|Bid||56.44 x 1100|
|Ask||56.45 x 1400|
|Day's Range||55.60 - 56.49|
|52 Week Range||42.40 - 66.04|
|Beta (3Y Monthly)||0.27|
|PE Ratio (TTM)||15.33|
|Earnings Date||Apr 25, 2019|
|Forward Dividend & Yield||3.20 (5.72%)|
|1y Target Est||57.47|
CVS has announced it will begin to sell topical CBD products at stores in Alabama, California, Colorado, Illinois, Indiana, Kentucky, Maryland and Tennessee. Yahoo Finance’s Dan Roberts, Akiko Fujita, Sibile Marcellus, and Alexis Keenan talk about the pharmaceutical chain’s decision to go green.
E-cig industry faces pressure in San Francisco. Yahoo Finance's Zack Guzman & Melody Hahm, along with Digiday Platforms Reporter Kerry Flynn discuss.
Altria shares are falling after a report that San Francisco officials are looking into cracking down on Juul. CNBC's Aditi Roy reports.
In an environment that's already seen a great deal of partnering and acquisitions, it's interesting that one of the biggest cannabis producers has gone untouched, and perhaps largely unnoticed. That's Canada's Aphria (NYSE:APHA). Friday's market saw APHA stock close down more than 5%.Don't let the lack of M&A/JV interest deter you from owning Aphria stock. While the premise of teaming up with big-name partners seems like a step forward for cannabis suppliers that need to expand their distribution networks and product lines, in reality, those team-ups may or may not be the game-changers they're hoped to be. Flying solo -- at least for the time being -- may well be the smart move for Aphria here. No Partner YetAlcoholic beverage company Constellation Brands (NYSE:STZ) was the first to get the ball rolling, expanding its small investment in Canopy Growth (NYSE:CGC) to the $4 billion level last August, just ahead of Canada's legalization of recreational marijuana. Altria Group (NYSE:MO) made its own move in December, shelling out $1.8 billion for a 45% stake in Cronos Group (NASDAQ:CRON).InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn both cases the deals were more than mere investments. They were meant to set the stage for collaboration on new products, even without knowing what those products might be or where they may be sold. * 7 Beaten-Up Stocks to Buy as They Reverse Course Thus far, however, Aphria hasn't caught the eye of any legitimate suitors despite the fact that it's the world's third-biggest grower and boasts a licensed distribution network that spans Canada. It's also got rights to sell marijuana in parts of Europe, South America, Africa and Australia, readying it for rapid penetration of the international market when someone wants to make that happen.Source: New Frontier Data'Legitimate' is the operative word here. The much-smaller Green Growth Brands (OTCMKTS:GGBXF) is trying to orchestrate a hostile takeover, but so far few seem interested. Aphria's argument that the offer of 1.57 shares of GGB for every one share of Aphria stock is inadequate has held up.Still, what do Cronos and Canopy Growth have that Aphria doesn't? Not much. But, a lack of a high-profile partner may not entirely matter.Or, maybe Aphria's got an ace in the hole nobody fully realizes it's holding. Remaining PatientContrary to the message that cannabis M&A mania may be sending, the industry's bigger players don't necessarily need booze or cigarette giants to capture market share within the nascent industry.Brand names ranging from Broken Coast, Good Supply, RIFF and Goodfields are all part of the Aphria family, giving the company exposure to all price points and preferences within the recreational marijuana market. It's also entrenched in the cannabis oil and medical marijuana market.But it doesn't yet have a partner.It does want one, though. In November, then-CEO Vic Neufeld acknowledged "We are very desirous, if I could say that. We've had conversations with many entities and beverage is part of it." He went on to explain to BNN Bloomberg "When Aphria makes the ultimate decision to get into bed with a strategic partner, we want to make sure that they bring the brands that we can leverage together with who we are, what our vision is, and our science."Neufeld is now gone, replaced for the time being by interim CEO Irwin Simon. He's of the same mindset though, saying in early January before Neufeld stepped down that suitor Green Growth could become a strategic partner.No executive or insider is terribly stoked about being owned by Green Growth, however. * 10 Stocks on the Rise Heading Into the Second Quarter But, that's not to suggest the company won't find a big-brand partner just because one hasn't come knocking yet. Acting CEO and board chairman Irwin Simon? He's the former chief of food and beverage company Hain Celestial Group (NASDAQ:HAIN). He's got connections within the industry, when the time and opportunity are right. Bottom Line on Aphria StockIn some regards it would be interesting to see a cannabis company shrug off overtures and make a point of developing its own products and distribution channels, free of the influence that a beverage or cigarette outfit may exert.It's not an experiment to make with real capital, though. It's also not an experiment that's likely to take shape. Aphria doesn't have a big investor/partner yet, and Aphria stock has been a sub-par performer since merger-mania began.Holding out for the right deal, however, may actually be a stroke of brilliance rather than a red flag that could benefit APHA stock holders.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 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Aphria Doesn't Have A Big Partner Yet, But That's Okay appeared first on InvestorPlace.
