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36300.0 | 2013-12-02 00:00:00 UTC | Sector Update: Biotech Stocks Looking Strong As NASDAQ Struggles | ACAD | https://www.nasdaq.com/articles/sector-update-biotech-stocks-looking-strong-nasdaq-struggles-2013-12-02 | nan | nan | Biotech stocks are up on average 0.8% today versus the NASDAQ which is fractionally down and struggling to reach positive territory. Year-to-date the biotech stocks (SPSIBI) have experienced a near 50% increase, better than the NASDAQ's 30.45% move.
Among the major biotech stocks seeing the best gains are XOMA Corp ( XOMA ), up near 13% and near 52 week highs on heavy volume of 3.3 million shares versus a 30 day 1.35 million average daily volume. The Motley Fool said Friday that XOMA could be "in for a big post-Thanksgiving move today based on news that the biotech-focused hedge fund Baker Brothers has been snapping up the company's shares as of late."
The XOMA comments appear in an article entitled "Keep an Eye on Ariad Pharmaceuticals, AstraZeneca, and XOMA Today".
Also, Acadia Pharmaceutical ( ACAD ) is up 6.5% today. The company is expected to be represented tomorrow at The Piper Jaffray 25th Annual Healthcare Conference and next week at The Oppenheimer 24th Annual Healthcare Conference on Tuesday, December 10, 2013.
DYAX Corp ( DYAX ) is up more than 3% and its highest levels since 2004 as the company is expected to participate today and tomorrow in the Deutsche Bank BioFEST Conference.
Merrimack Pharmaceuticals ( MACK ) is more than 6% as the company announced on Friday positive trends from two phase II studies evaluating MM-121 for the treatment of breast cancer.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, Acadia Pharmaceutical ( ACAD ) is up 6.5% today. Biotech stocks are up on average 0.8% today versus the NASDAQ which is fractionally down and struggling to reach positive territory. The Motley Fool said Friday that XOMA could be "in for a big post-Thanksgiving move today based on news that the biotech-focused hedge fund Baker Brothers has been snapping up the company's shares as of late." | Also, Acadia Pharmaceutical ( ACAD ) is up 6.5% today. Among the major biotech stocks seeing the best gains are XOMA Corp ( XOMA ), up near 13% and near 52 week highs on heavy volume of 3.3 million shares versus a 30 day 1.35 million average daily volume. The company is expected to be represented tomorrow at The Piper Jaffray 25th Annual Healthcare Conference and next week at The Oppenheimer 24th Annual Healthcare Conference on Tuesday, December 10, 2013. | Also, Acadia Pharmaceutical ( ACAD ) is up 6.5% today. Among the major biotech stocks seeing the best gains are XOMA Corp ( XOMA ), up near 13% and near 52 week highs on heavy volume of 3.3 million shares versus a 30 day 1.35 million average daily volume. The Motley Fool said Friday that XOMA could be "in for a big post-Thanksgiving move today based on news that the biotech-focused hedge fund Baker Brothers has been snapping up the company's shares as of late." | Also, Acadia Pharmaceutical ( ACAD ) is up 6.5% today. Biotech stocks are up on average 0.8% today versus the NASDAQ which is fractionally down and struggling to reach positive territory. Among the major biotech stocks seeing the best gains are XOMA Corp ( XOMA ), up near 13% and near 52 week highs on heavy volume of 3.3 million shares versus a 30 day 1.35 million average daily volume. |
36301.0 | 2013-11-26 00:00:00 UTC | Sector Update: Biotechs Up Almost 1%, Adding To NASDAQ's Gain | ACAD | https://www.nasdaq.com/articles/sector-update-biotechs-almost-1-adding-nasdaqs-gain-2013-11-26 | nan | nan | Biotech stocks (SPSIBI) are attracting buyers again today, up 0.8% as a sector and lending good support to the NASDAQ's half percent gain. The biotech group has shown strength in the past six trading days, likely as investors seek aggressive growth opportunities.
Among the biotech stocks seeing the biggest gains today are ACADIA Pharmaceuticals ( ACAD ) and Avanir Pharmaceuticals ( AVNR ) both up near 4%. It was noted today that ACAD and ANVR will make presentations at two healthcare conferences in the next two weeks.
Also, Chimerix ( CMRX ) is up 3.6% as a SeekingAlpha article cites the company as a "significant player" in the antiviral therapeutics market. And, XenoPort ( XNPT ) is up near 2%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the biotech stocks seeing the biggest gains today are ACADIA Pharmaceuticals ( ACAD ) and Avanir Pharmaceuticals ( AVNR ) both up near 4%. It was noted today that ACAD and ANVR will make presentations at two healthcare conferences in the next two weeks. Biotech stocks (SPSIBI) are attracting buyers again today, up 0.8% as a sector and lending good support to the NASDAQ's half percent gain. | Among the biotech stocks seeing the biggest gains today are ACADIA Pharmaceuticals ( ACAD ) and Avanir Pharmaceuticals ( AVNR ) both up near 4%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. It was noted today that ACAD and ANVR will make presentations at two healthcare conferences in the next two weeks. | Among the biotech stocks seeing the biggest gains today are ACADIA Pharmaceuticals ( ACAD ) and Avanir Pharmaceuticals ( AVNR ) both up near 4%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. It was noted today that ACAD and ANVR will make presentations at two healthcare conferences in the next two weeks. | Among the biotech stocks seeing the biggest gains today are ACADIA Pharmaceuticals ( ACAD ) and Avanir Pharmaceuticals ( AVNR ) both up near 4%. It was noted today that ACAD and ANVR will make presentations at two healthcare conferences in the next two weeks. The biotech group has shown strength in the past six trading days, likely as investors seek aggressive growth opportunities. |
36302.0 | 2013-11-20 00:00:00 UTC | Sector Update: Biotech Stocks Getting Injection of Buying Interest | ACAD | https://www.nasdaq.com/articles/sector-update-biotech-stocks-getting-injection-buying-interest-2013-11-20 | nan | nan | The S&P Biotech Select Index was showing some nice gains in midday trading, up 1.6% at $3,138.40. The Index is working to recover from recent selling - on November 7 the index stood at $2,954. However, year-to-date the SPSIBI is holding on to gains of 38.1%.
Biotech stocks higher today include OncoGenex Pharma ( OGXI ) up 8% following yesterday's update on their Phase 3 SYNERGY trial which, the company notes, is continuing as planned. In addition, Teva Pharma ( TEVA ) up near 4% as it was upgraded to Positive from Neutral at Susquehanna research firm. Also, Avanir Pharma ( AVNR ) up near 4%, ACADIA Pharma ( ACAD ) up 2.9%, and XenoPort ( XNPT ) up 3.2%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, Avanir Pharma ( AVNR ) up near 4%, ACADIA Pharma ( ACAD ) up 2.9%, and XenoPort ( XNPT ) up 3.2%. The S&P Biotech Select Index was showing some nice gains in midday trading, up 1.6% at $3,138.40. Biotech stocks higher today include OncoGenex Pharma ( OGXI ) up 8% following yesterday's update on their Phase 3 SYNERGY trial which, the company notes, is continuing as planned. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Also, Avanir Pharma ( AVNR ) up near 4%, ACADIA Pharma ( ACAD ) up 2.9%, and XenoPort ( XNPT ) up 3.2%. In addition, Teva Pharma ( TEVA ) up near 4% as it was upgraded to Positive from Neutral at Susquehanna research firm. | Also, Avanir Pharma ( AVNR ) up near 4%, ACADIA Pharma ( ACAD ) up 2.9%, and XenoPort ( XNPT ) up 3.2%. The S&P Biotech Select Index was showing some nice gains in midday trading, up 1.6% at $3,138.40. The Index is working to recover from recent selling - on November 7 the index stood at $2,954. | Also, Avanir Pharma ( AVNR ) up near 4%, ACADIA Pharma ( ACAD ) up 2.9%, and XenoPort ( XNPT ) up 3.2%. The S&P Biotech Select Index was showing some nice gains in midday trading, up 1.6% at $3,138.40. Biotech stocks higher today include OncoGenex Pharma ( OGXI ) up 8% following yesterday's update on their Phase 3 SYNERGY trial which, the company notes, is continuing as planned. |
36303.0 | 2013-06-17 00:00:00 UTC | Bulls think Acadia will keep running | ACAD | https://www.nasdaq.com/articles/bulls-think-acadia-will-keep-running-2013-06-17 | nan | nan | A long-term investor apparently thinks that Acadia Pharmaceuticals may keep on running after a giant move.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 10,000 January 2015 20 calls for $4.90 and the sale of an equal number of January 2015 35 calls for $1.35. Volume was more than 13 times open interest at both strikes, indicating that new positions were initiated.
Known as a bullish call spread , the trade cost $3.55 and will control a move between the two strike prices. In the case of Friday's trade, it will expand to $15 if the stock closes at or above $35 on expiration 18 months from now. Based on the entry price, that would translate into profit of 323 percent. (See our Education section for more on how to generate leverage with options.)
ACAD rose 4.1 percent to $19.31 and is up more than 700 percent since releasing positive data about its Pimavanserin drug for Parkinson's disease on Nov. 25. More recently it's been climbing on enthusiasm surrounding a potential glaucoma treatment being developed with Allergan.
The stock is now back above its previous all-time peaks from 2006 and 2007. That could be leading some traders to believe that it will keep on running to new highs.
Total option volume was 6 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by a bullish 14-to-1 ratio.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A long-term investor apparently thinks that Acadia Pharmaceuticals may keep on running after a giant move. ACAD rose 4.1 percent to $19.31 and is up more than 700 percent since releasing positive data about its Pimavanserin drug for Parkinson's disease on Nov. 25. Known as a bullish call spread , the trade cost $3.55 and will control a move between the two strike prices. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. A long-term investor apparently thinks that Acadia Pharmaceuticals may keep on running after a giant move. ACAD rose 4.1 percent to $19.31 and is up more than 700 percent since releasing positive data about its Pimavanserin drug for Parkinson's disease on Nov. 25. | ACAD rose 4.1 percent to $19.31 and is up more than 700 percent since releasing positive data about its Pimavanserin drug for Parkinson's disease on Nov. 25. A long-term investor apparently thinks that Acadia Pharmaceuticals may keep on running after a giant move. optionMONSTER's Heat Seeker monitoring program detected the purchase of 10,000 January 2015 20 calls for $4.90 and the sale of an equal number of January 2015 35 calls for $1.35. | A long-term investor apparently thinks that Acadia Pharmaceuticals may keep on running after a giant move. ACAD rose 4.1 percent to $19.31 and is up more than 700 percent since releasing positive data about its Pimavanserin drug for Parkinson's disease on Nov. 25. Based on the entry price, that would translate into profit of 323 percent. |
36304.0 | 2013-06-06 00:00:00 UTC | An Insider Buys Shares of Mining Company Freeport-McMoRan While Graphic Packaging Sees a Sale | ACAD | https://www.nasdaq.com/articles/insider-buys-shares-mining-company-freeport-mcmoran-while-graphic-packaging-sees-sale-2013 | nan | nan | Welcome to our daily roundup of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Wednesday, June 5, 2013.
Notable Purchases :
James Flores, the Vice Chairman and Director of international mining company Freeport-McMoRan Copper & Gold ( FCX ), bought 1,100,000 of company stock for $32,290,840.
Felix Baker, a Director of biopharmaceutical company Acadia Pharmaceuticals Inc. ( ACAD ), bought 2,340,314 shares of company stock for $33,563,308.
George Karfunkel, a Director of multinational insurance company Amtrust Financial Services, Inc. ( AFSI ), bought 1,000,000 shares of company stock for $25,000,000.
Notable Sales:
TPG Group Holdings SBS Advisors sold 7,581,506 shares of Graphic Packaging Holding Company ( GPK ) for $58,605,040.
For more insider trades, please see the chart below:
Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes
An important note from Jonathan Moreland, founder of Insider Insights :
In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders."
Please note, however, that the lists above are strictly factual; they are not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.
At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.
Jonathan Moreland is also the author of " Profit From Legal Insider Trading."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Felix Baker, a Director of biopharmaceutical company Acadia Pharmaceuticals Inc. ( ACAD ), bought 2,340,314 shares of company stock for $33,563,308. For more insider trades, please see the chart below: Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." Here's a look at the most significant inside sales and purchases filed with the SEC on Wednesday, June 5, 2013. Notable Purchases : James Flores, the Vice Chairman and Director of international mining company Freeport-McMoRan Copper & Gold ( FCX ), bought 1,100,000 of company stock for $32,290,840. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Felix Baker, a Director of biopharmaceutical company Acadia Pharmaceuticals Inc. ( ACAD ), bought 2,340,314 shares of company stock for $33,563,308. For more insider trades, please see the chart below: Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." | For more insider trades, please see the chart below: Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." Felix Baker, a Director of biopharmaceutical company Acadia Pharmaceuticals Inc. ( ACAD ), bought 2,340,314 shares of company stock for $33,563,308. Here's a look at the most significant inside sales and purchases filed with the SEC on Wednesday, June 5, 2013. Notable Purchases : James Flores, the Vice Chairman and Director of international mining company Freeport-McMoRan Copper & Gold ( FCX ), bought 1,100,000 of company stock for $32,290,840. | For more insider trades, please see the chart below: Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." Felix Baker, a Director of biopharmaceutical company Acadia Pharmaceuticals Inc. ( ACAD ), bought 2,340,314 shares of company stock for $33,563,308. Here's a look at the most significant inside sales and purchases filed with the SEC on Wednesday, June 5, 2013. Notable Purchases : James Flores, the Vice Chairman and Director of international mining company Freeport-McMoRan Copper & Gold ( FCX ), bought 1,100,000 of company stock for $32,290,840. |
36305.0 | 2013-06-06 00:00:00 UTC | Market Wrap for Thursday, June 6: Stocks Reverse Mid-Day; Rally to Close at Session Highs | ACAD | https://www.nasdaq.com/articles/market-wrap-thursday-june-6-stocks-reverse-mid-day-rally-close-session-highs-2013-06-06 | nan | nan | The U.S. stock market surged on Thursday after an afternoon rally lifted the major averages out of negative territory.
Stocks closed near their best levels of the session, with the Dow adding around 80 points. Around mid-day, the market appeared to be in danger of adding to its recent losses, and a washout was not out of the question.
A sharply declining U.S. dollar, however, triggered risk appetite across asset classes. The rally will certainly be viewed as a positive development by investors who have been beaten up over the last 5 trading days amid a correction in share prices.
Major Averages
The Dow Jones Industrial Average climbed around 80 points, or 0.53 percent, to finish at 15,041.
The S&P 500 added almost 14 points, or 0.85 percent, to just above 1,622.
The Nasdaq rose almost 23 points, or 0.66 percent, to 3,424.
Jobless Claims
Initial jobless claims fell to 346,000 for the week ending June 1 from 357,000 for the week ending May 25. This compared to consensus estimates calling for initial claims to fall to 348,000.
Continuing claims declined to 2.952 million for the week ending May 25 compared to 3.004 million for the week ending May 18. The consensus expected continuing claims to fall to 2.980 million.
Commodities
Oil prices were higher on Thursday. At last check, NYMEX crude futures were trading up 1 percent to $94.69. Brent contracts had risen 0.47 percent to $103.52. Natural gas plunged almost 4 percent on the session and was last sitting at $3.85.
Gold continued to rise on the day. COMEX gold futures climbed around 1 percent to $1,412.80. Silver traded up around 0.55 percent to $22.60 near the close of trading. Copper futures were last down 1.39 percent on the session.
Corn and wheat were mixed on Thursday. Corn futures were last up better than 1 percent while wheat had shed 0.53 percent. Movers in soft commodities included cocoa, which added 2.38 percent and cotton, which was up 1.62 percent.
Bonds
Bond prices were largely unchanged on the day. Near the close of equities, the iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT ) was down 0.03 percent to $115.25.
The 2-Year Note yield was sitting at 0.29 percent while the 5-Year yield was 1.01 percent. The 10-Year Note yield was 2.07 percent and the 30-Year Bond was yielding 3.23 percent.
Currencies
Currency trading was very volatile on Thursday, with the U.S. dollar falling sharply. Near the close of equities, the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP ), which tracks the performance of the greenback versus a basket of foreign currencies, was down 1.32 percent to $22.12.
The closely watched EUR/USD pair jumped 1.16 percent to $1.3245. The British Pound also surged against the greenback with the GBP/USD rising 1.30 percent. The biggest mover on the session was the extremely volatile USD/JPY, which was last down more than 2 percent -- a huge move for a currency market.
Volatility and Volume
Volatility expectations fell on Thursday as the market rebounded from a string of losses. The VIX was last trading down around 5 percent to 16.60.
Volume remained elevated on the session as investors positioned themselves amid the recent correction. Around 183 million SPDR S&P 500 ETF (NYSE: SPY ) shares traded hands compared to a 3-month daily average of 127.5 million.
Stock Movers
Ciena (NASDAQ: CIEN ) soared around 17 percent late on Thursday after the company reported a narrower second-quarter loss.
JDS Uniphase (NASDAQ: JDSU ) climbed around 8 percent on the Ciena news and Finisar (NASDAQ: FNSR ) added a little less than 5 percent.
ACADIA Pharmaceuticals (NASDAQ: ACAD ) jumped more than 12 percent on the day after Baker Brothers Advisors, a very successful biotech-focused hedge fund, disclosed a 22.6 percent stake in the company.
Shares of Conn's (NASDAQ: CONN ) were trading up around 11 percent near the closing bell after the company reported its fiscal first-quarter earnings results.
Regeneron Pharmaceuticals (NASDAQ: REGN ) jumped a little less than 10 percent after the company said that its Eylea drug met its main goal in a new late-stage clinical trial.
Shares of VeriFone Systems (NYSE: PAY ) traded down 21 percent after the company's Q2 earnings results.
Ascena Retail Group (NASDAQ: ASNA ) fell almost 9 percent after the company's Q3 report.
Retailer Vera Bradley (NASDAQ: VRA ) lost 8 percent after the company's fiscal first-quarter profit fell 27 percent.
Francesca's Holdings (NASDAQ: FRAN ) lost 9 percent after missing Wall Street sales estimates for its first-quarter earnings results.
Chinese game developer Giant Interactive Group (NYSE: GA ) lost more than 7 percent after a secondary offering priced at a discount.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) jumped more than 12 percent on the day after Baker Brothers Advisors, a very successful biotech-focused hedge fund, disclosed a 22.6 percent stake in the company. Near the close of equities, the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP ), which tracks the performance of the greenback versus a basket of foreign currencies, was down 1.32 percent to $22.12. Stock Movers Ciena (NASDAQ: CIEN ) soared around 17 percent late on Thursday after the company reported a narrower second-quarter loss. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) jumped more than 12 percent on the day after Baker Brothers Advisors, a very successful biotech-focused hedge fund, disclosed a 22.6 percent stake in the company. Jobless Claims Initial jobless claims fell to 346,000 for the week ending June 1 from 357,000 for the week ending May 25. Continuing claims declined to 2.952 million for the week ending May 25 compared to 3.004 million for the week ending May 18. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) jumped more than 12 percent on the day after Baker Brothers Advisors, a very successful biotech-focused hedge fund, disclosed a 22.6 percent stake in the company. The 10-Year Note yield was 2.07 percent and the 30-Year Bond was yielding 3.23 percent. JDS Uniphase (NASDAQ: JDSU ) climbed around 8 percent on the Ciena news and Finisar (NASDAQ: FNSR ) added a little less than 5 percent. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) jumped more than 12 percent on the day after Baker Brothers Advisors, a very successful biotech-focused hedge fund, disclosed a 22.6 percent stake in the company. The rally will certainly be viewed as a positive development by investors who have been beaten up over the last 5 trading days amid a correction in share prices. Silver traded up around 0.55 percent to $22.60 near the close of trading. |
36306.0 | 2013-05-20 00:00:00 UTC | Biotech Companies See Insider Purchases: CEO Phillip Frost Increases Stake in OPKO and Felix Baker Buys ACADIA | ACAD | https://www.nasdaq.com/articles/biotech-companies-see-insider-purchases-ceo-phillip-frost-increases-stake-opko-and-felix | nan | nan | Welcome to our daily roundup of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Friday, May 17, 2013.
Purchases: Felix Baker, a Director of biopharmaceutical company ACADIA Pharmaceuticals Inc. ( ACAD ), bought 1,993,000 shares of company stock for $24,912,500. Baker also serves as a Director of biotechnology company Seattle Genetics ( SGEN ) and molecular diagnostics company Genomic Health ( GHDX ), of which he has bought 535,796 shares of in 2013, worth almost $20 million. He also serves as Chairman of the clinical-stage biopharmaceutical company Synageva BioPharma ( GEVA ). ACADIA focuses on small molecule drugs that are meant to address unmet needs, especially in neurological and central nervous system disorders. As of today, the company is becoming part of the NASDAQ Biotechnology Index (INDEXNASDAQ:NBI). On May 16, the company announced a public offering of 8 million shares of common stock for $12.50 per share; the offering is expected to close today, and the company is expecting proceeds of $100 million. The company's stock price has increased 185.38% year-to-date and 834.51% since this time last year.
The New York-based hedge fund Glenhill Advisors bought 342,350 shares of global software solutions company Lionbridge Technologies, Inc. ( LIOX ) for $881,205. Lionbridge providers its clients with language, content, and testing solutions that allow them to manage and optimize their technology applications and content in global markets. On May 8, the company announced Q1 2013 earnings with a GAAP net loss of $0.05 per share on revenue of $113.7 million, compared to a loss per share of $0.13 on revenue of $112.1 million in Q1 2012. The company's stock price has decreased 30.6% YTD and has decreased 7% since this time last year.
Phillip Frost, the Chairman and CEO of multi-national pharmaceutical and diagnostics company OPKO Health (OPK), bought 59,100 shares of company stock for $414,987. OPKO is developing an array of solutions for diagnosing, treating, and preventing various conditions, developing in particular molecular diagnostics tests, point-of-care tests, pharmaceuticals, and vaccines. Frost is a former professor of dermatology who got his start in big pharma when he took over Key Pharmaceuticals in 1972; he is also the Chairman of the Board of global pharmaceutical and drug company Teva Pharmaceutical Industries (TEVA). On April 24, OPKO announced that it would be acquiring the Israeli biopharma company PROLOR Biotech (NYSEMKT:PBTH). Since then, Frost has been buying shares of both companies (he is the majority shareholder of both) to prop up the deal, which is valued at $480 million and is expected to close in the second half of 2013. OPKO's stock price is up 48.86% YTD and up 59.47% since this time last year.
Robert Locascio, the Chairman and CEO of online engagement solutions company LivePerson (LPSN), bought 35,640 shares of company stock for $305,078. The company offers its clients a cloud-based platform that enables them to connect with consumers through chat, voice, and content delivery across websites, social media, and mobile devices. On May 8, the company reported Q1 2013 earnings per share of $0.06 on revenue of $38.9 million, missing consensus estimates of $0.07 per share and $42.54 million, respectively.
Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes
An important note from Jonathan Moreland, founder of Insider Insights :
In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders."
Please note, however, that the lists above are strictly factual; they are not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.
At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.
Jonathan Moreland is also the author of " Profit From Legal Insider Trading."
Follow me on Twitter: @JoshWolonick and @Minyanville
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACADIA focuses on small molecule drugs that are meant to address unmet needs, especially in neurological and central nervous system disorders. Purchases: Felix Baker, a Director of biopharmaceutical company ACADIA Pharmaceuticals Inc. ( ACAD ), bought 1,993,000 shares of company stock for $24,912,500. Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." | Purchases: Felix Baker, a Director of biopharmaceutical company ACADIA Pharmaceuticals Inc. ( ACAD ), bought 1,993,000 shares of company stock for $24,912,500. ACADIA focuses on small molecule drugs that are meant to address unmet needs, especially in neurological and central nervous system disorders. Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." | Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." Purchases: Felix Baker, a Director of biopharmaceutical company ACADIA Pharmaceuticals Inc. ( ACAD ), bought 1,993,000 shares of company stock for $24,912,500. ACADIA focuses on small molecule drugs that are meant to address unmet needs, especially in neurological and central nervous system disorders. | Purchases: Felix Baker, a Director of biopharmaceutical company ACADIA Pharmaceuticals Inc. ( ACAD ), bought 1,993,000 shares of company stock for $24,912,500. ACADIA focuses on small molecule drugs that are meant to address unmet needs, especially in neurological and central nervous system disorders. Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes An important note from Jonathan Moreland, founder of Insider Insights : In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders." |
36307.0 | 2013-05-20 00:00:00 UTC | Mid-Morning Market Update: Markets Fall, Yahoo To Acquire Tumblr | ACAD | https://www.nasdaq.com/articles/mid-morning-market-update-markets-fall-yahoo-acquire-tumblr-2013-05-20 | nan | nan | Following the market opening Monday, the Dow traded down 0.16 percent to 15,329.97, while the NASDAQ fell 0.05 percent to 3,497.34. The S&P was also down, dropping 0.15 percent to 1,664.99.
Top Headline Yahoo! (NASDAQ: YHOO ) announced its plans to acquire blogging network Tumblr for around $1.1 billion. Yahoo shares dropped 0.45% to $26.40 following the news.
Equities Trading UP Websense (NASDAQ: WBSN ) shot up, gaining 28.58 percent to $24.73, after the company entered into a definitive agreement to be bought by Vista Equity Partners.
Pactera Technology International (NASDAQ: PACT ) was also up 32.13 percent to $6.95, after the company announced receipt of going private proposal.
ACADIA Pharmaceuticals (NASDAQ: ACAD ) got a boost, shooting up 5.12 percent to $13.95 after the company's stock has been added to the NASDAQ Biotechnology Index.
Equities Trading DOWN Team (NYSE: TISI ) was down, falling 8.52 percent to $38.65, after the company cut its Q4 earnings forecast.
Raven Industries (NASDAQ: RAVN ) shares tumbled 7.03 percent to $32.01 on fiscal 2014 first-quarter results.
Ruby Tuesday (NYSE: RT ) was down 2.42 percent to $9.47 after Wells Fargo downgraded the stock from "outperform" to "market perform."
Commodities In commodity news, oil traded down 0.68 percent to $95.37, while gold dropped 1 percent to $1,351.10.
Silver traded down 3.77 percent Monday to $21.51, while copper fell 0.12 percent to $3.32.
Eurozone European shares were mixed today. The Spanish Ibex Index fell 1.48 percent and the Italian FTSE MIB Index dropped 1.22 percent. Meanwhile, the German DAX rose 0.17 percent and the French CAC 40 fell 0.15 percent while U.K. shares added 0.35 percent.
Economics The Chicago Fed's national activity index declined to negative 0.53 in April, versus negative 0.23 in March.
Chicago Fed President Charles Evans will speak along with a three and six month bill auction.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) got a boost, shooting up 5.12 percent to $13.95 after the company's stock has been added to the NASDAQ Biotechnology Index. Pactera Technology International (NASDAQ: PACT ) was also up 32.13 percent to $6.95, after the company announced receipt of going private proposal. Equities Trading DOWN Team (NYSE: TISI ) was down, falling 8.52 percent to $38.65, after the company cut its Q4 earnings forecast. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) got a boost, shooting up 5.12 percent to $13.95 after the company's stock has been added to the NASDAQ Biotechnology Index. Meanwhile, the German DAX rose 0.17 percent and the French CAC 40 fell 0.15 percent while U.K. shares added 0.35 percent. Click here to start your 14 Day Trial of Benzinga Professional The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) got a boost, shooting up 5.12 percent to $13.95 after the company's stock has been added to the NASDAQ Biotechnology Index. Following the market opening Monday, the Dow traded down 0.16 percent to 15,329.97, while the NASDAQ fell 0.05 percent to 3,497.34. The Spanish Ibex Index fell 1.48 percent and the Italian FTSE MIB Index dropped 1.22 percent. | ACADIA Pharmaceuticals (NASDAQ: ACAD ) got a boost, shooting up 5.12 percent to $13.95 after the company's stock has been added to the NASDAQ Biotechnology Index. Yahoo shares dropped 0.45% to $26.40 following the news. The Spanish Ibex Index fell 1.48 percent and the Italian FTSE MIB Index dropped 1.22 percent. |
36308.0 | 2013-05-15 00:00:00 UTC | Pre-Market Most Active for May 15, 2013 : AINV, BAC, SPWR, SIRI, CVRR, BBRY, NOK, AMTD, SNE, RH, ACAD, TSLA | ACAD | https://www.nasdaq.com/articles/pre-market-most-active-may-15-2013-ainv-bac-spwr-siri-cvrr-bbry-nok-amtd-sne-rh-acad-tsla | nan | nan | The NASDAQ 100 Pre-Market Indicator is up .9 to 2,996.95. The total Pre-Market volume is currently 3,978,485 shares traded.
The following are the most active stocks for the pre-market session :
Apollo Investment Corporation ( AINV ) is -0.34 at $8.53, with 1,066,120 shares traded. AINV's current last sale is 100.35% of the target price of $8.5.
