|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||1.7800 - 2.0000|
|52 Week Range||1.2600 - 6.4900|
|Beta (5Y Monthly)||0.97|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 07, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.91|
As the cannabis stocks trade at multi-year lows, the market is looking to grasp at any positive news from the upcoming earnings season. Any positive news from Q4 sales or insights on the Cannabis 2.0 rollout in Canada will breath some relief into the market.The North American cannabis industry has plenty of catalysts by midyear 2020, but the related companies were built for robust revenues and much larger markets. The keys to watch in the upcoming earnings reason are the ability of cannabis companies to generate profits from the current market opportunities and not the previous grand expectations.Several big catalysts for cannabis revenue growth in 2020 include CBD in the U.S., Cannabis 2.0 rollout in Canada, additional retail stores in Ontario and the approval of recreational cannabis in U.S. states such as Illinois. Not to mention, the U.S. always has the potential for the federal government to approve cannabis allowing for the ultimate prize for cannabis companies and investors alike.The market projections for the global cannabis market reaching $200 billion in the future should stand. For now, cannabis stocks in Canada and the U.S. have to focus on maintaining liquidity to survive and eventually thrive in the disappointing sales ramp in North America and around the globe. A lot of the Canadian issues should resolve themselves over the next few quarters, but the illicit market remains a formidable competitor and investors shouldn’t assume the profit picture improves dramatically in the near term with so much competition.We’ve delved into three cannabis companies that recently reported quarterly results through November 30 with commentary covering the early part of January. Using TipRanks' Stock Comparison tool, we lined up the three alongside each other to give us an idea of what the Street thinks is in store for the trio in the year ahead.Aphria (APHA)The most influential earnings report of early January was Aphria. The company is one of the larger Canadian cannabis LPs and provides a good indication of market demand into the first couple of weeks of January.The good news is Aphria grew net cannabis revenues by 9% sequentially for the quarter ending November 30. The bad news is that the cannabis company cut FY20 revenue guidance by an astounding $75 million.The revenue cut wasn’t a huge shock to the market considering the Ontario regulators pushed new retail store openings out until April and Aphria has a fiscal year ending in May. This timing issue combined with vape bans in Alberta and Quebec and the possibility of a major revenue ramp up this fiscal year was near impossible.For FQ2, the company reported revenue declined by C$5.5 million to C$120.6 million. The major revenue hit came from a reduction of distribution revenue in Germany.The stock dipped 8% on the news to $5 based on the revenue cut and the hit to EBITDA targets. Aphria now expects FY20 EBTIDA of only C$35 million to C$42 million, down from an estimate of over C$90 million.The company remains one of the rare Canadian companies generating positive EBITDA due to reasonable operating expenses, but the market needs to absorb this revenue cut before the stock can rally this year.All in all, Wall Street is split between the bulls and those who are more cautious on the cannabis player, with TipRanks analytics exhibiting APHA as a Moderate Buy. Out of 4 analysts tracked in the last 3 months, 2 are bullish on Aphria stock while 2 remain sidelined. With a return potential of 23%, the stock's consensus target price stands at $6.36. (See Aphria stock analysis at TipRanks)OrganiGram (OGI)OrganiGram had one of the better reports in the cannabis sector in the last few quarters. The stock has soared over 45% on the news, yet OrganiGram isn’t even back to the highs from November.For the quarter ending in November, the Canadian cannabis company reported net revenues of C$25.2 million. The amount beat estimates, but the company is still below the revenue levels from mid-2019 and the beat occurred due to low calorie wholesale revenues of C$9.5 million.The rally is more of a relief that the numbers didn’t get worse despite investor knowledge that monthly cannabis sales in Canada have slowly improved throughout the year. In addition, OrganiGram generated quarterly EBITDA of C$4.9 million for a 9% EBITDA margin.The company has a fully diluted market cap of $500 million with a FY21 sales target in the $170 million range. The stock trades at a reasonable 3x forward sales, but OrganiGram only has a minimal C$34 million cash balance and already has C$85 million in debt.The company forecasts having enough capital to fund operations and capital expenditure plans, but those plans include rolling out Cannabis 2.0 products in 2020 and further facilities. Investors should expect OrganiGram to take advantage of this stock rally to $3 to utilize the at-the-market equity program to raise the C$32 million available under the program after raising C$23 million subsequent to quarter end.Where does the Street side on this cannabis producer? It appears mostly bullish. Out of 10 analysts polled by TipRanks in the last 3 months, 6 are bullish on OrganiGram stock while 3 remain sidelined and one is bearish. With a return potential of nearly 43%, the stock’s consensus target price stands at $4.73. (See OrganiGram stock analysis at TipRanks)KushCo (KSHB)KushCo provided an alternative view to the cannabis sector as the company is focused on providing products and services to the U.S. cannabis market. The company took a revenue hit in the last quarter from the health concerns in the U.S. vape market.Quarterly revenues were up 38% from last year to $35 million, but the numbers were down from the $47 million reported in the prior quarter. KushCo missed analyst estimates by a wide margin as customers reduced vape inventory levels in fears of bans by state regulators.The company still guided to full year revenues of $240 million in expectations that customer orders catch up over the remaining three quarters of the year. KushCo laid off 53 people in order to improve the profitability picture after reporting a $12.5 million loss in the quarter, but the employee reduction only saves ~$4.3 million in annual savings.The stock has a minimal market valuation of $175 million, but the tough market and limited margins should leave investors on the sidelines here. KushCo continues to lose too much money and only ended the November quarter with a cash balance below $15 million.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
After the illnesses and deaths rose through the summer and fall, the CDC said that cannabis vaping products bought off the illicit market were "linked to most of the cases ..."
