24.88 -0.01 (-0.04%)
After hours: 7:55PM EDT
|Bid||24.62 x 1300|
|Ask||24.80 x 4000|
|Day's Range||24.39 - 26.10|
|52 Week Range||24.39 - 59.25|
|Beta (3Y Monthly)||3.38|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Bruce Linton, Canopy Growth's (CGC) (WEED) former co-CEO, has acquired more stock in the company. Overall, analysts favor a “buy” rating on the stock.
Hexo Corp (NYSE:HEXO) continues to feel the impact of its underwhelming Q3 earnings, a slower than expected recreational cannabis market in Canada, and concern over corporate leadership in the industry. Hexo stock is down 13% from Monday's open, and is now trading right around the $4 mark.Source: Shutterstock This continues a slide that began after HEXO hit an all-time high of $8.28 in April, and worsened after another quarter of red ink and the departure of its co-founder from his executive role. HEXO Underwhelmed in Q3On June 12, HEXO reported Q3 earnings and failed to impress investors. The company missed badly on revenue ($13 million CAD compared to the $14 million analysts were looking for) and the red ink was worse than expected, with a quarterly loss of $7.75 million -- up from a loss of $1.97 million the previous year. The company announced plans to enter the U.S. CDB market through a joint venture with Molson Coors Brewing Co (NYSE:TAP), but that is fast becoming a crowded field and investors weren't overly impressed. Hexo stock dropped over 8% on the results.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks That Could See 100% Gains, If Not More HEXO is expected to report Q4 earnings in September. Investor Nervousness Around Cannabis IndustryMany investors piled onto Canadian cannabis stocks over the past year, looking for the legalization of recreational pot in Canada to result in a boom market. The reality has been a little harsh for some.Slower than expected initial sales of recreational pot led to cannabis stocks tumbling in the days after recreational marijuana use was legalized in Canada last October. There were no line-ups at Canadian cannabis retailers and product shortages were reported as a result of glitches in distribution and production. While the situation has improved, recreational pot still isn't exactly flying off the shelves in Canada.Adding to investor unease, 2019 has seen considerable drama among Canadian cannabis companies, and HEXO has not been immune. In January, the CEO of Aphira (NYSE:APHA) left the company amid allegations of improprieties regarding acquisitions in Latin America. On July 10 the CEO and co-founder of Canopy Growth (NYSE:CGC) was forced out of his role, and didn't leave without igniting controversy over his dismissal.Just days later on July 18, HEXO's co-founder stepped down from his role of Chief Brand Officer, although he retained his seat on the board.The most recent headlines were centered around CannTrust Holdings (NYSE:CTST), which became the center of Health Canada and Ontario Securities Commission investigations over illegal cannabis cultivation at one of its facilities. The fallout there has included the firing of the CannTrust Holdings CEO and the forced resignation of the company's co-founder and chairman. The series of leadership shakeups and missteps has certainly not helped cannabis stocks in 2019, although the corporate transitions are expected to put many of these companies in stronger positions for the long term. How Does Hexo Stock Performance Compare to Cannabis Cohorts?Even after this week's 13% drop and a decline in Hexo stock price of around 40% since it reported Q3 earnings in June, HEXO is performing reasonably well on the year compared to its fellow Canadian cannabis stocks. Year-to-date growth is 6.5% for HEXO, while Aurora Cannabis (NYSE:ACB) is up 11% and Aphira has gained over 8%.However the biggest of the Canadian cannabis producers Canopy Growth has lost 13% since the start of the year. CannTrust Holdings -- the company that kicked off the latest round of concern about the industry -- has dropped some 64% so far in 2019. * 7 Retail Stocks to Buy on the Dip The question for HEXO investors is whether the company's Q4 earnings are going to going to be as underwhelming as Q3's were. If so, the Hexo stock price slump that started in April could well continue through the fall. And HEXO doesn't have far to drop before it goes into the red for 2019…As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Hexo Stock Continues to Feel the Effects of Cannabis Industry Issues appeared first on InvestorPlace.
You don't have to look far to see evidence that publicly traded marijuana companies are incredibly volatile. And that assessment is the same for the top players like Canopy Growth (NYSE:CGC). Just in this month alone, Canopy Growth stock has dropped nearly 23%. And since the end of April, shares have shed slightly more than half its market value.Source: Shutterstock Without any hesitation, it's a sickening decline. Just to make matters worse, stakeholders no longer have the buffer that CGC stock was up on a year-to-date basis. At least at the time of writing, that's no longer true. Since January's opening price, the weed company is now looking at a more than 5% loss.As Noel Gallagher formerly of Oasis fame might ask, where did it all go wrong for CGC stock? According to The Motley Fool's Sean Williams, one of the reasons is the company's goodwill.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn a non-financial context, goodwill actually sounds like a good thing. Certainly, we can use more of it, from in our daily interactions all the way up to in the highest political offices. But from an investor's point of view, goodwill doesn't always live up to its linguistic implications.According to an Associated Press report on the subject, goodwill is the premium that companies place on a bought-out organization's actual assets, such as property, plants and equipment. In other words, goodwill represents vague concepts, such as reputation or corporate culture.This premium is fine during a bull market. But to Williams' point, under iffy circumstances, excessive goodwill may lead to a write-down of its assets. And for a pot investment like Canopy Growth stock, a write-down is the last thing it needs. Why Goodwill Isn't So Bad for CGC StockWilliams makes a compelling argument why you should avoid Canopy Growth stock. Although I'm still bullish on weed, I understand where he's coming from. And especially if you're a conservative investor, I would second his assessment. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Moreover, the Associated Press prepared a great argument for why investors should fear blue-chip S&P 500 companies with excessive premiums for intangibles. Back in the summer of 2016, the news agency wrote that goodwill represented $2.5 trillion of the index's balance sheet. For context, that's roughly 12% of U.S. gross domestic product.Thus, we arrive at a logical argument. If excessive goodwill is bad for storied power players, it must be downright terrible for CGC stock. If we're strictly looking at the financials, then of course, you shouldn't expose yourself to Canopy Growth stock.But let's also remind ourselves that legal marijuana isn't exactly logical. More often than not, companies like CGC are narrative-driven affairs fueled by emotions.That's a far different take from S&P 500 organizations. Specifically, the reason why excessive premiums on intangibles are undesirable for blue chips is that their markets are limited. For example, a tech firm can only sell so many computer chips. If such companies take a hit on goodwill, then it may severely impact pre-tax earnings. Unsure of how they will recoup the losses, observing investors may head for the exits.But with Canopy Growth stock, we don't know what the potential limits are. For right now, the actual limits are whatever the Canadian market can support, which admittedly is not much.But what if we have the long-shot event where the U.S. legalizes marijuana at the federal level? I'd say for CGC that at that point, goodwill isn't a liability, it's a bonus. Canopy Growth Stock Is All About the ReachAt the end of the day, here's why Canopy Growth stock and its ilk like Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON) and Tilray (NASDAQ:TLRY) have stunk up the markets. They're all reaching for the potential that international markets may provide.For example, Canopy has secured the right to buy Acreage Holdings (OTCMKTS:ACRGF) on a contingency. And that contingency is that the U.S. fully legalizes weed.Will it happen? I think it will, but I don't have a crystal ball. Clearly, most Canadian cannabis companies think so as well, which is why they're positioning themselves for that possibility. When they do this, their acquisitiveness naturally lifts goodwill.If political events don't go according to plan, probably all weed stocks will collapse. But if legalization does pan out -- and there's compelling evidence that it will -- CGC goes to the moon. That's the charm and the pitfall of marijuana.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Canopy Growth Stock Is Short on Fundamentals, But High on Potential appeared first on InvestorPlace.
