|Bid||0.00 x 2200|
|Ask||0.00 x 1100|
|Day's Range||6.52 - 6.84|
|52 Week Range||4.91 - 8.40|
|Beta (3Y Monthly)||4.91|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Aurora Cannabis (NYSE:ACB) reported its third-quarter results on May 15. They didn't meet analysts' consensus expectations. ACB stock temporarily lost some ground, only to regain those losses by the end of the day's trading. That's a common occurrence when it comes to Aurora Cannabis stock and most other publicly traded pot stocks. The cannabis industry is still the Wild West, featuring maximum volatility and huge risks and rewards.As Canada gets set to legalize marijuana edibles and cannabis-infused drinks in October, Aurora is preparing to meet the demand for those products, whose sales could surpass those of the actual leaf.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend In recent articles, I've changed my tune on ACB stock, as Aurora has demonstrated that it's building a foundation that's as wide as it is tall. If you own Aurora stock, this ought to be music to your ears. The easy play for Aurora would be to focus on profitability at the expense of diversified revenue streams that, down the road, will bear significant fruit for all its stakeholders. Canada's cannabis companies, including ACB, must be blamed for failing to deliver enough supply for recreational pot smokers in the months following the legalization of recreational marijuana in October 2018. That's why Aurora is doing as much as it can ahead of time to ensure this October isn't a repeat of last year's failure to deliver. Here's how it plans to do that. Holding Back InventoryThere's no question that Aurora is continuing to build its inventory. In Q3, it almost doubled its production versus the same quarter a year earlier, to 15,590 kilograms. It generated C$29.1 million from selling pot for medical purposes and C$29.6 million from sales of marijuana for recreational purposes. Overall it sold 9,160 kilos of cannabis in Q3, 31% more than in Q2.However, since edibles, concentrates, and cannabis-infused drinks will soon be legalized in Canada , it's got to ensure it has enough cannabis inventory to make these products. "What we're trying to do is learn from the challenges of the industry last year and the initial launch of consumer legalization -- we absolutely have to have sufficient inventory to launch these products properly," Aurora CFO Glen Ibbott said on Aurora's earnings conference call. "So if that means taking a little bit of revenue out of Q4 and putting it into inventory, into new products, then that's what we'll do."So, even though Aurora expects to produce 25,000 kilograms of cannabis in Q4, 60% higher than in Q3, its top line may come in below expectations.For now, Aurora will focus on edibles, vape pens, and concentrates, leaving infused drinks until later, when it's had time to understand what consumers are looking for in that area. While there's a risk that ACB will fall behind Canopy Growth (NYSE:CGC) and Hexo (NYSEAmerican:HEXO) on the drinks front, potentially hurting ACB stock in the process, given ACB's failure to make a partnership deal with a large beverage maker such as Constellation Brands (NYSE:STZ) or Molson Coors (NYSE:TAP), it makes sense for Aurora to postpone launching infused drinks. Strategy Is Positive for ACB StockWhen I wrote my past articles, before I began to understand Aurora's game plan, I viewed its CEO, Terry Booth, as a snake-oil salesman who was conning the owners of ACB stock out of their hard-earned dollars. But the more I read about Aurora's business, and more importantly, its focus on delivering for its end users, the more I see the method to its madness and the more I believe that its strategy will prove to be positive for ACB stock. At the moment, the balance between supply and demand in Canada is out of whack. It doesn't help that black markets continue to account for a significant percentage of recreational sales. In the first three months of 2019, 38% of Canadian cannabis users bought marijuana from the black market, down from 51% a year earlier. But as the volume of legal pot sold goes up, and prices go down, companies like Aurora that are building significant production capacity will continue to reap substantial benefits from the Canadian recreational and medical markets. I believe that edibles, cannabis-infused drinks, and concentrates will be a bigger part of the Canadian cannabis landscape than the leaf itself. Older, non-smoking users will be more likely to try products other than the leaf and realize that marijuana is healthier than pounding back alcohol. Aurora's decision to forego revenue in the near-term to prepare to meet this future demand, is creating a stronger foundation at home and will allow it to grow faster internationally. As a result, ACB will become a global player capable of holding significant market share outside of Canada, and ACB stock will perform better over the longer term. The Bottom Line on ACB StockThe owners of marijuana stocks, rightly or wrongly, seem to be focused on production growth rather than revenue or earnings growth. As a result, the faster Aurora gets to 25,000, 50,000, and 100,000 kilograms of cannabis produced in a quarter, the faster ACB stock will rise. While I don't like the fact that ACB lost C$158.4 million in Q3, three times the loss than analysts had expected on average, investors ought to be happy that its overall production continues to gather steam.The future of ACB stock continues to get brighter but I wouldn't own Aurora stock if your eyes aren't wide open to the fact that its volatility remains significant. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Aurora Cannabis Stock Continues to Gather Steam appeared first on InvestorPlace.
