48.99 0.00 (0.00%)
After hours: 4:23PM EST
|Bid||48.91 x 4000|
|Ask||49.23 x 2200|
|Day's Range||48.36 - 49.38|
|52 Week Range||42.40 - 66.53|
|Beta (3Y Monthly)||0.23|
|PE Ratio (TTM)||13.31|
|Earnings Date||Apr 24, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||3.20 (6.51%)|
|1y Target Est||56.80|
Canopy growth shares surge following Q3 results. Yahoo Finance's Zack Guzman & Jeanie Ahn, along with 'Unfair Advantage Live' Founder Chris Winfield discuss with NorCal Cannabis CEO Doug Cortina
Companies like Altria Group Inc (NYSE: MO) and Constellation Brands Inc. (NYSE: STZ) are looking to enter the cannabis sector via innovative brands like Canopy Growth Corporation (NYSE: CGC). The cannabis sector is beginning to snowball and attitudes in major markets are rapidly shifting in favor of legalization.
After a fourfold increase in shares of Cronos Group, Inc. (NASDAQ:CRON), the stock is in danger of profit-taking. At some point, shareholders and speculators alike may want to lock in the gains, because the fundamentals have yet to justify the stock's valuation. Short-selling the stock may not make much sense because cannabis firms are attracting more than enough liquidity. As long as there are buyers, the stock could still jump higher despite years of unprofitability. Unprofitable Market, For NowSource: Shutterstock It could take years before hemp is a profitable business. This alone is not a reason to avoid CRON stock since losses just mean the operating costs to expand the business exceeds the revenue. While operating profitability looks good, it still fell. Gross margin in the third quarter was 55%, down from 65% year over year. This is due to a drop in average selling price and higher unit cost of sale for the third quarter. * 7 Financial Stocks With Accelerating Growth Cronos is building new production facilities, though increased production will not be realized in the near-term. This added to the operating expenses, which increased to $7 million, up from $4.9 million last year. Staff hiring also added to costs as the firm filled procurement, IT, sales and marketing and professional and consulting roles.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the third quarter, Cronos lost $7 million, compared to its $1.1 million in income last year. Modestly Good Balance SheetWith a $3.72 billion market capitalization, Cronos' $73 million cash balance total appears small. $44 million of the total is cash, while $29 million is borrowed funds received through a construction loan. Cash flow is also modest at $12.6 million, although it is an increase over the $2.2 million from last year's operating activities. Altria Is the Single Biggest Catalyst to Cron Stock PriceWith all of the absolute value of the company's quarterly results, why is the market willing to bid CRON stock higher since December? Altria Group (NYSE:MO) and Cronos announced on Dec. 7, 2018, that the former would invest a massive $1.8 billion. This commitment is impressive. Prior to this deal, Constellation Brands, Inc. (NYSE:STZ) committed to $4 billion in its investment in Canopy Growth (NASDAQ:CGC) on Nov. 1, 2018. Prior to the Altria deal, CRON stock had peaked at just over $14 and bottomed at close to $6 a share. The investment effectively wiped out the short-sellers.The CRON bears are still holding their bet against the company with the short float at 13.73%. Fundamental Catalysts AheadAltria's 45% ownership in Cronos gives Cronos $1.8 billion in liquidity. Management may now enter various joint ventures that will enhance long-term value for Cronos shareholders. Its COVE brand in Ontario could benefit from higher sales and marketing spend. The company aimed to capture the top 15% of the market, but now has the cash on hand to take an even bigger market share. At the product level, Cronos may develop its product quality and branding before it launches. Still, Cronos' important R&D partnership with Ginkgo for producing culture cannabinoids at commercial scale should do well. Ginkgo is a well-established brand and has a good reputation with its customers. By using a fermentation method, Cronos and Ginkgo may potentially cut the cost of cannabinoid production. Potential HeadwindsInvestors should not weigh the positive catalysts without first considering the risks. A new excise tax applied to medicinal and recreational sales hurt Cronos' ASP (average selling price). In the third quarter, ASP fell by $1, to $7 a gram, when the company absorbed the tax instead of passing it on the consumer. My Takeaway on CRON StockThe spectacular rise in shares of Cronos will have shareholders wondering if gains should get booked now. So long as markets continue to rebound, Cronos stock may not fall. If the company puts the cash to good use and the manufacturing facilities come online, revenue will grow. * 10 Hot Stocks Leading the Market's Blitz Higher Until then, shareholders will have to wait patiently for those strong revenue numbers to come in.Disclosure: As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post As Cronos Stock Skyrockets, Should Investors Be Afraid? appeared first on InvestorPlace.
