|Bid||30.21 x 1000|
|Ask||30.30 x 1000|
|Day's Range||29.80 - 30.35|
|52 Week Range||23.01 - 45.40|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||2.14|
|Expense Ratio (net)||0.75%|
The U.S.-listed shares of OrganiGram Holdings Inc. turned lower in premarket trading Monday, to a loss of 6.0% after being up as much as 2.4% earlier, after the Canada-based cannabis company reported a 7-fold increase in fiscal third-quarter net revenue but swung to a surprise loss amid fair value changes to biological assets in inventory. The company reported a net loss of C$10.2 million ($7.8 million), or 7 cents a share, after a profit of C$2.8 million, or 3 cents a share, in the year-ago period. Gross revenue increased nearly 9-fold to C$30.4 million, while net revenue including excise taxes rose to C$24.75 million ($19.0 million) from C$3.4 million. The FactSet consensus was for a profit of 3 cents and revenue of C$29.7 million. Cash and all-in-costs of cultivation increased to C$0.95 and C$1.29 per gram of dried flower, respectively, from C$0.65 and C$0.95 per gram in the sequential second quarter, due primarily to a "temporary" decrease in yield per plant resulting from a change in growing protocol. The company said yield returned to previous levels toward the end of the third quarter and into the fourth quarter. The stock has shed 8.3% over the past three months through Friday, while the ETFMG Alternative Harvest ETF has slid 13.1% and the S&P 500 has gained 3.7%.
A third marijuana ETF began trading in the U.S., just ahead of the U.S. House of Representatives' meeting to discuss federal prohibition of cannabis.
Cannabis stocks flew higher in reaction to the legalization of recreational weed in Canada and the legalization of hemp in the U.S. as part of the 2018 Farm Bill. Many investors are working under the assumption that cannabis will be legalized at the federal level in the near-term, Cramer said during his daily "Mad Money" show Thursday. A disconnect exists between what many cannabis companies are promising investors versus the reality on the ground, Cramer said.
Restrictions on outside investments, state and local regulations and oversaturation are constant roadblocks that exist in every cannabis legalized state to some degree and have a direct impact. There is a lot of talk about the lack of opportunity for outside investors to get in on states’ local cannabis industries. Foreign investors are looking to collaborate, but the general consensus from state and local regulation has been negative.
On Wednesday, U.S. Congress held a landmark hearing regarding cannabis legalization and the need to reform. Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 -- Click here to learn more! "It is imperative that we recognize the disparate and ongoing impact of marijuana prohibition on people of color and the barriers it creates for them to take part in the burgeoning legal cannabis market,” Aaron Smith, executive director of the National Cannabis Industry Association, said in a statement.
This is the first of a two-part series on the history of Colombia and its route to cannabis legalization. Colombia is in an extraordinary position. It possesses the fourth largest economy in Latin America.
