|Bid||6.88 x 0|
|Ask||6.89 x 0|
|Day's Range||6.63 - 6.96|
|52 Week Range||4.95 - 14.37|
|Beta (5Y Monthly)||2.91|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 13, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||11.96|
TORONTO , Jan. 16, 2020 /CNW/ - Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA), a leading global cannabis company, is combating winter blues and energizing the public with the launch of a Plant Positivity Winter Garden on Monday, January 20 , known to some as Blue Monday — the most depressing day of the year based on factors such as weather conditions, debt levels and low motivation levels. With a vision to improve quality of life for communities and individuals, Aphria's social impact platform, Plant Positivity, provides people with greater access to green spaces and creates opportunities to learn about plants and plant care.
Organigram shares soared more than 35% Wednesday and helped lift the broader cannabis sector higher, after the company’s first-quarter revenue more than doubled and beat analyst estimates.
Canadian cannabis company Aphria Inc.'s shares rose 2.4% in premarket trade Wednesday, after CIBC upgraded the stock to neutral from underperform and said it is more constructive on the stock now that an inevitable cut to guidance has been announced. "There will be issues to contend with, such as ongoing elevated capex spend and substantial working capital investments," analysts John Zamparo and Krishna Ruthnum wrote in a note. "But the balance sheet is relatively strong and market share gains are encouraging." The analysts raised their price target on the stock to C$7.00 ($5.36) from C$6.50. The company's revised guidance--it now expects 2020 revenue of C$575 million to C$625 million versus earlier guidance of C$650 million to C$700 million--is "much more achievable" although it may not be conservative enough, the analysts wrote. But with consensus below the new range, future guidance risk has moderated, said the note. Aphria shares have fallen 25.5% in the last 12 months, while the ETFMG Alternative Harvest ETF has fallen 41%. The S&P 500 has gained 26%.
Aphria Inc.’s U.S.-listed shares slid 9% Tuesday before paring their losses, after the Canadian cannabis company posted weaker-than-expected revenue for its fiscal second quarter and revised down its guidance to reflect issues including a slower rollout of retail locations in Ontario.
Canadian cannabis producer Aphria on Tuesday reported a small Q2 loss while revenue surged 466%. Aphria fell sharply, but other marijuana stocks rallied.
At some point, Aurora Cannabis (NYSE:ACB) has to be a buy. Right? Perhaps eventually, it will be. But until Aurora stock shows signs that its downtrend is ending, why stick with a loser?Source: ElRoi / Shutterstock.com I couldn't have been more clear about how I feel about cannabis stocks at this point. While many of these companies have explosive opportunities over the next 12 to 48 months, many others lack the financial strength to survive over that time frame.As a result, investors need to blend the technicals and fundamentals -- hand-picking which ones are most likely to survive, then thrive. In the summer when support gave way, I waved a flag of caution. After the washout and subsequent bounce in November, I said to avoid Aurora stock as it struggled to rebound.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI don't write that to showboat -- trust me, I've had more than enough servings of humble pie. Instead, I write it to drive home the same point: If you're going to speculate with cannabis stocks, don't do it with the losers. Avoid Aurora StockSource: Chart courtesy of StockCharts.comThe first problem with ACB stock? The chart. * 4 Energy Stocks to Power the New Year Aurora stock continues to make new low after new low. In mid-November, the stock plunged to new lows. ACB stock bottomed at $2.14 and within days, shares were up about 50% -- hitting a high of $3.25.However, the 20-day moving average remained stiff resistance, and Aurora stock was unable to reclaim prior range support near $3.50. That right there was the first sign that ACB stock was to be avoided.The next sign came when it failed to hold the $2.40 area, which quickly sent Aurora stock back down to new lows. Those lows now continue to break, leading to lower prices. I don't know when ACB stock will bottom, but until it puts in a low and reverses trend, I'm not interested in buying it.Then, there are the financials.Despite explosive revenue growth and -- quite frankly -- solid gross margins, Aurora Cannabis is losing tons of money. Trailing revenue of 293.5 million CAD has produced a gross profit of 205.5 million CAD. Solid right? It is, but a trailing net loss of 383.5 million CAD is a red flag.Total cash went from about 316 million CAD at the end of June to 191.9 million CAD at the end of September. Current liabilities weigh in at about 464.6 million CAD, while current assets of 588.3 million CAD.Will ACB face a liquidity issue? I'm not sure. I just know that it lacks the same financial firepower as some of its peers, while the charts remain detrimental to the bull case. If Not Aurora Stock, Then Who?I like several other names more than ACB stock, including Canopy Growth (NYSE:CGC) and Aphria (NYSE:APHA). Canopy's thesis and chart can be viewed here, while