|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||21.17 - 22.38|
|52 Week Range||11.99 - 30.00|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||36.40|
Investors are missing the 40% upside for Acreage Holdings shares in the aftermath of his mega cannabis deal, according to Canopy Growth CEO Bruce Linton.
Last week, a blockbuster story for marijuana stocks -- one of the biggest in years -- slipped by a lot of investors. It was in the news, but most investors don't know the industry well enough or the players involved to grasp its huge significance. To them, it was just another headline.Not to me. I've been waiting years to write this story, and now the final chapter is taking shape.I'm extremely bullish on the once-in-a-lifetime opportunity to build wealth in marijuana stocks. There was a time when other investors laughed at me because of it. Not anymore.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBasically, the biggest marijuana company in the world and some of the most connected people in the world all but told us that U.S. marijuana legalization is coming… and perhaps sooner than expected. What's the Big Deal?Cannabis giant Canopy Growth (NYSE:CGC), which is based in Canada, confirmed last week that it plans to enter the U.S. market. The $16.5 billion company made an offer to buy U.S.-based Acreage Holdings (OTCMKTS:ACRGF).At first glance, that doesn't sound all that important. But remember: Marijuana is legal in Canada. It is not in the United States, at least on the federal level. * 10 Stocks to Sell Before They Give Back 2019 Gains In fact, any company that touches the marijuana plant in the United States cannot list on a major stock exchange -- the New York Stock Exchange (NYSE), NASDAQ, even the Toronto Stock Exchange (TSX).Well, guess what? Canopy already trades on the NYSE and TSX. If it were to enter the U.S. marijuana market right now, it would be forced to delist from both and move down to a lesser known, less liquid exchange.There is no way the company would let that happen.So what prompted Canopy to prepare to enter the U.S. now? Why not next month? Next year? Why not wait until after marijuana legalization?Two reasons. One, Canopy wants to be ready to capitalize on what will instantly become the largest marijuana market in the world the moment it becomes legal.And two, Canopy all but knows -- or is at least extremely confident -- that legalization is right around the corner.Management didn't say that outright. I wouldn't expect them to. But I believe it to be true because of three very important people on the board of Acreage Holdings: * Former U.S. Speaker of the House John Boehner, * Former Canadian Prime Minister Brian Mulroney, * And former Massachusetts Governor and current Republican presidential candidate William Weld.Among those three gentlemen, there is undoubtedly insight into marijuana's future that you and I are not yet privy to.But if we know the industry and the players involved, we can connect the dots. These two companies have access to and insight from three of the most politically connected men in the world. They decided it was time to make a deal.If Canopy believed U.S. legalization was still years away, there would be absolutely no reason to buy the rights to Acreage yet.Last week's announcement is like knowing the score of a game before it starts. Marijuana stocks are already on the move, but you still have time to position yourself to make a lot of money as legalization sweeps the globe and the industry grows many times over. Now is the TimeInstead of buying Acreage outright today, Canopy wisely bought the "rights" to purchase the company when marijuana becomes fully legal in the United States. That last part is the key. And Canopy wouldn't do that if legalization were still years away.When marijuana does become legal, Canopy will pay $3.4 billion, a 42% premium over Acreage's average value the last month. The deal is mostly stock, which means Canopy still has more than enough cash to make similar deals.Canopy Growth is not just any marijuana company. It is the biggest cannabis company in the world, so deals like this speak volumes. Canopy's $16.5 billion market cap is nearly 80% above its closest competitor, Aurora Cannabis (NYSE:ACB), which his valued at $9.2 billion.Last June, Canopy was the first of the marijuana stocks I've recommended to my Investment Opportunities readers. We're up 58% since then, capitalizing on the stock's nearly 80% jump in 2019. It is above my recommended buy limit, but it is a stock every cannabis investor should try to own at the right price.In the wake of the big news, we will be adding fresh stocks in position to benefit from the coming U.S. marijuana legalization. In the meantime, there are other great buys with huge potential, from growers to suppliers to real estate companies to IPOs and more.Some of the absolute best opportunities are in smaller companies that are about to explode -- possibly into the next Canopy Growth or Aurora Cannabis. In fact, one tiny company I recommend even has interesting connections to Canopy Growth.I am more excited than ever about the opportunity to make life-changing gains as the marijuana industry grows exponentially in the coming years. Now is the time to act. A Chance for Life-Changing GainsThat tiny company I mentioned is a unique type of investment among red-hot marijuana stocks.As the cannabis industry grows exponentially in the coming years, it could realistically multiply your money several times over… if you take part soon -- I'd say no later than April 25.The company is part of a phenomenon that has only occurred a small handful of times in the past few decades -- in other industries. But on many occasions, it's resulted in an explosion of wealth so incredible, the numbers almost seem made up.The first time we saw it was in 1983, when it returned early investors as much as 45,300% gains!Incredibly, there is that opportunity once again, right now… in the booming marijuana market.This is so important that I put together a presentation with all of the details on this rare opportunity and why you need to act now. Click here to learn all about it.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post A Game-Changing Moment for Marijuana Stocks Just Got Closer appeared first on InvestorPlace.