Bank of America Corporation ( BAC ) is -0.02 at $13.32, with 822,321 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2013. The consensus EPS forecast is $0.23. , following a 52-week high recorded in prior regular session.
SunPower Corporation ( SPWR ) is +1.26 at $20.29, with 490,070 shares traded. SPWR's current last sale is 178.77% of the target price of $11.35.
Sirius XM Radio Inc. ( SIRI ) is +0.02 at $3.47, with 477,140 shares traded., following a 52-week high recorded in prior regular session.
CVR Refining, LP ( CVRR ) is -0.16 at $30.59, with 463,282 shares traded. As reported by Zacks, the current mean recommendation for CVRR is in the "buy range".
Research In Motion Limited ( BBRY ) is -0.3 at $14.95, with 444,511 shares traded. BBRY's current last sale is 135.91% of the target price of $11.
Nokia Corporation ( NOK ) is +0.05 at $3.69, with 440,510 shares traded. NOK's current last sale is 123% of the target price of $3.
TD Ameritrade Holding Corporation ( AMTD ) is -0.55 at $22.19, with 346,700 shares traded., following a 52-week high recorded in prior regular session.
Sony Corp Ord ( SNE ) is -0.34 at $20.42, with 343,830 shares traded., following a 52-week high recorded in prior regular session.
Restoration Hardware Holdings Inc. ( RH ) is -1.3 at $51.15, with 256,932 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2013. The consensus EPS forecast is $0.15. As reported in the last short interest update the days to cover for RH is 9.206331; this calculation is based on the average trading volume of the stock.
ACADIA Pharmaceuticals Inc. ( ACAD ) is +0.24 at $13.19, with 185,595 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range".
Tesla Motors, Inc. ( TSLA ) is +0.51 at $83.75, with 131,251 shares traded. As reported in the last short interest update the days to cover for TSLA is 7.964317; this calculation is based on the average trading volume of the stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACADIA Pharmaceuticals Inc. ( ACAD ) is +0.24 at $13.19, with 185,595 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". TD Ameritrade Holding Corporation ( AMTD ) is -0.55 at $22.19, with 346,700 shares traded., following a 52-week high recorded in prior regular session. | ACADIA Pharmaceuticals Inc. ( ACAD ) is +0.24 at $13.19, with 185,595 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". The total Pre-Market volume is currently 3,978,485 shares traded. | ACADIA Pharmaceuticals Inc. ( ACAD ) is +0.24 at $13.19, with 185,595 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". The following are the most active stocks for the pre-market session : Apollo Investment Corporation ( AINV ) is -0.34 at $8.53, with 1,066,120 shares traded. | ACADIA Pharmaceuticals Inc. ( ACAD ) is +0.24 at $13.19, with 185,595 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". The following are the most active stocks for the pre-market session : Apollo Investment Corporation ( AINV ) is -0.34 at $8.53, with 1,066,120 shares traded. |
36309.0 | 2013-05-07 00:00:00 UTC | Benzinga Market Primer: Tuesday, May 7 | ACAD | https://www.nasdaq.com/articles/benzinga-market-primer-tuesday-may-7-2013-05-07 | nan | nan | Futures Flat Following RBA Rate Cut, European Bank Earnings
U.S. equity futures traded near flat following a surprise rate cut from the Reserve Bank of Australia while earnings from three of Europe's largest banks reported better than expected earnings. However, futures awaited key earnings from the U.S. pre-market for direction.
Top News
In other news around the markets:
The Reserve Bank of Australia cut its key rate to 2.75 percent from 3.00 percent, citing below trend growth in 2013, peaking resource sector investment, and inflation lower than expected. The Board noted that the exchange rate of the Australian dollar has remained high despite worsening economic conditions and that the Board decided to use some of its "scope" it mentioned at the previous meeting to cut rates should the data demand a cut. HSBC (NYSE: HBC ), Societe Generale, and Credit Agricole, three of Europe's largest banks, all reported earnings overnight that beat expectations and boosted European markets. Diageo (NYSE: DEO ) CEO Paul Walsh has stepped down and will be succeeded by COO Ivan Menezes in a move that was expected by markets, although will still come as a blow to shareholders as Walsh was responsible for spearheading the new growth strategy of the company over the past decade. S&P 500 futures rose 0.9 points to 1,614.30. The EUR/USD was flat at 1.3077. Spanish 10-year government bond yields fell 4 basis points to 4.07 percent. Italian 10-year government bond yields fell 4 basis points to 3.88 percent. Gold fell 0.48 percent to $1,461.00 per ounce.
Asian Markets
Asian shares were mostly tepid save for the Japanese Nikkei Index which opened for the first time following key events including the European Central Bank rate cut and the stronger than expected U.S. Non-Farm Payrolls Report. The Japanese Nikkei Index rose 3.55 percent while the Shanghai Composite Index gained 0.2 percent and the Hang Seng Index rose 0.58 percent. Also, the Korean Kospi fell 0.36 percent and Australian shares fell 0.24 percent.
European Markets
European shares rose following the stronger than expected bank earnings from around the continent. The Spanish Ibex Index rose 0.61 percent and the Italian FTSE MIB Index rose 1.08 percent. Meanwhile, the German DAX gained 0.53 percent and the French CAC 40 rose 0.33 percent while U.K. shares added 0.27 percent.
Commodities
Commodities were mostly lower overnight, reversing the previous few days of gains. WTI Crude futures fell 0.48 percent to $95.70 per barrel and Brent Crude futures declined 0.44 percent to $105.00 per barrel. Copper futures rose 0.14 percent to $331.50 per pound. Gold was lower and silver futures declined 0.79 percent to $23.77 per ounce.
Currencies
Currency markets were rather quiet overnight save for the Australian dollar which plummeted following the unexpected RBA rate cut. The EUR/USD was flat at 1.3077 and the dollar fell against the yen to 99.21. Overall, the Dollar Index was flat on strength against the Swiss franc and weakness against the yen. Notably, the Australian dollar declined 0.84 percent against the greenback to 1.0168 while it lost 1.03 percent against the yen to 100.8010.
Earnings Reported Yesterday
Key companies that reported earnings Monday include:
First Solar (NASDAQ: FSLR ) reported first quarter EPS of $0.69 vs. $0.75 expected on revenue of $755.0 million vs. $752.26 million expected. Norwegian Cruise Line Holdings (NASDAQ: NCLH ) reported first quarter EPS of $0.06 vs. $0.03 on revenue of $527.6 million vs. $523.8 million. Scotts Miracle Grow (NYSE: SMG ) reported second quarter EPS of $1.60 vs. $2.00. Medallion Financial Corp. (NASDAQ: TAXI ) reported first quarter EPS of $0.30 vs. $0.27. Vornado Realty Trust (NYSE: VNO ) reported first quarter EPS of $1.14 vs. $1.89.
Pre-Market Movers
Stocks moving in the pre-market included:
Diageo (NYSE: DEO ) shares fell 0.14 percent pre-market following the management shake up. HSBC (NYSE: HBC ) shares rose 2.19 percent pre-market following its earnings beat this morning. Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shares rose 1.36 percent following its earnings beat last Friday and comments from CEO Warren Buffett that spoke to the strength of the company. Cliff's Natural Resources (NYSE: CLF ) shares rose 3.28 percent pre-market after gaining 5.52 percent Monday after an upgrade to outperform at FBR Capital.
Earnings
Notable companies expected to report earnings Tuesday include:
Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a first quarter loss of $0.08 per share vs. a loss of $0.12 per share a year ago. BMC Software (NASDAQ: BMC ) is expected to report first quarter EPS of $0.93 vs. $0.74 a day after the company signed a definitive pact to go private to a consortium of financial buyers. Discovery Communications A (NASDAQ: DISCA ) is expected to report first quarter EPS of $0.68 vs. $0.57 a year ago. DirecTV (NASDAQ: DTV ) is expected to report first quarter EPS of $1.08 vs. $1.07 a year ago. Molson Coors Brewing Co. (NYSE: TAP ) is expected to report first quarter EPS of $0.34 vs. $0.47 a year ago. TripAdvisor (NASDAQ: TRIP ) is expected to report first quarter EPS of $0.46 vs. $0.38 a year ago.
Economics
On the economics calendar Tuesday, weekly chain store sales and the Redbook are due out followed by consumer credit data. Also, the Treasury is set to auction 4-week and 3-year notes. Overnight, the Chinese Trade Balance and German Industrial Production Data are expected.
Good luck and good trading.
Click here to view the Market Wrap for Monday, May 6.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a first quarter loss of $0.08 per share vs. a loss of $0.12 per share a year ago. HSBC (NYSE: HBC ), Societe Generale, and Credit Agricole, three of Europe's largest banks, all reported earnings overnight that beat expectations and boosted European markets. HSBC (NYSE: HBC ) shares rose 2.19 percent pre-market following its earnings beat this morning. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a first quarter loss of $0.08 per share vs. a loss of $0.12 per share a year ago. Futures Flat Following RBA Rate Cut, European Bank Earnings U.S. equity futures traded near flat following a surprise rate cut from the Reserve Bank of Australia while earnings from three of Europe's largest banks reported better than expected earnings. Earnings Reported Yesterday Key companies that reported earnings Monday include: First Solar (NASDAQ: FSLR ) reported first quarter EPS of $0.69 vs. $0.75 expected on revenue of $755.0 million vs. $752.26 million expected. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a first quarter loss of $0.08 per share vs. a loss of $0.12 per share a year ago. Futures Flat Following RBA Rate Cut, European Bank Earnings U.S. equity futures traded near flat following a surprise rate cut from the Reserve Bank of Australia while earnings from three of Europe's largest banks reported better than expected earnings. Earnings Reported Yesterday Key companies that reported earnings Monday include: First Solar (NASDAQ: FSLR ) reported first quarter EPS of $0.69 vs. $0.75 expected on revenue of $755.0 million vs. $752.26 million expected. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a first quarter loss of $0.08 per share vs. a loss of $0.12 per share a year ago. Futures Flat Following RBA Rate Cut, European Bank Earnings U.S. equity futures traded near flat following a surprise rate cut from the Reserve Bank of Australia while earnings from three of Europe's largest banks reported better than expected earnings. Earnings Reported Yesterday Key companies that reported earnings Monday include: First Solar (NASDAQ: FSLR ) reported first quarter EPS of $0.69 vs. $0.75 expected on revenue of $755.0 million vs. $752.26 million expected. |
36310.0 | 2013-04-18 00:00:00 UTC | What's behind call activity in Acadia | ACAD | https://www.nasdaq.com/articles/whats-behind-call-activity-acadia-2013-04-18 | nan | nan | Acadia Pharmaceuticals has been explosive, and one investor is using options to smooth the ride.
Our Heat Seeker monitoring program detected the purchase of 30,000 January 2015 12 calls for $4.04 and the sale of an equal number of January 2015 15 calls for $2.64. Volume was below open interest in the 12s, so there are two possible explanations of the activity.
One is that he or she owns shares and had previously sold the 12s as part of a covered call strategy. He or she may have then closed that position and rolled it to the higher strike, in the process raising their eventual sale price by $3.
Alternatively, both halves of the trade may have been opened, in which case it was a bullish call sprea d with a maximum potential profit of 114 percent on a move to $15. Either way, they paid $1.40 and see shares pushing above $12 and toward $15 over the long-term. (See our Education section.)
ACAD is down 1.95 percent to $12.08 in midday trading. The pharmaceutical company is up more than 700 percent in the last year amid strong results for its Pimavanserin Parkinson's drug.
Total option volume is 7 times greater than average in the stock so far today, according to the Heat Seeker. Calls outnumber puts by more than 300 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acadia Pharmaceuticals has been explosive, and one investor is using options to smooth the ride. ACAD is down 1.95 percent to $12.08 in midday trading. He or she may have then closed that position and rolled it to the higher strike, in the process raising their eventual sale price by $3. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Acadia Pharmaceuticals has been explosive, and one investor is using options to smooth the ride. ACAD is down 1.95 percent to $12.08 in midday trading. | Acadia Pharmaceuticals has been explosive, and one investor is using options to smooth the ride. ACAD is down 1.95 percent to $12.08 in midday trading. Our Heat Seeker monitoring program detected the purchase of 30,000 January 2015 12 calls for $4.04 and the sale of an equal number of January 2015 15 calls for $2.64. | Acadia Pharmaceuticals has been explosive, and one investor is using options to smooth the ride. ACAD is down 1.95 percent to $12.08 in midday trading. Our Heat Seeker monitoring program detected the purchase of 30,000 January 2015 12 calls for $4.04 and the sale of an equal number of January 2015 15 calls for $2.64. |
36311.0 | 2013-04-12 00:00:00 UTC | Mid-Morning Market Update: Markets Plummet on Bad Data, Rite Aid Continues to Rally | ACAD | https://www.nasdaq.com/articles/mid-morning-market-update-markets-plummet-bad-data-rite-aid-continues-rally-2013-04-12 | nan | nan | Following the market opening Friday, the Dow traded down 0.21 percent to 14,833.98 while the NASDAQ fell 0.40 percent to 3,287.44. The S&P also fell, decreasing 0.47 percent to 1,585.51.
Top Headline Two of the big banks, Wells Fargo (NYSE: WFC ) and J.P. Morgan (NYSE: JPM ) released earnings this morning, both missing on the top line and beating on the bottom line.
The performance lead many traders to question how this earnings season will pan out, with two of the top banks seemingly unable to expand revenues, and helped send markets lower this morning.
Equities Trading UP Rite Aid (NYSE: RAD ) continued its march upwards this morning, gaining 5.66 percent to $2.24 after the company raised guidance and crushed on earnings Thursday morning.
Shares of Walter Energy (NYSE: WLT ) were also up, gaining 2.82 percent to $24.80 after the company reported an increase in metallurgical coal production Thursday after the close.
Ashland (NYSE: ASH ) was up as well, gaining 7.56 percent to $84.79, riding a wave of gains in the coal sector.
Equities Trading DOWN ACADIA Pharma (NASDAQ: ACAD ) traded down 2.44 percent to $12.78 as traders looked to take profits following its incredible rally Thursday.
NovaGold Resources (NYSE: NG ) was also down, falling 4.98 percent to $2.86 as gold and other precious metals got hammered this morning.
Shares of MannKind (NASDAQ: MNKD ) were down as well, dropping 7.90 percent to $3.95 after a Seeking Alpha article stated that one of its primary drugs was likely to fail.
Commodities In commodity news, oil traded down 2.30 percent to $91.36, while gold traded down 1.98 percent to $1,533.50.
Silver traded down 2.68 percent Thursday to $26.91, while copper fell 1.54 percent to $3.38.
Eurozone European markets fell this morning on reiterated fears over Cyprus and a weak industrial production report.
The fall was lead by the Italian FTSE MIB index, which was down 1.6 percent while the French CAC lost 1.08 percent.
Economics In economic news for Friday, retail sales came in down at -0.4 percent, below the projected 0.0 percent and the prior release of 1.10 percent.
Retail sales ex autos and gas came in at -0.10 percent, missing expectations of 0.30 percent and the prior figure of 0.40 percent.
PPI year over year was also released, coming in at 1.10 percent, missing the anticipated 1.40 percent and the prior release of 1.70 percent, while Core PPI year over year came in at 1.70 percent, inline with expectations.
The University of Michigan consumer sentiment was also out, coming in at 72.30, much lower than the expected 78.60 and the prior release of 78.60.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Equities Trading DOWN ACADIA Pharma (NASDAQ: ACAD ) traded down 2.44 percent to $12.78 as traders looked to take profits following its incredible rally Thursday. The performance lead many traders to question how this earnings season will pan out, with two of the top banks seemingly unable to expand revenues, and helped send markets lower this morning. Shares of Walter Energy (NYSE: WLT ) were also up, gaining 2.82 percent to $24.80 after the company reported an increase in metallurgical coal production Thursday after the close. | Equities Trading DOWN ACADIA Pharma (NASDAQ: ACAD ) traded down 2.44 percent to $12.78 as traders looked to take profits following its incredible rally Thursday. Commodities In commodity news, oil traded down 2.30 percent to $91.36, while gold traded down 1.98 percent to $1,533.50. Economics In economic news for Friday, retail sales came in down at -0.4 percent, below the projected 0.0 percent and the prior release of 1.10 percent. | Equities Trading DOWN ACADIA Pharma (NASDAQ: ACAD ) traded down 2.44 percent to $12.78 as traders looked to take profits following its incredible rally Thursday. Economics In economic news for Friday, retail sales came in down at -0.4 percent, below the projected 0.0 percent and the prior release of 1.10 percent. Retail sales ex autos and gas came in at -0.10 percent, missing expectations of 0.30 percent and the prior figure of 0.40 percent. | Equities Trading DOWN ACADIA Pharma (NASDAQ: ACAD ) traded down 2.44 percent to $12.78 as traders looked to take profits following its incredible rally Thursday. Following the market opening Friday, the Dow traded down 0.21 percent to 14,833.98 while the NASDAQ fell 0.40 percent to 3,287.44. Equities Trading UP Rite Aid (NYSE: RAD ) continued its march upwards this morning, gaining 5.66 percent to $2.24 after the company raised guidance and crushed on earnings Thursday morning. |
36312.0 | 2013-04-11 00:00:00 UTC | Mid-Morning Market Update: Markets Continue to March Upwards, PC Makers Get Blasted | ACAD | https://www.nasdaq.com/articles/mid-morning-market-update-markets-continue-march-upwards-pc-makers-get-blasted-2013-04-11 | nan | nan | Following the market opening Thursday, the Dow traded up 0.19 percent to 14,830.98 while the NASDAQ fell 0.04 percent to 3,295.44. The S&P also rose, increasing 0.17 percent to 1,590.51.
Index Technicals: The S&P 500 looks to be hitting new resistance at 1,590 with 1,575 acting as resistance below that.
The Dow looks to have new resistance at 14,825, with 14,685 becoming support.
The Russell is set to take out its 940 resistance with 960 acting as resistance above that.
Finally, the NASDAQ looks to be breaking out through 3,270 resistance, finding new resistance at 3,300.
Top Headline An IDC report came out yesterday reporting global PC shipments, saying they were down over 14 percent, the largest decrease ever reported. The release also highlighted a decrease of 10.9 percent in shipments from Dell (NASDAQ: DELL ).
The news has caused companies like Microsoft (NASDAQ: MSFT ) and Hewlett Packard (NYSE: HP ) to take a hit, and sent ripples through the PC manufacturers and suppliers.
Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 46.54 percent to $11.68 after the company announced it had received an expedited FDA review path for its lead drug
Shares of Rite Aid (NYSE: RAD ) shot up 16.49 percent to $2.09 after the company crushed expectations on the bottom line in its earnings release this morning.
Boyd Gaming (NYSE: BYD ) was also up, gaining 12.80 percent to $9.25 after Morgan Stanley upgraded the stock to an Overweight rating this morning.
Equities Trading DOWN Fortinet (NASDAQ: FTNT ) plummeted at the market opening, falling 17.67 to $17.99 after taking a series of analyst downgrades this morning.
Hewlett-Packard (NYSE: HPQ ) was also down, falling 5.50 percent to $21.09 after the PC sales data was released to the public.
Shares of Advanced Micro Devices (NYSE: AMD ) took a hit as well, falling 2.75 percent to $2.54 on the poor PC report.
Commodities In commodity news, oil traded down 0.67 percent to $94.01, while gold traded down 0.53 percent to $1,567.50.
Silver traded up 0.71 percent Thursday to $27.83, while copper fell 0.07 percent to $3.40.
Eurozone European markets were higher this morning as it was reported that Cyprus had signed its memorandum of understanding with the Troika, opening the door to its much needed bailout funds.
Following the news, the French CAC rose 0.60 percent, while the German DAX was close behind, gaining 0.55 percent.
Economics In economic news this morning, initial jobless claims came in at 346K, above the expected 340K, but below the prior release of 385K, while continuing jobless claims came in at 3.08 million, above the expected 3.07 million and the previous result of 3.06 million.
The import price index came in down -0.50 percent, equal to the prior figure.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 46.54 percent to $11.68 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 16.49 percent to $2.09 after the company crushed expectations on the bottom line in its earnings release this morning. The news has caused companies like Microsoft (NASDAQ: MSFT ) and Hewlett Packard (NYSE: HP ) to take a hit, and sent ripples through the PC manufacturers and suppliers. Equities Trading DOWN Fortinet (NASDAQ: FTNT ) plummeted at the market opening, falling 17.67 to $17.99 after taking a series of analyst downgrades this morning. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 46.54 percent to $11.68 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 16.49 percent to $2.09 after the company crushed expectations on the bottom line in its earnings release this morning. Following the market opening Thursday, the Dow traded up 0.19 percent to 14,830.98 while the NASDAQ fell 0.04 percent to 3,295.44. Economics In economic news this morning, initial jobless claims came in at 346K, above the expected 340K, but below the prior release of 385K, while continuing jobless claims came in at 3.08 million, above the expected 3.07 million and the previous result of 3.06 million. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 46.54 percent to $11.68 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 16.49 percent to $2.09 after the company crushed expectations on the bottom line in its earnings release this morning. Following the market opening Thursday, the Dow traded up 0.19 percent to 14,830.98 while the NASDAQ fell 0.04 percent to 3,295.44. Commodities In commodity news, oil traded down 0.67 percent to $94.01, while gold traded down 0.53 percent to $1,567.50. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 46.54 percent to $11.68 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 16.49 percent to $2.09 after the company crushed expectations on the bottom line in its earnings release this morning. Following the market opening Thursday, the Dow traded up 0.19 percent to 14,830.98 while the NASDAQ fell 0.04 percent to 3,295.44. Index Technicals: The S&P 500 looks to be hitting new resistance at 1,590 with 1,575 acting as resistance below that. |
36313.0 | 2013-04-11 00:00:00 UTC | Pre-Market Most Active for Apr 11, 2013 : PCS, RAD, SGYP, INFI, MSFT, ACAD, RLGY, QQQ, FTNT, NOK, BAC, HPQ | ACAD | https://www.nasdaq.com/articles/pre-market-most-active-apr-11-2013-pcs-rad-sgyp-infi-msft-acad-rlgy-qqq-ftnt-nok-bac-hpq | nan | nan | The NASDAQ 100 Pre-Market Indicator is down -10.22 to 2,848.99. The total Pre-Market volume is currently 12,832,717 shares traded.
The following are the most active stocks for the pre-market session :
MetroPCS Communications, Inc. ( PCS ) is -0.26 at $11.30, with 4,912,218 shares traded. PCS's current last sale is 102.73% of the target price of $11.
Rite Aid Corporation ( RAD ) is +0.24 at $2.03, with 3,471,320 shares traded. RTT News Reports: Rite Aid Turns To Profit In Q4, Despite Lower Sales; Shares Up
Synergy Pharmaceuticals, Inc. ( SGYP ) is -0.5 at $5.51, with 1,397,298 shares traded. As reported in the last short interest update the days to cover for SGYP is 20.346285; this calculation is based on the average trading volume of the stock.
Infinity Pharmaceuticals, Inc. ( INFI ) is -0.966 at $41.51, with 1,355,899 shares traded. As reported by Zacks, the current mean recommendation for INFI is in the "buy range".
Microsoft Corporation ( MSFT ) is -1.01 at $29.27, with 1,328,286 shares traded.MSFT is scheduled to provide an earnings report on 4/18/2013, for the fiscal quarter ending Mar2013. The consensus earnings per share forecast is 0.75 per share, which represents a 60 percent increase over the EPS one Year Ago
ACADIA Pharmaceuticals Inc. ( ACAD ) is +3.39 at $11.36, with 1,294,828 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range".
Realogy Holdings Corp. ( RLGY ) is +0.03 at $44.30, with 1,068,442 shares traded. As reported by Zacks, the current mean recommendation for RLGY is in the "buy range".
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.145 at $69.87, with 563,877 shares traded. This represents a 16.37% increase from its 52 Week Low.
Fortinet, Inc. ( FTNT ) is -3.77 at $18.08, with 492,126 shares traded. As reported by Zacks, the current mean recommendation for FTNT is in the "buy range".
Nokia Corporation ( NOK ) is +0.01 at $3.53, with 471,181 shares traded.NOK is scheduled to provide an earnings report on 4/18/2013, for the fiscal quarter ending Mar2013. The consensus earnings per share forecast is -0.06 per share, which represents a -11 percent increase over the EPS one Year Ago
Bank of America Corporation ( BAC ) is unchanged at $12.32, with 380,050 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2013. The consensus EPS forecast is $0.23. BAC is scheduled to provide an earnings report on 4/17/2013, for the fiscal quarter ending Mar2013. The consensus earnings per share forecast is 0.23 per share, which represents a 31 percent increase over the EPS one Year Ago
Hewlett-Packard Company ( HPQ ) is -1.31 at $21.01, with 368,128 shares traded. HPQ's current last sale is 110.58% of the target price of $19.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The consensus earnings per share forecast is 0.75 per share, which represents a 60 percent increase over the EPS one Year Ago ACADIA Pharmaceuticals Inc. ( ACAD ) is +3.39 at $11.36, with 1,294,828 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". As reported in the last short interest update the days to cover for SGYP is 20.346285; this calculation is based on the average trading volume of the stock. | The consensus earnings per share forecast is 0.75 per share, which represents a 60 percent increase over the EPS one Year Ago ACADIA Pharmaceuticals Inc. ( ACAD ) is +3.39 at $11.36, with 1,294,828 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". The consensus earnings per share forecast is -0.06 per share, which represents a -11 percent increase over the EPS one Year Ago Bank of America Corporation ( BAC ) is unchanged at $12.32, with 380,050 shares traded. | The consensus earnings per share forecast is 0.75 per share, which represents a 60 percent increase over the EPS one Year Ago ACADIA Pharmaceuticals Inc. ( ACAD ) is +3.39 at $11.36, with 1,294,828 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". The consensus earnings per share forecast is -0.06 per share, which represents a -11 percent increase over the EPS one Year Ago Bank of America Corporation ( BAC ) is unchanged at $12.32, with 380,050 shares traded. | The consensus earnings per share forecast is 0.75 per share, which represents a 60 percent increase over the EPS one Year Ago ACADIA Pharmaceuticals Inc. ( ACAD ) is +3.39 at $11.36, with 1,294,828 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -10.22 to 2,848.99. |
36314.0 | 2013-04-11 00:00:00 UTC | Market Wrap for Thursday, April 11: Stock Market Rally Continues | ACAD | https://www.nasdaq.com/articles/market-wrap-thursday-april-11-stock-market-rally-continues-2013-04-11 | nan | nan | Momentum seems to be driving the stock market higher at this point as the major averages climbed for the fourth straight day and the Dow and S&P 500 hit new all-time highs on Thursday.
Initial claims data came in better than expected for the week ending April 6, which also contributed to investor enthusiasm.
Overall, it has been a very strong week for the market ahead of a busy schedule of earnings reports due out next week.
Major Averages
The Dow Jones Industrial Average rose 63 points, or 0.42 percent, to 14,865.
The S&P 500 rose a little less than 6 points, or 0.36 percent, to close at 1,593.
The Nasdaq Composite rose around 3 points, or 0.09 percent, to 3,300.
Jobless Claims
Initial claims fell to 346,000 for the week ending April 6, compared to an upwardly revised 388,000 for the week ending March 30. This was substantially better than consensus estimates which expected initial claims to decline to 365,000.
Continuing claims fell from an upwardly revised 3.091 million for the week ending March 23 to 3.079 million for the week ending March 30. This was still above consensus estimates which expected continuing claims to fall to 3.058 million.
Commodities
Crude oil prices fell on Thursday. Near the close of equities, NYMEX crude futures, the U.S. benchmark, were trading down 1.49 percent to $93.32. Brent crude futures had lost 1.55 percent to $104.18. Natural gas, however, rallied 1.59 percent and was last trading at $4.15.
Precious metals prices were mixed around the unchanged mark on Thursday. At last check, COMEX gold futures were up 0.17 percent to $1,563.50 while silver futures had lost 0.05 percent and were trading at $27.67. Copper was last up around 0.35 percent.
Grains were mostly higher on the day, although corn and wheat traded near the flat line. Approaching the closing bell for equities, corn futures were up 0.16 percent while wheat had added 0.04 percent. Movers in soft commodities included orange juice concentrate contracts, which lost 2.36 percent.
Bonds
Bond prices moved slightly higher on the day. Near the close, the iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT ) was up 0.18 percent to $120.12.
The yield on the 2-Year Note was unchanged at 0.23 percent while the yield on the 5-Year Note fell one basis point to 0.73 percent. The 10-Year Note yield lost one basis point to 1.79 percent while the 30-Year Bond yield was unchanged at 3.00 percent.
Currencies
The U.S. dollar moved lower on Thursday. The PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP ), which tracks the performance of the greenback versus a basket of foreign currencies, lost 0.31 percent and was last trading at $22.36.
The closely watched EUR/USD pair was last up 0.41 percent to $1.3112. Other currency movers included the USD/CAD which fell 0.39 percent, and the GBP/USD, which rose 0.49 percent.
