|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||19.60 - 20.34|
|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||34.00|
Actor & comedian Tommy Chong weighs in on CBD outlook. This coming as Texas legalizes hemp production. Yahoo Finance's Zack Guzman & Sibile Marcellus, along with 'BigEyedWish' founder Ian Wishingrad join in on the conversation.
Nationwide luxury cosmetics retailer, Bluemercury is celebrating 20 years in business. Yahoo Finance's Zack Guzman & Heidi Chung, along with Independent Women's Forum Nan Hayworth discuss with Bluemercury Co-Founder Barry Beck.
The House of Representatives is expected to pass a bill making it legal for marijuana companies to use banks in states where weed is legal. Former U.S. Securities and Exchange Commission Attorney Ron Geffner warns it may go up in smoke in the Senate. He talks to Yahoo Finance's Adam Shapiro, Julie Hyman, and Entrepreneur Magazine Editor Jason Feifer.
Yahoo Finance dives deep into the cannabis industry's rapid expansion and where investors are looking for growth in the space. Join reporters Zack Guzman, Alexis Keenan Weed and Emily McCormick as they interview leaders of some of the biggest cannabis companies and report on what's next for the sector.
Cannabis stocks were mostly higher Wednesday, as investors awaited the results of shareholder votes on Canopy Growth Corp.’s proposal to acquire Acreage Holdings Inc. with the companies hosting separate meetings that kick off at 10 a.m.
Canopy Growth Corp. said late Wednesday that the company has U.S. operations related to hemp and cannabidiol, or CBD, in seven states and when at full capacity will cover more than 4,000 acres. Canopy Growth said that was the equivalent of 11,072 hockey rinks or nearly American 3,268 football fields. The company said that it was currently planting a mix of high-CBD hemp plants and industrialized hemp suitable for textiles, proteins and bioplastics. The update on its CBD operations arrived after the company announced that the landmark deal to acquire the right to buy U.S.-based weed producer Acreage Holdings Inc. for $3.4 billion in paper, pending the relaxation of U.S. federal prohibition on marijuana. Canopy Growth stock was up 0.8% in after hours trading. The stock closed up 1.74% during the regular session, as the S&P 500 index [spx] rose 0.3%.
NEW YORK, June 19, 2019 -- Acreage Holdings, Inc. (“Acreage”) (CSE: ACRG.U) (OTCQX: ACRGF) (FSE: 0ZV) today announced that, at the special meeting of Acreage shareholders (the.
Cannabis stocks are mixed, with market leader Canopy Growth Corp. gaining after it announced its latest growth moves ahead of Wednesday’s shareholder vote on its proposal to acquire Acreage Holdings.
Perhaps more than any other stock listed in the U.S. market, the fate of Canopy Growth Corp (NYSE: CGC) stock rests in the hands of the U.S. government. Canopy can be successful with or without U.S. cannabis legalization. But CGC stock needs America to legalize cannabis. In anticipation of U.S. legalization., CGC stock price is already extremely high relative to its current business.Source: Shutterstock Canopy recently committed $3.4 billion to a buyout of U.S. cannabis producer Acreage Holdings (OTC: ACRGF). Of course, the deal is contingent upon U.S. legalization of cannabis.Experts disagree on how many years it will be until the U.S. legalizes cannabis. But political pressure for legalization is mounting. The most recent polls by Gallup, Pew, Quinnipiac and others consistently suggest more than 55% of Americans favor legalization. However, cannabis may end up being one of the centerpieces of the 2020 U.S. presidential campaign. If it is, the 2020 election may be a win-win for the owners of CGC stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Tech Stocks to Buy for the Second Half of 2019 STATES ActThe Strengthening the Tenth Amendment Through Entrusting States Act of 2019 (STATES Act) is the key for Canopy Growth stock. The bipartisan bill is co-authored by Democratic presidential candidate Senator Elizabeth Warren. The STATES Act would essentially remove the federal government from cannabis regulation, leaving the issue up to individual states. The STATES Act would eliminate much of the risk from the cannabis business within the U.S. Today, U.S. cannabis producers are operating illegally under federal law, which conflicts with state laws that legalize cannabis.The STATES Act would potentially open up the flood gates for U.S. cannabis production. More critically, it would also free up banks to lend to cannabis companies. The National Association of State Treasurers recently adopted a resolution calling for "common-sense federal laws and regulations" for cannabis companies that are operating in accordance with state laws. Banks are itching to fund cannabis companies. The owners of CGC stock are chomping at the bit for Canopy to exploit its first-mover advantage in the U.S. market. What 2020 Means For CGC StockHistorically, the U.S. Democratic Party has favored cannabis legalization, while Republicans have opposed it. However, Piper Jaffray analyst Michael Lavery says that dynamic may shift dramatically in the 2020 election campaign.Lavery says cannabis could become one of the top five central issues of the campaign. Surprisingly, he says President Donald Trump may be forced to throw his full weight behind legalization."By supporting cannabis, Trump may be able to incrementally broaden his appeal with swing voters without alienating his base," Lavery says.Trump's ultimate opponent will be one of the primary factors determining whether Trump supports legalization.Joe Biden is currently the front-runner for the Democratic nomination, according to PredictIt. Biden hasn't been particularly supportive of the legalization movement in the past. In fact, Biden would potentially be a worst-case scenario for CGC stock price.However, Warren has rapidly closed the gap with Biden in the past three months and is now his strongest opponent. Warren would be a best-case scenario for CGC stock. Given that Warren is the co-author of the STATES Act, Lavery says her nomination would force Trump's hand on cannabis.In fact, there's even a scenario in which Trump could attempt to steal political credit from Warren on cannabis. If the STATES Act stalls in the Republican-controlled Senate, Trump could swoop in and get the job done."Mitch McConnell is a roadblock for legislation in the Senate, but Trump could use executive orders between now and the election to show support for the industry, potentially relating to cannabis banking or medical research," Lavery says. The Bottom Line on CGC StockCanopy Growth Corp is the best-positioned marijuana stock to benefit from U.S. legalization. However, the owners of CGC stock may not need to wait until November 2020 to see progress. They also may not need a Democrat to win the election. If Warren or another pro-legalization candidate gets the Democratic nomination, President Trump may use cannabis legalization as a political strategy in the election. In other words, Canopy Growth stock could be a big winner of the 2020 election, regardless of who wins the White House.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post America's 2020 Election Is a Win-Win for Canopy Growth Stock appeared first on InvestorPlace.
