|Bid||8.92 x 0|
|Ask||8.97 x 0|
|Day's Range||8.68 - 9.04|
|52 Week Range||4.76 - 21.58|
|Beta (3Y Monthly)||3.70|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Aurora Cannabis posted its fourth-quarter earnings after the market closed on Wednesday. The company posted revenues of 98.9 million Canadian dollars.
Aurora Cannabis (NYSE:ACB) stock dropped in after-hours trading on a weak earnings report. Shares fell from $6.49 at the close Sept. 11 to below the $6 level. With results failing to meet consensus, investor sentiment for ACB stock could become more negative. But is this recent stumble an opportunity to load up on Aurora Cannabis stock?Source: Jarretera / Shutterstock.com Shares continue to trade at a high valuation. But the long-term strategy for Aurora may still be in motion. Let's take a closer look and see if there's short-term upside for the ACB stock price. ACB Stock Earnings Fall Shy of ConsensusOn Sept. 11, Aurora released earnings for their fourth quarter which ended June 30. Net cannabis revenue grew 61% from the prior year's quarter, to $94.6 million CAD. The company's cash cost to produce per gram fell 20% to $1.14 CAD per gram. Gross margins grew to 58% from 55% in the prior year's quarter. Thanks to increased margins, the company's adjusted EBITDA losses shrunk from $36.6 million CAD in Q3 2019 to a $11.7 million CAD loss in Q4 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor fiscal year 2019, sales were $247.9 million CAD. This is an 349% increase from the prior fiscal year. But despite this growth, Aurora fell short of consensus. Earlier in 2019, ACB anticipated positive adjusted EBITDA by the end of FY19. But the company revised this guidance in August. After yesterday's earnings, the company is no longer referencing "positive adjusted EBITDA." Instead, Aurora "expects adjusted EBITDA to improve." * 10 Battered Tech Stocks to Buy Now The analyst community also pared down their estimates after the August walk-back. According to FactSet (NYSE:FDS), prior to August, analysts estimated Q4 revenue of roughly $112 million CAD. This was cut to a range of $100 million CAD-$107 million CAD. With actual Q4 performance falling short of this revised consensus, there are new challenges to the growth story with ACB stock.Other cannabis stocks have posted weak results in the past few months. Weak numbers at Canopy Growth (NYSE:CGC) pushed shares down 25% since mid-August. Tilray (NASDAQ:TLRY) shares have fallen from $41.16 per share to near $30 per share since its August earnings release. Reality is bringing pot stock valuations back to earth. Does this mean it's time to buy on the dip? Let's take a look at the valuation of ACB stock relative to peers. Aurora Cannabis Stock Trades at a Premium to PeersACB stock trades at a premium to most of its peers. Aurora Cannabis stock trades at an enterprise value/sales ratio of 53. Compare this to Canopy Growth, which trades at an EV/Sales ratio of 40.5. Tilray trades at an EV/Sales of 36.2. Aphria (NYSE:APHA) trades at a low EV/Sales ratio of 9.7. The only major pot stock trading at a higher valuation is Cronos (NASDAQ:CRON). Cronos trades at a staggering EV/Sales ratio of 106.4.But does this make ACB stock overvalued? The cannabis sector in general continues to be richly priced. Despite stumbles, investors anticipate a bright future for the marijuana industry. But with top-line performance falling short of expectations, can investors expect a short-term rebound? The Canadian marijuana market continues to be over saturated. A fully open U.S. market continues to be out of reach. Congress has made little progress on federal marijuana legislation.A saving grace for Aurora Cannabis stock is the company's global diversification. As I have mentioned previously, Aurora's focus on European markets has been a strength. Aurora has also focused more on the stable medical segment. But other risks counter the bullish case. The company's heavy use of convertible debt could cause problems down the road. Additional issuance of shares could drive the ACB stock price down further. Stay on the Sidelines With AuroraIt's tough to stomach the current ACB stock price. While the company has many strengths, the path to profitability remains unclear. There needs to be a shakeout in the Canadian cannabis market before it can become profitable. Solid movement on the U.S. federal legalization front needs to happen. One of the major marijuana stocks needs to hit profitability. Even if said "profitability" is adjusted positive EBITDA.I believe marijuana stocks will fall further. Aurora Cannabis stock is no exception. The company's shares could rebound on a crumb of good news. But in the short term, all bets are off with regards to the ACB stock price. To play it safe, stay on the sidelines with Aurora. Wait for a more opportune moment. If valuations turn irrationally low, make your move. But otherwise do not enter a position.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 * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Weak Earnings Might Cause Aurora Cannabis Stock to Keep Falling appeared first on InvestorPlace.
