TLRY - Tilray, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
29.96
-0.52 (-1.71%)
At close: 4:00PM EDT

29.97 +0.01 (0.03%)
After hours: 5:57PM EDT

Stock chart is not supported by your current browser
Previous Close30.48
Open30.41
Bid29.91 x 1300
Ask30.18 x 3100
Day's Range29.58 - 31.07
52 Week Range25.15 - 244.00
Volume1,653,882
Avg. Volume1,772,931
Market Cap2.925B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-1.23
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est54.20
Trade prices are not sourced from all markets
  • Former Canopy Growth CEO Bruce Linton on cannabis market outlook
    Yahoo Finance Video

    Former Canopy Growth CEO Bruce Linton on cannabis market outlook

    The formerly ousted Canopy Growth Co-Founder Bruce Linton joins Yahoo Finance’s Zack Guzman and Heidi Chung to discuss his new positions within the cannabis industry and his outlook for the cannabis market. New York Post Wall Street Reporter Kevin Dugan also joins YFi PM to discuss.

  • Cowen starts Green Thumb Industries at outperform
    Yahoo Finance Video

    Cowen starts Green Thumb Industries at outperform

    Cowen’s Vivien Azer came out with her top picks for new coverage of U.S. cannabis companies, and she is starting Green Thumb Industries at an outperform rating. Yahoo Finance's Zack Guzman and Heidi Chung are joined by Vera Gibbons, NonPoliticalNews.com Founder, to discuss.

  • Tilray, Inc. (TLRY) Stock Moves -1.71%: What You Should Know
    Zacks

    Tilray, Inc. (TLRY) Stock Moves -1.71%: What You Should Know

    Tilray, Inc. (TLRY) closed at $29.96 in the latest trading session, marking a -1.71% move from the prior day.

  • Why The Future Marijuana Superpower Could Come From This Region
    Investor's Business Daily

    Why The Future Marijuana Superpower Could Come From This Region

    Marijuana companies are betting that South America will supply the world with outdoor-grown cannabis at a fraction of North America's costs.

  • Canopy Growth Facing Giant Losses
    Investopedia

    Canopy Growth Facing Giant Losses

    Canopy Growth Corp. (CGC), the largest cannabis company in the world by market capitalization, has seen its stock plunge by more than 50% over the last 11 months, dragging down its value from about $20 billion to $9.5 billion today. Now, the Canadian grower faces even more trouble ahead as it racks up an estimated $500 million in losses for the two-year period ending March of 2021, according to Oppenheimer analyst Rupesh Parikh, according to Barron’s as outlined in detail below. The woes at Canopy Growth, whose stock initially soared several-fold after it went public, illustrates both the massive operating and market challenges facing cannabis producers, and waning investor optimism for cannabis stocks such as Aurora Cannabis Inc. (ACB), Tilray Inc. (TLRY) and Cronos Group Inc. (CRON).

  • Should You Believe the Long-Term Narrative for Tilray Stock?
    InvestorPlace

    Should You Believe the Long-Term Narrative for Tilray Stock?

    In a distressing reversal of fortune, cannabis-related companies like Tilray (NASDAQ:TLRY) have suffered sharply. No longer content on listening to a strong narrative, investors wanted hard numbers. Unfortunately, the weed alpha dogs like Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) have all produced disappointing results. For Tilray stock, it's down more than 56%.Source: Jarretera / Shutterstock.com Of course, several analysts have their take on the issue, and I'm not going to speak for any of them. I will say, though, that in my view, marijuana investments like TLRY stock are stuck between two worlds: one that emphasizes traditional investment metrics, such as earnings-per-share, and another that banks on the broader industry's potential.To be frank, most investors -- and I'm one of them -- got caught up in the latter. Generally, we believe that it's an incredibly difficult, if not impossible to assess names like Tilray stock against traditional metrics. It's unlike a blue-chip stock where you have ample historical data to work with.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, I don't begrudge that volatility rocked this space. Sure, I'd argue against the magnitude of bearishness. Nevertheless, investors must see firm evidence that their funds are being put to good use. Due to recent controversies like the CannTrust Holdings (NYSE:CTST) scandals, these high-profile incidents impugned the entire sector.Therefore, investors lost patience, which I can appreciate. From their perspective, it was time to put up or shut up. When major player after major player failed to produce confidence-inspiring earnings results, prior weed advocates abandoned ship. * 8 Dividend Stocks to Buy for a Recession But with TLRY stock appearing to have stabilized at the $30 level, should speculators consider giving it another look? Tilray Stock Has a Great Story … If It Can Turn the PageNot too long ago, TLRY stock touched the $300 level on an intra-day basis. If you think about it, this is a remarkable concept: at one point, no matter how briefly, someone thought that Tilray stock was worth $300 a pop. In that context, losing a zero is a very good price indeed.Joking aside, my InvestorPlace colleague Ian Bezek explored the idea of capitalizing on the marijuana sector's fallout. Regarding Tilray stock, Bezek sees potential. However, he notes that other companies like Canopy and Cronos have big backers. Without similar support for Tilray, the medical cannabis specialist has an uphill challenge.It's a fair point. From the get-go, cannabis firms have sought mainstream credibility. Nothing spells out "making it" quite like a backer like Altria Group (NYSE:MO) or Constellation Brands (NYSE:STZ).In that regard, I agree with Bezek. However, Tilray stock features a powerful narrative that just got more interesting.As I'm sure you've heard, the vaping crisis has captured the nation's attention. Increasingly, the public, including some vape users, are leery about the practice.Because the vaping news cycle seemingly gets worse every day, I'm not sure how this will play out. However, cannabis, which is also a "vapable" substance, for medicinal use has only ramped up in popularity. In fact, some medical professionals who were previously opposed to cannabis are now prescribing it.And that sentiment suits TLRY stock for the long haul. Tilray's products are consumables wrapped in unassuming and discreet labeling. Designed purely for medicinal purposes, they don't have the stigma associated with stereotypical cannabis platforms.Plus, the vaping crisis provides an opportunity for TLRY to distinguish itself as a medicinal player, not a recreational one. That's crucial as it reaches out to the international markets. A Global Opportunity to AdvantageMany, if not most bullish arguments about TLRY stock focus on the potential U.S. legalization of marijuana. After all, 62% of the American people support legalization. With a total population of over 327 million, that could add up to serious coin.However, the U.S. isn't the only non-Canadian nation that's growing tolerant to weed. In a surprising report from CNBC, many Asian countries are turning toward medical cannabis. Historically known for their draconian narcotics laws, if Asia converts to green, it would be a game-changer, irrespective of what happens in the U.S. * 10 Companies Making Their CEOs Rich For example, Japan recently approved clinical trials for Epidiolex, a cannabidiol (CBD)-based oral solution for helping epileptic patients. Consequently, Japan also has a rapidly aging population. If medical cannabis gains greater acceptance there, it would represent a huge boon for specialists like Tilray. Logically, this would skyrocket Tilray stock, perhaps back to its intra-day highs.That said, TLRY stock has a financial credibility problem. Management must convince prospective buyers that it can stay in the business long enough to actualize these positive forward narratives.And that's the underlying reason why Tilray stock and its ilk are so volatile. Yes, the story is great … profound, even. But getting there is the hard part. I for one am a believer, but I can also appreciate why others remain skeptical.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Should You Believe the Long-Term Narrative for Tilray Stock? appeared first on InvestorPlace.