On May 1, smokable hemp will be banned in North Carolina. The state passed the North Carolina Farm Act, removing smokable hemp from its permissible list.
Aurora Cannabis (NYSE:ACB) is stuck in a downward trajectory in the stock markets.Source: ElRoi / Shutterstock.com Weak quarterly earnings from Tilray (NASDAQ:TLRY) and a regulatory violation from CannTrust Holdings (NYSE:CTST) are scaring investors away from the cannabis sector. When Aurora reports its quarterly results on Sept. 15, what should investors expect? Strong Preliminary SalesAurora stock already reflects the upside quarterly results. On Aug. 6, Aurora posted preliminary fiscal fourth-quarter revenue in the range of $100 million CAD to $107 million CAD. This is up sharply higher from last year's $19.1 million in revenue. Fiscal Q4 2019 net cannabis revenue will be in the range of $90 million to $95 million. Every business segment is firing on all cylinders, with activity strong both internationally and in Canada. Medical and consumer markets will be up year-over-year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe fiscal 2019 revenue of between $249 million and $256 million still values Aurora stock at a price-to-sales in the 30 times range. Even though ACB stock fell from the $10 high in March to the $5.80 range recently, the markets expect strong revenue growth. Aurora cannot report any slowdown in sales nor may it miss on output. For Q4, the production available for sale will be in the upper end of the range between 25,000 kilograms and 30,000 kilograms. * 10 Marijuana Stocks to Ride High on the Farm Bill Despite a forecast for exceeding key performance indicators, markets are no longer bidding the stock higher. In the long term, gross margins will rise as will kilograms of cannabis sold. And as cash costs per gram produced falls, the company will earn a profit. For now, Aurora's adjusted EBITDA is not yet positive. Poor results from Tilray are creating an air of caution for Aurora ahead of its earnings report.CannTrust's disclosure of growing in unlicensed rooms shook away the inherent trust investors had for the company and for the sector as a whole. Health Canada is leaving CannTrust in the dark on what happens next. This is frightening. Regulations imposed on other cannabis firms might slow their growth rates. Canopy's Q1 Miss Hurts ACB StockOn Aug. 15, Canopy Growth (NYSE:CGC) reported an EBITDA loss of $92 million CAD in the first quarter. Even though harvest rose 183% quarter-over-quarter and over three-fold year-over-year, losses mounted. But Canopy wrote down a $1.18 billion CAD warrant liability. It has no other big costs ahead and expects to accelerate the rate of output from here.To shore up its balance sheet, Aurora upsized its credit facility by $160 million CAD to $360 million CAD. The company is bolstering its cash reserves to make an acquisition. Its chief financial officer Glen Ibbott said:The upsizing of our credit facility and broadening of the lending syndicate to include additional Schedule 1 Canadian Banks is further recognition that our best-in-class production facilities lead the industry. Access to this non-dilutive capital is a core funding source the company intends to utilize as it further executes on its strategic growth initiatives.As the valuation of other potential takeover targets falls, Aurora is positioned to buy them at a better price. Unfortunately, investors no longer have the patience to reward firms accumulating debt.Conservative investors tired of waiting for profits should avoid Aurora stock -- and cannabis stocks in general. Conversely, those betting on Aurora announcing a partnership with a major S&P 500 company would get rewarded if it happens. In the interim, Aurora Cannabis is working towards positive EBITDA.Last week, Aurora completed its acquisition of Hempco Food and Fiber for just over $60 million CAD. It issued over 2.6 million shares to pay for the deal. My Takeaway on ACB StockShorts have the upper hand on Aurora Cannabis stock for the time being. At a short float of 11%, the stock will not bounce back until sentiment improves. The stock may retest yearly lows in the coming weeks. If that happens, long-time investors will need to decide if they should buy more shares or keep holding it.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post When Exactly Will Aurora Cannabis Stock's Downtrend End? appeared first on InvestorPlace.
When it comes to Canadian cannabis companies, Hexo (NYSE:HEXO) doesn't always get the recognition it deserves. Hexo stock is often seen as the little brother to bigger players like Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC). Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut if you're looking to get in at the ground floor with a growing cannabis company, HEXO isn't a bad option. The company's sales have grown by massive amounts over the last 12 months. And the company predicted its revenue will double over the next quarter. Of course, many investors are hesitant given some of the recent uncertainty in the Canadian cannabis industry. Here are three things you need to know before investing in Hexo stock. The Cannabis Industry Is On Unsteady FootingThere's been a lot of volatility in the cannabis industry recently. First, there was the revelation that CannTrust (NYSE:CTST) was illegally growing marijuana in unlicensed rooms. And most recently, Canopy Growth released an abysmal earnings report showing that the company isn't as profitable as many investors believed. All of this has caused marijuana stocks across the board to fall.The cannabis industry is going to be huge, but it's still unclear which companies will be around to cash in on it. At this point, it's impossible to predict which company will fall victim to regulatory issues or plunging sales next. Hexo Stock Isn't Yet ProfitableHexo's most recent earnings report showed that the company achieved huge growth over the past year. In the third quarter of 2018, the company's sales were a mere CAD $1.24 million. This year, that figure came in at CAD $15.9 million.However, like many cannabis companies, Hexo is not yet profitable. The company may have earned more during the third quarter, but it also spent a lot more money. Its total operating expenses came to CAD $24.1 million during the third quarter.And the company is still held back by its production capacity. However, the company did open a 1-million-square-foot greenhouse in April so it will be interesting to see how that impacts the company during its Q4. HEXO Has Long-Term PotentialLooking forward, Hexo stock does have a lot of long-term potential. The company's sales are impressive and it currently holds a 30% market share in Quebec.And Hexo is actively working to improve its production capacity. In March, the company announced it planned to acquire the Toronto-based Newstrike Brands. Once these facilities are fully operational this will give Hexo an additional 470,000 square feet in production space. The company currently makes most of its revenue from recreational and medicinal marijuana sales. But its recent partnership with Molson Coors (NYSE:TAP) sets the stage for Hexo to lead the market in cannabis-infused beverages, once legalized. * 10 Marijuana Stocks That Could See 100% Gains, If Not More My advice with Hexo is to proceed with caution. The fundamentals look promising but there are just too many unknowns going forward. As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Will Hexo Stock Be Around for the Long Haul? appeared first on InvestorPlace.
