15.79 0.00 (0.00%)
After hours: 5:17PM EDT
|Bid||15.81 x 4000|
|Ask||15.80 x 3200|
|Day's Range||15.61 - 16.12|
|52 Week Range||5.61 - 25.10|
|Beta (3Y Monthly)||4.15|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
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 and Cronos Group expressed reservations about Canada's THC limits on cannabis-infused edibles and beverages. Most marijuana stocks rose.
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.
U.S. stock futures are trading higher this morning.Heading into the open, futures on the Dow Jones Industrial Average are up 0.24%, and S&P 500 futures are higher by 0.21%. Nasdaq-100 futures have added 0.30%.In the options pits, call trading carried equities into the weekend, even as overall volume settled at above-average levels. Specifically, about 20.4 million calls and 16.9 million puts changed hands on the day.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe action at the CBOE mirrored the bullishness with the single-session equity put/call volume ratio closing near Thursday's lows at 0.53. At the same time, the 10-day moving average matched Thursday's close near 0.62.Options activity was a mixed bag on Wednesday (options traders zeroed in on analyst actions yesterday). Canopy Growth (NYSE:CGC) shares fell after a disappointing earnings report. Microsoft (NASDAQ:MSFT) finally succumbed to profit-taking after notching three record highs in a row. Netflix (NASDAQ:NFLX) rallied for its fifth day in a row on heavy volume.Let's take a closer look: Canopy Growth Corp (CGC)Last week's earnings report provided little help to Canopy Growth Corp's struggling stock price. By day's end, the Canadian-based Cannabis company slipped 8% to close near a new five-month low. Fellow pot stocks Cronos Group (NASDAQ:CRON) and Aurora Cannabis (NYSE:ACB) both fell in sympathy, though their losses were pared before the closing bell.For the fiscal 2019 fourth-quarter, Canopy saw revenue of CAD $94.1 million. The number inched past analyst estimates for CAD $93.7 million and reflected a 13% rise over last quarter's revenue. Despite the slight bump in sales, CGC reported a net loss of CAD $323.4 million or 98 cents per share.Friday's plunge landed CGC at the lower end of its multi-month trading range and places it on precarious footing heading into the new week. Until the stock can reclaim the high ground above resistance at $44.40, steer clear of bullish trades.On the options trading front, traders favored calls over puts on the session despite the thrashing. Total activity swelled to 404% of the average daily volume, with 115,508 contracts traded. Calls claimed 56% of the session's sum. * 7 Top S&P 500 Stocks of 2019 (So Far) Option premiums were pricing in a $2.95 or 7% gap on the news. That makes Friday's 8.1% drop slightly outside of expectations, marking a small win for volatility buyers ahead of the event. Microsoft (MSFT)Record highs continue to stack up for Microsoft. Last week, the software titan notched three all-time highs in a row before sellers finally stopped the advance on Friday. The snap-back from June 3rd's wrecking of the tech sector on government oversight concerns has been relentless. Since bottoming at $119.01, MSFT stock has powered higher by 15%.Volume reached a crescendo ahead of the weekend reflecting powerful accumulation beneath the surface. While the overbought conditions certainly warrant some backing and filling, there's no doubt institutions highly favor Microsoft right now.On the options trading front, calls ruled the roost. Activity popped to 131% of the average daily volume, with 206,455 total contracts traded; 62% of the trading came from call options alone.Implied volatility drifted to 23% or the 18th percentile of its one-year range. Premiums are now pricing in daily moves of $1.99 or 1.5%. Netflix (NFLX)The news was light on Friday for Netflix, but that didn't stop buyers from sending the streaming media giant higher for the fifth consecutive day. Last week's rally returns NFLX stock to within striking distance of an upside breakout. What began as a well-deserved pause after a red-hot rally to kick-off 2019 has morphed into a tight five-month trading range.Given the utter lack of directional movement, volatility measures like the Bollinger bands have narrowed considerably on the weekly time frame. At some point, the stalemate will end, and if history is any indication, the breakout should bring fireworks. The two levels to watch for resolution are $386 and $340. * 10 Best High-Growth Stocks to Buy for Young Investors On the options trading front, calls were the clear victor in Friday's popularity contest. Total activity ramped to 156% of the average daily volume, with 214,525 contracts traded; 63% of the trading came from call options alone.Implied volatility held steady on the session at 45% or the 41st percentile of its one-year range. Premiums are pricing in daily moves of $10.38 or 2.8%.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 * 7 Telecom Stocks to Set on Speed Dial * 6 Stocks to Sell in the Back Half of 2019 * 7 Top S&P 500 Stocks of 2019 (So Far) Compare Brokers The post Monday's Vital Data: Canopy Growth Corp, Microsoft and Netflix appeared first on InvestorPlace.
