|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.0000 - 0.0000|
|52 Week Range|
|PE Ratio (TTM)||970.02|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
"Mad Money" host Jim Cramer looks at the blazing bull market in marijuana to see if the stocks are good buys or about to go up in smoke. Cramer worries about the cryptocurrency-style run in pot stocks and says it could make them faulty investments. In honor of 4/20, the unofficial marijuana holiday that falls on April 20, CNBC's Jim Cramer took a look at the state of the red-hot bull market in marijuana.
Canadian marijuana producer Cronos Group announced a cross-border partnership with California-based cannabis retailer MedMen on Monday, sending shares skyrocketing.
January was a great month for the cannabis industry, despite Attorney General Jeff Sessions’ decision to rescind the Cole Memo, an Obama-era memorandum that essentially protected state-legal cannabis businesses ...
TORONTO, March 5, 2018 /PRNewswire/ - Cronos Group Inc. (CRON) (MJN.V) ("Cronos Group" or the "Company") is pleased to announce that the Company is changing its ticker on the TSX Venture Exchange from MJN to CRON. Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across four continents. The Company operates two wholly-owned Canadian Licensed Producers regulated under Health Canada's Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. (Ontario), which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd. (British Columbia), which is based in the Okanagan Valley.
TORONTO , Feb. 26, 2018 /PRNewswire/ - Cronos Group Inc. (TSX-V: MJN) (OTC Nasdaq Int'l Designation: PRMCF) (" Cronos Group " or the " Company ") is pleased to announce that trading ...
On February 20, 2018, Canopy Growth (WEED) announced that it had received a cultivation license for one of its two sites at Aldergrove, British Columbia, under its BC Tweed Joint Venture. The site’s total space will cover a total of 1.7 million square feet for cultivating cannabis, with the first site for which the company has received a license spreading over 400,000 square feet. The above chart shows the cost stack for Canopy Growth per gram of cannabis produced.
During 3Q18, Canopy Growth increased its inventory and biological assets to a value of 108.3 Canadian dollars from 56 million Canadian dollars in 3Q17. The company stated that it continues to scale inventory to meet the rising demand that will likely result when cannabis is legalized in Canada later in 2018. With investment activities in the cannabis sector ramping up, Canopy Growth and other players (HMLSF) such as Cronos (PRMCF), MedReleaf (MEDFF), Aphria (APHQF), and Aurora Cannabis (ACBFF) will continue to make investments.
In the earlier part of this series, we discussed Canopy Growth’s sales drivers and how the company’s selling prices increased year-over-year. At the same time, the company also managed to lower its cost of production. In its press release, Canopy Growth reported that its per gram weighted average cost before shipping and fulfillment fell 39% to 1.03 Canadian dollars from 1.7 Canadian dollars in 3Q17.
There could possibly be a ceiling on cannabis prices for producers such as Canopy Growth (WEED), Cronos (PRMCF), Aphria (APHQF), and Aurora Cannabis (ACBFF), which could eventually put pressure on margins. Statistics Canada recently crowdsourced a survey to find out how much Canadians paid per gram of cannabis. The above chart contains the results from about 15,600 recreational and medical users across Canada.
Provinces in Canada will tightly control the supply, distribution, and sale of cannabis. With mostly just a single buyer, the government, cannabis producers will have little defense against one of Porter’s five forces: the bargaining power of customers. For example, in Ontario, the government has proposed to sell recreational cannabis, in stores and online, through OCRC (Ontario Cannabis Retail Corporation), a subsidiary corporation of the LCBO (Liquor Control Board of Ontario), which is a government enterprise and currently retails and distributes alcoholic beverages in the province. By July 2018, Ontario plans to have 40 retail locations.
On February 5, BC (British Columbia) released its regulatory framework for non-medical cannabis. The BC government proposed a mixed public and private model for retailing cannabis in the province. Cannabis will be sold either through government-operated retail stores or through private retail stores.
Earlier in this series, we were left with the question of whether the valuations of cannabis stocks had been stretched. In the chart above, we can see the changes in sales estimates from October 2017 to February 2018 for six companies whose valuations we discussed earlier. For these six companies, overall sales estimates have risen 17.4% over the past five months.
Earlier in this series, we discussed the forward EV-to-sales (enterprise value-to-sales) valuations of cannabis stocks. The first phase (shaded grey) began in April 2017 when the Federal Cannabis Act (Bill C-45) was introduced in Canada, and it ended in November 2017 when the bill received approval from the House of Commons. Are the valuations stretched?
Jim Cramer looks at the blazing bull market in marijuana to see if the stocks are good buys or about to go up in smoke.