Canopy Growth (NYSE:CGC) stock has taken a pounding. Shares are down nearly 25% in the past month, from $35.40 per share to $26.57 per share. The investor exodus from marijuana stocks has been brutal.Source: Shutterstock With excess supply outgunning demand, it's no wonder the bull case for pot stocks is tough to justify. But can investors expect a rebound in Canopy Growth stock? Let's take a closer look at the future of CGC shares. Recent Performance of CGC StockCGC released earnings on Aug. 14. For the quarter ending June 30, net revenue was C$90.5 million, down from C$94.1 million in the prior quarter. Overestimating demand for CBD oils and capsules, Canopy lost out while its peers such as Aurora Cannabis (NYSE:ACB) continued to grow revenue. As a result, CGC saw operating losses of C$123.1 million for the quarter.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite oversupply in the market, CGC and the other Canadian cannabis names continue to ramp up production. Canopy harvested about 41,000 kg during the quarter. But sales were only 10,549 kg or kg equivalents. Like Aurora Cannabis, Canopy has gotten ahead of itself in its fast drive to scale operations.But is short-term thinking not the way to go with cannabis stocks? As InvestorPlace contributor Luke Lango wrote on Aug. 19, "there is still visibility for Canopy to one day be a $50 to 100 billion company." Investors buying in now may see tremendous gains over a long time frame. * 10 Marijuana Stocks That Could See 100% Gains, If Not More What about investors with a shorter time horizon? Is upside priced in, or can investors get a discount? Let's take a look at the valuation of Canopy Growth stock. Valuation: Canopy Growth Stock Still FrothyCanopy Growth stock currently trades at a Enterprise Value/Sales (EV/Sales) ratio of 32.2. This is a discount to the current EV/Sales valuation of Aurora Cannabis. ACB trades at an EV/Sales ratio of 48.2 In terms of other peers in the "cannabisphere," Cronos Group (NASDAQ:CRON) continues to trade at a high valuation (EV/Sales of 150.7). Tilray (NASDAQ:TLRY) trades at a discount to CGC, with an EV/Sales ratio of 31.4.With the recent beat-down of Canopy Growth stock, shares are now a bargain compared to Aurora Cannabis. But, as I wrote earlier this month, Aurora Cannabis seems to have a better growth playbook. By focusing on the medical marijuana space, Aurora is the safer cannabis stock play. But an overlooked risk factor in both cannabis stocks is dilution. The use of share issuance and warrants to finance unprofitable operations minimizes upside for investors. CGC Stock Dilution Risks ContinueThe company's partnership with Constellation Brands (NYSE:STZ) was initially seen as a boost for CGC stock. But as the partnership progresses, it is clear the deal is terrible for shareholders. Constellation's $5 billion dollar investment included the issuance of warrants. These warrants came with certain covenants to protect Constellation from dilution. CGC's proposed buyout of Acreage Holdings (OTCMKTS:ACRGF) triggered a renegotiation of warrants. Due to this revision, CGC was forced to reprice the Tranche B warrants, resulting in a C$1.2 billion non-cash charge.As I wrote on July 29, dilution continues to be a problem for Canopy Growth stock. This dilution risks goes beyond the Constellation partnership. $600 million in convertible debt comes due in 2023. The conversion price is set at $48.18 a share. If CGC stock continues to languish under this strike price, the company will likely need to raise more capital once the notes mature.Of course, Canopy Growth could be profitable by 2023, and would have an easier time refinancing the debt. But investors should take the dilution risk seriously. With much of Canopy's potential priced into shares, dilutive capital raises could cap the stock's upside potential. Bottom Line: The Canopy Sell-Off Isn't OverCanopy stock is down more than 50% from its 52-week high. But shares could go lower. With Canadian market growth nonexistent, Canopy needs U.S. legalization fast in order to move the needle. With federal legalization still years off, CGC will likely continue to burn cash as it scales up operations. The partnership with Constellation Brands provides plenty of capital to keep the lights on. But the terms of the partnership give Constellation an easy way to takeover the company at a discount.So what's the call on CGC stock? Investors should continue to wait on the sidelines until the situation improves. If Canopy Growth stock falls another 50% (or more), there could be a buying opportunity. I do not deny that we are the early stages of the marijuana legalization story. But investors need to wait until hype has dissipated to consider stocks such as CGC.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 * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Down 25% in a Month, CGC Stock Could Fall Further appeared first on InvestorPlace.
[Editor's note: This story will be updated each week with new stocks and analysis. Please check back often for Mark's latest take on marijuana stocks.]In financial markets, there are certain levels that are more important than others with regards to the amount of supply and demand that exists at them. In addition, in financial markets, prices are always doing one of three things. They are going up, going down or staying the same.When understood and applied correctly, technical analysis of the marijuana stocks should be an illustration of these dynamics in this sector.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut technical analysis has a bad reputation and I can understand why. Most technical analysts don't seem to understand what they are supposed do. They mindlessly look at markets and try to identify patterns without understanding what they are supposed to mean.Even worse, some analysts are proponents of strange methods like Elliot waves and Gann theory. These methods are like Bigfoot. They are fun to talk about, but they aren't real. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Knowing where the important levels are can help you profit. For example, suppose you want to buy a stock when it gets to $5 a share. If there is support at $6 and you don't realize it, the stock could drop to $6 and then rally. You would have missed a nice profit for one dollar because you didn't know about the support. Marijuana Stocks to Watch: Canopy Growth (CGC)Canopy Growth (NYSE:CGC) has been trending lower since the end of April. Since then, the CGC stock share price has dropped by 50%.Even getting rid of idealistic Co-CEO Bruce Linton didn't convince investors that things would turn around. The bottom line here is that Canopy loses a lot of money and shareholders are starting realize this. The latest earnings report showed them posting a loss of CA$257 million.After that earnings report, the stock dropped from $32 to $28 and it has been trending lower since then.If it trades down to the $25.50 level, it may rebound a bit. That is where it found support in December and it is currently oversold. Cronos Group (CRON)Cronos Group (NASDAQ:CRON) grows and sells marijuana.After failing to break resistance around the $14 level, CRON stock has dropped by about 15%. It may keep going lower, because I don't see any well-defined support levels.This stock shows how resistance levels become support and then support becomes resistance. This is an amazing phenomena that few consider.Clearly the $14 level is important here. Those who sold it at $14 in September and December were happy when it went lower. But then, when it went higher, these sellers believe that they have made a mistake. They tell themselves that if it comes back to $14, they will buy it back. This demand will create support. * 11 Stocks Under $10 to Buy Now Support becomes resistance because when the stock goes lower, those who bought it at the support level are now losing money. They tell themselves that if it trades back up to the level, they will sell it to break even. This supply of stock at the level creates resistance. Aurora Cannabis (ACB)Aurora Cannabis (NYSE:ACB) is a Canadian-based company that grows and sells medical cannabis.Since failing at resistance at the $7 level, ACB stock has trended lower. There is resistance around this level because