|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.8918 - 0.9283|
|52 Week Range||0.4880 - 3.6210|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Cannabis stocks rose Thursday, led by Aleafia Health Inc., which rallied after announcing the closure of a $40. 25 million convertible debt offering that will bolster its balance sheet and help grow its business.
In its short history, Aleafia Health (ALEAF) has went through several periods of rapid increase in its share price, and not too long afterwards, a rapid decline in its share price.After plunging from around $2.40 per share in the latter part of September 2018, Aleafia Health plunged to about $0.94 per share, finally finishing 2018 at close to $1.03 per share. From then until mid-February 2019, it once again jumped, this time to a double top of $1.94, before once again reversing direction, losing all its gains on the year, falling to $1.00 as I write.With a triple bottom of about $1.00 per share since the beginning of the year, it's apparent if Aleafia drops below the $1.00 mark, it's almost certain to plummet below what it's floor has been since the beginning of the year. On the other hand, if it once again manages to hold at that level, we'll probably see it take another upward run.The major reason for the extreme volatility in the stock, beyond being in a volatile sector at this time, is because it has yet to secure enough domestic and international supply agreements to provide a more visible, predictable performance. It also needs to complete its current expansion projects that will boost production capacity.The Emblem dealOne of the more significant positive catalysts for Aleafia has been the acquisition of Emblem, which now combined, should be able to produce up to 138,000 kilograms annually. It also increased the number of medical clinics they control to 40, which together have served 60,000 medical patients.On the positive side, Aleafia has quietly built itself to be one of the top-10 leaders in cannabis production. Its strong exposure to medical cannabis patients also provides it with the capability of generating wider margins than if it was solely exposed to the recreational pot market. Included in its product portfolio are sprays, capsules and oils.What I think the market is waiting for with Aleafia is for it to prove it can effectively and efficiently scale out its operations in domestic and international markets.Global expansionWhile Aleafia has some strength in the Canadian medical cannabis market, it has been slow to make any meaningful headway in the international markets. That may change with the closing of the acquisition of Emblem.Included with the Emblem acquisition was a joint venture with German-based Acnos Pharma GmbH, which it has a 60 percent stake in. Recently Aleafia stated it was going to leverage its supply chain network via its partnership into the German medical cannabis market. Acnos Pharma GmbH has access to 110 distribution centers and 20,000 pharmacies in the German market.Another part of its international growth strategy is in Australia, where it closed its 10 percent equity stake in CannaPacific Pty. Limited, a licensed producer in that country.Aleafia has been granted an import permit from the Australian Office of Drug Control, and has applied for an export permit from Health Canada. Once it receives the expected approval, the company will deliver its first shipment to an international market.ConclusionAleafia Health continues to struggle because it has yet to prove it can execute on what appears to be a potentially profitable business model.The issue of having to wait for its production facilities to be completed and for some of its permits to be approved in different markets, makes it hard for the company to retain any sustainable momentum.Its exposure to the Canadian medical cannabis market is fairly solid, but there is enormous competition there. The company, again, has to prove it can compete against its larger competitors and peers.Even though the company may soon export its first medical cannabis, management has said it will take about 12 to 18 months before things start to really take off on that front.If Aleafia was saying all these things about a year ago, I would be more positive on the company, but as it stands, it does have potential, and I wouldn't be surprised to see it enjoy another round of serious upward trajectory for its share price, but I don't see it having anything sustainable at this time that would help it to support that level.For that reason, I look at Aleafia as being better for a trade rather thinking in terms of taking a long-term position in the company.It does have a clear vision and potential pathway to success, but it has yet to prove it can execute its plan. Until it does, this is going to remain a very volatile stock that could test the recent lower end of its support at about $1.03 per share.If the company does deliver on its promises, it could enjoy a prolonged period of support on the upper end of its potential, generating nice returns for shareholders. It'll probably take at least a year before we start to get more clarity on that potential outcome.