|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.7000 - 0.7910|
|52 Week Range||0.3000 - 5.1900|
|Beta (5Y Monthly)||1.91|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 08, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2.43|
This week started with some good news out of Amazon.com, Inc. (NASDAQ: AMZN), which included a cannabis company in its AWS Data Exchange, a marketplace for data run by Amazon Web Services, for the first time ever. The company, Enlighten Dispensary Solutions, offers marketing solutions to marijuana businesses.The U.S. Food and Drug Administration outlined its approach to studying the current CBD marketplace. The federal agency penned a report titled, "Sampling Study of the Current Cannabidiol Marketplace to Determine the Extent That Products are Mislabeled or Adulterated." The document was sent to the U.S. House Committee on Appropriations and the U.S. Senate Committee on Appropriations on Thursday.The report is the FDA's answer to a "Joint Explanatory Statement" included in the "Further Consolidated Appropriations Act, 2020" which stipulated mandatory testing requirements."The FDA is further directed to perform a sampling study of the current CBD marketplace to determine the extent to which products are mislabeled or adulterated and report to the Committees within 180 days of enactment of this Act," the paper published on Dec. 20, 2019 read.The new report includes a plan for a long-term sampling study, a summary of sample testing from past years, a description of the methodology, and preliminary results from a smaller 2020 near-term sampling study.Read our full take on what this means here.Financial technology company AeroPay introduced a new suite of digital payment solutions for cannabis businesses. The tech enables digital payments by utilizing so-called "smart bank transfers" and allows business-to-business (B2B) and customers-to-business (C2B) transfers.Psychedelics company Synthesis Institute raised $2.75 million in a seed funding round led by Novamind Ventures.CannaGlobal, Sansero Life Sciences, and Rise Wellness announced a merger to create a CannaGlobal Wellness, a new company focused on psilocybin wellness and research.Psychedelic and nutraceutical brand Cybin Corp. and drug delivery company IntelGenx partnered to develop oral dissolving film for psilocybin consumption.Village Farms International Inc.(NASDAQ: VFF) (TSX: VFF) purchased a stake in DutchCanGrow Inc. (DCG). The Vancouver-based company has become one of six equal shareholders in The Netherlands-based cannabis company.Cookies, the cannabis brand launched by rap artist Berner, teamed up with music legend Rick Ross to introduce the strain Collins Ave.Cannabis micropropagation company Conception Nurseries closed a $12 million Series A funding round led by Viridian Capital Advisors.KushCo Holdings Inc.(OTC: KSHB) reported its net revenue continued to decline in the third quarter to $22.3 million. Following a year-over-year revenue drop of 14%, which the company recorded in the previous quarter, its third-quarter revenue was down by 46% compared to the same period last year.KushCo said the revenue dip could be attributed to the company's cost-cutting initiatives, which are a part of its 2020 plan, as well as a decline in sales of vape and natural products.Nick Kovacevich, KushCo's co-founder and CEO, said the third quarter of this fiscal year "was a successful transition quarter for KushCo, demonstrating the execution of our strategy to accelerate our path to positive adjusted EBITDA."Commenting on the results, Debra Borchardt, Editor-in-Chief of Green Market Report, told Benzinga, "KushCo took a bold move in deciding to cut ties with small customers who were less financially stable. While it hurt in the short run as revenues fell 46%, longer-term it was probably best to rip off the Band-Aid. Chasing down those small customers to pay their bills was probably no fun and a waste of resources. It was a brave move."More on this week's results at Benzinga Cannabis' Earnings Center.Stocks were mostly in the green. Over the five trading days of the week: * ETFMG Alternative Harvest ETF (NYSE: MJ): gained 1.3%. * AdvisorShares Pure Cannabis ETF (NYSE: YOLO): rose 2.8%. * Cannabis ETF (NYSE: THCX): rose 2.5%. * Amplify Seymour Cannabis ETF (NYSE: CNBS): ended the week flat. * SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 1.7%.Benzinga Cannabis' content is now available in Spanish on El Planteo.Halo Labs Inc. (NEO: HALO) (OTC: AGEEF) finalized two acquisitions in California. The Toronto-based company purchased a retail management company, Crimson & Black, and obtained a 66.67% interest in a North Hollywood cannabis dispensary applicant for a total of $11.5 million.Bushel44, a technology company based out of Portland, Oregon, launched a business management solution created