Some of those may have gained their wealth through the Evolve Marijuana ETF (TSE:SEED) (OTC:EVVLF), which, in the last year, has delivered the best performance among all cannabis ETFs. Need more cannabis news? Evolve launched SEED on the Toronto Stock Exchange roughly 14 months ago.
The hottest marijuana stock in early 2019 was Cronos Group (NASDAQ:CRON). CRON stock rallied tremendously in early 2019 after the company scored a multi-billion dollar investment from global tobacco giant Altria (NYSE:MO).That investment put Cronos stock in unique company; the only other cannabis producer to score such an investment thus far is Canopy Growth (NYSE:CGC), and CGC, with a a $15 billion market cap, is widely considered the 800-pound gorilla of the cannabis world. In late 2018, Cronos stock had a $2 billion market cap.So the owners of CRON stock were euphoric about the Altria investment. They took it as a sign that Cronos now had the necessary firepower and resources to become a very big and important player in the cannabis market. Consequently, CRON stock rose from $10 in late 2018 to $25 by early March 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top S&P 500 Stocks of 2019 (So Far) But Cronos hasn't delivered on the hype. Instead, the company reported subpar early 2019 numbers which basically affirmed that Cronos isn't gaining share like investors had expected it to. As a result, CRON stock has fallen over the past few months. Today, its shares trade hands for about $16.The problem is that CRON stock is still far more richly valued than all of its peers. Thus, the stock price still indicates that the company will start generating strong growth in the foreseeable future. But current trends imply that such a rebound is unlikely to materialize.So Cronos stock should be avoided until CRON's higher growth does materialize because right now CRON offers too much risk and not enough reward. Cronos Stock Is Still Overvalued Relative to Its PeersAlthough CRON stock presently trades almost 40% off its 2019 highs, the stock is still overvalued relative to its cannabis peers. Further, there doesn't seem to be any good reason for the premium valuation of Cronos Group stock.Cronos has a market cap of $5.2 billion. The company sold just over 1,100 kilograms of cannabis last quarter. That means each kilogram of cannabis sold last quarter by Cronos is being valued by the market at roughly $4.7 million. That number ranges between $800,000 and $1.5 million for the three other big players in the Canadian cannabis market - Canopy, Aurora (NYSE:ACB), and Tilray (NASDAQ:TLRY) . Those three companies are trading at a average valuation of $1.3 million. per kilogram Thus, on a per-kilogram basis, the valuation of CRON stock is 260% higher than its peers.Why is Cronos stock getting a premium valuation? It has nothing to do with size. Cronos is much smaller than Canopy, Aurora, and Tilray. It also has nothing to do with growth. Last quarter, Cronos reported the slowest year-over-year revenue growth in the group. Nor does it have anything to do with U.S. market expansion, as Cronos hasn't announced anything too special on that front, while Canopy looks positioned to dominate the U.S. market with its Acreage acquisition.CRON stock has a premium valuation because of the $1.8 billion investment it received from Altria. But CRON stock's enterprise-value-to-expected-2020-sales multiple is around 25, versus an average of 15 for CGC, ACB, and TLRY.That $1.8 billion of cash could fuel acquisitions, expansions, and stronger growth. But that isn't happening yet. Until it does happen, CRON stock simply appears overvalued relative to its peers. CRON's Long-Term Fundamentals Don't Support Its Current ValuationThe bigger problem with Cronos stock is that it appears overvalued relative to its long-term growth prospects.Cronos is a small player in the Canadian cannabis market. In the fourth quarter of 2018, the sales of the legal Canadian cannabis market were worth around $150 million. Cronos reported revenue in that same quarter of roughly $4.2 million. Thus, Cronos commanded market share of about 3%. Given analysts' consensus projections regarding Cronos' sales and the Canadian cannabis market, it looks like most experts expect Cronos' market share to remain about 3% for the foreseeable future.On a global scale, that market share will assuredly come down as more competitors enter the cannabis sector. Thus, CRON's longer term market share in the $200 billion global cannabis market could be about 