Canopy Growth (CGC) made a major announcement last Thursday. If everything goes as planned, the Canadian cannabis giant will acquire Acreage Holdings (ACRGF) for an estimated value of $3.4 billion.The entry into the U.S. cannabis market has been anticipated for quite a while, though the strategy for entering the U.S. market became better understood via the announced acquisition.The announcement offers a constructive narrative for how Canopy could actually enter the U.S. Cannabis market, which is estimated to be a $50 billion+ market (inclusive of black market and legal sales) versus the much smaller Canadian market at $4.5 - $5.3 billion annual sales, according to Cowen analyst Vivien Azer. Canopy’s expansion beyond the Canadian market into the U.S. market suddenly expands the TAM (total addressable market) opportunity by upwards of 10x.The U.S. cannabis market is more fragmented with domestic producers heavily concentrated in Northern California (or really all of California with a number of well-established brands and strains). The fragmentation of the market and the stiffened competition, along with a number of established strains (predominantly from California growers) makes entry into the U.S. market very difficult. Not to mention, much of the black-market activity is concentrated in various regions across California, where they not only don’t pay taxes, but price below wholesale rates anyway.The acquisition of Acreage is an integral bridge to the U.S. market for Canopy. Acreage has managed services agreements in place for cannabis-related licenses across 20 states (giving it the right to develop), including 87 dispensaries and 22 cultivation and processing sites. Therefore, the expansion into the United States becomes a lot easier with those existing facilities and licenses, as it takes away a significant sum of the legwork involved with establishing recognizable strains or immediate channels to retail end-consumers that would pay the conventional retail rate. Also, getting licenses in the United States is a complicated legal process in a number of States where medical is legal whereas recreational is illegal, so the immediate impact from an acquisition would be more than material. Hence, it’s another reason why I anticipate the 41.7% acquisition premium to increase, and deal terms to be modified.Legalization in the United States at the Federal level could happen, but it’s really conditional on the re-introduction of the STATES Act by Elizabeth Warren (D) Senator, and Cory Gardner (R) Senator from Colorado. Cory Gardner mentioned that Donald J. Trump would support the STATES Act, which diminishes the likelihood of a presidential veto, but it’s also worth noting that Cory Gardner comes from a more moderate (plus an already legalized state), hence there’s implicit bias in Cory’s stance despite being a Republican. Not to mention, conservatives have been slow on the issue, and it’s not yet clear whether they have mustered enough political capital from the Republican Party to sell their voter base on the STATES Act.Historically, the Republican Party (especially in recent history) has polarized their voter base with the “War on Drugs,” and various drug policy enforcement initiatives tied to the southern border. Not to mention, the Republican Party base leans towards anti-drug, anti-crime, and touts investments along with statistics tied to various law enforcement initiatives. Sudden support for marijuana legalization could undermine the main narrative Republicans have been preaching for ages. The Speaker of the Senate, Mitch McConnell has yet to comment publicly on the STATES Act, and in recent weeks he has been more vocal in the support of raising the minimum age of tobacco consumption from 18 years to 21 years of age. I.e., he’s still sticking to his guns and getting more aggressive on regulating pre-existing drugs that are already legal, and now stock speculators expect him to rally his party base to legalize something illegal? Something doesn’t seem to add up here, quite yet."Top banking regulators from 24 states sent a letter to Congress to urge enactment of the SAFE Act, which would permit banks to service cannabis companies that comply with state law. Our View: We continue to expect the 116th Congress will enact cannabis-related legislation. Our view remains that this is more likely to be a narrow bill like the SAFE Act on banking rather than a broader bill like the STATES Act, which defers the issue of legalization to the states," said Cowen's Jaret Seiberg in a note to clients.The SAFE Act could gain passage as it’s much easier to sell to conservatives, as it ties into banking, and