Aphria's is available here.While neither stock is robust at the moment, they are making much better strides that Aurora stock.First, both have broken over downtrend resistance. In Canopy's case, the stock is maintaining over the 20-day and 50-day moving averages as well. For Aphria, the stock is just over these key moving averages, and remaining above them would be a victory for the bulls. Second, these stocks are not only avoiding new lows, they are holding key support marks.If that changes, it's an opportunity for speculators to consider stopping out and limiting the damage. With Aurora stock, we don't have key support holding up -- so we don't have a way to measure risk.Now, look at the balance sheet difference (all figures in CAD).Current Assets Current Liabilities Ratio (Current) Total Assets Total Liabilities CGC 3.6B 425.8M 8.4 8.2B 2.6B APHA 780.8M 138.5M 6.0 2.4B 708.4M ACB 588.3M 464.6M 1.3 5.6B 1.1B Are these companies perfect? Not by any means. Canopy has a strong balance sheet, but negative free cash flow. Aphria has a smaller balance and is not yet generating positive free cash flow, but has turned a profit in seven of the last nine quarters.These are not slam dunks, but APHA and CGC have better setups than Aurora stock. That said, they are still speculative stocks.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 * 10 Mid-Cap ETFs to Buy for Next Decade * 8 Quirky ETFs for Not-So-Quirky Profits * 4 Energy Stocks to Power the New Year The post Avoid Aurora Stock, Buy Canopy Growth Stock for Cannabis Exposure appeared first on InvestorPlace.
The Canadian pot producer blames a change in Germany’s reimbursement for medical marijuana, but says demand is strong. Shares are down 8%.
(Bloomberg) -- A dividend-paying pot stock may sound like a contradiction but for the first time it’s being raised as a possibility.Aphria Inc. would like to return money to shareholders, Chief Financial Officer Carl Merton told analysts on the company’s earnings call Tuesday.The Canadian cannabis producer has posted three consecutive quarters of positive adjusted Ebitda, a rarity in the industry, and aims to continue that trend “to both internally finance future growth initiatives and, in the future, being in the position to provide an annual return to our shareholders through dividends,” Merton said.It’s a bold statement in an emerging industry that’s seen its benchmark ETFs plunge more than 60% since March amid disappointing earnings results, which have included large Ebitda losses from most companies. While Aphria stands out for its profitability, the numbers are tiny with second-quarter adjusted Ebitda coming in at C$1.9 million.Shares fell as much as 11% in early trading after the company missed second-quarter revenue estimates and cut its full-year forecast. At the end of the quarter, it had nearly C$500 million of cash and cash equivalents.To contact the reporter on this story: Kristine Owram in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Benzinga Pro's Stocks To Watch For Tuesday JP Morgan (JPM) - Shares were up 1% following better-than-expected Q4 results. The bank reported quarterly EPS of $2.57 on sales of $28.3 billion. Analysts had ...
(Bloomberg) -- Aphria Inc. shares fell 8% in pre-market trading after the Canadian cannabis producer missed the lowest revenue estimate and cut its guidance for the current fiscal year.The company reported second-quarter net revenue of C$121 million, below the consensus estimate of C$130 million. Its adjusted Ebitda was C$1.9 million, the third consecutive quarter of positive results.Aphria cut its full-year revenue forecast to a range of C$575 million to C$625 million, down from its prior outlook of C$650 million to C$700 million. It now expects to report full-year adjusted Ebitda of C$35 million to C$42 million, down from C$88 million to C$95 million previously.The pot producer cited a slower-than-expected rollout of retail stores in its home province of Ontario, the temporary banning of vape products in Alberta, the higher cost of sourcing third-party cannabis while it waited to receive a license for its Aphria Diamond greenhouse and a slowdown at its German operations due to changes in the government’s medical reimbursement model.Chief Executive Officer Irwin Simon said he expects sales and profitability to accelerate in the second half of fiscal 2020. Speaking on the company’s earnings call, he also said Aphria is considering non-core asset sales “to further streamline our business and reduce capex over time.”Cannabis stocks were broadly lower Tuesday morning after rallying on Monday. Cronos Group Inc. fell 3.2%, Canopy Growth Corp. lost 2.4% and Aurora Cannabis Inc. slid 2.3%.(Updates with CEO comment in fifth paragraph)To contact the reporter on this story: Kristine Owram in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Steven FrommFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Aphria fired the first shot of cannabis earnings in 2020 -- and it missed. Guiding the full-year range lower by C$75 million after only missing by C$10 million this quarter doesn't paint a pretty picture for the year, but investors need to remember the bulk of Aphria's revenue is actually led by CC Pharma in Germany. Despite the net loss of C$7.9 million, Aphria did turn in a positive C$1.9 million adjusted EBITDA.