  • The Cannabis Market Is Looking Up, Even If Cannabis Stocks Aren’t
    Bloomberg

    The Cannabis Market Is Looking Up, Even If Cannabis Stocks Aren’t

    (Bloomberg Opinion) -- Almost exactly a year ago, a small Canadian cannabis company was generating a lot of buzz (sorry, couldn’t resist the pun). Despite trifling quarterly revenue of $9.7 million, Tilray Inc.’s market capitalization got so high (sorry again, I’ll stop) that it briefly eclipsed that of major companies people have actually heard of, such as American Airlines Group Inc.The boom quickly faded — not surprising, given how senseless it looked even in the moment — and Tilray’s stock has continued to decline. And the cannabis sector has also stumbled recently.But this dampened enthusiasm for marijuana stocks does not necessarily reflect fading prospects for the marijuana market, which still has promise. Instead, it is related to short-term challenges associated with a bumpy rollout of legal marijuana in Canada, which are making it hard for winners to quickly emerge.In October 2018, Canada became only the second country to legalize recreational marijuana. But it’s still not particularly easy for Canadian consumers to get their hands on cannabis, as the pace of dispensary openings has been slow.In a research note, Vivien Azer of Cowen & Co. offered this example to demonstrate how sparse dispensaries are, on a per capita basis, in Ontario, the country’s most populous province:Kenneth Shea, a Bloomberg Intelligence analyst, notes that even within the small ecosystem of stores, it’s been tough in early days to match supply with demand, with dispensaries sometimes sold out of higher-quality strains.Meanwhile, average prices for legal cannabis remain well above prices on the illegal market. If the legal product is still inconvenient to buy, and if the illegal product is cheaper, then it follows that dispensary sales of cannabis haven’t exactly soared yet.In this fast-evolving, Wild West of a market, some industry heavyweights have ended up disappointing investors with their recent sales or profitability figures. Aurora Cannabis Inc., for one, had said in May it was on track to achieve growth in adjusted earnings before interest, taxes, depreciation and amortization in the fourth quarter. When it reported results last week, it said it had failed to meet this target, citing “challenges at the retail level” that were “beyond its control.”That doesn’t mean there aren’t realistic paths for the industry’s leading companies to earn more revenue as they bolster their capacity and as the forthcoming addition of more Canadian retail locations gives them a chance to court more customers. Plus, some of the biggest opportunity in Canada is yet to come: In the first year of legalization, the country allowed sales of only certain cannabis products, including smokeable flower and oils. Edibles and beverages are to be phased in later this year, potentially drawing interest from a wider swath of consumers who aren’t interested in smoking but are curious about cannabis.Looking beyond Canada, forecasts suggest medical and recreational markets will continue to open up worldwide, providing ample opportunity for long-term growth if these companies can ramp up their supply quickly and build compelling brands.So, a year after Tilray’s wild ride, investors seem to be getting more cautious about cannabis stocks. It’s hard to know which companies will eventually prosper — and it’s risky to try to make a quick investing buck from it. The outlook for the industry as a whole, however, remains plenty upbeat.To contact the author of this story: Sarah Halzack at shalzack@bloomberg.netTo contact the editor responsible for this story: Michael Newman at mnewman43@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Tilray’s Dubious Anniversary Marks 90% Stock Decline
    Bloomberg

    Tilray’s Dubious Anniversary Marks 90% Stock Decline

    (Bloomberg) -- It was arguably the peak of pot-stock volatility, and also a peak that Tilray Inc. has never come close to hitting since.One year ago today, Tilray took the wildest ride of its existence, nearly doubling to $300 before wiping out the entire gain in less than an hour, then climbing back to finish 40% above where it started.Twelve months later, the stock is down about 90% from that intraday high, erasing more than $17 billion of market value. It’s one of the most dramatic reversals ever in a sector that’s sagged more than 40% since March.Call it a return to earth for cannabis. Tilray’s price-to-sales ratio had reached levels 25 times higher than those of tech giants Amazon.com Inc. and Apple Inc. last September, the month before Canada legalized recreational use.The decline hasn’t deterred short sellers, who’ve collectively made $112 million off their Tilray positions this year, according to financial analytics firm S3 Partners. Tilray’s short interest stood at $256 million or 38% of float as of Sept. 18, according to S3 Partners’ data.A variety of factors have weighed on pot stocks this year, including bigger-than-expected losses at many of the largest companies, regulatory breaches at one-time industry darling CannTrust Holdings Inc., and antitrust reviews of U.S. acquisitions.The decline has shaved a significant amount off the sector’s market value, with the BI Global Cannabis Competitive Peers index losing about $25 billion since late April.To contact the reporter on this story: Kristine Owram in Toronto at kowram@bloomberg.netTo contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Divya Balji, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Is Tilray Stock’s Crushing Bear Market Finally Over?
    InvestorPlace

    Is Tilray Stock’s Crushing Bear Market Finally Over?

