|Bid||47.80 x 1000|
|Ask||47.80 x 1000|
|Day's Range||47.62 - 48.36|
|52 Week Range||42.40 - 66.04|
|Beta (3Y Monthly)||0.35|
|PE Ratio (TTM)||14.59|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||3.20 (6.56%)|
|1y Target Est||58.73|
Vape-maker Juul hits back on San Fran's unanimous vote to ban e-cigarette sales over underage vaping concerns. Yahoo Finance's Zack Guzman & Kristin Myers, along with NY Post Hedge Fund reporter Carleton English discuss with Stanford University Professor Dr. Robert Jackler.
Stocks are once again soaring despite calls for greater market volatility. The S&P 500 touched new intraday highs today. Mark Devaul, Hennessy Equity and Income Fund Equity portfolio manager.
Akerna, a company that provides compliance software to the cannabis industry, headed to the Nasdaq today under the ticker KERN and the backing of an early Facebook investor. Yahoo Finance's Dan Roberts, Heidi Chung and Myles Udland speak to Akerna CEO Jessica Billingsley.
were down Wednesday after San Francisco banned the sale of e-cigarettes, becoming the first American city to do so. Altria purchased a 35% stake in e-cigarette maker Juul in 2018 for $12.8 billion. Juul had revenue of about $2 billion last year as its market share in the e-cigarette market reached 72%.
(Bloomberg) -- Although San Francisco is home to America’s most popular e-cigarette brand, city officials are signaling that they want nothing to do with Juul.The city voted Tuesday to ban sales of e-cigarettes, making it illegal to sell nicotine vaporizer products in stores or for online retailers to ship the goods to San Francisco addresses. The ban will be the first of its kind to go into effect in the U.S.The ordinance will now go to the mayor to sign into law. Cigarettes and other tobacco products will remain legal in the city, along with recreational marijuana.As cigarette use in the U.S. declines, tobacco companies have looked to other areas for revenue growth. Altria Group Inc., which sells Marlboro cigarettes in the U.S., bought a 35% stake in Juul Labs Inc. last year, valuing the startup at $38 billion. Juul told investors last month that revenue rose to $528 million in the first quarter, as international sales took off. This week, an Indonesian retail chain that sells iPhones said it expected to begin carrying Juul products, sending its stock surging.The legislation in San Francisco is aimed at all e-cigarette companies, but it has to feel personal for Juul. The San Francisco-based startup is the biggest target for vaping critics, who say it’s hooking kids on nicotine and creating a new generation of addicts.Juul said it’s committed to stopping people under 21 from buying or using its products, but it wants to keep its vaporizers available to adult smokers looking for an alternative to cigarettes. “This full prohibition will drive former adult smokers who successfully switched to vapor products back to deadly cigarettes, deny the opportunity to switch for current adult smokers and create a thriving black market instead of addressing the actual causes of underage access and use,” Ted Kwong, a spokesman for Juul, wrote in an email after the vote.Read more: The debate over vaping—a QuickTake explainerAfter Tuesday's vote, Mayor London Breed has 10 days to review the legislation. If she signs it, the ban will take effect seven months later, when Juul and similar products will have to be removed from store shelves.Juul has a backup plan: Put the issue in front of voters. The company said it has collected the required number of signatures to add a measure to the November ballot that would keep e-cigarettes available for purchase in the city to adults over 21. Juul is the major financier behind the Coalition for Reasonable Vaping Regulation, which has been collecting signatures.On Tuesday, city supervisors also passed an ordinance blocking the sale, manufacture and distribution of e-cigarettes on city property. Juul currently leases office space from the city on Pier 70, but because the ordinance doesn’t apply retroactively, Juul will be able to stay in its space. Even so, Juul has a backup plan for this, too: Last week, the company said it bought a 29-floor office tower at 123 Mission Street and plans to start adding employees there in the next year.City Attorney Dennis Herrera co-sponsored the sales ban with a city supervisor because, he said, the U.S. Food and Drug Administration failed to require e-cigarette companies to go through a pre-market approval process before they were allowed to sell their products. The FDA began overseeing e-cigarettes in 2016 under the Obama administration. After Donald Trump took office the next year, the agency said it would push back until 2022 a requirement that vape companies submit applications to continue selling their products. Once a product has FDA approval, the legislation would allow its sale in San Francisco again.“We’ve seen a tremendous increase in use of e-cigarettes, which has led to increased rates of nicotine addiction among young people,” Herrera said. “I don’t think San Francisco is any different from any other city.”Three weeks ago, Beverly Hills, California, passed the first sweeping prohibition on most tobacco sales, including e-cigarettes, starting in 2021. But a sales ban can’t stop people from heading to nearby cities to get their nicotine fix. That doesn’t worry Herrera.“This is groundbreaking legislation that shows local governments are prepared to step up,” he said. “What you will see in the aftermath of this legislation is other jurisdictions looking at what they might be prepared to do to protect their young people.”(Updates with comment from Juul in the sixth paragraph.)\--With assistance from Anna Edney.To contact the author of this story: Ellen Huet in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.com, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As of June 21, Altria was trading at a forward PE ratio of 11.1x—compared to 12.8x before its first-quarter earnings were announced. Altria posted its first-quarter earnings on April 25.