economic policy, which would push the narrative towards deregulation. Something the conservative party does support. Referencing statistics on job creation, cutting back on burdensome regulation, and pro-banking regulation has been a staple of the Republican Party. So, getting the SAFE Act past congress and the senate seems more doable than federal legalization of marijuana in the immediate near-term.Although, some of that might have factored into the decision making made by the board at Acreage whom are also composed of former Republican politicians, according to Seiberg: "As a leading multi-state operator (MSO) in the U.S., Acreage Holdings has differentiated itself given their political prowess. As a reminder, Acreage has seeded their board with heavyweights including John Boehner (former Speaker of the House (R)), Bill Weld (former Governor of Massachusetts (R), Republican candidate for President) and Brian Mulroney (former Prime Minister of Canada). With the state of cannabis policy changes in the U.S. inextricably linked to politics, these relationships can certainly be viewed as offering outsized value."Piper Jaffray analyst Michael Lavery stated, "The timing of potential legalization in the US is unknown, but we expect it in the next 2-5 years, possibly sooner, and we note that the terms of this deal expire after 7.5 years if legalization has not come by then. We estimate the total US cannabis market (including illicit trade) is $35-50B, with the largest seven publicly traded US cannabis operators combined capturing only 1.5% market share. Cannabis is still federally illegal in the US, but the lack of regulation has allowed products to evolve much more rapidly than in Canada."What’s unique? Lavery believes Federal legalization could happen within 2-5-years triggering the transaction between Canopy and Acreage . It’s certainly plausible that the political map, and the number of R-Senate seats could change hands in 8-years (given numerous election cycles), hence the political insiders/board of directors of Acreage recommended the deal given their political prowess and anticipation of legalization at a much later point. This seems plausible, but it also implies that virtually no analyst (not even me) anticipates that the STATES act will make it past the current 116th Congress, but perhaps the 117th or 118th Congress instead.Lavery maintains an Outperform rating on Canopy stock, along with a $60 price target, which implies about 25% upside from current levels. (To watch Lavery's track record, click here)Bottom lineThe deal terms look good for Canopy shareholders (because an acquisition later is better than never), but from the perspective of ACRGF shareholders, it wouldn’t be surprising to see terms negotiated again in the month of June, as the triggering of the transaction could happen way out into the future (as opposed to something near-term). Since that’s the most probable outcome, the lack of arbitrage adjustments in ACRGF stock will lead to some disapproval from shareholders as most M&A transactions lead to an immediate arbitrage adjustment with a slight market discount (virtually all cases).This hasn’t occurred yet, which is why I’m expecting Canopy to pay even more to adjust the un-even dynamic of the transaction. Given the overwhelming dependence on this major acquisition to enter the U.S. market, I’m confident that Canopy will eventually find a path to both executing the transaction and gaining the necessary shareholder approval from ACRGF.Expectations among Canopy shareholders should shift towards higher dilution to make the transaction work long-term, but with a call option to enter the U.S. markets at a point when production has ramped more meaningfully in its Canadian grow facilities. This is still a major catalyst for Canopy shareholders long-term and should be viewed positively. Just keep in mind, that ironing out the details will be an arduous process for the foreseeable 12-months.Disclosure: The author has no position in Canopy Growth or Acreage Holdings stocks.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on CGC: * Canopy (CGC) Could Race Above $60, but Caution Is Warranted * Canopy Growth: Piper Jaffray Wishes Upon a Marijuana Star (But Will Its Dreams Come True?) * Canopy Growth (CGC): Is This Spanish Acquisition Too Good to Be True? More recent articles from Smarter Analyst: * Cannabis Stock Health & Recreation (HRVSF) Is Very Appealing Based on Long-Term Bullish Fundamentals * Cowen Counts the Points in Aurora Cannabis (ACB) Stock's Favor * 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
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.