    Tilray (NASDAQ:TLRY), like so many marijuana stocks, is having a terrible year. Yes, some traders like to make fun of anyone that bought Tilray stock near its $300/share peak. But don't forget that as recently as this January, Tilray stock still traded for as much as $100 per share. This year alone, shares have lost more than half their remaining value.Source: Jarretera / Shutterstock.com That shouldn't come as a surprise. As I explained in May, the company was doing better on earnings but the supply growth from other producers overwhelmed Tilray's progress. That's been a valid concern so far. TLRY stock has continued to sink as the oversupply in the Canadian marijuana market has further intensified.The worst may finally be over, however. Tilray stock has rebounded more than 20% from its 52-week low since the start of September.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip Is Tilray ready to rally again? Tilray's Growth Strategy Seems ReasonableDespite the punishing decline in Tilray's stock price, management hasn't panicked. As I explained in that previous article, Tilray CEO Brendan Kennedy has focused on disciplined supply growth at a reasonable price. Tilray's deals, such as buying Manitoba Harvest came at affordable prices rather than paying big bucks as firms like Canopy Growth (NYSE:CGC) have done with some of their acquisitions.Tilray has also wisely used convertible bonds to raise funds. The convert feature is now way out of the money, ensuring that shareholders won't be diluted unless Tilray shares go on a monster run. This was a savvy way to raise nearly half a billion in funds without hitting TLRY stock owners with much dilution.Finally, while the international market hasn't taken off that quickly, Tilray has a shot there as well. The company is building out its facilities in Portugal -- again at a reasonable build-out cost. Still Hasn't Reached Critical MassTilray stock bears, on the other hand, continue to question Tilray's prospects. While the company certainly has avoided some of the excesses of its rivals, at the end of the day you need revenues and profits to justify your share price.And Tilray simply doesn't have much of either. Tilray's market cap, even with the stock at just $30, is still almost $3 billion. That's a huge valuation for a company that has produced less than $100 million in revenues over the last year. If revenues reach $200 million over the next year or two and Tilray manages to maintain a still robust 10x price/sales ratio, that'd imply an additional 33% downside on TLRY stock to around $20/share.Also, despite the small revenue base, Tilray has a ton of product lines. With the addition of Manitoba Harvest, it now has foods and supplements in addition to the more standard fare. And Tilray has international operations in a variety of countries. Yet, it hasn't added up to a critical mass that can deliver sustainable profits just yet. Like with Aurora (NYSE:ACB), Tilray has a lot of irons in the fire, but there's no sign that any particular thing is heating up just yet. CannTrust Reminds Us Of Dangers In The Cannabis IndustryWhile Tilray stock has enjoyed a welcome rebound, the industry isn't out of the woods yet. The huge supply and demand imbalance continues to weigh painfully on the sector. And that's not all. Regulatory risk remains a major concern.Tuesday brought us a fresh reminder on that front. CannTrust (NYSE:CTST) stock plunged another 14% on the day. CannTrust hit new all-time lows after admitting that Health Canada had suspended the company's license to produce and sell marijuana. It's a suspension, rather than a full revocation of their operating license. Still, it was a huge blow to the company's already damaged credibility.The license suspension on its own shouldn't come as a huge surprise. As InvestorPlace's Josh Enomoto recently wrote, CannTrust suffered two major scandals. The first involved illegal growing operations hidden with false walls. CannTrust fired its CEO with cause, along with other top employees, as a result. The company also somehow had black market seeds get mixed into its inventory.Adding it all up, CannTrust stock is now down a shocking 90% from where it traded earlier in 2019. That's a nearly total wipeout for a New York Stock Exchange-listed company. While there's nothing that dramatic going on with Tilray from a scandal point of view, CannTrust's collapse serves as a fitting reminder that this is a new industry that will have tons of growing pains.Also, it's worth noting that marijuana companies have started getting more traction in mainstream stock indexes and associated ETFs. However, the index operators will now kick CannTrust stock out of the primary Canadian stock index and related ETFs, and other fund operators may be slower to include pot stocks like Tilray in their funds as a result of this incident. Tilray Stock VerdictTilray has much better management than CannTrust, thank goodness. But that doesn't mean that is time to get too excited about the recent rebound in the TLRY stock price.The cannabis industry is continuing to face massive growing pains. There will be winners eventually. But more companies will end up like CannTrust as well. The industry is young and a lot of competition has to fall by the wayside for the survivors to prosper. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Tilray, without a major partner, hasn't yet proven that it will be able to be one of the industry's eventual winners. For now, Cronos (NASDAQ:CRON) and Canopy, with their major backers, might be a safer choice until the industry's slump ends.At the time of this writing, Ian Bezek had 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 * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Is Tilray Stock's Crushing Bear Market Finally Over? appeared first on InvestorPlace.

  • 3 Cannabis Stocks to Buy Today
    InvestorPlace

    3 Cannabis Stocks to Buy Today

    As many investors know, hype doesn't equal profits when it comes to growing a portfolio in cannabis stocks. Having said that, let's look at Innovative Industrial Properties (NYSE:IIPR), Scotts Miracle-Gro (NYSE:SMG) and Hexo (NYSE:HEXO) in order to avoid the buzz and cultivate better-looking possibilities off and on the price chart. Let me explain.Cannabis stocks. The market's potential is massive to say the least. But for those that have taken stakes in the group's most popular names such as Canada's top producer Canopy Growth (NYSE:CGC), former capitalization top dog Tilray (NASDAQ:TLRY) or Cronos (NASDAQ:CRON), losses have likely followed.Without getting too deep into the minutiae, early enthusiasm and momentum with most cannabis investments has adjusted to today's more difficult realities. Cannabis stocks face massive layers of regulatory red tape as they attempt to tap into new markets. And many of these companies are up to their eyeballs in debt while vying to be competitive.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Eventually, there will be winners among cannabis producers. And for those investors that hang on, the returns on the right pick could be enormous. I get it. At the same time, buying the proverbial picks-and-shovel plays and the companies already quietly making money for investors, off and on the price charts, makes for an even stronger blend of exposure to cannabis stocks. Cannabis Stocks Buy: Hexo (HEXO)Hexo is our first "buy" recommendation. HEXO stock is also the most speculative of our three cannabis stocks to buy. The company is looking to cash in on the niche edibles and cannabis-infused beverages market, and has stronger odds of success courtesy of its partnership with Molson Coors (NYSE:TAP) which allows it access to the beverage giant's many resources.On the price chart, HEXO stock is unique among its peer group. Despite this year's steep correction in cannabis stocks, shares of Hexo have maintained a weekly uptrend. The last few weeks have been spent trying to rally out of a well-supported, small double-bottom pattern.With pattern confirmation in hand and a supportive-looking stochastics setup, my recommendation in HEXO is to buy shares today. I won't put a price tag on the upside potential of this more speculative play. But placing an exit below support, if required, is smart business. Scotts Miracle-Gro (SMG)Scotts Miracle-Gro is the second of our stocks to buy. If you've ever been in a Home Depot (NYSE:HD) or Lowe's (NYSE:LOW) -- or mowed a lawn for that matter -- SMG stock is familiar with its lawn and gardening products. Scotts is also profitable, offers a dividend of 2.3% and happens to nicely positioned within the cannabis industry as its largest hydroponics supplier.Technically, today's investors are able to buy SMG stock as it pulls back into a high consolidation pattern. The price action has taken on the characteristics of a high handle formation after shares broke out of a large cup-shaped base to new highs, but began to retreat following a gain of around 8%. * 7 Momentum Stocks to Buy On the Dip With SMG stock just now registering an oversold stochastics condition, my advice is to put shares on your radar to purchase on a second move back above the prior high and above the cup breakout level of $105.23. Place an initial stop-loss below $99. Innovative Industrial Properties (IIPR)Innovative Industrial Properties is the last of our three cannabis stock buys. IIPR stock is a landlord for many of the sector's producers. Like SMG stock, IIPR is profitable and as a real estate investment trust, investors are paid regular income of 3.4%. But please, don't think of IIPR as a widows-and-orphans investment like Coca-Cola (NYSE:KO). These shares are volatile.Currently, IIPR stock's aggressive profile has taken shares out of a symmetrical triangle pattern and into a deep correction of around 40% at the recent low. Again, this cannabis stock is not for the faint of heart.The good news today is that shares are oversold and have signaled a bullish stochastics crossover. And with IIPR confirming a weekly candlestick reversal pattern after loosely testing key Fibonacci support, this cannabis stock is ripe for the picking in conjunction with a blended stop-loss below $80.90.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 * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post 3 Cannabis Stocks to Buy Today appeared first on InvestorPlace.

