|Bid||0.00 x 40700|
|Ask||9.08 x 36900|
|Day's Range||9.00 - 9.22|
|52 Week Range||4.05 - 12.52|
|Beta (3Y Monthly)||2.80|
|PE Ratio (TTM)||41.94|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
In the latest trading session, Aurora Cannabis Inc. (ACB) closed at $9.05, marking a -1.95% move from the previous day.
After looking like they were set to break down, shares of Canopy Growth (NYSE:CGC) have been surging over the past few trading sessions. As such, CGC stock is up almost 20% over the past five days and on the cusp of breakout territory, with higher prices on many bulls' radar.Source: Shutterstock What so suddenly has CGC stock back in investors' good graces? To be fair, the company didn't really do anything to fall out of their good graces. Rather, it was simply the fading momentum of marijuana stocks at the time.However, momentum was restored in Canopy Growth stock once reports began circulating about its intention to purchase Acreage Holdings (OTCMKTS:ACRGF). The deal is for $300 million in cash and swelled to $3.4 billion once Canopy included 0.58 shares for each subordinate voting share of ACRGF.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Digital Ad Stocks That Deserve Your Attention Right Now Investors are viewing the deal favorably as Acreage Holdings has exposure in 20 different U.S. states. In other words, it's Canopy's way of pushing into the U.S. This comes as it focuses on its future and growing its market share. At the end of the day, market share is a very important component to the cannabis industry. That's one reason why Canopy is considered the leader of this group. Trading CGC StockThe charts for CGC stock look a little busy here, but each level is relevant. The recent action has shown a return of momentum to Canopy Growth stock, but also names like Aurora Cannabis (NYSE:ACB) and Cronos Group (NASDAQ:CRON), among others. It's even given a boost to names like Constellation Brands (NYSE:STZ), which has a near-40% stakes in CGC.That momentum has carried CGC stock into a potentially large breakout area over $48. Where can it go? One analyst says Canopy could run to $72, implying about 90% upside from current levels. Can it actually get there?$48 is the first key test. In the last three trading sessions, CGC stock reclaimed its 20-day and 50-day moving averages as well as prior uptrend support (blue line No. 1). It also cleared prior downtrend resistance (blue line No. 2) and key resistance at $48. Now hovering near $48.25, it's important that CGC stock doesn't give up these recent gains.Whether it can burst through its prior highs near $59 and run to $72 is currently unknown. But if it wants any shot at doing even that, it needs to hold over some of these key levels that it just cleared.Here's what to watch: $48 and prior downtrend resistance (blue line No. 2). According to the RSI, CGC stock is not overbought even after its strong rally over the past few days. According to its MACD reading, momentum is returning to the bulls' favor and could have a lot of upside going forward. Ideally we would see a continuation higher or consolidation near current levels, before a pullback to $48 that holds as support.If $48 soon acts as resistance, bulls need to see the backside of prior downtrend resistance act as support. Bottom Line on Canopy Growth StockIf investors feel that there is momentum in cannabis stocks, then CGC stock is certainly one of the top considerations to ride that wave. In the end though, this is a speculative group and investors have to remember that going forward. This isn't some blue chip stock with a reasonable valuation and strong cash flows.Last quarter (Q3, fiscal 2019), the company had $60.8 million in revenue. That's roughly the same total as it did for all of fiscal 2018. Clearly the growth is very impressive, but we're talking about a company that has consensus expectations for $176 million in sales this year vs. a market cap of more than $16 billion.Granted, estimates call for more than $600 million in sales in fiscal 2020 (which starts in one quarter), but this is still a lofty valuation. That's why M&A deals (such as with Constellation) are so important. It puts billions of dollars into Canopy's coffers, allowing it run its operations and make deals like it did for ARCGF. * 10 High-Yielding Dividend Stocks That Won't Wilt It's a speculative group, but Canopy is among the best in the business.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 * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post Is Canopy Growth Stock Set to Break Out and Rally 90%? appeared first on InvestorPlace.
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.