exclusively for the wholesale hemp industry. The Bushel44 platform offers hemp farmers, processors, product manufacturers and distributors with inventory and order management, task management, sales and marketing tools, and much more."After the passing of the Farm Bill in 2018, we felt it was the opportune moment to develop a comprehensive platform specifically for the wholesale hemp supply chain," John Manlove, CEO and founder of Bushel44, told Benzinga. "With so many 'list and hope' marketplaces out there, we knew that the industry desired a more robust solution that not only flattens the supply chain by connecting buyers and sellers directly, but streamlines processes and creates efficiency throughout an entire organization." Exclusive Brands announced a partnership with Platinum and Church Cannabis Co. as it expands its portfolio of brands to better serve Michigan's new recreational market. Exclusive will be the only distributor of Platinum Vapes and Church products for the state of Michigan."We're thrilled to be welcoming Church and Platinum to the growing Exclusive family. Michigan's recreational market is booming and we're excited to be expanding our portfolio of brand partners and product variety with companies that share our values of making clean and safe cannabis accessible to all," a company spokesperson told Benzinga.HempMeds, a subsidiary of Medical Marijuana, Inc (OTC: MJNA), announced that its topical and beauty CBD products are now available for sale at Gelson's Markets throughout Southern California. These products include a topical salve, shampoo, conditioner, body oil, body lotion, body wash, and sunscreen. "Less than a decade ago many mainstream retailers in the U.S. wouldn't even entertain the idea of carrying CBD products in their stores but as we've established safe testing practices and research efforts it has become much more accepted by grocers and other retailers throughout the country to begin with carrying these products," said Raul Elizalde, co-CEO of HempMeds. "Selling our products in Gelson's felt natural as we share a similar vision of providing consumers with the best wellness products on the market."Copperstate Farms appointed Aaron Chamberlin as CEO of its Good Things Coming edibles brand.The U.S Securities and Exchange Commission told High Times it must stop accepting investments in its initial public offering. The company, currently under the helm of CEO Peter Horvath, missed a June 12 deadline to report its audited results.According to securities attorneys Stephen Weiss and Megan Penick of Los Angeles law firm Michelman & Robinson LLP,High Times must make all reports for investors publicly available in order to accept traditional sales. The company chose to extend the date of its IPO from July 30, 2020 to Sept. 30, 2020.Colombian operator Clever Leaves became the first cannabis company in Latin America to get a EU GMP certification for its facility.Top Stories Of The Week Check out the top stories on Benzinga Cannabis this week: * What A Biden Presidency Would Mean For Cannabis Stocks * Music Publicist And Cannabis Advocate Taps 'Tiger King' Producer To Tell Harrowing Tale * Israel-based Together Pharma Snags Permit To Import Cannabis From Uganda * Portland Civic Life Leader To Revamp Cannabis Social Equity, Says Change Is 'Long Overdue' * A Snapshot Of America's Medical Marijuana Markets: Vermont * How Windy City Cannabis Is Breathing New Life Into Chicago's Weed Street * 'Psyched': Military Invests M In Psychedelic Research, Atai Launches DTx Platform, Psilocybin Decriminalization Rejected In IowaTop Spanish stories: * Las Nuevas Estrategias de la Industria del Cannabis para Recaudar Capital * Todo sobre el Proceso de Cultivo de Marihuana * Como Invertir en Energias Renovables: un ETF Ofrece la Respuesta * Entrevista con el Portavoz del Observatorio Europeo del Consumo y Cultivo de Cannabis * Entrevistamos a MKS: el Rapero Mas Cannabico de la Argentina * Despidos Masivos en la Empresa de Cannabis Organigram * Yeezus, el Resurrector: 'las Cosas No Son para lo que Vinieron al Mundo' * Actor de 'The Big Bang Theory' Presenta su Original Cenicero de MarihuanaCheck out these and many other cannabis stories on Benzinga.com/cannabisLead image by Ilona Szentivanyi. Copyright: Benzinga.See more from Benzinga * The Week In Cannabis: Stocks Underperform Broader Market, Bad News For Zynerba, Organigram And More * ESPAÑOL • Cannabis y Noticias de la Semana: Acciones en Rojo, Canopy Growth, Acreage Holdings, Aurora Cannabis, y Más * The Week In Cannabis: Stocks Tumble As Canopy Dominates The News(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Successful Execution of Cost-Cutting Initiatives Resulted in a 50%+ Sequential Reduction in Selling, General, and Administrative (SG&A) Expenses Improving Operating Leverage and Reduced Cash Burn Drive ...