  • Vaping-Related Deaths: Anxiety Rises for Cannabis Stocks
    Market Realist

    Vaping-Related Deaths: Anxiety Rises for Cannabis Stocks

    Vaping has become a burgeoning health concern, as the seventh vaping-related death recently occurred in California. How are cannabis companies affected?

  • Aphria Stock Is the Most Well-Behaved Pot Stock on the Market
    InvestorPlace

    Aphria Stock Is the Most Well-Behaved Pot Stock on the Market

    Anyone who's been halfway paying attention to the action in cannabis stocks knows it hasn't been an easy ride. From the most well-known names to the most obscure, it's been a volatile and difficult ride. Aphria (NYSE:APHA) is no exception, with Aphria stock down big from its highs.Source: Shutterstock Shares have fallen roughly 40% from the February highs and almost 60% from its 52-week highs. To say that it's been a rough ride is putting it lightly and these two performance marks emphasizes as much.Earlier this week, we highlighted a silver lining in Aurora Cannabis (NYSE:ACB). After the company reported earnings, shares took a tumble. But so far at least, the stock has avoided a lower low. That's the positive take despite the revenue miss and bearish reaction in the stock price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, APHA stock has its own silver lining: the stock is actually trending higher. Aphria Stock Is Stronger Than It SeemsComing into August, Aphria stock had been dragging hard. Shares were down almost 50% in just a few months and sentiment couldn't have been worse. Then better-than-expected earnings propelled shares higher, as the stock ran from a low of $5.02 to roughly $7.50 just a day later.The one-day ~50% rally set the tone for APHA, even though shares are now lower at this point. I think the stock is down from its post-earnings high as investors try to work through various resistance points and as they fight the bearish stigma attached to the industry right now. * 7 Tech Stocks You Should Avoid Now There's no reason to mince words about it: Cannabis stocks are out of favor right now. That's not likely to persist forever, which is why it's important to look for stocks showing relative strength. While Aphria stock is not showing strength relative to the market, it is showing strength relative to its peers.Identifying stocks with relative strength is because they're the ones that tend to outperform when the group comes back in favor.Even though shares have been under pressure lately, Aphria stock is still up 16.2% so far in 2019. That's better than Canopy Growth (NYSE:CGC), Aurora Cannabis and Cronos Group (NASDAQ:CRON). CRON, ACB and CGC are all positive on the year too, but lag APHA.The performance is also better than Tilray (NASDAQ:TLRY) and New Age Beverages (NASDAQ:NBEV), which are both down in 2019.Of the group, Aphria stock is the top performer over the last six, three and one month. For the last timeframe, APHA stock is up almost 11%. So this is certainly worth paying attention to. The Exact Breakout Point As you can see on the chart above, we have an ascending triangle formation developing in Aphria stock. That's where uptrend support (blue line) continues to squeeze a stock higher against a static level of resistance. It's a bullish trade development, as investors look for a breakout.In this case, recent resistance has been near $7.20. But that's not the big breakout point, in my view. Instead, I'm looking at the $7.60 level. This level has been notable resistance since the April breakdown. If Aphria stock can clear it, it will also mean that APHA has reclaimed its 200-day moving average.In this case, clearing $7.60 could trigger a big-time breakout. The first upside target is 61.8% retracement at $8.68. Above that and I'm looking for a gap-fill up to $9.85.There is risk, though.If uptrend support fails, it puts the ascending triangle formation at risk of failing. Below it and the 50-day moving average is the first downside target. Below that puts the $5.80 level on watch and below that, the $5 mark is possible. The Bottom Line on APHA StockThe bottom line here is simple: Aphria stock is the most well-behaved stock in the cannabis space showing the most relative strength among its peers. Its stock has a very clear setup on the charts, while its most recent earnings report was good enough to ignite the recent rally.A glance at the balance sheet reveals $422 million in cash and short-term equivalents. That's notable, given the stock's $1.67 billion market cap.Further, current assets of $577 million is more than five times its current liabilities of $102.5 million. Total assets also significantly outweigh total liabilities, total $1.8 billion vs. $524 million. * 7 Momentum Stocks to Buy On the Dip In other words, Aphria is more than capable of covering its short-term obligations as it focuses on growing its business. If there's a speculative cannabis stock worth monitoring right now, it's Aphria in my opinion.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Aphria Stock Is the Most Well-Behaved Pot Stock on the Market appeared first on InvestorPlace.

  • Canopy Growth Stock Emerges as Top Pick
    InvestorPlace

    Canopy Growth Stock Emerges as Top Pick

    The cannabis industry as a whole continues to face unforeseen pressures, and Canopy Growth (NYSE:CGC) hasn't been an exception to that headwind. But, of all the marijuana stocks worth a closer look now, CGC stock is at the top of that relatively short list.Source: Jarretera / Shutterstock.com That's not been the case in a long, long while. In July, CGC's board of directors, which is mostly controlled by the company's single-biggest shareholder Constellation Brands (NYSE:STZ), terminated CEO Bruce Linton. This led to a disruption at a critical time for cannabis companies.A sequential decline in quarterly revenue rattled owners of Canopy Growth stock in August as well, further fanning already-bearish flames. The backdrop has been decidedly grim.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet, this month's rebound effort is undeniable, and arguably well-supported. Canopy Growth Stock Takes the LeadSince early this month, cannabis stocks have started to put some distance between themselves in terms of performance. Tilray (NASDAQ:TLRY) is up 21% since the end of August, while Aurora Cannabis (NYSE:ACB) has broken even and CannTrust Holdings (NYSE:CTST) has given up 13% of its value.CGC stock is at the upper end of that performance race, gaining nearly 19% this month.The divergence likely has much to do with an increasing understanding of each companies' nuances following a wave of earnings reports. * 7 Momentum Stocks to Buy On the Dip That's certainly been the case for Canopy Growth, which has enjoyed the added benefit of interim CEO Mark Zekulin making a proactive effort to unwind some of the damage that's been done to Canopy Growth stock over the course of the past two months. His focal point?"We have been in construction for 70 months," Zekulin told CNN. "We have four months left on that expansion plan. … A lot of that work is now done and the real focus is taking the chess board that we've set and really focusing on now executing."The market seems to be buying the idea, although there's an even bigger reason CGC stock could have rekindled its bullishness. Winning Where it CountsThe cannabis industry is still gelling, and its players are still trying to figure out their place in it.Canopy Growth's place is, for the most part, recreational marijuana -- and recreational marijuana in Canada in particular. For the quarter ending in June, 72% of revenue was made up by sales of recreational cannabis, and only 12% of its sales were made to international customers. And, 80% of its gross sales were of dry cannabis used for smoking.The revenue headwind was and is a legitimate concern. But a couple of key details were glossed over by a market that was ready to see the glass as half empty rather than half full. Chief among those details is the fact that the revenue lull wasn't the indication of waning demand it was being made out to be.The evidence: The average selling price of cannabis, per gram, in Canada hasn't swayed since mid-July, holding steady at $7.22 CAD. Prices in the United States, meanwhile, have actually improved since mid-July, negating the chatter that supply has far outpaced demand.In that vein, although the quarter ending in June wasn't the one Canopy Growth stock owners were hoping for, demand continued to rise. Adult-use purchases of cannabis in Canada reached a record $85 CAD million in June, rising for a fourth-straight month.That's right in Canopy's sweet spot. And it's happening at a time when the company is about to maximize all those pieces on the proverbial chess board. The Bottom Line for CGC StockDon't misread the message. Canopy still has much to prove, and even with the recent selloff, the stock remains outrageously overvalued.That's not a particularly big liability in this instance though. While Canopy Growth admittedly spent too aggressively on acquisitions, those acquisitions do improve the company's capacity to connect with consumers and secure more supply. Canopy just needs to get more out of those assets. That's in the works, even before a new CEO takes the helm.How far or how high that might take CGC stock remains uncertain. But, up 20% from last month's low is a good start to a rebound. And it has plenty of backing via lip service.You could certainly do worse.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Canopy Growth Stock Emerges as Top Pick appeared first on InvestorPlace.

  • Is Aurora Cannabis Stock a Buy Despite a Revenue Miss?
    InvestorPlace

    Is Aurora Cannabis Stock a Buy Despite a Revenue Miss?

    Aurora Cannabis (NYSE:ACB) recently reported earnings and sales came up short. As such, Aurora Cannabis stock sold off. It's been a painful run for cannabis stocks over the past few months as they desperately lack a catalyst to send their share prices higher.Source: Shutterstock Earnings clearly won't be it for Aurora Cannabis stock at this point. However, there is one silver lining to the recent decline: no new lows.That's right. Sometimes good news can be found in bearish developments. Should ACB stock log a higher low, then it may be on the road to recovery. Let's explore:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Revenue MissOn September 11, Aurora Cannabis reported revenue of 98.84 million CAD. That missed analysts' expectations by more than 4.5 million CAD. While that many not seem like a big deal, investors have to take the miss in context. * 7 Tech Stocks You Should Avoid Now It's the company's second straight revenue miss and its fifth miss out of the last six quarters. Further, Aurora Cannabis doesn't have the type of valuation that supports its stock price when it misses on top-line sales. That goes for most if not all of the cannabis industry, including Canopy Growth (NYSE:CGC), Aphria (NYSE:APHA), Tilray (NASDAQ:TLRY), Cronos Group (NASDAQ:CRON) and others.In other words, these companies have incredibly high valuations that are all banking on equally incredible growth. And while sales quintupled year-over-year in the most recent quarter for ACB, it came up short of expectations.It doesn't help that margins have been under pressure as well.It's not that Aurora Cannabis has a poor balance sheet or that the cannabis market is hitting a dead end. It's that sentiment is not bullish, and momentum is bearish for cannabis stock right now. ACB and others need some positive catalysts, and missing headline expectations isn't one of them. Trading Aurora Cannabis StockAhead of earnings, Aurora Cannabis stock had rallied through the 50-day moving average. However, it ran right into downtrend resistance (blue line). Had the results been strong, investors may have been in store for a strong finish to the week. Click to EnlargeNow, shares are down about 8.5% from Wednesday's close. With the fall, the ACB stock price is back below the 20-day and 50-day moving averages. When these two moving averages went from support to resistance is outlined very clearly on the chart via purple arrows.That was a prelude to failing support that ushered in a wave of selling. Luckily for InvestorPlace readers, they saw this break months ago and have been able to sidestep some of the pain.The post-earnings decline also solidified downtrend resistance. As we discussed at the top of the article though, the silver lining is that ACB stock has not made new 2019 lows -- at least, not yet.From here, bulls need to make sure Aurora Cannabis stock stays above $5.40. If this level gives way, a test of downtrend support becomes possible, as does a test of the $5 mark. Instead, if ACB stock can hold up and avoid a new low, it can start to work higher despite a lower-than-expected revenue result. Rallying on weaker-than-expected results can be viewed as a bullish development, as it may suggest all the bad news is priced in.The simple way to evaluate Aurora Cannabis stock from here? Note the $5.40 benchmark. Below it is bad, above it is constructive. Bottom Line on ACB StockLet's not mince words here: Aurora Cannabis is very much a speculative "prove-it" stock. That is, it's not a blue-chip name like Microsoft (NASDAQ:MSFT) or Apple (NASDAQ:AAPL). Nor is it a dependable staple going through a hard time like Boeing (NYSE:BA).While Aurora Cannabis is one of the notable names in a high-growth emerging industry, it's still a speculative name that needs to prove to investors that it can turn that revenue growth into cash flow and continue to expand with discipline. From CFO Glen Ibbott:We continue to see strong growth in cannabis revenues in both medical and consumer categories. Our cultivation execution continues to drive production costs lower and improve gross margins. Aurora's diversified product portfolio remains in demand with patients and consumers alike.Aurora has seen a significant increase in assets, climbing from $1.43 billion at year-end 2018 to $4.2 billion in its most recent quarter. In the same time frame, total liabilities have increased from $253 million to approximately $850 million. While liability growth outpaces asset growth, its assets far outweigh liabilities.ACB has staying power, at least in the short term. But what it and the recent of the cannabis space really need is a catalyst and better sentiment.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Is Aurora Cannabis Stock a Buy Despite a Revenue Miss? appeared first on InvestorPlace.