Canopy Growth's brands, technology and know-how is anticipated to provide Acreage with a significant advantage in an increasingly competitive U.S. market and fuel Acreage's growth. Acreage shareholders will benefit from Acreage's ability to achieve its growth strategy with an anticipated reduced cost of capital based on Canopy Growth affiliation. Canopy Growth shareholders will benefit from accelerated and turnkey access to the U.S. cannabis market upon the closing of the Transaction.
Broader markets received somewhat of a shock to the system in early May when President Trump announced that the U.S.-China trade dispute was far from being resolved any time soon. And many sectors have been choppy in the fast few weeks. One stock that has been in a downtrend since late April is Canada-based Canopy Growth (NYSE:CGC), a front-runner of the marijuana industry (MI).Source: Shutterstock As pot stocks are giving back some of their big gains from the last 12 months, it's quite hard to predict which stocks in the industry will perform well in this volatile market. CGC stock is expected to release Q4 fiscal 2019 earnings on June 20. Last quarter saw CGC's earnings come in significantly below expectations. And the stock is seeing weakness after a strong start to the year. Now that the reporting season is fast approaching, let's look at what may be next for the Canopy Growth stock price. Long-Term Tailwinds for Canopy Growth StockAs a diversified cannabis and hemp company, Canopy Growth is Canada's largest pot stock by revenue and market cap. It started trading on the Toronto Stock Exchange (TSE) in August 2016 and got a dual listing at the New York Stock Exchange in May 2018.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy Under $10 The global legal marijuana market size is expected to be over $65 billion by the end of 2025. Yet at present, the legalized MI is still at its infancy in Canada and almost non-existent globally. In December 2018, marijuana producers and investors cheered when the U.S. legalized hemp and hemp-derived ingredient cannabidiol (CBD), the non-psychoactive ingredient of marijuana.CBD is especially popular among consumers seeking relief from physical pain as many believe that CBD provides most of the health benefits of medical marijuana. Because hemp is now an ordinary agricultural commodity, Canopy Growth has obtained a license to process and produce hemp products in New York State.Canopy Growth is hoping become one of the first marijuana producers to have its products in the U.S. market through its partnership with the NY state-headquartered alcoholic beverages giant Constellation Brands (NYSE:STZ) which has already invested $4 billion into CGC stock.The two companies are currently developing cannabis-infused beverages for Canada, where experts believe they will be legal by 2020. This legalization of edibles is likely to act as a powerful catalyst for the major cannabis companies.Although it is too soon to predict how the legal hemp production in the U.S. will affect CGC's bottom line, Canadian leaders like Canopy Growth are likely to become the first ones to be positively affected by major North American or global developments that may boost the sales and the use of recreational or medicinal marijuana. This, in turn, would also boost the stock price of CGC.However, it will probably be several quarters before the U.S.-related investments would pay off and turn into profits. Short-Term Headwinds for CGCMany investors are worried that the initial hype surrounding the industry may possibly be decreasing. Therefore, CGC's upcoming earnings report will be important not just for the company but also for the industry, as not everyone is convinced that Canadian recreational weed sales will remain strong.And if CGC's numbers do not come out as high as expected, then there would not be much momentum for Canopy Growth stock or the cash-intensive industry as a whole. Investors are beginning to get concerned about how increased spending is reducing earnings and cash flow numbers. So far, cannabis stocks have largely been driven by hype and publicity, such as the investment by Constellation Brands in CGC.Indeed, many analysts are concerned that the valuations in this new consumer market are extremely high, that most of the cannabis stocks are going through cash fast and that many are not likely to achieve profitability in the near future.In January, CEO Bruce Linton said that Canopy Growth did not plan to acquire any more Canadian cannabis assets. In other words, the company is possibly regarding the growth levels in Canada as not enough for the ambitious expansion plans.If further growth does not come from the rest of the world and especially the U.S., Wall Street is likely to start devaluing most of these pot companies substantially. Thus, if there were legal issues, especially in the U.S., regarding the potential of legalization of marijuana at the federal level, the industry would take a hit.One important benefit of the investment by STZ, which now has a 37% interest in CGC, has been that Canopy Growth has the financial muscle to pursue acquisitions and invest in R&D to grow its production space. However, not all potential deals are likely to benefit CGC shareholders immediately.For example, the group has an agreement in place to acquire U.S.