39.72 -0.01 (-0.03%)
After hours: 7:59PM EDT
|Bid||39.53 x 1200|
|Ask||39.72 x 800|
|Day's Range||39.04 - 39.87|
|52 Week Range||24.21 - 59.25|
|Beta (3Y Monthly)||4.03|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 24, 2016 - Nov 28, 2016|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
How realistic is Canopy Growth's lofty CBD goal? Yahoo Finance's Zack Guzman and Brightfield Group Managing Director Bethany Gomez discuss.
Constellation Brands Inc (STZ), a leading producer and marketer of alcoholic beverage brands, is expected to release its Q1 fiscal 2020 earnings results before the bell this Friday, June 28. Our Zacks Consensus Estimate calls for quarterly EPS of $2.07.
On June 21, 2019, Acreage Holdings, Inc. (“Acreage”) (ACRG-U.CN) (ACRGF) (FSE:0ZV) obtained a final order from the Supreme Court of British Columbia approving the previously announced arrangement under section 288 of the Business Corporations Act (British Columbia) with Canopy Growth Corporation (“Canopy Growth”) (WEED.TO) (CGC) (together with Acreage, the “Companies”) (the “Arrangement”). On June 19, 2019, each of Acreage and Canopy Growth received all necessary shareholder approvals in connection with the Arrangement at their respective special shareholder meetings.
Canopy and KeyLeaf worked together to build out an extraction process and related technology. The partnership was intended to refine Canopy's scale extraction model for the Canadian and global markets. Canopy assumed control of KeyLeaf for accounting purposes in late 2018 and Wednesday's agreement will see Canopy assume related entities and intellectual property.
SMITHS FALLS, ON, June 26, 2019 /PRNewswire/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX:WEED, NYSE:CGC) is pleased to announce that it has completed a transaction to acquire Saskatoon-based bio-product extractor KeyLeaf Life Sciences ("KeyLeaf"), related entities, and intellectual property. Canopy Growth has been working closely with KeyLeaf – formerly known as POS Bio-Sciences – as a trusted partner building out extraction processes and technology for the past year as it refines its scale extraction model for Canadian and global markets. As previously disclosed, Canopy Growth assumed control of KeyLeaf for accounting purposes in November 2018.
After a somewhat disappointing earnings report and the accompanying commentary from management, it's apparent to me that Canopy Growth (CGC) is struggling to find its corporate identity and a consistent business model.It surprisingly generated less revenue from recreational and Canadian medical cannabis in the quarter, while at the same time delivered $34 million in other revenue; that tied into diversification of its revenue streams, one of the most positive parts of its performance in the quarter.Taking into account the rapidly changing cannabis industry and Canopy considering itself primarily a recreational pot producer, it's apparent the company is struggling to find its identity in a market that isn't going to favor those with heavy exposure to recreational pot because of that segment descending rapidly into a commodity.Including oils, edibles and infused drinks, it's still going to be hard to differentiate from competitors, even though they will produce wider margins.Earnings highlightsIn its recently released earnings report, Canopy reported fourth quarter revenue of C$94.1 million, a slight beat of C$0.41M. That was up from the C$83 million in revenue generated in the prior quarter.Some changes in revenue are worthy of note. First, sales from recreational pot dropped sequentially from C$71.6 million to C$68.9 million.Net losses in the quarter were huge, ending down C$323.4 million, or 98 cents a share, from a loss of C$54.4 million year-over-year. Some of that was a paper loss of C$130 million in relationship to accounting for the increase in its share price and its convertible debt. Even so, it still has C$174.5 million operational losses, far more than its peers.For the year, net revenue jumped to C$226.3 million, up 191 percent. Breaking it down, C$140.5 million of that came from recreational pot, and C$78.9 million from medical cannabis, up 6 percent year-over-year. Canadian medical revenue ended the year at C$68.8 million, down from C$70.6 million from fiscal 2018.Of importance was Canadian medical revenue in the reporting period dropped to C$11.6 million, a hefty decline from C$19.5 million in the fourth quarter of fiscal 2018. The company attributed that to transferring some medical products to its recreational unit.Internationally, medical revenue climbed to C$10.1 million for all of fiscal 2019, up 173 percent from full-year 2018. The main catalyst there was the German market, followed by the Czech and Polish markets.Going forward its Other sales should become a larger percentage of overall revenue, as evidenced by the acquisition of Storz & Bickel in the third quarter. That helped push Other revenue to C$34 million for the fiscal year, an average of a little over C$2.8 million per month. That should be included in performance models in the future.The core business problem and capital allocationIn my view one of the major problems Canopy Growth has is it must determine