  • It Doesn’t Look like ACB Stock Is Going Anywhere This Year
    InvestorPlace

    It Doesn’t Look like ACB Stock Is Going Anywhere This Year

    Aurora Cannabis (NYSE:ACB) joined companies like Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON) when its recent earnings report sent ACB stock on a 9% tumble.Source: Shutterstock Because of this, there has been a wide-scale bear move. The fact is that investors have been too optimistic about the growth prospects from Canada. There have also been issues with supply chains in the country as well as black market activities.So when may things change? It may take a while.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut even before this, the ACB stock price had been under increasing pressure. Since March, the shares have gone from $10 to $5.70.Now, as for the fiscal fourth-quarter earnings report for the company, there was still lots of growth. On a quarter-over-quarter basis, revenues jumped by 52%. There was also an annual 72% ramp. * 7 Tech Stocks You Should Avoid Now Yet Wall Street wanted much more. ACB reported C$98.9 million on the top-line while the consensus was calling for C$103 million. Note that before this the company had tempered its annual guidance.Something else about the earnings report that likely weighed on Aurora Cannabis stock was the softness in the global business. Consider that there was only a 12% increase in the medical segment in Europe to C$4.5 million.InvestorPlace.com's Josh Enomoto summed things up as follows:"The cannabis market has stepped out of the honeymoon phase and into the 'show me' phase. In other words, investors are tired of hearing bedtime stories. Instead, they want some evidence that these tales are based on facts." Bad News for ACB StockAurora Cannabis stock got hit again this week, off about 4%. The reason: negative commentary from Stifel Nicolaus analyst Andrew Carter. Primarily because of the earnings report, especially with the sluggishness in foreign markets, he slapped a "sell" rating on the shares. He lowered his price target from C$7 to C$5.He also thinks the terrible sentiment in the cannabis sector will make it more difficult for Aurora Cannabis to raise more money. No doubt, this could mean that any equity offering could see substantial dilution - which could mean even further deterioration of the stock price. An Upside for ACB StockDespite all the bad news, there remain silver linings. Aurora Cannabis has the advantage of scale and a global infrastructure (there are 15 production facilities, with sales and operations in 25 countries). For example, during the quarter the company produced over 29,000 kilograms, compared to 15,590 for the prior quarter.Another advantage for Aurora Cannabis stock is that it has Nelson Peltz as a strategic advisor. He is a top activist investor who has extensive experience with consumer goods companies like Procter & Gamble (NYSE:PG), Mondelez (NASDAQ:MDLZ), and Wendy's (NASDAQ:WEN). Peltz should be invaluable in providing high-level contacts and funding resources.And finally, there is the catalyst of "Legalization 2.0." This refers to when Canada will legalize the sale of cannabis edibles, beverages and vaping products. The law will require a 60-day permit process, after which sales will be allowed.This should help to boost revenues. However, in light of the concerns with cannabis companies right now, there may not much action with Aurora Cannabis stock until next year. So for now, there is probably no rush to make a buy.Tom Taulli is the author of the 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 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post It Doesn't Look like ACB Stock Is Going Anywhere This Year appeared first on InvestorPlace.

  • Cannabis Legalization: New Jersey Continues to Wait
    Market Realist

    Cannabis Legalization: New Jersey Continues to Wait

    On September 12, the New Jersey Senate was set to vote on the expungement bill for cannabis convicts. However, new legislation was introduced.

  • Cronos Group: Target Price and Valuation Update
    Market Realist

    Cronos Group: Target Price and Valuation Update

    The consensus target price for Cronos Group stock fell to 19.88 Canadian dollars from 20.3 Canadian dollars in August, which represents a fall of ~2.07%.

  • The Zacks Analyst Blog Highlights: Anheuser-Busch, Tilray, Boston Beer, Constellation Brands and Aphria
    Zacks

    The Zacks Analyst Blog Highlights: Anheuser-Busch, Tilray, Boston Beer, Constellation Brands and Aphria

    The Zacks Analyst Blog Highlights: Anheuser-Busch, Tilray, Boston Beer, Constellation Brands and Aphria

  • Unfortunately, Aphria Stock Suffers from Guilt by Association
    InvestorPlace

    Unfortunately, Aphria Stock Suffers from Guilt by Association

    At the beginning of last month, Aphria (NYSE:APHA) was on top of the world. The cannabis company's fiscal fourth quarter revenue blew past estimates, catapulting Aphria stock higher by more than 40%. Investors were elated.Source: Shutterstock APHA stock is now down 10% from that peak and seemingly still drifting lower. So much for the notion that one of the pot industry's rare profitable companies is a must-own name.There's more to the setback than just a little bad luck though. The immediate evaporation of all that enthusiasm is an indication of just how unconfident the market is in Aphria. Ditto for its peers, which have performed similarly poorly for the same timeframe.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe frustrating part is, this particular stock actually deserves a little more credit than it's getting. Aphria Stock Fails to LaunchAs a refresher, last quarter's top line of $128.6 million easily topped estimates of $97.8 million. The bulk of that figure was contributed by the acquisition of an existing distribution business in Europe, called CC Pharma.Canadian sales of recreational marijuana only came to $18.5 million, though that figure was still up 85% year-over-year. * 7 Discount Retail Stocks to Buy for a Recession Most noteworthy of all, Aphria turned a profit of five (Canadian) cents per share. Even the most notable names in the business like Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY) are still losing money.The numbers were mostly irrelevant a couple of days after the earnings figures were posted though. That's how long it took the post-earnings bullishness to fade. It also was more or less how long it took other cannabis stocks to come down off of their most recent post-earnings high (if they created one at all).What gives?Although cannabis has a clear future, most of the highly-touted and highly-traded cannabis stocks are grossly overvalued compared to the kind of revenue they'll be able to produce even in the distant future. It's the unspoken reality most marijuana investors quietly suspect but are hesitant to voice.The irony is, Aphria is something of an exception to that unspoken paradigm. It just doesn't matter. Aphria Stock Is Reasonably ValuedThe widely-applied pessimism is certainly understandable. Canopy Growth lost a ton of money last quarter, even after stripping out the impact of a writedown. Tilray logged a loss last quarter too, of $31 million, tripling its loss from a year earlier and leaving investors wondering if there's actually any money to be made in the pot business. There is, and Aphria is making some of it.Granted, it's not easy, and probably won't be consistent income for a long, long while. But it's there. Last quarter, Aphria reported an adjusted EBITDA of $1.85 million on its cannabis operations. Its distribution business, separately, added $3.87 million worth of EBITDA to the mix.It's not great, but it's something. And, as Aphria scales up and gets better at what it does, the margins as measured by percentage will improve. Aphria believes they'll start to meaningfully improve this year, in fact, forecasting an EBITDA total of between CA$88 million and $$95 million for the fiscal year that just began.Multiplying that figure by a typical enterprise value/EBITDA figure of 14 would translate into a market cap on the order of $1.3 billion. Aphria's is at $1.7 billion, which is more than it theoretically should be, but some tolerances have to be made for the rapid sales and EBITDA growth the company is producing.On a price/sales basis, the market cap of $1.7 billion is a very reasonable 2.5 times this year's expected top line of between CA$650 million and CA$700 million. That's right around the marketwide average. And, let's not forget that Aphria is also legitimately profitable. Looking Ahead for Aphria StockEven the marijuana movement's most enthusiastic investors struggle to say pot stocks didn't get ahead of themselves, driven higher by hype before these companies knew everything they need to know. Much of the weakness seen since March of this year reflects the realization that simply being in the cannabis business is no assurance of success.Right or wrong, Aphria stock is guilty by association. When most other names in the business are losing ground due to valuation concerns, the selling can be rather indiscriminate.Aphria's $670 million worth of goodwill sitting on the balance sheet doesn't help either, as it could easily turn into a writedown sooner or later.Still, APHA stock is a name worth adding to your watchlist, as it's one of the more sensible stocks to own in a new industry that drove investors into a wild frenzy last year. The question, of course, is figuring out when that groupwide bearish pressure might finally ease up.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Unfortunately, Aphria Stock Suffers from Guilt by Association appeared first on InvestorPlace.

