|Bid||187.00 x 900|
|Ask||208.00 x 800|
|Day's Range||197.09 - 199.62|
|52 Week Range||150.37 - 228.91|
|Beta (3Y Monthly)||1.13|
|PE Ratio (TTM)||15.70|
|Earnings Date||Oct 2, 2019 - Oct 7, 2019|
|Forward Dividend & Yield||3.00 (1.50%)|
|1y Target Est||225.91|
Analysts are still reacting to the shocking ousting at the world's largest marijuana company Canopy Growth when co-founder Bruce Linton was removed from the board for his CEO role. Yahoo Finance's Zack Guzman discusses with Former Canopy Growth CEO and current Martello Technologies Co-Chair Bruce Linton.
An enormous shift is coming in the stock market …Source: Shutterstock I am not talking about a crisis or a bear market -- though the market's December drop does play a role in it.The shift I'm talking about will bankrupt many investors who've made gobs of money during this historic bull market over the past 10 years … and make millionaires out of a totally different type of investor.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhether you are one of those millionaires will depend entirely on your understanding of history. Anyone with a passing knowledge of stock market history should already know all about the massive shift I'm about to describe …I'm talking about a shift in the balance of power between two huge investment forces …This idea first appeared in a little-known book published in 1924. That's the year an investment adviser named Edgar Lawrence Smith published a terse little volume called "Common Stocks as Long Term Investments." The book laid out the research Smith had done on the historical performance of stocks and bonds.Originally, Smith thought he was sitting down to write a pamphlet on the superiority of bonds as long-term investments. He examined decades of stock and bond price data, from 1837 through 1922.To his great surprise, Smith found that stocks had been the better long-term investment …Today, this seems like a no-brainer. But back then, it was a tectonic shift in the widespread belief of the day. As Smith wrote …Common stocks are, in general, regarded as a medium for Speculation -- not for Long Term Investment. Bonds, on the other hand, are generally held to be the best medium for Long Term Investment -- free from the hazards of Speculation.Smith compared several baskets of more or less randomly chosen stocks versus high-grade bonds. The result was always the same: Stocks outperformed bonds.He realized that earnings reinvested in the business -- rather than being paid out in dividends -- caused stock prices to go up over the long term.Over the long term, Smith concluded, investors could count on a well-diversified portfolio of stocks to generate substantial capital gains and dividend income superior to the highest-grade bonds. He wrote …In the selection of securities for investment, we must consider more than the expected income yield upon the amount invested, and may quite properly weigh the probability of principal enhancement over a term of years without departing from the most conservative viewpoint.The idea of growth in principal as conservative was radical. But by 1929, Smith's book was a bestseller, and "growth investing" was hot, with shoe-shiners and hairdressers trading stock tips and playing the stock market on margin, despite Smith warning investors to avoid "the extreme misfortune" of investing at a market peak.When the crash of 1929 came, it wiped out thousands of investors, leading the world into the Great Depression …At the depths of the Depression, another analyst published a radical new view of investing that would change the world forever.Investor and teacher Benjamin Graham, aided by his partner David Dodd, published "Security Analysis", a 725-page, all-encompassing guide to analyzing bonds, preferred stocks, and common stocks the likes of which had never been published before (or since).Graham called Smith's book, which totals 140 pages, a "small and rather sketchy volume." He made the case that Smith's book caused investors to focus too much on extrapolating the trend of earnings growth into the future.Graham said the traditional approach to investing, which focused on "past records and tangible facts, became outworn and was discarded" in the 1920s as Smith's ideas gained popularity. "The past was important only in so far as it showed the direction in which the future could expected to move," Graham said. That's the classic mistake of all growth investing: the belief that trees will grow to the sky.In Graham's view, "The Common stocks-as-long-term-investments Doctrine," a clear reference to Smith, was based on three ideas …1\. "The value of a common stock depends on what it can earn in the future." 2\. "Good common stocks will prove sound and profitable investment." 3\. "Good common stocks are those which have shown a rising trend of earnings."Graham and Dodd immediately pointed out the two weaknesses in these assumptions. They "abolished the fundamental distinction between investment and speculation [and] they ignored the price of a stock in determining whether it was a desirable purchase."Graham was showing the world the flaws of growth investing, and advocated replacing it with sensible principles which today are known as "value investing."Later, I'll show you that over the long term, value trumps growth. But there's a subtler point here …Longtime readers of my work know the market tends to shift the balance of power back and forth between growth and value every several years. Growth has outperformed since 2009, and it looks like value is getting ready to take the lead for the next five to 10 years.This is perhaps the single most exciting moment of my entire career as a value investor and equity analyst. Value has under-performed growth for 10 years, and we are likely within several months of a major blow-off top of the longest bull run in stock market history.There's something else you ought to know about value investing …You need to start doing it BEFORE the bull market ends.Investing legend Warren Buffett gave a speech in 1984 called, "The Superinvestors of Graham-and-Doddsville." It chronicles the record of investors who worked for and learned from Graham.One was Walter Schloss, who never went to college, but took a night course from Graham. Schloss made roughly 21% a year over a period of more than 28 years, when the S&P 500 gained just 8.4% per year. During that time, the S&P 500's worst performance was in 1974, when it fell 26.6%. It was a brutal year for the market, but Schloss was down a mere 6.2% that year.Buffett also mentioned value-investing firm Tweedy, Browne. It made 20% a year over a period of nearly 16 years, when the S&P 500 returned just 7% a year. Tweedy, Browne gained 1.5% in 1974 (the year the broad market fell 26.6%).Buffett related the records of five more "Graham-and-Doddsville" value investors. Not all of them outperformed in 1974, but they all trounced the overall market by a wide margin over periods of more than a decade.A more recent study by Bank of America Merrill Lynch looked at the 90 years between 1926 to 2016 and used another value/growth data set by economists Eugene Fama and