|Bid||6.12 x 2900|
|Ask||6.21 x 800|
|Day's Range||6.08 - 6.45|
|52 Week Range||5.16 - 18.10|
|Beta (5Y Monthly)||3.82|
|PE Ratio (TTM)||24.56|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) today announced that it has opted to receive a $5.94 million cash refund from Pure Sunfarms Corp. ("Pure Sunfarms") relating to an additional equity contribution that Village Farms made to Pure Sunfarms on November 19, 2019 (the "VF Additional Equity Contribution").
Markets inched their way higher Wednesday, as the U.S. and China signed phase one of the trade deal. With that said, let's look at a few top stock trades for Thursday. Top Stock Trades for Tomorrow No. 1: Pinterest (PINS)Source: Chart courtesy of StockCharts.comMomentum has shifted for Pinterest (NYSE:PINS), and shares have been on fire over the past two days after reports of positive user data.The stock is cooling off a bit on Wednesday, but it's got buyers wondering when and if to buy the dip. How do we navigate the stock after yesterday's 10% rally and Wednesday's move?InvestorPlace - Stock Market News, Stock Advice & Trading TipsA move over Wednesday's high likely sends it to the 200-day moving average, with $25 above that. A move lower, however, could be met with buyers near $21. If it's not, PINS stock could drop to the $19 to $20 area.If that's the case, it may be an excellent buying opportunity, with uptrend support (purple line), the backside of prior downtrend resistance (blue line) and the 20-day and 50-day moving averages all clustered in this zone. Below this area, and the long trade is broken. Top Stock Trades for Tomorrow No. 2: Visa (V)Source: Chart courtesy of StockCharts.comVisa (NYSE:V) stock has been surging in 2020, keeping up its momentum from the fourth quarter. Shares burst over uptrend resistance (blue line), and are now knocking on the door of $200.It will likely be met by sellers initially, particularly as the stock is technically overbought (blue circle). On a pullback, the first level of support is the backside of prior trend resistance.Below that, uptrend resistance (purple line) and the 20-day moving average are on the table. As for upside, Visa can keep going. But at this stage of the move, I am not a buyer at current levels. Top Stock Trades for Tomorrow No. 3: Bank of America (BAC)Source: Chart courtesy of StockCharts.comBank of America (NYSE:BAC) beat earnings, but not revenue expectations for fourth quarter -- and is failing to rally on the day. Shares are down about 2% on the move, but even worse, it's breaking key levels.BAC stock is now below the 20-day moving average and uptrend support (blue line). A slightly larger decline will send it below $34.40, which has been short-term range support. In that case, it will put the 50-day moving average and $33.50 area on watch.For longer-term buyers, Bank of America may present a solid buying opportunity lower at $32. Top Stock Trades for Tomorrow No. 4: Virgin Galactic (SPCE)Source: Chart courtesy of StockCharts.comWhen we were looking at a bullish trade in Virgin Galactic (NYSE:SPCE), I did not anticipate such a powerful move so fast.But that's exactly what we've got, with shares breaking out over $12. That occurred four trading sessions ago, and now shares are already at around $15 -- up 25%.The move sent shares up through channel resistance (blue line), and while even more upside could be in play -- like Visa -- it's hard to be a buyer right here. Above $13.75, and bulls are still technically okay, while pullbacks to this level and to prior channel resistance may be bought should buyers step up.Below $13.75, and channel support along with the 20-day moving average are in play. Top Stock Trades for Tomorrow No. 5: Village Farms (VFF)Source: Chart courtesy of StockCharts.comCannabis stocks have been on fire lately, and Village Farms (NASDAQ:VFF) is making a comeback, too. The stock has erupted over downtrend resistance (blue line) and the 20-day moving average Wednesday. Now, it's trying to reclaim the 50-day moving average.If it continues higher, the 200-day moving average could be the next upside target. On a pullback, I want to see the 20-day moving average and downtrend resistance hold as support. Below $5.40, and the long trade is broken.On a dip, look to see if VFF can establish a higher low -- but keep in mind, this is a very speculative play.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Up-and-Coming Small-Cap Stocks to Watch * 7 Energy Stocks to Buy on the Resurgence of the Oil Boom * 3 Standout Oil Services Stocks to Buy The post 5 Top Stock Trades for Thursday: PINS, V, BAC appeared first on InvestorPlace.
One major catalyst for the U.S. cannabis market is cannabinoid or CBD sales. The passage of the 2018 Agriculture Improvement Act (farm bill) legalized hemp production setting the market up for a strong sales ramp.Hemp contains less than 0.3% of tetrahydrocannabinol (THC), whereas marijuana contains up to 30% of the psychoactive compound. CBD is increasingly presumed to contain properties for wellness and pain management increasing the attractiveness of hemp-infused CBD products, but the U.S. FDA has other thoughts.The FDA has questioned the lack of safety research on CBD products and placed into question the approval of edibles. In addition, CBD products aren’t allowed to advertise any medical benefits from the products such as pain relief.For this reason, the large proclamations for huge CBD sales have taken a hit. National retailers haven’t stocked edible products due to the potential ire of the FDA causing a pure CBD company in the U.S. like Charlotte’s Web Holdings (CWBHF) to recently miss sales targets. The industry is trending more towards 2022 sales of $4.4 billion versus some original high expectations up around $21.9 billion.The U.S. CBD market is even more complicated due to the flood of Canadian companies pushing south. The U.S. CBD space is the only area where most companies from Canada and the U.S. are expected to compete for now leading to the development of thousands of brands crowding into the space.We’ve delved into these three U.S. cannabis MSOs with a strong market position in Illinois that will benefit from the opening up of the adult-use market. Using TipRanks' Stock Comparison tool, we lined up the three alongside each other to give us an idea of what the Street thinks is in store for the trio in the year ahead.Canopy Growth (CGC)About a month ago, Canopy Growth officially launched their hemp-derived CBD product for the U.S. The First & Free brand marks the entrance of the Canadian cannabis company into an already crowded CBC space.At launch, the company is offering various assortments of oil drops, softgels and creams. Notably, Canopy Growth is avoiding marketing dietary supplements that are currently under the scrutiny of the FDA and the higher selling products by current U.S. brands.Canopy Growth has long promoted the desire to enter the U.S. via CBD products. The business provides the company with a second avenue to expand in the largest cannabis market after securing the right to purchase Acreage Holdings when cannabis is federally legal.The company has established an operating complex in New York for the extraction and production of hemp-derived products including CBD. Canopy Growth is spending several hundred million on its industrial hemp park in the state and contracted with American farmers for thousands of acres of hemp cultivation.While CBD sales are important to the plan for Canopy Growth to enter the U.S. market, the current $7 billion market cap of the stock suggests the crowded space won’t provide the sales to move the needle fro the stock.All in all, Wall Street is not as bearish on Canopy, but is not convinced on this stock, either. CGC holds a Moderate Buy from the analyst consensus, based on 6 "buy" ratings – but also 10 "holds." Shares sell for $21.92, and the $22.58 average price target suggests a modest upside of just 1%. (See Canopy stock analysis at TipRanks)Tilray (TLRY)Tilray positioned the company to launch CBD products in the U.S. last year via the acquisitions of Manitoba Harvest and Smith & Sinclair. By Q3 alone, the company had products in nearly a thousand retail locations, though sales were minor.The Canadian cannabis company is highly focused on Cannabis 2.O products whether in Canada or the U.S. Their High Park division has innovative products in CBD formats of beverages, edibles and vapes with products under existing brands such as Marley Natural, Goodship and others.The Smith & Sinclair company offers craft edible candy, fragrances and unique consumable products with the intent to launch the Pollen brand for the CBD space. The Manitoba Harvest division already has $15 million quarterly revenue based with connections at thousands of retailers in the U.S. already selling hemp products. The natural move is into the hemp-infused CBD space.In essence, the company has a diverse portfolio of CBD brands to explore sales opportunities in the U.S. As with the other Canadian players, Tilray hopes to eventually utilize established connections in the CBD space to allow for quick expansion in the U.S. once THC products are federally legal.Tilray is the better bet in the sector for a company looking for a purer CBD or Cannabis 2.0 products company. The stock only has a market value of $1.5 billion now and Tilray is less focused on cannabis cultivation.The biggest issue remains the valuation with 2020 revenue expectations of $317 million placing the stock at close to 5x revenues. The stock upside could come from strong sales of higher margin CBD products.According to TipRanks, the consensus on Wall Street is that Tilray stock is a “hold” for investors. But TipRanks might as well have said “buy” — because analysts, on average, think the stock, currently at $16.44, could zoom ahead to $25.56 within a year, delivering 56% profits to new investors. (See Tilray stock analysis at TipRanks)Village Farms International (VFF)Village Farms International is a unique company in the space with a twist due to their existing business in Texas. The company has entered in the CBD market via simply converting greenhouses into hemp cultivation facilities while additionally adding joint ventures for growing hemp outdoors in multiple states to convert into CBD biomass.The company planted 870 acres of hemp in 2019 with the original 625 acres averaging 1,600 pounds of hemp per harvested acre. Village Farms was positioned to commence sales of hemp biomass in Q4.The upside potential comes this year as Village Farms looks to expand into white-labelled and branded CBD products in 2020. The biggest concern with the stock is the drama with joint-venture partner Emerald Health Therapeutics (EMHTF).The companies have a major dispute over the Pure Sunfarms JV ownership. The JV cultivates and sells cannabis in Canada. Without resolution of this dispute, the stock could trend lower. Village Farms has a meager stock valuation of $300 million so any of the moves into branded product sales in either U.S. CBD sales or Canadian cannabis sales would provide a major lift to the stock.TipRanks’ data shows a bullish camp backing this greenhouse firm. The ‘Strong Buy’ stock has amassed 5 ‘buy’ ratings in the last three months, with no "sell" or "hold" ratings. The 12-month average price target stands tall at $20.20, marking nearly 280% in return potential for the stock. (See Village Farms stock analysis at TipRanks)
While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and deteriorating expectations towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the third quarter and hedging or reducing many of […]
After a rough stretch for the sector, marijuana stock bargains abound; here are 8 that stand out, asserts Timothy Lutts, a leading specialist in the cannabis sector and editor of the Cabot Marijuana Investor.
