|Bid||49.02 x 1200|
|Ask||49.25 x 800|
|Day's Range||48.34 - 52.54|
|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||107.67|
While cannabis stocks are blazing with popularity, our survey of readers shows that they are still not willing to commit their portfolios to the risky sector
It wasn't very difficult for Greenlane Holdings to become the best IPO ever for a U.S. marijuana stock on the Nasdaq. Here's why.
Greenlane, a distributor of vaping devices and other accessories, jumped on its first day of trading. It's a rare U.S.-based company operating in the marijuana industry that's public on a big U.S. exchange.
Canopy Growth's Acreage Acquisition Boosts Sentiment(Continued from Prior Part)ACB, IIPR, and OGI gain On April 18, in the first half of the trading session, Aurora Cannabis (ACB) was trading up 1% while Innovative Industrial Properties (IIPR)
Brendan Kennedy took his company public and made more than the CEOs of Seattle companies including Amazon, Nordstrom and Starbucks.
Canopy Growth to Acquire Acreage Holdings(Continued from Prior Part)Canopy Growth jumps Canopy Growth (WEED) (CGC) announced that it will acquire Acreage Holdings for a total value of $3.4 billion, which led the company’s stock price to jump on
Canopy Growth will probably purchase the rights to buy Acreage Holdings to tap the growing potential of the U.S. marijuana market. This should bolster the ETF MJ.
As the trend of marijuana legalization continues, cannabis-related stocks continue to proliferate. But fundamentals and technicals remain weak for many of the stocks in this space.
Canopy Growth to Acquire Acreage HoldingsCanopy Growth to Acquire Acreage Holdings On April 18, Canopy Growth (WEED) (CGC) announced that it entered an agreement to acquire Acreage Holdings. Acreage Holdings has a presence in 20 states in the US
April may bring spring showers, but it still feels like winter for marijuana stock investors. This month has rained almost entirely bad news down on the cannabis sector, and investors haven't spared Cronos Group (NASDAQ:CRON) from the selling deluge.Source: Shutterstock Aphria's (NASDAQ:APHA) dour earnings report further damaged the mood, casting a wide shadow over other industry players. Companies like Tilray (NASDAQ:TLRY) and Canopy Growth (NYSE:CGC) saw their share prices wilt as people began to adjust their outlook for this earnings season downward. And there was the latest short seller target as well, with Village Farms (NASDAQ:VFF) losing as much as 15% of its value following a negative report from Citron.On Wednesday, all signs pointed to even more trouble for CRON stock in particular. That's because BofA/Merrill Lynch launched coverage of several leading marijuana stocks. It gave favorable coverage to two, while slapping CRON stock with an underperform rating. Normally, you'd expect CRON stock to slump on the news. Instead, shares dipped a bit and then rallied, actually closing the day in the green. It could be a positive sign for the company going forward that it could rebound following bad news.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Worried About Valuation for CRON StockBofA's report was hardly all that negative on Cronos as a company. They like its prospects, but the share price is a hang-up. They wrote: "We initiate coverage of Cronos, a Canada based cannabis company, with an Underperform rating and […] $13 price objective". * 10 S&P 500 Stocks to Weather the Earnings Storm They arrived at this price target in large part on an enterprise value to sales metric. They plugged in their 2020 estimate for sales and slapped a 23x multiple on said figure, which worked out to a $13 price target.As I said, BofA isn't down on the company. Their analysts added that, "Cronos is a compelling fundamental value in our view, but we are unable to get comfortable with the valuation." That's fair. The marijuana stocks are all highly valued and require some faith in the overall cannabis story to get behind.On the other hand, it's not like BofA views the whole sector as overvalued. At the same time that it panned Cronos on valuation, it gave a buy rating to Aurora Cannabis (NYSE:ACB) suggesting that it will be one of the "few truly global" companies in pot. Interestingly, even using just a 17x EV/sales multiple, they got to an $11 price target for ACB stock. BofA was even more optimistic for Canopy Growth, suggesting it is worth 24x EV/sales, which gets to a price objective of $52. So, for as fundamentally bullish as BofA may be on Cronos, they like some of its competition a whole lot more. Need A Better Earnings ReportCRON stock owners come into this earnings season with an extra dose of trepidation. That's because, arguably, Cronos delivered the single worst earnings report of all the marijuana majors during the last quarterly earnings report cycle. Given