Traders were willing to buoy the market up to April's record highs on Thursday of last week, but no more. The S&P 500 lost 0.13% of its value on Friday, leaving most market participants wondering if the surprisingly bullish June to date is nothing more than a mirage.Source: Allan Ajifo via Wikimedia (Modified)Altria Group (NYSE:MO) was arguably the biggest drag, off 4.5% on doubts that its much-lauded Juul e-cigarette brand would be able to secure the needed approval of the Food and Drug Administration when those products have to get the regulatory agency's green lights. Pot stock Canopy Growth (NYSE:CGC) was the bigger disappointment though. It fell more than 8% after investors had a chance to parse the details of Thursday afternoon's quarterly earnings report. Sales of recreational marijuana fell, sequentially, when they're supposed to continue rising on the wake of recent legalization in Canada.Overstock (NASDAQ:OSTK) did more than its part to keep the market in the black, gaining 15% in response to reports that a couple of potential buyers were mulling the purchase of its e-commerce arm, which is being shed so the company can focus on cryptocurrency.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt just wasn't enough. * 10 Best High-Growth Stocks to Buy for Young Investors Headed into Monday's trading, however, it's the stock charts of AbbVie (NYSE:ABBV), Paychex (NASDAQ:PAYX) and Medtronic (NYSE:MDT) that merit the closest looks. Here's why, and what to look for. AbbVie (ABBV)In late April it was noted that AbbVie was being squeezed into the tip of a converging wedge pattern, formed by a horizontal support line that had been holding up since October, and a falling resistance line that extended back to last May's high. Although the odds favored a bullish outcome despite the trajectory, it was clear that anything could happen. Waiting on one side or the other to flinch was the key.We're still waiting. Although ABBV shares slipped below that key floor a couple of times in the meantime, the floor mostly remains intact. Some new falling resistance lines have since come into play, though the old one marked with a dashed blue line remains part of the equation. Either way, we're getting closer to a decision, if only because there's not much room left to meander between support and resistance. Click to Enlarge * The floor, of course, is still the support area right around $77, marked in yellow on both stock charts, though you could make the case that a slightly declining one has since materialized. It's plotted in red. * It became noteworthy again on Friday just because of the amount of bullish volume that materialized. * While the bulls may be pushing again, it's clear they're struggling just to break above the gray 100-day moving average line that has quelled a couple of rally efforts since early April. Medtronic (MDT)Back in March we looked at Medtronic as it was toying with the idea of a major break above a resistance line around $94, plotted in blue on the daily chart. That didn't happen … at least not right away. As it turns out, MDT would have to peel back one more time and then try again. This month's effort did the job.The speed and distance of that move, however, has also spurred concerns that this usually volatile name is already due for some profit-taking again. When one takes a step back and looks at the longer-term view, however, it's clear there's room for a bit more upside until the upper boundary of a major trading range is encountered again. * 7 Top S&P 500 Stocks of 2019 (So Far) Click to Enlarge * The upper part of the weekly chart's bullish trading range is right around $110, but rising. * On that same weekly chart we see a relatively new bullish MACD crossover in conjunction with a push up and off the lower edge of the long-term trading channel, suggesting this effort's got some "oomph." * In the meantime, last week's high of right around $100, marked with a yellow line, shouldn't be taken lightly. That's more or less where Medtronic shares peaked a couple of times in the last part of last year. Paychex (PAYX)Finally, with nothing more than a quick glance at the Paychex chart, it appears the stock is still in an uptrend, though a slowing one. And, perhaps that benign outcome is what lies ahead. Only time will tell.But, given the sheer scope of the rally since late last year, the slowdown is concerning simply because it may point to an outright reversal into a downtrend. The pump for such a pullback is certainly primed. The good news is, we know exactly where the make-or-break lines are, and what they are. Click to Enlarge * It hasn't come into play yet, but at the current rate of things, it will soon. That is, the purple 50-day moving average line at $84.98 may or may not keep PAYX propped up on its next, impending test as support. * Zooming out to the weekly chart we can see just how unusual the past six months have been. Paychex should have rolled over in March somewhere around $79, at the upper boundary of an established trading range. * We have not yet seen a bearish MACD crossunder in the weekly timeframe, but we're getting closer. That will likely coincide with a break below the 50-day average line.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Telecom Stocks to Set on Speed Dial * 6 Stocks to Sell in the Back Half of 2019 * 7 Top S&P 500 Stocks of 2019 (So Far) Compare Brokers The post 3 Big Stock Charts for Monday: Medtronic, Paychex and AbbVie appeared first on InvestorPlace.