The objective of any investor is a simple one: to make money.While this objective couldn’t be clearer, it is much harder putting it into action. How is one to spot the potential of a stock on a downward spiral or one which has been rising high yet still has more fuel in the tank? Or what about the investor’s holy grail; Catching a stock before it takes off and then reaping its multiplying rewards?TipRanks’ Stock Screener comes in handy here. The tool includes filters such as price target, analyst consensus and news sentiment, amongst others, to help investors get the lowdown on a stock.So, we opened up the Stock Screener to zoom in on 3 tickers that have the potential to soar over the next 12 months. And by soar, we mean soar till you can see them no more. The out of sight types with potential for triple-digit returns. Moreover, currently on the Street, these 3 choices all have a Strong Buy consensus rating. Let’s have a look.RedHill Biopharma (RDHL)It has been a busy few months for gastrointestinal disease specialist, RedHill Biopharma.In November, the biotech secured FDA approval for Talicia, the company’s treatment for Helicobacter pylori infection in adults. The drug’s approval marked the first instance of a rifabutin-based therapy receiving the FDA’s blessing.The positive development followed October’s announcement of a $36 million strategic investment by Cosmo Pharmaceuticals, which includes an exclusive license agreement for the U.S. rights to Aemcolo, Redhill’s treatment for travelers’ diarrhea, a condition bought on by non-invasive strains of E. coli in adults. The deal leaves Redhill’s balance sheet debt free and well positioned for the launch of Talicia.Nomura’s Christopher Marai thinks “Talicia is undervalued” and argues that the company has what it takes to execute the drug’s launch. The 4-star analyst said, “RDHL has ~40 sales reps, and its HQ in Raleigh, NC, and has been prepping for the Talicia launch for over three years. RDHL is actively targeting ~10,000 HCPs and has relationships with top payers and PBMs, representing ~80% of commercial lives. RDHL is capable of launching this drug in the U.S. without a partner and, thus, should be able to keep 90% margins. The ramp of the launch may be slow, but RDHL is already doing outreach.”The company has several other treatments in the pipeline, including RHB-104, a treatment for Crohn's disease, which showed positive top-line results from a Phase 3 trial. This led Marai to conclude that there is “significant opportunity” over the next 12 months.To this end, Marai reiterated a Buy rating on RedHill, alongside a price target of $28. This indicates upside potential of a massive 380%. (To watch Marai’s track record, click here)Only two other analysts have thrown the hat in over the last three months with a view on the promising biopharma. Both, though, rate the stock a Buy, thus bestowing on RDHL a Strong Buy consensus rating. An average price target of $22.33, implies skyscraping upside potential of 283%. (See RedHill stock analysis on TipRanks) Cabaletta Bio (CABA)Fresh out of the box is newly listed biotech Cabaletta Bio. The micro-cap went public less than two months ago but is already drawing a small but vocal following on the Street.CABA’s platform uses CAR T cell technology to selectively target B cell-mediated autoimmune diseases. The company’s vision is to “develop and launch the first curative targeted cellular therapies for patients with autoimmune diseases.”According to Cabaletta, the CABA platform has applicability for more than two dozen B cell-mediated autoimmune diseases and the company has several drugs already in the pipeline. Its lead program is DSG3-CAART, a treatment for mucosal pemphigus vulgaris (mPV). The FDA has approved an IND (investigational new drug) application for the treatment, with clinical trials expected to start in 2020.Evercore’s Joshua Schimmer thinks “there is strong rationale underlying CABA’s target indications.” The 5-star analyst said, “CABA has presented strong preclinical data suggesting that CAAR-T therapies should have utility for autoimmune diseases. However, clinical results will be needed to determine if complete depletion of pathogenic B-cells without relapse (a ‘cure’) is possible without preconditioning, the effect of soluble antibodies on potential for cytokine release syndrome and risk of initial disease flares. In our view, the preclinical data has been impressive, and the company has been thoughtful about potential process changes which could mitigate these risks if they do arise.”With this in mind, Schimmer initiated coverage on Cabaletta with an Outperform rating and set a price target of $25, implying huge upside potential of 147%. (To watch Schimmer’s track record, click here)On the Street, there are currently only two other analysts tracking the fledgling biotech, both deeming CABA a Buy. Therefore, Cabaletta has a Strong Buy consensus rating. The average price target is $22, indicating gains of 117% could be in the cards over the next 12 months. (See Cabaletta stock analysis on TipRanks) Village Farms International Inc (VFF)Bucking the trend this year is cannabis producer Village Farms. Unlike the general downturn in the cannabis industry’s miserable 2019, VFF’s share price is up by 84% year-to-date.What differentiates this company from other cannabis growers is VFF’s background. The company’s foray into the cannabis industry comes off the back of years growing and selling vegetables, and it has a reputation as a low-cost producer of tomatoes and cucumbers, amongst other produce.Village Farms has a majority stake in Pure Sunfarms, one of the single largest cannabis growing operations in the world. The company has applied its growing expertise and greenhouse equipment to the new venture, an investment that is already bearing fruit; Pure Sunfarms recently signed an agreement with the Alberta Gaming, Liquor & Cannabis (AGLC) commission to supply recreational cannabis to licensed retailers in Alberta.Raymond James analyst Rahul Sarugaser thinks VFF’s background bodes well for the future. The 4-atar analyst noted, “Village Farms is leveraging more than 30 years of fresh produce cultivation experience—30 years developing intimate knowledge of its greenhouses and region-specific climate— to pursue opportunities in cannabis… From VFF’s first announcement describing aspirations in the cannabis industry—less than three years ago—to the present, Pure Sunfarms has become the lowest cost greenhouse grower in Canada, averaging an all-in production cost of US$0.48/g (C$0.63/g) last quarter.”Therefore, Sarugaser initiated coverage of Village Farms with an Outperform rating and price target of $8.36. Should the target be met over the next 12 months, gains of 40% could be in place. (To watch Sarugaser’s track record, click here)Sarugaser’s optimistic thesis is dwarfed by his colleagues’ target for the cannabis grower. A Strong Buy consensus rating breaks down into 5 Buys, with the average price target of $20.11 indicating upside potential of 237%. (See Village Farms stock-price forecast and analyst ratings) To find good ideas for stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Village Farms Confirms Rejection of Emerald's Invalid Set-Off Claim and Invalid Shareholder Loan Repayment Demand
Village Farms International, Inc. ("Village Farms") (TSX:VFF; Nasdaq:VFF) today responded to the ongoing, inaccurate and misleading public disclosure by Emerald Health Therapeutics, Inc. ("Emerald") relating to Village Farms' majority ownership interest in Pure Sunfarms Corp. ("Pure Sunfarms").
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today responded to misleading public disclosure made by Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) yesterday in connection with their joint venture, Pure Sunfarms Corp. ("PSF"). Emerald reiterates the disclosure in its November 20, 2019, news release and confirms that, factually, Emerald and Village Farms each continue to own 50% of PSF. As set out in Village Farms’ own news release, no additional shares of PSF have been issued to Village Farms and none of Emerald’s escrowed shares in PSF have been cancelled.
VANCOUVER , Nov. 27, 2019 /CNW/ - Village Farms International, Inc. ("Village Farms" or the "Company") (TSX:VFF; Nasdaq:VFF) today announced that its majority-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has entered into a supply agreement with the Alberta Gaming, Liquor & Cannabis Commission ("AGLC") to supply recreational adult-use cannabis products to Alberta's licensed private retailers, including Alberta's only legal online source for recreational cannabis, AlbertaCannabis.org. The AGLC is the wholesaler to private retailers and the only authorized online retailer in Alberta.
VANCOUVER , Nov. 26, 2019 /CNW/ - Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) today responds to inaccurate and misleading public disclosure by Emerald Health Therapeutics, Inc. ("Emerald") and provides an update in respect of its majority ownership interest in Pure Sunfarms Corp. ("Pure Sunfarms"), as described in more detail in Village Farms' press release dated November 19, 2019 (the "Prior VF Press Release"). As a result of Emerald's failure to pay $5,940,000 to Pure Sunfarms on November 1, 2019 (the "Emerald Payment Default"), Village Farms made an additional equity contribution (the "VF Additional Equity Contribution") and increased its ownership in Pure Sunfarms on November 19, 2019 , thereby becoming the majority owner of Pure Sunfarms.
Following an equity payment default by Emerald Health Therapeutics (OTCQB: EMHTF) under the Delta 2 option agreement involving Pure Sunfarms, Village Farms International (TSX: VFF) (NASDAQ: VFF) has informed Pure Sunfarms of exercising its rights to increase its ownership in Pure Sunfarms and advanced an equity payment to Pure Sunfarms of $5.94 million. Emerald was obligated to […]The post Village Farms Eyes Increased Position in Pure Sunfarms appeared first on Market Exclusive.
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today responded to inaccurate allegations made by Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) in connection with their 50/50 joint venture, Pure Sunfarms Corp. ("PSF"), and updated the market on certain related matters. Late yesterday evening Emerald received notice from Village Farms stating that Village Farms had advanced $5.94 million to PSF for additional equity. Village Farms claims that it has the right to acquire these shares under the PSF shareholders’ agreement.