Canopy Growth's (CGC) announced intention to purchase Acreage Holdings dominated headlines last week. In fact, it dominated headlines so much that many investors may have missed the note that Cowen's Vivien Azer put regarding Canopy competitor Aurora Cannabis (ACB).That would be a crying shame -- because in Azer's estimation, there may actually be more reasons to buy Aurora Cannabis stock, than Canopy.Let's run down the list.A race to scaleFor all that investors have been fascinated by the growth of the marijuana industry for the past several years, the fact remains: This is still a very young industry, and in young industries like this one, the first challenge is generally to scale up quickly, grab market share, drive out competition -- so that by the time the industry matures, they'll be able to keep more profits for themselves.Aurora Cannabis aims to win this race.Already, Aurora says it's ahead of its targeted annual rate of 120,000 kilograms of annual marijuana production capacity for this time, this year. Annualized, management says it's now producing at something more like a 150,000 kg-per-year rate.150,000 kg -- and growing. As Azer reports, Aurora is expanding square footage at its Aurora Sun facility to 1.6 mm square feet so as to add 230,000 kg in annual capacity. Production rates at the Aurora Sky facility are also on the upswing, and in consequence, Aurora management says it is raising its targeted production capacity by 25%, from 500,000 kg to 625,000 kg annual production -- a goal it hopes to reach by mid-2020.To put that in perspective, Canopy Growth says it is looking to produce only 400,000 kg by mid-next year -- less than two-thirds of Aurora's target -- albeit Azer notes that Canopy's target may be "conservative."Cost cutsWhy expand production capacity so much? To create greater supply, of course, to serve the market -- but also to win production efficiencies derived from scale. Aurora Cannabis believes that once it reaches its targeted level of production, it should be able to cut cash costs nearly in half, from about C$1.92 per gram of marijuana produced currently to under C$1 per gram.MarginsGross margins equaling sales minus the cost of the goods sold, such cost cuts should be very good news for Aurora Cannabis' profit margins.Already, Azer says Aurora boasts 61% trailing gross margins, or twice the 29% margins that Canopy produced over the last 12 months -- and Aurora's margins have exceeded 50% for the past eight straight quarters. With lower costs, the analyst estimates Aurora could grow its gross margin to as much as 70%, the best rate in the industry.What to expect on earningsGranted, Aurora's net margins remain negative, but perhaps not for long. Most analysts expect Aurora to turn profitable as early as next year. As for this year, Aurora expects to have 25,000 kg of cannabis produced, packaged, and ready for sale in fiscal Q4 (ending in June). Azer says its own "conservative" estimate is that Aurora won't sell more than 16,000 kg this quarter -- but will be happy to be proven wrong, as this would mean only "upside to our forecasts."For an analyst that rates Aurora Cannabis "outperform," that's a good thing.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on ACB: * How Aurora Cannabis (ACB) Stock Gets to $11 * Aurora Cannabis (ACB) Stock Is in Position for Another Bullish Leg * Aurora Cannabis: Flooding the Cannabis Market with More Supply More recent articles from Smarter Analyst: * With Two Days to Go Before Amazon (AMZN) Earnings, this Top Analyst Weighs in on the Stock * Should You Count on Facebook (FB) Earnings to Push the Stock Higher? Top Analyst Weighs In * Tesla (TSLA) Stock Logs Another Sell Rating; Here's Why * Canntrust (CTST) Transforms from a Small Cannabis Stock Pony into a Unicorn
Cannabis stocks were mostly lower Tuesday, as investors took a breather after Monday’s gains to lock in profits and await the next developments in the sector.
In 2019, investors have been looking for stocks to buy -- not stocks to sell. A broad market selloff toward the end of last year admittedly created some bargains. Key sectors like energy, semiconductors and software offered their share of bargains.This year obviously has been very different. The S&P 500 has gained 16%, and the gains have been spread across the entire U.S. equity market. Among stocks with a market capitalization over $300 million, just 559 -- or 16% -- are down year-to-date. A greater number of those stocks -- 771 -- have gained at least 30%.In that group are some stocks that simply became too cheap amid the fourth quarter plunge. Others have soared thanks to strong performance. But there are more than a few that seem to be benefiting from market optimism -- and not performing nearly as well as their share prices would suggest.