In a surprise move, Constellation Brands (STZ) has forced out Bruce Linton from Canopy Growth (CGC). The news has negative ramifications for the June quarter and beyond as Constellation Brands was apparently not happy with the quarterly results that included growing losses.Bruce Linton Fired The press release from Canopy Growth suggested that co-CEO Bruce Linton agreed to step down to allow the company to find the next leader of the company. According to Bruce Linton on CNBC, he was fired. The company has placed Mark Zekulin into the sole CEO roll.The move follows a horrible March report where Constellation Brands openly complained about the huge losses at Canopy Growth. Constellation Brands invested C$5 billion in Canopy Growth last August, but the results haven’t impressed sending the stock down below $40.Per MarketWatch, CEO William Newlands made this statement on Constellation Brands earnings call:While we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy’s recent reported year-end resultsConstellation Brands bought a 38% interest at the time of the deal along with additional warrants for C$4.5 billion that if exercised would provide for a controlling interest. Naturally, the global spirits company didn’t make a near C$10 billion commitment in order to watch the capital burned via large operating losses and wild spending on acquisitions.RamificationsFor FQ4, Canopy Growth reported a massive C$97 million adjusted EBITDA loss, up from C$725 million in the prior quarter. In addition, the company including the CEO talked up a massive flood of new cannabis supply expected to hit the market in the June quarter and beyond. The June quarter harvest was 34,000 kg or roughly double the March quarter.The initial take on this executive change being announced on July 3 is that the FQ1 results are likely horrible. The expected ramp up in sales from Ontario retail stores isn’t sopping up mounting inventories. Remember, the company has access to detailed financial information following the close of the June quarter last week.Analysts forecast FQ1 revenues to reach $86 million and jump to $111 million in the September quarter. The suggestion by the firing of the founding CEO is that Canopy Growth misses estimates and reports some very large losses the rest of FY20 before Cannabis 2.0 ramps up next year.All of these numbers are far below the projections of fired CEO Bruce Linton who proclaimed that Canopy Growth would reach C$1 billion in sales in the next year. Analysts are down at estimates of only $555 million or the equivalent of C$726 million, far below his forecasts even more this executive shuffle.One should expect that these financial targets are at risk now.TakeawayThe key investor takeaway is that the market is coming around to signs that the exit of Bruce Linton might lead to more discipline in the sector. Investors should quickly fade this initial rally back above $40.The cannabis sector is in line for more turmoil in the months and quarters ahead. Canopy Growth will need to rationalize production targets and face market share losses from aggressive competitors. The best option for investors is to wait for the industry shakeout before looking to pickup shares.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Disclosure: No position.Read more on CGC: * Canopy Growth May Never Reap the Benefits of Acreage Holdings * Canopy Growth (CGC): Buy the Dip or Pump the Brakes? * Canopy: Recent Licence from Health Canada Ain’t Going to Help the Stock * Canopy Continues to Struggle to Find Its Identity More recent articles from Smarter Analyst: * Aurora Cannabis (ACB) Is Firing on All Cylinders * Will HEXO’s NYSE Transfer Cause Commotion? * Can You Still Trust CannTrust (CTST) Stock? This Analyst Is No Longer Certain That You Can * Tesla (TSLA): Range Anxiety Is All Perception, but Still a Major Hurdle
Investors that enjoy cannabis investing via the ETF wrapper rejoice: you've got another marijuana ETF to consider. On Tuesday, the aptly named Cannabis ETF (NYSEARCA:THCX) came to market.Source: Shutterstock The new cannabis ETF's issuer, Innovation Shares, frames the rookie marijuana fund as the "first passively managed pure-play ETF solution for investing in cannabis." THCX is the third cannabis ETF to hit U.S. exchanges. The $1.1 billion ETFMG Alternative Harvest ETF (NYSEARCA:MJ) is the seasoned veteran among domestic cannabis ETFs.New competition to MJ arrived in April when the actively managed AdvisorShares Pure Cannabis ETF (NYSEARCA:YOLO) launched. Today, YOLO has around $60 million in assets under management, making it one of the more successful stories among 2019's crop of new thematic ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The S&P 500's 5 Best Highest-Yielding Dividend Stocks "As a pure-play cannabis ETF, THCX focuses on companies in the legal marijuana, CBD and hemp industries -- the portfolio does not rely on alcohol or tobacco stocks to provide exposure to this burgeoning global growth story," said Innovation