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WEED.TO - Canopy Growth Corporation

Toronto - Toronto Delayed Price. Currency in CAD

24.45

-0.97 (-3.82%)

At close: 4:23PM EST

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Previous Close	25.42
Open	25.25
Bid	24.53 x 0
Ask	24.54 x 0
Day's Range	24.41 - 25.68
52 Week Range	24.41 - 70.98
Volume	1,678,381
Avg. Volume	1,844,232

Market Cap	8.505B
Beta (3Y Monthly)	4.11
PE Ratio (TTM)	N/A
EPS (TTM)	-6.22
Earnings Date	Nov 14, 2019
Forward Dividend & Yield	N/A (N/A)
Ex-Dividend Date	N/A
1y Target Est	40.57

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News

Press Releases

Benzinga
Cannabis Short Sellers Up Another $190M In November
It’s been a brutal year for cannabis investors, with the ETF MANAGERS TR/TIERRA XP LATIN AME (NYSE: MJ ) down another 1.2% this month ahead of a series of major cannabis earnings reports this week. Cronos ...
InvestorPlace
The Best Pot Pick Could Actually Be Aurora Cannabis Stock
Everybody and his uncle was buzzing about Canopy Growth (NYSE:CGC) stock last week -- and given how it shot up like Evel Kenievel out of a cannon, I can't blame them for their enthusiasm. At the risk of burying the lead, as they say, I'd like to direct your attention to the equally important player in the pot-biz game: Aurora Cannabis (NYSE:ACB) stock.Source: Jarretera / Shutterstock.com You see, a stock doesn't have to be the star of the show in order to be hugely profitable. In fact, an argument could be made that ACB stock has the potential to fly farther than other cannabis stocks; it could even double or triple within the next year. When the Weed Market's Growing, Look to ACB StockWhenever the marijuana sector has a great week (like it did last week), suddenly everyone is bullish on the future of cannabis and its decriminalization. As for me, I've been predicting the spread of legalization for a while.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Large-Cap Stocks to Give a Wide Berth Confirming my outlook are the University of Oregon's Keaton Miller and Indiana University's Boyoung Seo, who contend in a research paper that "As voters shift toward supporting the legalization of cannabis, in part due to a desire for increased tax revenues, it appears likely that more jurisdictions in the United States and elsewhere will remove long-standing prohibitions on the substance."Last year, the cannabis craze was all about Canada's full adult-use legalization law going into effect in October. This year, it's all about Cannabis 2.0, in which Canada's edibles, topicals, and concentrates markets are finally clearing legal hurdles. In anticipation of this, Canada's collective salable cannabis-product inventory reached a whopping 390,000 kilograms in August.Investors should exercise a measure of caution, though, as Health Canada spokesperson Tammy Jarbeau explained that "[i]t will be prohibited for cannabis extracts, including cannabis vaping products, to contain anything that may cause injury to the health of the user when the cannabis product is used as intended or in a reasonably foreseeable way."With that caveat in mind, it's fine to pick up some shares of CGC, but I really like Aurora stock in the current market environment. According to the company's projection, Aurora Cannabis' production capacity will achieve an astounding 700,000 kilograms (or thereabouts) by the middle of 2020. Sometimes, More Is MoreIn terms of quantity, Aurora's got pot and plenty of it. I fully expect the Canadian market -- and the global cannabis market, really -- to expand substantially in 2020. Someone's got to meet that demand, and Aurora Cannabis has a production capacity matched by very few players in the canna-biz game.Of course, product quality is just as important as quantity, and Aurora continues to lead the pack when it comes to product offerings in the era of Cannabis 2.0. With production centers on both the east and west coasts of Canada, and given Aurora's collaborations with the likes of Touche Bakery, WG Pro-Manufacturing, and JACEK Chocolate Couture, this cannabis company will be practically unbeatable in the coming year.Terry Booth, Aurora's CEO, appears to be preparing for an all-out assault on the cannabis market in Canada and beyond:"Aurora has built industry-leading cannabis capacity and scalability supported by our consumer research and retail distribution bench strength to launch this next generation of cannabis products into the Canadian market. We are ready to ship product as soon as the regulations allow and are excited for consumers and patients to finally have access to a greater selection of product forms. We are already working on expanding the range of new products beyond those that will initially launch."That's big talk, yes, but Aurora's got the wherewithal to back it up. Personally, I'm looking forward to the new product rollouts as Aurora steps up its game and grabs market share in the emerging edibles niche. The Takeaway on Aurora Cannabis StockIt's perfectly fine to own both Canopy Growth shares and ACB stock in your pot-folio (I just made that word up), but you'll still need to decide how much to allocate towards each company. As I see it, Cannabis 2.0 is here and Aurora remains a leader in this niche-within-a-niche: the product's ready to go, and the shares are ready to soar.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Give a Wide Berth * 7 Potential New Stocks That Should Not Go Public * 5 Chinese Stocks to Buy Surging Higher The post The Best Pot Pick Could Actually Be Aurora Cannabis Stock appeared first on InvestorPlace.
