79.22 +0.15 (0.19%)
After hours: 7:59PM EST
|Bid||79.05 x 1200|
|Ask||79.25 x 1000|
|Day's Range||77.27 - 79.97|
|52 Week Range||20.10 - 300.00|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Mar 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||131.25|
CNBC's "Power Lunch" team talks with Tilray CEO Brendan Kennedy about the growth of the company, the acquisition of Manitoba, and where the market for hemp and CBD is headed.
Pot stocks are soaring again. To learn more about risks and rewards of investing in marijuana stocks and ETFs, check out this Exploring ETFs video.
CannTrust stock will begin trading on the New York Stock Exchange on Monday, joining other Canadian marijuana stocks that listed on U.S. exchanges.
As a value investor, one of the most important things you can do is look at the management team of a company to determine how well the company will perform. Cannabis is said to be an industry that will grow to be a $500 billion industry. Cannabis is disrupting alcohol, tobacco and pharmaceuticals and will take revenues from these different industries. But, in order to get there, the companies involved need to create and brand these products with a global perspective and they need the talent that is capable of doing this with a global perspective.Tilray (TLRY) has just added four new executives to their ranks that will enable to company to reach their global branding and distribution goals. These individuals bring a lot of high level experience to the company:Greg Christopher: Executive Vice President of Operations. Greg Christopher has over 30 years of supply chain and operations having worked with the multi-national company Nestle SA having recently worked for Nestle Canada. Greg will oversee strategic development for Tilray’s global operations.Rita Seguin: Executive Vice President for Human Resources. Rita Seguin has worked for both Senior Vice President of Human Resources for Diagio North America and Glazers Wine & Spirits Distribution. This experience will be instrumental in bringing on key individuals for Tilray to expand into the global role the company plans on taking.Dara Redler: General Counsel. Dara Redler has worked as Vice President and Senior Counsel for Coca-Cola North America. In her role as Tilray General Counsel, Dara will oversee the strategic global growth of Tilray.Charlie Cain: Vice President of Retail. Charlie Cain has worked as Vice President of Concept Development and Franchising for Starbucks Corporation. Charlie brings more than 15 years of retail experience to Tilray.Tilray is a cannabis company incorporated in the United States, headquartered in British Columbia, CA and has operations in Australia & New Zealand, Germany, Portugal, and Latin America. The company has multiple products that are either THC based, CBD based, or a hybrid of both. Being able to bring these products to a global market is crucial in the competitive cannabis industry. This industry is just starting out and so a company will want to focus on its efficiency and being able to get its supply chains in order. Having key players with the experience these four bring to the company will go a long way to do so.Does Tilray Have Value?Tilray has been the subject of a lot of debate as to how expensive the company’s stock is relative to the value they can bring to future growth. The company’s stock shot upwards in spectacular fashion after its first IP offering. Initially, the stock moved from the initial public offering of $17.00 to $300.00 in a very short period of time. Since then, the stock has settled down.The initial moves garnered a great deal of attention for pot stocks. This drew in a lot of outside investors looking for more spectacular moves. Now, Tilray needs to prove their current stock price has merit. Adding crucial talent to management will go a long way for the company to solidify itself within the industry, earn its share of the growing revenue base and ultimately provide value to the company. For me, I have been hyper-critical of the current valuation of Tilray’s stock. However, while I have taken short positions on the stock - and been quite profitable on moves downward - I am waiting for my next move. I believe the stock should be trading around $25.00 - $35.00 per share; it is 2-3 times that price.It is my contention that the company does not have enough resources to produce enough cannabis and earn enough revenue to merit its current stock price and market capitalization. While the new management will add a great deal of expertise to create a global business, the company remains constrained with their limited production capacity and potential revenue they could earn.However, this does not mean an investor should simply sell the stock short, either. Tilray stock has remained lofted and stubborn despite many being aware of the hype with Tilray. There is a limited number of shares that are traded openly; the float. This may be the reason the stock has remained stubbornly high. I keep a sharp eye towards the total volume of Tilray stock traded and the insider trades to see if those that are holding the stock remain committed to holding for longer periods of time. From here, we will see if Tilray expands their capabilities and is able to justify their market capitalization, a touchy issue with investors like myself.Check out the articles in this category focused on cannabis stocks. By gaining a strong foundation in both the fundamentals and technical details usually involved in cannabis stocks, you’ll be able to invest with greater confidence. More recent articles about TLRY: * Buffett to Release Annual Letter on Saturday; Barclays Weighs in on Berkshire Hathaway Stock * Kraft Heinz (KHC): There Goes the Buy Rating, Merrill Lynch Downgrades the Stock * The Green Organic Dutchman (TGODF): The Most Undervalued Marijuana Stock You Can Buy? * Don't Get Trapped by All the Hype Surrounding New Age Beverages (NBEV) Stock
What Canopy Growth and Couche-Tard’s Tie-Up Means for InvestorsNew partnership announcedYesterday, Canopy Growth (WEED)(CGC) announced a multiyear agreement with Alimentation Couche-Tard (ATD). This development comes after it was announced
Seaport Global Initiated Coverage on CGC, APHA, ACB, and HEXO(Continued from Prior Part)Supreme CannabisAmong cannabis stocks (MJ), Supreme Cannabis (SPRWF) has provided an impressive return of 47% YTD (year-to-date). The company outperformed
HENDERSON, NV / ACCESSWIRE / February 22, 2019 / Cannabis stocks are roaring back in 2019, producers are reporting record outputs and investors are seeing great returns. As the market continues to blossom, ...