that APHA stock is now down 25% in recent days following its clunker of an earnings release, the market is saying companies need to shape up or their share prices will get leveled.Turning back to Cronos, its last report showed some flaws in the business model. Remember that Citron Research had previously blasted Cronos for having tiny distribution deals compared to rivals. Cronos' last earnings showed minimal recreational marijuana revenues. While overall revenues grew sharply, it appears that Cronos is still reliant on medicinal for the time being. Anyone who was thinking Cronos would see business results soar on Canada's legalization has been disappointed -- at least for the time being.Cronos also appears to be suffering from the same margin compression that has hit its rivals. Over the past three quarters, its gross margin has fallen from 63% to 55% and now just 45% during the most recent one. As the flood of marijuana supply comes online, they will have to demonstrate that they can keep their profit margins up. Otherwise, it could be rough days ahead for CRON stock. CRON Stock: Don't Forget About AltriaThat said, the bears risk claiming victory too early here. Sure, CRON stock has slumped from a high of $25 to $16 now. The marijuana sector as a whole is in a bit of a slump. But we're arguably still in the early innings of the marijuana stocks story playing out.Some folks have said that Canada's legalization was the top for the sector, and that it's all downhill from here. But I think we'll see a different path. Yes, a lot of marijuana companies are going to go out of business. There are way too many companies fighting over what is still a small and new market at the moment. There will be consolidation. Businesses will fail.This is great news for the sector leaders, however. As there are more mergers and acquisitions, the leaders will become more and more powerful. Cronos, along with Canopy, are set to be those industry leaders. By virtue of having the biggest backers and access to cheap and plentiful capital, Canopy and Cronos have the best chance of taking leadership in the marijuana industry. Sure, Cronos has a lot to fix based on its recent earnings reports. But with Altria's (NYSE:MO) help, there's no reason to count out CRON stock yet.At the time of this writing, Ian Bezek owned MO stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Cronos Stock Shrugs Off Negative Analyst Report appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) is having a busy year raising its cash on hand. It filed a $750 million mixed shelf offering at the start of the month. In mid-January, it filed a $250 million aggregate principal amount of convertible senior notes due 2024. What is the company doing with all this money? And if markets continued to accumulate shares throughout the year, will the stock reward loyal holders? Higher Debt and Share DilutionThe convertible notes issuance and mixed shelf offering will no doubt give Aurora plenty of cash to grow the business. But the cost to existing shareholders is more debt and share dilution. Now, this could still pay off for Aurora and its shareholders if the company puts the cash to good use.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlso, its competitors either raised cash on the stock market or sold part of the company in return for a cash infusion. For example, Tilray (NASDAQ:TLRY) raised $435 million in October, while Canopy Growth (NYSE:CGC) got an investment from Constellation Brands (NYSE:STZ).Executive Chairman Michael Singer said:"Although we have no immediate intention of drawing capital against this Shelf Prospectus, we have introduced this option as a prudent and long-term strategic measure to provide us with flexibility in access to growth capital, if or when required, to continue executing on our global expansion and partnering strategy." Dilution Could Pay Off for ACB StockAurora is not diluting investors if the company signs deals that add value to the business. So far, Aurora bought companies but paid fair value for them. * 10 S&P 500 Stocks to Weather the Earnings Storm Last year in May 2018, it bought MedReleaf for CAD$3.2 billion in an all-share transaction. Or it expanded its facilities through higher capital expenses. More recently, on Apr. 10, Aurora expanded the size of its marijuana production facility in Medicine Hat, Alberta, by 33%.The acquisitions and production facility investments increase the company's scale. This, in turn, increases Aurora's growth potential. So as markets willingly bid cannabis stock higher, the high valuation in ACB stock works in the company's favor.It may use its own stock to scale up its business. This will allow it to catch up to Canopy. However, it needs to keep showing results. Previously, Tilray enjoyed a higher valuation but weak quarterly results posted