Kenneth French. The cheapest stocks made 17% per year, while the most expensive growth stocks made just 12.8% per year -- a huge difference when compounded over the long term.The data on growth versus value during bad times is mixed …As The Wall Street Journal reported last July …In bear markets before 1970, for example, the 50% of stocks nearest the growth end of the spectrum outperformed the 50% at the value end by an annualized average of 3.8 percentage points. In the bear markets of the subsequent four decades, however, it was just the opposite, with value beating growth by an annualized average of 10.7 percentage points. The current decade appears to be reverting to the pre-1970 pattern, with value lagging behind growth in both the 2011 and 2015-16 bear markets.Again … I believe we're on the cusp of a huge shift back to the outperformance of value during the next bear market. It's worth pointing out that value beat growth by an astounding 32% annualized from the dot-com top in early 2000 to the bottom in October 2002. The current mania smells a lot like that period to me, even if it is just one data point.If you want to avoid the carnage of the next few years, become a value investor right now.If you want to maximize the performance of your capital over your lifetime, become a value investor right now.If you want to take less risk, sleep better, and make more money in stocks, become a value investor right now.Value investing is hands down the best way to make a fortune in the stock market …It's how I recommend investing the overwhelming majority of your portfolio.History suggests that value investing is about to shine brighter than it has in nearly two decades. It has never under-performed growth investing for this long … So, it's like a giant rubber band that has been stretched further than ever before.Given the recent struggles of market darlings Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL), and other growth stocks lately, the rubber band looks like it has been released and is starting to snap back in a big way.The market is telling you that a much bigger shift between growth and value is likely in the next few years …Value investing naturally prepares you for bad times by discouraging you from buying what's popular and expensive. It encourages patience and discipline -- exactly what's been lacking in the market for most of the past decade. You can't predict bear markets, but you can prepare for them by being a value investor.My chief research officer Mike Barrett and I have that kind of discipline. In our Extreme Value advisory, we recommended just two stocks in 2015 as we warned investors most stocks were just too risky. It turned into the worst year for stocks since 2008.We found alcohol titan Constellation Brands (NYSE:STZ) in 2011 and rode it to a 631% gain -- one of the highest-returning recommendations in Stansberry Research history, all from a stodgy, ignored booze company.Recently, we've found great value in a handful of different industries …In the past several months, we've recommended a pipeline company, an old chemical company, and two shipping companies -- classic Graham-and-Dodd value stocks.We waited more than a year to recommend one stock until it finally got cheap enough for our liking. We recommended shares last August and soared up 32%. We think it'll double over the next few years.And with gold cheap relative to stocks, we continue to recommend investing in the two best businesses in the global mining space, bar none. One owns royalties on a diversified group of mines.The other owns a royalty-like income stream on millions of ounces of gold, silver, platinum, and palladium above the ground.You won't find two better business models in the gold mining space. And you won't find better downside protection, bigger (realistic) upside, or better management teams. Both are trading at cheap cyclical lows and ready to roar over the next five to 10 years. I believe the shift to value will send them up 10 to 20 times current levels as they continue to pay rising dividend streams.I can't predict the future and I have yet to meet anyone who could. But I've closely studied the past and the present, and as I've said before, I know two things for sure: where we stand and what to do about it.Extreme Value isn't for everyone. But if you have the discipline and desire to exploit a huge, long-term advantage in the stock market over the next five to 10 years, it might be for you.You can hear more about my No. 1 gold idea, right here.Dan Ferris is the editor of Extreme Value, a monthly investment advisory that focuses on some of the safest and yet most profitable stocks in the market: great businesses trading at steep discounts. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post The Best Way to Make a Fortune in the Stock Market appeared first on InvestorPlace.
In recent weeks, Cronos (NASDAQ:CRON) stock has been one of the strongest players in the struggling marijuana sector. Last Friday, however, CRON stock gave way as the pot stock sector plunged even farther. CRON stock dropped more than 6% and broke technical support.Source: Shutterstock Cronos stock has been one of the strongest in the industry in recent months. It hasn't collapsed like, say, CannTrust (NYSE:CTST) or Aphria (NYSE:APHA). But the overall weakness in pot stocks as a whole has caught up with CRON stock, even though it is arguably the best positioned for the current industry malaise. Cronos: Slow and Steady Wins the RaceIn my previous article about Cronos, I described how the company was interesting, but that patience was required. Canopy has been running a deliberate and gradual growth strategy. That's in contrast to many of its rivals that are spending money to boost their capacity and marketing as fast as possible.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor quite awhile, many investors viewed Crono's approach as a negative. Marijuana, like say dot-coms in the 1990s, was about having the first mover advantage. Cronos was seemingly allowing its rivals to get ahead by growing more quickly. * 5 STARS Stocks Smashing the Market (FANG Stocks, Too) What a difference a few months make, however. CRON stock has held up better than almost all its immediate marijuana peers. Why's that? Because Cronos hasn't been spending boatloads of money to pursue every revenue growth avenue possible. Instead, it has focused on its core business and is seemingly developing a sustainable and profitable business.It's interesting to note the contrast between Cronos and Canopy Growth (NYSE:CGC). Both have superstar backers. Cronos has its alliance with tobacco heavyweight Altria (NYSE:MO) while Canopy teamed up with Mexican beer giant Constellation Brands (NYSE:STZ). Altria has seemingly instilled Cronos with its methodical approach to business. Meanwhile, Canopy had an ugly falling out with its backer Constellation that resulted in Canopy's founder and co-CEO Bruce Linton getting ousted. Seemingly, Constellation grew tired of Canopy's business strategy which, so far, has led to massive losses. Cronos is One of the Only Pot Companies Making MoneyA recent