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The company, the world’s biggest brewer, must pay 200 million euros ($224 million) for market power abuse. The ruling, however, only scratches the surface of a major issue with Europe’s single market: its inability to ensure price convergence. The AB InBev case, which the commission began investigating in 2016, is relatively straightforward. In Belgium, the company’s Jupiler beer accounts for about 40 percent of all beer sales by volume. AB InBev was able to charge a higher price there than across the border in the Netherlands, where the beer market is more competitive.
Cannabis stocks and exchange-traded funds fell Friday. Among cannabis stocks tracked by TheStreet, two rose while nine fell. General Cannabis shares rose 6 cents, or 3.77%, to $1.65. Tilray shares fell $1.
More than 21 million shares of the functional-beverage specialist are being sold short right now, a record high and a sevenfold increase over the past year. This is how short squeezes start.
The "Cannabis Craze" had everyone and their brother buying up marijuana stocks. These cannabis stocks didn't have enough free-floating shares to cover the massive amount of buy interest leading them to skyrocketed at the end of 2018 far above their fair value.
Now here's something you don't see every day.Up in Canada, investment banker Seaport Global just announced a first of its kind offer to cart its investor clients around Canada aboard a "magic bus" -- they didn't call it that, so we will -- as part of a tour of cannabis production facilities operated by Canadian marijuana companies Aurora Cannabis (ACB), Hexo (HEXO), Canopy Growth (CGC), and Aphria (APHA).("Paging Willie Nelson. Your bus is about to depart the station.")Seaport's "inaugural get on the Bus tour" will depart Quebec on June 3 and continue cross country to Ontario, eventually ending on June 4, and provide investors a chance to quiz management teams on such fascinating subjects as "about forward capital allocation, potential market oversupply, global expansion plans, anticipated product/market development, and strategies for the US market."No word on whether refreshments will be provided.That's the headline news -- but seeing as this offer is limited to folks who know an "SGS salesperson" or "analyst team" to contact, it would appear that space on this magic bus will be limited to very well-heeled Seaport Global clientele. As for the rest of us, the great unwashed of marijuana investing, we may find more of interest in Seaport's executive summary of the state of the marijuana market that Seaport and its clients will be delving into next month.To wit, Seaport's Brett Hundley notes that right now, the Canadian cannabis market is worth about $1 billion, with demand for about 600,000 kilograms of marijuana (in all its forms) per year. (Which works out to one kilogram of generic pot product costing about $1,700 -- or about a buck-seventy per gram).Hundley sees this market growing about 10 times in size "over time," to $10 billion in annual sales, with eventual demand by weight equaling 5.5 million kg. (Or put another way, $1,800 per kilo, or a buck-eighty per gram).Now, we can see the economics students in class waving their arms and objecting that this doesn't sound right -- that as the marijuana market matures and supply of legal pot explodes, demand should go up and prices should come down. And we agree with you -- but this is Hundley's show. Hundley may also be factoring inflation into the picture, in which case, it's entirely possible that $1.80 a gram seven years from now will be a cheaper price than $1.60 a gram is today.Other points related by the analyst in his write-up, which may be of interest to investors lacking tickets to ride the magic bus: Hundley notes that currently, Canadian pot companies are producing pot at the rate of about 725,000 kg per annum -- which means more than 20% oversupply for a market that's currently only demanding 600,000 kg a year. The analyst thinks that over time, this oversupply will moderate. However, he also notes that producers plan to eventually produce more than 6 million kg of pot per year -- which is also more than Hundley estimated end-market demand of 5.5 million kg, seven years from now.Long story short: Marijuana is in oversupply right now, and could very well remain so in the future. Cannabis investors would like to snag a seat on Seaport's magic bus, and ask Aurora, Hexo, Canopy, and Aphria how they plan to rectify this situation.Good luck with that.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on the stocks mentioned: * Analyst Sees Some Challenges in Aurora Cannabis (ACB) Stock * Hexo: The Cheapest Way to Invest in a Giant Market for Marijuana? * Is This Breakout the Time to Be Buying Canopy Growth (CGC) Stock? * Aphria (APHA): Growing Pains in the Cannabis Industry More recent articles from Smarter Analyst: * Gene Munster: Key Takeaways From Nvidia (NVDA) Earnings * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy * Why Cannabis Stock HEXO Has a Bright Future * The Green Organic Dutchman (TGODF) Stock -- Not Sinking Exactly, But Not Sailing Anywhere Fast
