|Bid||7.29 x 0|
|Ask||7.29 x 0|
|Day's Range||6.96 - 7.32|
|52 Week Range||4.95 - 14.37|
|Beta (5Y Monthly)||2.91|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 15, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||12.45|
The past six months haven't been great for Aphria (NYSE:APHA), but shares haven't fallen as far as the company's more famous peers. Aphria stock is down 27.7% in the past six months. In contrast, the more popular "pot stocks" are down much more. Shares in Aurora Cannabis (NYSE:ACB) dropped 66.5% in the same period. Hexo (NYSE:HEXO) has fallen 61%. Canopy Growth (NYSE:CGC) is down 50.9%.Source: Shutterstock Why hasn't APHA stock performed as badly? Perhaps it's because Aphria has historically traded at a discount to its competitors. Back in September, Aurora, Canopy, and Hexo were trading at enterprise value/sales (EV/Sales) ratios north of 30. At the same time, Aphria's EV/Sales was just 9.5.Today, Aphria trades at an EV/Sales ratio of 6.7. While it is by no means a "value stock," APHA remains a relative bargain.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDoes this mean its time to buy? Let's take a closer look. Growth is priced into shares, but this overlooked pot stock could be a diamond in the rough. Aphria Marches Towards ProfitabilityAPHA may be an also-ranb pot stock, but the company is no slouch when it comes to market share. Aphria has supply agreements across all of Canada's provinces. This gives them access to 99.8% of the country's population. * The 10 Worst Dividend Stocks of the Decade Oversupply in Canada is an issue, yet Cannabis 2.0 could spur demand. But unlike Canopy or Hexo, Aphria has not announced a big infused beverage launch. Yet, Aphria does have Cannabis 2.0 exposure. Back in June, the company announced a partnership with Pax Labs to develop cannabis vape products.Over in Europe, Aphria is betting big on medical marijuana. Especially in Germany. The company is one of just three to obtain a cultivation license there. The company's German unit CC Pharma is the biggest piece of the Aphria pie, making up 74% of net revenues. Aphria is also a big player in Latin America, via its acquistion of LATAM Holdings.The company's peers are hemorrhaging cash. But Aphria stock posts quarterly positive EBITDA. The company's strategy appears to be paying off. But why does Aphria continue to trade at a low valuation? Why is APHA Stock So Cheap?Aphria trades at a sharp discount to peers. As I mentioned above, Aphria's current EV/Sales ratio is 6.7. In contrast, Aurora Cannabis has an EV/Sales ratio of 14. Hexo also trades at an EV/Sales ratio of 13. Canopy's EV/Sales ratio is 21.9.But there is a reason behind the discount. Aphria has a bad reputation among investors. Prominent short-seller Hindenburg Research lambasted the company in December 2018. This was due to accusations some Aphria insiders engaged in self-dealing. Aphria has been able to salvage its reputation after a management shakeup, but Wall Street still gives Aphria a skeptical eye.Aphria's strong balance sheet ought to counter this. The company has $348.8 million in cash and short-term investments. Aphria does have an equally-sized debt load ($356 million). But as InvestorPlace's Ian Bezek recently pointed out, Aphria has no problems obtaining credit.Competitors have had more trouble raising capital. Yet Aphria was able to obtain attractive financing for its Diamond production facility. Aphria lacks a strategic partner like Constellation Brands (NYSE:STZ) or Altria Group (NYSE:MO). But the company has avoided the capital crunch seen with Aurora. The Bottom Line on Aphria StockAphria stock has a clear path to profitability. Yet, shares trade at a discount to peers. Past scandals continue to tarnish the stock. But for investors playing at home, run the numbers. The company has more going for it than Wall Street gives credit.But does this make APHA stock a buy today? Perhaps. Analyst consensus projects positive earnings-per-share in 2020 and 2021. Meanwhile, names like Aurora and Canopy will remain unprofitable. The bigger names dominate the headlines. But under-the-radar Aphria may be the best "pot stock" buy.I remain on the fence with regards to pot stocks. I'm waiting for valuations to fall to more reasonable levels. But if you have pot stock FOMO and worry today's prices will be a bargain in hindsight, consider APHA.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Worst Dividend Stocks of the Decade * 7 Game-Changing Tech Stocks to Buy Now * 5 Chinese Stocks to Buy for the Big 2020 Rebound The post Consider Aphria Stock as the Cannabisphere Burns appeared first on InvestorPlace.