  • The Molson Coors Deal Will Be a Game Changer for HEXO Stock
    InvestorPlace

    The Molson Coors Deal Will Be a Game Changer for HEXO Stock

    For the cannabis sector, there has been a grueling bear market since April or so. Even the tier-one companies have suffered major double-digit declines, such as Canopy Growth (NYSE:CGC), Cronos Group (NASDAQ:CRON) and Tilray (NASDAQ:TLRY).Source: Shutterstock Then again, the run-up that came before the downtrend was parabolic as the sentiment got excessive. Let's face it, there was too much optimism about the potential impact from the legalization of the Canadian market. It also did not help that there were problems with the supply chain as well as black market activity. So when things did not pan out as expected, a painful correction was inevitable.But I do think this is presenting some interesting opportunities in the space. For example, take a look at Hexo (NYSE:HEXO) stock, which has been cut in half during the past six months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company is certainly well positioned to benefit from the long-term potential in the Canadian market. Keep in mind that Hexo dominates the Quebec market, with a 30% share.What's more, the company continues to make strides with production. Hexo has aggressively expanded its footprint to about 1.8 million square feet, with annual production of 150,00 kilograms. * 7 Discount Retail Stocks to Buy for a Recession M&A has also been critical. To this end, Hexo shelled out $197 million for Newstrike Brands Ltd, which added to annual capacity by about 150,000 kilograms.Yet the focus on production has not been about quantity over quality. Consider that the company has been a heavy investor in innovation and R&D, which has allowed for higher margin offerings.According to Hexo CEO Sebastien St-Louis, on the latest earnings call: "We now have 25 PhDs on staff. They're focused on developing new and innovative products for the market, best-in-class technology for our 'Powered by HEXO' experiences. Building on our innovative technology is critical in building brands." Strategic Alliance With Molson Coors BrewingI think a critical factor for Hexo stock is its partnership with Molson Coors Brewing (NYSE:TAP). No doubt, there are the benefits of leverage from the broad capabilities of global distribution, marketing expertise and logistics. Such factors will likely prove essential in breaking through the noise in the marketplace.The deal with TAP will also allow Hexo to benefit from the "Cannabis 2.0." This refers to October 17th, when it will be legal to sell cannabis extracts in Canada (although the selling will not be allowed until mid-December because of the requirement to get a permit). The market is likely to be significant, with the potential for $1 billion+ in spending next year.To prepare for this, Hexo and TAP have been jointly creating a variety of products, such as beverages, gummies and vapes. In other words, there could be a nice catalyst for revenue growth. For example, in regards to fiscal year 2020, Hexo is projecting that the top-line will hit a hefty $400 million and that there will be a doubling in fiscal Q4. Bottom Line On The Hexo Stock PriceGiven the consistent downtrend in Hexo stock, it's understandable that investors want to back off. There are legitimate fears that this could be the proverbial "falling knife."Yet it really does look like the sentiment for Hexo stock has gotten to overly negative levels. Besides, the growth story looks intact, especially with Cannabis 2.0, and the company has strong production and a solid position in the Canadian market. So for investors with a long-term perspective, I think Hexo stock looks like an interesting play at current levels.Tom Taulli is the author of the 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 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post The Molson Coors Deal Will Be a Game Changer for HEXO Stock appeared first on InvestorPlace.

  • Cannabis Coverage by Cowen: Cresco, Curaleaf, Acreage
    Market Realist

    Cannabis Coverage by Cowen: Cresco, Curaleaf, Acreage

    Despite Aurora Cannabis's subdued results, Cowen initiated coverage on five cannabis stocks: CRLBF, GTBIF, CURLF, MMNFF, and ACRGF.

  • Benzinga

    The Week In Cannabis: Big Pharma Makes Moves, Diddy & Wahlberg Go After CBD, Medicine Man Continues M&A Spree

    This week, we saw Teva Pharmaceutical Industries Ltd (NYSE: TEVA ) make a big move in the cannabis industry, through a distribution deal between its subsidiary Salomon, Levin, Elstein, and InterCure Ltd ...

