APHA Jan 2021 5.000 put

OPR - OPR Delayed Price. Currency in USD
-0.1000 (-5.88%)
As of 1:47PM EDT. Market open.
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Previous Close1.7000
Expire Date2021-01-15
Day's Range1.5500 - 1.6000
Contract RangeN/A
Open Interest20.23k
  • Cannabis stocks under pressure after weak earnings
    Yahoo Finance Video

    Cannabis stocks under pressure after weak earnings

    Once heating up, cannabis stocks are beginning to lose their steam. Yahoo Finance talks to Hershel Gerson, ELLO Capital CEO & Managing Director who says since the Farm Bill passed "CBD is going to grow a little bit quicker cannabis generally."

  • How this pure-play cannabis ETF can diversify investor portfolios
    Yahoo Finance Video

    How this pure-play cannabis ETF can diversify investor portfolios

    Investors can now get a piece of the booming cannabis market without having to buy the individual stocks. Matt Markiewicz, Innovation Shares managing director, joins Akiko Fujita on 'The Ticker' to discuss.

  • Aphria’s Strategic Growth Initiatives Drive APHA Stock
    Market Realist

    Aphria’s Strategic Growth Initiatives Drive APHA Stock

    Aphria stock (APHA) has surged 26.4% since the company announced its Q4 earnings results. Will Aphria's growth strategy keep paying off?

  • Jim Cramer: Cronos and Aphria Passed Canopy Growth
    Market Realist

    Jim Cramer: Cronos and Aphria Passed Canopy Growth

    On Tuesday, Jim Cramer stated that Cronos Group and Aphria passed Canopy Growth. Canopy Growth has lost 15.3% of its stock value since its Q1 earnings.

  • Aphria’s Q4 Earnings Said a Lot About the Outlook of Aphria Stock

    Aphria’s Q4 Earnings Said a Lot About the Outlook of Aphria Stock

    It's been almost three weeks since Aphria (NYSE:APHA) announced surprisingly strong fiscal Q4 earnings, sending Aphria stock up by nearly 20%. The headlines about Aphria's results were all very positive. Here are three examples: * Aphria Earnings, Sales Beat, Helped By Distribution; Aphria Stock, Marijuana Stocks Jump- Investor's Business Daily * Aphria Posts Surprise Profit as Cannabis Sales Volumes Double - Financial Post * Aphria Inc. Announces 158% Increase in Adult-Use Sales and Profitable Fourth Quarter- Aphria press releaseSource: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsGranted, that last headline was written by the company, but generally, the business media were quite positive about Aphria's return to profitability. * 10 Undervalued Stocks With Breakout Potential Back in early July, I suggested that aggressive investors ought to consider buying Aphria stock because the company's new facility would enable it to to deliver significantly more cannabis. As a result, I thought APHA would be able to make a big push into the vaping market, which is expected to account for 30% of the entire market by 2021. I believed that,in turn, would be a strong positive catalyst for Aphria stock. However, before I put a rubber stamp on APHA stock, I thought I should look at the finer points of Aphria's results to see if I could uncover any red flags that could hurt Aphria stock. The Positives of Aphria's Q4 ResultsAs Investor's Business Daily pointed out, Aphria's overall revenue in Q4 jumped 75% to C$128.6 million, 31% higher than analysts' average estimate. Even better, Aphria's revenue from recreational pot grew 158% year-over-year to C$18.5 million. APHA has two primary revenue streams: Distribution revenue and net cannabis revenue. In Q4, distribution revenue increased 72% versus Q3 to C$99.2 million, while net cannabis revenue jumped 86% quarter-over-quarter to C$28.6 million. Aphria's distribution revenue accounted for 77% of its overall revenue. Most of its distribution revenue is from CC Pharma, the company's German pharmaceutical distribution business, which Aphria acquired last November. APHA generated net profit of C$15.8 million in Q4. It now expects 2020 revenue of C$650-700 million and adjusted EBITDA of at least C$88 million. Also, the number of kilograms of cannabis sold by APHA in the quarter doubled to 5,574, and its average cost of goods sold per gram sank 51 cents to C$2.35 a gram.It's no wonder that APHA stock initially jumped by 40% on the news. The Negative AspectThe biggest negative aspect of Aphria's Q4 2019 report is that its distribution business' gross margin is significantly lower than its gross margin from dried cannabis. In Q4, its distribution business generated a gross profit of C$12,274, 19% lower than the gross profit of its cannabis business. Put another way; cannabis generates 53 cents gross profit for every dollar of sales compared to 12 cents for its distribution business. At the end of the day, while the gross margins of its cannabis operations are impressive, it's going to need its distribution business to start contributing more to the bottom line, either by generating increased medical cannabis sales to pharmacists in Germany or by lowering the distribution unit's overall costs. Until the cannabis side of the business can generate more than the C$100 million of annual sales it posted last quarter, APHA's gross profits will continue to be relatively low, considering its top line. The Bottom Line on Aphria Stock Aphria's business continues to head in the right direction, thanks to the vice-like grip of its chairman, Irwin Simon, on the company. With its cannabis output expected to rise meaningfully, leading to better results in 2020, I continue to see Aphria stock as significantly undervalued compared to some of its bigger peers. On a scale of one to ten, I'd rate APHA's Q4 earnings a solid eight, painting a bright future for the Canadian cannabis company. 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 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Aphriaa€™s Q4 Earnings Said a Lot About the Outlook of Aphria Stock appeared first on InvestorPlace.

  • High Tide Exhibits and Presents Canna Cabana at AMO Conference in Ottawa
    CNW Group

    High Tide Exhibits and Presents Canna Cabana at AMO Conference in Ottawa

    CALGARY , Aug. 20, 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 Company will feature its Canna Cabana retail cannabis business in the exhibit hall and during a presentation at the Association of Municipalities of Ontario Conference in Ottawa, Ontario ("AMO Conference"). The presentation entitled "Cannabis Retail: Making it Work for Your Community" will be presented at the AMO Conference by Nick Kuzyk , Chief Strategy Officer & SVP Capital Markets at noon on August 20, 2019 in Confederation Ballroom 2 on the 4th Floor of the Westin Hotel. Currently, there are 3 branded Canna Cabana locations in Hamilton , Sudbury and Toronto, Ontario .

  • Aphria Inc. (APHA) Gains But Lags Market: What You Should Know

    Aphria Inc. (APHA) Gains But Lags Market: What You Should Know

    Aphria Inc. (APHA) closed the most recent trading day at $6.24, moving +0.97% from the previous trading session.