Cannabis stocks fell Tuesday, as analysts weighing in on Canopy Growth’s new chief executive took a cautious stance, highlighting the continuing challenges facing the company.
While it's common knowledge that pot stocks like Aphria (NYSE:APHA) are big movers, one wouldn't think so given its tight price range of the past two weeks. But don't be lulled into thinking that Aphria shares are likely to continue their sideways trajectory for much longer; as they say, "The longer the base, the higher in space."Of course, people reciting a cliche doesn't make it happen, but I'm not expecting Aphria stock to remain range-bound for much longer.Personally, I'm bracing for a sizable move in all cannabis stocks, with Aphria stock leading the pack and lesser companies riding its coattails to new highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cannabis 2.0 Will Finally Kick Into High GearRetail investors have a tendency to buy on hype and get the timing all wrong. Regrettably, many neophyte traders grabbed Aphria shares with both hands when the mainstream media was trumpeting Cannabis 2.0's advent in September, only to watch the stock price wilt like an unwatered pot plant.Those unfortunate investors had, I believe, the right idea but less-than-ideal timing. As you may recall, the adult recreational use of cannabis (including oils, sprays, and dried flower) was legalized throughout Canada on Oct. 17, 2018, and this year the announcement was made of what's informally known as "Cannabis 2.0" (or as I like to call it, "The Cannabis Empire Strikes Back"). * 10 Best-Performing Growth Stocks of the 2010s A year to the day after the original-flavor Cannabis 1.0, the second installment comprised Canada's decriminalization of "cannabis derivatives": vapes, chocolates, gummies, cookies, shakes, juices, beer, you name it. If you don't mind the stats being expressed in Canadian-dollar terms, research firm Deloitte offers an impressive breakdown of Cannabis 2.0's profit potential:Deloitte estimates that the annual Canadian market for edibles and alternative cannabis products is worth C$2.7 billion. The vast majority of this burgeoning Cannabis 2.0 market will be cannabis extract-based products, including edibles, which we estimate at C$1.6 billion alone. Yet there is significant opportunity elsewhere, including cannabis-infused beverages (C$529 million), topicals (C$174 million), concentrates (C$140 million), tinctures (C$116 million), and capsules (C$114 million).If you're serious about Canadian cannabis investing, I recommend reading the full report as Deloitte definitely conducted their due diligence on the market. As for the investors who got the timing wrong, they jumped in too soon: Canada's cannabis companies are required to wait 60 days before selling those derivative products, meaning that the products won't be on the shelves until the second half of this month.So, if you've been waiting for a better time and a favorable entry point, I'd say now's your chance. Aphria's an absolute monster with the ability to produce 700,000 kilograms of cannabis product annually, and I expect the company to be first-to-market when the floodgates finally open and Canadians make a run for the cannabis-infused comestibles en masse. A Diamond in the RoughAnother reason to choose this particular company is its solid financing -- a rare feature in the cannabis space. Indeed, Aphria finished the August quarter deep in the green with $460 million CAD showing on their balance sheet plus an additional $542 million CAD in capital assets.Moreover, Aphria recently announced that an unnamed large Canadian chartered bank facilitated $80 million CAD in financing for grow facility subsidiary Aphria Diamond. Interim CEO Irwin D. Simon emphasized the Aphria Diamond investment as broadly emblematic of the company's secure financial footing:Aphria has the largest cash balance in the cannabis industry without the dilution of a strategic partner… We are pleased to have secured a term loan that will repatriate a portion of our investment in Aphria Diamond, to be strategically deployed by Aphria. This loan strengthens our balance sheet without being dilutive, and positions Aphria Diamond for success as we expand into new categories and growth opportunities in cannabis to enhance value for shareholders long term.While admittedly a company's CEO (interim or otherwise) must serve as its pitchman, I'm willing to go along with Simon's assessment of Aphria as a financially sound company even amid an often-insecure Canadian cannabis market. The Time Is Right for APHA StockIf you timed your entry poorly and bought Aphria shares too early, I would suggest practicing self-forgiveness, learn from the experience, and hold on to your shares. Given Aphria's comparatively stellar balance sheet and with cannabis' real second act coming soon, neophyte traders may get a rare second chance in the markets. Lesson learned, and profits earned.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best-Performing Growth Stocks of the 2010s * 10 Stocks With Little or No Debt to Own for the Next 50 Years * 5 Restaurant Stocks Dominating Holiday Season Foot Traffic The post Prepare for Cannabis' Second Act and Hold Your Aphria Shares appeared first on InvestorPlace.