Cannabis stocks were mostly higher Wednesday, as investors digested the latest deal in the sector, Canopy Growth Corp.’s acquisition of a U.K. skin care company.
Hexo Corp (NYSEAMERICAN:HEXO) stock swelled to a record $7.35 following approval of the proposed acquisition of Newstrike Brands Ltd (OTCMKTS:NWKRF) by the latter’s shareholders. Reportedly, the proposal received an overwhelming support of 97.6% although only 66% of the total votes were required to stamp the deal. However, as of this writing the shares had retreated […]The post Hexo Stock Surges Following C$263 Million Newstrike Deal appeared first on Market Exclusive.
Canadian cannabis company Hexo Corp. said Wednesday it has named Donald Courtney as chief operating officer. Courtney has worked at food and beverage companies, including Mars Inc. and Pesi Bottling Group and has experience in technology from stints at Christie Digital and LG Electronics. He was most recently COO for MedReLeaf. Shares of Quebec-based Hexo were not active premarket, but have gained about 104% in 2019 to date, while the S&P 500 has gained 14%.
NYSE-A: HEXO) is further strengthening its leadership team by appointing Donald Courtney as Chief Operating Officer. “I am really pleased to welcome Donald to our leadership team,” said HEXO Corp CEO and co-founder Sebastien St-Louis.
We are upbeat about Medtronic's (MDT) successful execution of growth strategies such as therapy innovation, globalization and increase in economic value.
With many cannabis companies now having reported earnings from the first full quarter of sales following the legalization of recreational cannabis in Canada, a reconsideration of the best names to be holding is prudent. Among the mid-sized names we can find some interesting companies that appear to be punching above their weight in terms of revenues, guidance and market share. HEXO Corp (HEXO) is one such name which is still worth consideration even with the stock up about 100% year-to-date (on the Toronto exchange).Solid revenues and revenue growth aheadWith earnings for the quarter ending January 31, 2019, HEXO impressed the market by reporting C$16.2M in gross revenues (C$13.4M in net revenues) up from C$6.7M (C$5.7M in net revenues) in the prior quarter. However, it should be noted the prior quarter included only two weeks of sales from the post-legalization period, although the increase quarter-over-quarter at least confirms HEXO is not a one-trick pony. HEXO envisages greatly increased revenues in its future with the announcement of the Newstrike Brands Ltd acquisition coming with a net revenue target of C$400M for FY2020. That being said, C$400M is an aggressive target in such a short time frame and the reaction of the stock suggests the market has not yet priced this in, perhaps being skeptical of these claims. In any case, HEXO seems to be making the right moves to ensure revenue growth (HEXO and Newstrike, combined, have distribution agreements in eight provinces, including the five provinces with the highest retail sales of cannabis).Proven management One factor that should increase confidence that HEXO can achieve revenue guidance is the competent management team steering the ship. Recent examples of management delivering on promises include the completion of the expansion of the Gatineau facility to one million square feet (which was completed within a year of announcement of the planned expansion). March 2019 saw the first harvest at the facility, which has an expected annual capacity of 108,000 kg of dried flower.Additionally, HEXO’s management team got the deal done on a joint venture with Molson Coors Brewing (TAP) which aims to develop and market cannabis-infused beverages in Canada. Other producers which have attracted interest from a beverage maker have generally been much larger, such as Canopy Growth Corporation, which received an investment from Constellation Brands, or Tilray which has partnered with AB InBev. Much like with its revenues, HEXO again punched above its weight in landing such a deal. The hype around these beverage deals including the HEXO-TAP joint venture has subsided slightly in recent months, but the deal may come back into focus when cannabis-infused beverages become legal in Canada, an event anticipated by October 17, 2019.Wrapping upHEXO has kept up with the big players in the pot stock space, inking high impact deals and reporting encouraging revenues. Even with its stock having jumped almost 100% since the beginning of the year, HEXO has more room to run higher. The combination of an effective management team and potential revenue growth make HEXO a name worth considering for those keen on getting exposure to the pot stock space.