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This basket consists of stocks that serve the 18+ crowd, such as casinos, alcohol, tobacco, and strip clubs.
Anheuser-Busch InBev SA/NV
Philip Morris International Inc.
Altria Group, Inc.
Las Vegas Sands Corp.
Constellation Brands, Inc.
MGM Resorts International
Wynn Resorts, Limited
Molson Coors Brewing Company
The Boston Beer Company, Inc.
Boyd Gaming Corporation
Red Rock Resorts, Inc.
Penn National Gaming, Inc.
RCI Hospitality Holdings, Inc.
Spirits maker Diageo Plc said on Thursday it was "not immune" to changes in global trade policies, but based on the current environment expects to meet its full-year organic sales targets. The Johnnie Walker whisky and Tanqueray gin maker said it continues to expect organic net sales growth to be towards the mid-point of a 4% to 6% range and organic operating profit to grow roughly one percentage point ahead of organic net sales. The company also said it expects first-half organic operating profit growth to be in-line with or slightly behind organic net sales growth, due to stronger prior year comparables.
Spirits maker Diageo Plc said on Thursday it was "not immune" to changes in global trade policies, but based on the current environment it expects to meet its full-year organic sales targets. The Johnnie Walker whisky and Tanqueray Gin maker said it continues to expect organic net sales growth to be towards the mid-point of a 4% to 6% range and organic operating profit to grow roughly one percentage point ahead of organic net sales.
A House subcommittee responsible for overseeing consumer product investigations looked into Juul's practices in June and said in a letter delivered to the company that it has not fully complied with requests, CNBC reported. Lawmakers were interested in viewing a list of schools who financially benefited from an anti-vaping curriculum and details related to Altria's 35% stake. "Those documents have not been produced," Subcommittee Chairman Raja Krishnamoorthi, D-Illinois, was quoted by CNBC as saying in an MSNBC interview.
It's easy to predict that a recession will come eventually. They always do. The trick is in the when - and even the most experienced experts take a lot of swings without making contact.But more strategists and economists are increasing their odds of a forthcoming recession. An August survey by the National Association for Business Economics showed that three of four economists expect a recession by 2021. It could come sooner than that. Also in August, Bank of America analysts said there's a greater-than-30% chance of a recession within 12 months. In a June interview, economist Gary Shilling said, "I think we're probably already in a recession."There are plenty of potential catalysts. Numerous international central banks are easing their policies to battle slowing economic growth. America's Federal Reserve is no exception - it just announced the second cut in its benchmark interest rate this year. The U.S.-China trade war is exacerbating things, with a salvo of tariffs weighing on consumers here and abroad. This has been reflected in the Treasury yield curve, which has inverted several times in 2019 - a recessionary warning sign.Don't look to these five stocks for recession protection. Many businesses surely will feel the pinch of an economic pullback. But these five better-known names - while fine companies in some respects - have issues such as high debt levels and struggling growth despite the economic expansion that might make a downturn more painful for them than others. SEE ALSO: The Pros Say No: 7 Large-Cap Stocks to Sell or Avoid
Consumer staples stocks have largely fallen off the radar in recent months. Investors have been much more focused on growth as corporate earnings have pleasantly surprised, the U.S.-China trade spat showed signs of hope and the Federal Reserve decided to keep interest rates steady.Naturally, these more defensive companies haven't been especially red-hot of late. Consumer staples stocks have lagged the marketwide bounce that took shape beginning in late December. But with many other sectors starting to feel the weight of unwieldy gains, and with China trade talks yet again hitting turbulence, the sector might be ready to heat up again.Steve Azoury, founder of financial planning firm Azoury Financial, says, "Consumer staples, the products that people use every day, will always be a big part of America's economy." "The trick," he adds, is identifying the companies that "will stay innovative and update their products and services to excite their customers, and thus the stock prices for investors."Here are 17 of the best consumer staples stocks to invest in at the moment. While some of these are blue-chip stocks that should ring a bell, others are lesser-known companies that serve as the backbone of brands you may be more familiar with. Almost all of them provide varying levels of dividend income. SEE ALSO: 57 Dividend Stocks You Can Count On