Bloomberg article noted that the marijuana companies, as an industry, are running into big trouble. Instead of massive profits after legalization, instead inventory is piling up while prices plunge and losses mount. This had led analysts to suggest that a massive wave of writedowns is coming for the industry.Cronos seems to avoid the worst of it, however. The article notes that Cronos is the only one of the biggest five Canadian firms that is expected to make a profit this Q4. Cronos also made a huge profit in its most recent quarter. That comes with an asterisk as most of it came due to non-operating income. However, Cronos, unlike most pot firms, also turned an operating profit in at least some of its quarters in both 2017 and 2018.When the industry was booming, people were giving Cronos a hard time for not putting its cash to work faster. But that decision is looking more and more wise as the rest of the industry drowns in a massive flood of excess cannabis. Massive Marijuana Inventory Sinking ProducersAccording to data from Health Canada, the marijuana industry is facing a veritable deluge of cannabis inventories. In October 2018, when regulators permitted recreational use, Canada had 115,000 kilograms of dried marijuana inventory. As of April, that figure has skyrocketed to 215,000 kilograms.Meanwhile, actual consumer demand for dried marijuana only rose from 6,300 kilos a month to 8,900 kilos over the same period. When inventories nearly double but demand rises less than 50%, you know you have a major problem brewing. In fact, even if the marijuana producers stopped growing any more product tomorrow, there'd still be a massive glut. At a rate of 9,000 kilos a month of consumption, it'd take more than two years for Canadians to use up the already existing supply of dried marijuana.The situation, incredibly, is even worse yet for CBD oil. Since October, the inventory of CBD oil has spiked by 150%. Meanwhile, monthly consumer demand has risen less than 40%. This left the Canadian market with 120,000 liters of CBD oil inventory in April, against monthly demand of just 8,200 liters.How's this going to end? Like most speculative booms do: With most of the higher-cost and levered producers going bust. Tons of entrepreneurs started, and investors funded, marijuana businesses with the hopes of easy profits. Unfortunately, it wasn't to be. The supply of new marijuana is far exceeding actual consumer demand. The industry will have to cut supply and consolidate to improve pricing and achieve profitability. CRON Stock VerdictCronos is playing the long game. And that's the place to be. Many of its competitors bet the farm on sales growth spiking after legalization. Instead, it seems a lot of "medicinal" users simply transitioned to recreational use in Canada once full legalization occurred. The overall market is growing a bit, but not nearly enough to absorb the mountain of marijuana supply coming online. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Like with any speculative boom, there will be a massive shakeout ahead where the weaker players fold. Cronos, with its strong balance sheet and Altria backing, will be a survivor. In fact, it can probably do well. Oftentimes, industry leaders can buy their former rivals for pennies. But that doesn't mean you need to buy CRON stock today. Even the dot-com survivors, like Amazon (NASDAQ:AMZN) ultimately dropped 90% from their peak bubble prices. Cronos has a sound business strategy, but CRON stock will still slide with the rest of the industry until the marijuana supply glut improves.At the time of this writing, Ian Bezek owned MO stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Even Cronos Isn't Safe From the Pot Stock Implosion appeared first on InvestorPlace.
When it comes to the cannabis industry, the only real debate seems to be around how big it's going to get. Modest estimations put the industry at $40 billion by 2024. And there are few cannabis companies that catch the eye of investors quite like CGC stock.Source: Shutterstock But Canopy Growth (NYSE:CGC) hit a snag last week after it came out that the former CEO and co-founder Bruce Linton was fired. The company issued a press release saying that Linton has stepped down from his role as CEO and from the Board of Directors. Then in an interview with CNBC, Linton revealed that he was fired.Many investors were surprised to learn that Linton was let go, but this doesn't change the fundamentals of the company. Canopy Growth is still one of the most valuable cannabis stocks in Canada. Here are three reasons why Linton's firing was good news for CGC stock:InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Numbers Just Weren't ThereLinton did many things right during his run at Canopy. He secured a $4 billion investment from Constellation Brands (NYSE:STZ) and oversaw a number of important acquisitions. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip However, when Constellation Brands made this investment, it earned a 37% stake in the company. It also earned the right to nominate four members to the six-member board. And when Canopy Growth reported losses of C$98 million during its fiscal fourth quarter, this hurt Constellation's bottom line as well. According to Constellation's fiscal first-quarter results, the company reported losses of $54.4 million tied to Canopy Growth. Going forward, Constellation Brands will likely find a replacement that is more interested in improving Canopy's bottom line. CGC Stock Is Ready for New LeadershipCanopy's recent financial performance probably had a lot to do with Linton's firing. But the company may also be looking to transition to new leadership, which isn't uncommon for a maturing company. After all, it takes a different skillset to build a company than it does to run a billion-dollar global brand. According to the press release, Mark Zekulin will act as sole CEO of the company while the board looks for outside leadership. This seems to indicate the company is looking for a new leader going forward, not Zekulin or another co-CEO. The company needs to prove it can find the right person to build on Canopy's momentum going forward. The Cannabis Industry Is ChangingLinton's firing will result in a major leadership change going forward. The change caught most investors off guard and the company's shares dropped roughly 5% that day. However, the stock quickly rebounded. After all, Linton is not the first CEO to be ousted from a cannabis company he founded. Aphria (NYSE:APHA), CannTrust Holdings (NYSE:CTST), and Organigram Holdings (NASDAQ:OGI) all replaced their original CEOs with more seasoned management.The cannabis industry as a whole is changing as it moves from its entrepreneurial beginnings to becoming a major consumer products industry. As the industry continues to change, investors will begin holding these companies to a different standard where profitability is the biggest determination of success. As of this writing, Jamie Johnson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Reasons Lintonas Firing was Good News for Canopy Stock appeared first on InvestorPlace.
