|Bid||13.85 x 2900|
|Ask||13.85 x 1300|
|Day's Range||13.13 - 13.91|
|52 Week Range||5.12 - 15.30|
|Beta (3Y Monthly)||3.41|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
HENDERSON, NV / ACCESSWIRE / January 16, 2019 / There are several companies we've found starting 2019 off on a good foot. The market rally has helped investor confidence, which has led to oversold companies ...
At a confirmation hearing Tuesday, attorney general nominee William Barr said that the current system around marijuana laws is 'untenable' and he personally supports prohibiting marijuana across the U.S. But, Barr said that under the current set of laws he would not go after cannabis businesses that comply with state regulations and a rescinded Justice Department memo. After Barr's comments, the ETFMG Alternative Harvest ETF , which includes a basket of the largest pot stocks, fell roughly 3% in 15 minutes. Some of the biggest names in the cannabis sector got a late-session haircut too: Canopy Growth Corp. , closed down 2.8%, Aurora Cannabis Inc. touch a mid-session high of a roughly 11% gain but closed the day down 3.2%. Cronos Group Inc. also experienced a similar trading pattern and closed down 5.2%. The lock-up period for Tilray Inc. expired Tuesday and shares fell 17% in the regular session. The Alternative Harvest ETF closed down 3.2% Tuesday.
New York state's path to adult-use cannabis legalization will get clearer Tuesday when Gov. Andrew Cuomo lays out his plan to legalize the recreational use and sale of the drug at his State of the State address at 2 p.m. ET. Cuomo, who previously opposed legalization efforts, said in a radio interview that legalized marijuana could raise about $300 million in annual revenue for the state through taxes. Cuomo cited legalization in Massachusetts and pending legalization in New Jersey when questioned about whether the state should legalize.
CORAL GABLES, FL / ACCESSWIRE / January 15,2019 / Marijuana stocks have had quite a solid week during the beginning of January. American Premium Water Corporation (HIPH), GW Pharmaceuticals plc (GWPH), Cronos Group Inc (CRON) (CRON), and Charlotte's Web Holdings Inc (CWBHF) are 4 pot stocks that are bringing the heat. American Premium Water Corporation (HIPH) is a company you may not have heardof, but could benefit from taking a look at.
After a late 2018 plunge, cannabis stocks have been on a tear to start 2019 due to a confluence of tailwinds, as I predicted in December. You've had analysts initiate coverage on the industry with a bullish skew. You've had early stage investors talk up the long-term potential of these companies. M&A chatter has picked up and legislation has moved in the right direction. All together, the big four pot stocks -- Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY), Cronos (NASDAQ:CRON) and Aurora (NYSE:ACB) -- are all up more than 30% in 2019 already, and it's not even halfway through January. This trend will persist because 2019 will mark the year that cannabis stocks enter into the U.S. market. The 2018 Farm Bill legalized hemp across America. But, Canadian cannabis companies have had a tough time entering the U.S. market due to cross-border restrictions. Canopy has worked around the restrictions, and was recently awarded a license to process and produce hemp in the state of New York. CGC stock rose 10% in response to the news. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This is more than just a one-off catalyst. The New York State hemp license is the beginning a multi-quarter and multi-year excursion for Canopy into the multi-billion dollar U.S. CBD market. As the company embarks on this excursion, its leadership position will grow, its moat will grow, revenues will grow, profits will grow, visibility will grow and CGC stock will rise. As such, now isn't the time to sell CGC stock. Instead, it's the time to double-down on the long-term bull thesis of Canopy turning into a $100 billion company one day thanks to the global proliferation of legal CBD products, and Canopy's ability to stay at the top of this burgeoning market. ### CGC: Buy the Rumor & Buy the News For contextual purposes, let's provide a timeline of what has transpired over the past few weeks and why CGC stock is up 60% since Dec. 20. First, on Dec. 20, U.S. President Donald Trump signed into law the 2018 Farm Bill, which nationally legalized hemp. In response, Canopy Growth issued a press release commending the U.S. on passing this bill, and saying that Canopy is ready for a U.S. market launch. Roughly two weeks later, Canopy talked about its hemp production potential in Canada, and its desire and capacity to replicate that production in the now legal U.S. market. A few days after that