Shares of Aphria Inc. slumped 4.8% in premarket trading, reversing an earlier gain of as much as 7.3%, after the Canada-based cannabis company reported fiscal second-quarter losses that were in line with expectations and revenue that missed expectations, but provided an upbeat full-year sales outlook. For the quarter to Nov. 30, Aphria swung to a net loss of C$8.2 million ($6.3 million), or 3 cents a share, from a profit of C$54.8 million, or 22 cents a share, in the same period a year ago. The FactSet consensus was for a per-share loss of 3 cents. Net revenue rose more than 5-fold to C$120.6 million ($92.2 million) from C$21.7 million, but was below the FactSet consensus of C$129.8 million. Kilograms sold rose 18% to 7,062 while cash cost to produce dried cannabis fell 22% to C$1.11 per gram. For fiscal 2020, the company expects revenue of C$575 million to C$625 million, above the FactSet consensus of C$571 million. "We are continuing to expand our capabilities internationally with solid progress during the quarter in Germany and South America and look to monetize non-core assets," said Chief Executive Irwin Simon. "We are confident in our market position and our ability to generate sustainable profit growth." The stock has rallied 25% over the past three months through Monday, while the ETFMG Alternative Harvest ETF has lost 5.8% and the S&P 500 has gained 11%.
Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA) today reported its results for the second quarter ended November 30, 2019. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts. The Company also announced that Irwin D. Simon, will officially remove "interim" from his title, effective today. In addition to his responsibilities as Aphria's Chairman of the Board, Mr. Simon had been serving as Interim Chief Executive Officer since February 2019.
Last year wasn't encouraging for investors in cannabis stocks. And despite the company's comparatively strong revenues, Aphria (NYSE:APHA) stock was collateral damage as risk-off sentiment dragged the sector lower. The so-called Cannabis 2.0, in which edibles and vaping products were expected to drive marijuana-market revenues in Canada in late 2019, simply didn't pan out and investors punished practically every pot stock in sight.Source: Shutterstock Jan. 14's earnings announcement will mark the next chapter in the ongoing development of Aphria stock. However, I'm looking beyond January and past Cannabis 2.0 to a brighter future for this bold and ambitious company. If the share-price decline of more than 21% over the past year represents anything, it's a chance to own shares at a reasonable valuation and capitalize on Aphria's potential as a crown jewel among Canadian cannabis contenders. APHA Stock Gets a Nod of ApprovalAnalyst optimism isn't my number-one buy signal by any means. But a good word from a prominent financial firm certainly doesn't hurt. In the case of Aphria stock, analytics firm Jefferies bestowed the honor of naming it their top cannabis-sector pick -- not a minor feat amid a crowded sector.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith that, Jefferies also raised their price target for APHA stock from $8.30 to $8.40, citing "strong Canadian medical marijuana business, branding in the recreational market, and U.S. potential." I tend to concur with this sentiment, adding that Aphria never really needed Cannabis 2.0 to be a huge success; the company's revenues would undoubtedly benefit from expansion in the edibles and vaping sub-niches. But, the APHA stock price never depended on that. * 7 Inflation-Beating REITs to Ground Your Income Portfolio Not every analytic firm has been as effusive as Jefferies, mind you. Pablo Zuanic of Cantor Fitzgerald, for instance, cut his price target on APHA from $8.02 to $7.63; however, he did maintain his overweight rating on the stock. Note that Zuanic's forecast depends on lackluster global sales:"We continue to assume flat med sales at $8.8Mn, and no international sales (for now)."As I see it, the assumption of flat sales is far from assured.A positive surprise could force Zuanic and other analysts to revise their predictions, while (hopefully) propelling the share price higher. Standing Out with Consistent ProfitsBack-to-back profitable quarters might not be a notable feat in the world of blue-chips. However, among cannabis companies, it's a banner achievement.For the first fiscal quarter of 2020, Aphria attained this and blew analyst expectations out of the water; thereby separating itself from the pack of cannabis companies with uncertain profit profiles.While the analyst consensus was that Aphria would report a per-share loss of CA$0.02 in that quarter, the company made the critics look foolish with a gain of CA$0.07 per share; the previous quarter's gain had been CA$0.05 per share. Also impressively, the first fiscal quarter revenues