46.00 +3.15 (7.35%)
Pre-Market: 9:00AM EDT
|Bid||45.30 x 800|
|Ask||45.60 x 800|
|Day's Range||41.96 - 43.28|
|52 Week Range||20.99 - 59.25|
|Beta (3Y Monthly)||3.99|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Canadian cannabis giant Canopy Growth is close to a deal to purchase Acreage Holdings. CNBC's Melissa Lee reports.
Bank of America initiates coverage on 3 pot stocks. Ben Kovler, Green Thumb Industries, on whether pot deals are about to heat up. With CNBC's Melissa Lee and the Fast Money traders, Brian Kelly, Karen Finerman, Dan Suzuki and Guy Adami.
The deal would allow Canopy to gain a toe-hold in the U.S. ahead of regulatory or legalization changes that would open up the world’s biggest potential marijuana market to operators, Jefferies analyst Owen Bennett wrote in a note. “They are now using the $4 billion in cash they got due to Constellation to get a route to control in the world’s biggest market, and what’s more, in the U.S.’s biggest player,” wrote Bennett, who rates Canopy Growth hold with a price target of $64.
U.S. stock futures declined Thursday and global stocks were lower as investors adopted a cautious stance ahead of the release of the Mueller report into allegations of Russian election and news of renewed weapons tests by North Korea that threatened to unravel Donald Trump's broader Asia strategy on trade and security. Contracts tied to the Dow Jones Industrial Average fell 29 points, futures for the S&P 500 declined 1.65 points, and Nasdaq futures were down 5.25 points. North Korea's state media said officials had conducted a "tactical" weapons systems test, the first since Trump and Kim Jong Un met in Hanoi earlier this year, although it didn't appear to be a long-range missile capable of carrying a nuclear warhead.
Canopy Growth Corp. is not outright acquiring Acreage Holdings Inc., as reports said Wednesday, but it is preparing to pay billions for the rights to buy the U.S.-based pot company.
Constellation Brands is boosting its U.S. beer business while betting that marijuana products will deliver big sales.
Reuters reported that the potential deal, which could be worth around $880 billion, would give Canopy both the rights to Acreage's products and the potential to exchange stock should marijuana become legal in the United States. The deal would also give Acreage access to Canopy's intellectual property and marketing, Reuters reported, in a move to drive growth in a business that already has licenses or agreements in 19 U.S. states. Canopy Growth shares were marked 5.62% higher in pre-market trading Thursday, indicating an opening bell price of $45.26 each, a move that would extend the stock's year-to-date gain to around 56.5%.
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.
The big Canadian marijuana producer is reportedly in talks to buy U.S. cannabis operator Acreage Holdings in what would likely be a multibillion-dollar deal.
The deal is expected to fetch a premium of about 28 percent to Acreage's five-day average trading price - or roughly 25 percent of its closing price on Wednesday, the source said. Neither Acreage Holdings nor Canopy Growth immediately responded to requests for comment.
Canopy’s shares added 9 percent in post-market trading in New York. Acreage gained 15 percent in Toronto before the market closed. The deal would be a major milestone for Canopy, the world’s largest cannabis company, and New York-based Acreage, which boasts former U.S. House Speaker John Boehner and former Canadian Prime Minister Brian Mulroney as directors.
Canopy Growth Corp. shares spiked more than 10% higher in after-hours trading Wednesday after reports that it is preparing to acquire U.S. pot producer Acreage Holdings Inc. Bloomberg and CNBC reported that the two are in discussions, and that Canopy has shopped around for other U.S.-based assets.
Marijuana stocks rose late Wednesday on a report that Canada's Canopy Growth is said to be close to a deal to buy U.S. pot grower Acreage Holdings.
Canadian cannabis giant Canopy Growth is close to a deal to purchase Acreage Holdings, sources familiar with the deal told CNBC.
The cannabis sector received one of its biggest votes of confidence yet from Wall Street on Wednesday when a top firm initiated coverage on four cannabis stocks. The Analyst Bank of America analyst Christopher ...