Cronos Group and Aphria are Jim Cramer's top picks in the cannabis sector. Aphria’s upbeat earnings results restored investors' faith in the sector.
Aurora Cannabis (ACB) stock has been rising before its fourth-quarter earnings on Thursday. The stock has risen 12.4% this month.
Canopy Growth (NYSE:CGC) has been on a roller coaster so far in 2019. Like much of the rest of the market, Canopy Growth stock came into the year depressed and under pressure.Source: Jarretera / Shutterstock.com However, it didn't take long for shares to go from sub-$30 to $50+ though. That price action took place in the month of January, but bulls have lost that steam.Luckily for InvestorPlace readers, many have been bearish since $38.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAfter plunging all the way down to $22.76, shares are on the rebound. The hard part is determining whether this is a dead cat bounce (i.e. a temporary reprieve before more downside ensues) or a true reversal off the lows. With the recent rally, shares are no longer down more than 50% from the highs, although Canopy Growth stock still sports big losses.Let's take a closer look at the stock to determine what the best course of action is. Trading CGC Stock Click to EnlargeLast week, CGC was a Top Stock Trade on InvestorPlace and I also flagged the name on Twitter. Even though shares are taking a breather, it's important to see that they're holding up above the 20-day moving average. * 10 Stocks to Sell in Market-Cursed September While it would be discouraging to see CGC lose this mark, As long as it stays above $26.25, it looks technically okay for bulls. However, the big question is whether shares can hurdle $30.At $30, CGC stock would approach a significant level on the chart, as well as downtrend resistance (blue line). Above here and Canopy Growth stock can start working on filling the gap up to $32. There's also the 50-day moving average up near $32, although it's declining on a daily basis as well.Over $32 and CGC bulls can start thinking about a return to the 61.8% retracement, which is currently north of $36. But let's not get too ahead of ourselves. We first need to see CGC hold up over $26.25 and push through $30. After that, we can start looking at further upside targets.Below $26.25 and the recent lows near $23 are back on the table. Balance SheetCGC still has a strong balance sheet, but with negative free cash flow and M&A, it's weakening over time.Cash and short-term investments of $2.42 billion are down more than 32% from the quarter ending in December 2018. Current assets are down ~$916 million (-23.7%) to $2.95 billion in the same period, although total assets are up 4.2%.That also comes with 31.3% spike in current liabilities to $284.6 million. Total liabilities have gone from $891 million six months ago to $2.1 billion, up roughly 135%.So while total assets still outweigh total liabilities by nearly three-to-one and there are no concerns about CGC meeting its short-term obligations, the balance sheet is weakening vs. six months ago. Sizing up Canopy Growth StockMany considered Canopy Growth stock (and many others still do) the blue chip cannabis stock to be long.It had the strongest balance sheet, early-mover advantage in both the U.S. and Canada, and strong backers via the $4 billion investment from Constellation Brands (NYSE:STZ).But it's not just CGC stock that's been under pressure. We've seen weakness in Aphria (NYSE:APHA), Tilray (NASDAQ:TLRY), Cronos Group (NASDAQ:CRON), Aurora Cannabis (NYSE:ACB) and most others.Many of the bullish catalysts for CGC and the cannabis industry as a whole are still in place. Both the U.S. and many parts of the globe are working toward legalization. Many companies and startups are focused on cannabis-related treatments and recreational uses.While Canopy reported 250% year-over-year revenue growth for Q1 last month, the results missed expectations. Earnings per share badly missed estimates, although the miss can be explained away by some financial engineering related to expiring warrants. Still, it would have been nice to be provided an adjusted number in the release.Further, it doesn't help that Constellation Brands and Canopy's management had a "strategy clash" in July, which results in Canopy CEO Bruce Linton leaving the company. That adds some uncertainty to the picture.Where does that leave us? The valuation is rich for CGC and most other cannabis plays and that's putting it lightly. That's no secret, but when the news flow is negative and momentum is bearish, the valuation will hurt the share price. We need to see the charts start to cooperate for Canopy Growth to look good on the long side.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Keep an Eye on Canopy Growth Stock, but Don't Buy It Just Yet appeared first on InvestorPlace.