Barrons.com
Marijuana Company Cronos Group Reports Earnings Tomorrow. Here’s What to Expect.
As they start reporting September quarter sales this week, analysts fear the industry’s sales may have dropped from the June period. In Monday morning trading on Nasdaq, Cronos stock was down 4% at $8.18. BMO Capital Markets analyst Tamy Chen predicts the industry’s sales of recreational cannabis could have dropped 20% from June to September, as provincial wholesalers manage their inventories to deal with limited warehouse space and a retail bottleneck of too few stores.
Benzinga
Cannabis Countdown: Top 10 Marijuana Stock News Stories Of The Week
Cannabis Countdown: Top 10 Marijuana Stock News Stories of the Week Welcome to the Cannabis Countdown . In this week’s rendition, we’ll recap and countdown the top 10 marijuana stock news stories for ...
MarketWatch
MKM lowers quarterly estimates for Canopy Growth and Aurora Cannabis ahead of Thursday earnings
MKM Partners lowered its quarterly estimates for Canadian cannabis companies Canopy Growth Corp. and Aurora Cannabis Inc. , and said he expects neither company will show much improvement in sales when they report earnings on Thursday. Analyst Bill Kirk cited three reasons for the cuts, namely that inventory being held at provinces is weighing on shipments from manufacturers, pricing is falling and lower prices won't help shift product because legal weed is still way more expensive than black market product. "While net sales estimates have come down for both since the end of August (-18% for Canopy and -25% for Aurora), we believe there is still some risk to revenue estimates and EBITDA estimates (EBITDA estimate only down 8% for Canopy)," Kirk wrote in a note to clients. "With sequential growth suddenly stalling/declining, we believe P&L de-leverage will negatively surprise (costs planned for growth, but no growth)." That will cause the bulls to revisit the industry's expectations about how quickly companies can attain profitability. "For instance, Aurora is unlikely to be EBITDA positive by June 2020 as consensus expects," he wrote. Kirk lowered his sales forecast for Canopy's fiscal second quarter to C$95.4 million ($72.1 million) from a previous C$114.5 million and compared with the consensus of C$101.5 million. For Aurora, he lowered his fiscal first-quarter sales forecast to C$92.2 million from a previous C$98.0 million and consensus of C$89.7 million. Kirk rates Canopy as neutral and Aurora as sell. Canopy's U.S.-listed shares were last down 0.7% premarket, while Aurora was up 0.3%.
MarketWatch
Short sellers are increasing bets on cannabis stocks even after summer selloff
Short sellers have continued to build positions in the cannabis sector, even after a broad re-rating of risk following a steep summer selloff, according to financial analytics firm S3 Partners.
MarketWatch
Ex-Canopy CEO Bruce Linton joins U.S. cannabis company Vireo Health
Shares of Vireo Health International Inc. rocketed 26% Thursday, after the U.S. cannabis company said it has named cannabis entrepreneur Bruce Linton as executive chairman.
MarketWatch
Drake is trying to trademark Canada’s pot warning label, and may be in for a fight
Drake wants to trademark the Canadian warning label for weed in the U.S., according to a filing with the Patent and Trademark Office, but he may be in for a fight with his native country.
Benzinga
Report: Canopy Growth Trims Latin American Team As Region Struggles With Regulations
Canopy Growth Corp (NYSE: CGC), a Canada-based cannabis multinational, is laying off 15% of its workforce in Latin America, citing concerns around the region's regulatory infancy and the company’s intent to focus on near-term revenue-generating investments, according to a report by Marijuana Business Daily. The company has narrowed its Latin American workforce from 92 to 78 employees, Niklaus Schwenker, director of communications and strategy for Canopy Growth Latin America, reportedly said in an email. Canopy’s actions confirm the company shifted its priorities from market building to commercial sales and revenue-generating investments.
Yahoo Finance
CBD beverage founder: 'I want to be regulated'
Not nearly enough legislative ink has been spilled over the booming CBD industry, according to Benjamin Witte.