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 High-Yielding Dividend Stocks That Won't Wilt These 10 stocks all fit that bill. All have gained at least 30% so far this year, yet for various reasons, seem like stocks to sell at the moment. And when the current market strength inevitably starts to fade, these 10 stocks may be the first to fall. Shopify (SHOP)Source: Shopify via FlickrFew stocks reflect the reversal in market sentiment more than e-commerce platform Shopify (NYSE:SHOP). In late December, SHOP stock touched a nine-month low after losing 25% of its market value in just seven sessions. Since then, however, SHOP has gained nearly 90%, adding some $11 billion in market value in the process.And yet, as I wrote earlier this month, the news surrounding Shopify stock really hasn't been that good. 2019 guidance was seen as modestly disappointing. Competition from Facebook (NASDAQ:FB), Square (NYSE:SQ), and privately held Mailchimp seems to be intensifying.Analysts haven't even been able to keep up: the average price target of $189 suggests 16% downside. Yet SHOP keeps marching higher.There is a bull case here, admittedly, and a valuable business. But at 20x+ revenue and 250x 2020 EPS estimates, perfection looks priced in - and then some. I'd call it a stock to sell. Aurora Cannabis (ACB)Source: Shutterstock Marijuana stocks like Aurora Cannabis (NYSE:ACB) similarly have benefited from the stronger market, and the return of the 'risk-on' trade. ACB stock has gained 86% in 2019. Canopy Growth (NYSE:CGC) is up 80%, and Cronos Group (NASDAQ:CRON) 62%. Only Tilray (NASDAQ:TLRY) has been left out.The gains across the board seem a bit much. Marijuana companies obviously have an enormous opportunity; but there's a long road ahead. Valuations are getting stretched again. Aurora's aggressive strategy is high-risk (if admittedly high-reward), and the steady issuance of stock and debt only adds to that risk. * 7 Small-Cap Growth ETFs For Adventurous Investors To be sure, ACB has promise, as does the sector. But the worry with Aurora Cannabis isn't so much that the company is going to blow up -- or even disappoint -- but rather that the pot industry on the whole is getting overvalued. And with ACB one of the biggest gainers on the way up, it could be one of the larger losers on the way down. Snap (SNAP)Source: Shutterstock Among stocks with a market capitalization above $10 billion, no stock has done better than Snap (NYSE:SNAP) in 2019. It's not even close: SNAP stock has risen 110%, thirty points better than second-place CGC.As I wrote this month, the optimism makes some sense. Execution looks better, and Snap has years of benefits ahead simply from better monetizing its existing users.At the same time, however, the 100%+ gains make SNAP stock look awfully stretched. And the existing user base simply isn't enough -- even if revenue per user continues to rise. This remains a significantly unprofitable company valued at $15 billion. Certainly, there's no shortage of those types of stocks to sell in this market -- but there aren't any others that have doubled in less than four months. Carvana (CVNA)Source: Carvana Used-car retailer Carvana (NYSE:CVNA) has become one of the bigger battleground stocks in the market. The company's online model threatens to disrupt the entire industry, which has brought buyers into CVNA stock. Indeed, Josh Enomoto this month called CVNA one of the 7 best long-term stocks to buy and hold, not long after Luce Emerson detailed the bull case on this site.And there is an intriguing aspect to Carvana's model. But there are also a lot of losses: EBITDA margin for 2018 was negative 10%, with guidance for -3.5% to -5.5% in 2019. Even long-term targets of 8-13.5% suggest only modest profitability.As a result, CVNA might have its share of bulls, but it also has a heavy short interest. Some 56% of the admittedly thin float is sold short. Those shorts have been squeezed so far this year, likely contributing to the 100% gains in Carvana shares so far this year. But shorts make some good points: most notably that Carvana may be trying to take share in what is likely to be a declining market going forward. * 7 Digital Ad Stocks That Deserve Your Attention Right Now Meanwhile, CVNA may be one of the best performers in 2019 -- but it was one of the worst performers at the end of last year, losing more than half its value in a matter of months. If the market stumbles at all, Carvana stock probably takes a tumble. 10 Soaring Stocks to Sell: Wayfair (W)Source: Shutterstock There's an interesting parallel between Carvana and online furniture retailer Wayfair (NYSE:W). Both companies are trying to disrupt industries based on in-person selling through online-focused models. Neither company is profitable. Shorts are targeting both stocks, arguing that growth is being bought through below-market pricing that simply isn't sustainable.And both stocks have soared in 2019 after falling quickly last year. W stock hasn't quite matched that of its automotive peer, but it's gained a handsome 64% so far this year.Here, too, the gains look like too much. Given how cyclical the furniture industry is, investors truly have to trust the economy to assume that growth will continue. (That's true for Carvana as well, by the way.) And in year ten of an economic expansion, that seems dangerous. Cyclical stocks in the rest of the market are being valued as if earnings are near a peak. What does that mean for a cyclical company with no earnings at all? Conagra Brands (CAG)Source: Shutterstock Four months ago, Conagra Brands (NYSE:CAG) seemed to be in disarray. Investors were fleeing CAG stock, which hit a six-year low in late December. A cut to 2019 guidance raised questions about growth, and even Conagra's ability to service debt raised in its acquisition of Pinnacle Foods.Sentiment toward the CPG (consumer packaged goods) sector didn't help. The plunge at industry leader Kraft Heinz (NASDAQ:KHC) cast a shadow over the entire industry. Consumer tastes simply seemed to be moving away from companies like Conagra and Kraft Heinz.That sentiment seems to have reversed -- at least in the case of Conagra. CAG stock has gained 44% so far this year. (KHC stock continues to fall, however.) A strong Q3 earnings report certainly helped the cause. But the broader worries here hardly seem assuaged. Grocery store customers like Kroger (NYSE:KR) still are struggling, and still trying to push private-label items in a bid to protect margins. Brands like Chef Boyardee, frozen dinner nameplate Marie Callender's, and Slim Jim don't seem likely to drive much growth, particularly among millennials. * 7 Strong Buy Stocks the Street Loves And while investors cheered Q3 results, Conagra cut full-year organic sales growth guidance to just 1%. That's simply not enough to drive profit growth -- or to support even a seemingly modest 15x P/E multiple. Unless that growth improves, at some point the fears that dogged CAG just a few months ago are likely to return. Anheuser-Busch InBev (BUD)Source: Paul Sableman via FlickrKHC and CAG weren't the only consumer stocks to plunge in 2018. Anheuser-Busch InBev (NYSE:BUD) stock fell 39% in 2018. Slowing growth, debt worries, and a halved dividend drove the selling pressure.Here too, a decent but not spectacular earnings report has helped the cause. BUD has bounced sharply in 2019, rising 36%. But the gains seem like far too much. The problems dogging the stock haven't gone anywhere. Beer demand could take a hit from cannabis legalization. Sales already are slowing: shares of other beer plays like Boston Beer (NYSE:SAM) and Constellation Brands (NYSE:STZ,STZ.B) have struggled as a result. And Anheuser-Busch's debt load, even with the dividend cut, remains a concern.There is a case that BUD fell too far toward the end of 2018. This remains a global company with hugely valuable brands. But even if BUD was too cheap at the end of 2018, the current price suggests investors have forgotten why the sell-off even happened. Apple (AAPL)Source: Apple In the near term, Apple (NASDAQ:AAPL) still may have more room to run. The stock still sits 12% off all-time highs reached in October. AAPL stock only has a few points to go to return to the $1 trillion market capitalization it first reached in August. The company still has a huge cash hoard for buybacks, and a 16x forward P/E multiple hardly seems aggressive.That said, there are multiple concerns here. For all the hype about the services business, the iPhone still drives over 60% of sales, and it's headed in the wrong direction. Replacement cycles are lengthening, pricing is probably maxed out, and the company still has a problem in China. The recent settlement with Qualcomm (NASDAQ:QCOM) doesn't help the cause, either. * Why These Are the Top 2 Pot Stocks to Buy Right Now This still seems like a company whose earnings likely have peaked, and that suggests AAPL stock could be, and should be, cheaper. Indeed, that's how investors saw it just a few months ago -- and while AAPL stock has gained 30% this year, it's hard to see what has changed their mind so quickly. Under Armour (UAA)Source: Shutterstock Back in December, Under Armour (NYSE:UA,UAA) announced five-year targets at its Investor Day. Investors clearly were disappointed: UAA stock plunged on the news.Under Armour stock now has gained 37% from December lows, and the obvious question is: why? Q4 earnings were in line. Guidance was within expectations. Commentary from retail partners about holiday sales hardly seemed particularly bullish for UAA. Nothing really has changed since December - except for the Under Armour share price.UAA now trades at 45x next year's earnings. Margins should expand, but they're thin to begin with. Revenue growth isn't good enough. And competition from Nike (NYSE:NKE) and adidas (OTCMKTS:ADDYY) isn't going anywhere.At this point, investors are valuing Under Armour as if management is being too pessimistic. There's very little in the company's operating history to suggest that will be the case. GoPro (GPRO)Source: GoPro Even with a pullback in recent sessions, GoPro (NASDAQ:GPRO) has gained 48% so far this year. Like so many stocks to sell on this list -- and in this market -- the gains are amplified by just far the stock had fallen. GPRO touched an all-time low in December.There is some hope for a turnaround, as I detailed last year. But I wrote this week that even some turnaround looks priced in. GoPro dominates its markets, which is a problem, because it can't take share. Cost-cutting has run its course. This looks like a company unlikely to grow earnings much, if at all -- yet it's again priced for growth. * 10 High-Yielding Dividend Stocks That Won't Wilt More broadly, this is a company that's disappointed before. But like so many stocks on this list, investors seem to be forgetting -- or ignoring -- the risks, and focusing only on the potential rewards. At this point, with GPRO stock, even those rewards don't seem likely to result in much more in the way of upside.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post 10 Stocks to Sell Before They Give Back 2019 Gains appeared first on InvestorPlace.
