|Bid||76.60 x 1200|
|Ask||76.90 x 900|
|Day's Range||75.80 - 78.36|
|52 Week Range||20.10 - 300.00|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||131.25|
Cannabis Sector Gained after CGC's and ACB's Earnings Last WeekCannabis sector was up last week In the week that ended on February 15, the cannabis sector ended in the positive territory, with the Horizons Marijuana Life Sciences ETF (HMMJ) gaining
Two of the biggest Canadian marijuana companies provided quarterly updates last week. Their results could be good news for other marijuana stocks, too.
Cannabis stocks may be red hot, but "Bond King" Jeffery Gundlach issued caution to investors before being consumed by the "mania" in an exclusive interview with Yahoo Finance.
If you own a stake in Tilray (NASDAQ:TLRY) and want to know what's going to make or break Tilray stock following its upcoming quarterly earnings report, look no further than the responses to quarterly reports from rivals Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC). Investors, professionals and amateurs alike, have already indicated what annoys and delights them.There's no certainty as to when that announcement might be made, to be clear. Given the company's prior announcement cadence, it was widely presumed the news would drop on Feb. 13. It didn't.Also noteworthy is the timing of Canopy Growth's report, which was posted late in the night on Feb. 14, just beating its regulatory deadline. Tilray's post could surface at any time, without warning, if Canopy's timing is any indication.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEvery hour between now and when that happens, though, is an hour owners of TLRY stock can use to better figure out what's making pot stocks tick. Cannabis Industry's Hot ButtonsThe responses to the quarterly numbers for the cannabis industry's most recognizable names thus far has been mixed. * 10 Hot Stocks Leading the Market's Blitz Higher More than that, however, it has been surprisingly muted given the mania that surrounded these names in the latter half of last year. Canopy Growth stock was up measurably but modestly on Friday following Thursday evening's post, while shares of Aurora Cannabis have slumped somewhat since delivering last quarter's numbers on Monday, Feb. 11.The market has made it clear how it's judging marijuana stocks, however. Chief among the concerns? Believe it or not, profitability … sort of.Nobody really expected any cannabis startup to turn a GAAP profit last quarter, even though Canada's legalization in October led to triple-digit revenue growth. All of the key names in the business are spending briskly on acquisitions, positioning for the day when market share matters.Still, it has already become a part of the discussion. Canaccord Genuity analyst Matt Bottomley made a point of pointing out Canopy Growth's gross margins fell sequentially, from 28% to 22%.In that same vein, Cowen analyst Vivien Azer wrote "WEED [Canopy Growth's Canadian ticker] net revenues of $83 mm were up 256% sequentially, and in line with consensus, which is a relief given the meaningful miss last quarter. The offset, however, seems to be an absence of production efficiencies as cash COGS (cost of goods sold) / gram continued to climb, and was $5.11 in the quarter, a far cry from the $2-3 we see from WEED's peers."The fact that such matters are being discussed so soon is telling. Companies Controlling the NarrativeCanopy's $75.1 billion (Canadian) EBITDA loss was tough to overlook versus the $5.6 billion (again, Canadian) EBITDA loss suffered in the same quarter a year earlier against a backdrop of the 282% year-over-year improvement in revenue.Nevertheless, the industry has learned quickly the importance of managing perceptions. CFO Timothy Saunders redirected investors' attention to the EBITDA figure, which abated some of the company's net loss that includes stock-based compensation expense. That figure looked considerably healthier than the GAAP bottom line.Canopy's quarterly report also conceded, perhaps preemptively, that the average selling price of dried leaves fell from $8.30 (Canadian) per gram a year ago to $7.33 per gram last quarter. That company added, however, that it expects pricing to stabilize in the foreseeable future.The price declines subtly rekindle concerns that the bigger the marijuana industry becomes, the more commoditized it will become, ultimately launching a price war. Small and poorly-funded companies that spend too aggressively to secure market share may find lower pricing power makes