|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.32 - 5.57|
|52 Week Range||3.76 - 7.20|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
CGC, HEXO, CTST Moving Higher Today(Continued from Prior Part)Tilray mutedOn April 17, Tilray (TLRY) remained muted, with the stock almost flat as of noon. The stock remained depressed as the overall cannabis industry has slumped in April.
Jason Vegotsky went from co-founding a beef jerky company to playing a leadership role in KushCo Holdings, Inc. (OTC: KSHB), a supplier of "something to just about everyone" in the cannabis space, he said Wednesday in a keynote address at the Benzinga Cannabis Conference in Toronto. Vegotsky, KushCo's chief revenue officer, told a packed crowd he recognized the tremendous white space opportunity in the cannabis industry and has helped grow his company to generate $35 million in revenue. The entrepreneurial spirit alone isn't enough, as a company needs C-level executives with tremendous experience in their respective fields, the CRO said. For example, KushCo's chief operating officer helped revamp Nike Inc (NYSE: NKE)'s supply chain, and the company's CFO boasts experience in strategic financing transactions and M&A activities.
Cannabis Sector Was Disappointing Last WeekCannabis sector The week ending April 12 was disappointing for the cannabis sector. Most of the stocks ended the week on a negative note. The sector ETFs were broadly lower last week. For example, the
KushCo Holdings (KSHB) stock climbed nearly 4% in Friday's trading session, after the cannabis packaging solutions provider delivered the goods with its fiscal second-quarter results.The most exciting figure to come out of KushCo's quarterly report was its top-line results. For the quarter, sales were up by 240% from the year-ago quarter to $35.2 million, representing the highest quarterly revenue in history, as well as 39% sequential growth from the fiscal first-quarter. To put this in perspective, the Street has anticipated 2Q revenue of $25.5 million.But there was one figure that stood out as worrisome for investors -- gross margins. While revenues were well above expectations, gross margins (13%) remained challenged relative to year-ago levels (28%).Seaport analyst Brett Hundley believes there's nothing to be concerned about as he reiterates a Buy rating on KSHB with a $10 price target, which implies nearly 75% upside from current levels. (To watch Hundley's track record, click here)Hundley commented, "The pursuit of cash flow and margin gains is critical, but the real opportunity for this company and its shareholders is within the revenue line; make no mistake about it, this is a volume play, in our view. So long as KushCo maintains its market leading position, we expect its top line to drive considerable value for shareholders, ahead. We believe that the company is now starting to see the initial benefits of scale, and we are excited about the forward opportunity as additional markets across North America turn to value-added recreational products, which require more packaging and innovative solutions. Management is upping its FY19 sales expectations to $140MM-$150MM; we are bringing our estimate up to the top end of this view, while also increasing forward revenue estimates for FY20."Northland analyst Paul Penney added, "KSHB reported yet another quarter of healthy SKU / customer cross sell metrics, which tangibly reinforces our confidence in the company’s ability to build upon its existing / core customer base. More specifically, we were extremely impressed with the company’s major customer growth progress, with 12 (up from 7 last quarter) and 20 (up from 12 last quarter) customers producing >$1M and $500K+ of annual / run-rate revenues. This continued growth is yet another tangible validation point in KSHB’s ability to drive true / incremental value within its highly reputable and growing customer base."Where are gross margins heading? "We believe these near-term margin issues remain mostly inconsequential as the company’s primary near-term focus is making huge market share gains, which it has continued to successfully achieve on a quarterly basis. Looking ahead and over a longer term basis however, we believe KSHB will be able to add ~800-1K basis points of incremental GM’s by YE 2020. We believe the underlying drivers of this improved profitability profile will be multi-fold, ranging from discontinued free shipping, contributions from the Koleto division (higher margin segment) and the anticipated weakening effects of tariffs," Penney opined.Bottom line -- Penney reiterates an Outperform rating on KSHB stock with a 12-month price target of $8.75.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. More recent articles from Smarter Analyst: * Microsoft (MSFT) Stock's Big Rally Should Continue * Oppenheimer Still Sees 40% Upside for Tesla (TSLA) Stock * How Aurora Cannabis (ACB) Stock Gets to $11 * Canopy Growth (CGC): Piper Jaffray Wishes Upon a Marijuana Star (But Will Its Dreams Come True?)
