|Bid||0.2500 x 0|
|Ask||0.2700 x 0|
|Day's Range||0.2500 - 0.2850|
|52 Week Range||0.1400 - 4.2200|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 25, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Marijuana producer Hexo Corp. led cannabis stocks down Monday, falling 21% after the company reported earnings that were hit by write-downs.
By John Jannarone, IPO Edge High Times is now vertically integrated. Formally known as Hightimes Holding Corp., the owner of the eponymous magazine and operator of Cannabis Cup events, announced it has a signed letter of intent to acquire California-based cannabis holding company Humboldt Heritage Inc. along with its subsidiaries Humboldt Sun Growers Guild and […]
The selloff in the market and in Canopy Growth (NYSE:CGC) stock both continue. Markets plunged again earlier this week, and Canopy stock hasn't been immune to the selling pressure. Now, shares trade back where they did in 2017.Source: Jarretera / Shutterstock.com As I've argued over the past few weeks, investors need to keep their cool. This selloff has not been easy and certainly has not been fun. But over time, the economy and the markets will recover.In the meantime, however, the volatility is dispiriting. However, as I've told subscribers of my Cannabis Cash Weekly service, in these environments investors sometimes have to step back and let the chaos play out.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTaking that step back, the opportunity in CGC stock becomes more clear. The long-term growth opportunity in cannabis is delayed -- not eliminated. Canopy is the industry's leader, and should remain so. In fact, it may emerge with an even stronger position. * 10 Stocks to Invest In for a Post-Coronavirus Whipsaw Canopy isn't going anywhere. This, too, shall pass -- and when it does, CGC stock will rally sharply. Canopy Cuts BackEven before panic gripped the markets, it was becoming increasingly clear that the cannabis industry was headed for a shakeout. And that shakeout is almost guaranteed at this point.In the sector as a whole, there is too much debt and too much capacity. Canopy chief executive officer David Klein made precisely that point in an interview on Feb. 14. "There's not a lot of market demand for cannabis production facilities," he told Yahoo! Finance. "There's a lot of capacity in Canada and no logical buyers."That capacity is why Canopy announced earlier this month that it was closing two facilities in British Columbia. Furthermore, a greenhouse project in Ontario also is being canceled. Canopy isn't throwing good money after bad.Wall Street largely cheered the move -- for good reason. It cuts Canopy's costs, and in turn, speeds its path toward profitability. It also keeps the company from participating in "race to the bottom" pricing in wholesale cannabis.It's also a decision many other cannabis companies won't be able to make. An Industry Shakeout LoomsCanopy can make that decision because of its fortress balance sheet. In 2018, Constellation Brands (NYSE:STZ,NYSE:STZ.B) invested some $4 billion into Canopy Growth.Much of that money has been spent. Canopy has made acquisitions, and spent heavily to build out production assets. In fact, it's clear in retrospect that previous management spent too much. That's a key reason why Constellation sent Klein -- formerly its chief financial officer -- to take the top spot at Canopy.However, Canopy still has a good chunk of that cash remaining. As of Dec. 31, the company had 2.3 billion CAD (about $1.6 billion) in cash on its balance sheet. With losses coming down and long-term debt of just 536 million CAD ($373 million), the company is in excellent financial shape.To put it simply, Canopy isn't going bankrupt -- but other producers will. There's a real chance the equity in Aurora Cannabis (NYSE:ACB) gets wiped out, one reason I've long recommended even cannabis bulls avoid that name. Moreover, MedMen Enterprises (OTCMKTS:MMNFF) had to call off its acquisition of PharmaCann -- likely due to financing worries. Its OTC stock price -- just 19 cents -- shows its desperate state.The news is just as bad, if not worse, for many smaller, private operators. Those companies don't have the cash to weather store closures or any short-term effects.Canopy, however, does. And that positions it well going forward. How CGC Stock Can BenefitCertainly, a worldwide pandemic is not how anyone hoped the cannabis industry would become more rational. But it's also likely that the response to the coronavirus from China simply will be the catalyst, not the cause. Given debt levels and overcapacity, many smaller operators were going to fail regardless.That said, Canopy would benefit either way. In fact, a recent transaction shows how. Last week, Canopy and TerrAscend (OTCMKTS:TRSSF) entered into a loan agreement. Canopy is lending TerrAscend 80.5 million CAD, backed by TerrAscend's assets.The loan has an interest rate of 6.1% annually over the next decade -- but that's not the prize. Canopy also received more than 17 million warrants to buy TerrAscend shares, most of them at an exercise price of 3.74 CAD per share.If TerrAscend, which currently trades below 2 CAD, posts a huge rally, Canopy will get its money back while also owning a nice chunk of the company at an attractive price.If it doesn't, though, Canopy has first claim on its assets, brands, and retail operations.This kind of savvy deal is what Klein was hired to make. And it highlights the opportunities Canopy will have for the next few years. The company can patiently wait out the upheaval in its industry, and pick its spots to make investments that can drive significant value.Of course, that's exactly what investors should be doing right now. As they do so, they should give at least a long look to Canopy Growth stock.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 of the Best Long-Term Stocks to Buy in a Bear Market * 7 "Perfect 10" Healthcare Stocks to Buy Now * Where the FANG Stocks Sit in This Wild Market The post When the Smoke Clears, Canopy Growth Stock Will Be a Winner appeared first on InvestorPlace.
