|Bid||2.6500 x 3000|
|Ask||2.6600 x 3000|
|Day's Range||2.6200 - 2.7301|
|52 Week Range||1.8900 - 8.4400|
|Beta (5Y Monthly)||4.23|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Greg Engel has been the CEO of OrganiGram Holdings Inc. (TSE:OGI) since 2017. First, this article will compare CEO...
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, is pleased to continue the roll out of its innovative portfolio of recreational adult use cannabis products including vape pens and cannabis-infused chocolate.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, is pleased to announce products from its premium adult recreational Edison Cannabis Co. brand have been awarded top honours in the consumer-driven Leafly Readers Choice Awards.
The cannabis sector has seen a huge rally over the last week and Aurora Cannabis (ACB) is no exception. Some general excitement over a competitor’s quarterly earnings report and some positive regulatory headlines from the U.S. have investors throwing caution to the wind again. The company still has too many unresolved risks to rush into the stock here just because a competitor beat quarterly estimates due to a large bulk wholesale deal.Money Losing OperationsThe firing of CCO Cam Battley and the placing of a facility on the market for sale at a price of C$17 million doesn’t alter the bleak financial prospects of Aurora Cannabis. In the last quarter alone, the Canadian cannabis company reported an EBITDA loss of C$39.7 million.A capex cut might help stem the cash flow burn, but Aurora Cannabis has made limited steps announced to the public on the operational side. The company needs higher revenues and reduced costs in order to reach EBITDA profitable, a measure that doesn’t even factor in potentially mounting interest expenses into the cash burn equation.The big story coming up with the FQ2 results in mid-February is whether the company restructures operations to reduce the operating expense base of C$81.1 million. Aurora Cannabis already has solid gross margins near 60% so the key to success is matching the expense side of the equation with gross profits reduced by disappointing sales.Wholesale Sales The Organigram (OGI) earnings beat has the whole market up, but the company beat sales estimates based on a surprise bulk wholesale sale of C$9.2 million. Aurora Cannabis had a similar quarterly boost back in the June quarter where an additional C$18.0 million in bulk wholesale sales boosted those numbers sending the stock up to $6.50 back in September. The stock didn’t hold up at the end of 2019, partly because the September quarter sales saw wholesale revenues decline 50% to only C$10.3 million.The addition of competition in the wholesale space should hurt the ability of the company to repeat the revenue boost from bulk sales at 60% gross margins. Without the bulk sales, OrganiGram didn’t see any jump in revenues sequentially for the last quarter following the weak August quarter hit by lack of provinces ordering and product returns.Aurora Cannabis avoided the product returns hit, but the company saw sales dip last quarter. Investors shouldn’t expect any revenue boost this quarter outside of the wholesale sales. Analysts forecast December quarterly revenues of C$80 million which won’t inspire the market to chase this rally back above $2.With at least 1.2 billion shares outstanding, the stock has a market value of ~$2.5 billion and quarterly revenues of $60 million aren’t going to inspire investors to hold the sock assuming the adjusted EBITDA levels don’t show any major improvement.Consensus VerdictAll in all, the Street's current view on Aurora Cannabis is a mixed bag, indicating uncertainty as to its prospects. The stock has a Hold analyst consensus rating with only 3 recent "buy" ratings. This is versus 2 "hold" and 5 "sell" ratings. However, the $2.83 price target suggests an upside potential of nearly 40% from the current share price. (See Aurora Cannabis stock analysis on TipRanks)TakeawayThe key investor takeaway is that Aurora Cannabis has a lot of positive catalysts to play out in 2020, but the company needs to reorganize the firm to reduce operating expenses following delayed catalysts in 2020. The stock has seen a recent boost due to some over excitement about the rebound in sales at Organigram, but investors should be cautioned that the revenue beat was due to low quality sales.To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
As the cannabis stocks trade at multi-year lows, the market is looking to grasp at any positive news from the upcoming earnings season. Any positive news from Q4 sales or insights on the Cannabis 2.0 rollout in Canada will breath some relief into the market.The North American cannabis industry has plenty of catalysts by midyear 2020, but the related companies were built for robust revenues and much larger markets. The keys to watch in the upcoming earnings reason are the ability of cannabis companies to generate profits from the current market opportunities and not the previous grand expectations.Several big catalysts for cannabis revenue growth in 2020 include CBD in the U.S., Cannabis 2.0 rollout in Canada, additional retail stores in Ontario and the approval of recreational cannabis in U.S. states such as Illinois. Not to mention, the U.S. always has the potential for the federal government to approve cannabis allowing for the ultimate prize for cannabis companies and investors alike.The market projections for the global cannabis market reaching $200 billion in the future should stand. For now, cannabis stocks in