in March sent the stock on a downtrend. TLRY stock is down 30% in the last month.Cannabis companies are racing to beef up their size, scale and growth rates. Only a few of them will reach a big enough scale to become global leaders in the industry. So, that small debt offering could allow Aurora to leverage its balance sheet to go after growth.A word of warning: short-term risks are high for investors here. Aurora and other cannabis companies are not making any profits yet, and revenue growth trails mounting costs, so always proceed with caution. Opportunities for Aurora CannabisAurora leads in medical market share in Europe and Latin America. It is active in 5 continents and 24 countries. On top of the 15 strategic acquisitions made since Aug. 2016, it completed or is undergoing 40 clinical studies. The studies involve over 71,000 medical patients.Production capacity is currently 100,000 kg per year (as at the end of Q2/2019). By early 2019, it forecasts production of 150,000 kg/year and then over 500,000 kg/year by mid-2020.The cash raised could accelerate Aurora's lead in the Canadian market. Quarterly revenue is growing nearly exponentially, while competitors trail by a wide margin. As long as registered medical patients grow and production increases, expect the pace of revenue growth to continue.Aurora's addressable market may expand as it targets the Canadian medical, global medical, Canadian adult-use, and global adult-use markets. So far, margins are stable for the Canadian markets and in the case of adult use, strengthened through premium and innovative products. Globally, Aurora needs to leverage its early mover advantage, spend on R&D to develop high margin products. Your TakeawayAurora has tremendous global market growth potential, but it will not happen overnight. Near-term, the company now has the cash resources to invest strategically. Its value chain will benefit from higher cultivation and the opening of more distribution outlets. Although shares are holding up now, expect volatility increasing after the company reports quarterly results on May 13.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Why Aurora Cannabis Is Issuing So Much Stock and Debt appeared first on InvestorPlace.
Cannabis producers and sellers are scrambling to secure product and cultivation space as the substance goes mainstream in Canada and parts of the U.S. The common thinking is that demand for high-quality products will exceed supply for some time as more regions legalize medically and recreationally. Production potential is key, and one emerging company, Item 9 Labs, plans to quadruple their production by the end of this year, and they're planning to enter new markets through licensing and permitting in the next 12 months as well. NEW YORK, NY / ACCESSWIRE / April 18, 2019 / It may feel slow-going, but U.S. states are slowly coming around on medical marijuana use.
CGC, HEXO, CTST Moving Higher Today(Continued from Prior Part)Tilray mutedOn April 17, Tilray (TLRY) remained muted, with the stock almost flat as of noon. The stock remained depressed as the overall cannabis industry has slumped in April.
BofA Merrill Lynch Initiated Coverage on Canopy Growth(Continued from Prior Part)Analysts’ ratings Early on April 17, Bank of America Merrill Lynch initiated coverage on three cannabis stocks. Aurora Cannabis (ACB) received a “buy”
The cannabis industry has grown in recent months and years, and many companies in the cannabis and health-related industries have been uplisted to reputable U.S. exchanges. Learn about the marijuana stocks on the Nasdaq.
Irwin Simon Says Aphria Will Hit 1 Billion in Sales by 2020(Continued from Prior Part)Analyst ratings The consensus analyst rating on Aphria (APHA) after its earnings were released remained unchanged compared to the previous month. As the chart
Irwin Simon Says Aphria Will Hit 1 Billion in Sales by 2020Aphria’s earnings Earlier this week, Aphria (APHA) reported its Q3 earnings. During the earnings call, the company’s interim CEO, Irwin Simon, was very optimistic about the company’s
Faith in marijuana stocks is starting to dissipate at the start of the week after a number of headwinds from last week have continued to leach into investors' minds and force them to question the longer-term strength of the marijuana space more broadly. The two pot stocks we're watching this week are Aphria (NYSE:APHA) and Tilray (NASDAQ:TLRY).Source: Shutterstock Last week, one of Cowen & Co.'s top marijuana market analysts, Vivien Azer, cited potential headwinds that could bear down on cannabis producers.And yesterday morning, a major earnings disaster in a popular pot stock echoed the analysts' concerns as well as a preexisting narrative that sales of marijuana might slow considerably in the months ahead.