Benzinga
The Week In Cannabis: Drake And Tony Hawk Get In The Weeds, Linton Joins Vireo, And A Myriad Of Earnings
Drake and Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) partner up to launch a new cannabis company, More Life Growth Company. Tony Hawk release his own line of CBD recovery creams, Birdhouse CBD Balm, by Canna Hemp. Bruce Linton join Vireo Health International Inc (OTC: VREOF) as its new executive chairman.
Benzinga
Bruce Linton, Vireo Health CEO Talk Partnership, Next Steps
On Thursday, Bruce Linton was named executive chairman of multistate operator Vireo Health International Inc (OTC: VREOF). Vireo CEO and Founder Dr. Kyle Kingsley got the ball rolling with Linton days after the exec parted ways with Canopy. The deal was so close to completion months ago that Linton wore a Vireo shirt during a day of interviews.
InvestorPlace
Investors Should Use Other Metrics to Evaluate Cronos Group Stock
InvestorPlace's Mark Hake recently stated that Cronos (NASDAQ:CRON), which is down more than 67% from its 52-week high of $25.10, is severely overvalued, arguing that CRON stock is by far the most expensive of its Canadian cannabis peers with an enterprise value 58 times sales.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's fair enough. But before you write off investing in Cronos stock, I'd like you to consider another financial metric. It paints a slightly different picture. By the end, I think you might see things a little differently. Cash in the BankCronos completed its $300 million acquisition of Redwood Holdings after the end of its second quarter on June 30. It paid cash for $225 million of the purchase, with the rest came from newly issued Cronos Group stock. InvestorPlace's David Moadel discussed the positive aspects of Cronos' Redwood buy in August, suggesting that the move gives it an excellent entry into the hemp market and its various CBD-related product lines. It's not unlike the February 2019 acquisition by Tilray (NASDAQ:TLRY) of Manitoba Harvest, a significant player in hemp foods, for $316 million.Cronos reports its Q3 2019 results on Nov. 11. It will be essential to pay attention to the company's cash position. At the end of June, Cronos had $2.3 billion CAD in cash, cash equivalents and short-term investments of one year or less. It has no debt. * 7 Beverage Stocks to Stock Up On The company closed its acquisition of Redwood on Sept. 5. Its share price at that day's close was $11.58, which means it likely issued approximately 6.5 million shares of its stock for the $75 million stock portion of the deal. Add that to the 374.7 million shares outstanding at the end of June, and you get 381.2 million shares outstanding and a market capitalization of $2.8 billion based on a share price of $7.99.So, Cronos' market cap is 1.9 times its net cash position. Using the top six Cannabis stocks by revenue, here is how Cronos makes out compared to its peers. Top Six Canadian Cannabis Stocks by RevenueCompany Market Cap Net Cash MC/Net Cash Canopy Growth (NYSE:CGC) $6.7 billion $1.8 billion 3.7x Aphria (NYSE:APHA) $1.2 billion $61 million 19.7x Aurora Cannabis (NYSE:ACB) $3.6 billion -$243.2 million -14.8x Tilray $2.2 billion -$159.6 million -13.8x Cronos $2.8 billion $1.7 billion 1.6x Hexo (NYSE:HEXO) $626.1 million $80.7 million 7.8x Source: MorningstarNote: $1 CAD = $0.76 U.S. The Bottom Line on CRON StockI can already hear fans of Aurora and Tilray screaming bloody murder. How dare I use such an unfair metric that fails to take into consideration the fact that both of these companies used their stock as currency to grow their businesses?Cronos, on the other hand, chose to partner with Big Tobacco. Altria (NYSE:MO) owns 45% of Cronos and can increase that to 55% -- and Canopy did the same with Big Booze -- Constellation Brands (NYSE:STZ) owns 38% of Canopy and has the right to increase that to above 50%. To date, it appears that Cronos and Canopy's shareholders have the last laugh. After all, consider the former shareholders of MedReleaf, which was acquired by Aurora in July 2018. When Aurora announced the deal in May 2018, it was worth $3.2 billion CAD. Today, the 407.6 million shares MedReleaf shareholders would have received are worth $1.5 billion CAD, less than half the value at the time of the deal's announcement. In hindsight, cash would have been much nicer.More importantly, by getting a heavy hitter to shoulder some of the cost of growing its business, Cronos now has plenty of cash and industry experience to help it navigate the next stage of its growth. Since many cannabis players are likely to go out of business in the next 12-24 months, it ought to be comforting to Cronos shareholders that the company is sitting on so much cash.No. CRON stock is not severely overvalued.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Investors Should Use Other Metrics to Evaluate Cronos Group Stock appeared first on InvestorPlace.
InvestorPlace
7 Earnings Reports to Watch Next Week
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.U.S. stocks keep rising, with all three major indices at all-time highs. Those gains represent a welcome change in pattern for the market. After all, the fear just a few weeks ago was that history might repeat.Last year's fourth quarter saw equities plunge amid cyclical fears. The peak of last quarter's earnings season led to a 6% decline in major indices in just six sessions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis time has been different, however. Earnings reports have been well-received. Cyclical fears appear to have receded, as housing stocks continue to soar and even major industrials have gained nicely.That said, risks remain. The trade war remains unresolved. The U.S. presidential election is less than a year away, which combined with an impeachment process could increase volatility in the equity market. And with the U.S. economy now in an unprecedented eleventh consecutive year of expansion, fears that a recession is "due" can return at any time.Meanwhile, the earnings calendar might lack some of the market's biggest names -- but it's hardly empty. A number of key companies release earnings reports this week and next, as companies on the retail fiscal calendar report. Next week's reports look particularly important, as they include leaders from several key sectors. * 7 of the Best Internet Stocks to Buy More good news from those leaders can keep the rally going -- or, in one case, provide some hope for a sector that has been the worst in the entire market this year. But there are enough major companies releasing earnings next week to dim investor optimism if there's any sign of weakness. Rockwell Automation (ROK)Source: Shutterstock Earnings Report Date: Tuesday, Nov. 12, before market openRockwell Automation (NYSE:ROK) isn't the best-known name to report next week, but the company's fiscal fourth quarter report on Tuesday morning could move some of the market's most widely-held stocks.After all, industrial names have been some of the biggest beneficiaries of earnings season. General Electric (NYSE:GE) rallied nicely. 3M (NYSE:MMM) bounced back after a huge earnings plunge in April. Honeywell (NYSE:HON) has broken out to a new all-time high.Industrial stocks are gaining despite the fact that U.S. manufacturing clearly is in a recession. That seeming contradiction of weakening demand and higher stock prices makes Rockwell's guidance for fiscal 2020 an important data point.After all, investors clearly are pricing in a rebound for the group. And few companies have a better picture of forward demand than Rockwell, who serves manufacturers through both software and motor components and other products. If Rockwell's guidance is strong, that could confirm the rising investor sentiment toward many of its customers. But if Rockwell undercuts that sentiment, it could be a sign that many industrial stocks have rallied far enough -- or too far. D.R. Horton (DHI)Source: Casimiro PT / Shutterstock.com Earnings Report Date: Tuesday, Nov. 12, before market openHousing and construction stocks like D.R. Horton (NYSE:DHI) have been some of the market's best performers this year. DHI stock has gained 47.8% so far this year. It hasn't been alone. Shares of rival Lennar (NYSE:LEN) have increased 47%. The iShares U.S. Home Construction ETF (BATS:ITB), my pick for the Best ETF of 2019, is up 46%.Those gains alone would add import to and increase expectations for any earnings report from D.R. Horton, the country's largest homebuilder. But specific aspects of this release magnify its significance.After all, D.R. Horton will detail its outlook for fiscal 2020, which can move not just homebuilding stocks but residential construction suppliers and distributors. And that outlook comes at a critical point: housing-related stocks actually have weakened in recent weeks despite strength in the broad market. It's for this very reason Louis Navellier -- a savvy investor who made a name for himself picking undervalued stocks -- recommends that his subscribers buy "bulletproof" stocks.In less than a month, DHI shares have pulled back over 6%, and LEN almost 8%. The ITB ETF has retreated almost 5%. Either sentiment has weakened and/or valuation fears are starting to return. * 7 Beverage Stocks to Stock Up On Whatever the precise cause, the sector clearly looks a bit wobbly as the rest of the market gains. The outlook from D.R. Horton thus will either assuage investor fears or stoke them. Cisco Systems (CSCO)Source: Sundry Photography / Shutterstock.com Earnings Report Date: Wednesday, Nov. 13, after market closeCisco Systems (NASDAQ:CSCO) heads into Wednesday's fiscal first quarter report in a strong position. CSCO stock has rallied from an important pivot point on its chart, moving off a multiple bottom and above moving averages. There's a clear path for CSCO stock to continue its breakout to $50 and beyond.From a broader standpoint, CSCO seems to be one of the few value names left in a tech sector at all-time highs. The stock trades at less than 14x next year's EPS estimates, a seemingly soft multiple for a tech giant.Technically and fundamentally, Cisco stock can move higher. But Cisco needs to deliver on Wednesday afternoon -- and there's some sign of weakness in the industry. Fellow networking play Arista Networks (NYSE:ANET) plunged 24% last week after disappointing guidance for the calendar fourth quarter.A strong quarter from Cisco -- and, given Arista's stumble, a solid outlook -- would show that Arista's problems are specific to that company, and calm long-held investor worries about networking industry demand. That almost certainly drives Cisco shares higher, and given valuation and the technical setup could catalyze a longer rally.Anything less, however, and industry fears return, which almost certainly interrupts the recent bounce in CSCO stock. Canopy Growth (CGC)Source: Shutterstock Earnings Report Date: Thursday, Nov. 14, before market openCannabis stocks like Canopy Growth (NYSE:CGC) have had a disastrous 2019. CGC stock is down 63% from its 52-week high, and other pot stocks have fallen even further.The one piece of good news is that the earnings calendar provides the industry a chance to drive some sort of positive sentiment heading into 2020. Reports from Cronos (NASDAQ:CRON) before the open on Tuesday and Tilray (NASDAQ:TLRY) after that day's close precede Canopy's Thursday morning release.At this point, the three cannabis companies simply need to deliver any kind of good news. Commentary on pricing will be closely watched, as it's clear that investors are starting to price in oversupply in the Canadian market. Commentary on the regulatory front, where a backlog of applications has slowed industry growth, will be another focal point.But one question at the moment is whether even good news will be enough to drive a long-awaited rebound. Aphria (NYSE:APHA) posted back-to-back impressive quarters, including guidance for EBITDA profitability, yet APHA stock trades near the lows too. * 7 Under-the-Radar Retail Stocks to Buy Now As I wrote last month, I'm skeptical the bottom is in for CGC stock and other pot plays. But the sector at least has a chance to prove skeptics like myself wrong. Though as bearish as sentiment remains, it likely will take three monster earnings reports to do so. Walmart (WMT)Source: fotomak / Shutterstock.com Earnings Report Date: Thursday, Nov. 14, before market openThe dominance of Walmart (NYSE:WMT) in brick-and-mortar retailing means its results always are important. The company's sheer size makes it an indicator of the health of the U.S. consumer. Walmart's commentary on pricing moves grocery stocks like Kroger (NYSE:KR) and can impact the share prices of its suppliers as well.This time around, however, the report has a little extra significance. KR shares soared this week after a bullish forecast at its Analyst Day. Walmart's results could support that company's optimism -- or undercut that stock's gains.In contrast, shares of major consumer packaged goods suppliers like Procter & Gamble (NYSE:PG) and General Mills (NYSE:GIS) look a bit wobbly. Fears of pricing pressure and private-label penetration have dogged that group for some time, and Walmart earnings could re-ignite those worries. To counter these fears, buy dividend-paying stocks that can thrive in most markets -- i.e. bulletproof stocks. Louis has spent the past two decades helping people like you and I beat the market, and he doesn't intend to stop now. Want to know what's on his buy list? Here's the secret.More broadly, this is a market at all-time highs in an economy that is almost solely reliant on the U.S. consumer for growth. Weakness in Walmart results would raise new questions about the health of that consumer, and thus the health of the economy going forward.Meanwhile, for Walmart stock itself, the report looks important. WMT stock sits at an all-time high at the moment after a 28% gain. The company's successful e-commerce strategy has positioned it as a legitimate competitor to Amazon (NASDAQ:AMZN). In other words, expectations are rising. Walmart has to meet those expectations to keep its rally going. But how it does so may have an effect on many other stocks in the market. Nvidia (NVDA)Source: Hairem / Shutterstock.com Earnings Report Date: Thursday, Nov. 14, after market closeChipmaker Nvidia (NASDAQ:NVDA) has basically no room for error on Thursday afternoon. Save for a stumble by Texas Instruments (NASDAQ:TXN), results across the sector have been strong. A poor quarter from Nvidia followed by beats from Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) raises real concerns about market share and competition.With NVDA stock approaching a 52-week high heading into the report, those concerns are not priced in. The third quarter earnings report a year ago, when NVDA stock plunged on weak guidance, shows what the downside can be if Nvidia disappoints. * 7 Stocks to Sell Before They Roll Over That said, I wrote this week that I expect Nvidia stock to keep rallying. The strength in the sector suggests Nvidia should comfortably beat expectations. And this has been a second-half story all year. Increasingly it seems like that story is going to play out. But if it doesn't, NVDA stock is going to see some ugly trading on Friday. JD.com (JD)Source: testing / Shutterstock.com Earnings Report Date: Friday, Nov. 15, before market openChinese retailer JD.com (NASDAQ:JD) heads into its third quarter report in a strong position. JD stock finally has broken through resistance at $32 and now trades at a 15-month high. At 27x forward earnings, valuation still isn't prohibitive, and a strong quarter can keep the rally going.Like NVDA, however, JD has little room for error. Larger rival Alibaba (NYSE:BABA) delivered an impressive quarter last week. Pinduoduo (NASDAQ:PDD) is nipping at JD.com's heels. The market understands that an apparently slowing Chinese economy may have an impact. But any market share losses will be untenable with JD stock at a 52-week high.This also is a case where the reaction to earnings might be as important as the results themselves. PDD has skyrocketed in recent weeks. BABA is at a six-month high. Investors clearly are coming around to Chinese stocks. A good quarter from JD.com and a good gain for its stock would suggest that sentiment can continue to improve. Anything less could be a problem for JD shares -- and for other Chinese names as well.Legendary investor Louis Navellier has opinions of his own. Louis believes investors should buy bulletproof stocks that can thrive in any market.To prepare for a shifting market, Louis suggests steps that every investor should take right now:* Follow the money:Buy stocks that are seeing massive cash infusions.* Protect your portfolio: Invest in market-beating stocks with Louis' simple trick.* Go risk-off: Strong fundamentals are more paramount than ever.Louis' track record is enviable and stocked with winners, including the following: * 274% gain in semiconductor stock Nvidia * 134% gain in defensive plays * 123% gain in a personnel service stockTo learn how to invest in this shifting market, and to recieve Louis' top stock picks, click here.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy With 100% Upside Potential * 7 Reasons to Buy Microsoft Stock Now * 3 Consumer Staples Stocks to Buy for Conservative Investors The post 7 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
InvestorPlace
Has Aurora Cannabis Stock Bottomed Out? Not So Fast!
Aurora Cannabis (NYSE:ACB) stock has slowly cratered this year. Shares have fallen from a 52-week high of $10.32 on March 19 to $3.73 at the close Nov. 6. High hopes for the "cannabisphere" have not lived up to expectations.Source: Shutterstock Despite oversupply, Aurora plans to ramp up production more than 3-fold to 500,000 kilos/year. Yet this is much more pot than the market can bear. With continued operating losses, the road to profitability seems miles away. But with the stock price bottoming out, we are getting closer to a reasonable price for ACB stock. * 7 Beverage Stocks to Stock Up On With the next earnings release expected next week, is now the time to take a position? Not so fast! Aurora Cannabis stock has fallen far, but additional downside could be on the table.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Headwinds Continue to Plague ACB StockHeading into earnings, Aurora Cannabis stock faces many issues. Cowen's Vivien Azer is bearish on upcoming results. She believes a bulk of last quarter sales were a one-time event. Last quarter, Aurora sold C$20 million worth of pot into the wholesale market. Assuming this event is not repeated, she anticipates sales to fall 24% quarter-over-quarter.Azer is also concerned with the company's convertible debt due in March. In prior analysis, I have discussed Aurora's convertible debt issue. The current share price is far below the conversion price. Because of this, the company will need to find alternative ways to refinance the debt. Aurora could issue new convertible notes. They could also raise equity. Either situation will be dilutive for ACB stock.Analyst consensus for future revenue is also falling. Previously, Seeking Alpha analysts estimated sales of $775.2 million for the fiscal year ending Jun 2021. This has since fallen to $652.7 million.But this could be darkness before the dawn. Next month is the start of "Cannabis 2.0," when marijuana products such as edibles and beverages hit Canadian shelves. The rollout of these high-margin products could be a saving grace for the pot space.Will "Cannabis 2.0" move the needle for ACB stock? Unlike peers such as Hexo (NYSE:HEXO), Aurora is not as tied to the recreational space. Their efforts have been focused on the prosaic medicinal end of the business. This has allowed them to diversify globally. As InvestorPlace's Tom Taulli recently wrote, Aurora has made big inroads in Europe and Latin America.Building a business in more regulated medical marijuana may not be as sexy as a cannabis-infused drink. But long-term, it may provide the company with stability to withstand Darwinian competition in the pot game. Aurora Stock Cheaper Than Peers (But It's No Bargain)Using the enterprise value/sales (EV/Sales) metric, ACB stock is cheaper than many of its pot stock peers. Aurora trades at a trailing twelve-month EV/Sales of 25.37. In comparison, Canopy Growth (NYSE:CGC) trades at a current EV/Sales ratio of 18.63. Pot stocks like Aphria (NYSE:APHA) trade at much lower valuations (EV/Sales of 4.6). But Aurora Cannabis stock remains cheaper than Cronos Group (NASDAQ:CRON). CRON continues to trade at a high EV/Sales ratio (335.56).For the pot stocks, trailing EV/Sales may not be the best metric. Applying EV/Sales to estimated FY21 revenue gives us a EV/Sales valuation of 6.3. Canopy's future EV/Sales ratio (using FY21 estimates) is 7.7. This also demonstrates the market giving ACB stock a discount relative to peers like CGC.But using forward sales is not an exact science. With revenue estimates continuing to fall, it's tough to see where Aurora and its peers will be a year from now.On an absolute basis, Aurora Cannabis stock is expensive. Recently, InvestorPlace's Will Healy compared Aurora's price-to-sales (Price/Sales) ratio to that of the S&P 500. According to Healy, the average Price/Sales ratio for the S&P 500 is 2.2. By comparison, Aurora trades for 20 times current revenue.This premium is unsustainable. With the pot industry troubles, I am doubtful ACB stock will "grow into its valuation." Shares have more downside from here, even if projected growth continues. Bottom Line: Wait For Cannabis 2.0 to Play OutIt's tough to predict short-term moves in the pot space. Most of the current news is priced into shares. ACB stock is no exception. Investors understand the company's headwinds, and have acted accordingly. But in the next few months, the industry's prospects could change.If Cannabis 2.0 turns out to be the gold mine it has been touted as, Aurora Cannabis should reap some benefit. While not as levered to edibles and beverages as its peers, improved demand for legalized marijuana (in whatever shape or form) will quell fears of oversupply.The fortunes of Aurora stock could turn on a dime, so don't short this stock. Don't buy it either, considering the murky waters in the short-term. Keep pot stocks like ACB on your radar, but take your time before making a move.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Has Aurora Cannabis Stock Bottomed Out? Not So Fast! appeared first on InvestorPlace.
InvestorPlace
Winter Is Make or Break for CGC Stock
Pot stocks have fallen out of favor among investors over the past year as worries about legalization issues and intense competition hurt the industry as a whole. However, despite the negative sentiment regarding the marijuana sector, most agree that the industry is poised to deliver explosive growth over the next few years. That's especially true if the U.S. eventually legalizes the drug at the federal level.Source: Shutterstock Those issues coupled with concern about operations has sent Canopy Growth (NYSE:CGC) markedly lower this year. CGC stock is down more than 60% from its April highs above $50 per share as many question its direction and whether it can execute on its future growth plans. CGC's CEO DramaEarlier this year Canopy Growth stock was hit hard by news that its founder and CEO Bruce Linton had been ousted as the firm's partner, Constellation Brands (NYSE:STZ), took the reigns at CGC. Now, Linton's co-CEO Mark Zekulin is serving as an interim CEO while the firm looks for a replacement, at which time Zekulin plans to depart as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe new CEO could be the push CGC needs, especially considering he or she is expected to be named before the end of the year. This winter is a crucial time for Canopy Growth stock as the firm's consumable pot products will hit the shelves in Canada for the first time. Edibles and CGC StockIn mid-October, Canada completed another phase of marijuana legalization dubbed "cannabis 2.0." This phase allows the sale of consumables, a market that Canopy is primed for. However, as distributors are required to give regulators 60 days notice before bringing their goods to market, cannabis-infused drinks and snacks won't be on sale until mid-December.This week Canopy revealed its lineup of cannabis-infused drinks, many of which come with a THC dosage of 2.5 milligrams. This is lower than many drinks on the market right now in the U.S. that boast doses of 100 milligrams, but according to CGC management consumers may prefer a more measured approach.Cohen analyst Vivien Azer also praised CGC's low-dose approach saying it would allow consumers to have more than one drink, much like they would if drinking alcoholic beverages. CBD MarketAnother big step for Canopy this winter will be the firm's push into the sports market with CBD products. Earlier in October, Canopy Growth acquired a majority stake in BioSteel Sports Nutrition in an effort to establish a line of infused athletic products.While very little usable data on the growing market for CBD among athletes is available, a study by Brightfield Group shows that U.S. CBD sales could reach $23.7 billion by 2023. By the end of 2019, the CBD market is expected to be worth $5 billion, a 700% increase from where it stood in 2018.There has been a lot of discussion over whether the BioSteel purchase was worth it considering the firm's financial situation. However, if it's able to use the firm's leverage among athletes go gain a larger slice of that ever-expanding pie, it could be a boon down the road. Cost ControlMoving forward, CGC will need to get its spending under control and give investors a clear path toward profitability before it can make its way back into their good graces. That will begin with a new CEO who's able to execute on the firm's edibles strategy now that cannabis 2.0 is upon us.The first big step in CGC stock's recovery will be the naming of a new CEO that investors trust to right the ship. Most are expecting the new name to fit in with Constellation's management style, as the firm has all-but taken control of Canopy at this point. Next will be the success or failure of Canopy's edibles lines. The firm suffered a few missteps last year when Canada began its first wave of marijuana legalization, so investors will be looking for a smooth transition into phase 2. Actual sales figures won't be available until the firm's Q4 results are out, and even then the snapshot will be limited. However if CGC is able to establish a strong position in Canada's edibles market, it could be a sign of better times to come in 2020.As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Winter Is Make or Break for CGC Stock appeared first on InvestorPlace.
Investor's Business Daily
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Investor's Business Daily
Marijuana Stocks: Canopy Growth Joins Forces With Drake, Amid Signs Of Slower Dealmaking
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MarketWatch
UPDATE: Canopy Growth ex-CEO Bruce Linton to become executive chairman of Vireo Health, stock soars
Bruce Linton, the former co-chief executive and founder of Canadian cannabis company Canopy Growth Corp. , has been named executive chairman of Vireo Health International Inc. , a doctor-led multi-state cannabis company based in Minneapolis. Linton will join the company's board, will work closely with a Vireo CEO and Founder Kyle Kingsley and lead the company's capital markets activity and partnerships and shape its strategy. Linton will be compensated in the form of incentive warrants, to be paid in three tranches, according to Vireo. The company's U.S. listed stock was last up 27% on the news, but has fallen 36% in the last three months, while the ETFMG Alternative Harvest ETF has fallen 32% and the S&P 500 has gained 23%.
Benzinga
Bruce Linton Named Vireo Health Executive Chairman
Vireo Health International Inc (OTCMKTS:VREOF) has named Bruce Linton its new executive chairman . Linton is best known as the co-founder of Canopy Growth Corp (NYSE: CGC ), the company that dismissed ...
Reuters
Drake signs up for Toronto marijuana venture
Under the deal, the multi-Grammy award winner will take a 60% stake in a subsidiary of stock-market listed Canopy Growth , which produces cannabis in nearby Scarborough, Ontario. U.S.-listed shares of Canopy , which last year drew a major investment from Corona-brewer Constellation Brands, rose around 3% in early trading. Drake is just the latest of a list of artistes and celebrities who have partnered with Canadian cannabis companies since the country approved the use of recreational marijuana.
Benzinga
'Unmatched Cannabis Experience': Canopy Growth Partners With Drake To Launch More Life Growth Company
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced Thursday it has partnered with a Canadian rapper and singer Drake for the purpose of launching a new cannabis company More Life Growth Company. The new company will be located in Drake’s hometown of Toronto, and it will produce cannabis focusing on wellness and personal growth. As part of the deal, Canopy Growth has issued shares to certain entities that are controlled by Drake, upon which Drake has obtained a 60% ownership of More Life Growth Company, while the remaining 40% retained Canopy Growth.
MarketWatch
Canopy Growth to launch wellness company with rapper Drake
Canadian cannabis company Canopy Growth Corp. said Thursday it is planning to launch a cannabis wellness company with local rapper Drake based in his hometown of Toronto. No financial details were available, but the company plans to share some in the coming weeks. Canopy's U.S.-listed shares rose 3.2% premarket but are down 28% in 2019, while the ETFMG Alternative Harvest ETF has fallen 23% and the S&P 500 has gained 23%.
CNW Group
Canadian icons come together: Canopy Growth and Drake launch new cannabis wellness company
TORONTO and LOS ANGELES , Nov. 7, 2019 /CNW/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (WEED.TO) (CGC) and Aubrey Drake Graham ("Drake") are pleased to announce that they have entered into agreements to launch the More Life Growth CompanyTM, a fully licensed producer of cannabis based in Drake's hometown of Toronto, Canada . "When we first began talks with Drake we were extremely inspired by and aligned with his vision to bring best-in-class cannabis products to the world," said Mark Zekulin , CEO, Canopy Growth Corporation.