Green Thumb Industries Acquires For Success Holding CompanyGreen Thumb Industries closes its acquisition of For Success Holding CompanyToday, in a press release, Green Thumb Industries (GTBIF) announced that it has completed its acquisition of For
Moody's Investors Service said that Compass Group Diversified Holdings LLC's ("Compass" or NYSE: CODI) announcement that it has entered into a definitive agreement to sell its majority-owned subsidiary FHF Holdings Ltd. -- dba Manitoba Harvest ("MH"), a hemp-based foods and ingredient company -- to Tilray Inc. (TLRY) for an aggregate purchase price of up to C$419 million is a credit positive development but does not impact CODI's ratings, including its B1 Corporate Family Rating (CFR), SGL-2 speculative grade liquidity rating, and stable ratings outlook. Compass Group Diversified Holdings LLC is a publicly traded company (CODI) that holds majority ownership interests in nine distinct unrelated operating subsidiaries (pro forma for the sale of Manitoba Harvest), including 5.11 Tactical, Velocity Outdoor (formerly Crosman), Advanced Circuits, Sterno Products, Clean Earth, Arnold Magnetics, Liberty Safe, Foam Fabricators and Ergobaby.
Aurora Cannabis (NYSE:ACB) has pulled back in recent days. ACB stock sold off on a mildly disappointing earnings report and the reshuffling of its board of directors. Furthermore, it faces concerns as many of its peers have moved into the U.S. hemp market ahead of them. However, given production increases and the likelihood of entering the U.S. market soon, I expect Aurora stock to move higher in the near term.Source: Shutterstock By just about any measure, ACB stock appears expensive. The equity trades at over 56 times sales. Its forward P/E ratio also exceeds 300. Its saving grace is that the other three Canadian cannabis companies among the top four -- Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY), and Cronos (NASDAQ:CRON) -- see similarly outsized financial metrics. These stocks also cratered after marijuana gained official legal status in Canada. Fortunately for ACB and its peers, the pre-legalization hype returns as the U.S. moves toward nationwide legalization. The Farm Bill signed late last year legalized industrial hemp. This is the segue Canadian companies have begun to use to enter the U.S. market. As more states adopt medical and recreational weed, both the legalization and the stock price hype continue to build. Concerns Remain for ACB StockAdmittedly, investors who have become paranoid from too much recreational weed use can find reasons to panic. The Q2 earnings report became a slight disappointment due to excise taxes and lowered net pricing. Moreover, Tilray's decision to purchase Manitoba Harvest makes it the largest Canadian player in the U.S. hemp industry. This has caused some concern as Aurora has not yet moved into the U.S. hemp market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Cheap Stocks to Buy Right Now Changes in its board of directors may also cause concern. However, this was mostly current board members shifting positions on the board. Chairman of the board Michael Singer is now executive chairman. This will involve Mr. Singer more in the firm's day-to-day operations.Still, all this news led to a muted reaction. ACB stock price fell from the mid-$7 per share range to around $7 per share. While I do not think I would classify this as a "buying opportunity," I also do not see any of this news as a reason to sell ACB stock. The new board arrangement could help the company. Moreover, given Canopy's and Tilray's moves into the U.S. hemp market, Aurora will probably follow suit soon.Moreover, Aurora increased production by 502% on a year-over-year basis, higher than Canopy's 334% increase. Canopy still produced 10,102 kg in the prior quarter, higher than Aurora's 6,999 kg. Still, production increases continue as legal weed remains in short supply.A bigger question for investors likely involves not whether ACB stock will rise, but whether it will outperform its peers. Although I expect Aurora stock to perform well, it is not my favorite in the sector. In this industry, I recommend one of two things. I would either choose Canopy or Tilray as they are the top two stocks. Or, I would go with a relative value play such