what its core business actually is. It started off as a recreational pot company serving the Canadian market, yet having branched off into just about every other area of the cannabis sector, it hasn't been very effective in markets outside of Canada.It's obvious that Canopy will have to transition out of recreational pot being its primary business, as it won't be too long before it becomes a commodity product. That means competing primarily on price, which isn't a viable or sustainable long-term strategy.As the company is attempting to make the adjustments needed to change it product mix going forward, it appears it hasn't decided yet what it core business is. That's crucial to the company because the priority associated with the allocation of capital is dependent on knowing what the core business is, and making operational decisions in alignment with that.For example, in the last quarter Aurora Cannabis could have sold more recreational pot, but it stated it held back some of its inventory to ensure it would have enough to service its medical segment. That wasn't a difficult decision because Aurora has clearly stated its core business is medical pot.With Canopy not seemingly in the process of determining what its core business is, it has brought about some problems in major international markets, especially Germany.Outside of the U.S., at this time Germany is the major market to compete in, and Canopy has struggled to make it work. The company said in its earnings report that it didn't have enough of the product Germany required to that market.Also in regard to Germany, there were inventory storage capacity restraints that will limit the future exports to the market as well. Didn't the company think this through before going into the market? It should have been very obvious.The point is, I believe this is partially because the company is not fully focused on any one segment because of its lack of clarity concerning its core. This lack of clarity I believe comes from the understanding it has to make the transition from recreational pot to other segments in order to be profitable over the long term, or even survive. This is something money alone can't buy.Another related issue in my opinion is the company having so much underutilized capacity. Since it keeps mentioning its cash infusion from Constellation Brands as a competitive advantage, how hard can it be to allocate a little capital to growing more pot in its existing facilities?These types of things suggest to me management is distracted, and again, I think much of that distraction is coming from not knowing or defining what its core business is, and making decisions and allocating capital in alignment with that.ConclusionThe issue at hand isn't that Canopy Growth is trying to compete in various segments of the cannabis market, all cannabis companies that will grow and survive will have to do that. The issue is the company appears to be disjointed because it isn't working from a defined core business base, and making decisions based upon that.It has said its goal is to primarily bring its business operations to a high level in Canada and then scale it out to other markets. The problem is that's not a core business, that's a strategy.The market needs to know exactly what Canopy Growth is in order to be able to understand better how it's going to perform in the future. That will determine allocation of capital how and why the company will prioritize its decisions.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on CGC: * Canopy Growth: Buy the Dip or Pump the Brakes? * Canopy: Recent Licence from Health Canada Ain’t Going to Help the Stock * Top Cannabis Stocks Under Fire: What’s The Stock Market’s Message? * Canopy Growth (CGC): The Emperor Isn’t Wearing Any Clothes More recent articles from Smarter Analyst: * Conatus (CNAT) Stock Price Could Hit Zero * Tesla (TSLA) Scrambles to Restore Faith; Wedbush Remains Cautions on the Stock * Micron (MU) Stock Has a New Bull * Canopy Growth (CGC): CBD Expansion Rolls on with the Acquisition of KeyLeaf Life Sciences
Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) has named Jann Parish as chief marketing officer, effective immediately. Parish is former chief marketing officer of Victoria's Secret and other global brands. C21 Investments (CSE: CXXI) (OTC: CXXIF) has created a wholesale distribution company C21 Supply Co. The new company will accelerate B2B efforts with C21's consumer […]The post Cannabis Stock News Daily Roundup June 25 appeared first on Market Exclusive.
Cannabis stocks were mostly lower on Tuesday, as the broader markets faltered and investors awaited the next key catalysts for the sector.
Canopy bought at least a dozen smaller cannabis producers over the past year, but the string of acquisitions has come to an end, Linton told the publication. Flush with billions of dollars from Constellation Brands, Inc. (NYSE: STZ)'s investment, the cannabis company is now "more interested in what exists in the pharmaceutical world," he said. Need more cannabis news?
Canopy Growth stock took a tumble after the Canadian company reported sluggish marijuana sales. Canopy CEO Bruce Linton said in an interview that “massive” margins are coming.
As the cannabis sector matures and continues to open up with the edibles launch on the way this year, we just got through another round of earnings. This past quarters earnings were nothing pretty for most companies and we saw a lot of the large-cap companies fall short of analyst estimates — namely Aurora Cannabis (ACB), Canopy Growth (CGC), and Canntrust (CTST). Losses mounted for many cannabis companies focused on expansion, technology, and future market share. Canopy Growth lost over 300 million CA dollars in their last quarter due to higher employee compensation and a paper charge regarding the company’s convertible debt. These losses highlight some of the growing pains that these new companies have to go through in such a fast-changing industry. Prior to earnings season this quarter we saw a massive bull run for the majority of the large-cap cannabis stocks up until about the end of March.What Changed in March?In March we saw most of the large-cap cannabis stock prices peak relative to the broader indexes, using the S&P 500 as an example. In this chart below we compare Aurora Cannabis, Canopy Growth Corporation, Canntrust and HMMJ Horizons Marijuana Life Sciences ETF. Using this ETF is a great way to gauge the large-cap index as a whole. We can see that the cannabis sector peaked in March, hitting its highest point around March 19th.What I think happened in March was that investors started to take a look at their portfolios. They were noticing that the cannabis sector had outperformed the S&P 500 by over 3x at that point (HMMJ sitting up 60+% meanwhile the S&P had gained roughly 20%). Investors started to shift their money into more defensive names, as they felt that a pullback was imminent after such a strong rally in the markets. This turned out to be true as the cannabis sector declined from March and only accelerated after companies released one disappointing quarter after another. That massive three-month bull run was enticing enough for investors to start selling their cannabis stocks before earnings and if you did so, you were very fortunate. As a long term investor, you need to be able to have a strong stomach for volatility within the cannabis sector, but it still never fails to amuse me how the business cycle works, along with understanding investor psychology.What Happens Next?Now that the post-legalization hype has subsided and the markets have already had the opportunity to rally, we are seeing many of our most popular cannabis stocks trading at much lower valuations than just a few short months ago. Just because the stocks are cheap, does not mean that they will magically rise once again without a reason. Personally, I think there are a few things that need to happen for a company to buck the trend, and it starts with proving what they said they were going to do. Many companies made huge promises pre-legalization which drove valuations to historic highs, only to see the stocks crash due to overhype and deteriorating market conditions. Now we need to see strong execution within their business model coupled with a focus on market share and international expansion. As investors, we are always looking years down the road, and the companies that are set up to capitalize on markets outside of Canada will be the most profitable and sustainable companies. For the near term, I want to see companies focusing on the CBD market in the U.S. along with pending federal legalization. Along with this very profitable potential opportunity, I feel that the companies who focus on higher margin products and can dominate the retail and branding aspect of the business will see short-term profitability. For me, it comes down to a two-pronged approach and the company that can perfect this combination will be the most successful in terms of profit along with share price appreciation.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Disclosure: The author is Long ACB, CTST Read more on the stocks mentioned: * Aurora Cannabis (ACB) Investors Seem to Be Missing the Latin American Opportunity * Market Delays Can Derail Aurora Cannabis (ACB) Stock * Canopy Growth (CGC) Continues to Struggle to Find its Identity * CannTrust: Even With Entry Into U.S. Market, Investors Must Remain Patient More recent articles from Smarter Analyst: * Conatus (CNAT) Stock Price Could Hit Zero * Tesla (TSLA) Scrambles to Restore Faith; Wedbush Remains Cautions on the Stock * Micron (MU) Stock Has a New Bull * Canopy Growth (CGC): CBD Expansion Rolls on with the Acquisition of KeyLeaf Life Sciences
Canopy Growth (TSX: WEED) (NYSE: CGC) is reporting that its shareholders voted overwhelmingly in favor of the issuance of common shares and certain amendments to certain outstanding company warrants in connection with the proposed acquisition of Acreage Holdings. The Canopy Shareholder Resolution was approved by approximately 99.05% of votes at the meeting in accordance with the […]The post Shareholders Approve Canopy Growth-Acreage Acquisition Deal appeared first on Market Exclusive.
Marijuana stocks have been a volatile but largely outperforming group in 2019. But an analyst warns that while some companies are living up to the hype, others have risen too far, too fast.
Canopy Growth Corporation (CGC) closed at $40.55 in the latest trading session, marking a +0.97% move from the prior day.
Canopy Growth and Cronos Group expressed reservations about Canada's THC limits on cannabis-infused edibles and beverages. Most marijuana stocks rose.
Several Wall Street analysts have come out bullish on cannabis stocks in recent months, but one analyst said Monday that Aurora Cannabis Inc (NYSE: ACB ) is the clear top choice in the sector. The Analyst ...
Powered by a deal with Corona-maker Constellation Brands Inc that has left it with $4.5 billion to invest, Canopy is in pole position to cash in on Canada's legalization of marijuana for recreational use as well as expectations that the United States may follow. Constellation is betting in part on the promise that federal legislation might eventually follow moves by state governments in the United States to legalize, opening the door to legal production countrywide, and there have been tentative signs that others may follow.
has a five-year track record of solid revenue growth, improved margins, and strong profitability. More recently, though, the stock is getting pulled into the ongoing trade war between the United States and China. Earnings per share increased 51% in fiscal 2018 (May) to $16.79 per diluted share.
Canopy Growth Corporation (NYSE: CGC) is adding to its production capacity, announcing Monday that it received a license for an outdoor cultivation site in Northern Saskatchewan. Canopy is projecting revenue generation from the rollout of the second phase of Canadian marijuana products in October. Canopy said it has several IP-protected pieces of equipment and processes to go along with its patents on vape production and extraction.
Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.
Friday was a difficult day for cannabis companies after Canopy Growth Corp (NYSE: CGC )'s earnings report showed a quarter-over-quarter decline in Canadian recreational usage, CNBC's Jim Cramer said during ...