Aurora Cannabis should report its fourth-quarter earnings results on Thursday. So far, September has been positive. As of Monday, the stock has gained 8.7%.
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.
Cannabis legalization is a vital topic in the US. Meanwhile, vaping related deaths continue to rise. Will vaping concerns kill the US cannabis dream?
On September 6, Aurora Cannabis and Aphria were trading at a higher forward EV-to-sales multiple than their peers’ median value of 12.26.
Cannabis Countdown: Top 10 Marijuana Stock News Stories of the Week Welcome to the Cannabis Countdown . In this week’s rendition, we’ll recap and countdown the top 10 marijuana stock news stories for ...
Aphria (NYSE:APHA) stock rose nicely last month. After falling to as low as $5.02/share, Aphria stock rallied in early August on strong earnings. APHA has since declined from $7.45/share to around $6.95/share.At its current valuation, APHA stock trades at a discount to Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC). But does this make Aphria stock a value play? APHA has a tarnished reputation. But the company's recent earnings success could be a signal that Aphria's future prospects remain strong.Let's take a closer look at APHA stock, and see if now's the time to buy. InvestorPlace - Stock Market News, Stock Advice & Trading TipsSource: Shutterstock A Closer Look at APHALike Aurora, Aphria has focused on the medical side of cannabis. The medical space is less "cool" than the recreational side. But it offers a more stable opportunity. Similar to Aurora, Aphria has focused its efforts on international markets. With the Canadian market still suffering a supply glut, geographic diversification is a smart move. * Dorian's Impact on the Markets APHA has had the most success in Europe, particularly Germany, and in Latin America. After acquiring CC Pharma, Aphria is now one of three companies with a cultivation license in Germany. With a solid foothold in that market, Aphria is doubling down on that market.Overall revenues for the quarter that ended in May were C$128.6M. That was up from C$73.6M in the prior quarter. Gross profits doubled from C$17.3M to C$36M.After these improvements, APHA has high hopes for fiscal 2020. In FY20, the company anticipates net revenue of between C$650m-C$700m. Its guidance calls for adjusted EBITDA of between C$88m and C$95m. That means APHA is getting close to profitability.But APHA stock has many red flags. As InvestorPlace contributor Josh Enomoto detailed on August 15, the company suffered a big scandal, as a short seller accused the company' top executives of looking to personally profit from acquisitions. As a result, the company's CEO and co-founder were ousted. The company's use of figures such as "Adjusted EBITDA" and other non-GAAP figures is also worrisome. True profitability could be many years off for APHA.With this in mind, investors may want to assess the company's projections with a critical eye. But has this scandal created a buying opportunity? Let's see how the valuation of Aphria stock stacks up to its peers. APHA Trades at a Lower Valuation Than Its PeersWhen comparing marijuana stocks, I typically use Enterprise Value/Sales ratio. For now, that remains the most clear valuation metric. Based on this ratio, Aphria stock is undervalued. The company's current EV/Sales ratio is 9.5, representing a sharp discount compared to its peers:Aurora Cannabis: EV/Sales of 46.1Canopy Growth: EV/Sales of 36.2Cronos (NASDAQ:CRON): EV/Sales of 98.7Hexo (NYSE:HEXO): EV/Sales of 40But this discount could be the canary in the coal mine. The company has had asset write-downs in the past, and APHA may have to write down its $500m acquisition of Nuuvera . Given that the market cap of Aphria stock is $1.7 billion, that is a serious impairment charge. And as with other pot stocks, the dilution of APHA stock is a concern. To fund its operations, APHA issued convertible debentures. These debentures are convertible into 37.3M shares of Aphria stock. This dilution could minimize the gains of Aphria stock. The Bottom Line on APHA Stock: High Risk and a Huge OpportunityAphria stock sells at a discount to its peers. But the company's tarnished reputation is a concern. Be cautious before buying into the company's elevator pitch. However, the company is focused on a more stable market, medical marijuana, than some of its peers. Moreover, tts success in Germany has given it a blueprint for success. That success could be duplicated in other European markets.The cannabis industry remains overvalued. Negative investor sentiment could push marijuana stocks down further. It is tough to call a bottom. But marijuana stocks could soon be selling at more reasonable valuations. If that scenario unfolds, APHA may become a solid play. Keep APHA on your radar, but be cautious about buying Aphria stock.