The global medical device space takes significant strides in terms of research and development (R&D) and regulatory progress in the first quarter.
CALGARY , April 23, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HTDEF) (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 approximately $441,000 in systemwide gross revenues ("Sales") from April 19th to 21st, 2019 , which is a 234% increase over the $132,000 reported for the same three-day period in 2018. This record result was generated from the Company's 13 Canna Cabana-branded stores including the two partnered Ontario locations in Hamilton and Sudbury that opened on April 20th , from its 13 Smoker's Corner locations across Canada , as well as from the Grasscity, Famous Brandz and Smoker's Corner e-commerce websites.
This marijuana stock has been initiated at, or downgraded to, the equivalent of a sell rating four times in less than two months.
CORAL GABLES, FL / ACCESSWIRE / April 22, 2019 / Investors should be paying close attention to the cannabis industry right now. Currently, recreational marijuana is now legal in 10 US states & medical marijuana is legal in 33 US States. Today we are highlighting: Canopy Growth Corporation (CGC) / (TSX:WEED.TO), Aphria Inc. (APHA), Aurora Cannabis Inc. (ACB), Leafbuyer Technologies, Inc. (LBUY).
Aurora Cannabis (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P) has signed a binding letter of intent with Hempco Food and Fiber (TSX-V: HEMP) to acquire all of the issued and outstanding common shares of Hempco. Under the deal, Aurora will pay C$1.04 per share, payable in common shares, totaling around C$63.4 million. Currently, Aurora owns about […]The post Aurora Cannabis Agrees to Acquire All Hempco Shares appeared first on Market Exclusive.
Ever since the cannabis craze hit Wall Street back in mid-2018, I've been pounding on the table saying that the best marijuana stock to buy in the group is Canopy Growth (NYSE:CGC). The logic is simple: In addition to being the biggest player in the industry, CGC stock has long had one thing that no other cannabis company has -- $4 billion in cash from Constellation Brands (NYSE:STZ).Source: Shutterstock That $4 billion gives Canopy unprecedented visibility into being one of the industry's long-term winners through early, aggressive, and large investments. As such, I have consistently reasoned that CGC stock belongs in every cannabis-related portfolio.This bull thesis got a big boost in mid-April. Canopy struck a deal with major U.S. cannabis operator Acreage to buy that company for $3.4 billion once cannabis is legalized nationwide in the U.S.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor those who don't follow this industry closely, that's a big deal. Canopy is the star player in the legal Canadian cannabis market. But the Canadian market is peanuts. The big deal here is the U.S. market. Depending on who you ask, that market is about tenfold the size of the Canadian market.Thus, the big question for Canopy and other Canadian pot stocks is whether or not these companies can replicate their success in the U.S. * 7 Strong Buy Stocks the Street Loves Canopy just answered that question in emphatic fashion, and the market is reacting favorably. CGC stock popped roughly 10% on the news.In the big picture, thanks to a $4 billion early investment from Constellation Brands, Canopy has given itself unprecedented visibility into being a long-term cannabis market leader. Right now, following the Acreage deal, that visibility is as strong as ever. Consequently, the long-term bull thesis for CGC is likewise as strong as ever. The Acreage Acquisition Is Big NewsThere's a reason CGC popped 10% in response to the company agreeing to acquire Acreage. In plain English, it positions the company to fully capitalize on the $100 billion U.S. cannabis market from the onset.First, some context. The whole Wall Street cannabis craze has been largely centered around one thing: the nationwide legalization of cannabis in Canada in late 2018. Roughly speaking, that single catalyst turned the big four Canadian pot stocks -- Canopy, Aurora (NYSE:ACB), Tilray (NASDAQ:TLRY) and Cronos (NASDAQ:CRON) -- from relatively unknown companies to Wall Street household names with multi-billion dollar market caps.But, while Canadian market legalization was the catalyst, it wasn't the prize. The prize here is the U.S. market, which most estimates put at a $100 billion opportunity, versus $10 billion in Canada. The consensus thesis is that, with cannabis fully legal throughout Canada and hemp legal throughout the U.S., it's only a matter of time before cannabis is fully legal across the entire