|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.6366 - 0.7199|
|52 Week Range||0.6366 - 1.7890|
|Beta (3Y Monthly)||3.20|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Some The Supreme Cannabis Company, Inc. (TSE:FIRE) shareholders may be a little concerned to see that the Founder...
With the end of 2019 coming up, the climate is changing for the cannabis industry. Canada is getting ready to enact the second stage of its legalization drive, opening markets for CBD extracts, beverages, and edibles. The Canadian market is estimated to account for 12% of global marijuana sales by the end of this year. The scale of the US market compensates for the patchwork legalization landscape; US legal cannabis will account for 80% of global sales this year, according to Arcview Market Research.Troy Dayton, CEO of Arcview, sees CBD as the driver for cannabis sales through 2024. He says, “CBD products on the shelves of grocery stores and mass merchants is just the first act in the “Cannabinoids Everywhere” phenomenon. Unlike with alcohol, coffee or other plant-sourced consumables, cannabis product marketers have more than taste and strength to work with; they also have the subtle effects of 100-plus cannabinoids other than THC. The popularity of CBD is the first inkling of things to come.”In a report released earlier this summer, retail data analytics firm Nielsen points out that the initial legalization cannabis focused on dried flower products but that the upcoming wave of new derivative products, oils, edibles, and drinks have both higher gross margins and no supply chain bottlenecks. The Nielsen report predicts the US cannabis market reaching $41 billion by 2025.So, with the market primed to expand, it’s clear that there is a lot of money to be made in marijuana stocks. The segment’s recent dip – at least three major players are at one-year lows as of yesterday – offers a savvy investor a chance to buy in at low prices and high upside potential. We’ve used TipRanks’ Stock Screener tool to find three small-cap marijuana companies with well over 100% upside potential. Let's take a closer look:Green Thumb Industries Chicago-based Green Thumb (GTBIF – Get Report) owns the Rise and Essence brands of retail cannabis outlets, with more than 50 retail stores under the Rise name and additional outlets through third-party marketers. Green Thumb’s calendar Q2 earnings release showed $44.7 million in revenues, a 60% sequential gain and a 228% year-over-year gain. Organic consumer product growth and increased store traffic powered the revenue gains. Along with fast-growing revenue, the company also boasts a strong cash position, with $83 million in liabilities more than balanced by $117 million cash on hand. CEO Ben Kolver stated of the company’s forward prospects, “Continued execution of key priorities such as… accelerated store openings, and expanded distribution of our brand portfolio, sets us up well for the future.”With operations in 12 US states, including its retail locations and 13 manufacturing facilities, Green Thumb is well positioned to take advantage of the expansion prospects in the US cannabis markets.Starting coverage of Green Thumb for Cowen in mid-September, 5-star analyst Vivien Azer specifically cites the company’s high growth potential. She writes, “We believe the company's focused operating model that favors geographic depth, and a balanced revenue approach between wholesale and retail, gives GTI the most revenue and margin potential among our MSO coverage. GTI is our favorite name among the MSOs.” Azer’s $18.50 price target suggests an upside to this stock of 122%. Ms. Azer adds that Green Thumb is a “compelling buy,” describing it as, “…currently trading at 4.2x FY20 revenue, which is a 22% discount to their MSO peers.” (To watch Azer's track record, click here)The company’s low share price and high upside are key benefits for new investors looking to get in on that expansion. GTBIF sells for just $8.30 cents per share, and the average price target, $19.75, indicates room for 138% growth. Green Thumb’s Strong Buy analyst consensus rating is based on a unanimous 7 buys assigned to the stock in the last three months. (See Green Thumb's price targets and analyst ratings on TipRanks)Supreme Cannabis CompanyFormerly Supreme Pharmaceuticals, Supreme Cannabis (SPRWF – Get Report) in September reported its fiscal Q4 number, which included sales growth of 436%, to C$19 million, and the company’s first quarterly profit of C$3.2 million. Company statements credit the high-margin strategy of focusing on premium cannabis