|Bid||0.00 x 900|
|Ask||60.00 x 800|
|Day's Range||50.67 - 51.91|
|52 Week Range||49.82 - 67.24|
|Beta (5Y Monthly)||0.74|
|PE Ratio (TTM)||71.56|
|Earnings Date||Feb 10, 2020 - Feb 14, 2020|
|Forward Dividend & Yield||2.28 (4.44%)|
|1y Target Est||55.44|
True to Molson Coors’ CEO Gavin Hattersley’s word, the brewing company is increasing its investment in its local Blue Moon Brewing facility even as it moves its headquarters out of Denver, installing additional beer-making equipment today that will increase production capacity by 50% at the River North Art District brewpub. The investment, however, demonstrates Hattersley’s commitment to pouring more resources into innovation brands as he seeks to reverse a long-running slide in production of beverages by Molson Coors (NYSE: TAP) and find a new beverage that will generate significant sales even as the lagers and light lagers on which the company has built its brand lose more share each year among U.S. beer sales. Hattersley has emphasized that Blue Moon is one of those growth brands, as the RiNo facility, which largely makes experimental beers that it sells across the bar, has produced several new beers since 2016 that have received national or international distribution, including Mango Wheat, Iced Coffee Blonde and Light Sky, a light citrus wheat that is about to get a major marketing and distribution boost.
After launching an extensive revitalization plan, which includes a push into the non-beer category, Molson Coors Beverage Co., as it will be called at the start of 2020, will launch a hard seltzer, Vizzy, in March, according to the company's Behind the Beer blog.
Hedge funds are known to underperform the bull markets but that's not because they are terrible at stock picking. Hedge funds underperform because their net exposure in only 40-70% and they charge exorbitant fees. No one knows what the future holds and how market participants will react to the bountiful news that floods in each […]
The stock market is hitting new all-time highs. With it, many of investors' favorite stocks are becoming rather expensive. There are certainly fewer cheap value stocks today than there were last December, that's for sure.But don't despair. The rise in the S&P 500 and other stock market indexes hasn't caused all stocks to rise uniformly. Many companies have missed out on the rally. Some of these value stocks are held back by headline news, such as the trade war. Others of these value stocks are overlooked for more subtle reasons.Regardless, it's time to start sleuthing out some of the market's best holiday deals before the new year kicks off. Here are seven value stocks that need to be on your radar now.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Value Stocks to Buy: Intel (INTC)Source: Sundry Photography / Shutterstock.com Like several of the companies on this list, Intel (NASDAQ:INTC) is currently dogged by trade war concerns. The lack of certainty around the future of U.S.-China business relations puts a crimp on semiconductor spending. This has caused INTC stock to stall out just below the key $60 resistance level yet again, despite sharply improving operating metrics in recent quarters.Even as Intel stock has moved higher in recent years, the price-to-earnings ratio has failed to expand to any meaningful degree. Now, at $56 per share, Intel sells for just 12 times forward earnings. Intel's earnings, you should remember, are up from less than $2.50 per share in recent years to more than $4 per share today. Yet the market is still pricing Intel as though it were a little-to-no growth business.This idea that Intel is just a stagnant PC chip business really needs to be retired. The company has heavily invested in all sorts of new growth avenues to move beyond its legacy cash cow. Intel's strides in autonomous vehicles are particularly impressive. Yet, it still sells at a bargain-bin price. All the better for investors buying Intel stock today, however. Intel pays a healthy dividend and has bought back more than 1 billion shares of INTC stock over the course of this decade. * 7 Hot Stocks for 2020's Big Trends Sooner or later, the market will catch on to the huge earnings growth and capital return story that Intel is offering its shareholders. Wells Fargo (WFC)Source: Kristi Blokhin / Shutterstock.com Beloved by Warren Buffett and known for its sterling reputation, Wells Fargo (NYSE:WFC) used to be the cream of the banking crop. Then the scandal headlines and customer lawsuits started hitting and Wells Fargo's reputation went from outstanding to infamous virtually overnight.With it, so did Wells Fargo's valuation. Despite a roaring stock market in general and earnings growth at Wells Fargo over the past five years, WFC stock has gone absolutely nowhere. Five years ago in December, WFC stock sold for $55 per share, now it is at $54. In that time, it's gone from being highly priced to being a deep value stock.Why is it time to forgive WFC for its mistakes and buy into the story today? For one, all the old management has been cleaned out. The company has gotten rid of those with ties to the scandals and brought in highly respected former Visa (NYSE:V) CEO Charles Scharf. Two, the company is set for massive earnings growth in coming years. It is buying back 10% of its stock annually, which boosts earnings per share.Plus, Wells Fargo has billions in extra legal and compliance costs right now related to the bad customer practices of yesteryear. As those costs wind down going forward, profits will surge. Even assuming flat revenues due to the difficult interest rate environment, Wells Fargo should be able to get to $6 of EPS over the next two years, which would lead to 35% upside for the stock assuming a reasonable 12x-13x P/E ratio. Suncor (SU)Source: Kodda / Shutterstock.com Most investors hate energy stocks right now. It's not hard to see why; oil prices crashed in 2014 and have failed to meaningfully recover since then. Meanwhile natural gas has been getting more and more oversupplied with every passing year. Energy prices have been in steady retreat, so the industry has faced a calamitous downturn. Smaller exploration and production companies have been going bankrupt in droves, and things haven't been looking too good for the midstream pipeline companies either.Don't throw out the baby with the bathwater though. The major oil companies are still great investments. In fact, the longer oil prices stay down, the better the oil majors will do when the cycle finally turns up again. That's because the shortage of capital in the industry now is forcing severe layoffs and cutbacks on expansion plans. In future years, supply will drop significantly thanks to the absence of new production efforts. On top of that, the majors have been buying up assets on the cheap to take advantage of current market conditions.That's where Suncor (NYSE:SU) comes in. The Canadian integrated oil giant has been quietly building an oil sands production and refining empire over the past decade. Oil sands have become one of the world's cheapest