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 * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post In Battered Cannabis Space, Aphria Stock May Be Worth a Look appeared first on InvestorPlace.
My philosophy on pot stocks has been very simple. The global cannabis market will be huge one day -- current favorable consumption, perception, and legislation trends imply as much. But there are lot of pot stocks out there today. History tells us that only a few will survive and thrive with the global cannabis market in the long run. As such, while bullishness on the whole cannabis space is warranted, investors should only buy the highest quality pot stocks. Enter, Aphria (NYSE:APHA) stock.Source: Shutterstock For a long time, APHA stock didn't make the cut. This was just another, largely undifferentiated Canadian cannabis company that looked more likely to go bust than boom in the long run. APHA stock consequently found itself in a multi-month downtrend from $17 in September 2018, to $5 by August 2019.Then, Aphria reported fourth-quarter numbers in early August. Those numbers changed everything.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow, Aphria is much more than just another, largely undifferentiated Canadian cannabis company. They are differentiated in every way you'd want them to be differentiated. That is, Aphria is profitable -- no one else in the cannabis space is. They operate at industry-best gross margins, are growing way faster than peers, appear to be on a path towards sustained big growth over the next several years, and have positioned themselves to be a very attractive (arguably, the most attractive) big money target in the cannabis world. * 7 Stocks to Buy In a Flat Market In other words, thanks to the company's blowout Q4 print in early August, APHA has become a high quality pot stock, and one worth buying here and now. Fourth-Quarter Numbers Were SpectacularAphria's Q4 print was spectacular. There's honestly no other way to say it. The numbers didn't just blow Street estimates out of the water, but they actually gave a pretty convincing argument for why Aphria may be the best game in town when it comes to pot stocks.Here are the simple facts. Aphria reported over 100%-plus sequential volume growth in terms of kilograms of cannabis sold last quarter -- a better mark than any of the other major and relevant players in this industry. APHA also reported nearly 90% sequential cannabis revenue growth -- also a better mark than most of other major and relevant cannabis players.More impressively, Aphria netted cannabis gross margins north of 50% in the quarter -- versus sub-30% gross margins at most other cannabis companies last quarter -- and because of those sky high gross margins, APHA actually reported materially positive EBITDA in the quarter. No other cannabis company has reached that profitability mark yet.In other words, Aphria's Q4 numbers showed that this company is one of the fastest growing pot companies with one of the smallest cost bases and most favorable margin profiles. The sum of which has led to APHA being the only pot company to be profitable thus far. Aphria Stock Will Head HigherQualitatively, Aphria is the low-cost, "discount" cannabis producer in the Canadian market. That's because they've mastered the game of producing low-cost cannabis, so they have been able to sell their cannabis products at market low prices but with still sizable gross margins.Sound like a winning combination? It is. Indeed, it's a combination that should propel APHA stock higher over the next few quarters.Zooming out, Aphria has favorably differentiated