Cannabidiol (CBD) is emerging as a red-hot category of the marijuana industry. CBD includes compounds in the cannabis sativa plant that do not produce a high. In fact, over the years, CBDs have been shown to have powerful therapeutic effects.Now it looks like the U.S. market could open up in a big way for this type of cannabis and several CBD stocks are gaining traction. The reason: In December, Congress passed the 2018 Farm Bill, which declared that CBD would no longer be treated as an illegal substance.So how big could this opportunity be? Well, according to research from the Brightfield Group, the market in the U.S. could hit $22 billion by 2022.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best ETFs to Buy in the Second Quarter No doubt, this could move the needle for marijuana stocks -- and here's a look at seven that stand out: Cronos Group (CRON)Cronos Group (NYSE:CRON) operates a vertically integrated cannabis platform, with a presence across five continents. In terms of the CBD opportunity, the company recently struck a strategic partnership with Gingko Bioworks, which has raised $430 million. The company's founder, Tom Knight, is known as the "father of synthetic biology" and his innovations -- such as with software to print DNA -- should allow for the creation of cannabinoids at a massive scale. This is critical because it can be difficult to produce pure forms that are cost-effective and precise.CRON also has the advantage of substantial financial resources to commercialize its cannabinoids. Last December, Altria (NYSE:MO) invested $1.8 billion into the company for a 45% stake. The deal is certainly a validation of CRON but it will also allow for much broader distribution and improved product development.Of course, a company like MO does engage in substantial due diligence before making an investment. In the latest earnings call, CEO Howard Willard said: "We believe the growth opportunities are significant and will extend across the globe as cannabis markets open. Selecting the right partner in this category was critical and we've done just that. Cronos strong management team has built unique capabilities to compete globally across the medicinal, recreational and nutraceutical categories." Aurora Cannabis (ACB)Aurora Cannabis (NYSE:ACB), a Canadian based cannabis producer, has been building up its CBD business. Part of this has been with its investments in industrial hemp production, such as with the Radient facility in Edmonton. It is expected to get as much as 10,000 kilos per day.Next, ACB has been focused on revving up its product offerings. According to the latest earnings call, Chief Corporate Officer Cam Battley, the company is poised "to launch a broad line of CBD based wellness product in the near future."What's more, ACB has been aggressive with its dealmaking. For example, it has increased its equity position in Hempco and purchased Agropro, which is Europe's largest hemp producer. * 10 Stocks on the Rise Heading Into the Second Quarter Something else to keep in mind: Legendary billionaire investor Nelson Peltz has joined the company as an advisor. This is certainly a major vote of confidence. He not only has deep access to investment capital but a strong network of potential partners, especially in the consumer goods industry. Some of his investments include stakes in PepsiCo (NASDAQ:PEP), Procter & Gamble (NYSE:PG) and Mondelez (NASDAQ:MDLZ). Charlotte's Web (CWBHF)The inspiration for the founding of Charlotte's Web (OTCMKTS:CWBHF) was a CNN documentary -- in 2013 -- about Charlotte Figi, whose health was significantly improved because of a hemp extract.Fast forward to today: The company is the No. 1 brand for the hemp-derived CBD market in the U.S. It definitely helps that it has distribution across more than 3,000 retail locations.And yes, growth has been strong. In the latest quarter, revenues jumped by 57% to $17.7 million and adjusted EBITDA came to $5.4 million, up 31%.To better capitalize on the CBD opportunity, CWBHF recently issued $71.5 million in stock. This will be for cultivation and production to meet surging demand. Here's what the company's CEO, Hess Moallem, had to say: "In general, broader consumer awareness of the benefits of cannabinoids, namely cannabidiol (CBD), and whole plant hemp extract is driving increased uptake in both our retail channels and within our e-commerce platform."In other words, it seems like a pretty good bet that the growth will continue for some time. Zynerba Pharmaceuticals (ZYNE)Zynerba Pharmaceuticals (NASDAQ:ZYNE) is a clinical-stage biotech company that develops cannabinoid therapies for a variety of rare diseases. They include: * Fragile X Syndrome (FXS): This is a developmental disability that has been known to cause autism spectrum disorder. FXS impacts 71,000 people in the U.S. and there are no drug indications for it. * Developmental and Epileptic Encephalopathies (DEE): This is an epilepsy syndrome that involves severe cognitive impairment. About 45,000 children and adolescents have this in the U.S. * Autism Spectrum Disorder (ASD): This includes autism and Asperger's syndrome. ASD affects less than 1 million pediatric and adolescent patients. * 7 Retail Stocks That Will Continue to Rebound in 2019 ZYNE's main candidate is Zygel, which is a CBD formulation gel for transdermal delivery. As for the FXS treatment, there is expected to be a pivotal data release in the second half of this year. And if the trial is positive, then the company will file a New Drug Application (NDA) for Zygel in the first half of 2020. Canopy Growth (CGC)Since 2016, Canopy Growth (NYSE:CGC) has been building its CBD business, with a focus on consumer packaged goods. The company has since created a vertically integrated platform for that includes a set of technologies that have pending patents. What's more, the hemp division is expected to yield 7,000 kilos of hemp-derived CBD on an annual basis. Granted, this cannot be used in the U.S. market. Yet CGC is likely to be a solid partner. For example, the company recently struck a deal with Martha Stewart's Sequential Brands Group, so as to develop CBD remedies for pets.It helps that CGC has substantial resources, which came from a mega $4 billion investment from Constellation Brands (NYSE:STZ). STZ has a strong global footprint -- with operations in the U.S., Mexico, New Zealand, Italy and Canada -- as well as a set of well-known consumer brands, such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. All in all, there is quite a bit of synergy for CGC.In the meantime, the company is growing at a staggering pace. In the latest quarter, revenues soared by 282% to $83 million. GW Pharmaceuticals (GWPH)The origins of GW Pharmaceuticals (NASDAQ:GWPH) go back to 1998. It was then that Dr. Geoffrey Guy and Dr. Brian Whittle co-founded the company to focus on developing therapies using cannabinoid formulations to target areas like epilepsy, glioma and schizophrenia.As of today, the lead product is a liquid formulation of a CBD, called Epidiolex, which received FDA approval in 2018 (the expectation is that there will be an approval in Europe in the second quarter). The drug targets the rare conditions of Lennox-Gastaut syndrome (LGS) or Dravet syndrome, which are variations of epilepsy. Furthermore, there are other indications for Epidiolex, such as Tuberous Sclerosis Complex and Rett Syndrome. * 7 ETFs for a Millennial Portfolio But of course, the company has other treatments. Note that GWPH is looking to get approval in the U.S. for Sativex, which is an oromucosal spray for multiple sclerosis. It is currently available in 25 countries. Horizons Marijuana Life Sciences ETF (HMLSF)If you do not want to buy individual CBD stocks, then you can consider an exchange-traded fund, such as the Horizons Marijuana Life Sciences ETF (OTCMKTS:HMLSF). With this, you'll get exposure to companies like Canopy Growth, Aurora, GW Pharamceuticals, HEXO and Tilray (NASDAQ:TLRY).In all, there are 59 stocks in the portfolio and the net assets are about $1 billion (in Canadian currency). The expense ratio is also 0.75%.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 7 Marijuana Stocks to Play the CBD Trend appeared first on InvestorPlace.
Last year was all strike and no lucky for traditional cigarette makers, and vaping was the major culprit: E-cigarettes may not be terribly helpful when it comes to quitting tobacco, but they are taking greater and greater market share. Juul Labs, which Altria invested in late last year, has prevailed in the U.S. while a rival product from (PM) (PM) languishes without government approval. In fact, “Juul could ultimately be the Marlboro of e-vapor,” she writes, while its international runway looks robust thanks to a strong pipeline of new products.
I'll be honest: I simply don't understand the bull case for Coca-Cola (NYSE:KO). The KO stock price has held up reasonably well in recent years, admittedly. But Coca-Cola stock isn't cheap. There are obvious risks to demand going forward. Add on disappointing growth, and the numbers here don't seem to add up.Source: Coca-ColaI concede that I've long been a skeptic toward KO stock. I called it "expensive" 20 months ago at roughly the same price, and it's at least held up. On this site, Luke Lango made a "buy the dip" case last month; a few days later, Josh Enomoto highlighted the company's opportunity in China.With all due respect, I disagree. The issue from here is that many investors are valuing Coca-Cola for what it was: a wonderful business that produced steady growth and lockstep increases in its dividend. Coca-Cola stock famously has made billions of dollars for Warren Buffett and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B). It's also been a great long-term investment for the rest of us.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter But times change. And those changes have notably shifted the investment case here. The KO Stock Price Tumbles After EarningsAt this point, it seems increasingly difficult to make the fundamental case for Coca-Cola stock. A multi-year transformation -- including a "refranchising" of its bottling operations -- has hit revenue in recent years, but it was supposed to create a leaner, more profitable company.That's a key reason why the KO stock price fell over 8% after disappointing earnings last month -- a huge move for a typically low-volatility stock. Guidance for 2019 was much weaker than expected. Coca-Cola expects earnings growth of -1% to 1% against 2018's $2.08.Investors were hoping for much more after the refranchising. The problem goes beyond results for a single year, however, as 2019 guidance implies EPS of $2.06 to $2.10. In 2013, Coca-Cola's non-GAAP EPS was $2.08. Over six years, including a massive transformation, earnings per share will barely move, if at all.But even that doesn't tell the full story.Coca-Cola stock, like so many other U.S.-based investments, has benefited from a lower tax rate. The underlying (i.e., adjusted) tax rate in 2013 was 23%. It's estimated to be 19.5% in 2019. That lower rate provides a 4.5% benefit to net earnings. Billions of dollars in share buybacks boost EPS as well. Considering this, Coca-Cola has 4.5% fewer shares outstanding than it did in 2013. In other words, KO is making less pre-tax profit than it did six years ago (the figure has declined about 8.7% by my math).And yet, Coca-Cola stock trades for 22x the midpoint of 2019 EPS guidance. That multiple seems incompatible with the performance over the past few years. The Risks to KO StockTo be fair, a stronger dollar has been an issue, hitting revenues and profits overseas. Coca-Cola is projecting a significant currency headwind, with 6% to 7% impact on operating income in 2019 alone. This comes after a 4% hit in 2018. Essentially, much of the potential benefit of the refranchising has been swallowed by currency effects.That said, it's not as if the dollar is guaranteed to get weaker going forward. KO stock still looks reasonably expensive against even currency-neutral growth. Meanwhile, risks are rising.Soda consumption continues to decline in the U.S., dropping by 20%-plus over two decades according to one report. Coca-Cola has tried to diversify, acquiring Costa Coffee and sparkling water manufacturer Topo Chico last year. But a $5 billion coffee deal -- let alone a $220 million bottled water purchase -- doesn't move the needle much against a $200 billion market cap.The trend here is consistently negative, particularly in terms of diet soda. Sparkling waters from Nestle (OTCMKTS:NSRGY), National Beverage (NASDAQ:FIZZ) (even with some recent trouble), and private companies like Polar and Spindrift are taking share from diet soda. Neither Coke with its Dasani brand, nor Pepsi (NASDAQ:PEP) with its Aquafina, have been able to win much in that market. New BrandsMeanwhile, HSBC Securities highlighted an interesting stumbling block for Coca-Cola's plans for expansion. Coca-Cola has looked to new extensions, including flavored Diet Coke and an orange-vanilla offering for its full-calorie brand. But, as HSBC pointed out, those efforts are likely to upset the same bottlers who have taken over Coke's operations.Smaller products have high startup costs, as well as long payback periods. Coke's refranchising may slow it from following the brand expansion strategy that's currently popular among consumer companies. It's a bit analogous to the risk facing Coke customers McDonald's (NYSE:MCD) and Restaurant Brands International (NYSE:QSR). Those companies have shifted costs to their franchisees too. However, those franchisees may rebel as their parents look to compete solely on price or otherwise push the limits of their profitability. Not Enough GrowthFrom here, zero growth isn't worth the risks facing the industry. As such, KO stock looks far too expensive. I asked last year if Coca-Cola might be the next giant to stumble after consumer heavyweights Anheuser-Busch InBev (NYSE:BUD), Kraft Heinz (NASDAQ:KHC), and Altria (NYSE:MO) saw big declines.It hasn't happened yet, even with the post-Q4 selloff. But I wouldn't be shocked if it did. In fact, I'd be less surprised if KO stock fell sharply than if Coca-Cola somehow figured out how to grow in an industry destined for long-term declines.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Coca-Cola Stock Still Is Too Expensive appeared first on InvestorPlace.
Cannabis stocks are climbing this year and Aurora Cannabis (NYSE:ACB) is among the leaders of that pack. Shares of ACB stock have nearly doubled year-to-date and are in the midst of a breathtaking March rally of more than 33%.Source: Shutterstock Returns like those, particularly in the short time frames, might give investors reasonable pause about Aurora Cannabis stock, or any other stock for that matter. Indeed, the risk/reward proposition on ACB stock looks a lot different today than it did at the start or 2019. In terms of upside potential, Aurora Cannabis stock would need to rally another 28% to reclaim its 52-week high.That is not an impossible climb for ACB stock, but the near- to medium-term issue is finding upside catalysts because plenty of good news is already baked into this marijuana stock. For example, ACB surged earlier this month on news activist investor Nelson Peltz is joining the company as an advisor. That sent ACB stock to a double-digit intraday gain and the shares are up more than 11% since then.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Analysts Say About ACB StockSell-side analysts are not correct about any stock 100% of the time. Investors that acknowledge that can help mitigate disappointments. That said, some analysts are bullish on ACB stock. * 10 Stocks on the Rise Heading Into the Second Quarter Earlier this month, Cowen's Vivien Azer -- one of the most respected analysts tracking marijuana equities -- initiated coverage of Aurora Cannabis with an Outperform rating and a price target that works out to the equivalent of about $10.50 in U.S. dollars."While establishing 20% market share has been an early success story in Canadian adult use cannabis, the company is uniquely positioned to drive leadership in both share and profitability," Azer wrote in a note, according to Barron's.The analyst "believes that Aurora will deliver positive earnings before interest, taxes, depreciation and amortization by its fiscal fourth quarter in June, making it one of the first of its peers to reach this milestone," reports Barron's.Some analysts also view valuations on ACB stock as favorable relative to other marijuana names. Consider this about the valuations assigned to some weed equities: Aurora Cannabis stock trades at a forward P/E ratio of 101 and a price-to-book ratio of 3, according to Morningstar data, and that's considered a value relative to its peer group. Peltz PowerAs was noted above, news of the activist investor Peltz getting involved with Aurora Cannabis is priced into the shares, but that does not diminish the importance of this news going forward. One of the biggest drags on Aurora Cannabis stock has been the company's inability to form partnerships with more mainstream companies as some of its rivals have.Think Constellation Brands (NYSE:STZ) taking a multi-billion stake in Canopy Growth (NYSE:CGC) or Altria (NYSE:MO) forming a partnership with Cronos Group (NASDAQ:CRON). Last year, it was rumored that Coca-Cola Co. (NYSE:KO), the world's largest soft drink company, held talks with Aurora to develop cannabidiol-infused beverages, but a deal did not materialize.Peltz has long tradition of working with management teams -- particularly at large consumer staples companies -- to streamline operations and bolster efficiencies to enhance profitability.Aurora Chairman Michael Singer mentioned the beverage, cosmetics, health and wellness and pharmaceutical industries as potential growth areas for his companies and Peltz could help the upstart cannabis company make inroads into those arenas. * 5 Stocks To Buy for the Happiest Employees The Bottom Line on ACB StockAurora Cannabis definitely shows promise in the marijuana space, and Nelson Peltz only adds to the pot stocks' legitimacy. For now, however, all of the good news looks priced into ACB stock -- even if a valuation of 100x forward earnings is a steal in the cannabis area.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post There's Smoke, But Is There Still Fire for ACB Stock? appeared first on InvestorPlace.
[Editor's note: This story was previously published in February 2018. It has since been updated and republished.]Often, when analysts or bloggers talk up the potential of marijuana stocks, the focus is on the consumer side of the industry. But some of the best stocks in the pot sector may be medical marijuana stocks.Indeed, it's on the medical side where growth likely is to be largest in the near term. Canada did legalize recreational marijuana in October, but investors promptly sold the news in response. U.S. legalization is likely to be a long slog. Attitudes are mixed in Europe -- but even in legalized markets anywhere, black market (and untaxed) operators will be able to take share.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, approval of medical marijuana (in the U.S. and elsewhere) seems to be moving at a faster pace. In such a highly regulated market, black market and even smaller producers likely will be shut out. Quality and consistency will be key. Here, scale will matter. And those companies that win early have the best chance of becoming market leaders -- and providing big gains for investors. * 10 Stocks on the Rise Heading Into the Second Quarter As always -- and particularly in this space -- investors need to mind the risks and size positions accordingly. But for investors who see medical marijuana stocks as the next big thing, these three are the best stocks for investors enamored with weed.Source: Shutterstock Charlotte's Web (CWBHF)Charlotte's Web (OTCMKTS:CWBHF) has become one of the leading players in CBD oil (cannabidiol). And though Charlotte's Web products are made from hemp -- at least for now -- instead of marijuana, the stock still looks like one of the best plays in the sector.InvestorPlace's Matt McCall named CWBHF (the stock also trades on the Canadian Securities Exchange, ticker CWEB) as his pick of the best stocks for 2019. And the case makes some sense. CBD oil sales are soaring and Charlotte's Web is a market leader. As McCall pointed out, the federal farm bill in the U.S. provided a catalyst by legalizing hemp.With so many customers yet to try CBD oil -- and so many existing users attached -- market growth should be huge. And while CWBHF isn't cheap from a valuation standpoint, its position as a market leader should allow it to grow into its valuation.Source: Shutterstock Cronos (CRON)Of late, marijuana producer Cronos Group (NASDAQ:CRON) has made the headlines for its consumer business. Most recently, tobacco giant Altria (NYSE:MO) invested some $1.8 billion in the company. The combination of Altria's advertising and distribution reach and Cronos' production capabilities would seem best fit for the consumer side of the business.But investors can't ignore that Cronos is a medical marijuana stock as well. In fact, it's that business that drives the majority of revenue at the moment. And it also has given the company a beachhead in multiple markets around the world, from its home market of Canada to Germany, Israel and Poland. * 5 Cloud Stocks to Help Your Portfolio Fly I wrote after the Altria deal that investors should stay patient with CRON stock. And in this market, that might still be wise advice. But with the stock seemingly having stabilized at around $20 it looks as if this stock is for real.Source: Shutterstock CannTrust (CTST)CannTrust (NYSE:CTST) has been one of the biggest victims of the post-legalization selloff. The stock lost more than half its value and touched a 52-week low in the process last year. Since it's December fall, it has more than doubles and remains on the uptrend.Unlike many peers, the company is profitable. And its established leadership in the Canadian medical marijuana industry should drive consistent growth and allow CannTrust to stay profitable. There is some retail exposure here as well, but unlike peers, CannTrust seems to have room to drive upside on the medical side alone.CannTrust also was able to get a listing on the New York Stock Exchange this year. Admittedly, uplisting hasn't helped pot stocks in and of itself (most notably Aurora Cannabis (NYSE:ACB) took a lot longer to take off than was expected), but it certainly didn't hurt.From a profitability standpoint, at least, CNNTF seems like one of the best stocks in the pot sector. And with valuation near the lows, at least some of the risks here likely are priced in.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 of the Best Stocks to Buy for a Dovish Federal Reserve * 5 Best Fidelity ETFs for Retirement Savers * 7 Blue-Chip Stocks That Could Lead the Market Higher Compare Brokers The post 3 Medical Marijuana Stocks to Buy appeared first on InvestorPlace.
Altria Group Inc (NYSE: MO) plunged Tuesday after Food and Drug Administration Commissioner Scott Gottlieb said he's concerned about the slow pace of efforts to curb youth smoking. Gottlieb lamented Juul and Altria’s lack of progress in prohibiting youth access. Lewandowski said she suspects any threats will lose bite over time.
Shares of Aurora Cannabis (NYSE:ACB) have been soaring lately, up 25% in just a few trading sessions. Because of this giant move, investors are wondering if now's the time to get in on ACB stock or if a 25% rally means they missed their chance.Source: Shutterstock What's the verdict?I wouldn't say there's no upside left, but the risk-reward profile has certainly muddied. Unfortunately, investors who are suffering a case of FOMO -- a "fear of missing out" -- have no reason to be. There was ample time to buy this name, even after the big rally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's look at the charts to see why. Trading ACB Stock Click to Enlarge There are so many choices in the investing world that I do not like to be a "told you so" person. Meaning that even studious followers of the stock market can't act on everything they see and read. In the case of ACB stock, though, perhaps investors can extract a lesson. * 7 Video Game Stocks on Steep Discount Notice how the stock gapped higher by about $1 per share last week, closing near $9 after previously closing near $8. Many would argue that this ~12.5% gain was simply too much of a rally and they'd have to move on to something else. I needed to see how ACB stock would trade over the next few days, too, as I don't want to chase a double-digit move.The next day ACB stock put in an "inside day." That's where a stock's daily range trades within the range of the prior day. Notice on the chart above how the second candle following the big gap-up candle is within its range? After a big rally like this, that's a great consolidation pattern that bulls want to see. It shows that longs aren't winning to sell and shorts don't have enough "oomph" to drive it down.The next day, ACB stock began what looked like another inside day, before rocketing higher. In other words, this price action allowed investors to hop on before an 11% move higher.So what now?Shares of Aurora Cannabis stock are stretching into overbought territory. However, that does not mean it cannot continue higher. I wouldn't mind seeing how ACB stock does over the next few sessions and if we get a slight pullback before moving higher again.Keep in mind, ACB stock has breached $12 more than once in the past 12 months. Perhaps it's on its way of doing it a third time. Valuing Aurora Cannabis StockSo what got Aurora Cannabis stock rallying so strongly anyway? The company brought activist investor Nelson Peltz on board to advise on partnerships and global expansion.They didn't pick a bad advisor, either. Peltz has a long list of contacts and the hedge fund manager is a master in the consumer packaged goods space. Whether this leads to a partnership with a well-known blue-chip company or not remains to be seen. But adding him in this role certainly doesn't hurt Aurora's chances.That said, we're still very much in the "land grab" phase of the cannabis market. While growth is impressive -- as ACB stock grew sales 339% year-over-year last quarter -- the valuations do not support these names. For instance, while revenues more than quadrupled last quarter, sales came up just short of $39 million. With a $10 billion valuation, that growth better continue for some time in order for it to be justified.But if there wasn't an opportunity here, we wouldn't have Constellation Brands (NYSE:STZ) taking a multi-billion stake in Canopy Growth (NYSE:CGC) or Altria (NYSE:MO) doing the same thing with Cronos Group (NASDAQ:CRON). There's money to be made and an opportunity to be had with states and countries legalizing marijuana, both for medical and recreational use.That said, it's not a short-term or risk-free endeavor for investors.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Did You Miss Your Chance to Buy Aurora Cannabis Stock? appeared first on InvestorPlace.
Vaping products supplier Greenlane Holdings Inc filed for an initial public offering with U.S. regulators on Wednesday, in the backdrop of both growing investor interest and rising regulatory scrutiny into the e-cigarette industry. Greenlane sells vaping products and accessories to over 6,600 independent smoke shops, regional retail stores and a number of licensed cannabis cultivators, processors and dispensaries. Greenlane's move to tap equity markets comes as traditional tobacco companies make major investments into e-cigarettes.
OUTSIDE THE BOX Tobacco stocks got a bounce earlier this month on news of the resignation of Food & Drug Administration chief Scott Gottlieb. This made sense because he has had it in for vaping, menthol cigarettes and nicotine levels in cigarettes.
So far, 2019 has been good to Cronos Group (NASDAQ:CRON). Its share price has more than doubled this year. And the CRON stock gains make some sense.Indeed, as I wrote in December, the $1.8 billion investment in CRON stock by Altria (NYSE:MO) seems to be a game-changer. Among cannabis stocks, only Canopy Growth (NYSE:CGC), with $4 billion in hand from its deal with Constellation Brands (NYSE:STZ), looked to be in a stronger financial position. And yet, amid a market sell-off, investors largely shrugged at Cronos Group stock.That's changed in 2019, obviously, and perhaps it's changed a little too much. I still believe CRON stock needs to settle down. And I'm not alone. Wall Street has turned notably bearish on the shares in recent weeks. Ahead of Cronos Group earnings next week, those analysts might have a point.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cautious Turn on CRON StockAs MarketWatch pointed out last week, the Street on the whole actually sees downside ahead for CRON shares. Some 11 analysts on average have a target price of $20.30, or 6.6% below current levels.And recent coverage hasn't been all that positive. Per MarketWatch, BMO Capital Markets downgraded CRON to underperform. Analyst Tamy Chen pointed out that CRON trades at 80x EBITDA estimates -- two times the multiple sported by Aurora Cannabis (NYSE:ACB) and higher than Canopy Growth.Chen isn't alone. GMP Securities cut Cronos to hold earlier this month. Cowen (NASDAQ:COWN) initiated at neutral. Jefferies Financial Group (NYSE:JEF) began its coverage of Cronos Group stock with an underperform in late February (though CRON stock rose anyway). * Top 7 Service Sector Stocks That Will Pay You to Own Them To be sure, the Street isn't as always right. And even bearish analysts -- including the team at Jefferies -- have pointed to a massive opportunity in both recreational and medicinal cannabis.But for investors looking for the best cannabis play, it's worth noting that the analysts aren't just focused on valuation. BMO has pointed out that Cronos is trailing other Canadian producers in building out capacity. According to Yahoo! Finance, Jefferies cited concerns about when, exactly, Cronos would spend the funds from Altria -- and how much support the tobacco giant would give the pot producer in the early going.While it's easy to dismiss analyst concerns -- and, again, it's far from guaranteed that the Street is correct -- the factors driving the downgrades should be given some consideration. This isn't a case of analysts simply hollering about near-term valuation metrics, or arguing that cannabis stocks represent some sort of bubble.The common thread in recent coverage isn't that Cronos Group is failing or that it has no opportunity. Rather, the worry is that the company isn't moving fast enough in an industry where being a first mover increasingly looks like a key advantage. Earnings and Cronos Group StockIt's not just analysts who are making that point. InvestorPlace contributor Luke Lango made the case last month that Canopy Growth, not Cronos, was the best play in cannabis. One reason: CGC stock is actually cheaper on a per-kilogram basis.That can change if Cronos ramps production and puts its Altria funds to work. So far, however, that hasn't quite been the case. In fact, the company earlier this month swapped its shares of privately held Whistler Medical Marijuana for shares in Aurora Cannabis. That deal highlights the difference between the two companies. * 15 Stocks That May Be Hurt by This Year's Big IPOs Aurora's strategy clearly is to take as many shots at as many opportunities as possible in the shortest amount of time. With that strategy, it's possible that Aurora is taking on too many projects. But in a fluid market (from both a competitive and regulatory perspective), and one with multiple products (recreational, medical, CBD, edibles, etc.), Aurora is trying to gain exposure to as many markets as possible.Cronos doesn't have to take the same path as Aurora. But with the stock near the highs -- and triple late November levels -- it's going to need to show something with earnings next week. That may be discussion of what exactly it plans to do with its $1.8 billion in newly received cash. It may be clarity on Altria's role. (Note that Altria's senior director of corporate strategy is joining Cronos as chief financial officer, perhaps a step in the right direction.) It may be talk of additional M&A, after a huge win on the Whistler deal. (Cronos appears to have invested CAD$4 million [$3 million] in the company - and received C$175 million in Aurora stock.)Whatever it is, with the highest valuation in the cannabis stock, the status quo isn't enough. Cronos needs to post an impressive earnings report next week -- and not just in the numbers. Rather, the company needs to convince investors that it can take advantage of its cash, and put that cash to work to drive growth. It won't be easy - and at these prices, expectations are going to be high.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post Who's Made The Right Call On Cronos Group Stock? Altria or Analysts? appeared first on InvestorPlace.