-based Acreage Holdings (OTCMKTS:ACRGF) for $3.4 billion. However, this acquisition can only happen if cannabis is legalized federally in the U.S. Would investors give Canopy Growth a blank check for an open-dated deal? Takeaway for Canopy Growth StockInvestors may have to wait until Canopy Growth's earnings report later in the month to have a better view on the developments in the industry as they affect CGC stock. Analysts will pay special attention to the sales figures and the level of operational loss.For Canopy Growth stock, it may be a long and choppy journey back to the all-time high of $59.25 as rich valuations in this commodity-based consumer market may take a hit in the coming months.There might also be profit taking and investor uncertainty about the general markets as well as the weed industry. As we enter the second half of the year, could investors become more risk averse and shy away from these high-growth yet potentially risky stocks for their portfolios?In addition, investors who look at the CGC stock chart may be raising their eyebrows as currently the stock is down from a 2019-high of $52.74 reached on Apr. 29 to low-$40's.Those who bought at the high might not be too happy, but investors who had the courage to step in at the end of 2018 when CGC stock saw $25.26 are still in pretty good shape. If you are an investor with paper profits, should you consider locking in some of those gains now?At present, the short-term technical charts, especially the trend lines and support and resistance levels, are telling investors to exercise caution.Of course, Canopy Growth stock may initially rally around the quarterly report, and a potential investor could miss out on some profits for not having bought into the CGC shares early on. Or there might be a few other newsworthy moments that may get investors to set their sights back on Canopy Growth stock. However, I do not think such potential up moves will be long-lived. * 7 Stocks to Buy As They Hit 52-Week Lows If you are considering investing in Canopy Growth, you may want to start building a position between the $27.5-$32.5 levels, and expect to hold the stock for several years. In the meantime, expect a lot of volatility in CGC share price.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy As They Hit 52-Week Lows * 4 Antitrust Tech Stocks to Keep an Eye On * 5 Gold and Silver Stocks Touching Intraday Highs Compare Brokers The post CGC Stock Will Be Volatile Heading Into Earnings appeared first on InvestorPlace.
The nascent marijuana industry has made significant strides over the past several years. But the once-illicit marijuana market still has hurdles to cross before unlocking its full potential, according to executives at some of the world’s leading cannabis companies.
Canopy Growth is doubling down on hemp after moving forward with investing up to $150 million to cultivate in New York state. Now, up to seven states could follow.
One of the big arguments against cannabis companies is the high valuations of marijuana stocks. But lately the valuations of marijuana stocks have dropped.Take Tilray (NASDAQ:TLRY) as an example (or perhaps a poster child!). Since hitting $100 in mid-January, the shares have plunged to $36.30. Keep in mind that the stock's 52-week high is $300.Now picking a bottom is always risky. This is especially the case with a high-risk segment like cannabis.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Stocks for 2019 -- So Far Yet I still think there are some interesting opportunities emerging. Consider Canopy Growth (NYSE:CGC). CGC is certainly among the tier-1 players in the cannabis world. CGC stock price has taken a hit. But the selloff of CGC stock has been nowhere near that of many other, smaller players. Since the end of March, CGC stock price has dropped from $50 to $40.CGC is certainly facing some nagging issues. Managing hyper growth is far from easy. There is also the challenge of integrating the many companies it's acquired and executing its aggressive global expansion strategy.And last Friday, the FDA held a hearing on the implications of cannabidiol (CBD). This is a compound found in the cannabis sativa plant, which does not produce a high. The hope is that CBDs can alleviate a number of medical problems, including pain and anxiety.It looks like the FDA is skeptical about using CBDs for dietary supplements. But on the positive side of things, it is receptive to looking at how they can be used to enhance healing.For the most part, that is good news for CGC stock. For the CBD industry to be a success, the government must create clear-cut regulations, while the comp0und's efficacy also has to be clear. Such developments will enable the compound to have a durable, long-term impact, boosting CGC's results and Canopy stock in the process.CGC has more than enough resources to deal with potential regulations, so new rules shouldn't hurt CGC stock. And no doubt, increased regulation of the cannabis sector should lead to strong barriers to entry in the sector, limiting CGC's competition and lowering the risks facing Canopy stock. The Bottom Line on CGC StockWhile bad news for marijuana stocks is circulating, there are also some encouraging developments. Perhaps the most promising is the move toward legalization of cannabis for recreational purposes in Illinois. The law allows residents who are 21 or older to carry as much as 30 grams of marijuana and to grow cannabis as long as they are doing so for medical purposes. Other states are likely to follow in Illinois' footsteps.For CGC stock, these moves should be a big-time catalyst. Note that the company is in the process of acquiring Acreage Holdings (OTCMKTS:ACRGF). In the U.S., Acreage is the largest vertically integrated owner of cannabis licenses across 20 states, and it owns a cannabis retail store chain called The Botanist.The deal is structured quite favorably for the owners of CGC stock. Note that it is contingent on the legalization of marijuana on a federal level. In other words, CGC should be well-positioned to benefit from the U.S. market if cannabis is legalized throughout the country.But in the meantime, CGC stock will benefit from the company's growth in Canada and its growing medical business. What's more, CGC stock price should also get a lift from Canopy's partner, Constellation Brands (NYSE:STZ), which has invested a hefty $4 billion in CGC and will help it with distribution, deals, and marketing.In other words, for investors looking for a play on the cannabis opportunity, Canopy Growth stock really does look like a good choice right now.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post Should Investors Buy Canopy Stock as Cannabis Legalization Gains Momentum? appeared first on InvestorPlace.