it difficult, if not impossible, to service all their debt and justify bloated, complicated organizational structures.Aurora's official statement acknowledged the same, explaining "The decrease [in gross margin] was primarily due to a lower average selling price per gram of dried cannabis, the impact of excise taxes on medical cannabis net revenues, and a temporarily lower proportion of cannabis oil sales in the company's sales mix ratio."To that end, Aurora's gross margin on cannabis sales fell sequentially from 70% to 54%, and were down from 63% in the comparable quarter a year earlier. Like Canopy Growth though, Aurora was sure to suggest the trend was a temporary one.These organizations have already learned the importance of managing narratives. Tilray's effort to do the same will be worth noting. Looking Ahead for Tilray StockThey're metrics that seemingly hadn't mattered until now. To date, fans and followers of marijuana's legalization movement were content to let the premise of pot be enough to justify ownership of these names. Perhaps more keenly aware than usual that all of this capital consumption has to be justified sooner or later though, the market has imposed some pretty traditional criteria on the relatively young industry's stocks.As for Tilray stock, as of the latest look, the small group of analysts following it are calling for a top line of $12.8 million to lead to a per-share loss of 14 cents for the recently ended quarter.Undoubtedly investors will pass some degree of judgment based on how the company's results match up to expectations. More than that, though, it looks as if the market is already willing to weigh pot stocks on more meaningful measures like margins, pricing power and efficiency. Tilray doesn't have to turn a profit, but it does have to stack up against its competitors.That happened much sooner than it normally has for other "new" industries.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post Tilray Stock's Quarter Will Be Seriously Judged, Like Its Rivals appeared first on InvestorPlace.
How Cannabis Stocks Are Doing as This Week Wraps UpCannabis stocks are upAs of February 15, the overall cannabis sector is up overall, lifted by Canopy Growth’s (WEED) (CGC) earnings and Aphria’s (APHA) special committee findings related to
Marijuana stocks and related ETFs caught investors' attention last year, courtesy of its mysterious rally in mid-2018 on Canada's legalization of recreational marijuana in October. Let's take a look at whether the space will be able to maintain its rally in 2019.
Companies in the cannabis sector typically run into the issue of ascertaining credit because traditional banking institutions are restricted from working with them, given the federal legalities of it all. According to several top research firms, cannabis is set to be worth as much as $31 billion by the end of 2022, which means that there is quite a bit of room left to grow for companies in the space. As the cannabis market continues to traverse new territories, Nabis Holdings (INNPF) (NAB), Tilray Inc (TLRY), New Age Beverages Corporation (NBEV), and Pyxus International Inc (PYX) are four cannabis companies picking up speed on Friday.
Canopy Growth Rises after Earnings BeatCanopy Growth risesCanopy Growth (WEED) (CGC) was trending higher by 5% when markets opened. The company reported its earnings late last evening at around 8:45 PM EST.The company reported strong top-line
Analyzing Canopy Growth's Q3 Results(Continued from Prior Part)Canopy Growth’s losses widenIn the third quarter, Canopy Growth (WEED) (CGC) reported an operating loss of 157.2 million Canadian dollars, which widened from an operating loss of 26
In 2017 we had the Bitcoin craze and last year Wall Street was high on the cannabis trade. Canopy Growth (NYSE:CGC), which is the largest Canadian company of its kind, took center stage when Constellation Brands (NYSE:STZ) invested $4 billion in it. This further legitimized the pot potential after an increase in the legalization trend. Since then, companies like Coke (NYSE:KO) have also been in pursuit of the pot of gold -- pun intended.The bullish thesis on cannabis is very broad. This makes it easy to accept and difficult to short. This also makes for some lofty expectations. Companies like Tilray (NASDAQ:TLRY) and Cronos (NASDAQ:CRON) are perhaps two of the most expensive valuations I've seen. TLRY has a market caps of $7 billion on only $20 million of revenues, and CRON's is $3.9 billion on only revenues of $3 million.From that perspective, CGC stock is not that much cheaper -- except this one has a fortress balance sheet thanks to the STZ investment. What ever the potential opportunities they may see, they have the money to pursue them the proper way. Growth becomes attainable, and that is good reason to pay up for the stock now.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWall Street is doing just that this morning, as the stock is moving 5% on the heels of the conference calls. Management reported earnings last night, and so far the reaction then was muted even though the report was solid. I caution that the stock move so far is still well below what was expected so investors could still change their mind today. But even then, this is the short term and the thesis for CGC stock is for the long term. CGC Stock EarningsThe report was strong on most metrics. They delivered triple-digit growth on sales and deliverable. They sold 10,100 Kg in the third quarter and that is a whopping 360% increase from the prior quarter. This is a steep ramp, and most of it was for recreational use. So the legalization trend has a significant impact on how much product CGC stocks can deliver. * 10 Hot Stocks Leading the Market's Blitz Higher Therein lies the cannabis mania. More headlines on those fronts will surely drive the demand and stock price up.The sky's the limit since it's new territory. This potential has attracted mainstream large-cap companies like STZ, but others like KO have been looking as well, so they have yet to scratch the surface. Doubters of the sector should be careful here. Shorting a broad bullish thesis could bring financial ruin to staunch bears.Since there are so many opinion of future income streams for cannabis companies like CGC, it's hard to shoot them all down down. It would be like fighting a multi-headed snake. When you think you beat one argument, the stocks rally on another angle or point of view.So where is the growth going to come from next? With the legalization trend being so young, there will be exponential growth, from the direct-to-consumer sales through retail and online. And as more regions amend their laws to accept it, cannabis will expand its current product lines but also add more of the same.Currently the edibles, drinkables and medicinal are three of the most popular topics of discussion, I bet there will be dozens more soon to add to the list. This will broaden the scope of potential corporate acquirers like STZ did.The bottom line is that Canopy Growth stock should have no limit for as long as the stock market is rising. The quest for new uses of cannabis and the efforts to expand what's already on hand is too strong to stifle in the short term. That is why the stock moves so violently on a daily basis. The fear of missing out is too great. So those who missed the run the first few times can jump into the stock on dips.Technically, CGC stock behaves well, filling the chart patterns. As active a chart as it has, the breakdown and breakout levels have so far been predictable. It is now 85% higher than it was on Christmas and it is trading inside a tight range. This builds up pent-up energy that will need to resolve itself. This usually happens in a breakout or breakdown from significant levels.In this case, If Canopy stock loses $41.60, it could retest the $35 zone. Conversely and if the bulls can break through $48 then $52, they can invite enough momentum buyers to mount a $12 rally from there. In fact, CGC may already be in a breakout pattern with a measured move to $60 per share.Normally I want to wait for the breakout line to happen before I chase stocks. In this case, I would make an exception and buy get long CGC early because it is a fast mover. But I would put a tight stop below $41.60. I could do this using options, but even if I buy the stock outright, I would consider selling covered calls to mitigate my risk. Long term, this stock could be a massive home run, we just cannot quantify it yet and that is exciting and totally worth the risk.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post Canopy Growth Stock Has Great Potential -- Buy High And Sell Higher appeared first on InvestorPlace.
Analyzing Canopy Growth's Q3 Results(Continued from Prior Part)Margins During the third quarter, Canopy Growth (WEED) (CGC) reported a gross margin of ~12.4 million Canadian dollars, which was lower compared to 16.5 million Canadian dollars in the
The medical marijuana firm jumped 3% midday, despite its revenue of $62.35 million missing Investing.com estimates of $66 million.
Canopy Growth (NYSE:CGC) has built up a lot of excitement ahead of earnings. The marijuana sector has been on fire to start 2019. With CGC stock's strong performance, it has easily passed Tilray (NASDAQ:TLRY) to reclaim its place as North America's most valuable marijuana company. While Tilray stock is up a modest 10% year-to-date, CGC stock has surged 70% since the start of 2019.Source: Shutterstock However, this is a good time to lock in some profits on CGC stock. Signs are pointing to the company missing expectations on its earnings report. The market is likely to sell off Canopy stock following that. If you want to be involved in CGC stock here, the smart play is to wait for the stock to shake out after earnings before taking a position. Earnings: Don't Expect Big ResultsThis earnings report is not likely to be a big event for CGC stock. That's simply because legalization is too recent for sales to have really taken off yet. Aurora Cannabis (NYSE:ACB) pointed to this fact with their earnings conference call earlier this week. Aurora noted that it had sales of CAD $21.6 million in the recreational market.Aurora Chief Corporate Officer Cam Battley noted that:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Overall based on the statistics provided by Health Canada for the period October 17 to December 31, 2018, we achieved over 20% market share. Approximately one in five grams of product sold to Canadian consumers comes from one of the Aurora brands".We can figure from that statement that the overall recreational market for this past quarter was around CAD $110 million. Canopy produced just CAD $23 million in consumer revenues last quarter. Thus, the analyst expectations from Canopy of CAD $85 million for this quarter seem a bit ambitious. That would require revenues more than tripling over a three month span.Yes, recreational is operating in Canada, in addition to Canopy's other pre-existing markets. But given that the Canadian market is still so small, based on Aurora's reported results, it seems doubtful that Canopy achieved enough incremental growth to hit the analyst consensus.It's possible that CGC still tops expectations as there are a lot of moving parts. The company is building out its retail operations, for example, which could provide a significant chunk of additional revenue. Overall, however, given the sobering numbers from Aurora earlier this week, don't expect a big beat from Canopy either. An Earnings Dip Could Be A Buying OpportunityLet's be clear, in the long run, this quarter's earnings hardly matter for Canopy Growth. We're talking about a company with a market cap of CAD $21 billion ($16 billion) here. CAD $85 million is a laughably small revenue figure compared to the market cap, so it hardly matters if the company beats or misses that figure by five or ten percent.What does matter is the overall growth trajectory. How is the company doing in terms of market share? How are the retail operations going? Is the company developing strong brands and lasting relationships with its clients? That's the stuff you need to be focused on.It's worth remembering that Aurora stock initially dropped on its somewhat underwhelming earnings report but reversed course and headed higher. Analysts looked past the numbers and took a look at the outlook for the rest of 2019 and beyond.The same thing could happen with CGC stock on Friday assuming it does in fact miss earnings. Ultimately, a couple years from now, no one will care about today's earnings results. The numbers are simply too small to matter compared to the market cap.What does matter is if management can continue executing on its growth story. At the end of the day, all of these marijuana companies need revenues to go up many-fold to justify their current valuations. So, the main focus on your investment outlook for a stock like CGC should be whether they can deliver over time or not. CGC Stock VerdictI am not a fan of CGC stock heading into earnings. Shares rallied heavily on Wednesday, and are way up from recent levels. This seems like a good place to take some profits. I'd also note from a technical analysis standpoint that the stock is facing fairly heavy overhead resistance at the $50 level. CGC stock spent most of September and October trading around $50-$52 share.After the big drop last fall, CGC stock bottomed in the $20's. In January, it rallied sharply but once again the rally stopped dead in its tracks once it hit $50 level. This is clearly turning into a make or break level for the stock. That makes sense. Constellation (NYSE:STZ) invested in Canopy with the stock around $30. That effectively puts a floor on shares, since at $30, you can buy for the same price as the company's major backer. Once it gets up to $50, people who bought at $30 can sell for 67% gains. Given this technical dynamic, it'd take a great earnings report or serious positive momentum within the marijuana sector to get CGC stock over $50 in the near term. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? As such, the optimum trade for earnings to be on the sidelines heading into the report. If the company comes up short of estimates and the stock drops back toward $40, that'd be a nice place to look to buy the dip. If the stock does break out over $50 and keep going, that could set up a nice momentum trade as well. But until CGC stock breaks that level, the stock remains a risky play, particularly ahead of earnings.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post Caution Is Required Ahead of Canopy Growthas Earnings appeared first on InvestorPlace.
Cannabis Stocks Fall before Canopy Growth's EarningsCannabis stocks Before Canopy Growth’s (WEED) (CGC) earnings, most cannabis stocks fell. Canopy Growth fell nearly 1.6% at 11:45 PM EST on February 14. The cannabis sector ETF, the Horizons
Aurora Cannabis: Notes from Its Earnings CallEarnings call On February 11, Aurora Cannabis (ACB) reported its earnings. The company also held an earnings call. The Q&A session can provide more qualitative information about the
To say that the Tilray (NASDAQ:TLRY) stock came out of the gate strong is the understatement of the decade. The stock got caught in a whirlwind trade that made instant millionaires but left many broken accounts. The rise was so fast that the shorts were decimated. Then the fall was equally impressive and surely caught late-comers stuck long.Source: Shutterstock Since then, the mania has abated but it still is an exciting stock to watch. It is now more than 70% off its highs on Sept. 19, 2018, but it still carries the aura of last year. Critics would argue that fundamentally, Tilray stock is grossly overvalued from a traditional standpoint. It has a market cap of $7 billion with only $20 million in revenues.But this is not a traditional stock. While I am not here to judge it for value, the bullish thesis here resembles that of Tesla a few years ago. Bulls have an array of reasons why TLRY has tremendous potential down the road. The cannabis stocks are levitating here for a whole host of reasons. Some see medicinal applications, while others expect mainstream companies like Coke (NYSE:KO) or Pepsi (NASDAQ:PEP) to promote the recreational cannabis-infused drinks. There is also the edible area which is already in full bloom.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Looking Into Tilray StockI am not here to judge what's right or wrong from the ethical aspect. Nor am I here to judge the thesis. I can clearly see that the thesis is popular to the point that it is almost impossible to kill it here. As long as this is true, there will be a bid under cannabis stocks like TLRY.For those who believe strongly in the sector, they should just buy and hold the stocks for the long term. Personally, for that plan I'd prefer Canopy Growth (NASDAQ:CGC). This way I can piggy back off the homework of Constellation (NYSE:STZ) and their $4 billion investment in CGC.For the traders among us, we can refer to price to learn the truth. The charts give us all the information that we need to find trigger levels up or down, then set a clear plan of action.My observation is that TLRY stock is too quiet here. For momentum stocks like this, this only means that a move is coming and direction is unknown. More to that point, the range of prices tightened severely in February. The last time we had a similar situation was on Jan. 7. What ensued was a giant 30% rally.While this is not a guarantee that history will repeat itself, the price action is similar. The range tightened between Dec. 20 and Jan. 7 and then the stock blow up. It is definitely worth an attempt at a trade. Click to Enlarge The upside triggers are $78.30, $79.54 and $88.70. Each should bring some resistance, but then if the bulls break through them they invite more buyers to join. Now we have a higher low and lower high trading sequence coming into a point. This won't last, so traders must be fast.I don't normally condone jumping the gun, but Tilray stock might be hard to grab it if it starts moving. I am also not reckless, so it is probably a good idea to use options to get in for little money. I'd use March contracts or longer for this.TLRY is probably reporting earnings soon, and that is definitely an unpredictable short-term catalyst. First, we don't know what they will deliver. And second, we don't know how markets will react to the report. This is more reason to use smaller out-of-pocket expense in options.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post Tilray Stock Is Off Its Highs, But a Move is Imminent appeared first on InvestorPlace.
Mugglehead says cannabis beverages are going to be the talk of 2019. Since securing its deal with Constellation Brands, Inc. (STZ), all eyes have been on Canopy Growth and what it plans to do in the beverages space. Recently, it also announced it would be injecting an additional CAD $30 million into Canopy Rivers Inc. (RIV.V), its investing arm.
With Aurora Cannabis and most other marijuana stocks, sentiment and short squeezes are directing price action.
Analysts' Ratings for WEED, TLRY, and APHA in FebruaryCannabis stocks Canopy Growth (WEED), Aphria (APHA), and Tilray (TLRY) did well in January. They have mainly held their gains in February. On February 11, Aurora Cannabis (ACB) reported its
The latest in Washington D.C.: Trump says a shutdown is 'unlikely,' and the Congress holds a hearing cannabis banking. Yahoo Finance's Julie Hyman, Adam Shapiro and Jessica Smith discuss.