|Bid||0.00 x 900|
|Ask||0.00 x 1300|
|Day's Range||41.20 - 45.49|
|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||94.86|
Actor & comedian Tommy Chong weighs in on CBD outlook. This coming as Texas legalizes hemp production. Yahoo Finance's Zack Guzman & Sibile Marcellus, along with 'BigEyedWish' founder Ian Wishingrad join in on the conversation.
CGC analysts are estimating an EPS of -0.17 and revenues of $71 million. Shareholders are voting today on whether to acquire Acreage Holdings, which could propel CGC one way or the other.
To accomplish the feat of becoming the first cannabis-related software stock to list on the Nasdaq, MJ Freeway Chief Executive Jessica Billingsley opted to employ a creative strategy.
In the world of pot stocks, your options are seemingly limitless. To reduce the agony of parsing which stocks might be winners and losers, you might just settle on the biggest names out there. With legal marijuana sales growing at a rate higher than 20%, how could you go wrong?
[Editor's Note: This story was previously published in February 2019. It has since been updated and republished.]The 2018 midterm elections made clear that Americans preferred legalization over the continued prohibition of pot, which should bolster the case for the top marijuana penny stocks.When residents in California voted for full recreational weed, it boded well not just for marijuana penny stocks, but for electoral momentum in other states and the midterms emphatically proved this point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn conservative Utah and Missouri, voters approved medical cannabis. But Michigan stood above the rest, becoming the tenth state to legalize recreational marijuana. Significantly, it's also the first Midwestern state to approve such an initiative.Previously embattled marijuana stocks like Cronos Group (NASDAQ:CRON), Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC) received a much-needed boost in the markets and really have capitalized on it.It's not difficult to understand why many investors believe in weed. Not only does legal marijuana open doors to a previously inaccessible sector, it has proven economic benefits. The commonly cited case study is Colorado. In 2015, one year after green lighting cannabis businesses, the botanical industry nearly hit $1 billion in revenue. In 2016, it breached the threshold, and growth remains strong. Considering that so many states suffer from budget shortfalls, a little green could go a long way.Plus, the sharp war of words and tariffs in U.S.-China trade relations amps up the case for marijuana penny stocks. Multiple industries, especially agriculture, are hurting. Full legalization provides an easy catalyst for economic activity and growth. * 7 High-Quality Cheap Stocks to Buy With $10 Under this backdrop, gambling on top marijuana penny stocks is more compelling than jumping on any other speculative venture. While risks abound, these four sector players offer considerable upside possibilities. Auxly Cannabis Group (CBWTF)A common difficulty in forecasting future price movements for top marijuana penny stocks is separating hype from reality. While almost every sector player advertises significant upside potential, most undercapitalized firms fail to deliver the goods.I had high hopes for Auxly Cannabis (OTCMKTS:CBWTF) last year due to its unique business structure. Auxly earned bragging rights for becoming the first cannabis streaming company.Energy and mining companies typically deploy the streaming model to gain full access to an industry's supply chain without incurring unnecessary risk. In theory, streaming is the way to go for marijuana-related organizations. Even with Canada's legalization initiative and U.S. electoral momentum, several legal and administrative hurdles exist. Streaming facilitates exposure to a lucrative industry, but with "stop gaps" should things go awry.Unfortunately, the markets have not been kind to Auxly stock. Since its January opener, shares have lost more than half their equity value.Nevertheless, I'm still hopeful that Auxly can pull it together. One of the major challenges for the company is that its streaming partners still encounter arguably unreasonable non-cannabis related obstacles. The biggest on the list is securing traditional financing, which stymies expansion efforts.However, the cannabis industry is making steady steps toward mainstream institutional acceptance. And especially with the U.S.