sources of oil, with Suncor producing for just $25 per barrel or so. It also has supplies to last for many decades; oil sands, unlike shale, do not deplete quickly. Suncor's refining capacity has also insulated it from low crude oil prices in North America as it can sell higher-value gasoline and other finished petroleum products.Add it all up, and Suncor is a cash flow machine. It is offering a 12% cash flow yield, giving it room to pay a 4% dividend yield which it tends to hike by double digits every year. The company also has enough left over to both buy back stock and pay down debt. When oil prices turn up, Suncor stock will be set for a massive rally. Altria (MO)Source: Kristi Blokhin / Shutterstock.com Tobacco leader Altria (NYSE:MO) isn't quite the cheapest of value stocks, at least not compared to a month or two ago. Altria shares have recovered from $40 to $50. But don't think you're too late, Altria is still a relative bargain today. Keep in mind that MO stock traded as high as $75 per share not that long ago.It's not hard to see why Altria stock crashed. The company has seen its cigarette sales volumes decline more aggressively in recent years; the annual declines have moved from low single digits to closer to 5%. This makes it hard to keep revenues flat or increasing merely from price hikes. Altria seemingly panicked as a result, and paid way too much for its minority stake in vaping leader Juul. Investors have punished Altria mercilessly for this ill-timed blunder. As the federal government has cracked down on vaping, Juul's valuation has sunk. * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping However, the worst is over for MO stock. See, the bears can't have it both ways. If cigarette sales decline sharply, people are going to want to get nicotine from another source, of which vaping is the easiest alternative. Meanwhile, if the federal government limits vaping too much, people will simply go back to cigarettes. As long as people crave their nicotine, Altria will get its revenues one way or another. The government has seemingly realized this, and is now backing down on some of the harsher vaping rules. Molson Coors Brewing (TAP)Source: OleksandrShnuryk / Shutterstock.com If cigarettes and vaping aren't up your alley, how about beer? This brings us to Molson Coors Brewing (NYSE:TAP) which makes those namesake beer brands along with other well-known labels such as Miller and Blue Moon.The company acquired 100% ownership of Miller along with many other assets in 2016 when Anheuser-Busch InBev (NYSE:BUD) acquired SABMiller and regulators forced the combined entity to sell off some brands for antitrust reasons. Molson Coors took advantage and grabbed these assets at a seemingly favorable price. However, it took on a lot of debt to complete the deal, and combined with weak sales in recent years, its financial results have underwhelmed.This, in turn, has caused investors to dump TAP, making it one my favorite value stocks. It's down from a high of $110 to just $51 now. However, the tide is starting to turn. The balance sheet is getting stronger, and management just rewarded shareholders for their patience with a gigantic dividend hike this year.As a result, TAP stock now trades for just 12x earnings and pays a 4.5% dividend yield. The craft beer movement has already lost steam -- craft is barely taking any additional share from big beer. It's only a matter of time until Molson Coors gets revenue growth to kick in again, and the stock should move back up above 15x earnings, leading to sizable capital gains on top of the healthy dividend yield. Eastman Chemical (EMN)Source: Michael Vi / Shutterstock.com With its recent selloff, Eastman Chemical (NYSE:EMN) is back into the deep value stocks zone. EMN stock is now going for just 10x earnings. Traders have dumped shares of the former Eastman Kodak spinoff thanks to the trade war, which has caused a bit of an earnings slowdown. Eastman was originally supposed to make about $7.75 in EPS this year, now it will be closer to $7.20. Regardless, for a $75 stock, that's fantastic.Impressively, Eastman is on track to produce more than $1 billion in cash flow this year, meaning it is selling for less than 10x that metric. With all that cash, Eastman can pay a 3.3% dividend yield, buy back stock and pay down debt all at the same time. * 7 Exciting Biotech Stocks to Buy Now Investors aren't enthused for chemicals stocks right now because they are seen as cyclical. That, plus global trade concerns, have the sector in the penalty box. Make no mistake though, if this Federal Reserve easing cycle leads to any signs of an economic pick-up in 2020, these left-for-dead chemical stocks like Eastman should come roaring back. Corporacion America Airports (CAAP)Source: Shutterstock Finally, we get to the last of our value stocks, and this one is deeply under-followed. That's because Corporacion America Airports (NYSE:CAAP) is both a fairly recent initial public offering, and a company whose operations are centered in Argentina. The IPO was unfortunately timed, as Argentina's economy soon went into a tailspin after CAAP stock started trading on the New York Stock Exchange. To make matters worse, Argentina voted in a left-wing government this fall, triggering a rout on Argentine stocks.Add it all up, and CAAP stock has hit massive turbulence dumping from the IPO of $16 per share to just $4 now. Oddly enough, given the fall in stock price, the actual business is still going reasonably well. The company has a healthy balance sheet, and passenger traffic is still rising across its portfolio of airports. CAAP gets about 60% of its airport traffic from Argentine airports, but it also has major holdings in Brazil, Italy, Ecuador and various other countries. As a result, the market has now crushed CAAP stock for a 75% loss despite the fact that only 60% of its business is in Argentina. Even if Argentina goes into an economic depression, the other airports should more than support the stock price here.If the Argentina airports face a moderate decline in traffic, and the rest of the portfolio performs as is, the stock would be trading for less than 5x its earnings before interest, taxes, depreciation and amortization. That's an insane price for an airport operator -- publicly traded comparables in Mexico sell for around 12x EBITDA. European airport operators tend to sell for 15x-20x EBITDA. Currently, another emerging markets airport operator in Thailand is selling for nearly 25x. Just getting to 12x, where Mexican airports sell for, would cause CAAP stock to nearly quadruple from today's prices.There's no guarantee it will happen, but the odds favor an upturn in sentiment toward Argentina rather than a further darkening from the already-despondent mood. When things turn back up, CAAP stock should soar.At the time of this writing, Ian Bezek owned EMN, INTC, WFC, SU, CAAP, MO and TAP stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post 7 Overlooked Value Stocks to Buy That Will Shine in 2020 appeared first on InvestorPlace.