Shares Managing Director Matt Markiewicz in a statement. The New Cannabis ETF's HoldingsThe new cannabis ETF tracks the Innovation Labs Cannabis Index, a rules-based benchmark that rebalances monthly. Home to 36 stocks, the cap-weighted index has a combined market capitalization of about $80 billion and features 19 licensed Canadian producers and 19 US-listed weed stocks, according to issuer data.Index components include some more obscure fare, such as The Green Organic Dutchman Holdings Ltd. (OTC:TGODF) and Toronto-listed OrganiGram Holdings Inc. (TSXV:OGI.V). Well-known cannabis names in the benchmark include Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC) and HEXO Corp (NYSE:HEXO), a beaten up Canadian cannabis name."The index currently consists of 35 stocks that are expected to benefit from the rise in value of the global cannabis market which is estimated to reach $630 billion by 2040," according to the index provider.Combined, THCX's aforementioned rivals, MJ and YOLO, have almost $1.2 billion in assets under management. That number does not necessarily jibe with investor demand for a marijuana ETF or interest in the cannabis investment theme. However, that theme is still in its early innings, many cannabis stocks are volatile, plenty are not profitable and some investors are simply waiting for the group's real leaders to emerge while the more financially challenged names peter out.While a myriad of challenges face cannabis stocks and their investors, scores of data and fundamental factors bode well for the long-term trajectory of the industry, potentially paving the way for more acceptance and assets of cannabis ETFs."With several regulatory catalysts on the horizon in the U.S. and abroad, the current cannabis environment presents an exciting opportunity for investors," said Markiewicz. "One area which has witnessed explosive growth since the signing of last year's U.S. Farm Bill is the hemp-derived CBD industry. Several of the companies in the portfolio are actively participating in this CBD boom by cultivating hemp, providing extraction services or by using CBD for applications in the pharmaceutical, health and consumer wellness markets." The Bottom Line on THCXMany new ETFs, regardless of underlying investment objective, struggle. And it is clear THCX entered as still small, but highly competitive arena. That said, the new cannabis ETF has something on its side: a low fee. Sort of."Sort of" because the rookie cannabis ETF charges 0.70%, per year, or $70 on a $10,000 investment. That is not cheap in ETF terms, but it is expensive relative to the 0.75% charged by MJ and YOLO's annual expense ratio of 0.74%. * 7 Retail Stocks to Buy for the Second Half of 2019 At the very least, THCX's low fee is likely to catch a few eyes among investors comparing the cannabis ETFs and that should be good to get some capital flowing into the fund.Todd Shriber does not own any of the aforementioned securities.The post The New Cannabis ETF Is the Market's Cheapest Marijuana Fund appeared first on InvestorPlace.
U.S.-based cannabis company MedMen Enterprises Inc. said Wednesday it received an additional $30 million equity investment from Gotham Green Partners, with participation from Wicklow Capital. That brings the total financing commitment led by Gotham to $280 million. Gotham has so far funded $100 million of the total commitment. "Both Gotham Green and Wicklow have shown continued confidence in our strategy and recognize the potential ahead," said MedMen Chief Executive Adam Bierman. MedMen's U.S.-listed shares have dropped 10.1% year to date, while the ETFMG Alternative Harvest ETF has rallied 25.3% and the S&P 500 has gained 18.9%.
Upstart exchange traded funds issuer Innovation Shares is expected to roll out The Cannabis ETF (NYSE: THCX ) today, about nine months after the issuer filed plans for the fund. What Happened Innovation ...
The U.S.-listed shares of CannTrust Holdings Inc. plunged 20% in premarket trading Monday after the Canada-based cannabis company said it greenhouse facility in Pelham, Ontario was deemed "non-compliant" by regulators. The stock is on track to open at the lowest price seen during regular session hours since October 2017. "The non-compliant rating is based on observations by the regulator regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees," the company said in a statement. The company said 5,200 kilograms of dried cannabis was placed on hold by Health Canada, and the company has voluntarily held about 7,500 kilograms of cannabis equivalent at its Vaughan facility. CannTrust said customers and patients will experience temporary product shortages as a result of the hold, while the company explores options to mitigate the shortages. The company said the financial impact is "unknown" until Health Canada completes its testing. The stock has plunged 36.3% over the past three months through Friday, while the ETFMG Alternative Harvest ETF has lost 11.5% and the S&P 500 has gained 3.3%.
