9.24 -0.01 (-0.11%)
After hours: 6:18PM EDT
|Bid||9.22 x 1400|
|Ask||9.25 x 800|
|Day's Range||8.75 - 9.48|
|52 Week Range||4.05 - 12.52|
|Beta (3Y Monthly)||2.27|
|PE Ratio (TTM)||42.82|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
CVS has announced it will begin to sell topical CBD products at stores in Alabama, California, Colorado, Illinois, Indiana, Kentucky, Maryland and Tennessee. Yahoo Finance’s Dan Roberts, Akiko Fujita, Sibile Marcellus, and Alexis Keenan talk about the pharmaceutical chain’s decision to go green.
has long been a favorite Canadian cannabis stock of mine. Cronos Group will report the firm's fourth quarter financial results this Tuesday (tomorrow) prior to the opening bell. If the firm is to realize the revenue projection, this would illustrate year over year growth of 300% plus and double revenue quarter over quarter.
Cannabis stocks have gotten a lot of attention on Wall Street in the past year after a handful of popular Canadian growers started hitting the U.S. markets. U.S.-listed names like Canopy Growth Corp (NYSE: CGC), Tilray (NASDAQ: TLRY) and Aurora Cannabis (NYSE: ACB) get get most of the publicity.Source: Shutterstock However, OTC-traded stocks Curaleaf Holdings (OTC: CURL), Medmen Enterprises (OTC: MMNFF) and Green Thumb Industries (OTC: GTBIF) could be the best cannabis stocks to invest in. Path To LegalizationIn a new report, Roth Capital Partners analyst Scott Fortune says the cannabis industry has major long-term potential for investors. However, given the massive gains in the most popular stocks in the past year, near-term upside may be limited. Instead, Fortune says the best risk-reward skew in the cannabis space is with U.S. multi-state operators."In our view, the most promising public companies -- i.e., those whose stocks possess the most attractive risk/reward profiles -- are the U.S.-based MSOs -- which are assembling dominant positions in the most lucrative U.S. states," Fortune says.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 3 Things to Watch for Cronos Group Stock Ahead of Earnings Today, these operators are technically violating federal law, which classifies marijuana as a Schedule 1 drug. That classification also keeps these cannabis stocks from listing on the NYSE or Nasdaq exchange. However, Fortune says the STATES Act could be a game-changer for MSOs. The STATES Act wouldn't legalize cannabis on a national level. However, it would exempt companies and individuals from federal enforcement of marijuana laws when inside states with conflicting laws.This legislation would continue the U.S. along the path toward federal legalization and would embolden MSOs to continue to expand their operations. Fortune says once the legalization damn breaks, the financing flood waters will rush in."Federal protection, albeit illegal, has allowed creative risk taking entrepreneurs (MSOs) to quickly gather valuable assets ahead of an eventual large influx of capital investments," he says. Huge Opportunity for Cannabis StocksRoth estimates the $11 billion U.S. cannabis market will more than double in size -- to $23.4 billion -- by 2022. Ultimately, federal legalization will expand that market to at least $59 billion in size, Fortune says.In the long term, Fortune says the social stigma of cannabis will wear off. Eventually, the drug could have a market penetration similar to alcohol today. Roughly half the adult population in the U.S. drinks alcohol. At that penetration rate, the U.S. cannabis market could eventually approach $200 billion. As of early 2019, the top 10 MSOs had a combined market capitalization of around $20 billion. Fortune says that combined market cap could balloon to around $911 billion by 2023. Best Cannabis Stocks to Invest InFortune says the STATES Act will not only help eliminate cannabis marginalization, it will be a huge catalyst for MSOs. Banks located in states where cannabis is legal could be emboldened by the STATES Act and begin to finance cannabis ventures more freely. Investors will certainly see this access to capital as a bullish development. Fortune says MSO valuations could get a big boost as a result.The largest MSO in the U.S. today is Curaleaf, which operates in 12 different states. Curaleaf has a market cap of around $4.6 billion. CURL operates 35 dispensaries, 10 processing operations and 12 cultivation sites.The next largest U.S. cannabis MSO is Green Thumb Industries. Green Thumb operates in 9 states and has 9 manufacturing locations and 61 retail stores. GTBIF's market cap is around $3.1 billion.Finally, the third largest MSO stock is MedMen, which also operates in 12 states. MMNFF has roughly a $1.6 billion market cap. The company has licenses for 76 retail operations and 16 cultivation and processing sites.In addition to the potential for organic growth among MSO cannabis stocks, the industry is consolidating at a rapid pace. Any of these three stocks could be big buyers or even targets for larger companies in the years ahead. * 7 Marijuana Stocks to Play the CBD Trend There's certainly a lot to like about cannabis stocks and the cannabis industry. But investors should be careful about the buying frenzy that has taken place among the most popular names. While U.S.-listed stocks get all the publicity, CURL stock, MMNFF stock and GTBIF stock may be the cannabis stocks with the most upside.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Analyst's Top 3 Cannabis Stocks Are Not What You Think appeared first on InvestorPlace.
