44.88 +0.47 (1.06%)
After hours: 7:59PM EDT
|Bid||44.06 x 1000|
|Ask||45.00 x 1100|
|Day's Range||43.22 - 45.09|
|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||79.30|
CALGARY , July 16, 2019 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (ISH.CN), a Canadian company establishing a national network of retail cannabis stores under its Spiritleaf brand, today announced it has received six additional licences from Alberta Gaming, Liquor and Cannabis (the "AGLC") for retail cannabis stores in the province. The Company also announced that its corporate-owned retail cannabis store in Jasper, Alberta located at 618 Patricia Street is expected to open on Monday, July 22. Please visit www.spiritleaf.ca for more information, including operating hours. The newly licensed locations include Spiritleaf retail cannabis stores in Beaumont , Calgary (Bow Trail), Calgary (Chinook), Edmonton (Ironstone), Grande Prairie and Medicine Hat, Alberta .
On Monday, OrganiGram (OGI) reported its third-quarter earnings. Following the company's earnings, we reported how it performed in the third quarter. To learn more, read OrganiGram’s Third-Quarter Earnings. Interestingly, OrganiGram stressed that the growth would be heavily driven by retail stores opening in Ontario and Quebec. The company stated that legalizing edibles and derivative products […]
(Bloomberg) -- With four quarters of profitability under its belt, Organigram Holdings Inc. is an anomaly in the Canadian cannabis market.Organigram has higher margins than most of its peers and one of the lowest costs per gram in the industry even though it grows indoors, generally considered the most expensive method of production. Chief Executive Officer Greg Engel attributes this to its ability to get higher yields from its pot plants than companies that grow in greenhouses, as well as its automated packaging lines.“We built a facility and designed a facility that was very focused on high-quality product because we felt there was a market opportunity that was sustainable,” Engel said in an interview at Bloomberg’s Toronto office.Organigram’s streak of profitability comes as the industry undergoes a period of significant upheaval. CannTrust Holdings Inc., previously considered one of the more reputable pot companies, plunged 48% last week after Canadian regulators said it grew cannabis in unlicensed areas of its greenhouse, forcing it to halt all sales and shipments of its products.That came less than a week after Canopy Growth Corp. fired co-CEO Bruce Linton amid shrinking margins and a C$323 million net loss in its most recent quarter.Lower ValuationMoncton, New Brunswick-based Organigram, meanwhile, reported its fourth consecutive quarter on Monday of positive adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda. Revenue of C$25 million ($19 million) missed estimates and gross margin fell to 50% from 60% in the previous quarter, but Eight Capital analyst Graeme Kreindler said he views this as an “isolated event” related to a temporary change in cultivation protocols and the timing of shipments to provinces.Organigram said it cost 95 cents to produce a gram of dried flower in its most recent quarter. That was up from 65 cents in the previous quarter but still compares favorably with C$1.42 at Aurora Cannabis Inc. and $1.48 at Tilray Inc.No other large Canadian pot producer has managed to post such a long string of positive Ebitda. However, although it’s one of the best-performing pure-play pot stocks this year, up 64%, its valuation as measured by its price-to-sales ratio is well below those of its largest competitors.Engel is unperturbed. “At the end of the day, the worst thing that can happen to a company is you’ve got an artificial stock price that you can’t sustain,” Engel said.Competitors also spend a lot on stock promotion, he said. This “may in the short term be helping their stock price, but I’m not sure that’s sustainable without ongoing spending,” he said.The problems at CannTrust and Canopy signal a shakeout in an industry that’s still maturing nine months after Canada legalized recreational pot. Organigram is lucky because it had its wake-up call early, said Engel.The company had to recall several lots of its medical pot in late 2016 and early 2017 after it was found to contain an unapproved pesticide. Engel, who was CEO of Tilray Inc. at the time, was hired after the recall to “make a major cultural shift,” he said.“As a result of that recall, we had monthly ongoing inspections by regulators, and historically the industry was always complaining or defensive about the inspections,” Engel said. “My approach was to embrace them. At the end of the day it’s a partnership, not an adversarial relationship.”In the interview, Engel shared his views of the nascent industry:Beverages and EdiblesOrganigram isn’t being coy about its desire for a partner that can help it develop cannabis-infused beverages, similar to Constellation Brands Inc.’s investment in Canopy, Tilray’s partnership with Anheuser-Busch InBev SA or Hexo Corp.’s joint venture with Molson Coors Brewing Co.Organigram has developed a rapid-onset technology that will allow its drinks to take effect within 10 to 15 minutes, similar to alcohol, and has also created a flavorless cannabis powder that can be added to any beverage.“We wanted to go to these negotiations offering as much as possible,” Engel said. Organigram is seeking a partner from the alcohol industry that can help it develop beverages infused with THC, the cannabis compound that gets you high. It’s also seeking a consumer packaged goods partner for drinks infused with CBD, a non-intoxicating substance that’s thought to have health and wellness properties.BiosyntheticsEngel hopes Organigram’s investment in Montreal-based Hyasynth Biologicals Inc. will also help it lure a partner. Hyasynth is developing large-scale biosynthetic production of cannabinoids, or the active compounds found in cannabis. This method, which uses yeast to produce the compounds in a lab, is cheaper than extracting them from plants and will help lower production costs for products like beverages, edibles and vape pens, said Engel.U.S. Market“We’re very actively looking at the CBD market in the U.S.,” where the substance is legal at the federal level as long as it’s derived from hemp with very low THC content, Engel said. Organigram doesn’t plan to grow its own hemp but is looking at a range of possibilities, including investments in existing brands, products and companies.Corporate GovernanceOrganigram has a fully independent board of directors, a rarity in the cannabis sector. The CEO sees good corporate governance as essential to a well-run pot company.“This is an industry that’s still very much moving from founders and executives being chairmen or multiple insiders on boards, and I think some of the challenges we’ve seen in the industry have been because of a lack of governance,” he said. “You have to have independent governance that has oversight and holds management accountable.”To contact the reporter on this story: Kristine Owram in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, ;David Scanlan at email@example.com, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Canadian cannabis companies have leapt onto U.S. stock markets, dazzling investors. Here's a rundown of industry facts and how to invest in marijuana stocks.