Boston Beer (SAM) witnesses robust depletion and shipments owing to innovations, quality of products and strong brands. These have been aiding its quarterly performance.
Molson started testing its Hard Cold Brew Coffee made with Colombian and Brazilian coffee as part of a partnership with La Colombe Coffee Roasters. After a few months of testing its coffee beverage, Molson is "hitting our benchmarks," Janice Wisniewski, Molson Coors' associate marketing manager for innovations, told the Denver Business Journal.
Editor's Note: Welcome to TBJ Plus, a Triangle Business Journal aggregation of trending topics across the Carolinas and the nation that is of interest to the Raleigh-Durham-Chapel Hill area communities. Incoming Raleigh Mayor Mary Ann Baldwin tells TBJ Plus in an exclusive interview that she has started talking to the companies and that the city may have created an unnecessary burden earlier this year that led the companies to cease operations in the city. The previous City Council agreed to cap the number of scooters in the city at 1,500 and raise the annual fee from $150 to $300 per scooter.
The 4.2% alcohol-by-volume drink is one of just a handful of boozy coffee offerings coming onto the national market.
With hundreds of new jobs moving to Milwaukee as part of Molson Coors Beverage Co.'s revitalization plan, the city of Milwaukee is proposing tax incremental financing of up to $2 million, contingent on the addition of new workers and maintaining the workers currently at the brewery and other Milwaukee facilities.
If you own Hexo (NYSE:HEXO) stock, you're probably wondering if it can get any worse. Hexo's share price was recently down 80% from its April peak. Just since the beginning of October, HEXO stock had lost more than half of its remaining value. Shares recently tanked below the $2 mark following lousy earnings both at Hexo and at rivals such as Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). This week, though, HEXO stock has put in a substantial turnaround, moving from below $2 back to more than $2.50 per share.Source: Shutterstock Was that the final bottom in HEXO stock? With folks looking past last quarter's earnings, and with the tax-loss selling season winding down, is this the time to load up on the shares?While the bounce in HEXO stock may continue for now, for longer-term investors, sadly, there's even more downside ahead for Hexo. Here's why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Disastrous Quarterly ResultsHexo's earnings results at the end of October gave investors little reason for optimism. It's no surprise that traders have dumped HEXO since the company announced earnings.Looking merely at revenues, things might not seem that bad. Overall corporate revenues jumped from 13 million CAD ($9.79) to 15.4 million CAD sequentially. That leaves out a key fact, though. The merger with Newstrike closed this quarter. Excluding those revenues, Hexo's sales would have been less than 13 million CAD , making a second consecutive quarter of falling revenues. * 5 Lottery Stocks With Triple-Digit Upside This makes sense, as Hexo isn't a leader in the medical cannabis space … yet. Meanwhile, prices are plunging in the recreational space as inventory vastly exceeds demand. This led to a particularly unfortunate situation where Hexo purchased inventory earlier this year from outside parties, and is now forced to resell that supply at a loss.This quarter's earnings confirm that Hexo's business strategy hasn't worked out any better than its peers. And there's no near-term turnaround in the works.The company lowered Q1 2020 guidance and pulled its previous full-year 2020 guidance altogether. Think about it: With even the likes of Aurora and Canopy struggling mightily, why buy Hexo? Shrinking To SurviveUntil recently, Hexo had been pitching investors an incredible growth story. Things have changed dramatically though; now Hexo is retrenching.They're reducing the levels of operations at their home facility in Quebec. And they're suspending grow operations at their Niagara facility which they just finished acquiring from Newstrike. On top of that, they're laying off several hundred employees. Again, none of this is unique to Hexo, rather, it's a similar refrain across the cannabis space. But it shows questionable planning on Hexo's part; their strategic moves simply haven't panned out throughout the year.The Newstrike deal in particular has raised more concern due to an admission that some unlicensed cannabis was inadvertently grown there. As Hexo disclosed in a recent press release:On July 30, 2019, shortly after the Newstrike Brand Ltd. acquisition closed, HEXO discovered that cannabis was being grown in Block B, which was not adequately licensed. HEXO management immediately ceased cultivation and production activities in the unlicensed space. The Company notified Health Canada instantly, and the regulator was satisfied with HEXO management's corrective actions. For now, it appears this won't be a major issue for HEXO stock, particularly since they are dialing back growing operations anyway. However, don't forget what happened to CannTrust (NYSE:CTST) earlier this year; the regulators can hit hard if they sense any more weakness in compliance. Hexo Let Investors Down With Optimistic GuidanceWe know the marijuana industry is going through a tremendous struggle at the moment. We can forgive a management team for doing its best and coming up short of expectations given the incredible headwinds in the industry right now. It's harder, however, to look the other way if management gives wildly promotional forward guidance and then whiffs by a mile. * 9 Tantalizing Dividend Stocks for 2020 Heading into the October quarter, management had suggested that the company would bring in more than 30 million CAD in revenues. The actual number was only half of what it had expected. And for 2020, Hexo had been projecting 400 million CAD in sales. Now it is struggling to grow revenues at all. Needless