itself from other players in this space at the same time that APHA stock trades at a huge discount to peers, with a ~2x EV-to-forward-sales multiple, versus 6x to 12x for most other relevant pot stocks.Thus, you have a winning pot stock trading at a huge discount. That's a favorable combination. Ultimately, it has two implications. First, investors will rush into APHA stock in a struggling pot sector because it offers a rare sign of operational strength. Second, big consumer packaged goods companies looking to invest in the cannabis space should be attracted by Aphria's favorable financial profile and the stock's discounted valuation.Both of those implications are favorable for APHA stock. Together, they pave a visible runway for APHA stock head higher in the near to medium term. * 7 Triple Threat Growth Stocks to Buy for the Long Term Bottom Line on APHA StockI haven't always been a fan of APHA stock. But, following the company's blowout fourth quarter earnings report, I think this pot stock has enough good stuff going for it -- big growth, big margins and early profits, all against the backdrop of a discounted valuation -- that it should be able to head materially higher over the next few quarters.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Aphria Stock Has Become a Top-Tier Pot Stock appeared first on InvestorPlace.
Cannabis legalization is spreading its roots globally. Considering that other countries are legalizing marijuana, will the US follow suit?
Aphria (TSX: APHA) (NYSE: APHA) has filed its annual report for the fiscal year ended May 31 on Form 40-F with the U.S. Securities and Exchange Commission. Aphria is a global cannabis company headquartered in Leamington, Ontario. SOL Global Investments (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) has announced that Andy DeFrancesco will step down from his role as chief […]The post Cannabis Stock News Daily Roundup September 5 appeared first on Market Exclusive.
After Aurora Cannabis (NYSE:ACB) sold its remaining 10.5% stake in cannabis supplier Green Organic Dutchman Holdings (OTCMKTS:TGODF) ACB stock was up, but only for a short while. Given time to think about it, traders ultimately decided Aurora Cannabis stock wouldn't be worth any more without than with it.They may be right.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGranted, the sale nets Aurora a hefty $86.5 million in cash. That may be a modest figure compared to its market cap of $5.7 billion, but will prove a meaningful boost to however much of the unrestricted cash hoard of $346.7 million was left on the books as of the end of March.It also buys Aurora Cannabis $86.5 million worth of time to figure out how to turn revenue into more profits. It and rivals like Aphria (NYSE:APHA) and Tilray (NASDAQ:TLRY) have been reporting negative cash flow of late, hinting at a looming cash crunch that could up-end these organizations before they work their way out of the red.The decision to scale out of the rest of Green Organic Dutchman, though, may ultimately be a subtle hint that all the aggressive cannabis dealmaking of the past several months isn't panning out. A Bad Buy and ACB StockMost Aurora Cannabis stock owners may not even realize it, but the company was a key supporter of Green Organic Dutchman Holdings even before Green Organic Dutchman Holdings went public. * 7 Deeply Discounted Energy Stocks to Buy Aurora purchased roughly 33 million shares of TGOD in January of last year, and added 6.3 million IPO shares in May of last year, paying $3.65 each.The funding also granted Aurora the option of buying nearly 17 million more shares in the future, at $3.00 apiece.The investment wasn't really about speculating on another young player in the cannabis business though. Aurora Cannabis was willing to hand over tens of millions of dollars of its own in order to secure the rights to purchase 20% of Green Organic Dutchman's cannabis production.That's where things went south.Green Organic Dutchman Holdings has struggled to produce at the levels it was suggesting it would be able to yield a year ago. For example, the completion of its Hamilton and Valleyfield facilities was pushed back from the final quarter of last year to the middle of this year, though