Canada and the U.S. have to focus on maintaining liquidity to survive and eventually thrive in the disappointing sales ramp in North America and around the globe. A lot of the Canadian issues should resolve themselves over the next few quarters, but the illicit market remains a formidable competitor and investors shouldn’t assume the profit picture improves dramatically in the near term with so much competition.We’ve delved into three cannabis companies that recently reported quarterly results through November 30 with commentary covering the early part of January. Using TipRanks' Stock Comparison tool, we lined up the three alongside each other to give us an idea of what the Street thinks is in store for the trio in the year ahead.Aphria (APHA)The most influential earnings report of early January was Aphria. The company is one of the larger Canadian cannabis LPs and provides a good indication of market demand into the first couple of weeks of January.The good news is Aphria grew net cannabis revenues by 9% sequentially for the quarter ending November 30. The bad news is that the cannabis company cut FY20 revenue guidance by an astounding $75 million.The revenue cut wasn’t a huge shock to the market considering the Ontario regulators pushed new retail store openings out until April and Aphria has a fiscal year ending in May. This timing issue combined with vape bans in Alberta and Quebec and the possibility of a major revenue ramp up this fiscal year was near impossible.For FQ2, the company reported revenue declined by C$5.5 million to C$120.6 million. The major revenue hit came from a reduction of distribution revenue in Germany.The stock dipped 8% on the news to $5 based on the revenue cut and the hit to EBITDA targets. Aphria now expects FY20 EBTIDA of only C$35 million to C$42 million, down from an estimate of over C$90 million.The company remains one of the rare Canadian companies generating positive EBITDA due to reasonable operating expenses, but the market needs to absorb this revenue cut before the stock can rally this year.All in all, Wall Street is split between the bulls and those who are more cautious on the cannabis player, with TipRanks analytics exhibiting APHA as a Moderate Buy. Out of 4 analysts tracked in the last 3 months, 2 are bullish on Aphria stock while 2 remain sidelined. With a return potential of 23%, the stock's consensus target price stands at $6.36. (See Aphria stock analysis at TipRanks)OrganiGram (OGI)OrganiGram had one of the better reports in the cannabis sector in the last few quarters. The stock has soared over 45% on the news, yet OrganiGram isn’t even back to the highs from November.For the quarter ending in November, the Canadian cannabis company reported net revenues of C$25.2 million. The amount beat estimates, but the company is still below the revenue levels from mid-2019 and the beat occurred due to low calorie wholesale revenues of C$9.5 million.The rally is more of a relief that the numbers didn’t get worse despite investor knowledge that monthly cannabis sales in Canada have slowly improved throughout the year. In addition, OrganiGram generated quarterly EBITDA of C$4.9 million for a 9% EBITDA margin.The company has a fully diluted market cap of $500 million with a FY21 sales target in the $170 million range. The stock trades at a reasonable 3x forward sales, but OrganiGram only has a minimal C$34 million cash balance and already has C$85 million in debt.The company forecasts having enough capital to fund operations and capital expenditure plans, but those plans include rolling out Cannabis 2.0 products in 2020 and further facilities. Investors should expect OrganiGram to take advantage of this stock rally to $3 to utilize the at-the-market equity program to raise the C$32 million available under the program after raising C$23 million subsequent to quarter end.Where does the Street side on this cannabis producer? It appears mostly bullish. Out of 10 analysts polled by TipRanks in the last 3 months, 6 are bullish on OrganiGram stock while 3 remain sidelined and one is bearish. With a return potential of nearly 43%, the stock’s consensus target price stands at $4.73. (See OrganiGram stock analysis at TipRanks)KushCo (KSHB)KushCo provided an alternative view to the cannabis sector as the company is focused on providing products and services to the U.S. cannabis market. The company took a revenue hit in the last quarter from the health concerns in the U.S. vape market.Quarterly revenues were up 38% from last year to $35 million, but the numbers were down from the $47 million reported in the prior quarter. KushCo missed analyst estimates by a wide margin as customers reduced vape inventory levels in fears of bans by state regulators.The company still guided to full year revenues of $240 million in expectations that customer orders catch up over the remaining three quarters of the year. KushCo laid off 53 people in order to improve the profitability picture after reporting a $12.5 million loss in the quarter, but the employee reduction only saves ~$4.3 million in annual savings.The stock has a minimal market valuation of $175 million, but the tough market and limited margins should leave investors on the sidelines here. KushCo continues to lose too much money and only ended the November quarter with a cash balance below $15 million.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, is pleased to announce it has secured a supply agreement with Medical Cannabis by Shoppers, the online medical cannabis platform by Shoppers Drug Mart Inc. ("Shoppers").
ETFs that track the budding cannabis industry led the charge on Wednesday as Organigram (NasdaqGS: OGI) surged on first-quarter revenue that more than doubled expectations. Among the best performing non-leveraged ...
Organigram shares soared more than 35% Wednesday and helped lift the broader cannabis sector higher, after the company’s first-quarter revenue more than doubled and beat analyst estimates.
Benzinga Pro's Stocks To Watch For Wednesday Goldman Sachs (GS) - Shares were down 1.6% following mixed Q4 results and sparse details about an overhang which had been on investors' mind's, charges related ...
OrgraniGram reported better-than-expected first quarter financial results, but the cannabis industry still faces a number of headwinds.
Organigram Holdings Inc. stock soars during extended trading, as the Canadian weed company reported fiscal first-quarter revenue that jumped two-fold, beating Wall Street estimates.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, is pleased to announce its results for the first quarter ended November 30, 2019 ("Q1" or "Q1 2020").
OrganiGram (OGI) is expected to have benefited from its firm focus on building brand equity and ongoing product innovation in the fiscal first quarter.
OrganiGram (OGI) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, is pleased to announce it has been chosen as one of Atlantic Canada’s Top Employers.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, announced today it will report earnings results for its first quarter fiscal 2020 ended November 30, 2019 on Tuesday, January 14th after market close.
The Green Organic Dutchman, OrganiGram Holdings, and HEXO have been among the more compelling plays for cannabis companies based in Canada, until the temporary limitations inherent in the Canadian market have put immense pressure on the three companies, driving now their growth propects for some time.It has gotten so bad that all three companies, along with many of their peers, have announced they're reducing production until the market can absorb more supply.The primary issue isn't demand, but the slow roll out of cannabis retail stores in Ontario and Quebec. That has allowed black market cannabis producers to thrive, which has also put downward pressure on prices because of the lower cost basis enjoyed by illegal pot producers.In this article we'll look at how this ongoing challenge will impact the performance of these companies going forward.OrganiGram Holdings (OGI) For some time OrganiGram had generated a lot of positive buzz with investors because of its unique growing system that allows it to produce cannabis at very low costs in comparison to the majority of its competitors.It was assumed that OrganiGram was going to probably become the first consistent generator of positive earnings of the pot producers. After its last earnings report, that's obviously off the table at this time.It's also going to produce less cannabis in the near term than projected. In November 2019 it announced it was going to produce 89,000 kilograms of cannabis annually, rather than the previously announced 113,000 when operating at full capacity.As mentioned, the ongoing positive catalyst is its unique three-tiered system that allows it to product a yield of approximately 230 grams per square foot.Another positive for now is it's the only key Canadian producer located in the Atlantic province located in eastern Canada. Not only could it potentially dominate those markets, but it could lower distribution costs if it focuses on markets closer to home. Organigram is one of the few companies licensed to sell pot in all Canadian provinces.After a sold third-quarter earnings report where the company generated a solid profit, it followed up with a dismal fourth quarter, where net revenue plunged by close to 33 percent, falling to C$16.3 million.With no relief on the growth side in regard to retail outlets in the near term, there's no visible catalyst to suggest a turnaround anytime soon.What do analysts say about the cannabis producer? TipRanks, a company that tracks and measures the performance of analysts, showcases OGI as a Moderate Buy. Based on 7 analysts tracked in the last 3 months, 5 rate the pot stock a "buy," while 2 say "hold." Meanwhile, the 12-month average price target stands at $6.19, marking over 160% upside from where the stock is currently trading. (See OrganiGram stock analysis on TipRanks)HEXO Corp. (HEXO)HEXO was another high-flying Canadian company that was considered to be among the market leaders in the nation, but that has rapidly crumbled, as it too has announced cutting back on production capacity in 2020.HEXO management had projected production capacity of up to 150,000 kilograms annually, but is now looking at a range of 90,000 to 100,000 kilograms per year.In its first fiscal quarter results, the company reported net revenue falling to C$14.5 million, down from the C$15.4 million generated in the previous quarter. Even worse was its loss from operations of a huge C$58.5 million.Of these three companies, HEXO is the most concerning for me because of its exposure to Quebec, which is probably the most challenging province to operate in because of its outlook toward increasing retail outlets and increasing the age of pot usage to 21-years-old.It has stated that it isn't going to aggressively push for rapid expansion of dispensaries. Combined with a higher legal age, it's going to probably struggle more than its peers to gain traction over the next twelve months.Ultimately, the word on the Street points to a sidelined majority on HEXO. In the last three months, the Canadian cannabis maker has landed 2 ‘buy’ ratings vs. 8 ‘hold’ and 5 "sell" ratings. That said, the consensus average price target points to $2.85, or nearly 75% upside potential for the stock. This suggests that by consensus expectations, for now, the bulls still win on HEXO. (See HEXO stock analysis on TipRanks)The Green Organic Dutchman (TGODF)Of these three companies, The Green Organic Dutchman will cut output far more than its two other competitors.The company gave updates in October 2019 that it was going to cut back on its production at Valleyfield facility. Fully operational, the facility could produce up to 130,000 kilograms annually. Instead, in 2020 it'll only generate about 10,000 kilograms a year at Valleyfield. With output from its Ancaster campus expected to reach about 12,000 kilograms in 2020, that means the company will only produce at the top end, about 22,000 kilograms a year, far off management's assertion the company has the capacity and capability to produce about 219,000 kilograms a year.The company is aligning itself with market realities, and instead is looking to cut back on costs this year to the point of possibly generating a profit.Even so, with the company only producing about a tenth of its potential, it's going to struggle to attract investors that believe in its viability in 2020. That could change if it does manage to turn a profit this year.Judging from the consensus breakdown, it has been relatively quiet when it comes to analyst activity. Over the last three months, only 3 analysts have reviewed the marijuana stock; two of which are sidelined and one is bullish, making the consensus a Moderate Buy. On top of this, the $0.63 average price target puts the upside potential at 17%. (See TGOD’s price targets and analyst ratings on TipRanks)ConclusionThere are a lot of headwinds as 2020 starts up for the Canadian cannabis sector, and it's going to take time to work through them. The major metric to watch in my view for not only the three companies mentioned here, but for all Canadian companies, is how quickly Ontario retail outlets become operational.A distant second will be the level of success companies will have in the derivative markets, which we won't have a clear understanding of until after the earnings reports for the current quarter.The major problem is the lack of ability to scale, and the robust black market that has survived largely intact because of the lack of competition in the key markets of Canada. That has put downward pressure on prices and margins, and ultimately, earnings results.While all of this sounds dismal, the reality is nothing has really changed in the long-term for the Canadian cannabis market. The demand is still there, and once hundreds of more retail stores are operational, it's going to have a big impact on the performance of these three companies.Again, I see HEXO as having the most challenges because of its location in Quebec. But even that could be overcome in time once many more cannabis sales outlets are available to sell in.The Canadian cannabis market is going to remain volatile for awhile, but investors that take positions in some of these companies while they're selling at these levels, with patience, should be rewarded with strong returns over the next few years.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
The Canadian cannabis sector just can’t get regulators out of its way. The Cannabis 2.0 products were finally made available on December 17, yet a large portion of the provinces won’t allow key vape sales.Last week, Alberta suspended the sales of cannabis vaping devices due to the concerns around their health effects despite signs that the vaping health issues are related to illegal vape products. While the regulatory agency has made it clear that this move is only a suspension, Canadian cannabis companies can’t afford more delays.The Cannabis 2.0 products like vapes, edibles and topicals were supposed to carry higher margins and Eight Capital has vapes accounting for 20% of the market. A big profit driver of the market is now removed as Alberta isn’t the only province pushing back on vapes.Quebec has banned vapes and most 2.0 products. In addition, Newfoundland and Labrador have suspended vapes and British Columbia slapped a 20% tax on vape product sales. Ontario also has major cannabis retail store issues.The new plan released by the Alcohol and Gaming Commission of Ontario (AGCO) has guidelines for companies submitting store applications on March 2, with a goal of ultimately approving up to 20 retail locations per month starting in April. In total, Ontario is