-China trade war heating up, even conservative administrations can't afford overlooking a key revenue-maker. MPX Bioceutical (MPXEF)A common stereotype about legal-cannabis advocates is that they have ulterior motives for their product evangelism. Although that could be the case, one thing is undeniable: many, if not most top marijuana penny stocks focus on botany's medicinal aspect.This is especially true for MPX International (OTCMKTS:MPXOF). MPX operates three brands under its corporate umbrella: Salus BioPharma, Health for Life and its namesake MPX.The former two divisions specialize in medical-grade cannabis, while the latter caters to the green lifestyle. Salus is particularly intriguing as it represents a joint venture with Israeli pharmaceutical Panaxia to develop proprietary, smokeless cannabis products.Another compelling driver for MPXOF stock is its recent partnership with South Africa's First Growth Holdings. Primarily, this is an attractive deal because South Africa provides ample land and inexpensive labor. Moreover, the country recently legalized weed, so it provides MPX with global revenue synergies. Granted, management must make investments to ensure the higher-quality inventory which western connoisseurs desire. Nevertheless, the cost outlay should be very reasonable compared to other locales. * 7 Top-Rated Biotech Stocks to Invest In Today That's not to say you should jump on MPXOF stock without worries. The company isn't what you would consider fundamentally sound. Still, with relatively stable market performance and an impressive growth rate, speculators will want to keep close tabs on MPX. Supreme Cannabis Company (SPRWF)When Canada became the first G7 nation to approve recreational weed in October 2018, it actually forged the path forward for marijuana startups. As a result, the lion's share of marijuana penny stocks is based in Canada.A prime example is Supreme Cannabis Company (OTCMKTS:SPRWF). Supreme Cannabis, whose 7ACRES brand of medical-grade cannabis started life as a father seeking alternative therapies for his daughter.Eventually, 7ACRES grew to become a gold-standard cannabis facility, offering distinct, high-quality strains.What makes SPRWF stand out compared to other top marijuana penny stocks is that management is focused on a business-to-business (B2B) strategy. This enables the company to fine-tune its craft, rather than dilute its effectiveness through disparate supply-chain segments.Over the long run, I think this higher-end focus will distinguish SPRWF stock from the competition. For example, several mainstream retail stores, including Neiman Marcus and Vitamin Shoppe (NYSE:VSI), have pushed for cannabidiol, or CBD, products.Obviously, that's a big plus for the broader marijuana industry. But just selling bottom-shelf weed at large volume isn't going to cut it. Consumers want differentiation, which is what Supreme Cannabis offers. Therefore, SPRWF stock has a chance to positively surprise.That said, this is a very volatile market. SPRWF stock is a high-risk, high-reward venture, but a very tempting one due to positive industry-related developments. Cannabis Science (CBIS)Cannabis Science (OTCMKTS:CBIS) is easily one of the most speculative among top marijuana penny stocks. Immediately, you can tell that through either its ridiculously low share price, or its sub-$100 million market capitalization.Another giveaway is Cannabis Science's bold declaration to provide innovative therapies for unmet medical needs, including cancer. As the old saying goes, extraordinary claims require extraordinary evidence.But this is also where CBIS stock becomes interesting. Management claims that cannabis use dates back thousands of years, making it one of the most tried-and-true medicines. Plus, traditional pharmaceutical companies have become more a marketing machine than a therapy provider. Therefore, the medical-cannabis industry deserves at least some credibility.Also, I think it's fair to point out that the opioid crisis has caused mainstream pharmaceuticals to lose credibility. Despite best intentions, the pharmaceutical industry has left a wave of problems in its wake. This could negatively impact generations of Americans. Thus, marijuana penny stocks related to medical cannabis could benefit.That's the good news for CBIS stock. The not so great news is that shares continue to struggle. * 7 U.S. Stocks to Buy With Limited Trade War Exposure Conservative investors should probably stay away from Cannabis Science and marijuana penny stocks in general. But if you're a speculator, CBIS stock appears to have bottomed after a recent bout of volatility. It's no guarantee of upside, but it might be worth a shot with gambling money.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post 4 Top Marijuana Penny Stocks to Take Seriously in 2019 appeared first on InvestorPlace.
Valens Groworks Corp (OTC: VGWCF) is working to make a mark in the areas of custom manufacturing and white label services in cannabis. Everett Knight, executive vice president of strategy and investments for Valens, spoke with Benzinga after Health Canada released its initial rules on edibles and concentrates. Knight said he supports 60-day application periods: "It's not always about getting products on the shelf.