came to CA$126.1 million while the net income was CA$15.8 million.These were unusual results within the cannabis sector. And analysts had little choice but to raise the expectations for the next earnings announcement. Specifically, the analyst consensus estimate is CA$130.3 million, representing a 3.3% increase over the actual results from the first fiscal quarter.Though it might move the Aphira stock price in the short term, it's ultimately of little consequence whether the company's posted result matches the expectation of CA$130.3 million in revenues. My focus is on the expansion and market share of the company itself. And Aphria remains a practically peerless power player with 255,000 kilograms of expected annual cannabis-product output and an astounding 1,300,000-square-foot production space in the company's Leamington greenhouse facility. The Takeaway on Aphria StockI must admit, I couldn't care less whether Aphria stock ranks as number one or number 101 on Jefferies' list of their top cannabis-stock picks. To be perfectly frank, moreover, I hope that you're not basing your trading decisions on analysts' opinions. Even if those analysts have decent track records.Of much greater consequence is Aphria's ability to deliver results and stay several steps ahead of its competitors. Two consecutive positive earnings surprises made some appointed "experts" look silly, and a third surprise might be in the cards. Yet, it wouldn't surprise me if Aphria stock recovers what it lost in 2019 -- and much more.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 * 7 Inflation-Beating REITs to Ground Your Income Portfolio * 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount * 7 Earnings Reports to Watch This Week The post Aphria Stock Will Deliver Results Even If Cannabis 2.0 Disappoints appeared first on InvestorPlace.
With no reason to sell off, why wouldn't stocks continue higher on Monday? Let's look at a few top stock trades for Tuesday, when earnings season will begin with the banks. Top Stock Trades for Tomorrow No. 1: Canopy Growth (CGC)Source: Chart courtesy of StockCharts.comThe cannabis space is far from being out of the woods, but there are two names in the group that I have liked recently, one of which is Canopy Growth (NYSE:CGC).Canopy shares are hitting their highest level since October, as shares push higher on Monday. In doing so, CGC is reclaiming both the $22 level and the 100-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt might get there in a few days or it might take a few months, but a rally up and over $25 into the upper-$20s shouldn't be out of the question now. * 7 Inflation-Beating REITs to Ground Your Income Portfolio On the downside, it would be best for CGC to hold $21.50 as support. Below that level and bulls will need to see the 50-day and uptrend support (purple line) need to hold as support. Top Stock Trades for Tomorrow No. 2: AT&T (T)Source: Chart courtesy of StockCharts.comResistance continues to hold near $39 for AT&T (NYSE:T), while Monday's pullback is sending T stock right into the 50-day moving average and uptrend support (blue line). This one is simple now.Below uptrend support and the 100-day moving average is in play. Below that and the $36 to $36.50 area is possible. If current support holds, look for a rebound back up to $39. If it can get over that level, AT&T could be looking at $40-plus. Top Stock Trades for Tomorrow No. 3: Roku (ROKU)Source: Chart courtesy of StockCharts.comWhile many growth stocks have been rallying, Roku (NASDAQ:ROKU) has been struggling. Shares did reverse off $127 support on Monday, but still face downtrend resistance (blue line) overhead.Falling below the 20-day and 50-day moving averages does not bode well for momentum, but Roku isn't completely stuck.A move back over downtrend resistance and the 50-day moving average could trigger a rally up to $150-plus. However, a move below $127 puts the $117 to $120 area on watch, with the 200-day moving average just below. Top Stock Trades for Tomorrow No. 4: Aphria (APHA)Source: Chart courtesy of StockCharts.comAt the top, I mentioned that I liked two cannabis stocks. CGC was the first and Aphria (NYSE:APHA) is the other. The latter isn't moving quite as nicely as the former, but it's showing breakout potential.Rallying into the 100-day moving average and downtrend resistance (blue line) now, APHA stock has a chance to power higher and draw in buyers.A move over $5.50 would add to its momentum and put the declining 200-day moving average in play. If it can't hurdle current resistance, see that it holds up over the 50-day moving average. Below that level puts $4.50 back on the table. Top Stock Trades for Tomorrow No. 5: Invitae (NVTA)Source: Chart courtesy of StockCharts.comWhat a wild ride it has been with Invitae (NASDAQ:NVTA). Shares are surging higher on Monday after an update from management on Sunday night regarding 2019 results and 2020 guidance.The news sent shares higher by about 10%, with many longs wondering if this is the start of something big or if it will ultimately deflate like the last pop.The stock is back over $17, while uptrend support (blue line) continues to hold. Shares are clearing downtrend resistance (purple line), and while investors will be looking at $20, that's not the level to watch. Instead, it's the 50-week moving average at $20.55.Over that level and NVTA can really start to find its momentum.