33.89 0.00 (0.00%)
After hours: 4:56PM EDT
|Bid||33.33 x 800|
|Ask||33.88 x 900|
|Day's Range||33.55 - 33.99|
|52 Week Range||23.01 - 45.40|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||2.32|
|Expense Ratio (net)||0.75%|
The push for legislation that would allow banks do business with cannabis companies without the risk of federal enforcement action is gaining momentum and credit unions are playing a key role.
Aphria Stock Rises on Cultivation License in Germany(Continued from Prior Part)Cannabis stocks gainToday, the cannabis sector was making positive moves after last week was fraught with pessimism due to trade tensions. HEXO (HEXO) was up 1.3% while
Shares of Aurora Cannabis Inc. rallied 1.5% in premarket trade Tuesday, after the Canada-based cannabis company announced a "multi-year, multi-million dollar" exclusive partnership with UFC to advance research on the relationship between of hemp-derived cannabidiol (CBD) products and athlete wellness and recovery. The research will be conducted at the mixed martial arts organization's performance institute in Las Vegas, with clinical studies to focus on pain management, inflammation, injury/exercise recovery and mental well being. "This global partnership places focus squarely on the health and well-being of UFC's talented and highly trained athletes," said Aurora Chief Executive Terry Booth. "The Aurora-UFC research partnership creates a global platform to launch targeted educational and awareness campaigns, while creating numerous opportunities to accelerate our global CBD business." Aurora's stock has soared 71.2% year to date through Monday, while the ETFMG Alternative Harvest ETF has climbed 33.3% and the S&P 500 has gained 13.3%.
While this provides a rare wealth-creation opportunity, the road to maturity for this emerging market is also unusually impacted by legislation, taxation, regulation and margin normalization across every investable sector. Cannabis is poised to impact every vertical in the economy, following a path similar in some ways to the one technology took when it went from being a sector to becoming an undeniable part of every sector. Lessons from previous cycles can serve as a useful guide towards better decisions for the informed investor.
The words, "Dad, you said the 'F' word!" were delivered in an authoritarian manner from the back seat. In that instant, I had an "F word" flashback. One night's vivid memory: an Ozzie and Harriet, nuclear family kitchen scene: white Formica table, yellow pleather chairs, table set perfectly.
Canopy Growth (NYSE:CGC) just isn't getting as high as it used to. But CGC stock isn't alone. The marijuana stocks have lost a lot of their buzz lately. The sector fund, the Alternative Harvest ETF (NYSEARCA:MJ) has dropped roughly 15% from its recent highs in March. On top of that, its current $33 share price is well off the $45 level where marijuana stocks peaked just before Canada's legalization went into effect last fall.Source: Shutterstock CGC stock has fared better than many of its rivals. But its stock hasn't been able to hit new highs in awhile either, as the $50 price level has been key resistance. With the company making major acquisitions ahead of earnings and short sellers betting the farm against the stock, expect CGC stock to make big moves in coming weeks. CGC Stock ConsAcreage Deal Isn't A Standard Acquisition: Canopy Growth recently announced a deal to purchase Acreage Holdings (OTCMKTS:ACRGF). This deal is a rather odd one for a number of reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy that Lost 10% Last Week To start with, the deal is contingent on the U.S. legalizing marijuana federally. The deal is structured with a 90 month (7 and a half years) time limit. It will be terminated if federal legalization doesn't occur within that time frame. As it is, Canopy is taking some risk. That is because it is paying a not insubstantial $300 million upfront for the deal, along with far more than that in CGC stock once the deal closes.Given that the deal could take ages to close, Canopy could be giving up a lot of value with its shares. That will depend on where the share price is in coming years. Additionally, there's a risk that Acreage shareholders will oppose the deal, as Canopy is offering a rather modest premium for the acquisition.CGC Stock Hitting Major Resistance: From a technical analysis standpoint, Canopy Growth stock is starting to get itself into trouble. For the better part of a year now, CGC stock has stopped dead in its tracks every time it reaches near the $50 mark.Canopy Growth stock first hit the $50 