to say, with the most recent quarterly results coming in at just 15.4 million CAD, the company is annualizing at about 60 million CAD -- there's no reasonable path to 400 million CAD in sales in the near future, and anyone that bought HEXO stock on that previous guidance has got to be extremely frustrated now. HEXO Stock VerdictThe HEXO stock story isn't over yet. The company, with its recent capital raise, still has money to keep on going for quite awhile yet. And while management's recent cut to guidance was devastating, there is still a potential growth story here.Sure, it'd be wise to scale back your expectations after what we just saw. Still, the company has several irons in the fire, including its joint venture with Molson Coors (NYSE:TAP) that could give it a big leg up in grabbing the cannabis beverages market. I've said it before, I'd much rather own TAP stock than HEXO stock if that's the angle you're interested in. If it works out, both companies will prosper, if it flops, Molson Coors still has the beer business to keep paying the bills. Regardless, it's a potential catalyst that could revitalize the HEXO stock price.At the end of the day, though, Hexo is still selling for a more-than $650 million market cap. That's really high for a company that is losing lots of money, has seen revenue growth stall out and whose management just blew its credibility with its previous revenue forecast.I know HEXO stock may seem cheap given the sub-$2.50 share price. But even at this level, it's still baking in a lot of optimism that the company will get back on track in 2020. I'm not so confident of that.At the time of this writing, Ian Bezek owned TAP stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post Sell Any Bounce in Hexo Stock After Massive Earnings Flop appeared first on InvestorPlace.
Molson Coors Brewing Company today declared a regular quarterly dividend on its Class A and Class B common shares of US$0.57 per share, payable December 13, 2019, to shareholders of record on December 2, 2019.
You don't have to look too far to recognize the devastation that has occurred among marijuana stocks. Due to generally disappointing financial performances, the sector has been awash in red ink. Unfortunately, investors are losing patience with this chronically losing market, which has -- unsurprisingly -- affected marijuana penny stocks disproportionately.Naturally, I understand if someone is hesitant to dive into this sector, irrespective of the discount. We can talk all day about the transformative potential of legal cannabis, and I've done exactly that. But Wall Street has nervously eyeballed financial viability. Without any of the major players stepping up to the plate, cannabis investments, especially marijuana penny stocks, have incurred volatility.But if you're willing to absorb the bruises inherent in "botanical" companies, you may want to reconsider marijuana stocks. First, several green competitors rebounded on Tuesday on the announcement of a proposed Congressional bill to remove "criminal prohibitions against marijuana at the federal level."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf successful, this would represent a huge lift for both the major cannabis players and marijuana penny stocks. Currently, the Agriculture Improvement Act of 2018, colloquially known as the farm bill, federally legalizes industrial hemp and hemp-derived products. Specifically, this means that hemp or hemp-derived cannabis products like cannabidiol (CBD) cannot contain more than 0.3% tetrahydrocannabinol (THC) content.A second upshot for marijuana stocks is that Americans have a growing distrust for the medical system. That's not surprising, considering major pharmaceutical firms' involvement in the raging opioid crisis. People are looking for true, naturally sourced therapies and cannabis offers a viable pathway. * 7 Killer Stocks No One Knows About With that, let's take a look at seven compelling marijuana penny stocks: cbdMD (YCBD)Source: Shutterstock Before I get into it, I should caveat that cbdMD (NYSEAMERICAN:YCBD) isn't a name most folks would consider belonging among key marijuana penny stocks to buy. Furthermore, cbdMD does not specialize in marijuana products. Instead, they focus on broad spectrum CBD -- products that contain CBD, other cannabinoids and essential oils (terpenes), but zero THC.This last point is especially important for YCBD stock because cbdMD has endorsement deals with several pro-athletes. Arguably, the most well known is two-times Masters champion Bubba Watson. As Watson relayed in an interview, he needed a product that would help with the aging process. He also required a product that would allow him to compete professionally without pinging positive for a drug test.Another reason why YCBD stock deserves a top billing is that cbdMD is headquartered in the U.S. And the American market is wide open for a company to establish a CBD brand, according to cbdMD CEO Marty Sumichrast. Thanks to a comprehensive and effective product portfolio along with key endorsements, YCBD stock is a name you shouldn't ignore. Hexo (HEXO)Source: Shutterstock Among the worst hit marijuana stocks, Hexo (NYSE:HEXO) was trading within the respectable $4 price range in late summer of this year. However, a rash of poor fiscal performances in the sector substantially hurt HEXO stock. And specific to the underlying company, the growing losses in net income have worried investors.As a result, HEXO is now counted among the worst hit marijuana penny stocks. Still, if you've got an iron stomach, I believe this embattled firm has serious upside potential.For one thing, management has earned respect for its forthrightness regarding its unlicensed cannabis production incident. Due to an oversight, Hexo mistakenly produced cannabis in an unlicensed area. However, unlike CannTrust (NYSE:CTST), management reported the incident to governing agency Health Canada. Optically, despite an unfortunate error, I think it is