46.22 -0.17 (-0.37%)
After hours: 6:08PM EST
|Bid||46.20 x 900|
|Ask||46.30 x 800|
|Day's Range||45.70 - 46.99|
|52 Week Range||18.93 - 59.25|
|Beta (3Y Monthly)||3.44|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Canadian marijuana producer Canopy Growth might not have enough weed stocked up to keep its grip on nearly a third of the nation's legal cannabis market, GMP Securities said.
Marijuana stocks may not have had a stellar year in 2018. But, this year could easily bring better news as things continue to expand and more new marijuana markets open up.
Despite the cannabis sector's very young age, Canopy Growth has yet to fully explain its path toward profitability, Landry said. Canopy Growth could wind up being the last cannabis company to show positive EBITDA within GMP's entire coverage universe, the analyst said.
A still-speculative and budding marijuana trade is looking a bit less risky for Canopy Growth Corp (NYSE:CGC) on and off the price chart. But if you're looking to grow some green in your trading account with less risk, go long CGC stock using a time-tested approach with historical precedent. Let me explain.If you want the security of a blue-chip stock, there's always the Dow Jones Industrials and its constituents like Microsoft (NASDAQ:MSFT) or maybe Coca-Cola (NYSE:KO) to consider. And there's nothing wrong with that. But don't forget to make a bit of room in that portfolio for CGC stock -- and who knows, maybe it will be a future blue (or green?) chip in its own right.Late last week, Canopy Growth, one of the marijuana industry's undisputed market leaders and a name ripe for secular growth, released its latest quarterly results. By some numbers, CGC stock delivered larger-than-forecast losses of 38 cents CAD. But allowing for a bit of operational leeway as Canopy grows its business, by stripping out a mark-to-market debt adjustment CGC saw a very healthy, market-topping profit of 22 cents compared to Street views of a loss of 17 cents.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAdmittedly, Canopy's earnings are a mixed blend, which by more stringent and conservative measures might cause some investors to gag. I get it. * 7 Financial Stocks With Accelerating Growth Still, when looking at the other lines that matter, CGC stock's top-line growth of 282% and squiggly price line on the price chart are looking worthy of a nibble for investors interested in allocating some capital into a leader in this up-and-coming industry. CGC Stock Weekly ChartCGC stock has a history of making both bullish and bearish investors ask the question, "what was I smoking?" Bottom line, the emerging and volatile marijuana industry is ripe for lightning-fast, technical about-face moves on the price chart -- and shares of Canopy have seen its share of such moves.Still, if history is any sort of indicator, bullish investors should put CGC stock on the radar for purchase. Currently, shares are putting together a small handle consolidation within its large corrective cup base. That's bullish in and of itself. But with the broader market in a new uptrend, Canopy's attractive growth and positioning within the industry, the relatively tight contraction looks even stronger. Additionally, as the handle pattern has also found support from the 50% and 62% retracement levels, a breakout through the pattern high of $51.81 looks even more promising for a future purchase.I'd reasonably estimate an initial upside price target is Canopy's all-time-high of $59.25 if shares can manage a breakout. From there, the sky may not be the limit, but a rally to new highs with the possibility for very large price gains out of the corrective cup does have historical precedent on its side. In the event shares break out but then begin to falter, I'd initially set a money stop below $46. That amounts to roughly 11% exposure in CGC stock.This stop-loss minimizes exposure without playing too close to the vest in a volatile stock. It also gives the chart sufficient technical wiggle room, without marrying to the position if conditions turn south.Having said that, if you are the marrying type, I'd recommend using a married put strategy, which combines a protective put with long stock as an alternative to a stop-loss in CGC stock.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 market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post How to Handle Canopy Growth Stock Post Earnings appeared first on InvestorPlace.
Companies like Altria Group Inc (NYSE: MO) and Constellation Brands Inc. (NYSE: STZ) are looking to enter the cannabis sector via innovative brands like Canopy Growth Corporation (NYSE: CGC). The cannabis sector is beginning to snowball and attitudes in major markets are rapidly shifting in favor of legalization.
IIPR, GTBIF, ITHUF: Key Updates from Last Week(Continued from Prior Part)Innovative Industrial Properties to offer exchangeable senior notes On February 15, 2019, Innovative Industrial Properties (IIPR) made an announcement that through its operating
HENDERSON, NV / ACCESSWIRE / February 19, 2019 / Cannabis stocks closed last week mostly higher, Canopy Growth and Aphria, two of the more well-known stocks in the industry each released positive press ...
U.S. stock futures are trading lower this morning after the Dow Jones Industrial Average notched its eighth straight up week in a row. With the relentless recovery, some stock indexes are now within striking distance of their prior peaks.Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.23% and S&P 500 futures are lower by 0.29%. Nasdaq-100 futures have shed 0.29%.Friday's market rally lit a fire under call demand and helped drive overall volume to above-average levels. Specifically, about 23.3 million calls and 17.5 million puts changed hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe euphoric dash for calls made waves at the CBOE with the single-session equity put/call volume ratio plunging to 0.52 -- a one-month low. Meanwhile, the 10-day moving average slipped to a four-month low.Options activity was all about earnings on Friday. Coca-Cola (NYSE:KO) continued falling after missing revenue estimates and delivering poor 2019 guidance. Canopy Growth Corp (NASDAQ:CGC) reported sales growth that largely satisfied shareholders. Finally, Nvidia (NASDAQ:NVDA) jumped despite poor earnings, but the initial up-gap was aggressively sold.Let's take a closer look: Coca-Cola (KO)Weakness continued for the soda king on Friday, driving KO down just shy of 1% by day's end. The stock gapped higher and saw early morning strength, but the rally ultimately fizzled on continued angst surrounding its poor earnings release. Earlier in the week, Coca-Cola reported numbers that missed revenue estimates. The forward guidance also disappointed. * 10 Hot Stocks Leading the Market's Blitz Higher With shares now beneath the 200-day moving average, sellers have full control here. The next two support zones are $44.50 and $41.50.On the options trading front, calls dominated the session despite the slide. Total activity grew to 465% of the average daily volume, with 170,263 total contracts traded. Calls accounted for 78% of the day's take.With earnings out of the way, the day-to-day volatility should return to a more normal pace. Implied volatility sits at 17%, or the 34th percentile of its one-year range. Premiums are pricing in daily moves of 49 cents, or 1.1%. Canopy Growth Corp (CGC)The volatility in marijuana stocks continued on Friday, only this time it was an earnings-report-driving the drama. Canopy Growth Corp shares were up as much as 8.1% before the high finally wore off. By day's end the gains were trimmed to 3.1%.With the trend still pointing higher, CGC bulls remain in control. I see little reason to doubt their domination unless the stock takes out support at $41.Not surprisingly, optimists took to the options market to express their enthusiasm. Activity jumped to 176% of the average daily volume, with 118,618 total contracts traded. 64% of the trading came from call options alone.Expectations for movement were running hot into Friday's session, so the 3.1% daily gain was kind of a dud. As such, traders crushed implied volatility driving it back down to 74%. Nvidia (NVDA)Nvidia reported earnings that reflected a massive slowdown in their business. Revenue and earnings for the fourth-quarter fell 24% and 48%, respectively. But there is a silver lining. While the results where terrible, the market was expecting horrific. So in a world where it's all about expectations versus reality, the numbers were good enough to deliver a 1.8% gain on the day.Looking at the close-to-close move is a bit misleading, however, because NVDA initially gapped up 5.4%, so this was undoubtedly a sell the news reaction. I suggest waiting for the stock to settle before trading it.Calls won the popularity contest on Friday. Total activity swelled to 206% of the average daily volume, with 485,943 total contracts traded. 59% of the total came from the call side.Implied volatility experienced the typical post-earnings crush, falling to 41% on the day. That places it at the 34th percentile of its one-year range. Premiums are pricing in daily moves of $4.11, or 2.6%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post Tuesday's Vital Data: Coca-Cola, Canopy Growth Corp and Nvidia appeared first on InvestorPlace.
Canopy Growth Corp. wants to remain the world’s largest legal pot producer, and to hear co-Chief Executive Bruce Linton tell it, has a detailed plan to stay there.
Cannabis stocks were mostly higher Friday, as investors digested earnings from Canopy Growth Corp. and the news that Aphria Inc.’s probe of acquisitions in Latin America found certain board members had conflicts.