  • 7 Marijuana Penny Stocks That I May Buy

    7 Marijuana Penny Stocks That I May Buy

    [Editor's note: This article was originally published in July 2019. It has since been updated to reflect changes in the market.]Investing in penny stocks can be appealing to some. And investing in marijuana penny stocks can be even more appealing … if you're willing to take massive risks. But with great risks comes even greater potential rewards.Surely, in an industry with the growth potential of cannabis there must be some stocks out there that are future millionaire makers. But, while every investor has dreams of finding the next Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) amid the pile of cheap stocks, you need to be very careful when investing in any highly risky area of the markets.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAfter all, these companies are penny stocks for a reason. And most of them will not survive. * 10 Undervalued Stocks With Breakout Potential The following marijuana penny stocks are offer interesting opportunities for investors willing to take risks on the future of the marijuana industry. While note of these are flat-out buys in my book -- you have to make your own decisions -- these companies have all recently had some positive developments that might make them good long-term plays. GrowGeneration Corp (GRWG)GrowGeneration Corp (OTCMKTS:GRWG) sells products for hydroponic growing. GRWG announced in July that it has appointed Bob Nardelli as a strategic advisor. As the former CEO of Home Depot (NYSE:HD), its pretty obvious that he will bring tremendous experience and wisdom to the table.The company just reported its Q2 2019 results and they looked pretty good. Net income was $1,062,000. During the same period last year, the company reported a loss of $929,959. Same store sales were up 23% versus last year's quarter. In addition, the gross profit margin increased to 29.9% from 24.2% for Q2 2018.Despite these positives, the stock is overbought and there is resistance at the $5.05 level, which is just above where it is trading. This level was resistance last year in April and September. 48North Cannabis Corp (NRTH)48North Cannabis Corp (TSE:NRTH) grows and sells medical marijuana. I like this company because it is an outdoor organic grower and I think this type of growing will be the way the industry trends … 48North is already ahead of the curve.The company just announced Charles Vennat as its Chief Corporate Officer. Mr. Vennat is an experienced veteran who was most recently the President of Bastos of Canada. He will drive the company's business plan and strategic vision.The marijuana industry is full of incompetent management teams. Many are comprised of idealistic entrepreneurs who got the business up and running but don't have the skills to manage it as it grows. * 10 Mid-Cap Dividend Stocks to Buy Now Bringing in senior level management could give NRTH an advantage over is competitors that are managed by people with less experience. The company also announced that it has successfully completed its first shipment to the Ontario Cannabis Store. This marks its entry into Ontario's recreational retail market. Body & Mind Inc (BMMJ)Body & Mind Inc (OTCMKTS:BMMJ) is involved in the provision of medical cannabis. This company operates in Nevada, California, Ohio and Arkansas. It just announced that it has qualified to trade on the OTCBQ Venture Market.Typically when a company qualifies to be listed on an exchange investors consider it a positive thing. This will provide greater transparency and more liquidity for the penny stock.In addition, last month, Body and Mind announced that is has been added to the Horizons U.S. Marijuana Index ETF. This will give the company greater exposure to investors.Maybe this news will help turn the price of the stock around. Since April, it is has dropped from $2.60 to 62 cents. Flower One Holdings Inc (FLOOF)Flower One Holdings Inc (OTCMKTS:FLOOF) produces and sells wholesale cannabis. This company just reported its Q2 2019 results and it exceeded expectations.In addition, the company announced that it has also obtained up to $30 million in debt financing and that its stock has been upgraded from the OTCBQ to the OTCQX exchange.From a technical perspective, the stock is at an interesting inflection point. It is testing support around the $1.80 level. This level was also support in March and June. If it breaks, the stock could make a rapid move lower.This is because it gapped up in February and gaps tend to refill quickly. Support is formed when sellers believe they made a mistake selling after the stock goes higher. They tell themselves that if it comes back down to the level they will buy it back. This demand for the stock at a particular level is what forms support. * 7 Vanguard Funds for Conservative Investors Because FLOOF spent such a limited amount of time trading between $1.20 and $1.80 in February, there probably wasn't enough time for meaningful support in this zone. And thanks to this lack of support, the gap could be refilled quickly. Global Hemp Group (GBHPF)Global Hemp Group (OTCMKTS:GBHPF) develops hemp cultivation for cannabinoid extraction. This company recently announced that its subsidiary, Covered Bridge Acres, has completed preparing 35 acres at its Scio, Oregon farm.Most of the large cannabis companies such as Aphria (NYSE:APHA) and Aurora Cannabis (NYSE:ACB) grow their cannabis either in indoor growing facilities or greenhouses. There are advantages to these methods compared to outdoor growing, such as greater security and the ability to grow year round.However, outdoor growing is considerably cheaper. I've seen estimates that the costs are between 10 - 25% of the other methods. In addition, some argue that cannabis that is grown outside is better than cannabis grown indoors. This is because it is grown with natural sunlight and soil.Given these dynamics, companies that are outdoor growers have advantages over the larger indoor growers. As such, I would expect that eventually companies like Global Hemp will be acquired by the larger companies. Global Cannabis Applications Corp (FUAPF)Global Cannabis Applications Corp (OTCMKTS:FUAPF) is involved in the development of smart phone applications for the cannabis industry. This company announced that it has appointed Shay Meir to the position of General Manager, Global Grow Operations.Meir was one of the first 10 Israelis to hold a license to cultivate cannabis. He set up a research lab and worked closely with the Israeli Ministry of Health to research and develop cannabis for medical purposes. * 15 Growth Stocks to Buy for the Long Haul He is a pioneer in the medical cannabis field and his addition to the company should be a positive. Maybe it will help to turn the stock around. It the past year, FUAPF has dropped from 25 cents to 4 cents. Emerald Health Therapeutics (EMHTF)Emerald Health Therapeutics (OTCMKTS:EMHTF) is a Canadian producer of cannabis products. Pure Sunfarms is a joint venture that is 50% owned by Emerald. It just announced preliminary results. The full, second-quarter earnings release will be out on Aug. 28.Pure Sunfarms reported all-in growing costs of 65 cents Canadian to grow one gram of cannabis. In U.S. dollars, that would be about 48 cents.To put this into perspective, consider that Aurora Cannabis recently reported that its cost to produce a gram is $1.42 -- nearly three times as much.In addition, sales increased sequentially by 125% and the company reported its third quarter of profitability. This may not sound like its that big of a deal, but consider that most companies in this industry are losing money and it's a bit more impressive.EMHTF stock continues to hold the $1.50 support level. If this level breaks, we could get a large move lower.As of this writing, Mark Putrino did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post 7 Marijuana Penny Stocks That I May Buy appeared first on InvestorPlace.

  • How to Position Smartly in ACB Stock

    How to Position Smartly in ACB Stock

    For would-be Aurora Cannabis (NYSE:ACB) bulls intent not to get drawn-in and smoked in a promising secular market trend, the suggestion remains the same. Don't fix what isn't broken and stick with the ACB stock price chart rather than outside influences. Let me explain:It has been a month since cautiously writing about ACB stock and putting the cannabis producer on the radar for purchase. But similar to an even earlier discussion of Aurora, action was specific to the price chart. And on each occasion, shares of Aurora Cannabis failed to deliver a "show me the money" signal worth buying into. Thank you, ACB stock. * 10 Cheap Dividend Stocks to Load Up On With ACB stock down another 17% and over 50% removed from last October's all-time-high, is it finally time to look past Aurora's larger-than-expected loss and reduced Q4 revenue guidance delivered in May? Shouldn't investors support the long game in ACB stock as Canada's second-largest recreational and medical player? Maybe.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven the decline in ACB stock, doesn't it now make more sense than ever to embrace Aurora Cannabis as a recognized global leader via the company's aggressive acquisition strategy and licensing wins? Again, it's certainly worth thinking about.The truth of the matter is, it's wholly acceptable to buck price weakness and sour sentiment in favor of a promising longer-term investment. And this isn't just advice for ACB stock. Even Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) investors are asking those questions right now.But if the investment in question is ACB stock, you'd be in good company too. Jim Simmons' Renaissance Technologies hedge fund certainly believes in the ACB stock story. Per 13F filings, the famed quant fund has purchased nearly 1.70 million shares over the past two quarters. The fund has also built a smaller position of around 240,000 shares in cannabis peer Aphria (NYSE:APHA).It's good information, but rather than simply get drawn in to Aurora by outside influences, albeit prominent ones, it's also nice to know the ACB stock price chart also supports this investment proposition in today's market. ACB Stock Weekly ChartThere's always the chance of failure when it comes to investments in risk assets like stocks. Right now though, using a solid-looking opportunity on Aurora's price chart in conjunction with an above-the-market buy order and adherence to a technical stop-loss can avoid much larger regrets within one's portfolio.Currently shares of ACB are in a testing position of channel and Fibonacci support backed by the 62% retracement level. I've used 2017's low and that same year's massive breakout in the design of this key support area near $5.50. Also supportive, ACB stock is oversold and generated a stochastics crossover signal a couple weeks ago.My advice today is a familiar approach when it comes to buying ACB stock. I'd recommend investors put Aurora on the radar for purchase if last week's pivot low can hold support, and confirm a bottoming candlestick is in place. It's that simple.Using an entry above $6.75 and setting a stop 10 cents beneath the candle amounts to dollar risk of $1.20 for the position. Size the position accordingly and in return for that exposure, I'd set a price target of $9.75 - $10.50 for taking partial profits which looks sensible off and on the price chart.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post How to Position Smartly in ACB Stock appeared first on InvestorPlace.

