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Follow this list to discover and track the stock of publicly traded companies with exposure to cannabis
Anheuser-Busch InBev SA/NV
Altria Group, Inc.
Molson Coors Beverage Company
Canopy Growth Corporation
Canopy Growth Corporation
The Scotts Miracle-Gro Company
GW Pharmaceuticals plc
Cronos Group Inc.
Aurora Cannabis Inc.
Corbus Pharmaceuticals Holdings, Inc.
The Green Organic Dutchman Holdings Ltd.
CannTrust Holdings Inc.
The Green Organic Dutchman Holdings Ltd.
CannTrust Holdings Inc.
New Age Beverages Corporation
General Cannabis Corp
Terra Tech Corp.
ETFMG Alternative Harvest ETF
As the World Economic Forum unfolded in Davos, Switzerland, world leaders gathered to discuss, among other important topics, cannabis, its potential, its legalization, and the hurdles of such a process. ...
Cannabis advocates are cautiously optimistic that 2020 will be the year that New York state finally legalizes cannabis for adult recreational use, marking a major milestone for the legal business.
Medical cannabis in Europe has slowly been gaining traction, but there are still a number of hurdles around regulation that has a lot of catching up to do. Speaking at the Cannabis Conclave event in Davos, Switzerland last week, Stephen Murphy of Prohibition Partners discussed medical cannabis policy and the importance of knowledge sharing across the continent. Murphy said big brands have yet to enter the cannabis market, so less competition exists compared to other industries.
Find out which stocks have performed the best over the past 20 years, which industries generated the most growth, and how much these stocks appreciated.
Canopy Growth (CGC) had an astonishing revelation prior to this past holiday weekend for the stock market. The new CEO was expected to reorganize the business, but a delay to the cannabis beverages business was an unexpected jolt to the Canadian cannabis company. One has to wonder what other issues will be disclosed as CEO David Klein completes his second week on the job.Beverage DebacleCanopy Growth shocked the market last week by admitting their cannabis-infused beverages were not ready to scale for the market. The news is surprising considering the company is already a month into the legalization of Cannabis 2.0 products such as edibles and beverages.New CEO David Klein suggests the time period since Canopy Growth obtained Health Canada license in late November 2019 wasn’t enough time to work out the kinks with THC in a brand new beverage facility. The company suggests updates will be provided on the release of the FQ3 results on February 14, or roughly two months after the market already thought their cannabis beverages were hitting the market.Canopy Growth provided a Cannabis 2.0 update back on December 6 with no indication of these impending problems with ramping up a new facility. At the time, the large cannabis player promoted several drinks hitting store shelves in early January followed by other varieties of the Tweed, Houseplant, Quatreau and Deep Space brands. Previously, Canopy Growth had outlined in detail a vast selection of cannabis-infused drinks expected to be ready for the 2.0 launch in December or early January.Investors had no reason to doubt the company’s beverage ambitions considering the backing of wine and spirits giant Constellations Brands (STZ).High ExpensesWhat the news means is that Canopy Growth remains in the R&D phase without the revenues. The company continues to spend while not getting any returns for investors as the 150,000 sq. ft. beverage facility is now open and only producing expensive THC chocolate bars.Naturally, Canopy Growth is wise to delay any release to get the THC mix correct before hitting market. The company might have been wiser to focus on the beverages endeavor versus recently jumping into the U.S. CBD market.The company has a massive operating expense base by trying to be all things to the global cannabis market with none of the results warranting the vast investments. Canopy Growth has the weakest gross margins in the sector at 38% in the last quarter assuming tons of adjustments while having the largest operating expense base. For FQ2, the company had adjusted operating expenses at C$160 million, or nearly double the amount spent by Aurora Cannabis.The first step of the new CEO was to delay the cannabis beverages hitting market, but what investors really wanted to see is Canopy Growth rationalizing expenses. This beverage facility delay only elevates expenses unattached to current revenue production.Consensus VerdictWall Street isn’t completely sold on this ‘show me’ story. Out of 15 analysts polled in the last 3 months, 6 are bullish on Canopy Growth stock, while 9 remain sidelined. Is the stock overvalued or undervalued based on these expectations? With a downside potential of nearly 8%, the stock’s consensus target price stands at $20.83. (See Canopy Growth stock analysis on TipRanks)TakeawayThe key investor takeaway is that Canopy Growth hit another big problem with meeting financial targets. The company remains in major spend mode over six months after firing ex-CEO Bruce Linton and the latest news suggests the new CEO is nowhere close to reorganizing the business.The stock is far too expensive at an $8.5 billion market cap when the company can’t even get cannabis-infused beverages onto the market while daily operating losses remain in the millions.To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Aurora Cannabis (NYSE:ACB) has pulled a nice rally during the past couple weeks. Over this time, ACB stock has gained about 24% to hit $2.04.Source: Shutterstock Of course, this is little consolation for long-term holders. A year ago ACB was fetching a much more robust price of $10.No doubt, the rest of industry has seen steep declines as well. Just look at the charts for companies like Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC) and Cronos Group (NASDAQ:CRON).InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs for Aurora, there are certainly some