis and its Canadian peers in the dark, and what it means to long-term investors.Lack of demand discoveryAnyone that understands why socialism never has worked, knows that the primary reason is the resultant lack of price discovery. Without that, economies aren't able to operate in an efficient manner.Something similar is happening in the Canadian cannabis market in regard to demand discovery. What I mean by that is the horrifically slow licensing process that has failed to come close to meeting Canadian demand, has left a vacuum in regard to demand discovery that will take as long as two years to be solved.By demand discovery I mean the lack of retail outlets that give investors an idea of what the actual demand for marijuana in Canada is. There are thoughts and projections in that regard, but that is only guessing at this time because of the inability of producers to sell at meaningful levels into the large provinces of Ontario and Quebec, which together represent over 22 million people as of 2019.Until that changes, it's only guesswork as to the potential demand residing in those two large provinces. It can't be projected based upon sales in the smaller provinces because some of them generate a lot more sales per population than the others do.How long will it take?How long will it take to achieve Canadian demand discovery? It depends on the commitment of the two provinces, and if they can perform better at streamlining the process.In the case of Quebec, it has stated in the past it isn't in a hurry to roll out new stores. That doesn't mean they won't improve on its lack of urgency, only that it appears it won't accelerate the process because of market pressure.I think that could change, but there's no doubt of the two, Ontario has a much higher sense of urgency than Quebec has, and that's good for Aurora Cannabis, and the remainder of its peers based in Canada.It looks like Ontario, once it starts expediting the licensing process, will continue to do so until the province has enough cannabis retail outlets to meet market demand. There's a long way to go before it reaches that permeation level.Consensus VerdictMost of Wall Street is surveying the embattled cannabis giant from the sidelines, with TipRanks analytics demonstrating ACB as a Hold. Based on 15 analysts polled in the last 3 months, 2 are bullish on the stock, 10 are sidelined, while 3 are bearish. However, the 12-month average price target stands at C$3.05, marking a nearly 40% upside from where the stock is currently trading. (See Aurora stock analysis on TipRanks)ConclusionAurora Cannabis will continue to struggle until 100s of more Canadian stores are opened for business. The last eight months of 2020 are important in that regard because it doesn't look like things will pick up for the licensing process until April 2020.Once that kicks into gear though, it should give a much clearer picture of what Canadian demand really is. In this case, because of it being in Ontario, and secondarily Quebec, we can get a clearer idea of what demand will be after several quarters of these new stores being opened.That points to the latter part of 2020, or the first half of 2021.As this happens, Aurora Cannabis will be given a chance to sell into, not only a larger retail market as measured by the number of retail outlets that are operational, but also presumable sell a significant amount of derivatives that command higher prices and wider margins.Once demand discover for the Canadian cannabis market is visible, we can then look at how Aurora Cannabis can grow under that specific sector environment. We'll also be able to see what its potential growth trajectory is as this unfolds.Again, for now this is all guesswork, but within a year or a little longer, these demand issues should be result in relationship to visibility, and assuming the provinces come through with 100s of more stores in the first half of 2021, we'll know what the real potential of the legal market is in Canada, and how much market share Aurora can take against its legal and illegal competitors.Last, on the illegal side of the business, we should see that start to shrink as customers are provided more retail options to buy in, especially new customers that I think are waiting and willing to give legal cannabis a try.All of this should benefit Aurora Cannabis. We'll have to wait to see to what degree by probably another twelve to eighteen months.In the near term, I think Aurora could start to press toward the C$2.00 per share mark, unless there is a negative catalyst that emerges.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.
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.
/R E P E A T -- High Tide Announces Agreement to Sell KushBar Assets to Halo Labs for $12 Million/
British Columbia Investment Management, which manages the province’s public assets, dramatically increased its holdings in those stocks in the last quarter of 2019.
A strong week for cannabis closed with surprising quarterly results from Canopy Growth Corporation (NYSE: CGC ) (TSX: WEED) Friday, with fiscal third-quarter net revenue of CA$123.8 million ($93.5 million), ...
The largest Canadian marijuana companies have less than a year’s worth of cash left on average, according to a new study.
Canopy Growth stock roared higher Friday and sparked a broad rally among cannabis stocks, after a better-than-expected earnings report bolstered sentiment on the beaten-down sector.
Canopy Growth Corp. reported earnings early Friday that gave investors a few reasons to cheer: In short, it wasn’t a total disaster.
Despite all of the promises for the Canadian cannabis space entering 2020, Aurora Cannabis (ACB) reported one of the worst quarters in the space and the lack of financial discipline has to question where the reorganization will work until new executive leadership joins the company.EBITDA Loss DoublesThe most alarming number reported for the December quarter was the doubling of the adjusted EBITDA loss. Companies can’t always control revenues, especially in an emerging market with volatile regulations, but any particular company can control expenses.Aurora Cannabis reported a C$80 million EBITDA loss in the quarter, up from $40 million in the prior quarter. The main culprit was operating expenses surging C$20 million sequentially to over C$106 million.In no logical way should the company have ramped expenses knowing that Cannabis 2.0 products were set to disappoint. The vape health issue was a big concern in North America and the lack of retail stores in both Ontario and Quebec was logically going to restrict any major revenue boost from these products, yet Aurora Cannabis spent wildly.Too Many Questions RemainInvestors really have to ponder how Aurora Cannabis is going to cut operating expenses to only C$40 million to C$45 million per quarter. The company is forecasting a cut of above C$60 million from the December quarter levels, but the discussion centered on only eliminating 500 corporate positions.For FQ2, Aurora Cannabis spent C$71 million alone on general and administration expenses. The company has to eliminate over C$26 million from this category alone while completely wiping out sales and marketing and research and development.The numbers don’t logically add up to how a company can cut 60% of operating expenses and still maintain the existing revenue levels. Aurora Cannabis still forecasts FQ3 revenues staying generally flat with the C$63 million net cannabis revenues in the last quarter.So many moving parts aren’t supportive of the company maintaining the existing revenue base. Investors need to remember the existing interim CEO and CFO were executives in charge during the disastrous 2019 year. The company just announced a shift to higher THC products and the introduction of a value brand called Daily Specials. In both cases, investors have to question whether the company is skating towards the market or whether the market will again shift on this executive team.The large cannabis company burned C$276 million in cash during the quarter. Both the C$135 million burned on operations and the C$131 million burned on investing activities during the quarter were appalling. The company has far too many questions on liquidity and a lack of financial discipline to warrant an investment here.Consensus VerdictThe market’s current view on ACB is a mixed bag, indicating uncertainty as to its prospects. The stock has a Hold analyst consensus rating with only 3 recent "buy" ratings. This is versus 10 "hold" and 4 "sell" ratings. However, the $2.41 average price target suggests an upside potential of nearly 50% from the current share price. (See Aurora Cannabis stock analysis on TipRanks)TakeawayThe key investor takeaway is that Aurora Cannabis has a Canadian market with a lot of positive catalysts to play out in 2020, but the company lacks the financial discipline for an investment. The stock trades at $1.50 for a reason and the lack of new executive leadership makes Aurora Cannabis too big of a gamble to buy on any weakness. Investors should prepare for the company to struggle with the massive cuts to the operations spilling over into weak revenues.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.Disclosure: No position.
Canopy Growth's new CEO David Klein delivered first quarter results that topped expectations across the board as shares popped 15%.
Canopy Growth, Canada's most valuable pot company, crushed fiscal Q3 views Friday. Canopy Growth led a rally in marijuana stocks.
U.S.-listed shares of Canadian cannabis companies rallied in premarket trade Friday, after a better-than-expected earnings report from market leader Canopy Growth Corp. bolstered hopes for the beaten-down sector. Canopy reported a narrower-than-expected fiscal third-quarter loss and revenue that rose above forecasts, amid strength in business-to-consumer sales. The report comes a day after Aurora Cannabis reported a more than C$1 billion loss for its latest quarter. MKM analyst Bill Kirk said Canopy's report was a beacon of hope for the sector and should boost sentiment. "We had expected only small improvements from the prior quarter, but Canopy is showing a meaningful progression," Kirk wrote in a note to clients. Still, the path to profitability remains unclear and Kirk is waiting for the earnings call for details on Cannabis 2.0, the second phase of Canadian legalization that allows derivatives, including edibles and beverages. "We doubt early 2.0 sales will be a significant contributor given the lack of activity observed at production facilities two weeks before 2.0 legalization," he wrote. "We continue to rate WEED shares Neutral." Canopy's U.S.-listed shares rose 18% premarket. Aurora was up 7%, Cronos rose 6%, Tilray was up 7%, Aphria was up 8% and Organigram was up 6%. The ETFMG Alternative Harvest ETF has fallen 54% in the last 12 months, while the S&P 500 has gained 23%.
