|Bid||4.1900 x 4000|
|Ask||4.6500 x 800|
|Day's Range||4.0600 - 4.2800|
|52 Week Range||3.9700 - 8.4400|
|Beta (3Y Monthly)||2.34|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
When looking at the top 10 cannabis companies by market cap, they only have a 3% minority representation rate. Out of the 65 cannabis board members we reviewed, only 2 were minorities. One of those board members, OrganiGram Holdings Board Member Dexter John, joins Yahoo Finance's Zack Guzman and Heidi Chung to discuss.
Canopy Growth (NYSE:CGC) has bounced back by 16.3% so far in September after a brutal sell-off over the past few months. I recommended Canopy Growth stock back on Au. 30. I felt the stock had been oversold given how little its fundamental picture has changed.Source: Shutterstock A brand new report on Canadian cannabis market share seems to confirm the idea that Canopy is dominating the nascent Canadian market. Experienced investors know a first-mover advantage is extremely valuable in the long-term.One of the biggest reasons why CGC stock has dropped in the past few months is because its losses have been heavier than expected. However, the early market share numbers suggest Canopy's strategy of aggressively investing in ramping up its business is already paying off.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The NumbersBank of America found Canopy has a 25% market share of all cannabis listings in Canada. The study included 1,980 listings, 101 brands and 39 different cannabis producers. * 10 Stocks to Sell in Market-Cursed September Canopy Growth Corp has the largest share of the Canadian market by a long shot. Analyst Christopher Carey says Canopy's market share is roughly double the 13% market share of its closest competitors, Aurora Cannabis (NYSE:ACB) and Organigram (NASDAQ:OGI).Carey says establishing that first-mover advantage is critical."Establishing distribution - early and big - can be significant in creating long-term market share moats for a business competing in new consumer categories prone to fragmentation," he said.Unfortunately, the market share study wasn't all good news for Canopy Growth stock. The 25% "share of listings" represents product already on shelves throughout Canada. Bank of America also looked at "sell-in," or total retail purchases of cannabis. Sell-in represents the future share of listings. In that statistic, Canopy has dropped to second place with 22%, trailing Aurora at 27%. The Future of CannabisCarey says investors shouldn't get too worried about Canopy losing sell-in share. In the June quarter, Canopy's harvest jumped 183% quarter-over-quarter, much of which was hot-selling THC flower.Carey is expecting this spike in harvest will translate to a 33% quarterly increase in Canopy sell-in in the fiscal second quarter of 2020. That big push could push Canopy back ahead of Aurora in sell-in share.Obviously having that top market share spot is ideal, but as long as Canopy remains at or near the top, investors should be rewarded in time. Certainly, investors want Canopy Growth to be the Coca-Cola (NYSE: KO) of cannabis, but it will be just fine if Canopy Growth stock ends up the PepsiCo (NASDAQ: PEP) of Canadian cannabis.In fact, PEP stock has generated a total return of more than 2,630% over the past 30 years. KO stock has a total return of 2,570% in that time. How to Play Canopy Growth StockThe latest Canadian market share numbers were certainly good enough to keep Carey in the bull camp when it comes to CGC stock."Canopy remains a company, if a still imperfect story, with a chance at becoming a leading global player in cannabis, especially given its industry leading [balance] sheet and partnership," he said.Bank of America has a "buy" rating and $27.66 price target for Canopy Growth stock.If you are a cannabis investor that believes the industry is just getting started, I think you can't go wrong owning Canopy Growth stock. My only recommendation would be to hedge your bets by owning ACB stock and at least two or three other cannabis stocks as well.As much as you love Canopy Growth stock and think Canopy will end up as the Coke or Pepsi of cannabis, it is still extremely early in the cannabis game. Especially in the event of U.S. legalization, there will be plenty of demand to support multiple market winners.It's likely most of the smaller names can't beat out Canopy Growth Corp and Aurora directly. But they might make appealing buyout targets down the line.I would recommend all cannabis investors buy Canopy Growth stock, ACB stock and at least two more of their favorite cannabis plays for a more diversified approach to the market.As of this writing, Wayne Duggan 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 Canopy Growth Stock Needs to Be One of Your Main Cannabis Plays appeared first on InvestorPlace.