On Thursday, Tilray Inc (NASDAQ: TLRY) announced its GMP-certified medical cannabis oral solution has reached Ireland. In this manner, Ireland became the 13th country where Tilray’s products are imported, as the company works on its global expansion in Europe. At the end of June, the Department of Health in Ireland approved the Medical Cannabis Access Programme that enables patients in need of medical cannabis to obtain it.
A full year after its widely publicized initial public offering, Tilray (NASDAQ:TLRY) shares experienced breathtaking highs and gut-wrenching lows. This dynamic attracted a fair share of skeptics and detractors. Even in an already volatile cannabis sector, Tilray stock is a big mover in both directions. Therefore, TLRY isn't for the faint of heart.Source: Shutterstock If you're seeking relative safety in the cannabis stock niche, you're probably better off sticking with a cannabis old-timer: Speaking relatively, I'm referring to names such as Canopy Growth (NYSE:CGC) or Aurora Cannabis (NYSE:ACB).But if you're ready to take a walk on the wild side, though, then buckle up for some cannabis controversy. Compared to other weed plays, Tilray stock is a veritable roller-coaster ride.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Not Your Grandfather's StockMillennials and younger traders are drawn to volatile stocks like TLRY; thus, don't expect to see this in a lot of retirement accounts. With a jaw-dropping 52-week range of $20.10 to $300.00, it's fair to say that Tilray stock experienced some growing pains before real price discovery finally took hold. * 10 Stocks to Sell for an Economic Slowdown Plus, with no price-earnings ratio listed because the earnings are negative, this is a "proceed with caution" play. Still, the price action for TLRY seemed to have calmed down this summer. After generating considerable noise as the NASDAQ's first listed pot stock, investors might identify a trading range for this wildcard. No Lock-up Worries for TLRYMuch of the bearish sentiment surrounding TLRY involved the company's largest shareholder, a private-equity firm known as Privateer Holdings. You may recall the hubbub over the ominous-sounding Tilray news that its insider shareholder lock-up period was ending earlier this year (Jan. 15, to be exact). That means that Privateer would now be allowed to sell all of its TLRY shares.This most likely caused some investors to panic and sell their holdings of Tilray stock before Privateer could sell theirs. But as it turned out, their fears were unwarranted: Privateer announced that it wouldn't sell any of its TLRY shares immediately after the lock-up period expiration.That was quite a relief, as Privateer owned approximately 76% of Tilray's outstanding shares. Not only that, they've agreed to extend their lock-up provision on those TLRY shares for two years. Street CredFor Tilray, gaining credibility on Wall Street wasn't easy. But they managed to align themselves with a bona fide giant when they partnered with beer-maker Anheuser Busch Inbev (NYSE:BUD). The purpose of their joint endeavor is to research nonalcoholic beverages containing THC and CBD.Personally, I feel that this partnership will prove transformative for the cannabis industry; investors and the media practically ignored this landmark arrangement, which is unfortunate. This deal will position Tilray in a unique position to capitalize on the potentially massive Canadian market for cannabis-infused beverages.Another boost to Tilray's credibility is the recent announcement that they're importing medical cannabis oral solutions in large quantities to the U.K. Sascha Mielcarek, the managing director of Tilray Europe, noted that Tilray already has six medical cannabis products approved for medical use in the U.K. Mielcarek also expressed optimism as the company continues to make inroads into the burgeoning European cannabis market, stating:Regulations are progressing as more and more countries across Europe are recognizing the benefits of medical cannabis and its potential to improve patients' quality of life. We're pleased to reaffirm our commitment to delivering medical cannabis to patients in the U.K. and look forward to offering a variety of GMP-certified, pharmaceutical-grade products in the coming months.Skeptics should also be aware that Tilray already ships to 12 countries with legalized cannabis. Among them is Germany, which has a population more than twice the size of Canada's. The Bottom Line on Tilray StockPlease don't misunderstand -- I'm not saying that retirees should load up their investment accounts with shares of TLRY stock. It's something of an acquired taste.However, cannabis-infused beverages and the rising cannabis market in Europe present huge opportunities. Therefore, I'm not at all against the idea of buying Tilray stock on the dip. It could turn into a joyride as the company strives for stability in this decidedly unstable industry.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 'High' Caliber: Can Tilray Stock Close the Credibility Gap? appeared first on InvestorPlace.