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. More recent articles from Smarter Analyst: * Organigram (OGI) Reported a Strong Quarter, But Don’t Buy the Stock Just Yet * More Gains Ahead for Cannabis Stock Curaleaf * Last Minute Thought: Buy or Sell Netflix (NFLX) Stock Before Q2’19 Earnings? * Is It Finally Time to Go Long NIO Stock? This Analyst Remains Sidelined
With the markets and economy moving forward at a generally healthy rate, now doesn't appear the ideal time to consider vice stocks to buy. After all, most analysts recommend "sin" industries during downturns and periods of uncertainty.But the same factor that makes vice stocks so attractive during recessions -- namely, their resilient demand -- gives them relevancy today. Recently, President Trump made headlines when he called for the Federal Reserve to cut benchmark interest rates by 1%. Furthermore, he asked the central bankers to push more quantitative easing.Maybe "The Donald" is merely giving himself an insurance policy prior to the 2020 election. You have to hand it to him: that's smart thinking. On the one hand, if the economy roars into November of next year, any Democratic candidate might as well just pack it in early. But on the other hand, he also greenlighted vice stocks to buy.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDonald Trump loves gold. In fact, it wasn't too long ago that the then real-estate mogul accepted bullion as a lease payment. Clearly, he was sending a political message about unsustainable QE. Now he's the one requesting financial engineering. If that doesn't send you some chills about the real health of the economy, I don't know what will. * The 10 Best Stocks to Buy for May Maybe I'm reading too deeply into this … or maybe, you should consider adjusting your longer-term strategy. If so, here are ten vice stocks to buy: Altria Group (MO)Rather than one of the vice stocks to buy, Altria Group (NYSE:MO) has earned a reputation as a dumpster fire. Some of the negativity is understandable. Smoking it appears is no longer as sinfully cool as it was in prior generations. E-cigarettes and vaporizers have taken over that realm. As a result, MO stock has never really looked comfortable.Still, I'm confident that Altria will soon establish a baseline. From there, I believe contrarian investors will see significant upside, as long as they remain patient. Here's the deal: although broader smoking trends are declining, millennials are more likely to start the habit. According to ScienceDaily.com, a shift in youth subculture - such as delaying baby-making - facilitates living on the edge.Cynically, this backdrop pushes MO into a viable list of contrarian stocks to buy. Additionally, you can't overlook its 6% dividend yield. Philip Morris (PM)A growing consumer base among millennials also helps tobacco-rival Philip Morris International (NYSE:PM). Young Americans most likely live incredibly-stressed lives compared to older demographics who were once their age. For instance, an alarming number of millennials have used payday loans to make ends meet. Indirectly, that helps vice stocks to buy like PM.Another factor? Companies like Philip Morris have attempted to counter the rise of vaporizers with their own alternatives. That effort just received a shot of adrenaline from the Food and Drug Administration recently. The federal agency gave the okay to PM regarding their IQOS device, which functions similarly to e-cigarettes. * 10 Tech Stocks to Buy Now for 2025 Here's why I'm specifically interested in PM stock. People who vape come in two varieties: those who've never smoked before, and those who are trying to kick the habit. The latter group tends to be older, and therefore, have more money. I think they'll find IQOS more attractive, driving up revenues. Cronos Group (CRON)Since late February to early March of this year, cannabis firm Cronos Group (NASDAQ:CRON) experienced a noticeable downturn. Indeed, other sector players have also followed suit. Turns out, the honeymoon phase for marijuana stocks to buy has faded. Currently, investors want to see a pathway to profitability.Eventually, they'll get