|Bid||108.73 x 1100|
|Ask||111.00 x 1000|
|Day's Range||101.95 - 110.39|
|52 Week Range||31.61 - 110.39|
|Beta (3Y Monthly)||1.61|
|PE Ratio (TTM)||109.47|
|Earnings Date||May 9, 2019 - May 10, 2019|
|Forward Dividend & Yield||1.80 (2.11%)|
|1y Target Est||85.50|
There's a reason why Canopy Growth Corporation (NYSE:CGC) could be one of the first marijuana stocks to be a real winner in the race to profitability. The reason is simply that Canopy is forward thinking with its various moves. Initiatives like its mega-sized deal with beverage giant Constellation Brands (NYSE:STZ), partnerships into the burgeoning pet care market for CBD and its recent buyout of U.S.-focused Acreage Holdings have made CGC stock the king of the marijuana hill.Source: Shutterstock All have been designed to take CGC-grown products and get them into as many users as possible. They're also great for providing Canopy with plenty of extra funding. Which is why its latest move may be absolutely perfect for investors.Canopy is seriously considering placing its greenhouse assets into a real estate investment trust (REIT).InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe benefits to doing that could be a huge win for both CGC, its shareholders and potentially the shareholders of the REIT itself. In the end, it's just another example of how Canopy Growth could be the only marijuana stock you need to own. CGC Stock Looks to Monetize Its AssetsThanks to their vice-like nature, cannabis companies have had to get creative to when it comes to raising capital. Most banks won't lend to them and it's only recently that a few of them have been able to tap the debt markets with any success. And here, none have issued a straight corporate bond, they've all been convertible or hybrid debt deals. For Canopy, this has meant running a pretty conservative ship with low leverage and high assets on its balance sheet. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever In order to fund its expansion efforts, it has turned to deals like its partnership with STZ. That gave CGC a cool $4 billion to play with, while Constellation gets access to Canopy's products for sale. But there are other ways to get needed funding, especially if you are asset rich.To that end, CGC may be looking into a vehicle to hold its vast portfolio of greenhouses, processing facilities and other real estate assets. We're talking about a REIT.In essence, REITs are a specialized tax structure designed to hold real estate assets. As long as they pay out 90% of their cash flows as dividends to investors, they are allowed to avoid the double taxation on dividends. Investors love them as this tax structure allows REITs to yield in the 4% to 7% range. Their cash flows are secured by the rents paid by their tenants. It turns out a greenhouse to grow marijuana is really no different than an office building or apartment. Someone rents the building and then cuts the landlord a check every month.For CGC, this could be a great way to monetize its more than 5 million square feet of growing space. Canopy would mostly do a sale-leaseback transaction. This transaction would provide Canopy a huge initial cash infusion as it places these warehouses into a REIT and sells off the shares to the public. It would then rent its warehouses back from the REIT.This sort of deal to monetize a firm's vast real estate assets is actually pretty commonplace. Troubled retailer Sears spun-out its holdings as Seritage Growth Properties (NYSE:SRG) to raise cash. Darden Restaurants (NYSE:DRI) placed roughly 240 of its restaurant sites Four Corners Properties Trust (NASDAQ:FCPT).And while tax-free REIT spin-offs are now verboten by the IRS, they can happen in Canada and sale-leasebacks are still cool here in the U.S. In fact, CGC buyout target Acreage Holdings recently agreed to sell cannabis REIT GreenAcerage Real Estate. Incidentally, Acreage -- and now Canopy -- owns a 20% stake in GreenAcerage. CGC Stock Investors Would Win As WellBut it's not just Canopy Growth that benefits in this sort of transaction. Investors will benefit as well.For one thing, a REIT spin-off/sale brings in plenty of cash to CGC for expansion efforts. The firm estimates that the assets could be worth a "couple billion dollars." Canopy is looking to expand into the U.S. and Europe as the legalization of cannabis comes to fruition. That includes building out at least seven hemp processing facilities within the next 12 months. This will allow it to build scale, expand geographically and actually make the most out of its deals with Constellation and others. After all, it needs to the pot to sell. * 7 U.S. Stocks to Buy With Limited Trade War Exposure Secondly, the spinout itself could be very beneficial to investors. Last summer, CGC completed the spin-off of its venture capital investment arm: Canopy Rivers Corporation. That spin-off has and did very well after being cut free and CGC was able to raise some much-needed capital. However, a Canopy REIT could do much better. Just look at the returns for cannabis-REIT Innovative Industrial Properties Inc (NYSE:IIPR). It has doubled since the start of the year and pays a good 1.83% yield. There's no reason to believe that a REIT by the marijuana stock wouldn't have those kinds of returns behind it. CGC Continues to Be At the ForefrontNow, Canopy hasn't officially announced that it's doing this, but it has mentioned it now twice this year alone. And considering that Acreage Holdings has already undergone a similar transaction and Canopy has done spin-outs before, there's a good chance that CGC will do this sooner than later. When it does, it'll be another prime example of why the firm is one of the best in the marijuana sector.It keeps making forward-looking moves that will benefit investors for years to come. Its REIT plans are just another example of this and CGC stock remains a great long-term buy.At the time of writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post This Is Why a REIT Could Be Great for Canopy Growth Stock appeared first on InvestorPlace.