a good look for HEXO stock because of the honesty involved. * 10 Best High-Growth Stocks to Buy for Young Investors Second, Hexo has a joint venture with Molson Coors Brewing (NYSE:TAP) to produce CBD-infused beverages. Experts peg this market to hit over $1 billion by 2022, presenting an opportunity for HEXO stock. CV Sciences (CVSI)Source: Kimberly Boyles / Shutterstock.com Under the best of circumstances, equity shares of small pharmaceutical companies are subject to extreme volatility. Logically, then, marijuana penny stocks that focus on cannabis-based drugs are just as unpredictable, if not more so. And that's the case with CV Sciences (OTCMKTS:CVSI) and CVSI stock.Back when the weed market was still fresh, companies like CV Sciences experienced dramatic surges in valuation. However, with the Street demanding hard results and not merely tantalizing narratives, the cannabis investment sector crumbled.Still, CVSI stock makes a compelling case for itself if you're willing to accept the wildness in its pricing dynamic. One of the company's drugs is a synthetic CBD formulation designed to curb smokeless tobacco use and addiction. With the vaping crisis becoming one of the hot topics earlier this year, CV Sciences' products have incredible relevancy. Cannabis Sativa (CBDS)Source: Shutterstock Like many marijuana penny stocks, Cannabis Sativa (OTCMKTS:CBDS) started off with great promise thanks to its multi-varied brands and businesses. For instance, the company opened up its first "hi Brand International" dispensary in Portland, Oregon. It's also seeking opportunities for expansion into green-friendly states.That said, one of the more intriguing businesses connected to CBDS stock is the skincare market. According to retail cannabis market experts, the CBD skincare market will likely reach $1.7 billion by 2025. That might not sound like a groundbreaking number. However, considering that Cannabis Sativa only made half-a-million dollars last year, this could be a huge prospect for CBDS stock. * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio Moreover, speculators should consider the broader implications. Major marijuana stocks, such as Cronos Group (NASDAQ:CRON), are entering the U.S. CBD market via acquisitions like the Lord Jones deal. Of course, Lord Jones is a big CBD skincare brand. Thus, CBDS stock is at least fundamentally moving in the right direction. MariMed (MRMD)Source: Shutterstock If there's one phrase to describe marijuana stocks, it's that this industry represents the perpetual clash between theory and reality. In theory, legal cannabis opened up the door to previously untappable revenue streams. But in reality, the industry suffered from unexpected supply chain issues, stymieing an otherwise unprecedented breakthrough.However, this theory-versus-reality conflict also benefits MariMed (OCTMKTS:MRMD) and MRMD stock. Primarily, MariMed operates as an administrative and operational advisor for the burgeoning cannabis industry. While legalization in North America has brought initial enthusiasm, cannabis-based enterprises are incredibly tough to get up and running. Here, MariMed plays the role of expert consultant, navigating clients away from common pitfalls toward higher probabilities of success.Despite the obvious need for the company's services, that hasn't stopped MRMD stock from turning volatile. In fact, today, it's firmly in the territory of marijuana penny stocks. Still, shares appeared to have stabilized since mid-October, tempting the contrarian approach. MedMen Enterprises (MMNFF)Source: Shutterstock It's almost tragic what happened to MedMen Enterprises (OTCMKTS:MMNFF) recently. Just days ago, MMNFF stock was trading above the all-too-critical $1 threshold. But with the ugly realization that the underlying company could face bankruptcy, shares tumbled below that threshold. Now, it's on this list of very speculative marijuana penny stocks.But can it eventually join the ranks of "regular" marijuana stocks? I'm going to be blunt: MMNFF stock is now one of the riskiest names in the cannabis markets. On the flipside, it does have tremendous upside potential because of this overwhelming risk.In my interview with cbdMD's CEO Marty Sumichrast, he articulated the concept of cannabis branding. When it comes to the retail space, I can't think of a cleaner and more professional brand than MedMen Enterprises. It doesn't try to be an over-the-top weed distributor. Instead, they're focused on quality products and excellent customer service. * 7 High-Yield ETFs to Buy Now Will this be enough to save MMNFF stock? Undoubtedly, this is a gamble, but an interesting one. Diego Pellicer Worldwide (DPWW)Source: Shutterstock If you're looking for the "ultimate" in marijuana penny stocks, then treat yourself to Diego Pellicer Worldwide (OTCMKTS:DPWW). Funny, but true story: I didn't even know about this company's existence until an InvestorPlace reader named Anthony reached out to me and asked me about it. Curious, I researched DPWW stock and I must say it's an intriguing concept.Generally speaking, legal cannabis retailers fall under two camps: those that emphasize the "street image" of the cannabis plant and businesses that cater to therapeutic use. However, Diego Pellicer introduces a third option: premium, luxury-themed cannabis products.Under ideal circumstances, DPWW stock might work out. Making cannabis isn't exactly rocket science. Thus, with supply rising, industry players need a distinguishing brand. Diego Pellicer has that in droves.What it doesn't have, though, is market credibility. DPWW stock currently trades at less than 2 cents. You've been warned.As of this writing, Josh Enomoto is long YCBD, HEXO, and MRMD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Consumer Stocks to Buy Before Black Friday * 9 Tantalizing Dividend Stocks for 2020 * 5 Lottery Stocks With Triple-Digit Upside The post 7 Marijuana Penny Stocks That Have Ridiculous Possibilities appeared first on InvestorPlace.
New York City over the weekend hosted the Beer Marketer's Insights (BMI) conference with multiple themes discussed and management teams offering presentations. Bank of America analyst Bryan Spillane attended ...
After releasing its revitalization plan, which included a push into non-beer categories, Molson Coors made a minority equity investment in El Segundo, California-based L.A. Libations, a non-alcoholic beverage manufacturer.
The hard seltzer market is valued today at around $550 million but could surge to a $2.5 billion market by 2021, according to UBS analyst Sean King. The market share gain is in part coming at the expense of beer companies, including the "King of Beers," Budweiser. Budweiser's parent company Anheuser Busch Inbev NV (NYSE: BUD) is investing $100 million to launch Bud Light Seltzer, CNBC reported over the weekend.
Amid a cash crunch, Hexo (NYSE:HEXO) stock continues its sell-off. The Gatineau, Quebec-based marijuana producer has seen its cash dwindle as investors have turned on the sector amid oversupply and vaping-related issues. As a result, a company that once came close to becoming profitable now looks more like a sinking ship. Unless and until Hexo stock can improve its cash situation and establish a bottom, investors should stay away.Source: Shutterstock I'm forced to offer a mea culpa on Hexo stock. I had considered HEXO one of my favorites of the non-top-tier marijuana stocks.After all, they have a strong base in their home province of Quebec, which constitutes about 21% of Canada's population. Also, they established an alliance with Molson Coors (NYSE:TAP) to produce cannabis-infused beverages following their recent legalization in Canada. On top of that, they had been on track to turn a profit.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe latest earnings report changed that. HEXO plummeted by 23% in one day as the company dramatically lowered fourth-quarter guidance and withdrew guidance completely for fiscal 2020. * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside The actual earnings release for the fourth quarter later in the month led to a further decline. The stock price has now fallen by more than 46% in a little more than a month.Outside of the company, the vaping crisis has contributed to its problems. Though the latest evidence points to black-market vape pens, the entire industry has suffered.Moreover, the Canadian market faces a massive oversupply. Thanks in part to high taxes and tight regulation, many consumers continue to turn to the black market. As Josh Enomoto mentioned, illegal weed makes up about 60% of the market. Now, the company ceased production at one facility and took 200,000 sq. ft. offline at its main facility in Gatineau, Quebec. HEXO Low on CashTop executives have left the company, including the CFO, who left soon before Hexo issued guidance. The timing for this is not fortuitous as the company faces a cash crunch. It currently holds about CAD$139.51 million in cash. Since it lost CAD$81.56 million in the last quarter, the company needs to find funding quickly.As Wayne Duggan pointed out, the CAD$70 million it raised through a 7% dilution will not get it through a quarter as its current burn rate. The CAD$30.26 million in long-term debt is not high, considering its CAD$776.76 million in equity.Still, without a dramatic cut in losses, that option appears limited as well. Further, the deal with Molson Coors is not the kind of investment that Constellation (NYSE:STZ) has made in Canopy Growth (NYSE:CGC). Hence, Hexo is not equipped to weather this crisis as well as Canopy or other top-tier weed stocks.Have I given up all hope? Not yet. However, it appears to have entered a "blood in the streets" moment. The question has become whether Warren Buffett-like investors will buy into this crisis. I think maybe, but not yet. Hexo stock trades near its 52-week low. Only rarely are such points a good time to buy. Unless it finds a floor somewhere above $0 per share, investors probably should watch HEXO instead of buy. The Bottom Line on Hexo StockUnless and until the HEXO finds a floor, investors need to stay on the sidelines. The outlook for Hexo stock has turned dramatically negative over the last few months. Hexo look poised to become profitable a few months ago. Its substantial market share in Quebec and deal with Molson Coors appeared to point to a bright future.However, thanks to a marijuana supply glut and concerns over vaping, instead, the company faces a cash crunch. With the Hexo stock price now below $2 per share, further dilution is not much of an option.Also, even with low liabilities, debt financing can only help them sustain quarters like the previous one for a limited time. Hexo is not dead yet. However, if it saves itself, it will not happen without more pain.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post Hexo Stock May Be Fast Approaching Its Blood-on-the-Streets Moment appeared first on InvestorPlace.