that pathway. But for now, honeymoon phase or not, it's a time for investments and a focus on growth. That doesn't sit well with traditional buyers, who like to see stable balance sheets and evidence of sustainability.Of course, marijuana investments like CRON stock run short on traditional metrics. However, I think the markets must cut Cronos and others like it some slack. The industry is just going through some growing pains. However, the ultimate upside potential - such as full legalization in the U.S. - is tremendous.Therefore, I'd take a serious look at CRON stock. This discount may not last forever. Aleafia Health (ALEAF)Like other speculative marijuana stocks to buy, Aleafia Health (OTCMKTS:ALEAF) is all over the map. In early February of this year, ALEAF stock more than doubled in value against the January opener. But since then, shares of the medical-cannabis firm have disappointed stakeholders. I would know. I'm one of them.Yet I'm not discouraged because I have a longer-term outlook. Plus, I knew what I was getting into: ALEAF is among the most speculative of vice stocks to buy. It's a feast-or-famine pick, and I take full responsibility for my choice.That said, I wasn't just gambling on Aleafia. As any news outlet will tell you, the U.S. is suffering a severe opioid epidemic. Largely, this occurred because big pharmaceutical companies gambled with our health. What was sold as non-psychoactive drugs were tragically anything but. * 7 Energy Stocks to Buy to Light Up Your Portfolio Aleafia sidesteps this problem completely with their focus on natural therapies. Therefore, I like ALEAF stock, even though it's going through a rough spell. Wynn Resorts (WYNN)Las Vegas has a slogan that tells you all you need to know about it: what happens there, stays there. Unfortunately for Wynn Resorts (NASDAQ:WYNN), a lot of stuff failed to remain in place. Most notably, former Wynn Resorts CEO Steve Wynn resigned due to a scandalous sexual-misconduct allegation.Another thing that failed to stay in Vegas? Demand. Specifically, Clark County which has jurisdiction over Sin City witnessed ever-deteriorating gaming revenue. Look, people aren't visiting a nasty, smelly, and sweltering dump like Las Vegas for the scenery. So if gambling can't attract tourists, nothing will.But the bright spot for WYNN stock? Those revenues are finally returning to their former glory. Clark County's gaming revenue hit $10.25 billion. This is the first time we've seen the $10 billion mark since the sub-prime lending crisis.That bodes very well for WYNN, which is one of the more underappreciated vice stocks to buy. Sturm Ruger & Company (RGR)It's either a curse or a sign of the times. Whenever I want to talk about my favorite vice stocks to buy - firearm manufacturers - something terrible happens. I'm a firm believer that guns don't kill people; crazy people with access to whatever platform they have available kill people.But taking aside the controversies regarding firearms-related crimes and the associated politics, I like sector players like Sturm Ruger & Company (NYSE:RGR) for purely economic reasons. As much as the left would like you to believe otherwise, Americans love guns. Not only that, the gun-buying demographic is much wider than you think.Don't believe me? Look what happened in California last month. A federal judge ruled that preventing Californians from buying standard and high-capacity magazines is unconstitutional. Opposing factions pressured the judge to reverse course, but not before millions of "freedom sticks" found their way into many Golden State homes. * 5 Stocks That Failed to Impress Investors This Earnings Season California and other liberal states are just waiting for another black-swan event. If that occurs, watch out: firearms investments like RGR stock stand to benefit greatly. American Outdoor Brands (AOBC)Many years ago, I accompanied a friend who was window-shopping for a handgun. Our salesperson was exactly what you would imagine a man selling guns would look like: big, hairy, and bearded, with tattoos inked into his fists.That wasn't the scary part. No, it was the German Shephard and the swastika tucked away in the corner that freaked me out.Over time, though, firearms companies realized that such imagery doesn't really help sales. Instead, many industry players softened their image because one demographic has significantly increased their presence in the firearms space: women.That's right. The modern American lady is likely packing some heat, while looking great doing so. And that really benefits American Outdoor Brands (NASDAQ:AOBC). You know AOBC as Smith & Wesson.For those that don't