CALGARY , Dec. 10, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, is pleased to announce that it has entered into a definitive share purchase agreement (the "Definitive Agreement") with 2651576 Ontario Inc. (the "Minority Holder"), a private Ontario company, to acquire the remaining 49.9% interest (the "Minority Interest") in High Tide's majority-owned subsidiary, KushBar Inc. ("KushBar"). Pursuant to the Definitive Agreement, High Tide, which presently holds a controlling interest of 50.1% in KushBar, will acquire the Minority Interest in a transaction (the "Transaction") that will result in KushBar becoming a wholly-owned subsidiary of High Tide.
A top task facing Canopy Growth’s newly-announced chief executive will be to control the cannabis company’s swelling expenses. Good thing that David Klein has been the financial chief at the pot producer’s big shareholder, (STZ) because his bud-counting skills will be tested by the costs of the new beverages, vapes and chocolates that Canopy starts selling in Canada next month. Investors seem happy that a financial guy is taking charge of (WEED) (ticker: CGC), whose founder Bruce Linton was forced out in July by Constellation (STZ) after the pot pioneer’s losses ballooned.
The largest country in Latin America, Brazil , has finally regulated cannabis sales. The Brazilian sanitary regulatory agency, or ANVISA, which functions similarly to the United States Food and Drug Administration ...
Cannabis stocks have been on the mend lately, although most are still carrying painful losses this year. Hexo (NYSE:HEXO) is not an exception to this observation. Hexo stock has been under considerable pressure, down 37% in 2019 and more than 70% from its May high.Source: Shutterstock Is the cannabis space really going to make a comeback? That much isn't clear yet, unfortunately. But we can determine which ones to buy in the event that names like Hexo stock do rebound.In November, these names fell off a cliff. I mean, really tanked hard amid relentless selling. Painful as it was, the plunge at least got the discussion going that perhaps these names were capitulating. There could still be some end-of-year selling as investors look to lock in tax losses, but positive signs are starting to emerge.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor instance, on Tuesday, when the stock market opened lower with indexes down more than 1%, pot stocks were holding in. Then they turned positive and started to gain momentum. How could cannabis stocks be green on the day when the S&P 500 index was down 1.3% for the session?These are not high-quality equities or a flight-to-safety asset class. That got my attention and I'm now taking the charts more seriously. * 7 Stocks to Buy in December Trading Hexo Stock Click to Enlarge Source: Chart courtesy of StockCharts.comAt the beginning of summer, cannabis stocks started to swoon. I flagged a few of these breakdowns, like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB), cautioning investors to be careful now that key support was giving way.I didn't expect it would lead to some of the declines we've seen since. Many of these names are down 60% to 70% from the highs, while Tilray (NASDAQ:TLRY) is down 90%. Ouch!However, most of these names are rebounding from the lows -- Hexo stock included. Like I said of CGC the other day, two developments are now critical for bulls. First, Hexo stock price must avoid making new lows. It was a panic collapse that sent shares down to $1.56.Bulls also need to see Hexo stock price clear downtrend resistance (blue line). Clearing the 50-day moving average would also open things up a bit on the charts. In short, we need to stop seeing lower lows, and starting seeing higher lows develop on the chart.We're unlikely to go from a sharp downtrend to a massive uptrend overnight. There will be setbacks along the way, but we need to see these two developments before we can trust Hexo.On the chart above, investors can also see that $2 has played a key role lately. Below it should put investors on caution for a possible retest of the lows. If it can hold above $2 a share, a test of its downtrend marks will be in the cards, as well as a possible push to $3. Let's keep an eye on Hexo stock. Bottom Line on Hexo StockDo the charts make Hexo stock a buy? In a word: no. The charts show that the situation is improving from a few weeks ago, but has not signaled the all-clear to investors just yet.So