Scott Gottlieb’s comments might have led to a fall in Altria’s stock price on June 21. At the closing on June 21, the company was trading at $48.00—a fall of 4.5% from the previous day’s closing price.
The hottest marijuana stock in early 2019 was Cronos Group (NASDAQ:CRON). CRON stock rallied tremendously in early 2019 after the company scored a multi-billion dollar investment from global tobacco giant Altria (NYSE:MO).That investment put Cronos stock in unique company; the only other cannabis producer to score such an investment thus far is Canopy Growth (NYSE:CGC), and CGC, with a a $15 billion market cap, is widely considered the 800-pound gorilla of the cannabis world. In late 2018, Cronos stock had a $2 billion market cap.So the owners of CRON stock were euphoric about the Altria investment. They took it as a sign that Cronos now had the necessary firepower and resources to become a very big and important player in the cannabis market. Consequently, CRON stock rose from $10 in late 2018 to $25 by early March 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top S&P 500 Stocks of 2019 (So Far) But Cronos hasn't delivered on the hype. Instead, the company reported subpar early 2019 numbers which basically affirmed that Cronos isn't gaining share like investors had expected it to. As a result, CRON stock has fallen over the past few months. Today, its shares trade hands for about $16.The problem is that CRON stock is still far more richly valued than all of its peers. Thus, the stock price still indicates that the company will start generating strong growth in the foreseeable future. But current trends imply that such a rebound is unlikely to materialize.So Cronos stock should be avoided until CRON's higher growth does materialize because right now CRON offers too much risk and not enough reward. Cronos Stock Is Still Overvalued Relative to Its PeersAlthough CRON stock presently trades almost 40% off its 2019 highs, the stock is still overvalued relative to its cannabis peers. Further, there doesn't seem to be any good reason for the premium valuation of Cronos Group stock.Cronos has a market cap of $5.2 billion. The company sold just over 1,100 kilograms of cannabis last quarter. That means each kilogram of cannabis sold last quarter by Cronos is being valued by the market at roughly $4.7 million. That number ranges between $800,000 and $1.5 million for the three other big players in the Canadian cannabis market - Canopy, Aurora (NYSE:ACB), and Tilray (NASDAQ:TLRY) . Those three companies are trading at a average valuation of $1.3 million. per kilogram Thus, on a per-kilogram basis, the valuation of CRON stock is 260% higher than its peers.Why is Cronos stock getting a premium valuation? It has nothing to do with size. Cronos is much smaller than Canopy, Aurora, and Tilray. It also has nothing to do with growth. Last quarter, Cronos reported the slowest year-over-year revenue growth in the group. Nor does it have anything to do with U.S. market expansion, as Cronos hasn't announced anything too special on that front, while Canopy looks positioned to dominate the U.S. market with its Acreage acquisition.CRON stock has a premium valuation because of the $1.8 billion investment it received from Altria. But CRON stock's enterprise-value-to-expected-2020-sales multiple is around 25, versus an average of 15 for CGC, ACB, and TLRY.That $1.8 billion of cash could fuel acquisitions, expansions, and stronger growth. But that isn't happening yet. Until it does happen, CRON stock simply appears overvalued relative to its peers. CRON's Long-Term Fundamentals Don't Support Its Current ValuationThe bigger problem with Cronos stock is that it appears overvalued relative to its long-term growth prospects.Cronos is a small player in the Canadian cannabis market. In the fourth quarter of 2018, the sales of the legal Canadian cannabis market were worth around $150 million. Cronos reported revenue in that same quarter of roughly $4.2 million. Thus, Cronos commanded market share of about 3%. Given analysts' consensus projections regarding Cronos' sales and the Canadian cannabis market, it looks like most experts expect Cronos' market share to remain about 3% for the foreseeable future.On a global scale, that market share will assuredly come down as more competitors enter the cannabis sector. Thus, CRON's longer term market share in the $200 billion global cannabis market could be about 2%. That implies long-term revenue potential of $4 billion. Gross margins in the industry should hover around 55%, which is roughly where alcoholic beverage makers' gross margins stand today. CRON's operating spending rates should fall as it grows and will likely moderate around 30%. Thus, its longer term operating margins could be 25%. Assuming it generates $4 billion of revenue, it should have $1 billion of operating profit.After taking out 20% for taxes, its net profit would be $800 million. Based on a market-average 16 multiple, the long-term valuation target for Cronos stock is $12.8 billion.That will all take a long time to occur. Most industry insiders and analysts expect its growth to play out over 10 to 15 years. At