[Editor's note: "4 Best Marijuana ETFs for Conservative Portfolios" was previously published in May 2019. It has since been updated to include the most relevant information available.]Investors are clamoring for ways to get in on a popular, but risky, marijuana-investing craze. Despite the reality that cannabis is illegal under federal law, many states have legalized the substance and plenty of marijuana ETFs have cropped up as a result.For recreational use, Oregon, Massachusetts, California and a few more states allow marijuana use. Yet, the majority of U.S. states have medical marijuana legislation in the pipeline. Presently, with the legal disconnect between federal and state law regarding marijuana use, investing directly in U.S. marijuana ETFs and stocks is risky and replete with scams and fraud.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dependable Dividend Stocks to Buy If you're determined to get in on the marijuana investing scene, there are several "conservative-ish" marijuana ETFs for partaking in the speculative pot party: Alternative Harvest ETF (MJ)Hot off the New York Stock Exchange, the Alternative Harvest ETF (NYSEARCA:MJ) began trading on Dec. 26, 2017.Source: Shutterstock Derived from an international real estate investment trust (REIT) fund, the marijuana ETF tracks cannabis cultivators, producers and distributors, along with cannabinoid drug makers, fertilizer producers and tobacco companies.As the first of what is sure to be many U.S. marijuana ETFs, the Alternative Harvest enjoys a first-mover advantage. American Growth Fund (AMREX)It's risky to call American Growth Funds Series Two Class E (MUTF:AMREX) a conservative marijuana pick., as the fund has racked up significant losses in the pastSource: Shutterstock Yet, if you're a contrarian seeking a fund with access to the cannabis industry through marijuana ETFs you might consider AMREX.AMREX's top holdings include some well-known names and other niche pot players including GW Pharmaceuticals PLC-ADR (NASDAQ:GWPH), Scotts Miracle-Gro Co (NYSE:SMG), Abbott Laboratories (NYSE:ABT), Cara Therapeutics Inc (NASDAQ:CARA), Cannabis Sativa Inc (OTCMKTS:CBDS) and more. * 7 Dependable Dividend Stocks to Buy The fund is small and hasn't gained serious investor traction, but it might be a good diversifier against the movements of the S&P 500. Cronos Group Inc. (CRON)Go north for another fund tapping into marijuana ETFs. Cronos Group (NASDAQ:CRON), formerly known as PharmaCan Capital Corp, and formerly trading on the OTC market under "PRMCF," is an investment firm focused on investing in the medical marijuana industry.Source: Shutterstock Cronos' investments abide by Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR). Founded in 2013 in Toronto, the fund targets Canadian firms and makes minority investments in cannabis-related firms. Create Your Own Pot Mutual FundDiversification is key when investing in a speculative sphere like marijuana ETFs. You might want to dip your toes in the above marijuana ETFs and add in some popular cannabis-related stocks to round out your pot portfolio.Source: Shutterstock M1 Finance and Motif both allow you to create your own mutual fund, for extremely low fees. You can choose the investments, purchase your preferred amount and voila, you have your own marijuana ETF, comprised of both funds and individual stocks!In addition to the funds profiled above, consider adding several pure marijuana industry stocks and pot-related holdings. Top marijuana stocks include Canopy Growth, Aphria Inc (NYSE:APHA) and GW Pharmaceuticals. Peripherally related pot stocks include Scotts Miracle-Gro or Constellation Brands, Inc. (NYSE:STZ). * 7 Dependable Dividend Stocks to Buy Investing in marijuana is risky. With the disconnect between state and federal marijuana laws, putting your money in this sector sets you up for a roller coaster ride. Tread cautiously into the pot investing fields.Barbara A. Friedberg, MBA, MS is a veteran portfolio manager, expert investor, and former university finance instructor. She is editor/author of Personal Finance; An Encyclopedia of Modern Money Management and two additional money books. She is CEO of Robo-Advisor Pros.com, a robo-advisor review and information website. Additionally, Friedberg is publisher of the well-regarded investment website Barbara Friedberg Personal Finance.com. Follow her on twitter @barbfriedberg and @roboadvisorpros. As of this writing, she does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 4 Best Marijuana ETFs for Conservative Portfolios appeared first on InvestorPlace.
Canadian cannabis companies have leapt onto U.S. stock markets, dazzling investors. Here's a rundown of industry facts and how to invest in marijuana stocks.
Marijuana stocks are hot in today's market, but pot stocks are not the only way for you to profit from the habits of other people. Alcohol has been legal in America for 85 years, and the industry's consolidation has delivered some solid investment opportunities. These are companies with solid growth prospect that you can invest in with confidence.You can also quench your thirst in a few ways. You can go with diversity in Constellation Brands (NYSE:STZ), you can go for global growth with Anheuser Busch InBev (NYSE:BUD), or you can go for U.S. growth with The Boston Beer Co. (NYSE:SAM). * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Each one has a compelling back story worth knowing:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Constellation Brands (STZ)Source: Shutterstock If you're into the marijuana business, the best liquor play has you covered. That would be Constellation Brands, with a five-year gain more than double that of the Nasdaq average, and a rising dividend as well.Constellation is based in upstate New York as a wine company but is better known today for its beer and spirits. It owns Modelo as well as the U.S. rights to Corona beer and has a full range of liquor brands including Svedka Vodka, Casa Noble Tequila and Black Velvet Canadian whiskey.Constellation is a heavy advertiser and is strongest in the U.S. market, where it has 11% of the in-store wine market and over one-third of its sales. The company brings more than one-third of revenue to the net income line, which meant $3.4 billion of net income on $8 billion of revenue during the quarter ending in February. Sales were up 25% between 2015-2018 and 13 of 19 analysts following the stock rate it a buy.If you still want a pot stock, however, Constellation is a pot stock. It has agreed to buy 35% of Canopy Growth (NYSE:CGC), the Canadian marijuana grower with 30% of that country's market share as it prepares for legal recreational sales. Anheuser Busch InBev (BUD)Source: Paul Sableman via FlickrThe owner of the Budweiser brand is also your best bet for getting in on the global growth story in beer. Anheuser Busch InBev grew through acquisitions from a small Brazilian brand called Brahma, under the leadership of 3G Capital, the global investment firm that also put together Restaurant Brands International (NYSE:QSR) and Kraft-Heinz (NYSE:KHC). The company, known as InBev, bought Budweiser in 2008 and took its name.BUD stock has surged 36% in 2019, but it's still down 14% in the last 12 months. The dividend of $1.12 gives it a yield of 1.7%. Management sets the dividend each quarter, and it varies based on results, but the company is devoted to the return.In its continuing battle with craft brews, Budweiser has been innovating by crafting a brand called Reserve Copper Lager with the Jim Beam distillery and signing deals with baseball and basketball unions to put their athletes into its ads -- the first time in years active athletes have been represented. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The company's financials emphasize its global footprint and around 20% of its sales are in North America. During 2017, it had net income from continuing operations of $5.7 billion on revenue of $54.6 billion. Boston Beer (SAM)Source: Phil Dubois via Flickr (Modified)The Boston Beer Co. is the hottest stock in the beverage industry right now, up 59% so far in 2019. But SAM stock's jump has not been because of beer.Boston Beer helped jump-start the craft beer movement with its Sam Adams line, which it began brewing in 1984. While the beer is named for the Revolutionary War leader, co-founder, chairman and spokesman Jim Koch is not related to him and much of the beer is brewed outside Bethlehem, Pennsylvania, in Breinigsville.The recent run-up in the stock is thanks to a hard cider, called Angry Orchard, which was launched in 2012 and now represents 20% of the company's volume. In keeping with the founder's German-American roots, the company is also building beer gardens, large facilities in central cities that can also draw tourists.Boston Beer needed the kick of cider because its beer brands remain under pressure from big brewers like Bud, on the one hand, and tiny craft brewers on the other, which consider Boston Beer a big brewer. There are only 8.24 million shares outstanding, so its $9.3 million in net income for the first quarter came to 80 cents per share.The company's relatively small size, a market cap of just $4.66 billion, means only ten analysts currently cover the stock, and all have it listed as a hold or sell. The shares are also very volatile. Its low for the last year was $231 per share, and its high was $393.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he owned shares in QSR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post 3 Legal Highs for Your Portfolio appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) bulls are looking tired. ACB stock has now hit $10 on three occasions: January 2018, last fall, and most recently this March. Each time ACB stock has fallen sharply from that resistance level. If Aurora stock can't get back above $10 soon, the stock could be in deep trouble.The fundamental picture for ACB stock hardly looks better. Canadian marijuana companies continue to run big losses. We see management controversies developing. A scandal at a rival pot company has people worried.And the core problem in the Canadian market -- excess supply -- continues to mount. Even the Ontario market coming online has done little to fix this disturbing trend. Aurora in particular looks to have too much supply given the weak demand trends.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond This plays into another mounting concern; companies like Aurora will have to take write-downs if their businesses don't start generating profits soon. All in all, ACB stock's recent 21% slide is well-founded and more room to go. CannTrust: A Big Warning for the SectorEarlier this week, shares of Canadian marijuana rival CannTrust (NYSE:CTST) plummeted. Investors dumped CannTrust stock on news that regulators had seized a large quantity of its pot inventory. Why would they do that? The government claims that CannTrust was growing marijuana in unlicensed facilities.CTST stock has gone into free fall. It dropped more than 20% immediately following the news, and has now lost 40% of its value in the past week alone. It's down 70% from where it traded in March, and has hit fresh two-year lows. It's a stunning reminder to the rest of the industry that even in generally tolerant countries, like Canada, regulators are still a big concern if companies get sloppy with their paperwork.Why is this so important to ACB stock in particular? Because Aurora is aiming to be the global leader in medicinal cannabis. As Aurora's latest corporate presentation notes, it is active on five continents and in 25 different countries. Aurora claims to be the industry leader in both the EU and Latin America.With such far-flung operations, what are the odds that Aurora will run into regulatory trouble with at least one of its operations? I'm not suggesting Aurora is doing anything incorrectly. But in the course of making so many acquisitions and entering so many markets, it can be hard to keep everything 100% up-to-date as far as licensing and paperwork go. The market, with CannTrust at least, has said that it will take a stock to the cleaners if they run into any government headaches. It's a big risk to monitor for ACB stock going forward with its unusually extensive global footprint. Industry Bracing for Write-DownsA Bloomberg article this week noted that the marijuana industry is facing rough times ahead. Of the big players, analysts expect only Cronos (NASDAQ:CRON) to make positive net income this year. That's not a favorable result, given that 2019 was supposed to be the big year. Marijuana companies were going to move from story and hype to becoming solid businesses with legalization in place and many other market opportunities opening up.But the stream of red ink hasn't let up. On top of that, producers have overwhelmed the Canadian market with way too much inventory. As a result, Bloomberg reported that:"Instead of profit, writedowns related to unfinished inventory may be in the offing for some Canadian companies. That has some investors voting with their feet, moving out of Canada and into the U.S., where the marijuana companies are generally performing better despite a patchwork of state-by-state regulations."Investors have been increasingly moving their funds into the American marijuana plays given the state of the Canadian industry. And we saw a big sign of industry unease when Canopy's (NYSE:CGC) former CEO was forced out of his position when, seemingly, major backer Constellation (NYSE:STZ) had a disagreement over business strategy going forward.As Canopy and others have failed to turn acquisitions into profits, this raises the possibility of asset write-downs. Companies like Aurora, Canopy, and Aphria (NYSE:APHA) have bought many other smaller pot firms. Bloomberg Intelligence analyst Kenneth Shea says these companies will have to take charges against earnings in coming quarters if those assets don't start producing profits. ACB Stock VerdictYes, the price of Aurora stock has gone down a lot recently. But that doesn't necessarily mean it is cheap yet. Just look at CannTrust's non-stop plunge from $10 to $3 since March. What looks cheap often gets a lot cheaper.Let's face it: The Canadian marijuana industry is suffering from a big shakeout at the moment. People dreamed of easy profits following legalization. But it isn't working out that way. Aurora has a unique pitch for investors with its focus on medicinal and international markets, but that brings its own share of risks. With sentiment turning downward -- with good reason -- ACB stock could have a good deal farther to fall.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Aurora Cannabis: Here's Why ACB Stock Continues to Sink appeared first on InvestorPlace.
The former co-CEO of Canopy Growth (NYSE:CGC) has had a lot to say about the cannabis industry since his sudden departure July 8. One of his comments could ultimately benefit Quebec-based Hexo (NYSEAMERICAN:HEXO) and HEXO stock. Here's why.Source: Shutterstock Bruce Linton wasn't shy about his outing from his role of co-CEO at Canada's largest cannabis company. While the company's board attempted to spin the move as a mutual decision, Linton told CNBC that he was in fact fired from the company. InvestorPlace - Stock Market News, Stock Advice & Trading Tips"I think stepping down might not be the right phrase," he told CNBC, referring to the language in the company press release. "I was terminated."Constellation Brands (NYSE:STZ) CEO Bill Newlands suggested that Linton wasn't the right guy to take Canopy Growth to the next phase. Linton's an entrepreneur at heart, so he's probably not wrong to want more of an operational, globally trained business executive, who can take the company to the next level. "Our board was uniform," Newlands said. "We needed a different leader to take us to the next phase of growth."Although Constellation wasn't happy about Canopy's $39 million loss in its most recent quarter, it denies that had anything to do with Linton's ouster. Whatever the reasons, semantics aside, Linton had something interesting to say about the future direction of the global cannabis industry that could really help HEXO stock. * 7 of The Best Schwab ETFs for Low Fees It starts with "United" and ends with "America." Go South Young ManThe fact that Linton quarterbacked the tentative acquisition of Acreage Holdings (OTCMKTS:ACRGF) before he was summarily turfed says all you need to know about where he thinks the big money is in the cannabis industry. He wouldn't have agreed to spend $3.4 billion on a deal for Acreage if he didn't think the U.S. government would legalize cannabis on a federal level within the seven-year limit required by the proposed tie-up between the two companies. Already, Acreage is making plans to buy other U.S. companies in preparation for the eventual merger. Big money lies south of the border and Linton knows it. "Anybody who's dumb enough to launch a new cannabis company in Canada, I don't know what they're doing, they should have been at it six years ago. Canada is done," he told Bloomberg TV. "You're going to end up with a few winners and a whole bunch of people who wonder why they started."You might wonder what this has to do with Hexo and the U.S. market? Cannabis-Infused Drinks a Big Growth AreaThere is absolutely no possible way that Molson Coors (NYSE:TAP) didn't have a plan for south of the border when it entered into a 50/50 joint-venture with Hexo to make cannabis-infused drinks for the Canadian market last August. Hexo's VP of Strategic Development, Jay McMillan, recently stated that Truss, the name of the joint venture, is going to be ready to sell cannabis-infused drinks on Dec. 17, the first day they can be legally sold in Canada. "We'll have a very large supply so we'll be in a good position to be able to meet the demand of the marketplace and at the same time also ensure that we're meeting the variety that the marketplace wants," McMillan said in an interview at the World Cannabis Congress in Saint John, New Brunswick, in June. The joint venture can move production from one type of product to another based on consumer preference. Think of it as the beverage version of "Fast Fashion."More importantly, it's going to give Molson Coors an understanding of consumer preferences in a smaller market before jumping into a much bigger one south of the border. It plans to have CBD-infused beverages in eight states by 2020. However, I wouldn't be surprised if it was readying for the launch of cannabis-infused products the minute the federal government legalizes cannabis. Having worked with Hexo north of the border, I'd be surprised if the joint venture didn't extend to the U.S. over time. * 10 Best ETFs for 2019: The Race for 1 Intensifies With America being a much bigger market, Hexo could be on the precipice of a serious value-enhancement to HEXO stock. The Bottom Line on HEXO StockIf you're unsure about whether HEXO will follow Molson Coors into the U.S. market, you could always buy both stocks to ensure you're capturing any gains both stocks achieve as a result of their participation in cannabis-infused drinks. As an aside, both Canopy Growth and Cronos Group (NASDAQ:CRON) are ideally positioned for the U.S. market given their significant investments from Constellation Brands and Altria (NYSE:MO).Who knows? Molson Coors could end up owning a big piece of Hexo in the future. Only time will tell.At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Why Hexo Stock Is a Promising Buy Now appeared first on InvestorPlace.
In a surprise move, Constellation Brands (STZ) has forced out Bruce Linton from Canopy Growth (CGC). The news has negative ramifications for the June quarter and beyond as Constellation Brands was apparently not happy with the quarterly results that included growing losses.Bruce Linton Fired The press release from Canopy Growth suggested that co-CEO Bruce Linton agreed to step down to allow the company to find the next leader of the company. According to Bruce Linton on CNBC, he was fired. The company has placed Mark Zekulin into the sole CEO roll.The move follows a horrible March report where Constellation Brands openly complained about the huge losses at Canopy Growth. Constellation Brands invested C$5 billion in Canopy Growth last August, but the results haven’t impressed sending the stock down below $40.Per MarketWatch, CEO William Newlands made this statement on Constellation Brands earnings call:While we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy’s recent reported year-end resultsConstellation Brands bought a 38% interest at the time of the deal along with additional warrants for C$4.5 billion that if exercised would provide for a controlling interest. Naturally, the global spirits company didn’t make a near C$10 billion commitment in order to watch the capital burned via large operating losses and wild spending on acquisitions.RamificationsFor FQ4, Canopy Growth reported a massive C$97 million adjusted EBITDA loss, up from C$725 million in the prior quarter. In addition, the company including the CEO talked up a massive flood of new cannabis supply expected to hit the market in the June quarter and beyond. The June quarter harvest was 34,000 kg or roughly double the March quarter.The initial take on this executive change being announced on July 3 is that the FQ1 results are likely horrible. The expected ramp up in sales from Ontario retail stores isn’t sopping up mounting inventories. Remember, the company has access to detailed financial information following the close of the June quarter last week.Analysts forecast FQ1 revenues to reach $86 million and jump to $111 million in the September quarter. The suggestion by the firing of the founding CEO is that Canopy Growth misses estimates and reports some very large losses the rest of FY20 before Cannabis 2.0 ramps up next year.All of these numbers are far below the projections of fired CEO Bruce Linton who proclaimed that Canopy Growth would reach C$1 billion in sales in the next year. Analysts are down at estimates of only $555 million or the equivalent of C$726 million, far below his forecasts even more this executive shuffle.One should expect that these financial targets are at risk now.TakeawayThe key investor takeaway is that the market is coming around to signs that the exit of Bruce Linton might lead to more discipline in the sector. Investors should quickly fade this initial rally back above $40.The cannabis sector is in line for more turmoil in the months and quarters ahead. Canopy Growth will need to rationalize production targets and face market share losses from aggressive competitors. The best option for investors is to wait for the industry shakeout before looking to pickup shares.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Disclosure: No position.Read more on CGC: * Canopy Growth May Never Reap the Benefits of Acreage Holdings * Canopy Growth (CGC): Buy the Dip or Pump the Brakes? * Canopy: Recent Licence from Health Canada Ain’t Going to Help the Stock * Canopy Continues to Struggle to Find Its Identity More recent articles from Smarter Analyst: * 5 Cannabis Stocks on M&A; Watch * Cannabis Stock Acreage Holdings (ACRGF) Is Damaged Goods… For Now * CannTrust's (CTST) Debacle Could Get a Lot Worse * Prime Day Is Great, But Analysts Are Most Looking to Amazon (AMZN) Earnings
Former Canopy Growth CEO Bruce Linton reveals why he thinks he was fired, and why he'll likely be coming after Constellation Brands in the U.S.