[Editor's note: This story will be updated each week with new stocks and analysis. Please check back often for Mark's latest take on marijuana stocks.]Technical analysis is very misunderstood. This does not surprise me because most of the technical analysts that I see just don't get it. They mindlessly look at charts and try to identify patterns without understanding what they are supposed to mean. Even worse, some analysts promote dubious methods like harmonic charts and Elliot waves (these techniques are like Sasquatch and UFOs. They may be fun to talk about but they are not real. Institutional traders do not use them).In financial markets, prices are always doing one of three things. They are either going up, going down or staying the same.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn addition, in financial markets certain price levels are more important than others with regards to the amount of supply and demand that exists at them. If understood and utilized correctly, technical analysis should be an illustration of these supply-and-demand dynamics.Having a knowledge of these dynamics can help you make money. Short-term traders need to know which levels are important in order to be successful. Long-term holders can benefit by having a better understanding of where to place their buy and sell orders.For example, say you buy a stock at $10 and plan on selling it when it gets to $20. You should look at the chart, because if there is significant resistance at $19, the stock may not get to $20. It may rally and hit the resistance at $19, and then reverse its trend and go back to $10. If you had a limit order at $20, it would not have been filled and you would have missed making a significant profit. * 10 Stocks to Sell for an Economic Slowdown Let's take a look at seven of the most popular marijuana stocks and some of the technical levels in each. A lesson can be learned from each of them. Marijuana Stocks: Cronos (CRON)Cronos (NASDAQ:CRON) grows and sells marijuana. It has been consolidating over the past month.You don't need to be a Market Guru to see that the $14 level is important. It was support in May and June. This is because in September and December it was resistance. How does this happen? How does resistance become support? Consider the following.Those who sold it at $14 were feeling pretty good after it went lower. The short-sellers are making money and the regular sellers are happy because they made the correct decision when they decided to sell.Then in January the stock rallied and went through $14 to higher levels. Now the short-sellers are losing money and they tell themselves that they will buy it if it gets back to $14 so they can break even. The regular sellers tell themselves that they made a mistake selling it. If it comes back to $14, they will buy it back. Those who bought it at $14 wish they bought more and tell themselves they will if it gets back to $14.Add to that professional traders who wish to profit off of a clear level, and we now have four groups of interested buyers at $14. This is how support forms. Canopy Growth (CGC)Canopy Growth (NYSE:CGC) grows and sells marijuana.You can see that the $40 level is important for CGC. It was support in April and early June. It is testing that level again now, and it appears to be breaking. If it does break, the stock could drop to $30 pretty quickly. This is because in January it gapped up from $30 to $40. Gaps tend to refill.When a stock gaps, up it doesn't spend much time trading at the levels that it gapped through. Because of this, meaningful support would not develop at these levels. * 7 Retail Stocks to Buy for the Second Half of 2019 As we have seen, support forms because those who sold at a particular level want to buy it back after it goes higher while those who bought it wish they bought more.So ultimately, if CGC stock falls, it could fall a ways. Aphria (APHA)Aphria (NYSE:APHA) grows and sells marijuana.APHA has been trending lower over the past two weeks. Longer-term, there is support around the $6.25 level and resistance around the $7.30 level.Few think about it, but a clearly defined support or resistance level is an amazing thing. How is it that at different points in time, a stock can have the exact same valuation? Interest rates are different, the economy is different, and different news has come out.No academic or efficient market believer could ever explain why certain levels are more important than others. According to them, clear levels shouldn't exist. But as we can see here, they most certainly do.If APHA continues to trade lower, it will probably find support again around $6.25. If you like the company, that would be a logical place to buy it. If it rallies, I would look for resistance around the $7.30 level again. Tilray (TLRY)Tilray (NASDAQ:TLRY) grows and sells marijuana. And TLRY stock illustrates the concept of trends and trendlines quite nicely. These are not as mysterious as some seem to think. Drawing trendlines is an art and not a science, but with some experience and practice, it can help your investments.When prices are moving up in a market, the forces of demand are in control. When prices are falling, the forces of supply are in control. When markets are consolidating or trading sideways, the forces of supply and demand are equal.The break of a trendline could be a signal that the leadership of the market is about to change or equalize. * 10 Best Stocks for 2019: A Volatile First Half As we can see here, the forces of supply drove TLRY lower from February through June. Since then, the forces of supply and demand have equalized. The break of the downtrend line in June was an early indication that this was going to happen. CannTrust Holdings (CTST)CannTrust Holdings (NYSE:CTST) grows and sells medical marijuana.A valuable lesson about buying a stock can be learned here. $4.80 has been clear support, and each time that CTST traded down to that level over the past year a significant rally followed.As the stock once again approached