what about the fundamentals?Judging cannabis stocks based on the fundamentals is difficult. That's because many have triple-digit sales growth but low revenue figures. Further, most are not free cash flow positive or profitable, yet garner valuations in the billions.Because of the large correction this year, Hexo stock now sports a market cap of $527 million. Is that too much? Well… * 7 Exciting Biotech Stocks to Buy Now Last year, Hexo had net revenue of 47.3 million CAD ($35.9 million) and lost over 86 million CAD. Investors should know that profits have been elusive for this company.That's not necessarily a nail in the coffin, but companies that are sacrificing profits for growth need to have staying power via the balance sheet. With just 113.5 million CAD in unrestricted cash, some investors have to be nervous. That's even as current assets sit at 314 million CAD, compared to just 52.6 million CAD in current liabilities.But the acceleration in liabilities -- with total liabilities up to 104.3 million CAD last quarter from 17.3 million CAD three quarters ago -- and the negative cash flow is a concern. Hexo isn't the worst pick, but amid a cannabis comeback, I prefer Aphria (NYSE:APHA) and Canopy Growth stock, which have stronger balance sheets.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long APHA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping * 6 Manufacturing Stocks to Buy as the Economy Recovers * The 7 Best Cryptocurrencies to Buy as Blockchain Heats Up The post Is the Right Move to Buy Hexo Stock Amid Cannabis Rebound? appeared first on InvestorPlace.
CALGARY , Dec. 5, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that it has closed the second tranche (the "Second Tranche") of the sale of unsecured convertible debentures (the "Debentures") of the Company under the private placement (the "Offering") previously announced on November 14, 2019 . Gross proceeds from the Second Tranche were $2,115,000 .
Aphria Inc. (TSX: APHA) (NYSE: APHA) said Monday that its Aphria Diamond growing facility subsidiary obtained an $80-million credit facility Friday with a Canadian chartered bank that will serve as an arranger, book runner and administrative agent on behalf of lenders. The credit facility is backed by Aphria Diamond’s assets and the company’s balance sheet and has a three-year term. Aphria Diamond secured a Health Canada license Nov. 1, and since then the subsidiary has been "coming on scale," according to the company.
Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA) announced that its subsidiary Aphria Diamond secured a credit facility, on November 29 2019, with a major Canadian chartered bank (the "Bank") as sole arranger, sole book runner and administrative agent on behalf of a group of lenders for a committed senior secured credit facility of $80 million (the "Credit Facility").
In my Oct. 21 column, I warned readers that the worst was yet to come for Aurora Cannabis (NYSE: ACB) stock. With ACB stock down 40% in the two months before that piece was published, it may have seemed bold at the time. However, in just over a month since I wrote that article, Aurora stock has tumbled another 31.7%.Source: Shutterstock Aurora's balance sheet and cash flow situation will stay ugly in the near-term. But I still think Aurora stock can eventually become a viable, long-term investment.Worse-than-expected third-quarter numbers and a surprise early conversion of $171 million of bonds has sent ACB stock tumbling once again. The 7% shareholder dilution associated with this conversion at a 3.28 CAD ($2.46) price is exactly the type of semi-desperate action Aurora will have to take to keep its business going until its fundamentals improve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday I want to focus on the signs that will indicate that it may be finally time to buy ACB stock. Here are five things Aurora needs to do to win back investors' trust, according to Cantor Fitzgerald analyst Pablo Zuanic. * Issue Honest GuidanceIt may seem tempting to provide ambitious guidance to please investors in the near-term. But if companies consistently fail to deliver on that guidance, they are doing nothing more than creating a reputation for constant disappointment. Zuanic says the $107 million Aurora raised from equity financing in October and the $216 million it has raised from bond conversions will be used up by the end of Q1 of 2020 unless the company's cash-burn