(Bloomberg Opinion) -- There are few quotations that have stuck with me over the years like the one delivered by the anti-tobacco scientist Stanton Glanz back in 2006, when I was writing an article about Altria Group Inc. Asked what his ultimate goal was, he didn’t say it was to get people to stop smoking. He said it was “to destroy the tobacco companies.”I thought of that line on Monday, the day after Purdue Pharma LP filed for bankruptcy, and the day ahead of the first court hearing before the respected U.S. Bankruptcy Court Judge Robert Drain, in White Plains, N.Y.The filing was inevitable: No company can withstand over 2,600 lawsuits from states, counties, cities and Native American tribes all across the country.What was not inevitable was Purdue’s proposed solution. As part of its bankruptcy filing, Purdue unveiled a settlement proposal that would set up a trust to give cash to those affected by the opioid crisis it helped trigger with its primary product, the painkiller OxyContin. The money, which Purdue estimated at around $10 billion, would come from the company’s present and future profits, as well as $3 billion from Purdue’s owners, heirs of founders Arthur, Mortimer and Raymond Sackler. Some 24 states were backing the settlement, along with five territories and over 1,000 counties. But other states are opposing the settlement, including Massachusetts. In an op-ed article in The Washington Post on Monday, Massachusetts Attorney General Maura Healey explained why. The proposed settlement, she wrote, “doesn’t hold the company or its owners accountable.” After documenting Purdue’s undeniable role in the crisis — “We uncovered a scheme to get more patients on opioids, at higher doses, for longer periods of time,” she wrote, even as the Sacklers were pocketing billions — she declared: “Accountability means making the Sackler family reach into their own pockets. It means telling the whole truth. It means shutting down Purdue for good.”That’s just crazy. The idea that shutting down Purdue will somehow be a societal good is exactly like saying that destroying tobacco companies is more important than getting people to stop smoking. The goal should be to provide money that government entities can use to combat the crisis. It should be to develop pain-relief drugs that are abuse resistant. It should be to find ways to manage severe pain without relying on drugs that addict and kill. Shutting down Purdue might give some attorneys general a notch on their belts, but it won’t help bring the opioid crisis to an end.At the hearing in White Plains on Tuesday — a sedate affair that mainly established the rules under which Purdue would continue to operate while in bankruptcy — the company’s lead attorney, Marshall Huebner of Davis, Polk & Wardwell, outlined the Purdue plan.A trust would be set up, controlled by the plaintiffs, that would dole out money to communities and individuals who had legitimate claims of being harmed by opioids. The trust would take control of Purdue, meaning that those who are now suing Purdue would effectively own the company. It would continue to manufacture OxyContin, but the owners would also be able to direct the company towards developing drugs to counteract opioid addiction. Meanwhile, Purdue profits would be sent to the trust.In the near term, Huebner said, the company’s goal was maximizing and preserving its value. That meant stopping the millions it was spending on lawyers — and the millions more it would be spending if it had to start trying cases. It meant retaining scientists and other key employees who were wondering whether they should jump ship. He described what Purdue was doing as “radically de-risking the situation,” in the sense that those suing the company were being guaranteed every penny Purdue could generate without the risk of losing at trial. Purdue, meanwhile, was eliminating the risk of being put out of business through litigation, which wouldn’t leave anywhere near the amount of money the plaintiffs were now going to get.