2%. That implies long-term revenue potential of $4 billion. Gross margins in the industry should hover around 55%, which is roughly where alcoholic beverage makers' gross margins stand today. CRON's operating spending rates should fall as it grows and will likely moderate around 30%. Thus, its longer term operating margins could be 25%. Assuming it generates $4 billion of revenue, it should have $1 billion of operating profit.After taking out 20% for taxes, its net profit would be $800 million. Based on a market-average 16 multiple, the long-term valuation target for Cronos stock is $12.8 billion.That will all take a long time to occur. Most industry insiders and analysts expect its growth to play out over 10 to 15 years. At the midpoint, that's about 12.5 years. After discounting that $12.8 billion valuation target back by 10% per year over 12.5 years, the present valuation target for Cronos stock comes out to less than $4 billion.CRON stock has a market cap above $5 billion today. Thus, until this company uses the $1.8 billion on its balance sheet to supercharge its growth and boost its growth outlook, CRON stock looks overvalued today. The Bottom Line on CRON StockThere is a valid argument for why CRON stock should be worth a lot more than it is today. But that argument relies on Cronos doing something it hasn't done yet: using the $1.8 billion on its balance sheet to materially gain market share in Canada and lay the groundwork for higher share in international markets.Until that happens, CRON stock will remain a "high risk, low reward" name, meaning that Cronos Group stock is best avoided for the foreseeable future.As of this writing, Luke Lango was long CGC and ACB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Telecom Stocks to Set on Speed Dial * 6 Stocks to Sell in the Back Half of 2019 * 7 Top S&P 500 Stocks of 2019 (So Far) Compare Brokers The post Why Cronos Group Stock Still Looks Overvalued appeared first on InvestorPlace.
With the markets near all-time highs, there has been a nice rally in cannabis stocks, but Aurora Cannabis (NYSE:ACB) seems to have missed the memo. ACB stock has been languishing.Source: Shutterstock During the past couple weeks, Tilray (NASDAQ:TLRY) has logged a return of 32% while Cronos Group (NASDAQ:CRON) is up about 17% and Canopy Growth (NYSE:CGC) has gained 11%.Unfortunately, ACB stock has been in an extended downtrend, going from $10 in March to $7.48.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the year so far Aurora Cannabis stock is still up an impressive 43%. When it comes to cannabis stocks, there is usually quite a bit of volatility and this is not likely to change any time soon. * 6 Stocks Ready to Bounce on a Trade Deal The Pros And Cons of ACB StockThe bearishness with ACB has been the result of various factors. Although, perhaps the most important is the string of disappointing earnings reports. Note that the Canadian market has proven more difficult with the transitional to legalized marijuana. There have been challenges with the supply chain and retail expansion. What's more, black market sources have remained a persistent issue.But hey, such growing pains should be no surprise. If anything, the recent weakness does make ACB stock look relatively attractive. Consider that the consensus price target is $14.27, which implies 91% upside from current levels.So what are some of the catalysts to get ACB stock back on track? Well, first of all, the company is a top producer in the Canadian market. During the latest quarter, the production nearly doubled to 15,000 kilograms. But with the acquisition of MedReleaf and a myriad of other investments, the potential annual capacity is a hefty 570,000 kilograms.The early experience in the Canadian market is crucial. Aurora is building a solid infrastructure, which will allow for economies of scale. This make it so the company can better compete as cannabis becomes more commoditized in the Canadian market. In fact, Aurora is already becoming a streamlined low-cost provider.But another key - especially for the long haul - is the medical business. The pipeline includes 40 in-process and completed clinical trials and case studies. There has also been continued growth in the patient base, which grew by 5% in 77,136 in the latest quarter. Other Opportunities for ACB StockAnother important development is a recent partnership with the Ultimate Fighting Championship (UFC), which is the world's largest martial arts organization. The agreement calls for an