Canopy Growth Corporation (NYSE:CGC) is in a "leadership transition," which continues to be a drag on CGC stock.Source: Shutterstock After another loss yesterday, CGC stock is down over 4% since the July 3 announcement that founder and Co-CEO Bruce Linton was stepping down from his position. The press release also stated that he will be leaving the Canopy Growth Board.Poor fourth-quarter results and CBD limitations in the U.S. market are only adding to Canopy Growth's woes.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Second Half of 2019 The corporate drama in particular continues a slide for Canopy Growth stock that began in May and has seen shares down over 22%. The Bruce Linton Effect on CGC StockOn July 3, Canopy Growth put out a press release announcing a "leadership transition." The Canadian company's founder and Co-CEO Bruce Linton would be stepping down from his position immediately, as well as giving up his seat on the board. "We thank Bruce and Mark for establishing the foundation for a company that is very well-positioned to lead in the emerging global cannabis market. We are also excited to embark upon our next phase of growth as global leader in the cannabis industry."The remaining Co-CEO Mark Zekulin will remain as the sole CEO while the board conducts a search for the next leader of the company. News of Linton's departure had an immediate impact on CGC stock. That's only natural when the co-CEO, founder, and public face of the largest company in the high profile cannabis industry steps down.Then Linton poured fuel on the fire. In a CNBC interview, Linton claimed that despite the wording used in the press release (which suggested an amicable split), he was actually fired."I think stepping down might not be the right phrase, I was terminated."The drama around Linton's departure has not been great news for the company and Canopy Growth stock continues to feel the impact of the move. Added to the Q4 Earnings ReportWhile Linton hasn't yet suggested he was fired because of the company's poor Q4 results, many people are connecting the dots. Constellation Brands (NYSE:STZ) invested $4 billion in Canopy Growth last August. That move included putting an insider into the role of CFO at Canopy, and adding its own board members. Naturally, a suspicion was raised that Linton was fired as CEO because Constellation had lost patience after another disappointing quarter. When Canopy posted its Q4 results on June 20, revenue was up, but so were losses which were far higher than analysts had been expecting. That resulted in a plunge in the CGC stock price as investors bailed. Constellation Brands has been giving interviews denying that Linton was fired because of Canopy Growth's financial performance, however that's only adding to suspicions. What About CBD?Now that recreational marijuana has been legal in Canada for nearly a year, one of the areas where Canopy Growth has been looking for growth is CBD -- a cannabis extract.The American market for CBD is estimated to be worth as much as $22 billion by 2022, putting it in the same league as recreational marijuana. The company has plans to release CBD products in the U.S. -- a move that should have significant upside for CGC stock -- however there's a speed bump there. The Federal Drug Administration ruled that it is illegal to add CBD to food or drinks. Yesterday, New York City's Department of Health put a ban on CBD-infused food and beverages into effect. And starting October 1, violations by restaurants or retailers will come with a fine ranging from $250 to $600. With other jurisdictions -- including the states of Ohio and Maine -- also banning CBD additives in consumables, the rollout of CBD-infused products seems unlikely to go as smoothly as hoped. All in all, not a great start to the summer for Canopy stock. But for investors looking to grab a piece of the biggest player in the legal marijuana market, the company's current struggles while it enters into its "next phase of growth" may make it a buying opportunity.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post CGC Stock Reacts to Canopy Co-CEOas Ouster appeared first on InvestorPlace.
If misery loves company, then bulls and bears may be in good company in Canopy Growth (NYSE:CGC). Nevertheless, CGC stock remains a short despite shares' sometimes erratic and temperamental personality and, now, Canopy's less-winning ways off the price chart. Let me explain.It has been a month since I penned an unpopular bearish article for InvestorPlace on CGC stock in the face of the then-latest broker approval. Investment house Stifel had issued a buy rating, with analyst W. Andrew Carter hailing shares as the "best investable opportunity" in cannabis.Since then, CGC stock -- Stifel's single most awesome prospect -- has fallen roughly 9%. Worse yet, conditions off and on the price chart look more fragile for bulls after Canopy announced a massive loss of nearly $250 million for its fourth quarter a couple weeks ago and more than three times larger than Street forecasts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThen late last week, following CGC stock's unimpressive quarter, Canopy Growth, "terminated" the company's founder and co-CEO Bruce Linton. That may eventually be good news. But for the time being, and as the company looks for new leadership at the top, the technical case for owning CGC stock continues to weaken for bulls. CGC Stock Daily ChartDespite CGC stock moving lower, as anticipated, since last month, it did so without triggering our discussed strategy for shorting shares. The suggested bearish entry underestimated CGC stock's sometimes-difficult wherewithal on the price chart in relation to its 200-day simple moving average. That effectively quashed the short in its tracks.Looking forward, while Canopy's decline thus far is nothing to sneeze at, I continue to view the CGC stock price chart as a bearish opportunity. With the 200-SMA now firmly in the rearview mirror, shares are in a testing position of last month's corrective low and bullish-looking pre-Fourth of July candle which has failed to make any headway.Coupled with CGC stock's weak-looking stochastics setup, I see shares as being in position to be shorted once the July low is broken. Given that day's massive and spirited price action, a breach should find a whole new wave of investors throwing in the towel.For protection and given Canopy's volatility, I'd suggest reduced sizing and use an initial stop 16% above the market. The recommended exit is narrowly above CGC's post-earnings high and last breach of the 200-day simple moving average. Optimistically, an eventual challenge of the December 2018 low near $25 and second test of CGC stock's 62% retracement level formed over the past two years is anticipated.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Sorry Bulls, Canopy Stock Is Still a Short appeared first on InvestorPlace.
It has been called the 800-pound gorilla in the room: Canopy Growth (NYSE:CGC), the world's biggest weed company by market cap ($14 billion), industry presence and sheer volume of cannabis production. A weed leader and undisputed heavyweight champion of pot stocks, CGC stock was the very first cannabis company to list on the New York Stock Exchange and continues to be heavily traded in both Canada and the United States.Source: Shutterstock I suppose you could say it's the Amazon (NASDAQ:AMZN) or the Apple (NASDAQ:AAPL) of cannabis stocks, but does that necessarily make Canopy Growth stock the best pot stock pick? After all, CGC isn't exactly the cheapest one on the market, and you know the old saying: "The bigger they are, the harder they fall." Can It Get Any Bigger?With a massive $4 billion capital infusion from alcoholic beverage mega-corporation Constellation Brands (NYSE:STZ), Canopy has more than enough capital and market share to dominate the Canadian weed space. While I can't predict exactly how Canopy will use those funds, I expect that the company may invest in the fast-growing edibles space as well as the international pot market as there are more than 30 countries currently pursuing a medical cannabis program.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe counter-argument among Canopy's critics is that a company of this size risks collapsing under its own weight. My reply is that just as the e-commerce space continues to grow (thus enabling Amazon to continue expanding), the global cannabis market has plenty of room to grow and Canopy Growth will, at least for the foreseeable future, have no shortage of new frontiers to conquer. Still the Revenue KingWhenever I evaluate a company, one of my prime directives is: "Show me the revenues!" In the case of Canopy Growth stock there's no shortage in that department, as the company's recently reported fourth-quarter (ending March 31) net revenues rose to $71.37 million from $20.14 million a year earlier. * 10 Best Stocks for 2019: A Volatile First Half Of course, it could be argued that Canopy's blockbuster revenue growth was driven by Canada's legalization of recreational cannabis -- and I won't dispute that this was a contributing factor. Nonetheless, a more-than-threefold increase in revenues in the span of a year isn't just the result of decriminalization: Canopy made a boatload of money during the past year, outpacing its competitors and vindicating Constellation's outsized investment. Several Steps AheadWith the cannabis market moving forward at a breakneck pace, companies must now innovate just to remain competitive. Much like Constellation demonstrated its forward-thinking mind-set by investing in Canopy, there's clear evidence that Canopy is also taking the necessary steps to maintain their bellwether position among weed firms.For instance, when the company acquired medicinal marijuana producers in South America and Africa last year, CGC showed its dedication to expansion far beyond the North American borders. Moreover, when Canopy made the commitment in April of this year to acquire American cannabis company Acreage Holdings Inc. for $3.4 billion (under the condition that the U.S. legalizes production and sale of cannabis), Canopy Growth proved to its shareholders that it's ready, willing and able to stake its claim on American soil.I tend to concur with Jefferies analyst Owen Bennett when he opines that Canopy Growth's purchase of the right to acquire Acreage is a "big positive" for the company. As I see it, Canopy is being highly proactive by not waiting for a federal ruling on marijuana law; the company's preparing for American domination, come what may. The Bottom Line on CGC StockPersonally, I'm not overly concerned about how expensive the CGC stock price is today, tomorrow or next week. I'm focusing more on the fundamentals than anything else -- and given the company's deep capital reserves and forward-thinking mind-set, I like Canopy stock for a long-term allocation at practically any price.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Canopy Growth Is the Biggest Cannabis Company, But Is It the Best? appeared first on InvestorPlace.
Constellation Brands Inc NYSE:STZView full report here! Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is low for STZ with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $6.33 billion over the last one-month into ETFs that hold STZ are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. STZ credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
For his "Executive Decision" segment of Mad Money Monday night, Cramer spoke with Bill Newlands, president and CEO of Constellation Brands Inc. , about his company's most recent quarter and their investment in Canopy Growth , after the news that Canopy's CEO, Bruce Linton, was fired for poor performance. Newlands reiterated that cannabis will be a $200 billion business over the next 10 years and Canopy remains the company best positioned to take advantage of those opportunities.
Some of the leading companies in the cannabis space are feeling pressure to justify the huge valuations of their stocks. Just look at Canopy Growth (NYSE:CGC). Recently, the company announced that its co-CEO, Bruce Linton, would step down.On an interim basis, co-CEO Mark Zekulin will run the company until a permanent leader is found. The company is considering both internal and external candidates.In a CNBC interview following his departure,, Linton said: "I think stepping down might not be the right phrase. I was terminated."InvestorPlace - Stock Market News, Stock Advice & Trading TipsAll this comes after CGC reported disappointing fiscal fourth-quarter earnings on June 20. CGC announced adjusted EBITDA of negative $257 million for the fiscal year. But perhaps the most worrisome part of the report was that its Q4 gross recreational Canadian revenue fell to C$68.9 million from C$71.6 million during the same period a year earlier. This is an indication that there are still complications with the supply and distribution of cannabis in Canada as well as continuing black-market activities. * 5 Dividend Stocks to Buy From Across the Globe The management of Constellation Brands (NYSE:STZ), which invested a whopping $4 billion Canopy stock in November, was far from thrilled. Here's what Constellation CEO William Newlands said last week about CGC: "And while we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy's recent reported year end results."Yikes! It looks like STZ played a major role in Linton's departure.So what should investors do with CGC stock now? I don't think the owners of Canopy Growth stock should panic, since the company's long-term prospects still look promising. The following developments should be bullish for CGC stock: * CGC has partnered with STZ to launch cannabis-infused beverages. The drinks are expected to go on sale in Canada later in the year, which should nicely boost CGC's growth and propel CGC stovk price higher. * After the Farm Bill was signed into law, cannabidiol (CBD) products can be made in the U.S.. To this end, CGC has been building a sophisticated hemp-processing facility in New York. * CGC has agreed to acquire Acreage Holdings (OTCMKTS:ACRGF), which has cannabis licenses in 20 states and owns a retail chain called The Botanist. The deal will position the company to benefit from the anticipated legalization of cannabis in the U.S.on a federal level.The cannabis market will continue to be volatile. CGC is not the only operator with growing pains. Other marijuana companies, including Aphria (NYSE:APHA), Tilray (NASDAQ:TLRY) and Cronos Group (NASDAQ:CRON) have also had problems. The Bottom Line on CGC StockLinton is a pioneer in the cannabis space and has quickly built an empire. As he was quoted as saying in last week's press release: "Creating Canopy Growth began with an abandoned chocolate factory and a vision."But those who have the talent to build an innovative company in an emerging market may not be the right people to run a large organization. Linton appears to be in the latter category.Yet the silver lining is that STZ recognized this early on and was not afraid to make a bold, somewhat risky, change. That is actually a bullish sign for CGC stock and should ultimately propel CGC stock price higher.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post Where Is Canopy Growth Stock Headed After the Shocking Removal of Its Co-CEO? appeared first on InvestorPlace.