“Purdue is not shielding itself from these claimants,” Huebner said. “It is giving itself to these claimants without them ever having to prevail in the litigation.” He added: “It is very much the best case for the country. Pursuing cases outside Chapter 11 benefits no one.”The real bone of contention between those who back the settlement and those who oppose it isn’t so much what will happen to Purdue as it is what will happen to the Sacklers. Huebner made much of the fact that the family would be selling another pharmaceutical company it owns to help raise the $3 billion. But that is exactly what galls critics like Healey: selling a company to raise money is different from taking money out of your pocket and handing it over to the people who are suing you.At the hearing, Purdue’s lawyers went out of their way to assure the court and the critics that the company was disassociating itself as much as possible from the Sacklers. No Sackler family member remained on the board. No Sacklers would get their legal fees paid by the company. No Sacklers would get any of the retention bonuses and other money the company was spending to hold onto key employees. Be that as it may, it seems pretty clear that critics like Healey won’t be satisfied unless the settlement inflicts more pain on the family.Right now, the bankruptcy has stopped all litigation against Purdue, including from the government entities that are opposing the settlement. Over the next few months, Judge Drain will have to decide whether the lawsuits brought by those who have not agreed to settle can continue. As Bloomberg News pointed out on Tuesday, while Drain could put all litigation on hold, the law tends to favor attorneys general who want to keep suing. If he allows the suits to continue, the settlement will fall apart. As the company put it in court papers, “Absent this protection [from lawsuits], the fundamental goal of this or any bankruptcy will have been thwarted.”A better approach would be to encourage the various government entities to forge a settlement with Purdue that excluded the Sacklers. Then they could continue suing family members, or craft a different settlement with them that took away a significant portion of the $13 billion they are said to be worth. Now that there are no Sacklers on the Purdue board, this strikes me as reasonably realistic.In 1981, Johns Manville, an insulation and roofing manufacturer facing thousands of lawsuits for covering up the dangers of asbestos, filed for bankruptcy. It was the first company to employ the technique Purdue hopes to use: It set up the Manville Trust and seeded it with 75 percent of the company stock. The trust pays out claims to this day. (Johns Manville, no longer associated with the trust, is now owned by Berkshire Hathaway.)Here’s the kicker, though. It took seven years for Johns Manville to emerge from bankruptcy and for the Manville Trust to be established. Even then, tens of thousands of people who had asbestos-related cancer had to wait another three, four or five years to get any compensation. And they received only pennies on the dollar.The entities affected by the opioid crisis — whether states, cities, tribes or individuals — can’t wait that long to get relief. They need it now. The settlement that was negotiated between Purdue and the plaintiffs will get them that money. That’s enough reason the settlement on the table is the best way forward, even if it doesn’t satisfy the soul.To contact the author of this story: Joe Nocera at firstname.lastname@example.orgTo contact the editor responsible for this story: Jonathan Landman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Markets may not be thrilled with the idea of Altria Group and Philip Morris International recombining, but Citigroup argues that a merger between the tobacco giants is looking more likely.
Investing.com - Shares of tobacco company Altria Group (NYSE:MO) set a new 52-week low of $40.82 Wednesday after India announced a ban on e-cigarettes as a global backlash against vaping gathers pace.
India's ban on electronic cigarettes will not apply to use of such devices and the government was prepared to defend its decision if it's challenged in a court, a senior health ministry official told Reuters on Wednesday. India banned the sale of electronic cigarettes and warned of an "epidemic" among young people, in the latest and potentially biggest move against vaping globally over growing health concerns. Vikas Sheel, a senior federal health ministry official, said it would not apply on use of such devices.
(Bloomberg) -- India became the latest country to ban electronic cigarettes only days after Juul Labs Inc.’s products vanished from online Chinese marketplaces, a sign Asian nations may be no refuge for the industry from an escalating crackdown in the U.S.India’s government announced an executive order Wednesday banning the sale and production of all e-cigarettes, echoing growing concerns worldwide over health risks associated with the smokeless nicotine devices popular with teenagers.“Why are we debating if it’s more harmful or less? It is harmful. It is addictive,” said Preeti Sudan, India’s health secretary. “The entire next generation will be going down the drain if we don’t control it now.”Originally touted as a safer alternative to wean people off cigarettes, e-cigarettes have come under widespread attack in the U.S., especially for their appeal among youth. India’s decision follows similar prohibitions in about 27 other countries including Australia, Singapore and Brazil and comes on the heels of halted online sales of Juul’s products in China, the world’s largest tobacco market.‘Strong’ ActionDespite increasing global curbs on vaping, some nations view e-cigarettes as viable alternatives to smoking, a leading cause of preventable death. And though cigarette companies are getting into the electronic nicotine-delivery business -- including most notably a nearly $13 billion investment in Juul by Marlboro maker Altria Group Inc. -- a vaping health scare could cause sales of the tobacco giants’ most important products to jump.Shares of cigarette makers in India gained on news of the ban.U.S. President Donald Trump has vowed to “do something very, very strong” after the recent outbreak of a mysterious lung disease linked to vaping that has killed six people in the U.S. and afflicted hundreds of others. Lawmakers in the U.S. are also investigating the marketing of Juul, America’s top-selling e-cigarette brand.U.S. Representative Raja Krishnamoorthi, an Illinois Democrat, told Juul Chief Executive Officer Kevin Burns in a letter dated Tuesday that the company had failed to produce all the documents requested by a House Oversight Committee and that further delay could result in the company receiving a subpoena.Juul only started selling its nicotine vaporizers online in China last week. Its official online stores disappeared on Alibaba Group Holding Ltd.’s Tmall and JD.com Inc. by Tuesday, prompting speculation that official action may be on the way.Juul wasn’t given a reason for why its products were pulled, according to a person familiar with the matter, but said in a statement it wants to make them available again.No Reasons GivenThe latest developments in India and China come as a blow to vaping companies that were setting their sights on Asia, where 65% of the world’s cigarettes are sold, as increased pressure in the U.S. forces them to look for growth elsewhere. India alone has 266.8 million tobacco users, according to a WHO factsheet.It isn’t clear if China plans to ban or enforce stricter scrutiny of e-cigarettes or vaping devices. The country’s National Health Commission -- a body responsible for health and sanitation -- announced it was devising legislation for such products in July, arguing the “hazards of e-cigarettes should be highly valued.”The Chinese health commission also said labels describing nicotine concentration on many such products are vague, and can lead to excessive consumption by users.Michael R. Bloomberg, the founder and majority owner of Bloomberg News parent Bloomberg LP, has campaigned and given money in support of a ban on flavored e-cigarettes and tobacco.Some nations, however, view vaping as a lesser evil than smoking.Public health officials in the U.K., the biggest market in Europe for the products, endorse vaping as a way to wean people off smoking -- the prevailing view across Europe, where authorities are more sanguine about the effects of vaping.E-cigarettes allow users to satisfy their cravings by inhaling vaporized nicotine rather than tobacco smoke. Their popularity has soared in recent years driven by candy-like flavorings, sleek devices and savvy marketing.The U.S. Surgeon General called it an “epidemic,” after Health and Human Services Secretary Alex Azar told reporters that 5 million American kids said they’ve vaped this year. The Food and Drug Administration has been investigating the safety of e-cigarettes after reports of seizures.(Updates with U.S. lawmaker’s letter to Juul Labs in eighth paragraph.)\--With assistance from Carolynn Look and Shruti Srivastava.To contact the reporters on this story: Ari Altstedter in Mumbai at firstname.lastname@example.org;Bibhudatta Pradhan in New Delhi at email@example.comTo contact the editors responsible for this story: Rachel Chang at firstname.lastname@example.org, Bhuma Shrivastava, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Congressional Democrats on Wednesday threatened to subpoena Juul Labs if the e-cigarette maker does not provide documents relating to its products and marketing practices, as a House panel looks into whether the company deliberately targeted children. The House subcommittee ordered Juul, which is privately held, to produce the documents by Oct. 1, or "we may have no choice but to seek compulsory process," Krishnamoorthi wrote in a letter to the company on Tuesday. Juul and other vaping companies have come under increased scrutiny amid multiple lawsuits, several deaths and possibly hundreds of illnesses tied to e-cigarettes, which are used to inhale nicotine vapor without smoking.
The past six months have gone from bad to worse for Canadian cannabis producer Aurora Cannabis (NYSE:ACB). In just a few short months, Aurora Cannabis stock has shed nearly 70% of its value as both the industry and the firm itself faced severe headwinds.Source: Shutterstock Despite being a popular pick among millennial investors this summer, ACB stock has been on a downward trajectory. Even worse, it looks unlikely to reverse anytime soon. Aurora Cannabis Stock DowngradeA big part of the reason why the ACB stock price has floundered is due to negative analyst commentary. Most recently, Stifle Nicolaus analyst Andrew Carter gave the stock a "sell" rating with a $5 price target. That's a whopping 30% lower than where the stock is trading today. That's including the massive decline over the past six months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCarter pointed to the firm's dismal fourth-quarter results. He noted that this is just the beginning of a larger, more concerning story. Carter believes the firm will soon be coming to capital markets, looking for more cash to fund future growth plans. * 7 Momentum Stocks to Buy On the Dip The trouble with that is investors aren't exactly keen on the marijuana industry right now. And that's reflected in the prices of cannabis stocks across the board. Simply put, the uncertainty about the Canadian recreational market coupled with worries about the industry's future as new regulations are proposed has made investing here risky.With the current macroeconomic environment and a skittish market on the table as well, investors are putting their money elsewhere. Future Looks BleakBut even if they were looking to take on a little risk and dip their toe in the marijuana market, Aurora Cannabis stock is likely the last place they'd want to put their money. As I highlighted last month, ACB hasn't given investors much to go on when it comes to future growth prospects.So far, the firm hasn't given any indication about its plans to enter the CBD market. That's a huge growth opportunity that isn't marred with as many regulatory challenges as the recreational cannabis industry is.Even more importantly, though, is the fact that ACB doesn't have any commercial partners to help it grow in the retail space. This is a big deal for a few reasons.First, in order for pot products to gain momentum, they need money and reach. Big brands like Molson Coors (NYSE:TAP) and Constellation Brands (NYSE:STZ) have been inking deals with cannabis companies to bring their products to market. However, ACB hasn't buddied up. That added safety simply isn't there for ACB investors.Not only that, the fact that no big-name brands have cozied up to ACB should raise some major red flags. The company even brought on Nelson Peltz as a strategic advisor in order to help the firm find a strategic partner. It's worrying that six months later, there's been no movement in that department. Time is Running Out for ACBIt's hard to find any upside in Aurora Cannabis stock right now. As the industry comes under pressure, competition will heat up. Plus, ACB's better-funded, more exposed rivals will likely come out on top. Unfortunately, Aurora appears to have missed that boat. As the firm starts searching for ways to fund its future, it will likely struggle to find investors willing to take that risk. The Bottom LineNormally, I love a turnaround story. And I truly believe that following Warren Buffett's advice to be fearful when the market is greedy and greedy when the market is fearful is hands down the best way to make investment decisions.However, I think the worry surrounding ACB stock right now is well founded. Not only is the company in a precarious position during a turbulent time for the pot industry, but its balance sheet is on shaky ground as well.The firm has paid a staggering amount for its acquisitions over the past few years. Those investments have yet to prove their worth. I'd stay well away from Aurora Cannabis stock for the foreseeable future unless the company makes a drastic about-face over the next few months.As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post There Isn't a Silver Lining for Aurora Cannabis Stock appeared first on InvestorPlace.
Canopy Growth (NYSE:CGC) stock has some big problems. There is no growth at this marijuana company. Net revenue fell to $90.5 million CAD for its June quarter, down from the prior-quarter revenue of $94.1 million CAD.Source: Shutterstock What's more is that CGC's adjusted free cash flow losses widened from the prior two quarters. FCF came in at a loss of $372 million CAD in the latest quarter. This is about even with the prior quarter's loss of $373 million CAD.But after including acquisitions, the adjusted FCF widened to loss of $824 million CAD from a loss of $414 million CAD. This is an increase in adjusted-FCF losses of 99%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCGC stock won't be rising anytime soon with these kinds of losses. For example, CGC's cash and securities balance fell 30% in the most recent quarter to $3.1 billion CAD. If Canopy Growth keeps draining its cash as it did last quarter, CGC stock will keep falling.Two months ago, I wrote that ex-CEO Bruce Linton told Bloomberg that CGC's goal was to reach $1 billion CAD in sales by March 2020. With sales falling like it did this past quarter, $1 billion CAD in sales won't be reached anytime soon. What Happened to CGC Stock?Recreational cannabis revenue, the biggest portion of CGC's revenue, fell 11% from $68.9 million CAD to $61 million CAD. Even though medical and international sales rose during the quarter, total gross revenue fell 2.9%.More disturbing is the fact that total sales in volume terms (kilograms and equivalents) rose 13%. Total sales volume was 10,549 kilograms and equivalents in the latest quarter against 9,326 kilograms in the prior quarter. But comparing the June quarter with the December quarter, volume increased only 4.4%. * 7 Momentum Stocks to Buy On the Dip So that means the effective cannabis price fell this quarter. You can't keep selling 13% more product and see your gross revenue fall by 2.9%. That is a losing proposition. It also does not augur well for the future of the cannabis industry. In effect, demand was tepid and prices fell.So what does the future look like for CGC stock? Stay Wary Until Demand Shows UpCanopy Growth stock can survive for the time being since it has $3.1 billion CAD in cash and securities. But in the past six months, CGC has bled out $1.7 billion CAD of its cash and securities balance.Most of that money was received when Constellation Brands (NYSE:STZ) invested $5 billion CAD in Canopy Growth stock. It's probably not very happy that its investment has not yet paid off.If CGC keeps losing $824 million CAD each quarter, the $3.1 billion CAD balance will be mostly spent in the next year. CGC stock's market value, now worth $12.9 billion CAD, will dramatically drop. Investors will anticipate the need for another capital infusion and the related dilution effect. Canopy Growth's Game Plan for $1 Billion in SalesCanopy Growth needs to prove how it will reach $1 billion CAD in sales. Presumably, that is the break-even cash flow level of sales. It is going to take much longer than previously anticipated. At this pace, CGC will not achieve even half that amount by the end of March 2020.For example, is the company depending on future markets in the U.S. to open up? Is it solely relying on the regulatory opening of the cannabis-infused edibles market next month? Analysts are calling this "Cannabis 2.0" after the 2018 nation-wide recreational market opened.I highly suspect that is Canopy Growth's game plan. I would wait to buy CGC stock until the company shows signs of being able to sustain itself financially after this edibles market opens up.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks and was launched on August 30. Subscribers during September receive a 20% discount, plus a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Canopy Growth Stock Faces Big Problems appeared first on InvestorPlace.
India banned the sale of electronic cigarettes on Wednesday and warned of an "epidemic" among young people, in the latest and potentially biggest move globally against vaping over growing health concerns. It could dash the expansion plans of companies such as Juul Labs and Philip Morris International in the country. "These novel products come with attractive appearances and multiple flavours and their use has increased exponentially and acquired epidemic proportions in developed countries, especially among youth and children," India's health ministry said.
Although not a pure cannabis play, New Age Beverages (NASDAQ:NBEV) has had to deal with the same volatility. Since January's opening price, NBEV stock has dropped a staggering 37%. However, the downfall isn't due to a lack of trying.Source: Shutterstock Early this year, NBEV announced an addition to its Marley-branded beverages called Marley+CBD. Infused with cannabidiol or CBD, the cannabis compound brought a therapeutic element to the artisanal beverage series. Plus, the positive notoriety associated with CBD gave New Age Beverages stock a nice lift following the announcement.This past summer, New Age CEO Brent Willis showcased the company's Nhanced CBD line of oils, creams and lotions. Launched in Hong Kong, NBEV intends to expand into Japan and China next.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnfortunately, NBEV stock peaked in early February. From then on, save for some smatterings of good news, it's been all downhill for shares.That said, New Age Beverages stock appears to have found a bottom around the psychologically significant $3 level. Granted, most conservative investors should ignore this technical phenomenon. But for the speculators among you, NBEV might be an interesting play.In a strange way, I say this because of the current vaping crisis. Federal health agencies are investigating a recent spike of acute lung illnesses which they believe are associated with vaping. However, evidence suggests that illicitly sourced THC-infused vaping liquids are the real culprit. * 10 Battered Tech Stocks to Buy Now In the context of companies like Cronos Group (NASDAQ:CRON), the vaping crisis is a distraction. For the time being, it's probably kept NBEV stock in check, too. But in the long run, this issue may benefit New Age Beverages. Here's why: A Platform Crisis Will Give Way to CuriosityOne of the challenges of cannabis-based companies is overcoming the stigma associated with the plant. Typically, the term "cannabis" conjures up images of stoners smoking, or in this case vaping a joint.As my InvestorPlace colleague Will Ashworth noted, vaping or smoking products will always be a tough sell, irrespective of alleged health benefits. But products like beverages, oils and creams? That is a much more palatable situation, one that clearly favors New Age Beverages stock.Recently, I had a chance to sit down with corporate representatives John Weston and Paul Dibrito of cbdMD (NYSEAMERICAN:YCBD). During our conversation, we discussed the wide-ranging product diversity of the CBD and hemp space. For instance, cbdMD features ample ways to enjoy hemp-based therapies beyond vaping. They also have a pet product division called Paw CBD.What does this have to do with NBEV stock and the vaping crisis? No matter what's going on right now, an increasing number of people are interested in CBD for therapeutic use. Sure, the vaping platform might take a hit (no pun intended) from the present crisis. But the core substance itself has substantial support.Therefore, it's much easier to evangelize the benefits of hemp-based products to your family and friends when using socially appropriate platforms. You might not be able to roll a fatty for grandma, no matter how much she complains of pain. But a capsule or a refreshing beverage? That's much easier to swallow (pun intended).Plus, not everyone is healthy enough to smoke or vape. For instance, more than 25 million Americans have asthma. Vaping might not be the best choice for them. But a CBD-infused beverage, as far as I'm aware, is consumable by nearly everyone. NBEV Stock and Long-Term AmbitionsInterestingly, NBEV CEO Willis was formerly a Coca-Cola (NYSE:KO) and Anheuser Busch Inbev (NYSE:BUD) executive. As you might imagine, he's now a strong advocate of legal cannabis.But Willis' push to drive into Asia strikes me as extremely ambitious. When he mentioned Japan, I rolled my eyes. This is the country that arrested and deported former Beatle Paul McCartney. * 7 Momentum Stocks to Buy On the Dip Moreover, when Canada legalized recreational marijuana, the Japanese government issued a stern warning to its citizens living abroad: don't touch the stuff or risk severe penalties.In my opinion, this was an empty threat. However, it does demonstrate Japanese society's highly conservative viewpoint toward the cannabis plant.Naturally, this is an uphill battle for New Age Beverages and NBEV stock. At the same time, if you're going to break into Asia, doing so with CBD-infused beverages probably gives you the best chance of success.But as I said earlier, that sentiment should apply to almost anyone. New Age Beverages stock is incredibly risky. Due to its palatable platform, though, it might have an outside chance of delivering the goods.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Why the Vaping Crisis Might Benefit CBD-infused New Age Beverages Stock appeared first on InvestorPlace.
New York became the second state to ban flavored e-cigarettes on Tuesday after its Democratic governor called for emergency action in response to concerns about their rising use among teens and a nationwide spate of lung illnesses. Governor Andrew Cuomo on Sunday called for an urgent meeting of the state's Public Health and Health Planning Council to consider the proposed ban. The panel on Tuesday voted to adopt the prohibition, which applies to all flavored e-cigarettes besides menthol, Cuomo's office said in a statement.
Invesco launched two new ETF entries as a part of their BulletShares suite on Thursday, Sept. 12. The Invesco BulletShares 2027 High Yield Corporate Bond ETF and the Invesco BulletShares 2029 Corporate Bond ETF (BSCT n/a) have now found their way to the NYSE.
U.S. e-cigarette maker Juul Labs Inc said on Tuesday its products were not currently available on e-commerce web sites in China, days after it entered the world's single-largest market for tobacco consumption with over 300 million smokers. "While JUUL products are not currently available on e-commerce Web sites in China, we look forward to continued dialogue with stakeholders so that we can make our products available again," the company spokesperson said, without disclosing any reason for the halt of sales. Juul, in which tobacco giant Altria group owns a 35% stake, is facing a regulatory crackdown and increased government scrutiny in the domestic market.
The cannabis industry as a whole continues to face unforeseen pressures, and Canopy Growth (NYSE:CGC) hasn't been an exception to that headwind. But, of all the marijuana stocks worth a closer look now, CGC stock is at the top of that relatively short list.Source: Jarretera / Shutterstock.com That's not been the case in a long, long while. In July, CGC's board of directors, which is mostly controlled by the company's single-biggest shareholder Constellation Brands (NYSE:STZ), terminated CEO Bruce Linton. This led to a disruption at a critical time for cannabis companies.A sequential decline in quarterly revenue rattled owners of Canopy Growth stock in August as well, further fanning already-bearish flames. The backdrop has been decidedly grim.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet, this month's rebound effort is undeniable, and arguably well-supported. Canopy Growth Stock Takes the LeadSince early this month, cannabis stocks have started to put some distance between themselves in terms of performance. Tilray (NASDAQ:TLRY) is up 21% since the end of August, while Aurora Cannabis (NYSE:ACB) has broken even and CannTrust Holdings (NYSE:CTST) has given up 13% of its value.CGC stock is at the upper end of that performance race, gaining nearly 19% this month.The divergence likely has much to do with an increasing understanding of each companies' nuances following a wave of earnings reports. * 7 Momentum Stocks to Buy On the Dip That's certainly been the case for Canopy Growth, which has enjoyed the added benefit of interim CEO Mark Zekulin making a proactive effort to unwind some of the damage that's been done to Canopy Growth stock over the course of the past two months. His focal point?"We have been in construction for 70 months," Zekulin told CNN. "We have four months left on that expansion plan. … A lot of that work is now done and the real focus is taking the chess board that we've set and really focusing on now executing."The market seems to be buying the idea, although there's an even bigger reason CGC stock could have rekindled its bullishness. Winning Where it CountsThe cannabis industry is still gelling, and its players are still trying to figure out their place in it.Canopy Growth's place is, for the most part, recreational marijuana -- and recreational marijuana in Canada in particular. For the quarter ending in June, 72% of revenue was made up by sales of recreational cannabis, and only 12% of its sales were made to international customers. And, 80% of its gross sales were of dry cannabis used for smoking.The revenue headwind was and is a legitimate concern. But a couple of key details were glossed over by a market that was ready to see the glass as half empty rather than half full. Chief among those details is the fact that the revenue lull wasn't the indication of waning demand it was being made out to be.The evidence: The average selling price of cannabis, per gram, in Canada hasn't swayed since mid-July, holding steady at $7.22 CAD. Prices in the United States, meanwhile, have actually improved since mid-July, negating the chatter that supply has far outpaced demand.In that vein, although the quarter ending in June wasn't the one Canopy Growth stock owners were hoping for, demand continued to rise. Adult-use purchases of cannabis in Canada reached a record $85 CAD million in June, rising for a fourth-straight month.That's right in Canopy's sweet spot. And it's happening at a time when the company is about to maximize all those pieces on the proverbial chess board. The Bottom Line for CGC StockDon't misread the message. Canopy still has much to prove, and even with the recent selloff, the stock remains outrageously overvalued.That's not a particularly big liability in this instance though. While Canopy Growth admittedly spent too aggressively on acquisitions, those acquisitions do improve the company's capacity to connect with consumers and secure more supply. Canopy just needs to get more out of those assets. That's in the works, even before a new CEO takes the helm.How far or how high that might take CGC stock remains uncertain. But, up 20% from last month's low is a good start to a rebound. And it has plenty of backing via lip service.You could certainly do worse.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Canopy Growth Stock Emerges as Top Pick appeared first on InvestorPlace.
Some retailers in China have pulled Juul products from their websites just a week after the products were launched. Juul responded in a statement to Yahoo Finance saying “While JUUL products are not currently available on e-commerce Web sites in China, we look forward to continued dialogue with stakeholders so that we can make our products available again. We remain steadfast in our commitment to providing the more than 300 million adult smokers in China with a viable alternative to combustible cigarettes.” Yahoo Finance's YFi AM discusses.
Sep.18 -- Francis Lun, chief executive officer at GEO Securities, and Bloomberg’s Julia Fioretti discuss AB InBev’s revived initial public offering of its Asian unit. They speak on “Bloomberg Markets: China Open.”
AB InBev wants to have another go at spinning off it Asian arm. The world's biggest brewer is planning a Hong Kong share sale worth up to 6.6 billion dollars. It would value the unit at between 45 and 50 billion dollars. If successful, it would be the world's second biggest flotation this year. Jan Craps is boss of the Asian unit. (SOUNDBITE) (English) JAN CRAPS, CEO OF BUDWEISER APAC, SAYING: "Theoretically of course it is possible that it does not go through. It's conditional to the right valuation and market conditions. But we are quite confident that investor interest is there." Success isn't guaranteed though. Back in July AB InBev tried to raise almost ten billion dollars selling the same unit. But that IPO was soon pulled. Reuters sources say investors thought the price too high. Now the new deal excludes AB InBev's Australian operations. They've been sold to Japan's Asahi. That leaves a business more focused on faster growing markets like China and Vietnam. If investors play ball, AB InBev will use the proceeds to pay down its massive debts. They hit more than 100 billion dollars following its purchase of rival SAB Miller in 2016.