|Bid||22.80 x 0|
|Ask||24.00 x 0|
|Day's Range||22.54 - 24.66|
|52 Week Range||9.70 - 27.00|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||N/A|
|Expense Ratio (net)||0.94%|
Tilray (TLRY) stock gained ~11.7% on October 15 to $165 per share. Tilray has been a favorite for speculators, and the stock has experienced wild swings as we saw in September. As of October 15, Tilray was the most valuable cannabis company (HMMJ), ahead of Canopy Growth (WEED) (CGC) and Aurora Cannabis (ACB) (ACBFF). Let’s look at analysts’ recommendations and price targets in October.
Recreational cannabis sales began in Canada on October 17, 2018. Canada is only the second country after Uruguay to legalize cannabis. As a powerful, developed nation, Canada may serve as a blueprint for other developed nations around the world.
HEXO (HEXO), which has a partnership with Molson Coors, rose almost 5.4% on October 15 to 8.95 Canadian dollars. In the current month, the overall consensus recommendation on HEXO is a “buy,” which remained unchanged from September. The current consensus price target on HEXO in October stood at 8.7 Canadian dollars, which increased slightly from 8.6 Canadian dollars in September.
Cronos Group (CRON) is one of the few Canadian cannabis stocks (HMMJ) listed in the US stock market. Canopy Growth (CGC) (WEED) and Tilray (TLRY) are two other stocks that are also listed in the US market. On October 15, Cronos Group announced that it partnered with Technion Foundation to develop cannabis-based skin-care treatment products. The stock rose almost 18.5% to close at 15.2 Canadian dollars. Let’s look at analysts’ recommendations and price targets on the stock.
All of the major cannabis stocks fell the day before recreational cannabis goes on sale in Canada for the first time. The Horizons Marijuana Life Sciences ETF (HMMJ) lost almost 4.7% during the day. In contrast, the overall market was in positive territory with the TSE Composite Index rising by 1.1% and the S&P 500 Index rising by 2.2% on October 16.
Traditional players have shown a great deal of interest in forming partnerships with cannabis companies, and Aphria (APHQF) was recently reported to be in talks with tobacco giant Altria. The overall consensus analyst recommendation for Aphria in October was a “buy,” which was unchanged from the previous month. Overall, analysts remained bullish on Aphria in October for the next-12-month period.
The cannabis sector has garnered a lot of attention recently as we approach the big day when recreational cannabis will be sold legally in Canada on October 17. Industry enthusiasts have poured money into Canadian cannabis stocks. The ETF Horizons Marijuana Life Sciences ETF (HMMJ) has gained 22% YTD (year-to-date). Let’s look at how some of the major cannabis stocks have performed during the same period.
POINT ROBERTS, Wash. and KELOWNA, British Columbia, Oct. 16, 2018 -- https://www.investorideas.com/, a global news source covering leading sectors including marijuana and hemp.
Last week, the overall cannabis sector ended in positive territory. The Horizons Marijuana Life Sciences ETF (HMMJ) rose 3.1% between October 5 and October 12. The Emerging Marijuana Growers Index ETF (HMJR) rose 2.2% during the same period. Let’s look at how the cannabis stocks performed last week.
On October 10, Reuters reported that tobacco giant Altria is in discussions with Aphria (APHQF) about acquiring a stake in the company. The initial round of investments would give Altria a minority stake in Aphria with the possibility of acquiring a majority stake. Following the news, Aphria stock gained 15.2% to close the day at 20.1 Canadian dollars as investors rushed to capitalize on the opportunity.
On October 9, Canopy Growth (CGC) (WEED) announced that it has completed a legal transfer of medical cannabis to the United States for the sole purpose of research related to medical product development. Canopy Growth is the second company to do so after Tilray (TLRY) announced last month that it received approval from US regulators to export its cannabis products for medical research.
The cannabis sector was largely in positive territory on October 10 when the overall market experienced a heavy sell-off sparked by technology stocks. The Horizons Marijuana Life Sciences ETF (HMMJ) gained 1% during the day, and the Emerging Marijuana Growers Index ETF (HMJR) was ~79 basis points higher.
On October 9, Tilray (TLRY) announced that it completed the acquisition of a distribution company in Latin America, which it says will help the company produce and market medical cannabis-based products in Chile and the rest of Latin America. Cannabis companies such as Canopy Growth (WEED) (CGC), Aurora Cannabis (ACB) (ACBFF), and Aphria (APHQF) have also established their presence in regions outside of Canada.