Neptune Wellness Solutions Inc. said Monday Chief Executive Jim Hamilton has stepped down after more than 4 years in the role, but will remain with the cannabis extraction company as an advisor. Neptune named Micheal Cammarata as its new CEO, effective Monday. The company said Cammarata, who has been a "serial entrepreneur" over the past 20 years, is the co-founder of wellness brand Schmidt's Naturals, which is now a business unit of Unilever PLC . "[Cammarata] has identified new trends and opportunities which led to the development of market-leading products," said Chairman John Moretz. "These critical skills should benefit our customers. Moreover, Michael possesses the right mix of operational CEO experience, leadership skills, and technology industry expertise to help elevate Neptune to the next level." Neptune's stock, which was still inactive in premarket trading, has soared 74.4% year to date, while the ETFMG Alternative Harvest ETF has rallied 27.3% and the Dow Jones Industrial Average has gained 15.4%.
According to the National Retail Federation, Mother’s Day and Father’s Day spending this year was expected to reach a record $25 billion and $16 billion, respectively. Data from Headset, a data analytics company in the cannabis industry, shows some of that money was spent on cannabis products. Yes, even when it is hard to say exactly how much, the lift in cannabis purchases was tangible during both weekend celebrations.
There’s a general consensus among insiders that the federal prohibition on cannabis will be repealed within the next three to five years. I think it’ll be sooner. Momentum is strong, voters want it, and ...
Cannabis stocks fell Tuesday, tracking declines in the broader market where excitement about a U.S.-China trade truce had dissipated on concerns about how quickly a deal can be achieved.
The University of Maryland just earned some cred within marijuana circles, following an announcement the pharmacy school will offer a graduate degree in medical cannabis. The news comes as a reversal of sorts from the school’s decision two years to cancel previously planned medical marijuana courses after receiving advice from the state’s attorney general. Currently, most marijuana degrees and classes take place online and at unaccredited universities.
Through the creation of authentic, tasteful, and rich cannabis experiences, Herb provides people with smart recommendations for cannabis products and information. A lot has changed since we began, however, and the cannabis industry shows no signs of slowing down. In October, Canada is legalizing edibles, beverages, vaporizers, and topicals, marking the “second wave” of legalization.
The whole benefit of investing in the U.S. multi-state operators (MSOs) is playing out as planned with the approval of adult-use cannabis in Illinois. The large market opportunity immediately adds value to the Cresco Labs (CRLBF) business without the company having to acquire another business or look towards global expansion. The stock should not be trading at $10.50 with their growing total addressable market.Already Focused On Illinois The state of Illinois approved adult-use cannabis effective January 1, 2020. The state already had medical marijuana where Cresco Labs had 5 dispensaries addressing the need of the large population in Illinois that includes Chicago.(Source: Cresco Labs presentation)The company is in the middle of working on closing the Origin House (ORHOF) merger that provides wholesale access to 500 dispensaries in California. The opportunity in Illinois is estimated at a potential $2 to $4 billion market size leaving Cresco Labs in a great position whether or not the company gets approval to close that merger.As part of the Illinois approval, Cresco Labs can open 5 more dispensaries to reach a total of 10. The company plans to have these locations open before the adult-use market opens up on January 1 along with expanded cultivation facilities to reach the max allowed by the state.Illinois is well positioned to match the future importance of states like California and Florida as Cresco Labs completes acquisitions already in the works.Still Waiting Cresco Labs is still waiting on several transformational mergers to close. The Origin House deal got the typical request from regulators for additional information. Even the VidaCann merger in Florida hasn’t closed, but the company has now opened additional dispensaries along with plans to reach 20 locations by the end of 2019.The company has pending transactions that will allow Cresco Labs to enter New York, Massachusetts and Florida along with licenses to expand into Michigan. The deals gave the company