22nd Century Group (NYSE:XXII) is placing a bet that people will smoke tobacco (and maybe marijuana) even if it doesn't make them high. After a drop in mid January, XXII stock has regained some lost ground to be up 2.41% for the year so far.The company, which is based near Buffalo, NY, has a market cap of $317.2 million. It's on pace for revenue of $19 million when it reports 2018 results next week, up from $16.6 million in 2017 and $12.4 million in 2016. Losses are about equal to the revenue number.The company's technology creates very low nicotine tobacco which has been used in medical research, aimed at finding whether it can help people stop smoking.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA home run for 22nd Century would be bringing such tobacco to market. It's seeking an FDA Premarket Tobacco Application (PMTA) for the purpose. It filed the application in December. * 10 Hot Stocks Leading the Market's Blitz Higher If you're buying 22nd Century stock, you're betting the approval comes through and that the company can sell the product, or at least that management can sell the company. Seeking Highs in the LowsCEO Henry Sicignano has been working this patch of business ground since 2010. At last report he owned 4.09% of 22nd Century, a stake worth $12.8 million. He was previously marketing director for a specialty tobacco company sold to R.J. Reynolds in 2002. In addition to researching low-nicotine tobacco, 22nd Century is researching low-THC marijuana. Because of its low market cap and share price, XXII stock is prone to wild swings based on hype. The spikes lead to short squeezes, then sudden falls in the stock price, and the inevitable flurry of charges of manipulation and resulting lawsuits.While the company is technically based in New York, most of its employees are in Mocksville, North Carolina, outside Winston-Salem, so its applications make news there.If the FDA approves the PMTA, 22nd Century would be allowed to mass produce its tobacco and offer it for sale, possibly as part of a smoking-cessation effort. If you believe the agency's nod is likely, it makes sense to buy the stock, because at a minimum 22nd Century could then become a buyout target for a large tobacco company, like Altria (NYSE:MO).That's the theory, anyway. Pump and Dump on XXII StockIn September, a short seller dubbed "Fuzzy Panda" wrote of suspected Securities and Exchange Commission (SEC) action involving 22nd Century. This may have involved phony articles from people working for Barry Honig, whom the SEC has called a "microcap fraudster" .Investigation reporting website Sharesleuth has accused promoters of operating a "stealth promotion network" on financial web sites. The promoters buy a block of shares, confederates write in praise of the company in question, the stock's price rises, then the shares are dumped.Shares in 22nd Century did indeed rise through 2017, the period where the articles are said to have come out. Shares peaked in January 2018 at almost $4 each. Since that peak they have mainly traded in a range of $2-$3 per share. They opened for trade on February 15 at $2.52. Bottom Line on 22nd Century StockA fool and his money were lucky to get together in the first place. Thus, I avoid low-valuation stocks that can be subject to manipulation. It is better to get rich slowly than to go broke all at once. * 9 U.S. Stocks That Are Coming to Life Again If an idea is good, venture capitalists or private equity people will lead the company forward to a public offering at a reasonable valuation, based on revenue and earnings.A company with reported revenue of $19 million does not deserve a market cap of $313 million. An exception may be made for a drug stock that is about to hear something great from regulators.I may be wrong, but I don't believe that to be the case here.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post Promise of Low Nicotine Fires Up 22nd Century Stock As Trading Scrutinized appeared first on InvestorPlace.
