|Bid||8.02 x 0|
|Ask||8.03 x 0|
|Day's Range||8.02 - 8.28|
|52 Week Range||7.92 - 23.87|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-1.27%|
|Beta (5Y Monthly)||N/A|
|Expense Ratio (net)||0.86%|
In a relatively slow cannabis news week, we saw Democratic presidential candidate Mike Bloomberg issue share a criminal justice reform plan, which included proposals for the decriminalization of cannabis possession and the expungement of criminal records concerning cannabis convictions. On the other hand, Marc Lotter, President Donald Trump’s director of strategic communications said the federal government has no intention in legalizing marijuana. In Colorado, the Department of Revenue said cannabis sales were close to $1.75 billion in 2019.
Canopy Growth Corp. reported earnings early Friday that gave investors a few reasons to cheer: In short, it wasn’t a total disaster.
Hexo Corp. and Aurora Cannabis Inc., shares lead weed stocks mostly lower Monday, adding to what is shaping up to be a third straight day of losses in 2020.
Cannabis investors are hoping that 2020 will bring more clarity to marijuana stocks. After rising to record high levels in 2018, cannabis stock prices went down in a puff of smoke. One of the primary problems for cannabis stocks was a lack of profitability. Investors saw that making marijuana legal was only part of the battle. Canadian regulators have been slow to approve retail store licenses, creating a supply-demand imbalance.Source: Shutterstock With that said, Aphria (NYSE:APHA) stock has stood out for good reasons. Aphria has shown a profit where other cannabis stocks have failed. In 2019, APHA stock price fell "only" 17%. In context, the Horizons Marijuana Life Sciences ETF (OTCMKTS:HMLSF) dropped 39% for the year.The question that many investors have is whether or not Aphria can generate actual sales that will help justify the company's 2020 price targets.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Balance Sheet Sheds Suspicion on Those Positive EarningsAphria has turned a profit in its last two quarters. However, a closer look at the company's balance sheet shows that the profit was due to a surge in non-operating income. The problem with non-operating income is that it can be a fickle beast. And without the non-operating income, Aphria would not be profitable. * 7 Stocks to Buy for January and Beyond Another problem for Aphria is the way they estimate the value of their crops on a quarterly basis. Additionally, APHA must estimate the projected cost to sell those goods. The result is a positive fair-value adjustment that doesn't reflect how well (or in this case poorly) the actual performance of the company's business was. Mark Hake took a much closer look at Aphria's balance sheet and came to a bearish conclusion.Now to be fair, this is not an issue that is unique to Aphria. The International Financial Reporting Standards for Canadian stocks sets the standard. However, the takeaway is that Aphria would not be profitable on an operating basis if those costs are stripped away. Will APHA Be a Victim of Its Own Forecasts?The other problem for APHA is that they have forecasted strong earnings. In its most recent earnings call, Aphria said it was expecting net revenue for fiscal 2020 of between 650 million CAD and 750 million CAD. The quarter that ended was Aphria's first quarter of the 2020 fiscal year. With net revenue of approximately 126 million CAD, the company was less than 20% towards the low end of that forecast.So, what do analysts project for the current quarter? The good news is that the consensus estimate is for revenue of 130 million CAD. The bad news is that number is well short of the 200 million CAD that Aphria needs to put them at about the halfway mark of the low end of its forecast. Aphria Does Not Need Any More Poor HeadlinesAphria drew the ire of investors due to allegations of wrongdoing in how it acquired Latin American assets. As I wrote back in October, an independent committee (formed by Aphria's board) found many of the allegations to be untrue. But the resulting conflicts of interest led to the resignation of former CEO Vic Neufeld.If this was the company's first offense it would be damaging. However, with it being a second offense, the company is skating on thin ice. Aphria is going to have a hard time meeting the revenue expectations that it has set. What Should Investors Do with Aphria Stock?Whenever I see a stock with the potential for a range of outcomes, I have to call it a hold. And that's what I see with Aphria. The cannabis industry should have a better 2020 simply because most of the frothiness has been wrung out of the stocks. But as investors begin to look at these stocks based on their merits, what will they see?In the case of Aphria, they have bought some time due to perfectly legal but unsustainable accounting measures. The company has yet to show the cash burn of its competitors. But it has already taken a 50 million CAD write-down on the previously mentioned Latin American transactions. And that is confirming the suspicion that Aphria overpaid for those assets. This means more write-downs, and share dilution, is likely.All things considered, 2020 is the year many cannabis companies must begin to prove their case to investors. Until they do, investors can hit the pause button on Aphria.As of this writing, Chris Markoch 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 January and Beyond * 7 Excellent Value Stocks to Buy for 2020 * 5 Hot Housing Stocks That Could Stay Hot in 2020 The post Aphria Stock Has Work to Do to Maintain the Trust of Investors appeared first on InvestorPlace.
Aurora Cannabis Inc. shares slid 8% Monday, after the company announced the exit of a key executive amid reports of insider selling, dilutive financing moves and questions about the company’s path to profitability.
DETROIT — The premier gathering of cannabis entrepreneurs and investors in North America, the Benzinga Cannabis Capital Conference , is heading to Miami in 2020 for its sixth installment. The conference, ...
Cannabis stocks rose Wednesday to recover some of their prior-day losses, boosted by expectations for a steep rise in spending on cannabis over the Thanksgiving period, one of the busier shopping periods of the year.
On the other hand, we saw a series of bad news coming out of major cannabis companies. MedMen Enterprises Inc. (CSE: MMEN) (OTC: MMNFF) tumbled on a substantial growth in its net losses, which came in at $82.9 million for the fourth quarter, more than double the loss reported in the same period last year.
Akerna Corp. (Nasdaq:KERN), a leading cannabis compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), today announced its addition to the holdings of the world’s largest suite of cannabis exchange traded funds, including the Horizons Marijuana Life Sciences Index ETF ("HMMJ":TSX), and the Horizons US Marijuana Index ETF ("HMUS":NEO). Jason Assad, Akerna’s newly named Director of Investor Relations stated, “We are pleased to have been added to the world’s largest marijuana ETF, in the company of other fellow leaders and innovators in the cannabis industry.
Last week, ending on September 27, the cannabis sector was weighed down by the bears. Sector ETFs broadly ended the week in negative territory.
CALGARY, Aug. 27, 2019 /PRNewswire/ - Sundial Growers Inc. (Nasdaq:SNDL) ("Sundial" or the "Company") is pleased to announce that the Company has been added to the portfolio of the Horizons Marijuana Life Sciences Index ETF (HMMJ.TO) ("HMMJ"). This follows the addition of Sundial to the North American Marijuana Index (the "Index"), the underlying index of HMMJ. "Becoming a member of the Horizons Marijuana Life Sciences Index ETF is an important milestone as a leading, international cannabis company," said Torsten Kuenzlen, Chief Executive Officer.
EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) reports today that it has been added to The Cannabis ETF (NYSE:THCX) (“THCX”) which trades on the New York Stock Exchange. THCX follows the Innovation Labs Cannabis Index, which is a portfolio of 35 holdings expected to benefit from growth of the legal marijuana, CBD and hemp industries. EnWave currently has three royalty-bearing commercial license agreements with Canadian cannabis companies and one royalty-bearing commercial license agreement with a hemp producer in the United States.