|Bid||11.78 x 800|
|Ask||12.00 x 1100|
|Day's Range||11.56 - 12.94|
|52 Week Range||8.50 - 18.10|
|Beta (3Y Monthly)||4.32|
|PE Ratio (TTM)||159.73|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Village Farms International (VFF) has rapidly changed the narrative and outlook for the company after one financial outlet called for it to plummet to $1 per share.While it has faced some significant headwinds over the last year or so, the company has emerged from them with a solid growth plan in place, with the bulk of it being in relationship to cannabis and CBD.The company is rapidly retrofitting existing greenhouses to meet the fast-growing demand for pot and CBD, and is poised to continuing growing at a rapid pace.Why its strategy to grow quickly is the right oneWhat Village Farms has going for it on the production side of the business is its existing large square footage in its greenhouses from growing vegetables. In West Texas alone it has 5.7 million square feet in greenhouse facilities it is retrofitting to grow marijuana in.At this stage of the game, I believe that's the correct strategy to use, otherwise the cannabis market would rapidly outpace the company because of it entering the market later than many of its competitors.I also like the fact it's not satisfied in growing its production capacity modestly, but is committed to growing it significantly. I think the smaller producers are going to struggle to survive once the initial stage of low-margin recreational pot has matured. They'll either go out of business, get acquired by larger competitors looking for more supply, or stagnate in growth, managing, at best, to retain their current sales.Even with its growth potential, on the cannabis side of the business it will take until 2021 before it's able to achieve an estimated 150,000 kilograms in production. Its larger competitors are already at or beyond that production level, or will reach it by the end of 2019. As of today, the company will be able to produce about 75,000 kilograms annually through 2021, before it completes its Delta 2 greenhouse.While the capacity at these greenhouses, based upon approximately a combined 2.1 million square feet, won't match the efficiency of many of its competitors, I don't see that as being a problem if it manages to keep its costs low, which appears it will be able to.Its challenge and the uncertainty on the cannabis side of the business is what the market will be like once it finally reaches 150,000 kilograms in production. How much of the market will be fully supplied is the issue there. I'm thinking mostly in terms of the recreational pot market here.In the first quarter Village Farms saw Pure Sunfarms - which it has 50 percent ownership in - generate revenue of $10.8 million, up almost $8 million from the $2.8 million in the prior quarter of production. Net income came in at $4.3 million, while adjusted income was $3.2 million.Ready to become a U.S. hemp giantWhere the biggest potential lies concerning Village Farms is in the U.S. hemp business, which is a big part of the fast-growing CBD market. It think this will vastly outperform its cannabis business over the long term, based upon growth projections from Brightfield Group, which projects CBD sales to grow to $22 billion globally by 2022.Village Farms is uniquely positioned to take advantage of this because of its exposure to Texas, which recently passed a law that will allow the company to retrofit its massive 5.7 million square feet of greenhouse space in the state for the purpose of growing hemp.Because hemp is much easier and less expensive to grow than cannabis, it should be able to rapidly scale its U.S. operations. It has already planted 800 acres of hemp in three states, and should start to harvest sometime in the summer. This a part of one of its two hemp joint ventures it is part of.Along with that, it also has another joint venture where it will begin production on 120 acres in Colorado in 2019, and will expand that to 500 acres in 2020. That will bring outdoor production to 1,300 acres as it stands today.As for its greenhouses, it has already started to convert about half of its 1.3 million square foot greenhouse located in the Permian Basin for the purpose of cultivating and extracting CBD from hemp.With a licensing process having been implemented to cultivate and process hemp, the company will have to wait to apply for them until the State sets up a date to do so. That means it'll be a little longer before the effects of the positive catalyst will have an impact on the performance of Village Farms; at least as it relates to its existing greenhouses.ConclusionIn 2017 Village Farms generated $158 million in sales, primarily from its vegetable business. That