Only a few days after Canopy Growth (CGC) acquired a Spanish licensed cannabis producer, the company has announced a proposed deal to enter the U.S. market via the right to purchase Acreage Holdings (ACRGF) in the future. The move has high hopes for the U.S. government to approve cannabis at the federal level and makes the multi-state operators (MSOs) in the U.S. as the most attractive stocks going forward.A Right That Might Not HappenDue to listing requirements by the Toronto Stock Exchange and the NYSE, listed companies can’t own illegal operations. Since cannabis is illegal at the federal level, Canopy Growth is prevented from owning a U.S. cannabis company. The recent Farm Bill allows the company to enter the hemp market and CBD, but not pot.For this reason, Canopy Growth has to make a deal that involves the right to purchase Acreage once federally approved. The company is paying $3.4 billion to buy Acreage with an upfront cost of $300 million for this future right.The deal involves a $2.55 per share upfront payment to investors for waiting plus an agreement to receive 0.5818 shares of Canopy Growth once the deal closes. At the current stock price of $46, Acreage shareholders have a right to a Canopy Growth stock worth $26.76 plus the $2.55 payment. The stock only trades right above $23 on the deal.The problem for shareholders is that the outcome is unknown. The U.S. is likely to approve cannabis in the future, but no guarantee exists. Not to mention, where Canopy Growth trades at that point is another high risk as the company has aggressive global expansion plans such as the recent deal in Spain.Other U.S. MSOs. While Acreage is listed as a leading MSO in the U.S., the company trails other companies like Harvest Health & Recreation (HRVSF). Acreage is listed as having agreements for cannabis-related licenses in 20 states with rights to 87 dispensaries and 22 cultivation and processing sites.Harvest Health has a deal pending with Verano that gives the combined company the right operate up to 200 facilities in 16 states with 123 dispensaries. Harvest Health expects to have 70 dispensaries and 26 cultivation and manufacturing facilities open by the end of 2019.The backing of Constellation Brands (STZ) provides Canopy Growth with the cash and shares to promote Acreage to offer up to $1.4 billion worth of shares for future acquisitions. The proposal suggests that the company will look to rollup smaller companies during the waiting period likely placing a premium value on sub $1 billion cannabis companies in the U.S.TakeawayThe key investor takeaway is that Canopy Growth is making the anticipated splash to enter the U.S. cannabis market, though via a highly delayed right to buy Acreage in the future. Investors shouldn’t expect other U.S. MSOs to accept similar deals in the future with such deals locking in values based on current prices.Canopy stock went up on the news and could breakout to new all-time highs above $60. Regardless, the better stocks remain the pure plays on the U.S. cannabis market. Acreage is now on the acquisition trail and the inevitable U.S. entry by the other large Canadian LPs either via similar rights to purchase deals or once the cannabis if federally legal will make the U.S. companies more valuable.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Disclosure: The author has no position in Canopy Growth stock.Read more on CGC: * Canopy Growth (CGC): Piper Jaffray Wishes Upon a Marijuana Star (But Will Its Dreams Come True?) * Canopy Growth (CGC): Is This Spanish Acquisition Too Good to Be True? * Canopy (CGC): Seaport Cuts Estimates, Reiterates Neutral on the Cannabis Stock More recent articles from Smarter Analyst: * Gene Munster: Key Takeaways From Nvidia (NVDA) Earnings * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy * Why Cannabis Stock HEXO Has a Bright Future * The Green Organic Dutchman (TGODF) Stock -- Not Sinking Exactly, But Not Sailing Anywhere Fast
Roche (RHHBY) gains an FDA nod for the sNDA of its leukemia drug, Venclexta, in combination with Gazyva for the treatment of previously untreated chronic lymphocytic leukemia.
Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.
After a revenue beat Tilray Inc (NASDAQ:TLRY) saw its stock jump 5% for the day. However, that optimism has faded rather quickly, and Tilray stock has not been able to capitalize on that momentum.Source: Shutterstock Unequivocally, it has been a wild ride for Tilray investors. Last fall, against a very frothy overall market and marijuana stocks going more mainstream, the stock price exceeded the $200 mark before getting cut down by three quarters, trading at less than $50 per share as of this writing. * 6 Chinese Stocks That Could Pop On a Trade Deal Still though, I remain cautious on Tilray stock. The company hit a major milestone by landing a partnership with Novartis AG (NYSE:NVS), the Swiss pharmaceutical company, late last year. That's certainly been a positive catalyst, but after all the hype, investors need to see meaningful progress toward a more profitable future.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray Stock Has a Mixed First QuarterA lot of the focus immediately after earnings was around revenues. TLRY delivered a massive 195 increase in year-over-year revenues. The legalization of marijuana use in Canada for adults last year in addition to hemp food sales from Tilray's acquisition of Manitoba Harvest were big drivers.Gross margins also saw a slight increase, but despite these positive signs, net losses for the quarter increased dramatically. Last quarter $5 million to $30 million most recently. For a growth company, it's not necessarily unexpected. Expansion costs money as companies need to lay the foundation for future endeavors, but the point is that it's naive to look only at the revenue beat and think TLRY stock is headed for the sky.Total kilogram equivalents sold did double to 3,012 kilograms, but compare that to fellow competitor Canopy Growth (NYSE:CGC) that sold 10,102 kilogram equivalents in the most recent quarter and has a higher pricing structure.TLRY is still doesn't have pricing figured out seeing as average net selling price per gram decreased over the prior year period. As the space gets more and more competitive, TLRY needs to optimize this quickly as increasing supply toward medical and consumer purposes will put pressure on prices. The trend is not going in the right direction. Tilray Stock Is OvervaluedUltimately, TLRY stock looks lofty in terms of valuation. This, of course, does not mean the stock cannot get more expensive from here, but it's not a screaming buy despite some decent first quarter numbers.Tilray's consensus forward P/E is the kind of number that makes you triple check because you don't think it can be right: 1,111x. Compare that 357x for CGC. It's a relative game with P/E ratios, so even though 357x may also sound extraordinarily rich, it goes to show that 1,111x is completely irrational.There is just so many ways for that multiple to get rerated downward, again and again. Final Note on Tilray StockThe first quarter earnings was a bit of a mixed bag. The market gave credit where it was due but no more than that, recognizing the weak points in the financials.Tilray has made progress on expansion via M&A, which may bolster future earnings, but only time will tell. There is a lot of success already built into the current valuation, meaning that TLRY can't miss a beat. As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Don't Let the Great Q1 Numbers Fool You into Buying Tilray Stock appeared first on InvestorPlace.
Marijuana stocks like Cronos (NASDAQ:CRON) look a bit creaky at the moment, and CRON stock may be Exhibit A in the case that the group is stalling out. Cronos stock has dropped by over one-third just since early March, with the near-term question whether a recent bottom can hold.Source: Shutterstock I'm skeptical it will. Valuation is a bit more reasonable than it was earlier this year, when I thought Cronos Group stock was overvalued. But CRON is hardly cheap. Analysts have turned bearish. And that bearishness seems to coincide with the core problem here.Cronos simply hasn't driven the right kind of narrative for a marijuana stock at this valuation. Looking around the sector, there are concise, obvious bull cases for most of the well-covered stocks. Outside of the nearly $2 billion in cash coming in from Altria (NYSE:MO), Cronos lacks that case. And until that changes, Cronos is likely to struggle.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Chinese Stocks That Could Pop On a Trade Deal The Need for a StoryInvesting in cannabis stocks at the moment isn't about the fundamentals. This is an industry at the very beginning of its growth. Price/earnings and even price/sales multiples are enormous and not necessarily comparable. The fundamental toolkit an investor might use to value a mature company simply doesn't apply in the sector at the moment.And so both the decision to invest in the sector at all, and which cannabis stock to choose, come down largely to long-term projections and even feel. Will the industry grow for years, as proponents argue? Is the oversupply already seen in legalized U.S. markets like Oregon a long-term risk? When does broader U.S. legalization arrive? Who of the myriad publicly traded cannabis plays wins and who loses?In that type of investing environment, a stock needs a succinct bull case, an elevator pitch so to speak. And most of the well-covered cannabis plays have that type of case. Canopy Growth (NYSE:CGC) is the early leader, and thanks to Constellation Brands (NYSE:STZ,NYSE:STZ.B) has the largest war chest. Aurora Cannabis (NYSE:ACB) is taking so many shots on goal that it's likely to score on at least one of them. Charlotte's Web (OTCMKTS:CWBHF) is the pure play on CBD (cannabidiol) oil. Even struggling Tilray (NASDAQ:TLRY) may have positioned itself to win if capacity gets overbuilt. And so on. What Is the Story Behind CRON Stock?What's the story behind CRON stock, however? The company has a ton of cash coming in, to be sure. But its production capabilities aren't particularly impressive: as The Motley Fool noted, Cronos isn't even in the top ten in terms of available capacity. Its Spinach retail brand doesn't appear as strong as those from Canopy or Hexo (NYSE:HEXO). Its positioning in the Canadian adult-use market seems behind that of many peers.Even analysts somewhat favorable to the stock aren't sure what to make of it, as James Brumley noted earlier this month. CIBC World Markets analyst John Zamparo wrote that the company hadn't given much colors on its plans for actually using that capital. Cannacord Genuity cited "a number of strategic initiatives that could eventually unlock longer-term value."Those aren't compelling points in favor of Cronos stock. Rather, they're something more akin to a "poke and hope" strategy. Cronos has a lot of cash, and the marijuana industry should grow, so the company will eventually figure something out. That kind of case might work in the middle of 2018, or the beginning of 2019, when marijuana stocks on the whole are soaring. As we've seen of late, however, it can't work forever. Cronos Group Stock Isn't CheapMeanwhile, Cronos remains priced in line with those peers who have better stories - and better growth. Cronos' Q1 report wasn't particularly impressive either fundamentally or in terms of management commentary. The company did turn a profit but only thanks to non-cash benefits, some of which related to the Altria deal. On an operating basis, Cronos continues to lose money.That's not a problem on its own: most stocks in the space are posting operating losses as they build out production, processing, and supply chain capabilities. But CRON, relative to revenue, continues to be valued roughly in line with the leaders of the space.That's not going to hold if Cronos can't prove that it will be a leader long-term. Right now, it's not making a good enough case - and until that changes, Cronos stock is going to underperform. And with marijuana stocks right now seeming to stall out, that in turn suggests that CRON is headed below $15.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Without a Better Story, Cronos Stock May Have Further to Fall appeared first on InvestorPlace.
As things stand now, cannabis firm Cronos Group (NASDAQ:CRON) is a two-faced investment. CRON stock recovered well from late last year's volatility, as CRON stock is up nearly 49% since the beginning of January. But Cronos stock shed 30% since March 1, putting a sour taste in recent buyers' mouths.Source: Shutterstock Fundamentally, Cronos has the same split personality. Last week, the company reported its first-quarter results. On paper, Cronos delivered a strong beat. Analysts' consensus estimate pegged earnings per share at a loss of two cents. Instead, EPS came in at 36 cents on the positive end of the scale.Moreover, Cronos rang up 6.47 million CAD, or $4.8 million, of net sales. That was a massive 120% increase from the year-ago quarter. But as The Motley Fool's Sean Williams noted, the cannabis firm benefited from multiple one-off events. All things considered Cronos Group loses money on its operations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestorPlace Managing Editor John Kilhefner has also joined in on the fun. Kilhefner bought CRON stock because, in his words, he was "greedy." He wanted a "quick short-term boost" and what better place to get that than with marijuana? * 6 Chinese Stocks That Could Pop On a Trade Deal However, Kilhefner now regrets buying Cronos stock. For one thing, after clearing his thoughts, he doesn't view marijuana as an investment but rather, pure speculation. More critically, the reality of cannabis hasn't come anywhere close to the hype. For instance, Canadian cannabis stores are selling fewer botanical products than previously anticipated.With that negative backdrop, it's no wonder why investors are have mixed views on CRON stock. Still, I think Kilhefner and others may want to consider another massive catalyst: China. CRON Stock Has Received a Massive TailwindOne of the more surprising developments in geopolitics recently is that the trade war is back on. For weeks, it appeared that the Trump administration and its Chinese counterpart were ready to make a deal.But the deal appears to have fallen through. This latest freeze in U.S.-China relations may not thaw for quite some time. As InvestorPlace's William Roth explained, our military exercises in the South China Sea appeared to have been carefully orchestrated.What does that have to do with CRON stock? Everything. Trump has pushed himself into a corner economically. The initial round of tariffs already hurt many businesses across multiple sectors. With the President threatening even harsher penalties, astute market observers are bracing themselves for a rough landing.Of course, one sector that has absorbed substantial damage is agriculture. Already weakened from demographic challenges, American farmers have been put in a vice grip by tariffs. Since much of this country's agricultural base is located in conservative regions, Trump can't play hardball with the Chinese without incurring political penalties.That is where CRON stock and other major marijuana names like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) come into the picture. If this "trade war 2.0" worsens - again, Roth forwarded evidence that it will - full recreational legalization is on the table.Despite growing political momentum, getting rid of the federal government's Schedule I classification appeared to be a pipe dream. Even during the Obama administration, marijuana tip-toed a delicate balance between states' rights and federal oversight.But right now, there's a good chance that our economy will enter a recession. Trump will either have to give in to the Chinese or make concessions on the cannabis legalization front. I'd say that's a long-term benefit to CRON stock. Don't Give Up on Cronos Stock!If Kilhefner hasn't dumped his shares of Cronos Group stock, I'd recommend he bite the bullet and wait. Politically, what's currently happening is the best thing ever for the marijuana industry.If I know anything about the Chinese, they hate losing face. If I know anything about Trump, he hates losing, period. Both Trump and his counterpart, President Xi, are egomaniacs who are unwilling to concede an inch to each other.In this situation, China must rely more on its allies, Russia and North Korea. We, on the other hand, are in a great position: we don't need dictators and despots to prop up our economy. Instead, we just need to convince roughly half our citizens that they won't be condemned to eternal damnation for their botanical indulgences.While religion has been historically very strong in this country, that goes away in a recession. The easy fix is legalization, or at least a much more tolerant (and transparent) policy.I agree with Kilhefner that CRON stock is a gamble. However, I disagree with his conclusion. Now is the best time to consider making that bet.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post How Trade War 2.0 Benefits Struggling Cronos Stock appeared first on InvestorPlace.
Aurora Cannabis Inc (NYSE: ACB) shares traded higher by 8 percent this week after the company reported a mixed first-quarter earnings report Tuesday evening. Throughout the week, Benzinga Pro subscribers received a number of options alerts related to Aurora Cannabis. On Wednesday morning around 10:30 a.m., a trader sold 2,000 Aurora call options at a $9 strike price that expire on Dec. 20.
The largest U.S. cannabis retailer's deal to become the world’s biggest legal seller is the latest seismic shift in the industry.
This logic holds true in the cannabis space, where only some companies boast ample capital and are backed by a strong management team, CNBC's Jim Cramer said during his daily "Mad Money" show Thursday. Shares of Tilray Inc (NASDAQ: TLRY) briefly soared from $100 to $300 per share ahead of recreational legalization in Canada, Cramer said. When Tilray became a public company in the summer of 2018, CEO Brendan Kennedy was "very, very, very, very, very, very, very, very positive about the whole industry — but in retrospect, maybe too positive?" Cramer said.
Every so often, Wall Street experiences a craze that is fascinating like Bitcoin in 2017. But now it's the cannabis stocks and Tilray (NASDAQ:TLRY) has been a wild one to watch. It went public last year and within two months it had rallied 1,000%. 2019 has not been kind to TLRY stock as it's down 32% year-to-date, yet it is still up 110% since its inception. Compare that to the S&P 500, which is barely up 2% in a year.Source: Shutterstock Today's write up is to encourage those who like the stock to hold it and to also discourage those who want to short it. For full disclosure, I am not long Tilray nor am I an uber fan or a perma-bull of it.While the IPO was orderly, the period that followed was bonkers. In September it spiked to its $300 all-time high from $93 in three days. Clearly, it was a massive short squeeze where buying begot buying until the equilibrium was restored.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnfortunately for the Tilray stock bulls that was the high mark and it has traded horrendously since then. It is now below $50 and it can't sustain a rally. It's not so much that the fundamentals have deteriorated greatly. It is simply that the stock trade broke from the massive artificial rally. It takes time to restore the natural price action.TLRY still has not grabbed the attention of major corporations. Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON) got billions from Constellation Brands (NYSE:STZ) and Altria (NYSE:MO). Tilray is still going at it alone and it's struggling. It will need better alliances or it risks falling behind.Before you send me hate mail on this, I am not calling TLRY stock dead. Cannabis stocks are a special breed in this early stage. They are trying to establish the industry on Main Street and they may not be able to always impress Wall Street in the short term. There will be ups and downs but the bullish thesis is too diverse in scope to call it dead now. * 10 Baby Boomer Stocks to Buy So what's a fair value for TLRY stock? There is none because at this point they all carry massive market capitalization but with a tiny fraction of it in sales. TLRY's cap is $6 billion and it recently reported $23 million in sales.To that, management reported a big top line beat and 195% growth year over year. The stock spiked 6% on the headline and it is holding the zone decently given the overall stock market jitters. More importantly, its deliveries doubled year-over-year and that is the focus of many experts. They can't grow into their potential if they cannot deliver it as well as improve their margins along the way.The cannabis industry is still trying to adjust to its new legal status. This is a trend that is spotty for now but will grow its ubiquity with time. The U.S. market is an important one and many states will soon follow the ones that have already legalized it. But on the federal level, it may not be that easy. Luckily there are dozens of other countries for TLRY to potentially serve. Bottom Line on TLRY StockThe hoopla around cannabis stocks like Tilray is that they will disrupt so many huge markets that their upside potential should also be massive. The recreational use is what first comes to mind to most people but there are so many more like medicinal applications, potables and edibles. Maybe one day pot-based drinks will replace some of the soda, wine and beer consumption. * Top 7 Dow Jones Stocks of 2019 -- So Far Skeptics would call it a craze. Maybe, but unlike bitcoin where the concept escapes 99% of all people, everyone knows what cannabis is and is immediately interested in learning more about it. The allure of it is undeniable as I see evidence of the interest everywhere I go.So the bottom line is that although the experts can dismiss Tilray based on valuation and its distance from its all-time high, they would be making a mistake. Because as big as the potential of this multi-headed future area of business is, it will be impossible to quantify here let alone judge it right. Either avoid it altogether or plug your nose and buy the stock for the long term.We saw the skeptics lose fortunes trying to short Amazon (NASDAQ:NFLX) and Netflix (NASDAQ:NFLX). Netflix still gets a pass on profitability because of its global expansion potential as should most cannabis stocks … including TLRY stock.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post The Bullish Thesis for Tilray Stock Is Still Alive and Well appeared first on InvestorPlace.
Tilray: Big Price Cut after Its Q1 Earnings(Continued from Prior Part)Tilray’s valuationTilray (TLRY) stock has been trading at a premium valuation compared to its peers, which doesn’t seem justified. Tilray’s decline seemed imminent—like
An independent data monitoring committee recommended the study be stopped due to "lack of survival benefit" for patients receiving the treatment Depatux-M when compared with a placebo, AbbVie said. Depatux-M, when added to the standard regimen of radiation and temozolomide, failed to meet the main goal of achieving overall survival in newly diagnosed patients when compared to patients given a placebo along with radiation and temozolomide. The trial has been testing the drug to treat an aggressive form of brain cancer known as glioblastoma.
Canopy Growth (NYSE:CGC) moved higher after announcing a deal with its investment arm, Canopy Rivers (OTCMKTS:CNPOF). This offers some relief to CGC stock, which had returned to levels not seen since before they announced their buyout intentions on Acreage Holdings (OTCMKTS:ACRGF).Source: Shutterstock Unfortunately, Canopy Growth stock seems to need more. CGC has again sold off after briefly crossing the $50 per share mark in late April. While the deals with Canopy Rivers and Acreage boost the long-term prospects of Canopy Growth Corporation, they also show the difficulty of breaking CGC stock out of its current trading range. Canopy Growth Continues to Improve Market PositioningCanopy Rivers announced that the portfolio company it owns, PharmHouse Inc., will commit more of its production to Canopy Growth. CGC will now buy an additional 20% of PharmHouse's output for the next three years. PharmHouse had previously committed 10% of its flowering space to Canopy Growth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsStill, despite what the PharmHouse deal means to Canopy Growth, much of the focus has settled on mergers and acquisitions (M&A). The latest M&A deal for Canopy involves a buyout of New York-based Acreage Holdings. However, in reality, one could better describe this "agreement" as an option. The deal will not close until recreational weed becomes legal across the U.S. * 7 Stocks to Buy that Lost 10% Last Week I agree with my InvestorPlace colleague Tom Taulli that the alliance with Constellation Brands (NYSE:STZ) alliance holds Canopy Growth in good stead. I also believe the company has positioned itself for a leadership position in the U.S. in both hemp and cannabidiol (CBD). This benefits the firm without regard to what happens with the Acreage deal. I also see Canopy Growth remaining the market leader in North America when U.S.-based companies can operate with full legal status. Investors Should Separate Canopy Growth, CGC stockStill, what helps Canopy Growth may or may not boost Canopy Growth stock. The current hype regarding marijuana stocks renders the price-to-sales (P/S) ratio of around 135X meaningless. However, it also leaves investors without a valuation-based metric with which to evaluate CGC stock.Hence, this leaves investors with the charts as a guide. For all of the hype, Canopy Growth stock has twice pulled back after spiking above $55 per share in intraday trading. In recent weeks, even the Acreage deal could not keep CGC stock above $50 per share. Moreover, since Jan. 15, it has rarely moved below $40 per share or above $50 per share. CGC Stock Has Become Range-BoundDespite its elevated multiple, I do not think it will break through the lower end of the range unless a recession occurs, or the U.S. suddenly makes cannabis legal.For now, traders have focused on when and how CGC stock will break through on the high end of the range. The elevated P/S ratio will struggle to go even higher without further stimulus. However, seeing the rally fizzle after the stock moved past $50 per share could make one wonder whether stimulus truly helps. Moreover, seeing marijuana stocks (including CGC) tank after weed became officially legal in Canada remains fresh on investor's minds. It also shows the strange and powerful phenomenon of illegality driving cannabis equities.Like most, I believe CGC stock will trade at higher levels years from now. However, until we see the stock stay above $55 per share, I do not think that the higher stock price will come in the near term. Final Thoughts on CGC StockCGC stock trades near the high end of its range, and I expect CGC will stay in the range. The PharmHouse deal serves as yet another confirmation that the growth story remains intact for Canopy Growth. However, it will likely not have a material effect on Canopy Growth stock. * 10 Stocks to Sell Before They Tank Your Portfolio Moreover, before the company announced this deal, CGC had fallen back to levels it saw before they announced the Acreage Holdings deal. Simply put, CGC stock has become range-bound.The prospects of the cannabis industry should keep Canopy Growth stock at an elevated multiple in the near term. However, even a major coup such as the Acreage deal has failed to put CGC stock back on a growth trajectory.The Acreage and the PharmHouse deals show that Canopy Growth has both the strategic vision and the product needed to lead the marijuana industry. Unfortunately, translating this insight into near-term growth for Canopy Growth stock will prove more elusive.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Why Canopy Growth's Deals May Not Translate Into Gains for CGC Stock appeared first on InvestorPlace.
There may very well be at least three reasons to not sell Canopy Growth (NYSE:CGC) stock. But the price chart is warning investors that they shouldn't buy CGC stock now. Let me explain.I enjoy reading InvestorPlace contributor Luke Lango's take on the markets. His analysis personally turned me on to both Shopify (NYSE:SHOP) and Twilio (NYSE:TWLO) long ago when many other traders and financial pundits were warning of their downside risks well before their subsequent, massive, triple-digit-percentage gains. KAAACCHHINGG! * 6 Chinese Stocks That Could Pop On a Trade Deal But getting back to Canopy Growth stock, this week Luke wrote that investors shouldn't sell Canopy Growth. The first reason he cited was trade-war headwinds being overblown and not really an issue for CGC. I totally agree with that. Still, that doesn't make Canopy Growth stock worth buying.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLuke also wrote that the slowdown in Canada's cannabis market isn't actually terribly alarming and discussed the tailwind of the still-untapped U.S. market. Those points are good reasons to not sell CGC stock, but they fail to make Canopy Growth stock worth buying at the moment.Now don't get me wrong. My caution on Canopy Growth stock doesn't mean that I'm advocating shorting CGC. I'm nowhere near ready to put Canopy Growth stock in the same boat as Tilray (NASDAQ:TLRY) whose fortunes have gone up in smoke over the past several months. However, considering the volatility of the cannabis market and the CGC stock chart, the shares aren't close to worth buying if history is any indicator. CGC Stock's Daily ChartThe volatile and some might say temperamental behavior of CGC stock has foiled bulls' attempts to exploit its positive trend using breakout strategies. That is illustrated by higher and above-average volume buy signals sent by triangle patterns, a classic short-handle consolidation and a very recent failed breakout as relative highs were cleared.But Canopy Growth stock has also been somewhat of an equal opportunity trap for bears too.The chart of CGC stock depicts a couple of breakdowns of CGC that were reversed. There was last summer's out-of-left-field explosive gain on partnership news with beverage giant Constellation Brands (NYSE:STZ). And earlier this spring a bear flag similarly failed after breaking down courtesy of a rally a short while later.Of course, some bulls might be quick to point out that, during both bearish patterns, CGC did not fall below the support provided by its 200-day simple moving average. That incidentally made CGC stock ripe for buying. That's true, but there's always a technical line on the price chart somewhere that drive buy decisions which work out favorably. The Bottom Line on CGCIn our view, CGC stock's squiggly price line is a tricky one to trade. And given the shares' history of volatile failures in the wake of breakdowns and breakouts, today's pullback pattern isn't a reason to sell Canopy Growth, but it does not make CGC worth buying just yet.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Why Canopy Growth Stock Isnat Worth Buying Yet appeared first on InvestorPlace.
Shares of AbbVie Inc. fell 1.8% in premarket trade after the company announced that interim data from a Phase 3 trial of glioblastoma drug Depatux-M did not show any survival benefit to patients. An independent monitoring committee recommended stopping the trial, which was conducted in collaboration with the RTOG Foundation, a not-for-profit cancer research organization. "Glioblastoma patients and their caregivers face a devastating disease for which there are few therapeutic options. While we are disappointed that Depatux-M did not demonstrate a survival benefit in the INTELLANCE-1 study, we remain committed to discovering and developing therapies to address some of the most debilitating cancers," said Michael Severino, vice chairman and president of AbbVie, in a statement. AbbVie has halted enrollment in all of its Depatux-M studies. Shares of the company have fallen 14% in the year to date through Thursday, while the S&P 500 has gained 14.7%.