products, and the success of its 7ACRES brand of recreational marijuana. More importantly, however, the company held production-related overhead costs down to 49% of net revenue. With sales expected to rise, the company’s firm control of costs is boon for investors.Supreme posted a C$41 million profit for fiscal 2019, and projects fiscal 2020 profits to come in between C$150 million and C$180 million. The company is positioning itself in partnership with PAX Labs, a leading provider of vaping products to the Canadian markets, giving it a foot in the door when the ‘Cannabis 2.0’ wave hits Canada later this year.CIBC analyst John Zamparo is impressed by Supreme’s niche in the cannabis industry. Initiating coverage of the stock, he writes, “Supreme Cannabis' focus on existing, premium-seeking consumers may be the most effective and yet somehow neglected strategy in the adult-use cannabis space.” Zamparo further notes that “…top-quality flower retains higher prices and is more defensive against margin compression, supporting Supreme's strategy.”With a marketing strategy based on premium product, and a compelling valuation, Zamparo gives SPRWF a buy rating and a C$2 price target. His target implies an upside of 79%. (To watch Zamparo's track record, click here)Zamparo is not along in seeing high potential in Supreme Cannabis. Canaccord 4-star analyst Matt Bottomley also initiated coverage of the stock after the earnings report, giving it a buy rating based on the solid numbers. His C$2.30 price target suggests a 107% upside for Supreme.Overall, Supreme Cannabis has a Strong Buy from the analyst consensus, based on 3 recent buy ratings. The stock is prided at a bargain, only $0.84 US, and the $2.17 average price target suggests a robust upside of 178%. (See Supreme Cannabis' price targets and analyst ratings on TipRanks)OrganiGram HoldingsOur third small-cap cannabis producer is unique. Unlike most of the Canadian marijuana producers, OrganiGram (OGI – Get Report) is based in New Brunswick, among the country’s Atlantic Maritime Provinces. And, in another departure from the cannabis norm, OrganiGram has operations in all 10 of Canada’s provinces, making it one of the few cannabis companies with a presence coast-to-coast. Most of the Canadian cannabis companies are focusing their operations on the populous regions of Ontario, Alberta, and British Columbia; OrganiGram’s foothold in the Atlantic Maritimes gives it a link to the Canadian region with the country’s highest adult-use rates. The Martimes give OrganiGram a low-competition base region, providing steady sales to support expansion in the rest of the country.OrganiGram also differentiates itself from its peers in its production methods. Most growers measure their production facilities by square footage, expanding the footprint to increase production area. OrganiGram grows vertically; in the words of CEO Greg Engel, “Where the majority of companies went with large green house expansions, our facility is three levels. We actually do vertical cultivation.” Growing vertically allows OrganiGram to get the greatest efficiency out of its 14-acre facility in Moncton, New Brunswick. The company expects to reach a production capacity of 113,000 kilograms per year by December. At that capacity, OrganiGram will enter the top-10 of Canadian cannabis producers.OrganiGram’s strong background and increasing production capacity has brought it high ratings from the Street’s analysts. Writing from Beacon Securities, Russell Stanley says the additions to the grow facility “…demonstrate continued execution against the company’s expansion plan, setting the stage for significant revenue/EBITDA growth in fiscal 2020.” He adds that the company reported C$3 million cash on the books in the last quarter, and looks forward to November’s fiscal Q4 report. Stanley’s C$15 price target suggests a one-year upside of 220% for OGI shares. (To watch Stanley's track record, click here)John Zamparo, quoted above on Supreme Cannabis, is also bullish on OGI. He writes, “The company offers one of the few opportunities to gain exposure to the cannabis space at a reasonable price. We believe Organigram has demonstrated track record of profitability, a rarity in the cannabis sector.” With profitability in mind, Zamparo initiated coverage of OGI at C$9, indicating confidence in a 92% upside.Like the stocks above, OrganiGram also has a Strong Buy from the analyst consensus. This rating is derived from 8 buys and 1 hold given in the past three months. The stock trades for $3.54, and the average price target of $9.40 suggests a hefty upside potential of 183%. (See OrganiGram's price targets and analyst ratings on TipRanks)