Anheuser-Busch InBev named Marty Barrington its new chairman and said the CEO of private-equity firm 3G Capital was leaving its board, part of a broader shake-up at the world’s biggest brewer as it struggles ...
Altria made a $12.8 billion investment in the e-cigarette maker late last year. The FDA commissioner has accused Juul and Marlboro-maker Altria executives of reneging on promises they made to help combat teen vaping.
The ongoing cannabis stock craze will likely see another move after Monday's closing bell. That's when Canadian pot conglomerate Tilray (NASDAQ:TLRY) is slated to report its fourth-quarter numbers, perhaps pushing Tilray stock out of the sideways rut it's been in since December.Source: Shutterstock Which direction TLRY ends up moving (if it moves at all) remains in question. While investors will certainly be interested in seeing how much marijuana Tilray sold during the quarter -- recreational marijuana in particular, the real scrutiny will be on company has continued to evolve. For Tilray, Q4 was a period to form partnerships and make acquisitions. The rhetoric about that dealmaking will be the key to overcoming any valuation problems or worries about sustained losses for Tilray stock. Tilray Earnings PreviewFor the quarter ending on December 31st, analysts expect TLRY to report revenue of $15.9 million, although some outside estimates put the figure closer to $18.3 million.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 3 Earnings Reports to Watch Next Week That still won't be enough to pull the young, budding company out of the red though. Those same pros are also calling for a loss of 15 cents per share of Tilray stock -- a modest improvement on the loss of 20 cents per share booked during Q3 of last year.It is a work in progress, as is the case with all cannabis stocks at this time. Actual net profits may still be a distant goal.The industry is making progress to that end, however, with some help from much bigger friends. Pot-Laced PartnershipsConstellation Brands (NYSE:STZ) got the pot-partnership ball rolling in August of last year, via a $4 billion investment in Tilray rival Canopy Growth (NYSE:CGC). Altria Group (NYSE:MO) followed suit in December, making a $1.8 billion investment in Cronos Group (NASDAQ:CRON).Both deals were largely intended to secure a stake in the marijuana market, even without knowing exactly what the future may hold. Though marijuana is now legal in Canada and several U.S. states, it remains illegal at the Federal level in the U.S.The newly-formed partnerships are aiming to innovate new products. Tilray Is Moving SlowerTilray has thus far lagged the innovation and team-up movement. And although the Canadian government legalized cannabis in mid-October, Tilray didn't actually sell any recreational cannabis during the first two weeks it was allowed to do so.Tilray has been busy building its team though. Near the end of last year it acquired licensed producer Natura Naturals at a cost of $26.3 million. And, around that same time it inked distribution deals with the pharmaceutical industry, and has agreed to work with Anheuser Busch Inbev (NYSE:BUD) to create and market cannabis-based drinks. In December of last year, the company rounded out its network with a $317 million purchase of Manitoba Harvest.The Q4 report will be the first to include recreational sales, though it still won't reflect the full revenue potential of Tilray.In that light, investors may want to worry less about Q4 numbers and focus more on how it's piecing together its organization in an increasingly competitive environment. Looking Ahead for Tilray StockThe TLRY story is certainly an exciting one, and undoubtedly cannabis has a bright future. But, it remains to be seen if Tilray has a future that's bright enough to merit its $7.0 billion valuation.More than a few investors don't think it does. As of the most recent look, nearly 25% of the stock's float is held as a short position, meaning nearly four million shares of TLRY are held by traders betting Tilray stock will move lower before it moves higher. * 7 Small-Cap Stocks That Make the Grade Those bets could backfire in a big way though. Should the response to Monday's post-close earnings report be a bullish one, a sharp rise in the price of Tilray shares could cause those short-sellers to panic and buy shares to exit their trade, fanning the bullish flames.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 * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post Why Tilray Stock's Q4 Report Shouldn't Be About Q4 Numbers appeared first on InvestorPlace.