41.31 +0.01 (0.02%)
After hours: 4:18PM EDT
|Bid||41.30 x 800|
|Ask||41.31 x 1400|
|Day's Range||41.24 - 41.80|
|52 Week Range||41.24 - 66.04|
|Beta (3Y Monthly)||0.38|
|PE Ratio (TTM)||12.34|
|Earnings Date||Oct 31, 2019|
|Forward Dividend & Yield||3.36 (8.11%)|
|1y Target Est||54.71|
U.S. e-cigarette maker Juul Labs Inc said on Tuesday its products were not currently available on e-commerce web sites in China, days after it entered the world's single-largest market for tobacco consumption with over 300 million smokers. "While JUUL products are not currently available on e-commerce Web sites in China, we look forward to continued dialogue with stakeholders so that we can make our products available again," the company spokesperson said, without disclosing any reason for the halt of sales. Juul, in which tobacco giant Altria group owns a 35% stake, is facing a regulatory crackdown and increased government scrutiny in the domestic market.
While the vast majority of our Ultimate Stock-Pickers are not dividend investors, a handful of them--Amana Trust Income AMANX , Columbia Dividend Income LBSAX , Oakmark Equity & Income OAKBX , and Parnassus Equity Income PRBLX --focus more heavily on income-producing stocks in their pursuit of investment return. Warren Buffett at Berkshire Hathaway BRK.B has spoken highly of companies that return capital to shareholders and is not against investing in and holding higher-yielding names, with three of Berkshire's top five holdings--wide-moat rated Wells Fargo WFC , Bank of America BAC , and Coca-Cola KO --accounting for about one third of the insurer's equity portfolio and yielding more than the S&P 500. As you may recall from previous articles, when we screen for top dividend-paying stocks among the holdings of our Ultimate Stock-Pickers, we try to find the highest-quality names that are currently held with conviction by our top managers.
Altria Group Inc. (MO), BioMarin Pharmaceutical Inc. (BMRN), Pennant Park Investment Corp. (PNNT), and Rigel Pharmaceuticals Inc. (RIGL) have declined to their three-year lows Continue reading...
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included the iPhone maker, a Big 3 automaker and a restructured industrial company. Bearish calls ...
Cronos Group (NASDAQ:CRON) stock fell 5.2% on Sept. 9 as a result of investors' concerns about the cannabis company's focus on vaping products. Those offerings have come under severe scrutiny in recent weeks, due to the death of six people from lung disease related to their use. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsCronos isn't the only cannabis company to have a vested interest in the success of vaping pens, but at the moment, it appears to be the biggest player taking it on the chin as a result of the recent health scare. If you own CRON stock, now is the time to be thankful that Altria (NYSE:MO) owns 45% of the cannabis company, with an option to buy an additional 10% in the future. Here are three reasons why that's the case. * 7 Discount Retail Stocks to Buy for a Recession Altria Understands Lungs Better Than MostWho would have more knowledge about how our lungs operate than a company whose products are directly responsible for harming them?Altria would not have made a $12.8 billion investment in Juul Labs or a $1.8 billion investment in CRON stock if it didn't understand the health risks associated with vaping. MO has been down this road many times with cigarettes. The fact that President Trump and his administration are trying to crack down on the sale of flavored e-cigarettes, while understandable, isn't really crucial for CRON stock. According to the Center for Disease Control and Prevention, 480,000 Americans die each year due to smoking. That's a staggering amount. However, we haven't seen cigarettes outlawed as a result of that sad situation. In fact, the FDA is currently trying to ban the sale of menthol cigarettes, but the tobacco companies will continue to fight the agency's legal efforts for years to come. Flavored e-cigarettes will likely take a long time to ban. The reality is that Altria understands what's at stake when it comes to vaping and e-cigarettes. They, along with the rest of the industry, are not going to go quietly into the night. Remember, the NRA isn't the only trade group in the U.S. with a powerful lobby. CRON Stock and a Potential MergerIn recent weeks, Altria's been negotiating with Philip Morris International (NYSE:PM), the owners of the Marlboro brand outside the U.S., to reunite after 11 years as separate companies. Last October, before Altria bought up a big chunk of CRON stock, I suggested that Philip Morris should make a play for one of Canada's big cannabis companies. "The tobacco companies were born to manufacture and sell the various by-products of the cannabis plant which includes marijuana and hemp," I wrote at the time. "The fact that only now are they considering a move -- after legalization in Canada -- suggests they've been irreparably scarred by years of tobacco litigation."Cowen & Co. analyst Vivien Azer recently suggested that the crackdown on vaping flavoring might be the nudge CRON and MO needed to officially tie the knot. After an acquisition, CRON would be controlled by a company with $54.7 billion pf annual revenue and $14.3 billion in free cash flow, providing it with plenty of capital to fight any potential opposition to cannabis vaping in the future. Altria Has a Beverage UnitCronos isn't the only cannabis company with a big focus on vaping. Aurora Cannabis (NYSE:ACB) is focusing on vape pens and edibles while ignoring cannabis beverages.I believe that's a mistake. Perhaps not a lethal one, but a mistake nonetheless. The older people get, the less they want to be messing with their lungs,. That's why I think cannabis-infused drinks will win in the end. Altria, although not nearly as involved in the alcoholic beverages industry as it once was, still owns premium wine producer Ste Michelle Wine Estates. In addition, as a result of Anheuser-Busch's (NYSE:BUD) $100-billion acquisition of SABMiller in 2016, Altria owns 10% of BUD stock.It's hard to imagine Budweiser turning down an opportunity to partner with Atria and Cronos to produce cannabis-infused drinks on a global basis. As long as Altria continues to own a big chunk of Cronos Group stock, I don't think investors need to overreact to the latest health concerns surrounding vaping. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Reasons Altriaas Investment in Cronos Group Stock Is Positive for CRON appeared first on InvestorPlace.
, premised in part on vaping’s continued popularity in the US. In a matter of weeks, doctors in 33 US states have connected at least 450 cases of lung disease to e-cigarette use. Alex Azar, his health secretary, blamed them for a vaping “surge” among American school children.
The Trump administration announces a crackdown on electronic cigarettes in an effort to combat the youth vaping epidemic, with Health and Human Services Secretary Alex Azar tweeting that the goal was to “clear flavored e-cigarettes from the market.”
Altria Group stock has had a tough year, and the recent announcement from the White House about plans to potentially ban all e-cigarette flavorings might be a good reason to speed up talks with Philip Morris International, opines Cowen & Co.
Vaping is a growing trend among youngsters, but Trump's recent threat to ban flavored e-cigarettes raises questions. Will traditional cigarette get back its lost glory?
The Trump administration is moving to ban flavored e-cigarettes, but one lawmaker says Trump has not acted quickly enough to combat the risks posed by vaping.
Tobacco stocks erased losses to finish up after the Trump administration said it's preparing to ban flavored e-cigarettes.
President Donald Trump expressed support for negative interest rates on Wednesday, and moved to crack down on vaping as he called it a danger to children.
Cronos Group (NASDAQ:CRON) stock remains overvalued. Despite cannabis sector's summer selloff, CRON stock still trades at a premium to peers. But with recent acquisitions, the company's future prospect may start to meet expectations. Last month's acquisition of several U.S.-based CBD businesses could help bolster the company's growth strategy.Source: Shutterstock But what makes CRON stock a better pick than the rest? Peers such as Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC) are not without their flaws. But both sell at more reasonable valuations.Is there opportunity with Altria Group (NYSE:MO) backed Cronos? Or should investors seek cannabis plays elsewhere? Let's take a closer look at Cronos Group stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What's The Latest at CRON?In August, Cronos Group purchased 4 U.S.-based CBD businesses from Redwood Holding Group. The most notable asset purchased in this deal was the Lord Jones brand of CBD-infused skincare products. In the U.S., marijuana has yet to be legalized on the federal level. But CBD is fully legal. Gaining a toehold in the American market via CBD is just the first step. * Take Buffett's Advice: 5 Vanguard Funds to Buy But Capitol Hill is moving slow on legalization. Without access to banking services, "Big Pot" in the United States remains a pipe dream (for now). This didn't stop Altria Group from making a big bet on Cronos. Altria (parent of Phillip Morris USA and a major investor in vaping giant Juul) made a $1.8 billion investment. This gave the tobacco giant a big seat at the table.The relationship with Altria helps Cronos with their vaping product strategy. But the health effects of vaping have dominated the headlines. However, as InvestorPlace contributor Josh Enomoto wrote on September 10, the "vaping crisis" could cool down over time. But with these challenges, its tough to see a clear path to profitability. With the stock trading at such a high enterprise value/sales ratio, Cronos needs to hit it out of the park to "grow into its valuation". Cronos Remains Extremely OvervaluedCRON stock continues to trade at a premium. The company's enterprise value/sales (EV/Sales) ratio is a staggering 109.9. For comparison, Aurora Cannabis trades at an EV/sales ratio of 51.6. Canopy Growth shares change hands at a EV/sales ratio of 40.1. Tilray (NASDAQ:TLRY) has an EV/sales ratio of 32.9. Aphria (NYSE:APHA) sells at a relatively reasonable EV/sales ratio of 9.8.Is Crono's premium valuation all thanks to Altria? Having America's biggest tobacco company on your side is a plus. But it is no guarantee of U.S. market domination. The deal was highly dilutive for Cronos shareholders. Altria received a slug of warrants along with their investment. These warrants have a strike price of $19/share. This is well above Crono's current price of $11.73/share. But the high amount of warrants outstanding minimizes upside.But this deal gave Cronos plenty of capital. As of June 30, 2019, CRON had CAD $1.6 billion in cash, and CAD $745 million in short-term investments. Even after the recent asset purchases, the company has plenty of money to fuel growth. Additional capital raises are unlikely. The company is operating at a loss. But it is not hemorrhaging money as quickly as its peers. This means downside is limited. But with upside challenges, it is tough to see the value in CRON stock. Look Elsewhere For a Pot PlayI am still waiting for pot stocks to reach lower valuations. But you may be more keen on placing a bet on the cannabis sector. If you are looking for a pot play, look at any other stock but Cronos. The company continues to trade at a mind-boggling valuation. It has a logical strategic partner (a tobacco company). But it remains unclear how this will translate into a market edge.I have been bearish on both Aurora Cannabis and Canopy Growth. But at least both of these companies offer a clearer path to success. Among the other major marijuana stocks, companies like Aphria stand out for their reasonable valuation. * 10 Stocks to Sell in Market-Cursed September It may pay to take your time with marijuana stocks. Valuations could reach more reasonable valuations down the road. But if you are looking for a pot play today, look at anything else but Cronos Group stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Stay Far Away From CRON Stock Until Its Valuation Comes Down appeared first on InvestorPlace.
All kinds of government entities will be lining up against Juul Labs, lawsuits with big awards are coming and who knows what else as MO is in a downtrend with $35 as the next price target.
Investing.com – President Donald Trump said Wednesday he was looking into banning all non-tobacco flavored vaping products from the market. He made the comment to reporters at the White House.
The president announces he is holding a policy discussion on vaping after a mysterious lung disease killed at least six people.
The White House announced that due to number of deaths believed to be linked to vaping, they’re considering a ban on flavored e-cigarettes. Yahoo Finance’s Zack Guzman, Jessica Smith and Sibile Marcellus discuss with BigEyedWish Founder Ian Wishingrad.