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on HEXO: * Hexo: The Cheapest Way to Invest in a Giant Market for Marijuana? * The Catalysts That Will Send Cannabis Stock HEXO to New Highs * The Cannabis ‘Magic Bus’ Is About to Leave the Station! Next Stops? More recent articles from Smarter Analyst: * Trade Tensions Bring Micron (MU) Stock Down, But Cascend Remains Bullish * Susquehanna Remains Bullish on Qualcomm (QCOM) Stock as the Roller Coaster Ride Continues * Trump's Trade War Hits U.S. Tech Companies from California to North Carolina * Trade Tensions Bring Down Micron (MU) Stock, But Cascend Is Still Bullish
While it's not the best-known of the pot stocks, Hexo (NYSEAMERICAN:HEXO) is starting to build its reputation. Between fantastic year-to-date performance, a recent uplisting to a major U.S. stock exchange, and a shrewd merger, things are looking up for Hexo stock. There's also a promising venture with MolsonCoors (NYSE:TAP) that gives Hexo credibility and helps elevate it to the big leagues within the pot stock universe.Unfortunately, shareholders buying into the story today may be getting in a little late. The stock is up to more than $6 in just a few months. That, along with dilution from its recent merger has inflated Hexo's market cap a great deal. The company now has a lot to prove in order to justify its stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Yield REITs to Buy (Even When the Market Tanks) Hexo Has Huge AmbitionsA lot of marijuana companies are talking a big game about their future plans. More than a couple of the bigger companies seem intent on building global empires. Even by those standards, however, Hexo is shooting for the moon.On the company's most recent earnings conference call, CEO Sebastien St. Louis stated, "Our vision has remained consistent to create a branded consistent on and off cannabis experience across a variety of verticals in a variety of experiences ranging from sleep, to sport, to sex, to diet, to fun."Hexo isn't just aiming to sell marijuana, it wants to change everything ranging from sex to athletics and nutrition. Heady stuff.Furthermore, Hexo either sees the pot market becoming huge. Or perhaps it is planning on a variety of non cannabis things as well. To those ends, St. Louis said, "We intend to become the premiere branded ingredients for food companies not only a top two in Canada, but also top three globally."For comparison's sake, a U.S. leader in the ingredients for food space, Ingredion (NYSE:INGR) has both a market cap and annual sales of around $6 billion. Hexo, by contrast, has a market cap of under $2 billion and sold just ~$10 million of product last quarter. If Hexo can reach the size of a company like Ingredion, it'd be a home run for shareholders. But it has a long way to go to reach that aim. Can Hexo Live up to the Hype?Hexo stock is having a fantastic year. As of this writing, the stock is up 101% year to date. That's incredible on its own. It's even more impressive when you consider that most of the other leading marijuana stocks have been in a bit of a slump lately.We have to ask if Hexo will be able to maintain its hot streak though. As our Vince Martin recently wrote, much of Hexo's recent gains have come from investors discovering the stock, rather than the company's actual accomplishments."The story behind Hexo is gaining a broader reach -- and the Hexo stock price is responding in kind. The question at this point is whether that's a good thing -- and whether a strong YTD is starting to price in at least some of the opportunity here, "Martin wrote.Martin went on to explain how trading volume in HEXO stock has surged. In particular, with the company's up-listing to a major market in the U.S., it has attracted far more activity. But the company will now need to demonstrate that it can live up to its greatly increased share price. Newstrike Deal Looks Like a PositiveOne positive for Hexo, as compared to other marijuana companies, is that it acquired Newstrike Brands (OTCMKTS:NWKRF). Hexo appears to have gotten a great deal, as it paid just a few percent premium to Newstrike's then stock price. Newstrike removes one key limitation for Hexo. Remember that Hexo is