this level, some traders would want to buy it hoping that it would rally again. Most would just buy it around $4.80. But there is a better strategy, and this is illustrated here. Instead of buying it at $4.80, wait until the downtrend line is broken before entering the position.In other words, buy it on the way up. You won't get the exact low price but the risk-reward ratio is better than just guessing that the selloff is over.In this case, this strategy would have saved investors a lot of money. After cutting through $4.80, the company got dinged with a non-compliance report from Health Canada that sent shares plummeting toward $3. Anyone who bought around $4.80 likely isn't too happy with that decision right about now. Cure Pharmaceutical Holding (CURR)Cure Pharmaceutical (OTCMKTS:CURR) develops and manufactures drugs and drug delivery systems. The $4.50 level is important here. It was resistance in August and September and then again in March.Over the past few weeks, CURR stock rallied through this level, but it became overextended and overbought. As expected, it reversed and found support at the $4.50 level.This is another example of how resistance becomes support. Those who sold it say they will buy it back if it gets down to their level. Those who bought it want to buy more. * 7 A-Rated Stocks to Buy for the Rest of 2019 If you like the long-term prospects of this company, this would probably be a good time to buy it. Innovative Industrial Properties (IIPR)Innovative Industrial Properties (NYSE:IIPR) acquires industrial properties and rents space to marijuana growers. This company is a great example of an ancillary business to the cannabis industry. It has also performed exceptionally well.We can see here what technicians call a "pennant" or "flag" pattern. This type of pattern is typically a continuation pattern.In other words, it shows that the buyers that drove up the price have decided to take a break and see if the stock will come down a little allowing them to buy it at better prices. Once these buyers reenter the market, they will drive it higher again.For example, a money manager may really want to own a stock. They buy it aggressively on Monday and Tuesday and drive up the price. Then on Wednesday, they take a break and the stock price doesn't move. On Thursday and Friday they decide to finish their buying and they take the price up again. This type of activity would look like a flag on a chart.At the time of this writing, Mark Putrino did not hold any positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 7 Marijuana Stocks With Critical Levels to Watch appeared first on InvestorPlace.
From acquisitions to equity investments, the North American hemp industry has been awash in capital investment since the Farm Bill 2018 was federally passed in the United States last December. The Hemp Business Journal has been closely monitoring such activity, and will soon publish more comprehensive data pertaining to the latest deals. Arguably the biggest deal in the hemp industry so far this year has been the acquisition of Manitoba Harvest by Tilray (NASDAQ: TLRY).
Cronos Group (NASDAQ:CRON) shares have struggled of late. Since early March highs, Cronos stock is down about 35%.Source: Shutterstock Cronos stock managed to put together a modest rally last month, but it has faded. CRON sits at a one-month low at the moment.To be sure, CRON stock isn't alone. Other cannabis majors are scuffling. Canopy Growth (NYSE:CGC) has dropped steadily since late April, losing about a quarter of its value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAurora Cannabis (NYSE:ACB) is off almost 30% since mid-March. Tilray (NASDAQ:TLRY) has stabilized, but after a long, steep decline. Hexo (NYSEAMERICAN:HEXO) has slid 41%. * 10 Best ETFs for 2019: The Race for 1 Intensifies For the biggest cannabis stocks, investor patience is drying up. Why that is remains unclear. Valuation could be a concern. It's likely that there's a "OK, what's next?" response after Canadian legalization in October.The problem for Cronos Group stock, however, is that even when sentiment returns, it's not clear what the company can do to spark investor enthusiasm.The near- to mid-term worry is that if cannabis stocks continue following, CRON stock will too. And if they rise, Cronos stock may well underperform peers until the wisdom of its plans become more clear - and Cronos starts showing real success. The Canada Problem for Cronos StockIt's become increasingly clear that the Canadian market isn't big enough and that there are real worries about too much supply in cannabis flower more broadly. As I've noted before, prices have crashed in U.S. regulated markets due to oversupply.In March, Tilray's CEO predicted similar issues in Canada as soon as next year. Aurora's strategy clearly is predicated on the idea that Canada alone isn't enough.Cronos seems to be operating on similar principles. Despite its US$1.8 billion investment from Altria (NYSE:MO), its production capacity might not even make the top ten in Canada, as the Motley Fool has noted. Even with that cash on the books, Cronos isn't racing to build out its production capabilities.That strategy makes some sense, particularly if as feared the Canadian market simply isn't big enough. Oversupply in dried flower is a real concern. But as far as CRON stock goes, it raises the question of what catalyst might arrive any time soon.Cronos might be right in playing the long game. Investors - and particularly cannabis stock investors - haven't shown that same patience in recent months. The StrategyAs CEO Mike Gorenstein put it on the Q1 conference call, "Like Altria, we believe that the best way to create value through the supply chain is by working with contract farmers and not being farmers ourselves."Cronos simply isn't all that interested in producing dried cannabis flower. It would rather let others spend the money to create that supply, assuming it can then buy flower at cheaper rates down the line.Instead, the company is focused