level last fall. It spent the better part of September trading around that figure. Shares subsequently dumped all the way to $25. But CGC stock bounced back, hitting $50 again in January. That rally petered out, and shares declined 20%. In April, CGC stock again briefly reclaimed the $50 level but has already dropped back almost 15% since that point. $50 is turning into a major resistance point for Canopy stock. Going forward, bulls need to get the stock to close above $50 before serious trading momentum can get going again.Valuation Is Still Strained: Canopy Growth -- and most of its publicly traded rivals that focus on recreational marijuana -- have yet to deliver compelling earnings. In fact, for many firms, free cash burn has actually gotten worse. Companies keep ramping up their growth expenses without enough revenues to offset those costs just yet.Already, we're starting to see issues on the revenue side. The price of recreational marijuana keeps dropping, sales volumes are flattening out, and producers seemingly have a huge oversupply of marijuana on hand. Canopy still has time to find its way to profitability thanks to the Constellation (NYSE:STZ) cash infusion. But it's burning through that money awfully quickly.Not only are the operations losing money, but it keeps making big purchases like Acreage and the German deal announced earlier this month for close to another $250 million. CGC Stock ProsDeals Could Pay Off Big: While these latest deals certainly come with risk, they could pay off for Canopy. The German deal, acquiring the C3 Cannabinoid Compound Company looks interesting in particular. C3 has developed various products to treat pain in cancer patients, among other uses.C3 already has a healthy $30 million or so in annual revenues. This suggests that Canopy only paid about 8x annual sales for the deal. Compared to many of the deals going off in the hyped-up marijuana space, that's a defensible valuation. $30 million in (presumably fast-growing) annual revenues will be enough to move the needle for Canopy Growth more generally as well.CGC Stock Holding Up Better: Canopy Growth stock is having a mighty difficult time trying to break out above the $50/share level. But at least it is still somewhere near its recent trading highs.Other pot stocks have gotten crushed lately. Cronos (NASDAQ:CRON), Aurora (NYSE:ACB) and Aphria (NASDAQ:APHA) have all fared worse than Canopy. There's a lot of value in being the strongest performing major stock within the industry. When marijuana stocks rally as a group, it may be enough to power CGC stock past that $50 barrier and onward to new all-time highs.Short Squeeze Potential: As I sometimes warn, you generally shouldn't base a whole investment thesis on the potential for a short squeeze. That said, if you are already considering taking a long position, high short interest could be the thing that causes the stock to run in the short term.Canopy Growth's stock has an incredible 75 million shares shorted (on its U.S. listing). That makes up 35% of the float. This is among the highest short ratios you'll find out there for a large widely-traded stock today. Clearly short sellers are betting on Canopy's next earnings report being a dud. That would be in line with what other pot players have produced recently. But if they're wrong, the stock could make a violent move higher. CGC Stock VerdictI don't see this as a great time to get into CGC stock. The firm has outperformed its other marijuana peers recently. But a poor earnings report could drive CGC stock right back down with the rest of the pack. Given how strong the $50 resistance level has been, bears are logically pressing their bets here. * 3 Reasons Not to Sell Canopy Growth Stock If Canopy Growth can deliver a strong earnings report, that would change everything. But until investors see a clearer path to profits and a more stable business trajectory, odds will continue to favor the bears. I'd stick to the sidelines in Canopy stock for the time being.At the time of this writing, Ian Bezek held no positions in any of the aformentioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post Should You Buy Canopy Growth Stock? 3 Pros, 3 Cons appeared first on InvestorPlace.
The Department of Justice (DOJ) updated its guidance to help prosecutors to evaluate corporate compliance programs. Prosecutors rely on this guidance when evaluating business organizations during an investigation, determining whether to bring charges or when entering into a plea agreement. Is it applied effectively so that it mitigates risk identified during a risk assessment process?
With both deaths occurring near hospitals servicing the Department of Veterans Affairs, the VA was very much in the spotlight, as the media and citizens tried to make sense of the far-too-common tragedy of veteran suicides. Veterans have a hard time getting access to the plant: the VA is a federal agency and therefore must follow federal laws.
Fintech company Promontory Interfinancial Network recently conducted a survey of bankers in the U.S. Results showed that 82 percent of respondents think the federal government should allow them to serve ...
Today after the market closes, Aurora Cannabis (ACB) is set to report FQ3 numbers for the March quarter. The numbers are crucial as they provide insight into the troubling sales of legalized cannabis in the Canadian adult-use market. With all data points suggesting weak legal sales, the company has a high hurdle to match analyst estimates for sequential revenue growth.Downside RiskAnalysts forecast Aurora to lose 50 cents per share on revenue of C$67.5 million. The company generated net revenues of C$54.2 million and net cannabis revenue of C$47.6 million in the December quarter and lost a substantial C$238 million due to investment losses.The risk here is to the downside with reported monthly sales in Canada remaining relatively flat. The only revenue growth is likely to come from recent acquisitions like Whistler Medical Marijuana Corp. that closed during the March quarter.A couple of key figures for the quarter are the gross margin and the average net selling price. In FQ1, Aurora saw the gross margin dip to 54% and the selling price for dried cannabis fell 26% sequentially to C$6.23 per gram. Any weakness here is problematic for the stock.The lack of organic growth would normally crush a pricy stock, but the stock market is likely to still latch onto high hopes for the global cannabis market.High Hopes The question Aurora needs to answer for investors is what happens with the additional supply hitting the market this quarter. The large cannabis company has long projected reaching an annual production rate of 150,000 kg by the end of March.Due to the time period for the cannabis supplies to reach the market, Aurora forecasts 25,000 kgs available for sale in the June quarter. The number is 3.5x the 6,999 kgs sold in the December quarter while demand is not growing due in large part to the illegal market.Along with the forecast for the higher production and sales level, management promoted the concept of Aurora being EBITDA positive in the June quarter. With the quarter halfway over, the risk is that management has to walk back this target due to lackluster sales and prices.Aurora raised their total projected capacity from 500K kg to 625K kg back in early April, which it expects to reach my mid calendar 2020. A big question remains the justification of increasing planned capacity by 25% without any sign that all of the existing cannabis capacity will be absorbed. Any failure to explain this corporate decision could weigh on the stock.Some potential upside comes from Ontario opening up additional retail stores after having an initial restriction of retail stores and the consumables market opening up in October. The addition of vapes, edibles and beverages will open up new revenue streams currently restricted, but the company has a lengthy period to transition to these new products.TakeawayThe key investor takeaway is that Aurora stock is in a precarious position where the company will have a difficult time maintaining previous lofty projections. With about 1.1 billion shares outstanding, the stock still has a market value of ~$9 billion despite the dip to multi-months lows at $8.The risk is to the downside, if management confirms some of the worst fears regarding pricing, mounting losses and wild capacity expansion. The likely outcome is that Aurora stock still spins a bullish market thesis due to global expansion and the further opening up of the domestic Canadian cannabis market. The market likely gives the stock a pass on weak results.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on ACB: * Aurora Cannabis (ACB) Stock Is Still a Buy, Says Analyst * M&A to Save Aurora Cannabis (ACB) Stock in the End * The Cannabis ‘Magic Bus’ Is About to Leave the Station! Next Stops? Aurora Cannabis (ACB) More recent articles from Smarter Analyst: * Tesla (TSLA) Stock Isn't a Bargain, Despite Recent Sell-Off, Says Needham * Micron (MU) Stock Remains a Long-Term Buy, Says Analyst * The Clouds Are Getting Darker for Tesla (TSLA) Stock * Aurora Cannabis (ACB) Enters Partnership with UFC; Stock's Rising 2.5%
I hear it, and I’m taken to a distant place and time. Snapshots of formative years play like a grainy old newsreel. Images powerful and iconic; sounds and smells palpably memorable. My personal time capsule ...
Shares of Aurora Cannabis Inc. shot up 5.6% in morning trade Tuesday, to bounce off a two-month low ahead of the Canada-based cannabis company's fiscal third-quarter results due out after the close. The stock has lost 9.7% over the previous five sessions, while the ETFMG Alternative Harvest ETF has shed 8.4%. After fiscal second-quarter results, in which Aurora swung to a wider-than-expected loss despite greater-than-forecast growth in revenue, the stock fell as much as 7.1% intraday before recovering to close unchanged. The company is expected to report a loss of 5 cents Canadian per share, after a loss of 4 cents a year ago, while revenue is expected to increased 4-fold to C$67.5 million ($50.1 million). Aurora's stock has lost 6.7% so far this month, while the Alternative Harvest ETF has lost 6.1% and the S&P 500 has shed 3.7%.
The U.S.-listed shares of CannTrust Holdings Inc. surged 5.4% in premarket trade Tuesday, after the Canada-based cannabis company reported a surprise first-quarter profit, while revenue more than doubled but fell short of expectations. The company reported net income of C$12.8 million ($9.5 million), or 12 cents a share, after earnings of C$11.4 million, or 12 cents a share, in the same period a year ago. The FactSet consensus was for a loss of 5 cents a share. Total revenue rose 115% to C$16.9 million ($12.5 million), which FactSet said was just shy of consensus of C$17.2 million. Medical net revenue rose 57% to C$11.4 million while wholesale net revenue grew 9-fold to C$5.5 million. Total active patient count rose 70% to 68,000 and harvested production increased more than 400% to 9,400 kilograms. Medical dried revenue per gram fell to C$7.33 from C$7.94 while wholesale dried revenue per gram declined to C$4.54 from C$5.47. The company expects 2019 revenue to increase "significantly" over 2018's results, with growth accelerating in the second quarter. The stock has rallied 18.8% year to date through Monday, while the ETFMG Alternative Harvest ETF has run up 30.4% and the S&P 500 has gained 12.2%.
Cronos Group Inc. announced Tuesday a supply deal with MediPharm Labs Corp. , in which MediPharm will supply Cronos with about C$30 million ($22.3 million) of private label cannabis concentrate over 18 months. With certain renewal and purchase options, the deal could potential reach C$60 million over 24 months. The U.S.-listed shares of Cronos rose 3.1% premarket, while MediPharm's stock was still inactive. The companies have also entered into a multi-year tolling agreement, in which Cronos will supply bulk cannabis to MediPharm's extraction facility, to fulfill certain processing needs. "As the industry develops and matures, we see opportunity to work with companies like MediPharm Labs that provide specialized, high-quality services and inputs for our products," said Cronos Chief Executive Mike Gorenstein. Cronos's stock has rallied 37.2% year to date through Monday and MediPharm shares have rocketed nearly 4-fold (280%), while the ETFMG Alternative Harvest ETF has climbed 30.4% and the S&P 500 has gained 12.2%.
As more municipal officials are faced with a decision to allow or ban cannabis dispensaries, a new study highlights those dispensaries’ links to lower crime, declining teen use, and increased property values. Fears over crime rates, teen use, and property values often drive the discussion around local zoning issues. What we found in our report—Debunking Dispensary Myths—was eye-opening.
Cannabis stocks were mostly lower Monday, amid a broad market tumble related to the Sino-American trade fight.
Cannabis Sector Weekly Update: Sell-Off amid Market WeaknessCannabis weekly updateLast week, cannabis ETFs fell for the second consecutive week. The Horizons Marijuana Life Sciences ETF (HMMJ) saw a negative price action of 3.1%, while the ETFMG
Cannabis Sector Fell on CRON's Earnings and Trade Tensions(Continued from Prior Part)Sector declinesIn the week ending May 10, the overall market sentiment was pessimistic with the TSE Composite Index losing almost 1.2% The ETFMG Alternative Harvest
Charlotte’s Web Holdings (CWBHF) has a lot going for the company. Not only is the company perfectly positioned in the domestic CBD market, but also the stock is remains relatively under the radar. The company recently expanded a canine-focused pet line due to strong market demand that should reward shareholder.Big Pet OpportunityAccording to the Brightfield Group, the CBD pet market is forecast to surge to a market size of $1.16 billion by 2022. Charlotte’s Web recently launched an expanded canine-focused pet lineup with 12 new SKUs to capture growing demand.The market for canine products focuses on products for calming dogs to reduce stresses and to general pain relief from stiffness in hips and joints. Charlotte’s Web uses hemp extracts to make chews, balms, and flavored and unflavored oils to supply the canine market.In Q4, revenues from animal nutrition products grew by 126%. The 2018 growth for the canine products was 189%, though some of the excitement should be tampered down due to the products only being released in February 2017. The revenue amounts are still relatiely small, but the key is Charlotte’s Web building up a brand name as the market opens up.Hidden ValueWhile Charlotte’s Web doesn’t appear cheap on first brush, the company is uniquely positioned in the CBD market. A big plus is that, the company is focused on being a brand with a strong ecommerce platform for their hemp-based CBD products.The stock has a current market value in the $1.7 billion range with a 2019 revenue target of $190 million. The forecast is for revenue growth of about 150% that is impressive until one views some projections of other companies in the cannabis sector.Without the costly retail stores, Charlotte’s Web doesn’t have all of the large fixed costs. In addition, the Colorado-based company already has the supplies due to a 10 fold increase in hemp production in 2018 to 675,000 pounds.The company is ahead of the game as other players like Canopy Growth (CGC) and Village Farms (VFF) look to just now enter the CBD market following the passing of the 2018 Farm Bill. Charlotte’s Web is already on the market releasing updates to existing product lines like the canine pet lineup.In Q4, the company produced 20% EBITDA margins on revenues of only $21.5 million. Higher revenues from expanded product lines and more retail distribution outlets in 2019 should lead to some substantial revenue growth followed by strong EBITDA margins. The company forecasts a return to historical EBITDA norms in the 30% to 35% range while most cannabis companies don’t even have historical norms.As 2019 ends, the market will stop throwing all of the cannabis stocks into one basket with a likely preference for strong brands with high margins. Companies without the high fixed costs of large farming operations and retail locations will likely find strong appeal among investors.TakeawayThe key investor takeaway is that Charlotte’s Web continues to expand production lines and distribution sources without spending wildly on facilities. The stock recently bounced off highs and has several catalysts for even higher prices including the uplisting of the stock to a major stock exchange.For these reasons, Charlotte’s Web is not only friendly to pets, but also shareholders.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more: Can Marijuana Stock Charlotte’s Web (CWBHF) Go Even Higher? More recent articles from Smarter Analyst: * Tesla (TSLA) Stock Isn't a Bargain, Despite Recent Sell-Off, Says Needham * Micron (MU) Stock Remains a Long-Term Buy, Says Analyst * The Clouds Are Getting Darker for Tesla (TSLA) Stock * OrganiGram: An Under the Radar Cannabis Stock to Be Listed on the Big Board Today
In May 2018, the International Health, Racquet & Sportsclub Association valued the global health club industry alone at $87.2 billion. The U.S. led all markets with $30 billion in health club counts and memberships, the organization said. Many athletes have turned to THC and CBD products to treat their bodies after rigorous games and training sessions.
As legalization sweeps the world, thousands of cannabis businesses and entrepreneurs are eager to get a bite of the action. With the inundation of new businesses entering the cannabis sphere, there are a few secrets worth noting to cut through the noise and stand out against the competition.
Marijuana provides stress relief, helps out in social situations and makes your creativity bloom, it’s the world’s most versatile plant, offering a kick to almost all activities. Lucky for you, we found 10 types of marijuana and are munchie free and will suppress your appetite. Know that there are multiple ways to consume marijuana, you can eat or drink it, rub it into your skin, vape, smoke and much more.
Canadian pot stock Aurora Cannabis (ACB) -- the second biggest marijuana stock on the market today at a market cap of $9 billion -- reports its fiscal Q3 2019 earnings next week (on May 15). In preparation for this big event, Seaport Global analyst Brett Hundley has decided to update his expectations for the company. Hundley reiterates a Hold rating on ACB stock, without offering a price target. (To watch Hundley's track record, click here)Aurora has been making a lot of headlines this past month, updating investors on: * The status of construction at its "Aurora Sun" grow facility. (Floor space will expand 33% to 1.62 million square feet, and production capacity will exceed 230,000 kg per annum, with more than 1 million plants under cultivation). * Its plans to build a new indoor cannabis production facility with 4,000 kg capacity in Leuna, Germany. (Construction will begin this month, and medical marijuana shipments will begin in October 2020). * Its acquisition of the balance of shares of Hempco Food and Fiber not yet owned (a C$63.4 million deal). * Fiscal Q2 financial results at Hempco (sales doubled year over year, albeit only to $600,000, and the subsidiary lost $1.6 million on those sales).Citing this "news flow," Hundley thought it best to summarize for his clients his thoughts on how these developments affect Aurora Cannabis's prospects going forward. So what did he have to say?Well, there's (sort of) good news and bad news, both. Despite the many positive press releases Aurora put out over the past month -- we count 20 separate news releases, and that's just the ones it distributed through Canada's CNW Group -- Hundley doesn't see any particular need to adjust its fiscal Q3 2019 revenue estimates upwards at all. Instead, he's sticking with a sales guesstimate of C$71.3 million, and notes that this indicates "sequential growth."Actually, the analyst indicates quite a lot of sequential growth. Last quarter, Aurora's sales totaled only C$54.2 million!The bad news is that, despite this growth in sales, Hundley says he's becoming "more conservative on anticipated margins." The analyst predicts Aurora Cannabis will report C$40.5 million in lost adjusted earnings before interest, taxes, depreciation, and amortization ("adjusted EBITDA," i.e. not even GAAP) for Q3, followed by a further C$21.9 million in negative adjusted EBITDA in Q4.Hundley sees Aurora pulling those numbers up over the next couple years, albeit he says that because of the lower profit margins, his estimates are declining "modestly." In fiscal 2020, Hundley estimates the company will have adjusted EBITDA of C$131 million (15% lower than previously estimated), and in fiscal 2021, C$358 million -- a big year over year increase, but still 5% below the analyst's earlier expectations. Only the end of 2020 does Hundley expect to see Aurora earning consistent 70% "core gross margins." Hence, the better estimates for adjusted EBITDA in 2021.Softening the blow for investors who had hoped to hear better news, Hundley does, however, insert a positive caveat into its note. Citing strong demand among consumers, and a production ramp and improved "extraction efficiencies" at Aurora, Hundley hypothesizes that his revenue estimates, at least, might prove "conservative." (Tellingly though, the analyst makes no such caveat with regard to profits).One more week, and we should find out for sure.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on ACB: * There’s an Opportunity Brewing in Aurora Cannabis Stock, Says Analyst * Cowen Counts the Points in Aurora Cannabis (ACB) Stock’s Favor * How Aurora Cannabis (ACB) Stock Gets to $11 More recent articles from Smarter Analyst: * Tesla (TSLA) Stock Isn't a Bargain, Despite Recent Sell-Off, Says Needham * Micron (MU) Stock Remains a Long-Term Buy, Says Analyst * The Clouds Are Getting Darker for Tesla (TSLA) Stock * Aurora Cannabis (ACB) Enters Partnership with UFC; Stock's Rising 2.5%