Despite the disapproval of a large investment firm, Acreage Holdings (ACRGF) obtained very high shareholder approval for a highly questionable deal with Canopy Growth (CGC). The stock is actually down since announcing the deal back in April suggesting the market disagrees with shareholders.Strong ApprovalAccording to Acreage, an aggregate of 91% of eligible votes have voted for the deal with Canopy Growth. Oddly, insiders felt the pressure to agree to extend lockup agreements from shares sales in alignment with the completion of the arrangement with Canopy Growth and the subsequent acquisition of the outstanding Acreage shares.Since going public last year, the stock has generally traded above $20 so insiders selling below $20 would’ve been absolutely absurd anyway. In addition, the merger would offer a substantially higher price, if it occurs. The only real meaningful lockup is one where Acreage management holds shares long after the uncertain deal closes.Remember that the acquisition deal includes a $2.55 up-front cash premium to account for the uncertain timing of the right to purchase the shares of Acreage on federal approval of cannabis. Shareholders also get 0.5818 shares of Canopy Growth that a now valued at $24.78 per share based on Canopy Growth trading at $42.60. So naturally, insiders selling at these prices before collecting the potential 50% upside in the stock with a completed deal would be highly unacceptable to the market.Shareholders Have To WaitThe biggest complaint by Marcato Capital Management LP was the transfer of relatively cheap U.S. cannabis focused shares for a rather large conglomerate that trades at a massive premium valuation to Acreage. Shareholders don’t appear to agree, but most investors probably intend to flip their shares for the initial deal premium.Unfortunately for shareholders, the deal is going to take years to finalize. Influential Cowen cannabis analyst Vivien Azer predicted on CNBC that the States act wouldn’t get approval in the next year. The timing of federal legalization remains highly uncertain.If one has to hold a cannabis stock the next 1-2 years, the clear best option is via unrestricted access to the potential gains of a multi-state operator (MSO) in the U.S. market. Acreage reported that Q1 revenues surged 487% to $12.9 million with pro-forma revenues soaring to $33.1 million.Those numbers hardly matter to a company being bought by a stock with a combined market cap approaching $20 billion including the $3+ billion value of Acreage. The combined business is more tied to Canada and global growth than the rapid expansion in the largest U.S. market.TakeawayThe key investor takeaway is that Marcato Capital appears correct predicting the acquisition structure doesn’t offer value to shareholders of the MSO. Regardless, the shareholders appear set to approve the right to purchase deal with an uncertain timing.The best option for frustrated investors is to find another MSO hooked to the expected growth in the domestic cannabis market. Those stocks are likely to get a bigger boost from federal approval of cannabis along with an uplisting of the stock to a major U.S. stock exchange, than Acreage Holdings tied into the much larger Canopy Growth.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more: Cannabis Stock Acreage Holdings Appears to Be Cashing out at the Wrong Time More recent articles from Smarter Analyst: * Aurora Cannabis (ACB): Investors Seem to Be Missing the Latin American Opportunity * Top Analyst Bullish on Alibaba (BABA) Stock Following Recent Corporate Updates * Canopy Growth (CGC): The Emperor Isn’t Wearing Any Clothes * Should Investors Buy Facebook (FB) Stock After Its Cryptocurrency Launch? Top Analyst Weighs In
Like many cannabis stocks, Canopy Growth (NYSE:CGC) fell in Monday trading due to an FDA meeting on CBD. Marijuana stocks fell as speakers at this inquiry offered conflicting views of the marijuana industry. Although the hearing will likely not stop the march toward eventual legal status, it could motivate investors to call the valuation of CGC stock into question.Source: Shutterstock The FDA Hearing Hit CGC StockLast Friday, the FDA conducted its first-ever hearing on cannabidiol (CBD). More than 100 speakers offered their views on the substance, with researchers, health professionals, supporters, opponents and growers among those who spoke to the regulatory body. The 2018 Farm Bill, which legalized hemp, did not include CBD. Hence, the FDA maintains that CBD is a drug. Therefore, nobody can legally add CBD to food, beverages, or supplements in an interstate commerce setting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCGC stock and other marijuana equities fell as speakers spoke of minimal standardization and a possible lack of concern about safety or effectiveness. Not all of the news was bad. The hearing also found strong demand for CBD. Moreover, about 65 million Americans have tried the product, and 63% felt it was effective. Canopy's Growth Will See Few EffectsI think this changes little for Canopy. CGC remains the leading cannabis company and demand remains high. Moreover, political trends unmistakably point to the eventual removal of the Schedule I status for marijuana.In Texas, where I reside, the Lieutenant Governor managed to block a decriminalization bill for marijuana. However, this came over the opposition of most Texans and even most in his party. I see this as one of the last stands of the weed prohibitionists. The march for legal status continues, and such setbacks may delay the legalization trend, but they will not stop it.Nor will it stop CGC. Between Canopy Growth's size, its hemp production in New York State, and now, the option to buy Acreage Holdings (OTCMKTS:ACRGF), CGC should emerge as the leading marijuana company once weed becomes legal in the U.S. CGC Stock May Suffer