CYPRESS, CA / ACCESSWIRE / July 1, 2020 / KushCo Holdings, Inc. (OTCQX:KSHB) (''KushCo'' or the ''Company''), the premier provider of ancillary products and services to the legal cannabis and CBD industries, ...
CYPRESS, CA / ACCESSWIRE / June 12, 2020 / KushCo Holdings, Inc. (KSHB) (‘'KushCo'' or the ‘'Company''), the premier provider of ancillary products and services to the legal cannabis and CBD industries, has announced today that it is awarding paid time off for all of its employees on Tuesday, November 3, 2020 ("Election Day") in an effort to encourage more voter participation and to empower its employees to create real positive change in their communities, industry, and personal lives by casting their votes through the ballot system. In the midst of the nationwide protests surrounding the tragic death of George Floyd-and the widespread attention it has raised around the U.S.'s long history of battling deep-rooted racial profiling, discrimination, and social injustice, particularly in the cannabis industry-the Company urges all U.S. companies to follow suit and remove the barriers for employees to cast their votes on Election Day.
CYPRESS, CA / ACCESSWIRE / June 10, 2020 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier provider of ancillary products and services to the legal cannabis and CBD industries, announced today that it has entered into a definitive agreement with the holder of its senior unsecured note (the "Note") to convert 18.5%, or $5 million, of the total principal amount of $27 million due April 2021 under the Note at a 15% discount to the closing price of KushCo's common stock as of June 9, 2020, which is equivalent to a conversion price of approximately $0.94 per share without any cash consideration. Effectively, the Company is issuing approximately 5.3 million shares of common stock (or roughly 4% of its approximately 120 million total shares outstanding) to reduce 18.5% of its total outstanding debt.
CYPRESS, CA / ACCESSWIRE / June 5, 2020 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier provider of ancillary products and services to the legal cannabis and CBD industries, has announced today that Jason Vegotsky has advised the Company of his decision to resign from the position of President and Chief Revenue Officer, effective July 1, 2020, to pursue other ventures in the cannabis industry. The Company and Vegotsky have agreed to mutually and amicably part ways to allow Vegotsky to better apply his skills, network, and entrepreneurial drive toward scaling start-up organizations in the cannabis and other CPG-related industries.
Don't miss this opportunity to connect with THE cannabis movers and shakers from across the globe during Benzinga's first Virtual Cannabis Capital Conference on June 1. Among the attendees is KushCo Holdings. Founded in 2010, KushCo Holdings Inc (OTCQX: KSHB) provides ancillary products and services to the legal cannabis and CBD industries. The company provides a host of products such as packaging, papers & supplies, vape hardware, and solvents, as well as services such as hemp trading solutions and retail services. KushCo's platform is working to provide specialized solutions to business leaders in the space, acting as a backbone for success. CEO & Co-Founder of KushCo Holdings, Nick Kovacevich, will be speaking at Benzinga's upcoming Virtual Cannabis Capital Conference. Kovacevich will be providing an overview of the business, along with current updates and developments to their new strategic plan. This plan involves aligning the company with healthier MSOs, LPs, and leading brands on a deeper level. It also includes cutting the company's costs significantly and accelerating its path to positive adjusted EBITDA. "We look forward to maintaining the strong relationships and dialogue with our shareholders and the broader investor community, as well as finding new investors, especially at a time where many conferences and non-deal roadshows have been impacted due to COVID-19." Kovacevich will also be doing one-on-one meetings along with Director of Investor Relations, Najim Mostamand, and CFO, Stephen Christoffersen. To learn more about KushCo Holdings, you can sign up for the Virtual Cannabis Capital Conference by clicking here.Photo by timJ on UnsplashSee more from Benzinga * Creating a Professional-Grade Cannabis Supply Chain Platform With NewTropic * Redbud Roots Is Proving To Be A Major Player In The Michigan Cannabis Market * Successful Small Businesses Don't Buy Talented Employees, They Make Them(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CYPRESS, CA / ACCESSWIRE / May 29, 2020 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier provider of ancillary products and services to the legal cannabis and CBD industries, has announced today the appointment of Pete Kadens, former CEO of Green Thumb Industries (GTII) (GTBIF) a leading national cannabis consumer packaged goods company and retailer-to the Company's board of directors (the "Board"), effective June 1, 2020. Kadens served on KushCo's advisory board since August 2019, and will now play a more active role in guiding the Company's strategic vision and direction, especially in strengthening its relationships with premier multi-state operators (MSOs), licensed producers (LPs), and leading brands (the Company's "Core customers") while positioning the Company to achieve near-term positive adjusted EBITDA and long-term profitable growth.
CYPRESS, CA / ACCESSWIRE / May 7, 2020 / KushCo Holdings, Inc. (OTCQX:KSHB) (''KushCo'' or the ''Company''), the premier provider of ancillary products and services to the legal cannabis and CBD industries, ...
Revenue from "Core" Customers Up 227% Year-Over-Year to $24.6 Million, or 82% of Total Revenue Company Achieved Multiple Milestones on its New Strategic Plan to Accelerate Path to Positive Adjusted ...
NEW YORK, NY / ACCESSWIRE / April 8, 2020 / KushCo Holdings, Inc. (OTCMKTS:KSHB) will be discussing their earnings results in their 2020 Second Quarter Earnings call to be held on April 8, 2020 at 4:30 ...
CYPRESS, CA / ACCESSWIRE / April 1, 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, ...
CYPRESS, CA / ACCESSWIRE / March 26, 2020 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier producer of ancillary products and services to the legal cannabis and CBD industries, today announced the unveiling of its new strategic plan for achieving positive adjusted EBITDA, including recent changes to its leadership team and significant cost-cutting efforts to right-size the business. "After more than doubling sales in each of the last five years, we entered fiscal 2020 embarking on a new strategy to rationalize all aspects of our operations, align ourselves deeper with the best and promising cannabis and CBD operators, and pave an achievable pathway toward near-term profitability," said Nick Kovacevich, KushCo's Co-founder, Chairman and Chief Executive Officer. As a result, we have taken quick and decisive steps these past six months, and especially these past few weeks, to significantly reduce our overhead, streamline our warehouses, reduce our inventory, and drastically alter our sales strategy and resources to rely even less on the smaller operators, while doubling down on our efforts to solidify and strengthen our core base of large MSOs, LPs, and leading brands.
CYPRESS, CA / ACCESSWIRE / March 13, 2020 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier producer of ancillary products and services to the legal cannabis and CBD industries, today reported preliminary revenue results for its fiscal second quarter ended February 29, 2020. The Company also provides general corporate updates regarding the business and the recent outbreak of COVID-19 ("Coronavirus"). KushCo expects its fiscal second quarter 2020 revenue to be approximately $30 million, compared to $35.0 million in its fiscal first quarter 2020.
The gross proceeds of the offering will be approximately $16 million before deducting placement agent fees and other estimated offering expenses. The Company intends to use the net proceeds for working capital and for other general corporate purposes. A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.
CYPRESS, CA / ACCESSWIRE / January 31, 2020 / KushCo Holdings, Inc. (KSHB) (''KushCo'' or the ''Company''), the premier producer of ancillary products and services to the legal cannabis and CBD industries, has partnered with Xtraction Services Holding Corp. (CSE:XS)(OTCQB:XSHLF) ("Xtraction Services" or "XS"), a rapidly growing specialty finance company that provides equipment leasing solutions to owners and operators of cannabis and hemp companies in the United States, to offer equipment financing to KushCo's network of thousands of compliant cannabis and CBD operators. Founded in 2017, Xtraction Services specializes in providing equipment financing solutions to cultivators, oil processors, manufacturers, and testing laboratories, among others.
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.
Virtual Investor Conferences and KCSA Strategic Communications today announced that the presentations from the January 9th Cannabis Industry Virtual lnvestor Conference are now available for on-demand viewing at VirtualInvestorConferences.com.
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)