press release, Canopy announced it had received a groundbreaking New York State license to do just that. In other words, the writing has been on the wall since the Farm Bill passed that Canopy was going to enter the U.S. market. Investors sniffed out that a potential licensing deal was in the works, and bid up CGC stock 60% in anticipation of that deal. Yet, even though this was a massive "buy the rumor" rally, you didn't get a typical "sell the news" response. Instead, you got "buy the rumor, buy the news", as CGC stock rose 10% in response to the New York State license news. * 10 Companies That Could Post Decelerating Profits Why? Because the implications of this license are huge, and indeed big enough to keep bulls in control and bears on their heels. ### The U.S. CBD Push Has Begun Canopy isn't just going to produce industrial hemp in New York, and stop there. Instead, this is just the first step of what will turn a multi-year expansion into the multi-billion dollar U.S. hemp market. Thanks to the passing of the Farm Bill, some industry insiders peg this market as measuring in at $22 billion in revenues within the next several years. Canopy's market cap is just $13 billion. Thus, this company is in the very early stages of entering a market that is twice the size of the company. This opportunity comes on top of early stage growth in a Canadian cannabis market that projects to also be a $10 billion market one day. All together, the U.S CBD push from Canopy has begun. It won't stop anytime soon. That means big growth is in store for the company over the next several quarters. Such big growth will keep bulls in control, bears on their heels and the stock on a winning trajectory. As such, the outlook for CGC stock to keep rallying in the near to medium term is quite favorable. ### Canopy Growth Is a $100 Billion Company In The Making The big picture behind CGC stock is that this is a company that is second-to-none in terms of size, innovation, leadership, resources, production capacity and expansion in a rapidly growing global CBD market that projects to be huge one day. There's plenty of reason to believe, given CBD's medicinal and recreational applications and widespread use among younger demographics, that the global CBD market will be as big as the global alcohol and tobacco markets one day. Both of those markets are in the $700 billion to $1 trillion-plus range. Conservatively, let's say the cannabis market maxes out around $500 billion in a decade. Let's also say that Canopy only controls about 5% of the global market, and runs at an alcoholic beverage market average of 30% operating margins. * 7 Video Game Stocks on Steep Discount Back of the envelope calculations produce $25 billion revenue potential and $7.5 billion operating profit potential for CGC within a decade. Taking out 20% for taxes and throwing a market-average 16x multiple on the net profits, one can easily see how CGC stock could be worth nearly $100 billion in a decade. That potential valuation is 10 years away. CGC stock has a market cap of just over $10 billion today. Thus, this is a potential ten-bagger over the next decade. Granted, ten years is a long time, and a lot could happen between now and then. But, a New York State hemp license is a big step in the right direction toward CGC stock realizing its $100 billion potential. ### Bottom Line on CGC Stock A New York State hemp license is big news, and a huge step toward this company maintaining its leadership position in the rapidly growing global CBD market. So long as this company keeps taking steps to defend market share, CGC stock has the potential to turn into a $100 billion company one day. As of this writing, Luke Lango was long CGC and CRON. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Why Canopy Growth's Arrival in the U.S. Will Be Huge for CGC Stock appeared first on InvestorPlace.
Gold and mining stocks have been left for dead as investors left mineral resources in favor of the returns seen in traditional equities. Ecuador has been a top destination for deals, and the emerging Lucky Minerals (LKMNF)(LKY) could be on the verge of a big 12-24 months as they report findings from the promising Fortuna Project. Should this happen, investors long Lucky Minerals could see unheard of returns.
CORAL GABLES, FL / ACCESSWIRE / January 14, 2019 / Marijuana stocks have had quite a solid week during the beginning of January. American Premium Water Corporation (HIPH), Isodiol International Inc (ISOLF), Cronos Group Inc (CRON) (CRON), and KushCo Holdings Inc (KSHB) are 4 pot stocks that are bringing the heat. American Premium Water Corporation (HIPH) is a company you may not have heard of, but could benefit from taking a look at.