After a fourfold increase in shares of Cronos Group, Inc. (NASDAQ:CRON), the stock is in danger of profit-taking. At some point, shareholders and speculators alike may want to lock in the gains, because the fundamentals have yet to justify the stock's valuation. Short-selling the stock may not make much sense because cannabis firms are attracting more than enough liquidity. As long as there are buyers, the stock could still jump higher despite years of unprofitability. Unprofitable Market, For NowSource: Shutterstock It could take years before hemp is a profitable business. This alone is not a reason to avoid CRON stock since losses just mean the operating costs to expand the business exceeds the revenue. While operating profitability looks good, it still fell. Gross margin in the third quarter was 55%, down from 65% year over year. This is due to a drop in average selling price and higher unit cost of sale for the third quarter. * 7 Financial Stocks With Accelerating Growth Cronos is building new production facilities, though increased production will not be realized in the near-term. This added to the operating expenses, which increased to $7 million, up from $4.9 million last year. Staff hiring also added to costs as the firm filled procurement, IT, sales and marketing and professional and consulting roles.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the third quarter, Cronos lost $7 million, compared to its $1.1 million in income last year. Modestly Good Balance SheetWith a $3.72 billion market capitalization, Cronos' $73 million cash balance total appears small. $44 million of the total is cash, while $29 million is borrowed funds received through a construction loan. Cash flow is also modest at $12.6 million, although it is an increase over the $2.2 million from last year's operating activities. Altria Is the Single Biggest Catalyst to Cron Stock PriceWith all of the absolute value of the company's quarterly results, why is the market willing to bid CRON stock higher since December? Altria Group (NYSE:MO) and Cronos announced on Dec. 7, 2018, that the former would invest a massive $1.8 billion. This commitment is impressive. Prior to this deal, Constellation Brands, Inc. (NYSE:STZ) committed to $4 billion in its investment in Canopy Growth (NASDAQ:CGC) on Nov. 1, 2018. Prior to the Altria deal, CRON stock had peaked at just over $14 and bottomed at close to $6 a share. The investment effectively wiped out the short-sellers.The CRON bears are still holding their bet against the company with the short float at 13.73%. Fundamental Catalysts AheadAltria's 45% ownership in Cronos gives Cronos $1.8 billion in liquidity. Management may now enter various joint ventures that will enhance long-term value for Cronos shareholders. Its COVE brand in Ontario could benefit from higher sales and marketing spend. The company aimed to capture the top 15% of the market, but now has the cash on hand to take an even bigger market share. At the product level, Cronos may develop its product quality and branding before it launches. Still, Cronos' important R&D partnership with Ginkgo for producing culture cannabinoids at commercial scale should do well. Ginkgo is a well-established brand and has a good reputation with its customers. By using a fermentation method, Cronos and Ginkgo may potentially cut the cost of cannabinoid production. Potential HeadwindsInvestors should not weigh the positive catalysts without first considering the risks. A new excise tax applied to medicinal and recreational sales hurt Cronos' ASP (average selling price). In the third quarter, ASP fell by $1, to $7 a gram, when the company absorbed the tax instead of passing it on the consumer. My Takeaway on CRON StockThe spectacular rise in shares of Cronos will have shareholders wondering if gains should get booked now. So long as markets continue to rebound, Cronos stock may not fall. If the company puts the cash to good use and the manufacturing facilities come online, revenue will grow. * 10 Hot Stocks Leading the Market's Blitz Higher Until then, shareholders will have to wait patiently for those strong revenue numbers to come in.Disclosure: 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 * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post As Cronos Stock Skyrockets, Should Investors Be Afraid? appeared first on InvestorPlace.
And what to look forward to based on the big Canadian marijuana growers' latest quarterly results.
With marijuana headed for legalization in Canada, these penny stocks offer direct exposure and could help you get a piece of the pot.
Two of the biggest Canadian marijuana companies provided quarterly updates last week. Their results could be good news for other marijuana stocks, too.
fourth-quarter earnings largely were in line with analysts' forecasts, but the soda and snacks maker said 2019 earnings would fall as the company boosts investments in some of its key consumer products. rose 1.82% after the chip company posted stronger-than-expected fourth-quarter earnings and said sales for its current financial year would top forecasts as key markets in China recover from their current slump.