it was support in June. It the stock rallies back to $7, that level will probably be resistance again.If it continues to trend lower, it may find support around the $5 level. This is because this level was support in November and December.I believe that this company will continue to have difficulties. A large part of the valuation is Goodwill and intangibles assets. This is an issue because these values are extremely hard to calculate, and companies tend to overestimate them. In my opinion that is the case here. CannTrust Holdings (CTST)CannTrust Holdings (NYSE:CTST) is involved in the production and distribution of medical cannabis.Over the past month, there has been support around the $2 level. However, this level seems to be breaking, and this company is facing the very real prospect of bankruptcy. It is currently undertaking a strategic review.This company is now known on Wall Street as Can't Trust Holdings. CTST was recently found to be growing cannabis in unlicensed grow rooms that were literally hidden behind fake walls.Even worse, not only was the senior management aware of this, they seemed to be encouraging it. We know this because they were stupid enough to put it in emails that the Canadian Authorities have seized. * The 10 Best Marijuana Stocks to Buy Now Since then, the company has had to accept product returns and will soon be facing a series of lawsuits by investors who were defrauded. My guess is that other companies are also engaged in this type of illicit activity, and if so we will soon be hearing about them as well. Aphria (APHA)Aphria (NYSE:APHA) produces and sell medical cannabis.Investors should watch for resistance around the $6.30 level. That is because is was a support level from May through July. Remember, those who bought it at $6.30 are losing money, so they decide to sell it if it gets back to the level.However, this level may not be too significant, because it was recently broken to the downside before ACB stock went rallying back up through it. Once a level is broken, it can lose its some of its importance.If it does rally, there will probably be resistance again around the $7.50 level. This level was support in May and June, and then again earlier this month when the stock rallied on what was considered a good earnings release. Supreme Cannabis (SPRWF)Supreme Cannabis (OTCMKTS:SPRWF) produces and sells medical cannabis.SPRWF stock recently found support around the 90-cent level. This level was also support at the end of December.I like this company because its cannabis is sun grown, as opposed to being grown with artificial lights. This method is cheaper and results in a higher-quality product.The company has rallied by over 30% since updating its guidance. The numbers were very impressive. Full year 2020 revenue should be $150 million-180 million CAD. Prior estimates were around $130 million CAD. * 15 Growth Stocks to Buy for the Long Haul For the fourth quarter, the company sees revenue of $19 million CAD versus $3.5 million CAD a year ago. The Street was looking for around $13 million CAD. CURE Pharmaceutical(CURR)CURE Pharmaceutical (OTCMKTS:CURR) develops and manufactures drug formulation and drug delivery technologies.You don't need to be a Market Guru or Master Trader to see that the $4.50 level is important for CURR stock. It was resistance a year ago in August and September, and then again in March.After breaking to the upside in July, it became a support level. Now that the stock has traded lower, it has become a resistance level again.Knowing that there is resistance at this level could help you with your trading decisions. For example, suppose you want to sell it at $5. You need to be aware that it may not get there.Watch how the stock trades around the $4.50 level over the next few days. If it looks like its breaking to the upside, then it could get to your level and it makes sense to be patient. Conversely, if it looks like it is going to fail at this level you may want to sell it because there is a good chance it could go much lower.As of this writing, Mark Putrino did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post 7 Marijuana Stocks With Critical Levels to Watch appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) is continuing to spread its bets across product lines and markets far and wide. With a market cap now standing at $5.9 billion, the Edmonton, Canada-based marijuana stock is the second-largest cannabis company in the sector just behind Canopy Growth (NYSE:CGC) of $9.25 billion.Source: Shutterstock On Monday, Aurora Cannabis announced that it completed its acquisition of Hempco Food and Fiber, a producer of hemp-based fiber and nutritional supplements such as CBD products. The aggressive move into the small but rapidly expanding CBD market will give Aurora a definite leg up into penetrating the U.S. market, where sales are starting to boom.Despite news of the expansion, ACB stock closed down slightly and is now trading at $5.84, well off its 52-week high of $12.52.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCertainly, investors have cooled off to ACB stock since earlier this year with many believing it is still overvalued in comparison to Tilray (NASDAQ:TLRY) or Hexo (NYSE:HEXO). Yet, taking a long-term prospective, ACB may be a solid value play if it gets closer to its 52-week low of $4.58. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Here are three key reasons why ACB is a good long-term play: Aurora Cannabis Has Rock-Bottom Production CostsAurora Cannabis has certainly been on an acquisition binge since it was first founded in 2006. The acquisition of Hempco was just the latest in a string of ACB stock acquiring more production assets, including the takeover last year of CanniMed Therapeutics for $1.1 billion as well as MedReleaf in a $3.2 billion.In fact, since 2016 Aurora has closed on 18 strategic acquisitions across the entire cannabis production value chain. But now, it commands enormous scale, with operations in five continents, 25 countries and 15 global production facilities. By 2020, ACB stock will have put online a production capacity of 625,000 kgs per year. Eventually, Aurora Cannabis estimates that average production costs given their huge economies of scale will fall to be well below $1 per gram. The long-term winners of the pot stock market will likely be those producers who can implement scale in order to minimize production costs. The U.S. CBD Market Is Already Alive and KickingThe most important reason for ACB's acquisition of Hempco may be the U.S. hemp market. After the U.S. legalized hemp last year, various CBD products from hemp are expected to pop up in drug stores from coast to coast.CBD can be found in a wide range of healthcare products, including skin ointment, infused beverages and CBD oil. The U.S. CBD space is heating up, and many major retailers want to get into that market. This month, the grocery chain Kroger (NYSE:KR) announced it would start selling Charlotte Web's (OTCMKTS:CWBHF) hemp products. In fact, Canopy Growth is investing about $150 million in building a hemp industrial park in New York state where CBD is already legalized acquired AgriNextUSA last March specifically to expand hemp production. ACB Stock Owns the Supply Chain and Creates Brand EquityACB may be the leader among marijuana stocks in terms of focusing on the high end of the cannabis market in order to maximize average selling price. Aurora Cannabis stock invests heavily in research and development to create a marketable brand name and valuable intellectual property. Through global expansion, Aurora is is spending to buy its own distribution channels and establish leadership in key international markets. Size and ownership of distribution channels should allow ACB stock to focus on the highest margin products, notably branded medical marijuana.The weeks ahead may certainly see choppy waters for ACB stock. But given its long-term fundamentals, size, scale and investment in brand equity, Aurora Cannabis stock will be a decent long-term value if it gets any cheaper.As of writing, Theodore Kim does not have any position in the above-mentioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Aurora Cannabis Doubles Down on U.S. CBD Market appeared first on InvestorPlace.
Marijuana is a hot topic right now! From presidential candidates to the wealthiest Americans, everyone is talking about the sector.
Over the course of a few months, Canopy Growth (CGC) has gone from market darling to a cannabis company with an uncertain future. The focus on being a global leader is coming at a high cost, but the solution that rewards shareholders could well be the predicted market growth mixed with a bit of cost controls.Non-Stop SpendingSo far, Canopy Growth has spent wildly without any real return on those investments. The company has aggressively built up technologies for processing cannabis whether pre-roll joints or vape devices for a patent portfolio of 110 patents and 270 pending applications.The big question is whether patents are any more meaningful in the cannabis sector as with most other new technologies. Consumers appear rather happy with illegal products and the quarterly results show no signs of Canopy Growth obtaining benefits from vast research expenses.For the quarter, the company spent C$8.5 million on R&D, up nearly 1,000% from last FQ1. One way to turnaround the business from a massive C$92 million EBITDA loss is to restrain spending growth on R&D.Normalized MarginsThe biggest area where Canopy Growth needs to improve is gross margins. Most industry companies are running in the 50% gross margin range while Canopy Growth is down at an absurdly low 15% in the June quarter.The company didn’t meet the original C$1 billion annual revenue target set forth by the ex-CEO, but the new goal has Canopy Growth on the path to meet the C$1 billion annual runrate by the end of this FY next March.The amount suggests quarterly revenues will reach C$250 million or roughly 175% above the C$91 million in FQ1. The number isn’t so impressive when the company only suggests the Canadian operations reach EBITDA positive during FY21 and on a company wide basis in FY22, up to three years from now.Investors are probably wide aware that fellow competitor Aurora Cannabis (ACB) is on pace for breakeven EBITDA numbers now.Basic math would have 50% gross margins generating C$125 million in gross profit by the end of this FY. FQ1 operating expenses were already up at C$116 million so Canopy Growth isn’t going to be able to further buildout global operations and the CBD business in the U.S. without substantial additional spending. At this point, Canopy Growth has the potential to turnaround the business, but the company needs far too much to go right in order to reach these breakeven goals with only basic business rationalization.TakeawayThe key investor takeaway is that Canopy Growth needs to stop having overly ambitious plans. The Canadian cannabis company has the path towards higher revenues and gross margins needed to dig out of these large losses, but also the company needs a new CEO to rationalize the global scale of the business.The company remains worthy of a watch list, but a market valuation of $10 billion is far too expensive for the goal of annualized revenue that amounts to $750 million a few quarters from now. Canopy Growth has done a lot on R&D and branding that an investor will want to keep the stock on a watchlist for when the company actually turns the ship.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now. Disclosure: No position.
Shares of cannabis company Canopy Growth (NASDAQ:CGC) have certainly come down from the recent highs. CGC stock is now more than 50% below the all-time highs near $60 from last October.Source: Shutterstock Disappointing earnings last week only added to the unabated selling pressure. Some of the selling was warranted, given the parabolic rise in the Canopy Growth stock price. The carnage, however, is getting overdone and it's time for CGC to begin to "light up" once again.CGC reported earnings last week and it missed on both the top and bottom line. The news sent Canopy Growth stock skidding over 10% with shares now trading at the lowest levels of the year near the $27 area.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe technicals point to a potential pop for Canopy Growth stock following that sharp drop. CGC Stock ChartCGC stock reached oversold readings on a 9-day RSI basis before turning higher. Bollinger Band Percent B went negative and printed at the lowest levels in over a year before it turned up as well. Canopy Growth stock is also trading at a big discount to the 20-day moving average, which signaled lows in the past. GCG stock finally staunched the bleeding yesterday as shares closed higher on the day. This is even more powerful given that it was right at the long-term support area of $26.50. * 10 Small-Cap, Up-And-Coming Stocks to Keep on Your Radar As mentioned, the latest earnings report was a clear disappointment with earnings and revenues both missing expectations. Emerging companies like Canopy Growth, though, are more about the future than the present. On the earnings call, current Constellation Brands (NYSE:STZ) CEO Rob Sands hinted at this growth potential. He stated that "over the past year, we've come to better understand the cannabis market, the tremendous growth opportunity it presents, and Canopy's market-leading capabilities in this space."Certainly alcohol and beverage giant Constellation Brands believes in the future of the cannabis industry after taking a nearly $4 billion dollar stake in CGC last August. The stake was effectively priced at just over $32, so jumping into CGC stock at current levels would be at a 15% discount to the massive stake taken by Constellation Brands.Interesting to note that former co-CEO Bruce Linton, who was forced out by Constellation Brands, is adding to his stake in the company. He notes that the company has a decided advantage in intellectual properties versus competitors. Mr. Linton also points to seasonality, with August generally being a weak month (and subsequently a good time to buy) for cannabis stocks historically as trading volumes fall. While corporate insider buying is usually a bullish sign for a stock, insider buying by a former CEO is even a more potent sign.Long-term believers in the potential of the cannabis industry should consider Canopy Growth near current levels. GCG stock is trading near the cheapest prices over the past few years and held critical support. Price volatility will certainly remain for the foreseeable future, so selling a Jan $35 covered call at $1.50 will help cushion the downside by over 5% while still allowing for 27% upside in the stock.Tim Biggam may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his strategies can go to https://marketfy.com/item/options-and-volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Canopy Growth Stock Is Finally Ready to Make a Comeback appeared first on InvestorPlace.
The past several months haven't been particularly kind to cannabis stocks, as the hope (and hype) of the long-term potential collides with short-term reality. That is, most of these companies have spent heavily to take the lead in a highly contested race, but don't yet have the scale needed to drive actual profits.That day is still coming, at least for several of the names in the business. The question is, which ones will be left standing, picking up the pieces of an ever-growing industry?Nobody knows for sure; it's unlikely that even the companies' chiefs are entirely convinced themselves they're being built to last. But, with the marijuana industry having only scratched the surface of what it can be, and likely will be, there's little doubt that at least some of these names could double their current values.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Marijuana Stocks to Buy Now Here's a rundown of the top ten cannabis stocks most likely to dish out a triple-digit gain, sooner or later. Canopy Growth (CGC)Source: Shutterstock It's arguably the name that started cannabis-mania, as Canopy Growth (NYSE:CGC) was the first name to attract a major partner's money. In October 2017, booze company Constellation Brands (NYSE:STZ) bought a 10% stake in Canopy Growth, then in August of last year an additional $4 billion investment in CGC stock made Constellation a near-40% stakeholder. The underlying plan was ultimately ensuring access to a supply for the time when a launch of a cannabis-infused beverage made sense.Since then, the relationship became so strained that a frustrated Constellation management team forced Canopy's CEO Bruce Linton out of the role. An aggressive acquisition spree chewed up more money well before it was ready to drive a return on the investment.Still, the dozen or so acquisitions Canopy Growth has made over the course of the past year gives the organization a wide array of horizontally and vertically minded ways to monetize cannabis at some point in the future. Charlotte's Web Holdings (CWBHF)Source: Shutterstock Don't let the OTC listing fool you. With a market cap of nearly $1 billion and $86 million worth of revenue for its past four reported quarters, Charlotte's Web Holdings (OTCMKTS:CWBHF) is a more legitimate company than many of its exchange-listed counterparts. An over-the-counter listing is just less of a hassle.Charlotte's Web Holdings is uniquely positioned. It's not waiting on legalization of recreational marijuana in the U.S. because it doesn't have to. It already offers CBD oil, and capsules, in the United States and can deliver their product -- legally -- in the mail to anywhere in the U.S. * The 10 Best Cheap Stocks to Buy Right Now Perhaps more compelling, Charlotte's Web Holdings is already turning a profit. Granted, it's not a jaw-dropping bottom line. Last quarter's net income was a modest $2.2 million. It's evidence that the business can be profitable though. Net margins should improve as the company scales up. Aurora Cannabis (ACB)Source: Shutterstock Canopy Growth may be best known, for better or worse, as a rapid-fire buyer of smaller cannabis outfits with the aim of building a large conglomerate. But, Aurora Cannabis (NYSE:ACB) is certainly no slouch on that front. It recently closed on the Hempco deal first announced in April, rounding outs rather robust portfolio too.It was self-serving to be sure, but Aurora CEO Terry Booth wasn't off-base when he said of the closed Hempco acquisition "we have assembled a world-class portfolio of high-quality hemp assets that together form the basis of a strong new operating division that will develop CBD-from-hemp around the world."Aurora Cannabis is also an interesting play simply because it's not trying to be all things to all people. Although it's not terribly easy to distinguish just yet, this company is focused more on medical marijuana, and less on recreational usage.It matters. Although it's more difficult, prices and therefore margins are stronger within the medical marijuana market, where Aurora is quickly demonstrating proficiency. GW Pharmaceuticals (GWPH)Source: Shutterstock It's a name that is often left out of the discussion because (1) it's not looking to capitalize on the ongoing legalization of recreational marijuana, and (2) it has been around for years. But GW Pharmaceuticals (NASDAQ:GWPH) has absolutely earned a spot on any list of cannabis stocks positioned to double in the foreseeable future.GW Pharmaceuticals is, as the name suggests, a pharmaceutical developer. It has worked diligently to extract the full health benefits of cannabidiol, or CBD, for prescription use. It convinced the Food and Drug Administration of that potential in June of last year, securing approval for CBD-based Epidiolex as a means of treating seizures … the first CBD-based drug permitted in the U.S. * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The response has been nothing short of incredible. Some observers were expecting Epidiolex to reach a total of $65 million, total, this year. By the end of the second quarter, GW Pharmaceuticals had actually sold $102 million worth of the drug. Hexo (HEXO)Source: Shutterstock It wasn't one of the names batted around a great deal when marijuana stocks were all the rage during the middle of last year. Since then, Hexo (NYSE:HEXO) has managed to make some noise for itself.Hexo, for the unfamiliar, is building itself from the ground up, specifically to cultivate partnerships with bigger players than can carve out market share better than it ever could on its own. It calls it a "hub and spoke" model, where it serves as the hub and supplies cannabis to various partners at the other end of the spoke. There's room for several.It already has one such partner: Molson Coors Brewing (NYSE:TAP) is looking to build a cannabis beverage brand with Hexo. Other partners with other focal points will be added in time.The hard part about the strategy is, Hexo doesn't appear to be in a hurry to execute it. That patience, however, may ultimately be to the company's advantage. Tilray (TLRY)Source: Shutterstock It's curious. The consensus rating on Tilray (NASDAQ:TLRY) shares is only a little better than a 'Hold.' But, the consensus target is a healthy $64.40 per share. That's more than twice the current price of TLRY stock.It's not an unusual nuance within the cannabis industry at this time. Analysts aren't quite sure how to value these names, most of which are startups, and all of which are being lifted at least a little by hype. It's not easy to see the line dividing what's likely, and what's possible.Still, the average target for Tilray shares marks one of the biggest upsides the professionals expect to see come to fruition. * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure Tilray offers a variety of products, including extracts and dried flower, for users seeking THC as well as CBD. It also sells products on five different continents, making it a geographically diverse player. Cara Therapeutics (CARA)Source: Shutterstock As was the case with GW Pharmaceuticals, Cara Therapeutics (NASDAQ:CARA) has largely been omitted from the discussion of cannabis stocks as a whole because it's not a newcomer catering mostly to recreational users. It's still a cannabis name though, or will be, eventually.Cara's claim to fame at this time is a developmental drug currently just referred to as CR845. It's a prospective alternative to opioids, which are effective painkillers, but also highly addictive. CR845 also has absolutely nothing to do with cannabis.Cara Therapeutics' CR701, however, is a prospective painkiller that specifically uses cannabinoid agonists to block the body's pain receptors. While still years away from commercialization, the clinical trial setting certainly legitimizes cannabis as real medicine. OrganiGram Holdings (OGI)Source: Shutterstock If nothing else, OrganiGram Holdings (NASDAQ:OGI) has earned a look because it's one of the few names in the cannabis business that's profitable. Indeed, with its numbers reported in July, it has been profitable for four straight quarters.The underpinnings for that unusual claim in the cannabis realm largely reflects the company's growing acumen. Even though last quarter's cash production costs grew from 65 cents per gram to 95 cents per gram, that's still less than the $1.42 per gram Aurora had to spend to supply itself, or the $1.48 Tilray laid out to grow its own supply. * The 10 Best Marijuana Stocks to Buy Now Still, the big cost jump last quarter? Don't read too much into it. The costs were associated with an experiment designed to further improve yield. It failed, so the company won't be attempting it again. Medipharm Labs (MEDIF)Source: Shutterstock As was the case with Charlotte's Web Holdings, don't be put off by the OTC listing of Medipharm Labs (OTCMKTS:MEDIF). This company is also on firmer footing than many of its exchange-listed rivals, even if most cannabis investors have never heard of it.Medipharm Labs specializes in one narrow sliver of the budding cannabis arena … extraction. Leveraging technology with experience, this company can turn raw marijuana into pure cannabis that meets the exacting standards most CBD suppliers expect in the current, scrutinizing environment.It's still bleeding money in a big way, here at the industry's infancy. Patience is merited though. This year's top line is projected to grow nearly 40%, followed by another 32% revenue leap next year.That still won't be enough to drag Medipharm out of the red, but scale should pay off soon enough. Cronos Group (CRON)Source: Shutterstock Finally, add Cronos Group (NASDAQ:CRON) to your list of cannabis stocks with the potential to double at some point in the future.Cronos Group does a little of everything, from cannabis research to product development consumer sales. It operates three brands: Peace Naturals, Cove and Spinach. And, like Tilray, it has a presence on five different continents.Perhaps the most bullish argument for CRON stock at this time, however, is the recently initiated coverage from Piper Jaffray. Analyst Michael Lavery notes "We expect Cronos to have modest near-term revenues from Canadian cannabis production, but believe it has significant potential growth opportunities with CBD products in the US, including through its pending acquisition of the Lord Jones brand." * 7 Marijuana Penny Stocks That I May Buy Its partnership with Altria Group (NYSE:MO) also bodes well, even if it has accomplished little so far.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post 10 Marijuana Stocks That Could See 100% Gains, If Not More appeared first on InvestorPlace.
On Tuesday, Jim Cramer stated that Cronos Group and Aphria passed Canopy Growth. Canopy Growth has lost 15.3% of its stock value since its Q1 earnings.
Few news items this summer jolted the legalized cannabis industry quite like the termination of former co-CEO Bruce Linton from Canopy Growth Corp.
The second full week of August 2019 might go down in the history books as a turning point. This was when the benchmark Dow Jones index absorbed an 800-point drop, the worst day so far this year. Naturally, the volatility impacted already beleaguered marijuana stocks.In my view, the cannabis market suffered from a two-pronged attack. First, it takes a brave soul to go against broader market bearishness. Obviously, there were few takers of the contrarian approach. Second, cannabis players delivered poor earnings results. That sent skeptical investors to run for the exits, turning marijuana stocks to buy into something else entirely.As a weed bull, I'm of course very disappointed. However, I think this presents an opportunity to consider the bigger picture for marijuana stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPrimarily, U.S. public attitudes toward the maligned plant have shifted dramatically, with a majority supporting legalization. Just maybe, risk-takers can profit handsomely by putting red-inked cannabis companies on their list of stocks to buy now. * 10 Cheap Dividend Stocks to Load Up On Furthermore, I'm very encouraged at the political situation as it pertains to marijuana stocks. Last year, the farm bill was one of the few pieces of legislation that earned consensus support. And if the Trump administration won't push for legalization, Democratic presidential candidates will.To the above point, because legalization is so popular, Trump might have to cede some ground here. If that's the case, you don't want to leave cannabis out of your stocks to buy list.Finally, marijuana stocks represent job creation. As the industry takes off, it'll create new, associated jobs, such as cannabis-testing services.So, don't give up on weed yet. Here are the ten best marijuana stocks to buy now: Aurora Cannabis (ACB)Aurora Cannabis (NYSE:ACB) is easily one of the top names among marijuana stocks. However, the recent price action for ACB stock belies its reputation. Things got even uglier for the company when it announced an expansion of its credit leverage, totaling approximately 360 million CAD.Why such a dour response toward ACB stock? A familiar theme has popped up regarding the sea of disappointing earnings reports of late. Investors no longer want to hear about a good narrative or potential opportunities. Instead, they want evidence of traction.Further, they'd like companies like Aurora Cannabis to shore up their operations and financials before taking on bigger risks. Thus, a combination of fear and a lack of credibility has hurt ACB stock.Granted, we're in an ugly state of affairs for marijuana stocks. That said, ACB stock does have a tremendous ace up its sleeve: dominance in international presence. As medical cannabis legalization takes hold in other parts of the world, Aurora is well-positioned to take advantage.Thus, this fallout provides a case to put ACB on your list of stocks to buy now. Canopy Growth (CGC)Source: Shutterstock As I mentioned above, investors have punished Canopy Growth (NYSE:CGC) and CGC stock due to a recurring theme: fundamentally, marijuana stocks have not been able to convincingly deliver the goods. More critically, the markets shined a spotlight on Canopy Growth for its fiscal first-quarter earnings report. The results weren't great.Canopy couldn't live up to consensus earnings expectations. Given broader weakness among marijuana stocks in this area, that's no surprise. However, what really concerned investors and industry observers was that Canopy may have lost their lead in the Canadian recreational cannabis market. That was one of the few fundamental strongholds that management claimed in prior reports. With that apparently gone, Wall Street dropped CGC stock like a bad habit.I don't think anyone - even the weed bulls - will claim that CGC stock is a compelling investment at this juncture. However, for risk-tolerant speculators, I believe Canopy still presents a viable opportunity. For instance, the company has been aggressively pushing into the U.S. market, investing in diverse products such as edible cannabis. * 10 Undervalued Stocks With Breakout Potential Admittedly, Canopy will require substantial patience. However, the believability of its narrative means it belongs on a speculative list of stocks to buy now. Cronos Group (CRON)Source: Shutterstock Among major marijuana stocks, many investors consider Cronos Group (NASDAQ:CRON) as the most credible investment. Certainly, the biggest factor in this positive reputation comes from tobacco giant Altria (NYSE:MO). Known worldwide for its Marlboro brand, Altria plunked $1.8 billion for a 45% stake in CRON stock.As our own Will Ashworth stated, CRON stock is still a "brilliant" buy for Altria. However, individual weed investors have a different sentiment. Like other marijuana stocks, Cronos has charted an ugly trend channel over the trailing half-year period.Again, a significant factor in the bearishness is credibility and fundamental justification. Currently, CRON stock sports a market capitalization of $4 billion. However, with recent quarterly revenue topping out at less than $8 million, investors don't see the rationale for the premium.It's a fair point. But it's worth noting that CRON stock has always been a play toward the ultimate U.S. marijuana market. And management is making huge strides toward this lucrative arena. A great example is their $300 million buyout of Lord Jones, a U.S.-based hemp and cannabidiol (CBD) beauty products manufacturer.Essentially, if legalization momentum continues in the American cannabis space - and that really looks to be the case - then Cronos should skyrocket. That's a good enough reason to consider placing CRON on your portfolio of stocks to buy now. Tilray (TLRY)Source: Shutterstock Analysts never expected medical cannabis specialist Tilray (NASDAQ:TLRY) to deliver a profit for its most recent earnings report. However, they didn't expect the kind of steep losses that management delivered. As a result, TLRY stock took a massive beating that shocked even weed advocates that are used to extreme swings.Even worse for TLRY stock, investors completely ignored some of the underlying company's positive news. For instance, Tilray's revenue came in much higher than consensus estimates. Unfortunately, the negative sentiment surrounding marijuana stocks was simply too much for the cannabis firm.The other reason why the markets adopted a dim view on TLRY stock is Tilray's home market. With disappointment being the key theme for marijuana stocks, it's becoming clear that the Canadian weed sector is reaching a saturation point.However, for interested speculators, I wouldn't extinguish TLRY from your stocks to buy radar. Ultimately, we all know that Canada is a limited market. The main goal here is the U.S., and Tilray has positioned itself for the very real possibility of legalization. * 15 Growth Stocks to Buy for the Long Haul For example, Tilray bought Manitoba Harvest for $317 million. Billed as the world's largest hemp-based foods manufacturer, Manitoba represents a viable platform for Tilray to expand into the CBD food and beverages market. Hexo (HEXO)Source: Shutterstock According to many observers, Hexo (NYSE:HEXO) delivered disappointing revenue for its fiscal Q3. I'd