rate drops. Management needs to either clearly outline its long-term financing plan or clearly discuss spending cuts because one of the two will be critical within the next six months. * 7 Stocks to Buy in December * Demonstrate a Path to ProfitabilityProfitability will eventually be key for all marijuana stocks. But Aurora stock has been especially plagued by ACB's cash burn and equity dilution. The company said it would reach positive earnings before interest, taxes depreciation and amortization (EBITDA) in the quarter that ended in June. It didn't hit its target. EBITDA margins took a bit step back in the September quarter, dropping from -12% of the company's sales to -56% of its sales."Even if some of this relates to one-off factors…, more clear guidance is required given the circumstances and even perhaps cost cuts," Zuanic says. * Taper Down the Stock CompensationThe amount of Aurora stock that the company uses to pay employees is unreal. Share-based comp was 33% of sales in the September quarter and averaged 43% of sales over the previous fiscal year. For perspective, OrganiGram's (NASDAQ: OGI) stock-based compensation was only 8% of its sales last quarter. Aphria's (NYSE: APHA) stock-based compensation was just 4% of its sales in Q3.Diluting shareholders to raise capital to grow the business is bad enough. Diluting shareholders to line the pockets of management adds insult to injury. Zuanic says management should make a gesture of good faith and freeze share-based compensation for one year until the company's fundamentals improve. * Scrap the CBD BusinessWhen times get tough, companies have to make tough decisions. Aurora's balance sheet is clearly spread dangerously thin. Zuanic says the company needs to focus on its core business. In fact, he says Aurora needs to drop its U.S. cannabidiol (CBD) strategy all together. It's unclear just how much time, money and resources Aurora has been devoting to the CBD business. But it seems unlikely at this point that it will end up being a market share leader in the U.S. CBD market."The market is overcrowded with a plethora of brands and future growth is now being questioned without clear FDA guidelines," Zuanic says. * Focus On CanadaOne year after Canada legalized recreational cannabis smoking, the nation recently legalized derivatives such as cannabis edibles and beverages. Zuanic says there will certainly be growth opportunities for cannabis companies in Europe.But Aurora needs to maintain and/or grow its market share in its core Canadian market in the near-term. Domestic medicinal cannabis still represents 36% of Aurora's total cannabis revenues. By continuing to milk the medicinal market, growing its market share in the recreational market and establishing a strong footprint in edibles, Aurora has all the near-term opportunities it needs right in its Canadian back yard, according to the analyst. How to Play Aurora StockUnfortunately, little has changed about Aurora's near-term outlook since I wrote my last article a month ago. I still see ACB stock as a show-me story and would recommend that investors stay on the sidelines until management proves it can get the company back on the right track.Zuanic is a bit more optimistic and says patient investors can co ahead and buy Aurora stock on weakness at this point. Cantor Fitzgerald has an "overweight" rating and a 3.11 CAD ($2.34) price target on Aurora Cannabis stock.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy in December * 7 Unsteady Stocks Investors Should Consider Selling Before 2020 * 7 Entertainment Stocks to Buy to Escape Holiday Blues The post 5 Things Aurora Cannabis Must Do to Get ACB Stock Back on Track appeared first on InvestorPlace.
CALGARY , Nov. 27, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that it has been selected by Aurora Cannabis Inc. ("Aurora") to manage its flagship retail store at West Edmonton Mall ("WEM") opening to the public on November 27th in Aurora's home city of Edmonton, Alberta . The Company has signed an agreement with an affiliate of Aurora to provide services including, but not limited to: inventory, marketing, operations, sales, staffing, training, and security, in accordance with both Health Canada and Alberta Gaming, Liquor and Cannabis requirements, over a base term of three years with an option to extend the term, in exchange for service provider fees (the "Agreement").
Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.