Even If Canopy ProspersNonetheless, this may not translate into gains for Canopy Growth stock. The CGC stock price has fallen to levels not seen since marijuana stocks began to recover in January. This presents a problem for evaluating CGC. With valuations still in the stratosphere, Canopy stock remains a momentum play. Monday's closing price of $38.73 per share comes in only slightly lower than the $39.66 per share low reached on April 11th. If that level does not hold, the next historical price floor does not appear until it sees the mid-$20s per share level.As I stated previously, the likely eventual path for Canopy Growth and peers such as Aurora Cannabis (NYSE:ACB) is one resembling that of tobacco producer Altria (NYSE:MO) or CGC investor Constellation Brands (NYSE:STZ). Eventually, it will become a stock trading at a low multiple, generating robust dividends but little in the way of excitement.Still, since CGC stock trades at over 115 times sales, it has a long way to go before reaching that point. The Bottom Line on CGC StockThe FDA hearings will likely not affect the trend toward legalization, but it could cast doubts upon the valuation of CGC stock. The findings rehash both the benefits and the concerns with the marijuana legalization trend. While it gives some of the few remaining opponents some ammunition, CBD and other forms of cannabis remain in demand. * 6 Big Dividend Stocks to Buy as Yields Plunge Still, the valuation of CGC stock makes the equity dangerous. It could become deadly for investors if bad news starts to affect the price of CGC. If Canopy Growth stock fails to establish a floor at close to $39 per share, the downtrend may have only just begun.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post FDA Hearing Won't Hurt Canopy's Growth, But It Could Hit CGC Stock appeared first on InvestorPlace.
Canopy Growth (NYSE:CGC) likes to be called the most corporate of the big marijuana players. Its market cap is a robust $14 billion-plus, and it signed a $4 billion tie-up last year with Constellation Brands (NYSE:STZ), the U.S.-based wine and beer company.Source: MarihuanayMedicina via FlickrThe stock market has blessed that deal. Constellation stock has held strong even as it has sold brands, the shares rising over 20% in April alone.So why hasn't Canopy reported on its March quarter yet?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe reason may be the most bullish call of all. Canopy's American PlanCanopy should report earnings on June 26, when it's expecting a loss on $72 million in sales, so it can complete the acquisition of Acreage Holdings (OTCMKTS:ACRGF), a New York company that is awaiting the "big bang" of U.S. pot legalization. * 7 Bank Stocks to Leave in the Vault Canopy values Acreage at about $3.4 billion, but can't just buy it because its product is illegal in the U.S. The plan is to give Acreage shareholders $300 million plus the right to buy it later for stock once legalization goes through.After a concerted campaign by Canopy, Acreage has signaled that 91% of its shares support the deal. A shareholders meeting to approve it is now scheduled for June 19, which would clear the decks for the numbers to come out.Acreage reported revenues of just $12.9 million for its first quarter. It was founded in 2014 as High Street Capital Partners and has been grabbing all the legal cultivation rights and U.S. sales rights it can get since Colorado made pot legal in 2012. It may be best known for having recruited former House speaker John Boehner to its Board of Advisors. Martha Stewart has also invested in Canopy stock, adding her name to the company's star power.The idea is that, as each state moves toward making recreational marijuana legal, Acreage is ready, and the American market is wide open for Canopy. Canopy RealityDeals like the one between Canopy and Acreage have, if anything, slowed the momentum of legalization.Some legislators don't like the idea of Wall Street sharpies making billions while black street dealers languish in prison. Minority legislators are demanding "social equity." While legalization is a "top 10" legislative goal for New York Governor Andrew Cuomo, who has amended his own bill to expunge old pot convictions, it faces a June 19 deadline with no certainty of passage. New Jersey ended its legislative session without passing a marijuana bill.All this now matters to Canopy Growth shareholders. The pace of U.S. legalization will determine the pace at which it can acquire Acreage and grow its operations.Canopy itself continues to ramp up its operations. It has launched plans to produce industrial hemp, bought a company that makes skin creams with cannabis-derived CBD in it, and created an investment arm. It is bringing in a new chief financial officer from Constellation.But it's all going nowhere fast unless American governments bless it. Currently 10 states allow recreational pot, and 33 have some legal type of medical marijuana law. But federal law still classifies marijuana alongside heroin as a schedule one drug -- the classification for drugs with no perceived medical use and a high potential for abuse. The Bottom LineNew investors in Canopy Growth are betting that the U.S. wall against marijuana falls in 2021, as legalization continues state-by-state. Opponents continue to call marijuana addictive, unhealthy for mind and body, a destroyer of lives and a crime risk.Canopy, by putting business suits and plans behind the industry, may have gained some currency on Wall Street. But until it breaks through in Washington D.C., financial gains will be limited.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right * 7 Bank Stocks to Leave in the Vault * 7 Stocks for You to Profit From (Legal) Insider Trading Compare Brokers The post Canopy Growth Stock Needs Outside Help to Keep Growing appeared first on InvestorPlace.