As the market still fails to separate the Canadian cannabis companies from the overhyped one’s trading on major U.S. stock exchanges, Supreme Cannabis (SPRWF – Get Report) offers a compelling investment. The stock trades near the lows around $1 offering an ideal entry point in a developing cannabis brand under the radar of most investors.Growth RampThe company reported FQ4 results for the period ending June grew 90% sequentially. Supreme Cannabis saw revenues surge to C$19.0 million, up from C$10.0 million, as the business shifted from the wholesale market to recreational sales via the 7ACRES brand. The company is shifting from the low margin wholesale market to much more attractive recreational sales.The best part of the story is the growth was generated on the backs of solid fundamentals. The company generated an adjusted EBITDA of C$3.2 million in the quarter.The company has listed quarterly operating expenses of C$11.6 million and adjusted operating expenses below C$10.0 million. Supreme Cannabis was able to grow revenues substantially without a major increase in operating expenses allowing the adjusted EBITDA to grow by an incredible ~C$4.8 million from the prior quarter. In the process, the company captured EBITDA margins of nearly 50% of all additional revenues.Going forward, Supreme Cannabis purchased both Truverra and Blissco Cannabis to enter the global CBD market. The Truverra merger cost ~C$20 million and expanded their business into the European hemp-based CBD market in select countries selling balms, softgels and organic oils.For these reasons, the company is forecasting FY20 revenues between C$150 to C$180 million. Even better, Supreme Cannabis expects to remain adjusted EBITDA positive during this growth ramp phase.The market will eventually separate out the cannabis stocks that can grow profitably from those that wildly spend shareholder cash. In addition, the company is already three months into FY20 so the market will soon start looking toward FY21 forecasts where revenues will easily top C$200 million.Value Play The stock has a listed market value of only $315 million or C$425 million. Very few Canadian cannabis stocks trade for valuations in the 2x-3x forward sales levels.The company maintains a catalyst for the stock via a listing on major U.S. stock exchanges. In addition, the small size of Supreme Cannabis would make the stock a logical tuck in acquisition for a medium sized cannabis player looking for more scale.Regardless, the stock is a value play whether these catalysts eventually play out or not. Investors should not buy a stock relying on such outcomes.Supreme Cannabis has a small, but vocal camp of bullish analysts with positive expectations for its stock. Out of the 3 analysts polled by TipRanks, all 3 rate the stock a Buy. With a return potential of 125%, the stock’s 12-month consensus target price stands at $2.16. (See Supreme Cannabis' price targets and analyst ratings on TipRanks)TakeawayThe key investor takeaway is that Supreme Cannabis offers a supreme opportunity for a Canadian cannabis player over looked by the stock market. As this company grows and scales, the market will become better acquainted with the stock and the valuation will rise.With analyst revenues estimates above C$200 million for FY21, the market will increasingly find it difficult to look past the valuation on Supreme Cannabis trading for a market value of only C$470 million with likely substantial upside to revenue estimates from the CBD business. Don’t let this supreme opportunity pass.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.Disclosure: No position.
Anyone researching The Supreme Cannabis Company, Inc. (TSE:FIRE) might want to consider the historical volatility of...
Eaze, a California-based delivery software company, filed a countersuit against DionyMed Brands Inc (OTC: DYMEF) on Tuesday. DionyMed's COO has resigned and the company is restructuring its debt. Cannacord Genuity maintained a Speculative Buy rating on DionyMed, as Green Market Report CEO Debra Borchardt told Benzinga.
The Supreme Cannabis Company, Inc . (TSX: FIRE) (OTC: SPRWF ) reported fourth-quarter and full-year results Tuesday that included quarterly net revenue of $19 million, a 90% increase from the previous ...
Cannabis investors will have their hands full this week, as a number of corporate and political updates are scheduled. Benzinga has compiled a list of main updates and events to be looking forward to for ...