In an interesting turn of events, cannabis stocks have been surging back from the dead. Among those rallying higher, Aurora Cannabis (NYSE:ACB) has enjoyed healthy gains lately. Despite rallying 18.2% on Nov. 21 and more than 45% from its low earlier that week, ACB stock still has a lot of overhead resistance.With the ACB stock price recently closing at $2.52, or down over 22% from the Nov. 21 high, you can appreciate how strong that resistance is.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSetting that aside, if you were to give most stocks a 45% rally in three days -- even from its 52-week lows -- they would likely be in a pretty good technical position. The fact that ACB stock is not tells us how bad of a situation it's really in.It's incredible how fast this stock -- and many of its peers -- went from the high single digits and teens to sub-$5. Many investors won't invest in stocks trading for less than $5, let alone sub-$3. * 7 Top Stocks to Buy for 2020 Is Aurora Cannabis stock different though? Breaking Down Aurora Cannabis StockThe other day, I outlined why Tilray (NASDAQ:TLRY) stock is not one I would buy, despite the cannabis rally. Simply put, the stock does not have a strong enough balance sheet. Particularly when it's compared to other stocks, like Canopy Growth (NYSE:CGC) or Aphria (NYSE:APHA).Like CGC and APHA, I would also consider Cronos (NASDAQ:CRON) and ACB stock to be more attractive than Tilray. But there's one thing all of these names have in common and that's the valuation. Put another way, you can go ahead and throw valuation out the window when it comes to pot stocks.These companies garner billion-dollar valuations, with just tens of millions in sales, negative free cash flow and little or no profitability. ACB stock is not an exception to this observation.Instead, this group has achieved such lofty valuations due to high growth rates, a potentially large total addressable market (TAM) and big investments from larger companies. Specifically, Constellation Brands (NYSE:STZ) invested some $4 billion in CGC, while Cronos received a $1.8 billion investment from Altria (NYSE:MO).When sentiment is poor, the stock performance is poor and vice versa. The mood is shifting in bulls' favor but is far from euphoric at the moment. Let's see if these stocks can take a break, avoid making new lows, and then resume higher.Since the financials and valuations aren't catalysts for bulls to rally on, they need outside catalysts to do the heavy lifting. That is, regulatory achievements and positive news need to continue in order for these stocks to remain in demand. Trading ACB StockIf the chart shows investors anything, it's that risk/reward is an important measure. When support gave way and violated the long setup, bulls who stepped aside avoided a big haircut. Now, the setup in Aurora Cannabis stock is not exactly easy, but it is rather simple. Click to Enlarge Source: Chart courtesy of StockCharts.comAurora stock has two tasks at this time. One of those tasks is a reiteration of what we said in the previous section, which is that it must avoid closing at new lows. That would be a break of $2.14 (blue line on the chart above). A close below this mark signals that the technicals remain intensely stressed.The other task? Closing over the $3.50 mark. Just as it's key for bulls to keep ACB stock north of $2.14, it will be important for them to reclaim the $3.50 mark. This area was key support in October and early November before the floor gave way and shares plunged more than 20% in just a few days.Further observations include the 20-day moving average, which acted as resistance on ACB stock's latest rally. Therefore, reclaiming the 20-day moving average will be important too.The bottom line? Just because ACB stock put together a strong rally doesn't mean it's a must-buy stock at this moment. There are plenty of overhead resistance and downtrend resistance marks in the way. As of now, the charts are starting to improve, but still need to prove that the stock deserves investors' trust. That starts with reclaiming the 20-day moving average, then the $3.50 level.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long APHA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Sickly Healthcare Stocks to Avoid * 5 Lottery Stocks With Huge Upside -- And a Real Chance of $0 * 7 Top Stocks to Buy for 2020 The post Is Aurora Cannabis Stock Officially Back from the Dead? appeared first on InvestorPlace.
Money flows are mostly negative or neutral in marijuana stocks, and the Food and Drug Administration’s warning is creating an overhang.
Cannabis stocks ended their three-day winning streak on Friday, as the euphoria sparked by a House vote in favor of a bill that would lift the U.S. federal ban eased and the sector’s weak fundamentals came back in focus.