Volatility and Volume
Despite higher prices for stocks on Thursday, the VIX rose slightly. The widely watched barometer of market fear rose a little better than 1 percent to 12.50.
Volume was lighter than normal once again with around 93 million SPDR S&P 500 ETF (NYSE: SPY ) shares trading hands compared to a 3-month daily average of 124 million.
Stock Movers
Heading into the closing bell, shares of Acadia Pharmaceuticals (NASDAQ: ACAD ) were up more than 66 percent after the FDA decided that data from a late-stage study, along with supportive data from other studies, are sufficient to support the filing of a new drug application for its pimavanserin drug for the treatment of Parkinson's disease psychosis.
Microsoft (NASDAQ: MSFT ) was last down around 5 percent on Thursday after the stock was downgraded by analysts at Goldman Sachs.
Fortinet (NASDAQ: FTNT ) had lost around 13 percent near the close of trading after the networking company cut its first-quarter revenue and earnings guidance.
Rite Aid (NYSE: RAD ) surged almost 19 percent after the company reported its first profit since 2007 in the fourth-quarter.
Hewlett-Packard (NYSE: HPQ ) was last trading down around 7 percent on the session after a report from IDC said that world-wide shipments of laptops and desktops fell 14 percent in the first quarter. According to IDC, it was the sharpest drop since the firm began tracking the data in 1994.
Apogee Enterprises (NASDAQ: APOG ) lost around 11 percent on the day after the company reported fourth-quarter results which were below Wall Street expectations.
Boyd Gaming (NYSE: BYD ) surged around 9 percent after Morgan Stanley upgraded the stock to "Overweight," citing the company's exposure to online gambling.
Sinclair Broadcasting Group (NASDAQ: SBGI ) shares were trading up better than 8 percent near the close after the company announced the acquisition of Fisher Communications (NASDAQ: FSCI ) for around $373 million.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stock Movers Heading into the closing bell, shares of Acadia Pharmaceuticals (NASDAQ: ACAD ) were up more than 66 percent after the FDA decided that data from a late-stage study, along with supportive data from other studies, are sufficient to support the filing of a new drug application for its pimavanserin drug for the treatment of Parkinson's disease psychosis. Momentum seems to be driving the stock market higher at this point as the major averages climbed for the fourth straight day and the Dow and S&P 500 hit new all-time highs on Thursday. The PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP ), which tracks the performance of the greenback versus a basket of foreign currencies, lost 0.31 percent and was last trading at $22.36. | Stock Movers Heading into the closing bell, shares of Acadia Pharmaceuticals (NASDAQ: ACAD ) were up more than 66 percent after the FDA decided that data from a late-stage study, along with supportive data from other studies, are sufficient to support the filing of a new drug application for its pimavanserin drug for the treatment of Parkinson's disease psychosis. Jobless Claims Initial claims fell to 346,000 for the week ending April 6, compared to an upwardly revised 388,000 for the week ending March 30. Continuing claims fell from an upwardly revised 3.091 million for the week ending March 23 to 3.079 million for the week ending March 30. | Stock Movers Heading into the closing bell, shares of Acadia Pharmaceuticals (NASDAQ: ACAD ) were up more than 66 percent after the FDA decided that data from a late-stage study, along with supportive data from other studies, are sufficient to support the filing of a new drug application for its pimavanserin drug for the treatment of Parkinson's disease psychosis. The yield on the 2-Year Note was unchanged at 0.23 percent while the yield on the 5-Year Note fell one basis point to 0.73 percent. The 10-Year Note yield lost one basis point to 1.79 percent while the 30-Year Bond yield was unchanged at 3.00 percent. | Stock Movers Heading into the closing bell, shares of Acadia Pharmaceuticals (NASDAQ: ACAD ) were up more than 66 percent after the FDA decided that data from a late-stage study, along with supportive data from other studies, are sufficient to support the filing of a new drug application for its pimavanserin drug for the treatment of Parkinson's disease psychosis. The S&P 500 rose a little less than 6 points, or 0.36 percent, to close at 1,593. Other currency movers included the USD/CAD which fell 0.39 percent, and the GBP/USD, which rose 0.49 percent. |
36315.0 | 2013-04-11 00:00:00 UTC | Mid-Afternoon Market Update: Rite Aid Posts Massive Rally, While Hewlett-Packard Takes a Hit | ACAD | https://www.nasdaq.com/articles/mid-afternoon-market-update-rite-aid-posts-massive-rally-while-hewlett-packard-takes-hit | nan | nan | Toward the end of Thursday, the Dow traded up 0.46 percent to 14,870.98 while the NASDAQ rose 0.12 percent to 3,301.44. The S&P also rose, increasing 0.42 percent to 1,594.51.
Index Technicals: The S&P 500 looks to be hitting new resistance at 1,590 with 1,575 acting as resistance below that.
The Dow looks to have new resistance at 14,825, with 14,685 becoming support.
The Russell is set to take out its 940 resistance with 960 acting as resistance above that.
Finally, the NASDAQ looks to be breaking out through 3,270 resistance, finding new resistance at 3,300.
Top Headline An IDC report came out yesterday reporting global PC shipments, saying they were down over 14 percent, the largest decrease ever reported. The release also highlighted a decrease of 10.9 percent in shipments from Dell (NASDAQ: DELL ).
The news has caused companies like Microsoft (NASDAQ: MSFT ) and Hewlett Packard (NYSE: HP ) to take a hit, and sent ripples through the PC manufacturers and suppliers.
Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 67.13 percent to $13.32 after the company announced it had received an expedited FDA review path for its lead drug
Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning.
Zumiez (NASDAQ: ZUMZ ) was also up, gaining 14.42 percent to $28.49 after the company reported higher than expected same store sales for the month of March.
Equities Trading DOWN Fortinet (NASDAQ: FTNT ) plummeted at the market opening, falling 13.50 to $18.90 after taking a series of analyst downgrades this morning.
Hewlett-Packard (NYSE: HPQ ) was also down, falling 6.77 percent to $20.81 after the PC sales data was released to the public.
Shares of BlackBerry (NASDAQ: BBRY ) were down as well, falling 7.22 percent to $13.63 after a report came out that returns of the company's phones were outpacing sales.
Commodities In commodity news, oil traded down 1.28 percent to $93.43, while gold traded up 0.26 percent to $1,562.50.
Silver traded up 0.34 percent Thursday to $27.73, while copper rose 0.37 percent to $3.43.
Eurozone European markets were higher this morning as it was reported that Cyprus had signed its memorandum of understanding with the Troika, opening the door to its much needed bailout funds.
Following the news, the French CAC rose 0.60 percent, while the German DAX was close behind, gaining 0.55 percent.
Economics In economic news this morning, initial jobless claims came in at 346K, above the expected 340K, but below the prior release of 385K, while continuing jobless claims came in at 3.08 million, above the expected 3.07 million and the previous result of 3.06 million.
The import price index came in down -0.50 percent, equal to the prior figure.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 67.13 percent to $13.32 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. The news has caused companies like Microsoft (NASDAQ: MSFT ) and Hewlett Packard (NYSE: HP ) to take a hit, and sent ripples through the PC manufacturers and suppliers. Equities Trading DOWN Fortinet (NASDAQ: FTNT ) plummeted at the market opening, falling 13.50 to $18.90 after taking a series of analyst downgrades this morning. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 67.13 percent to $13.32 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. Toward the end of Thursday, the Dow traded up 0.46 percent to 14,870.98 while the NASDAQ rose 0.12 percent to 3,301.44. Economics In economic news this morning, initial jobless claims came in at 346K, above the expected 340K, but below the prior release of 385K, while continuing jobless claims came in at 3.08 million, above the expected 3.07 million and the previous result of 3.06 million. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 67.13 percent to $13.32 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. Toward the end of Thursday, the Dow traded up 0.46 percent to 14,870.98 while the NASDAQ rose 0.12 percent to 3,301.44. Commodities In commodity news, oil traded down 1.28 percent to $93.43, while gold traded up 0.26 percent to $1,562.50. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 67.13 percent to $13.32 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. Index Technicals: The S&P 500 looks to be hitting new resistance at 1,590 with 1,575 acting as resistance below that. Zumiez (NASDAQ: ZUMZ ) was also up, gaining 14.42 percent to $28.49 after the company reported higher than expected same store sales for the month of March. |
36316.0 | 2013-04-11 00:00:00 UTC | Mid-Day Market Update: ACADIA Posts Massive Rally as AMD Falls | ACAD | https://www.nasdaq.com/articles/mid-day-market-update-acadia-posts-massive-rally-amd-falls-2013-04-11 | nan | nan | Midway through trading Thursday, the Dow traded up 0.43 percent to 14,865.98 while the NASDAQ rose 0.05 percent to 3,299.44. The S&P also rose, increasing 0.40 percent to 1,594.51.
Index Technicals: The S&P 500 looks to be hitting new resistance at 1,590 with 1,575 acting as resistance below that.
The Dow looks to have new resistance at 14,825, with 14,685 becoming support.
The Russell is set to take out its 940 resistance with 960 acting as resistance above that.
Finally, the NASDAQ looks to be breaking out through 3,270 resistance, finding new resistance at 3,300.
Top Headline An IDC report came out yesterday reporting global PC shipments, saying they were down over 14 percent, the largest decrease ever reported. The release also highlighted a decrease of 10.9 percent in shipments from Dell (NASDAQ: DELL ).
The news has caused companies like Microsoft (NASDAQ: MSFT ) and Hewlett Packard (NYSE: HP ) to take a hit, and sent ripples through the PC manufacturers and suppliers.
Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 56.71 percent to $12.49 after the company announced it had received an expedited FDA review path for its lead drug
Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning.
Boyd Gaming (NYSE: BYD ) was also up, gaining 10.24 percent to $9.04 after Morgan Stanley upgraded the stock to an Overweight rating this morning.
Equities Trading DOWN Fortinet (NASDAQ: FTNT ) plummeted at the market opening, falling 14.42 to $18.70 after taking a series of analyst downgrades this morning.
Hewlett-Packard (NYSE: HPQ ) was also down, falling 6.90 percent to $20.78 after the PC sales data was released to the public.
Shares of Advanced Micro Devices (NYSE: AMD ) took a hit as well, falling 3.56 percent to $2.52 on the poor PC report.
Commodities In commodity news, oil traded down 1.46 percent to $93.26, while gold traded up 0.40 percent to $1,565.50.
Silver traded up 0.63 percent Thursday to $27.81, while copper rose 0.26 percent to $3.43.
Eurozone European markets were higher this morning as it was reported that Cyprus had signed its memorandum of understanding with the Troika, opening the door to its much needed bailout funds.
Following the news, the French CAC rose 0.60 percent, while the German DAX was close behind, gaining 0.55 percent.
Economics In economic news this morning, initial jobless claims came in at 346K, above the expected 340K, but below the prior release of 385K, while continuing jobless claims came in at 3.08 million, above the expected 3.07 million and the previous result of 3.06 million.
The import price index came in down -0.50 percent, equal to the prior figure.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 56.71 percent to $12.49 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. The news has caused companies like Microsoft (NASDAQ: MSFT ) and Hewlett Packard (NYSE: HP ) to take a hit, and sent ripples through the PC manufacturers and suppliers. Equities Trading DOWN Fortinet (NASDAQ: FTNT ) plummeted at the market opening, falling 14.42 to $18.70 after taking a series of analyst downgrades this morning. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 56.71 percent to $12.49 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. Midway through trading Thursday, the Dow traded up 0.43 percent to 14,865.98 while the NASDAQ rose 0.05 percent to 3,299.44. Economics In economic news this morning, initial jobless claims came in at 346K, above the expected 340K, but below the prior release of 385K, while continuing jobless claims came in at 3.08 million, above the expected 3.07 million and the previous result of 3.06 million. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 56.71 percent to $12.49 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. Midway through trading Thursday, the Dow traded up 0.43 percent to 14,865.98 while the NASDAQ rose 0.05 percent to 3,299.44. Commodities In commodity news, oil traded down 1.46 percent to $93.26, while gold traded up 0.40 percent to $1,565.50. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 56.71 percent to $12.49 after the company announced it had received an expedited FDA review path for its lead drug Shares of Rite Aid (NYSE: RAD ) shot up 18.99 percent to $2.13 after the company crushed expectations on the bottom line in its earnings release this morning. Midway through trading Thursday, the Dow traded up 0.43 percent to 14,865.98 while the NASDAQ rose 0.05 percent to 3,299.44. Index Technicals: The S&P 500 looks to be hitting new resistance at 1,590 with 1,575 acting as resistance below that. |
36317.0 | 2013-03-21 00:00:00 UTC | Market Wrap for Thursday, March 21: Stocks Give Back Wednesday's Gains | ACAD | https://www.nasdaq.com/articles/market-wrap-thursday-march-21-stocks-give-back-wednesdays-gains-2013-03-21 | nan | nan | The U.S. stock market gave back its gain from Wednesday as the ongoing bank crisis in Cyprus undermines investor confidence.
The major averages in the United States tumbled and stocks were mostly lower across the world. Overall, however, the market remains on solid footing and economic reports continue to exceed economists' expectations.
Major Averages
The Dow Jones Industrial Average lost around 90 points, or 0.62 percent, to 14,421.
The S&P 500 fell around 13 points, or 0.83 percent, to close at 1,546.
The Nasdaq Composite lost 32 points, or 0.97 percent, to 3,223.
Jobless Claims
Initial jobless claims rose slightly for the week ending March 9 to 336,000 from an upwardly revised 334,000. This was below the consensus which expected a rise to 345,000.
Continuing jobless claims also rose slightly in the week ending March 9 to 3.053 million from 3.048 million. This was below consensus expectations which expected the continuing claims rate to rise to 3.065 million.
Existing Home Sales
Existing home sales rose 0.8 percent in February to 4.98 million from 4.94 million in the prior month. This barely missed consensus estimates which called for existing home sales to rise to 5.00 million.
Philadelphia Fed
Data from the Philadelphia Fed's Business Outlook index showed a strong uptick in March. The index rose from -12.5 in February to 2.0 in March, which was ahead of consensus expectations that expected a rise to -3.0.
Leading Indicators
The Conference Board's Index of Leading Indicators registered a gain of 0.5 percent for February after rising 0.5 percent in January. This was in-line with consensus expectations.
Commodities
Crude oil fell along with the stock market on Thursday. Late in the day, NYMEX crude futures were down 1.21 percent to $92.37. Brent futures had lost 1.33 percent and were trading at $107.26. Natural gas had lost $0.03, or 0.83 percent, to $3.93 late in the day on Thursday.
Precious metals rose on the session as stocks fell. COMEX gold futures were last up 0.41 percent to $1,614.10 and silver had climbed 1.28 percent to $29.19 near the close of equity trading. Copper futures fell 0.20 percent on the session.
Grain prices were higher on the session with the exception of wheat and oats, both of which lost around 1 percent. Corn was last trading up 0.07 percent on the day. In soft commodities, orange juice futures added around 1.80 percent and cotton lost 1 percent.
Bonds
Near the close of equity trading, the iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT ) had jumped 0.84 percent to $117.07. The rise in bond prices pushed yields lower on Thursday.
While the yield on the 2-Year Note was unchanged at 0.25 percent, the yield on the 5-Year Note fell one basis point to 0.80 percent. The 10-Year Note yield fell three basis points to 1.93 percent and the 30-Year Bond yield was down five basis points to 3.15 percent.
Currencies
The U.S. dollar was largely unchanged on the session. Near the close of equity trading, the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP ), which tracks the performance of the greenback versus a basket of foreign currencies, was down 0.04 percent to $22.54.
The closely watched EUR/USD pair was last down around 0.16 percent to $1.2915. Other significant movers included the USD/JPY, which fell 1.22 percent, and the AUD/USD, which rose 0.74 percent.
Volatility and Volume
The VIX moved up on Thursday as the markets fell. The widely watched CBOE Volatility Index jumped a little less than 10 percent to 13.90.
Volume was below average even as the major averages fell. Around 112 million SPDR S&P 500 ETF (NYSE: SPY ) shares traded hands compared to a 3-month daily average of 130 million.
Stock Movers
Enterprise software giant Oracle (NASDAQ: ORCL ) fell almost 10 percent after the company missed Q3 earnings expectations.
After days of sharp gains, shares of Fannie Mae (OTC: FNMA ) and Freddie Mac (OTC: FMCC ) pulled back significantly. Near the close, FNMA was down 24 percent while FMCC had lost almost 26 percent.
Shares of ACADIA Pharmaceuticals (NASDAQ: ACAD ) were up around 24 percent heading into the close after the company reported data from its late-stage Parkinson's disease psychosis study with Pimavanserin.
Perry Ellis (NASDAQ: PERY ) climbed almost 7 percent after the company released bullish fourth-quarter financial results.
Shares of apparel retailer Guess? (NYSE: GES ) lost around 7 percent after the company's fiscal fourth-quarter earnings results.
Affymax (NASDAQ: AFFY ) was trading up around 16 percent heading into the closing bell. The micro-cap stock is down better than 92 percent over the last three months after its only marketed product was recalled.
Jabil Circuit (NYSE: JBL ) lost more than 4 percent after releasing its second-quarter earnings results and providing weak Q3 guidance.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of ACADIA Pharmaceuticals (NASDAQ: ACAD ) were up around 24 percent heading into the close after the company reported data from its late-stage Parkinson's disease psychosis study with Pimavanserin. Near the close of equity trading, the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP ), which tracks the performance of the greenback versus a basket of foreign currencies, was down 0.04 percent to $22.54. Stock Movers Enterprise software giant Oracle (NASDAQ: ORCL ) fell almost 10 percent after the company missed Q3 earnings expectations. | Shares of ACADIA Pharmaceuticals (NASDAQ: ACAD ) were up around 24 percent heading into the close after the company reported data from its late-stage Parkinson's disease psychosis study with Pimavanserin. Jobless Claims Initial jobless claims rose slightly for the week ending March 9 to 336,000 from an upwardly revised 334,000. Continuing jobless claims also rose slightly in the week ending March 9 to 3.053 million from 3.048 million. | Shares of ACADIA Pharmaceuticals (NASDAQ: ACAD ) were up around 24 percent heading into the close after the company reported data from its late-stage Parkinson's disease psychosis study with Pimavanserin. While the yield on the 2-Year Note was unchanged at 0.25 percent, the yield on the 5-Year Note fell one basis point to 0.80 percent. The 10-Year Note yield fell three basis points to 1.93 percent and the 30-Year Bond yield was down five basis points to 3.15 percent. | Shares of ACADIA Pharmaceuticals (NASDAQ: ACAD ) were up around 24 percent heading into the close after the company reported data from its late-stage Parkinson's disease psychosis study with Pimavanserin. The S&P 500 fell around 13 points, or 0.83 percent, to close at 1,546. This was below consensus expectations which expected the continuing claims rate to rise to 3.065 million. |
36318.0 | 2013-03-21 00:00:00 UTC | Mid-Morning Market Update: Markets Tumble, Oracle Posts Downbeat Results | ACAD | https://www.nasdaq.com/articles/mid-morning-market-update-markets-tumble-oracle-posts-downbeat-results-2013-03-21 | nan | nan | Following the market opening Thursday, the Dow traded down 0.38 percent to 14,456.47 while the NASDAQ dropped 0.65 percent to 3,232.90. The S&P also fell, dropping 0.45 percent to 1,551.74.
Index Technicals: The S&P 500 seems to be stalling at 1,562 before heading lower this morning, with support set at 1,550, and 1,540 below.
The Dow also seems to be stalling, slowing down at the 14,547 and heads lower to test 14,450 support with 14,400 support below that.
Next, the Russell looks to have resistance at 952, while gapping down to test its 945 support, with 939 acting as a level below that.
Finally, the NASDAQ looks set to test its 3,258 resistance, and gap lower this morning to test its support at 3,212.
Top Headline Yesterday, Oracle (NASDAQ: ORCL ) reported downbeat fiscal third-quarter results.
Oracle's quarterly earnings came in at $2.5 billion, or $0.52 per share, versus $2.5 billion, or $0.49 per share, in the year-ago period. Its adjusted earnings came in at $0.65 per share.
Its revenue fell 1% to $8.96 billion from $9.04 billion. However, analysts were expecting earnings of $0.66 per share on revenue of $9.38 billion.
Analysts including Evercore Partners and CLSA also downgraded the stock following the news.
Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 7.67 percent to $7.16 after phase III pimavanserin study data.
Shares of InterMune (NASDAQ: ITMN ) got a boost, shooting up 6.50 percent to $9.59 after the company reported that Esbriet received positive final appraisal determination from the National Institute for Health and Clinical Excellence ( NICE ) for idiopathic pulmonary fibrosis.
Herman Miller (NASDAQ: MLHR ) was also up, gaining 7.50 percent to $27.37 after the company reported upbeat Q3 earnings.
Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 13.55 percent to $26.86 after the company reported a wider fiscal third-quarter.
Oracle (NASDAQ: ORCL ) was also down, falling 8.47 percent to $32.73 after the company reported downbeat fiscal third-quarter results.
Shares of Guess' (NYSE: GES ) were down 7.24 percent to $25.00 after the company issued downbeat forecast.
Commodities In commodity news, oil traded down 0.52 percent to $93.01, while gold traded up 0.32 percent to $1,612.70.
Silver traded up 1.22 percent Thursday to $29.17, while copper rose 0.01 percent to $3.45.
Eurozone European shares were weaker on the PMI data overnight as well as continued uncertainty over Cyprus' bailout; the Mediterranean nation continues talks with Russian creditors today and no deal has been reached yet.
Germany's manufacturing sector showed a renewed contraction after two months of expansion as the manufacturing PMI fell to 48.9 from 50.3 on expectations of a rise to 50.5.
The Spanish Ibex Index tumbled 0.89 percent and the Italian FTSE MIB Index dipped 0.19 percent. The STOXX Europe 600 Index dropped 0.59 percent, London's FTSE 100 Index fell 0.70 percent, French CAC 40 Index fell 1.18 percent and German DAX 30 index declined 0.82 percent.
Economics US jobless claims rose 2,000 to 336,000 in the week ended March 16. However, economists were expecting claims to increase to 340,000. Continuing claims gained 5,000 to 3.05 million in the week ended March 9.
US home prices rose 0.6% in January, according to the Federal Housing Finance Agency.
The US flash manufacturing PMI increased to 54.9 in March, versus 54.3 in February.
The Bloomberg Consumer Comfort Index declined to minus 33.9 in the week ended March 17, versus a prior reading of minus 31.6.
USA Philadelphia Fed Manufacturing Index for March 2.00, versus estimates of -3.00. The prior reading was -12.50.
USA Existing Home Sales for Feb rose 0.8% to 4.98 million, versus estimates of 5.0 million.
USA Leading Indicators for Feb 0.50%, versus economists' estimates of 0.40%. The prior reading was revised from an initial 0.20% to 0.50%.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 7.67 percent to $7.16 after phase III pimavanserin study data. Shares of InterMune (NASDAQ: ITMN ) got a boost, shooting up 6.50 percent to $9.59 after the company reported that Esbriet received positive final appraisal determination from the National Institute for Health and Clinical Excellence ( NICE ) for idiopathic pulmonary fibrosis. Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 13.55 percent to $26.86 after the company reported a wider fiscal third-quarter. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 7.67 percent to $7.16 after phase III pimavanserin study data. Top Headline Yesterday, Oracle (NASDAQ: ORCL ) reported downbeat fiscal third-quarter results. The STOXX Europe 600 Index dropped 0.59 percent, London's FTSE 100 Index fell 0.70 percent, French CAC 40 Index fell 1.18 percent and German DAX 30 index declined 0.82 percent. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 7.67 percent to $7.16 after phase III pimavanserin study data. Following the market opening Thursday, the Dow traded down 0.38 percent to 14,456.47 while the NASDAQ dropped 0.65 percent to 3,232.90. Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 13.55 percent to $26.86 after the company reported a wider fiscal third-quarter. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 7.67 percent to $7.16 after phase III pimavanserin study data. However, analysts were expecting earnings of $0.66 per share on revenue of $9.38 billion. Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 13.55 percent to $26.86 after the company reported a wider fiscal third-quarter. |
36319.0 | 2013-03-21 00:00:00 UTC | Mid-Day Market Update: Herman Miller Surges On Upbeat Earnings, Scholastic Falls | ACAD | https://www.nasdaq.com/articles/mid-day-market-update-herman-miller-surges-upbeat-earnings-scholastic-falls-2013-03-21 | nan | nan | Midway through trading Thursday, the Dow traded down 0.23 percent to 14,477.96 while the NASDAQ dropped 0.61 percent to 3,234.34. The S&P also fell, dropping 0.31 percent to 1,553.83.
Index Technicals: The S&P 500 seems to be stalling at 1,562 before heading lower this morning, with support set at 1,550, and 1,540 below.
The Dow also seems to be stalling, slowing down at the 14,547 and heads lower to test 14,450 support with 14,400 support below that.
Next, the Russell looks to have resistance at 952, while gapping down to test its 945 support, with 939 acting as a level below that.
Finally, the NASDAQ looks set to test its 3,258 resistance, and gap lower this morning to test its support at 3,212.
Top Headline Yesterday, Oracle (NASDAQ: ORCL ) reported downbeat fiscal third-quarter results. Oracle's quarterly earnings came in at $2.5 billion, or $0.52 per share, versus $2.5 billion, or $0.49 per share, in the year-ago period. Its adjusted earnings came in at $0.65 per share. Its revenue fell 1% to $8.96 billion from $9.04 billion. However, analysts were expecting earnings of $0.66 per share on revenue of $9.38 billion. Analysts including Evercore Partners and CLSA also downgraded the stock following the news. Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 27.91 percent to $8.51 after phase III pimavanserin study data. Shares of SUPERVALU (NYSE: SVU ) got a boost, shooting up 8.83 percent to $4.56 after the company completed the sale of five retail grocery banners in a stock deal valued at $3.3 billion. Herman Miller (NASDAQ: MLHR ) was also up, gaining 8.52 percent to $27.63 after the company reported upbeat Q3 earnings.
Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 14.03 percent to $26.71 after the company reported a wider fiscal third-quarter loss. Oracle (NASDAQ: ORCL ) was also down, falling 8.26 percent to $32.81 after the company reported downbeat fiscal third-quarter results.
Shares of Guess' (NYSE: GES ) were down 4.06 percent to $25.86 after the company issued downbeat forecast.
Commodities In commodity news, oil traded down 0.49 percent to $93.04, while gold traded up 0.31 percent to $1,612.50. Silver traded up 1.28 percent Thursday to $29.19, while copper dropped 0.19 percent to $3.44.
Eurozone European shares were weaker on the PMI data overnight as well as continued uncertainty over Cyprus' bailout; the Mediterranean nation continues talks with Russian creditors today and no deal has been reached yet. Germany's manufacturing sector showed a renewed contraction after two months of expansion as the manufacturing PMI fell to 48.9 from 50.3 on expectations of a rise to 50.5. The Spanish Ibex Index tumbled 0.77 percent and the Italian FTSE MIB Index dipped 0.50 percent. The STOXX Europe 600 Index dropped 0.71 percent, London's FTSE 100 Index fell 0.66 percent, French CAC 40 Index fell 1.14 percent and German DAX 30 index declined 0.89 percent. Economics US jobless claims rose 2,000 to 336,000 in the week ended March 16. However, economists were expecting claims to increase to 340,000. Continuing claims gained 5,000 to 3.05 million in the week ended March 9. US home prices rose 0.6% in January, according to the Federal Housing Finance Agency. The US flash manufacturing PMI increased to 54.9 in March, versus 54.3 in February. The Bloomberg Consumer Comfort Index declined to minus 33.9 in the week ended March 17, versus a prior reading of minus 31.6. USA Philadelphia Fed Manufacturing Index for March 2.00, versus estimates of -3.00. The prior reading was -12.50. USA Existing Home Sales for Feb rose 0.8% to 4.98 million, versus estimates of 5.0 million. USA Leading Indicators for Feb 0.50%, versus economists' estimates of 0.40%. The prior reading was revised from an initial 0.20% to 0.50%. Natural gas supplies declined 62 billion cubic feet for the week ended March 15, the Energy Information Administration reported. However, analysts were expecting a fall between 67 billion and 71 billion cubic feet.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 27.91 percent to $8.51 after phase III pimavanserin study data. Shares of SUPERVALU (NYSE: SVU ) got a boost, shooting up 8.83 percent to $4.56 after the company completed the sale of five retail grocery banners in a stock deal valued at $3.3 billion. Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 14.03 percent to $26.71 after the company reported a wider fiscal third-quarter loss. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 27.91 percent to $8.51 after phase III pimavanserin study data. Top Headline Yesterday, Oracle (NASDAQ: ORCL ) reported downbeat fiscal third-quarter results. Oracle (NASDAQ: ORCL ) was also down, falling 8.26 percent to $32.81 after the company reported downbeat fiscal third-quarter results. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 27.91 percent to $8.51 after phase III pimavanserin study data. Midway through trading Thursday, the Dow traded down 0.23 percent to 14,477.96 while the NASDAQ dropped 0.61 percent to 3,234.34. Oracle's quarterly earnings came in at $2.5 billion, or $0.52 per share, versus $2.5 billion, or $0.49 per share, in the year-ago period. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 27.91 percent to $8.51 after phase III pimavanserin study data. However, analysts were expecting earnings of $0.66 per share on revenue of $9.38 billion. Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 14.03 percent to $26.71 after the company reported a wider fiscal third-quarter loss. |
36320.0 | 2013-03-21 00:00:00 UTC | Mid-Afternoon Market Update: Markets Remain in the Red, DryShips Posts Strong Rally | ACAD | https://www.nasdaq.com/articles/mid-afternoon-market-update-markets-remain-red-dryships-posts-strong-rally-2013-03-21 | nan | nan | Toward the end of trading Thursday, the Dow traded down 0.54 percent to 14,433.96 while the NASDAQ dropped 0.89 percent to 3,225.34. The S&P also fell, dropping 0.68 percent to 1,548.83.