Canopy Growth (NYSE CGC), along with most other cannabis firms, continues to operate at a loss as it builds out the infrastructure, develops its markets and develops goods that differentiate itself from the competition. Yet so far, pot stock investor seem oblivious to the risks of ongoing losses for the foreseeable future. So before investing in CGC stock, you need to pause for a moment to look at a few metrics. In doing so, investors can confirm that the company is on the right track. With that in mind, how does CGC stock fare for the speculative investor?Source: Shutterstock Operational EfficiencyCanopy Growth's yield potential in Canada is a good indicator of the company's operational efficiency. Much of the profit potential depends on government regulation and the pace at which it approves Canopy's medical products.Problems begin when investors look at the company's efficiency outside of the Canadian region, namely Europe, Australia, and South America. In those places, management does not have a clear estimate on yield over the next 1.5 to 3 years. Denmark has yet to produce supply for Canopy and is not scheduled to do so until later this year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Spring Season Growth This is yet another example of investors waiting for production to increase in meaningful quantities. Even if it reaches full utilization on time, investors are hardly assured that revenue from sales will exceed the costs for producing edibles and beverages. Weak Quarterly ResultsInvestors reacted negatively to Canopy Growth after it reported results on Feb 27. CGC stock had previously topped $59.25 but now trades near $42 -- and for good reason. Revenue of $83 million CAD tripled from last year, but Canopy Growth still lost 38 cents CAD a share. It also missed analyst consensus estimates. The company failed to benefit from average selling prices going up.The ongoing losses suggest that the company will have to raise prices even more to offset growing losses. If the product is demand elastic, Canopy may have a hard time selling in higher volume when prices are up.Temporarily non-producing facilities, absorption of the medical excise tax and commitments to sales and marketing and corporate infrastructure spending led to an adjusted EBITDA loss of $75.1 million. However, Canopy Growth is likely to face other one-time charges in the upcoming quarter -- so don't write this off as a one-time issue. Medical PlatformThe medical side of Canopy Growth faced some pressure in the third quarter. To counter the headwinds, Spectrum, its wholly owned subsidiary, needs more education-driven activity to grow awareness of the brand and the medical products. On Apr. 12, Spectrum Cannabis announced a partnership with an endorsement from CARP, a Canadian advocacy association for aging Canadians. It will offer tailored educational initiatives for over 320,000 CARP members.The company continues to believe that its medical opportunity globally over the next three years has a higher growth potential over the recreational market. For this to happen, Canopy therapy would need to face fewer regulatory hurdles than medical marijuana.Canopy is also running a promising study evaluating the efficacy of medical cannabis for treating insomnia. These tests are currently in Phase IIb clinical trials. It received approval from Health Canada in the second quarter of 2019. Thanks to awareness from the client base for cannabis in its role in helping to fall asleep or stay sleep, Canopy only needs to refine the ingredients and run a number of trials to gain approval from regulators. Strong Cash BalanceCanopy Growth has a few bright spots. Shareholders may point to the safety of its cash levels as one of those. By looking at Canopy's $4.9 billion in cash, most of which came from Constellation Brands, Inc. (NYSE: STZ), investors are at least assured that the company will not run out of money any time soon.Canopy's inventory build-up is also another positive development. Management intentionally increased inventory from $102 million at the end of March 2018 to $185 million at the end of December 2018. It is scaling up supply to meet strong market demands. As the legalization of the recreational market and medical customers expect more choice, the company expects sales volumes to increase. * 10 S&P 500 Stocks to Weather the Earnings Storm The Bottom Line on CGC StockThe risks in Canopy Growth is typical with any other stock in this sector: losses outpace revenue. The market is willing to wait for output to increase in 2019 but risks remain. Still, the company has lots of cash so short-term risks are low. Plus, as supply facilities are built, its efficiency will get better through scale.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Is CGC Stock on the Right Track? appeared first on InvestorPlace.
Canopy Growth's next quarterly update might not be nearly as rosy as its last one. And the situation could be even worse for other marijuana producers.
One industry that is often overlooked but could play a huge role in the cannabis industry is energy. The U.S. cannabis industry is currently eating up more than 1% of all electricity each year. The need to reduce greenhouse emissions created by the weed industry, as well as lower electric load and expenditures, makes the energy sector a clear beneficiary of a budding cannabis industry.
NEW YORK, NY / ACCESSWIRE / April 17, 2019 / Stock Market Press (SMP) is excited about the huge growth in the cannabis industry seen in 2018 and Q1 2019. DirectView Holdings, Inc (OTC PINK: DIRV) released ...
Cannabis stocks rose across the board on Tuesday, as three separate surveys found Americans are increasingly in favor of legalization, demonstrating a major shift in opinion over the last two decades.
Medical Marijuana (OTC: MJNA) subsidiary Phyto Animal Health announced the launch of its newest cannabidiol pet product, Skin Vitality. The salve is intended to treat itching, support muscle and skin recovery and provide relief for hot spots, wounds, bug bites, flea dermatitis and rashes. GB Sciences (OTCQB: GBLX), a partner in GB Sciences Louisiana, said that all cultivation […]The post Cannabis Stock News Daily Roundup April 17 appeared first on Market Exclusive.
While cannabis isn’t yet legal across the U.S., new technologies are already opening doors to promising new applications of marijuana—and pharmaceutical companies are gearing up to get a piece.
While the market has loved the global growth appetite of the large Canadian cannabis LPs, the biggest fear is that protectionist governments around the globe will eventually favor local companies. Canopy Growth (CGC) acquired Spanish licensed cannabis producer that in theory appears logical until you question why the owners cashed out on such a golden opportunity. Regardless, the stock is up strongly on the news of the day that also includes a reinforced revenue target from the CEO.Spanish AcquisitionCanopy lists cannabis operations in over a dozen countries on 5 continents so an acquisition in Spain fits with the corporate plans for global expansion. The company bought Cáñamo y Fibras Naturales, S.L. (Cafina) in an all-cash deal.Cafina is one of three companies authorized to cultivate, distribute and export cannabis containing more than 0.2% THC for medicinal and research purposes. The company only has a minimal 1,600 sq. ft. greenhouse that is smaller than most houses in the U.S. The facility far trails their 430,000 sq. ft production site in Denmark and the total facility footprint of Canopy that has reached 4.3 million sq. ft. of production space.Canopy plans to inject capital in the Spanish operation that just received their license in November 2018 to scale operations through calendar 2019. The opportunity in Europe appears large and undeniable. A large swath of countries have already approved some form of medical marijuana with recreational-use approval likely the next moves as countries like Italy, Netherlands, Portugal and Spain area nearly there already.Cashing OutThe Spanish opportunity with an ideal growing climate for cannabis sounds too good for the owners of Cafina to cash out here. Why not find investors to become the Canopy of Spain with what would appear a valued license?Even taking shares in Canopy with the backing of Constellation Brands (STZ) might seem logical. Spain could easily be the launching point of domination of the European continent.In such a case, Canopy would surely garner a market valuation in excess of the current $15 billion market cap making shares at this price point a value. Unfortunately, the deal value wasn’t provided so maybe the amount offered was too good to pass up for a company without anything much more than a license.TakeawayThe key investor takeaway is that investors need to be skeptical of these deals where the insiders from the foreign companies are so willing to cash out of such a great opportunity. Maybe our skepticism is too high, but every transaction has a buyer and seller along with other potential bidders. One should wonder why Canopy was able to get such a great deal on such a large opportunity. The devil is in the details and investors don’t have any of the details to make such a decision.At an investor conference, CEO Bruce Linton disclosed that Canopy is still on track for next 12 months revenues of C$1 billion ($750 million), sending shares rising nearly 3% as of this writing. The stock trades at nearly 20x these internal forward revenues.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Disclosure: The author has no position in Canopy Growth stock.Read more on CGC: * Canopy: Seaport Cuts Estimates, Reiterates Neutral * Should You Pull the Trigger on Cannabis Stock Canopy Growth? Analysts Divided * Cannabis Stock on Focus: Canopy Growth (CGC) – A Word of Caution * Canopy Storms Into the Hemp-CBD Space, But This Analyst Stays Sidelined on the Stock More recent articles from Smarter Analyst: * With Streaming More Popular, Is Roku (ROKU) Stock a Good Investment? * Aurora Cannabis (ACB) Stock Is in Position for Another Bullish Leg * After Netflix (NFLX) Earnings, Is It Time to Buy the Stock? * And the Winner of the Week Is... Qualcomm (QCOM) Stock