U.S. The big question is whether or not Canadian cannabis giants like Canopy will be able to capitalize on the big U.S. opportunity when it comes knocking.Canopy just answered that question. By agreeing to acquire Acreage -- a major U.S. cannabis operator with dozens of dispensaries and cultivation sites across 20 states -- Canopy has positioned itself to capitalize on the $100 billion U.S. cannabis market opportunity from the onset. That is, as soon as cannabis is fully legal across the U.S., Canopy will be everywhere through Acreage -- and ready to dominate the U.S. market like it's dominated the Canadian market.That's a big deal. Indeed, it paves the path for CGC to head materially higher in a long-term window. Canopy Growth Stock Has Long-Term UpsideMy long-term bull thesis on Canopy Growth stock is that, if this company can successfully maintain its leadership position as the cannabis industry goes global and matures, then this is a $100 billion company in the making. With more visibility than ever to U.S. market domination, that long-term bull thesis looks about as good as ever.The details of my analysis behind the $100 billion number can be found here. But the short recap is pretty easy to understand. At scale, given current consumption trends, the recreational cannabis market could one day be as big as the alcoholic beverage and tobacco markets. What's more, if you consider the medical opportunity, then the aggregate global cannabis market will easily one day be as big as, if not bigger than, the alcoholic beverage and tobacco markets.The top dogs in those two industries have $100 billion-plus market caps. Witness Anheuser-Busch (NYSE:BUD) or Altira (NYSE:MO). Thus, it's only reasonable to assume that the top dogs in the global cannabis industry at scale will be $100 billion-plus companies too.Given its early leadership position, huge financial resources, aggressive management team, large growing capacity, and global distribution network, Canopy has all the tools necessary to turn into a top dog in the global cannabis industry in a decade. Now, Canopy also has visibility to be a top dog in the U.S. market. Thus, this company continues to take steps towards securing global leadership.So long as the company remains on that path, CGC stock will remain on an uptrend towards a $100 billion valuation. * 10 Dividend Growth Stocks You Can't Miss Bottom Line on CGC StockThere are a lot of pot stocks out there, but none of them have as much long-term visibility as Canopy Growth. Given this, if you're buying into the cannabis industry with a multi-year horizon, CGC stock is the best pick in the industry, without question.As of this writing, Luke Lango was long CGC and ACB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post This Is Why Canopy Growth Is the Best Pot Stock appeared first on InvestorPlace.
HENDERSON, NV / ACCESSWIRE / April 22, 2019 / Bank of America analyst, Christopher Carey, has begun coverage of the cannabis industry with a note Wednesday naming Hexo Corp. (HEXO) as the firm's top pick ...
EDMONTON , April 18, 2019 /CNW/ - Calling all Canadian budtenders! Aurora Cannabis is kicking off the search for Canada's Top Budmaster ™ through a national competition that will recognize cannabis professionals across the country who are guiding consumers as they navigate the new world of legal cannabis. Through a series of skills-based and knowledge-testing events, as well as through digital competitions, Canada's budtender community will be able to demonstrate their expertise in cultivar characteristics and histories, product categories and formats, exceptional customer service, and must also showcase how they contribute to the community and culture. As Canada's first legal 420 holiday approaches, it's time to recognize the women and men in cannabis retail stores who educate consumers every day.
CALGARY , April 22, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HTDEF) (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 first tranche of the sale of unsecured convertible debentures (the "Debentures") of the Company under the non-brokered private placement (the "Offering") previously announced on April 10, 2019 , with gross proceeds of $8,360,000 to date. High Tide intends to close a second and final tranche of the Offering for aggregate gross proceeds of up to $15,000,000 , which has been increased from the original amount of $10,000,000 due to strong investor demand. The outstanding principal amount under the Debentures is convertible at any time before maturity and at the option of the holder, into common shares of the Company (the "Shares") at a conversion price of $0.75 per Share.