  • Aurora Cannabis Stock Share Price Might Still Move Up
    InvestorPlace

    Aurora Cannabis Stock Share Price Might Still Move Up

    On Sep. 11, earnings results from Alberta-based Aurora Cannabis (NYSE:ACB) stock took the center stage in the cannabis space. To the surprise of analysts, ACB stock posted disappointing earnings. Earlier in August, ACB stock has already decreased the forecast. So when Aurora Cannabis stock missed the diminished expectations, investors were not forgiving.For cannabis investors, ACB stock needs little introduction. At present, Aurora Cannabis is Canada's largest producer of cannabis, which gives the company certain economies of scale. Especially in its early days, Aurora Cannabis stock was a can't-miss for investors. Yet since March, it has come off a long way from peak performance.The ACB stock price is now hovering around $5.90, close to January's lows in the $5 range. Understandably, investors are wondering what may be next for ACB stock given the recent decline in the price. Let's look at the company's fundamentals, industry developments, as well as the stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips ACB Stock's Q4 Results Failed to ImpressWhen it released Q4 results for the fiscal year ended June 30, Aurora Cannabis stock missed revenue expectations. ACB stock's net loss came at C$2.26 million on net revenue of C$98.94 million, with an adjusted EBITDA loss of C$11.7 million (or $8.9 million).Analysts had estimated revenue of C$108 million. In Q4 last year, Aurora stock had reported net income of C$79.9 million, on net revenue of C$19.1 million.Like many other cannabis producers -- such as Canopy Growth (NYSE:CGC) or Tilray (NASDAQ:TLRY) -- ACB has so far not able to convert the revenue growth into real profits.ACB stock's disappointing earnings follow several other poor results from large Canadian cannabis companies. And not everyone is convinced that Canadian recreational pot sales will remain strong.Most pot stocks are burning through loads of cash and losing money like there's no tomorrow. Cash flows are far from predictable. Investors are concerned that the initial hype surrounding the industry could be decreasing further.It is likely that the rich valuations in this commodity-based consumer market may take a further hit in the coming months. The recent price weakness in most pot stocks including ACB has improved relative valuations, but these stocks aren't cheap. Headwinds That May Affect Aurora Cannabis StockIt is important to remember that weed is an agricultural commodity. In late 2018, during the early weeks following legalization, Canadians spent about $40 million on legal weed. However, since then sales haven't really held up. Instead the figures have come in much less robust than initially anticipated.In other words, there are possibly too many players in Canada, a relatively small market. Annual Canadian sales are not likely to exceed $4 billion. In the legal retail market there is an oversupply. And as the largest producer, Aurora Cannabis is likely to have a major supply in its inventory.On the other hand, the black market is still thriving in Canada. Thus, how can a producer like Aurora Cannabis maintain high margins in an industry that does not have meaningful growth potential?No one knows when (or if) federal legalization will happen in the U.S. And other international sales outside these two countries are not big enough to act as a substantial catalyst for the share price of ACB as well as other pot stocks.Could consolidation be a way forward for most of these cannabis producers like Aurora stock? Could Canadian Legalization 2.0 Help ACB Stock?In Canada, pot edibles and beverages will become legal on Oct. 17, one year from the original legalization of cannabis in the country. Industry watchers are referring to this new era in Canadian pot markets as "Legalization 2.0."New products are not expected to hit shelves till Dec. 16 as license holders will have to give Health Canada 60 days notice if they intend to sell them. Upcoming Canadian regulations will strictly limit what types of consumables can be produced and marketed. For example, manufacturers cannot legally combine pot and alcohol in products.In some ways, this significant legal development feels like deja-vu. Many industry watchers regard the legalization of edibles and beverages as another another significant milestone for pot companies. So what does that mean for ACB stock?Around this time last year, Canadian cannabis stocks had started rallying in anticipation of the nationwide adult-use legalization. For example in mid-August, 2018, Aurora Cannabis stock touched a low of $4.05. By mid-October, ACB stock saw a high of $12.53.Therefore, the hype surrounding the launch of pot edibles and drinks in Canada is likely to give a bit of fizz to ACB stock in the coming weeks, too. However I don't expect as big of a jump this September.In other words, it might become a classic case of "buy the rumor; sell the news." The Bottom Line on ACB StockIn the coming weeks, I expect ACB stock to trade between $5 and $7. From a valuation standpoint, the stock is not necessarily a bargain at $5. However, I expect the second stage of legalization in Canada to give a boost to most pot stocks.For Aurora stock, $7 level would be likely to act as strong resistance. Only after the stock is able to push through and stay above $7 can Aurora shareholders begin to relax for the longer-term prospects.The cannabis industry remains speculative at best. Yet there may still be an opportunity for those with a high risk tolerance. Given the new steps in legalization in Canada, this quarter might be an opportune time to start a position ACB stock.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Aurora Cannabis Stock Share Price Might Still Move Up appeared first on InvestorPlace.

  • InvestorPlace

    Here’s Why Aurora Cannabis Stock Stumbled

    Among investment sectors, few have incurred the kind of volatility as legal marijuana. Major Canadian cannabis players like Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON) forwarded disappointing earnings reports. Thus, with Aurora Cannabis (NYSE:ACB) set to launch its fiscal fourth-quarter results, many had hopeful eyes on Aurora Cannabis stock.Source: Shutterstock Unfortunately, those expectations were badly misplaced. Aurora disclosed its Q4 numbers after Wednesday's close, and Wall Street did not react kindly. On the top line, the medical-cannabis specialist rang up $98.9 million CAD, which represented a 52% lift from the prior quarter. However, Aurora management forecasted Q4 sales to come in between $100 million CAD to $107 million CAD. As a result of the revenue miss, the ACB stock price tanked in after-hours trading.After a night's rest to digest the news, the Street immediately hit the "sell" button. Due to the mini-panic, Aurora Cannabis stock closed Sept. 12 below the $6 level. From a technical perspective, this was an unfortunate development. ACB stock was finally looking interesting since the beginning of this month. Now, questions have sprouted about this once-vaunted cannabis player.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnother factor that has raised concerns among investors is Aurora's international business. One of the biggest investment arguments for Aurora Cannabis stock is its international footprint, the biggest in the sector. However, most of the company's financial performance comes from its local Canadian market. * 10 Battered Tech Stocks to Buy Now But in Europe, for example, the company generated $4.5 million CAD in medical-cannabis sales. That's up 12%, a very modest rate compared to its Canadian growth rate. With management continuing to make high-dollar investments, can ACB stock survive? Aurora Cannabis Stock Tanked for Understandable ReasonsHeading into the Q4 earnings report, the ACB stock price had robust technical momentum. At the same time, on a fundamental basis, the organization was going up against a wall of pressure.Primarily, every other major cannabis player had failed to impress the Street. Unlike in late 2017, Aurora Cannabis stock and its ilk did not benefit from the honeymoon effect. Cannabis investments no longer moved on compelling narratives, such as Canada legalizing recreational weed. Instead, prospective buyers were placing extra attention on the "boring" stuff, like fiscal sustainability.That created a major problem. Let me be blunt: There are two reasons why mainstream financial institutions take a pass on cannabis-related businesses. First, legal uncertainties -- and political controversies -- surround the sector. Second, the financials for most of these names are rough.And that's been the story for Aurora Cannabis stock and its peers throughout this year. Undoubtedly, Aurora and the rest of the marijuana market offer tremendous potential in their narratives. For example, if the U.S. legalizes marijuana, it changes the calculus for ACB stock.But before the narrative comes the reality. While Aurora's revenue growth has been impressive on a mathematical scale, so has its debt load. Sure, companies like Aurora have healthy cash balances, in part due to strategic partnerships. Yet the concern is this: Aurora cannot keep spending without turning at least some of its narrative potential into hard results.Ultimately, I think that's why the Street was so disappointed. The cannabis market has stepped out of the honeymoon phase and into the "show me" phase. In other words, investors are tired of hearing bedtime stories. Instead, they want some evidence that these tales are based on facts.If you looked at the Q4 results, you really didn't get that impression from Aurora Cannabis stock. Should You Dump ACB Stock?Part of being a good investor is knowing when to give up. Unlike sports, there's no such thing as a moral victory in the markets. Either you're making money or you're not.Under this framework, Aurora Cannabis stock looks like a candidate to sell. And I don't blame you if you decide to go that route.That said, here's the plain truth about ACB stock: No matter what anybody says about the financials, the play here has always been the narrative. When companies in established industries show the kind of quarterly results that Aurora does, you should jettison immediately -- we know approximately the upper boundaries of traditional industries.But we really don't know anything about marijuana. Maybe the segment peaked in Ottawa, and everybody else doesn't know it yet. Or, the U.S. and other regions will start opening the legalization door.Clearly, Aurora Cannabis is banking aggressively on this latter possibility. Whether you believe in the same will determine how you approach ACB stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Herea€™s Why Aurora Cannabis Stock Stumbled appeared first on InvestorPlace.

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