based in Quebec and has taken a big lead in French-speaking Canada. However Quebec makes up just 8 million out of Canada's 37 million person population. Newcastle, with its business relationships in English-speaking provinces gives Hexo a major boost in becoming a national rather than just regional player.Additionally, as of Newcastle's latest filing, that company had a large cash position and few liabilities. Combine with Hexo, which recently raised money of its own, and the combined firm will have a great balance sheet with which to pursue further growth opportunities. Hexo Stock VerdictHexo has built itself a bit of a differentiated business model from many of the other large Canadian marijuana rivals. Its focus on both edibles and beverages via the MolsonCoors relationship should give it some cover from steadily sinking marijuana prices in the Canadian recreational marijuana market. And if the company's ambitions come anywhere close to playing out, Hexo stock should be a big winner.On top of that, the company's balance sheet and Newstrike deal should give it a lot of positive momentum through the rest of 2019. The company is looking at going from a revenue run rate that is currently around $40 million to something like four times that next year. Hexo should have some solid earnings releases coming in future quarters.While the company's story is promising, make sure you are comfortable with the risk before buying into Hexo stock at this price. It wouldn't surprise me at all if the stock dipped 20-30% in coming weeks, particularly if the general malaise in the pot stock sector continues.At the time of this writing, Ian Bezek owned TAP and INGR stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Up More Than 100% Already, It's Time to Take Profits on Hexo Stock appeared first on InvestorPlace.
Since their inception, marijuana stocks attracted significant attention. Due to both investment sentiment - and let's face it, raw emotions - the cannabis sector absolutely skyrocketed. But now, the segment is attracting attention for failing to live up to analysts' expectations. Is the honeymoon phase over for weed?Hardly! While cannabis firms have produced some disappointing results during earnings season, that's no reason to abandon them. For one thing, the resurgent U.S.-China trade war is incredibly favorable for marijuana stocks to buy. Prolonged tensions will almost surely cause us economic damage. An easy fix here is to legalize weed and fully open the door to a multi-billion dollar industry.Another reason to stay the course with marijuana stocks to buy is the medicinal-cannabis market. Currently, 33 states have legalized medical marijuana, which is indirectly an indictment against the pharmaceutical industry. As I've argued many times before, pharmaceuticals must take at least some responsibility for the opioid crisis. This story alone has converted many people who have realized the benefits of all-natural treatments.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, medical marijuana is becoming a popular and potentially profitable exported good. We all know that progressive Europe is receptive to cannabis-based therapies. But more shocking is that conservative Asian countries notorious for their draconian anti-drug policies have demonstrated tolerance. Thailand became the first Southeast Asian country to legalize medical marijuana, while South Korea is the first East Asian country to jump onboard. * Top 7 Dow Jones Stocks of 2019 -- So Far No matter how you look at it, this development strongly benefits the "botanical" industry. Here are the best three marijuana stocks to buy right now: Aurora Cannabis (ACB)Source: Shutterstock Aurora Cannabis (NYSE:ACB) recently issued its earnings results for the first quarter of 2019. Let's just say the print wasn't exactly great for ACB stock. Although Aurora Cannabis' net-revenue haul of 65.2 million CAD exceeded the year-ago quarter's tally by a country mile, it missed analysts' consensus target of 67.6 million CAD.Also a miss was earnings per share. Wall Street expected a loss of 4 cents per share, but Aurora instead delivered a loss of 16 cents. With such a wide gap, conventional wisdom dictates that you should avoid ACB stock.Actually, though, even if Aurora Cannabis hit its metrics with flying colors, I wouldn't pay much attention. Why? Because this is a marathon investment toward an unprecedented sector. As such, you'll find nearer-term noise. Ignore it.The key here is that the management is positioning itself for dominance in the lucrative medical-marijuana market. Its acquisition of Whistler Medical Marijuana indicates that the focus is on quality, not quantity. When weak marijuana stocks get flushed out, ACB will remain standing. Canopy Growth (CGC)Source: Shutterstock Undeniably, a motivating factor to buy shares of Canopy Growth (NYSE:CGC) is the company's international presence. Primarily, it puts up a strong showing in the European mainland. Currently, Canopy is pushing both westward and eastward in the region. However, the ultimate prize for CGC stock and others is the U.S. market.Of course, this is seemingly a pipe dream due to our country's (misguided) Schedule I classification of marijuana. Still, CGC stock jumped mid-April when Canopy announced a contingent offer to buy out Acreage Holdings (OTCMKTS:ACRGF). Canopy will pay $300 million upfront if the U.S. legalizes marijuana.Many botanical advocates argue that Schedule I is a relic of the ignorant and racist past. However, it's still federal law, which means cannabis firms in green-friendly states are still technically at risk. * 7 Stocks to Buy that Lost 10% Last Week But thanks to the U.S.-China trade war, I genuinely believe that full legalization is nearing reality. A prolonged conflict with the world's second-biggest economy will invariably hurt our own fiscal health. That's why the U.S. has to explore marijuana if they insist on playing hardball with China. If so, look for CGC stock to soar. Hexo (HEXO)Source: Shutterstock If you're like most folks who learned about marijuana stocks to buy late in the game, you're probably hesitant on exposing yourself to the top-tier names. After all, we see them splattered on investment headlines all over the internet. If that's you, you might want to check out Hexo (NYSEAMERICAN:HEXO).For starters, Hexo is an understated name. It generates interest, of course, but not nearly as much as the top dogs. I believe that benefits HEXO stock and is partially the reason why shares have steadily made robust gains. Year-to-date, the cannabis firm's equity is up over 113%.That said, HEXO stock has much more upside remaining over the long term. Renowned alcoholic beverage-maker Molson Coors Brewing (NYSE:TAP) has a partnership with Hexo to develop cannabidiol (CBD) infused, non-alcoholic drinks.CBD recently gained mainstream recognition because it offers the cannabis plant's health benefits, but without levering a negative psychoactive effect. In other words, the compound is a perfect gateway for consumers to try other cannabis-based products.This is a partnership that provides multiple natural synergies. Even though it's not quite a household name, you should put Hexo on your list of marijuana stocks to buy.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post The 3 Best Marijuana Stocks to Buy Right Now appeared first on InvestorPlace.
GATINEAU, Quebec, May 16, 2019 -- HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE-A: HEXO) and the Ottawa Food Bank are pleased to collaborate to provide better access to.
The case for cannabis producer Hexo (NYSE:HEXO) has been based in part on the idea that investors have missed the story. When pot stocks started taking off early last year, the HEXO stock price still languished.More recently, pot plays like Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY) have dominated the headlines; Hexo seemed to get a fraction of the coverage of those peers.That's clearly starting to change. The story behind Hexo is gaining a broader reach -- and the Hexo stock price is responding in kind. The question at this point is whether that's a good thing -- and whether a strong YTD is starting to price in at least some of the opportunity here.InvestorPlace - Stock Market News, Stock Advice & Trading Tips HEXO Stock Price SoarsWhile cannabis stocks soared in 2018, HEXO mostly was left out of the gains. The stock gained just 5% for the year, as a rally that began in September quickly fizzled.It's been a different story in 2019. HEXO has gained 101% YTD as of this writing. And there are some fundamental reasons for the gains. The announced acquisition of Newstrike Brands (OTCMKTS:NWKRF) was well-received. Hexo raised cash at the beginning of the year, putting its balance sheet in good shape. Second-quarter results in March looked impressive: sales increased over 1,200%. * 7 Dividend Stocks to Buy as the Trade War Reignites But a big part of the story with HEXO stock in 2019 is that its story has spread. That's most apparent when looking at the stock's trading volume. At the end of last year, 30-day average daily volume was under 400,000 shares. Four and a half months later, it's at 5.3 million.The company's listing on the New York Stock Exchange has been a huge driver of that volume. And it's helped the HEXO story become more widely known. That, along with the Newstrike deal and the strong Q2, has been why HEXO stock has outperformed other pot stocks.CGC shares are up 70% so far this year, and Aurora Cannabis (NYSE:ACB) about the same. (Interestingly, an NYSE listing had the opposite effect on ACB stock, albeit in a very different market for marijuana stocks.) Cronos Group (NASDAQ:CRON) is up 47% in 2019; TLRY shares actually have declined 30%. Is There Juice Left in HEXO?So the interesting question here is whether there's more outperformance on the way with HEXO -- or if the market has caught up with the story at this point. Josh Enomoto wrote last month, with the HEXO stock price not far from current levels, that the stock still looked compelling.And Enomoto makes several solid points. The Newstrike deal adds capacity. The combined companies' total production capacity is 150,000 kilograms of cannabis annually.But the company's focus on edibles and beverages -- including a joint venture with Molson Coors Brewing (NYSE:TAP) -- also limits its exposure to oversupply concerns I've previously highlighted.Increasingly, it appears that simply producing weed isn't going to be the path to enormous profits. Cannabis plays need to be differentiated. Hexo's goal of becoming "the premier branded ingredients for food cannabis company", as it put it in a recent presentation, creates that differentiation.At the same time, the gains in HEXO stock have moved its valuation to the nosebleed levels seen elsewhere in the space. Its market capitalization, pro forma for the Newstrike deal, is likely nearing $2 billion. (It's not clear exactly how many shares will be issued to Newstrike shareholders. Hexo's most recent filing with Canadian regulators also cites nearly 50 million shares subject to warrants not included in the current diluted share count of nearly 200 million.) * 6 Trade War Stocks With a Lot of Risk Meanwhile, Q2 net revenue, as impressive as growth was, came in at just C$13.4 million (~$10 million). HEXO stock, then, is trading at something like 50x its current revenue run rate. Just Another Pot Stock?The combination of valuation and trading volume suggests that HEXO no longer is an "under the radar" play. And that makes the case a bit tougher from here.At this point, investors have no shortage of options when it comes to investing in cannabis. And the choice largely comes down to how an investor sees the space playing out. Those looking for scale should choose Canopy or Cronos, both of which are backed with billions of dollars from Constellation Brands (NYSE:STZ) and Altria (NYSE:MO), respectively.Tens of smaller, high-risk plays still sit on over-the-counter markets. Aurora offers the most diversification. Tilray might be getting cheap after its long decline. Another alternative is the 40-pot-stock ETFMG Alternative Harvest ETF (NYSEArca:MJ), which includes HEXO stock among its top 10 holdings, at 3.76% of the portfolio. CRON is the largest holding, at 8.71%.The case for HEXO is intriguing, particularly for those (like Enomoto) who see big growth in edibles and beverages. But the story is out there -- and the edge might not be quite what it was just a few months ago.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post After Investors Ignored It, Is Hexo Stock Now Getting Too Much Attention? appeared first on InvestorPlace.
NYSE-A: HEXO) is committed to food security for Outaouais residents. It is for this reason that HEXO has donated $20,000 to Moisson Outaouais to purchase fresh fruits and vegetables to be distributed to people in need. "Moisson Outaouais does a remarkable job for the people of the Outaouais region, both for the daily needs of the most disadvantaged and for those affected by unforeseen events, such as the recent spring floods," explains Terry Lake, Vice President, Corporate Social Responsibility at HEXO.
NEW YORK, May 13, 2019 -- Wall Street Reporter, the trusted name in financial news since 1843, has recently published interviews with CEO’s of some of today’s most talked.
Now here's something you don't see every day.Up in Canada, investment banker Seaport Global just announced a first of its kind offer to cart its investor clients around Canada aboard a "magic bus" -- they didn't call it that, so we will -- as part of a tour of cannabis production facilities operated by Canadian marijuana companies Aurora Cannabis (ACB), Hexo (HEXO), Canopy Growth (CGC), and Aphria (APHA).("Paging Willie Nelson. Your bus is about to depart the station.")Seaport's "inaugural get on the Bus tour" will depart Quebec on June 3 and continue cross country to Ontario, eventually ending on June 4, and provide investors a chance to quiz management teams on such fascinating subjects as "about forward capital allocation, potential market oversupply, global expansion plans, anticipated product/market development, and strategies for the US market."No word on whether refreshments will be provided.That's the headline news -- but seeing as this offer is limited to folks who know an "SGS salesperson" or "analyst team" to contact, it would appear that space on this magic bus will be limited to very well-heeled Seaport Global clientele. As for the rest of us, the great unwashed of marijuana investing, we may find more of interest in Seaport's executive summary of the state of the marijuana market that Seaport and its clients will be delving into next month.To wit, Seaport's Brett Hundley notes that right now, the Canadian cannabis market is worth about $1 billion, with demand for about 600,000 kilograms of marijuana (in all its forms) per year. (Which works out to one kilogram of generic pot product costing about $1,700 -- or about a buck-seventy per gram).Hundley sees this market growing about 10 times in size "over time," to $10 billion in annual sales, with eventual demand by weight equaling 5.5 million kg. (Or put another way, $1,800 per kilo, or a buck-eighty per gram).Now, we can see the economics students in class waving their arms and objecting that this doesn't sound right -- that as the marijuana market matures and supply of legal pot explodes, demand should go up and prices should come down. And we agree with you -- but this is Hundley's show. Hundley may also be factoring inflation into the picture, in which case, it's entirely possible that $1.80 a gram seven years from now will be a cheaper price than $1.60 a gram is today.Other points related by the analyst in his write-up, which may be of interest to investors lacking tickets to ride the magic bus: Hundley notes that currently, Canadian pot companies are producing pot at the rate of about 725,000 kg per annum -- which means more than 20% oversupply for a market that's currently only demanding 600,000 kg a year. The analyst thinks that over time, this oversupply will moderate. However, he also notes that producers plan to eventually produce more than 6 million kg of pot per year -- which is also more than Hundley estimated end-market demand of 5.5 million kg, seven years from now.Long story short: Marijuana is in oversupply right now, and could very well remain so in the future. Cannabis investors would like to snag a seat on Seaport's magic bus, and ask Aurora, Hexo, Canopy, and Aphria how they plan to rectify this situation.Good luck with that.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on the stocks mentioned: * Analyst Sees Some Challenges in Aurora Cannabis (ACB) Stock * Hexo: The Cheapest Way to Invest in a Giant Market for Marijuana? * Is This Breakout the Time to Be Buying Canopy Growth (CGC) Stock? * Aphria (APHA): Growing Pains in the Cannabis Industry More recent articles from Smarter Analyst: * Trade Tensions Bring Micron (MU) Stock Down, But Cascend Remains Bullish * Susquehanna Remains Bullish on Qualcomm (QCOM) Stock as the Roller Coaster Ride Continues * Trump's Trade War Hits U.S. Tech Companies from California to North Carolina * Trade Tensions Bring Down Micron (MU) Stock, But Cascend Is Still Bullish
Continued execution of consumer and medical strategies, launch of new products and strong international footprint are likely to aid Aurora Cannabis (ACB) in Q3.
The first stories trumpeting the business opportunities in marijuana started popping up around 2016, as ballot initiatives that year legalized recreational marijuana in California, Nevada, Maine and Massachusetts. Most notably, $4 billion marijuana leader Cronos Group (CRON)(CA:CRON) has plunged more than 40% from its recent highs. Yes, there are also a bunch of microcap marijuana stocks out there that are incredibly risky.
Aurora Cannabis (ACB) likely to gain from solid prospects in the Canadian and international consumer markets in fiscal Q3.
NYSE-A: HEXO) and Newstrike Brands Ltd. ("Newstrike") (HIP.V) are pleased to announce that they have received regulatory approval from the Canadian Competition Bureau by way of a no-action letter under the Competition Act (Canada) indicating that it does not intend to challenge the proposed arrangement between HEXO and Newstrike, whereby HEXO intends to acquire all of the issued and outstanding common shares of Newstrike by way of a plan of arrangement under the Business Corporations Act (Ontario) (the “Transaction”). Receipt of the letter satisfies a key condition of the Transaction.
Right now, nothing in the "regular" markets generates as much buzz as marijuana stocks. That's not going to change any time soon, with Aurora Cannabis (NYSE:ACB) scheduled to release its third quarter of fiscal 2019 earnings results next week. As one of the leading names in the weed industry, many eyes will focus on ACB stock.Source: Shutterstock Analysts expect earnings-per-share to hit a loss of 4 cents. Individual estimates range between losses of 6 cents to 1 cent. In the year-ago quarter, Aurora stock absorbed a per-share loss of 3 cents.On the revenue front, covering analysts forecast a consensus target of $55.3 million. However, individual estimates vary wildly, from $42.7 million to $78.5 million.InvestorPlace - Stock Market News, Stock Advice & Trading TipsClearly, Aurora Cannabis has an opportunity to swing ACB stock sharply in either direction. If the actual sales tally exceeds the consensus by a wide margin, I expect a large move. As several InvestorPlace writers have pointed out, marijuana stocks are emotional investments. Q3 is going to make some very happy, while others will be incredibly miserable. * 7 Strong Buy Stocks That Tick All the Boxes But which way will the dice roll for Aurora stock? Here are three factors to consider ahead of Q3 earnings: Medical Cannabis Boosts Profile for ACB StockIf you ever get a chance to sit down with Aurora's management team, chances are, they'll tell you this: ACB stock is first and foremost a medical-marijuana investment. The recreational stuff, while generating headlines, is secondary.Indeed, you don't have to sit down with any executive to recognize their ultimate goal. Just look at their acquisition history. Earlier this year, Aurora bought out Whistler Medical Marijuana. At first, the deal didn't make sense because of the acquired company's modest cannabis-product output.However, it was the intellectual property that attracted ACB. To be competitive against other marijuana stocks, you can't just focus on quantity. Instead, you've got to produce effective strains that address common ailments. In that regard, few organizations could touch Whistler.Not only that, the focus toward the medical component should strongly benefit Aurora stock longer term. Attitudes regarding cannabis as therapy have changed dramatically over the years. So much so that today, you're more likely to find a senior citizen as a regular dispensary customer.More importantly, young Americans overwhelmingly support full legalization. But for now, medical marijuana cuts the widest path possible. Therefore, look for ACB stock to jump if their medical-based revenues demonstrate significant growth. Canadian Supply-Chain Issues a Surprising Tailwind for Marijuana StocksNaturally, every sector attracts naysayers, with marijuana stocks receiving a lion's share of criticism. But just as the bullishness in weed is incredibly emotional, so too is the bearishness.If you talk about Aurora stock or any of its rivals, invariably, the topic of Canadian supply-chain issues arises. Despite the fact that Canada became the first G7 member state to fully legalize weed, its operational facilitation has left much to be desired. In fact, you could call the situation a steaming pile of a mess.For example, during its last earnings report, Hexo (NYSEAMERICAN:HEXO) produced about 10,800 pounds of dried cannabis. However, they only sold about 5,900 pounds, driving up inventory. Look around the Canadian sector and you'll see similar stories: lots of production, but comparatively few sales.Why? Hexo CEO Sebastien St. Louis mentioned a "disconnect" between cultivators and licensed producers. Essentially, "weedpreneurs" underestimated the fulfillment processes necessary to push their product.But is that necessarily a bad thing? What these "issues" indicate is that demand overwhelmed the physical ability to feed it. While that speaks to operational inefficiencies and opportunity costs, these are good problems to have.The alternative -- smooth operations due to slow demand -- is much worse. Aurora Stock Designed for the Global GameBearish focus on Canada detracts from a key development among marijuana stocks: The weed market isn't just about North America, but rather, the world. * 10 Great Stocks to Buy on Dips Of course, we've all heard stories about Amsterdam and other liberal European locales. But cannabis -- particularly the medical variety -- has gained substantial traction in other, surprising parts of the world.Late last year, South Korea made waves when they approved marijuana for medicinal purposes. This wasn't just a publicity stunt as they laid the foundation earlier this year for weed importation. If you told me about this just a few years ago, I wouldn't have believed it: South Korea, like many other East Asian countries, have draconian laws against narcotics.Then again, attitudes are shifting. If older, more conservative Americans can open their eyes to marijuana, it's not inconceivable that other people will follow suit. Thus, look for evidence of growing traction in Aurora's international sales. If apparent, it could skyrocket ACB stock.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 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post 3 Things to Consider About Aurora Cannabis Stock Ahead of Q3 appeared first on InvestorPlace.
Think BIG, a new brand of cannabis, is out to raise awareness for criminal justice reform — all while paying homage to hip-hop legend The Notorious BIG. The California-based social movement strives to promote art and creativity through the sale of recreational marijuana use. Think BIG Founder CJ Wallace and Co-Founder and President Willie Mack sat down with Yahoo Finance’s Julie Hyman and Adam Shapiro to break down how the company got started and what’s next for Think BIG.