on derivatives and R&D. It's working with Ginkgo Biosciences to create new strains of cannabis that can yield purer and easier-to-extract THC and CBD.Its new Cronos Device Labs in Israel will focus on fine-tuning vaporizers for varying customer demands. Production in Colombia is focusing on hemp over cannabis, with Gorenstein predicting on the Q1 call that CBD would outpace THC in terms of growth in the coming years.The Altria partnership should give Cronos an edge in these areas, given that tobacco company's long history with regulators. But there's risk here as well.The efforts with Ginkgo may not pan out. Even if they do, the new strains may not be all that valuable, if 'natural' strains are abundant and cheap as other companies build out capacity. Vaporizer demand may be lower than expected.There's certainly a risk that while Cronos plays around the edges of the market, rivals like Canopy and Aurora simply overpower the market. Canopy has more cash thanks to its deal with Constellation Brands (NYSE:STZ,NYSE:STZ.B).Aurora will give its stock to any company that will take it. If an investor believes that cannabis production will be big business globally, it's tough to believe that Cronos will be the big winner. The Long-Term Case for Cronos StockFrom a long-term standpoint, Cronos' strategy does seem wise. It's a good idea to keep US$1 billion or so in the bank in an industry in upheaval.Canadian suppliers are going to go bust; that's simply the nature of any growing market. Unexpected new markets may emerge elsewhere. Keeping capital on hand enhances flexibility, which seems like a compelling attribute to have as cannabis legalization (both recreational and medical) expands.Similarly, focusing on higher-value-add and higher-margin products makes sense. One need only look at the difference in valuation between Altria and Pyxus International (NYSE:PYX), an Altria grower, to understand what that will be the case in cannabis as well.The issue over the next 1-3 years, however, is that the strategy appeals to those of us (myself included) who think cannabis stocks are too expensive to begin with.Again, Cronos is set up for a future where oversupply hits prices and/or the global cannabis market moves slower than bullish investors expect. In both scenarios, cannabis stocks come down - and it's unlikely, though not impossible, that CRON stock emerges unscathed.In a sense, Cronos stock is the pot stock for investors who question whether pot stocks have rallied too far. If those investors are right, they're betting off staying as patient as Cronos is willing to be. As such, even with CRON stock cheaper, there's seemingly little need to rush in.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Cronos Isn't in a Rush. Investors in Cronos Stock Shouldn't Be Either appeared first on InvestorPlace.
VANCOUVER , July 11, 2019 /CNW/ - Zenabis Global Inc.'s (ZENA.TO) ("Zenabis" or the "Company") wholly-owned subsidiary, Zenabis Ltd., has closed its previously-announced non-dilutive financing via a pre-paid supply agreement with High Park Holdings Ltd. ("High Park") (the "Supply Agreement"), a wholly-owned subsidiary of Tilray, Inc. (TLRY) ("Tilray"). The terms of the Supply Agreement were previously disclosed in a news release dated July 2, 2019 .
Tilray Inc. (TLRY:NASDAQ), a global pioneer in cannabis cultivation, processing and distribution, today announced that it has successfully imported Good Manufacturing Practices (GMP)-certified finished medical cannabis oral solutions into Ireland intended for nationwide distribution.
Aurora Cannabis (NYSE:ACB) stock had two recent failed attempts at breaking out from $8 per share. This is a level that has been pivotal since January of 2018 so it's not a surprise to find it sticky here. But this resistance remains the opportunity for the next few months.Clearly the bulls and the bears are in a heated battle over the short-term future of Aurora stock. That is why they keep chopping around these levels. But the important thing for the bull thesis is for ACB to hold its support. Otherwise, the sellers will take control of the reins and the bulls would have to fall back and reset for another set of attempts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI consider this opportunity primarily a swing trade for a momentum stock. These are volatile tickers that move fast in either direction, which makes them tricky to trade without either complete faith or proper knowledge of levels.While I do have some faith that the cannabis industry has a good future ahead, I don't have blind faith that it will. So in this case I must plot the short-term lines that I see here for ACB stock. * The S&P 500's 5 Best Highest-Yielding Dividend Stocks I need to clarify that the battle though fierce now, year-to-date the ACB is up almost 50%. So this is not the case of a struggling stock. The point from today is to catch the next big burst. The battle here is important for both sides because the breach on one side will carry momentum in that direction.My hunch is that the bulls will eventually prevail and the upside opportunity for ACB is to target a new high. There will be resistance at $8, $9.25 and $10.40 per share. The current ACB price pattern is a sharp descending wedge knocking against a flat floor. Often these resolve themselves upwards especially if there is no new specific reason to sell the stock. First the Fundamentals for ACBThe whole sector is exorbitantly expensive. The valuations are completely insane but that's because we don't yet have a baseline. This is similar to the chase of eyeballs into the dot-com bubble. Only this time we actually do have a market and products so there is actual income flowing into Aurora and other pot stocks.The very fact that legitimate companies like Constellation Brands (NYSE:STZ) and Altria (NYSE:MO) are investing billions into pot companies like Canopy Growth (NASDAQ:CGC) and Cronos (NASDAQ:CRON) is proof enough that there something there.The potential comes from the fact that ACB and the gang need to expand their capacity in order to satisfy the incessant demand that we know is there. But the bigger upside reset will probably come from legislative changes.More and more countries are legalizing cannabis. The U.S. is still lagging even though some states took the plunge individually. Once federal regulations in the U.S. change they open the door for companies like Pepsi (NYSE:PEP) to invest in cannabis then the interest in them turns into a feeding frenzy.One thing is not in doubt: Cannabis has very devout fans. This is true for traditional recreational use, edibles and the expectations of drinkables. Medicine is also incorporating cannabis in many formats. I am also noticing more advertisement for topical spreads which are not yet constrained by the regulatory bodies in the US. Trading ACB StockIf I am already long ACB stock, I just look away for a few months. But for those who have complete faith in the concept and believe that it's only a matter of time before the stars will align for pot stocks, they need to simply plug their noses and buy the ACB shares here. This is a long-term bet that the concept will grow into its valuation.After all, this is an industry that is like a newborn, so young that it's eyes are still shut. It is impossible to short the future prospects of the sector so soon so the bottom -- regardless of ACB fundamentals -- should be shallow. The hopium is still too big.For the short term, the bulls and bears for ACB are playing tug-o-war between $7 and $8 per share. So far the floor has held but the risk now becomes that the action forms a neckline that must hold. Else the sellers prevail and overshoot to test the next support zone around $5. This would be a dip I'd buy.The bottom line is easy. Both sides of the opinions on Aurora stock are passionate. But for now it's impossible to deny the upside potential of such a young company. So it becomes a matter of time before the bears get tired and the bulls overwhelm them on the charts. So I'd rather be long than short this one for the next year. * 7 Retail Stocks to Buy for the Second Half of 2019 Another way to go long ACB without committing to the full price of the stock now is to sell December $6 puts and let time do the work. This way I get paid today for the opportunity to own the shares at a 18% discount from now.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. Join his live chat room free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Aurora Cannabis Stockas Highs Are Coming appeared first on InvestorPlace.
TORONTO , July 10, 2019 /CNW/ - Cannvas MedTech Inc. ("Cannvas" or the "Company") (MTEC.CN) (3CM.F) (CANVF), a leading digital cannabis education and analytics company, is pleased to announce its planned expansion into Europe is on track with a renewed focus on providing consumer-facing intelligent cannabis education to potential and active medical and adult-use cannabis consumers through its international cannabis education platform Cannvas.Me. With its expansion into Germany underway, Cannvas is turning their attention to the United Kingdom as well as other emerging cannabis markets across the EU.
Aurora Cannabis (NYSE:ACB) is already Canada's biggest cannabis grower, and has set the stage to become one of the world's biggest by around this time next year. But on the other hand, ACB stock has made absolutely no progress since the end of 2017.Granted, it's not the only marijuana stock that's struggled to gain traction. Canopy Growth (NYSE:CGC), once the poster child for investing in marijuana stocks, has lost much of its luster, and as of earlier this month is looking for a new CEO. Neither New Age Beverages (NASDAQ:NBEV) nor Tilray (NASDAQ:TLRY) has been able to come close to holding on to its explosive gains reaped in September of last year.That's not the performance many latecomers to marijuana stocks were expecting. ACB stock, however, has been particularly disappointing.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy for the Rest of 2019 Although acknowledged by few cannabis investors, the reality is that marijuana stocks aren't paying off the way they were supposed to be paying off by this point.That could be about to change. Mortgaging the FutureInvestors don't own stocks for where they've been. They own the shares for where they're going.So the interest in marijuana stocks has been and remains understandable. Jefferies believes the global market for legal cannabis could reach $130 billion by 2029. Aurora Cannabis, which is building an international business, should benefit from that trend. For instance, late last year it shelled out nearly $300 million worth of ACB stock to acquire Latin American outfit ICC Labs.But Aurora Cannabis, perpetually cash-strapped, is using ACB stock in lieu of currency, diluting existing shareholders' stake.That's not terribly unusual. But it's not necessarily ideal to utilize the practice to the extent Aurora Cannabis has. As of the first quarter of 2017, 313 million shares of ACB stock were issued and outstanding. Now more than 1 billion shares of Aurora stock have been issued.The practice, in short, whittles down the potential reward of ACB stock without reducing its risk. That's not something all the owners of ACB stock signed up for. It's also likely that Aurora's growth-by-acquisition strategy will drive further dilution of Aurora Cannabis stock.Analysts, though, are still largely upbeat on ACB stock. Is a Payoff Imminent?The most obvious counter-argument to the practice is also the best one. That is, it takes money to make money. Without money, stock is the next-best option.If there's a positive side to all the expensive acquisitions though, it's yet to fully appear.But it may be too early to expect Aurora's investments to bear fruit. Canada only legalized recreational marijuana in October of last year, and the rest of the world is only at various stages of legalization.On the flip side, the cannabis movement is hardly brand new. Non-psychotropic CBD has been legal for years, even though interest in its potential continues to swell. By this point, there should at least be evidence that Aurora Cannabis, along with its peers, is en route to sustainable net earnings.And there is. By early next year, Aurora should be in the black, even if just barely.Cowen analyst Vivien Azer says the company could post its first positive quarterly EBITDA , which would also be the cannabis industry's first -- when it reports the results for its quarter that ended last month.Analysts can be wrong. It's also worth noting that no other analyst besides Cowen's Azer thinks that ACB generated positive EBITDA last quarter. Still, ACB is moving in a generally positive direction, and that should be positive for Aurora stock. The pace of forward progress still matters, however. Investors are growing impatient. Looking Ahead for ACB StockIn the simplest terms, this has turned into a horse race. Can the company start to show signs of enough life within the next few quarters to justify the dilution ACB stock owners are being forced to digest? The go-nowhere volatility demonstrated by Aurora stock for more than a year and a half says investors have doubts.The pros, however, remain undeterred.The opposing expectations are making Aurora Cannabis stock tough to trade, and ACB stock will likely remain erratic until it's clear Aurora can turn a meaningful profit or clearly can't. Dilution will only add to the erratic action, as traders attempt to price in that headwind.The bottom line on ACB stock is that if Azer's optimism isn't quite merited, the next several months could be as inconsistent as the past few have been. Don't get your hopes up, and remain patient. Aurora Cannabis stock is likely to morph into a long-term dance… a true investment, rather than a mere trade.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 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Analysts Say the Dilution of Aurora Cannabis Stock Will Eventually Be Worth It appeared first on InvestorPlace.
Over the last few months, Tilray (NASDAQ:TLRY) appears to have broken from its downward trend. With a large shareholder choosing to keep stock in lock-up, a lower than anticipated supply of shares helped to propel Tilray stock.Source: Shutterstock Unfortunately, with little else to provide a catalyst, the recent move higher looks like a temporary interruption in its decline from the bubble territory of last September. TLRY Began to Recover in JuneI have long urged investors to avoid Tilray stock. Back in April, when the stock traded at about $60 per share, I reiterated this advice as lockouts preventing insiders from selling had expired. By early June, TLRY had fallen into the mid $30s per share level.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half Since then, it has seen a slight recovery and currently trades at around $47 per share. As our own Tom Taulli mentioned, TLRY seems to have traded on the overall supply of available shares.The Tilray news that probably helped it move up revolved around Privateer Holdings. Privateer, Tilray's largest shareholder, agreed to extend a lock-up provision on 75 million shares to two years.Despite this recent recovery, the stock still has fallen more than 84% since the $300 per share high of last September. Year-to-date, it has lost nearly one-third of its value. Even after that steep drop, TLRY still trades at about 80 times sales.This does not make Tilray stock unique among marijuana equities. Canopy Growth (NYSE:CGC) sells at about the same price-to-sales (PS) ratio. It might even look inexpensive compared to the approximate 338 PS ratio of Cronos Group (NASDAQ:CRON). Tilray's Multiple MattersHowever, despite the modest recovery, TLRY shows us one thing--even with hot stocks just as TLRY, fundamentals still matter. That does not mean that Tilray's PS ratio is going to the current S&P 500 average of about 2.2.Nor does it mean it will come close to the S&P's current price-to-earnings (PE) ratio of just above 22 when it becomes profitable. Assuming Tilray survives in its current form, I think TLRY is years away from either scenario.However, to continue to justify its higher multiple, it has to move on prospects not yet priced into TLRY stock. The decline in recent months hinges on the fact that it no longer sees those new markets and lines of business.The only near-term prospect I see involves the one mentioned by my colleague, James Brumley. He noted that Tilray has begun to export cannabidiol (CBD) to the U.K. Britain has legalized the sale, but not the production of CBD products.Still, while that could give TLRY a near-term boost, I would not count on that prohibition on production remaining in place long term. Partnerships with Novartis (NYSE:NVS) and Anheuser-Busch InBev (NYSE:BUD) in 2018. But that was 2018.Worse for Tilray stock, investors have more choices. More countries continue to legalize. The market price of marijuana continues to fall steadily in its home market.Given these factors, I see nothing on the horizon that can send TLRY higher. As gravity begins to take a stronger hold on the equity, it becomes increasingly likely it will mostly move in a downward direction. The Bottom Line on Tilray StockThe recent reprieve in the long decline in Tilray stock will likely not last. Over the last month, Tilray stock moved higher by almost 20% as its largest shareholder chose to keep more shares from hitting the open market.Unfortunately, fundamentals have begun to catch up to TLRY. With cannabis prices falling, competition increasing, and prospects for added growth diminishing, the 80-plus sales multiple has become more difficult to justify.Revenue growth remains robust, and Tilray should remain one of the larger companies in Canadian cannabis. However, with TLRY at its current valuation, investors should either look at market leader Canopy Growth or hold out for a lower price.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post The Fundamental Problems of Tilray Stock Are Just Getting Worse appeared first on InvestorPlace.
On Monday, CannTrust Holdings (CTST) stock fell almost 22.6%. The sell-off was driven by a negative compliance report from Health Canada.
Some of the leading companies in the cannabis space are feeling pressure to justify the huge valuations of their stocks. Just look at Canopy Growth (NYSE:CGC). Recently, the company announced that its co-CEO, Bruce Linton, would step down.On an interim basis, co-CEO Mark Zekulin will run the company until a permanent leader is found. The company is considering both internal and external candidates.In a CNBC interview following his departure,, Linton said: "I think stepping down might not be the right phrase. I was terminated."InvestorPlace - Stock Market News, Stock Advice & Trading TipsAll this comes after CGC reported disappointing fiscal fourth-quarter earnings on June 20. CGC announced adjusted EBITDA of negative $257 million for the fiscal year. But perhaps the most worrisome part of the report was that its Q4 gross recreational Canadian revenue fell to C$68.9 million from C$71.6 million during the same period a year earlier. This is an indication that there are still complications with the supply and distribution of cannabis in Canada as well as continuing black-market activities. * 5 Dividend Stocks to Buy From Across the Globe The management of Constellation Brands (NYSE:STZ), which invested a whopping $4 billion Canopy stock in November, was far from thrilled. Here's what Constellation CEO William Newlands said last week about CGC: "And while we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy's recent reported year end results."Yikes! It looks like STZ played a major role in Linton's departure.So what should investors do with CGC stock now? I don't think the owners of Canopy Growth stock should panic, since the company's long-term prospects still look promising. The following developments should be bullish for CGC stock: * CGC has partnered with STZ to launch cannabis-infused beverages. The drinks are expected to go on sale in Canada later in the year, which should nicely boost CGC's growth and propel CGC stovk price higher. * After the Farm Bill was signed into law, cannabidiol (CBD) products can be made in the U.S.. To this end, CGC has been building a sophisticated hemp-processing facility in New York. * CGC has agreed to acquire Acreage Holdings (OTCMKTS:ACRGF), which has cannabis licenses in 20 states and owns a retail chain called The Botanist. The deal will position the company to benefit from the anticipated legalization of cannabis in the U.S.on a federal level.The cannabis market will continue to be volatile. CGC is not the only operator with growing pains. Other marijuana companies, including Aphria (NYSE:APHA), Tilray (NASDAQ:TLRY) and Cronos Group (NASDAQ:CRON) have also had problems. The Bottom Line on CGC StockLinton is a pioneer in the cannabis space and has quickly built an empire. As he was quoted as saying in last week's press release: "Creating Canopy Growth began with an abandoned chocolate factory and a vision."But those who have the talent to build an innovative company in an emerging market may not be the right people to run a large organization. Linton appears to be in the latter category.Yet the silver lining is that STZ recognized this early on and was not afraid to make a bold, somewhat risky, change. That is actually a bullish sign for CGC stock and should ultimately propel CGC stock price higher.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post Where Is Canopy Growth Stock Headed After the Shocking Removal of Its Co-CEO? appeared first on InvestorPlace.
Innovation Shares LLC said late Monday that a cannabis-focused exchange traded fund will begin to trade on the New York Stock Exchange under the ticker symbol THCX beginning Tuesday. The Cannabis ETF will hold 35 stocks and includes some of the world's largest Canadian marijuana companies by market capitalization such as Canopy Growth Corp. , Aurora Cannabis Inc. and Tilray Inc. . It also includes operators in the U.S. such as Charlotte's Web Holdings Inc. and Innovative Industrial Properties , which is a real estate investment trust. Innovation Shares said that the ETF will re-balance monthly. The fund's management fee is set at 0.7%. According to The Wall Street Journal the average expense ratio for an ETF is 0.44%, though narrowly focused funds tend to be more expensive. AdvisorShares Pure Cannabis ETF and ETFMG Alternative Harvest ETF also track the cannabis sector and trade in the U.S.
Top talent from European pharmaceutical and beverage industries join Tilray’s leadership team as company accelerates growth in international markets
VANCOUVER , July 2, 2019 /CNW/ - Zenabis Global Inc. (ZENA.TO) ("Zenabis" or the "Company") today announced that its wholly-owned subsidiary, Zenabis Ltd., has entered into an agreement with High Park Holdings Ltd. ("High Park") (the "Supply Agreement"), a wholly-owned subsidiary of Tilray, Inc. (TLRY) ("Tilray"), pursuant to which High Park will advance CAD $30 million to Zenabis (the "prepaid amount") in return for a supply of dried cannabis from Zenabis. Under the terms of the Supply Agreement, Zenabis will deliver a monthly quantity of dried cannabis to High Park commencing in October 2019 .
CALGARY , July 2, 2019 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (ISH.CN), a Canadian company establishing a national network of retail cannabis stores under its Spiritleaf brand, today announced it has received a licence from Alberta Gaming, Liquor and Cannabis (the "AGLC") for a corporate-owned retail cannabis store in Jasper, Alberta , the commercial centre of Jasper National Park . The store will be located in Jasper at 618 Patricia Street and will open this month.