One of the big themes in the cannabis sector in 2019 has been increased Wall Street coverage. Specifically, Wall Street firms were largely unwilling to cover cannabis stocks in 2018 given the industry's relative newness, rampant investor speculation and lack of fundamental tangibility. But, things have changed for marijuana stocks in 2019. The industry is less new. There's less speculation. The fundamentals have become significantly more tangible. As such, Wall Street firms have more broadly launched coverage on pot stocks in 2019.Source: Shutterstock One big firm that just initiated coverage on pot stocks is Bank of America. Their take? Of the Big Four pot stocks -- Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON) and Tilray (NASDAQ:TLRY) -- the only two worth buying right now are Canopy and Aurora.This isn't an isolated viewpoint. According to TipRanks data, 10 analysts cover CGC stock, while eight analysts cover ACB stock. Of those 18 ratings between CGC and ACB, none of them are Sell ratings. Instead, the consensus rating on CGC stock is "Moderate Buy" while on ACB stock, it's "Strong Buy."InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, a third of the nine analysts who cover CRON stock have a "Sell" rating on the shares. The consensus rating is a "Hold." Half of the 10 analysts that cover TLRY stock have a "Sell" rating on the name. The consensus rating on TLRY is a "Hold," too.In other words, the broad consensus among Wall Street firms is that when it comes to the cannabis space, investors should buy CGC and ACB, and forget about CRON and TLRY for the time being. I largely agree with consensus Wall Street view. Here's why. Why Buy CGC Stock?The plain answer here is you buy CGC stock because this company has the most visibility today among all pot stocks to one day transform into a long term market leader. * 7 High-Risk Stocks With Big Potential Rewards Canopy has everything you'd want in an early-stage leader in a big-growth market. Sales leadership? They dwarf everyone else in the space when it comes revenues. Growth? They are growing just about as fast as anyone in the space, despite a much bigger base. Production leadership? They sell far more kilograms of cannabis than anyone else, and have among the largest production footprints in the world. Market expansion? They are pushing aggressively into the U.S. hemp market. Confident leadership? CEO Bruce Linton just said that Canopy will generate over C$1 billion ($748 million) in sales over the next 12 months. Celebrity connections? They have ties with Seth Rogen, Snoop Dogg, and Martha Stewart.Above all else, though, Canopy has the financial resources and firepower to sustain and even grow its early lead. A few quarters ago, alcoholic beverage giant Constellation Brands (NYSE:STZ) poured $4 billion into Canopy. The company still has $3 billion of that left on the balance sheet. That's almost double what any of its competitors have in terms of cash on hand.While 2018 saw a blockbuster year (with nearly $14 billion raised) for cannabis investments, 2019 is on pace to blow past that total, according to cannabis research provider New Frontier Data. Click to EnlargeThus, Canopy has far more firepower than anyone else in this space to invest in growth opportunities, expand operations, expand production, acquire smaller players, so on and so forth. As such, the company does reasonably project as a long-term leader in the global cannabis market, and that's why buying CGC stock today makes sense. Why Buy ACB Stock?The plain answer here is you buy ACB stock because this is the cheapest pot stock in the group for reasons that are most likely temporary.On a pure valuation basis, ACB stock is as cheap as it gets in the cannabis space. Across every metric -- trailing sales, forward sales, market cap per kilogram, annualized revenue -- ACB stock is considerably cheaper than its peers. We are talking a 20%+ undervaluation gap. * 7 Stocks to Buy for Spring Season Growth This relative undervaluation has nothing to do with operating fundamentals. Aurora is big, with the second-largest sales base in the market behind Canopy. The company controls about 20% of the Canadian adult-use market. They also have tremendous production capacity (Aurora has 500,000 kilograms per year in funded capacity) and gross profit margins are among some of the healthiest in the business.Instead, the relative undervaluation in ACB stock has to do with balance sheet. Specifically, unlike peers Canopy and Cronos, Aurora hasn't scored a big investment from a consumer staples giant. Thus, the balance sheet isn't overflowing with billions of dollars to help fund growth. Instead, Aurora has just over $100 million in cash on hand.This won't last forever. Aurora is a big and leading company in the rapid growth cannabis space. The stock is also trading at a huge discount to peers. Thus, it truly is only a matter of time before some big consumer staples company pumps a billion bucks in here, or more. When that happens, the relative undervaluation gap will disappear, and ACB stock will rally in a big way. Bottom Line on CGC Stock and ACB StockThe cannabis sector reeks of long-term potential. But, a lot will happen between now, and when the market matures, and that means that investors need to choose wisely when investing in pot stocks this early in the game.Investment translation? Only buy CGC stock and ACB stock. There are very good reasons to own those two pot stocks here and now, and they should rally over the next several quarters.As of this writing, Luke Lango was long CGC and ACB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Why These Are the Top 2 Pot Stocks to Buy Right Now appeared first on InvestorPlace.
Pot stocks may have cooled off in recent months but the industry is still hot and Bank of America Merrill Lynch expects it to get hotter as it reaches maturity. "We expect all companies to deliver attractive growth over the next few years, reflecting a low base and strong demand in a newly created legal cannabis markets, namely Canada," Bank of America Merrill Lynch analyst Christopher Carey wrote in a note. Part of the reason for the industry's cool down in recent months is that the short-term growth story for many companies has gone up in smoke.