the midpoint, that's about 12.5 years. After discounting that $12.8 billion valuation target back by 10% per year over 12.5 years, the present valuation target for Cronos stock comes out to less than $4 billion.CRON stock has a market cap above $5 billion today. Thus, until this company uses the $1.8 billion on its balance sheet to supercharge its growth and boost its growth outlook, CRON stock looks overvalued today. The Bottom Line on CRON StockThere is a valid argument for why CRON stock should be worth a lot more than it is today. But that argument relies on Cronos doing something it hasn't done yet: using the $1.8 billion on its balance sheet to materially gain market share in Canada and lay the groundwork for higher share in international markets.Until that happens, CRON stock will remain a "high risk, low reward" name, meaning that Cronos Group stock is best avoided for the foreseeable future.As of this writing, Luke Lango was long CGC and ACB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Telecom Stocks to Set on Speed Dial * 6 Stocks to Sell in the Back Half of 2019 * 7 Top S&P 500 Stocks of 2019 (So Far) Compare Brokers The post Why Cronos Group Stock Still Looks Overvalued appeared first on InvestorPlace.
fell Friday after a former Food and Drug Administration commissioner expressed doubts about whether e-cigarette producer Juul would see the agency clear its products for continued sale. Richmond, Va.-based Altria holds 35% of Juul, the San Francisco producer of e-cigarettes, which contain a battery, heating element and a nicotine-infused liquid. "Juul is in a hard spot to ever get their product approved," Scott Gottlieb told CNBC's "Squawk Box" in an interview.
(Bloomberg) -- The former commissioner of the Food and Drug Administration said he thinks Juul Labs Inc. will have a difficult time getting its e-cigarette approved under rules that will eventually force makers of the devices to go through government review to keep selling to consumers.“Juul is going to be in a hard spot to ever get their product approved,” ex-Commissioner Scott Gottlieb, who stepped down from leading the agency earlier this year, said on CNBC Friday.Altria Group Inc., which sells Marlboro cigarettes, bought a $12.8 billion stake in Juul last year. Shares of the tobacco company closed down 4.5% to $48 in New York, the lowest closing price since Jan. 30.During his two-year tenure atop the FDA, Gottlieb initially took a cautious approach toward strictly regulating e-cigarettes, seeing them as a tool to help adult smokers quit. He evolved into a harsh critic, calling youth use an “epidemic” and said that Juul and other e-cigarettes had attracted previous nonsmokers.To respond to a lawsuit claiming the agency failed to sufficiently regulate the products, the FDA has proposed giving manufacturers 10 months to submit applications to keep selling the nicotine devices.Juul said it's working on its application to the FDA, which will include information on how the product can help existing smokers stop using cigarettes. ``We are confident adult smokers will not be left without a viable alternative to combustible cigarettes,'' said Juul spokesman Matt David.Juul is popular with many young and underage people, and public health advocates have said that the company specifically targeted younger users. The company has pulled back on some marketing activities and has taken steps to make sure its product reaches only people of appropriate age. Juul’s website says that “We don’t want anyone who doesn’t smoke, or already use nicotine, to use Juul products.”“We remain confident that Juul can successfully navigate the PMTA process,” Altria spokesman Steven Callahan said in an emailed statement. PMTA refers to the FDA’s premarket tobacco application rules. A federal judge said last month the FDA must speed up its implementation of the rules, though hasn’t made a final ruling on the agency’s proposal.A spokesman for the FDA didn’t immediately provide a comment.Government health officials are also researching the use of Juul as part of a regular survey that gauges youth tobacco use. The data they collect could have an impact on the likely review of the devices.“If we see a further increase in overall use, and respondents report to using Juul mostly, then we think whatever Juul says, and whatever actions they point to that they have implemented, it won’t matter,” Ryan Tomkins, a stock analyst with Jefferies, said in a note to clients Friday.(Adds Juul statement in sixth paragraph)\--With assistance from Janet Freund, Tiffany Kary and Anna Edney.To contact the reporter on this story: Drew Armstrong in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Drew Armstrong at email@example.com, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Declining cigarette sales and volumes continue to pressure large tobacco companies. To combat falling tobacco demand, industry giant Altria Group, Inc. (MO) has raised its prices six cents per pack, or $3 per carton, according to Wells Fargo analyst Bonnie Herzog, per Barron's. Herzog argues that the move demonstrates Altria's pricing power, adding that British American Tobacco p.l.c.