Marijuana stocks and related ETFs caught investors' attention last year, courtesy of its mysterious rally in mid-2018 on Canada's legalization of recreational marijuana in October. Let's take a look at whether the space will be able to maintain its rally in 2019.
Altria Group Inc (NYSE: MO ) has begun providing limited retail services to Juul Labs in accordance with the firms’ service agreements . The relationship’s got analysts hooked. The Rating Wells Fargo analyst ...
The Zacks Analyst Blog Highlights: Caterpillar, Netflix, Philip Morris International, Altria and Verizon
After being beaten down in the final quarter of 2018, pot stocks staged a nice comeback at the start of this year on the renewed appeal for riskier assets. Here's why ETFs are riding high this year.
Whether its eating a gooey, chocolatey brownie or taking a few hits off a freshly rolled joint, it???s common knowledge that a lot of people like to get high. Many investors, however, have yet to "light up." What are the best marijuana stocks out there right now?
Why Pyxus International Stock Rose Over 33% after Its Q3 Results(Continued from Prior Part)Third-quarter EPSCompared to its EPS of $9.83 in the third quarter of fiscal 2018, Pyxus International (PYX) reported EPS of -$0.56 in the third quarter of
Why Pyxus International Stock Rose Over 33% after Its Q3 Results(Continued from Prior Part)Third-quarter revenue In the third quarter of fiscal 2019, Pyxus International (PYX) posted revenue of $524.5 million, a rise of 9.8% from $477.8 million in
Why Altria Is Betting Big on JUUL Labs and Cronos Group(Continued from Prior Part)Altria’s valuation multiple Altria Group (MO) posted its fourth-quarter earnings on January 31. During the quarter, the company’s EPS met analysts’ expectations.
Why Pyxus International Stock Rose Over 33% after Its Q3 ResultsThird-quarter performance Pyxus International (PYX) posted its fiscal 2019 third-quarter earnings results after the market closed on February 11. In the quarter, which ended on December
For the fourth consecutive quarter, Philip Morris (NYSE:PM) beat earnings estimates. The New York-based international tobacco company reported higher-than-expected numbers on both the top and bottom lines. Although both profits and revenue fell on a year-over-year basis, investors reacted well to the news, bidding PM stock higher each of the following two days. * 7 Forever Stocks to Buy for Long-Term Gains However, with its high dividend, most investors focus on the payout. The generous yield, along with the 11-year streak of increases, has drawn investors into Philip Morris stock since the beginning. However, investors may want to approach PM stock dividend cautiously, as it faces an unexpected danger. Earnings, Revenue Beat Boosted PM StockFor the fourth quarter, the company reported non-GAAP earnings of $1.25 per share. This came in eight cents ahead of analyst expectations. Despite the higher-than-expected earnings, it still represents a year-over-year drop as PM earned $1.32 per share in the same quarter last year. Revenues of $7.5 billion also beat estimates by $110 million. Still, they fell by 9.5% from last year's $8.29 billion in the year-ago quarter.InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestors took the news well as PM stock rose by about 1.6% in Thursday trading. It increased by an additional 4.2% on Friday.Much like its former parent Altria (NYSE:MO), PM stock has dealt with the poor reputation and the marginalization of its core product. However, PM tends to maintain its profit growth. The company has also introduced IQOS, a "heat, not burn" smokeless product. It plans to ultimately replace cigarettes with IQOS in the coming years and that may boost profits as well.PM has also maintained steady growth is in its dividend. The company has increased the payout every year since its split off from Altria in 2008. The annual payout for this year will amount to $4.56 per share. This gives today's buyer a yield of about 5.7%.The PM stock price has grown by only 150% of its value since the March 2009 low. Since this significantly lags the 345% increase seen in the S&P 500 over the same period, most stockholders own PM for its dividend. Here investors need to exercise caution. Beware the Payout RatioActivists have long targeted tobacco and have increasingly disliked PM's smokeless alternative. However, the most immediate danger to PM does not lie there. The near-term threat with PM stock lies in its dividend payout ratio -- the percentage of net income paid out in dividends.The dividend payout ratio has risen to over 85%. Consumer defensive issues like Philip Morris stock tend to maintain higher payout ratios. However, even in PM's sector, they typically remain well under 85%. The company's reduced profit should cause concern. If that pace were to continue, PM could place itself in a position where it pays out more in dividends than it earns.Fortunately, analysts believe it can avert this fate. Wall Street forecasts an average growth rate of about 6% per year over the next five years. Alternative lines of business also remain an option. IQOS receives most of the attention in that area. Also, much like Altria invested in Cronos (NASDAQ:CRON), it could enter the cannabis sector. Philip Morris has so far given no indication it has such plans.Still, unless PM sees higher levels of profit growth, dividend growth should remain a major concern. If Philip Morris reports lower revenues and profits, I would recommend getting out before the inevitable dividend cut. The Bottom Line on PM StockThe dividend payout ratio on PM stock poses a more immediate threat to the equity than the reputation of its core product. Philip Morris continues to earn profits. However, the company reported lower profits than last year. This creates a precarious situation, as the company tends to increase its dividend annually and pay out nearly all of its profits in the form of dividends. Any interruption to these increases will devastate PM stock. * 12 2018 Winners That Will Be Big Ol' Losers in 2019 For now, analysts expect profit growth to resume. It has invested heavily in its smokeless product and, like its U.S.-focused counterpart, it could also enter the cannabis market. However, profit growth has become paramount. If profits continue to fall, investors need to smoke PM stock out.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post An Unexpected Danger Could Smoke Philip Morris Stock appeared first on InvestorPlace.
Polls show that most Americans favor legalization, and studies on the use of medical marijuana have been promising. Should you invest in cannabis now?
The tobacco giant sold $11.5 billion of senior unsecured bonds in seven parts, according to people with knowledge of initial discussions. The company, famous for its Marlboro cigarettes, is diversifying into areas away from its tobacco roots in search of higher-growth businesses. It’s paying $12.8 billion for a 35 percent stake in e-cigarette maker Juul Labs Inc., and recently invested $1.8 billion in Canadian pot company Cronos Group Inc. to diversify into the cannabis industry.
Why Altria Is Betting Big on JUUL Labs and Cronos Group(Continued from Prior Part)The details of the investment On December 7, Altria Group (MO) announced that it had invested $1.8 billion in Cronos Group (CRON) for a 45% stake in the company, which
Moody's Investors Service ("Moody's") today assigned an A3 rating to Altria Group Inc.'s ("Altria") USD senior unsecured note offering. Altria's A3 rating is supported by its market position as the largest tobacco company in the United States by sales, its top brands, and its solid and expanding investment portfolio of tobacco and tobacco related products. It also reflects Altria's strong and stable cash flow, underpinned by the relatively inelastic nature of tobacco demand, with positive price/mix continuing to offset volume declines.
Why Altria Is Betting Big on JUUL Labs and Cronos Group(Continued from Prior Part)Altria’s investment On December 20, Altria Group (MO) announced a $12.8 billion investment in JUUL Labs for a 35% stake in the e-cigarette company. According to the
The company on Tuesday is set to issue $11.5 billion of senior unsecured bonds in seven parts, which would be the second-largest corporate deal of 2019 behind Anheuser-Busch InBev NV. AB InBev, which has nearly identical(1) credit ratings, priced its 40-year bonds to yield 275 basis points more than the benchmark. All else equal, Altria should have received at least as favorable pricing, considering that the average spread on corporate bonds has persistently narrowed in recent weeks since reaching a 30-month high at the start of the year, Bloomberg Barclays data show.