Index Technicals: The S&P 500 seems to be stalling at 1,562 before heading lower this morning, with support set at 1,550, and 1,540 below.
The Dow also seems to be stalling, slowing down at the 14,547 and heads lower to test 14,450 support with 14,400 support below that.
Next, the Russell looks to have resistance at 952, while gapping down to test its 945 support, with 939 acting as a level below that.
Finally, the NASDAQ looks set to test its 3,258 resistance, and gap lower this morning to test its support at 3,212.
Top Headline Yesterday, Oracle (NASDAQ: ORCL ) reported downbeat fiscal third-quarter results. Oracle's quarterly earnings came in at $2.5 billion, or $0.52 per share, versus $2.5 billion, or $0.49 per share, in the year-ago period. Its adjusted earnings came in at $0.65 per share.
Its revenue fell 1% to $8.96 billion from $9.04 billion. However, analysts were expecting earnings of $0.66 per share on revenue of $9.38 billion.
Analysts including Evercore Partners and CLSA also downgraded the stock following the news.
Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 29.09 percent to $8.58 after phase III pimavanserin study data.
Shares of SUPERVALU (NYSE: SVU ) got a boost, shooting up 12.59 percent to $4.72 after the company completed the sale of five retail grocery banners in a stock deal valued at $3.3 billion.
DryShips (NASDAQ: DRYS ) has gained 7.81 percent to $2.07 on little more than technical indicators, as the shipping sector has posted a rally all day.
Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 14.58 percent to $26.54 after the company reported a wider fiscal third-quarter loss.
Oracle (NASDAQ: ORCL ) was also down, falling 9.19 percent to $32.48 after the company reported downbeat fiscal third-quarter results.
Shares of Guess' (NYSE: GES ) were down 6.46 percent to $25.21 after the company issued downbeat forecast.
Commodities In commodity news, oil traded down 1.37 percent to $92.22, while gold traded up 0.42 percent to $1,642.30.
Silver traded up 1.37 percent Thursday to $29.22, while copper dropped 0.22 percent to $3.43.
Eurozone European shares were weaker on the PMI data overnight as well as continued uncertainty over Cyprus' bailout; the Mediterranean nation continues talks with Russian creditors today and no deal has been reached yet.
Germany's manufacturing sector showed a renewed contraction after two months of expansion as the manufacturing PMI fell to 48.9 from 50.3 on expectations of a rise to 50.5.
The Spanish Ibex Index tumbled 0.77 percent and the Italian FTSE MIB Index dipped 0.50 percent. The STOXX Europe 600 Index dropped 0.71 percent, London's FTSE 100 Index fell 0.66 percent, French CAC 40 Index fell 1.14 percent and German DAX 30 index declined 0.89 percent.
Economics US jobless claims rose 2,000 to 336,000 in the week ended March 16. However, economists were expecting claims to increase to 340,000. Continuing claims gained 5,000 to 3.05 million in the week ended March 9.
US home prices rose 0.6% in January, according to the Federal Housing Finance Agency. The US flash manufacturing PMI increased to 54.9 in March, versus 54.3 in February. The Bloomberg Consumer Comfort Index declined to minus 33.9 in the week ended March 17, versus a prior reading of minus 31.6.
USA Philadelphia Fed Manufacturing Index for March 2.00, versus estimates of -3.00. The prior reading was -12.50.
USA Existing Home Sales for Feb rose 0.8% to 4.98 million, versus estimates of 5.0 million. USA Leading Indicators for Feb 0.50%, versus economists' estimates of 0.40%. The prior reading was revised from an initial 0.20% to 0.50%.
Natural gas supplies declined 62 billion cubic feet for the week ended March 15, the Energy Information Administration reported. However, analysts were expecting a fall between 67 billion and 71 billion cubic feet.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Profit with More New & Research . Gain access to a streaming platform with all the information you need to invest better today. Click here to start your 14 Day Trial of Benzinga Professional
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 29.09 percent to $8.58 after phase III pimavanserin study data. Shares of SUPERVALU (NYSE: SVU ) got a boost, shooting up 12.59 percent to $4.72 after the company completed the sale of five retail grocery banners in a stock deal valued at $3.3 billion. Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 14.58 percent to $26.54 after the company reported a wider fiscal third-quarter loss. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 29.09 percent to $8.58 after phase III pimavanserin study data. Top Headline Yesterday, Oracle (NASDAQ: ORCL ) reported downbeat fiscal third-quarter results. Oracle (NASDAQ: ORCL ) was also down, falling 9.19 percent to $32.48 after the company reported downbeat fiscal third-quarter results. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 29.09 percent to $8.58 after phase III pimavanserin study data. Toward the end of trading Thursday, the Dow traded down 0.54 percent to 14,433.96 while the NASDAQ dropped 0.89 percent to 3,225.34. Oracle's quarterly earnings came in at $2.5 billion, or $0.52 per share, versus $2.5 billion, or $0.49 per share, in the year-ago period. | Equities Trading UP ACADIA Pharmaceuticals (NASDAQ: ACAD ) shot up 29.09 percent to $8.58 after phase III pimavanserin study data. However, analysts were expecting earnings of $0.66 per share on revenue of $9.38 billion. Equities Trading DOWN Scholastic (NASDAQ: SCHL ) shares tumbled 14.58 percent to $26.54 after the company reported a wider fiscal third-quarter loss. |
36321.0 | 2013-03-12 00:00:00 UTC | Benzinga Market Primer: Tuesday, March 12 | ACAD | https://www.nasdaq.com/articles/benzinga-market-primer-tuesday-march-12-2013-03-12 | nan | nan | Futures Slide on Asian Weakness
U.S. equity futures slid in early pre-market trade after Asian shares reversed early gains to close lower. The Japanese Nikkei Index broke an eight-day winning streak to close lower after opening higher and raising hopes of a record nine-day winning streak.
Top News
In other news around the markets:
Greece will need to lay out a plan to cut another 150,000 jobs by 2015 to receive its next bailout payment due next week of about 3.5 billion euros. U.K. January industrial production fell 1.2 percent, well worse than forecasts of a 0.1 percent gain and also much worse than December's 1.1 percent gain. Manufacturing output also fell 1.5 percent in January on expectations of a flat reading. Goldman Sachs Asset Management outgoing Chairman Jim O'Neill says U.S. equities look expensive on a cyclically adjusted price-to-earnings ratio and that he fears the dreaded May top in equities. S&P 500 futures fell 1 point to 1,549.50. The EUR/USD was lower at 1.3012. Spanish 10-year government bond yields fell to 4.71 percent from 4.75 percent. Italian 10-year government bond yields fell to 4.6 percent from 4.65 percent. Gold rose 0.21 percent to $1,581.30 per ounce.
Asian Markets
Asian shares were lower overnight on weak economic data despite comments from incoming Bank of Japan Deputy Governor Kikuo Iwata that more easing is to come in the near future. The Japanese Nikkei Index fell 0.28 percent and the Shanghai Composite Index fell 1.04 percent while the Hang Seng Index fell 0.87 percent. Also, the Korean Kospi fell 0.5 percent and Australian shares declined 0.56 percent.
European Markets
European shares were modestly higher in early trade despite some weak economic data from the U.K. as inflation in Germany and other core European nations remained low in February, signaling more room for the ECB to ease policy further. The Spanish Ibex Index rose 0.5 percent and the Italian FTSE MIB Index rose 0.63 percent. Meanwhile, the German DAX rose 0.1 percent and the French CAC rose 0.01 percent while U.K. shares rose 0.03 percent.
Commodities
Commodities were mixed overnight as energy futures fell and precious metals futures rose. WTI Crude futures fell 0.21 percent to $91.87 per barrel and Brent Crude futures fell 0.23 percent to $109.97 per barrel. Copper futures fell 0.2 percent to $351.00 per pound on the Asian weakness and weak U.K. data. Gold was higher and silver futures rose 0.21 percent to $28.92 per ounce.
Currencies
Currency markets were in clear risk off mode as the dollar and the yen reigned and the euro and the pound slid. The EUR/USD was lower at 1.3012 and the dollar fell against the yen to 95.95. Overall, the Dollar Index rose 0.16 percent on strength against the euro, the pound, and the Canadian dollar. The GBP/USD fell 0.5 percent following the weak data to 1.4842, breaking through the 1.49 level, as the pound weakened broadly. Also, the yen was stronger against both the euro and the Aussie dollar.
Pre-Market Movers
Stocks moving in the pre-market included:
Yum! Brands (NYSE: YUM ) shares rose 5.4 percent pre-market after the company revised higher same store sales estimates for its Chinese operations in January and also reported data for February. Diamond Foods (NASDAQ: DMND ) shares fell 5.85 percent pre-market after reporting worse than expected fiscal second quarter operations. Urban Outfitters (NASDAQ: URBN ) shares fell 2.29 percent pre-market after reporting slightly worse than expected second quarter operations. VeriFone Systems (NYSE: PAY ) shares rose 7.58 percent after announcing that its CEO was stepping down following an approximately 63 percent slide in the stock price in the last 52-weeks.
Earnings
Notable companies expected to report earnings Tuesday include:
Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a fourth quarter loss of $0.09 per share vs. a loss of $0.10 per share a year ago. Costco Corp. (NASDAQ: COST ) is expected to report second quarter EPS of $1.06 vs. $0.90 a year ago. Dole Foods (NYSE: DOLE ) is expected to report a fourth quarter loss of $0.02 per share vs. a loss of $0.02 per share a year ago. Embraer (NYSE: ERJ ) is expected to report fourth quarter EPS of $0.87 vs. a loss of $0.51 per share a year ago. JinkoSolar Holding Co. (NYSE: JKS ) is expected to report a fourth quarter loss of $0.80 per share vs. a loss of $2.58 per share a year ago. XOMA Holdings (NASDAQ: XOMA ) is expected to report a fourth quarter loss of $0.26 per share vs. a loss of $0.34 per share a year ago.
Economics
On the economics calendar Tuesday, the NFIB Small Business Optimism Index is set to be released alongside chain store sales and the Redbook. The Treasury is also set to auction 4-week and 3-year notes and also issue its monthly budget statement. Overnight, French payrolls and eurozone industrial production data should move markets.
Good luck and good trading.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a fourth quarter loss of $0.09 per share vs. a loss of $0.10 per share a year ago. Brands (NYSE: YUM ) shares rose 5.4 percent pre-market after the company revised higher same store sales estimates for its Chinese operations in January and also reported data for February. Diamond Foods (NASDAQ: DMND ) shares fell 5.85 percent pre-market after reporting worse than expected fiscal second quarter operations. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a fourth quarter loss of $0.09 per share vs. a loss of $0.10 per share a year ago. Futures Slide on Asian Weakness U.S. equity futures slid in early pre-market trade after Asian shares reversed early gains to close lower. Dole Foods (NYSE: DOLE ) is expected to report a fourth quarter loss of $0.02 per share vs. a loss of $0.02 per share a year ago. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a fourth quarter loss of $0.09 per share vs. a loss of $0.10 per share a year ago. U.K. January industrial production fell 1.2 percent, well worse than forecasts of a 0.1 percent gain and also much worse than December's 1.1 percent gain. The Japanese Nikkei Index fell 0.28 percent and the Shanghai Composite Index fell 1.04 percent while the Hang Seng Index fell 0.87 percent. | Earnings Notable companies expected to report earnings Tuesday include: Acadia Pharmaceuticals (NASDAQ: ACAD ) is expected to report a fourth quarter loss of $0.09 per share vs. a loss of $0.10 per share a year ago. U.K. January industrial production fell 1.2 percent, well worse than forecasts of a 0.1 percent gain and also much worse than December's 1.1 percent gain. Meanwhile, the German DAX rose 0.1 percent and the French CAC rose 0.01 percent while U.K. shares rose 0.03 percent. |
36322.0 | 2013-03-12 00:00:00 UTC | After-Hours Earnings Report for March 12, 2013 : KW, DOLE, ACAD, GCA, GNMK, AVID, WSR, KTOS, GERN, ACRX, FOLD, GCAP | ACAD | https://www.nasdaq.com/articles/after-hours-earnings-report-march-12-2013-kw-dole-acad-gca-gnmk-avid-wsr-ktos-gern-acrx | nan | nan | The following companies are expected to report earnings after hours on 03/12/2013. Visit our Earnings Calendar for a full list of expected earnings releases.
Kennedy-Wilson Holdings Inc. ( KW ) is reporting for the quarter ending December 31, 2012. The real estate company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.08. This value represents a -161.54% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for KW is -53.38 vs. an industry ratio of 10.90.
Dole Food Company, Inc ( DOLE ) is reporting for the quarter ending December 31, 2012. The food company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.01. This value represents a -50.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for DOLE is 12.40 vs. an industry ratio of 20.10.
ACADIA Pharmaceuticals Inc. ( ACAD ) is reporting for the quarter ending December 31, 2012. The biomedical (gene) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.08. This value represents a -20.00% decrease compared to the same quarter last year. ACAD missed the consensus earnings per share in the 1st calendar quarter of 2012 by -9.09%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACAD is -18.51 vs. an industry ratio of -11.40.
Global Cash Access Holdings, Inc. ( GCA ) is reporting for the quarter ending December 31, 2012. The financial services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.16. This value represents a 14.29% increase compared to the same quarter last year. GCA missed the consensus earnings per share in the 1st calendar quarter of 2012 by -4.76%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for GCA is 8.57 vs. an industry ratio of 22.40.
GenMark Diagnostics, Inc. ( GNMK ) is reporting for the quarter ending December 31, 2012. The medical instruments company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.23. This value represents a -14.81% decrease compared to the same quarter last year. GNMK missed the consensus earnings per share in the 4th calendar quarter of 2011 by -3.85%. The "days to cover" for this stock exceeds 22 days. Zacks Investment Research reports that the 2012 Price to Earnings ratio for GNMK is -11.87 vs. an industry ratio of 121.50.
Avid Technology, Inc. ( AVID ) is reporting for the quarter ending December 31, 2012. The computer software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.11. This value represents a -63.33% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AVID is -15.44 vs. an industry ratio of 17.40.
Whitestone REIT ( WSR ) is reporting for the quarter ending December 31, 2012. The reit company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.25. This value represents a no change for the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for WSR is 16.23 vs. an industry ratio of 16.30.
Kratos Defense & Security Solutions, Inc. ( KTOS ) is reporting for the quarter ending December 31, 2012. The aerospace and defense company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.05. This value represents a -129.41% decrease compared to the same quarter last year. In the past year KTOS has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 550%. The "days to cover" for this stock exceeds 22 days. Zacks Investment Research reports that the 2012 Price to Earnings ratio for KTOS is -7.86 vs. an industry ratio of 37.60.
Geron Corporation ( GERN ) is reporting for the quarter ending December 31, 2012. The biomedical (gene) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.14. This value represents a -36.36% decrease compared to the same quarter last year. GERN missed the consensus earnings per share in the 4th calendar quarter of 2011 by -10%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for GERN is -2.59 vs. an industry ratio of -11.40, implying that they will have a higher earnings growth than their competitors in the same industry.
AcelRx Pharmaceuticals, Inc. ( ACRX ) is reporting for the quarter ending December 31, 2012. The drug company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.39. This value represents a 18.18% increase compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACRX is -3.41 vs. an industry ratio of 10.00.
Amicus Therapeutics, Inc. ( FOLD ) is reporting for the quarter ending December 31, 2012. The biomedical (gene) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.36. This value represents a -256.52% decrease compared to the same quarter last year. FOLD missed the consensus earnings per share in the 3rd calendar quarter of 2012 by -45.83%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for FOLD is -2.40 vs. an industry ratio of -11.40, implying that they will have a higher earnings growth than their competitors in the same industry.
GAIN Capital Holdings, Inc. ( GCAP ) is reporting for the quarter ending December 31, 2012. The investment bankers company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.05. This value represents a -200.00% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 12 days.The days to cover, as reported in the 2/28/2013 12:00:00 AM short interest update, increased214.28660386096 from previous report on2/15/2013 12:00:00 AM Zacks Investment Research reports that the 2012 Price to Earnings ratio for GCAP is 14.41 vs. an industry ratio of 14.00, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACADIA Pharmaceuticals Inc. ( ACAD ) is reporting for the quarter ending December 31, 2012. ACAD missed the consensus earnings per share in the 1st calendar quarter of 2012 by -9.09%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACAD is -18.51 vs. an industry ratio of -11.40. | ACADIA Pharmaceuticals Inc. ( ACAD ) is reporting for the quarter ending December 31, 2012. ACAD missed the consensus earnings per share in the 1st calendar quarter of 2012 by -9.09%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACAD is -18.51 vs. an industry ratio of -11.40. | ACADIA Pharmaceuticals Inc. ( ACAD ) is reporting for the quarter ending December 31, 2012. ACAD missed the consensus earnings per share in the 1st calendar quarter of 2012 by -9.09%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACAD is -18.51 vs. an industry ratio of -11.40. | ACADIA Pharmaceuticals Inc. ( ACAD ) is reporting for the quarter ending December 31, 2012. ACAD missed the consensus earnings per share in the 1st calendar quarter of 2012 by -9.09%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for ACAD is -18.51 vs. an industry ratio of -11.40. |
36323.0 | 2012-11-27 00:00:00 UTC | Pre-Market Most Active for Nov 27, 2012 : ACAD, RAH, BAC, FB, NOK, SNE, GLW, SID, QQQ, AAPL, EBAY, ZNGA | ACAD | https://www.nasdaq.com/articles/pre-market-most-active-nov-27-2012-acad-rah-bac-fb-nok-sne-glw-sid-qqq-aapl-ebay-znga-2012 | nan | nan | The NASDAQ 100 Pre-Market Indicator is up .4 to 2,652.07. The total Pre-Market volume is currently 8,712,650 shares traded.
The following are the most active stocks for the pre-market session :
ACADIA Pharmaceuticals Inc. ( ACAD ) is +4.62 at $6.92, with 5,460,144 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $-0.09. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range".
Ralcorp Holdings, Inc. ( RAH ) is +18.55 at $88.78, with 4,699,422 shares traded. RTT News Reports: ConAgra To Buy Ralcorp For $6.8 Bln, Including Debt
Bank of America Corporation ( BAC ) is +0.085 at $9.92, with 1,738,825 shares traded. BAC's current last sale is 94.48% of the target price of $10.5.
Facebook, Inc. ( FB ) is +0.45 at $26.39, with 1,673,841 shares traded. As reported by Zacks, the current mean recommendation for FB is in the "buy range".
Nokia Corporation ( NOK ) is +0.05 at $3.41, with 761,159 shares traded. NOK's current last sale is 113.67% of the target price of $3.
Sony Corp Ord ( SNE ) is +0.03 at $9.93, with 450,000 shares traded. As reported in the last short interest update the days to cover for SNE is 7.031996; this calculation is based on the average trading volume of the stock.
Corning Incorporated ( GLW ) is +0.78 at $12.13, with 414,307 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2013. The consensus EPS forecast is $0.36. GLW's current last sale is 80.87% of the target price of $15.
National Steel Company ( SID ) is +0.055 at $4.96, with 316,500 shares traded. SID's current last sale is 99.2% of the target price of $5.
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.031 at $65.15, with 287,100 shares traded. This represents a 20.34% increase from its 52 Week Low.
Apple Inc. ( AAPL ) is -0.21 at $589.32, with 229,650 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $13.41. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
eBay Inc. ( EBAY ) is unchanged at $51.40, with 137,568 shares traded., following a 52-week high recorded in prior regular session.
Zynga Inc. ( ZNGA ) is +0.04 at $2.44, with 127,023 shares traded. ZNGA's current last sale is 81.33% of the target price of $3.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The following are the most active stocks for the pre-market session : ACADIA Pharmaceuticals Inc. ( ACAD ) is +4.62 at $6.92, with 5,460,144 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". RTT News Reports: ConAgra To Buy Ralcorp For $6.8 Bln, Including Debt Bank of America Corporation ( BAC ) is +0.085 at $9.92, with 1,738,825 shares traded. | Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The following are the most active stocks for the pre-market session : ACADIA Pharmaceuticals Inc. ( ACAD ) is +4.62 at $6.92, with 5,460,144 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". | Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The following are the most active stocks for the pre-market session : ACADIA Pharmaceuticals Inc. ( ACAD ) is +4.62 at $6.92, with 5,460,144 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". | The following are the most active stocks for the pre-market session : ACADIA Pharmaceuticals Inc. ( ACAD ) is +4.62 at $6.92, with 5,460,144 shares traded. As reported by Zacks, the current mean recommendation for ACAD is in the "buy range". RTT News Reports: ConAgra To Buy Ralcorp For $6.8 Bln, Including Debt Bank of America Corporation ( BAC ) is +0.085 at $9.92, with 1,738,825 shares traded. |
36324.0 | 2012-11-27 00:00:00 UTC | After Hours Most Active for Nov 27, 2012 : ACAD, GMCR, CIG, DISH, EFII, NOK, T, BAC, JEF, MSFT, DTV, HAL | ACAD | https://www.nasdaq.com/articles/after-hours-most-active-nov-27-2012-acad-gmcr-cig-dish-efii-nok-t-bac-jef-msft-dtv-hal | nan | nan | The NASDAQ 100 After Hours Indicator is up 1.55 to 2,642.97. The total After hours volume is currently 41,704,216 shares traded.
The following are the most active stocks for the after hours session :
ACADIA Pharmaceuticals Inc. ( ACAD ) is unchanged at $5.43, with 5,560,675 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $-0.09. , following a 52-week high recorded in today's regular session.
Green Mountain Coffee Roasters, Inc. ( GMCR ) is +7.22 at $36.17, with 3,899,741 shares traded. RTT News Reports: Green Mountain Coffee Roasters Q4 Profit Rises; Lifts FY13 Adj. EPS View
Comp En De Mn Cemig ADS ( CIG ) is +0.4349 at $11.88, with 3,741,658 shares traded. As reported by Zacks, the current mean recommendation for CIG is in the "buy range".
DISH Network Corporation ( DISH ) is -0.14 at $34.25, with 2,409,867 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $0.54. DISH's current last sale is 92.57% of the target price of $37.
Electronics for Imaging, Inc. ( EFII ) is unchanged at $18.13, with 1,981,075 shares traded. As reported by Zacks, the current mean recommendation for EFII is in the "strong buy range".
Nokia Corporation ( NOK ) is +0.02 at $3.19, with 1,977,512 shares traded. NOK's current last sale is 106.33% of the target price of $3.
AT&T Inc. ( T ) is +0.12 at $33.74, with 1,815,923 shares traded. T's current last sale is 91.19% of the target price of $37.
Bank of America Corporation ( BAC ) is +0.01 at $9.67, with 1,667,820 shares traded. BAC's current last sale is 92.1% of the target price of $10.5.
Jefferies Group, Inc. ( JEF ) is unchanged at $15.95, with 1,243,614 shares traded. JEF's current last sale is 96.67% of the target price of $16.5.
Microsoft Corporation ( MSFT ) is +0.05 at $27.13, with 1,031,169 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
DIRECTV ( DTV ) is unchanged at $49.19, with 950,817 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The consensus EPS forecast is $1.14. As reported by Zacks, the current mean recommendation for DTV is in the "buy range".
Halliburton Company ( HAL ) is +0.06 at $32.10, with 860,828 shares traded. As reported by Zacks, the current mean recommendation for HAL is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The following are the most active stocks for the after hours session : ACADIA Pharmaceuticals Inc. ( ACAD ) is unchanged at $5.43, with 5,560,675 shares traded. RTT News Reports: Green Mountain Coffee Roasters Q4 Profit Rises; Lifts FY13 Adj. EPS View Comp En De Mn Cemig ADS ( CIG ) is +0.4349 at $11.88, with 3,741,658 shares traded. | Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2012. The following are the most active stocks for the after hours session : ACADIA Pharmaceuticals Inc. ( ACAD ) is unchanged at $5.43, with 5,560,675 shares traded. RTT News Reports: Green Mountain Coffee Roasters Q4 Profit Rises; Lifts FY13 Adj. | The following are the most active stocks for the after hours session : ACADIA Pharmaceuticals Inc. ( ACAD ) is unchanged at $5.43, with 5,560,675 shares traded. EPS View Comp En De Mn Cemig ADS ( CIG ) is +0.4349 at $11.88, with 3,741,658 shares traded. AT&T Inc. ( T ) is +0.12 at $33.74, with 1,815,923 shares traded. | The following are the most active stocks for the after hours session : ACADIA Pharmaceuticals Inc. ( ACAD ) is unchanged at $5.43, with 5,560,675 shares traded. EPS View Comp En De Mn Cemig ADS ( CIG ) is +0.4349 at $11.88, with 3,741,658 shares traded. AT&T Inc. ( T ) is +0.12 at $33.74, with 1,815,923 shares traded. |
36325.0 | 2012-01-23 00:00:00 UTC | Zacks #1 Rank Additions for Monday - Tale of the Tape | ACAD | https://www.nasdaq.com/articles/zacks-1-rank-additions-for-monday-tale-of-the-tape-2012-01-23 | nan | nan | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today:
ACADIA Pharma ( ACAD )
Arena Pharma ( ARNA )
AMETEK, Inc ( AME )
BJ's Restaurants ( BJRI )
Calamos Asset ( CLMS )
View the entire Zacks #1 Rank List .
ACADIA PHARMA ( ACAD ): Free Stock Analysis Report
AMETEK INC ( AME ): Free Stock Analysis Report
ARENA PHARMA ( ARNA ): Free Stock Analysis Report
BJ'S RESTAURANT ( BJRI ): Free Stock Analysis Report
CALAMOS ASSET-A ( CLMS ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) AMETEK, Inc ( AME ) BJ's Restaurants ( BJRI ) Calamos Asset ( CLMS ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BJ'S RESTAURANT ( BJRI ): Free Stock Analysis Report CALAMOS ASSET-A ( CLMS ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) AMETEK, Inc ( AME ) BJ's Restaurants ( BJRI ) Calamos Asset ( CLMS ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BJ'S RESTAURANT ( BJRI ): Free Stock Analysis Report CALAMOS ASSET-A ( CLMS ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) AMETEK, Inc ( AME ) BJ's Restaurants ( BJRI ) Calamos Asset ( CLMS ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BJ'S RESTAURANT ( BJRI ): Free Stock Analysis Report CALAMOS ASSET-A ( CLMS ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) AMETEK, Inc ( AME ) BJ's Restaurants ( BJRI ) Calamos Asset ( CLMS ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BJ'S RESTAURANT ( BJRI ): Free Stock Analysis Report CALAMOS ASSET-A ( CLMS ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
36326.0 | 2012-01-19 00:00:00 UTC | Zacks #1 Rank Additions for Thursday - Tale of the Tape | ACAD | https://www.nasdaq.com/articles/zacks-1-rank-additions-for-thursday-tale-of-the-tape-2012-01-19 | nan | nan | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today:
ACADIA Pharma ( ACAD )
AMETEK Inc ( AME )
Bank of the Ozarks ( OZRK )
Cardtronics Inc ( CATM )
Carlisle Co ( CSL )
View the entire Zacks #1 Rank List .
ACADIA PHARMA ( ACAD ): Free Stock Analysis Report
AMETEK INC ( AME ): Free Stock Analysis Report
CARDTRONICS INC ( CATM ): Free Stock Analysis Report
CARLISLE COS IN ( CSL ): Free Stock Analysis Report
BANK OZARKS ( OZRK ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) AMETEK Inc ( AME ) Bank of the Ozarks ( OZRK ) Cardtronics Inc ( CATM ) Carlisle Co ( CSL ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report CARDTRONICS INC ( CATM ): Free Stock Analysis Report CARLISLE COS IN ( CSL ): Free Stock Analysis Report BANK OZARKS ( OZRK ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) AMETEK Inc ( AME ) Bank of the Ozarks ( OZRK ) Cardtronics Inc ( CATM ) Carlisle Co ( CSL ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report CARDTRONICS INC ( CATM ): Free Stock Analysis Report CARLISLE COS IN ( CSL ): Free Stock Analysis Report BANK OZARKS ( OZRK ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report CARDTRONICS INC ( CATM ): Free Stock Analysis Report CARLISLE COS IN ( CSL ): Free Stock Analysis Report BANK OZARKS ( OZRK ): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) AMETEK Inc ( AME ) Bank of the Ozarks ( OZRK ) Cardtronics Inc ( CATM ) Carlisle Co ( CSL ) View the entire Zacks #1 Rank List . Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) AMETEK Inc ( AME ) Bank of the Ozarks ( OZRK ) Cardtronics Inc ( CATM ) Carlisle Co ( CSL ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report CARDTRONICS INC ( CATM ): Free Stock Analysis Report CARLISLE COS IN ( CSL ): Free Stock Analysis Report BANK OZARKS ( OZRK ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
36327.0 | 2012-01-17 00:00:00 UTC | Zacks #1 Rank Additions for Tuesday - Tale of the Tape | ACAD | https://www.nasdaq.com/articles/zacks-1-rank-additions-for-tuesday-tale-of-the-tape-2012-01-17 | nan | nan | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today:
ACADIA Pharma ( ACAD )
Arena Pharma ( ARNA )
Barrett Business ( BBSI )
Baytex Energy ( BTE )
Crane Co ( CR )
View the entire Zacks #1 Rank List .
ACADIA PHARMA ( ACAD ): Free Stock Analysis Report
ARENA PHARMA ( ARNA ): Free Stock Analysis Report
BARRETT BUS SVS ( BBSI ): Free Stock Analysis Report
BAYTEX ENERGY ( BTE ): Free Stock Analysis Report
CRANE CO ( CR ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) Barrett Business ( BBSI ) Baytex Energy ( BTE ) Crane Co ( CR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BARRETT BUS SVS ( BBSI ): Free Stock Analysis Report BAYTEX ENERGY ( BTE ): Free Stock Analysis Report CRANE CO ( CR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) Barrett Business ( BBSI ) Baytex Energy ( BTE ) Crane Co ( CR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BARRETT BUS SVS ( BBSI ): Free Stock Analysis Report BAYTEX ENERGY ( BTE ): Free Stock Analysis Report CRANE CO ( CR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) Barrett Business ( BBSI ) Baytex Energy ( BTE ) Crane Co ( CR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BARRETT BUS SVS ( BBSI ): Free Stock Analysis Report BAYTEX ENERGY ( BTE ): Free Stock Analysis Report CRANE CO ( CR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) Arena Pharma ( ARNA ) Barrett Business ( BBSI ) Baytex Energy ( BTE ) Crane Co ( CR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report ARENA PHARMA ( ARNA ): Free Stock Analysis Report BARRETT BUS SVS ( BBSI ): Free Stock Analysis Report BAYTEX ENERGY ( BTE ): Free Stock Analysis Report CRANE CO ( CR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
36328.0 | 2012-01-13 00:00:00 UTC | Zacks #1 Rank Additions for Friday - Tale of the Tape | ACAD | https://www.nasdaq.com/articles/zacks-1-rank-additions-for-friday-tale-of-the-tape-2012-01-13 | nan | nan | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today:
ACADIA Pharma ( ACAD )
American Water Works ( AWK )
AMETEK Inc ( AME )
CoBiz Financial ( COBZ )
Entropic Comm ( ENTR )
View the entire Zacks #1 Rank List .
ACADIA PHARMA ( ACAD ): Free Stock Analysis Report
AMETEK INC ( AME ): Free Stock Analysis Report
AMER WATER WORK ( AWK ): Free Stock Analysis Report
COBIZ FINL INC ( COBZ ): Free Stock Analysis Report
ENTROPIC COMMUN ( ENTR ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) American Water Works ( AWK ) AMETEK Inc ( AME ) CoBiz Financial ( COBZ ) Entropic Comm ( ENTR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report AMER WATER WORK ( AWK ): Free Stock Analysis Report COBIZ FINL INC ( COBZ ): Free Stock Analysis Report ENTROPIC COMMUN ( ENTR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) American Water Works ( AWK ) AMETEK Inc ( AME ) CoBiz Financial ( COBZ ) Entropic Comm ( ENTR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report AMER WATER WORK ( AWK ): Free Stock Analysis Report COBIZ FINL INC ( COBZ ): Free Stock Analysis Report ENTROPIC COMMUN ( ENTR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) American Water Works ( AWK ) AMETEK Inc ( AME ) CoBiz Financial ( COBZ ) Entropic Comm ( ENTR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report AMER WATER WORK ( AWK ): Free Stock Analysis Report COBIZ FINL INC ( COBZ ): Free Stock Analysis Report ENTROPIC COMMUN ( ENTR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: ACADIA Pharma ( ACAD ) American Water Works ( AWK ) AMETEK Inc ( AME ) CoBiz Financial ( COBZ ) Entropic Comm ( ENTR ) View the entire Zacks #1 Rank List . ACADIA PHARMA ( ACAD ): Free Stock Analysis Report AMETEK INC ( AME ): Free Stock Analysis Report AMER WATER WORK ( AWK ): Free Stock Analysis Report COBIZ FINL INC ( COBZ ): Free Stock Analysis Report ENTROPIC COMMUN ( ENTR ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
36329.0 | 2011-06-29 00:00:00 UTC | 7 Biotech Penny Stocks to Buy | ACAD | https://www.nasdaq.com/articles/7-biotech-penny-stocks-buy-2011-06-29 | nan | nan | Biotech penny stocks have a lot to offer investors. While many biotechs start out unprofitable as they build a treatment and push it through FDA approval, these stocks can explode overnight when that much-anticipated approval comes or a clinical study proves the worth of a drug once and for all.
Of course, penny stocks by nature are aggressive, and biotech penny stocks are just as risky. That's why I screen for stocks that trade for more than $1 but less than $5, with a $100 million market cap or greater and more than one year on a major exchange. No pink sheets or wild bets here. These are legit companies - that just so happen to be super small and in startup phases.
If you're looking to play biotech penny stocks, consider these seven picks:
Acadia Pharmaceuticals
Focusing on treatments for central nervous system disorders, Acadia Pharmaceuticals (NASDAQ: ACAD ) has experienced a 31% increase in stock value year-to-date. ACAD has more than doubled its 52-week low of 65 cents but, based on my fundamental and quatitative screens, remains an affordable stock for penny-stock investors, with more upside
AEterna Zentaris, Inc.
Oncology and endocrine therapy drug development company AEterna Zentaris, Inc. (NASDAQ: AEZS ) is up 27% year-to-date and 81% in the last 12 months. Buy this stock as it approaches its 52-week high of $2.68.
Aastrom Biosciences, Inc.
Regenerative medicine company Aastrom Biosciences, Inc. (NASDAQ: ASTM ) is up 20% in the last three months and 77% in the last 12. This penny stock just makes the cut with a market cap of $102 million, but it definitely is an investment to watch.
Cell Therapeutics, Inc.
Cancer treatment company Cell Therapeutics, Inc. (NASDAQ: CTIC ) has jumped 50% since mid-March. This penny stock has the ability to bring you quick gains, as its value skyrocketed 37% in just one day in March.
iBio, Inc.
Focusing on vaccines and therapeutic proteins, iBio Inc. (AMEX: IBIO ) is up 12% since the beginning of May. At the beginning of June, the company reported positive clinical trial results for an H1N1 influenza vaccine. If the vaccine proves effective against H1N1, IBIO stock may jump.
Pluristem Therapeutics, Inc.
One of the biggest gainers on this list is bio-therapeutic company Pluristem Therapeutics, Inc. (NASDAQ: PSTI ), up 157% in the last 12 months and 108% year-to-date. PSTI has tripled its 52-week low of 98 cents.
YM BioSciences, Inc.
YM BioSciences (AMEX: YMI ) is a biopharmaceutical company that focuses on cancer patients. YMI stock is up 16% year-to-date and 127% in the last 12 months. Buy this stock just under $3.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACAD has more than doubled its 52-week low of 65 cents but, based on my fundamental and quatitative screens, remains an affordable stock for penny-stock investors, with more upside AEterna Zentaris, Inc. Oncology and endocrine therapy drug development company AEterna Zentaris, Inc. (NASDAQ: AEZS ) is up 27% year-to-date and 81% in the last 12 months. If you're looking to play biotech penny stocks, consider these seven picks: Acadia Pharmaceuticals Focusing on treatments for central nervous system disorders, Acadia Pharmaceuticals (NASDAQ: ACAD ) has experienced a 31% increase in stock value year-to-date. That's why I screen for stocks that trade for more than $1 but less than $5, with a $100 million market cap or greater and more than one year on a major exchange. | If you're looking to play biotech penny stocks, consider these seven picks: Acadia Pharmaceuticals Focusing on treatments for central nervous system disorders, Acadia Pharmaceuticals (NASDAQ: ACAD ) has experienced a 31% increase in stock value year-to-date. ACAD has more than doubled its 52-week low of 65 cents but, based on my fundamental and quatitative screens, remains an affordable stock for penny-stock investors, with more upside AEterna Zentaris, Inc. Oncology and endocrine therapy drug development company AEterna Zentaris, Inc. (NASDAQ: AEZS ) is up 27% year-to-date and 81% in the last 12 months. Cell Therapeutics, Inc. Cancer treatment company Cell Therapeutics, Inc. (NASDAQ: CTIC ) has jumped 50% since mid-March. | If you're looking to play biotech penny stocks, consider these seven picks: Acadia Pharmaceuticals Focusing on treatments for central nervous system disorders, Acadia Pharmaceuticals (NASDAQ: ACAD ) has experienced a 31% increase in stock value year-to-date. ACAD has more than doubled its 52-week low of 65 cents but, based on my fundamental and quatitative screens, remains an affordable stock for penny-stock investors, with more upside AEterna Zentaris, Inc. Oncology and endocrine therapy drug development company AEterna Zentaris, Inc. (NASDAQ: AEZS ) is up 27% year-to-date and 81% in the last 12 months. Of course, penny stocks by nature are aggressive, and biotech penny stocks are just as risky. | If you're looking to play biotech penny stocks, consider these seven picks: Acadia Pharmaceuticals Focusing on treatments for central nervous system disorders, Acadia Pharmaceuticals (NASDAQ: ACAD ) has experienced a 31% increase in stock value year-to-date. ACAD has more than doubled its 52-week low of 65 cents but, based on my fundamental and quatitative screens, remains an affordable stock for penny-stock investors, with more upside AEterna Zentaris, Inc. Oncology and endocrine therapy drug development company AEterna Zentaris, Inc. (NASDAQ: AEZS ) is up 27% year-to-date and 81% in the last 12 months. Of course, penny stocks by nature are aggressive, and biotech penny stocks are just as risky. |
36330.0 | 2023-12-15 00:00:00 UTC | Aurora Cannabis: Bull vs. Bear | ACB | https://www.nasdaq.com/articles/aurora-cannabis%3A-bull-vs.-bear | nan | nan | Aurora Cannabis (NASDAQ: ACB) shareholders have been on a wild ride, and there just might be more in store. Over the last six months, the stock catapulted up more than 60%, only to crash and lose 18% for the period.
Now, the question is whether investors should expect another rocket flight, another crash, or something else altogether. Let's hear one argument from the bulls, and one from the bears, to hash out this issue.
What the bulls are saying
After a years-long battle against its operational inefficiencies fought amid the collapse of the Canadian marijuana market, the bulls are right to argue that Aurora's worst times are almost certainly in the past. In its fiscal second quarter of 2024 ended Sept. 30, it reported positive operating income of around 2 million Canadian dollars ($1.5 million) after registering CA$63 million in sales. Before Q2, it last had positive operating income in 2016.
Management is quick to point to the fact that the company's progress in reducing its expenses has been immense, claiming a sum of CA$400 million in annual cost savings over the last three years. It's true that a lot of those cost reductions were won by scaling down and selling off its marijuana production facilities, but it can probably scale back up gradually if it's necessary.
An additional CA$40 million in savings are on the docket for the rest of its 2024 fiscal year. If that happens, it will create the conditions for Aurora to be consistently profitable. The company's goal is to start generating free cash flow (FCF), or what's left from cash flow after business investments and capital expenditures, before the end of 2024, which looks realistic. And in case it isn't obvious, going from burning cash to generating cash is bullish for share prices.
The bull thesis also points to the inexpensive valuation of Aurora's shares. Its price-to-book (P/B) ratio is a scant 0.6. At such a low valuation multiple, there's a significant probability that the market is not assigning an appropriate value to its assets. For a deeply unprofitable business that's burning money, the valuation would fit like a glove, but that doesn't accurately describe Aurora any more. Bulls hope that the market will eventually notice and update its outlook, driving share prices higher in the process.
The bears are worth listening to
The bears don't need to dispute any element of the bull thesis to make their case. Instead, they merely need to point to the fact that Aurora's quarterly revenue only grew by 15% over the past five years. In that same period, its shares dropped by more than 99%.
To bears, the idea of this company becoming profitable and throwing off cash is not a compelling reason to invest. Realizing cost savings and operational efficiencies are not a substitute for robust top-line growth, which it does not have. Nor is there much reason to believe that will change. On average, Wall Street analysts expect Aurora's annual revenue to rise by less than 10% in its 2025 fiscal year. Due to the still-sluggish Canadian marijuana market, even that amount of growth might be a struggle to attain.
Another critical issue is the lack of a proven competitive advantage. With no way to retain its market share in the face of competition, there is nothing stopping another player from undercutting its pricing, setting off a race to the bottom that's sure to squeeze margins. There aren't necessarily any public cannabis businesses capable of doing this, but it's still an argument for investing elsewhere.
Finally, in the eyes of the bears, Aurora's discounted valuation is a sign that its shares aren't worth owning, rather than being an opportunity to own them on the cheap.
Who's right?
At the moment, the bear case is more compelling, though that might change over the coming quarters. If you're looking for a growth stock, this isn't it, at least not until it demonstrates that it can actually increase its sales at a faster-than-average pace instead of a slower-than-average pace. It's also not a great option for bargain-seeking investors because there are lower-risk stocks out there for marginally higher valuations.
There is, however, a solid chance that over the next 18 months Aurora will make a turnaround in which it transitions to slowly growing after becoming durably profitable. Under those conditions, the super cheap valuation of its shares will likely be temporary. But even so, the chances are good that a typical blue chip stock would grow faster and be a better investment, despite its shares being pricier.
Should you invest $1,000 in Aurora Cannabis right now?
Before you buy stock in Aurora Cannabis, consider this:
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) shareholders have been on a wild ride, and there just might be more in store. Management is quick to point to the fact that the company's progress in reducing its expenses has been immense, claiming a sum of CA$400 million in annual cost savings over the last three years. For a deeply unprofitable business that's burning money, the valuation would fit like a glove, but that doesn't accurately describe Aurora any more. | Aurora Cannabis (NASDAQ: ACB) shareholders have been on a wild ride, and there just might be more in store. In its fiscal second quarter of 2024 ended Sept. 30, it reported positive operating income of around 2 million Canadian dollars ($1.5 million) after registering CA$63 million in sales. On average, Wall Street analysts expect Aurora's annual revenue to rise by less than 10% in its 2025 fiscal year. | Aurora Cannabis (NASDAQ: ACB) shareholders have been on a wild ride, and there just might be more in store. Finally, in the eyes of the bears, Aurora's discounted valuation is a sign that its shares aren't worth owning, rather than being an opportunity to own them on the cheap. Before you buy stock in Aurora Cannabis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Aurora Cannabis wasn't one of them. | Aurora Cannabis (NASDAQ: ACB) shareholders have been on a wild ride, and there just might be more in store. The bull thesis also points to the inexpensive valuation of Aurora's shares. To bears, the idea of this company becoming profitable and throwing off cash is not a compelling reason to invest. |
36331.0 | 2023-12-14 00:00:00 UTC | Forget Aurora Cannabis: 1 Cannabis Stock With Far Better Prospects | ACB | https://www.nasdaq.com/articles/forget-aurora-cannabis%3A-1-cannabis-stock-with-far-better-prospects | nan | nan | Point ... counterpoint.
One week ago, I made the case for why Canadian cannabis stock Aurora Cannabis (NASDAQ: ACB) could be "a screaming buy" right now. And I have to say, the case seems strong.
Aurora Cannabis is just coming off a quarter in which it reported 30% year-over-year sales growth, a quarter in which it reported its highest level of gross profitability since mid-2020, and two straight quarters of historic levels of ... well, not profits exactly, but historically low losses on its business. Furthermore, with a plan to cut costs by a further $40 million per year, Aurora Cannabis might be able to push the company over the threshold to honest-to-goodness positive GAAP profits in 2025 or even 2024.
What's more, even if Aurora Cannabis fails to achieve profitability this year, or even next year, the company's management has already promised something arguably even more significant: To generate positive free cash flow in 2024, such that the company would become internally self-funding, and no longer need to take out loans, or sell stock, in order to keep itself solvent.
Long story short, there are many reasons to believe that Aurora Cannabis is on the cusp of becoming a great marijuana investment story.
But if you'll forgive me for pointing this out, there's one marijuana stock that I think is even better.
Introducing Green Thumb Industries
Along with its fellow Canadian cannabis company Canopy Growth (NASDAQ: CGC), which bears the inspired Toronto Stock Exchange ticker "WEED," Aurora Cannabis is probably one of the two best-known marijuana stocks on the market. With only $37 million in negative free cash flow so far this year, it's also burning a whole lot less cash than Canopy Growth (which has burned through $170 million).
And with its promise to turn free cash flow-positive in 2024, Aurora Cannabis appears well positioned to outperform its peer in coming years.
Yet even so, neither well-known Aurora Cannabis nor Canopy Growth strike me as the absolute best cannabis stock to own right now. Instead of either of these Nasdaq-listed Canadian stocks, I see a whole lot more potential in a lesser-known marijuana company that is listed in Canada, but headquartered in the United States -- Chicago-owned and operated Green Thumb Industries (OTC: GTBIF).
Compare the companies and you'll quickly see why. Whereas both Aurora Cannabis and Canopy Growth are still struggling to achieve positive earnings and positive free cash flow, Green Thumb has already achieved both these goals. For three straight years, from 2020 to 2022, it reported positive GAAP profits. (The company was also profitable last quarter, and analyst forecasts see positive earnings again through the end of this year.) In 2020, its free cash flow was also positive, and it came close in both 2021 and 2022.
Green Thumb is looking even closer today, with trailing 12-month results showing it just $20 million away from FCF-breakeven. And if analysts are right in their guesses, Green Thumb will succeed in regaining positive free cash flow status by next year at the latest. Forecasts compiled by S&P Global Market Intelligence, for example, show the company generating positive cash profits of $114 million in 2024 -- then more than doubling that number to pass $248 million in 2027.
Valuing Green Thumb Industries
At a valuation of $2.8 billion, Green Thumb currently trades for just 11 times 2027 free cash flow -- and barely 9 times 2027 free cash flow.
Admittedly, the stock looks a bit pricey at 64 times this year's forecast earnings. But when it comes to having "far better prospects" than Aurora Cannabis, which hasn't yet definitively proven it can turn a profit, I'd say that Green Thumb -- which has proven this -- probably fits that bill.
The wild card: Legalization
Final point: For investors who aren't yet entirely convinced that the U.S. government will never get around to officially legalizing marijuana at the federal level, I think it almost goes without saying that a U.S. company like Green Thumb is better positioned to capitalize upon such a development than foreign-based companies like Aurora Cannabis or Canopy Growth.
For one thing, there's the geographic proximity. For another, Green Thumb boasts a superior market capitalization of $2.7 billion -- making it three times bigger than Aurora Cannabis and Canopy Growth combined. For a third, Green Thumb already boasts annual sales in excess of $1 billion (versus about $600 million total between Aurora and Canopy). That's a pretty impressive achievement for a company selling marijuana in a country where it's "illegal," compared to two other companies selling it in places where it's "legal."
If it's prospects you want, just imagine how much more marijuana Green Thumb Industries will be able to sell, once it finally becomes legal to sell it on the U.S. national level.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Green Thumb Industries. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One week ago, I made the case for why Canadian cannabis stock Aurora Cannabis (NASDAQ: ACB) could be "a screaming buy" right now. Furthermore, with a plan to cut costs by a further $40 million per year, Aurora Cannabis might be able to push the company over the threshold to honest-to-goodness positive GAAP profits in 2025 or even 2024. Instead of either of these Nasdaq-listed Canadian stocks, I see a whole lot more potential in a lesser-known marijuana company that is listed in Canada, but headquartered in the United States -- Chicago-owned and operated Green Thumb Industries (OTC: GTBIF). | One week ago, I made the case for why Canadian cannabis stock Aurora Cannabis (NASDAQ: ACB) could be "a screaming buy" right now. Aurora Cannabis is just coming off a quarter in which it reported 30% year-over-year sales growth, a quarter in which it reported its highest level of gross profitability since mid-2020, and two straight quarters of historic levels of ... well, not profits exactly, but historically low losses on its business. Whereas both Aurora Cannabis and Canopy Growth are still struggling to achieve positive earnings and positive free cash flow, Green Thumb has already achieved both these goals. | One week ago, I made the case for why Canadian cannabis stock Aurora Cannabis (NASDAQ: ACB) could be "a screaming buy" right now. What's more, even if Aurora Cannabis fails to achieve profitability this year, or even next year, the company's management has already promised something arguably even more significant: To generate positive free cash flow in 2024, such that the company would become internally self-funding, and no longer need to take out loans, or sell stock, in order to keep itself solvent. Introducing Green Thumb Industries Along with its fellow Canadian cannabis company Canopy Growth (NASDAQ: CGC), which bears the inspired Toronto Stock Exchange ticker "WEED," Aurora Cannabis is probably one of the two best-known marijuana stocks on the market. | One week ago, I made the case for why Canadian cannabis stock Aurora Cannabis (NASDAQ: ACB) could be "a screaming buy" right now. What's more, even if Aurora Cannabis fails to achieve profitability this year, or even next year, the company's management has already promised something arguably even more significant: To generate positive free cash flow in 2024, such that the company would become internally self-funding, and no longer need to take out loans, or sell stock, in order to keep itself solvent. With only $37 million in negative free cash flow so far this year, it's also burning a whole lot less cash than Canopy Growth (which has burned through $170 million). |
36332.0 | 2023-12-12 00:00:00 UTC | If You Invested $15,000 in Aurora Cannabis in 2020, This Is How Much You Would Have Today | ACB | https://www.nasdaq.com/articles/if-you-invested-%2415000-in-aurora-cannabis-in-2020-this-is-how-much-you-would-have-today | nan | nan | Investing in Aurora Cannabis (NASDAQ: ACB) generally hasn't paid off for investors. But what if you waited until 2020, when the markets briefly crashed and valuations were incredibly low for many stocks? Would buying Aurora at the time have been a good move for investors? Here's a look at what it was trading at back then, and what an investment in the cannabis producer in March 2020 would be worth today.
How Aurora Cannabis stock has performed since March 2020
In March 2020, news of the coronavirus spreading sent the markets into a panic. Although the market plunge was short-lived, it temporarily sent stocks to lows that would allow opportunistic investors to cash in and and buy on the cheap.
Shares of Aurora Cannabis reached a low of $0.60 on March 18, 2020. If you invested $15,000 in the stock back then, you would have owned 25,000 shares of the cannabis company -- until its reverse split. Due to its low price and the need to maintain a share price of more than $1, Aurora consolidated its shares on a 1-for-12 basis a few months later. On May 11, those 25,000 shares would have been traded in for just 2,083 shares. Aurora's stock price, however, would go up as a result of the reverse split.
Today, the stock trades at around $0.48 per share. That means even though it consolidated shares, the stock price is still worth less than what it was back in March 2020. The value of those 2,083 shares today would be about $1,000, equaling a loss of 93%.
The company has been making progress
Although Aurora's stock has continued to fall in recent years, that doesn't mean the company hasn't been making progress in improving its financials. Next year, for instance, Aurora is expecting to achieve positive free cash flow. That's no small accomplishment for a cannabis business, where cash burn is typically the norm.
And in November, it posted an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) profit for a fourth consecutive quarter. The company has diversified its operations by acquiring plant propagation business Bevo Farms, which now accounts for more than 11% of Aurora's net revenue, which totaled 63.4 million Canadian dollars ($50 million) for the period ended Sept. 30.
A poor industry outlook paired with Aurora's inconsistent revenue growth, particularly from its marijuana operations, are a couple of key reasons investors remain bearish on the stock today.
Data source: YCharts
Plus, poor macroeconomic conditions, including high interest rates, mean that investors have better and safer investment options to choose from (e.g., bonds). All that makes stocks, particularly risky ones like Aurora, less desirable.
If the market conditions were different, Aurora's stock could be performing better given its improved financials.
Is Aurora Cannabis stock a better buy today?
Aurora Cannabis hasn't been a good buy in recent years and it's hard to expect things will be better in the future. The company still faces plenty of competition in the marijuana industry, and while it financial results have improved, the lack of consistent growth is a problem. And without significant opportunities on the horizon, investors are better off pursuing safer growth stocks instead of Aurora.
Ultimately, there isn't a reason to be bullish on the stock right now. Without a compelling reason and a growth catalyst to suggest that it will be able to generate consistent revenue while also posting a strong bottom line, investors are better off steering clear of Aurora because even buying during a market crash hasn't proven to be a good strategy for investors.
Should you invest $1,000 in Aurora Cannabis right now?
Before you buy stock in Aurora Cannabis, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Aurora Cannabis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investing in Aurora Cannabis (NASDAQ: ACB) generally hasn't paid off for investors. And in November, it posted an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) profit for a fourth consecutive quarter. A poor industry outlook paired with Aurora's inconsistent revenue growth, particularly from its marijuana operations, are a couple of key reasons investors remain bearish on the stock today. | Investing in Aurora Cannabis (NASDAQ: ACB) generally hasn't paid off for investors. The company has been making progress Although Aurora's stock has continued to fall in recent years, that doesn't mean the company hasn't been making progress in improving its financials. Aurora Cannabis hasn't been a good buy in recent years and it's hard to expect things will be better in the future. | Investing in Aurora Cannabis (NASDAQ: ACB) generally hasn't paid off for investors. The company has been making progress Although Aurora's stock has continued to fall in recent years, that doesn't mean the company hasn't been making progress in improving its financials. Before you buy stock in Aurora Cannabis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Aurora Cannabis wasn't one of them. | Investing in Aurora Cannabis (NASDAQ: ACB) generally hasn't paid off for investors. Shares of Aurora Cannabis reached a low of $0.60 on March 18, 2020. Is Aurora Cannabis stock a better buy today? |
36333.0 | 2023-12-12 00:00:00 UTC | 2024 Could Be the Year of the Cannabis Stock Comeback. Here's How to Invest. | ACB | https://www.nasdaq.com/articles/2024-could-be-the-year-of-the-cannabis-stock-comeback.-heres-how-to-invest. | nan | nan | With the total return of AdvisorShares Pure US Cannabis ETF falling by 27% during the last 12 months, badly underperforming the wider market's growth of 22%, cannabis stocks are still hurting, continuing their years-long losing streak. With lingering issues with operational efficiency, a brutal bear market for stocks in 2022, and historical turbulence in the market for marijuana, investors in the industry are probably somewhere between losing what's left of their patience and pleading for salvation.
Will shareholders get much-needed relief in 2024, marking the comeback of the marijuana industry as a whole, or is there more pain in store? The future is uncertain, but having a game plan for how to invest will make it easier to navigate whatever happens next.
North American companies and markets are crawling closer to turning the corner
To make money, vertically integrated cannabis companies need to cultivate marijuana, harvest it, process or manufacture it into the desired retail forms, distribute those products to outlets, and then draw consumers in via advertising. If consumers want more of those products, prices rise. But if there is a large volume of products and an insufficient number of buyers, prices fall, typically taking out the profit margins of producers in the process. And that's exactly what has plagued the North American cannabis industry over the last few years.
While prices per unit of cannabis are still well below their levels in yesteryear, there are signs that a recovery is underway, at least in Canada. Demand isn't necessarily growing, but manufacturers have trimmed their supply capacity and reduced their overhead significantly to rightsize their operations relative to demand. Over the past year, the trailing-12-month operating margins of companies like Tilray Brands, Aurora Cannabis, and Canopy Growth have started to slowly improve, though all three are still losing more money.
Nonetheless, by the end of the 2024, Aurora Cannabis anticipates that it will be producing free cash flow (FCF), or what's left of cash flow after capital expenditures and other business investments. Tilray is also signaling that in its fiscal 2024, which is already underway, it should be generating positive FCF on an adjusted basis. Another piece of good news is that the two companies are back to adding to their top lines year over year, meaning that they have a real chance of breaking the trend of stagnant or declining revenue, which was a feature of the last two years. So the coming quarters could well be characterized by their reaping the benefits of operational improvements and recovering demand. And with a major catalyst like cannabis legalization potentially in play, it's even possible that the U.S.-based businesses might soar soon enough as well.
