TLRY - Tilray, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
+1.08 (+3.53%)
At close: 4:00PM EDT
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Previous Close30.57
Bid31.44 x 1400
Ask31.70 x 1300
Day's Range30.73 - 31.85
52 Week Range25.15 - 300.00
Avg. Volume1,786,561
Market Cap3.09B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-1.23
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est54.20
Trade prices are not sourced from all markets
  • Cannabis Coverage by Cowen: Cresco, Curaleaf, Acreage
    Market Realist

    Cannabis Coverage by Cowen: Cresco, Curaleaf, Acreage

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

  • Benzinga

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

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

  • Aurora Cannabis Stock Share Price Might Still Move Up

    Aurora Cannabis Stock Share Price Might Still Move Up

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

  • InvestorPlace

    Here’s Why Aurora Cannabis Stock Stumbled

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

  • 4 Stocks to Ride on the CBD-Infused Beverage Trend

    4 Stocks to Ride on the CBD-Infused Beverage Trend

    CBD-infused drinks are gaining fast popularity among all age groups, thanks to its many health benefits.

  • Here’s Why You Can’t Trust CannTrust Stock

    Here’s Why You Can’t Trust CannTrust Stock

    If you've followed my work over the past year, you know that I'm a strong supporter of marijuana stocks. While the viability of individual names varies, overall, the lack of a defined upside excites me. In other words, the cannabis market could be the most transformative of our generation. Or it could crash and burn. For CannTrust Holdings (NYSE:CTST) and CannTrust stock, I'm referring to the latter.Source: Shutterstock In short, CTST stock could be the first of the major New York Stock Exchange-traded cannabis companies to implode. Granted, I'm not breaking new ground here. Since the beginning of July of this year, shares have cratered over 68%. It's a good thing that defaults to a logarithmic scale for their charts; otherwise, it'd be hard to fit that magnitude of a drop in nominal unit-based scale.Initially, the troubles for CannTrust stock began when Health Canada, the namesake country's federal health agency, discovered a shocking scandal: CannTrust was illegally growing cannabis. But it wasn't just the infraction against clearly defined rules and protocol that hemorrhaged CTST stock. Instead, it was the violation's deliberate nature.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCannTrust employees, with the knowledge of executive leadership, created illegal grow rooms hidden behind false walls. Clearly, management premeditated their actions. Thus, it was no surprise that the company fired former CEO Peter Aceto with cause. * 10 Battered Tech Stocks to Buy Now If that wasn't bad enough for CannTrust stock, we have another scandal: black market cannabis seeds allegedly got mixed into CannTrust's inventory.While it's not as dramatic of a headline as the hidden grow rooms, this latest controversy could spell big trouble for CTST stock. Thus, I wouldn't even gamble on the name. CannTrust Stock Has Zero CredibilitySince its inception, virtually all marijuana companies sought one attribute: credibility.During the early stages of the green market, companies attempted to convince investors, potential partners and financial institutions that their underlying business was realistically viable. Right now, these same firms are attempting to show that they can convert some of these storylines into actual results.However, it's been a trying time. Established leaders, such as Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY) and most recently Aurora Cannabis (NYSE:ACB) have attempted to do this conversion through their earnings results. So far, they've failed spectacularly.But with CTST stock, you have the worst of both worlds. Obviously, if CannTrust knowingly created illegal grow rooms, investors can't trust their financials. And if the story about black-market seeds is true, the company can't even manage its own products. Thus, CTST has neither financial nor fundamental credibility.And that really means only one thing: CannTrust stock is a goner.Believe me: although the black-market seeds sound like a granular and perhaps inconsequential violation, it's actually an earth-shattering one.That's because we have a vaping crisis on our hands. Recently, President Donald Trump declared his intentions to ban all flavored e-liquids used in vaporizers. Citing an epidemic in underage vaping, Trump didn't appear open to negotiations.Now, if you dig into this story deeper, you'll recognize that the Food and Drug Administration is leaning toward illegally acquired THC-laden cannabis as a prime suspect for the surge in lung illnesses.I mention this because of the power of public perception. Tacitly, the FDA appears to suggest that proper, retail vaping products are fine to use. But with CannTrust's latest scandal, it proves that you can't even trust established, legitimate organizations.It's truly an ugly situation for CannTrust stock. Wall Street Has Lost Patience with CTST StockAlthough the vaping crisis has taken center stage, my opinion is this: the controversy will boil over eventually, leading to some reasonable concessions on both sides. For instance, many e-liquid companies need to take responsibility and stop using marketing that allures children.Anti-smoking advocates succeeded in eliminating Joe Camel, the Camel cigarette's once-popular brand face. Understandably, the cartoonish character attracted children, which of course is a big no-no. Anti-vaping advocates can do the same for donut-flavored e-liquids, for instance.But when it comes to CannTrust, I think the bad taste they created is simply too much. Seemingly everything about this company is a lie. Worse yet, their actions impugn the (hopefully) reputable behaviors of their peers. Since marijuana stocks tend to rise and fall in sympathy with each other, CannTrust stock will victimize many names.When the markets settle down, they'll give a second chance to the established leaders in this space. But for CTST stock, I think Wall Street has lost its patience. One massive scandal is already enough. But having two in a highly controversial market? Why bother with CannTrust when literally every other cannabis-based opportunity is better?As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Herea€™s Why You Cana€™t Trust CannTrust Stock appeared first on InvestorPlace.