  • Social Ads Not the Only Risk to HEXO Stock

    Social Ads Not the Only Risk to HEXO Stock

    At the end of July, a short seller went after Hexo Corp. (NYSE:HEXO) -- and the market yawned. In fact, the HEXO stock price bottomed the Friday before, gained 9% the day of the report, and even with a pullback is up over 11% since the session before its release.Source: Shutterstock The market's lack of response isn't terribly surprising. Short sellers have had a few high-profile misses of late. In late 2017, Citron Research infamously compared Shopify (NYSE:SHOP) to Herbalife (NYSE:HLF); SHOP stock has tripled since then. * 10 Stocks Under $5 to Buy for Fall Closer to home, in December Quintessential Capital Management alleged self-dealing at fellow cannabis producer Aphria (NYSE:APHA). Quintessential made some good points: Aphria took a C$50 million impairment on acquired assets barely four months later. APHA stock lost half its value after the release, then promptly rose 150% before fading along with other cannabis plays.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo there are some reasons why investors might see this bear raid, too, as much ado about nothing. And in terms of the most widely-covered allegation, it may be. But the report does highlight some potential risks to HEXO stock -- risks that investors would be wise to at least keep in mind going forward. The Snapchat Risk to Hexo StockThe primary allegation from short seller The Friendly Bear is that Hexo's advertising on Snap (NYSE:SNAP) platform Snapchat could violate Health Canada regulations. The Friendly Bear compared Hexo to CannTrust Holdings (NYSE:CTST), whose stock plunged after illegal grow rooms put its production license at risk.The argument is intriguing, if a little thin. Health Canada regulations prohibit advertising of any kind to minors (those under 18, the federal minimum age for cannabis purchase in the country, though most provinces set the age at 19). Snapchat, of course, sees heavy usage among teenagers.But, as The Friendly Bear points out, the regulator also forbids advertising that associates the brand with "glamour, recreation, excitement, vitality, risk or daring." An ad captioned "A Fresh Spark" may well fit that bill. Both issues are amplified by the fact that Health Canada, in March, emphasized both the promotional nature of some online advertising and pointed to concerns about social media ads being seen by customers who were not of age.In a statement to Bloomberg, Hexo refuted the report. It noted that it doesn't run campaigns in its home province of Quebec, where regulations are more stringent. And it said its agreement with Snapchat ensures ads reach only adults.That response seems to have satisfied investors. And perhaps with good reason. The regulations are stringent, and perhaps somewhat vague. Even if Health Canada determined that the ads were in violation, one imagines Hexo would be able to pull or revise its advertising. Comparing Hexo to CannTrust, in particular, seems like a potential bridge too far. Two More Risks to the HEXO Stock PriceThat said, the report also contained two other intriguing facts that didn't seem to gain as much attention. First, the author highlighted a potential risk to Hexo's relative dominance in Quebec. The company owns about 30% share in that key market, thanks to a first mover advantage and its physical presence in the province.An agreement with the province ensures guaranteed purchases of 20,000 kilograms in year one, per a Hexo press release from last year. But it's not clear that the guaranteed extends beyond year one, with Hexo itself writing at the time that the agreement was "expected to supply" increased amounts going forward. With competition increasing, the expected growth in demand may not materialize.The second source of potential pressure comes from a recent regulatory measure. Quebec already has banned the sale of candies, in an effort to protect minors. Federal regulations on edibles appear to be much the same, ahead of the expected launch of those products near the end of this year.That's a potential issue for Hexo in Quebec and beyond. After all, Hexo itself is focused on becoming, as it terms it, "the premier branded 'ingredients for food' cannabis company." If regulations compress the edible market, Hexo, more than other cannabis plays, would suffer. Patience May Be Wise With HEXO StockNone of this is to say that investors should have sent the HEXO stock price tumbling -- or that Hexo stock is a short. I wrote last month that HEXO would be an intriguing buy at some point. The stock has returned to similar levels, but I'm still somewhat loath to rush in.The focus on edibles is wise for a smaller producer -- but that catalyst remains likely six months away. Cannabis stocks continue to struggle, with even Aphria's blowout earnings report not enough to spark a sector-wide rally.And Hexo Corp. doesn't have a lot of room for error. It remains reliant on Quebec. It will remain reliant on edibles going forward. If either of those two markets is smaller than hoped, Hexo's growth slows. And a market cap still over $1 billion (including the effect of warrants) may well come down. The HEXO stock price may be cheaper, but that's not the same as it being cheap.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Social Ads Not the Only Risk to HEXO Stock appeared first on InvestorPlace.

  • Canopy Growth Stock Is Not the Place for Near-Term Cannabis Refuge

    Canopy Growth Stock Is Not the Place for Near-Term Cannabis Refuge

    To be fair, it sure feels like no cannabis stock is offering refuge of any sort these days, but Canopy Growth (NYSE:CGC) really drives home that point as the shares labor more than 52% below their 52-week high. Using the strict definition of a bear market -- a decline of 20% from the most recent high -- CGC stock is in a bear market 2.5 times over.Source: Shutterstock It has often been noted that cannabis stocks require some patience on investors' part, but it has also been pointed out that Canopy stock is one of the names that tries investors' patience. For awhile, analysts and investors were willing to sacrifice cannabis companies' profitability for growth, but when Aphria (NYSE:APHA) recently turned a profit, regardless of the reason, the timetable for profitability in the cannabis space got moved up in a big way."Names who can show a route to profitability (or are there now) have the greatest likelihood attracting near-term investor interest," Jefferies analyst Ryan Tomkins said in a note.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's clear that investors will only prioritize growth for so long. It's becoming evident that profits, or at the very least, substantial revenue growth, are essential for cannabis companies to keep investors engaged. Tick Tock …Remembering that Canopy was the first well-known marijuana firm to ink a partnership with a big-name company, Constellation Brands (NYSE:STZ), and that it has a solid lineup of brands, such as Tweed, Spectrum Therapeutics, DNA Genetics, Doja and Maitri, makes the profitability all the more frustrating. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Some of Canopy stock's woes are self-inflected. There has been upheaval in the C-suite and little clarity on when the company will stop losing money. By some estimates, CGC will not show earnings before interest, taxes, depreciation and amortization until a year from now. And even then, investors should rightfully nitpick because EBITDA is a non-GAAP metric. The forecast for when Canopy will be truly profitable is far longer."Finally, we are aligned with Constellation Brands in the expectation that our consolidated operations will begin to deliver positive net income in the medium term that is within three to five years," Canopy CEO Mark Zekulin said on the company's recent earnings conference call.With Canopy stock trading at its lowest levels since January, the company can't have execution missteps as it had in the second quarter. As Zekulin pointed out on the conference call, Canadian customers were craving high-THC products in the quarter, but Canopy didn't have enough supply. Bottom Line on CGC StockExecution problems can be rectified, but when it comes to Canopy stock, there is some pause about the company's lack of execution in its home market of Canada, particularly as CGC has its eyes set on the lucrative U.S. market."Over the past two quarters, we have established offices in California and Colorado, and we'll soon be establishing offices in Illinois and New York," Zekulin said on the call. "We are currently involved in high-level discussions with key retailers in the United States, including being constructively involved with them as we collectively navigate the regulatory process. These investments in the U.S. CBD markets are significant."Canopy noted operational improvements in European markets including Germany, Poland, the Czech Republic and the United Kingdom.If Canopy Growth can show some operational excellence in the U.S. and those European markets, it would go a long way toward allaying investors' fears. Butt the bottom line is that revenue must increase and losses must decrease.As of this article, Todd Shriber does not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Canopy Growth Stock Is Not the Place for Near-Term Cannabis Refuge appeared first on InvestorPlace.