As far as acquisitions go, Canopy Growth's (NYSE:CGC) May 22 announcement that it would pay $55 million for This Works, a London-based company that sells high-quality natural skincare and sleep-solution products, had minimal effect on Canopy stock.Source: Shutterstock It's not the size of the deal that matters, but what it implies about the future of cannabis. The flower that you smoke might be the product that gets most of the focus, but it is the ancillary stuff that is going to drive the cannabis industry for years to come. InvestorPlace - Stock Market News, Stock Advice & Trading Tips People Don't Get Quality Sleep Buying This Works gives Canopy Growth a platform into the skincare and sleep-solution markets in the UK and other parts of the world. However, it is the sleep-solution products that drive this acquisition. * 7 Stocks to Buy for Monster Growth In a November discussion with CNBC's Jim Cramer, Canopy Growth Co-CEO Bruce Linton discussed the sleep-aid market, one of four areas the company is looking to disrupt: the others are opioids, sports recovery drinks, and pot for pets. Linton believes that cannabis can replace Ambien as the primary go-to for people who have trouble sleeping. It's said that THC helps you sleep better with less time spent in the REM stage which is known to cause nightmares. "We believe CBD has the potential to disrupt the cosmetic and sleep solution industries and have been working for years to build and establish the right entry point into this opportunity," Linton said in Canopy Growth's press release announcing the deal. "As soon as we met with Dr. Persaud and her team, we knew they were the right partner to embark with on this journey." Sleep Apnea and Canopy StockIf you've ever considered buying ResMed (NYSE:RMD) stock, you're likely familiar with how big the sleep market is. In Resmed's most recent 10-K, the company spells out the demand for its sleep apnea products: "A long-term epidemiology study published in 2013 estimated that 26% of adults age 30-70 have some form of obstructive sleep apnea. In the United States alone, this represents approximately 46 million people… Another study published in 2018 estimated that mild to severe sleep apnea impacts more than 936 million people worldwide, of which, it was estimated that more than 424 million would have moderate to severe sleep apnea."In a high tech world where our brains are running 24/7, people aren't getting a good night's sleep and that directly affects their productivity at work the next day. Linton knows that if Canopy Growth can demonstrate the effectiveness of CBD-infused sleep products for improving the quality of sleep, he's sitting on a gold mine. While there's going to be competition in this area, acquiring This Works gets the ball rolling that much sooner. The Bottom Line on Canopy StockI've always liked Canopy Growth's tie-up with Constellation Brands (NYSE:STZ) because it gives Linton and the rest of his management team the confidence to think bigger. Canopy Growth is no longer just a company that produces cannabis; it's an industry disruptor. Its focus on four specific areas for its disruption provides tremendous opportunities for the company and its shareholders.Buying This Works demonstrates that Linton understands that it's not about where the puck is right now -- the sale of cannabis flower and concentrates -- but rather where the puck is going -- cannabis-infused drinks, edibles, sleep solutions, CBD for pets, reduction in opioid use, etc. -- in the future. This latest deal pales in comparison to its tentative acquisition of Acreage Holdings (OTCMKTS:ACRGF). That being said, if you own CGC stock, you ought to be very happy about the direction of the company.Not content to just sell pot itself, Bruce Linton's tossing a wider net, and someday that's going to translate into significant profits. Forget about the production numbers of the latest quarter and focus on where Canopy Growth is heading. That's what's truly exciting. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post This Latest Acquisition Gives a Glimpse into the Future for Canopy Stock appeared first on InvestorPlace.
Acreage Holdings, Inc. (“Acreage”) (ACRG-U.CN) (ACRGF) (0VZ.F) today announced its management will attend four institutional investor conferences in June 2019. Kevin Murphy, Founder and Chief Executive Officer, will participate in the “Crossing the Border for the Next Opportunity” panel at 8:45a.m. (EDT). Oppenheimer’s Annual Consumer Growth & E-Commerce Conference to be held in Boston, MA from June 18-19 at the Four Seasons Hotel. Kevin Murphy, Founder and Chief Executive Officer, will present on Tuesday, June 18 at 1:20p.m. (EDT).
Cannabis stocks fell Wednesday, weighed down by weakness in the broader markets and disappointment about some of the latest earnings from the sector.