The the ongoing public health issues surrounding vaporized cannabis and tobacco products hurt KushCo Holdings Inc. sales, the company said late Tuesday when it reported fiscal-first quarter earnings.
KUSHCO HOLDINGS, INC. (KSHB) delivered earnings and revenue surprises of 0.00% and -20.04%, respectively, for the quarter ended November 2019. Do the numbers hold clues to what lies ahead for the stock?
Net Revenue Increased 38% Year-Over-Year to $35.0 Million with Gross Margin Up for the Fourth Consecutive Quarter CYPRESS, CA / ACCESSWIRE / January 8, 2020 / KushCo Holdings, Inc. (OTCQX: KSHB) ("KushCo" ...
Virtual Investor Conferences and KCSA Strategic Communications today announced the agenda for the upcoming Cannabis Industry Virtual lnvestor Conference. Individual investors, institutional investors, advisors and analysts are invited to attend. The program opens at 10:45 AM ET, with the first live webcast at 11:00 AM ET, on Thursday, January 9th.
KUSHCO HOLDINGS, INC. (KSHB) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
We all know that the overall cannabis sector took a big hit in 2019, and it probably won't start to sustainably recover until after the second calendar quarter of 2020.While most of the big players with hands on cannabis have suffered enormous downward pressure on their share prices, some pick and shovel cannabis plays, while also participating in the downturn as measured by their share prices, are also positioned to take advantage of the recovery before their counterparts.In this article we'll look at Grow Generation, KushCo Holdings, and Innovative Industrial Properties, and what the future holds for them. TipRanks, a company that measures and tracks the performance of analysts, revealed that Wall Street sees each of these names as solid Buys. Here’s what we uncovered.Grow Generation (GRWG)Grow Generation primarily offers specialty hydroponic supplies to the cannabis market. At the time of this writing the company had 25 store locations in eight states. In December the company uplisted to the Nasdaq.In the third quarter it generated revenue of $21.8 million, up 159 percent year-over-year, and up 12 percent sequentially. Operating profits came in at $1.1 million. It has had three quarters in a row of positive EBITDA. The company has guided for 2019 adjusted EPS to be in a range of $0.14-$0.18.A huge positive for Grow Generation is its hefty 48 percent of organic growth. That points to the markets it competes in having significant demand. It has also benefited from acquisitions and new stores, especially in the Oklahoma market.The company obviously won't be able to continue 48 percent organic growth in its stores that have been operational for some time, but it still has a lot of organic growth left in it from new stores.What's important for Grow Generation Corp. is it doesn't matter who wins the battle for market share for those companies touching the cannabis plant; they'll need what the company supplies no matter who it is.The major question for Grow Generation over the long term is how it'll do as competition in its segment heats up. In the near term the company should continue to do very well as market conditions improve and demand for cannabis continues to soar.The company's major risk appears to be the availability of capital for its customers. If they struggle to obtain funding, they'll have less to spend on supplies they need. This could temporarily slow down growth for Grow Generation. Ladenburg analyst Glenn Mattson recently noted, "As GRWG gains in size it is builidng the infrastruture to support it. GRWG is in the process of implementing an ERP system, which appears to be going well, as gains from efficiencies were listed as a factor in the strong gross margins in the quarter. The company also hired a new COO, Tony Sullivan, who has experience with large retail chains having been Senior VP at Dollar Express (a Family Dollar carve out with 330 stores), as well as 20+ years at Foot Locker serving as Senior VP of store operations in charge of over 2100 stores. This is in addition to bringing in Bob Nardelli, former CEO of Home Depot, to serve as a strategic advisor last quarter. With seasoned leadership our confidence is growing that the company can manage through this rapid growth period."According to Mattson, GRWG is worth over 70% than it’s currently selling for, and should hit $7 within the next 12 months. (To watch Mattson's track record, click here)All in all, Wall Street likes the risk/reward factor at play here, as TipRanks showcases a "strong buy" consensus rooting for GRWG's success. (See Grow Generation stock analysis at TipRanks)KushCo Holdings (KSHB)KushCo Holdings is a provider of products and services to the cannabis and CBD industries. In its latest move it entered into distribution agreements with four CBD brands in the U.S. via its partnership with C.A. Fortune.Its latest quarter it generated revenue of $46.97 million, up 135.3 percent year-over-year, beating estimates by $1.41 million. Non-GAAP EPS in the fourth quarter was -$0.08, beating estimates by $0.04, while GAAP EPS was $11.5 million, or-$0.13, missing by $0.01. The company guided for 2020 revenue to reach over $230 million, possibly climbing to as high as $250 million.One of the major concerns over KushCo has been its cash flow problems, and even though its margins have improved recently, it will struggle in that regard for some time.Of the three companies covered in this article, I'm least optimistic with KushCo in the near term. Part of the reason beyond cash flow is it has at times struggled on execution, as in the case of supplying packaging to Canadian companies in the past, where it came up short.In the long term, it's the type of company that should do very well in an industry that's going to grow exponentially over the next several years.Jefferies analyst Owen Bennett says that KushCo's "exposure to attractive growing segments in the cannabis space" sees him model "3 year avg. sales growth of 44%, with GM/EBITDA margins growing to 30%/8% respectively from 20%/-11% last quarter. Further accretive M&A also a possibility. In the context of NA peers (basket of 37) its sales profile also impresses, cons. CY21 sales expected at $350mn (Jef $370mn) vs. the peer median avg. of $330mn."Bennett reiterated a Buy rating on KushCo stock alongside a price target of $3.50, which implies an upside of 110% from current levels. (To watch Bennett's track record, click here)Like Bennett, the rest of the Street has high hopes for KushCo. With 4 Buy ratings received in the last three months, the message is clear: the cannabis stock is a "Strong Buy." At an average price target of $4.33, the potential twelve month gain lands at 159%. (See KushCo price targets and analyst ratings on TipRanks)Innovative Industrial Properties (IIPR)Innovative Industrial Properties offers financing in the medical-use segment of the cannabis industry by providing sale and leaseback options, as well as capital.With pot still illegal in the U.S. at the federal level, banks and other financial institutions have stayed away from financing the sector because of legal issues.As of its last earnings report it had raised $634 million for its customers, with a reported yield of 13.6 percent.While it has a great business model at this time, there are several major risks to take into account if considering taking a position in the company.The first is potential losses of companies if they are put into receivership. One of its clients has already been put into receivership. That could become a problem if that were to escalate if the cannabis market takes longer to recover than anticipated.Apparently, to combat that the company has decided to focus on stronger clients, the problem there it has had to offer lower rates to win their business; that will put some pressure on its returns.Finally, there has been a push to deal with financing issues in the U.S. for the cannabis sector by trying to push through the SAFE Banking Act. If it does pass, it would provide hefty competition for Innovative Industrial Properties that would be hard to overcome. That would probably relegate it to providing options to only high risk companies.The good news on that front is the SAFE Banking Act has run into some roadblocks that make it unlikely to pass any time soon, if ever.IIPR has a small, but vocal camp of bullish analysts with positive expectations for its stock. Out of the 3 analysts polled by TipRanks, 2 say "buy," while 1 suggests "hold." With a return potential of 83%, the stock's 12-month consensus target price stands at $140.50. (See IIPR stock analysis at TipRanks)ConclusionPick and shovel play winners in the cannabis sector are going to do very well in the years ahead. The cannabis sector is going enjoy significant growth, no matter who the winners will end up being concerning companies that directly touch the plant.There will continue to be increased competition in the ancillary segment of the cannabis market, but these companies have taken a leadership role in their respective markets, and if they can continue to retain and grow market share, they should do very well over the long term.For all of the companies talked about in this article, it's their markets to lose. If they can execute well, they will provide solid returns for investors in the years ahead.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
CYPRESS, CA / ACCESSWIRE / January 7, 2020 / KushCo Holdings, Inc. (OTCQX:KSHB) (''KushCo'' or the ''Company''), the premier producer of ancillary products and services to the legal cannabis and CBD industries, ...