set to add 180 new stores next year and reach 250 stores by the end of 2020.The Ontario market includes the key Toronto metro area and nearly 40% of the total Canadian population of 37 million. The Alberta and Quebec provinces add another 35% of the population blocked from the vape market. Only a fraction of the Canadian market has easy access to buy vape products and virtually no part of the population has cheap access to vapes.We’ve delved into three companies that were set to benefit from vapes, but are now positioned to struggle until Ontario adds more retail stores and Alberta and Quebec remove the suspension on selling vape products:Aphria (APHA)Back in July, Aphria signed a deal with PAX Labs for their premium cannabis vaporization devices. At the time, the company estimated vapes and concentrates will represent 30% of the entire Canadian adult-use market by 2021. In addition, the company plans to strategically market edibles, beverages and topicals, with the hope that these products will eventually make up 10% of total sales.Amongst the large Canadian LPs, Aphria is the least promotional on new product formats. The company forecasts strong sales from the category without really drumming up the actual products.Aphria has a stated goal of reaching a C$1 billion annual revenue run rate at the end of 2020 with higher margins. The question one has to ask is whether the company can reach those targets without a full 30% of revenues coming from vapes and concentrates along with the much higher margins.The FY20 forecast for revenues reaching nearly C$700 million would presumably require a substantial boost from vape sales. When the company reports FQ2 earnings in mid-January, the market will zero in on any update to financial targets after the initial weeks of Cannabis 2.0 sales and the general lack of availability of vape sales so crucial to hitting revenue targets.While there are concerns, Wall Street analysts generally remain optimistic. The Moderate Buy analyst consensus breaks down into 6 Buy ratings and 1 Sell received in the last three months. Not to mention the $8.51 average price target puts the upside potential at 74%. (See Aphria stock analysis on TipRanks) OrganiGram Holdings (OGI)OrganiGram just announced the release of their first Cannabis 2.0 products. Several versions of their 510-thread vape cartridges have been shipped to Manitoba, Saskatchewan, Ontario, New Brunswick and Nova Scotia from the company’s Moncton production campus.The only meaningful province on the list is Ontario where sales aren’t going to be significant with only 24 retail stores open in the province. OrganiGram is one of the first companies with vape products on the market, but the company doesn’t have a market to sell to.OrganiGram is offering cartridges with three distinct offerings, Spark (sativa-dominant), Flicker (hybrid) and Glow (indica-dominant), inspired by dried flower and pre-roll products under the company’s Trailblazer-branded product lineup.It plans to release other vaporized products over the next month including Edison + Feather ready-to-go distillate pens and Edison + PAX ERA distillate cartridges. Other products set for Q1 and Q2 release are infused chocolates and dissolvable powdered beverage products designed for faster onset of cannabinoids.However, analysts only expect sales for FQ2 to reach $18.8 million. This isn’t even close to the peak levels from last year. Investors have to expect actual numbers to miss sales estimates due to the lack of any meaningful sales outlet for vapes.Despite this, analysts aren’t giving up on OGI just yet. Looking at the consensus breakdown, 5 Buys and 2 Holds add up to a Moderate Buy. On top of this, the $6.14 average price target suggests shares could soar 161% in the twelve months ahead. (See OrganiGram price targets and analyst ratings on TipRanks) Auxly Cannabis (CBWTF) Auxly Cannabis Group is one of the smaller Canadian cannabis companies offering a full suite of Cannabis 2.0 products. The vapes are based on technology from major investor Imperial Brands (IMBBY). The company has two brands releasing different vape products with various levels of THC and CBD formulations.The Toronto based company has over 250 listings for Cannabis 2.0 products across nine provinces that cover vape, chocolate and chewable products. In total, Health Canada approved 83 derivative cannabis products for this rollout.The recent Q3 report showed revenues of only C$1.6 million, mostly for research contracts. Additionally, analysts project 2020 revenues will reach $65 million, with a lot of the forecast revenue being based on vape sales.The stock has a listed market valuation of $276 million so the biggest risk is the lack of access to vape customers, which hurts projected growth of a company still in startup mode. (See Auxly stock-price forecast and analyst ratings) Check out these 5 ‘Strong Buy’ stocks that top Wall Street analysts recommend.Disclosure: No position. Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.
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.
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