I can't think of a more exciting sector than legal marijuana. But like every industry, a fresh response is necessary following the honeymoon phase. For Cronos Group (NASDAQ:CRON), the company faces a critical earnings report for its fourth quarter. Although CRON stock has gained 70% this year, shares have traded flat since late January.Not only that, the company has incurred heavy volatility heading into fourth-quarter earnings. Further, significant movement in the options market suggests that traders anticipate a big move. Considering that technical momentum has dried up for nearly two months, and that analysts are skeptical of the sector's production capabilities, it's critical that CRON delivers the goods.On paper, the bar is set low. For earnings per share, covering analysts expect CRON stock to "break even" at 0 cents. Estimates range between a loss of a penny to a high of 1 cent. In Q4 2017, Cronos delivered EPS of a penny.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the revenue picture is likely what most investors will focus on. Sales estimates range from $6.5 million to $6.6 million, with consensus averaging $6.5 million. If management hits this target, it would represent over a 300% lift year-over-year. That's an ambitious goal, but reaching it could do a lot of good for Cronos Group stock. * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock Of course, with such a dynamic industry, investors should be prepared for anything. Here are three key considerations for CRON stock ahead of its anticipated Q4 earnings release: Revenue Growth Remains a Strong Point for CRON StockAlthough aiming for a record-breaking $6.5 million sales haul in the upcoming quarter appears aggressive, it's actually quite reasonable. Going back to almost two years ago, Cronos has forwarded bonkers numbers. That's one of the reasons why CRON stock historically is such an outperformer. Click to Enlarge Since Q3 2017, Cronos revenue growth on a YOY basis averages 434%. Taking away this quarter's ridiculous 963% growth, we still have an average of just under 333%. Therefore, a 303% growth target for Q4 2018 is well within established trends.That said, legal marijuana understandably has viability and practicality concerns. If CRON fails to hit its revenue forecast, that could send a ripple effect into Cronos Group stock. Wall Street may perceive such a miss as an underlying sector problem that could also affect rivals like Tilray (NASDAQ:TLRY) and Canopy Growth (NYSE:CGC).Thus, Q4's revenue target presents a tricky situation. Yes, Cronos should reasonably attain this goal based on historical performance. But if it doesn't, the penalty will likely be severe. Inventory Concerns casts Cloud on CRON stockAmong the litany of criticisms against the cannabis industry, a common criticism is capacity. Several players have invested considerable funds acquiring marijuana production facilities. But analysts have voiced concerns that some of these buyouts don't make economic sense. For example, consider the hoopla surrounding Aurora Cannabis' (NYSE:ACB) acquisition of Whistler Medical Marijuana.This goes to show that capacity will always remain a highly-scrutinized metric. After all, a marijuana producer's viability is directly correlated to how much agricultural goods it can produce. However, another important and related figure to watch is inventory.When people talk capacity, they're talking about processed and packaged goods. It doesn't do Cronos Group stock any good if the underlying firm sits on an un-shippable supply glut. Looking at days inventory, though, management must reign this number in.It's not just the fact that the company reported over 748 days inventory in Q3 2018; this metric has risen uncomfortably high in recent quarters. * 5 Stocks To Buy for the Happiest Employees Again, management must trim this trend. If not, I'm not sure if a good narrative can save CRON stock in the nearer-term. What's CRON Doing with their Money?Last year, tobacco giant Altria Group (NYSE:MO) made headlines when it announced a $1.8 billion equity investment in CRON. Naturally, Cronos Group stock launched into orbit after the disclosure.But it wasn't just about the money. Instead, Altria gave Cronos and the entire marijuana industry a credibility boost. If a big company like Altria was willing to stick its neck out, it must recognize the sector's true potential.Specifically for CRON stock, Altria represented money growing on trees. With its massive partner's support, Cronos can embark on its expansionary ambitions.That's the good part. However, stakeholders don't want to listen to bedtime stories indefinitely. At some point, they want results. Inevitably, we have the obvious question: what's Cronos doing with the money?Boosting sales is one thing. However, shareholders also want efficient production, and eventually, a feasible roadmap to consistent profitability.Unfortunately, I'm not entirely convinced that CRON will give analysts what they're seeking in the nearer-term. Therefore, I'd take a cautious approach to Cronos Group stock heading into Q4.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 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post 3 Things to Watch for Cronos Group Stock Ahead of Earnings appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) almost appears unstoppable. As a result, ACB stock has achieved highs not seen since before marijuana gained official legal status in Canada. Hemp legalization in the United States and the market's move higher have lifted both Aurora Cannabis and the stock of its peers.Source: Shutterstock However, this move higher has occurred despite Aurora making no moves into the U.S. hemp market. Moreover, ACB stock trades close to levels it saw before it started falling in October, portending a possible double top in the equity.Considering the stock price and other factors, investors should probably avoid Aurora Cannabis stock at these levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Rising Market, U.S. Hemp Has Reignited Cannabis StocksInvestors can find a lot to like about ACB stock. The company reported revenue growth of 387% in its last quarterly report. Moreover, its investments place it on track to become the largest producer in the industry by next year. * 10 Stocks on the Rise Heading Into the Second Quarter This may help explain why ACB stock has more than doubled from the $4.58 per share low the equity reached on Dec. 24. The overall market began a recovery at that time. Still, the U.S. government also signed a farm bill into law that granted legal status to hemp. Thus, Aurora and its peers not only gained access to the U.S. market, but they also benefit from a reignited boom in marijuana stocks.However, this boom is occurring south of the Canadian border in a country with nearly ten times the population. Moreover, reticence about cannabis remains in some parts of the U.S. Interestingly, this may help cannabis stocks as it will delay a potential "sell the news" event comparable to the stock swoon marijuana stocks saw following Canadian legalization.Now trading at just under $10 per share, it is now approaching the $12.52 per share high it achieved right before marijuana achieved full legal status across Canada. The Current ACB Stock Price Should Cause ConcernValuation offers little help when evaluating ACB stock. ACB trades at more than 80 times sales, and full-year profitability will not come until at least next year. However, that comes in lower than its largest peers: Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY) and Cronos Group (NASDAQ:CRON).However, ACB looks cheap only on a comparative basis. Also, high valuations could still influence ACB stock indirectly. So far, the stock has only traded above the $10 per share level for two weeks of its history. As the stock approaches its record high, investors could start to question the valuation. If I were to buy ACB, I would also want to know that the $12.52 level of last October is not a double top.Also, ACB's expansion outside of Canada appears perplexing. The company reported revenues of C$2.9 million ($2.17 million) outside of Canada. It has also expanded into 24 countries across five continents. However, even though it legally can, it has so far chosen not to follow its peers into the U.S. hemp market.Moreover, ACB has relied heavily on stock dilution to fund its expansion. With the company reporting losses and the stock trading at over 80 times sales, I can hardly blame the company for issuing stock to support its expansion. However, it reduces the incentive to pay high multiples. The Bottom Line on Aurora Cannabis StockAmid the recent rally, investors should probably avoid ACB stock at its current levels. Despite my view on ACB stock, Aurora continues to improve its market position. As a result of expansions, it may lead the industry in production by next year. Also, between massive revenue increases and the growth potential of the world cannabis market, one can understand why Aurora Cannabis stock trades at a premium. * 7 Retail Stocks That Will Continue to Rebound in 2019 However, ACB has spent very little of its history trading at or above current levels. To achieve significant growth, traders need to know that the equity is not forming a double top. Moreover, stock dilution has funded much of the company's expansion. This has likely hampered growth in ACB stock. Furthermore, it seems strange that Aurora Cannabis has not followed its peers into the U.S. hemp market. I expect the company to enter the U.S. at some point. Still, the fact that it will lag its peers in such a large market should concern investors.Given the moves to lead its peers in capacity and foreign expansion, I expect Aurora Cannabis to remain one of the more important companies in the industry for a long time to come. However, at current levels, I see more reasons for ACB stock to move down than up.As of this writing, Will Healy did not hold a position in any of the aforementioned securities. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Why You Should Sell Aurora Cannabis Stock Before It Reaches New Highs appeared first on InvestorPlace.