Only a few days after Canopy Growth (CGC) acquired a Spanish licensed cannabis producer, the company has announced a proposed deal to enter the U.S. market via the right to purchase Acreage Holdings (ACRGF) in the future. The move has high hopes for the U.S. government to approve cannabis at the federal level and makes the multi-state operators (MSOs) in the U.S. as the most attractive stocks going forward.A Right That Might Not HappenDue to listing requirements by the Toronto Stock Exchange and the NYSE, listed companies can’t own illegal operations. Since cannabis is illegal at the federal level, Canopy Growth is prevented from owning a U.S. cannabis company. The recent Farm Bill allows the company to enter the hemp market and CBD, but not pot.For this reason, Canopy Growth has to make a deal that involves the right to purchase Acreage once federally approved. The company is paying $3.4 billion to buy Acreage with an upfront cost of $300 million for this future right.The deal involves a $2.55 per share upfront payment to investors for waiting plus an agreement to receive 0.5818 shares of Canopy Growth once the deal closes. At the current stock price of $46, Acreage shareholders have a right to a Canopy Growth stock worth $26.76 plus the $2.55 payment. The stock only trades right above $23 on the deal.The problem for shareholders is that the outcome is unknown. The U.S. is likely to approve cannabis in the future, but no guarantee exists. Not to mention, where Canopy Growth trades at that point is another high risk as the company has aggressive global expansion plans such as the recent deal in Spain.Other U.S. MSOs. While Acreage is listed as a leading MSO in the U.S., the company trails other companies like Harvest Health & Recreation (HRVSF). Acreage is listed as having agreements for cannabis-related licenses in 20 states with rights to 87 dispensaries and 22 cultivation and processing sites.Harvest Health has a deal pending with Verano that gives the combined company the right operate up to 200 facilities in 16 states with 123 dispensaries. Harvest Health expects to have 70 dispensaries and 26 cultivation and manufacturing facilities open by the end of 2019.The backing of Constellation Brands (STZ) provides Canopy Growth with the cash and shares to promote Acreage to offer up to $1.4 billion worth of shares for future acquisitions. The proposal suggests that the company will look to rollup smaller companies during the waiting period likely placing a premium value on sub $1 billion cannabis companies in the U.S.TakeawayThe key investor takeaway is that Canopy Growth is making the anticipated splash to enter the U.S. cannabis market, though via a highly delayed right to buy Acreage in the future. Investors shouldn’t expect other U.S. MSOs to accept similar deals in the future with such deals locking in values based on current prices.Canopy stock went up on the news and could breakout to new all-time highs above $60. Regardless, the better stocks remain the pure plays on the U.S. cannabis market. Acreage is now on the acquisition trail and the inevitable U.S. entry by the other large Canadian LPs either via similar rights to purchase deals or once the cannabis if federally legal will make the U.S. companies more valuable.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Disclosure: The author has no position in Canopy Growth stock.Read more on CGC: * Canopy Growth (CGC): Piper Jaffray Wishes Upon a Marijuana Star (But Will Its Dreams Come True?) * Canopy Growth (CGC): Is This Spanish Acquisition Too Good to Be True? * Canopy (CGC): Seaport Cuts Estimates, Reiterates Neutral on the Cannabis Stock More recent articles from Smarter Analyst: * Cannabis Stock Health & Recreation (HRVSF) Is Very Appealing Based on Long-Term Bullish Fundamentals * Cannabis Stock Canopy Growth (CGC) Stands to Gain from Potential Legalization in the US * Cowen Counts the Points in Aurora Cannabis (ACB) Stock's Favor * With Two Days to Go Before Amazon (AMZN) Earnings, this Top Analyst Weighs in on the Stock
Constellation Brands is boosting its U.S. beer business while betting that marijuana products will deliver big sales.
Canopy Growth's Acreage Acquisition Boosts SentimentThe gains The cannabis sector appeared to show optimism after Canopy Growth (WEED)(CGC) announced that it would acquire Acreage Holdings (ACRGF), a US multi-state cannabis operator with
Canopy Growth to Acquire Acreage Holdings(Continued from Prior Part)Canopy Growth jumps Canopy Growth (WEED) (CGC) announced that it will acquire Acreage Holdings for a total value of $3.4 billion, which led the company’s stock price to jump on
Proposed Deal Complements Canopy Growth's U.S. CBD Strategy With An Accelerated Pathway Into U.S. Cannabis Markets, Once Federally Permissible Deal Structure Expected to Provide Improved Access to Capital ...
FRANKFURT, Germany, April 18, 2019 -- Acreage Holdings, Inc. (“Acreage”) (CSE:ACRG.U) (OTC:ACRGF) (FSE:0VZ) and Canopy Growth Corporation (“Canopy Growth”) (TSX:WEED).