  • Aurora Cannabis CCO on missing company's own revenue estimates: We're 'a little red-faced'
    Yahoo Finance

    Aurora Cannabis CCO on missing company's own revenue estimates: We're 'a little red-faced'

    Aurora Cannabis missed its own revenue estimates for the fourth quarter, but Chief Corporate Officer Cam Battley explains why it wasn't all bad news.

  • Weak Earnings Might Cause Aurora Cannabis Stock to Keep Falling

    Weak Earnings Might Cause Aurora Cannabis Stock to Keep Falling

    Aurora Cannabis (NYSE:ACB) stock dropped in after-hours trading on a weak earnings report. Shares fell from $6.49 at the close Sept. 11 to below the $6 level. With results failing to meet consensus, investor sentiment for ACB stock could become more negative. But is this recent stumble an opportunity to load up on Aurora Cannabis stock?Source: Jarretera / Shares continue to trade at a high valuation. But the long-term strategy for Aurora may still be in motion. Let's take a closer look and see if there's short-term upside for the ACB stock price. ACB Stock Earnings Fall Shy of ConsensusOn Sept. 11, Aurora released earnings for their fourth quarter which ended June 30. Net cannabis revenue grew 61% from the prior year's quarter, to $94.6 million CAD. The company's cash cost to produce per gram fell 20% to $1.14 CAD per gram. Gross margins grew to 58% from 55% in the prior year's quarter. Thanks to increased margins, the company's adjusted EBITDA losses shrunk from $36.6 million CAD in Q3 2019 to a $11.7 million CAD loss in Q4 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor fiscal year 2019, sales were $247.9 million CAD. This is an 349% increase from the prior fiscal year. But despite this growth, Aurora fell short of consensus. Earlier in 2019, ACB anticipated positive adjusted EBITDA by the end of FY19. But the company revised this guidance in August. After yesterday's earnings, the company is no longer referencing "positive adjusted EBITDA." Instead, Aurora "expects adjusted EBITDA to improve." * 10 Battered Tech Stocks to Buy Now The analyst community also pared down their estimates after the August walk-back. According to FactSet (NYSE:FDS), prior to August, analysts estimated Q4 revenue of roughly $112 million CAD. This was cut to a range of $100 million CAD-$107 million CAD. With actual Q4 performance falling short of this revised consensus, there are new challenges to the growth story with ACB stock.Other cannabis stocks have posted weak results in the past few months. Weak numbers at Canopy Growth (NYSE:CGC) pushed shares down 25% since mid-August. Tilray (NASDAQ:TLRY) shares have fallen from $41.16 per share to near $30 per share since its August earnings release. Reality is bringing pot stock valuations back to earth. Does this mean it's time to buy on the dip? Let's take a look at the valuation of ACB stock relative to peers. Aurora Cannabis Stock Trades at a Premium to PeersACB stock trades at a premium to most of its peers. Aurora Cannabis stock trades at an enterprise value/sales ratio of 53. Compare this to Canopy Growth, which trades at an EV/Sales ratio of 40.5. Tilray trades at an EV/Sales of 36.2. Aphria (NYSE:APHA) trades at a low EV/Sales ratio of 9.7. The only major pot stock trading at a higher valuation is Cronos (NASDAQ:CRON). Cronos trades at a staggering EV/Sales ratio of 106.4.But does this make ACB stock overvalued? The cannabis sector in general continues to be richly priced. Despite stumbles, investors anticipate a bright future for the marijuana industry. But with top-line performance falling short of expectations, can investors expect a short-term rebound? The Canadian marijuana market continues to be over saturated. A fully open U.S. market continues to be out of reach. Congress has made little progress on federal marijuana legislation.A saving grace for Aurora Cannabis stock is the company's global diversification. As I have mentioned previously, Aurora's focus on European markets has been a strength. Aurora has also focused more on the stable medical segment. But other risks counter the bullish case. The company's heavy use of convertible debt could cause problems down the road. Additional issuance of shares could drive the ACB stock price down further. Stay on the Sidelines With AuroraIt's tough to stomach the current ACB stock price. While the company has many strengths, the path to profitability remains unclear. There needs to be a shakeout in the Canadian cannabis market before it can become profitable. Solid movement on the U.S. federal legalization front needs to happen. One of the major marijuana stocks needs to hit profitability. Even if said "profitability" is adjusted positive EBITDA.I believe marijuana stocks will fall further. Aurora Cannabis stock is no exception. The company's shares could rebound on a crumb of good news. But in the short term, all bets are off with regards to the ACB stock price. To play it safe, stay on the sidelines with Aurora. Wait for a more opportune moment. If valuations turn irrationally low, make your move. But otherwise do not enter a position.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Weak Earnings Might Cause Aurora Cannabis Stock to Keep Falling appeared first on InvestorPlace.

  • Aurora Cannabis: Are Its Q4 Results Good or Bad News?
    Market Realist

    Aurora Cannabis: Are Its Q4 Results Good or Bad News?

    Aurora Cannabis reported its fourth-quarter results on Wednesday after the market closed. Did the company impress investors?

  • Cannabis Roundup: ACB’s Earnings, CRON, and TLRY
    Market Realist

    Cannabis Roundup: ACB’s Earnings, CRON, and TLRY

    Cannabis ETFs the ETFMG Alternative Harvest ETF and the Horizons Marijuana Life Sciences Index ETF were up 0.7% and 0.4%, respectively, at 2:15 PM today.

  • Time to Write Off Canopy Growth Stock in the Short Term

    Time to Write Off Canopy Growth Stock in the Short Term

    It goes without saying that Canopy Growth (NYSE:CGC) has endured a rough summer. Market leadership could not compensate for falling multiples, earnings and revenue misses, and a CEO firing. Canopy Growth has bounced back from near-term lows. Still, it remains too early to tell whether that bounce represents a pause in the decline or a genuine turnaround. Until investors can get a clear direction on CGC stock, I recommend staying away for now.Source: Jarretera / Investors Should Prepare for a FallCanopy Growth, and the marijuana industry overall, wants to put this summer behind them. Since the end of April, CGC stock has lost nearly half of its value. Differences with investor Constellation Brands (NYSE:STZ) cost CEO Bruce Linton his job. Moreover, a massive revenue and earnings miss for the second quarter only added to the pain.Unfortunately, the fall could bring a further fall. The price of dried cannabis has failed to gain traction as inventories rise. Further, the cash position of CGC continues to fall as it fell by 36% over the previous two quarters.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Healthcare Stocks to Buy Despite the Headlines Furthermore, despite the decline, CGC remains expensive. It currently trades at about 37.2 times sales. In the recent past, such a multiple did not phase investors. However, we have dealt with a market where peers such as Aurora Cannabis (NYSE:ACB), Tilray (NASDAQ:TLRY), and Cronos Group (NASDAQ:CRON) have also seen their stocks drop.Moreover, the profit picture looks increasingly bleak. For the next fiscal year, analysts had predicted a profit of 31 Canadian cents (24 cents) per share 90 days ago. Now, that estimate has become a loss of 75 Canadian cents per share. That will place further pressure on its cash and could lead to more debt or more stock issuance in a climate of falling prices. Don't Bet on Quick LegalizationSo what would revive Canopy Growth stock? InvestorPlace contributor Will Ashworth argued that Trump legalizing weed across the country would boost both his re-election chances and CGC.I happen to agree in principle. I also like that CGC positioned itself to jump into the U.S. with the Acreage Holdings (OTCMKTS:ACRGF) purchase once weed becomes legalized. However, we have to operate in the environment we have, not the one we want. Hence, I do not recommend investing based on that piece unless the political winds change direction. While sudden legalization, especially in the U.S., would help Canopy Growth, investors should instead assume legal status comes to the developed world at a slower pace. How Should I Trade CGC?In my view, investors should exit their positions in CGC for now. In the near term, the industry probably faces multiple compression. Investors should not expect the market to grant Canopy Growth stock any type of immunity. Even though fall will arrive soon, investors need to prepare for winter and probably a more permanent climate of lower valuations.Still, once the market stops selling off CGC, I see the equity as a lucrative long-term investment. First, I believe this industry downturn will ultimately benefit CGC stock. Countries across the world continue to march toward legalization.Canada's strict regulatory structure on the marijuana industry has generally not done its companies any favors. However, they helped hugely by seeing the trend toward legalization early and moving first to embrace it. Now, Canopy Growth can use its dominant position in Canada to achieve early mover status in places such as Europe. This process will only speed up should the U.S. move toward legal status more quickly than anticipated.Moreover, the downturn will lead to an industry shakeout. In this downturn, the more financially-troubled firms will have to sell out to larger firms such as Canopy Growth, in many cases on the cheap. Others will simply close their doors. Either way, over the next few years, CGC will face much fewer competitors at home. * 10 Stocks to Sell in Market-Cursed September Canopy Growth stock has become dead money in the near term. However, once it endures a harsh winter, I think it will spring forward to massive long-term gains.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 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Time to Write Off Canopy Growth Stock in the Short Term appeared first on InvestorPlace.

  • Tilray: Are Analysts Optimistic about Its Stock?
    Market Realist

    Tilray: Are Analysts Optimistic about Its Stock?

    After Tilray's second-quarter earnings, Benchmark reduced its target price to $80 from $120. Cowen and Company reduced the target price to $60 from $150.