Altria Group (MO) is a tobacco products giant. Its core tobacco business holds the flagship Marlboro cigarette brand, explains income expert Ben Reynolds, editor of Sure Retirement.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
Altria Group Inc NYSE:MOView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for MO with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting MO. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding MO are favorable, with net inflows of $13.20 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. Although MO credit default swap spreads are decreasing, they remain near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Shares of Cronos Group (NASDAQ: CRON) are starting to stabilize. After its weak first-quarter revenue report reminded investors that Cronos stock was very expensive, speculators are buying the shares once again. Why?Cronos has a $7.9 billion market cap but with its quarterly revenue of CAD $6.5 million (USD ~ $5 million or $20 million annualized), the company trades at 154 times sales.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCronos has no room to report any signs of slowing revenue growth in the near-term. It must continue winning supply deals to grow market share. And on May 14, it did just that. The company inked a $30 million multi-year supply deal with MediPharm Labs over 18 months.The deal could optionally extend to $60 million over 24 months. Cronos will secure MediPharm's private label supply of concentrates, after processing Cronos' dry cannabis.The supply deal validates Altria's (NYSE: MO) $1.8 billion investment in Cronos. By outsourcing the process to a secondary player, Cronos may put Altria's cash to better use. Altria outsources its own tobacco production to thousands of farmers and probably advised Cronos to do the same. * 7 Top-Rated Biotech Stocks to Invest In Today Instead of spending all of its resources on building up production facilities, it could land additional partnership deals while sharing risks with them. Cronos is bullish on its partnerships, especially with its work with Ginkgo.In the September 2018 press release, Cronos said, "The landmark partnership between Cronos Group and Ginkgo will leverage the expertise of both organizations to solve this challenge and make more accessible the benefits of cannabinoids in an economically sustainable way."Since then, Ginkgo met its targets, triggering milestone payments. Ginkgo is a leader in synthetic biology, giving Cronos an advantage over the competition as the science works eventually bring meaningful results. Mixed First-Quarter Results and Cronos StockIn the first quarter, ASP (average selling price) rose 7% to $5.73 due to higher revenue from CBD oil. Operating expenses also rose 12%, as Cronos incurred professional fees for services related to its strategic initiatives.Despite the mixed numbers in the period, Cronos enjoys massive cash levels on its balance sheet that negates any investor worry over quarterly results. Altria's backing puts Cronos in a better position to capture opportunities that arise and to accelerate its strategic initiatives.Cronos has four strategic goals. It is establishing a global production footprint, developing a diversified global sales and distribution network, creating disruptive intellectual property, and growing a portfolio of products that resonates with consumers.Since January 2019, Cronos secured listings with a number of private retailers in Canada and in the province of Ontario, British Columbia, Nova Scotia, and Prince Edward Island. Collectively, those five provinces represent 58% of the Canadian population. Cronos Putting Altria Cash to WorkCronos plans to increase its capital investments to support an increase in production. The company expects Peace Naturals ramping up production through the course of 2019. The company has partnerships with companies in Israel, where it is developing a vapor product.Cronos will have additional production capacity ready in the upcoming second half of the year. It had around 1000 kilos of capacity in the first quarter and aims to have 40,000 kilos next. Getting production to that level will depend on how regulations change. Cronos is scaling up output depending on product demand levels, and demand is a function of regulatory changes that open up the market opportunity. Cronos had over $2 billion on its balance sheet in Q1 but is demonstrating restraint in the way it spends that cash. The Bottom Line on Cronos StockCronos is not profitable yet and its market size is still unknown. Though the company is still losing money, its nearly $2 billion cash balance gives the company plenty of M&A opportunities. Analysts are bullish on the company and have an average price of $28.50 on Cronos stock.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post After a Bumpy Few Months, Cronos Stock Is Back on the Move appeared first on InvestorPlace.
Is Altria Group Inc (NYSE:MO) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds […]