7.13 +0.03 (0.42%)
After hours: 4:00PM EDT
|Bid||7.16 x 3200|
|Ask||7.17 x 3000|
|Day's Range||7.09 - 7.24|
|52 Week Range||4.91 - 7.60|
|Beta (3Y Monthly)||4.98|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
The FDA plans a hearing to discuss regulation on CBD products. Yahoo Finance’s Adam Shapiro, Julie Hyman, Alexis Keenan, and Scott Gamm joins Belpointe Asset Management Chief Strategist David Nelson to discuss.
Cannabis stocks were mostly lower Thursday, with Valens GroWorks and Hexo Corp. bucking the trend after announcing a partnership, and Cresco Labs boosted by a bullish analyst note.
KELOWNA, BC , April 25, 2019 /CNW/ - Valens GroWorks Corp. (CSE: VGW, OTC: VGWCF) (the "Company" or "Valens"), a multi-licensed, vertically integrated provider of cannabis products and services focused on various proprietary extraction methodologies, distillation, cannabinoid isolation and purification, as well as associated quality testing is pleased to announce that it has entered into an arm's length binding multi-year extraction services agreement (the "Agreement") to provide cannabis and hemp extraction services to HEXO Corp ("HEXO") (HEXO.TO) (HEXO), a leading cannabis producer and consumer packaged goods cannabis company.
NYSE-A: HEXO) today announced that it has entered into irrevocable hard voting support agreements with shareholders of Newstrike Brands Ltd. (“Newstrike”) (HIP.V) representing in aggregate approximately 38.3% of Newstrike's issued and outstanding common shares in connection with definitive arrangement agreement (the “Arrangement Agreement”) under which HEXO will acquire, by way of a plan of arrangement under the Business Corporations Act (Ontario), all of Newstrike’s issued and outstanding common shares in an all-share transaction (the "Transaction").
NEW YORK, NY / ACCESSWIRE / April 24, 2019 / The Cannabis industry is going through a major acquisition-consolidation phase. Over the past couple of years we have seen the cannabis industry grow like wildfire. While some have been slow to make changes, only allowing limited medical research or hemp farming (non-THC) exclusively, others have jumped head first, allowing everything including recreational marijuana use.
Cannabis stocks were mostly lower Tuesday, as investors took a breather after Monday’s gains to lock in profits and await the next developments in the sector.
HOUSTON, TX / ACCESSWIRE / April 23, 2019 / The U.S. FDA could provide a substantial boost to cannabis stocks in weeks. HEXO Corporation (HEXO) is currently working with Molson Coors to create non-alcoholic, cannabis-infused drinks.
HENDERSON, NV / ACCESSWIRE / April 22, 2019 / Bank of America analyst, Christopher Carey, has begun coverage of the cannabis industry with a note Wednesday naming Hexo Corp. (HEXO) as the firm's top pick ...
Ah, the magic of analyst ratings! After a tough month in April, cannabis firm Hexo (NYSEAmerican:HEXO) suddenly reversed course after Bank of America analyst Christopher Carey initiated coverage. Sizing up the risk and reward profile, Carey assigned a "buy" rating on Hexo stock with a $10 price target.Source: Shutterstock The news couldn't have come at a better time. While cannabis stocks offer tremendous upside because they essentially materialize an industry that previously never existed, they're also incredibly volatile. Because this is an unprecedented sector, many investors are unsure how to approach a company like HEXO.As such, I mentioned earlier that I liked Hexo stock, even compared to relative heavyweight Aurora Cannabis (NYSE:ACB). Unfortunately, the aforementioned volatility in cannabis stocks disproportionately impacted HEXO, sending my recommendation toward a quick grave. But thanks to Carey, this bad boy gained nearly 12% on Wednesday.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Spring Season Growth Of course, by the time that you're reading this, this dramatic burst in Hexo stock is in the past. Do newcomers still have a chance in riding this promising, but wild bull? Underappreciated Elements Support Hexo StockThe best way I can characterize Hexo stock is as a diamond in the rough. I believe the organization has the right components in place to make a solid run. However, the credibility issues that stymie virtually all cannabis stocks will pressure HEXO. At the end of the day, it comes down to your risk tolerance.But if you're willing to take that leap, Carey argues that this weed play deserves your attention. Primarily, HEXO stock is undervalued relative to its peers. Of course, in the marijuana sector, "undervalued" is an extremely relative term. That said, many cannabis stocks have hit nosebleed levels. Therefore, HEXO at least on paper provides some assurance of future room for growth.Next, the BofA analyst mentioned that Hexo stock is levered toward a "de-risked" Canadian cannabis market. Although I wouldn't use that term specifically, I see his point. Our northern neighbors paved the way for other western and developed nations to adopt tolerant policies. While this broader dynamic is building out, management has time to hone its craft.Finally, Carey mentioned "value-add partnerships" that go beyond the scope of Hexo's existent relationship with Molson Coors Brewing (NYSE:TAP). I agree. Cannabis stocks can branch out into subsegments of the broader categories of recreational and medicinal usage. However, let's not gloss over the Molson partnership as it holds a significant key for growth.Naturally, the idea here is for Hexo and Molson to developed cannabidiol (CBD)-infused drinks. Now, CBD itself is a tailwind for the industry as it offers non-psychoactive exposure to the cannabis plant. In other words, it's a lot easier to introduce people to weed through a drink rather than a joint. Upgrade Suggests Rising Credibility for Cannabis StocksIndeed, Hexo's Molson partnership has advantages over an expected synergy like Cronos Group (NASDAQ:CRON) and Altria Group (NYSE:MO). I don't think I can ever get my parents to smoke marijuana. But to drink it in a form that won't get them stoned? That's infinitely more palatable and more socially acceptable.Invariably, that had to enter BofA's thinking process when deciding to go bullish on Hexo stock. But just the fact that the big bank is even considering cannabis stocks is a major sign. It gives the industry significant credibility, and it suggests a very viable environment in the future.While we here in the U.S. have also warmed to varying degrees of legalization, most banks won't finance cannabis-related businesses. Why? Because it comes down to that nasty roadblock called Schedule I. Despite individual state laws, cannabis falls under strict federal guidelines.Sure, we've made progress in this department, too. For instance, the 2018 farm bill won consensus at a time when bipartisanship no longer exists. And major conservative figures have more or less voiced support for full legalization.Nevertheless, that Schedule I classification remains on the books for marijuana. Unless the federal government officially extinguishes it, most banks won't touch cannabis stocks. * 5 Dividend Stocks Perfect for Retirees And while BofA isn't necessarily diving into the sector with open arms, it's essentially giving you the green light to do so. Look, Hexo stock is a risky play no matter how you cut it. But if you've got the nerve, I'd read between the lines.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 for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post If You Can Tolerate Risk, Hexo Stock Is a Buy appeared first on InvestorPlace.
One company we've highlighted in the past CleanSpark, Inc. (CLSK) has developed power solution for the cannabis industry that can reduce energy costs by up to 82%. This represents a huge potential revenue stream for the company. Due to this fact the company has stated that marketing to cannabis companies is one of their top initiatives for 2019.
After a tumultuous period late-last year, publicly-traded marijuana companies have once again captured the limelight. Among the extensive options investors have, two names, Hexo (AMEX:HEXO) and Aurora Cannabis (NYSE:ACB), piqued most people's interest. The question now is, should investors gamble on HEXO stock or take the more proven ACB?Source: Shutterstock On surface level, both companies feature similar characteristics. Primarily, the two cannabis rivals have outperformed in the markets so far this year. Even their performance stats are neck-and-neck. For instance, on a year-to-date basis, ACB stock is up slightly over 80%, while Hexo has skyrocketed over 86%.In addition, both organizations call Canada home, and obviously both are attempting to capture their home country's market share. From an investor psychology perspective, HEXO stock and ACB stock have similar price points. Therefore, they both appeal to the same category of speculators looking to make a quick buck.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Dow Jones Stocks Holding the Blue Chip Index Back Finally, the two companies specialize in cannabidiol, or CBD. This typically non-psychoactive compound derived from the cannabis sativa plant offers health benefits but without marijuana's addictive properties. A CBD revolution alone could drive either Hexo stock or ACB to the moon.Still, does anything distinguish them? Let's take a deeper look, beginning with HEXO stock: CBD-Infused HEXO Stock Has PotentialLike other weed firms, analysts mostly focus on production capacity when discussing HEXO stock. Luckily, management recognizes this and have responded accordingly. Last month, Hexo made headlines when it acquired Newstrike Brands in an all-equity transaction.Valued at $263 million, the deal gives the acquiring company 470,000 square feet of production space. With the additional capacity, this could boost revenue to $400 million by July of next year. For context, Hexo's trailing-twelve month (TTM) revenue is $16.5 million.But what really intrigues me about HEXO stock is its joint venture with Molson Coors Brewing (NYSE:TAP). Together, the two will develop non-alcoholic, CBD-infused beverages for the Canadian market.Aside from the numbers, the deal is similar in principle with Altria Group's (NYSE:MO) investment in Cronos Group (NASDAQ:CRON). Both Molson and Altria recognized the growing trend in CBD and legal marijuana, and jumped at the opportunity to partner with key players in the segment.However, Molson's venture is more promising because CBD beverages are an inoffensive way to consume botanicals. Unless you're peeing on your neighbor, there's no reason why anyone would complain about someone drinking cannabidiol.On the other hand, smoking or vaping the stuff is inherently offensive. Altria and Cronos will have to figure out a way to mainstream their CBD platform. But