  • Stay Far Away From CRON Stock Until Its Valuation Comes Down

    Stay Far Away From CRON Stock Until Its Valuation Comes Down

    Cronos Group (NASDAQ:CRON) stock remains overvalued. Despite cannabis sector's summer selloff, CRON stock still trades at a premium to peers. But with recent acquisitions, the company's future prospect may start to meet expectations. Last month's acquisition of several U.S.-based CBD businesses could help bolster the company's growth strategy.Source: Shutterstock But what makes CRON stock a better pick than the rest? Peers such as Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC) are not without their flaws. But both sell at more reasonable valuations.Is there opportunity with Altria Group (NYSE:MO) backed Cronos? Or should investors seek cannabis plays elsewhere? Let's take a closer look at Cronos Group stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What's The Latest at CRON?In August, Cronos Group purchased 4 U.S.-based CBD businesses from Redwood Holding Group. The most notable asset purchased in this deal was the Lord Jones brand of CBD-infused skincare products. In the U.S., marijuana has yet to be legalized on the federal level. But CBD is fully legal. Gaining a toehold in the American market via CBD is just the first step. * Take Buffett's Advice: 5 Vanguard Funds to Buy But Capitol Hill is moving slow on legalization. Without access to banking services, "Big Pot" in the United States remains a pipe dream (for now). This didn't stop Altria Group from making a big bet on Cronos. Altria (parent of Phillip Morris USA and a major investor in vaping giant Juul) made a $1.8 billion investment. This gave the tobacco giant a big seat at the table.The relationship with Altria helps Cronos with their vaping product strategy. But the health effects of vaping have dominated the headlines. However, as InvestorPlace contributor Josh Enomoto wrote on September 10, the "vaping crisis" could cool down over time. But with these challenges, its tough to see a clear path to profitability. With the stock trading at such a high enterprise value/sales ratio, Cronos needs to hit it out of the park to "grow into its valuation". Cronos Remains Extremely OvervaluedCRON stock continues to trade at a premium. The company's enterprise value/sales (EV/Sales) ratio is a staggering 109.9. For comparison, Aurora Cannabis trades at an EV/sales ratio of 51.6. Canopy Growth shares change hands at a EV/sales ratio of 40.1. Tilray (NASDAQ:TLRY) has an EV/sales ratio of 32.9. Aphria (NYSE:APHA) sells at a relatively reasonable EV/sales ratio of 9.8.Is Crono's premium valuation all thanks to Altria? Having America's biggest tobacco company on your side is a plus. But it is no guarantee of U.S. market domination. The deal was highly dilutive for Cronos shareholders. Altria received a slug of warrants along with their investment. These warrants have a strike price of $19/share. This is well above Crono's current price of $11.73/share. But the high amount of warrants outstanding minimizes upside.But this deal gave Cronos plenty of capital. As of June 30, 2019, CRON had CAD $1.6 billion in cash, and CAD $745 million in short-term investments. Even after the recent asset purchases, the company has plenty of money to fuel growth. Additional capital raises are unlikely. The company is operating at a loss. But it is not hemorrhaging money as quickly as its peers. This means downside is limited. But with upside challenges, it is tough to see the value in CRON stock. Look Elsewhere For a Pot PlayI am still waiting for pot stocks to reach lower valuations. But you may be more keen on placing a bet on the cannabis sector. If you are looking for a pot play, look at any other stock but Cronos. The company continues to trade at a mind-boggling valuation. It has a logical strategic partner (a tobacco company). But it remains unclear how this will translate into a market edge.I have been bearish on both Aurora Cannabis and Canopy Growth. But at least both of these companies offer a clearer path to success. Among the other major marijuana stocks, companies like Aphria stand out for their reasonable valuation. * 10 Stocks to Sell in Market-Cursed September It may pay to take your time with marijuana stocks. Valuations could reach more reasonable valuations down the road. But if you are looking for a pot play today, look at anything else but Cronos Group stock.As of this writing, Thomas Niel 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 in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Stay Far Away From CRON Stock Until Its Valuation Comes Down appeared first on InvestorPlace.