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU, T, APHA and NVTA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Inflation-Beating REITs to Ground Your Income Portfolio * 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount * 7 Earnings Reports to Watch This Week The post 5 Top Stock Trades for Tuesday: CGC, T, ROKU appeared first on InvestorPlace.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.Earnings season picks up next week at a critical time for the market. With the mini-crisis in Iran apparently fading, happy days are here again for U.S. stocks. Strong trading early Friday suggests equity markets will close the week at all-time highs once again.At this point, it doesn't seem like earnings reports next week need to be hugely impressive to keep the rally going. After all, earnings in recent quarters haven't been that impressive. U.S. companies are in a so-called earnings recession, yet U.S. stocks have risen regardless.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The Top 15 Stocks to Buy in 2020 With external factors like the trade war and interest rates positive, investors don't appear to need blowout earnings. 'Good enough' results will be good enough for the market. As the earnings calendar fills up next week, these seven companies, in particular, need to avoid the type of pitfall that could set off alarms for investors. JPMorgan Chase (JPM) and Bank of America (BAC)Source: Shutterstock Earnings Report Date: Tuesday, Jan. 14, before market open (JPM); Wednesday, Jan. 15, before market open (BAC)JPMorgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC) lead a banking sector that heads into earnings season at an interesting point. Both stocks, along with big bank peers Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C), have broken out nicely in the last few months. The gains were driven in part by strong earnings reports across the sector in October.This time around, however, expectations are much higher. Big bank stocks certainly aren't expensive, but with JPM stock, for instance, up 22% in the last three months, there's not much room for error in earnings for any member of the group. Nor can a market at all-time highs afford soft results or a negative outlook from its financial industry leaders.Bank earnings, in short, need to deliver. At this point in the rally, they probably can't move the market higher on their own -- but soft reports from the sector almost definitely would send it lower. Aphria (APHA)Source: Shutterstock Earnings Report Date: Tuesday, Jan. 14, before market openThere are two questions ahead of fiscal second quarter earnings from Aphria (NYSE:APHA) on Tuesday morning. The first is: what will earnings look like? And the second is: will it matter?After all, Aphria has posted impressive results of late. The company was the first major cannabis stock to reach profitability, if on an Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) basis. It's guiding for solid fiscal 2020 results, the type of results which cannabis investors seem to be seeking.But that performance has done nothing for the stock, or the sector. Aphria stock has stabilized since October, but continues to drift in the wrong direction. It hasn't traded much differently than other cannabis stocks like Canopy Growth (NYSE:CGC) and Cronos Group (NASDAQ:CRON). * 7 Stocks That Are Screaming Buys Right Now In that context, investors should watch the reaction to Aphria earnings quite closely. After the last two quarters, investors have shrugged at strong results from Aphria and punished the likes of Canopy and Aurora Cannabis (NYSE:ACB) for missing estimates. If APHA stock again fails to rally after an impressive quarter, investors elsewhere in the sector should be on guard ahead of a cluster of cannabis earnings releases due in February. Delta Air Lines (DAL)Source: Markus Mainka / Shutterstock.com Earnings Report Date: Tuesday, Jan. 14, before market openThere's an odd similarity between APHA stock and airline stocks like Delta Air Lines (NYSE:DAL). Airline stocks, too, seem to have delivered what investors want. Earnings generally have grown nicely in recent years, though the 737 MAX debacle at Boeing (NYSE:BA) has caused some short-term disruption of late. The economy is strong. Demographic tailwinds (pardon the pun) should help the industry, as