Since becoming listed at the New York Stock Exchange in May 2018, Canada-based Canopy Growth's (NYSE:CGC) stock has rewarded investors richly. So far in 2019, CGC stock is up almost 65%.Source: Shutterstock CGC is expected to release earnings on June 20. Now that the earnings season is fast approaching, let's look at what may be next for the CGC stock price.Here are three pros to Canopy Growth stock and three cons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Three Pros for CGC StockIndustry Leadership in Canada: As a diversified cannabis and hemp company, Canopy Growth is one of the industry leaders in Canada. It started trading on the Toronto Stock Exchange (TSE) in August 2016.During CGC's last earnings call in February, investors noted that sales from the black market in Canada are now shifting to legal online sales, i.e., to the retail sites of Canopy Growth and other major companies in the industry.The company also has operations in over a dozen countries in five continents. CGC's investments in these overseas markets are likely to give it a head start globally, too. However, the details about the worldwide operations are somewhat sketchy as they do not yet contribute to revenues.In other words, the legalized Marijuana Industry (MI) is still at its infancy in Canada and almost non-existent globally. Canadian leaders like Canopy Growth are likely to become the first ones to be positively affected by major North American or global developments that may boost the sales and use of recreational or medicinal marijuana. This, in turn, would also boost the stock price of CGC. * 10 Best Stocks to Buy and Hold Forever Increasing U.S. Liaisons: In August 2018, when the NY state-headquartered alcoholic beverages giant Constellation Brands (NYSE:STZ) announced a $4 billion investment into CGC, Wall Street took notice. STZ now holds a 38% stake in the company. At the time, this investment sent the entire cannabis sector on a month-long rally.In December 2018, the U.S. legalized hemp and hemp-derived ingredient cannabidiol (CBD), especially popular among consumers seeking relief from physical pain. Because hemp is now an ordinary agricultural commodity, Canopy Growth has now obtained a license to process and produce hemp products in New York State.Although it is too soon to predict how the legal hemp production in the U.S. will affect CGC's bottom line, analysts believe that the partnership between Canopy Growth and Constellation Brands is the area to watch. The two are currently developing cannabis-infused beverages for Canada, where experts believe they will be legal by 2020.However, it will probably be several quarters before the U.S.-related investments would pay off and turn into profits.Recent Acquisitions: One other important benefit of the investment by STZ has been that Canopy Growth now has a massive cash horde, which allows it to pursue acquisitions and invest in R&D to grow its production space.On May 22, CGC announced the acquisition of This Works, a U.K.-based well-being company, for $73.8 million in cash. This Works manufactures and sells natural skincare and sleep solutions to customers in 35 countries.As CBD oils rises in popularity, this acquisition enables Canopy Growth to grow its brand among CBD-infused wellness products and to reach a broader audience internationally. Yet, this is a small transaction that may not have too much positive bottom line implications for shareholders in the near term.The company's recent agreement for acquiring the rights to the future purchase of U.S.-based Acreage Holdings (OTCMKTS:ACRGF) is another example of how Canopy Growth is trying to solidify its position in MI.At the federal level, marijuana is still illegal in the United States and remains a Schedule I drug. This $3.4 billion cash and stock deal gives Canopy Growth the means to enter the U.S. market should federal legalization occur.Although CGC stock was initially up following the announcement, many analysts do not regard it as a done deal until the U.S. legalizes marijuana. And Wall Street does not know if or when this will happen. It is possible that activist investors may block the deal.In other words, the various acquisitions the company follows are rather long-term plays for Canopy Growth stock that may mean more for shareholders in years to come, as opposed to soon. Three Cons for Canopy Growth StockMixed Results From Its Main Competitor: On May 15, Aurora Cannabis (NYSE:ACB), one of the main competitors of Canopy Growth, released mixed earnings result, which initially sent down ACB and CGC shares as well as other weed stocks.Despite 367% year-over-year (YoY) growth in revenue, ACB missed analyst estimates by a wide margin. Whenever Wall Street doubts whether any of the weed companies can deliver the expected growth numbers, the overall industry gets penalized.Therefore, many investors may decide to wait to hit the"buy" button on CGC stock, until they have seen the next earnings result in June. At present, the bulk of CGC's revenue comes from the recreational side of the industry (as opposed to the medicinal side).So Wall Street will be keen to analyze whether Canopy Growth will grow the recreational sales it has achieved last quarter. In its last report, the company had logged a 282% increase in quarterly revenue, mostly thanks to the growth in the recreational marijuana market in Canada.Could the Hype Surrounding the Industry Be Decreasing?: CGC's upcoming earnings report will be important not just for the company but also for the industry, as not everyone is convinced that Canadian recreational weed sales will remain strong.And if CGC's numbers do not come out as high as expected, then there would not be much momentum for Canopy Growth stock or the cash-intensive industry as a whole. So far, cannabis stocks have largely been driven by hype and publicity, such as the investment by Constellation Brands in CGC.Indeed, many analysts are concerned that the valuations in this new consumer market are extremely high, that most of the cannabis stocks are going through cash fast and that these companies, including Canopy Growth, are not likely to achieve profitability in the near future.In January, CEO Bruce Linton said that Canopy Growth did not plan to acquire any more Canadian cannabis assets. In other words, the company is possibly regarding the growth levels in Canada as not enough for the ambitious expansion plans.If further growth does not come from the rest of the world and especially the U.S., Wall Street is likely to start devaluing most of these pot companies substantially. Thus, if there were legal issues, especially in the U.S., regarding the potential of legalization of marijuana at the federal level, the industry would take a hit.For example, if the New York and Toronto Stock Exchanges where CGC stock is dual-listed does not allow the acquisition of Acreage Holdings by Canopy Growth, then the CGC stock price would be adversely affected.Shorter-Term Technical Analysis: The month of May has not been a good one for Canopy Growth stock. On April 30, it saw an intra-day high of $52.74. Since then, the stock price has been falling. On May 20, it hit a monthly low of $43.02.It is also important to note that on Feb. 4, Canopy Growth stock saw an intra-day high of $51.81. In other words, between early February and the end of April, the stock has been trading in a wide range, approximately between $52 and $42. And Canopy Growth stock has encountered substantial resistance near the $50's level.CGC stock's short-term technical chart looks weak, pointing to the possibility for more downside around the corner. Expect nearer-term trading to be choppy at best, possibly until the earnings announcement date in late June. * 7 Stocks to Sell After Earnings Destroyed Their Long-Term Stories At this point, the unknown outcome of the Acreage Holdings deal, as well as the growth (or lack) of the recreational market in Canada, are likely to keep CGC stock from rallying over $50. Furthermore, if there is any broader market weakness in Canadian stocks, say due to market worries over U.S.-China trade wars, CGC stock may also be adversely affected.After the earnings results, if you still believe in the bull case for Canopy Growth stock, you might consider waiting for a better time to get long, such as around the low $40's or even mid-$30's levels. The Bottom Line for CGC StockI am of the camp that the rich valuations in this commodity-based consumer market may take a hit in the coming months. There might also be profit taking and investor uncertainty about the general markets as well as the weed industry. In addition, the short-term technical charts, especially the trend lines and support and resistance levels, are telling investors to exercise caution.Of course, the stock may initially rally around the quarterly report, and a potential investor could miss out on some profits for not having bought into the CGC shares early on. However, I do not think such a potential up move will be long-lived.If you are considering investing in Canopy Growth, a front-runner of the marijuana industry, you may want to start building a position between the $30-$35 levels, and expect to hold the stock for several years.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post Should You Buy Canopy Growth Stock Prior to Earnings in June? appeared first on InvestorPlace.