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSpecifically, Azer cited oversupply and quality control issues as reasons for "lowering her first-half expectations for a handful of Canadian growers." In some cases, the lower quality cannabis might be "un-sellable." The ETFMG Alternative Harvest ETF (NYSEARCA:MJ), which tracks key marijuana growers, dropped more than 5% over the past five days as a result of the negative outlook.And Aphria -- yesterday morning's big-time earnings flop -- dropped nearly 15% on Monday, April 15.After considering this lackluster product and the possibility of fewer sales, the short-term case for some marijuana stocks has certainly become a bit murkier. But is it all doom and gloom in the marijuana space?The following are two of the key cannabis stocks to watch this week: Aphria and Tilray. Aphria (APHA)The pain APHA investors suffered Monday morning will remain seared in the minds of marijuana stock investors for days to come. Aphria reported "[a]n adjusted net loss of C$0.20 per share … year-over-year, and missed the Street by C$0.16." * 10 Stocks That Are Screaming Buys Right Now But perhaps more damaging for the stock wasn't its failure to satisfy Wall Street estimates, as InvestorPlace contributor Vince Martin points out in his earnings breakdown, only a few analysts are currently setting the tone for APHA stock.Rather, upon closer examination, it's the less impressive growth narrative for the stock that has caused some investors to flee. In Martin's words, although "[r]evenue rose 617% year-over-year … the numbers aren't as impressive as the headlines suggest. Aphria is growing its pot business -- but perhaps not as fast as a $2 billion-plus valuation suggests it should be."Adding to the sizable dip in APHA stock is the fact that a potential buyout by Green Growth Brands (OTCMKTS:GGBXF) is no longer on the books, causing some investors to question whether the company can hold its own against the competition or if the company might not see another offer any time soon. Tilray (TLRY)TLRY stock joined Aphria in the dive yesterday, dropping more than 7%.In-line with Azer's assessment of the marijuana space last week, TLRY stock has come under scrutiny lately for potential oversupply issues in Canada, which might affect the company's longer-term growth narrative. The hype around the pot business is expected to lose some of its vigor as supply and demand for marijuana begin to balance out. * 7 Dental Stocks to Buy That Will Make You Smile Adding salt to the wound in Tilray is the fact that the negative outlook isn't just coming from analysts, nor is it just confirmed by its peers in the space like APHA. As InvestorPlace Feature Writer James Brumley asserts in his latest in-depth analysis of TLRY stock, the less-than-positive perspective came straight from Tilray's CEO Brendan Kennedy during a March earnings call, where he stated that he expects marijuana to "erode in value in the medium to long term, as the market normalizes." This normalization is expected to occur "[o]ver the next 18 months."Despite the negative short-term outcast, analysts still collectively expect an upside of more than 87% for TLRY stock over the next 12 months (an average price target of $107). Whether this is a realistic number for TLRY to reach may become clearer when the company next reports earnings on Jun. 17.Wall Street still expects an earnings-per-share loss of 29 cents on revenues of $24.85 million for the report. But we might expect the story behind Tilray (and analysts expectations) to change in light of Aphira's earnings-based pain yesterday.As of this writing, Robert Waldo did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post 2 Hot Marijuana Stocks to Watch This Week appeared first on InvestorPlace.
Canopy Growth Continues to Expand amid Market Weakness(Continued from Prior Part)Acquiring CafinaEarly today, Canopy Growth (WEED) (CGC) announced it had acquired Spanish company Cafina, through which Canopy intends to establish a broader reach in
TLRY, CGC, ACB Snap Out of Their Losing StreaksCannabis sector gains Today, overall cannabis sector sentiment appeared to improve with the Horizons Marijuana Life Sciences ETF (HMMJ) gaining 1.7% while the ETFMG Alternative Harvest ETF (MJ) gained
Canopy Growth Continues to Expand amid Market WeaknessMarket weaknessThe cannabis sector has weakened recently. Most cannabis stocks ended March in negative territory, and this trend has worsened in April. Tilray (TLRY) and CannTrust (CTST) have
HOUSTON, TX / ACCESSWIRE / April 16, 2019 / Patent applications from cannabis companies offer a look into the battle to secure intellectual properties in the U.S. The patent application can be used as a basis for obtaining patent protection in over 170 countries, including the US, Canada, the UK, France, Germany, Russia, China, Brazil, Japan, and Australia.