Valuations are looking attractive, but it might not be enough
Aside from a few of the big Canadian companies potentially turning a corner and generating profits or cash flow, valuation is another sign that cannabis stocks are ripe for a comeback. Right now, the broad market's price-to-sales (P/S) ratio is 2.5. Check out this chart:
Data source: YCharts
As you can see, valuations aren't nearly as high as they were before, and now there might be bargains afoot for enterprising stock buyers. That could be a driver for rising share prices, especially when considering the other positive dynamics at play. But it isn't exactly a guarantee that 2024 will be a great year for cannabis stocks, because there isn't one.
A few critical barriers remain in the way of the cannabis industry's return to good times for shareholders. The most obvious obstacle is marijuana prohibition, which continues to be the law at the federal level of the U.S. in addition to ban lingering for longer than anticipated in the European Union. An additional and closely related challenge is lack of access to capital and traditional banking services. If cannabis banking legislation being considered by Congress is enacted in 2024, it could be a huge boon that sparks the industry's revitalization in the U.S. On the other hand, similar bills have failed in the past without much fanfare, so it might take a few more attempts.
So should you invest in a basket of cannabis stocks in advance of 2024? Probably not. Though there's a real chance of a revival next year, the risk of investors experiencing more of the same is too high right now to bother making more than one investment. Stick to individual businesses that are on track to be profitable soon, and only consider them if the rest of your portfolio is already adequately diversified because they remain quite risky, and are not appropriate for most investors. Then, if you do decided to buy, be ready to hold your shares for years, just in case that's how long it takes.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Over the past year, the trailing-12-month operating margins of companies like Tilray Brands, Aurora Cannabis, and Canopy Growth have started to slowly improve, though all three are still losing more money. The most obvious obstacle is marijuana prohibition, which continues to be the law at the federal level of the U.S. in addition to ban lingering for longer than anticipated in the European Union. If cannabis banking legislation being considered by Congress is enacted in 2024, it could be a huge boon that sparks the industry's revitalization in the U.S. On the other hand, similar bills have failed in the past without much fanfare, so it might take a few more attempts. | Over the past year, the trailing-12-month operating margins of companies like Tilray Brands, Aurora Cannabis, and Canopy Growth have started to slowly improve, though all three are still losing more money. Nonetheless, by the end of the 2024, Aurora Cannabis anticipates that it will be producing free cash flow (FCF), or what's left of cash flow after capital expenditures and other business investments. Valuations are looking attractive, but it might not be enough Aside from a few of the big Canadian companies potentially turning a corner and generating profits or cash flow, valuation is another sign that cannabis stocks are ripe for a comeback. | With the total return of AdvisorShares Pure US Cannabis ETF falling by 27% during the last 12 months, badly underperforming the wider market's growth of 22%, cannabis stocks are still hurting, continuing their years-long losing streak. North American companies and markets are crawling closer to turning the corner To make money, vertically integrated cannabis companies need to cultivate marijuana, harvest it, process or manufacture it into the desired retail forms, distribute those products to outlets, and then draw consumers in via advertising. See the 10 stocks *Stock Advisor returns as of 12/11/2023 Alex Carchidi has no position in any of the stocks mentioned. | If consumers want more of those products, prices rise. Over the past year, the trailing-12-month operating margins of companies like Tilray Brands, Aurora Cannabis, and Canopy Growth have started to slowly improve, though all three are still losing more money. But it isn't exactly a guarantee that 2024 will be a great year for cannabis stocks, because there isn't one. |
36334.0 | 2023-12-10 00:00:00 UTC | Could Aurora Cannabis Be a Screaming Buy Right Now? | ACB | https://www.nasdaq.com/articles/could-aurora-cannabis-be-a-screaming-buy-right-now | nan | nan | With a share price down 99.5% from its early 2019 highs, $225 million in sales, and $818 million in annual losses, on the surface at least, Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB) stock does not look much like a screaming buy right now.
But a lot of things could change for Aurora Cannabis in 2024.
And if these things do change, then now really might be the right time to buy Aurora Cannabis.
Aurora Cannabis by the numbers
Let's start with where things stand.
Aurora Cannabis reported earnings for the second quarter of its fiscal 2024, ended Sept. 30, 2023, in November. The company recorded $46.9 million in sales (as converted into U.S. dollars), spent $21.4 million on cost of goods sold, and thus booked $25.5 million in gross profit -- its highest level of gross profitability since mid-2020.
Operating costs for the company in fiscal Q2 were $27.6 million, eating up all the gross profit and leaving Aurora Cannabis with an operating loss -- but this was its smallest operating loss since mid-2017, back before marijuana was legalized for sale in Canada. What's more, fiscal Q1 losses were the second smallest since mid-2017. So from this perspective, at least, things really do appear to be trending up for Aurora Cannabis, with two straight quarters of record-low and shrinking losses.
CEO Miguel Martin actually found it hard to contain his enthusiasm about the results, saying that with sales up 30% year over year and profits knocking on the door of breakeven, fiscal 2024 already looks to be the company's "strongest fiscal year to date."
Already, Aurora Cannabis has succeeded in cutting 400 million Canadian dollars (about $295 million) out of its cost structure. With plans to cut CA$40 million ($30 million) more this year, and more cash than debt on the balance sheet (minimizing interest expense) there's every opportunity for the company to earn its first net profit in fiscal 2024.
And yet, if that happens, it may come as a complete surprise to Wall Street.
Analysts are always the last to know
Analysts polled by S&P Global Market Intelligence are still predicting a negative income year (negative $0.09 per share) for Aurora Cannabis in fiscal 2024. They think the company will lose money next year as well ($0.03 per share) and only break even in fiscal 2026 -- before finally earning a profit, according to generally accepted accounting principles (GAAP), of $0.03 per share in 2027.
Granted, it's still up in the air whether Aurora Cannabis will be able to earn a profit this year. Losing more than $21 million in Q1 didn't get the company off to a great start, and the company continued losing money in Q2. With management forecasting Q3 revenue "largely similar" to Q2, furthermore, Aurora will probably lose at least a little money next quarter as well -- unless cost-cutting saves the day.
But even so, even if Aurora Cannabis does miss profitability this year by the skin of its teeth, things do seem to be trending higher, putting profitability within reach for fiscal 2025. Indeed, Aurora Cannabis management is on record promising to deliver positive free cash flow next year, and if it does that, actual GAAP profitability shouldn't be too far behind.
This is a result Wall Street is most definitely not expecting.
The wild card: Legalization
Now on top of all the above, there's the potential for marijuana to be legalized in 2024. I know, I know -- people have been promising marijuana legalization was right around the corner ever since then-VP hopeful Kamala Harris basically promised the drug would be legalized back in 2020. But recent events in Washington, D.C., suggest this time could be different.
In August, the Department of Health and Human Services (HSS) recommended that the U.S. Drug Enforcement Agency (DEA) relax regulations on marijuana use. Just weeks later, President Joe Biden came out in favor of legalizing at least medical marijuana. Meanwhile in Congress, legislation to legalize banks providing financial services to marijuana companies, as well as legalize the drug itself, are proceeding in fits and starts.
After getting hopes up -- and dashed -- multiple times in recent years, investors in marijuana stocks are probably right to be cautious about betting that "this time will be different," and that legalization will finally happen in 2024. If it does happen, however, at the same time as Aurora Cannabis is finally getting its financial house in order, the profits could be tremendous.
Granted, a lot of things need to go right for this to happen. But even so, the fact remains that if these things do go right, Aurora Cannabis stock could be a screaming buy right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With a share price down 99.5% from its early 2019 highs, $225 million in sales, and $818 million in annual losses, on the surface at least, Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB) stock does not look much like a screaming buy right now. With management forecasting Q3 revenue "largely similar" to Q2, furthermore, Aurora will probably lose at least a little money next quarter as well -- unless cost-cutting saves the day. Indeed, Aurora Cannabis management is on record promising to deliver positive free cash flow next year, and if it does that, actual GAAP profitability shouldn't be too far behind. | With a share price down 99.5% from its early 2019 highs, $225 million in sales, and $818 million in annual losses, on the surface at least, Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB) stock does not look much like a screaming buy right now. Operating costs for the company in fiscal Q2 were $27.6 million, eating up all the gross profit and leaving Aurora Cannabis with an operating loss -- but this was its smallest operating loss since mid-2017, back before marijuana was legalized for sale in Canada. After getting hopes up -- and dashed -- multiple times in recent years, investors in marijuana stocks are probably right to be cautious about betting that "this time will be different," and that legalization will finally happen in 2024. | With a share price down 99.5% from its early 2019 highs, $225 million in sales, and $818 million in annual losses, on the surface at least, Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB) stock does not look much like a screaming buy right now. Operating costs for the company in fiscal Q2 were $27.6 million, eating up all the gross profit and leaving Aurora Cannabis with an operating loss -- but this was its smallest operating loss since mid-2017, back before marijuana was legalized for sale in Canada. But even so, even if Aurora Cannabis does miss profitability this year by the skin of its teeth, things do seem to be trending higher, putting profitability within reach for fiscal 2025. | With a share price down 99.5% from its early 2019 highs, $225 million in sales, and $818 million in annual losses, on the surface at least, Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB) stock does not look much like a screaming buy right now. And if these things do change, then now really might be the right time to buy Aurora Cannabis. They think the company will lose money next year as well ($0.03 per share) and only break even in fiscal 2026 -- before finally earning a profit, according to generally accepted accounting principles (GAAP), of $0.03 per share in 2027. |
36335.0 | 2023-12-09 00:00:00 UTC | 2 Popular Stocks to Avoid Like the Plague in 2024 and Beyond | ACB | https://www.nasdaq.com/articles/2-popular-stocks-to-avoid-like-the-plague-in-2024-and-beyond | nan | nan | One famous investing maxim advises to buy low and sell high. That's sage advice, but not all stocks are worth investing in while they are down. If they don't go up, you won't have profited from the advice.
Take, for instance, Aurora Cannabis (NASDAQ: ACB), a leader in the Canadian pot market, and Biogen (NASDAQ: BIIB), a notable biotech. Both have grabbed plenty of headlines in recent years, both have failed to keep pace with the market in 2023, and neither seems to have strong prospects.
Aurora Cannabis
Aurora Cannabis has consistently been one of the most talked-about stocks in the Canadian pot market since recreational adult use became legal some five years ago. However, the marijuana grower has also been a disappointment, with inconsistent revenue growth, persistent net losses, failure to partner with a larger company, and financial issues related to share dilution.
Aurora Cannabis looks to be turning the corner, at least on the surface. The company's latest quarterly update in early November, for the second quarter of its fiscal year 2024, was pretty good. Revenue of 63.4 million Canadian dollars increased by 30.5% year over year. Adjusted gross earnings before interest, taxes, depreciation, and amortization (EBITDA) of CA$3.4 million was vastly better than negative EBITDA of CA$6.1 million reported in the year-ago period.
But these results had nothing to do with the Canadian recreational marijuana market, which remains deadweight on its revenue growth. Instead, Aurora's top line grew due to its medical cannabis business, which operates in Canada and several countries abroad, including the U.K., Australia, and Germany. Now for the million-dollar question: Can Aurora Cannabis maintain this momentum? On the one hand, management promised to be free-cash-flow-positive for the first time in calendar year 2024.
On the other hand, Aurora's revenue has fluctuated too much over the past few years for investors to trust that it will remain northbound for good this time.
ACB Revenue (Quarterly) data by YCharts
Even if it does, and that's a big if, Aurora Cannabis remains unprofitable. Adjusted EBITDA profitability is merely a step in the direction of profits. Further, the company will continue facing all the struggles it has encountered in the Canadian market, and competition abroad should heat up, too.
None of that would be a deal-breaker for a well-established and consistently profitable corporation, but that doesn't describe Aurora Cannabis. Given its track record, the company would have to do a lot to get back into investors' good graces. In my view, even positive free cash flow next year wouldn't do it. That's why it's best to stay a safe distance away from Aurora Cannabis for a while.
2. Biogen
In the past three years, Biogen has launched not one but two Alzheimer's disease (AD) therapies. That is a significant achievement that generated plenty of buzz because scores of potential AD treatments have failed to make it to this stage. Biogen's feat -- accomplished in collaboration with Japan-based Esai -- is nothing to sneeze at.
However, there are serious issues with the company. First, Biogen's Aduhelm, the first of these AD treatments to get the backing of the U.S. Food and Drug Administration (FDA), flopped because of lingering concerns surrounding its efficacy. Many physicians decided not to prescribe it. Biogen's second AD treatment, Leqembi, which got the nod from the FDA in July, won't have that problem.
Still, some issues remain with the company, even with Leqembi in its lineup. For one, this new AD therapy will be a weight on its bottom line this year as commercialization expenses will exceed revenue. Meanwhile, Biogen's financial results have been subpar at best over the past couple of years as some of its older medicines encountered generic competition.
BIIB Revenue (Quarterly) data by YCharts
The biotech turned to an acquisition to offset all these issues. In late September, it completed the buyout of Reata Pharmaceuticals for $7.3 billion in cash. With that, Biogen now owns a therapy for Friedreich's ataxia called Skyclarys, which earned the green light from the FDA in February. Friedreich's ataxia is a rare genetic progressive disease that causes damage to patients' nervous systems and leads to a range of symptoms, including coordination and movement problems.
Skyclarys, the first FDA-approved treatment for Friedreich's ataxia, could generate as much as $1.5 billion in annual sales by 2030, according to some analysts. However, it only has a target market of roughly 4,500 patients in the U.S. Further, the acquisition of Reata Pharmaceuticals won't positively contribute to Biogen's bottom line until 2025.
There are many moving parts and some substantial uncertainty regarding Biogen's prospects. While the biotech could turn things around for good, that could take a while. In the meantime, the drugmaker will have to show solid and consistent financial results along with clinical and regulatory progress. For now, it is best to stay on the sidelines. There are much better biotech stocks to buy.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool recommends Biogen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Take, for instance, Aurora Cannabis (NASDAQ: ACB), a leader in the Canadian pot market, and Biogen (NASDAQ: BIIB), a notable biotech. ACB Revenue (Quarterly) data by YCharts Even if it does, and that's a big if, Aurora Cannabis remains unprofitable. However, the marijuana grower has also been a disappointment, with inconsistent revenue growth, persistent net losses, failure to partner with a larger company, and financial issues related to share dilution. | Take, for instance, Aurora Cannabis (NASDAQ: ACB), a leader in the Canadian pot market, and Biogen (NASDAQ: BIIB), a notable biotech. ACB Revenue (Quarterly) data by YCharts Even if it does, and that's a big if, Aurora Cannabis remains unprofitable. BIIB Revenue (Quarterly) data by YCharts The biotech turned to an acquisition to offset all these issues. | Take, for instance, Aurora Cannabis (NASDAQ: ACB), a leader in the Canadian pot market, and Biogen (NASDAQ: BIIB), a notable biotech. ACB Revenue (Quarterly) data by YCharts Even if it does, and that's a big if, Aurora Cannabis remains unprofitable. Aurora Cannabis Aurora Cannabis has consistently been one of the most talked-about stocks in the Canadian pot market since recreational adult use became legal some five years ago. | Take, for instance, Aurora Cannabis (NASDAQ: ACB), a leader in the Canadian pot market, and Biogen (NASDAQ: BIIB), a notable biotech. ACB Revenue (Quarterly) data by YCharts Even if it does, and that's a big if, Aurora Cannabis remains unprofitable. Aurora Cannabis Aurora Cannabis has consistently been one of the most talked-about stocks in the Canadian pot market since recreational adult use became legal some five years ago. |
36336.0 | 2023-12-06 00:00:00 UTC | Is Aurora Cannabis Stock a Buy Now? | ACB | https://www.nasdaq.com/articles/is-aurora-cannabis-stock-a-buy-now-1 | nan | nan | If you're a fan of investing in turnaround plays, Aurora Cannabis (NASDAQ: ACB) is a stock that you should probably know about. The Canadian marijuana company is mapping out a path to ultimately overcome the intense turbulence it encountered over the last couple of years, and if management's guidance proves correct, it may even see its shares begin to appreciate in value.
But at the end of the day, it's still a risky pot stock in the midst of finding its footing, and there are a few potential stumbling blocks ahead. Here's what you need to know about whether to buy the stock or not.
Is this the start of the turnaround?
Aurora shareholders have had a (very) rough few years. The company's shares are down 96% compared to three years ago, and its quarterly revenue is down by 9% in the same period, leaving it with around 63 million Canadian dollars in sales. Multiple factors are to blame, starting with its now-abandoned leave-no-customer-behind strategy, wherein it seriously overbuilt its cannabis production capacity as well as its retail footprint in an attempt to seize as much of the Canadian marijuana market as possible.
At that time, the Canadian cannabis market was booming, with one gram of legal marijuana selling for around CA$6. But as more and more cultivation capacity came online between Aurora and its competitors, eventually there was more product on the market than there was demand. That caused prices to collapse, taking the margins of many companies with it. Aurora and its peers were forced to scale back their operations sharply as a result. Now, with the green shoots of the Canadian market's recovery starting to appear, one gram of cannabis is priced closer to CA$5. An improving price level could thus support recovery of margins and thus potentially synergize with a turnaround wrought from newly efficient operations. It's also making some headway in European markets like Germany, France, Poland, and the U.K., which might drive some faster revenue growth.
Thanks to a couple of years spent scaling down and reducing spending, CEO Miguel Martin maintains that the company will reach positive free cash flow (FCF) sometime in 2024. That looks a lot more possible now than it did a couple of years ago, when its cost-cutting transformation plan was in full swing. In its fiscal Q2, which corresponds to the quarter that closed at the end of September, it reported positive operating income of CA$2 million for the first time since early 2016. But it still lost CA$35 million in cash during the quarter.
At its current pace of spending, the business can sustain that cash burn rate for a while without worry. It still has $129 million in cash, equivalents, and short-term investments, and on Oct. 3 it closed a bought deal stock offering to raise CA$39 million in gross proceeds. Management doesn't think it'll need to pursue any at-the-market share offerings for the medium term. So if you decide to invest, you can be somewhat confident that your shares won't get diluted immediately. And if the company can continue to post positive operating income while finalizing the work of trimming its overhead, real profitability could be just a couple of quarters around the corner. At that point, the stock would likely see its valuation multiples expand, and further earnings growth could start to drive its shares upward.
There's an opportunity shaping up, but it's risky
Now is a more favorable time to buy Aurora Cannabis stock than in the last handful of years. The combination of its still-forming operational efficiency and the potential for rising cannabis prices could make for a steady comeback. It's possible that its shares will eventually fly once the market notices the progress it's made.
But if you aren't comfortable with a risky bet, this isn't the stock for you. The business's turnaround, while looking probable at the moment, is not in any way guaranteed.
Despite owning a bunch of different cannabis brands in different segments of the market, it has not yet demonstrated any competitive advantage with which to retain its market share. Therefore, it will be forced to spend significant amounts on marketing to make inroads in crowded major markets like Canada. Furthermore, it is not positioned to take advantage of cannabis legalization in the U.S. in any way, assuming it happens at all. In other words, its competitors could potentially soon grow rapidly outside of Canada while also crimping Aurora's growth at home.
So is this stock a buy now? For most investors, no, but for those who are highly tolerant of risk, and who like the idea of investing in a turnaround, it could be a good time to start thinking about starting a position.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you're a fan of investing in turnaround plays, Aurora Cannabis (NASDAQ: ACB) is a stock that you should probably know about. The Canadian marijuana company is mapping out a path to ultimately overcome the intense turbulence it encountered over the last couple of years, and if management's guidance proves correct, it may even see its shares begin to appreciate in value. Multiple factors are to blame, starting with its now-abandoned leave-no-customer-behind strategy, wherein it seriously overbuilt its cannabis production capacity as well as its retail footprint in an attempt to seize as much of the Canadian marijuana market as possible. | If you're a fan of investing in turnaround plays, Aurora Cannabis (NASDAQ: ACB) is a stock that you should probably know about. Now, with the green shoots of the Canadian market's recovery starting to appear, one gram of cannabis is priced closer to CA$5. In its fiscal Q2, which corresponds to the quarter that closed at the end of September, it reported positive operating income of CA$2 million for the first time since early 2016. | If you're a fan of investing in turnaround plays, Aurora Cannabis (NASDAQ: ACB) is a stock that you should probably know about. There's an opportunity shaping up, but it's risky Now is a more favorable time to buy Aurora Cannabis stock than in the last handful of years. 10 stocks we like better than Aurora Cannabis When our analyst team has a stock tip, it can pay to listen. | If you're a fan of investing in turnaround plays, Aurora Cannabis (NASDAQ: ACB) is a stock that you should probably know about. Is this the start of the turnaround? An improving price level could thus support recovery of margins and thus potentially synergize with a turnaround wrought from newly efficient operations. |
36337.0 | 2023-12-01 00:00:00 UTC | Why Aurora Cannabis Could Be Active in M&A Again | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-could-be-active-in-ma-again | nan | nan | In recent years, Aurora Cannabis (NASDAQ: ACB) has been trying to slash expenses wherever it could to improve its cash flow and bottom line. This has included closing facilities, cutting staff, and ultimately reducing its position in the consumer cannabis market in Canada.
The efforts have been paying off, as the company has posted stronger results of late, including positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for four consecutive quarters. It even posted a narrow unadjusted profit in its most recent results. And next year the company is projecting it will generate positive free cash flow.
Now that the business is on more solid footing, here's a look at why the cannabis company could be looking at mergers and acquisitions (M&A) in the year ahead.
Aurora Cannabis needs a growth catalyst
In the past, Aurora's problems stemmed from being too aggressive with respect to growth and not caring about its bottom line. These days, however, the company is struggling to consistently increase its top line. While sales did jump by 30% in the quarter ended on Sept. 30, Aurora also benefited from going up against weaker comparisons from the previous year when sales fell by 18%.
For the company to win back growth investors, it's going to need a catalyst to help drive revenue growth on a consistent basis. And M&A could help give the company that boost. Last year it acquired a controlling interest in Bevo Farms, which is a supplier of propagated vegetables. The acquisition has helped diversify Aurora's business model, and last quarter it added 7.2 million Canadian dollars ($5.3 million) to the company's top line -- more than 11% of Aurora's total net revenue of CA$63.4 million. Aurora acquired the company for CA$45 million.
The company is confident enough in its financials to pursue another deal
On Aurora's most recent earnings release, Chief Executive Officer Miguel Martin suggested that the cannabis company is going to be looking at ways to expand its operations through acquisitions. "Our balance sheet is in a strong net cash position to pursue profitable growth opportunities through M&A."
There's no mystery here for investors. Just like with the acquisition of Bevo Farms, Aurora is on the hunt for deals that can be immediately accretive to both its top and bottom lines. What stands out to me is the focus on profitable growth opportunities, rather than simply talking about expanding market share or just revenue growth alone -- which, in the past, has been the norm for not just Aurora, but other cannabis companies as well.
Plenty of opportunities available for Aurora in M&A
Now is an attractive time for Aurora to be looking for acquisitions because many companies have been struggling since early 2022 amid rising interest rates. Aurora can get some good value for its money by pursuing M&A right now.
One thing I wouldn't expect to happen, however, is for the company to acquire another Canadian cannabis producer. That would likely not be a profitable growth opportunity for Aurora. If profitability is indeed a key criteria for the business, then I can see the company looking at diversifying its operations again. One example could be to go into beverages. Rival SNDL, for instance, has bolstered its bottom line by getting into the liquor retail business. Tilray has also been busy acquiring U.S.-based alcohol companies as a way to not only diversify, but expand its reach in the U.S. market.
Aurora could also attempt to acquire a company to expand in international cannabis markets. But finding a profitable cannabis company that can also further its growth opportunities in key international markets may be comparable to looking for a needle in a haystack. If Aurora's looking at M&A, I think it'll do so within North America, and by further expanding outside of cannabis.
Any way for Aurora to expand its business outside of the highly competitive consumer cannabis market could be good news for investors, and that should help widen its margins. However, investors shouldn't expect a large transformative deal worth billions of dollars here. Aurora's management appears to be making smaller, more calculated moves in an effort to bolster its financials, which could be a recipe for success in the long run.
Aurora Cannabis is moving in the right direction, but the stock isn't a buy
If Aurora can find a deal that increases its top line while also strengthening its bottom line, that's the best-case scenario for investors. The company does appear to be on a more positive track with cash flow improving and Aurora reporting adjusted EBITDA profit, but it hasn't made enough progress to be a good investment just yet.
Investors should continue to take a wait-and-see approach with the business. If it decides to make another acquisition in the near future, that could give investors some valuable insight into the company's overall strategy and how it plans to expand its operations, and where its focus might be. For now, however, investors should avoid the stock, as it's still too risky to hold today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent years, Aurora Cannabis (NASDAQ: ACB) has been trying to slash expenses wherever it could to improve its cash flow and bottom line. The efforts have been paying off, as the company has posted stronger results of late, including positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for four consecutive quarters. Any way for Aurora to expand its business outside of the highly competitive consumer cannabis market could be good news for investors, and that should help widen its margins. | In recent years, Aurora Cannabis (NASDAQ: ACB) has been trying to slash expenses wherever it could to improve its cash flow and bottom line. The acquisition has helped diversify Aurora's business model, and last quarter it added 7.2 million Canadian dollars ($5.3 million) to the company's top line -- more than 11% of Aurora's total net revenue of CA$63.4 million. "Our balance sheet is in a strong net cash position to pursue profitable growth opportunities through M&A." | In recent years, Aurora Cannabis (NASDAQ: ACB) has been trying to slash expenses wherever it could to improve its cash flow and bottom line. The acquisition has helped diversify Aurora's business model, and last quarter it added 7.2 million Canadian dollars ($5.3 million) to the company's top line -- more than 11% of Aurora's total net revenue of CA$63.4 million. What stands out to me is the focus on profitable growth opportunities, rather than simply talking about expanding market share or just revenue growth alone -- which, in the past, has been the norm for not just Aurora, but other cannabis companies as well. | In recent years, Aurora Cannabis (NASDAQ: ACB) has been trying to slash expenses wherever it could to improve its cash flow and bottom line. Any way for Aurora to expand its business outside of the highly competitive consumer cannabis market could be good news for investors, and that should help widen its margins. Aurora Cannabis is moving in the right direction, but the stock isn't a buy If Aurora can find a deal that increases its top line while also strengthening its bottom line, that's the best-case scenario for investors. |
36338.0 | 2023-11-30 00:00:00 UTC | Where Will Aurora Cannabis Be in 5 Years? | ACB | https://www.nasdaq.com/articles/where-will-aurora-cannabis-be-in-5-years-0 | nan | nan | The last five years have been downright brutal for the cannabis industry. Pick a cannabis stock and you'll likely find a horrible investment to own during that stretch. Aurora Cannabis (NASDAQ: ACB) has gone from being a promising growth stock to an ultra-risky investment.
However, the good news is that with the company focusing more on cutting costs and becoming leaner, and now also expecting to generate positive free cash flow, its future may actually be getting brighter. Here's what may happen with the business over the next five years.
Aurora will continue its global expansion
One of the ways Aurora Cannabis has been strengthening its business is by focusing on medical-marijuana products. It's a good way to improve its margins and not get into a race to the bottom with other consumer-cannabis producers. CEO Miguel Martin credits its high-margin cannabis business for helping Aurora post a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit for four consecutive quarters. Martin also highlighted record-revenue numbers in Europe and Australia last quarter.
Medical-cannabis net revenue in the most recent quarter, which ended on Sept. 30, totaled 43.8 million Canadian dollars ($32.3 million), which was nearly four times Aurora's consumer-cannabis net revenue of just under CA$12 million ($8.9 million). For Aurora to continue growing over the next five years, I expect the company will work on expanding into more medical markets and potentially going deeper into the ones it is already in today.
That strategy is the soundest for the business moving forward as it could allow Aurora to protect its margins while also finding more opportunities for growth; the company's medical-cannabis net revenue rose by 42% last quarter.
The business will remain unprofitable
Aurora has been profitable on an adjusted EBITDA basis with growing consistency of late, and last quarter, it also hit breakeven with its net income totaling CA$256 thousand. It's a remarkable accomplishment for the company, but it's a bit too early to tell if this will be the start of a new trend or if it was a one-off profit for the business.
The company has been slashing its expenses and reducing its footprint in Canada in recent years to help bring down its expenses. But the challenge ahead is that Aurora is inevitably going to get back to focusing on growth initiatives, and with those come greater operating expenses. If those expenses rise at a higher rate than revenue, the result could be the bottom line falling back into the red.
Given that I expect Aurora will continue to spend on growth, I wouldn't hold out too much hope of this being a profitable business five years from now.
Aurora's dilution streak will continue
One of the most frustrating parts for Aurora Cannabis investors has undoubtedly been the dilution. Over the years, the company has regularly relied on stock offerings to fund its operations.
ACB Shares Outstanding data by YCharts.
If the company can achieve its goal of achieving positive free cash flow in 2024, that could be a positive sign that it may be moving in the right direction and that the business will be self-sufficient. But that's not something I would expect to happen. Even if the company achieves positive free cash flow, it may still need to use cash to pursue other growth opportunities or acquisitions in a bid to grow its top line.
There's an outside chance the dilution will end, but it would be a shock if Aurora's financials improved to the point it didn't need to raise cash anymore; it's not a scenario I would count on happening.
A buyout could be the most likely scenario
As Aurora cleans up its financials, focuses on profitability, and slowly shifts away from the consumer-cannabis business, I suspect it may be trying to make itself a more attractive acquisition target.
If it can replace its consumer-cannabis revenue with international-cannabis revenue, it can fully exit the Canadian consumer-cannabis market within five years and still be at a comparable revenue figure. If it no longer is a consumer-cannabis producer, its margins would be even better, and it would become a more attractive acquisition for a big pharmaceutical company or beverage company looking to expand into the cannabis industry. Even if it's not profitable, Aurora could still be a more desirable cannabis investment than other pot stocks.
Is Aurora Cannabis stock a buy?
Aurora has improved its operations, but make no mistake: There is still plenty of risk with the stock. There isn't one promising market that it's in right now that you can point to and say that it will generate significant growth and make this a stock worth buying.
I expect Aurora will exit the consumer-cannabis business within the next five years, and upon doing so, a larger company will acquire it. But even if that were to happen, that doesn't mean the stock will be a good buy as its valuation may continue to plummet before then.
The net result is that Aurora's stock still isn't worth buying today. Trimming down its operations and focusing on international markets can be a good way for the company to improve its margins, but it's not going to make Aurora the exciting growth stock it once was, nor is it likely to become a profitable business, either.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) has gone from being a promising growth stock to an ultra-risky investment. ACB Shares Outstanding data by YCharts. CEO Miguel Martin credits its high-margin cannabis business for helping Aurora post a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit for four consecutive quarters. | Aurora Cannabis (NASDAQ: ACB) has gone from being a promising growth stock to an ultra-risky investment. ACB Shares Outstanding data by YCharts. Medical-cannabis net revenue in the most recent quarter, which ended on Sept. 30, totaled 43.8 million Canadian dollars ($32.3 million), which was nearly four times Aurora's consumer-cannabis net revenue of just under CA$12 million ($8.9 million). | Aurora Cannabis (NASDAQ: ACB) has gone from being a promising growth stock to an ultra-risky investment. ACB Shares Outstanding data by YCharts. Trimming down its operations and focusing on international markets can be a good way for the company to improve its margins, but it's not going to make Aurora the exciting growth stock it once was, nor is it likely to become a profitable business, either. | Aurora Cannabis (NASDAQ: ACB) has gone from being a promising growth stock to an ultra-risky investment. ACB Shares Outstanding data by YCharts. Is Aurora Cannabis stock a buy? |
36339.0 | 2023-11-28 00:00:00 UTC | 3 Top-Rated Cannabis Stocks That Analysts Are Loving Now | ACB | https://www.nasdaq.com/articles/3-top-rated-cannabis-stocks-that-analysts-are-loving-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cannabis has undoubtedly taken ground within the medical and recreational world. A review of several analyst opinions in different financial sources shows these three companies with good opinions and long-term prospects.
These three top-rated cannabis stocks are having incredible development and growth worth analyzing. Buying stock in these companies can be positive for your portfolio growth in the near future.
Hydrofarm Holdings Group, Inc. (HYFM)
Source: tong patong / Shutterstock
Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is a major player in the world of controlled environment agriculture, specializing in hydroponic equipment and supplies.
The latest Q3 2023 financial report showed a drop in net sales. But a silver lining shows improvement in adjusted gross profit and adjusted EBITDA. Clearly, this indicates a positive trend.
Despite challenges of inventory charges, Hydrofarm Holdings Group, Inc. managed to generate $7.7 million from operations and reported free cash flow of $6.9 million. Also, Hydrofarm is restructuring its U.S. manufacturing facilities to improve efficiency and save costs.
In a strategic move, it has joined forces with CEA Advisors, a global vertical farming consultancy, to expand its presence in the controlled environment agriculture space. And, its business division, Innovative Growers Equipment (IGE), will play a crucial role in the manufacturing and marketing of Growtainers and Growracks in North America.
Recently, HYFM acquired Greenstar Plant Products, Inc., a Canadian nutrient company famous for the Grotek and Gaia Green brands. Hence, this $83 million move adds more firepower to Hydrofarm’s range of high-performance products.
Village Farms International, Inc. (VFF)
Source: bluedog studio / Shutterstock.com
British Columbia-based Village Farms International, Inc. (NASDAQ:VFF) is making waves in the cannabis industry. This company operates in a variety of segments, including Canadian and U.S. cannabis, as well as focusing on fresh produce.
Recently, its financials are showing a positive trend. Impressively, it narrowly consolidated net loss per share and adjusted EBITDA, resulting in healthy cash flow of $8.8 million. Notably, both the Canadian and U.S. cannabis divisions contributed positively to the bottom line. Further, the Canadian sector secured the second largest domestic market share in October.
Beyond the numbers, VFF is proving itself as an example of commitment to the community. For example, its Village Farms Fresh Produce subsidiary partnered with Military Makeover hosted by Montel Williams. They renovated the home of a deserving U.S. Army veteran, Carlos Colón-Ruiz, in Arlington, Texas. Colón-Ruiz, a Purple Heart recipient, received the support he deserved for his sacrifices during his deployment to Afghanistan.
On the innovation front, Pure Sunfarms Corp, a wholly-owned subsidiary, launched an exciting line of Pure Sunfarms High-THC 1g products. After a year of painstaking research and consumer feedback, the revamped offerings feature new hardware and flavors such as Pink Lemonade and Juicy Blueberry. Thus, they are experiencing a whopping 50% increase in demand since launch.
Aurora Cannabis (ACB)
Source: Ralf Liebhold / Shutterstock.com
Highly regarded by analysts, Aurora Cannabis Inc (NASDAQ:ACB) is a leading Canadian company expanding access to cannabis on a global scale.
In fact, its recent financial achievements include a record positive adjusted EBITDA of $3.4 million. Also, ACB boasts a 30% year-over-year (YOY) increase in quarterly net income to $63.4 million. Additionally, global medical cannabis sales drove growth to a substantial 42%.
In response to market demand and investor confidence, they successfully completed a tender offer for common shares, generating approximately CA$38,826,875 in gross proceeds. Including the full exercise of the over-allotment option, it reflects positive sentiment in the company’s future prospects. So, Aurora’s commitment to achieve 2024 positive free cash flow further solidifies its position as a strong investment option.
Also, ACB is taking a strategic step into the Canadian adult-use cannabis market with the introduction of their innovative brand, TASTY’S. Positioned as prioritizing taste, potency, and affordability, TASTY’S aim to distinguish itself in the marketplace. The brand promises highly potent cannabis with exceptional flavors such as blue raspberry, green apple, and watermelon.
Recognizing the growing importance of the pre-roll category, TASTY’S will launch in two main formats of vapes and infused pre-rolls. Pre-rolls with 50% THC and 510 vapes with up to 1,000mg THC are designed to meet the preferences of cannabis enthusiasts.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.
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The post 3 Top-Rated Cannabis Stocks That Analysts Are Loving Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Highly regarded by analysts, Aurora Cannabis Inc (NASDAQ:ACB) is a leading Canadian company expanding access to cannabis on a global scale. Also, ACB boasts a 30% year-over-year (YOY) increase in quarterly net income to $63.4 million. Also, ACB is taking a strategic step into the Canadian adult-use cannabis market with the introduction of their innovative brand, TASTY’S. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Highly regarded by analysts, Aurora Cannabis Inc (NASDAQ:ACB) is a leading Canadian company expanding access to cannabis on a global scale. Also, ACB boasts a 30% year-over-year (YOY) increase in quarterly net income to $63.4 million. Also, ACB is taking a strategic step into the Canadian adult-use cannabis market with the introduction of their innovative brand, TASTY’S. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Highly regarded by analysts, Aurora Cannabis Inc (NASDAQ:ACB) is a leading Canadian company expanding access to cannabis on a global scale. Also, ACB boasts a 30% year-over-year (YOY) increase in quarterly net income to $63.4 million. Also, ACB is taking a strategic step into the Canadian adult-use cannabis market with the introduction of their innovative brand, TASTY’S. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Highly regarded by analysts, Aurora Cannabis Inc (NASDAQ:ACB) is a leading Canadian company expanding access to cannabis on a global scale. Also, ACB boasts a 30% year-over-year (YOY) increase in quarterly net income to $63.4 million. Also, ACB is taking a strategic step into the Canadian adult-use cannabis market with the introduction of their innovative brand, TASTY’S. |
36340.0 | 2023-11-27 00:00:00 UTC | 3 Marijuana Penny Stocks to Buy Before the Cannabis Crazes Ignites Again | ACB | https://www.nasdaq.com/articles/3-marijuana-penny-stocks-to-buy-before-the-cannabis-crazes-ignites-again | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
An end to federal prohibition may be in reach, according to Senate Majority Leader Chuck Schumer. All thanks to bipartisan legislation that could give the industry access to banking services. Plus, he says, “The people are on our side” after Ohio legalized its use, which could be a solid catalyst for marijuana penny stocks.
Even better, according to the Pew Research Center, “An overwhelming majority of United States adults (88%) say either that marijuana should be legal for medical and recreational use (59%) or that it should be legal for medical use only (30%).” We also have to consider that as the presidential elections get closer, we could hear more about potential legalization to garner votes.
That being said, here are some top marijuana penny stocks that could see higher highs.
Marijuana Penny Stocks: Canopy Growth (CGC)
Source: T. Schneider / Shutterstock
Canopy Growth (NASDAQ:CGC) was once one of the hottest cannabis companies in the world.
Nowadays, down about 98% no so much. Still, don’t write it off. Should we eventually see legalization at the federal level, this may be another one of the top marijuana penny stocks that could see higher highs.
Helping, CGC just reported a narrower than expected adjusted loss thanks to cost cuts. Better, as noted by Reuters, “Canopy Growth said it cut another C$54 million in costs during the reported quarter. Its operating expenses were down nearly 80% at C$30.43 million. The company’s adjusted core loss narrowed to C$11.9 million ($8.62 million) for the three months ended Sept. 30, compared with a loss of C$56.4 million a year earlier.”
While it’ll take a lot of patience to see a payday with CGC, give it time.
Curaleaf Holdings (CURLF)
Source: Shutterstock
After finding double bottom support around $2.50, shares of Curaleaf Holdings (OTCMKTS:CURLF) have been showing big signs of life again. Most recently, its Executive Chairman, Boris Jordan, said, “I am very encouraged by the team’s commitment and discipline, and remain bullish for a strong end to 2023 and an exciting 2024.”
Jordan also noted that in the third quarter, CURLF revenues came in a $333 million, with an adjusted EBITDA margin of 23%. He also pointed to an $18 million reduction in inventory, and having $18 million in cash. “With significant near-term state and regulatory catalysts on the horizon, coupled with our proposed up-listing to the Toronto Stock Exchange and our early mover advantage in Europe give us great confidence in Curaleaf’s future,” he added.
In short, it’s another one that’ll take some patience, and legalization.
Aurora Cannabis (ACB)
Source: Ralf Liebhold / Shutterstock.com
There’s also Aurora Cannabis (NASDAQ:ACB), which now trades at 48 cents. While this one has also been stuck in a strong downtrend, don’t write this one off either. Most recently, it posted 30% growth in year over year revenue for its second quarter. It also swung to positive EBITDA of C$3.4 million from a year-earlier loss of C$6.2 million.
And, according to Seeking Alpha, “Net income from continuing operations for the three months ended September 30, 2023 was C$0.3 million compared to a net loss of C$45.5 million for the same period in the prior year.”
At the moment, keep ACB on radar. It’s another one just waiting on further positive developments with cannabis right now.
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On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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The post 3 Marijuana Penny Stocks to Buy Before the Cannabis Crazes Ignites Again appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com There’s also Aurora Cannabis (NASDAQ:ACB), which now trades at 48 cents. And, according to Seeking Alpha, “Net income from continuing operations for the three months ended September 30, 2023 was C$0.3 million compared to a net loss of C$45.5 million for the same period in the prior year.” At the moment, keep ACB on radar. “With significant near-term state and regulatory catalysts on the horizon, coupled with our proposed up-listing to the Toronto Stock Exchange and our early mover advantage in Europe give us great confidence in Curaleaf’s future,” he added. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com There’s also Aurora Cannabis (NASDAQ:ACB), which now trades at 48 cents. And, according to Seeking Alpha, “Net income from continuing operations for the three months ended September 30, 2023 was C$0.3 million compared to a net loss of C$45.5 million for the same period in the prior year.” At the moment, keep ACB on radar. Marijuana Penny Stocks: Canopy Growth (CGC) Source: T. Schneider / Shutterstock Canopy Growth (NASDAQ:CGC) was once one of the hottest cannabis companies in the world. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com There’s also Aurora Cannabis (NASDAQ:ACB), which now trades at 48 cents. And, according to Seeking Alpha, “Net income from continuing operations for the three months ended September 30, 2023 was C$0.3 million compared to a net loss of C$45.5 million for the same period in the prior year.” At the moment, keep ACB on radar. Marijuana Penny Stocks: Canopy Growth (CGC) Source: T. Schneider / Shutterstock Canopy Growth (NASDAQ:CGC) was once one of the hottest cannabis companies in the world. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com There’s also Aurora Cannabis (NASDAQ:ACB), which now trades at 48 cents. And, according to Seeking Alpha, “Net income from continuing operations for the three months ended September 30, 2023 was C$0.3 million compared to a net loss of C$45.5 million for the same period in the prior year.” At the moment, keep ACB on radar. The company’s adjusted core loss narrowed to C$11.9 million ($8.62 million) for the three months ended Sept. 30, compared with a loss of C$56.4 million a year earlier.” While it’ll take a lot of patience to see a payday with CGC, give it time. |
36341.0 | 2023-11-22 00:00:00 UTC | Has Aurora Cannabis Finally Turned Things Around for Investors? | ACB | https://www.nasdaq.com/articles/has-aurora-cannabis-finally-turned-things-around-for-investors | nan | nan | Aurora Cannabis (NASDAQ: ACB) has been cutting costs and improving its bottom line over several quarters in a bid to show investors that its operations are in better shape. That might make analysts more bullish about its prospects. The company recently released its latest earnings report, which again showed that its bottom line is getting better. But is it enough to prove to investors that it has turned its operations around, and that it's a stock worth investing in?
Aurora Cannabis off to a strong start to fiscal 2024
On Nov. 9, Aurora Cannabis reported results for its fiscal 2024 second quarter ended Sept. 30. The company says that "this is our strongest fiscal year to date," with Aurora reporting year-over-year growth and a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit for the fourth straight quarter.
Revenue totaling 63.4 million Canadian dollars ($46.3 million) for was up 30% from the same period last year. Adjusted (EBITDA) of CA$3.4 million was also a sharp improvement from the CA$6.2 million adjusted EBITDA loss that Aurora Cannabis reported in the year-ago period. The company has been slashing costs in an effort to win back investors -- its shares are down more than 90% during the past three years.
Why investors shouldn't get too excited about these results
There are a couple of reasons to temper your expectations about Aurora. While management may be bullish on this being a sign that the business is in better shape, here's why the company still faces significant risk.
Although Aurora did post strong year-over-year revenue growth, that is misleading. That's because Aurora is going up against some soft numbers from the previous year. This is a company that has struggled to generate positive sales growth in the past. In the same three-month period last year, Aurora's total net revenue fell 18% from the prior-year period.
Context is important, and while Aurora's revenue is up compared to last year, that hasn't always been the case. And in the longer run, with the company focusing on the slower-growing medical cannabis market and moving away from consumer cannabis, there isn't much of a reason for investors to get optimistic that this type of growth can continue.
Another problem is adjusted EBITDA. This is not a true accounting profit, and what that ultimately means is that Aurora Cannabis has significant leeway in what it counts as part of its adjusted EBITDA calculation. There isn't a standard or consistent rule as to what should or shouldn't be in there, but in general companies exclude costs that reduce net income. It's one of the reasons investors shouldn't rely too heavily on adjusted earnings calculations. Aurora Cannabis did post a tiny net profit of CA$256,000 this past quarter, but it's nowhere near the CA$3.4 million adjusted earnings it reported.
Aurora promises free cash flow in 2024
One of the big targets for Aurora Cannabis next year is to achieve positive free cash flow. The cannabis company continues to reduce costs and operate more efficiently. And through the savings initiatives it has been executing in recent years, management believes free cash flow will be attainable next year.
Positive free cash flow is an encouraging development, as it can help show investors that the business is sustainable. Stock offerings, which Aurora has relied on in the past to raise money, may not be necessary in the future. Plus, with stronger cash flow, the company can pursue growth opportunities. Aurora has hinted that it may consider mergers and acquisitions down the road.
Aurora has made progress, but it still isn't a good investment
What I like about Aurora's recent results were that the business was able to reach breakeven and that it is on track to generate positive free cash flow in the future. But the problem is growth. That's the main reason investors flocked to cannabis stocks in the past. It's also growth that got cannabis companies into the problems they're in today. They were growing too fast and spending too much in a highly competitive industry.
Aurora may be profitable right now and generating free cash flow in the near future, but as it pivots back to focusing on growth, those problems may reemerge. The Canadian pot market is too saturated with competitors, while the U.S. market is off-limits due to the federal ban on pot. Aurora could expand internationally, but that's not a cheap option either, and the growth prospects there simply may not be all that attractive given the lack of progress in legalizing marijuana in other parts of the world.
Ultimately, while Aurora is an improved company, it's still not a business that's worth investing in.
10 stocks we like better than Aurora Cannabis
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) has been cutting costs and improving its bottom line over several quarters in a bid to show investors that its operations are in better shape. The company says that "this is our strongest fiscal year to date," with Aurora reporting year-over-year growth and a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit for the fourth straight quarter. Aurora could expand internationally, but that's not a cheap option either, and the growth prospects there simply may not be all that attractive given the lack of progress in legalizing marijuana in other parts of the world. | Aurora Cannabis (NASDAQ: ACB) has been cutting costs and improving its bottom line over several quarters in a bid to show investors that its operations are in better shape. Aurora Cannabis off to a strong start to fiscal 2024 On Nov. 9, Aurora Cannabis reported results for its fiscal 2024 second quarter ended Sept. 30. The company says that "this is our strongest fiscal year to date," with Aurora reporting year-over-year growth and a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit for the fourth straight quarter. | Aurora Cannabis (NASDAQ: ACB) has been cutting costs and improving its bottom line over several quarters in a bid to show investors that its operations are in better shape. Aurora Cannabis off to a strong start to fiscal 2024 On Nov. 9, Aurora Cannabis reported results for its fiscal 2024 second quarter ended Sept. 30. Aurora promises free cash flow in 2024 One of the big targets for Aurora Cannabis next year is to achieve positive free cash flow. | Aurora Cannabis (NASDAQ: ACB) has been cutting costs and improving its bottom line over several quarters in a bid to show investors that its operations are in better shape. Aurora Cannabis did post a tiny net profit of CA$256,000 this past quarter, but it's nowhere near the CA$3.4 million adjusted earnings it reported. That's the main reason investors flocked to cannabis stocks in the past. |
36342.0 | 2023-11-21 00:00:00 UTC | The 3 Most Undervalued Cannabis Stocks to Buy: November 2023 | ACB | https://www.nasdaq.com/articles/the-3-most-undervalued-cannabis-stocks-to-buy%3A-november-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
By most accounts, Canada’s experiment with legalizing cannabis has been a complete failure. Five years after the recreational drug was legalized on a national level, most cannabis producers remain deeply unprofitable, struggling to survive, seeing their share prices plunge by more than 90%. Today, most cannabis securities trade as penny stocks. The situation in the U.S. remains stuck in a political quagmire. The federal government in Washington, D.C. has refused to take any meaningful action on cannabis legalization at a national level, with lawmakers content to leave it up to the states to decide whether they want to legalize the drug. That has helped to send the entire industry in North America into a tailspin. If there’s a silver lining for investors, it’s that many cannabis stocks look woefully undervalued after enduring a steep selloff in recent years. Here are the three most undervalued cannabis stocks to buy: November 2023.
Canopy Growth (CGC)
Source: Ralf Liebhold / Shutterstock
It was at one time the largest cannabis producer in neighboring Canada and a high-flying stock. Sadly, Canopy Growth (NASDAQ:CGC) has been brought low and now trades as a penny stock. Since peaking at $50 a share in 2019, CGC stock declined 99% and currently trades for just 54 cents. The decline is the result of poor sales and a deteriorating financial position. Canopy Growth recently reported a net loss for its fiscal second quarter of CAD 148.2 million.
The latest loss was 25% greater than a year earlier and comes as Canopy Growth’s revenue in the latest quarter declined 21% year-over-year. Company executives said they continue to focus on reducing costs. In recent months, Canopy Growth obtained creditor protection for its BioSteel Sports Nutrition unit with plans to sell that business. And, the company has announced its intention to sell its previous headquarters building back to the original owner — chocolate maker Hershey (NYSE:HSY).
For investors looking for a cheap cannabis stock, Canopy Growth would be it.
Tilray Brands (TLRY)
Source: rafapress / Shutterstock.com
Tilray Brands (NASDAQ:TLRY) is another once high-flying cannabis stock that looks undervalued and dirt cheap at current levels. In the last five years, Tilray’s share price has fallen 98% to also trade on the penny stock league tables. The decline comes despite Tilray being targeted by retail investors on multiple occasions and treated as a meme stock. Over the past two years, TLRY stock has been as high as $30 a share and as low as $1.50.
In terms of its business, the Canadian cannabis producer is now focused almost exclusively on the U.S. market having moved its headquarters to New York City from Toronto, and as it pushes into the American craft beer market. In August, Tilray announced that it is buying eight craft beer brands from international brewing giant Anheuser-Busch InBev (NYSE:BUD). The deal makes Tilray one of the top five craft brewers in the U.S. The company also continues to wait for cannabis legalization on a national level in the United States.
Aurora Cannabis (ACB)
Source: Ralf Liebhold / Shutterstock.com
Also down nearly 100% over the last five years and trading as a penny stock is Aurora Cannabis (NASDAQ:ACB). Like many cannabis producers that targeted the Canadian market when the country legalized the recreational drug on a national level, Aurora Cannabis has struggled with competition from the black market, an oversupplied industry and a lack of movement on national legalization in the U.S. — where the market is much bigger than in the Great White North.
Aurora Cannabis has also struggled with some internal scandals. This past summer, a controversy erupted when it was revealed that the company’s CEO saw his annual compensation rise 40% to $6.7 million at the same time as the company’s stock plunged over 50%. Hampered by poor sales and weak demand for its products, Aurora Cannabis continues to struggle.
Over the last three years, the company has cut more than CAD 400 million in costs and eliminated jobs. Like the other names on this list, ACB stock looks undervalued and cheap at current levels.
On the date of publication, Joel Baglole held a long position in HSY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Also down nearly 100% over the last five years and trading as a penny stock is Aurora Cannabis (NASDAQ:ACB). Like the other names on this list, ACB stock looks undervalued and cheap at current levels. Five years after the recreational drug was legalized on a national level, most cannabis producers remain deeply unprofitable, struggling to survive, seeing their share prices plunge by more than 90%. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Also down nearly 100% over the last five years and trading as a penny stock is Aurora Cannabis (NASDAQ:ACB). Like the other names on this list, ACB stock looks undervalued and cheap at current levels. Canopy Growth (CGC) Source: Ralf Liebhold / Shutterstock It was at one time the largest cannabis producer in neighboring Canada and a high-flying stock. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Also down nearly 100% over the last five years and trading as a penny stock is Aurora Cannabis (NASDAQ:ACB). Like the other names on this list, ACB stock looks undervalued and cheap at current levels. Tilray Brands (TLRY) Source: rafapress / Shutterstock.com Tilray Brands (NASDAQ:TLRY) is another once high-flying cannabis stock that looks undervalued and dirt cheap at current levels. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Also down nearly 100% over the last five years and trading as a penny stock is Aurora Cannabis (NASDAQ:ACB). Like the other names on this list, ACB stock looks undervalued and cheap at current levels. For investors looking for a cheap cannabis stock, Canopy Growth would be it. |
36343.0 | 2023-11-11 00:00:00 UTC | Could Aurora Cannabis Stock Actually Be a Screaming Buy Right Now? | ACB | https://www.nasdaq.com/articles/could-aurora-cannabis-stock-actually-be-a-screaming-buy-right-now | nan | nan | Any way you look at it, the last five years have been atrocious for Aurora Cannabis (NASDAQ: ACB). Shares of the Canadian cannabis company plunged nearly 99.7% below the high set in the first half of 2019.
Believe it or not, though, things appear to be getting better for Aurora. The company reported its fiscal 2024 second-quarter results after the market closed on Thursday. Investors liked the Q2 update so much that the marijuana stock soared as much as 13% in early trading on Friday. Could Aurora Cannabis stock actually be a screaming buy right now?
Mounting momentum
Even a skeptic will be forced to admit that Aurora Cannabis seems to be experiencing mounting momentum. The cannabis company's net revenue jumped 30% year over year, to 63.4 million in Canadian dollars. Aurora delivered positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of CA$3.4 million -- a record high for the company and its fourth consecutive quarter of positive adjusted EBITDA.
CEO Miguel Martin proclaimed: "This is our strongest fiscal year to date." Aurora reaffirmed its previous goal to achieve positive free cash flow in calendar year 2024. Martin said that the company is "moving closer to reaching our target."
Aurora Cannabis is especially booming in international medical cannabis markets. The company's largest European market is Germany, where it's one of only three licensees approved to produce medical cannabis in the country.
Martin stated in the quarterly conference call that "the German medical market could expand significantly" in the near future. He added that Aurora's management is "optimistic about the planned legislation to deschedule cannabis in Germany."
Germany's move could also affect Aurora's second-largest European market, Poland. Martin noted that Germany "has a lot of influence on Poland."
Aurora Cannabis could have an even bigger opportunity in Australia. Martin believes that Australia could become the world's largest medical cannabis market outside of the U.S. Aurora already exports medical cannabis to the country using a distribution partner.
Continued challenges
To be sure, Aurora continues to face challenges. That's especially evident in the Canadian adult-use recreational cannabis market.
Martin acknowledged that "rec is a challenge in Canada right now, particularly in certain geographies." However, he said that Aurora hasn't "given up on rec." He even said that the company sees "opportunities for our Canadian adult use business to move to profitability as other market participants exit."
There's also the reality that Aurora Cannabis' financial position constrains how much it can invest in growth. The company exited the medical cannabis market in the Netherlands for this very reason. While Aurora reported a net cash position of over CA$200 million in its fiscal 2024 Q2 update, it will be forced to tap into that reserve until it's generating positive free cash flow.
Don't look for sequential sales momentum in Aurora's next quarter. The company stated that it "expects cannabis net revenue to be largely similar to fiscal Q2 2024."
A screaming buy or another false signal?
Aurora Cannabis stock has rebounded before with the gains quickly evaporating. We only have to look to September of this year for an example of this happening. Is the stock really a screaming buy now, or is the positive fiscal Q2 update just another false signal?
I'll address the second question first. Aurora Cannabis does seem to be turning the corner. The company's EBITDA is definitely moving in the right direction. Its international medical cannabis business continues to pick up momentum. I'll wait and see if Aurora actually achieves positive free cash flow next year, but the goal at least appears to be within reach.
Now for the first part of the question. Despite the improving conditions, I wouldn't say that Aurora Cannabis is a screaming buy. Yes, some aggressive investors might be interested in nibbling at the stock in hopes that good news in Germany could provide a major catalyst in the near future. However, Aurora remains a highly speculative stock that is by no means a shoo-in to be successful anytime soon. Investors have better alternatives, in my view.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Any way you look at it, the last five years have been atrocious for Aurora Cannabis (NASDAQ: ACB). Aurora reaffirmed its previous goal to achieve positive free cash flow in calendar year 2024. I'll wait and see if Aurora actually achieves positive free cash flow next year, but the goal at least appears to be within reach. | Any way you look at it, the last five years have been atrocious for Aurora Cannabis (NASDAQ: ACB). The cannabis company's net revenue jumped 30% year over year, to 63.4 million in Canadian dollars. While Aurora reported a net cash position of over CA$200 million in its fiscal 2024 Q2 update, it will be forced to tap into that reserve until it's generating positive free cash flow. | Any way you look at it, the last five years have been atrocious for Aurora Cannabis (NASDAQ: ACB). Could Aurora Cannabis stock actually be a screaming buy right now? Aurora Cannabis is especially booming in international medical cannabis markets. | Any way you look at it, the last five years have been atrocious for Aurora Cannabis (NASDAQ: ACB). The cannabis company's net revenue jumped 30% year over year, to 63.4 million in Canadian dollars. He even said that the company sees "opportunities for our Canadian adult use business to move to profitability as other market participants exit." |
36344.0 | 2023-11-02 00:00:00 UTC | 3 Trends in Cannabis Stocks to Watch for 2024 | ACB | https://www.nasdaq.com/articles/3-trends-in-cannabis-stocks-to-watch-for-2024 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The current cannabis trends affecting the market are likely to continue to impact the sector in 2024. First, the legal environment appears to be becoming more friendly to the drug. Many U.S. states are legalizing cannabis, the DEA is considering radically changing its cannabis approach and Congress is making moves to help the sector. Meanwhile, the consumer sector is becoming more favorable to cannabis, and many cannabis stocks are actually very cheap.