The marijuana stocks trading on major U.S. exchanges are following similar trajectories this year. Many of the group's marquee members rallied in the first four months of the year, but the recent shift away from riskier assets has pinched some cannabis stocks.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsCanopy Growth Corp. (NYSE:CGC) is one weed stock underscoring the aforementioned trend. CGC stock is up more than 65% year-to-date, even though CGC stock price has fallen by almost 8% in May. Canopy stock has a market cap of $15.5 billion as of May 28, putting it in mid-cap territory. * 7 Stocks to Buy for June CGC stock, like other marijuana stocks, is viewed as a growth play. as the cannabis market is still in its early innings of expansion. However, the dynamics of the cannabis market are shifting rapidly, putting some burden on cannabis companies to justify their lofty multiples and valuations. While some marijuana stocks entice investors with growth prospects, not all cannabis makers are fundamentally sound.Canopy stock is one of the more fundamentally impressive names in the burgeoning cannabis arena, and the company is taking steps to expand its already enviable market share in cannabis. Making MovesOne of the catalysts for Canopy Growth stock is the company's efforts to make inroads into the pharmaceuticals market, using its CBD products. To that end, earlier this month, Canopy acquired U.K.-based CBD-product maker This Works for about $54 million."This acquisition is a key aspect of a multi-faceted hemp and CBD strategy as Canopy Growth continues to build upon its vertically-integrated production and marketing platform," Canopy stated.This Works makes CBD-infused products, including deep sleep pillow spray, morning expert hyaluronic serum, and skin deep dry leg oil. While it may take some time for a $54 million deal to make an impact on CGC stock, the company's move into a more consumer-facing part of the CBD space shows Canopy management is looking to diversify its product mix, which remains focused on recreational cannabis.Among the biggest moves the company is attempting to make, and one that could be a boon for CGC stock, is a foray into the lucrative U.S. cannabis market. Earlier this year, Canopy offered to buy Acreage Holdings (OTC:ACGRF) for $3.4 billion. The yet-to-be-completed deal is a sign that Canopy is looking for ways to bet that cannabis will be increasingly legalized in the U.S."Canopy would make a $300 million cash payment to Acreage stockholders--worth about $2.55 per Acreage share--if shareholders approve the deal," reports Barron's. "Canopy would then wait for pot to become federally legal in the U.S. before taking control of Acreage with an exchange of 0.5818 Canopy shares for each share of Acreage stock. The total value, the companies say, is worth 40% more than the Acreage share price before the deal was announced."Of significant importance for Canopy Growth stock is the fact that the company is enhancing one of its core competencies: cultivating cannabis. The owners of CGC stock may need to be patient on this front, but the company's improved cannabis manufacturing efforts could have a positive impact on Canopy stock next year."There are still cultivation and post-harvest processes that need to ramp and normalize at both B.C. greenhouses," said BMO Capital markets analyst Tamy Chen in a recent note. "In addition, Canopy is ramping another sizable greenhouse in Quebec. We believe it takes multiple harvests to develop the knowledge that will improve yields and lower cost per gram." The Bottom Line on CGC StockGiven the rich valuations reflected by CGC stock price, the company cannot afford even minor missteps over the near-term because skittish investors could react in knee-jerk fashion by dumping Canopy stock. That is a familiar scenario for many growth companies in exciting, fast-growing market segments.Assuming the deal for Acreage Holdings is approved and Canopy gets a highly sought after U.S. footprint, that would be a major boon for Canopy Growth stock and the U.S. domestic cannabis industry at large.Over the near-term, investors considering Canopy stock should stay informed about news on Capitol Hill regarding the fates of the Secure and Fair Enforcement (SAFE) Banking Act and the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, two pieces of legislation that, if approved, could speed the legislation of cannabis and CBD across the U.S.Todd Shriber does now own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post Canopy Growth Stock Is an Intriguing Cannabis Name appeared first on InvestorPlace.
Cannabis stocks were mostly higher Tuesday, as investors braced for a Friday hearing by the U.S. Food and Drug Administration on how to regulate cannabis and its popular ingredient, CBD.