bigtime challenges for the company. First of all, Aurora pulled off a string of acquisitions, which ballooned the company's debt and added lots of complexity to the organization. It also did not help that several Wall Street analysts put out awful reports, such as Piper Sandler's Michael Lavery, who slapped a $1 price target on ACB stock. But the worst of all came from GLJ Research analyst Gordon Johnson, who says Aurora stock will hit $0 within the next two years! * Invest in America's Most Trusted Brands With These 7 Stocks to Buy But hey, analysts are far from perfect. The fact is that Wall Street can get overly gloomy, especially when a sector goes out of favor.However, this can present opportunities. With sentiment so bad right now, it won't take much good news to perk up the stock price.So what is the bull case for ACB stock and what are the drivers? Canadian Market and ACB StockThe problems with the Canadian market aren't really about demand. Rather, they're about distribution and enforcement. An onerous government process has made it extremely difficult go launch new retail locations. In the meantime, there has emerged more black market activities that have generally not been checked by the authorities.Consider this: there are a mere 363 cannabis stores across Canada. That's just one location for every 14,3188 cannabis users. Given this, it should be no surprise that companies like ACB have struggled.Yet this will not be permanent. There are signs that Canadian authorities are being more proactive -- and this should go a long way to help improve Aurora's fortunes.But there should be another catalyst -- "Cannabis 2.0." This refers to the legalization of cannabis edibles and beverages in Canada, which could be a multi-billion dollar opportunity for the sector.Here's what Aurora CEO Cam Battley said about this during the latest earnings call: "The initial suite of new products that we will launch include vapes, concentrates, gummies, chocolates, mints and cookies. We've selectively partnered with a variety of organizations, prioritized our resources and built the inventory to help ensure consumers across Canada will have access to our high-quality derivative products." Fiscal RestraintAurora is already taking actions to cut back on expenses. The company has initiated construction deferrals and slowed commissioning of projects, which is expected to save $200 million "in the near term." The company also retired $227 million of a 5% unsecured convertible debenture that had a due date of March 2020. What's more, if revenues continue to increase as the situation in Canada improves, this will definitely alleviate the pressures.It's also important to keep in mind that Aurora has Nelson Peltz as a strategic advisor. He is one of the world's top investors for consumer stocks, with positions in companies like Procter & Gamble (NYSE:PG), Mondelez (NASDAQ:MDLZ) and Wendy's (NASDAQ:WEN). In other words, he should be a great source of strategic advice, but should also provide key introductions to other investors and corporate partners.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. 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 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Key Catalysts Will Get Risky Aurora Stock Back On Track appeared first on InvestorPlace.
Massachusetts will likely continue to see marijuana supply shortages in 2020, according to a Canaccord Genuity research note to clients Friday. Analyst Bobby Burleson wrote that he expects continued licensing delays and increased pressure to operate the state's economic empowerment and social equity initiatives to be contributing factors. Wholesale weed prices are among the most expensive in the U.S., and are driven by the limited supply due to the scarcity of licenses, Burleson wrote. Massachusetts had a "strong" first full year of pot sales, recording $445 million in sales, according to the Cannabis Control Commission. Burleson expects 2020 sales of $900 million. Weed stocks largely fell Friday, with the ETFMG Alternative Harvest ETF down 4.1% in early afternoon trading; the Horizons Marijuana Life Sciences Index ETF fell 3.7%.
With earnings surprise in the cards, the healthcare sector is expected to witness substantial earnings growth of 4.4% in the fourth quarter, suggesting some room for potential upside for healthcare ETFs.
Canadian cannabis company Aphria Inc. said Friday it has entered an agreement to receive a C$100 million (76.2 million) investment from an unnamed institutional investor. The investor purchased 14 million units of the company priced at C$7.12 per unit, the company said in a statement. Each unit is comprised on one common share and one-half of one common share warrant, entitling the holder to purchase a share at a price of $9.26 for 24 months after the closing date. Proceeds of the deal will be used to finance international expansion, working capital and for general corporate purposes. U.S.-listed hares rose 3.8% premarket on the news, but are down 17% in the last 12 months, while the S&P 500 has gained 26%.
Shares of Innovative Industrial Properties Inc. dropped 4.5% in premarket trading, after the real estate investment trust (REIT), which focuses on properties leased to cannabis companies, announced that pricing of a stock offering at a near 8% discount. The company said its offering of 2,967,799 shares, representing about 22% of the shares outstanding, priced at $73.25 to raise $217.4 million. That pricing was 7.8% below Thursday's close of $79.45. The company plans to use the proceeds from the stock sale to invest in real estate assets. The stock has rallied 9.6% over the past 3 months through Thursday, while the SPDR Real Estate Select Sector ETF has edged up 0.2%, the ETFMG Alternative Harvest ETF declined 11% and the S&P 500 has gained 10.5%.
Altria Group (MO) is a consumer staples manufacturer; it built its historical growth on its flagship Marlboro cigarette brand, but in recent years has diversified itself beyond tobacco, explains Ben Reynolds, editor of Sure Retirement.
Many other members of Big Pharma spent more on dividends and stock buybacks, a strategy some view as shortsighted Continue reading...
In the latest trading session, Aurora Cannabis Inc. (ACB) closed at $2.07, marking a +1.47% move from the previous day.
Canopy Growth Corporation (CGC) closed at $24.56 in the latest trading session, marking a +1.82% move from the prior day.
2019 was a year cannabis investors would like to forget, including Aurora Cannabis (NYSE:ACB) shareholders. But it still might be optimistic to assume cannabis stocks have bottomed out. The same holds true for ACB stock, and I maintain a bearish view for 2020. I believe that balance sheet concerns coupled with industry headwinds will ensure bearish sentiments sustain due to key challenges coming up in the near to medium term.Source: Shutterstock Unfortunately for ACB stock, there is no dearth of reasons to be bearish.Piper Sandler analyst Michael Lavery opined that the stock is headed for a target of $1. Christopher Carey, analyst at Bank of America Merrill Lynch, assigned a "sell" rating to ACB stock. Both analysts cited balance sheet problems as one of the company's key challenges. Additionally, in December 2019 Owen Bennett, analyst at Jefferies, downgraded Aurora Cannabis from "buy" to "hold." The point I'm making is that the markets have a very bearish view of the stock, and there are strong reasons to remain pessimistic.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Balance Sheet Stress and Dilution RiskOne of the primary reasons for downgrading ACB stock has been the pressure on the balance sheet. For the first quarter of fiscal year 2020, Aurora Cannabis reported cash and equivalents of 153 million CAD. For the same quarter, the cash used in operations was 95 million CAD. * The 7 Stocks That Cautious Investors Should Sell Now If cash burn sustains at the same rate, Aurora Cannabis will need additional equity or debt funding in the second half of 2020. That seems very likely and the stock is discounting dilution or leveraging concerns, among others. There are two major potential negative triggers.First, the year 2020 is likely to see high marketing and selling expenses. The company is rolling out "cannabis 2.0" products including gummies, chocolates, baked goods and mints. With higher marketing expenses, ACB will burn cash faster and dilution is likely sooner.Second, if these "cannabis 2.0" products fail to gain traction, ACB stock will trend lower. The company is relying on recreational cannabis to trigger growth in the medium-term. Medicinal cannabis is unlikely to be a growth trigger since clinical research and regulatory approval will take time. The Long Path to Medicinal Cannabis GrowthAurora Cannabis is looking at medicinal cannabis as one of its major growth triggers. However it seems overly optimistic to expect growth from this segment in the next 12 to 24 months.According to the U.S. Food & Drug Administration, the only approved CBD drug is Epidiolex. The FDA has specifically warned that "selling unapproved products with unsubstantiated therapeutic claims is not only a violation of the law, but also can put patients at risk."There is no shortcut to inroads for the medicinal cannabis segment. Progress will be slow and the markets have been discounting this factor. Aurora Cannabis is working on clinical research related to pain, epilepsy, PTSD, anxiety, opioid sparing, cancer and neurodegeneration. If results are positive in the coming years, medicinal cannabis will gain traction. But investment in clinical trials and research and development will involve sustained cash burn. Setback in EuropeBesides growth in Canada, Aurora Cannabis is focused on Europe for growth. However, the company had few setbacks in the recent past and that adds to the negative triggers.In November 2019, Aurora Cannabis products were suspended from Germany until further notice. The German authorities are investigating the methods used by Aurora Cannabis to increase the shelf life of cannabis. The important point to note is that German cannabis market is expected to be worth $9.4 billion by 2028. Therefore, this is a big setback in a high potential market.Further, in November 2019, Italy cancelled one of the three lots of cannabis supplied by Aurora. The given reason was noncompliance with European Union Good Manufacturing Practice standards.These incidents could impact growth and regulatory hurdles are a major headwind. The Bottom Line On ACB StockACB stock has been battered in 2019 and I don't see any respite in 2020. Cash burn remains a big challenge, and additionally, I believe that slow growth in medicinal cannabis segment will affect stock sentiment.The industry is still at a stage where R&D and marketing expenses are set to remain high in coming years. Therefore, equity dilution or leveraging is likely in 2020 and can further depress ACB stock.Overall, it makes sense to stay away from Aurora Cannabis even after the big decline of 2019.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Stocks That Cautious Investors Should Sell Now * 7 Healthcare Stocks With 100% Street Support * 3 Chinese Stocks to Buy, Sell, or Play from Either Side The post ACB Stock Bearish Due to High Balance Sheet Stress appeared first on InvestorPlace.
Retired baseball star Alex Rodriguez is joining forces with Anheuser-Busch InBev's Presidente Beer. A-Rod, as he's known, is given the title of co-owner and chairman of Presidente USA, though it's unclear whether he's acquired a stake in the brand. Founded in 1935 in the Dominican Republic, Presidente Beer was acquired by A-B in 2012.
Altria (MO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.