Cannabis stocks have been crushed, but are they now coming back to life? Down 68% year-to-date but up some 20% over the past few days, Tilray (NASDAQ:TLRY) seems to fit that description. However, Tilray stock isn't necessarily the one that investors should be banking on.Source: Jarretera / Shutterstock.com Earlier this week, there was some chatter about a potential capitulation for the group. Given that we're only a few days removed from a possible bottom, it's impossible to say at this point if the decline has hit its maximum pain point.That said, it's been a horrendous ride -- for all the pot stocks -- and the recent rebound is relieving some of that pain.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Problem with Cannabis StocksHave you ever heard the saying, "good company, bad stock?" It means that the fundamentals of the company are good -- whether that's the balance sheet, underlying business, etc. -- but the stock acts like crap. It means even though the company is reporting solid results and good news, the stock just refuses to rally or recognize any of the positives. * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities If you take a second and think about some of your past or maybe even current holdings, I'm sure you can think of a few names that fit this description.The problem with cannabis stocks though? They're not good companies. And right now, they're not good stocks either. Think of it this way:When the technicals are bad, many stocks with strong underlying fundamentals can weather the storm better than the weak stocks. That is, those with dividends, strong balance sheets, a low valuation, and continued growth (and usually some combination of these attributes) are go-to picks for investors.On the flip side, investors can overlook less-than-ideal fundamentals when the technicals are behaving well. Bad news gets shrugged off and the stock price continues higher. This was the cannabis space when these stocks were doubling and tripling.However, when the fundamentals and the technicals turn south -- like cannabis stocks over the past few quarters -- that's when stocks get obliterated.When there are no fundamental attributes to support a stock, there's no telling when it's a buy. With traditional, established stocks, we have valuations, yields and other metrics to measure. With high-valuation cannabis stocks, we just have the technicals. And when they're bearish, it's hard to be bullish. Don't Go with Tilray StockSo, what are investors supposed to do? When the tides do finally turn, investors will want to be established in those with the best balance sheets and fundamentals. In my view, those are names like Canopy Growth (NYSE:CGC) or Aphria (NYSE:APHA).To another extent, Aurora Cannabis (NYSE:ACB) and Cronos (NASDAQ:CRON) are other possible choices. But TLRY stock just doesn't have as strong of fundamentals. Others have received sizable investments from larger companies and/or have more stable businesses.For Tilray stock, it's just not there. The company has total cash of $122.3 million. That's down more than 44% sequentially, although it is up slightly year-over-year.However, current assets total just $330.6 million versus current liabilities of $130.2 million, while total assets of $1.04 billion outweigh total liabilities of $624.4 million. That may work for a company that is generating positive free cash flow and net income, but that is not the case with Tilray stock.Analysts predict 304% revenue growth this year to $174 million and 78% growth in 2020 to more than $310 million. If achieved, that's great news! But it will also mean that other cannabis companies will bask in the sun, and with their stronger balance sheets, they are in better position to survive. Trading TLRY StockIt's great to see Tilray stock start to make a comeback -- it's great to see all of the cannabis space rebound. But that doesn't make TLRY stock a buy. Click to Enlarge Source: Chart courtesy of StockCharts.comThis name has so much overhead resistance and various downtrends to push through, it's not even funny. It's poking through its first downtrend resistance mark (blue line) on Thursday, but still has the declining 50-day moving average to push through, as well as the $25 level.I would feel more comfortable in some of the other cannabis stocks with stronger balance sheets. While the technicals are sloppy in these names as well, at least their fundamentals are a little better.Admittedly, a close over $25 could ignite a rally up to the declining 100-day moving average for TLRY. However, a move below the $20 mark and/or downtrend support (purple line), and bulls need to use extreme caution.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long APHA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post Donat Buy Tilray Stock Despite the Cannabis Rebound appeared first on InvestorPlace.