exclusive multi-year focus on clinical research using Cannabidiol (CBD), which is the compound in the cannabis sativa plant that does not produce a high. In other words, there is much potential for breakthroughs with new treatments.With the passage of the Farm bill, the CBD opportunity in the US looks promising and should be a strong catalyst for growth. During the latest earnings call, Aurora chief corporate officerCam Battley had the following to say:"We are well positioned to pursue multiple angles through our deep research and product development capabilities, our regulatory expertise as well as our extensive global hemp infrastructure which we intend to expand through acquiring the shares in HempCo, not already owned by Aurora. CBD for both medical and wellness applications has incredible potential and we intend to fully leverage our capabilities, our infrastructure and our partnership potential to maximize shareholder value creation." Bottom Line on ACB StockIn mid-May, Aurora brought on board as a strategic advisor Nelson Peltz, who is the CEO of Trian Fund Management. He has decades of experience with consumer markets, with investments in companies like PepsiCo (NASDAQ:PEP), Keurig Dr Pepper (NYSE:KDP), Procter & Gamble (NYSE:PG) and Mondelez (NASDAQ:MDLZ).Peltz's involvement is a strong validator. He should also be essential in finding strategic partners.Of course, even with the advantages, ACB stock still has lots of risks. But for investors looking for an interesting cannabis play, this one definitely is worth considering.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post ACB Stock Is a Buy Because Aurora Cannabis Won't Get Left in the Dust appeared first on InvestorPlace.
Investors, meet Akerna (NASDAQ:KERN), the newest marijuana stock to hit the market. Akerna is fundamentally different from many other marijuana stocks in two important ways. One, it's a U.S. company, whereas most pot stocks are Canadian ventures. Secondly, Akerna isn't a cannabis producer; it's a cannabis-technology company.Given those novelties, investors have rushed into KERN stock to gain a different type of exposure to the continuous-growth cannabis market. That's why KERN stock has essentially tripled over the past two days.With that in mind, let's now rewind a bit. The legal cannabis industry is poised to grow more quickly than most other markets over the next decade. Investors want exposure to that market. Right now, because we are in the top of the first inning of the cannabis sector's growth, investors' potential exposure to the legal cannabis industry is largely limited to Canadian cannabis producers like Canopy Growth (NYSE:CGC), Cronos (NASDAQ:CRON), Aurora (NYSE:ACB), and Tilray (NASDAQ:TLRY). Simply put, the biggest players in the cannabis space are producers, and pot still isn't legal in all of the U.S.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 Against that backdrop, Akerna's plunge into the public market is very interesting. A U.S.-based, cannabis technology company, KERN is the first of its kind to go public. And, because investors desperately want diverse exposure to the cannabis market, KERN stock has been a home-run hit ever since making its Wall Street debut.How did Akerna make it to the public market? Will the hype of KERN stock continue? Most importantly, is Akerna stock worth buying today? Let's answer those questions and more by taking a deep look at KERN stock. What Does Akerna Do?Akerna is a very interesting company that uses big data and technology to develop products for cannabis producers.At present, Akerna is supported by two major businesses. One of those businesses is seed-to-sale technology, which allows regulators and government agencies to track cannabis products from their cultivation to their final sale. This is a very important technology. In fact, it's necessary. Seed-to-sale tracking is required by states such as Washington and California and will likely be mandatory for the global cannabis industry.KERN's other meaningful business is broadly dubbed enterprise resource planning, which essentially involves selling big-data-focused software to cannabis producers and pot-store operators. The software is supposed to help players in the cannabis industry better understand their market and customers, as well as reduce expenses, maximize profit, improve customer relationships, and increase yield.Overall, then, Akerna is a cannabis-tech company which sells important technology solutions to cannabis industry regulators, cannabis producers, and retail cannabis companies. KERN hopes to become the technology backbone of the entire cannabis industry.It's already well on its way to that goal. Akerna's systems are used in 29 of the 33 U.S. states in which cannabis is legal. How Did Akerna Get Here?As mentioned earlier, KERN stock is the first of its kind to go public. Not only is KERN a cannabis-tech company, but it's a U.S.-based cannabis-tech company.KERN stock plunged into the public market through a smart merger and some savvy legal maneuvers.The core of Akerna is MJ Freeway, which is a U.S. technology company that provides the cannabis software solutions described earlier. Importantly, MJ Freeway isn't a cannabis company. It's a cannabis technology company. Because MJ Freeway doesn't deal directly with marijuana, it was able to sidestep the legality question and go public with less complications than cannabis producers.Further, MJ Freeway skipped the whole lengthy IPO process. Instead, MJ Freeway merged with a special purpose acquisition company (dubbed SPAC in Wall Street lingo) that was already public. That SPAC was MTech Acquisition. Thus, through MJ Freeway's merger with MTech Acquisition, the IPO cleared all the legal hurdles, and the combined entity was dubbed Akerna.That happened on June 17. Ever since, KERN stock has essentially tripled. Where Is Akerna Going Next?KERN stock has been a huge hit on Wall Street, mostly because the stock offers investors unique exposure to a non-cyclical growth market, and is supported by a speculative but enticing long-term growth narrative which, in a best case scenario, ends with Akerna being the technology behemoth underlying the $200 billion-plus global cannabis industry.Does that mean it's time to buy KERN stock?No. KERN stock has a lot of potential. But all that potential isn't very certain to materialize and it lacks tangibility. The company reported just $10 million of revenue last year. That's next-to-nothing. To bridge the gap between that $10 million 2018 revenue base and a potential billion dollar revenue base in a decade, a lot needs to happen.At this point in time, that growth isn't visible. It's simply too early to declare Akerna stock a long-term winner in the cannabis-tech space.Over the next several months, KERN will be given the opportunity to more convincingly prove its leadership position and cement itself as a long-term cannabis-tech winner, much like Canopy Growth did in 2018 in cannabis production. If that happens, KERN stock will become worth buying. But, until then, the sidelines are the safest and smartest place to hang out when it comes to Akerna stock. The Bottom Line on KERN StockKERN is exciting because, as a U.S.-based cannabis-tech stock, it's the first of its kind. This novelty is what has propelled KERN stock to a 200% gain in just a few trading days.The long-term bull thesis on KERN stock is promising. But it also lacks visibility and tangibility, meaning that it's still too early to tell whether or not Akerna will turn into a cannabis-tech giant or a bust. As a result, until KERN's outlook becomes more visible and tangible, KERN stock should be avoided.As of this writing, Luke Lango was long CGC and ACB. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Akerna Stock Offers Investors a New Way to Play the Cannabis Craze appeared first on InvestorPlace.
Tilray (NASDAQ:TLRY) CFO Mark Castaneda believes "only three or four large players" will control 80% of the global cannabis market with thousands of companies fighting for the remaining 20% market share. So, you can forget about the global cannabis market benefiting lots of different companies.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe question owners of TLRY stock have got to ask themselves at this point is whether the company has the right stuff to be one of the three or four companies controlling the global cannabis market or will it be relegated to a secondary role within the industry?Worldwide legal spending is forecast to be $40.6 billion in 2024, nearly three time the $14.9 billion estimated to be spent this year, according to Arcview Market Research and cannabis industry analysis firm BDS Analytics, which released its annual "State of the Legal Cannabis Markets" report on Thursday. It Doesn't Stand a ChanceI'm going to assume that Canopy Growth (NYSE:CGC) is sure to be one of those four major players in the global cannabis market. With its tentative $3.4 billion deal to buy Acreage Holdings (OTCMKTS:ACRGF) approved by both companies' shareholders, the fact that Tilray CEO Brendan Kennedy believes the U.S. federal government will legalize cannabis within three years suggests Canopy is getting one of the biggest U.S. producers at a very reasonable price. That leaves three other companies. Most investors would assume the winners to be listed in Canada or the U.S. I would tend to agree although you never know what the future will bring. * 7 Top-Rated Biotech Stocks to Invest In Today Currently, TLRY is the fourth-largest Canadian cannabis stock with a market cap of $4.4 billion, $900 million behind Cronos Group (NASDAQ:CRON) in the third position and $3.3 billion behind Aurora Cannabis (NYSE:ACB) in the second spot. This doesn't even take into consideration Aphria (NYSE:APHA) or Hexo (NYSEAmerican:HEXO) which are in fourth and fifth position by market cap, respectively. Of the top five, my favorites are Canopy, Cronos Group and Hexo with Aurora moving higher by the day and Tilray a distant fifth. Logic suggests that a couple of the four big players will come from outside North America. After all, it's a big world out there. Also, a few will likely be U.S. companies that are currently listed in Canada or privately held. One of those could be Acreage, which leaves just one other company to rule the world.At the moment, Curaleaf Holdings (OTCMKTS:CURLF) is the front runner. Operating in 12 states, the vertically integrated cannabis company is growing very quickly. In the March-ended first quarter, Curaleaf's revenue grew 288% year over year and 10% on a sequential basis to $35.3 million. By comparison, Tilray had first-quarter revenue of $23 million, 195% higher year over year. While it's still early in the game, Curaleaf is proving that the American cannabis players are building substantial businesses despite the fact the U.S. market is an incredibly fractured one where some states are legal, and others aren't. Therefore, let's say Canopy, Curaleaf, a cannabis company outside North America, and one more North American company make up the four that control 80% of the global cannabis market share.Is Tilray a better bet than Aurora, Cronos Group, or Hexo? That's debatable. It Will Be in the Top FourAlthough I'm skeptical that Tilray is one of the four cannabis companies that will rule the cannabis world, I do like some of its acquisitions. Take Manitoba Harvest. Tilray paid $316 million for the Manitoba-based producer of hemp-based products that sell in Costco (NASDAQ:COST) and Walmart (NYSE:WMT) and approximately 13,000 other points of sale in the U.S.Manitoba Harvest's 2018 revenues were CAD $94 million. Profitable, the acquisition added to Tilray's bottom line from day one, providing investors with an immediate return on invested capital, not to mention an improved profit-and-loss statement. * 5 Stocks to Buy for $20 or Less While it's not a flashy deal, Manitoba Harvest participates in one of the hottest markets (CBD-infused foods) in North America. As consumers realize that hemp-based products containing CBD can be just as effective as cannabis-based CBD products, Manitoba Harvest's business will see considerable growth. By diversifying its revenue streams, Tilray's CEO is laying the groundwork for a business that can compete in any economic climate. On June 10, Tilray struck a deal with Privateer Holdings, its largest shareholder with 77% of the outstanding stock, that will see the cannabis hedge fund gradually sell its stake to institutional investors over the next two years, removing a significant headwind to Tilray's stock moving higher. "Privateer is giving Tilray a lot of operational flexibility and obviously believes in long-term value of this business and is not pushing to sell its shares as soon as possible, so it's kind of mutually beneficial, this transaction, for both parties," Tilray Chief Financial Officer Mark Castaneda said in an interview.Now that short sellers have been effectively neutered with this transaction, Kennedy can worry about growing Tilray's business rather than worrying about the TLRY stock price.That's excellent news for Tilray shareholders. Is it enough to make it one of the front runners to rule the global cannabis market? No, it's not, but it does improve Tilray's chances slightly. Bottom Line on TLRY StockIt seems that all of the big cannabis companies have a few selling points that make them attractive, making it very difficult to handicap this race. Personally, I'd say Tilray won't be one of the handful of companies to rule the cannabis world, but we're still several years from crowning any winners. Until then, we're all just speculating. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post When The Global Cannabis Shake-out Comes, Will Tilray Still Be A Leader? appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) faces a conundrum. The company continues to make key acquisitions. that have increased its production capacity. As a result, Aurora has become the largest producer of cannabis, but issues with ACB stock itself should make investors pause before buying the shares. Given the company's finances, investors might want to buy other marijuana stocks besides Aurora.In a recent article, I stated that the market has correctly given ACB stock a lower valuation than that of its peers. Its price-sales ratio of just above 61 lags that of Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY), and Cronos Group (NASDAQ:CRON). Aurora Is the Leading Producer of CannabisAurora has excelled in some areas. Its purchase of MedReLeaf raised its production capacity to an estimated level of 570,000 kg. That placed ACB ahead of the company seen as the industry leader, Canopy Growth. Some have also speculated that Aurora Cannabis will become the first company to reach the 1 million kg per year mark.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks Ready to Bounce on a Trade Deal Aurora also made a key move in the increasingly important Latin American market last year. In November, Aurora acquired Uruguay-based ICC Labs for around C$290 million ($216.7 million). That does not sound like a huge deal on the surface. However, it gives Aurora a 70% market share in Uruguay, the first country to fully legalize marijuana. Through the deal, Aurora also obtained licenses to produce medical marijuana in Colombia and export CBD products to Mexico. Strategic, Financial Issues Weigh on ACB StockUnfortunately, analysts have defined Aurora Cannabis stock by what the company has not done. Since it lacks a presence in the U.S. hemp industry or a partnership with a huge company, such as the one Canopy Growth has with Constellation Brands (NYSE:STZ), ACB stock has not commanded the premiums of its large peers.ACB stock is facing other problems. Other InvestorPlace columnists have pointed out that the company has a large amount of goodwill from various acquisitions. The company reported $3.177 billion of goodwill as of the last quarter. This constitutes a majority of the $5.55 billion of total assets on its balance sheet.The dilution of ACB stock also raises some red flags. The shares of Aurora stock outstanding have risen from about 129 million in 2016 to just over 1 billion today. That has kept its long-term debt at a relatively modest $418 million. However, the increased share count makes it much harder for Aurora to increase its earnings per share.The higher share count also makes it harder to profit from ACB stock. Do Not Invest in ACB Stock Because of Its "Number Two" StatusACB stock trades at about $7.50 per share as of the time of this writing. Despite this, traders tend to think of Aurora Cannabis as the second-largest marijuana company. In most cases, I agree with Jack Welch's strategy regarding second-place companies. When he was the head of GE (NYSE:GE), Welch preferred to buy the number one or number two company in an industry. However, after the massive dilution, Aurora stock is a second-place company I would rather avoid.In this sector, I see CGC as the stock of choice among the more prominent names. Alternatively, I would look to either Aphria (NYSE:APHA) or Hexo (NYSEAMERICAN:HEXO), two up-and-coming marijuana stocks which trade at lower valuations. Also, unlike ACB stock, analysts believe these two companies will earn a profit next year. Final Thoughts on ACB StockAurora Cannabis stock should be avoided. With its lead in production capacity and its dominance in Uruguay, I expect the company to survive. However, the stocks of companies that barely manage to survive usually don't rise.Unfortunately, ACB's fundamentals aren't strong enough to lift Aurora stock much. Both its balance sheet and the massive dilution of ACB stock give investors few reasons to have confidence in Aurora. Instead of buying ACB stock , traders would be better served by buying other firms in the cannabis space.As of this writing, Will Healy is long APHA stock. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post Aurora's Strategic Decisions Make It Difficult to Profit From Aurora Stock appeared first on InvestorPlace.
According to Investor's Business Daily, Aurora Cannabis (NYSE:ACB) is the most widely held equity on Robinhood. That's the commission-free trading platform popular with millennials and Gen Z-ers.Source: Shutterstock So, does the fact that millennials and Gen Z-ers are bullish on ACB stock make it a buy?Here are arguments for and against this theory.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Millennial Ownership of ACB Stock Is a Big DealNo question, younger investors are going to be more open to investing in cannabis stocks. They're more familiar with the product itself and aren't nearly as concerned about the stereotypes surrounding its use.For example, the average age of Robinhood's six million users is 32, smack dab in the middle of the millennial generation. Specifically, this demographic includes those born between 1981 and 1996. * 7 Value Stocks to Buy for the Second Half Perhaps that's one reason why four of the top 20 stocks held by Robinhood users are cannabis stocks. The others are Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC) and Hexo (NYSEAMERICAN:HEXO), ranked number six, 11, and 14, respectively.Interestingly, the latter three on Robinhood's list are my favorites. However, Aurora stock has piqued my curiosity recently.InvestorPlace feature writer James Brumley recently wrote a piece about ACB stock that highlighted the moves the company's making to diversify its holdings beyond Canada. Take for example its purchase of Uruguay-based ICC Labs in November.Aurora paid $290 million for the company which controls 70% of the Uruguayan recreational market. The deal also gives ACB access to other countries in Latin America. The longer-term potential there for Aurora Cannabis stock is readily apparent. With a combined population of more than 650 million, this is a very lucrative market.As Brumley wrote, the purchase of ICC Labs gives Aurora a platform for growth in Latin America.Millennials recognize Aurora's big-picture view of the cannabis industry. In their view, management's carefully selected bets on regions and companies enhances the profile of Aurora stock.At the end of the day, millennials understand pot, they aren't scared of it, and the growth potential they see excites them.For Aurora to be at the head of the class is excellent news for owners of ACB stock. Youthful Exuberance for Aurora Stock Is Also a RiskHere's the big problem with Aurora sitting on pole position for Robinhood's list: millennials may view the volatility of ACB stock and cannabis investments in general as a pathway to quick riches. You can't necessarily blame them, as the sector tends to move wildly on the smallest of news.Fortune recently reported on the millennials use of Robinhood. Not all of it was good.Financial planner Tara Falcone, founder of financial-wellness program provider ReisUP, suggested several reasons why Robinhood clients might be high on Aurora Cannabis stock and its ilk:"When you're talking about first getting into trades, you click on browse [on Robinhood] and one of the first things you see is the 100 most popular list," Falcone told Fortune. "To the untrained investor who has now decided to start buying individual stocks, thinking 'I haven't done any research on my own, what are other people investing in?'"The fact that Aurora Cannabis stock appears at the top of the list suggests a seal of approval. But as Falcone points out, that's not always the case.If you take another look at the list, you'll see that General Electric (NYSE:GE) and Ford (NYSE:F) are number two and three on Robinhood's list.Wall Street professionals would not consider these two as strong buys. The Bottom LineAs every day passes, I get more enthusiastic about Aurora stock. While I'm not entirely sold on its overall business, I appreciate its efforts to become a global player. This is a strategy that's right in line with Canopy Growth and some of the other large Canadian cannabis companies.And despite the negatives, at the end of the day, the fact that Robinhood users love ACB stock is further confirmation Aurora's making all the right moves.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Robinhood's Users Love Aurora Stock: Should You? appeared first on InvestorPlace.
CGC analysts are estimating an EPS of -0.17 and revenues of $71 million. Shareholders are voting today on whether to acquire Acreage Holdings, which could propel CGC one way or the other.
Cronos Group Inc. (CRON.TO) (CRON.TO) (“Cronos Group” or the “Company”) reports that at its Annual Meeting of Shareholders on June 19, 2019 there were 610 shareholders voting in person or by proxy holding in total 261,290,314 common shares, representing 78.2% of the total number of common shares outstanding.
Canopy's stock is up 58% YTD, but all of this growth came in the first month of the year and the stock has struggled to maintain the levels it hit earlier this year.
The energy drink space may have a lesson for the budding cannabis industry, Bank of America Merrill Lynch says. While there was all kinds of buzz around energy drinks when Red Bull came along in 1997, ...
Many North Americans have turned to CBD products to ease living with conditions like anxiety, depression, and joint pains. But the medical community is still uncertain what effects CBD products have on those that use them. Green Roads CEO Laura Fuentes joins Yahoo Finance's Julie Hyman, Adam Shapiro, and Teucrium Funds Founder Sal Gilbertie to discuss her company's path to promoting health and wellness through the sale of CBD products
Akerna, a company that provides compliance software to the cannabis industry, headed to the Nasdaq today under the ticker KERN and the backing of an early Facebook investor. Yahoo Finance's Dan Roberts, Heidi Chung and Myles Udland speak to Akerna CEO Jessica Billingsley.