millennials focus on experiences over products, and the rising middle class in developing markets creates new passengers.Airlines even have managed the intense price competition in the sector, in the process converting long-time skeptic Warren Buffett of Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B). Yet the sector has underperformed. DAL stock, for instance, has gained 21% total over the past five years. The S&P 500 has risen over 58%.As a result, there's a case for airline stocks to be big winners in 2020, as I argued last month. And if the sector is going to outperform, Delta must post a strong report on Tuesday monring. Delta doesn't fly the 737 MAX, making its results more reflective of the underlying health of the industry. As a result, the sector needs Delta to deliver good news -- even if recent history suggests a strong report alone won't be enough to change investor minds. UnitedHealth Group (UNH)Source: Ken Wolter / Shutterstock.com Earnings Report Date: Wednesday, Jan. 15, before market openFourth quarter results from UnitedHealth Group (NYSE:UNH) on Wednesday morning look reasonably important for UnitedHealth, which hardly is the type of company for which a single quarter usually changes the story. UNH stock heads into the release just off an all-time high -- but the stock still trades at 18x current 2021 earnings per share consensus estimates.So there's the question of whether UnitedHealth can deliver another strong quarter. But as with other big reports, the equally intriguing question will be how investors react. Does the market see valuation full to the extent that nothing short of a blowout moves UNH higher? Or does UnitedHealth still get rewarded for what likely will be at least an impressive quarter? * 8 of the Strangest Stocks Worth Your Time If UNH can rally after earnings, that bodes well for other quality names near the highs, which too might have more gains remaining. PPG Industries (PPG)Source: Shutterstock Earnings Report Date: Thursday, Jan. 16, before market openCoatings and paint manufacturer PPG Industries (NYSE:PPG) isn't going to move markets on Thurday with its fourth quarter report. But it's worth at least checking in on PPG's results.After all, names like 3M (NYSE:MMM) and DuPont (NYSE:DD) are trying to rally. PPG's business overlaps with both of those giants, and its earnings could give at least a signal as to underlying demand.Good earnings from PPG would be a good sign for both stocks. A strong reaction from the market to such a report would help as well, given that PPG at 19x forward earnings remains cheap enough to rally going forward.But a weak report could have wider consequence. PPG has a reasonably broad reach. If its management is worried on Thursday -- which I don't expect will happen -- investors should be too. As a result, a strong report from PPG would go along to helping peers and calming investor nerves ahead of the deluge of reports coming in the second half of the month. CSX Corporation (CSX)Source: Wangkun Jia / Shutterstock.com Earnings Report Date: Thursday, Jan. 16, after market closeRailroad operator CSX Corporation (NYSE:CSX) has a sneakily important fourth quarter report due on Thursday evening. CSX itself needs a good report: its stock has managed to grind higher since plunging after second quarter results in July, but still sits almost 9% off its highs. Strong numbers and a bullish outlook will give CSX a chance to at least target new highs.Earnings here are important for the sector as well. CSX isn't the largest railroad operator, but it's been one of the most aggressive in implementing "precision scheduled railroading". And as I wrote last year, there are increasing worries that the strategy is a problem, or at least no longer a benefit, to CSX stock. There's a case that the benefits at this point simply have been achieved, meaning margin improvements will be much more difficult to drive going forward.A strong Q4 from CSX would assuage those worries. A weak quarter will amplify them. And so earnings seem likely to have a big effect on CSX -- and to set the tone for the rest of the sector as earnings season ramps up.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post 7 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
CALGARY , Jan. 7, 2020 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), a 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 loan agreement (the "Loan Agreement") with Windsor Private Capital ("Windsor"), a Toronto -based merchant bank, to secure a senior secured, non-revolving term credit facility (the "Facility") in the amount of up to $10 million . The Facility, which represents Windsor's first investment in the cannabis industry, provides High Tide with the needed flexibility to carry out its corporate objectives for 2020, which includes expanding into Ontario as the largest cannabis market in Canada .
