|Bid||46.48 x 0|
|Ask||46.50 x 0|
|Day's Range||45.38 - 47.22|
|52 Week Range||31.81 - 76.68|
|Beta (3Y Monthly)||5.15|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 14, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||71.08|
Canopy Growth shares are getting walloped today just over a week after Canopy's Co-CEO Bruce Linton was ousted from the job. Yahoo Finance's Zack Guzman & Emily McCormick, along with Media Entrepreneur and Author Charreah Jackson discuss.
On Monday, OrganiGram (OGI) reported its third-quarter earnings. Following the company's earnings, we reported how it performed in the third quarter. To learn more, read OrganiGram’s Third-Quarter Earnings. Interestingly, OrganiGram stressed that the growth would be heavily driven by retail stores opening in Ontario and Quebec. The company stated that legalizing edibles and derivative products […]
(Bloomberg) -- With four quarters of profitability under its belt, Organigram Holdings Inc. is an anomaly in the Canadian cannabis market.Organigram has higher margins than most of its peers and one of the lowest costs per gram in the industry even though it grows indoors, generally considered the most expensive method of production. Chief Executive Officer Greg Engel attributes this to its ability to get higher yields from its pot plants than companies that grow in greenhouses, as well as its automated packaging lines.“We built a facility and designed a facility that was very focused on high-quality product because we felt there was a market opportunity that was sustainable,” Engel said in an interview at Bloomberg’s Toronto office.Organigram’s streak of profitability comes as the industry undergoes a period of significant upheaval. CannTrust Holdings Inc., previously considered one of the more reputable pot companies, plunged 48% last week after Canadian regulators said it grew cannabis in unlicensed areas of its greenhouse, forcing it to halt all sales and shipments of its products.That came less than a week after Canopy Growth Corp. fired co-CEO Bruce Linton amid shrinking margins and a C$323 million net loss in its most recent quarter.Lower ValuationMoncton, New Brunswick-based Organigram, meanwhile, reported its fourth consecutive quarter on Monday of positive adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda. Revenue of C$25 million ($19 million) missed estimates and gross margin fell to 50% from 60% in the previous quarter, but Eight Capital analyst Graeme Kreindler said he views this as an “isolated event” related to a temporary change in cultivation protocols and the timing of shipments to provinces.Organigram said it cost 95 cents to produce a gram of dried flower in its most recent quarter. That was up from 65 cents in the previous quarter but still compares favorably with C$1.42 at Aurora Cannabis Inc. and $1.48 at Tilray Inc.No other large Canadian pot producer has managed to post such a long string of positive Ebitda. However, although it’s one of the best-performing pure-play pot stocks this year, up 64%, its valuation as measured by its price-to-sales ratio is well below those of its largest competitors.Engel is unperturbed. “At the end of the day, the worst thing that can happen to a company is you’ve got an artificial stock price that you can’t sustain,” Engel said.Competitors also spend a lot on stock promotion, he said. This “may in the short term be helping their stock price, but I’m not sure that’s sustainable without ongoing spending,” he said.The problems at CannTrust and Canopy signal a shakeout in an industry that’s still maturing nine months after Canada legalized recreational pot. Organigram is lucky because it had its wake-up call early, said Engel.The company had to recall several lots of its medical pot in late 2016 and early 2017 after it was found to contain an unapproved pesticide. Engel, who was CEO of Tilray Inc. at the time, was hired after the recall to “make a major cultural shift,” he said.“As a result of that recall, we had monthly ongoing inspections by regulators, and historically the industry was always complaining or defensive about the inspections,” Engel said. “My approach was to embrace them. At the end of the day it’s a partnership, not an adversarial relationship.”In the interview, Engel shared his views of the nascent industry:Beverages and EdiblesOrganigram isn’t being coy about its desire for a partner that can help it develop cannabis-infused beverages, similar to Constellation Brands Inc.’s investment in Canopy, Tilray’s partnership with Anheuser-Busch InBev SA or Hexo Corp.’s joint venture with Molson Coors Brewing Co.Organigram has developed a rapid-onset technology that will allow its drinks to take effect within 10 to 15 minutes, similar to alcohol, and has also created a flavorless cannabis powder that can be added to any beverage.