Canada-based Canopy Growth Corp. confirmed Thursday a deal for the right to buy New York-based Acreage Holdings Inc. in a deal that valued at $3.4 billion, when the production and sale cannabis becomes federally legal in the U.S. Canopy's stock soared 8.7% in premarket trade. MarketWatch had reported Wednesday, citing a source familiar with the negotiations, that the deal for the rights to buy Acreage was "98% done." Canopy said the purchase price represents a 41.7% premium over the 30-day volume-weighted average price of Acreage's subordinate voting shares. The deal includes a $150 million termination fee, payable by Acreage. "Today we announce a complex transaction with a simple objective," said Canopy Chief Executive Bruce Linton. "Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists." Canopy's stock has run up 59.5% year to date through Wednesday and Acreage's stock has climbed 17.5%, while the ETFMG Alternative Harvest ETF has rallied 36.7% and the S&P 500 has gained 15.7%.
Canopy Growth Corp. is not outright acquiring Acreage Holdings Inc., as reports said Wednesday, but it is preparing to pay billions for the rights to buy the U.S.-based pot company.
Acreage Holdings, Inc. (“Acreage”) (ACRG-U.CN) (ACRGF) (FSE:0ZV) announced that on April 17, its subsidiary, High Street Capital Partners, LLC entered into an agreement to acquire 100% of Deep Roots Medical LLC (“Deep Roots”), a vertically integrated cannabis operator in Nevada, for a total deal value of $120 million to be paid in common units and cash. Deep Roots marks Acreage’s entry into Nevada, increasing the company’s total state footprint to 20 (including pending acquisitions) - the largest in the US cannabis industry. With a population of three million, and tourism that attracts 43 million visitors per year, Nevada is estimated to generate nearly $800 million in legal cannabis sales by 2022, according to Arcview Market Research.
NEW YORK , April 17, 2019 /PRNewswire/ -- OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, today announced the first quarter 2019 performance ...
Acreage Holdings, Inc. (“Acreage”) (ACRG-U.CN) (0VZ.F) and Form Factory, Inc. (“Form Factory”) announced today the closing of the merger that was previously announced on December 6, 2018, pursuant to which Acreage acquired all of the issued and outstanding shares of Form Factory. According to the terms of the merger, Acreage issued 6.280 million subordinate voting shares at a deemed value of $25.00 per share. The transaction brings Form Factory’s expertise as a one-stop-shop to develop, manufacture, and distribute cannabis products of any form factor to Acreage’s 19-state footprint of cannabis-based consumer and medical products.
Is There More Upside to Planet 13 Holdings Stock?(Continued from Prior Part)Analysts’ recommendations Of the three analysts that follow Planet 13 Holdings (PLNHF) (PLTH), one analyst is favoring a “strong buy,” while the remaining two analysts
CORAL GABLES, FL / ACCESSWIRE / April 11, 2019 / When speaking about the marijuana stock market, we cannot help but bring the Canadian cannabis industry into the conversation. For quite some time, Canada has been leading the global charge in terms of advocating in favor of cannabis legalization. Although cannabis growers are typically the companies most people focus on, it would seem that there are a significant amount of companies with ancillary functions in the cannabis sector.
Is There More Upside to Curaleaf Holdings’ Stock Price?(Continued from Prior Part)Analysts’ recommendationsAmong the six analysts that follow Curaleaf Holdings (CURA) (CURLF), three recommended a “strong buy,” while three recommended a
Is There More Upside to Curaleaf Holdings’ Stock Price?Stock performance Curaleaf Holdings (CURA) (CURLF) has started 2019 on a stronger note. As of April 9, the company’s stock price has increased 83.0% since the beginning of the year. In
Acreage Holdings (“Acreage”) (ACRG-U.CN) (ACRGF), today announced the appointment of Corey Burchman, MD as Chief Medical Officer. Dr. Burchman will oversee development of an Acreage medical advisory board, assist in developing patient outreach programs, and serve as medical risk mitigator to the company’s product development and innovation. Dr. Burchman will report to Chief Operating Officer, Bob Daino.