It's been a couple of weeks now since Canadian marijuana producer Aurora Cannabis (ACB) announced its appointment of Nelson Peltz, CEO and Founding Partner of investment management firm Trian Fund Management, L.P., to be its new "Strategic Advisor." When that news broke, it sent Aurora Cannabis shares up 14% in a day.Cowen's Vivien Azer thinks that was the right reaction, reiterating an Outperform rating on ACB stock with a C$14.00, which implies about 15% upside from current levels. (To watch Azer's track record, click here)Viewing the news of Nelson Peltz's appointment in light of revelations gleaned from recent investor meetings with Aurora Chief Corporate Officer Cam Battley, Azer opines that it sees both parties benefiting from this partnership. From Aurora's perspective, of course, it's hiring an advisor with deep knowledge of the consumer packaged goods (CPG) industry, and numerous contacts with decision-makers, formed over decades of deal-making -- but this association is good for Peltz as well.The reason: Azer explains that Aurora has a lot of potential to grow and profit as the (legal) marijuana industry matures. And as it does so, Peltz stands to make a pretty penny off of the 20 million stock options that Aurora is awarding him as incentive to give good advice.Why does Azer think this? Consider:The final quarter of last calendar year (Aurora's Q2 2019) saw the company produce 7,800 kilograms of cannabis, "the highest level of kilograms produced among" Canadian licensed producers of the drug. Aurora's production even exceeded that of Canadian rival Canopy Growth (CGC), albeit the latter commands a market capitalization 68% higher than Aurora's $9.1 billion market cap. Furthermore, Aurora reached this higher level of production "despite having a significantly smaller amount of licensed square footage" in which to grow weed.At a minimum, this suggests that Aurora is a more efficient producer than its rival. It probably helps, explains Azer, that Aurora focuses on growing its cannabis indoors. As the analyst explains, "using indoor grows will become a competitive advantage as it will allow the company to minimize crop losses compared to greenhouse or outdoor grows."Such production efficiencies could also help Aurora to become a more profitable pot producer. Currently, Azer estimates that it costs Aurora C$1.92 to grow a gram of salable marijuana. But as production increases and efficiencies save on costs, the analyst sees this cost-per-gram falling to under C$1.Lower costs will lead to even higher profit margins for Aurora, says Azer -- indeed, "industry-leading gross margins." And when you consider that Aurora already reaps 61% gross margins on its product (versus 48% margins for Cronos, for example, or 29% margins for Canopy), this is saying a lot.Assuming Aurora succeeds in growing quarterly production to 12,000 kg in Q3, and 25,000 in Q4, the company is on track to produce 500,000 kg -- that's 500 metric tons \-- of weed annually by mid-2020. Azer expects this to translate into as much as C$742 million in sales that year, and if Aurora maintains this growth trajectory, nearly double that by 2022 -- C$1.3 billion, and $413 million in EBITDA to boot.That's reason enough for Azer to get excited -- and good reason for Nelson Peltz to do his level best to help Aurora meet its goals.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on ACB: * Can One Man Make a Difference for Aurora Cannabis (ACB) Stock? * Breaking Down the Aurora Cannabis (ACB) Investment Portfolio: Choom Holdings * Aurora Cannabis (ACB) Breaks Into the German Market More recent articles from Smarter Analyst: * Square (SQ) Stock Has 20% Upside Potential, Says Top Analyst * Nvidia (NVDA): Investor Day Sets Bullish Tone for the Stock * Stock Market Reaction to Micron (MU) Earnings Was Positive, but Short-Lived; MKM Weighs In * There’s No Middle Ground for Tesla (TSLA) Stock
HENDERSON, NV / ACCESSWIRE / March 22, 2019 / Many high-profile companies in the cannabis market have posted incredible gains since start of 2019 and this trend looks to continue. The race to profit from ...