access to 51 dispensaries and the approval in Illinois brings the total to 56.In addition, the revenue forecasts at the time of the merger topped $1 billion by 2021 and the new expansion in a large market should provide a nice boost to those original estimates. Cresco Labs should be positioned for substantial growth over the next couple of years.Once the mergers with Origin House and VidaCann close, the company will have substantial positions in the key cannabis markets of California, Florida and Illinois that all offer market opportunities that might exceed the current struggling Canadian market.At the time of the merger, the company had listed the fully diluted valuation in the C$5.5 billion range. With about a 15% decline in the stock price since, the updated valuation is about C$4.8 billion. The converted value is about $3.7 billion providing a very reasonable value for all of the opportunities for MSOs building scale in the U.S.TakeawayThe key investor takeaway is that Cresco Labs remains an emerging MSO giant. The cannabis company has substantial growth plans right under the surface of investor view due to the pending acquisitions.Within a year, the company will go from reporting quarterly revenues in the $20 million range to topping $125 million. The stock will rise accordingly.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Read more on Cresco Labs * Stay Away from Cresco Labs Stock Until the Smoke Clears * Cresco Labs (CRLBF) Worth Another Look Following Earnings More recent articles from Smarter Analyst: * Aurora Cannabis (ACB) Is Firing on All Cylinders * Will HEXO’s NYSE Transfer Cause Commotion? * Can You Still Trust CannTrust (CTST) Stock? This Analyst Is No Longer Certain That You Can * Tesla (TSLA): Range Anxiety Is All Perception, but Still a Major Hurdle
The cannabis sector offers a $200 billion global opportunity in the next decade, up from the roughly $8 billion that was generated in 2018 in federal legal markets and U.S. state licensed sales, Stifel analysts wrote Tuesday in a new report. Market leader Canopy Growth Corp. disappointed investors with weaker-than-expected earnings last week and mixed outlook, as elevated costs during the current investment phase lowered gross margin forecasts, said the report. "While the near-term execution at Canopy is underwhelming likely driving a portion of the elevated expenses, we remain confident that Canopy is best positioned to tackle all avenues for growth in the $200 billion global category," the analysts led by Andrew Carter wrote in the report. In the same vein, Canada currently represents the most significant near-term opportunity, as the only G-7 country to have fully legalized cannabis last October. Stifel is expecting Canada to achieve C$10 billion in annual sales by 2023. "The market is quickly taking shape with the latest update from Stats Canada suggesting a C$ 900 million annualized market in April with sales in the month up 23% sequentially likely driven by the cannabis enthusiast holiday 4/20 and initial store openings in Ontario," said the report. But Canada sales will be eclipsed by the U.S. which offers a $100 billion opportunity over the next decade, the analysts wrote. That opportunity will change if federal rules are relaxed, which Stifel is expecting is at best a 2021 possibility. "While there has been a flurry of legislation in Congress with a number of items achieving success in the House of Representatives, we believe the political calculus of Senate majority leader Senator Mitch McConnell favors keeping any cannabis legislation from reaching the Senate floor for a vote," they wrote. "While cannabis enjoys bipartisan approval, we contend the issue of change at the federal level is not salient with American voters." The report noted the three companies that are expected to benefit from legalization in Illinois, which last week became the first state to legalize through the state legislature and not through the ballot box. Cresco Labs Inc. , Green Thumb Industries Inc. and PharmaCann, the state's three medical operators, are expected to benefit. The ETFMG Alternative Harvest ETF has gained 29% in 2019 to date, while the S&P 500 has gained 18%.
A few years ago, a group of scientists at the Social Development Research Group at the University of Washington in Seattle looked at the association between drinking and cannabis by reviewing the reports that had been done on alcohol use in states that had legalized marijuana in some form. “It is likely that the relationship between marijuana and alcohol varies for different segments of the population, and the type and course of marijuana and alcohol use,” the researchers found.