  • Aurora Cannabis Stock Still Eyeing $8

    Aurora Cannabis Stock Still Eyeing $8

    A few weeks ago I shared an opinion on Aurora Cannabis (NYSE:ACB) stock when it had upside potential. The celebration was short since after a just a brief pop, the whole cannabis sector fell apart in heavy selling. ACB, Canopy Growth (NYSE:CGC), Cronos (NYSE:CRON), and ETFMG Alternative Harvest ETF (NYSEARCA:MJ) stocks all fell 10% to 20% in a matter of hours.Needless to say, consequently, the ACB stock bulls left a $3 potential spike on the table. The good news is that they have since found footing and now again there is another upside opportunity in the making.The pot stocks are still in the process of recovering the losses. Aurora Cannabis stock looks relatively strong among them in this effort. Even with its recent misfortunes, Aurora Cannabis stock is still up 21% year-to-date. So a few bad days on a chart don't necessarily kill the whole story of a stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September In my last Aurora Cannabis stock write-up, I also noted that equities in general were headed into geopolitical headline hell, so it was a risky trade at the time. The idea was that ACB had support below $6 per share so that the bulls had a solid base from which to spring.The good news is that this latest test proved that support held. In spite of resistance above, there should be another attempt at a rally in ACB stock even from here. Aurora Cannabis Stock Still Eyeing $8For almost four months, Aurora Cannabis stock has slid inside a descending channel of lower highs and lower lows. This last dip from mid-August may have forced the issue because it formed a short-term bottom.If so, then all the ACB bulls need to do is maintain a series of higher highs to close above $6.4 per share. Then they would retake the reins and have the opportunity to finally breakout from the descending trend. The result would be the opportunity to target $8 per share or higher. Aurora Cannabis is a momentum stock so it runs fast enough that they could plow through resistance.I caution against heavy conviction in this trade. The fundamentals for ACB and the entire sector are horrendous. ACB stock sells at 140 times sales so it is very bloated from the traditional sense. Unless the investor knows otherwise, I treat this like a trade and not an investment and set tight stops.The important levels below are between $5.9 and $5.6 per share. Below that and ACB could easily lose another dollar, so traders need to be nimble on bad days. Because just like there is upside potential to $8, there is downside risk to $5 or lower.The mid-term technical oscillators and price-to-moving-averages relationships support the theory that there is an upswing in momentum brewing: One that could fuel this rally in Aurora Cannabis stock. Experts in the field remain unanimous in their optimism.But again I caution about the nature of the opportunity. This is a speculative stock. Unless the timeline is long for the bet, traders need to be spry and aware of the levels. Bottom Line on ACB StockThese are risky stocks. This is nothing against ACB, but this industry didn't even exist just mere months ago. Furthermore, it is still illegal in the United States. Yes, there are states that have legalized marijuana but the federal government still has not followed suit.The enthusiasm on Wall Street for these stocks stems from the wide application for cannabis. Recreational use is already popular but investors' interests extend far beyond that. Companies from all industries are interested in cannabis including the medical, cosmetics, dermatology, beverage, food, and many more industries. It's only a matter of time before it finds its way to retail store shelves.Long term, the game changer source of optimism will probably be a favorable change in U.S. federal law. Imagine what ACB stock and its brethren would do if the U.S. follows Canada and legalizes cannabis nationwide.Nicolas Chahine is the managing director of As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Aurora Cannabis Stock Still Eyeing $8 appeared first on InvestorPlace.

  • Benzinga

    14 Top Cannabis Stocks Targeted By Short Sellers

    After a weak couple of months, cannabis stocks rallied in the first week of September . That rally seems to have stalled so far in the second week of the month. S3 Partners analyst Ihor Dusaniwsy said ...

  • Benzinga

    Tilray To Sell Up To $400M In Shares Via Cowen

    Cannabis company Tilray Inc. (NASDAQ: TLRY) announced Tuesday via an 8-K filing that it has signed a sales agreement with Cowen and Company, LLC, upon which the company can issue and sell shares via Cowen with a total offering price of up to $400 million. The company said the agreement doesn’t carry an obligation for Tilray to sell any shares, and that any sales will be an “at-the-market offering.” The sale of the shares will be effected under a Form S-3 registration statement. Once Tilray provides Cowen with a placement notice, Cowen will act as a sales agent for Tilray.

  • Avoid Aurora Cannabis Stock, Both Before and After Earnings

    Avoid Aurora Cannabis Stock, Both Before and After Earnings

    Aurora Cannabis (NYSE:ACB) stock will report its earnings on Thursday before the opening bell. Investors will closely watch Aurora Cannabis stock for guidance amid its decline and that of its peers.Source: Shutterstock Yes, some of the stock decreases came when peers such as Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY) issued their reports. Still, ACB stock faces its own test. Although Aurora should continue to lead the world in marijuana production, size alone will not make ACB a buy going into earnings. Q2 Expectations and ACB StockFor the second quarter, analysts expect a loss of five Canadian cents (3.8 cents) per share. The company reported losses of 15 Canadian cents per share in the same quarter last year. However, investors should note that Aurora has missed estimates in three of the previous four quarterly reports.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September They also predicted revenues of C$258.95 million ($196.71 million). If this holds, it will represent a 369.1% increase in revenues year-over-year. ACB brought in revenues of C$55.2 million in the second quarter of 2018.Despite the massive increase in revenue, the only likely source of profit for Aurora Cannabis will come from stock trading. The company recently sold its 10.5% stake in The Green Organic Dutchman Holdings (OTCMKTS:TGODF).This nets the company $86.5 million. As our own James Brumley states, the deal could buy C$86.5 million ($65.71 million) worth of time to generate profits. It could also help with debt relief as the company has to pay back C$230 million worth of debt on March 9, 2020. Outstanding Shares and Aurora Cannabis StockAnother key component that should garner investor interest involves the shares outstanding on Aurora Cannabis stock. In previous articles, I have remained bearish on ACB stock for the massive amount of dilution. About 129 million shares existed in 2016. Today that figure now exceeds one billion.In a sense, I do not blame the company for diluting the stock. The market's toleration for high multiples seems to have fallen. Despite an ACB stock price of around $6 per share, the equity still trades at about 43.7 times sales.While Aurora continues to lose money, it makes sense from a company perspective to issue more shares. However, with that level of dilution, it leaves investors with no good reason to pay nearly 44 times sales for the stock. Other dangers for Aurora Cannabis StockThis situation could also lead to something unthinkable for a world leader in marijuana production--a reverse stock split. The average price-to-sales (PS) ratio for the S&P 500 stands at 1.53. Even if ACB stock fell to a PS ratio of 4.37 under current revenue figures, that would take ACB to about 60 cents per share.A reverse split means little in a financial sense, and I believe revenue growth will reduce the PS ratio over time. Still, it would represent a huge psychological blow if it needed to make such a move to escape penny stock status.James Brumley makes another critical point. Companies such as sit on billions in goodwill from various acquisitions. Aurora itself paid C$3.2 billion ($2.43 billion) to purchase MedReLeaf. A forced write-down of this purchase and comparable takeovers by peers could hurt stocks across the industry. This could have also played a role in Aurora's sale of TGODF stock. Final thoughts on ACB stockUnder current conditions, the company earnings report will likely leave investors with little reason to own Aurora Cannabis stock. Aurora Cannabis remains a world leader in the production of marijuana. Even if the company falls short of earnings estimates again, I see little that should threaten this leadership change.However, investors need to separate Aurora Cannabis from Aurora Cannabis stock. Given the elevated multiple, Aurora has supported itself and funded acquisitions in large measure from massive stock dilution. Despite the proceeds from selling its stake in the Green Organic Dutchman, the company still needs cash to fund operations and pay debts. As long as this practice continues, I see little reason to own ACB stock.As I have stated before, profiting from Aurora Cannabis stock long term will only happen when the company transforms itself. When it becomes profitable and pays dividends like Altria (NYSE:MO), investors can more reliably earn positive returns from the Aurora story.Unfortunately, today's Aurora Cannabis could easily face write-downs and possible a reverse stock split. With continuing losses, stock dilution, and earnings misses, investors have little incentive to pay almost 44 times sales for such an equity, before or after the earnings release.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 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Avoid Aurora Cannabis Stock, Both Before and After Earnings appeared first on InvestorPlace.

  • Cannabis Short Sellers' YTD Losses Have Reduced 60% Since July

    Cannabis Short Sellers' YTD Losses Have Reduced 60% Since July

    Investors betting against cannabis companies have much to celebrate as stocks in the sector sputter and swoon.

  • Keep an Eye on Canopy Growth Stock, but Don’t Buy It Just Yet

    Keep an Eye on Canopy Growth Stock, but Don’t Buy It Just Yet

    Canopy Growth (NYSE:CGC) has been on a roller coaster so far in 2019. Like much of the rest of the market, Canopy Growth stock came into the year depressed and under pressure.Source: Jarretera / However, it didn't take long for shares to go from sub-$30 to $50+ though. That price action took place in the month of January, but bulls have lost that steam.Luckily for InvestorPlace readers, many have been bearish since $38.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAfter plunging all the way down to $22.76, shares are on the rebound. The hard part is determining whether this is a dead cat bounce (i.e. a temporary reprieve before more downside ensues) or a true reversal off the lows. With the recent rally, shares are no longer down more than 50% from the highs, although Canopy Growth stock still sports big losses.Let's take a closer look at the stock to determine what the best course of action is. Trading CGC Stock Click to EnlargeLast week, CGC was a Top Stock Trade on InvestorPlace and I also flagged the name on Twitter. Even though shares are taking a breather, it's important to see that they're holding up above the 20-day moving average. * 10 Stocks to Sell in Market-Cursed September While it would be discouraging to see CGC lose this mark, As long as it stays above $26.25, it looks technically okay for bulls. However, the big question is whether shares can hurdle $30.At $30, CGC stock would approach a significant level on the chart, as well as downtrend resistance (blue line). Above here and Canopy Growth stock can start working on filling the gap up to $32. There's also the 50-day moving average up near $32, although it's declining on a daily basis as well.Over $32 and CGC bulls can start thinking about a return to the 61.8% retracement, which is currently north of $36. But let's not get too ahead of ourselves. We first need to see CGC hold up over $26.25 and push through $30. After that, we can start looking at further upside targets.Below $26.25 and the recent lows near $23 are back on the table. Balance SheetCGC still has a strong balance sheet, but with negative free cash flow and M&A, it's weakening over time.Cash and short-term investments of $2.42 billion are down more than 32% from the quarter ending in December 2018. Current assets are down ~$916 million (-23.7%) to $2.95 billion in the same period, although total assets are up 4.2%.That also comes with 31.3% spike in current liabilities to $284.6 million. Total liabilities have gone from $891 million six months ago to $2.1 billion, up roughly 135%.So while total assets still outweigh total liabilities by nearly three-to-one and there are no concerns about CGC meeting its short-term obligations, the balance sheet is weakening vs. six months ago. Sizing up Canopy Growth StockMany considered Canopy Growth stock (and many others still do) the blue chip cannabis stock to be long.It had the strongest balance sheet, early-mover advantage in both the U.S. and Canada, and strong backers via the $4 billion investment from Constellation Brands (NYSE:STZ).But it's not just CGC stock that's been under pressure. We've seen weakness in Aphria (NYSE:APHA), Tilray (NASDAQ:TLRY), Cronos Group (NASDAQ:CRON), Aurora Cannabis (NYSE:ACB) and most others.Many of the bullish catalysts for CGC and the cannabis industry as a whole are still in place. Both the U.S. and many parts of the globe are working toward legalization. Many companies and startups are focused on cannabis-related treatments and recreational uses.While Canopy reported 250% year-over-year revenue growth for Q1 last month, the results missed expectations. Earnings per share badly missed estimates, although the miss can be explained away by some financial engineering related to expiring warrants. Still, it would have been nice to be provided an adjusted number in the release.Further, it doesn't help that Constellation Brands and Canopy's management had a "strategy clash" in July, which results in Canopy CEO Bruce Linton leaving the company. That adds some uncertainty to the picture.Where does that leave us? The valuation is rich for CGC and most other cannabis plays and that's putting it lightly. That's no secret, but when the news flow is negative and momentum is bearish, the valuation will hurt the share price. We need to see the charts start to cooperate for Canopy Growth to look good on the long side.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Keep an Eye on Canopy Growth Stock, but Don't Buy It Just Yet appeared first on InvestorPlace.

  • CNW Group

    Tilray Joins Phase 2 of the Shoppers Drug Mart and TruTrace Technologies Pilot Program for Validation of Medical Cannabis

    TORONTO , Sept. 11, 2019 /CNW/ - TruTrace Technologies Inc. (CSE:TTT) (OTCQB:TTTSF) ("TruTrace" or the "Company"), creator of the first fully-integrated blockchain platform that registers and tracks intellectual property for the cannabis industry, is pleased to announce that Tilray Canada Ltd. ("Tilray Canada"), a subsidiary of Tilray, Inc. (TLRY), a global pioneer in cannabis research, cultivation, production and distribution, has joined the Shoppers Drug Mart ("Shoppers") medical cannabis verification pilot program (the "Pilot Program").

  • New Cannabis Research Will Be Bittersweet for Tilray Stock

    New Cannabis Research Will Be Bittersweet for Tilray Stock

    Tilray (NASDAQ:TLRY) shareholders have had a harsh buzz over the past year. Last year, investors had high hopes for this cannabis grower. It was the first company in this industry to go public and list on the Nasdaq exchange. Within months of hitting the market at $17, Tilray stock was trading above $200.Source: Jarretera / Since then, the stock has trended lower to current levels around $31.Despite the lack of media coverage, a recent news event will undoubtedly have an effect on Tilray stock. The U.S. Drug Enforcement Administration announced that it will begin processing applications for scientific and medical research on cannabis.InvestorPlace - Stock Market News, Stock Advice & Trading Tips DEA's Decision and TLRYAs of right now, there is only one institution in the United States that can legally produce marijuana for research purposes -- the University of Mississippi. This federal contract was awarded over 50 years ago.This news is important because it shows that the DEA is accepting the fact cannabis can be a legitimate medicine. For a medicine to be considered "legitimate," it must be backed by extensive research. The DEA is taking steps here to improve access to marijuana research. I believe this is a large step on the path to becoming legal on a federal level. * 10 Stocks to Sell in Market-Cursed September One of the things that has held back the growth of the medical cannabis industry is the process that it takes to become a legal medicine. The U.S. Food and Drug Administration has extensive rules and regulations governing this process. It can be extremely expensive and literally take years to complete. This move at the very least opens the door for more thorough and high-quality research.How will this affect Tilray stock ? Obviously it its too soon to tell, but I believe that it may be both bad and good for the company.The bad side is the company will see increased competition. Tilray was one of the early players in the industry and because of this, it has some strategic advantages with regards to patents and research capabilities. Now that the ability to perform research will become more widespread, it will inevitably increase competition.The good side for Tilray and other companies in the cannabis industry is that this action will eventually lead to significant growth in the medical marijuana market. What's Next for Tilray Stock?TLRY stock has been consolidating over the past week. If it heads lower, there may be some short-term support around the $25 level. This is where the recent lows were last week. And because it is a nice round number, it is also important psychologically. If this level breaks there will probably be some meaningful support around the $22 level. This is because it near where the stock hit the market when it went public last year.If the stock rallies, look for resistance around the $35 level. There could be resistance here because it was the support level and the low in June. Support levels become resistance levels the stock moves lower, causing those who purchased it at the support level to lose money. These investors tell themselves that if the stock rallies, they will sell it at $35 so they can get out and break even.As of this writing, Mark Putrino did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post New Cannabis Research Will Be Bittersweet for Tilray Stock appeared first on InvestorPlace.


    [video]Tilray Files to Sell Another $400 Million in Stock

    The Canadian cannabis producer and distributor plans to issue up to $400 million in additional stock as it continues its expansion plans amid ongoing legalization of pot-infused products in North America and internationally.

  • Cannabis Roundup: ACB, TLRY, CRON, and OGI
    Market Realist

    Cannabis Roundup: ACB, TLRY, CRON, and OGI

    The S&P; 500 Index and the DJIA fell 0.3% and 0.1%, respectively, today. However, the cannabis ETFs and the majority of the cannabis stocks were trading in the green.

  • CRON Stock Will Require a Lot of Patience

    CRON Stock Will Require a Lot of Patience

    Cronos Group (NASDAQ:CRON) is taking a different path than the rest of the cannabis industry. Long-term, that looks like a good thing for Cronos Group stock. It's the short-term trading in CRON stock that looks like a potential problem.Source: Shutterstock To be sure, CRON stock already has lost more than half its value just since early March. And the stock did put in a bit of a bottom starting in late August, though a decline on Monday suggests the selling pressure might not yet be over.That said, the problem for Cronos Group stock seems the same as I argued back in July: it's the cannabis play for investors who worry that cannabis plays still look overvalued.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in Market-Cursed September That doesn't mean the long-term strategy will fail, of course. As one of those investors who long has questioned valuations in the sector, I see the Cronos stock strategy as particularly wise. But Q2 earnings last month further highlight the near-term issue: even if Cronos Group is right, CRON stock still lacks an immediate catalyst. The Long-Term Strategy for Cronos Group StockOne of the core principles of Cronos' strategy is that producing cannabis is likely to be a narrowly profitable or even unprofitable endeavor. It's copying the strategy of Altria Group (NYSE:MO), looking to build a network of contract producers instead of building out capacity itself.Using that third-party supply, Cronos then plans to enter differentiated, value-added, and higher-margin markets. Its Cronos Device Labs focuses on designing new and improved vaporizer products. A research and development partnership looks to create new cultured cannabinoids. It's looking to edibles and topicals as well.As CEO Mike Gorenstein phrased it early in his prepared remarks on the Q2 conference call, "We have often discussed our view that in the mature market, capacity is a means to an end, not the key driver of value."That view makes sense. Prices in several regulated U.S. markets have crashed. Recent earnings from Tilray (NASDAQ:TLRY) showed a big, and worrisome, drop in average price per gram. Cannabis bears long have argued that production will be a capital-intensive and low-margin endeavor. In other words, not a great business -- even if demand for legalized cannabis soars over the long haul. The Near-Term Problem for CRON StockOne issue for CRON stock is that the strategy goes against sector bulls. Investors who see a cannabis boom on the way are going to choose the likes of Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). Both companies have used acquisitions to build out production and worldwide reach.But a new issue seems to have popped up after last month's Q2 report. On the Q2 call, Cronos forecast that its Adjusted EBITDA loss would increase in the second half. Investments in branding and R&D are the key culprits.That's likely not what investors want to hear at the moment. Across the sector, worries about the bottom line seem to be offsetting any good news on the top line.Cronos handily beat revenue estimates in its Q2 report -- yet Cronos stock, after a brief pop, continued its downward trend. Cowen, a long-time CRON bull, lowered its price target to C$17 after earnings, citing worries about Cronos' "path to profitability."If investors are going to choose a cannabis stock on profitability, CRON probably isn't it, at least through the second half of this year. Those 'value' seekers might look to Aphria (NYSE:APHA), who is guiding for positive Adjusted EBITDA.If investors want revenue, CRON similarly isn't the choice. Its revenue and production numbers will look lower than peers. CEO Gorenstein himself admitted as such on the Q2 call. "Now, we understand that many investors are modeling cannabis companies off of their production capacity," he told listeners. "However, our business model is not to be the farmer."In the short term, there's yet another issue. The company's focus on edibles and vaporizers means key revenue isn't coming until 2020, as regulatory body Health Canada has been slow to approve cannabis derivatives. As such, in terms of both revenue and profits, Cronos looks like a 2020 story at best. How to Play CRON StockFor the next six months at least, whatever the fundamental metric, CRON stock is going to look less attractive than its peers. Neither its production nor its revenue is going to be as high as that of companies building out capacity. Its earnings, at least in Q3 and Q4, are going to stay negative. Revenue contributions from derivatives won't come until next year.And, at least for the moment, cannabis investors seem to be more focused on the fundamentals. That's truthfully an odd focus to have. Regulated cannabis is a nascent market. Legalization of recreational marijuana will take years, if not decades, to play out worldwide.It's a doubly odd focus for investors to have when it comes to Cronos. The company has roughly US$1.5 billion in cash after its recent acquisition of U.S. CBD player Redwood. There's almost no risk of bankruptcy unless Cronos decides to splurge big on an acquisition -- something that seems highly unlikely given its strategy.More broadly, this is a stock and a market that require patience. Investors right now don't seem to have that patience. That likely goes double for CRON stock, whose markets will take longer to develop than those of peers moving to build out significant capacity.Until that changes, Cronos Group stock, and the sector as a whole, are unlikely to rebound. After Q4 earnings in particular, it looks like a rebound in CRON is a ways off.What can an investor do? Selling puts is a strategy only for investors who truly understand options trading, which can be risky. But premiums on CRON stock are reasonably high, leaving an investor with either attractive returns or the ability to own CRON below $10.That aside, patience is likely wise here. The sector is struggling. Cronos is going to post losses in the next two quarters at least. The wisdom -- or folly -- of its strategy will take years to be proven. Until then, sideways trading might be the best investors can hope for. Of course, that sideways trading could be an opportunity, if treated correctly.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 in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post CRON Stock Will Require a Lot of Patience appeared first on InvestorPlace.

  • Bet on the Jockey? What You'll Want to Know About the Top Canadian Pot Stock CEOs
    Motley Fool

    Bet on the Jockey? What You'll Want to Know About the Top Canadian Pot Stock CEOs

    The CEOs of the five biggest Canadian cannabis producers -- and which one looks like the best of the bunch.