Cannabidiol (CBD) is emerging as a red-hot category of the marijuana industry. CBD includes compounds in the cannabis sativa plant that do not produce a high. In fact, over the years, CBDs have been shown to have powerful therapeutic effects.Now it looks like the U.S. market could open up in a big way for this type of cannabis and several CBD stocks are gaining traction. The reason: In December, Congress passed the 2018 Farm Bill, which declared that CBD would no longer be treated as an illegal substance.So how big could this opportunity be? Well, according to research from the Brightfield Group, the market in the U.S. could hit $22 billion by 2022.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best ETFs to Buy in the Second Quarter No doubt, this could move the needle for marijuana stocks -- and here's a look at seven that stand out: Cronos Group (CRON)Cronos Group (NYSE:CRON) operates a vertically integrated cannabis platform, with a presence across five continents. In terms of the CBD opportunity, the company recently struck a strategic partnership with Gingko Bioworks, which has raised $430 million. The company's founder, Tom Knight, is known as the "father of synthetic biology" and his innovations -- such as with software to print DNA -- should allow for the creation of cannabinoids at a massive scale. This is critical because it can be difficult to produce pure forms that are cost-effective and precise.CRON also has the advantage of substantial financial resources to commercialize its cannabinoids. Last December, Altria (NYSE:MO) invested $1.8 billion into the company for a 45% stake. The deal is certainly a validation of CRON but it will also allow for much broader distribution and improved product development.Of course, a company like MO does engage in substantial due diligence before making an investment. In the latest earnings call, CEO Howard Willard said: "We believe the growth opportunities are significant and will extend across the globe as cannabis markets open. Selecting the right partner in this category was critical and we've done just that. Cronos strong management team has built unique capabilities to compete globally across the medicinal, recreational and nutraceutical categories." Aurora Cannabis (ACB)Aurora Cannabis (NYSE:ACB), a Canadian based cannabis producer, has been building up its CBD business. Part of this has been with its investments in industrial hemp production, such as with the Radient facility in Edmonton. It is expected to get as much as 10,000 kilos per day.Next, ACB has been focused on revving up its product offerings. According to the latest earnings call, Chief Corporate Officer Cam Battley, the company is poised "to launch a broad line of CBD based wellness product in the near future."What's more, ACB has been aggressive with its dealmaking. For example, it has increased its equity position in Hempco and purchased Agropro, which is Europe's largest hemp producer. * 10 Stocks on the Rise Heading Into the Second Quarter Something else to keep in mind: Legendary billionaire investor Nelson Peltz has joined the company as an advisor. This is certainly a major vote of confidence. He not only has deep access to investment capital but a strong network of potential partners, especially in the consumer goods industry. Some of his investments include stakes in PepsiCo (NASDAQ:PEP), Procter & Gamble (NYSE:PG) and Mondelez (NASDAQ:MDLZ). Charlotte's Web (CWBHF)The inspiration for the founding of Charlotte's Web (OTCMKTS:CWBHF) was a CNN documentary -- in 2013 -- about Charlotte Figi, whose health was significantly improved because of a hemp extract.Fast forward to today: The company is the No. 1 brand for the hemp-derived CBD market in the U.S. It definitely helps that it has distribution across more than 3,000 retail locations.And yes, growth has been strong. In the latest quarter, revenues jumped by 57% to $17.7 million and adjusted EBITDA came to $5.4 million, up 31%.To better capitalize on the CBD opportunity, CWBHF recently issued $71.5 million in stock. This will be for cultivation and production to meet surging demand. Here's what the company's CEO, Hess Moallem, had to say: "In general, broader consumer awareness of the benefits of cannabinoids, namely cannabidiol (CBD), and whole plant hemp extract is driving increased uptake in both our retail channels and within our e-commerce platform."In other words, it seems like a pretty good bet that the growth will continue for some time. Zynerba Pharmaceuticals (ZYNE)Zynerba Pharmaceuticals (NASDAQ:ZYNE) is a clinical-stage biotech company that develops cannabinoid therapies for a variety of rare diseases. They include: * Fragile X Syndrome (FXS): This is a developmental disability that has been known to cause autism spectrum disorder. FXS impacts 71,000 people in the U.S. and there are no drug indications for it. * Developmental and Epileptic Encephalopathies (DEE): This is an epilepsy syndrome that involves severe cognitive impairment. About 45,000 children and adolescents have this in the U.S. * Autism Spectrum Disorder (ASD): This includes autism and Asperger's syndrome. ASD affects less than 1 million pediatric and adolescent patients. * 7 Retail Stocks That Will Continue to Rebound in 2019 ZYNE's main candidate is Zygel, which is a CBD formulation gel for transdermal delivery. As for the FXS treatment, there is expected to be a pivotal data release in the second half of this year. And if the trial is positive, then the company will file a New Drug Application (NDA) for Zygel in the first half of 2020. Canopy Growth (CGC)Since 2016, Canopy Growth (NYSE:CGC) has been building its CBD business, with a focus on consumer packaged goods. The company has since created a vertically integrated platform for that includes a set of technologies that have pending patents. What's more, the hemp division is expected to yield 7,000 kilos of hemp-derived CBD on an annual basis. Granted, this cannot be used in the U.S. market. Yet CGC is likely to be a solid partner. For example, the company recently struck a deal with Martha Stewart's Sequential Brands Group, so as to develop CBD remedies for pets.It helps that CGC has substantial resources, which came from a mega $4 billion investment from Constellation Brands (NYSE:STZ). STZ has a strong global footprint -- with operations in the U.S., Mexico, New Zealand, Italy and Canada -- as well as a set of well-known consumer brands, such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. All in all, there is quite a bit of synergy for CGC.In the meantime, the company is growing at a staggering pace. In the latest quarter, revenues soared by 282% to $83 million. GW Pharmaceuticals (GWPH)The origins of GW Pharmaceuticals (NASDAQ:GWPH) go back to 1998. It was then that Dr. Geoffrey Guy and Dr. Brian Whittle co-founded the company to focus on developing therapies using cannabinoid formulations to target areas like epilepsy, glioma and schizophrenia.As of today, the lead product is a liquid formulation of a CBD, called Epidiolex, which received FDA approval in 2018 (the expectation is that there will be an approval in Europe in the second quarter). The drug targets the rare conditions of Lennox-Gastaut syndrome (LGS) or Dravet syndrome, which are variations of epilepsy. Furthermore, there are other indications for Epidiolex, such as Tuberous Sclerosis Complex and Rett Syndrome. * 7 ETFs for a Millennial Portfolio But of course, the company has other treatments. Note that GWPH is looking to get approval in the U.S. for Sativex, which is an oromucosal spray for multiple sclerosis. It is currently available in 25 countries. Horizons Marijuana Life Sciences ETF (HMLSF)If you do not want to buy individual CBD stocks, then you can consider an exchange-traded fund, such as the Horizons Marijuana Life Sciences ETF (OTCMKTS:HMLSF). With this, you'll get exposure to companies like Canopy Growth, Aurora, GW Pharamceuticals, HEXO and Tilray (NASDAQ:TLRY).In all, there are 59 stocks in the portfolio and the net assets are about $1 billion (in Canadian currency). The expense ratio is also 0.75%.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. 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 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 7 Marijuana Stocks to Play the CBD Trend appeared first on InvestorPlace.
The ongoing wave of cannabis legalization is good for pot companies, but the trend could be a downer for alcohol stocks, warns DataTrek.
Cannabis stocks are climbing this year and Aurora Cannabis (NYSE:ACB) is among the leaders of that pack. Shares of ACB stock have nearly doubled year-to-date and are in the midst of a breathtaking March rally of more than 33%.Source: Shutterstock Returns like those, particularly in the short time frames, might give investors reasonable pause about Aurora Cannabis stock, or any other stock for that matter. Indeed, the risk/reward proposition on ACB stock looks a lot different today than it did at the start or 2019. In terms of upside potential, Aurora Cannabis stock would need to rally another 28% to reclaim its 52-week high.That is not an impossible climb for ACB stock, but the near- to medium-term issue is finding upside catalysts because plenty of good news is already baked into this marijuana stock. For example, ACB surged earlier this month on news activist investor Nelson Peltz is joining the company as an advisor. That sent ACB stock to a double-digit intraday gain and the shares are up more than 11% since then.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Analysts Say About ACB StockSell-side analysts are not correct about any stock 100% of the time. Investors that acknowledge that can help mitigate disappointments. That said, some analysts are bullish on ACB stock. * 10 Stocks on the Rise Heading Into the Second Quarter Earlier this month, Cowen's Vivien Azer -- one of the most respected analysts tracking marijuana equities -- initiated coverage of Aurora Cannabis with an Outperform rating and a price target that works out to the equivalent of about $10.50 in U.S. dollars."While establishing 20% market share has been an early success story in Canadian adult use cannabis, the company is uniquely positioned to drive leadership in both share and profitability," Azer wrote in a note, according to Barron's.The analyst "believes that Aurora will deliver positive earnings before interest, taxes, depreciation and amortization by its fiscal fourth quarter in June, making it one of the first of its peers to reach this milestone," reports Barron's.Some analysts also view valuations on ACB stock as favorable relative to other marijuana names. Consider this about the valuations assigned to some weed equities: Aurora Cannabis stock trades at a forward P/E ratio of 101 and a price-to-book ratio of 3, according to Morningstar data, and that's considered a value relative to its peer group. Peltz PowerAs was noted above, news of the activist investor Peltz getting involved with Aurora Cannabis is priced into the shares, but that does not diminish the importance of this news going forward. One of the biggest drags on Aurora Cannabis stock has been the company's inability to form partnerships with more mainstream companies as some of its rivals have.Think Constellation Brands (NYSE:STZ) taking a multi-billion stake in Canopy Growth (NYSE:CGC) or Altria (NYSE:MO) forming a partnership with Cronos Group (NASDAQ:CRON). Last year, it was rumored that Coca-Cola Co. (NYSE:KO), the world's largest soft drink company, held talks with Aurora to develop cannabidiol-infused beverages, but a deal did not materialize.Peltz has long tradition of working with management teams -- particularly at large consumer staples companies -- to streamline operations and bolster efficiencies to enhance profitability.Aurora Chairman Michael Singer mentioned the beverage, cosmetics, health and wellness and pharmaceutical industries as potential growth areas for his companies and Peltz could help the upstart cannabis company make inroads into those arenas. * 5 Stocks To Buy for the Happiest Employees The Bottom Line on ACB StockAurora Cannabis definitely shows promise in the marijuana space, and Nelson Peltz only adds to the pot stocks' legitimacy. For now, however, all of the good news looks priced into ACB stock -- even if a valuation of 100x forward earnings is a steal in the cannabis area.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post There's Smoke, But Is There Still Fire for ACB Stock? appeared first on InvestorPlace.