  • HEXO: Lower Target Price and Valuation Multiple
    Market Realist

    HEXO: Lower Target Price and Valuation Multiple

    As of August 13, HEXO (HEXO) was trading at 6.51 Canadian dollars—a fall of 30.9% since its third-quarter earnings on June 12.

  • The $4 billion time bomb ticking away inside the biggest marijuana companies

    The $4 billion time bomb ticking away inside the biggest marijuana companies

    Cannabis companies that have made acquisitions at the height of excitement about Canadian legalization last year may be facing some big goodwill writedowns.

  • Hedge Fund Legend Jim Simons Pours Money Into Aurora Cannabis (ACB) and Aphria (APHA) Stocks

    Hedge Fund Legend Jim Simons Pours Money Into Aurora Cannabis (ACB) and Aphria (APHA) Stocks

    In the last two quarters, billionaire, hedge fund manager, and mathematical genius Jim Simons has moved decisively into the cannabis sector, taking large positions in both Aurora Cannabis (ACB) and Aphria (APHA).Simons, known for his work in higher mathematics and military cryptography, founded the Renaissance Technologies hedge fund in 1982. The firm was a pioneer in quantitative trading, the application of higher mathematics to the financial markets, and has developed a reputation as one of the best returning hedge funds in the business. Simons retired from active direction of the company in 2009, but continues as non-executive chairman in an advisory role.Simons’ new positions in cannabis are considerable. Per the 13F filings, his firm purchased 788,595 shares of ACB, for $6.3 million, in Q1, and followed up in Q2 with an additional 905,305 shares at $7.1 million. Also in Q2, Simons picked up 241,500 shares of Aphria, at $1.7 million. Clearly, Simons sees something of value in the cannabis sector.Even the Skeptics See Potential in Aurora Cannabis Writing earlier this month, 4-star analyst Rommel Dionisio of Compass Point noted Aurora’s (ACB) high quarterly production and strong brand presence in the Canadian marijuana market. Aurora reported nearly 30,000 kilos of cannabis production in the last quarter, significantly more than the previous guidance of 25,000, and making Aurora one of the world’s largest medical/recreational cannabis producers.Dionisio hedges his bets on Aurora. He rates ACB as a Hold, but gives the stock a $8 price target, indicating a 33.5% upside from the current share price of $5.99. The analyst sees plenty of growth potential in Aurora’s strong production and hefty market share – all factors that brought Renaissance Technologies into this stock, as well. (To watch Dionisio's track record, click here)On the negative side of the ledger, Aurora lowered guidance of fiscal Q4 revenue, from $111 million to the range of $100 to $107 million. The reduction in revenue guidance comes even as the company is ramping up production, and Dionisio attributes it to “modest pricing pressure” as supplies increase in the Canadian market.Summing up Aurora’s situation, Dionisio says, “Aurora enjoys the second leading share of the important Canadian market, with approximately 20% market share in both the recreational and medical use markets. Moreover, through a series of acquisitions and license wins, Aurora has become one of the global front-runners in establishing an early presence in several countries in Europe and Latin America. Aurora … appears well positioned to remain one of the leading companies in the global cannabis industry, and as such warrants a premium valuation…”Overall, ACB gets a Moderate Buy rating from the analyst consensus, based on 3 buys and 4 holds given in the past three months. As mentioned, shares are selling for $5.99, so the $8.68 average price target suggests an upside of 45%. It’s important to note here that even the low-end price target, of $7, still suggests an upside of 16%, so even the true skeptics see some potential in the stock. (See ACB's price targets and analyst ratings on TipRanks)APHA Presents a Buying CaseWith a 967% increase in net sales recorded in Q2 2019, compared to the year-ago quarter, Aphria (APHA) presents on the surface with a much more clear-cut case for buying. Unlike many cannabis companies, which are still bleeding red ink as they work to pay for recent acquisitions and expansions, Aphria brought in a net profit of C$15.8 million.There is a possible shadow here. Of Aphria’s total revenue, C$128 million, C$99.2 million came from “distribution revenue” credited to its acquisition earlier this year of CC Pharma, the German medical cannabis company. Aphria’s own recreational sales increased 158% since last year, but still only totaled C$18.5 million. If Aphria should have to write down the CC Pharma acquisition costs, it may still show a profit – but that is not guaranteed.Despite the questions lingering around Aphria’s Q2 profits, analyst Justin Keywood, from GMP FirstEnergy, puts a Buy rating on APHA shares. In line with his bullish rating, Keywood gives APHA a C$14 price target – or $10.55 in US currency. His target implies an impressive upside of 70% from the stock’s current sales price on the NYSE. (To watch Keywood's track record, click here)Keywood sees the company’s combination of rapidly expanding production, high-quality product, and solid relations with government contacts (important for medical cannabis distribution in Canada’s nationalized health system) forming a solid foundation for both current operations and future growth.Keywood says, “Aphria is executing on a plan to significantly improve how it operates, while expanding rapidly. This is supported by our conversations with experts in the industry. Aphria also has $571mm in cash to support growth initiatives, while investing in derivative products, international operations and other strategic areas.”The Street largely seems to echo Keywood’s positive sentiment, considering TipRanks analytics showcase APHA as a Moderate Buy. Out of 7 analysts polled in the last 3 months, four are bullish on Aphria stock, while two remain sidelined, and one is bearish. The stock’s average price target of $10.57 represents about 70% upside potential. Like ACB, APHA’s lowest price target is significantly higher than the current share price, indicating an underlying confidence in the company, even among the naysayers. (See APHA's price targets and analyst ratings on TipRanks)

  • Aphria’s $70 million cash windfall is a product of its still-unexplained past

    Aphria’s $70 million cash windfall is a product of its still-unexplained past

    A look at cannabis producer Aphria Inc.’s stock since it released its annual report suggests something of a turnaround.

  • Aurora Cannabis’s Target Price and Valuation
    Market Realist

    Aurora Cannabis’s Target Price and Valuation

    Despite Aurora Cannabis providing higher-than-expected guidance for fiscal 2019's fourth quarter early this year, its stock has fallen 25.6% this month.

  • TipRanks

    Canopy Growth (CGC) Stock Suffers from Identity Crisis

    It was clear and obvious at the time of the firing of Canopy Growth (CGC) co-CEO Bruce Linton, that Constellation Brands wanted the company to start to move toward lowering costs and widening margins. At the time I noted that this would inevitably cause the revenue of the company to decline, and that was confirmed in its latest earnings report.Even so, the size of the miss for revenue was deeper than I was thinking, and it doesn't bode well for the earnings trajectory of the company when it not only failed to increase sales of oil and softgels, but experienced a disappointing decline in revenue in those important product categories. I'm far more concerned about that than the one-off adjustment it made in relationship to warrants held by Constellation Brands, associated with Canopy Growth buying the rights to acquire U.S.-based Acreage Holdings.That's exasperated by its unfavorable product mix that is heavily weighted to low-margin recreational pot sold in Canada.Unsurprisingly, investor sentiment is very negative, with individual portfolios in the TipRanks database showing a net pullback from CGC.Some Nasty NumbersThe biggest disappointment and surprise in the earnings report of Canopy Growth was its failure to even match the revenue generated in the prior quarter, which also fell short of expectations. Net revenue of C$90.5 million was 4 percent lower sequentially. The market was expecting an increase of 17 percent for the quarter against the previous quarter.Of that, C$60.8 million of that came from the Canadian dried cannabis recreational pot market, which is a low-margin product. It needs to improve its product mix going forward in order to boost sales while widening margins. If it doesn't accomplish that, it's going to decline far faster than I think it will as the company stands today.One bright spot in revenue was with medical cannabis sales at the international level, where the company managed to boost net sales from C1.8 million in the previous quarter to C$10.5 million in the reporting period.On the other hand, the drop in oil and softgel revenue in the first quarter was staggering. It only managed to sell C$0.2 million in the quarter, significantly down from oil and softgel revenue of C$36.5 million in its fiscal fourth quarter.Part of that was the result of the company making an adjustment concerning oils and softgels estimated product returns, but that was only part of the reason for the decline.Another concern I have in regard to revenue is the company saying it was the consequence of supply restraints, and yet Aphria (APHA), Cronos (CRON) and Aurora Cannabis (ACB) don't appear to have been hindered by that in the Canadian market to the same level Canopy Growth was. In the case of Aurora Cannabis, I'm assuming its unaudited numbers it released are close to its actual results, as it won't be reporting until September.Gross margin in the quarter was also dismal, finishing at 15 percent, not even reaching the 16 percent in the prior quarter. Analysts were looking for close to 23 percent.According to management, the weak gross margin was primarily from C$16.2 million in operating costs associated with production facilities that weren't fully operational in the quarter.The other factor was the aforementioned disastrous decline in oil and softgel sales, which would have offset some of the low margins related to dry cannabis sales.ConclusionAfter the last couple of weak earnings reports and the debacle surrounding the firing of Bruce Linton, it's apparent to me that Canopy Growth is struggling to find its identity and the way to go forward.One of the obvious problems to me in the timing of firing Linton was Constellation Brands had nothing in place to replace his vision for growth. That points to there being more problems than are visible to those on the outside. That's why the numbers are bad, even when accounting for adjustments.For that reason, the assertion by its CEO that it will have an annual revenue run rate of C$1 billion has to be taken with a healthy grain of salt, as the company is going in the wrong direction, and even with it saying CBD and derivative sales should climb in the quarters ahead, it's hard to believe it's going to find a way to generate C$250 million in quarterly sales anytime soon.That said, it can't do much worse in softgels and oils, so there's really nowhere to go but up, yet the company pointing to weaknesses in demand in the Canadian market against supply, means it'll have to rely heavily on other products to reach its revenue guidance. It don't see that happening within the time frame the company stated.Investors also have to remember that expectations are there will be a new CEO put in place that is officially approved of by Constellation Brands, which is now essentially in control of Canopy Growth.How that transition plays out is yet to be determined, and if the new CEO continues on with the strategy being implemented at this time, why is there a need for a new CEO, if that's how it works out?The truth is, there needs to be a new CEO hired sooner rather than later. As the company stands today, there won't be a sense of stability until that happens. And when it happens, I for one want to know what the real reason for changing management was, and if it is concerning growth as has been stated, than what is the difference in the type of growth instituted by Linton, and the type of growth Constellation Brands wants?I think the state of flux the company is in now will continue to hinder it from reaching its potential, and if things keep on going as they are, it's going to take a long time for the company to dig itself out of the hole it's now in.

  • Aphria Stock Is Ugly but Still Here, and That Is a Win

    Aphria Stock Is Ugly but Still Here, and That Is a Win

    By now, most InvestorPlace readers who follow my work will recognize my overall bullishness toward marijuana stocks. However, not all sector players are built the same, as controversial Aphria (NYSE:APHA) can attest. In an industry where competitors feed off each other, Aphria stock is in many ways a major liability.Source: Shutterstock That's because for all the work toward credibility that marijuana companies forward, APHA stock undoes this broader effort. As you may recall, Aphria was involved in a massive scandal over the past several months. It began with a short-seller's report making a damning accusation: management engaged in shady dealings for acquisitions that mostly benefitted insiders at the expense of shareholders.In response, the company's board of directors hired an independent committee to investigate the accusation. Eventually, that led to the ouster of former Aphria CEO Vic Neufeld and co-founder Cole Cacciavillani. Hain Celestial's (NASDAQ:HAIN) Irwin Simon stepped in as interim and now full-time CEO. In theory, this should spark a new direction for Aphria.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd to some extent, Simon helped steady the ship. Unfortunately, the company still has a credibility problem, which impacts both APHA stock and the cannabis industry. First, during the height of the controversy, Aphria promised to issue a line-by-line rebuttal of the short-seller report. Not only did management fail to provide that rebuttal, but they're also playing dumb about the whole issue. * 15 Growth Stocks to Buy for the Long Haul Second, APHA still maintains vagaries in its financial reporting. That makes Aphria look amateurish compared to proper heavyweights like Canopy Growth (NYSE:CGC). It's also a bad look for the stock, with investors questioning the equity's longer-term viability.Is it finally time to let APHA stock go? Aphria Stock Is Still Risky, but Also TemptingOn the surface, I can't help but have reservations toward APHA stock. We've seen short sellers attack marijuana firms before, but this was a very specific accusation. Worse yet, the targeted company is being very coy about the incident.As I dig deeper, the narrative gets uglier. Like I said before, it doesn't help that rivals are complying with GAAP reporting and regulatory standards. And more recently, the illegal growing scandal impacting CannTrust (NYSE:CTST) clouds the entire cannabis industry. Bluntly, why buy Aphria when you have so many other superior options available?It's a fair question and explains why part of me is extremely hesitant about these shares. On the other hand, the speculative side of my brain wonders why APHA stock has effectively mitigated PR damages.For instance, if you look at the year-to-date return for Aphria stock, they're firmly in positive territory at nearly 23%. Yes, APHA dipped badly in July, but it came back strong this month. I'd say that's unusual for a company facing incredibly damaging accusations, especially one doing a poor job defending itself.Furthermore, I can't help but ask an obvious question: why did Irwin Simon decide to not only jump to cannabis but also to take over one of the industry's most controversial companies? Earlier this month, Simon told Mad Money's Jim Cramer that "cannabis is big business," and that Aphria has a strong foothold in this market.I don't think this is your typical corporate rah-rah speech. Simon had a perfectly fine career in a perfectly fine (and inoffensive) industry. By jumping to marijuana, he could easily damage his reputation. Therefore, the fact that he's willing to put his neck out gives me confidence toward Aphria stock. Markets Are Also Demonstrating Belief in APHA StockOf course, you typically shouldn't base your investment decisions on what other people are thinking or doing. That said, Aphria stock is a different beast because of its underlining industry: cannabis stocks are heavily narrative-driven.But ultimately, the markets represent the true arbiters of any equity. And right now, they have established that the $7 price point is strong support for APHA stock. So long as it can maintain this level, I think the upside potential is greater than the downside risk.That's not an invitation to load the boat. As I mentioned up top, Aphria stock has no shortage of bearish catalysts. But because of this robust minefield, APHA really should have collapsed by now. That it's holding its own despite the risks implies that the bulls will give this troubled name a second chance.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post Aphria Stock Is Ugly but Still Here, and That Is a Win appeared first on InvestorPlace.

  • High Tide Announces 13th Canna Cabana Store Selling Recreational Cannabis in Alberta
    CNW Group

    High Tide Announces 13th Canna Cabana Store Selling Recreational Cannabis in Alberta

    CALGARY , Aug. 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 the Canna Cabana retail store located at Unit #310, 4602 46th Street in the city of Olds (the "Olds Store") received its first delivery of cannabis products from Alberta Gaming, Liquor and Cannabis ("AGLC") and has begun selling recreational cannabis for adult use. Inclusive of the Olds Store, High Tide currently has 17 branded Canna Cabana locations selling recreation cannabis products across Canada .

  • Barrons.com

    The $4 Billion Time Bomb Ticking Away Inside the Biggest Marijuana Companies

    The largest licensed cannabis producers in Canada have recorded more than $4 billion in goodwill—the amount allocated to certain acquisitions beyond the value of their physical assets—risking large and potentially punishing write-downs in the future.

  • InvestorPlace

    After Earnings, TLRY Stock Remains a Strategy Play

    It seems like Tilray (NASDAQ:TLRY) has returned to normal. Heading into second-quarter earnings on Tuesday, Tilray news had been relatively quiet. Tilray stock had traded sideways.Source: Shutterstock Put another way, there hasn't been much in the way of fireworks. But that's not necessarily a bad thing. The first cannabis IPO on the NASDAQ (NASDAQ:NDAQ) exchange, TLRY very quickly turned into what looked like a bubble.The IPO priced at $17, and early trading was solid, if not spectacular. But after its first month of trading, TLRY suddenly took off: at one point, the stock touched $300.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Growth Stocks to Buy for the Long Haul Since then, it's been a long, painful slide -- until the last few months. Tilray stock actually has held up reasonably well in a market that has been unkind to most pot plays, with leaders like Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON) well off their highs.Some disappointing Tilray news has changed that somewhat, as TLRY slid more than 10% in after-hours trading following earnings on Tuesday afternoon. But the report, from here, looks reasonably positive.More importantly, this is not a stock that necessarily should be judged on single quarters -- at least not yet. Tilray isn't looking to maximize near-term revenue or profits. It's taking the long view. And while there's a reasonable debate over whether that view is correct, Q2 earnings don't seem to change the case all that much. Tilray News Looks OKTilray seems to have been hit by a somewhat odd fact of cannabis investing at the moment: investors suddenly seem to be focusing on profitability over revenue. The fact that Aphria (NYSE:APHA) posted a blowout quarter last month, and guided for positive Adjusted EBITDA, may be a factor. So too may be waning patience with recreational legalization stalling out in Canada in and beyond.Whatever the cause, that focus doesn't seem to make a lot of sense. Tilray CEO Brendan Kennedy explained why on Tuesday's Q2 conference call:If your company is a small to midsize LP [licensed producer] in Canada, or an MSO [multi-state operator] in the United States that can export to other countries then I think those countries -- those companies should be focused on profitability.But you only see an opportunity like this once in your lifetime. And if you're trying to dominate a global industry, you'd be constraining yourself if you were focusing entirely on profitability at this point. Globally, it's very early in the emergence of a $200 billion industry. And globally, if now is not the time to invest, I don't know when is.Tilray's revenue of US$45.9 million was nicely ahead of consensus expectations for US$41.1 million. But Tilray news on the profit front was softer: an Adjusted EBITDA loss of US$17.9 million against an average estimate of -US$14.4 million. That profit miss seems to be one of the catalysts sending TLRY stock lower after-hours. The Sell-Off in Tilray StockTo be fair, there's another catalyst. TLRY shares gained over 8% in regular trading. Cannabis stocks on the whole did well: CGC gained 4%, and CRON 5%. But it's likely some traders were betting on a big earnings report as well, and felt Tilray didn't quite deliver.That said, Tilray did post a big revenue beat relative to expectations. Adult-use revenue almost doubled from Q1 levels. The acquisition of Manitoba Harvest for US$317 million in February added another $20 million in sales.As Kennedy argues, that's what should matter at this point in the development of the cannabis industry. There's not a lot of sense in cutting costs now ahead of what bulls expect will be a massive global opportunity. If an investor wants profits -- or doesn't think that opportunity is as big as optimists believe -- there are thousands of other stocks to buy. The Long-Term Case for TLRYThere's another aspect to the sell-off worth noting. Tilray isn't looking to maximize near-term revenue. Unlike many larger cannabis plays, it's not even looking to build out actual production. Rather, it's happy to simply buy cannabis from third-party producers.As I wrote in May, the reason for that strategy is that Tilray management believes cannabis prices are going to come down over the long term. Cannabis will be a commodity product, which means spending capital to build production is unlikely to be an investment that drives big returns.Instead, Tilray is focusing on hemp-based food products through the Manitoba Harvest, and derivatives such as cannabis oil. It has entered the U.S. CBD market. A partnership with Anheuser-Busch InBev (NYSE:BUD) will research drinks including either CBD or THC.It's a strategy that may not work. Vertically integrated producers like Canopy, Cronos, or Aurora Cannabis (NYSE:ACB) may be able to leverage their production to out-compete Tilray in cannabis derivatives.At the least, it's a strategy based on the thesis that those companies spending hundreds of millions of dollars to build production -- and drive near-term revenue -- are making a mistake. A single quarter's earnings don't really change the case all that much. In addition, TLRY's higher multiples based on revenue do make some sense; it's focusing on driving better, and more profitable, revenue over time.Again, that doesn't make TLRY a buy. In fact, I wouldn't recommend it yet even at after-hours levels. As I have written before, Tilray is being patient, and investors can do the same.But it does mean that 2019 earnings simply don't change the case all that much. That's important to keep in mind particularly if the sell-off in Tilray stock accelerates.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post After Earnings, TLRY Stock Remains a Strategy Play appeared first on InvestorPlace.

  • Canopy Needs Its Earnings to Answer These Key Questions

    Canopy Needs Its Earnings to Answer These Key Questions

    The cannabis sector has been struggling -- that's no secret to those that follow along with the space. But with key companies like Tilray (NASDAQ:TLRY) and Canopy Growth (NYSE:CGC) reporting earnings this week, even more attention is being thrust onto the group.Source: Shutterstock We outlined a few of the key spots for TLRY stock ahead of earnings -- some upside targets should the post-earnings reaction be positive and some downside targets if the stock is under pressure. It's only fair to do the same thing for Canopy Growth stock, given the volatile nature of this industry.Because of the regulatory hurdles, speculative nature of M&A, incredible growth rates and high valuations, cannabis stocks are volatile bunch. That's not just TLRY and CGC either. That goes for names like Cronos Group (NASDAQ:CRON), Aphria (NYSE:APHA), Aurora Cannabis (NYSE:ACB) and others.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's look at the charts. Trading CGC Stock Click to EnlargeJust over a month ago, we flagged the bearish price action in Canopy Growth stock price. Shares were setting up in a descending triangle, a bearish development where downtrend resistance is squeezing the stock price against a static level of support. For CGC, you can see that in the above chart.Downtrend resistance (blue line) has been squeezing CGC lower since May. However, $38 support (black line) continued to buoy the name.These setups are attractive in the sense that, once we get a break, we know which direction has the new path of least resistance. For the record, CGC wasn't the only cannabis stock tipping its bearish hand. * 15 Growth Stocks to Buy for the Long Haul In any regard, where does that leave us now?Shares rallied on Tuesday, but CGC was swiftly batted down from the 20-day moving average. It was rallying alongside TLRY ahead of the latter's quarterly results. Now back down toward $32, Canopy Growth stock is near a key level.When the markets were in "selloff mode" at the start of August, CGC found support at $31. Should CGC close below this mark, it puts the $28 level on the table, as well as the year-to-date low at $26.30.On the upside, CGC stock needs to clear the 20-day moving average and downtrend resistance (blue line). If it does, it can begin to work on a new uptrend line. It will also put the 50-day moving as its first upside target, with the 61.8% retracement at $37.75 as the second target.At the very least, staying north of $31 would give the bulls some reprieve and allow CGC to start working on a series of higher lows. Canopy Growth Stock Earnings PreviewWithout question, CGC is considered one of the "blue chips" of cannabis stocks. A big part of that came after a large investment from a well-known company. Constellation Brands (NYSE:STZ) poured some $4 billion into Canopy, forging its balance sheet as one of the strongest in the group.The cash infusion gave CGC a treasure chest to gobble up smaller, strategic entities in the space. But beyond that, it also put on a display of confidence. STZ is well-run outfit, and if it's investing billions into Canopy, management is obviously bullish on its prospects.That said, CGC is going through a bit of a rough patch at the moment. Will earnings turn its woes around?When the company reports its first quarter results for fiscal 2020, analysts expect sales of $84.2 million (CAD). For the year, estimates call for roughly $540 million in sales. They still expect CGC to lose 31 cents per share this quarter and $1.06 per share this year. In fiscal 2021, estimates call for almost $1 billion in sales. Progress toward this figure will be in close focus.If Canopy continues to make progress, then the post-earnings reaction may be favorable. If investors feel that that sales figure is less likely to be achieved, it may lead to selling. Adding volatility in the broader market may not help CGC -- or other cannabis plays -- in the short term.What matters is the trend and the strength of the balance sheet. Are more countries and states legalizing cannabis? Are they companies working toward positive free cash flow and have enough cash to comfortably cover their costs? Can revenue growth keep pace?That's what investors want answers to. Basically, they want to know that the long-term trends remain in place, helping to justify some of these huge valuations.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 * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Canopy Needs Its Earnings to Answer These Key Questions appeared first on InvestorPlace.

  • 7 Marijuana Stocks With Critical Levels to Watch

    7 Marijuana Stocks With Critical Levels to Watch

    [Editor's note: This story will be updated each week with new stocks and analysis. Please check back often for Mark's latest take on marijuana stocks.]I heard someone say recently that technical analysis of marijuana stocks is like reading tea leaves. It is unfortunate that technical analysis has such a bad reputation, but I can totally understand why it does.The vast majority of technical analysts that I see seem to look at charts and mindlessly identify patterns without understanding what they are supposed to mean. Even worse, some analysts are proponents of bizarre methods like Elliot Waves and Gann theory. These techniques are like the Loch Ness Sea Monster, Bigfoot and UFOs. They may be fun to talk about, but they are not real.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn financial markets, there are certain levels that are more important than others with regards to the amount of supply and demand that exists at them. In addition, in financial markets prices are always doing one of three things. They are either going up, going down, or staying the same. When understood and applied correctly, technical analysis should be an illustration of these dynamics. * 15 Growth Stocks to Buy for the Long Haul Knowing where the important levels and trends are can help you profit. For example, suppose you want to buy a stock if it drops to $20. If there is support at the $21 level, the stock may never get to $20. It may get to $21 and rally. You would have missed out on a large profit because you didn't understand that the market dynamics made the stock getting to $20 unlikely. Marijuana Stocks: Aurora Cannabis (ACB)Aurora Cannabis (NYSE:ACB) is a Canadian-based company that grows are sells medical marijuana, indoor cultivation systems and hemp-related food products.ACB stock has been in a small downtrend since running into resistance at the $7 level. I would expect this level to continue to be resistance in the short term.There is resistance at the $7 level because it was a support level in February, May, and June. How does this happen? How does a support level become a resistance level? Few people consider this but I think that it is an amazing phenomenon. It is really a picture of mass psychology.Those who bought ACB at $7 were feeling pretty good when it went higher. But then when the stock broke that level, they were looking at a loss. They tell themselves that if it rallies back to $7 they will sell it and get out so they can break even.They shorts are happy that the stock went lower because they are looking at a profit. They tell themselves that if the stock gets back to $7, they will short more and add to their positions. Added to this are professional traders seeking to profit off of a clear level.You can see that there are now three different groups that are interested in selling stock at the $7 level. This supply creates resistance. Aphria (APHA) Aphria (NYSE:APHA) grows and sells cannabis.About a month ago, I pointed out that if the $6.30 level broke, this stock would probably trend lower. After the company reported earnings and rebounded, someone sent me a nasty email telling me I have no clue about Aphria.I must admit, I had to laugh. The stock lost 20% of its value in the two weeks after I talked about it. If this person could identify stocks that were about to move by 20% in two weeks I would most certainly subscribe to his or her newsletter. If I had a short position, I would have covered it the day before the earnings release. I never hold short positions going into an earnings releases because it is too risky.After the rally, APHA stock hit resistance at the $7.50 level. This level was also resistance in May and June. It will probably continue to be so in the near-term. * 7 Safe Dividend Stocks for Investors to Buy Right Now There is support at the $6.30 level. This level was support from May through July. It will probably continue to be support in the near-term. Cronos Group (CRON)Cronos Group (NASDAQ:CRON) grows and sell marijuana.You don't need to be a Market Guru to see that the $14 level is important for CRON stock. It was resistance in September and December of 2018. Then it became support from May through July before breaking and becoming resistance again over the past month.How does a resistance level become a support level? Those who sold it at the level believe that they have made a mistake when the stock trades higher. They tell themselves that if it falls back to the level, they will buy it back. This demand for stock at the level is what creates support.On Aug. 8, Cronos reported earnings, and the action in the stock was very weak. It opened around $15.50, which was the day's high. It sold off over the course of the day and closed near its lows. This is probably a bearish dynamic and it could be the start of a new downtrend. Canopy Growth (CGC)Canopy Growth (NYSE:CGC) grows and sells marijuana.CGC stock may have broken its recent downtrend. This means that the forces of demand may be equalizing with or about to overcome the forces of supply.In financial markets, prices are always doing one of three things. They either are rising, falling or staying the same. When prices are going up the forces of demand are in control of the market. When prices are falling the forces of supply are in control. When prices are staying the same the forces are equal.The break of a properly drawn trendline means that the leadership may be about to change. It takes some practice, but if you understand what trendlines illustrate you can profit. * 7 Stocks Under $7 to Invest in Now CGC has broken the downtrend that began in July. This could be a sign that it may rally as the demand forces take over. At the very least, it is an indication that it has stopped declining. Hexo (HEXO)Hexo (NYSE:HEXO) grows and sells medical marijuana.From April through August, HEXO stock lost about 50% of its value. Then it became oversold and found support at the $4 level. It has recovered nicely since then. The most recent close was $4.94.This stock illustrates an important dynamic about trading. When markets get to important support and are oversold, they tend to rebound and rally. This was the case here.When they get to important support and are not oversold they tend to spend time consolidating before breaking the level and trending lower.What does oversold mean? It is a measurement of momentum. It is where the current price is versus where it was X many days ago. When it reaches extreme readings to the downside it is considered oversold.That was the case here. HEXO was extremely oversold when it reached the $4 level in July. KushCo Holdings (KSHB)KushCo Holdings (OTCMKTS:KSHB) produces and sells packaging materials for companies in the cannabis industry.KSHB stock is testing support around the $4.30 level. This level was support in June and again in late July. On each occasion a large rally followed.If you are tempted to buy this stock, you may want to wait to see if the level holds. A potential strategy is to wait until the downtrend line breaks before buying it. This could be a signal that the forces of demand are about to equalize with or overcome the forces of supply. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What While you won't get the exact low price, this will decrease the chances of buying it and getting run over if the stock continues to trend lower. Scotts Miracle-Gro (SMG)Among other things, Scotts Miracle-Gro (NYSE:SMG) manufactures and sells equipment and accessories for hydroponic growing.Over the past two weeks, SMG has been testing resistance around the $110 level. There is resistance around these levels because it is where the top was in late December 2017 and January of 2018.This is a good example of how markets have memories. Certain levels can be important for years, and sometimes even decades.After failing at the resistance, the stock traded all the way down to $57 in December of 2018 before recovering and rallying all the way back to current levels.If you are bearish on the long-term prospects of this company and are considering selling SMG stock, this would be a logical place to do so.At the time of this writing Mark Putrino did not hold any positions in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post 7 Marijuana Stocks With Critical Levels to Watch appeared first on InvestorPlace.