Hexo (NYSE:HEXO) reported third-quarter earnings Thursday before the bell. The Quebec-based cannabis company's revenues missed analysts' estimate by a wide margin and even declined versus Q2, causing HEXO stock to plunge on both Thursday and Friday.Still, while this report might have scared investors, it does not appear to have affected the overall trajectory of Hexo Corp. HEXO Fell on a Massive Revenue MissThe HEXO stock price fell by another 5% on Friday. That came on top of an 8.5% decline on Thursday, as the fallout from the sequential revenue decline sent HEXO stock price plunging.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Stocks to Buy for $20 or Less For Q3, analysts, on average, had expected a loss of 5 cents per share. The company reported a loss of 4 cents per share, coming in ahead of estimates. However, its revenue of C$13 million was well short of the C$14.8 million analysts, on average, had expected.But HEXO's sales soared more than tenfold from the C$1.2 million of revenue it reported in the same quarter a year earlier. However, its $400,000 sequential revenue decline may have further dampened traders' view on HEXO stock. HEXO Is Still Poised for Robust GrowthUp to this point, HEXO had begun to develop a reputation as a sleeper play in this industry. It does not garner the attention that is devoted to Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB), Tilray (NASDAQ:TLRY), or Cronos Group (NASDAQ:CRON).However, its home province of Quebec is Canada's second-largest. In this province of about 8.4 million people, HEXO controls more than 30% of the cannabis market. It has been able to be so successful in large part because of a supply deal it made to bring 200,000 kg of cannabis to the province over five years.Meanwhile, HEXO recently agreed to buy Newstrike Brands (OTCMKTS:NWKRF). The deal increases HEXO's production space by 470,000 sf. That gives the company enough capacity to produce 150,000 kg of cannabis per year. HEXO also wants to enter the edibles and beverage markets. In the beverage space, it has partnered with Molson Coors (NYSE:TAP).On top of that, though analysts expect HEXO to post a 17 cent per share loss this year, they expect its EPS to rise to positive 11 cents next year. Also, notwithstanding the quarterly report, its revenues appear robust. The company only brought in C$4.93 million last year. However, for fiscal 2019, analysts' consensus revenue estimates rise to C$62.62 million. In 2020, analysts expect its revenue to reach C$319.4 million. This triple-digit growth may turn Thursday's results into an anomaly Wall Street will soon forget. Should Investors Buy HEXO Stock?In fairness, most of HEXO's marijuana stock peers also sold off on the news. Hexo's report could have left many with second thoughts about the industry's lofty valuations. Still, I see the decline of HEXO stock price as an overreaction. Its sequential revenue decline does nothing to undermine the longer-term case for HEXO stock.For this reason, I think investors should still be bullish on HEXO. Its revenue decline might have blindsided Wall Street. However, by focusing on that revenue number, investors apparently ignored an acquisition that will dramatically increase both the company's production capacity and its reach in its home country.Moreover, HEXO has attracted an ally in Molson Coors that can give the company the financial muscle and marketing knowledge it needs to launch cannabis-based beverages. Additionally, its lucrative supply agreement in its home province has bolstered its position in edibles and other markets. Given its growth potential, investors should add to their positions in HEXO, instead of selling HEXO stock.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Hexo Stock Remains Attractive Despite Revenue Miss appeared first on InvestorPlace.
Late last month I fleshed out some thoughts on Aurora Cannabis (NYSE:ACB), ultimately deciding that an investment in Aurora stock was mostly an investment in medical marijuana with an emphasis on Europe.Source: Aurora Cannabis It's a difference that still doesn't entirely matter. While Canopy Growth (NYSE:CGC) appears to be catering to recreational users while New Age Beverages (NASDAQ:NBEV) is, of course, looking to take an early lead in the CBD-infused beverage space, most of the major names in the business are still acting as a lot of things to a lot of people.The nascent industry has made the race a very messy and complex one. The proverbial land-grab of smaller names in the business has only made matters messier.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe legalized marijuana movement has matured enough to start making meaningful comparisons of all these companies. There's yet-another nuance to Aurora Cannabis that keeps Aurora stock at the upper portion of a list of marijuana stocks to buy. * 7 Top-Rated Biotech Stocks to Invest In Today Latin American MarijuanaAs yours truly predicted would be the case several times last year and earlier this year, cannabis is becoming a commodity and is increasingly priced as such. Though up recently, marijuana prices are broadly falling as its cultivation scales up, and the business is increasingly focused on low-cost production now that suppliers have to compete on price.My intuition about where newly-developed crops would be planted has so far been wrong, however. I widely assumed most new growth would actually take shape where it was sold and consumed, but it's actually been Latin America.That growth has been largely spurred and sponsored by pharmaceutical companies. Khiron Life Sciences is partnering with a research hospital in Colombia. Canada's PharmaCielo now owns a piece of Mexico's Mino Labs that ensures a supply of cannabis oil.Non-pharmaceutical players are also plugging into the low-cost and low-hurdle supply offered by growers in Latin America as well, however. Tilray (NASDAQ:TLRY), for instance, has acquired Chile's Alef Biotechnology, which grants the company a valuable production license.The moves, and others like them, put North American companies into a Latin American cannabis market expected to be worth $12.7 billion by 2028; most of that would be sales of medicinal cannabis.But, as laws progress and minds are changed, it's likely that restrictions currently making importing and exporting cannabis incredibly difficult will be eased.That makes Latin America a marijuana hub that Aurora