Planet 13 and Wayland Group Posted Strong Performance Last Week(Continued from Prior Part)Stock performance Cannabis stocks were mixed last week. Of the seven companies considered for our analysis in this article, three have given positive returns,
Opposition to cannabis has come from an unexpected place in recent days -- blue-state America. Thus far, the states which have legalized pot all lean left, or at least center-left. Hence, it may have come as a surprise when legalization efforts faced roadblocks in two key blue states: New Jersey and New York.In New Jersey, the governor wants to grant legal status to cannabis. However, lawmakers canceled the vote since it does not appear to have enough support in the State Senate.New York faces obstacles in the state capitol and several localities. Governor Andrew Cuomo has indicated that he will miss the deadline to include it in April's state budget. Moreover, many counties, some which encompass metro New York City, have expressed interest in opting out of legalization.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Dangerous Dividend Stocks to Avoid This primarily affects stocks with weed-based operations in the state. Thankfully for Canopy Growth (NYSE:CGC) investors, its recent move into New York state involves the production of recently legalized hemp. However, these three smaller, U.S.-based marijuana stocks could face pain as these key states delay legalization: Innovative Industrial Properties (IIPR)Innovative Industrial Properties (NYSE:IIPR) stands out among other marijuana stocks by acting as a real estate investment trust (REIT). It earns revenue by owning greenhouses in industrial space and renting them out to growers.Also, due to its REIT status, it offers a dividend, something that most other marijuana stocks typically do not offer. Moreover, the company hiked the quarterly dividend to 45 cents per share last month, a yield of around 2.25%.However, with legalization efforts in New York tied off, IIPR stock could face setbacks. The company owns 13 properties total, two of them located in New York state. This comprises just over 15% of its total property. Interestingly, the San Diego-based firm owns more property in New York than in its home state of California.The company likely bought these properties in anticipation of legalization. Still, with both hemp and medical marijuana legal, it could pivot into those industries. Also, at a forward price-to-earnings ratio of 28.6, it trades at a lower multiple than other marijuana stocks.However, investors could still punish it in the near term for its relatively large stake in New York. Until New York's state government provides more clarity, investors should probably avoid IIPR. Acreage Holdings (ACRGF)The public may know Acreage Holdings (OTCMKTS:ACRGF) best for its group of backers. Its Board members include prominent politicians such as former Massachusetts Governor Bill Weld and former Canadian Prime Minister Brian Mulroney. Former House Speaker John Boehner, who was once an opponent of marijuana, also sits on the board.It may need this political firepower as it contends with its presence in both New Jersey and New York. New Jersey is home to its 135,000 sq. ft. cultivation facility. It also partnered with a licensed alternative treatment facility in the state, presumably on the assumption that New Jersey would legalize. In New York, it runs four dispensaries and a 70,000 sq. foot cultivation facility.Trading at 195 times sales, the market prices it for perfection. Before this news came out, analysts had expected Acreage to turn a profit next year. They also predicted that revenues would rise by 115%. Now, with the status of weed in question in both states, investors may become wary.Also, it has only traded on the OTC markets since November. After briefly plummeting to $12 per share in December, it has settled at about $22 per share, not far above its IPO price. * 10 Best Stocks for 2019: The Race Is On Acreage may benefit later from its substantial political influence. However, with its sizable presence in these states and its failure to move higher in its brief history, investors should stay away from ACRGF stock for now. Medmen (MMNFF)MedMen (OTCMKTS:MMNFF) describes itself as the "standard bearer" of the legal cannabis industry in the U.S. It owns facilities for cultivation, manufacturing and retail in five key states. Unfortunately, one of those states is New York, where it runs three dispensaries.MedMen also intends to buy PharmaCann, a private company that was awarded licenses to operate four dispensaries and a 128,000 sq. foot production facility in New York.MMNFF stands as an OTC stock trading at about $3 per share. However, it boasts a market cap of just under $1.5 billion and a price-to-sales ratio of 16.9. This multiple appears quite reasonable compared to other marijuana stocks. Analysts also forecast triple-digit revenue growth and possibly, a positive net income next year.However, a political setback in New York could delay that move to profitability. It also lessens the appeal of the PharmaCann merger, which both companies first announced in October. Given these doubts, investors should probably not buy until they see a clearer path in New York state. Concluding ThoughtsDelay or denial of legalization will profoundly affect all of these stocks. However, once these issues become old news, the stock could also benefit from the delay.The experience with marijuana stocks in Canada may serve as a lesson in this instance. Following legalization, a "sell the news" effect took place, and most cannabis equities plunged over the next two months. I have previously speculated that marijuana stocks would eventually become so-called "sin" stocks similar to Altria (NYSE:MO) and Constellation Brands (NYSE:STZ). Such equities tend to become dividend payers with low P/E ratios, drawing a much different type of investor.These legal setbacks could actually postpone such a fate, adding to the appeal of marijuana stocks, even the ones with a presence in New York and New Jersey. Hence, investors should not only seek to understand the short-term effects but also learn to look beyond them.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Stocks That Would Be Hurt By a Mexico/U.S. Border Closure * 7 A-Rated Healthcare Stocks for Industry Expansion * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever Compare Brokers The post 3 Marijuana Stocks to Watch as New York, New Jersey Delay Legalization appeared first on InvestorPlace.