Aurora Cannabis (ACB) (ACBFF) is slated to become the fourth Canadian cannabis company after Canopy Growth (CGC) (WEED), Tilray (TLRY), and Cronos Group (CRON) to be listed in the US stock market. On October 9, Aurora Cannabis announced that it has applied to be listed on the NYSE (New York Stock Exchange). During the day, Aurora Cannabis stock gained about 3.4% to close at 13.2 Canadian dollars, while the Horizons Marijuana Life Sciences ETF (HMMJ) was almost flat at 23.5 Canadian dollars.
In the previous part of this series, we saw that the overall median forward EV-to-EBITDA ratio for nine Canadian cannabis companies (HMMJ) fell 30% month-over-month to 33.5x on October 8. Let’s see how the valuation multiples of those nine companies have performed individually.
In the previous part of this series, we looked at the overall median forward EV-to-sales valuation multiple for the nine Canadian cannabis companies we’re covering. That gave us a perspective on how low or high cannabis companies (HMMJ) are trading as of October 8.
On October 17, cannabis will start selling legally for recreational purposes for the first time in Canada. With that anticipation and popularity, cannabis sector stocks had wild swings in September. Tilray (TLRY), Canopy Growth (WEED), Aurora Cannabis (ACBFF) (ACB), and Aphria (APHQF) were all volatile.
Last week, the overall cannabis sector broadly ended in the negative territory. On October 5, the Horizons Marijuana Life Sciences ETF (HMMJ) closed almost 3.5% lower than the closing on September 28. In contrast, the Emerging Marijuana Growers Index ETF (HMJR) grew by 79 basis points during the same period. Let’s look at the top gains and losses in the cannabis sector last week.
Constellation Brands (STZ), which announced its earnings for the second quarter of 2019 on October 4, stated that the upcoming “cannabis space presents as potentially one of the significant global growth opportunities of the next decade.” Constellation Brands has invested almost $4 billion in Canopy Growth (WEED) (CGC). The company intends to make a cannabis-infused drink. Constellation Brands’ investment in Canopy Growth accounts for 35% of the ownership share. Constellation Brands has an option to gradually increase its ownership to ~50%.
On October 3, Canopy Growth (CGC) (WEED) gained about 8% on the news that subsidiary Spectrum Cannabis will be involved in a pilot study that will focus on the use of medical cannabis as an alternative to other therapeutic treatments for cognitive function and pain in long-term care residents. The Ontario Long Term Care Association has partnered with Spectrum Cannabis through an educational grant that will enable this program.
ICC Labs, a licensed producer of medical cannabis in Uruguay and Colombia, received an interim order from the Supreme Court of British Columbia to hold a shareholders’ meeting to vote on a resolution to approve Aurora Cannabis to acquire all of ICC Lab’s outstanding shares. If the shareholders vote in favor of the approval, they will receive $1.95 per share—a 4% premium to the company’s closing on October 3.
On October 2, PepsiCo stated that it doesn’t have any plans for cannabis-infused drinks. This news comes at a time when veteran companies such as Coca-Cola, Constellation Brands, and Molson Coors have all expressed interest or formed partnerships with major cannabis companies to develop cannabis-infused drinks. Canopy Growth (WEED) (CGC) was down by 6.4%, while Cronos Group (CRON) was down 5.3% during the day. The overall cannabis sector, which is represented by the Horizons Marijuana Life Sciences ETF (HMMJ), was down 6.2%.
Last week, the overall cannabis sector ended in negative territory. The Horizons Marijuana Life Sciences ETF (HMMJ) fell 2.4%, the Emerging Marijuana Growers Index ETF (HMJR) fell 1.4%, and the TSE 300 Composite Index lost about 1% between September 21 and September 28.
The company stated that this deal has enabled it to get a foothold in markets of Latin America and the Caribbean such as Colombia, Jamaica, and Argentina. In addition, Aphria stated that it also has the “right of first offer and refusal” for the majority interest of an entity in Brazil with respect to cannabis production along with sales license. In the above chart, we see the company’s five pillars of its international expansion strategy.
On September 27, Canopy Growth (CGC) (WEED) provided an update on its plans to capitalize on cannabis retail in Ontario. The company stated that its Tweed and more recently acquired Tokyo Smoke brands will play a key role in the retail market in the province of Ontario. The company stated that it will operate retail shops in all provinces where permitted along with supplying cannabis products to all of the provinces where supply agreements exist.