Penny stocks offer a conundrum for the investor; The low valuation scares the cautiously inclined away due to the cheap nature of the stock. On the other hand, they represent incredible opportunity for the risk tolerant amongst us. Invariably, this almost "catch 22" like situation begs the question: why are these companies priced so low? Is it due to bad fundamentals, indicating stocks that aren’t worth pursuing? Or is it that the market is missing something and there is opportunity to pick up a winner at a ridiculously low price?A bit of both, possibly. There is no doubt, though, that while a penny stock might represent the road to majestic returns, it is also inherently riskier, increasing the possibility of losing your hard-earned cash.So, how to find which are the penny stocks to invest in, then? TipRanks’ Stock Screener comes in handy here. The tool identified for us three micro-cap stocks that have taken a beating in the past year, but which the people in the know think are ready for some upside action in 2020. Additionally, all three currently have a Strong Buy consensus rating. Let’s check them out.KushCo Holdings (KSHB)KushCo sells ancillary goods & services to the global cannabis industry, mostly vaping related products. The cannabis industry as a whole has had a torrid 2019; The industry has struggled on various fronts, including supply problems and regulatory issues.The company, in this instance, is even further exposed, as vaping related “mystery lung” illnesses and even deaths have surfaced this year, raising the alarm bells on the safety of vaping products. Since then, the reason for the illnesses has been identified as vitamin E acetate found in less rigorously tested vaping products which are sold on the black market.While the industry is not completely out of the woods just yet, eventually, in a market still finding its feet, the companies with strong fundamentals are likely to kick off the dust and rise again. Jefferies’ Owen Bennett believes KSHB is one such company. The analyst said, “Despite an attractive sales profile vs NA cannabis peers, operating in a federally legal way in the US (can be national/list on a major exchange), and with strong barriers to entry, it's valuation is one of the cheapest. With current multiple headwinds set to unwind (particularly on vapour), and additional positive catalysts likely, we see significant re-rating potential the next 12-24 months.”To this end, Bennett rates KushCo shares a Buy along with a $3 price target, which represents over 130% upside potential. (To watch Bennett’s track record, click here)Does the Street reckon the cannabis product manufacturer will blow the smoke away to rise again? Yes, it does. A Strong Buy analyst consensus rating breaks down into 4 Buy ratings with no Holds or Sells. The average price target of $4.33, even outstrips Bennet’s bullish thesis, and indicates high upside potential of 203%. (See KushCo price targets and analyst ratings on TipRanks)Sesen Bio (SESN)Sesen Bio shareholders have had a rough 2019, as Mr. Market chopped off nearly 30% of the company’s stock price. However, 5-star Canaccord analyst John Newman thinks this new, lower stock price could offer new investors an opportunity to get into SESN on the cheap. The analyst reiterated a Buy rating on Sesen, alongside a price target of $5, implying potential upside of a blockbusting 405%. (To watch Newman’s track record, click here)Sesen’s modus operandi is the fight against cancer with the development of fusion protein medicines. The biotech’s lead candidate is Vicinium, a treatment for bladder cancer. The drug is currently in a Phase 3 trial, and Sesen recently initiated its Biologics License Application (BLA) for Vicinium with the FDA. Once the company receives acknowledgement of the BLA, it will begin planning ahead for its ODAC (Oncology Drugs Advisory Committee), currently expected to take place in 2020.With the confirmatory study for Vicinium in its sight, Newman believes there is “opportunity for label expansion.” The top analyst said, “We believe Sesen's confirmatory trial could show superiority vs control in NMIBC (non-muscle invasive bladder cancer), boosting usage among urologists and strengthening reimbursement from insurers. In addition, expanding to inadequate BCG dosed patients should broaden the market opportunity from BCG-intolerant patients, a potential positive… We continue to expect the ODAC for Vicinium to be positive, especially in light of a continued BCG (Bacilus Calmette Guérin) shortage, and believe the panel will vote in favor of Vicinium's favorable benefit/risk profile.”Two other analysts have chipped in with a view on the biotech’s prospects over the last 3 months. All are vocal in their support and rate the stock a Buy. Therefore, Sesen has a Strong Buy consensus rating. The average price target is $3.42 and indicates possible huge gains of 227% in the coming year. (See Sesen stock-price forecast on TipRanks)Tyme Technologies (TYME)Time hasn’t been kind to biotech Tyme Technologies; 2019 has continued a multi-year trend and has been a bit of a letdown, to say the least. Since the turn of the year this beaten down stock has shed more than 70% of its value. That, according to some optimistic analysts, could be about to change.Tyme is a fellow company focused on cancer cures. Its lead candidate is SM-88, currently in Phase 2 development for pancreatic and prostate cancer. Earlier this year, Tyme presented encouraging data from the trial at ESMO (european society for medical oncology) and Evercore’s Joshua Schimmer has been assessing the results.The 5-star analyst believes that “significant unmet need remains in pancreatic cancer.” He said, “Aggregate 5-year survival rate for metastatic pancreatic cancer is only 9%, and recent oncology advancements have failed to be effective in this tumor. We estimated a market size for 3L alone of >$500M, and penetration into earlier lines of therapy would broaden peak sales… While obviously not without risk, especially in pancreatic cancer, SM-88 has shown broad anti-tumor activity in early clinical studies, physician feedback has been strong, and upside should the product succeed is substantial.”Accordingly, Schimmer reiterated an Outperform rating on Tyme, alongside a price target of $7. Should the target be met, investors could be lining pockets with an incredible 566% gain over the next 12 months. (To watch Schimmer’s track record, click here)The Street is rather quiet right now, in regard to Tyme’s prospects. Only two other analysts have recently thrown the hat in with a view on the biotech, both giving it the thumbs up. Tyme’s Strong Buy consensus rating comes with an average price target of $8.50. which implies incredible upside of 721%. (See Tyme price targets and analyst ratings on TipRanks)
CYPRESS, CA / ACCESSWIRE / December 27, 2019 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier producer of ancillary products and services to the legal cannabis and CBD industries, is scheduled to host a conference call and webcast on Wednesday, January 8, 2020 at 4:30 p.m. Eastern time to discuss its financial and operational results for its first fiscal quarter ended November 30, 2019. The Company's financial results will be available on its investor relations website at ir.kushco.com and announced in a press release after the market close on the same day. KushCo management will host the conference call and presentation followed by a question and answer session.
After a rough stretch for the sector, marijuana stock bargains abound; here are 8 that stand out, asserts Timothy Lutts, a leading specialist in the cannabis sector and editor of the Cabot Marijuana Investor.
CYPRESS, CA / ACCESSWIRE / December 11, 2019 / KushCo Holdings, Inc. (OTCQX:KSHB) ("KushCo" or the "Company"), the premier producer of ancillary products and services to the legal cannabis ...
Stocks like Greenlane Holdings and Slang Worldwide could rally if investors conclude that vape sales are near a trough, says Canaccord Genuity.
This new position was created to build and scale a "best place to work" culture and to enhance the Company's organizational capability and effectiveness as KushCo's business, workforce, and culture continue to grow and evolve.
KushCo Holdings, Inc. (OTC: KSHB) reported fourth-quarter net revenue of $47 million Thursday, up 135% from the same period in 2018. Its net loss on a GAAP basis was around $11.5 million, up from a net loss of $3.2 million in the corresponding period of the prior year. KushCo disclosed a basic and diluted loss per share of 13 cents versus a loss per share of 4 cents in the prior year period.
Cannabis packing and vape company KushCo Holdings Inc. reported Thursday 135% gain in revenue and a widening net loss for the company's fiscal fourth quarter. KushCo does not trade after hours. The company reported a fiscal fourth-quarter loss of $11.5 million, or 13 cents a share, versus $3.2 million, or 4 cents a share, in the year-ago period. Revenue rose to $47 million from $20 million in the year-ago period. Analysts surveyed by FactSet had estimated revenue of $45.8 million. For the fiscal first quarter, analysts model $42.4 million. KushCo said it expects fiscal 2020 revenue of $230 million to $250 million, $25 million of which will result from the company's recently announced hemp trading business. KushCo stock has fallen 70% this year, as the S&P 500 index has gained 23%. The ETFMG Alternative Harvest ETF has fallen 25%.
Net Revenue For Fiscal 2019 Increased 186% Year-Over-Year to $149.0 Million, Setting a New Company Record for Annual Revenue Company Issues Fiscal 2020 Net Revenue Guidance of Between $230 Million and ...
CYPRESS, CA / ACCESSWIRE / November 6, 2019 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier producer of ancillary products and services to the legal cannabis and CBD industries, has announced today that it has expanded its CBD footprint with the launch of a new hemp trading business focused on facilitating legally compliant hemp transactions for in-network, pre-qualified farmers and a pre-qualified buyer network. The Company has also entered into a partnership with a leader in U.S. industrial hemp farming, who will serve as a supplier for verified buyers.