CGC, CRON, and GTBIF Reverse Their Falling Streaks on April 12(Continued from Prior Part)Breaking the losing streak Cannabis stocks have recently experienced weakness amid concerns surrounding a global slowdown and companies missing their earnings
Benzinga is all geared up to host its third rendition of the Cannabis Capital Conference , full of big-time investors, top industry executives and reporters from around the world. If you haven’t already ...
The cannabis packaging company reported a loss of $8.9 million, or 10 cents a share, compared with a year-earlier loss of $7.6 million, or 12 cents. "This strong performance was attributable to our growing customer base and increased sales across our key markets as we successfully leveraged our diverse business units to cross sell product classes and gain market share," said CEO Nick Kovacevich in a statement. KushCo also raised its full-year revenue guidance to $140 million to $150 million from previous guidance of $110 million to $120 million.
Cannabis packaging company KushCo Holdings Inc. reported widening fiscal second-quarter losses and revenue that more than tripled.
TLRY, CGC, CRON, and CTST Continue to Slide on April 11(Continued from Prior Part)Cannabis stocks fall Cannabis stocks continued to fall on April 11, with major companies Canopy Growth (WEED), Tilray (TLRY), and Aurora Cannabis (ACB) among the top
What's Attorney General Barr's Take on Marijuana Legalization?(Continued from Prior Part)US marijuana lawsThe US is one of the most anticipated markets for companies such as Canopy Growth (WEED), Aurora Cannabis (ACB), CannTrust (CTST), KushCo
The company plans to restate its financials, calling its financial controls into question, but there may be a silver lining.
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.
Do Cannabis Stocks Look Cheap at These Valuations?(Continued from Prior Part)Comparing valuation multiples As of April 9, the median forward EV-to-sales multiple of our select group of 12 cannabis players was about 6.2x. The popular cannabis stocks
Do Cannabis Stocks Look Cheap at These Valuations?(Continued from Prior Part)Trading compsThe cannabis sector’s median forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization) multiple was 23.6x,
KushCo Holdings Inc. said late Tuesday that it would have to restate its annual financial statements for fiscal 2018 and 2017 due to an accounting error. KushCo said it expects net losses for fiscal 2018 to more than double to $24.3 million from $10.2 million. It also expects fiscal 2017 net income to increase to $1.7 million from net income of $100,000. KushCo, which sells cannabis packaging, among other products and services related to pot, said that it recorded milestone payouts related to its acquisition of CMP Wellness and Hybrid Creative as equity when they should have been recorded as liabilities. Such liabilities would need to be adjusted for their fair value in the company's consolidated statements of operations. KushCo said it plans to file amended reports "as soon as practicable." KushCo said separately that as a result of the re-statements it would not be able to file a quarterly form 10-Q for the fiscal second quarter 2019 within the required timeline by the Securities and Exchange Commission. KushCo is traded over the counter and does not do so in the extended session. Shares dropped 3.8% in the regular session Tuesday, as the ETFMG Alternative Harvest ETF dropped 1.7%.
According to Arcview Market Research and BDS Analytics, global consumer marijuana outlays are estimated to climb 38% to $16.9 billion this year, up from a projected $12.2 billion last year, $9.5 billion in 2017, and $6.9 billion in 2016.
KushCo' (KSHB) second-quarter fiscal 2019 earnings are likely to gain from solid product demand, international expansion and improving operational excellence. Supply-chain capacity issues are concerning.
US Cannabis Update: Gardner and Warren Reintroduce STATES Act(Continued from Prior Part)Speculating on the possibility The reintroduction of the STATES Act has revitalized hopes for US states, its territories, and Washington DC to have the right to
Cannabis-focused Merida Capital Partners announced a number of developments, including the launch of its third fund, opening a new office in Canada and expanding its team with three new hires. Merida's third $200 million fund will focus on concentrated, high conviction investments in leading companies in the cannabis industry. In addition, as part of its international expansion, Merida has opened an office in Toronto that will work with its flagship office in New York and satellite offices in San Francisco and Bethesda, Maryland.
Kraig Fox (left), to Become President and CEO and Adam Levin (right), to become Executive Chairman By John Jannarone The parent of leading cannabis publication High Times magazine has appointed media industry veteran Kraig Fox as President and Chief Executive Officer as it closes in on the last several weeks of its IPO, which is […]