isn't a part of. Except, it is. Aurora Stock and Latin AmericaThe company seems vulnerable on the surface. It's one of the largest names in the business in terms of production potential, with something on the order of 570,000 kilograms' worth of annual yield possible now that the MedReleaf deal is done. But, given its acquisition trend, the eventual output of as much as one million kilos per year doesn't seem outlandish.Since home-grown production is important to Aurora, the prospect of lower-cost production from Latin America is a concern.Aurora Cannabis acquired Uruguay-based ICC Labs in November. The deal not only gave Aurora 70% of the Uruguayan recreational market, but it also grants the new owners licenses to grow medical marijuana in Colombia and plugs it into an agreement with Mexico that allows imports of the commodity into that country.It's a foothold in a continent that 650,000 people call home and a continent that Europe's buyers are increasingly turning to in order to source cannabis, for a variety of uses. That's just another nuance that dovetails into the business Aurora has been developing.It's also a collective of countries that have been a little more progressive about cannabis than its neighbor to the north.What Cam Battley, Chief Corporate Officer for Aurora, meant when he commented, "We see ICC as the jewel of the South American market. This is going to be our anchor in South America and we have very big plans for that continent" still isn't exactly clear. But, it does suggest more deal-making and more market penetration are on the way. Looking Ahead for Aurora StockIt's still the early innings for the cannabis revolution. The dust is still settling, and a wide array of potential outcomes lie ahead.It is becoming clear, however, that Aurora Cannabis is emerging as one of the more deliberately and strategically-managed players of the marijuana movement.It remains focused on Europe and medicinal marijuana but is also establishing roots in a mostly-underserved South American market. Though not neglecting North America, it appears it's being selective, picking and choosing its battles in what's become an overwhelmingly competitive Canadian market. The U.S. market is ready to see some overflow too.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Diversification Is What Makes Aurora Stock a Solid Marijuana Play appeared first on InvestorPlace.
NEWTOWN SQUARE, PA / ACCESSWIRE / June 17, 2019 / Kaskela Law LLC is investigating Tilray, Inc. (NASDAQ: TLRY) ("Tilray" or the "Company") on behalf of the Company's shareholders. Since ...
With many cannabis stocks at sky-high valuations, there's little room for making mistakes. Just look at Hexo (NYSEAmerican:HEXO). On news of its latest earnings report, the stock price dropped 8.53%. Note that the HEXO stock price is about 50% off its 52-week high.Source: Shutterstock So let's drill-down on the quarter. For the bottom line, the company actually beat expectations. HEXO reported a loss of 7.75 million CAD ($5.77 million) , or 4 cents a share, while the consensus was for a loss of 5 cents a share.But the top-line was another story. Revenue came in at 13.02 million CAD yet the Street was looking for a more robust 14.8 million CAD. What's more, there was an 8.6% quarter-over-quarter drop in sales.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow predicting quarterly numbers has not been easy as Canada is still in the early phases of legalization for recreational purposes. There are also ongoing shortages, supply complications and regulatory issues to deal with. * 7 Stocks to Buy for the Coming Recession But then again, investors are certainly baking in lots of growth. So it should be no surprise that HEXO stock took at hit.Here are some other worrisome metrics for the quarter: * The average price of adult-use dried grams dropped from $5.83 CAD in January to $5.29 CAD in April. * The average gross selling price per gram was also soft, going from $9.15 CAD to $9.11 CAD.But of course, there was also some good news in the report. The company announced it received a medical cannabis installation license from the Greek government for "cultivation, processing and manufacturing facilities."To this end, Hexo plans to begin construction of a 323,000 square-foot facility in the country by the fourth quarter of this year. No doubt, this should ultimately be a nice catalyst for long-term growth.In the meantime, Hexo has other promising initiatives. For example, the company has entered a partnership with Molson Coors (NYSE:TAP) to develop cannabis-infused beverages. There are also aggressive plans to benefit from the cannabidiol (CBD) market (this involves the use of compounds in the cannabis sativa plant that do not produce a high).With the passage of the U.S. farm bill last year, the category is likely to see a spike in growth in the coming years. According to research from the Brightfield Group, the market in the U.S. could hit $22 billion by 2022. Bottom Line on Hexo StockAccording to InvestorPlace's James Brumley, Hexo stock has been mostly overlooked -- say compared to names like Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY), Aurora Cannabis (NYSE:ACB) and Cronos Group (NASDAQ:CRON). I agree. * 7 High-Quality Cheap Stocks to Buy With $10 I also think this presents an opportunity for investors. Consider that Bank of America (NYSE:BAC) analyst Christopher Carey holds that Hexo stock has the most attractive valuation within his coverage universe. The price target is actually $10, which assumes a whopping 78% upside from current levels!Hexo's management is also not backing off its revenue estimates. They not only call for a doubling in the current quarter but $400 million CAD for fiscal year 2020, which does not include the impact from the Molson Coors's partnership.Now when it comes to cannabis stocks, there should always be caution. Again, the industry is in the early stages and there will likely be continued volatility. Let's face it, the competitive environment is getting more intense and the legal environment is far from certain.So yes, investors should be diligent with their money. But as for Hexo stock, there are certainly many positives, in terms of the global expansion, CBD opportunity and the growth in Canada.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Hexo Stock Has An Earnings Buzz Kill That Simply Isn't Deserved appeared first on InvestorPlace.
Lower-valued American cannabis stocks are set to outperform their Canadian rivals as U.S. legal pot sales outpace those north of the border.
Medical marijuana and recreational marijuana are two high growth sectors in the cannabis industry. Learn about how the two differ, and how you can get into the market.
Let's get straight to the point. The only reason to own Tilray (TLRY) stock is whether the business opportunities justifies the rich stock valuation, not whether the CEO sells his shares.Privateer Holdings LockupA big risk with Tilray when the stock was trading all the way to $300 following a hot IPO was whether the insiders would dump shares via their holdings in Privateer Holdings. The extended lockup agreement announced Monday extends the lock-up period of what amounts to 75 million shares or 77% of the outstanding shares.Privateer Holdings is a venture fund that was co-founded by CEO Brendan Kennedy. Any attempt by the CEO to unload a material number of shares would crush the stock.These large Canadian cannabis stocks like Tilray sold the market on the massive global opportunity in the cannabis sector that approaches $200+ billion over the next few decades. Any decision by a leading executive in the sector to sell shares would surely crush the sector stocks.The lockup story isn’t as meaningful with Tilray trading for sub-$40 following an extended period of weakness. The market valuation got far ahead of the short-term business prospects.As well, an extended lockup of two years doesn’t exactly eliminate the risk that the insiders dump these shares in the future. All the move does is delay the decision and leave an extended overhang on the stock.Looking AheadAnalysts forecast Tilray generating revenues in the $376 million range in 2020 and up to $545 million in 2021.While a lot of the growth is built into general cannabis market expansion and acquisitions like Manitoba Harvest, the company isn’t guaranteed to generate a big profit in the competitive cannabis sector.Tilray had minuscule gross margins of 23% in Q1 leading to an adjusted EBITDA loss of $14.6 million. The losses declined slightly from $17.8 million in the prior quarter.The Canadian cannabis company is far from producing positive income when revenues of only $23.0 million are generating substantial losses.The Manitoba Harvest business remains a big question mark here with the FDA not approving CBD-infused food and dietary products and questioning the general safety of CBD-infused products due to a lack of safety studies. Tilray paid over $300 million for this company with an intent of using their 16,000 retail store distribution network in North America to aggressively move into CBD-infused products such as food, beverage and wellness products.TakeawayThe key investor takeaway is that investors are falling for the hype in the sector again. The key executives and CEO that control Privateer Holdings have no ability to unload shares at the current valuation without crushing the stock so an extended lockup doesn’t matter.Tilray has large EBITDA losses and a business model reliant on the U.S. CBD-infused food market that is suddenly thrown into regulatory questions due to statements by the FDA. The company announcing an extended lockup was just for effect due to the executives having no reasonable path to unloading stock in the next couple of years anyway. Investors should use any rally to unload Tilray shares and move into multi-state operators focused on the U.S. cannabis sector trading at lower market valuations.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on TLRY: * Privateer Won’t Flood the Market with Tilray Shares in the Short Term: Implications * From $300 to $45, Is Tilray Stock Finally a Buy Right Now? * Seaport Releases Updated Estimates for Cannabis Stock Tilray (TLRY) * Tilray Is a Great Cannabis Company, But the Stock Is Overvalued More recent articles from Smarter Analyst: * Should Investors Buy Facebook (FB) Stock After Its Cryptocurrency Launch? Top Analyst Weighs In * Avoid Canopy Growth Stock Like the Plague; Here’s Why * Hexo: When the Bulls Aren’t Bullish Enough * Market Delays Can Derail Aurora Cannabis (ACB) Stock
The long-term prospects for Cronos Group (NASDAQ:CRON) stock look good. That is, if you ask CRON stock fans. There is almost no convincing them otherwise. Critics of Cronos Group stock and the whole industry can offer smartest arguments to prove that the cannabis stocks are headed for disaster, but it will all fall on deaf ears.Source: Shutterstock The bullish thesis for the industry is so vague and the scope is so widespread that it's almost impossible to kill it this year. It is a multi-headed beast where if the bears chop off one head, many others will stare them down with sharp teeth.Don't take my word for it, just consider the scoreboard. CRON is up 64% year-to-date -- leading the pot stock pack. The ETFMG Alternative Harvest ETF (NYSEARCA:MJ) is up only 30%. And I say this while I chuckle because that's still double the S&P 500 performance for the same period. So CRON is up four times more than the S&P.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Growth Stocks That Could Be the Next Big Thing This is similar to how it was for Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) in their infancy stages. This is also very similar to the current situation with Beyond Meat (NASDAQ:BYND) and even Uber (NYSE:UBER). The bullish thesis for these types of pioneer stocks is too vague to try too short this early.This is not the same as saying that I drank the Kool-Aid think pot stocks will be as successful as AMZN long term. I am merely saying that it's too early to short them. Trading CRON StockSo do I go all in on CRON? No, but still this all depends on individual time frames and risk appetites. One thing is for sure, pot stocks make for great short-term trading vehicles so CRON has opportunities on both the upside and downside. Those who believe in it long term, this is as good as any to buy at least half their position. It is futile to wait for a perfect sign to enter.Mid term, I favor the upside potential through the rest of the year for CRON stock because it established a solid band of support. Since January of 2018, $14 per share played an important role. It served as a major pivot point, so it is an area where bulls and bears are consistently eager to fight it out hard.This creates congestion so it becomes a sticky zone. And since CRON stock price is above it, the bulls can use it as solid footing. Meaning onus is on the bears to break that. Otherwise, every dip towards it is a buying opportunity. Sustaining the selling then becomes almost impossible.So this leaves us with evaluating the upside potential at hand. Earlier I mentioned that there are shorter- term time frames to trade. Above $18 per share, CRON will invite momentum buyers to launch a $4 rally from there. There will be resistance near $20. This sounds like a wild statement, but it is doable for such a momentum stock.I also noted that the $14 per share zone is a long term pivot, but so is $16. Specifically for this year, it served as a major point of contention. So I expect $16 to be the immediate support. For those who like to sell credit put spreads to generate income, that would be a good short-term level to consider.Conversely, there is risk below especially due to trade uncertainties. So we are vulnerable to geopolitical headlines to cause sporadic selloffs. If Cronos stock fills the gap below and falls below $13.5 per share, it could trigger a $2 overshoot. While this is not my forecast, it is a scenario that exist below. The Bottom Line on Pot StocksIt is also important to note that I am not a super fan of the whole cannabis sector. But I do recognize that it's a tough short.This is a brand new industry to Wall Street, and marijuana still illegal at the federal level in the U.S. So it has everything going against it. Yet pot stocks still have so much support from everyone from retail investors to mega corporations. Constellation Brands (NYSE:STZ) and Altria (NYSE:MO) were the first two to dip their toes in the water by throwing billions at Canopy Growth (NYSE:CGC) and CRON so we know that they are the best leading cannabis companies.This is just the beginning.Dozens more companies are waiting and trying to figure out how they can also grab a piece of this pie. We all know about the popularity of recreational pot. But there are the slew of other applications that are extremely interesting. Mainly medicinal, edibles, and portables. There is a strong consensus that people will be drinking pot-infused drinks instead of soda, beer or wine. * 7 High-Quality Cheap Stocks to Buy With $10 I am not here to judge whether this is a realistic goal; it's definitely not in the very near term, but it's not out of the realm of possibilities. So the theoretical addressable market is literally incalculable. So what are the bears shorting? Without any negative headlines Cronos stock is going higher.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Cronos Group Stock Is Just Getting Started appeared first on InvestorPlace.
Tilray, Inc. (TLRY), a global pioneer in cannabis production, research, cultivation and distribution, today announced the expansion of its global senior leadership team with the appointment of Kristina Adamski as Executive Vice President, Corporate Affairs. In her new role, Kristina will lead Tilray’s corporate affairs team, developing the team globally and overseeing the company’s public relations, corporate social responsibility and government affairs functions.
Massive growth is coming for the global cannabis market, according to Tilray's top execs. And they think Tilray is poised to be a big winner.
CALGARY , June 13, 2019 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (ISH.CN), a Canadian company establishing a national network of adult-use cannabis stores under its Spiritleaf brand, is pleased to announce that it completed the second tranche of its previously announced cross-investment with Tilray, Inc. ("Tilray") (TLRY) and its wholly owned subsidiary High Park Holdings Ltd. ("High Park"). Pursuant to the terms of the investment agreement entered into in December 2018 , as amended, Tilray Inc. and Inner Spirit have exchanged shares valued at $1.5 million . "High Park has been a great strategic partner and partnerships like this enable our Company to grow the Spiritleaf retail brand and create value for investors in Canada's adult-use cannabis market.
Under terms of the deal, Green Organic will supply more than 230,000 kilograms of cannabis and hemp biomass to Neptune, which will extract and purify cannabinoids and terpenes, to be transformed into organic finished products.
Tilray (TLRY) recently announced its biggest shareholder Privateer has signed a non-binding letter of intent to increase the length of its lockup period.Privateer, a company backed by billionaire venture capitalist Peter Thiel via his Founder's Fund, owns 75 million shares of Tilray, representing 77 percent of the 89.5 million in outstanding shares. It's also why overall institutional ownership only accounts for about 3.80 percent of the total. That will change significantly over the next year.The dealIn preparation for a merger between the two companies, Privateer has been divesting of other assets over the last year or so. During that time Privateer locked up its shares during negotiations.As for selling the shares, the company will offer shares via marketed offerings to institutional, or possibly individual wealthy investors. After that, it'll release shares in a staggered manner so the impact on the market is reduced. That of course was a move to somewhat limit the effect of dilution on existing shareholders.This is of particular importance to investors because the increase in the number of institutional investors should help reduce the huge swing in share price the company has experienced since it went public.What to watch forThe implications of these decisions is as already stated, to keep existing shareholders from being quickly diluted. But it also presents another problem, which is the consistent release of restricted shared to unrestricted status.Even though they won't be released at once, there is the problem that could accompany a major institutional or wealth investor wanting to buy up a lot of shares at once, which is almost certainly going to be agreed upon by the companies.This is probably why it's a non-binding agreement; the companies want the flexibility to do what's best under unfolding circumstances as opportunities present themselves.In the short term this could be a positive catalyst for those long on the company, as shorts have been positioning themselves in anticipation of millions of Tilray shares flooding the market. Now that it's unlikely to happen, they will probably scramble to cover their positions, driving the share price up.Interestingly, Tilray Chief Financial Officer Mark Castaneda says he doesn't think all 75 million of the shares held by Privateer will be sold.Castaneda pointed out that Privateer, by agreeing the measured selling off its shares, underscores a belief in the company. That may be true, but if it were to sell the majority of the shares at once, it would also be undermining its own return on investment by weakening the earnings potential for a significant period of time.It can be legitimately concluded by investors that by watching out for its own self interests, Privateer will keep dilution in check over the next couple of years.ConclusionIt is significant that Privateer isn't attempting to rapidly extract its profits from Tilray in the near term. It could point to the company believing in Tilray, but as mentioned earlier, it also points to its own self-interests. If it floods the market with too many shares in a short period of time, it could lose a lot of value.Investors need to understand the fact that shorts are already covering their positions. If Privateer had released all the shares for sale, the share price of Tilray would have quickly plummeted. And in those types of situations, it's difficult to know how long it would remain under pressure. Its share price could have languished for a long period of time. That's what this is really about.One other factor to take into consideration is while the release of the shares for sale is going on, Tilray is still a company trying to increase revenue, and ultimately earnings. If it's able meaningfully accomplish that over the period of time Privateer is selling the bulk of its shares, it could attract a lot of institutional interest which would drive up the share price of the company.How this plays out will be determined by the pace and media coverage of the sell-off in shares, as well as how rapidly it can boost revenue and earnings. This will be the tug-of-war over the next couple of years, and investors should watch closely which narrative is winning out at any particular time.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on TLRY: * From $300 to $45, Is Tilray (TLRY) Stock Finally a Buy Right Now? * Seaport Releases Updated Estimates for The Green Organic Dutchman * Tilray (TLRY) Is a Great Cannabis Company, But the Stock Is Overvalued * Tilray (TLRY) Stock Is a Mixed Bag Ahead of Earnings More recent articles from Smarter Analyst: * Should Investors Buy Facebook (FB) Stock After Its Cryptocurrency Launch? Top Analyst Weighs In * Avoid Canopy Growth Stock Like the Plague; Here’s Why * Hexo: When the Bulls Aren’t Bullish Enough * Market Delays Can Derail Aurora Cannabis (ACB) Stock
U.S. started off Tuesday with another surge, but have since backed off those gains a bit. Remember, exactly one week ago equities posted a stunning "Turnaround Tuesday" that led to a flurry of buying. Now we need to see if it will last. Let's look at a few must-see stock charts for Wednesday. Must-See Stock Charts 1: Sprint Click to EnlargeWorries on whether the Sprint (NYSE:S) merger with T-Mobile US (NASDAQ:TMUS) will go through are hurting both stocks on Tuesday.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares of Sprint were forming a bullish pennant (wedge) up near $7. However, if the stock loses $6.60, it increases the odds of a gap fill back down toward $6.20. Around this level it will also find the 50-day and 200-day moving averages. * 4 Technology Stocks Blasting Higher If S declines this far and finds support, it may prove to be an advantageous buying opportunity. For now though, it looks like $6.60 support is suspect.On the upside, see if S can reclaim its 20-day moving average and $7. Must-See Stock Charts 2: CVS Health Click to EnlargeSprint and T-Mobile aren't the only ones having trouble. CVS Health (NYSE:CVS) and Aetna are too, with a judge threatening to nix their deal.A day after we saw some massive tie-ups -- United Technologies (NYSE:UTX) and Raytheon (NYSE:RTN), as well as Salesforce (NYSE:CRM) and Tableau Software (NYSE:DATA) -- it's interesting to see M&A issues on Tuesday. (Here's how we're trading those names).In any regard, how do we trade CVS stock now?Prior support was present near $58. We're now seeing that level act as resistance while $52 has become support. If CVS can't maintain the 10-week moving average, $52 will likely be called upon again. In that scenario, it may be a low-risk buying opportunity.Over the 10-week moving average and CVS can test $58 range resistance, but keep in mind that downtrend resistance (blue line) could weigh on it. Must-See Stock Charts 3: Beyond Meat Click to EnlargeThis thing has been insane, with Beyond Meat (NASDAQ:BYND) racking up almost 700% gains from its IPO last month to this month's high. I haven't seen such craziness since Tilray (NASDAQ:TLRY) went public last year.Is the rally finished? I have no idea, but I find jumping in on the action more akin to gambling than trading and certainly when compared to investing.Shares are now back below channel resistance (blue line). While its 61.8% retracement could buoy the name near $125, a larger correction down toward $105 to $110 may be in store for BYND.This one is too volatile for me, but it's a fun one to observe. It's a great lesson in a simple concept: There are thousands of stocks out there. You don't have to trade them all. Must-See Stock Charts 4: BlackBerry Click to EnlargeBlackBerry (NYSE:BB) was putting in some nice gains on Tuesday, before giving half of them up and pulling back. Shares are being rejected by the 10-week moving average and the 20-day moving average.Just as a note, the above chart is a weekly one and will not display daily moving average figures, although I will mention them here.Bulls want to see this month's lows near $7.75 hold as support. Below that and a drop to $7 and possibly lower is on the table. Above the 10-week and a larger rally can occur.And while we see downtrend resistance up near $9.50, BB has a lot of resistance to clear first. At $8.91 and $9.07 is the 200-week and 50-week moving averages, respectively. Further, the stock has its one-year 61.8% retracement at $8.85, the 50-day moving average at $8.76 and the 200-day at $8.88.That's a lot of numbers, but on the chart it's displayed simply as a blue box. Unless BlackBerry can clear $9, I would rather sell into that area rather than bet on a breakout. The risk/reward (and odds) are better. Must-See Stock Charts 5: GrubHub Click to EnlargeNews of Amazon (NASDAQ:AMZN) ending its Amazon Restaurants segment gave GrubHub (NYSE:GRUB) a lift, up 8% on Tuesday.Shares now need to maintain $65+ to go higher. If it can't stay above this level, it means GrubHub will have fallen back below downtrend resistance, as well as the 20-day and 50-day moving averages. * 7 Dark Horse Stocks Winning the Race in 2019 I'm now looking for a move back to $73. Above that and $85 seems possible, unless GRUB hits its descending 200-day moving average first.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post 5 Must-See Stock Charts for Wednesday: S, BB, CVS, BYND appeared first on InvestorPlace.
The Canadian stocks trade at more than 10 times the companies’ 2020 sales, on average, while stocks of the U.S. firms go for about three times, Compass Point points out.