Cannabis retailer MedMen Enterprises Inc. reported a widening net loss Wednesday as the company reigns in its costs and restructures the business, selling off assets outside of California, its largest market. MedMen stock was halted near the end of the regular trading session. The embattled weed company logged a fiscal second-quarter net loss attributable to shareholders that doubled to $40.6 million, which amounts to 9 cents a share, versus a loss of $18.7 million, or 23 cents a share in the year-ago quarter. The company reported a comprehensive loss from continuing operations of $74.8 million, widening from $63.2 million in the year-ago period. MedMen revenue rose 11% sequentially to $44.1 million, and 50% from the year-ago quarter. Analysts expected revenue of $49.5 million and model fiscal third-quarter sales of $56.7 million. The company said that it had sold a cultivation and manufacturing facility in Illinois for $17 million and highlighted an 11% sequential reduction in its selling, general and administrative expenses. MedMen stock gained 1.3% in the regular session Wednesday, as the S&P 500 index fell 0.4%. The Cannabis ETF fell 1.5% in Wednesday trading.
Some of the biggest cannabis companies in the U.S. and Canada could burn through their cash balances in a matter of months unless they’re able to raise funds or cut spending, according to research from the boutique investment banking firm Ello Capital. As pot stocks plunged over the past year, big spenders like (WEED) (ticker: CGC), (ACB) (ACB), and (TLRY) (TLRY) have found that capital markets have yanked the welcome mat and forced the pot producers to cut costs. “The cannabis industry is currently entering a new period where companies are focusing on corporate governance and operational efficiency,” says Ello chief executive Hershel Gerson.
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), is investigating claims on behalf of investors of MedMen Enterprises Inc. (OTC: MMNFF). Such investors are advised to contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (firstname.lastname@example.org), or visit https://www.ksfcounsel.com/cases/otc-mmnff/ to learn more.
The chief executive’s lavish spending antagonized colleagues and torched bonfires of cash, dropping MedMen stock nearly 90% in the past year.
Cannabis retailer MedMen Enterprises Inc. said Friday that Chief Executive and co-Founder Adam Bierman is stepping down from his role on Feb. 1. The company said it will consider internal and external candidates in seeking a CEO replacement. Bierman will remain on the board, including as part of the board to be elected at the company's coming shareholder meeting. But he has agreed to surrender all of his class A super voting shares back to the company. Co-Founder Andrew Modlin granted a proxy for all of his super voting shares to the company's Executive Chairman Ben Rose until December 2020, after which he will give them back to the company. That will leave the Los Angeles-based company with just one class of shares, the class B subordinate voting shares which give the holder one vote. Shares rose more than 12% on the news but are down 87% in the last 12 months, while the ETFMG Alternative Harvest ETF has fallen 52% and the S&P 500 has gained 21%.
U.S. marijuana retail chain MedMen Enterprises Inc. has been offering vendors shares in its company as payment for cannabis products amid a cash crunch in the industry.
Deals Signed with Holders of Dispensary Licenses in Los Angeles and Las Vegas By John Jannarone High Times announced it will open two flagship retail stores offering cannabis under dispensary licenses, giving the strongest brand in the marijuana industry a new engine of growth as it prepares for a public listing. Formally known as Hightimes […]
After a rough stretch for the sector, marijuana stock bargains abound; here are 8 that stand out, asserts Timothy Lutts, a leading specialist in the cannabis sector and editor of the Cabot Marijuana Investor.