Canopy's $3.4 billion purchase of Acreage Holdings is unlike anything Wall Street or investors have ever seen.
Amy Margolis identified a problem in the burgeoning Oregon cannabis industry, so she set out to solve it. The problem? Despite the industry’s newness and the encouraging early statistics about gender equity, a glass ceiling has developed in the cannabis business.
Ah, the magic of analyst ratings! After a tough month in April, cannabis firm Hexo (NYSEAmerican:HEXO) suddenly reversed course after Bank of America analyst Christopher Carey initiated coverage. Sizing up the risk and reward profile, Carey assigned a "buy" rating on Hexo stock with a $10 price target.Source: Shutterstock The news couldn't have come at a better time. While cannabis stocks offer tremendous upside because they essentially materialize an industry that previously never existed, they're also incredibly volatile. Because this is an unprecedented sector, many investors are unsure how to approach a company like HEXO.As such, I mentioned earlier that I liked Hexo stock, even compared to relative heavyweight Aurora Cannabis (NYSE:ACB). Unfortunately, the aforementioned volatility in cannabis stocks disproportionately impacted HEXO, sending my recommendation toward a quick grave. But thanks to Carey, this bad boy gained nearly 12% on Wednesday.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Spring Season Growth Of course, by the time that you're reading this, this dramatic burst in Hexo stock is in the past. Do newcomers still have a chance in riding this promising, but wild bull? Underappreciated Elements Support Hexo StockThe best way I can characterize Hexo stock is as a diamond in the rough. I believe the organization has the right components in place to make a solid run. However, the credibility issues that stymie virtually all cannabis stocks will pressure HEXO. At the end of the day, it comes down to your risk tolerance.But if you're willing to take that leap, Carey argues that this weed play deserves your attention. Primarily, HEXO stock is undervalued relative to its peers. Of course, in the marijuana sector, "undervalued" is an extremely relative term. That said, many cannabis stocks have hit nosebleed levels. Therefore, HEXO at least on paper provides some assurance of future room for growth.Next, the BofA analyst mentioned that Hexo stock is levered toward a "de-risked" Canadian cannabis market. Although I wouldn't use that term specifically, I see his point. Our northern neighbors paved the way for other western and developed nations to adopt tolerant policies. While this broader dynamic is building out, management has time to hone its craft.Finally, Carey mentioned "value-add partnerships" that go beyond the scope of Hexo's existent relationship with Molson Coors Brewing (NYSE:TAP). I agree. Cannabis stocks can branch out into subsegments of the broader categories of recreational and medicinal usage. However, let's not gloss over the Molson partnership as it holds a significant key for growth.Naturally, the idea here is for Hexo and Molson to developed cannabidiol (CBD)-infused drinks. Now, CBD itself is a tailwind for the industry as it offers non-psychoactive exposure to the cannabis plant. In other words, it's a lot easier to introduce people to weed through a drink rather than a joint. Upgrade Suggests Rising Credibility for Cannabis StocksIndeed, Hexo's Molson partnership has advantages over an expected synergy like Cronos Group (NASDAQ:CRON) and Altria Group (NYSE:MO). I don't think I can ever get my parents to smoke marijuana. But to drink it in a form that won't get them stoned? That's infinitely more palatable and more socially acceptable.Invariably, that had to enter BofA's thinking process when deciding to go bullish on Hexo stock. But just the fact that the big bank is even considering cannabis stocks is a major sign. It gives the industry significant credibility, and it suggests a very viable environment in the future.While we here in the U.S. have also warmed to varying degrees of legalization, most banks won't finance cannabis-related businesses. Why? Because it comes down to that nasty roadblock called Schedule I. Despite individual state laws, cannabis falls under strict federal guidelines.Sure, we've made progress in this department, too. For instance, the 2018 farm bill won consensus at a time when bipartisanship no longer exists. And major conservative figures have more or less voiced support for full legalization.Nevertheless, that Schedule I classification remains on the books for marijuana. Unless the federal government officially extinguishes it, most banks won't touch cannabis stocks. * 5 Dividend Stocks Perfect for Retirees And while BofA isn't necessarily diving into the sector with open arms, it's essentially giving you the green light to do so. Look, Hexo stock is a risky play no matter how you cut it. But if you've got the nerve, I'd read between the lines.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post If You Can Tolerate Risk, Hexo Stock Is a Buy appeared first on InvestorPlace.