“We wanted to go to these negotiations offering as much as possible,” Engel said. Organigram is seeking a partner from the alcohol industry that can help it develop beverages infused with THC, the cannabis compound that gets you high. It’s also seeking a consumer packaged goods partner for drinks infused with CBD, a non-intoxicating substance that’s thought to have health and wellness properties.BiosyntheticsEngel hopes Organigram’s investment in Montreal-based Hyasynth Biologicals Inc. will also help it lure a partner. Hyasynth is developing large-scale biosynthetic production of cannabinoids, or the active compounds found in cannabis. This method, which uses yeast to produce the compounds in a lab, is cheaper than extracting them from plants and will help lower production costs for products like beverages, edibles and vape pens, said Engel.U.S. Market“We’re very actively looking at the CBD market in the U.S.,” where the substance is legal at the federal level as long as it’s derived from hemp with very low THC content, Engel said. Organigram doesn’t plan to grow its own hemp but is looking at a range of possibilities, including investments in existing brands, products and companies.Corporate GovernanceOrganigram has a fully independent board of directors, a rarity in the cannabis sector. The CEO sees good corporate governance as essential to a well-run pot company.“This is an industry that’s still very much moving from founders and executives being chairmen or multiple insiders on boards, and I think some of the challenges we’ve seen in the industry have been because of a lack of governance,” he said. “You have to have independent governance that has oversight and holds management accountable.”To contact the reporter on this story: Kristine Owram in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, ;David Scanlan at firstname.lastname@example.org, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Canadian cannabis companies have leapt onto U.S. stock markets, dazzling investors. Here's a rundown of industry facts and how to invest in marijuana stocks.
Overall, the cannabis sector was weak in the first ten days of July. There was a stream of negative news about the sector. Earlier this week, CannTrust (CTST) reported that Health Canada found non-compliant operations at one of its facilities. According to the press release issued by CannTrust, the company was growing cannabis in rooms […]
Chief Financial Officer Mike Lee told Jefferies analyst Ryan Tomkins that earnings before interest, taxes, depreciation and amortization could be negative for the next 2 fiscal years.
(Bloomberg) -- Cannabis investors banking on profitability in the second half of the year may have another thing coming: More losses at best, and maybe a surprise stack of writedowns.Although pot stocks have enjoyed a heady start in 2019 due to global marijuana legalization efforts and the burgeoning use of CBD as a wellness product, backers are starting to judge their investments by profitability instead of hype, and patience is wearing thin. Of the five largest Canadian pot companies, only Cronos Group Inc. is expected to report adjusted net income by the final quarter of the year, according to Bloomberg data.Instead of profit, writedowns related to unfinished inventory may be in the offing for some Canadian companies. That has some investors voting with their feet, moving out of Canada and into the U.S., where the marijuana companies are generally performing better despite a patchwork of state-by-state regulations.“It’s symbolic that the Canadian guys have really not been able to deliver on some of their expectations and the American companies have,” said Greg Taylor, chief investment officer at Purpose Investments Inc. and manager of the Purpose Marijuana Opportunities Fund.Until recently cannabis companies could get away with losing large sums of money as long as they said the right things about their future growth prospects. But the abrupt firing last week of Bruce Linton, co-chief executive officer of Canopy Growth Corp., indicates that things have changed.Canopy ChiefLinton’s departure came after the company lost C$323 million in the quarter ended March 31, prompting frustration at alcohol giant Constellation Brands Inc., which owns about 36% of Canopy and holds a majority of its board seats. Constellation CEO Bill Newlands said publicly he was “not pleased” with the results.“Now investors are starting to judge the companies a little differently,” said Charles Taerk, CEO of Faircourt Asset Management, which runs the cannabis-focused Ninepoint Alternative Health Fund. “They’re starting to say, ‘Wait a second, how are they profitable and you’re so far from profitable?’”A few standouts like Organigram Holdings Inc. have proven that it’s possible to achieve positive earnings before interest, taxes, depreciation and amortization as the one-year anniversary of legal recreational use in Canada approaches. Aurora Cannabis Inc. also recently reaffirmed its expectation of positive Ebitda in the second quarter of calendar 2019.Still, those that have achieved positive Ebitda aren’t being rewarded yet. Organigram trades at a price-to-sales ratio of 25, well below Canopy at 65 and Cronos at 197. Overall, cannabis stocks have outperformed so far this year, with the ETFMG Alternative Harvest ETF adding 24%, and its Canadian counterpart, the Horizons Marijuana Life Sciences Index ETF, rising 23%.Writedown WorriesThere’s also the fear of writedowns related to inventory not ready for sale, which could be of low quality and ultimately not usable for either the dried flower or extraction market, said BMO analyst Tamy Chen.Some companies -- including Canopy, Aurora and Aphria Inc. -- also carry high levels of goodwill due to their “aggressive pace of acquisitions at prices above book value,” increasing the likelihood of a writedown, said Bloomberg Intelligence analyst Kenneth Shea.This year could also see a rise in the amount of litigation related to “loose corporate governance” at pot companies, said Morgan Paxhia, co-founder of cannabis hedge fund Poseidon Asset Management LLC. CannTrust Holdings Inc. is the subject of several class-action lawsuits after it was found by Canadian regulators to have grown marijuana in unlicensed spaces. Its stock has lost 39% since Monday’s open.It’s not all bad news. The second half of the year will involve a few catalysts for Canadian pot companies, including the addition of up to 50 more stores in Ontario and the legalization of edibles and vapes. However, analysts say the impact of these changes won’t be felt in a meaningful way until 2020.That’s one of the reasons Taylor of Purpose Investments is making a play outside of Canada. He’s been buying U.S.-focused pot stocks like Harvest Health & Recreation Inc. and Curaleaf Holdings Inc.“We’ve moved our portfolio more to the U.S.,” he said. “They’ve been coming at it more as operators and they’re putting up much better numbers.”To contact the reporter on this story: Kristine Owram in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Morwenna Coniam, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The collaboration is supposed to create an educational content module that would deal with the issue of medical cannabis in work environments. The initiative is expected to launch at the beginning of 2020. The program will focus on breaking stigma in the workplace that surrounds cannabinoid-based medicines, according to Spectrum Therapeutics.
Analysts say nation will turn a new leaf, changing federal law within a few years, as cannabis industry expected to grow big time over next decade.
Aurora's focus on medical marijuana patients and international expansion could put these three companies on its buyout radar.
SMITHS FALLS, ON and TORONTO, July 10, 2019 /PRNewswire/ - Spectrum Therapeutics ("Spectrum"), the medical division of Canopy Growth Corporation (WEED.TO) (CGC) (the "Company" or "Canopy Growth") is pleased to announce a partnership with the Canadian Mental Health Association ("CMHA"). The initiative, a first of its kind for a leading cannabis company and a national mental health organization, will see the CMHA in collaboration with Spectrum Therapeutics develop an educational content module related to cannabis in the workplace as part of CMHA's Not Myself Today workplace mental health program.
SMITHS FALLS, Ontario and TORONTO, July 10, 2019 /PRNewswire/ -- Spectrum Therapeutics ("Spectrum"), the medical division of Canopy Growth Corporation (WEED.TO) (CGC) (the "Company" or "Canopy Growth") is pleased to announce a partnership with the Canadian Mental Health Association ("CMHA"). The initiative, a first-of-its-kind for a leading cannabis company and a national mental health organization, will see the CMHA in collaboration with Spectrum Therapeutics develop an educational content module related to cannabis in the workplace as part of CMHA's Not Myself Today workplace mental health program.
Cannabis stocks fell across the board Tuesday, led by CannTrust Holdings Inc. in a continued response to the news that the Canadian regulator has seized its cannabis after finding it was growing in unlicensed rooms.