  • Stake Your Claim in Canadian Cannabis with Hexo Stock

    Stake Your Claim in Canadian Cannabis with Hexo Stock

    There's no way to possibly buy every pot stock on the market; there are just too many of them to choose from. Therefore, you'll need to narrow your focus, and Canada is truly the epicenter of activity when it comes to legalized cannabis. While everyone else is focusing on well-known brands like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB), I believe that Hexo (NYSE:HEXO) stock is a terrific way to build a position in Canadian cannabis.Source: Shutterstock Of course, not everybody agrees with me on this point -- what else is new? Critics are quick to point out that Hexo has run into a bit of potential controversy recently, which I will address momentarily. * 15 Growth Stocks to Buy for the Long Haul In any case, I'm always open to debate and never afraid of controversy, so let's open up this big can of worms and talk about exactly why I'm leaning bullish on Hexo stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big Cannabis Meets Big BeerEver since the U.S. government eased restrictions on hemp with the passage of the Farm Bill in December, I knew that large corporations would want to plant their flags in the cannabis market. Molson Coors (NYSE:TAP) was quick to move into the legalized cannabis space with a joint venture to sell pot-enhanced beverages with none other than -- you guessed it -- Hexo Corp.Interestingly, although Molson Coors is known as a beer manufacturer, the cannabis-infused beverages reportedly won't contain alcohol. I actually view this as a smart move, as the cannabis crowd and the beer crowd aren't necessarily the same people (though I'm sure there's some overlap there). In any case, the joint venture will be called Truss and these drinks are slated to begin selling on Dec. 16 of this year (the day when it's legal to consume these beverages in Canada, assuming regulators don't create any delays).Jay McMillan, the vice president of strategic development at Hexo, believes that the company is fully prepared for the Truss product launch:We'll have a very large supply so we'll be in a good position to be able to meet the demand of the marketplace and at the same time also ensure that we're meeting the variety that the marketplace wants.Mr. McMillan also said that Truss is looking into rolling out a CBD-enhanced drink in eight U.S. states by the year 2020. I feel that these products are the future of cannabis and will bolster the Hexo stock price in the long term; even if the naysayers can't see it now, they'll jump on the bandwagon after the HEXO share price is much higher than it is today. Don't Let the Controversy Stop You from Owning HEXO StockAmazingly, HEXO controls around 30% of the cannabis market in Quebec, a region which is projected to represent 20% or so of the Canadian market for marijuana. Of course, Hexo's partnership with Molson Coors could provide access to markets far beyond Quebec, so it's hard for me to imagine what the critics and short-sellers think will to happen to the HEXO stock price in the long term.Perhaps they're bearish because Hexo has run ads on Snap (NYSE:SNAP)'s Snapchat app. The ads contained cannabis-related content, thereby potentially running afoul of Health Canada's advertising guidelines. However, as Megan Henderson, the director of marketing and business development for HelloMD points out, there's a lot of gray area in Health Canada's guidelines.Hexo's Snapchat ads aren't any more controversial than similar ads run by Canopy Growth or Aphria (NYSE:APHA). Henderson feels that Health Canada isn't likely to mete out any severe punishment to Hexo (or Snap for that matter), and I tend to concur with that stance on the matter. The Takeaway on Hexo StockBring on the controversy, I say -- as well as the CBD-enhanced beverage revenues, as Hexo stock is a rock-solid entry point into the fascinating world of legalized Canadian cannabis.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 * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Stake Your Claim in Canadian Cannabis with Hexo Stock appeared first on InvestorPlace.

  • Investors Shouldn’t Worry About Canopy Growth Stock’s Weak Q1

    Investors Shouldn’t Worry About Canopy Growth Stock’s Weak Q1

    Ahead of its earnings report set for Aug. 14, shares of Canopy Growth (NYSE:CGC) are already down by nearly 25% in the quarter. A combination of risk aversion and CannTrust Holdings (NYSE:CTST) single-handedly pulling down the cannabis sector are contributing to the drop in CGC stock. With Canopy Growth stock down by over 40% from its 52-week high, investors do not expect much from the upcoming report. But can Canopy Growth report strong enough results to reverse the downtrend?Source: Shutterstock Aphria (NYSE:APHA) shares rose from around $5 to nearly $7 after it reported quarterly results Aug. 2. It reported net revenue growth of a whopping 969% to $128.6 million CAD. Distribution revenue rose 72% to $99.2 million CAD while net cannabis revenue rose 86% to $28.6 million CAD. Importantly, the company reported cash levels of $571 million at the end of the quarter. Its annual production capacity will reach 255,000 kilograms when all its facilities are fully licensed.By comparison, Canopy Growth reported revenue growing 312.5% year-over-year to $94.1 million CAD in the fourth quarter posted Jun. 20. Quarterly revenue grew 13% sequentially, helped by additional revenue generation from value-added products, extraction services and clinic partners. Shipments topped 24,300 kilograms.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the current quarter (the fiscal first quarter), Canopy expects to harvest around 34,000 kilograms. It ended the quarter with cash, cash equivalents available and marketable securities totaling $4.5 billion. Canopy's Sales Channels GrowingInvestors should spot the glaring differences between Aphria and Canopy. First, Canopy has far more cash on hand and has Constellation Brands (NYSE:STZ) as its biggest partner. More worrisome is that Canopy's production fell sequentially. Management blamed static platforms in Alberta and Ontario for slowing its output. In Alberta, additional licensing requirements for stores slowed production. And in Ontario, the ramp-up in store openings in April hurt its output. Canopy may only wait for these channels to grow. By Q3 or Q4, the channel should get bigger, while a favorable product mix should diversify its revenue stream. * 15 Growth Stocks to Buy for the Long Haul Since Canopy is forecasting better production numbers as late as Q3, expect underwhelming output in tonight's earnings report. A month before Canopy's Q4 report, in May, the stock peaked at over $50 only to fall to below $40 when it reported results. Other Expectations from First-Quarter EarningsIn the medical segment, revenue grew 170% year-over-year to $10 million CAD. A product transitioning to the recreational channel, plus the supply challenges in specific product categories, limited its growth. Now that it has been remedied, expect revenue from this channel to improve. Net annual gross revenue from the Canadian recreational channel, which totaled $140.5 million CAD, should grow again this quarter. Shipments nearly tripled to 24,000 kilograms in the last quarter. Canopy shipped 5 million units in the fiscal year, compared to around 1 million in the prior year.Expect a big non-cash charge in the quarter. A new investor rights agreement subjects the firm to fair value adjustments. Canopy's management reports that they expect to record a material non-cash charge related to these adjustments, which will contribute to a material net loss.Increases in the company's harvest will support its long-term view on revenue growth in the coming quarters. But sales of the Q1 harvest will be sold in sequential quarters (Q2 and Q3). This is due to the timing of post-harvest processing, value-added product manufacturing and the timing of lab testing and quality assurance processes. Your Takeaway on CGC StockBrace for a weak revenue number from Canopy Growth in the earnings report. But since the market already expects these results, CGC stock may not fall by much. Cannabis investors need not be concerned over the short-term performance. Growth will come in later quarters as production continues rising and sell-through occurs in later quarters.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Investors Shouldn't Worry About Canopy Growth Stock's Weak Q1 appeared first on InvestorPlace.