argue that the sales haul wasn't disappointing at all. However, Hexo released their earnings results at a time when investors were seeking substance from marijuana stocks. Unfortunately, they couldn't come through against these elevated expectations, and HEXO stock fell as a result.Technically, HEXO stock has another problem. Hexo is one of the smaller outfits among marijuana stocks. Currently, its market cap is just a little over $1 billion and generates quarterly sales of around $10 million. Yet the company is making heavy investments which worry onlookers.Obviously, HEXO stock isn't for the faint of heart. This is really a gamble that its expansionary efforts will pan out quicker than its cash burn will destroy it. Given the political momentum behind marijuana stocks, I like my chances. Hexo has many cogs in play, including a partnership with Molson Coors (NYSE:TAP) to develop CBD beverages. Green Organic Dutchman (TGODF)Source: Shutterstock Hands down, Green Organic Dutchman (OTCMKTS:TGODF) has the coolest name among marijuana stocks to buy now. Unfortunately, that hasn't helped its case in the markets. Like other players in this sector, TGODF stock has taken a dive since early spring of this year. That said, it has weathered the recent storm better than most.Is that a clear sign to jump onboard TGODF stock? As a speculator, I believe Green Organic Dutchman offers serious potential. However, those with a more conservative outlook should be careful. With a price tag of less than $3, TGODF is under the law of small numbers. Any downturn in this segment could exponentially hurt shares.Fundamentally, prospective buyers should note that Green Organic Dutchman is not yet profitable. Still, I do like the fact that for its Q2 report, it sequentially grew revenue 20% from Q1. Much of that growth spurt came from European demand for Green Organic's premium-label cannabis products. * 10 Stocks Under $5 to Buy for Fall Additionally, the company just hatched their "Grower's Circle" project aimed at capturing market share for Canadian medical marijuana. Of course, TGODF stock is highly speculative, but there's also justification for this risk. Charlotte's Web (CWBHF)Source: Shutterstock Charlotte's Web (OTCMKTS:CWBHF) is one of those rare names among marijuana stocks to buy now that has a broader positive trajectory in the markets. Year-to-date, CWBHF stock is up 96%. Shares have also recovered much of the losses incurred during the spring season.Despite this encouraging positive, Charlotte's Web couldn't avoid a recurring headwind in this segment: disappointing earnings results. For its Q2 report, the company missed on both profitability and revenue consensus estimates. Immediately, CWBHF stock took a dive.Still, let's look at some positives for the CBD specialist. Headquartered in Colorado, CWBHF stock levers a geographic advantage. Other, mostly Canadian weed firms are aggressively working their way in. Charlotte's Web is already here.More importantly, this isn't just a statistic. Charlotte's Web has made good on this advantage, securing retail deals with CVS Health (NYSE:CVS) and Kroger (NYSE:KR). In my opinion, this is one of the most impressive set of deals in the CBD space. Therefore, CWBHF stock deserves serious consideration for your portfolio of marijuana stocks to buy now. CV Sciences (CVSI)Source: Shutterstock Although a long shot among speculative marijuana stocks, CV Sciences (OTCMKTS:CVSI) brings a compelling narrative to the table. As a pharmaceutical company, CV Sciences could disrupt its industry by forwarding therapies based on natural formulations, not artificial concoctions.Unfortunately, the markets have not found this narrative convincing enough. Along with broader credibility questions impacting the cannabis market, CVSI stock has incurred a worrying amount of red ink. Logically, this is only a name that gamblers should consider.Further, CVSI stock has a current price tag just over $3. Any bearishness could plummet shares. At the same time, positive catalysts could spark a massive upswing.It's this latter point that attracts speculators. Plus, the political situation somewhat favors CVSI stock. Over the years, the opioid crisis has gutted several cities across America. And what was the cause of this crisis? Pharmaceutical products levering unintended consequences. * 10 Best Stocks to Buy and Hold Forever With a focus on natural CBD-based therapies, I think the general public will give a fair shot to the concept. After all, most Americans already support marijuana legalization. Aphria (APHA)Source: Shutterstock Weed player Aphria (NYSE:APHA) used to be one of the high-flying marijuana stocks to buy now. However, a short-seller's report accusing the company of being a shell game plummeted APHA stock. It also sent ripples throughout the industry. This wasn't the first time that critics have questioned the legitimacy of cannabis businesses, and it won't be the last.What was especially damaging was that some of the accusations stuck. In the aftermath, high-level executives, including the CEO, resigned from their posts. Moreover, Aphria promised a line-by-line rebuttal of the charges, but they never came to fruition. Even now, management is coy about the matter. Essentially, Aphria is doing everything it can not to address this incident, which hasn't helped APHA stock.Of course, this is one of the riskiest names among marijuana stocks. Still, I can't get something out of my mind: current CEO Irwin Simon, who came over from Hain Celestial (NASDAQ:HAIN), is taking a serious reputational risk with Aphria. That he's willing to initiate the recovery process leads me to have some confidence in APHA stock. Aleafia Health (ALEAF)Source: Shutterstock At the end of our list of marijuana stocks to buy now, I'm going to present my most speculative idea. A healthcare enterprise focusing on cannabis-based therapies, Aleafia Health (OTCMKTS:ALEAF) levers a vast network of clinics and patients. And these stats have jumped to 40 clinics and approximately 60,000 patients with its all-stock acquisition of Emblem. Thus, ALEAF stock offers a valid fundamental case.However, that hasn't panned out so well in the markets this year. ALEAF stock is down over 20% YTD. Additionally, this is a true penny stock, with shares trading hands under a buck. Naturally, with such a cheap asking price, you can expect tremendous volatility. For now, that volatility has shoved ALEAF deep down in the gutter, Pennywise style.However, I still see some positives. For one thing, volume is relatively robust for such an offering. Second, it appears that ALEAF stock has found support around the 80-cent level. Of course, this is no guarantee considering the share price. But the combination of a sound business and a supportive political environment makes ALEAF a compelling gamble.As of this writing, Josh Enomoto is long HEXO and ALEAF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post The 10 Best Marijuana Stocks to Buy Now appeared first on InvestorPlace.
When marijuana stocks were rising, many investors got caught up in the excitement and bought large quantities at high prices. At the same time, another group of investors who paid attention to money flows made significant profits. Just like a doctor who uses X-rays to see what is going on inside the human body, investors can do X-rays of marijuana stocks.
Former Canopy Growth CEO Bruce Linton discusses why he's still investing in cannabis, what he thinks is next for his former company, and his future plans. He joins Yahoo Finance's Zack Guzman and Heidi Chung to discuss.