On Oct. 28, Quebec-based cannabis producer Hexo (NYSE:HEXO) reported subdued financial results for its fiscal fourth quarter. Wall Street was not pleased with the numbers, primarily because Hexo's management issued Q1 guidance that indicated that its revenue would not increase. Since the quarterly report, HEXO stock has been volatile and has dropped. On Nov. 14, its share price hit a 52-week low of $1.80.Source: Shutterstock In 2019, most marijuana stocks have been extremely volatile. In 2019, Hexo stock price has tumbled about 47%. I do not expect Hexo stock to rise meaningfully any time soon. Hexo's Earnings Failed to ImpressHexo's Q4 sales came in at CAD $15.4 million, up from $13 million in the previous quarter. Yet analysts, on average, expected the company to post sales of CAD $16.04 million. Over 90% of the cannabis that HEXO sold was used for recreational purposes.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost cannabis companies are burning through loads of cash and losing money as if there was no tomorrow. Their cash flows are far from predictable. In Q4, Hexo posted a net loss of CAD $56.7 million. Its loss in Q4 of 2018 was $10.5 million. * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside When Hexo reports its Q1 earnings in January 2020, investors are likely to look at the company's revenue mix. In Q4, over 80% of its total sales came from dried flower. In recent months, the price of dried flower has been decreasing, and consumers have not been loyal to any particular brand. If those trends continue, investors may decide that Hexo stock is overvalued. Canada's Cannabis Industry Faces a Wide Range of IssuesThe Canadian cannabis industry is currently facing several issues, ranging from health worries in the wake of deaths that may be related to vaping to regulatory issues to risky business models and investments to concerns about rich stock valuations. All these issues have an effect on the commercial success of legal cannabis as well as on the competitiveness of a company like Hexo.It is also important to remember that weed is an agricultural commodity. In late 2018, during the initial weeks of legalization in Canada, Canadians spent about $40 million on legal weed. However, since then, legal sales of the drug haven't really been as strong. In fact, they have been much less robust than initially anticipated.There may be too many cannabis companies in Canada, which is a relatively small market. On the other hand, the black market, with its lower prices, is still thriving in Canada, accounting for close to 50% of the nation's total recreational sales.The U.S. federal government regards marijuana as an illegal substance. Yet recreational cannabis is legal in 11 states. More states allow cannabis to be used for medicinal purposes.However, no one knows when (or if) the federal government will legalize cannabis. And sales outside of North America are not big enough to meaningfully boost Hexo stock or other weed names. Yet Hexo Stock Has an Important PartnerCanada recently legalized cannabis-based food and drinks. But these new products are not expected to hit shelves until Dec 16.In August 2018, Hexo and Colorado-based Molson Coors (NYSE:TAP) announced a joint venture called Truss. Molson Coors is the third- largest brewer in the world with a market cap of about $12 billion.Truss is a stand-alone entity with an independent management team. Molson Coors owns a controlling 57.5% interest in the JV. Hexo owns the remaining 42.5%. The new JV is currently developing a range of non-alcoholic cannabis drinks that will be marketed in Canada beginning in mid-December.Hexo's management has recently said that the company will "have a very large supply… [and] be able to meet the demand of the marketplace." Truss is also likely to sell CBD-infused drinks in the U.S. as of 2020.The rollout of edibles and drinks may help expand Hexo's margins. Prior to the JV announcement in Aug. 2018, Hexo stock price was hovering around $3. Therefore, if the company is able to capitalize on the legalization of cannabis food and drinks, the Hexo stock price may move toward that level again, versus its current price of $1.85. So Should Investors Buy Hexo Stock Now?I am not expecting most of the marijuana stocks to rise much in the coming weeks. I think that their high valuations may fall further in coming months.And the longer-term technical charts of most marijuana stocks, including Hexo, are telling investors to exercise caution. Their trend lines and support and resistance levels are especially weak. If you are considering investing in Hexo stock, you may want to start building a position between $1.50 and $2 and look to hold the stock for several years.Hexo stock would likely hit strong resistance at $2.50. Only after the stock is able to push through and stay above $2.5 and $3 can Hexo shareholders begin to relax.Those who already own Hexo stock may consider hedging their positions with at-the-money (ATM) covered calls. Such a hedge would not only enable them to participate in an up move by HEXO, but also provide some downside protection.As of this writing, Tezcan Gecgil holds covered call in TAP stock (Nov. 15 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post Will It Get Worse Before It Gets Better for Hexo Stock? appeared first on InvestorPlace.
Thanks to both Canadian legalization as well as the 2018 farm bill here in the states, North America has essentially become "little Amsterdam." Moreover, favorably shifting public sentiment in the U.S. has made cannabis-infused beverage companies like New Age Beverages (NASDAQ:NBEV) intriguing for both consumers and investors alike. Particularly, NBEV stock appeals for the underlying broad mixture of cannabis and general health-related drinks.Source: monticello / Shutterstock.com Still, cannabis stocks are infamous for their volatility. Due to myriad challenges, along with questions about the industry's financial viability, several investors have dumped out of their positions. Despite New Age Beverages stock not being a pure cannabis play, shares have not received an exemption from the pain. Naturally, investors remain unsure how to approach NBEV.Further adding to the pressure, New Age will release its third-quarter earnings results on Nov. 14 before the opening bell. Since Q2 2017, the company has failed to deliver positive earnings per share. As such, investors will likely want to see some meaningful pathway toward profitability for NBEV stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven the rough waters of the broader cannabis industry, it's difficult to guess how the markets will respond on Thursday. Still, legal cannabis products, especially cannabis-infused beverages are incredibly popular. With that, here are three arguments for and against New Age Beverages stock: Pros: Strong Projected Growth