The Supreme Cannabis Company (SPRWF) has been fighting to gain sustainable traction for some time, and it appears it has put the pieces in place to make a run at the top of mid-tier cannabis companies.It had a decent last quarter, but what really separated from its peers was its robust guidance, along with the announcement it should reach positive EBITDA in the not-too-distant future.In this article we'll look at some of its numbers, guidance, and how it could more than double its share price.Some of the pieces that should drive growthEven though Supreme Cannabis made a few moves in the past to generate interest in the company, nothing was really impressing investors much.For example, last quarter it announced its partnership with Wiz Khalifa and Khalifa Kush Enterprises Canada to offer branded, premium products in Canada and in the limited international presence it had. Then and now, I look at that as more of an add-on business until proven otherwise.At the international level, it has a presence in the tiny nation of Lesotho, located within the borders of South Africa. It has a population of about 2 million. The company is working on producing cannabis oil products for the medical market that it can deliver to other nations via its Medigrow brand.It also has Supreme Heights2, an investment platform which focuses on brands in the early stage of development that target the EU and UK CBD markets.These are interesting, but they don't do much to push the needle in the near term.One of the more exciting segments of Supreme's business is its 7ACRES brand, which has been transitioning from a wholesale business to a consumer brand. That is expected to be completed by the third fiscal quarter of 2020.Up until May 2019, the facility had 180,000 square feet that was operational. It received approval from Health Canada to add another 50,000 square feet to the facility, bringing the total to 230,000 square feet. That is expected to generate approximately 33,580 kilograms of dried cannabis annually. The company plans on increasing the facility to more than 440,000 square feet, which would bring the annual production rate to 50,000 kilograms of dried cannabis. Some of the square footage will be allocated to office and grow space.Two recent acquisitions are going to help separate Supreme Cannabis from the rest of the mid-tier cannabis companies. It recently closed its acquisition of Truverra and Blissco.Truverra is an extraction and purification business that also has a CBD hemp business in Europe. Blissco, which is focused on the international CBD markets, should be able to produce tincture bottles at an annual run-rate of 7,000,000 by December 2019.The combination of its old and new businesses should be a strong catalyst for growth over the next couple of years.GuidanceSupreme recently announced some of its expected revenue, earnings and guidance for its upcoming September 17, 2019, earnings report.For the fourth quarter the company is looking for revenue of about $19 million, an increase of 90 percent sequentially. That's roughly 45 percent higher than current consensus estimates of $13 million. For fiscal 2019, it should come close to $40 million in revenue.Also important, it's guiding for positive EBITDA for the reporting period, the first time it will have achieved that, and also for all of 2020.Fully guidance for 2020 is for revenue to jump to a range of $150 and $180 million, significantly above the consensus of $130 million.With 7ACRES scaling and the addition of Truverra and Blissco, it has some strong tailwinds that will boost its pace of growth.ConclusionI haven't thought much of Supreme Cannabis in the past, primarily because of its lack of meaningful catalysts that would allow it to be competitive in the cannabis market.Now with 7ACRES scaling and its newest acquisitions poised to boost revenue and shrink margins, the company is ready to be a legitimate player among the mid-tier competitors, and if it continues to improve, could possibly push its way into the lower tier of the major players in the industry.Either way, Supreme Cannabis has an excellent chance to grow its share price, and shareholders should be rewarded nicely over the next year or so, as the company stands today.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now. Disclosure: No position.
Supreme Cannabis Company Inc (OTC: SPRWF ) announced that the Supreme Court of British Columbia has released a final order approving previously announced agreement to acquire Blissco Cannabis Corp. (OTC: ...
Of the multiple positive catalysts should fuel Aphria Inc (NYSE:APHA) in the months ahead, the most intriguing one is is vaping, or using a vaporizer to get the desired effect from cannabis use. My InvestorPlace colleague Will Healy pointed out some of these catalysts in his June 6 article, when APHA stock was trading at more than 50% below its 52-week high.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe next day, Aphria announced that it had entered into a supply agreement for the Canadian market with San Francisco-based Pax Labs, a leader in the manufacture and sale of vaporizers. In the U.S. alone, Pax has sold more than 500,000 Era vaporizers to date with plenty of growth expected in the months and years ahead. "As Aphria continues to drive the evolution of the industry, we are thrilled to partner with a technology leader like PAX to provide a new avenue for consumers to integrate cannabis into their lives," said Irwin Simon, interim CEO of Aphria. "We are excited to bring our premium cannabis extracts from Solei, RIFF and our flagship medical cannabis brand, Aphria, to the PAX Era device and platform." Vaping is Going to Be Big in CanadaThe vaping market in Canada is expected to be significant. Aphria estimates that vapes and concentrates will account for up to 30% of the entire adult-use market by 2021. The great thing about vaping, from Aphria's perspective, is that concentrates provide a much higher margin than dried cannabis. * 7 Stocks to Buy for a Dovish Fed Statistics show that U.S. use of vape products is growing, while the use of dried flower is slowing. In Colorado, the use of vape products increased tremendously over three years. In 2014, vape products accounted for 12% of the legal market. By 2017, that number had grown to 23%. Meanwhile, over the same three years, the use of dried flower dropped by 12 percentage points to 54% of the market. Between edibles, concentrates, and infused drinks, the cannabis industry is moving away from the dried flower to an industry filled with choice. The fact that Aphria is partnering with one of the premier vape companies is a sign that Simon understands the importance of moving beyond supplying dried buds. APHA Is Not AloneThat only downside from Aphria's announcement is that PAX pick three other Canadian cannabis producers to help sell its product: Aurora Cannabis (NYSE:ACB), OrganiGram (NASDAQ:OGI), and Supreme Cannabis (OTCMKTS:SPRWF). However, the fact that Aphria is near completion of it $55 million Extraction Centre of Excellence in Leamington, Ontario, makes this concern far less of an issue. That's because when completed, Aphria will have annual extraction capacity of 200,240 kilograms, making it one of the largest extractors in Canada. Currently, analysts haven't factored Aphria's extraction facility into their valuation models. Once the facility is running, and products are available for sale in late December or early in 2020, Aphria stock is going to be far more attractive to investors than it is today. Bottom Line on Aphria StockIn May, I highlighted the pros and cons of the regime change at Aphria. As I stated, it's hard to know if Irwin Simon's the right person for the job. While his work at Hain Celestial (NASDAQ:HAIN) was at times exceptional, in recent years he did little to impress investors, eventually stepping down as CEO in June 2018. * The Top 8 Tech Stocks of 2019 (So Far) Joining the Aphria Inc board in December as chairman, Simon was appointed interim CEO on March 1 after former boss Vic Neufeld retired in January. Since then, Simon's made a few management changes to put his own stamp on the company. The PAX announcement is a sign Simon might be sticking around as the permanent CEO. If the board didn't have confidence in him, this kind of deal probably wouldn't have happened. While not completely sold on Simon, the PAX deal in combination with the completion of the extraction plant, suggests investors aren't giving Aphria stock its due.Aggressive investors ought to consider buying this potential growth and value play. 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 * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post Can Vaping Growth Help Investors Extract More Value From Aphria Stock? appeared first on InvestorPlace.
Supreme Cannabis Company Inc (OTC: SPRWF) on Tuesday launched a premium cannabis oil in partnership with Khalifa Kush Enterprises Canada. The KKE Oil is the first product under the KKA brand line developed under the partnership between Supreme Cannabis Company and rapper Wiz Khalifa's Khalifa Kush Enterprises Canada. It uses Sensi Star strain developed by 7ACRES, a wholly-owned subsidiary of Supreme Cannabis.
[Editor's Note: This story was previously published in February 2019. It has since been updated and republished.]The 2018 midterm elections made clear that Americans preferred legalization over the continued prohibition of pot, which should bolster the case for the top marijuana penny stocks.When residents in California voted for full recreational weed, it boded well not just for marijuana penny stocks, but for electoral momentum in other states and the midterms emphatically proved this point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn conservative Utah and Missouri, voters approved medical cannabis. But Michigan stood above the rest, becoming the tenth state to legalize recreational marijuana. Significantly, it's also the first Midwestern state to approve such an initiative.Previously embattled marijuana stocks like Cronos Group (NASDAQ:CRON), Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC) received a much-needed boost in the markets and really have capitalized on it.It's not difficult to understand why many investors believe in weed. Not only does legal marijuana open doors to a previously inaccessible sector, it has proven economic benefits. The commonly cited case study is Colorado. In 2015, one year after green lighting cannabis businesses, the botanical industry nearly hit $1 billion in revenue. In 2016, it breached the threshold, and growth remains strong. Considering that so many states suffer from budget shortfalls, a little green could go a long way.Plus, the sharp war of words and tariffs in U.S.-China trade relations amps up the case for marijuana penny stocks. Multiple industries, especially agriculture, are hurting. Full legalization provides an easy catalyst for economic activity and growth. * 7 High-Quality Cheap Stocks to Buy With $10 Under this backdrop, gambling on top marijuana penny stocks is more compelling than jumping on any other speculative venture. While risks abound, these four sector players offer considerable upside possibilities. Auxly Cannabis Group (CBWTF)A common difficulty in forecasting future price movements for top marijuana penny stocks is separating hype from reality. While almost every sector player advertises significant upside potential, most undercapitalized firms fail to deliver the goods.I had high hopes for Auxly Cannabis (OTCMKTS:CBWTF) last year due to its unique business structure. Auxly earned bragging rights for becoming the first cannabis streaming company.Energy and mining companies typically deploy the streaming model to gain full access to an industry's supply chain without incurring unnecessary risk. In theory, streaming is the way to go for marijuana-related organizations. Even with Canada's legalization initiative and U.S. electoral momentum, several legal and administrative hurdles exist. Streaming facilitates exposure to a lucrative industry, but with "stop gaps" should things go awry.Unfortunately, the markets have not been kind to Auxly stock. Since its January opener, shares have lost more than half their equity value.Nevertheless, I'm still hopeful that Auxly can pull it together. One of the major challenges for the company is that its streaming partners still encounter arguably unreasonable non-cannabis related obstacles. The biggest on the list is securing traditional financing, which stymies expansion efforts.However, the cannabis industry is making steady steps toward mainstream institutional acceptance. And especially with the U.S.-China trade war heating up, even conservative administrations can't afford overlooking a key revenue-maker. MPX Bioceutical (MPXEF)A common stereotype about legal-cannabis advocates is that they have ulterior motives for their product evangelism. Although that could be the case, one thing is undeniable: many, if not most top marijuana penny stocks focus on botany's medicinal aspect.This is especially true for MPX International (OTCMKTS:MPXOF). MPX operates three brands under its corporate umbrella: Salus BioPharma, Health for Life and its namesake MPX.The former two divisions specialize in medical-grade cannabis, while the latter caters to the green lifestyle. Salus is particularly intriguing as it represents a joint venture with Israeli pharmaceutical Panaxia to develop proprietary, smokeless cannabis products.Another compelling driver for MPXOF stock is its recent partnership with South Africa's First Growth Holdings. Primarily, this is an attractive deal because South Africa provides ample land and inexpensive labor. Moreover, the country recently legalized weed, so it provides MPX with global revenue synergies. Granted, management must make investments to ensure the higher-quality inventory which western connoisseurs desire. Nevertheless, the cost outlay should be very reasonable compared to other locales. * 7 Top-Rated Biotech Stocks to Invest In Today That's not to say you should jump on MPXOF stock without worries. The company isn't what you would consider fundamentally sound. Still, with relatively stable market performance and an impressive growth rate, speculators will want to keep close tabs on MPX. Supreme Cannabis Company (SPRWF)When Canada became the first G7 nation to approve recreational weed in October 2018, it actually forged the path forward for marijuana startups. As a result, the lion's share of marijuana penny stocks is based in Canada.A prime example is Supreme Cannabis Company (OTCMKTS:SPRWF). Supreme Cannabis, whose 7ACRES brand of medical-grade cannabis started life as a father seeking alternative therapies for his daughter.Eventually, 7ACRES grew to become a gold-standard cannabis facility, offering distinct, high-quality strains.What makes SPRWF stand out compared to other top marijuana penny stocks is that management is focused on a business-to-business (B2B) strategy. This enables the company to fine-tune its craft, rather than dilute its effectiveness through disparate supply-chain segments.Over the long run, I think this higher-end focus will distinguish SPRWF stock from the competition. For example, several mainstream retail stores, including Neiman Marcus and Vitamin Shoppe (NYSE:VSI), have pushed for cannabidiol, or CBD, products.Obviously, that's a big plus for the broader marijuana industry. But just selling bottom-shelf weed at large volume isn't going to cut it. Consumers want differentiation, which is what Supreme Cannabis offers. Therefore, SPRWF stock has a chance to positively surprise.That said, this is a very volatile market. SPRWF stock is a high-risk, high-reward venture, but a very tempting one due to positive industry-related developments. Cannabis Science (CBIS)Cannabis Science (OTCMKTS:CBIS) is easily one of the most speculative among top marijuana penny stocks. Immediately, you can tell that through either its ridiculously low share price, or its sub-$100 million market capitalization.Another giveaway is Cannabis Science's bold declaration to provide innovative therapies for unmet medical needs, including cancer. As the old saying goes, extraordinary claims require extraordinary evidence.But this is also where CBIS stock becomes interesting. Management claims that cannabis use dates back thousands of years, making it one of the most tried-and-true medicines. Plus, traditional pharmaceutical companies have become more a marketing machine than a therapy provider. Therefore, the medical-cannabis industry deserves at least some credibility.Also, I think it's fair to point out that the opioid crisis has caused mainstream pharmaceuticals to lose credibility. Despite best intentions, the pharmaceutical industry has left a wave of problems in its wake. This could negatively impact generations of Americans. Thus, marijuana penny stocks related to medical cannabis could benefit.That's the good news for CBIS stock. The not so great news is that shares continue to struggle. * 7 U.S. Stocks to Buy With Limited Trade War Exposure Conservative investors should probably stay away from Cannabis Science and marijuana penny stocks in general. But if you're a speculator, CBIS stock appears to have bottomed after a recent bout of volatility. It's no guarantee of upside, but it might be worth a shot with gambling money.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post 4 Top Marijuana Penny Stocks to Take Seriously in 2019 appeared first on InvestorPlace.
Under the terms of the agreement, shareholders of Blissco will be offered 0.24 shares of Supreme Cannabis Company for each share they hold. Blissco, which positions itself as a premium wellness cannabis brand, will join Supreme Cannabis’ portfolio of brands and will operate as Supreme’s health and wellness business. The acquisition will give Supreme Cannabis Company access to Blissco’s 18,000 square foot production facility in Langley, British Columbia.
Cannabis Sector Extended Its Losses Last Week(Continued from Prior Part)Cannabis stocks fellLast week, most of the stocks in the cannabis sector ended lower. The Horizons Marijuana Life Sciences ETF (HMMJ) fell ~1.2%, while the ETFMG Alternative
ACB Trades Sideways ahead of Its Earnings Results(Continued from Prior Part)Sector performanceThe cannabis sector has been trading broadly flat ahead of the first-quarter earnings season. The Horizons Marijuana Life Sciences ETF (HMMJ) was up
Investors and major cannabis execs were in the same room April 17-18 at Benzinga's Cannabis Capital Conference in Toronto. Cannabis has the "power to transform human and wellness," said Robert Fireman, president and CEO of Marimed Inc (OTC: MRMD). One of the ways the medical cannabis company makes its mark is by offering a pure CBD product to treat children suffering from epilepsy, he said.
Cannabis Sector: Analyzing the Biggest Gains Last WeekWeekly gainersThe week ending April 26 brought some relief to cannabis sector investors. The Horizons Marijuana Life Sciences ETF (HMMJ) rose as much as 5.2%, while the ETFMG Alternative Harvest
Hexo (NYSE: HEXO) and Supreme Cannabis (OTC: SPRWF) are two options that still have significant upside for investors, which isn't easy to say for many cannabis stocks.Source: Shutterstock It's been a good year for cannabis stocks. But with several of the largest, most popular cannabis stocks already up more than 70% year-to-date, the marijuana space is looking fairly expensive. Given the lofty valuations in the cannabis group, some investors are looking for under-the-radar ways to play the marijuana trend.Bank of America recently initiated coverage of cannabis stocks. Their picks included popular cannabis plays Canopy Growth Corp. (NYSE: CGC) and Aurora Cannabis (NYSE: ACB). But Hexo and Supreme are couple of top picks that aren't typically among the most popular pot stocks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dividend Stocks That Could Double Over the Next Five Years Cannabis Stocks To Buy: HEXOSurprisingly, Bank of America analyst Christopher Carey named HEXO stock his top cannabis pick. Hexo is a cannabis company based in Quebec that has national distribution in Canada. It is also the preferred supplier of the province of Quebec.Aurora and Canopy are the two big dogs in Canadian production. Canopy's $16.2 billion market cap and Aurora's $9.1 billion market cap reflect those positions. However, Hexo is aggressively pushing to move into the