After a weak couple of months, cannabis stocks rallied in the first week of September . That rally seems to have stalled so far in the second week of the month. S3 Partners analyst Ihor Dusaniwsy said ...
Organigram Holdings Inc. (NASDAQ: OGI ) (TSX: OGI) said Monday it has obtained approval from Health Canada for the licensing of 17 cultivation rooms under the Cannabis Regulations. The licensing of these ...
Organigram Holdings Inc. (OGI) (OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce that effective September 6, 2019 it has received Health Canada’s approval for the licensing of 17 additional cultivation rooms under the Cannabis Regulations. The new cultivation rooms represent approximately 15,000 kg/yr1 of increased target production capacity.
Cannabis ETFs the ETFMG Alternative Harvest ETF and the Horizons Marijuana Life Sciences Index ETF were up 2.0% and 1.7%, respectively, at 1:20 PM today.
Shares of OrganiGram Holdings Inc. rose 2.3% in morning trading Thursday, after Oppenheimer analyst Rupesh Parikh started research coverage of the Canada-based cannabis company, with a perform rating. Parikh did not issue a stock price target. At Oppenheimer, a perform rating means the analyst expects the stock to perform "in line" with the S&P 500 within the next 12-to-18 months. "Over the past few quarters, the company has executed quite well generating positive EBITDA [earnings before interest, taxes, depreciation and amortization], which represents a standout performance amongst Canadian players," Parikh wrote in a note to clients. "Early success in the Canadian market coupled with above-peer financial delivery gives us confidence in the company's ability to further ramp from here." However, he has a "muted" outlook for the stock in the near term, given industry headwinds, elevated analyst forecasts and increased risks associated with the advanced products launch given recent adverse press on vaping. The Nasdaq-listed stock has tumbled 39.8% over the past three months, while the ETFMG Alternative Harvest ETF has dropped 21.7% and the S&P 500 has gained 5.4%.
Analysts expect OrganiGram to report revenues of 96.9 million Canadian dollars in fiscal 2019 and 206.5 million Canadian dollars in 2020.
Organigram Holdings Inc. (OGI) (TSX VENTURE: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce that it has received final approval for the listing of its common shares on the Toronto Stock Exchange (“TSX”).
If you don't own these up-and-coming small companies in your investment portfolio yet, you could be missing out on a big opportunity for market-beating returns.
The official fiscal Q4 numbers from Aurora Cannabis (NYSE:ACB) haven't been reported yet. But, if Tuesday's 10% pop of ACB stock in response to some preliminary figures is any indication, investors are expecting mostly good results.Source: Shutterstock The primary catalyst for the jump of ACB stock was the increase of the company's revenue and volume outlook. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The cannabis company had previously suggested that it would sell about 25,000 kilograms of legal marijuana during the three-month stretch ending in June, translating into cannabis revenue of somewhere between C$90 million and C$95 million. On Tuesday, ACB raised its volume guidance to a range of 25,000-30,000 kilograms, translating into a top-line outlook of between C$100 million and C$107 million.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat still shouldn't be enough to pull the company out of the red. It may not even be enough to keep Aurora stock price moving higher; Aurora stock price was already peeling back from its intraday high on Tuesday, and it fell yesterday. Any further glimmer of hope, though, may be enough to spark a bullish run by ACB stock. Slowly But SurelyAlthough most cannabis companies haven't reported their Q2 numbers yet, the figures the marijuana industry have supplied this earnings season have been encouraging.Aphria (NYSE:APHA), for instance, reported a profit, which is rare for young cannabis companies. As a result, Aphria became, along with the relatively obscure OrganiGram Holdings (NASDAQ:OGI) , two of the few profitable cannabis companies. Better known marijuana companies like Canopy Growth (NYSE:CGC) and the aforementioned Aurora Cannabis are still losing money, despite their enormous sales growth.Most of Aphria's operating profit, however, stemmed from its acquisition of a distributor, CC Pharma. Without that deal, the company may have reported a quarterly loss.Still, the industry and most of its individual components are making solid forward progress as Canada's legal pot industry continues to get off the ground.Aurora's expected loss of $51.4 million for the quarter that ended in June is less than the company's loss of $66 million during the same period a year earlier. Perhaps more importantly, the figure was more or less in-line with the $49.7 million loss it reported for the previous quarter.The company's anticipated loss of 5 cents per share of ACB stock for the June quarter is notably better than its 15 cents per share loss during the same period in 2018.That's all part of a broad trend that has Aurora on track to swing to a net profit during Q2 of calendar 2020. The Price Action of ACB Stock Suggests SkepticismBut can we trust that analysts have foreseen every contingency? And will the market wait another year for profits that aren't guaranteed?There is no clear answer to either question.The expected move into the black by ACB next year should be viewed with a healthy amount of skepticism.Assuming the price of cannabis holds steady, Aurora may well start cranking out operating earnings in 2020. Nothing kills prices, however, more than overproduction based on the assumption that pricing power can withstand any degree of supply.Just ask Micron Technology (NASDAQ:MU), which once again found itself trapped by a memory chip glut that it helped create. Ask homebuilders about the mismatched supply and demand of 2007. Ask oil and gas drillers about excessive prospecting in 2013.In other words, never say never. Indeed, although current and projected cannabis prices firmed up through July, they are far from being on a firm foundation.Meanwhile, it's unlikely investors who've already embraced marijuana mania will be willing to stick it out -- fully -- in the absence of clear proof that Aurora Cannabis will indeed become permanently viable. The fact that ACB stock hasn't actually made any net progress since late 2017 speaks volumes about the lack of real confidence in its future, even though it has never been closer to true profitability. Click to Enlarge The Outlook of ACB StockThe cannabis craze took hold of investors about a year before most of these companies were ready to deliver on the hype. Struggling to live up to lofty expectations, these marijuana companies have struggled lately. ACB stock has been no exception.The worst may not be over, though.We're nearing a critical gap between the last stage of marijuana mania and the first real evidence that the legal pot business can be profitable.How long that phase will last isn't clear. But it's highly likely that the Aurora stock price will need to suffer one last capitulation before the decks are cleared for an advance that's more fully driven by its fundamentals.In recent years, several manias have exhibited a similar pattern, including solar mania in 2013 and the crypto craze that crashed and burned last year. Both ideas have merit, but their profitability wasn't part of the conversation at the time. All investors knew about them was "buy now," and they paid the price for being too early.So investors should tread lightly with marijuana stocks at this point, but they should be ready to buy them when it's scary to do so.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post Aurora Is on Track, But ACB Stock Isn't Ready to Run Yet appeared first on InvestorPlace.
After Thursday's close, cannabis company Aphria (NYSE:APHA) reported an actual net profit for its recently-completed quarter, catapulting Aphria stock higher to the tune of 30% on Friday. The numbers were posted even before the echoes of industry-wide writedown concerns for other legal marijuana companies had stopped ringing.APHA is something of an industry outlier. Most of the company's rivals have been, and will likely continue to, bleed money as a result of making huge acquisition bets that consume time and money beyond a deal's price tag. One notable exception is a largely-unknown OrganiGram Holdings (NASDAQ:OGI), which has been normally turning a profit for a year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 of the Most Shorted Stocks in the Markets Right Now Nevertheless, Aphria's quarter offers up a glimpse of what could be -- and arguably should be -- the future for most of the most recognizable names in the business. These other outfits just need to start the engines on all the assets they have been gathering, but are not yet utilizing.Of course, there's a big footnote that has to be added to any exploration of these per-share results for APHA stock. Aphria Quarterly ResultsIt was a breath of fresh air … almost.For the quarter ending in May, Canada's Aphria booked record-breaking net revenue of C$128.6 million, up nearly 1000% on a year-over-year basis, turning C$15.8 million of that into net income. Granted, a year ago, recreational marijuana had not yet been legalized in Canada, and the company made a key, accretive acquisition in the meantime. The top line was still up 75% from the previous quarter's tally, however -- boosted by slightly-improved prices -- and a profit is still a profit.This particular profit, though, somewhat taints the now-seemingly unstoppable Aphria stock.Of that C$128.6 million in revenue Aphria produced, C$99.2 million of it was driven by the January acquisition of German medical marijuana distributor CC Pharma, and categorized as distribution revenue. Recreational marijuana sales, although up an impressive 158% year-over-year, still only rolled in at C$18.5 million. It's possible that without the addition of CC Pharma, Aphria would have still been in the red for its recently ended quarter.The adjusted EBITDA from distribution operations was actually a negative 3.9 million, while the company's adjusted total EBITDA was only C$209,000.If nothing else, credit must be given for making a savvy acquisition that's already bearing fruit. Other cannabis outfits continue to pay a steep price (literally and figuratively) for deal-making that's yet to add any revenue to the mix. Writedown Risk Remains for APHA StockBloomberg Intelligence analyst Kenneth Shea cautioned investors in early July that major, profit-sapping writedowns could be taken in the near future. Without offering specifics, he was seemingly talking about Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB) and Aphria. Those companies (though not just those companies), show large levels of so-called 'goodwill' on their balance sheets related to recent acquisitions.If those deals don't start to pay off soon, accounting standards necessitate these organizations fiscally indicate as much.It's not an idle warning or a mere possibility either. In its quarter ending in February, Aphria took a C$50 million impairment charge versus its C$73.6 million worth of revenue to reflect lackluster performance from deals made with Central American cannabis organizations.As of the end of May, Aphria indicated nearly C$670 million worth of goodwill still on its balance sheet.Though less concerning for Aphria stock, in June BMO Capital Markets cannabis analysts Tamy Chen and Peter Sklar expressed concern about growing inventory levels on several cannabis companies' balance sheets. The analysts noted, "What remains unclear is why the planting of recently licensed grow rooms has not been meaningfully offset by the conversion of prior months' unfinished inventory into finished products for sale to provincial distributors given the apparent supply shortage in retail channels," adding that "If some of the dated 'unfinished inventory' is ultimately determined to not be extraction-grade, then there would be a need for inventory writedowns."Aphria currently has C$91.5 million worth of inventory on-hand, though the potential use and marketability of that inventory has not been detailed. Looking Ahead for Aphria StockIt's possible Aphria could grow its way past worries that its recreational marijuana business is barely breaking even, and that more writedowns are in the works. The company is forecasting revenues of between C$650 million and C$700 million for the fiscal year that just began, which should yield an EBITDA of between $88 and $95 million.With the introduction of edibles in Canada beginning in December, Aphria wouldn't have to capture much of that market to reach its revenue goal. Its EBITDA outlook may not be quite as easily attained.Whatever's in the cards, there's no escaping the fact that after Friday's surge, Aphria stock is priced uncomfortably high for newcomers.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Aphria Stock Soars on Proof Pot Can Be Profitable … Sort Of appeared first on InvestorPlace.
Cannabis producer Organigram Inc. (NASDAQ: OGI) announced Friday that it has signed an advance payment and purchase agreement with 703454 N.B. Inc., which operates as 1812 Hemp. Under the terms of the agreement, the company will pre-fund the purchase of 60,000 kilograms of dried hemp flower. Organigram said it plans to harvest those hemp flowers this year for extraction into CBD isolate.