for Molson and HEXO stock, the opportunity is turnkey so long as legal momentum continues its path. Smart Strategies Bolster ACB StockAs I mentioned earlier, most analysts who cover marijuana firms focus extensively on production capacity. This emphasis makes perfectly logical sense. After all, you can't take market share if you don't have any supply to feed demand.This is one of the reasons why several critics blasted ACB stock when the underlying company acquired Whistler Medical Marijuana. While Aurora Cannabis bought out several other production facilities, the Whistler deal raised eyebrows for the wrong reason. With an annual production capacity of only 5,000 kilograms, this figure paled in comparison to the usual six-figure digits.So why Whistler? Because this is a company that specializes in differentiated cannabis products. A particular factor driving ACB stock is that its management team is smart. They know that the low-hanging fruit in this segment is gone. Currently, the industry emphasizes capacity. But later down the road, customers will seek distinctive products.Whistler's genetic bank features multiple cannabis variations that address specific ailments and symptoms. And that's really the future of legal marijuana. Patients won't care for just any batch of weed. Instead, they'll buy strains that most effectively addresses their medical issues.In other words, Aurora is covering both the quantity and quality angle. Which One to Pick: Hexo or ACB?The cop-out answer is to buy both. While they're technically competitors, the marijuana market is young. In this case, a rising tide lifts all boats. Plus, their resemblance to each other probably translates to a similar ebb and flow.From a safety and stability standpoint, I believe the consensus is that ACB stock is the ideal choice. Aurora's management has a well thought out strategy that involves capturing nearer-term and longer-term catalysts. Plus, their TTM revenue is nearly $92 million, which is a far cry from Hexo's haul.That said, Hexo has a much stronger balance sheet. I also like that this company isn't stretching itself excessively like its rivals to capture industry demand. However, their one deal with Molson could turn out to be a game-changer.As a result, I'm going to go against the grain on this one and give the slight edge to Hexo. Still, over the next several years, I genuinely believe you can't go wrong with both.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 * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post ACB Is Attractive but There Are Compelling Reasons to Buy HEXO Stock appeared first on InvestorPlace.
Whether vying for shelf space, endorsements, or validation from bigger partnerships, strong relationships are a vital part of long-term success. You can see this playing out recently in public market deals, like Molson Coors Brewing acting as a major validator of HEXO's basic products, or Constellation for Canopy Growth's underlying cannabis offerings. Another new company operating in a coming $52B market has some compelling relationships in place that could result in big revenue growth.
So, I have a question: is Aphria (NYSE:APHA) putting a $1 billion revenue target out there to push Aphria stock higher, or does it have the infrastructure and brands to deliver the goods? * 10 Dow Jones Stocks Holding the Blue Chip Index Back Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs Canada's cannabis industry continues to evolve, the major players all are staking out their positions domestically and internationally. With countries such as the U.S. offering greater potential than the Canadian market based on population alone, companies like Aphria have sales targets that seem outrageously optimistic. Let's take a look at both sides of the argument. It's a Realistic TargetAphria interim CEO and chairman Irwin Simon believes the company can reach CAD$1 billion in sales by the end of 2020. To do that, it has to go from CAD$37 million in fiscal 2018, a big jump in sales for any company, especially one participating in one of the most competitive industries in the world. Simon estimates that it will be a fifth of the way there by May of this year (May 31 fiscal year-end) with 40% margins. His rationale for its CAD$209-million estimate: Aphria's Canadian operations are running at just 18% of capacity. With its Leamington, Ontario, facilities bringing 562,000 pounds in annual production capacity online in the next year -- up from 15,900 pounds today -- the math suggests it's possible. "There's so much low-hanging fruit right now in our Canadian business," Simon said in an interview at Aphria's temporary offices in downtown Toronto. "There are so many opportunities to get to profitability in our Canadian business."In its annual report, Aphria estimates its selling price between CAD$2.50 and CAD$10 per gram. Assuming a midpoint of CAD$6.25, if it sells its entire capacity, we're looking at $1.6 billion annually based on 255 million grams sold. So, it's a mathematical possibility -- which is good news for Aphria stock. It's Pure FantasyThe problem with this kind of calculation is that it is a best-case scenario that factors in none of the competition. According to New Cannabis Ventures, Canopy Growth (NYSE:CGC) is leading the companies reporting in Canadian dollars with CAD$83 million in sales for its most recent quarter ended Dec. 31; Aphria's in third place at CAD$21.7 million. Four additional companies are reporting in Canadian dollars with quarterly sales of CAD$10 million or more. In terms of U.S. dollar companies, there are six generating higher quarterly sales than Aphria. Any of these businesses could steal Aphria's thunder. And there's another problem with the $1-billion target. It assumes that Aphria's production is going to go like clockwork, with no plants dying, achieving maximum efficiencies.As we've seen by Canopy's troubles with its B.C. greenhouses, it's not easy going from growing vegetables to cannabis. "The appeal of greenhouses is their low cost of production. But they are much more difficult to get right. I've seen greenhouses that used to grow chrysanthemum flowers and bell peppers having problems because cannabis is a much trickier crop," explained PI Financial special situations analyst Jason Zandberg. In case you haven't noticed, Aphria has more than one million square feet of greenhouse growing facilities.What are the odds that Aphria's will not face any issues like Canopy's? Slim to none, in my opinion. All the big players are having problems scaling up. If they weren't, we wouldn't have shortages. If Aphria makes it to half its target by the end of 2020, I'd be shocked -- and that's bad news for Aphria stock. The Bottom Line on Aphria StockIf you compare Aphria to the other major players in Canada, Aphria stock is trading at a price-to-sales multiple of 48, less than either Canopy or Aurora Cannabis (NYSE:ACB) at 83 and 72, respectively. So, from that perspective, Aphria's valuation is more reasonable than its two bigger competitors. More importantly, it's based on what's been produced and not pie-in-the-sky projections from CEOs like Irwin Simon.Yes, Aphria is blowing smoke when it comes to its $1-billion target, but, then, so is everyone else.For various reasons, I like Cronos Group (NASDAQ:CRON), Hexo (NYSEAMERICAN:HEXO) and Canopy. That said, Aphria's a reasonable bet if you believe that actual revenue is the only thing that counts when it comes to evaluating cannabis companies. * 7 Stocks With a Lot on the Line This Earnings Season Just don't bet the farm on Simon's hope-and-a-prayer. You'll be sorely disappointed. At the time 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 * 9 Best Dividend Stocks to Buy for Every Investor * 7 Catalysts That Will Send Marijuana Stocks Soaring in 2019 * 8 Risky Stocks to Watch as Earnings Season Kicks Off Compare Brokers The post Aphriaas $1 Billion Target: Fantasy or Reality? appeared first on InvestorPlace.
Cannabis stocks were mixed on Wednesday, with Green Thumb Industries Inc. a standout after posting a big jump in revenue in its latest quarter, while packaging company KushCo fell sharply after saying 2018 losses may double after it uncovered accounting errors.
HENDERSON, NV / ACCESSWIRE / April 9, 2019 / With some analysts calling for a potential recession, they are predicting the cannabis industry will be one of the top industries capable of delivering a healthy ...
Cannabis stocks continued to trade in a holding pattern on Thursday, with investors awaiting the outcome of bipartisan legislation proposed in the House and Senate that would create protections for states that have legalized the substance for medical or recreational use.
HENDERSON, NV / ACCESSWIRE / March 28, 2019 / Last week was a historic moment for the U.S. CBD industry, as CVS, the largest drugstore chain in US by total sales, began selling CBD products in select stores ...
CORAL GABLES, FL / ACCESSWIRE / March 26, 2019 / The marijuana stock market has enjoyed impressive gains over the course of the last few months. Considering the sheer amount of news emerging from the cannabis industry, it's almost counter-intuitive to invest in lesser-known companies. While that may be true in some cases, there are companies in the cannabis industry that have proven to be potentially lucrative picks because of their innovative efforts to advance marijuana into the future.
Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the CBD and cannabis infused beverage sector and how companies are preparing to enter this new market segment. In recent news, Food and Drug Administration Commissioner Scott Gottlieb said his agency has plans to regulate CBD edibles and will start holding public hearings on the matter as early as April. Since the legalization of hemp and hemp-derived CBD in the Farm Bill, the CBD industry has eyed the FDA's position toward the substance, as it represents an obstacle to mass-market CBD edibles from a federal standpoint.
State legislators and lawmakers have seen the opportunities presented by supporting cannabis economies in their home states, and have advocated for legislation in favor of marijuana legalization. The past year has seen a major boom in terms of individuals who support the regulated cannabis industry, resulting in an exponential increase in persons looking to invest in the sector. Next Green Wave Holdings Inc (NXGWF) (NGW), MedMen Enterprises Inc (MMNFF), Namaste Technologies Inc (NXTTF), and HEXO Corp (NYSE American: HEXO) are 4 pot stocks worth keeping on your radar as we close out this week.
HOUSTON, TX / ACCESSWIRE / March 20, 2019 / Analysts at Jefferies say the cannabis industry could reach $130 billion by 2029. "This assumes full U.S. federal legalization, full recreational and medical ...