that's not the only way the company has come up short.It was the worst possible time to not deliver, as retailers jockey for market share.In the meantime, Aurora Cannabis sought out and found alternatives. CEO Terry Booth wasn't afraid to explain exactly how and why either, commenting in Wednesday's news release:"When we acquired Whistler Medical Marijuana Corporation - an iconic and premium organic cannabis producer - our interest in TGOD became less important to our core strategy. Our return on our TGOD investment is significant and will add non-dilutive capital and further enhance our strategy to remain a dominant force in the global cannabis industry."Lauding one partner over the other and saying the words "our interest in TGOD became less important to our core strategy" cuts straight to the heart of the matter, stopping just short of saying something along the lines of "Green Organic Dutchman wasn't getting the job done." ACB Stock Price Is VulnerableAurora Cannabis was fortunate it was able to record a gain on its partnership-driven investment in TGOD. Rival cannabis names haven't been as lucky.Case in point: TILT Holdings (OTCMKTS:SVVTF) reported an impairment charge of half a billion dollars in May, stemming from a lackluster return on an investment it made in an effort to grow and create some synergy. Aphria has also been forced to write down $50 million worth of soured acquisitions.Aurora Cannabis is hardly immune to the prospect though, leaving the ACB stock price vulnerable to even more weakness if-and-when shareholders are forced to digest such headlines.Indeed, in July, Bloomberg's Kenneth Shea pegged ACB stock as one of the names most vulnerable to writedowns along with Aphria and Canopy Growth (NYSE:CGC).All told, those three companies (and Tilray and Cronos Group (NASDAQ:CRON) as well) are collectively sitting on $4 billion worth of goodwill related to spending on previous acquisitions. If those don't start to bear fruit soon, these players will be forced to book writedowns on their respective goodwill tallies.Its Green Organic Dutchman Holdings isn't part of $3.2 billion worth of goodwill on Aurora's books. But, the decision to cull its stake and supplant the partnership with another supplier is still telling in and of itself. It says not every partnership is paying off as anticipated. Looking Ahead for ACB StockIt's dangerous to draw sweeping conclusions just from one single event, but you have to wonder about ACB stock here.On the flip side, it's naive to ignore a possibility when it jibes with other related developments. Aurora has clearly rethought Green Organic Dutchman, but it's also rethought its Australis Capital subsidiary. Both were businesses the company wanted to be in not too long ago.Meanwhile, Terra Tech (OTCMKTS:TRTC) has shed its Reno dispensary, and hedge funds couldn't cut loose of key cannabis stocks fast enough during the second quarter, before things turned really ugly.In short, cannabis players are changing their minds about a great number of things, after being in the business for a while.To that end, it would be short-sighted to think the two aforementioned ventures are the only two that have fallen short of Aurora's expectations. They're just packaged differently than others.Whatever is in the cards, a good deal of it should come to light after the closing bell rings on Wednesday, Sept. 11. That's when the company will reveal its fiscal Q4 numbers, followed by an earnings conference call the following morning.As was the case with other cannabis names, current and prospective Aurora Cannabis stockholders will be looking to see if the quarter ending in June will be the beginning of a writedown spree.Shedding its stake in Green Organic Dutchman ups the odds it will be.As of this writing, James Brumley held no position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Dumping Acquisitions Could Signal More Bad News for ACB Stock appeared first on InvestorPlace.
As the cannabis industry grows, Martha Stewart recently announced the launch of CBD-infused products in a partnership with Canopy Growth (CGC).
Last month, Charlotte's Web Holdings (CWBHF) (CWEB) announced its second-quarter results. It missed analysts’ revenue and EPS expectations.