[Editor's note: This story was previously published in February 2018. It has since been updated and republished.]Often, when analysts or bloggers talk up the potential of marijuana stocks, the focus is on the consumer side of the industry. But some of the best stocks in the pot sector may be medical marijuana stocks.Indeed, it's on the medical side where growth likely is to be largest in the near term. Canada did legalize recreational marijuana in October, but investors promptly sold the news in response. U.S. legalization is likely to be a long slog. Attitudes are mixed in Europe -- but even in legalized markets anywhere, black market (and untaxed) operators will be able to take share.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, approval of medical marijuana (in the U.S. and elsewhere) seems to be moving at a faster pace. In such a highly regulated market, black market and even smaller producers likely will be shut out. Quality and consistency will be key. Here, scale will matter. And those companies that win early have the best chance of becoming market leaders -- and providing big gains for investors. * 10 Stocks on the Rise Heading Into the Second Quarter As always -- and particularly in this space -- investors need to mind the risks and size positions accordingly. But for investors who see medical marijuana stocks as the next big thing, these three are the best stocks for investors enamored with weed.Source: Shutterstock Charlotte's Web (CWBHF)Charlotte's Web (OTCMKTS:CWBHF) has become one of the leading players in CBD oil (cannabidiol). And though Charlotte's Web products are made from hemp -- at least for now -- instead of marijuana, the stock still looks like one of the best plays in the sector.InvestorPlace's Matt McCall named CWBHF (the stock also trades on the Canadian Securities Exchange, ticker CWEB) as his pick of the best stocks for 2019. And the case makes some sense. CBD oil sales are soaring and Charlotte's Web is a market leader. As McCall pointed out, the federal farm bill in the U.S. provided a catalyst by legalizing hemp.With so many customers yet to try CBD oil -- and so many existing users attached -- market growth should be huge. And while CWBHF isn't cheap from a valuation standpoint, its position as a market leader should allow it to grow into its valuation.Source: Shutterstock Cronos (CRON)Of late, marijuana producer Cronos Group (NASDAQ:CRON) has made the headlines for its consumer business. Most recently, tobacco giant Altria (NYSE:MO) invested some $1.8 billion in the company. The combination of Altria's advertising and distribution reach and Cronos' production capabilities would seem best fit for the consumer side of the business.But investors can't ignore that Cronos is a medical marijuana stock as well. In fact, it's that business that drives the majority of revenue at the moment. And it also has given the company a beachhead in multiple markets around the world, from its home market of Canada to Germany, Israel and Poland. * 5 Cloud Stocks to Help Your Portfolio Fly I wrote after the Altria deal that investors should stay patient with CRON stock. And in this market, that might still be wise advice. But with the stock seemingly having stabilized at around $20 it looks as if this stock is for real.Source: Shutterstock CannTrust (CTST)CannTrust (NYSE:CTST) has been one of the biggest victims of the post-legalization selloff. The stock lost more than half its value and touched a 52-week low in the process last year. Since it's December fall, it has more than doubles and remains on the uptrend.Unlike many peers, the company is profitable. And its established leadership in the Canadian medical marijuana industry should drive consistent growth and allow CannTrust to stay profitable. There is some retail exposure here as well, but unlike peers, CannTrust seems to have room to drive upside on the medical side alone.CannTrust also was able to get a listing on the New York Stock Exchange this year. Admittedly, uplisting hasn't helped pot stocks in and of itself (most notably Aurora Cannabis (NYSE:ACB) took a lot longer to take off than was expected), but it certainly didn't hurt.From a profitability standpoint, at least, CNNTF seems like one of the best stocks in the pot sector. And with valuation near the lows, at least some of the risks here likely are priced in.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 of the Best Stocks to Buy for a Dovish Federal Reserve * 5 Best Fidelity ETFs for Retirement Savers * 7 Blue-Chip Stocks That Could Lead the Market Higher Compare Brokers The post 3 Medical Marijuana Stocks to Buy appeared first on InvestorPlace.