The market has been operating under the assumption there is no doubt Canopy Growth's (CGC) acquisition of Acreage Holdings is sure to enjoy the benefits of the U.S. government legalizing recreational pot.I've seen some people even suggest it could happen as soon as a year from now. In my opinion that outlook has no basis in reality. There's a reason, after all, the deal will expire after seven and a half years if it isn't consummated.This implies the participants, at best, believe it's going to take some time for legalization to transpire. It also points to the possibility it may take a long time to be legalized, if it ever is.Canada and the U.SOne of the problems as I see it is far too many people are equating the fairly easy legalization of recreational pot in Canada with the U.S. The assumption appears to be that the U.S. will rapidly follow in Canada's footsteps. The problem there is people aren't thinking deeper about what differentiates the two countries, and how difficult it'll be to gain acceptance of adult-usage pot in America.While the U.S. and Canada have some similarities, the underlying differences concerning social issues are vastly different, especially with conservatives in the U.S., which number in the multi-millions. Even among liberals there is some hesitancy in recreational legalizing pot.As with the last presidential election, the media and many polling agencies got it significantly wrong about Trump and his support among millions of Americans. I think it's the same with pot legalization. If and when a push is made for legalization, I think there will be a groundswell of grass roots resistance that will make it politically dangerous for many politicians to support.One thing to understand about the U.S. if you're not a resident, is there's a point-of-view that is represented by business and media elites living on the East and West coasts, against the outlook on life by those that live in what we identify as "flyover" country.In recent year this has resulted in a distortion of what the American people really believe. As it relates to legalization of recreational pot, I think it's highly unlikely there will be a change in sentiment that would make legalization happen at the federal level.A key there is it's believed by many that recreational pot is a gateway drug to more potent drugs. It would at best, take years to change the minds of Americans concerning that. I think the deal will be forced to expire before recreational marijuana is legalized in the U.S.Most likely U.S. cannabis scenarioWhat I think will probably play out in America is there will be a full legalization of cannabis, but it'll be on a state-by-state basis, and only on the medical side of the business. It would surprise me if all 50 states don't legalize medical marijuana.My reason for thinking that is medical cannabis, now with a growing body of research and proven results, is becoming more acceptable to a growing number of people. Educating the public on the benefits has been a key to that changing outlook.The general population also starting to understand the difference between THC (part of cannabis that makes people high) and CBD is important. That's why it was fairly easy to pass the 2018 Farm Bill.Another factor is many states in the U.S. are struggling under pension pressures, and they need more tax revenue to sustain them. The fast-growing CBD and medical pot market fits well into meeting those and other needs of the states.ConclusionA lot of media reporting on the Canopy Growth and Acreage Holdings deal has been based upon the assumption recreational pot will inevitably be legalized in the U.S., and in many cases, it's suggested it'll be sooner rather than later.While I understand, from the point of view of a Canadian-based company, that the U.S. is the most desirable international market, but it is highly unlikely the federal government will legalize recreational pot in the near future, if it ever does.For that reason, those interested in Canopy Growth shouldn't make investing decisions based upon expected results from Canopy acquiring Acreage Holdings. It would be a strong catalyst for Canopy Growth if it ever is allowed to happen, but the odds are far more against it than for it, for the reasons mentioned above.I believe it was a mistake for Canopy to target the U.S. market at this stage of growth. Instead it should have focused more on developing a meaningful presence in Europe and some places in South America. It of course has some presence there, but it's apparent to me, such as in Germany, that it hasn't given its full and undivided attention in other global markets.Instead, it has a headline non-deal that may never work out. I think it's a huge mistake to make an investing decision based upon the inevitability of recreational pot being legalized in the U.S. It's far from a sure thing, and if it ever does happen, I think it'll be a lot further out than the market is assuming at this time.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Read more on CGC: * Canopy Growth (CGC) Stock: Buy the Dip or Pump the Brakes? * Canopy: Recent Licence from Health Canada Ain’t Going to Help the Stock * Canopy Growth (CGC) Continues to Struggle to Find Its Identity * Top Cannabis Stocks Under Fire: What’s The Stock Market’s Message? More recent articles from Smarter Analyst: * Aurora Cannabis (ACB) Is Firing on All Cylinders * Will HEXO’s NYSE Transfer Cause Commotion? * Can You Still Trust CannTrust (CTST) Stock? This Analyst Is No Longer Certain That You Can * Tesla (TSLA): Range Anxiety Is All Perception, but Still a Major Hurdle
The week ahead will be an exciting one for the cannabis industry for a number of reasons. First, it'll be a holiday week due to the U.S. Independence Day and Canada Day celebrations on July 4 and July 1, respectively, businesses are expected to have higher sales as cannabis has made its way into all major U.S. and Canadian holidays. Need more cannabis news?