know, Smith & Wesson is a premiere firearms manufacturer. Better yet, women apparently love their guns, with the Smith & Wesson MP Shield chambered in 9mm ranking highly. This also makes a great Mother's Day gift if you don't have any other ideas…just sayin'. Olin Corporation (OLN)If you learned anything about the previous two companies, it's that all Americans love guns. Men and women of incredibly-diverse backgrounds gravitate toward firearms for two principle reasons. First, America is a violent country, and police response is shockingly limited. Therefore, most people should consider taking responsibility for their own protection. The second reason? They're fun.To feed that fun, though, is an expensive endeavor. That's where Olin Corporation (NYSE:OLN). OLN is a perfect pick among vice stocks to buy in that it's not at all a seedy organization. Principally, Olin is a chemicals specialist. Without its ammunition business, OLN is a great place to grow your money with its 3.9% dividend yield. * 7 Stocks Worth Buying When They're Down That said, OLN owns the ammunition brand Winchester. It's a very popular brand among firearms enthusiasts because they're relatively cheap yet reliable. Out of 857 million firearms in the world, Americans own 393 million of them, or 46%. That's why OLN belongs on this list of vice stocks to buy. RCI Hospitality (RICK)RCI Hospitality (NASDAQ:RICK) is in the hospitality business like I'm in the king crab fishing industry. While I'm sure you get excellent treatment and services at RCI's many esteemed clubs, RICK operates the term very broadly. Of course, I wouldn't know anything about this, but I do have a friend who visits frequently.Alright, enough with the cheap jokes. No matter how many times our politically-correct society tries to suppress it, sex sells. It's a dirty way to go about your marketing and advertising endeavors, but it's just the truth. RICK stock represents escapism, fantasy, and sexuality, all rolled into one.More importantly, this "hospitality" industry does very well during a recession. In upscale clubs, women have earned $100,000 to $300,000 annually, even during the Great Recession's immediate aftermath. That's a gender-pay gap that no one is complaining about! GEO Group (GEO)Sometimes, you've got to let out some steam, which is partially why the above vice stocks to buy exist. However, if you let out too much steam, you might end up on the wrong end of GEO Group (NYSE:GEO). Within the sin industry, GEO probably generates the most controversy as a private prison.Also, it's fair to point out that GEO stock represents the true definition of a vice investment. You might wonder how such an organization makes money. For starters, they feed government demand. GEO recently inked a deal to house foreign criminals who violate immigration laws. You think shares will rise if Trump wins another term?Second, GEO is akin to modern-day slavery. While in their penal institutions, prisoners perform tasks for pennies on the dollar. When they've served their time, GEO recognizes that the recidivism rate is extremely high. Ex-prisoners are more likely to come back, bolstering the company's revenue stream. * 10 Cheap Stocks to Buy Now It's a nasty business that preys on disenfranchised members of society. However, I can't deny that it's brilliant, albeit in a sick way. If you have no qualms about anything, GEO is your stock.As of this writing, Josh Enomoto is long ALEAF stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 7 Stocks Worth Buying When They're Down * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post 10 Vice Stocks to Spice Up Your Portfolio appeared first on InvestorPlace.
Cannabis stocks were mixed on Monday, with Aleafia Health losing ground after reporting earnings for 2018 and Organigram gaining on the news it has applied for a listing on Nasdaq.
This cannabis grower can produce 138,000 kilograms a year, but has a market cap of less than $500 million.
Welcome to the latest installment of " Bulls and Bud ," a column where we take a look at some of the most promising stocks and brands in the legal cannabis industry. Aleafia Health Last week, ...
The consolidation in the cannabis industry continues as companies not just in the United States are making deals. The company will give 0.8377 shares per each share of Emblem, which represents C$1.21 per Emblem share and a premium of 27 percent based on the closing prices of Aleafia and Emblem on the TSX Venture Exchange on Dec. 18. Cannabis investors can't miss the Benzinga Cannabis Capital Conference, the No. 1 networking event for institutional capital and the leading cannabis companies.