CALGARY , March 21, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, is pleased to announce that, subject to the approval of the Alcohol and Gaming Commission of Ontario (the "AGCO"), it has been selected to assist with establishing and operating a retail cannabis store by a third winner of one of only 25 opportunities to apply for an operator's licence (the "Third Winner") as a result of the AGCO's Expression of Interest Application Lottery conducted on January 11, 2019 (the "Lottery"). Subsequent to previously announcing that High Tide had been selected to assist two other Lottery winners, the Third Winner acknowledged its need for support and chose High Tide to help open a retail cannabis store at a proposed location in Toronto, Ontario .
Aurora Cannabis Inc. (ACB) closed at $9.80 in the latest trading session, marking a -1.61% move from the prior day.
Shares of Aurora Cannabis (NYSE:ACB) have been soaring lately, up 25% in just a few trading sessions. Because of this giant move, investors are wondering if now's the time to get in on ACB stock or if a 25% rally means they missed their chance.Source: Shutterstock What's the verdict?I wouldn't say there's no upside left, but the risk-reward profile has certainly muddied. Unfortunately, investors who are suffering a case of FOMO -- a "fear of missing out" -- have no reason to be. There was ample time to buy this name, even after the big rally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's look at the charts to see why. Trading ACB Stock Click to Enlarge There are so many choices in the investing world that I do not like to be a "told you so" person. Meaning that even studious followers of the stock market can't act on everything they see and read. In the case of ACB stock, though, perhaps investors can extract a lesson. * 7 Video Game Stocks on Steep Discount Notice how the stock gapped higher by about $1 per share last week, closing near $9 after previously closing near $8. Many would argue that this ~12.5% gain was simply too much of a rally and they'd have to move on to something else. I needed to see how ACB stock would trade over the next few days, too, as I don't want to chase a double-digit move.The next day ACB stock put in an "inside day." That's where a stock's daily range trades within the range of the prior day. Notice on the chart above how the second candle following the big gap-up candle is within its range? After a big rally like this, that's a great consolidation pattern that bulls want to see. It shows that longs aren't winning to sell and shorts don't have enough "oomph" to drive it down.The next day, ACB stock began what looked like another inside day, before rocketing higher. In other words, this price action allowed investors to hop on before an 11% move higher.So what now?Shares of Aurora Cannabis stock are stretching into overbought territory. However, that does not mean it cannot continue higher. I wouldn't mind seeing how ACB stock does over the next few sessions and if we get a slight pullback before moving higher again.Keep in mind, ACB stock has breached $12 more than once in the past 12 months. Perhaps it's on its way of doing it a third time. Valuing Aurora Cannabis StockSo what got Aurora Cannabis stock rallying so strongly anyway? The company brought activist investor Nelson Peltz on board to advise on partnerships and global expansion.They didn't pick a bad advisor, either. Peltz has a long list of contacts and the hedge fund manager is a master in the consumer packaged goods space. Whether this leads to a partnership with a well-known blue-chip company or not remains to be seen. But adding him in this role certainly doesn't hurt Aurora's chances.That said, we're still very much in the "land grab" phase of the cannabis market. While growth is impressive -- as ACB stock grew sales 339% year-over-year last quarter -- the valuations do not support these names. For instance, while revenues more than quadrupled last quarter, sales came up just short of $39 million. With a $10 billion valuation, that growth better continue for some time in order for it to be justified.But if there wasn't an opportunity here, we wouldn't have Constellation Brands (NYSE:STZ) taking a multi-billion stake in Canopy Growth (NYSE:CGC) or Altria (NYSE:MO) doing the same thing with Cronos Group (NASDAQ:CRON). There's money to be made and an opportunity to be had with states and countries legalizing marijuana, both for medical and recreational use.That said, it's not a short-term or risk-free endeavor for investors.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Did You Miss Your Chance to Buy Aurora Cannabis Stock? appeared first on InvestorPlace.
The cannabis industry is unique from other sectors in the market, meaning that getting financially involved tends to look a little different. Leafbuyer Technologies Inc (OTC:LBUY), Aurora Cannabis Inc (NYSE: ACB, TSX: ACB), Shineco Inc (NASDAQ:TYHT), and New Age Beverages Corp (NBEV) represent 4 marijuana stocks leading Wednesday's bull charge. Nowadays, consumers depend on online resources to research the products they are interested in buying and, prior to Leafbuyer's platform, there hadn't been a reliable source for information on cannabis and related products.