[Editor's note: This story has been updated to reflect a recent development.] For the new year, the shares of cannabis producer Canopy Growth (NYSE:CGC) have made up some ground, going from $29 to $39. Yet they are still well off their recent highs. Consider that Canopy Growth stock is down about 32% since mid-October. Yes, it's been a wild trip, so to speak, and the fall off has also been more than just about the market correction. After all, there was some excess in the cannabis stocks, as valuations got to stratospheric levels. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Besides, the market has been getting more crowded, which could weigh on the pricing of cannabis. What's more, investors have more publicly traded stocks to choose from nowadays, such as Cronos (NASDAQ:CRON) and Tilray (NASDAQ:TLRY). * 10 A-Rated Stocks the Smart Money Is Piling Into So it's reasonable that CGC stock has been quite volatile. But despite this, I think it still represents a pretty solid way to play the cannabis market - especially for those with a long-term perspective. Here's a look at three factors to consider for the bull case: ### CGC Stock: Strong Platform Canopy Growth is one of the best positioned companies to benefit from the cannabis market. First of all, the company has a global footprint, with operations across 12 countries. Consider there are 4.3 million square feet of licensed locations and 1.3 million that are being built. Next, CGC is assembling an impressive line of brands that span areas like retail, medical and adult-use offerings. They include names like Tweed, Vert, Doja, Spectrum Cannabis and Main Street Shop. CGC has also been building up its IP portfolio, which will be crucial for differentiating itself from the competition. There are currently over 120 patent applications. And finally, CGC has been making progress with its healthcare investments. To this end, the company has 15 human clinical trials and four for animals. CGC has also developed a certification program and learning system for pharmacies. ### CGC Stock and Constellation Brands Constellation Brands's (NYSE:STZ) $4 billion investment in CGC has been a game-changer. Let's face it, when it comes to early-stage markets, there needs to be substantial resources. In the case of CGC, it will need to ramp up its infrastructure, boost marketing and pour money into R&D. But money is just one of the benefits. STZ should be a critical strategic partner that will help propel the growth of CGC. The company will provide a tremendous distribution footprint in the U.S., Mexico, New Zealand, Italy and Canada. Keep in mind that STZ owns brands like Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. What's more, the company has a proven team that understands M&A, brand building, marketing and production. ### CGC Stock: Secular Growth Opportunity The latest earnings report for CGC was a bit of a letdown, as there was actually a sequential decline on the top line. Note that the company was expected to see a lift from the legalization of recreational cannabis in Canada. But unfortunately, there were shortages and logistical issues with the launch. But such things should be temporary. For the most part, cannabis is likely to be a massive growth opportunity. Canada will certainly be a factor but the U.S. is also rapidly moving toward legalization (a recent positive was the passage of the farm bill, which took industrial hemp off the controlled substance list). Indeed, Canopy Growth stock is surging Monday as news is breaking that CGC has been granted a license to produce hemp in New York state. Specifically, CGC will establish a "Hemp Industrial Park" for the extraction and production of the now-legal substance. Here's what Chairman and Co-CEO of Canopy Growth, Bruce Linton, had to say: "Canopy Growth was founded to drive innovation within the cannabis and hemp industries. In New York we see an opportunity to create products that improve people's lives. In the process, we will create jobs in an exciting, highly profitable new industry. I applaud the political leadership at the federal and state level that has allowed today's announcement to become reality." As of this writing, CGC stock is up 9% on the news. So how big will the market get? Well, according to Cowen analyst Vivien Azer, it will reach a whopping $80 billion in the U.S. by 2030. Oh, and she also believes that CGC will see acceleration on the top line. Her forecast for fiscal 2019 is that revenues will soar by over 200% to $778 million. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. 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 * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post 3 Reasons People Are Getting Excited About Buying CGC Stock appeared first on InvestorPlace.
NEW YORK, NY / ACCESSWIRE / January 14, 2019 / U.S. equities posted strong weekly gains, however, stock closed lower for the day on Friday on concerns over an ongoing U.S. government shutdown and worries ...
Many tend to ignore consumer stocks not oriented toward the latest technology. Consumers and investors tend to focus on companies that produce new gadgets or bring the next wave of tech innovation. Many "boring" consumer stocks that have less of a tech focus, however, offer an impressive track record with dividends. This serves as an advantage over a tech industry, which tends to lag the S&P 500 when it comes to offering dividend stocks. Due in large part to dividends and a loyal customer base, consumer stocks tend to offer stability lacking in some of these more exciting stocks. Also, contrary to popular belief, many of these companies have become innovation leaders. Although the press may not always report it, these firms often pioneer new products that place them on the cutting edge in their industries. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 A-Rated Stocks to Buy That The Smart Money Is Piling Into The following three companies lead this innovation. They also offer growth rates, valuations and dividend yields that should draw the attention of stock buyers. Source: Shutterstock ### AbbVie (ABBV) Admittedly, AbbVie (NYSE:ABBV) has made a few of my stock lists. I had hoped not to write about ABBV for that reason. However, when an equity offers an almost single-digit forward price-to-earnings (P/E) ratio, double-digit profit growth and the third-highest dividend yield among dividend aristocrats, I cannot leave it off in good conscience. ABBV stock trades a perfect storm for buyers. The patent on Humira faces patent expirations across the world. This has inspired a wave of selling in AbbVie. Despite this, analysts believe the company's drug pipeline will keep profits growing at double-digit rates. This has led to a forward PE ratio that stands at about 10.1. This perfect storm also applies to the firm's payouts. Due to its previous history as part of Abbott Laboratories (NYSE:ABT), ABBV holds dividend aristocrat status. When a stock hikes its payout for 46 years as AbbVie has, the stock price depends heavily on keeping this streak alive. Even better, ABBV has not made not offered a token hike in the payout merely to maintain the dividend aristocrat status. AbbVie went further, taking the payout from $2.56 per share in 2017 to $3.59 per share in 2018 to $4.28 per share this year. Approving such hikes when they face intense pressure to raise the payout every year shows a strong belief in its own future. Considering the low P/E ratio, the profit levels, and the dividend growth amounts, ABBV becomes one of the more obvious choices among consumer stocks. Source: Peyri Herrera via Flickr (Modified) ### Altria Group (MO) Few consumer stocks reflect resilience better than Altria (NYSE:MO). This year will mark 55 years since the U.S. Surgeon General released their report warning on the dangers of smoking. Amid anti-smoking campaigns, increasing tobacco taxes, and multi-billion dollar legal settlements, MO stock should have sunk into obscurity. Instead, Altria has become an unlikely success story. Despite the hostile environment for tobacco, the company continues to find opportunity. Currently, it invests in both smokeless tobacco and alcohol. It currently holds a 10.2% stake in Anheuser Busch-InBev (NYSE:BUD), for example. Also, despite legal barriers, it has also turned to the emerging marijuana sector. In late 2018, Altria purchased a 45% stake in Cronos (NASDAQ:CRON) for $1.8 billion. Even with the hostile business environment, MO stock manages to maintain a generous dividend. The current dividend of $3.20 per share yields almost 6.6%. Although MO does not hold dividend aristocrat status, the payout has increased in most years. As a result, MO stock has long remained a dividend powerhouse. Those who bought the equity in 2000 and reinvested the dividends receive their original investment back every year in dividends alone. The same holds true for those who bought in 1985 and spent or invested the payouts elsewhere. The company also looks attractive from a valuation and growth perspective. The forward P/E stands at 11.3. Moreover, analysts predict a 7.5% profit growth rate this year. Also, they expect those profit increases to remain in the high-single-digits for years to come. With its successes in related business, and its ability to maintain growth despite strong anti-tobacco sentiment, Altria should continue to stand out among consumer stocks. Source: Shutterstock ### General Mills (GIS) Despite producing recession-proof products, General Mills (NYSE:GIS) and its direct peers have endured years of struggle. An increasing interest in fresh and organic foods has diminished demand for the packaged foods General Mills has produced. As a result, it has seen both revenue and profits steadily fall over the last few years. This has taken GIS stock to levels first seen in 2012. However, a turnaround could occur soon. General Mills has begun to pivot to reflect consumer tastes. The company owns brands such as Cascadian Farm, Larabar, and Muir Glen that produce certified organic foods. Such products have helped revenues and profits turns around. After years of falling numbers, analysts predict a 5.5% increase in profits next year. Revenues have already begun to improve as Wall Street expects a 7.7% increase in sales growth for this year. Also, due to the years of decline, GIS stock trades at 12.7 forward earnings. Although this would not impress investors in a shrinking business, it begins to appear reasonable with growth returning. Also, with a five-year average P/E of 20.6, investors will likely enjoy a nice gain by waiting for the multiple to return to its long-term average. Even better for income-oriented investors, the $1.96 per share dividend yields around 4.75%. Since they have achieved a 15-year streak of dividend increases, another payout hike will likely come this year. Both consumers and investors have waited a long time for packaged food companies to embrace more natural foods. General Mills has finally made that move. With its attractive valuations and dividend yields, GIS stock should find a place among the more attractive high-dividend consumer stocks. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 3 Back-of-the-Shelf Consumer Stocks With Growth and Income appeared first on InvestorPlace.
Tilray (NASDAQ:TLRY) announced on Dec. 18 that it was expanding its partnership with Sandoz, part of drug giant Novartis (NYSE:NVS). Under the deal, which caused Tilray stock to rally, Sandoz's global-sales team will market Tilray's medical-cannabis products. Four days later, Tilray announced that it was partnering with Anheuser-Busch (NYSE:BUD) to research cannabis-infused drinks. That news also created a buzz around Tilray stock. Inevitably, as cannabis companies in Canada and elsewhere stake their claims to different parts of the cannabis industry, comparisons will be made to the Gold Rush of the 1800s. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks at Risk of the Global Smartphone Slowdown And as in the days of the Gold Rush, there will be winners, losers, and posers. ### Is Tilray Stock a Winner, a Loser or a Poser? Unlike Cronos Group (NASDAQ:CRON) and Canopy Growth (NYSE:CGC), Tilray isn't interested in getting investments from large companies, as TLRY prefers to remain completely independent. "We obviously want to partner with other global pioneers and other leaders in their respective sectors," Tilray CEO Brendan Kennedy said about the partnerships. "We think it's too early to give up control of our own destiny." Those appear to be the words of someone who's going to remain CEO of an independent TLRY for a long time. Of course, it could also be PR speak for "We haven't gotten the right offer just yet." Whatever the true motivations of Tilray's CEO and board, its partnerships could prove to be very beneficial for Tilray stock over the long-term. However, it's not uncommon for big, multinational companies to blow hot and cold. Either of Tilray's partners could lose interest, pay a breakup fee, and end the partnership. Getting a big investment like the one that Canopy's gotten from Constellation Brands (NYSE:STZ) is far more permanent; it's also a sign that Canopy is serious about being a smaller piece of a much bigger pie. Tilray might believe that it's in control of its destiny at the moment, but it can lose that control very quickly. TLRY had operating losses of $34 million on $27.6 million in sales through the first nine months of its fiscal year. To win the cannabis wars, companies need deep pockets and experience. Canopy has both. Tilray doesn't. ### It's Not a Poser I don't think there's any way you can consider Tilray a poser. Anheuser-Busch and Sandoz wouldn't have signed on to these deals if they had a sniff of doubt about Tilray's bona fides. However, as InvestorPlace's Luke Lango pointed out in late December, the BUD partnership is not a huge catalyst that can move TLRY stock back into triple digits. "A $50 million commitment from AB InBev (a $130 billion company) is a drop in the ocean," Lango stated in an article published on Dec. 28. "The language in the press release also doesn't imply that AB InBev and Tilray will be 'lifetime partners,' and that stands in stark contrast to the bullish language in the Cronos and Canopy deal press releases." Tilray's CEO, Brendan Kennedy, believes that there will be three cannabis companies with $100 billion valuations, and he hopes that Tilray stock will be one of them. He also thinks that Tilray will be one of three companies in the sector with annual sales of $50 billion. That seems brash for a company that's projected to generate just $140 million of sales in 2019. Kennedy might want to tone down the rhetoric because it likely will come back to bite him in the rear end. ### The Bottom Line on Tilray Stock While Tilray has been in the news a lot in recent weeks, the company's dealmaking has done little to move TLRY stock. Tilray stock can only rise meaningfully if the company delivers better results in the fourth quarter or if it changes its philosophy and sells a chunk of its business to a company like Diageo (NYSE:DEO). Investors want results now. That's a terrible situation for companies like Tilray that have long-range plans. As 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 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Will Tilrayas Dealmaking Lift Tilray Stock in 2019? appeared first on InvestorPlace.
CORAL GABLES, FL/ ACCESSWIRE / January 11, 2019 / The way people receive health care, including how the medical field continues its integration of medical marijuana, is evolving. The fact of the matter is that more people are beginning to trust medicinal cannabis as a means of treatment for a myriad of ailments, including reducing of inflammation and pain relief. As public opinion surrounding cannabis becomes increasingly more favorable, marijuana stocks may begin to present an appealing opportunity for investors looking into the nascent sector.