Canopy Growth (NYSE:CGC) stock jumped more than 12% on the final day of 2019, its best single-day performance since early December. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile it's easy to get excited about the one-day romp, most of the other major Canadian cannabis companies had good days on Dec. 31, with Aurora Cannabis (NYSE:ACB) and Aphria (NYSE:APHA) gaining 13.1% and 10.4%, respectively. The fact that many names in the sector climbed indicates that the gains may have been nothing more than a much-needed relief rally. So the question for Canopy Growth shareholders is whether the latest move was a dead-cat bounce or the beginning of something bigger. Here are some arguments on both sides of the issue. Canopy's Latest Jump Is TemporaryCanopy Growth's most significant problem is the black market. While wholesale prices of pot have dropped by approximately 17% since the legalization of dried cannabis in October 2018, black market prices have remained much lower than those of the legal retail stores in Canada. That situation, combined with a shortage of retail stores, is why the black market still accounts for a majority of Canadian cannabis sales. * 10 2019 Winners That Will Be 2020 Losers "There's a very strong resistance to the legal stores in the sense that a) it's more expensive and b) there aren't enough of them. (Buyers are) not close to them, so they just deal with their local guy like they always have," said Robin Ellis, the co-founder of a Toronto cannabis retailer. Producers of dried cannabis built up the capacity to meet projected demand, but the lack of retail locations in Ontario, Canada's most populous province, led to severe surpluses of legal cannabis supplies. Although Ontario scrapped its silly lottery system for awarding new retail stores in favor of an open-market system that allows anyone to apply to open stores, the new system only started on Jan. 1. It won't meaningfully increase cannabis sales until the second half of this year. In the meantime, Canopy has ramped up its spending to get its beverages and edibles into the hands of consumers, It's also launched its first hemp-derived CBD product in the U.S.. But InvestorPlace contributor Mark Hake thinks these initiatives will continue to hurt the company's margins. In the first six months of fiscal 2020, Canopy Growth's adjusted EBITDA losses were 248 million CAD, three times larger than in the same period a year earlier. Until the company's new products improve its results, it's hard to imagine investors paying more than the current prices to own the company's stock. Canopy's Stock Will Rally Much FurtherIn my last article about Canopy Growth in early December, I recommended that investors ignore the class-action lawsuits springing up against the company due to its falling stock price and increasing losses. I felt that the company was wise to let its lawyers deal with the legal sideshow while it focused on growing its business. Most importantly, I thought it needed to hire a CEO who could help reignite the company's growth. I didn't believe that Canopy Growth would hire a new CEO by the end of the year. But true to its word, on Dec. 10 it announced that Constellation Brands (NYSE:STZ) CFO David Klein would take over as Canopy's permanent CEO on Jan. 14. Portfolio manager Tim Seymour was upbeat about Klein. "This appointment of truly a consumer products CEO, someone who knows the CPG world very well and someone who knows this company very well, is very exciting, I think he's the right man for the job," Seymour told CNBC after the announcement. I second that emotion. Klein's been chairman of Canopy Growth since November. Before that, as Constellation's CFO, he was very knowledgeable about Canopy, in which Constellation had invested billions of dollars. As a result, his transition into the CEO position will be easy. Furthermore, Canopy Growth's current CFO also came from Constellation, so its two top executives will already be well-acquainted with each other. They can hit the ground running.Over the long-term, I believe that Canopy Growth's current financial position puts it heads above most of its Canadian competitors. Now that it has the right CEO in place, it can return to focusing on growth while also boosting its profitability.Its pathway to profitability might be a little blurry at the moment, but it will get there. In the meantime, the volatility of its stock is unlikely to disappear anytime soon. That said, I do believe that the shares can reach $30 or more in the next 12 months. I believe that Caopy's rally will continue.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 2019 Winners That Will Be 2020 Losers * 5-Year Returns for 5 Dow Jones Stocks Entering 2020 * 5 Semiconductor Stocks to Buy for Big Gains In 2020 The post Did Canopy Growth Stock Just Have a Dead Cat Bounce?Â appeared first on InvestorPlace.