50.40 +0.03 (0.06%)
After hours: 6:55PM EST
|Bid||50.32 x 4000|
|Ask||50.47 x 900|
|Day's Range||50.01 - 50.80|
|52 Week Range||42.40 - 66.53|
|Beta (3Y Monthly)||0.23|
|PE Ratio (TTM)||13.69|
|Earnings Date||Apr 24, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||3.20 (6.53%)|
|1y Target Est||56.80|
Cronos Group Inc. (CRON) (CRON.TO) (“Cronos Group” or the “Company”) announced that at a Special Meeting held today, the Company’s shareholders overwhelmingly approved the previously announced strategic investment agreement with Altria Group, Inc. (MO) (“Altria”). Pursuant to the agreement, at closing, Altria will make an approximately C$2.4 billion equity investment in Cronos Group (the “Transaction”) on a private placement basis in exchange for common shares (the “Shares”) in the capital of the Company.
Tobacco giants Altria Group Inc (NYSE: MO ) and Philip Morris International Inc. (NYSE: PM ) are raising prices on all of their cigarette brands, and investors should take this as a positive, according ...
Shares of Canopy Growth (NYSE:CGC) went parabolic to start 2019, as the leading Canadian cannabis company benefited from a series of industry-wide and company-specific catalysts which further illuminated a pathway towards big profits at scale. Year-to-date, CGC stock is up roughly 75%.Source: Shutterstock But stocks don't go up in straight lines forever. Indeed, CGC stock has experienced some weakness as of late. There were some margin concerns in the company's recent earnings report. There was news that the CFO is leaving the company later this year. And, there was a rare downgrade from Wall Street.All together, CGC stock currently sits about 8% off its 2019 highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Healthy Dividend Stocks to Buy for Extra Stability This recent weakness isn't anything to be too concerned about. CGC stock had come very far, very fast and had jumped into technically overbought territory. It was due for a natural pullback. Now, it's due for some natural consolidation in the $40 range.Importantly, though, CGC stock is not fundamentally overvalued. Recent developments and quarterly numbers underscore that Canopy is on track to potentially become a $100 billion company one day. As such, the long-term potential ($16 billion market cap today) is enormous, with mitigated enough risk to warrant sticking with CGC stock for the long haul.Ultimately, recent weakness is just a bump in the road and this road will eventually take CGC stock much higher. Canopy Stock Was Due for a PullbackOne of the truest statements in the entire investment world is that stocks don't go up in straight lines forever. That which goes very far, very fast, will ultimately pull back. That doesn't say anything about the nature of the stock or the company. It's simply the theory of financial gravity -- buyers won't out-buy sellers forever.Recent weakness in Canopy stock should be perceived through this lens. At one point in time, Canopy stock was up a whopping 90% year to date. That point in time was Jan. 28, meaning shares of Canopy had rallied 90% in less than a month. That is a textbook definition of a stock going very far, very fast.Granted, the big rally was rooted in fundamentals. Namely, Canopy flexed its muscles as the leader in the global cannabis market by expanding global distribution, pushing into the U.S. hemp market, and reporting record third-quarter numbers. Still, up 90% in less than a month, CGC stock was overbought. Regardless of the fundamentals, it needed to cool off.Now, it's cooling off. It will continue to cool off for the foreseeable future. Investor sentiment needs to calm down and become less euphoric. The moving averages need to catch up. Investors should expect CGC stock to be range bound between $40-$50 for a few weeks.Thereafter, CGC stock will resume its rally higher. Why? Because the fundamentals continue to point to huge upside in a long-term window. The Fundamentals Remain HealthyThe long-term bull thesis on CGC stock is simple.Canopy Growth is the head-and-shoulders leader in the now fully legal Canadian cannabis market and will use that leadership position and a $4 billion investment from and partnership with global alcoholic beverage giant Constellation Brands (NYSE:STZ) to become one of, if not the, biggest player in the global cannabis space. This space projects to be a several-hundred-billion-dollar industry within the next 10 to 15 years as fully legal becomes the global norm. As such, Canopy reasonably projects to do several billion dollars in revenues and profits within the next 10 to 15 years, and that will easily translate into a $100 billion-plus market cap for CGC stock using market average multiples.All appears to be intact with this long-term bull thesis at the current time.Recent quarterly numbers suggest that Canopy is still the dominant force in the Canadian cannabis market. Canopy reported over $60 million in net revenue in the third quarter. That is, far and away, the largest revenue quarter any Canadian cannabis company has reported. Ever. It's also up nearly 300% year over year. Canopy also sold over 10,000 kilograms of cannabis during the quarter -- far above what peers are reporting and up 350% year over year. Clearly, Canopy is still dominating the Canadian cannabis market.Meanwhile, Canopy is the first Canadian cannabis company to make a big push into the U.S. hemp market with operations set to proceed in New York. Canopy is also using its cash to acquire multiple smaller players, further increasing its reach and portfolio of cannabis brands. The company is also making big moves in Peru, Poland and the United Kingdom.Overall, everything is moving in the right direction for Canopy. The company is continuing to dominate fully legal cannabis markets, is making big moves into newly legal cannabis markets and is expanding its reach and portfolio through acquisitions. In other words, Canopy looks like it's in the early stages of becoming the Constellation Brands or Altria (NYSE:MO) of the cannabis industry.So long as that thesis remains true, fundamentals will keep CGC stock on a long-term uptrend. Bottom Line on CGC StockCanopy Growth is a long-term winner going through some near term consolidation. In the big picture, this near-term consolidation is healthy. * 10 Hot Stocks Leading the Market's Blitz Higher CGC stock will resume its uptrend later in 2019 as more fundamental catalysts arrive (strong quarters, further legalization, deeper global distribution, Wall Street upgrades, so on and so forth). Until then, buying on weakness and holding for the long haul remains the winning strategy.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Cheap Stocks to Buy Right Now * 5 Stocks Under $5 to Buy Before They Soar * 5 Consumer Stocks to Cash Out Of Compare Brokers The post Donat Stress Recent Weakness in Canopy Growth Stock appeared first on InvestorPlace.
Share of Altria Group Inc. jumped 3.3% toward a 2-month high in afternoon trade Wednesday, and have recovered nearly everything they lost since announcing a $12.8 billion stake in e-vapor company Juul Labs Inc. Analyst Bonnie Herzog at Wells Fargo said she is "incrementally more confident" in Altria's strategy of maximizing returns on its core brands, including Marlboro, while pursuing new avenues of growth in e-vapor and cannabis, through its $1.8 billion investment in Cronos Group Inc. , following the company's presentation at the Consumer Analyst Group of New York (CAGNY) conference. She reiterated her outperform rating and $65 stock price target. The stock closed at $51.40 on Dec. 19, just before Altria announced is Juul investment, then fell to a more than 5-year low of $43.33 on Jan. 24. Since then, the stock has soared 17%. in comparison, the SPDR Consumer Staple Select Sector ETF has advanced 5.2% since Jan. 24 and the Dow Jones Industrial Average has gained 5.7%.
Altria Group, Inc. is participating in the Consumer Analyst Group of New York Conference in Boca Raton, Florida today. Howard Willard, Altria’s Chairman and Chief Executive Officer, and other members of Altria’s senior management team will highlight Altria’s recent strategic investments, the current regulatory environment and Altria’s plans for its wholly-owned tobacco businesses and diverse business ...
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 email@example.com 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
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