for Cannabis BeveragesCannabis-based beverages, specifically cannabidiol or CBD-infused drinks, will be huge in the U.S. According to research firm Zenith Global, this market will hit a value of $1.4 billion at the end of 2023. To put this into context, Zenith projects CBD beverages to reach $227 million at the end of this year. * 7 Tech Stocks You Should Avoid Now In addition, companies like New Age have the opportunity to convert curious newcomers to cannabis-based products and therapies. According to an August 2019 Gallup poll, 14% of Americans say they use CBD. While impressive, this figure also leaves an ample opportunity for New Age to advantage, potentially lifting NBEV stock.Not only that, High Yield Insights performed a study revealing that the most popular CBD products are baked goods. Coming in second place are CBD gummies. While not beverages, these are consumable formats with which everyone is familiar.Therefore, it's not a stretch to assume that the folks who like CBD edibles will eventually make the switch to CBD-infused beverages. That's a potential net positive for New Age Beverages stock. Pros: American Market Wide Open for NBEV StockRecently, I interviewed Marty Sumichrast, chairman and co-CEO of cbdMD (NYSEAMERICAN:YCBD). In our long-format discussion, Sumichrast mentioned that the U.S. market is wide open. Furthermore, he argues that Americans prefer CBD to tetrahydrocannabinol (THC)-based botanicals.Combined with the company's impressive array of products, this dynamic places cbdMD in a position to become the dominant CBD brand in the U.S.As a shareholder of YCBD, I wish them well. However, because the U.S. market is so open without an established dominant player, it allows companies like New Age to carve out a niche in a specific sub-segment like CBD-infused beverages. Pros: New Age Beverage Stock Isn't a Pure Cannabis PlayAlthough heavily associated with CBD, NBEV stock isn't purely a CBD investment. And right now, I'd say that fact offers some key advantages.Namely, New Age hasn't followed its cannabis peers in aggressive fiscal maneuvering. Although the company hasn't been profitable in a while, you can clearly see the pathway to eventual profitability. Primarily, NBEV features strong revenue growth and reasonable expenses.Also, New Age has a relatively solid balance sheet, highlighted by nearly $84 million in cash and only $13.4 million in long-term debt. Combined with its long-term capital lease obligations, these liabilities amount to $60.5 million.Simply put, management isn't making wild swings. At this point, that's a positive for NBEV stock. Cons: Legal Uncertainty in U.S. CBD MarketDespite much potential, New Age hasn't yet entered the CBD-infused beverage space in the U.S. Why? Management has blamed a "murky" legal environment.I don't fault them. Under the 2018 farm bill, industrial hemp and hemp-derived products are legal for individuals to purchase. But that doesn't necessarily mean that CBD is legal. After all, cannabis is still considered a Schedule I drug.How do American companies get around this tricky situation? CBD derived from hemp is permissible under the farm bill. However, CBD from any other source -- even if it contains less than 0.3% THC as mandated by the law -- is illegal.Even when you have everything right, CBD laws are still very confusing and perhaps contradictory. Because of this uncertainty, New Age Beverages stock risks losing momentum to competitors. Cons: Too Many AssumptionsAs enticing as CBD beverages are, nobody really knows how the market will respond. Though enticing for those looking for a non-offensive way to enjoy cannabis, CBD-infused drinks could end up becoming a fad.More critically, CBD itself could also become a fad. While I don't think this will be the case, I concede that the medical community is hesitant about endorsing CBD. Further research is necessary for medical professionals to feel comfortable prescribing cannabidiol or other cannabis-based therapies.Until that happens, NBEV stock has a fundamental risk associated with it. Cons: Big-Name CompetitionAs with most good ideas, NBEV isn't the only one pursing cannabis-infused beverages. Several players are involved in the CBD beverage space, most notably the joint partnership between Molson Coors Brewing (NYSE:TAP) and Hexo (NYSE:HEXO).Depending on how popular CBD-infused beverages become, other big players might enter the space. This could either be positive for New Age Beverages stock (i.e., a buyout) or it could be negative. Frankly, if larger players enter the space, they could use their leverage to build out a new brand.Also, the fact that NBEV is stalling in the U.S. market isn't a great confidence booster. Final AssessmentNew Age Beverages stock is a risk, but a compelling one. With the right amount of luck, shares can take off thanks to its powerful CBD brand. And because the U.S. market is ripe for the taking, the possibilities are endless.However, NBEV stock falls short because of the legality issue of CBD. And while I'm enthusiastic about CBD-infused beverages, the industry has question marks about viability.Ultimately, though, a lot of the bad news is baked into the price. If you can stomach the risk, NBEV stock is worth a careful, measured shot.As of this writing, Josh Enomoto is long YCBD and HEXO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Give a Wide Berth * 7 Potential New Stocks That Should Not Go Public * 5 Chinese Stocks to Buy Surging Higher The post 3 Pros, 3 Cons for New Age Beverages Stock appeared first on InvestorPlace.
Brewers and producers of other canned drinks are continuing to lobby this fall for the government to take a greater role in aluminum pricing, as a benchmark for the metal hasn’t fallen that much from last year’s tariffs-induced high.
German immigrant Adolph Coors founds the Golden Brewery with business partner Jacob Schueler in an old tannery, producing the first bottles of Golden Lager just one year later. 1890s and 1900s — Coors makes several improvements to the Coors plant property, including the rerouting of Clear Creek, from which the brewery takes its water, and the construction of an electric power plant. 1916 — After Colorado launches into Prohibition four years ahead of the rest of the country, the brewery survives by making malted milk and ceramics, among other products.
“Is the beer glass half full or half empty?” this week’s cover asks. At first, Molson Coors’ big decision to pull up its corporate stakes in Denver and move its headquarters to Chicago seems like a huge blow. Coors Brewing has been a part of the Front Range landscape for almost a century and a half, its blue-and-white-labeled Coors Light being the de facto state beer of Colorado for decades.
A look at three projects and experiments that the international brewer has under way to try to improve its business.