top five.Hexo recently announced a buyout of Canada's Newstrike Brands for $263 million, the largest merger between two Canadian cannabis producers in history. The merger will quadruple Hexo's cultivation space from 579,000 square feet to more than 2.3 million square feet.Given HEXO stock is already up more than 100% year-to-date, its far from cheap compared to a few months ago. However, for investors looking for a long-term play on the cannabis trend, Hexo's $1.4 billion market cap leaves plenty of room for expansion.Carey says Quebec is home to 25% of Canada's legal-aged residents. He also says the company's five-year contract with Quebec de-risks the HEXO stock outlook, making it the safest Canadian cannabis stock."It is compelling on valuation vs peers… and with fundamentals grounded by the most de-risked cannabis supply in Canada (off-take with Quebec), an innovation-forward organization and potential for additional value-add partnerships," Carey says.Even after HEXO stock doubled in early 2019, Carey has a C$14 price target for HEXO. That target suggests an nearly 50% additional upside from current levels. Cannabis Stocks To Buy: Supreme CannabisHexo caught many stock investors off guard as Bank of America's top pick. However, investors looking for a true under-the-radar pick should consider Supreme Cannabis. Supreme is based in Ontario. It is focused primarily on the premium end of the cannabis market. As of 2019, the company operates mostly in the Canadian market. In the longer-term, it has plans to expand its business globally.Supreme is not in the same league as the other cannabis stocks I mentioned in terms of the size of its operation. SPRWF stock has a market cap of under $500 million. In March, Supreme announced a 50% increase in its total 7ACRES production space, which is still only 180,000 square feet. The company said it plans to hit 50,000 kg of annual production capacity by mid-2019.SPRWF stock is up 55% in 2019, but it has lagged its larger, high-flying peers. Carey says Supreme is selling in bulk to Canadian peers at around the same price peers are selling their product at retail. That's a testament to the pricing power of Supreme's product. Carey says Supreme's wholesale business gives the company flexibility over the next couple of years while it builds its retail processing and packaging operations.The potential downside to the wholesale business is that Supreme may be missing out on opportunity to build its brand among retail buyers. Supreme's 7ACRES was named "Brand of the Year" at the 2018 Canadian Cannabis Awards. But if the majority of the product is being sold to peers rather than consumers, Supreme may be missing out on a brand-building opportunity in the fledgling Canadian market.For cannabis stock investors looking for a high-risk/high-reward play, SPRWF stock may be the best opportunity out there. Safest Way To Play Cannabis StocksIt's always exciting to find under-the-radar stocks to buy and feel like you have a unique play on an idea like cannabis investing. However, the safest and smartest bets are typically the ones that minimize risk and maximize diversification.Investors like Warren Buffett who have been consistently successful over time tend to focus on companies that are best-of-breed and have leading market shares. In cannabis, those companies are Canopy and Aurora.But an even safer approach to cannabis stocks is buying an ETF. The recently-launched AdvisorShares Pure Cannabis ETF (NYSE: YOLO) launched just this month and holds around 40 different stocks. No matter which companies emerge as the winners, the YOLO ETF should benefit.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 * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post 2 Under-The-Radar Cannabis Stocks with Significant Growth Potential appeared first on InvestorPlace.
Cannabis Stocks Keep Falling(Continued from Prior Part)HEXO gainsHEXO (HEXO) has been one of the best performers so far this year in the cannabis sector. The stock has returned almost 10.1% in April alone, and it has returned more than an enviable
Speaking Wednesday to the Benzinga Cannabis Capital Conference in Toronto, 420 Investor author Alan Brochstein moderated a panel of representatives from some of the leading cannabis suppliers serving the Canadian market discussing how their companies have so far approached finding a share of the still-nascent industry. One of the major choke points affecting the Canadian market is meeting demand. Scott Walters, VP of corporate development with The Supreme Cannabis Co. Inc. (OTC: SPRWF), characterized the shift after the Oct. 17 legalization.
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CannTrust Fell Last Week after Its Earnings AnnouncementCannabis sector last weekIn the week ending March 29, the cannabis sector fell. Concerns about a recession hitting the market outweighed investors’ sentiment. The Horizons Marijuana Life
How Cannabis Stocks' Valuations Stack Up amid Recent Weakness(Continued from Prior Part)Comparable multiples The cannabis sector’s median forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization)