|Bid||145.00 x 1000|
|Ask||153.00 x 1200|
|Day's Range||144.97 - 149.18|
|52 Week Range||90.14 - 196.00|
|Beta (3Y Monthly)||2.03|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 1, 2019 - Oct 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||227.31|
So far in 2019, cannabis stocks have been on a roller coaster ride. Investors are wondering which marijuana companies may be better investments for the long term. If you are interested in buying into marijuana shares, you may also want to take a closer look at the ETFMG Alternative Harvest ETF (NYSEARCA:MJ). The MJ ETF is a marijuana ETF that has about $1 billion in assets under management.Source: Shutterstock Investing in the MJ ETF may enable investors to take a long-term view on a growth industry that is likely to reach tens of billions globally in a decade or two. However, investors in the cannabis sector should also remember how choppy individual stock prices that make up the MJ ETF can be. Mechanics of Investing in the MJ ETFInvestors may be able to decrease the volatility of investing in individual stocks by holding more of them, or better yet, investing in an ETF. And at InvestorPlace, my colleagues often cover how various ETFs can help investors construct a diversified portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSimilarly, MJ seeks to provide investment results that correspond to the total return performance of the Prime Alternative Harvest Index. This index tracks the performance of U.S. and global companies that are engaged exclusively in legal activities involving cannabis for medical or non-medical purposes. * 7 Great Small-Cap Stocks to Buy MJ's expense ratio is 0.75% per year or $75 annually per $10,000 invested. For many investors, the comfort in owning a basket of stocks might be worth the price.The MJ ETF also pays dividends with a yield of 2.8%. In recent months, this marijuana ETF has become one of the most popular funds among millennial investors.While the MJ ETF is still exposed to the industry risk, it may provide a good option for investors, as it is will likely be more stable than owning some of the individual stocks. Before investing in marijuana stocks, though, it is important to do your due diligence on the MJ ETF. Companies in the MJ ETFCanada is the second country in the world -- after Uruguay -- to legalize recreational marijuana at the federal level. Since then, a number of federally licensed Canadian cannabis producers have started trading on the Toronto Stock Exchange (TSE) as well as the New York Stock Exchange (NYSE).The MJ ETF currently holds 38 stocks with about 70% allocation to pot companies and growers, many of which are Canada-based and that are becoming increasingly mainstream. Several of the major stocks in the MJ ETF include Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON), GW Pharmaceuticals (NASDAQ:GWPH), Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY) and Green Organic Dutchman Holdings (OTCMKTS:TGODF) It also has an allocation of tobacco stocks and fertilizer companies. The top 10 holdings represent about 60% of holdings in the MJ ETF.One fundamental point that investors need to keep in mind is that most of these cannabis producer stocks are not profitable yet. Analysts value them mostly based on the expectation of high revenue growth, which would lead to future profits. Therefore, whenever Wall Street fears the given company is failing to meet growth or expectations, that pot stock will get penalized.While MJ can avoid some of the bad performances of most marijuana stocks, it would be difficult for it to outperform several of its large holdings, such as Cronos Group, Aurora Cannabis and Canopy Growth. Nonetheless, the level of diversification helps make the MJ ETF more robust than any individual stock in the sector, limiting volatility and downside while retaining the exposure to the market's potential upside. Cannabis Industry in Canada is Still in the Early InningsThe lure of higher-than-average returns may be tempting for many pot stock investors. After all, early investors in many of these stocks have been rewarded handsomely.But as the cannabis industry in Canada matures, will the fundamental forces allow for high double-digit returns any more?The recent earnings reports from Canada-based pot stocks are important in gauging the health of the industry. At present, not everyone is convinced that Canadian recreational pot sales will remain strong. Many investors are concerned that the initial hype surrounding the industry could be decreasing.Since legalization in October 2018, Canadian sales numbers have been muted without any signs of increasing. In 2019, the total cannabis market in Canada, including both legal and illegal recreational and medical sales, is expected to be around $7.2 billion CAD. About half of it is likely to come from legal sales. The Canadian market may also be running the risk of being oversupplied. * 15 Growth Stocks to Buy for the Long Haul Is all this capacity truly needed, given that export volumes are not expected to meaningfully offset oversupply, either? If these marijuana companies harvest more than what they sell, there will be higher inventory balances. And simple economics tells us that a supply glut would eventually drive down the price of marijuana along with the margins of these companies. The developments in Canada over the past year has been reflected in the stock price of most of these Canada-based companies, moving investor sentiment from euphoria to greed to fear.Marijuana is illegal in the U.S. at the federal level. However, at the state level, its legal status depends on the laws of the individual state. In other words, the legalized marijuana industry is still in its infancy, even in Canada, and it is almost non-existent globally. None of the Canadian marijuana stocks have so far done any business in these pot-friendly U.S. states, as the listing requirements at the NYSE or NASDAQ as well as at the Toronto Stock Exchange bar companies from engaging in commercial activities in countries where they would be breaking the U.S. federal law. Where Is the MJ ETF Price Now?In the past two years, marijuana stocks have been choppy and highly speculative. Their valuations can and do change suddenly and drastically, both as a result of event-driven company news or developments in the industry.So far in 2019, with the exception of January, when many stocks did well, investors have witnessed considerable bearish activity in the industry. For most cannabis stocks as well as the MJ ETF, it hasn't exactly been such a "hot" summer. And the value of this particular marijuana ETF reflects this volatility. Year-to-date, the MJ ETF is up 5%. After seeing an intraday low of $23.3 on Dec. 24, 2018, it has rallied to a high of $39.25 on March 19. Its 52-week high remains at $45.4, reached on Sep. 19, 2018. Currently it is hovering around $26.Those investors who pay attention to technical charts should note that due to the decline in price since April, MJ ETF has a not-so-pretty technical picture. In the long run, MJ needs to build a base again before a long-term sustained leg up can occur.From a price and time cycle perspective, the high reached on March 19, 2019, which came six months after the 52-week high of Sept. 19, 2018, is likely to be the highest price to be seen in the near-term. And MJ price may see a new 52-week low in Sept. 2019, possibly around $22.5, about a year after the current 52-week high of $45.4. Within the next month, I expect MJ to mostly range-trade between $27.5 and $25.However, in case of a broader market selloff, similar to the one we have witnessed in the last quarter of 2018, the fund may easily go toward the low-$20's level. The Bottom Line on the MJ ETFFor most of the year, I have been bearish on most marijuana stocks. The hype that has led to high valuation levels, their mostly poor earnings and the dependency on the recreational aspects of cannabis make them risky and volatile investments.Given the risk involved with investing in cannabis, no ETF holding pot stocks is going to be completely safe in being able to avoid losses, but MJ offers investors some safety due to diversification.Now that the sentiment has swung negative, contrarian investors may find value in the MJ ETF. However, investors still need to follow developments in the industry closely to evaluate the appropriateness for marijuana stocks for their portfolio.It is important to note that unless legalization at the federal level in the U.S. happens, cannabis market is, for the most part, limited to the growth in Canada. And a limited Canadian market is not likely to help most of these pot stocks become profitable on an operating basis. This fact makes marijuana stock valuations even more difficult to justify. * 10 Cheap Dividend Stocks to Load Up On Therefore, MJ investors should be ready for daily price fluctuations as well as high volatility around the earnings release dates of the marijuana stocks that mostly make up the ETF. Most of these Canada-based weed companies also have high operating expenses. And the red ink at the bottom of their income statements, quarter after quarter, is becoming a worry for shareholders. If the international cannabis market does not grow as expected, then MJ ETF's price could also experience selling pressure.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities.The post The MJ ETF Solves Some of the Problems of Pot Stocks -- But Not All of Them appeared first on InvestorPlace.
Well, here we are halfway through National Sandwich Month. It is also Get Ready for Kindergarten Month and National Peach Month, in case you were wondering.Source: Shutterstock And don't get me started on days. I'm sure you're beyond disappointed to know that we missed National Sneak Some Zucchini Into Your Neighbor's Porch Day on August 8. Or National I LOVE My Feet Day! on August 17.I mean, who comes up with these? Clearly people with too much time on their hands.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI have one addition -- National Crazy Market Week. Let's talk about that before moving on to a real national day that actually does have value for us as investors. National Crazy Market WeekLast week was full of major headlines ranging from big earnings releases to the trade issues with China to the flashing of a recession indicator. The media really ran with the latter headline as the bears came out of hibernation.The indicator that caused the recession fears was an inverted yield curve. This occurs when the 2-Year U.S. Treasury bond yield is higher than the yield on the 10-Year bond. That means the government is paying more to people who lend to the country for two years than those who lend for ten years. That's the reverse of what it should be. In a normal yield curve, the longer the maturity of a bond, the higher the yield. This makes sense because bond owners should be paid more for locking their money up for longer periods of time.When the 2/10 yield curve inverts, it historically has been a precursor for a recession. However, it really isn't that black and white if you do the research.Since 1978, when an inversion occurs a recession typically doesn't happen for 21.3 months - nearly two years. Even more surprising to most is that one year after the inversion, the stock market is almost always higher… and by a big margin! Over the last four decades, the stock market was up 20%+ on average one year after the 2/10 yield curve inverts.And when you add in the fact that the Fed will likely lower interest rates a couple more times before the end of this year, the odds become even greater that stocks are poised for a major rally in 2020.Yet again, this is a case of the media telling you only half the story. And it makes it a buying opportunity for smart investors.If you're interested in learning more about my thoughts on the current market environment -- and get a few bonus stock picks at the same time - check out my recent appearance on Yahoo Finance by clicking here. National CBD Day!August 8, was National CBD Day. This celebration makes sense to me because of the rapid growth in CBD availability after hemp became legal last December. The CBD industry is set to explode nearly 40X in just four years. Those opportunities just don't come along very often.One company I've followed for years celebrated that day in style. GW Pharmaceuticals (NASDAQ:GWPH), the manufacturer of the first FDA-approved, CBD-based drug, hit a monthly high.The company announced unbelievable revenue growth of 2,081% in its second-quarter report. Most of that came from Epidiolex, the drug I mentioned above. It brought in sales of $68.4 million in the quarter and $101.9 million through the first six months of 2019. Those figures blew estimates out of the water. The Hemp Business Journal had expected full-year sales of Epidiolex to come in around $65 million.Approximately 12,000 patients have received Epidiolex prescriptions since its launch, and that number is only estimated to continue growing. If the drug's approval is expanded to treat tuberous sclerosis complex -- Phase 3 trials are underway and have been promising so far -- its potential client base could increase by another 50,000.This is only the beginning of CBD. I've said it before and I'll say it again … if CBD were a drug, we would call it a wonder drug. So it's no wonder that the CBD industry is set to experience a huge boom over the next decade. I am not aware of any other industry that has this kind of potential. Third Time's the Charm?Snap (NYSE:SNAP) is giving smart glasses another shot. Earlier this week the company unveiled its third iteration of Spectacles, which have the ability to record video and take pictures in 3D. This latest version will also provide the ability to apply augmented reality effects to the images and videos -- similar to what Snapchat does on our phones.Spectacles 3 will be released this fall, so there's your holiday gift for the person who has everything. They come in two colors, are made of stainless steel (an upgrade from previous plastic models), and cost $380.Augmented reality -- and its close cousin virtual reality -- isn't just about adding cool special effects to pictures. The technology can be used in everything from retail to industrial training to professional and amateur sports. That means there will be a whole lot of winners in this space, and you can be sure I'm keeping a close eye on all of them. Bye-Bye Hybrid VehiclesThe shift toward the future of transportation just took another step forward. General Motors (NYSE:GM) and Volkswagen (OTCMKTS:VWAGY) have announced that they will no longer manufacture hybrid vehicles that run on both gas and electricity. They are going to focus their investments on fully electric cars.In the next four years, General Motors plans to launch 20 electric vehicle (EV) models. And Volkswagen is looking to debut a small plug-in SUV next year in the U.S. and an electric version of its minibus by 2022.I think General Motors President Mark Reuss summed the decision up the best: "If I had a dollar to invest, would I spend it on a hybrid? Or would I spend it on the answer that we all know is going to happen, and get there faster and better than anybody else?"The exact same thinking applies to investing. Invest in what's going to happen, and get there faster and better than anyone else. That's how you make the big money.While other auto manufacturers still plan to maintain their investments in hybrid vehicles along the road toward battery-powered cars, we are now seeing the beginning of what I expect will be a new world of transportation. In fact, Continental AG, one of the largest car-parts makers in the world, announced last week that it would cut its investments in conventional engine parts.Transportation 2.0 is coming, from EVs to AVs (autonomous vehicles). This revolution wouldn't be possible without the next generation of batteries. So naturally, the auto manufacturers want a piece of that pie.Last week, Musashi Seimitsu Industry, a Japanese auto maker, announced a partnership with KeraCel, a battery developer that claims to have created a solid state battery with twice as much energy as lithium-ion batteries that will only cost half as much. Plus, these batteries will be 3D printed, which means they can be manufactured in any shape and in any size -- so they can be used for anything!These potential new batteries are amazing and fit squarely in a couple of big investment themes. And for early investors, they present the kind of moneymaking opportunity that could turn a tiny initial stake into an absolute fortune.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Major Headlines Mean Opportunities for Smart Investors appeared first on InvestorPlace.
Last week, GW Pharmaceuticals (NASDAQ: GWPH) released its financial results for the second quarter, and the results surprised analysts and investors alike. Year-over-year, the company's revenue for the quarter rose from $3.3 million to $72 million, an increase of 20.8x. Most of that revenue came from sales of the company's flagship drug, cannabidiol (CBD)-derived Epidiolex, which reached $68.4 million for the quarter and $101.9 million for the first half of the year, destroying even the most bullish of industry predictions.
GW Pharmaceuticals, NetApp, KB Home, PulteGroup, M/I Homes, Lennar and Toll Brothers highlighted as Zacks Bull and Bear of the Day
HubSpot, Kraft Heinz, CNBS, Canopy Growth, Aurora Cannabis and GW Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
From global marijuana legalization to the rapidly increasing use of CBD as a wellness product, all of this should help Tilray witness an uptick in second-quarter revenues.
Quarterly results, more quarterly results, a new buyout and a potentially new Nasdaq marijuana stock -- last week was far from boring in the cannabis industry.
TerrAscend is a portfolio company of Canopy Rivers Inc (OTC: CNPOF), the investment arm of Canopy Growth Corp (NYSE: CGC). Arcadia Biosciences (NASDAQ: RKDA) announced a hemp products joint venture, Archipelago Ventures, involving Shane Victorino, a former MLB player and son of Maui Mayor Mike Victorino.
GW Pharmaceuticals PLC reported Tuesday afternoon that sales of its cannabis-derived epilepsy drug more than doubled from the previous quarter, sending shares spiking more than 11% higher in after-hours trading.
CEO Justin Gover told Cramer during an interview on "Mad Money" he agrees with Cramer's assessment of GW Pharmaceuticals — and all he can do is continue focusing on the company's core medicine and pipeline.
The good news for GW Pharmaceuticals (GWPH) was it generated a profit in its latest reporting period. The bad news is it was the result of a $104.1 million one-off sale of its Rare Pediatric Priority Review Voucher in the quarter. The better news is its core product Epidiolex significantly exceeded sales expectations, and should retain growth trajectory going forward.In this article we'll look at six reasons GW Pharmaceuticals should continue to find support, even though it's certain it'll have a loss in its next reporting period; albeit the losses should continue to narrow. It's probably not too long before the company starts to produce a sustainable profit.Positive Catalysts for EpidiolexThe first three of the six reasons to like GW Pharmaceuticals in the future are associated with its flagship product Epidiolex, which accounted all but $3.6 million in revenue for the quarter.First, sales of Epidiolex wildly exceeded expectations, as it had net sales of $68.4 million in the second quarter, far above the $47 million analysts on average were looking for. Total company sales in the quarter came in at $72 million.Next, health care prescribing by health care providers has been increasing, with over 12,000 patients now having used the treatment since it launched in 2018. At this time over 2,500 physicians have prescribed Epidiolex, with the vast majority of them continuing using the therapy, according to Chief Executive Justin Glover.Last, private and public payers don't appear to have any qualms about covering Epidiolex, with approximately 93 percent of them covering it in the U.S. market.That suggests sustainable performance in the quarters ahead, although the pace of that growth may not be what it was in the last quarter.Probable New Treatments for EpidiolexI put this 4th reason to like GW Pharma into a separate category because it points to future potential and not the existing use of Epidiolex. It's highly probable that the company will gain approval for using the drug in Europe, but that has yet to be confirmed.GW Pharmaceuticals is awaiting the approval of the EU for using Epidiolex to treat Lennox-Gastaut syndrome (LGS) and Dravet syndrome in the early part of October.It would be surprising if the company didn't receive approval, and its fairly safe to at least this will be another revenue stream for the company.Assuming approval, it would launch first in the two largest European markets, Germany in France, with the goal of doing so some time in the fourth quarter. After that it'll launch in Italy and Spain in 2020.More speculative is its research on how Epidiolex may be effective on treating Rett syndrome. It has plans to launch a clinical study to determine if Sativex can be used to treat spasticity in multiple sclerosis patients. The goal there is to obtain approval to use the treatment in the U.S.Finally, it has started to look at recruiting participants in a study that will determine if cannabidivarin can effectively treat autism.Most important here is GW Pharmaceuticals is working on building out a pipeline that would generate meaningful long-term growth for the