as HEXO (NYSEAMERICAN:HEXO) or CannTrust (NYSE:CTST). Their comparatively low P/E ratios make them possible buyout candidates. If that does not happen, they could catch up to larger peers on valuation over time. The Bottom Line on ACB StockNonetheless, Aurora should move higher soon due to production increases and a likely move into the new U.S. hemp market. Yes, earnings slightly disappointed investors. And the lack of an announcement on U.S. hemp may also concern some investors. Even if a CGC or a TLRY become a better buy, I see ACB stock moving higher.Yes, it is expensive, but so are most of its peers. Legal cannabis remains in short supply, and Aurora continues to increase production. Also, assuming it wants to remain among the four largest cannabis stocks, one can safely assume that plans are underway to enter the U.S. hemp market. * 7 Healthy Dividend Stocks to Buy for Extra Stability For these reasons, I do not think stockholders should worry about whether Aurora will rise. I think the bigger question involves whether ACB will perform better than its peers? Only time can answer that question.As of this writing, Will Healy is long CTST stock. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Can Aurora Cannabis Stock Get as High as Its Peers? appeared first on InvestorPlace.
Today's Gains and Losses in the Cannabis Sector: Mid-Day UpdateCannabis stock lossesToday remained mixed for the cannabis sector with some major stocks continuing to decline at around 11:55 AM ET. Canopy Growth (WEED)(CGC) continued to trend lower
Why CannTrust Is Trending Higher in February(Continued from Prior Part)CannTrust’s valuationsCannabis stocks (HMMJ) experienced a steep sell-off in December along with the broader markets. This sell-off led to the companies in the cannabis sector
Tilray's deal to acquire the hemp food maker Manitoba Harvest has bolstered the outlook of the already high-flying marijuana ETF.
Why CannTrust Is Trending Higher in FebruaryCannTrust’s gainsCannTrust (CNTTF) has been trending higher ever since the beginning of this year. The stock has returned nearly 75% YTD as of February 20. In February alone, the company returned about
How Charlotte’s Web Holdings’ Upside Potential Compares to PeersAnalystsCharlotte’s Web Holdings (CWBHF) has received a “strong buy” rating from one analyst, while three analysts polled by Thomson Reuters on February 20 have rated it as a
Analysts' Ratings for ACB, CRON, and APHA in February(Continued from Prior Part)Aphria Last week, Aphria’s (APHA) board provided some relief to investors with its findings on the LATAM asset acquisitions. While the board did find conflicts in the
Cannabis shares were mostly higher Wednesday, with Tilray Inc. in focus after it unveiled a more than $300 million deal that is its biggest acquisition yet.
Manitoba Harvest sells hemp-based granola, protein powder, milk and other food products at more than 13,000 points of sale across the U.S., including Walmart Inc., Costco Wholesale Corp., CVS Health Corp., Kroger Co., and online at Amazon.com Inc. Some jurisdictions, including New York City, have been cracking down on sales.
Tilray plans to buy hemp food maker Manitoba Harvest. Shares of the Canadian pot producer rose along with most other marijuana stocks.
announced Wednesday that it was acquiring FHF Holdings Ltd., the parent company of hemp-food maker Manitoba Harvest, from a U.S. private-equity firm for up to C$419 million ($315 million) in cash and stock. "Tilray's acquisition of Manitoba Harvest is a milestone for the cannabis industry. It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories," Tilray CEO Brendan Kennedy said in a statement.
Generations earlier, many people believed cannabis to be a harmful substance and demanded that the federal government keep it out of the hands of consumers, but as we've come to understand, cannabis has a myriad of health benefits and is nothing to be afraid of. Over the past few years, cannabis companies have continued to release new products with medical cannabis for the purpose of improving the quality of treatment options available for consumers in the healthcare space. ), Aphria Inc (APHA), Emerald Health Therapeutics Inc (EMHTF) (EMH.V) and Tilray Inc (TLRY) are four companies that could test February highs.