VANCOUVER , Nov. 19, 2019 /CNW/ - Village Farms International, Inc. ("Village Farms") (TSX:VFF; Nasdaq:VFF) today announced that, following an equity payment default by Emerald Health Therapeutics, Inc. ("Emerald") (TSV:EMH) pursuant to the Delta 2 option agreement involving Pure Sunfarms Corp. ("Pure Sunfarms"), Village Farms notified Pure Sunfarms that it has exercised its rights under the Pure Sunfarms shareholders agreement to increase Village Farms' ownership position in Pure Sunfarms and advanced an equity payment to Pure Sunfarms of $5,940,000 (the "VF Additional Equity Contribution"). Following Emerald's failure to make this equity payment, Pure Sunfarms issued a default notice to Emerald. Assuming the VF Additional Equity Contribution is accepted by Pure Sunfarms, Village Farms will receive an increased equity interest in Pure Sunfarms effective as of November 19, 2019 .
Shareholders in Village Farms International, Inc. (TSE:VFF) had a terrible week, as shares crashed 23% to CA$8.31 in...
– Pure Sunfarms is Top Performing Dried Flower Brand with 16% Market Share and Number One Selling Dried Flower Product in October with Ontario Cannabis Store – VANCOUVER , Nov. 14, 2019 /PRNewswire/ - ...
The vast majority of the cannabis market has been beaten down over the last year as the market is concerned about a myriad of issues in the once hyped sector. The Canadian sales aren’t living up to expectations after recreational cannabis legalization in October 2018 and the U.S. companies are facing issues with raising capital at reasonable costs due to a lack of cannabis legalization on a federal level.The global market is still forecast to top $200 billion in annual sales in the distant future, but investors always need to remember that companies have to survive the present market. The cannabis sector is rife with opportunities under the surface while the majority of the media headlines focuses on the major Canadian LPs that obtained lofty valuations in the initial market over reaction to the potential cannabis opportunity.Market darling Aurora Cannabis (ACB) is down over 60% from the 2019 peak over $10 and the stock has lost ~28% from the starting price for the year. The original IPO hype from Tilray (TLRY) sent the stock surging to $300. In the months following, the Tilray has lost up 90% of the peak value and the stock is down nearly 70% YTD. A whole list of dozens of Canadian and U.S. cannabis stocks have suffered similar fate in 2019.The market isn’t all bad, but investors haven’t made any money this year chasing the well-known names. We’ve delved into these three cannabis companies that have generated stock gains in 2019 and are poised for more upside going into 2020:Trulieve Cannabis (TCNNF)Though Trulieve Cannabis is down from the highs above $16 this year, the stock started the year around $8 and has generated a 35% gain YTD with the current move above $11. The U.S. multi-state operator (MSO) based in Florida avoided the high-profile acquisitions around the market peak that has snagged the other major MSOs. The company focused on profitability over pure revenue growth and the stock has rewarded shareholders this year.Trulieve recently opened their 39th store in Florida and is slowly moving beyond a Florida focus while most other players took the aggressive expansion plan to reach operations in as many states as plausible. The company now has plans to enter California, Massachusetts and Connecticut plus a couple of other states this year via minor deals where Trulieve will only have one or two retail dispensaries in each of these news states at year end.Even without aggressive acquisitions, the company still produced 149% revenue growth in the June quarter. The most impressive part of the Trulieve story is that the company has 65% gross margins and only spends mid-20% of revenues on operating expenses to generate a substantial EBITDA margin.The stock has a market value of $1.2 billion with revenue targets approaching $400 million in 2020. The company generated over $31 million in adjusted EBTIDA in the last quarter alone allowing for more stock gains with these strong bottom line metrics in a market where most companies produce loses.All in all, Wall Street is quite positive on this 'Moderate Buy' stock; Trulieve has received 2 'buy,' and one 'hold' ratings in the last three months. Running the numbers across the Street, the 12-month average price target lands at $19.62, representing over 70% upside from current levels. (Find out how the Street’s average price target for Trulieve breaks down)Village Farms (VFF)Another company that has generated stock gains this year is Village Farms, despite a scathing report from Citron Research back in April. The research firm known for aggressive short positions suggested the company had so many red flags the stock should be valued at $1.While half the cannabis sector stocks are actually trading at $1, Village Farms is now up over 140% from the January price in the face of these allegations. The company created a 50%-owned JV to turn greenhouses growing vegetables into a cannabis cultivation business that has worked better than planned.The stock is worth $412 million, and Village Farms generated $53.5 million in quarterly revenues with $12.1 million from the Pure Sun Farms JV. The ability to generated $4.6 million in EBITDA from converting existing facilities and producing low-cost cannabis has won over investors.The Pure Sunfarms JV is already working on doubling annual cannabis production to 150,000 kg with the ability to further increase expansion to 330,000 kg via other greenhouses. In addition, Village Farms is busy building up a domestic U.S. network of land in Virginia, North Carolina, South Carolina, Colorado and Texas to grow hemp to extract hemp-based CBD oil.Analysts only target the company generating $230 million in 2020 revenues providing for substantial upside as additional cannabis and CBD supplies reach the market including recent expansion into higher margin branded products. Village Farms falls into the group of stocks with more upside having not been hyped this year due to the Citron report.TipRanks’ data shows a bullish camp backing this cannabis player. The ‘Strong Buy’ stock has amassed 4 ‘buy’ ratings in the last three months, with no 'hold' or 'sale' ratings. The 12-month average price target stands tall at $31.76, marking nearly 284% in return potential for the stock. (See Village Farms stock-price forecast and analyst ratings on TipRanks)Medicine Man (MDCL)As the year started, Medicine Man hardly had a visible business in the cannabis sector. The company only generated 2018 revenues of $9.4 million while ending the year with only $3.4 million in current assets.The stock started the year trading at just above $1 and currently trades above $3 after reaching $4 as recently as September. The main driver of the stock price was an acquisition spree to snap up assets in Colorado following new regulations via the passing of HB19-1090 allowing for the consolidation of the industry via outside investors such as Medicine Man Tech.Over the course of six months since the passing of the bill in May, Medicine Man Tech. has bought a dozen companies pending approvals not expected until early 2020. The company forecasts the businesses generating 20% EBITDA margins with a goal of reaching 30% margins via collaborative growth and economies of scale.The major problem with the story is the lack of visibility of the financials from all of pending deals. The company reports Q3 result on November 11, but none of these businesses will be on the books yet. The stock still isn’t well known by the general investing public so any success by Medicine Man Tech to consolidate these businesses into a high margin business would reward shareholders. (Get TipRanks' free stock analysis report on Medicine Man)To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Earnings season is in full swing, and investors are busy parsing the reports to pinpoint compelling investments. But finding the right investment requires data – how is the stock performing, and how has it performed over time; what macroeconomic events are impacting the stock; what are Wall Street’s analysts saying about it?In short, there’s an enormous amount of data out there to mull over and deciphering it all can be intimidating to say the least. That’s where TipRanks.com comes in. TipRanks uses natural language algorithms to sift through the market data and analyst reports on over 5,500 publicly traded stocks, to cut through the confusion and present a clear picture for investors. This allows investors to see at a glance which stocks are considered Strong Buys, which are trending up or down, and the success rate of the analysts’ recommendations.So, let’s take a dive into the market data on three stocks that went public in the last 12 months, which the analysts see as buying propositions, and all report earnings on Monday.Tencent Music Entertainment Group (TME)We’ve all heard of Tencent, the $45 billion Chinese tech-holding company, with its fist in a wide range of internet-related services. Tencent is one of the world’s largest social media companies, and the absolute largest gaming company. But today, we’re talking music. Tencent Music is a spinoff of the parent company and a joint venture with Spotify. The joint company offers several music streaming apps in the Chinese market, attracting more than 700 million users and 120 million paying subscribers. TME IPO’d in December of 2018 and gained 9% in its first day of trading.The numbers underscore an important fact about the world’s internet markets: China is underappreciated. Just because government policy keeps the Chinese market mostly closed to Western reach, it doesn’t mean that Chinese internet companies should be ignored. China is home to 1.4 billion people, about 18% of the world’s population. It’s a huge market, rapidly urbanizing and gaining wealth, with a ravenous demand for digital products.All of this explains TME’s Q2 performance. The company added over 2.5 million users, saw revenues make a double-digit gain to $859 million, and beat the EPS forecast with 10 cents per share. It was a strong performance, and the forecast for tomorrow is in-line with it. EPS is expected to remain stable, at 9 cents (the same forecast which was beaten in Q2), while revenues are expected to rise to $909.7 million.Analysts are impressed with Tencent Music. Bo Pei, of Oppenheimer, writes, “Despite being the largest digital music platform in China, TME is still in the early stage of monetization with a subscription paying ratio (4.8%) substantially lower than that of global peers, which provides it with plenty of growth opportunity… TME is investing to build its exclusive content library... In the long-term, we see TME as an industry integrator with clear strategic vision.” Bo gives TME a $17 price target, suggesting a 21% upside. (To watch Pei’s track record, click here) Alex Yao, a 4-star analyst with JPMorgan, is also bullish on China’s largest music streaming company. He says looking forward, “We believe such a strong net adds momentum will persist into coming quarters as the strategy is replicable and under management control. We expect TME’s music sub net adds acceleration to ease investor concern on music monetization and it should drive share price upside potential.” His $18 price target implies room for a 28% upside to the stock. (To watch Yao’s track record, click here) Overall, TME’s Strong Buy consensus rating is based on 3 Buys and 1 Hold given in the last three months. The stock trades for $14, making it a bargain considering the upside, and the average price target of $16.75 indicates 19% upside potential. (See Tencent Music stock analysis on TipRanks) New Fortress Energy LLC (NFE)In the industrialized West, we take electricity for granted. But New Fortress Energy reminds us that power is expensive, and large parts of the world do not have reliable electrical energy services. NFE aims to change that. In practice, NFE’s commitment to providing reliable energy has made the company the “go-to” player in North America’s natural gas industry. From converting power plants to run on cleaner-burning fuel, to building LNG import facilities, to growing its presence as a mid-stream player in the gas market, NFE has a well-established footprint in the natural gas industry.While it’s a small company with a market cap of $2.8 billion, NFE is ambitious and focused on expansion. In Q2, the company secured financing for $180 million, allocated to the completion of the Jamalca CHP plant in Jamaica. The new credit deal, along with some $250 million the company has in cash-on-hand, should allow the project to finish on time. Another fuel handling facility is expected to go on-line in Puerto Rico during the fourth quarter.Revenues in Q2 were up from $26 million to $39.8 million, although the company is still operating at a net loss. For Q3, expectations are for the loss to reach 23 cents per share. Despite the losses, future prospects for the company are bullish. BTIG analyst Gregory Lewis lays out the details: “The company has positioned itself to benefit from the on-going secular natural gas demand story which is being driven by cheap and abundant natural gas in North America, and increasing demand for reliable and cleaner power in emerging countries. At its core, NFE is an infrastructure company with a number of LNG import terminals already in the Caribbean and plans to build another four terminals around the world in the medium term.” Lewis gives NFE a $30 price target, suggesting an upside of 80%. (To watch Lewis’ track record, click here) Lewis’ outlook on the stock is somewhat more bullish than the average. NFE has a Strong Buy consensus rating, based on 4 Buys and 1 Hold. The average price target, $22.80, implies an upside potential of 36%. (See New Fortress Energy stock analysis on TipRanks) Village Farms International, Inc. (VFF)With VFF, we get into the world of cannabis. Specifically, the world of newly legalized cannabis markets. Village Farms International started out as a producer of year-round, high-quality, greenhouse vegetable – tomatoes, cucumber, peppers – in the North American market. With the legalization of cannabis in Canada and hemp in the US, the company has moved into the new market, seeing it as a way to break free of the produce sector’s traditionally low margins.Since entering the cannabis market, VFF has expanded marijuana production, and is looking at developing an annual capacity of 150,000 kilograms. This comes at the cost of reducing the legacy produce, but the company accepts that as the price of profitability. At the same time, the produce legacy has set VFF up with a network of greenhouses and experienced agriculturists.In Q2, the results showed in the Canadian cannabis company’s margins. The cost of growing came in at just 49 cents per gram, while the company was able to sell product at $3 per gram – an 83% gain. In addition to Canadian cannabis, VFF is expanding into hemp production in the US, taking advantage of the 2018 Farm Bill that legalized hemp at the Federal level and created a market for hemp-derived CBD extracts. Village Farms expects to enter the CBD market next year.Roth Capital analyst Scott Fortune sees the potential in VFF. He writes, “VFF's cannabis opportunity through JV Pure Sun Farms (PSF) continues to remain robust as it executes on ramping production to 150,000 kg, expanding distribution to the large provinces, and gaining market share as the low-cost leader.” Fortune’s $29 price target implies an eye-popping upside of 226%. (To watch Fortune’s track record, click here) Bottom line – VFF is a small company, even compared to some of the other new cannabis companies. The market cap is just $437 million, but the company has the advantage of a legacy growing network from its original produce business. In the last three months, VFF has received 4 analyst reviews, and all were Buys. So, the consensus is unanimous: the stock is a Strong Buy. Shares are priced low at just $8.87, but the real story here is the upside potential: the average price target of $31.76 suggests room for a 258% upside. The whopping-high upside is typical of the new companies in the cannabis market, where the newly legal status has created wide-open avenues of opportunity. (See Village Farms stock analysis on TipRanks)
-- Company to Report its Third Quarter 2019 Financial Results Via News Release on Thursday, November 14, 2019 at Approximately 5:00 p.m. ET -- VANCOUVER , Nov. 8, 2019 /PRNewswire/ - Village Farms International, ...
When it comes to Canada’s $2.2 trillion stock market, you would think that foreign investors would be lining up to get a piece of the action. However, this is not the case. Despite seeing a record breaking performance this year, investors are looking to the U.S. as a safe haven.“At times of risk — macro, geopolitics or trade — investors sell assets from other areas and focus on the safety of U.S. equities. Canada, being a small weight in many global benchmarks, is easy to ignore and from an equity point of view is thought of as acting closer to emerging markets, given its resource exposure,” Purpose Investments’ Chief Investment Officer, Greg Taylor, commented.That’s not to say that compelling investment opportunities can’t be found in the Canadian market. Using TipRanks’ Best Stocks to Buy tool, we were able to pinpoint 3 Canadian names that each boast more than 50% upside potential from the current share price.If that wasn’t promising enough, each stock has received enough bullish calls over the last three months to give it a “Strong Buy” consensus rating. Canada Goose (GOOS)While the luxury outerwear company has seen shares slip 9% year-to-date, some analysts argue that Canada Goose is just getting started on its growth trajectory.One of the biggest questions on investors’ minds is how the company will maintain sales when a single coat can put you out $1,000. RBC Capital analyst Kate Fitzsimons believes that GOOS has room to expand and gain market share as the company only has 12 stores currently.Bearing this in mind, the addition of five new stores in China as well as its efforts to expand its product lineup could drive substantial top-line gains. In the next few years, GOOS wants to be known as a three-season brand that offers knitwear, spring wear, lighter-weight down jackets and footwear on top of its heavier coats.While there have been concerns regarding GOOS’ ability to sustain its strong margins, Fitzsimons is “comfortable with GOOS's margin expansion story as the Direct mix shift buoys GMs all in, pricing and supply chain efficiencies flow through, and, on the channel front, considering GOOS's superior productivity levels”. She added, “We see Canada Goose's premium positioning, technical emphasis, strong and authentic heritage, customer loyalty and seasoned management team as key assets”. As a result, the analyst kept her Buy rating and $57 price target. (To watch Fitzsimons’ track record, click here)The rest of the Street appears to agree with the analyst. 4 Buy ratings and no Holds or Sells assigned over the last three months add up to a ‘Strong Buy’ analyst consensus. With an average price target of $61.16, the upside potential comes in at about 50%. (See Canada Goose stock analysis on TipRanks) Village Farms (VFF)Village Farms started off growing vegetables like cucumbers, peppers, tomatoes and other produce. Now, the company has shifted its focus towards a higher margin industry, cannabis. As part of this shift, VFF entered into a joint partnership with Emerald Health Therapeutics (EMH) that became known as Pure Sunfarms (PSF).Following the recent receipt of its packaging license to sell cannabis products directly to provincial or territorial wholesalers and authorized private retailers, VFF appears poised to become a major player in the Canadian cannabis space. PSF has proven in its most recent quarter that it leads the market in terms of growing low cost per gram marijuana, with the cost coming in at $0.65 to be exact.In addition, VFF stands to benefit from the Cannabis 2.0 market, which refers to the legalization of vapes, edibles, beverages and concentrates in Canada. To capitalize on this growing market, it’s building a 25,000 sq. ft. extraction facility at its new Delta 3 location, which could be operational by 2020 depending on license approval.The company is also gearing up for the hemp CBD opportunity in the U.S., with its first hemp CBD harvest this fall expected to produce about 500,000 pounds of biomass.All of this contributed to Roth Capital analyst Scott Fortune’s conclusion that VFF “is just beginning to disrupt the Canadian cannabis industry as the low-cost, validated quality price leader with one of the largest greenhouse footprints in production and new capacity coming on line." With this in mind, the analyst reiterated his Buy rating while raising the price target to $29. This new price target suggests huge upside potential of 249%. (To watch Fortune’s track record, click here)Similarly, other Wall Street analysts take a bullish approach when it comes to VFF. With 100% Street approval in the last three months, the stock is a ‘Strong Buy’. Not to mention its $32.61 average price target indicates 284% upside potential. (See Village Farms stock analysis on TipRanks) Trilogy Metals (TMQ)Trilogy Metals is a development stage base metals company that explores locations throughout the Ambler Mining District in Alaska, U.S. With its key assets including a 100% owned Arctic deposit and Bornite deposit called the Upper Kobuk Mineral Projects (UKMP), TMQ represents a unique opportunity for investors wanting to increase their exposure to copper.Its flagship high-grade copper development project, Arctic, is located in Alaska which is considered a low-risk jurisdiction. Back in February 2018, the company announced positive PFS results for Arctic, based on a conventional 10,000 tpd truck and shovel, single open pit mine and mill design. With the Alaskan government’s support of the construction of a road which would join Arctic with current infrastructure, TMQ could see an improvement in production efficiency. On top of this, its partnership with NANA, a Regional Native Corporation to ensure all local stakeholders participate in the socio-economic benefits of the project, is an important factor to be considered.While all of this is promising, Raymond James’ Brian MacArthur points out that TMQ could see significant gains based on its South32 option agreement. South32 can pay around $150 million for half of Trilogy’s assets in Alaska, which could reduce its capital requirements for Arctic.This prompted MacArthur to initiate his coverage with a Buy and set a CA$3.75 price target. “We believe Trilogy is an attractive base metals development opportunity that offers investors exposure to copper, one of our preferred longer-term commodities, through its flagship Arctic project,” he explained. (To watch MacArthur’s track record, click here)As only Buy ratings have been assigned in the last three months, TMQ earns a ‘Strong Buy’ consensus rating. Additionally, analysts think that shares could soar 82% over the next twelve months. (See Trilogy Metals stock analysis on TipRanks)
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.