company, if a number of them are cleared to treat patients. This would significantly increase it patient base, revenue and earnings.Solid Balance Sheet and Cash PositionInvestors should understand that even with all the positive sentiment surrounding GW Pharmaceuticals, it's still going to burn through a lot of cash as it ramps up research and expands to other markets.In the near future it's not going to have another one-time sale of an asset to offset the spending in its earnings results.That could be extremely detrimental to a number of weaker cannabis companies, but GW Pharma has under $30 million in long-term liabilities at this time, and a lot of cash on hand to keep the company from having to issue equity to raise capital, which would dilute existing shareholders' shares.At the end of the reporting period GW had cash and cash equivalents of $583.7 million. That's only about $8 million less than it had at the end of calendar year 2018.The company should obtain some approvals in the near future, and that will generate more revenue and earnings to bolster its balance sheet. It won't immediately catch up with spending, but it does show a path to profitability that it can obtain with probably little need to increase its share count.So the fifth thing to like about GW is it has a strong balance sheet and cash on hand to spend on research and growth without diluting its shares.Analysts Still Bullish on the CompanyThe sixth reason to like GW in the future is it still attracts a lot of bullish sentiment from analysts.Both Oppenheimer and Stifel Nicolaus raised their price targets on GW, with Bank of America/Merrill Lynch retaining its 'buy' rating on the stock.Oppenheimer raised its one-year price target from $234 to $239, and Stifel Nicolaus boosted its one-year price target from $227 to $228.Overall, TipRanks reveals that GWPH has a Strong Buy analyst consensus rating with 5 back-to-back 'buy' ratings in the last three months. Meanwhile the average analyst price target of $221.80 suggests the stock has upside potential of just over 30% from the current share price for the next 12 months. (See GWPH's price targets and analyst ratings on TipRanks)Although I don't make my long-term investment decisions on the outlook and estimates of analysts, many investors do, and in the case of boosting their bullish case for a stock, usually provides a higher floor and ceiling.Combined with the other positive catalysts above, it should provide further upward trajectory for the share price of the stock, assuming GW doesn't drop the ball in some way.ConclusionThere is a lot to like about GW Pharmaceuticals, especially the future potential of Epidiolex and other potential treatments in its pipeline, which will without a doubt generate significant revenue if they're approved, And as mentioned above, some of the less speculative are close to certain to being approved in the EU, which will open up another revenue stream.With the overall health complex in the U.S. having a positive response to Epidiolex at various touch points, this is going to be an ongoing growth engine for GW; investors will probably need to lower expectations on future growth trajectory, even though the company surprised so strongly on the revenue side in the latest quarter.I don't believe it has reached an incremental growth stage yet, but eventually it will. By that time it should have other markets to sell into, partially offsetting the slowing sales trajectory in the U.S. in the future. That time isn't here yet, but it's not a long way off. It could happen within a year in the U.S. market.The pace and timing will be determined on how consumers think concerning moving away from competitive drugs into the perceived safety of Epidiolex. If it gains more U.S. market share, its growth trajectory could last longer than I'm expecting as the company stands today.With a strong balance sheet and cash position, along with the potential to grow out its product pipeline in new markets and treatments, the long-term future of GW Pharmaceuticals looks very profitable for those in it for the long haul.GW Pharmaceuticals boasts an 8 score from TipRanks Smart Score. That’s thanks to a combination of bullish datapoints, including a ‘Strong Buy’ consensus from the Street, bullish blogger opinions, and even positive sentiment from investors. (More details here)
In his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with Justin Gover, CEO of GW Pharmaceuticals plc , the medical cannabis provider with shares that soared 9.1% Wednesday after the company posted earnings of 21 cents a share, when analysts were expecting it to only break even. Gover said that over the past six months, more than 12,000 patients have received prescriptions for Epidiolex, GWPH's anti-seizure medication. Gover said there is still much education to be done with physicians, letting them know what Epidiolex is and how it works for their patients suffering with seizures.