Cannabis companies have seen their stock prices go up in a puff of smoke in 2019. Investors have grown weary of waiting on profits. Which makes the current decline in Aphria (NYSE:APHA) stock a little bemusing.In its most recent earnings report, APHA actually recorded a profit, albeit a slight one. The company reported positive earnings per share of 7 cents. This was 10 cents above the Thomson Reuters consensus estimate for a negative EPS of 3 cents. Revenue came in below estimates at $126.10 as opposed to $131.15. However, the company's revenue was 848.1% higher on a year-over-year basis.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis did not seem to alter the anti-cannabis sentiment with investors. After getting a brief lift from the report, Aphria stock has fallen over 18%, hitting a 52-week low. APHA stock has since moved solidly off that low. Given APHA's current share price, I'm not that concerned about a downside risk. My question is, if profits are being so easily dismissed, what is the ceiling for APHA stock? Aphria Is Cleaning Up Its Balance SheetAphria recently made news by selling 37 million shares of Althea Group Holding Ltd in Australia. That would divest the company of nearly 85% of its stake in the company. By selling its majority stake, Aphria is demonstrating a willingness to reign in expansion to focus on key markets (notably North America). * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities Good news for the balance sheet can also help the company put further distance between it and a couple of questionable acquisitions that caused its stock to plummet in the summer. But will cleaning up its balance sheet be enough? APHA Is Swimming Against the CBD CurrentThe conventional wisdom holds that cannabidiol (CBD)-based products (i.e., the non-addictive kind) will be the tip of the spear that leads to full legalization of cannabis. Aphria is committed to selling marijuana products that contain tetrahydrocannabinol (THC). This is the compound that creates the "high" from marijuana.However, InvestorPlace's Josh Enomoto recently wrote that, in at least one study, THC delivered a higher therapeutic benefit than CBD (albeit with more side effects). The study was far from conclusive and waving the flag for THC while the industry is embracing CBD (albeit perhaps out of expediency) puts some risk into Aphria stock.Although, on the surface, the cannabis industry has a lot of companies that look the same. If Aphria can carve out a niche with THC in medical marijuana, it would offer investors something distinct. What Good Is More Supply if Demand Remains Weak?Aphria just obtained a long-awaited cultivation license for its Aphria Diamond facility. This acquisition will double Aphria's production space to 2,400,000 square feet. And it will expand their capacity to 255,000 kilograms. Putting the increased space aside, the facility features "industry-scale" automation that allows APHA to lower their production costs and increase their margins.But investors have heard the "more capacity" argument from bigger cannabis companies like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). The reality is that the market is oversupplied for the needs of the one market (Canada) in which cannabis is fully legal.Although cannabis can be legally sold throughout the country, it can only be sold in government-regulated stores. And each province has different rules regarding where, and how many stores will be allowed to sell. Most provinces are allowing online sales for Canadian residents or for travelers to receive while they are in Canada. There Remain a Lot of Unknowns for Aphria StockNine Wall Street analysts have given Aphria stock a consensus one-year price estimate of $12.12. The forecasts ranged from $6.50 to $22.75. The consensus rating for the stock is a buy. By cutting back on its global investments and expanding its production capabilities, Aphria is doing a good job of controlling the "controllables."However, the cannabis industry is fraught with unknowns. There's a lot of hope. There's still a lot of potential. But investors are in the "fool me twice, shame on me" mode. And that makes it hard to define a ceiling for Aphria stock.I like the cannabis sector in the long term, and I think that Aphria stock has seen a drop in price that is not justified by the fundamentals. I can see where Aphria could be a very good value at its current price. But like many investors, I need to see the sales. Until I do, it's hard to recommend Aphria stock.As of this writing, Chris Markoch did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post Aphria Stock May be Priced Right, But Can it Grow? appeared first on InvestorPlace.
CALGARY , Nov. 21, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that the Canna Cabana location in Unit #6128 at 403 Mackenzie Way SW in Airdrie (the "Airdrie Store") has received its first delivery of recreational cannabis products from Alberta Gaming, Liquor and Cannabis ("AGLC") and today will begin selling cannabis and accessories. To celebrate its grand opening, festivities will take place at the Airdrie Store on Saturday, November 23rd .
View from the C-Suite: Carl Mertin, Chief Financial Officer, Aphria Inc., tells his company's story. Filmed on October 16, 2019
Cannabis stocks rose Tuesday and were on track to end a six-day losing streak, buoyed by news that a congressional committee is advancing a bill that would lift the federal ban on cannabis and overturn past convictions.
Recent Interviews with Management of Aphria Inc., Neptune Wellness Solutions Inc., Real Brands, Inc. and WeedMD Inc. Delta, British Columbia and Kelowna, British Columbia--(Newsfile Corp. - November 20, 2019) - www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today's series of recent podcast interviews with thought leaders and experts in the sector. Listening to a mix of small to larger players ...
Aphria Inc (NYSE: APHA ) announced all seven candidates listed in its management information circular were elected as directors at the company's annual meeting of shareholders held on Nov. 14. The directors ...
CALGARY , Nov. 15, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that it has issued unsecured convertible debentures of the Company (the "Debentures") under a non-brokered private placement (the "Offering") with proceeds of $2,000,000 . The proceeds of the Offering will be used by High Tide to fund the construction of its next Canna Cabana and KushBar stores as well as for general working capital purposes.