Cannabis companies in Canada have long promised “super premium” products, some going as far as predicting demand for $100 grams of the plant. Canadian consumers are heading the other way, however, as Aurora Cannabis Inc. (ACB)(CA:ACB) outlined Thursday in an earnings report that revealed quarterly losses of more than C$1 billion. Aurora focused on high-grade cannabis at its Whistler facility and in specific brands under Chief Executive Terry Booth and former Chief Corporate Officer Cam Battley.
Aurora Cannabis Inc. shares rose Thursday, after the company posted a set of earnings that were mostly expected, after the company last week unveiled a major overhaul of its operations.
As the vast majority of marijuana stocks have tumbled over the last 11 months, even most bulls have given up on many of the names, including Hexo (NYSE:HEXO), Tilray (NASDAQ:TLRY), and Aurora Cannabis (NYSE:ACB). But the bulls have still been extremely upbeat on Aphria (NYSE:APHA), but it's hard to say why people still like Aphria stock.They tout the company's high exposure to markets outside of Canada, its high production capacity, its large cash reserves, and the strong experience of its CEO, Irwin Simon, who founded successful organic food maker Hain Celestial (NASDAQ:HAIN) and served as its CEO for many years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost of all, the bulls love the fact that Aphria, unlike any of its peers, managed to eke out a small quarterly profit, Actually, it managed to eke out two consecutive quarters of small quarterly profits in 2019.But the company's fiscal second-quarter results and guidance, reported on Jan. 14, were not nearly as impressive. They indicate that, despite Aphria's many advantages, its profitability is waning while its growth isn't that impressive in light of its high valuation. Investors appear to recognize that reality, as Aphria stock has lost 19% of its value in the last month and is down nearly 35% over the last year. Analyzing Aphria's ResultsIn the company's fiscal second-quarter (which ended in November) its net revenue fell to CAD$120.6 million from CAD$126.1 million in Q1. * 20 Stocks to Buy From the Law of Accelerating Returns Moreover, Aphria's distribution revenue dropped to CAD$86.4 million from CAD$95.3 million, and the company's bottom line swung to a loss of CAD$7.9 million in Q2, versus a profit of CAD$16.4 million in Q1. Even more discouragingly, Aphria's gross profit dropped toCAD$ 39.589 million in Q2 from CAD$45.42 million in Q1.The gross profit decline suggests that falling demand and/or lower prices, not increased spending on items like R&D or marketing, caused the quarter-over-quarter decline of the company's bottom line.Spending more money on R&D, sales, and marketing can boost companies' results over the longer run. Moreover, companies that are benefiting from high revenue and gross profit increases can raise their spending on R&D, sales, and marketing and still raise their bottom-line profits.But when demand for a company's products is dropping or its average prices are falling, causing its gross profit to decline, it will have a very hard time increasing its bottom line. As a result, Aphria probably won't report another quarterly bottom-line profit for some time.Given Aphria's lackluster Q2 results, it's not surprising that its 2020 guidance was not very impressive. The midpoint of the company's 2020 revenue guidance range was CAD$600 million, down from CAD$675 million in October. And its revenue in the first half of its fiscal year was CAD$246 million.So it now expects its revenue in the second half of the year to be CAD$354 million, or 44% above its first-half total. With Aphria stock still trading at a very high price-sales ratio of nine, a 44% increase isn't very impressive. The Implications of Aphria's GuidanceThe company's guidance suggests that the exponential jump in cannabis companies' financial results that bulls had expected to see from the legalization of cannabis-infused food and drinks in Canada isn't going to materialize in the first half of calendar 2020.Additionally, the reduction of its revenue guidance indicates that it doesn't expect the opening of more stores in Ontario to help its business as much as marijuana stock bulls had hoped. The Bottom Line on Aphria StockThe decline of Aphria's gross profits last quarter indicates that demand for its products is weakening and that its profitability is likely to fall for the foreseeable future. Moreover, its revenue guidance suggests that its shares are overvalued and that the positive catalysts which have been touted by bulls aren't as strong as they think.As I explained in my recent column about Aurora Cannabis, I believe that companies that are providing cannabis to the general public have two fundamental problems.First, cannabis remains socially unacceptable in many situations, making those who believe in following society's rules and norms unlikely to use it much, if at all.Second, most of those who are less compliant with rules and norms will buy cannabis from unauthorized dealers who sell it much more cheaply than legal stores and dispensaries. Aphria's results and guidance indicate that the same situation exists in countries other than Canada.As of this writing, the author did not own shares of any of the aforementioned companies. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Aphria Stock Isn't Profitable Enough to Be Worth the Risk appeared first on InvestorPlace.
Aurora Cannabis reported lower revenue and deepening losses, a week after announcing its CEO's departure, layoffs and steep write-downs.