When most people think of marijuana stocks, the last thing they think of is dividends. The legal marijuana industry is still very young, and new companies in growing industries need money to expand. Furthermore, U.S. investors in the marijuana space tend to currently focus on a handful of Canadian companies which have enjoyed the opportunity to list on U.S. exchanges.
Cannabis Stocks Rebounded at the End of Last WeekCannabis stocks reboundedIn the week ending June 7, cannabis stocks ended the week on a positive note with a rebound. The sector experienced weakness in May for the most part. The ETFMG Alternative
Stock Of The Day Innovative Industrial Properties is a profitable pot REIT clearing a new buy point, in sharp contrast to riskier marijuana stocks.
Zacks Market Edge Highlights: Omega Healthcare Investors, Innovative Industrial Properties, Arbor Realty Trust, GEO Group and Macerich
How Do Cannabis Stocks' Valuations Stack Up in May?(Continued from Prior Part)Comparing valuationsBelow, we’ll compare the valuation multiples for some of the stocks within the cannabis sector with their historical levels and the median of 12
For Green Leaf Medical, the facility in Saxton is the first in Pennsylvania where the company holds one of 25 licenses for growing and processing. Through the sale leaseback transaction with Innovative Industrial Properties, Green Leaf Medical managed to unlock the capital invested in the facility and redeploy it across its multi-state platform. The addition of the new facility increases the number of properties held by Innovative Industrial Properties to 21.
Innovative Industrial Properties Inc. (NYSE:IIPR) has completed the purchase of a 266,000 square feet of industrial space in Saxton Pennsylvania. The property was purchased at cost of around $13 million excluding the transaction costs. After closing the acquisition the company signed a long-term lease agreement with a Green leaf Medical LLC subsidiary which will operate […]The post Innovative Industrial Properties Leases Pennsylvania Property To Green Leaf Medical appeared first on Market Exclusive.
Leading REIT for the Medical-Use Cannabis Industry Expands Portfolio to 21 Properties Comprising Approximately 1.6 Million Square Feet in 11 States
Cannabis Stocks Fell despite Biden's Support of LegalizationA weak startThe overall cannabis sector was off to a weak start this week. The weakness was reflected in the Horizons Marijuana Life Sciences ETF (HMMJ), which sank by nearly 1.4%, and the
Cannabis Sector Fell on CRON's Earnings and Trade Tensions(Continued from Prior Part)Sector declinesIn the week ending May 10, the overall market sentiment was pessimistic with the TSE Composite Index losing almost 1.2% The ETFMG Alternative Harvest
We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always […]
The U.S. marijuana index has significantly outperformed the S&P 500, but it also carries additional risks. The marijuana industry is young and stock prices react to government discussion on related policies. Investors should expect volatility.
A few months ago, I was thinking that medical marijuana would become legal in the United States by 2023, with recreational use to follow a few years later. I now expect it to be much sooner than that. And everyone who owns cannabis stocks stands to benefit-- perhaps by the 2020 election.One Republican who's close to President Trump, Dana Rohrabacher, is expecting it even SOONER: "as early as spring of 2019."Well, that's about where we are now. So it's time to get positioned in high-quality cannabis stocks with U.S. operations, if you haven't already.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNearly every Democratic presidential candidate has called for legalization. According to the insiders I've spoken with at cannabis conferences, President Trump is moving closer to introducing such a policy as well. The tax revenues alone would be more than any politician could pass up. * 7 Cloud Stocks to Buy on Overcast Days Already, the dominos are starting to fall -- which brings me to the first pot stock to own BEFORE legalization hits: Canopy Growth (CGC)One of the most important developments in the history of the U.S. marijuana industry hit the headlines just before the Easter holiday. Canadian cannabis giant Canopy Growth (NYSE:CGC) announced that once legalization is passed, it will buy a U.S.-based marijuana company called Acreage Holdings (OTCMKTS:ACRGF).Acreage already operates in 20 U.S. states, and was one of the first to tackle the East Coast market. Founder and CEO Kevin Murphy is a Wall Street transplant -- and incredibly well connected. Acreage's board includes three of the most important people on the planet: former U.S. Speaker of the House John Boehner, former Massachusetts governor and current presidential candidate William Weld, and former Prime Minister of Canada Brian Mulroney.Acreage has another advantage: the ability to manufacture and distribute on a national scale. That's thanks to its late-2018 acquisition of Form Factory.Canopy has already created billions in wealth for its shareholders, as you can see in the chart below. Imagine what it can do as the biggest player in the much-larger U.S. market.With marijuana illegal in the United States, pot stocks based here are still in the earlier part of that chart. The legal limitations result in the stocks trading at a major discount to their Canadian peers (for the moment). So, let's take a look at some of our highest-quality options. Innovative Industrial Properties (IIPR)Innovative Industrial Properties (NYSE:IIPR) is the only publicly traded marijuana real estate investment trust (REIT) - a vehicle that owns assets and must pay out 90% of its profits to shareholders.I've always loved the company's business model. It buys grow facilities from the growers, often providing them with much needed money for their businesses, and then leases the land back to them. Innovative Industrial Properties receives an initial base rent of 10%-16% of the total investment, and rent grows approximately 3%-4.5% a year. A typical lease is 10-20 years, with the targeted size of the initial deal from $5 million to more than $30 million.It's a win for the growers and a win for the company, which has grown to a market value of $780 million by repeating that acquisition and leaseback model over and over. As marijuana moves toward legalization in the United States, Innovative Industrial Properties is undoubtedly the best positioned real estate business.Not only is Innovative Industrial Properties the only marijuana stock to pay a dividend, it was the first to list on a major U.S. exchange. It began trading on the NYSE on December 1, 2016. Today, Innovative Industrial Properties is indeed the clear leader in marijuana real estate. Early investors have made a lot of money along the way…and many more will rush in the moment marijuana is legalized federally. iAnthus Capital (ITHUF)In October, iAnthus Capital (OTCMKTS:ITHUF) was part of the biggest marijuana merger of the time. By buying MPX Bioceuticals, iAnthus now has operations in 11 states, more than 60 retail locations, and over 500,000 square feet of cultivation and processing space.Most importantly for us as investors in marijuana stocks -- iAnthus is expected to be one of the first to turn a meaningful profit.iAnthus released its fourth-quarter numbers on April 2, with quarterly revenue coming in at $2.2 million on full-year sales of $4.5 million. Specifically, iAnthus generates revenue in nine of the 11 states it is currently approved to do business in. California should join that list as No. 10 in the next couple of months. The company has 21 dispensaries open with the ability to open 40+ more. It has a total of 200,000 square feet in cultivation and processing facilities in nine states and the potential to increase that to as much as 580,000 square feet.And it's about to expand even further. On March 29, iAnthus also announced that it would purchase CBD for Life, a national cannabidiol (CBD) brand in the United States. Its products are currently available in more than 750 retail outlets throughout the country. That number will likely skyrocket once marijuana is legal in every state. Charlotte's Web (CWBHF)No list of my favorite U.S. cannabis stocks is complete without Charlotte's Web (OTCMKTS:CWBHF), my pick for the InvestorPlace Best Stocks for 2019 Contest.Charlotte's Web is the world's leading brand by market share in the production and distribution of CBD wellness products. It gets its name from a five-year-old girl named Charlotte Figi whose grand mal seizures were drastically reduced -- from 300 per week to just two or three a month -- thanks to this company's high-quality CBD oil. It's an amazing story, and just one example of why this industry is set to grow 40X in the coming years.For these reasons, Charlotte's Web's jump to a major stock exchange in either the U.S. or Canada is inevitable, and I suspect the announcement is right around the corner. I see the company garnering more and more market share as CBD oil hits the shelves in CVS Health (NYSE:CVS) and Walgreens (NASDAQ:WBA) stores… just for starters. I Also Like Penny Pot Stocks. Here's WhyCanopy, Innovative Industrial Properties, iAnthus, and Charlotte's Web are the heavyweights in their markets. All of them started out as penny stocks.For that matter, so did Coca-Cola (NYSE:KO), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Microsoft (NASDAQ:MSFT). But people who invested with Steve Jobs and Bill Gates when they were operating out of garages are now, of course, incredibly wealthy. And these companies went from just a couple of employees -- to employing millions worldwide.You might own AAPL stock yourself. But many of the gains have already been made. For example, in the last two years, it's up 24%. In the same time, IIPR is up 387%, and CGC is up 480%.Think about it: It's easier to go from $0.50 to $3 per share, than it is to go from $200 to $1,200 per share.And while these stocks are so tiny, the "big money" on Wall Street is locked out. But not us. Click here to learn more.I've got a whole presentation for you on all the reasons I like penny pot stocks with U.S. legalization around the corner. But it boils down to their ability to innovate.It's about buying the equivalent of Apple before the iPhone… not Apple once it's cranking out more expensive versions of the same product.Now, when it comes to penny stocks, you've got to weed through a lot of trash. Let me show you my five-step method for picking the RIGHT penny stocks.After my presentation, you'll have the chance to learn about the four penny pot stocks my research is highlighting now. Actually, I'll throw in a fifth penny pot stock just for fun.With legalization about to hit possibly in the next few weeks - it's now or never.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post 4 Pot Stocks to Own for Full-Blown Federal Marijuana Reform appeared first on InvestorPlace.