business will remain in place for now, but it isn't clear if it will decline in sales as the company utilizes an increasing amount of its existing greenhouse square footage for hemp production.As the company is today, it will continue to enjoy consistent sales from vegetables as it transitions a significant amount of its business to growing hemp and cannabis.The good news is it has a steady stream of revenue from its predictable vegetable sales, is increasing cannabis revenue, and is aggressively going after the CBD market, starting with outdoor production as it waits for licensing approval for its indoor operations in Texas.I've seen one analyst that projected 2021 sales to climb to about double what the company generated in 2017, but I think, based upon its indoor and outdoor production pace, that number is probably going to be a lot higher than the estimated $320 million projected.For these reasons, I think Village Farms as a lot more room to increase its value and share price over the next couple of years. The only uncertainty in my view is how it does with cannabis sales from its Canadian operations. But even if that is modest at best, CBD should be the major revenue driver once it launches its indoor hemp production in Texas.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.Read more on VFF: This Cannabis Stock Is Running Full Speed Ahead More recent articles from Smarter Analyst: * Hexo Has Difficult Days Ahead, Analyst Says * Square (SQ) Growth Slowing, But Evercore Remains Bullish on the Stock * This Analyst Sticks with His Buy Rating on Aphria (APHA) Stock, But Trims Price Target * Cannabis Stock Village Farms (VFF) Has a Lot Going for It
Village Farms will grow greenhouse hemp in Texas after the state's governor signed into law a bill legalizing the cultivation of hemp and CBD products.
VANCOUVER, June 11, 2019 /PRNewswire/ - Village Farms International, Inc. ("Village Farms" or the "Company") (VFF) (VFF) today announced that Governor Greg Abbott has signed into law Texas House Bill 1325 (the "Texas Hemp Legislation"), which effectively legalizes the cultivation of hemp and processing of hemp and hemp-derived products, including cannabidiol (CBD) in the State. As previously announced, in anticipation of the passage of the hemp legislation in Texas, Village Farms has begun conversion of half of its 1.3 million square foot, ultra-high-tech Permian Basin greenhouse (which utilizes the Company's proprietary GATES® technology) for cultivation of high-CBD hemp and CBD extraction. The Texas Hemp Legislation will require licenses for both the cultivation and processing of hemp and Village Farms plans to apply for the requisite licenses as soon as it is permitted to do so. No time frame has yet been provided by the State of Texas for the licensing process.
My original complaint regarding Village Farms International (VFF) was that the company wasn’t doing enough in the rapidly growing cannabis market. The latest moves has the company moving quickly toward CBD oil in the U.S. making the original joint venture to grow cannabis in Canada as only a small part of the growing cannabis picture.Moving AheadIn the last few months, Village Farms has gone from a vegetable farmer with a small joint venture in Canada focused on cannabis to an expanded Canadian cannabis operation plus multiple hemp plans in different states in the U.S. The company now has outdoor hemp plans in four U.S. along with the ongoing conversion of an existing greenhouse in Texas to hemp cultivation.The recent passage of Texas House Bill 1325 sets up Village Farms to convert existing greenhouses in Texas. The company is already moving forward with 635,000 square feet of growing area in the Permian Basin. The greenhouse will grow and extract hemp-based CBD.The company has an incredible 5.7 million square feet of greenhouse facilities in West Texas. This initial work is focused on only half of the 1.3 million square feet facility in the Permian Basin.These plans follow an additional plan with Arkansas Valley Hemp to form a joint venture called Arkansas Valley Green and Gold Hemp that the company owns 65%. The JV plans to start production on ~120 acres along the Arkansas Valley in Colorado this year and expand to 500 acres in 2020. This deal adds to the additional plans to cultivate hemp outdoors in Virginia, North Carolina and South Carolina.These facilities will allow Village Farms to sell CBD oil on a wholesale basis by early next year.Surging Cannabis RevenueIn Q1, Village Farms saw the Pure Sunfarms 50% owned JV grow net income to $4.3 million in the quarter, though adjusted EBITDA was only $3.2 million. The operation saw total sales jump to $10.8 million, up from $2.8 million in the initial quarter of production.Pure Sunfarms only recently started cultivation in the second half of the 1.1 million square foot Delta 3 greenhouse leading to 75,000 kgs of annual capacity by mid-2019. The company expects the existing 1.1 million square foot Delta 2 greenhouse to double projected annual production in 2021 to 150,000 kgs.These initial results are very promising for a company focused on moving existing greenhouse operations to cannabis cultivation. The good news is that Village Farms already has quarterly revenues of $37.3 million and is quickly shifting from vegetables to high-value cannabis crops.TakeawayThe key investor takeaway is that Village Farms is firing on all cylinders now by utilizing existing greenhouses to convert to high-value cannabis crops while also pursuing new outdoor growing opportunities. The major red flag is the Citron Research report questioning the connections with Pure Sunfarms, but the stock just appears too cheap at $13.50 with a market valuation of only $669 million.The opportunity exists to double and further double cannabis production in Canada while further expanding CBD oil sales via multiple venues moving forward towards 2020 sales. One analyst has revenue reaching $320 million in 2021, but the number appears very low based on all of the expansion plans at Village Farms. Use this selloff from $18.00 to $13.50 to own the stock with the knowledge that some red flags exist on the story.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on VFF: Cannabis Stock Village Farms Is on the Right Track More recent articles from Smarter Analyst: * Village Farms (VFF) Has a Lot Going for It * Hexo Has Difficult Days Ahead, Analyst Says * Square (SQ) Growth Slowing, But Evercore Remains Bullish on the Stock * This Analyst Sticks with His Buy Rating on Aphria (APHA) Stock, But Trims Price Target
These two up-and-coming Canadian marijuana stocks are flying high right now, but one appears to be the better pick over the long run.
Village Farms International Begins Conversion of Half of 1.3 Million Square Foot Permian Basin GATES® Facility for Hemp Cultivation and Extraction Following Passage of Texas Hemp Law
Village Farms International Expands U.S. Outdoor Hemp Cultivation and CBD Extraction Program to Colorado Through New Joint Venture, Arkansas Valley Green and Gold Hemp
NASDAQ:VFF) today announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has received a Standard Processing License from Health Canada for its 1.1 million square foot Delta 3 greenhouse facility (the "Processing License"). The Processing License permits Pure Sunfarms to extract and process cannabis at the Delta 3 facility, which will enable the development and manufacture of products derived from the cannabis plant, including cannabis oil, as well as concentrates and edibles. Pure Sunfarms will require an additional amendment to its sales license to sell cannabis oil, which it expects to be distributing to provincial/territorial distributors and private retailers by the fourth quarter of this year.
The Supreme Cannabis Co. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) and Blissco Cannabis (CSE: BLIS) (OTCQB: HSTRF) (FRA: GQ4B:GR) have entered into an arrangement agreement under which Supreme Cannabis will acquire all of the issued and outstanding common shares of Blissco not already owned by the company by way of a court-approved plan of arrangement under […]The post Cannabis Stock News Daily Roundup May 17 appeared first on Market Exclusive.
VANCOUVER, May 16, 2019 /PRNewswire/ - Village Farms International, Inc. ("Village Farms" or the "Company") (VFF) (VFF) applauds the passage yesterday by a unanimous vote of House Bill 1325 ("HB 1325" or "the Bill") today by the Texas State Senate. HB 1325 is a bi-partisan bill that, if passed into law, will establish a Texas Hemp Program, providing a regulatory and licensing framework for the cultivation and processing of hemp, as well as for products made from hemp, including cannabidiol (CBD). On April 24, 2019, HB 1325 was unanimously passed by the Texas State House of Representatives.
Despite a nearly 15% post-earnings pop, there's little substance in this marijuana stock's latest operating results.
NEW YORK, May 14, 2019 -- Pomerantz LLP is investigating claims on behalf of investors of Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF)..
On CNBC's "Mad Money Lightning Round," Jim Cramer said he would hold off for now from Village Farms International Inc (NASDAQ: VFF ). He is not a buyer of Sailpoint Technologies Holdings Inc ...
It's that time again! "Mad Money" host Jim Cramer rings the lightning round bell, which means he's giving his answers to callers' stock questions at rapid speed. Want to take a deep dive into Cramer's world?