CORAL GABLES, FL / ACCESSWIRE / January 10,2019 / The marijuana industry has occupied media headlines over the course of the past year to two years, during the course of which top players in the industry saw huge boosts in investor interest. With the new year in full swing, Leafbuyer Technologies Inc (LBUY), New Age Beverages Corp (NBEV), Cronos Group Inc (CRON) (CRON), and KushCo Holdings Inc (KSHB) are 4 pot stocks that could make moves on Thursday. Leafbuyer Technologies Inc (LBUY) is a company you may not have heard of, but could greatly benefit from looking into.
Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the trend of cannabis companies uplisting in U.S. markets. As regulations change, such as the rescheduling of CBD and Hemp in the US, it is likely we will see and more and more smaller cannabis companies work towards uplisting to the OTCQB, NYSE and NASDAQ markets, making them more transparent to investors as well as reaping the benefits of opening themselves up to a larger investor base and gaining access to more capital.
HENDERSON, NV / ACCESSWIRE / January 10, 2019 / Biotech has started 2019 off with a bang. Below are a few that you should be paying attention to. One that looks poised for a big year, Delcath Systems, ...
Aphria (NYSE:APHA) is slated to report its fiscal second-quarter earnings on Friday morning. Few reports in my recent memory - for any stock, not just Aphria stock - have been more important. The numbers alone could have a huge impact on APHA stock. The marijuana sector is still in its early stages. Every company in the space is growing exponentially, off of small bases. APHA needs to keep pace with its competitors, particularly as its rivals like Cronos Group (NASDAQ:CRON) and Canopy Growth (NYSE:CGC) receive multi-billion-dollar cash infusions from larger players. But the results, as important as they are, might be the least important aspect of the Q2 report. The company still hasn't responded to short-seller allegations, made over a month ago, that tanked Aphria stock. And it's facing a hostile takeover effort from new - and smaller - marijuana producer Green Growth Brands (OTCQB:GGBXF). InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks You Can Set and Forget (Even In This Market) All told, there will be a lot of information to analyze on Friday, and Aphria stock is likely to be volatile on that day and going forward. I called Aphria's earnings one of three key reports to watch this week, but that understates the case. This almost certainly is the most important report in Aphria's history, and it might be the most important report in the history of the entire pot sector. ### The Short Sellers of Aphria Stock In early December, Hindenburg Investment Research and Quintessential Capital Management published an article alleging "that Aphria's acquisitions of assets in Latin America constituted "'self-dealing.'" Aphria stock had fallen ahead of the report, due in part to sector-wide weakness, but it dropped even further on the release. At one point, Aphria stock fell 50% below its previous value. Aphria stock has recovered some of its losses, and there has been some good news on the Latin American front, as a Bloomberg reporter toured some of Aphria's assets last month in Jamaica and Latin America and highlighted "plastic tubs brimming with medical-grade marijuana." As a result, the assertion that Aphria's overseas operations are worthless and/or a fraud seems to have been weakened. But investors no doubt are waiting for more color on the value of those assets and the prices that APHA paid for them. In other words, they want the company to - per a promise that it previously made - issue a more detailed rebuttal than it released in the wake of the short sellers' report. It's possible that APHA's more comprehensive response will be issued on Friday or that at least the issue will be discussed in detail during the company's earnings conference call. How management addresses these claims will not just be important for APHA stock. Investors in CRON, CGC, Aurora Cannabis (NYSE:ACB), Tilray (NASDAQ:TLRY), and every other pot stock need to pay close attention to this issue as well. This is a new sector, and a number of pot companies have inexperienced managers and are or were listed on the pink sheets. So the space still needs more credibility. Aphria can add to the sector's credibility or undermine it. ### The Buyout Offer Aphria's credibility is important not just for retail investors, but because its integrity could help determine whether additional big players decide to enter the sector. After Altria (NYSE:MO) and Constellation Brands (NYSE:STZ,STZ.B) invested in cannabis companies, investors began wondering who would be the next target. Luke Lango argued that it would be Aphria. But that won't happen if Aphria's management can't fully dispel the allegations regarding its acquisitions. And in the meantime, Aphria has another offer on its hands from Green Growth. As Lango pointed out, the offer itself doesn't seem to make a lot of sense. But it will be interesting to see how Aphria's management reacts to the offer. Will APHA let slip that it might be interested in another offer from, say, a company with more history and more cash than Green Growth? And how is APHA managing the potential distraction from the hostile bid, which could further dissuade more viable potential acquirers from making an offer, at least in the short term? APHA won't announce on Friday that it has accepted Green Growth's offer. But how the company reacts to the bid will impact investors' appraisal of the credibility of APHA's management. ### The Numbers Finally, there are the actual results. And those will be an important driver of Aphria stock, too. Aphria's revenue more than doubled in its fiscal first quarter. After Canada legalized pot in October, investors will be looking for more of the same. Profits aren't all that important: Aphria's EBITDA, which was previously positive, has become negative as it invests more in its business, and that shift makes sense. In a competitive market - particularly with giants now backing two of Aphria's potential competitors - market share will be the key factor in the near-term. Can APHA show that it's one of the market leaders? That's the question from a fundamental standpoint. But it's also the question from a management standpoint. Is this a real company that can create real profits for owners of Aphria stock? That's the question investors in APHA stock - and every other marijuana play - are trying to figure out right now. The information released on Friday will have a huge impact on how investors in Aphria stock answer that question in the coming months. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy for Winning the Online Battle * The 7 Best Stocks in the Entrepreneur Index * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Aphria's Earnings to Have Major Impact on Aphria Stock, Other Pot Stocks appeared first on InvestorPlace.
HENDERSON, NV / ACCESSWIRE / January 9, 2019 / With huge deals biotech and cannabinoid-based companies have been reporting lately, the space looks poised for a big 2019. One we like is cannabinoid-based ...
Inside only a few months, marijuana companies became both a revolution and an unmitigated disaster. Canopy Growth (NYSE:CGC) perfectly demonstrated this wild ebb-and-flow. Last August, CGC stock skyrocketed nearly 72%. But since mid-October, shares melted down, eventually returning to break-even. As things currently stand, Canopy Growth stock presents an intriguing opportunity. On the positive front, CGC benefits broadly from groundbreaking legislative momentum. In 2016, a record number of states voted for legalization to varying degrees. Two years later, several more states joined in on the action. But on the flipside, marijuana stocks operate largely on potential. Depending on timing, this has resulted in untold riches for speculators and steep losses for those who held too long. Plus, in this market environment, relatively few people have the mood to gamble. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Stocks in the Entrepreneur Index Still, with shares roughly half off from its closing high, it's worth considering all angles. Here are three pros and three cons for CGC stock, starting with the bad news … ### Cons CGC Stock Has Too Much Competition: A few years ago, cannabis firms represented the niche of niche investments. None traded in reputable exchanges, meaning speculators had to resort to over-the-counter exchanges. More critically, you had no idea about what you were really investing. Fast forward to today, and you have several marijuana-related organizations listed in the New York Stock Exchange or the Nasdaq. That raised the profile for the industry, leading to major deals. For instance, tobacco giant Altria Group (NYSE:MO) took a stake in Cronos (NASDAQ:CRON) last month. For the marijuana sector, the deal-making initiatives lend legitimacy. At the same time, partnerships such as the one between CGC and Constellation Brands (NYSE:STZ) are no longer unique. The low-hanging fruit is gone, which means buying Canopy Growth stock now attracts more risk. Legislative Momentum Is a Double-Edged Sword: One of the biggest news items for CGC stock in December was the farm bill, which in part called for hemp legalization. With the domestic agricultural industry under fire due to the ongoing trade war, President Trump signed the measure. This represented an extremely rare demonstration of bipartisan politics. More importantly, both conservatives and liberals tacitly agreed that marijuana legalization is an economic issue. With several states suffering budgetary issues, cannabis offers a viable solution. Moreover, the farm bill aligns with the growing trend of high-profile Republicans and Democrats finding consensus on a previously contentious issue. But like almost anything in this sector, this positive development cuts both ways. The farm bill will eventually open the door for anyone to grow weed. Not that I would know, but marijuana is relatively easy to cultivate. This leads to saturation, which would present a headwind for Canopy Growth stock. Where's the Beef? Although the legal cannabis industry is still in the early phases, I mentioned that the low-hanging fruit is gone. Certainly, Wall Street has moved past the introductory stage. It's no longer enough merely to upload a pretty website. Increasingly, investors want to see substance. When Canada became the first G7 member state to legalize recreational weed, the novelty effect faded quickly. The positive news had to directly bolster individual cannabis firms. When that didn't happen, shareholders panicked. This dynamic presents challenges for CGC stock. If you look at the underlying company's financials, they don't stand out. While it's not fair to compare cannabis stocks with "normal" investments, most prospective buyers want something to chew on. What does Canopy Growth stock give you? Currently, an okay balance sheet and iffy profitability and growth metrics. ### Pros CGC Makes Smart Acquisitions: For any company, acquisitions are tough to assess properly. Usually a positive indicator, expansionary efforts nevertheless carry risks. Primarily, management can overpay for an asset that doesn't deliver expected returns. However, with CGC, I'm confident in the leadership team's strategy and vision. In a relatively quiet and underappreciated announcement, Canopy bought out Storz & Bickel in an all-cash transaction. As a marijuana vaporizer company, Storz & Bickel provides significant retail exposure for CGC stock. But it's not just the retail element that piqued my interest. The German manufacturer is a renowned name among cannabis connoisseurs. Famous for its Volcano Digital Vaporizer, Storz & Bickel specializes in premium-quality products that deliver pure aromatics. With the base product and associated accessories, customers can expect to pay upwards of $500 or more. The best part? They're paying it. Like its backer, Constellation Brands, CGC emphasizes quality over quantity. Their Storz & Bickel buyout further solidifies this ethos. Canopy Offers Competitive Differentiation: The push for quality products doesn't just bring CGC stock into a better light compared to the competition. Moving forward, this strategy will determine whether the company can keep the lights on. As I previously mentioned, the farm bill bolsters the entire cannabis industry, turning an illegal venture into a legitimate one. But if everyone jumps on board, the net profit in the weed business will be severely limited. That's because the barrier to entry is very low. While I'm not suggesting that growing marijuana is a braindead activity, it doesn't take much: all you really need is some land, cannabis seeds and a conducive environment. Should marijuana truly go mainstream, CGC will advantage its cannabidiol (CBD) and cannabis-extract business. CBD is what separates the contenders from the pretenders. This is the arena where top manufacturers can extract unique cannabis strains that address specific ailments or symptoms. Such products marry technology with botany, an avenue for which underfunded newcomers won't have an answer. Canopy Growth Stock Has Stabilized: Finally, risk-tolerant buyers should consider the technical argument for CGC stock. Like almost every other name in weed, Canopy has taken a beatdown over the past three months. At the same time, I think the negativity is overdone. While many questions remain concerning the burgeoning sector, the bottom line is that all indicators point toward broader acceptance. At a time when no one can agree on anything, everyone agrees on marijuana legalization. Although it's possible that weed stocks can crumble from here on out, it's highly unlikely. The demand is too strong. Coincidentally, Canopy Growth stock has finally stabilized. Of course, this doesn't guarantee anything. But after a near-50% haircut, it's reasonably safe to assume most of the bad news is baked in. 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 * 7 Stocks to Buy Down 20% in December * 5 Chinese Stocks to Avoid Now (But Buy Later) * 3 Big Gainers That Easily Could Be the Best Stocks to Buy Compare Brokers The post Canopy Growth Stock: 3 Pros, 3 Cons appeared first on InvestorPlace.
NEW YORK, NY / ACCESSWIRE / January 9, 2019 / Stock Market Press (SMP) looks back at 2018 and the massive shift towards increased cannabis growing facilities and highlights Metrospaces, Inc. (OTC PINK: MSPC) which is rapidly moving forward with its revenue producing cannabis cultivation acquisition. Demand for cannabis is set to increase exponentially as both medicinal and recreational cannabis use spreads across the USA, Canada and other countries. Cultivation will be the key driving force over the next year as companies like GW Pharmaceuticals receiving FDA approval for a cannabis based drug, Cronos' (CRON) production deal with Ginkgo, and Tilray's (TLRY) innovation license approval.
In this case, that includes the cannabis industry. Pulling off of the highway and past a strip mall, I came upon a nondescript warehouse building emblazoned with a façade reading, Commonwealth Alternative Care. It reminded me that much of the industry's gains are still clearing regulatory hurdles, in Massachusetts' case with the commonwealth's Cannabis Control Commission that issues recreational sale licenses.