With all of that said, here’s more information about these trends that are affecting cannabis stocks and will continue doing so into 2024.
A More Friendly Legal Environment
Source: Jetacom Autofocus / Shutterstock.com
In August, Minnesota legalized recreational marijuana, following closely in the footsteps of Maryland which took the plunge in July.
Among the states that could legalize recreational weed next year are Florida, Ohio, Tennessee and Nebraska. Florida’s high number of transplants from the liberal Northeast and its large elderly population could create a high profit opportunity for cannabis companies.
Meanwhile, positive developments for cannabis continue to occur in Congress. The Senate Banking Committee approved a bipartisan marijuana banking bill that would enable cannabis companies to obtain loans for the first time. The bill, if signed into law, would likely greatly accelerate the sector’s growth. Bipartisan backing and the support of Chuck Schumer give this bill a good chance of becoming a law in 2024.
Finally, the U.S. Department of Health and Human Services recommended that the DEA reclassify cannabis to reduce its federal classification. Currently, cannabis is listed by the DEA as a Schedule I drug. The agency views it as having a “high abuse risk” and “NO safe, accepted medical use in the United States.” On the other hand, Schedule 3 drugs are viewed as having much less abuse risk and accepted medical uses.
The Congressional Research Service believes that the DEA will follow HHS’ recommendation. CRS believes that this change would make medical marijuana legal in Washington’s eyes, although some dispute that conclusion. This change would enable tax deductions for marijuana producers and retailers, which would definitely boost cannabis stocks.
Positive Consumer Trends
Source: Shutterstock
Nearly 13 million Americans 50 and above utilized marijuana over a 12-month period. In 2018, the Journal of the American Medical Association reported a 25% surge in cannabis usage over a three-year period among older Americans. Given the increased acceptance and legalization of cannabis in recent years, those numbers have likely grown.
Meanwhile, according to Food and Wine, the popularity of cannabis-infused cocktails is expanding. There’s no doubt that drinking cocktails is definitely much more socially acceptable in our society than smoking. Consequently, I believe that cannabis-infused drinks could lead to greater success for cannabis companies than marketing the weed itself. What’s more, the cannabis cocktail trend could accelerate significantly next year. Companies have only recently learned that cannabis beverages are an appealing way for many consumers to imbibe.
Many Cannabis Stocks Have Very Low Valuations
Source: Shutterstock
Long gone are the days when the valuations of most cannabis stocks were as high as the sector’s most loyal customers. Now the valuations of many names in the space are actually quite low.
For example, one of my favorite names in the space, Tilray Brands (NASDAQ:TLRY), has a very low forward price-sales ratio of 1.4, while another one of my top picks, Aurora Cannabis (NASDAQ:ACB), has a tiny forward price-sales ratio of less than one.
As of this writing, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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The post 3 Trends in Cannabis Stocks to Watch for 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, one of my favorite names in the space, Tilray Brands (NASDAQ:TLRY), has a very low forward price-sales ratio of 1.4, while another one of my top picks, Aurora Cannabis (NASDAQ:ACB), has a tiny forward price-sales ratio of less than one. Finally, the U.S. Department of Health and Human Services recommended that the DEA reclassify cannabis to reduce its federal classification. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. | For example, one of my favorite names in the space, Tilray Brands (NASDAQ:TLRY), has a very low forward price-sales ratio of 1.4, while another one of my top picks, Aurora Cannabis (NASDAQ:ACB), has a tiny forward price-sales ratio of less than one. The Senate Banking Committee approved a bipartisan marijuana banking bill that would enable cannabis companies to obtain loans for the first time. Positive Consumer Trends Source: Shutterstock Nearly 13 million Americans 50 and above utilized marijuana over a 12-month period. | For example, one of my favorite names in the space, Tilray Brands (NASDAQ:TLRY), has a very low forward price-sales ratio of 1.4, while another one of my top picks, Aurora Cannabis (NASDAQ:ACB), has a tiny forward price-sales ratio of less than one. Many U.S. states are legalizing cannabis, the DEA is considering radically changing its cannabis approach and Congress is making moves to help the sector. Meanwhile, the consumer sector is becoming more favorable to cannabis, and many cannabis stocks are actually very cheap. | For example, one of my favorite names in the space, Tilray Brands (NASDAQ:TLRY), has a very low forward price-sales ratio of 1.4, while another one of my top picks, Aurora Cannabis (NASDAQ:ACB), has a tiny forward price-sales ratio of less than one. Given the increased acceptance and legalization of cannabis in recent years, those numbers have likely grown. What’s more, the cannabis cocktail trend could accelerate significantly next year. |
36345.0 | 2023-10-26 00:00:00 UTC | EXPLAINER-Vietnam's real estate woes: how much worse can they get? | ACB | https://www.nasdaq.com/articles/explainer-vietnams-real-estate-woes%3A-how-much-worse-can-they-get | nan | nan | HANOI, Oct 26 (Reuters) - A rough year for Vietnam's real estate sector has seen developers miss interest payments on debt, amid a credit crunch spurred by ill-timed government measures, although spillover risk has been limited.
The sector was the worst performer last month on the falling Ho Chi Minh City stock exchange .VNI, with a drop of nearly 16% on the month, says key Vietnam investor Dragon Capital.
That capped two years of turmoil in developers' shares that spread last year to corporate bonds, hitting project development and leaving ghost blocks of high-end property.
WHICH DEVELOPERS ARE IN TROUBLE?
No Va Land NVL.HM is the largest listed developer to face problems, with its shares down more than 80% in a year, after missing interest payment deadlines on domestic and foreign bonds that triggered a standoff with some international creditors.
Shares of the largest listed developer, Vinhomes VHM.HM, part of the country's biggest conglomerate, Vingroup VIC.HM, have fallen 13% this year.
Other non-listed companies who defaulted recently include Hung Thinh Corp, a major developer in southern Vietnam, and Van Thinh Phat, whose chairwoman was arrested in a graft crackdown last year, according to VISRating, which is partly owned by Moody's.
Buildings stand empty with interiors unfinished in developer Sun Group's "Mediterranean town" on the southern island of Phu Quoc, while the skeletons of incomplete high-rises flank shiny towers in Hanoi built by another developer, Sunshine.
And the pressure is mounting, with real-estate bonds of about $6 billion set to mature each this year and the next, nearly three times more than in 2022.
HOW LIKELY ARE SPILLOVER RISKS?
In September, the Asian Development Bank warned of potential spillover into banking from irregularities in corporate bonds and real estate markets, although troubled bonds made up just a small portion of total bank credit.
Jean Xavier of S&P Global said there was "no risk of massive contagion", but warned about a slowdown in key consumer sectors and the negative impact on areas closely linked to real estate, such as construction and building products.
WHICH BANKS ARE MOST EXPOSED?
The banking system's exposure to the property sector amounts to about 25% of total loans, says S&P Global, mostly through mortgages, which are not viewed as risky, however, thanks to robust employment.
Corporate bond holdings are about 3% of banks' total loans, said S&P Global, which estimated between a third and a half were related to property.
The banks most exposed to the sector are Southeast Asia Bank SSB.HM, Maritime Bank MSB.HM, Asia Commercial Bank ACB.HM, Vietnam Prosperity Bank (VP Bank) VPB.HM and Sacombank STB.HM, 2022 data cited by VISRating shows.
Of these, only VP Bank ranks among the biggest lenders.
HOW DID THE TURMOIL START?
Analysts blame the worst troubles on a long-running graft campaign that authorities stepped up at the end of last year.
They see the Oct. 2022 arrest over financial fraud of Truong My Lan, chairwoman of Van Thinh Phat Holdings Group, as a turning-point after which confidence dropped.
The arrest followed tougher rules on transparency and private placement of corporate bonds adopted that September, and coinciding with an economic slowdown, so that authorities were forced to suspend them a few months later, as the market froze.
Bond issuance drew to a halt and bank loans fell, spurring the government to repeatedly urge lenders to boost credit.
IS VIETNAM A NEW CHINA?
While ill-timed government measures, companies' high debt and oversupply are responsible for the sectors' woes in both countries, conditions are different in Vietnam.
Its long-term prospects are more positive, said S&P's Xavier Jean, as a younger population and an expanding middle-class are set to keep demand for property high.
Vietnam has a less acute situation of oversupply and speculation than China, he added, while real estate's contribution to its economy is also smaller.
($1=24,606 dong)
(Reporting by Francesco Guarascio @fraguarascio and Phuong Nguyen; Editing by Anne Marie Roantree and Clarence Fernandez)
((Francesco.Guarascio@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The banks most exposed to the sector are Southeast Asia Bank SSB.HM, Maritime Bank MSB.HM, Asia Commercial Bank ACB.HM, Vietnam Prosperity Bank (VP Bank) VPB.HM and Sacombank STB.HM, 2022 data cited by VISRating shows. HANOI, Oct 26 (Reuters) - A rough year for Vietnam's real estate sector has seen developers miss interest payments on debt, amid a credit crunch spurred by ill-timed government measures, although spillover risk has been limited. No Va Land NVL.HM is the largest listed developer to face problems, with its shares down more than 80% in a year, after missing interest payment deadlines on domestic and foreign bonds that triggered a standoff with some international creditors. | The banks most exposed to the sector are Southeast Asia Bank SSB.HM, Maritime Bank MSB.HM, Asia Commercial Bank ACB.HM, Vietnam Prosperity Bank (VP Bank) VPB.HM and Sacombank STB.HM, 2022 data cited by VISRating shows. HANOI, Oct 26 (Reuters) - A rough year for Vietnam's real estate sector has seen developers miss interest payments on debt, amid a credit crunch spurred by ill-timed government measures, although spillover risk has been limited. In September, the Asian Development Bank warned of potential spillover into banking from irregularities in corporate bonds and real estate markets, although troubled bonds made up just a small portion of total bank credit. | The banks most exposed to the sector are Southeast Asia Bank SSB.HM, Maritime Bank MSB.HM, Asia Commercial Bank ACB.HM, Vietnam Prosperity Bank (VP Bank) VPB.HM and Sacombank STB.HM, 2022 data cited by VISRating shows. HANOI, Oct 26 (Reuters) - A rough year for Vietnam's real estate sector has seen developers miss interest payments on debt, amid a credit crunch spurred by ill-timed government measures, although spillover risk has been limited. In September, the Asian Development Bank warned of potential spillover into banking from irregularities in corporate bonds and real estate markets, although troubled bonds made up just a small portion of total bank credit. | The banks most exposed to the sector are Southeast Asia Bank SSB.HM, Maritime Bank MSB.HM, Asia Commercial Bank ACB.HM, Vietnam Prosperity Bank (VP Bank) VPB.HM and Sacombank STB.HM, 2022 data cited by VISRating shows. HANOI, Oct 26 (Reuters) - A rough year for Vietnam's real estate sector has seen developers miss interest payments on debt, amid a credit crunch spurred by ill-timed government measures, although spillover risk has been limited. In September, the Asian Development Bank warned of potential spillover into banking from irregularities in corporate bonds and real estate markets, although troubled bonds made up just a small portion of total bank credit. |
36346.0 | 2023-10-24 00:00:00 UTC | Aurora Cannabis Resolves Patent Litigation With Willow Biosciences | ACB | https://www.nasdaq.com/articles/aurora-cannabis-resolves-patent-litigation-with-willow-biosciences | nan | nan | (RTTNews) - Aurora Cannabis Inc. (ACB, ACB.TO) Tuesday announced the confidential settlement with Canada-based Willow Biosciences Inc., resolving the ongoing patent litigation between the two parties.
Further, Aurora affirmed its commitment to enforce and defend intellectual property rights.
Miguel Martin, Chief Executive Officer of Aurora noted that the negotiated settlement ensures its Canadian cannabis-related patent rights.
Aurora, serving both the medical and consumer markets, commenced a patent infringement action in July 2021, alleging that Willow's biosynthetic process for synthesizing cannabinoids infringed Aurora's exclusive rights to patents co-owned by the University of Saskatchewan and the National Research Council.
The technology of the asserted patents was invented by Anandia, co-founder and former chief science officer at Aurora, Jonathan Page, and his colleagues, identifying key enzymes and corresponding genes in the biosynthetic pathways of cannabis plants.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Aurora Cannabis Inc. (ACB, ACB.TO) Tuesday announced the confidential settlement with Canada-based Willow Biosciences Inc., resolving the ongoing patent litigation between the two parties. Miguel Martin, Chief Executive Officer of Aurora noted that the negotiated settlement ensures its Canadian cannabis-related patent rights. The technology of the asserted patents was invented by Anandia, co-founder and former chief science officer at Aurora, Jonathan Page, and his colleagues, identifying key enzymes and corresponding genes in the biosynthetic pathways of cannabis plants. | (RTTNews) - Aurora Cannabis Inc. (ACB, ACB.TO) Tuesday announced the confidential settlement with Canada-based Willow Biosciences Inc., resolving the ongoing patent litigation between the two parties. Miguel Martin, Chief Executive Officer of Aurora noted that the negotiated settlement ensures its Canadian cannabis-related patent rights. Aurora, serving both the medical and consumer markets, commenced a patent infringement action in July 2021, alleging that Willow's biosynthetic process for synthesizing cannabinoids infringed Aurora's exclusive rights to patents co-owned by the University of Saskatchewan and the National Research Council. | (RTTNews) - Aurora Cannabis Inc. (ACB, ACB.TO) Tuesday announced the confidential settlement with Canada-based Willow Biosciences Inc., resolving the ongoing patent litigation between the two parties. Aurora, serving both the medical and consumer markets, commenced a patent infringement action in July 2021, alleging that Willow's biosynthetic process for synthesizing cannabinoids infringed Aurora's exclusive rights to patents co-owned by the University of Saskatchewan and the National Research Council. The technology of the asserted patents was invented by Anandia, co-founder and former chief science officer at Aurora, Jonathan Page, and his colleagues, identifying key enzymes and corresponding genes in the biosynthetic pathways of cannabis plants. | (RTTNews) - Aurora Cannabis Inc. (ACB, ACB.TO) Tuesday announced the confidential settlement with Canada-based Willow Biosciences Inc., resolving the ongoing patent litigation between the two parties. Further, Aurora affirmed its commitment to enforce and defend intellectual property rights. Miguel Martin, Chief Executive Officer of Aurora noted that the negotiated settlement ensures its Canadian cannabis-related patent rights. |
36347.0 | 2023-10-12 00:00:00 UTC | Will Canopy Growth Run Out of Cash? | ACB | https://www.nasdaq.com/articles/will-canopy-growth-run-out-of-cash | nan | nan | Canopy Growth (NASDAQ: CGC) has been scaling back its operations to contain its cash burn. It's no longer funding its BioSteel nutritional supplement line. It recently sold its facility in Smiths Falls, Ontario, which previously served as its headquarters. The company is getting smaller and leaner. But the problem is that the cash burn still continues. Will Canopy Growth end up running out of money, and what would that mean for investors?
Current assets are a fraction of what they were four years ago
Beer maker Constellation Brands announced a $4 billion investment in Canopy Growth back in 2018. This provided the company with plenty of cash to help fund its operations and bring aboard a partner, which would make Canopy Growth seem like a safer pot stock to invest in than its peers.
But over the years, with Canopy Growth's cannabis business stumbling, the company's current assets, which include cash and short-term investments, have deteriorated sharply.
Data source: YCharts
The company is still well equipped to cover its near-term liabilities, with Canopy Growth reporting current liabilities totaling 451.2 million Canadian dollars ($329 million) as of June 30. But the key number for investors to watch is the company's cash burn.
Cash burn remains high
Over a 12-month period, Canopy Growth has been burning through more than $400 million in cash over the course of its day-to-day operations (this doesn't include investing in growth opportunities and capital expenditures). If it remains on that pace, it could be less than two years before the company depletes its current assets.
Data source: YCharts
What can improve this, however, is Canopy Growth's plan to stop funding BioSteel, as the troubled sports nutrition business has been a significant drag on Canopy Growth's financials and a cash drain. Presumably, such a move means that the rate of cash burn should slow, which could let the money that Canopy Growth has on its books last longer.
What happens if Canopy Growth runs out of cash?
Canopy Growth isn't generating positive cash flow and unless that changes, odds are it will run out of cash sooner or later. And in August, when it last reported earnings, it said that it will need to raise funds to meet its obligations as it alerted investors to its going concern risk, which is the possibility that it may not be able to survive.
But that doesn't mean Canopy Growth is going out of business, at least not yet. In all likelihood, it'll just need to raise more cash, either through debt or the equity markets. One of the benefits of having ample cash on hand or not burning through it is that can result in a company not having to issue shares. That's a good thing for investors because it means less risk of dilution and less downward pressure on the share price (more shares available on the market often leads to a lower price).
Over the years, Canopy Growth has been a less dilutive pot stock than its peers, but that could change as its current assets deplete and the company needs to raise cash.
Data spurce: YCharts
Canopy Growth's stock is volatile and risky
Even if Canopy Growth slows its cash burn by dumping BioSteel, it still has a long way to go to prove to investors that its operations are sustainable and that the stock is a viable investment. The stock is highly volatile; while it can rise significantly if marijuana legalization in the U.S. seems like it's coming, that's not a scenario that investors should count on. And even if the U.S. pot market opened up tomorrow, Canopy Growth would still need strong financials to support those growth initiatives.
Unless the company dramatically turns around its operations, becomes profitable, and generates positive cash flow, investors should avoid the stock. There are much better growth stocks out there for investors to buy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Current assets are a fraction of what they were four years ago Beer maker Constellation Brands announced a $4 billion investment in Canopy Growth back in 2018. This provided the company with plenty of cash to help fund its operations and bring aboard a partner, which would make Canopy Growth seem like a safer pot stock to invest in than its peers. But over the years, with Canopy Growth's cannabis business stumbling, the company's current assets, which include cash and short-term investments, have deteriorated sharply. | But over the years, with Canopy Growth's cannabis business stumbling, the company's current assets, which include cash and short-term investments, have deteriorated sharply. Data source: YCharts The company is still well equipped to cover its near-term liabilities, with Canopy Growth reporting current liabilities totaling 451.2 million Canadian dollars ($329 million) as of June 30. Canopy Growth isn't generating positive cash flow and unless that changes, odds are it will run out of cash sooner or later. | Cash burn remains high Over a 12-month period, Canopy Growth has been burning through more than $400 million in cash over the course of its day-to-day operations (this doesn't include investing in growth opportunities and capital expenditures). Data source: YCharts What can improve this, however, is Canopy Growth's plan to stop funding BioSteel, as the troubled sports nutrition business has been a significant drag on Canopy Growth's financials and a cash drain. Data spurce: YCharts Canopy Growth's stock is volatile and risky Even if Canopy Growth slows its cash burn by dumping BioSteel, it still has a long way to go to prove to investors that its operations are sustainable and that the stock is a viable investment. | Cash burn remains high Over a 12-month period, Canopy Growth has been burning through more than $400 million in cash over the course of its day-to-day operations (this doesn't include investing in growth opportunities and capital expenditures). Data spurce: YCharts Canopy Growth's stock is volatile and risky Even if Canopy Growth slows its cash burn by dumping BioSteel, it still has a long way to go to prove to investors that its operations are sustainable and that the stock is a viable investment. There are much better growth stocks out there for investors to buy. |
36348.0 | 2023-10-11 00:00:00 UTC | 2 A-Rated Cannabis Stocks Are the ONLY Ones You Should Buy Right Now | ACB | https://www.nasdaq.com/articles/2-a-rated-cannabis-stocks-are-the-only-ones-you-should-buy-right-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Pity the average cannabis stock investor. Since 2021, shares of the largest cannabis fund, the AdvisorShares Pure US Cannabis ETF (NYSEARCA:MSOS) have lost over 80% of their value. Many companies have fared even worse. MedMen (OTCMKTS:MMNFF) — once considered the “Apple store of weed” — has seen its valuation plummet from $1.7 billion to $40 million, a 98% drop. Aurora Cannabis (NASDAQ:ACB) has fallen 99.5% from its peak value.
Underlying these woes has been a persistent shortage of demand… at least the legal type. Revenues at the top 100 cannabis companies worldwide hit only $16 billion in 2022, barely half the estimated $30 billion Americans spend annually on the drug. (By comparison, we spend roughly $22 billion annually on chocolate, and $18 billion on cheese). Persistent oversupply has also cratered prices. By Q1 2022, Aurora Cannabis lost 1.55 CAD for every 1 CAD of cannabis sold into the consumer market. It was a classic supply-demand problem. Without U.S. legalization, the industry found itself with too much weed and too few customers.
But that is quietly changing. Since mid-2023, several top cannabis companies have seen a pickup in pricing and demand, particularly outside the tough business-to-consumer market. One cannabis firm even saw a 137% increase in its sports nutrition beverages. (More on that later).
Wall Street analysts, too, have been revising their forecasts upward. One of the firms mentioned below has seen earnings per share (EPS) estimates pushed up double-digits, and the other could become profitable as early as next year.
Deep-value investors will sense an opportunity. These two firms trade for fractions of their peak valuations. And as they innovate beyond consumer cannabis, they’re setting themselves up to become more diversified and far less dependent on the bad business of selling marijuana to retail customers.
A Word of Warning
Investors need to be hyper-selective with cannabis companies. The average cannabis stock scores a D by my MarketMasterAI system, which is historically associated with losses over the next six months.
The consumer marijuana market also remains badly oversupplied. Aurora’s consumer segment still loses 1.01 CAD for every 1 CAD it generates in the market. Consumer prices have also continued to fall double-digits this year as more efficient strains come on the market. The business has become so hyper-competitive that even a former marijuana SPAC decided to take a ticketing firm public instead.
That’s why these two companies are such outliers. By investing early in alternative businesses, these firms have created revenue streams beyond the sale of cannabis.
2 A-Rated Cannabis Stocks to Buy: Canopy Growth (CGC)
Canopy Growth (NASDAQ:CGC) was founded in 2013 to help convert an old Hershey’s chocolate factory into a marijuana grow-op. It was a quick success. By 2017, the company was generating over $25 million annually in gross profit, and Modelo parent Constellation Brands (NYSE:STZ) would add an enormous $4 billion stake the following year. Shares would eventually peak in the $50 range, briefly making Canopy Growth the most valuable marijuana company in the world by market capitalization.
Rising losses, however, soon proved too great to ignore. By 2022, the company was losing upwards of $1 billion annually. Even Constellation Brands would make significant moves to shield itself from this now-toxic asset. In June, Canopy Growth raised doubts about its business as a going concern.
But cost cuts are finally beginning to kick in. Analysts now expect the Ontario-based firm to generate $43 million in gross income in fiscal 2024, its first positive figure since 2021. Earnings estimates are also getting revised upwards — a typically bullish sign. Since June, the average earnings per share estimate has jumped from -48 cents to -30 cents. The average revision has been up 24.8%. It’s no surprise that MarketMasterAI has now upgraded Canopy Growth to an A grade for its positive momentum.
That means Canopy’s rock-bottom prices now create an intriguing gamble for deep-value investors. The company’s shares are cheap, at least on paper. Canopy trades at less than 70% of book value — a third of its long-run average. And the firm is hyper-focused on reining in costs. In September, the firm sought bankruptcy protection for one of its subsidiaries to help offload debt.
Of course, Canopy’s stock remains exceptionally volatile. The company only has $431.5 million in cash left — barely enough for 12 months of operations at current cash burn rates. Marijuana also remains a challenging business, making up half of the firm’s revenues. But Canopy’s management is making all the right moves for their firm to survive. If luck goes their way, shares could rise as much as 200%.
Sundial (SNDL)
Alberta-based Sundial (NASDAQ:SNDL) saw the same collapse in the consumer-based marijuana industry. Operating losses ballooned from $10 million in fiscal 2018 to $281.1 million in 2022 as expected U.S. legalization continued to get pushed back.
Fortunately, Sundial’s management foresaw the decline. In 2022, the company merged with Alcanna, the largest private-sector alcohol retailer in Canada by number of stores. Roughly 84% of the $320 million deal was financed by issuing new shares, while the remaining $54 million was paid by cash.
The financing was a masterstroke. By using its relatively overvalued shares to buy up Alcanna, Sundial managed to walk away with a profitable business while paying dimes on the dollar. The same deal today would theoretically cost Sundial shareholders only $130 million. Meanwhile, Alcanna’s liquor business has kept cash coming in. In Q2, liquor contributed 8.2 million CAD in operating income — 3.5X more than Sundial made on cannabis retail.
The company has also seen improvements in its underlying cannabis business. In August, the company announced net revenue from its cannabis retail segment had seen a 13.2% year-over-year increase, a record since Sundial diversified into the segment. This was driven by a 3.3% increase in same-store growth, and an increase in store locations. Cannabis operations — the wholesale and production end of Sundial’s business — also saw an 81% surge in revenues from acquisitions.
Aggressive cost-cutting measures have now turned Wall Street positive on the stock. Analysts expect Sundial’s management to cut operating losses to near-zero this year. The firm could become profitable as early as 2024 at current rates.
That’s pushed Sundial into A grade territory, according to the MarketMasterAI stock-picking system. A cheap stock price, improving fundamentals, and positive stock momentum are all historic signs of a turnaround waiting to break out. Though Sundial has seen a terrible set of years, its dose of self-help is beginning to pay off.
What About Tilray? Curaleaf? Green Thumb?
There’s an unfortunate truth about the global marijuana industry: It remains oversupplied, hypercompetitive, and overall a bad business. At least 388 companies surveyed by Thomson Reuters deal with cannabis, and these firms lost a combined $11.3 billion last year.
Companies like Tilray (NASDAQ:TLRY), Curaleaf (OTCMKTS:CURLF) and Green Thumb Industries (OTCMKTS:GTBIF) are particularly at risk. Most of their business is caught in this unprofitable industry, and management didn’t have the foresight (or resources) to diversify earlier. They essentially bet on the marijuana industry and lost the wager.
The good news is that these firms will benefit if the U.S. federally legalizes marijuana. High operating leverage cuts both ways, and even getting a breakeven quarter could send shares of these stocks up triple digits. These companies have a relatively high short interest percentage.
But history tells us it’s still the wrong moment to bet on a turnaround. Since June, Wall Street analysts have cut earnings targets for Tilray by an average of 39%, earning it a D grade overall. Curaleaf and Green Thumb have seen 3% cuts each, giving them B grades. Though marijuana reform laws are making their way through Congress, history tells us that it’s better to focus on the early winners now than to jump in too early on the second-wave winners.
As of this writing, Tom Yeung did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ:ACB) has fallen 99.5% from its peak value. By 2017, the company was generating over $25 million annually in gross profit, and Modelo parent Constellation Brands (NYSE:STZ) would add an enormous $4 billion stake the following year. Shares would eventually peak in the $50 range, briefly making Canopy Growth the most valuable marijuana company in the world by market capitalization. | Aurora Cannabis (NASDAQ:ACB) has fallen 99.5% from its peak value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pity the average cannabis stock investor. Revenues at the top 100 cannabis companies worldwide hit only $16 billion in 2022, barely half the estimated $30 billion Americans spend annually on the drug. | Aurora Cannabis (NASDAQ:ACB) has fallen 99.5% from its peak value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pity the average cannabis stock investor. 2 A-Rated Cannabis Stocks to Buy: Canopy Growth (CGC) Canopy Growth (NASDAQ:CGC) was founded in 2013 to help convert an old Hershey’s chocolate factory into a marijuana grow-op. | Aurora Cannabis (NASDAQ:ACB) has fallen 99.5% from its peak value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pity the average cannabis stock investor. One of the firms mentioned below has seen earnings per share (EPS) estimates pushed up double-digits, and the other could become profitable as early as next year. |
36349.0 | 2023-10-11 00:00:00 UTC | Canada Legalized Marijuana 5 Years Ago. Why Is the Industry Now in Such Bad Shape? | ACB | https://www.nasdaq.com/articles/canada-legalized-marijuana-5-years-ago.-why-is-the-industry-now-in-such-bad-shape | nan | nan | On Oct. 17, it will be five years since Canada legalized recreational marijuana. The creation of a legal pot industry was supposed to provide cannabis companies with attractive growth opportunities. But it hasn't worked out that way. Marijuana producers in Canada have struggled since legalization, and that's putting it lightly. In fact, Canadian pot stocks have been some of the worst investments you could have owned over the past five years. During that time frame, shares of Tilray Brands (NASDAQ: TLRY), Canopy Growth, and Aurora Cannabis, which were once seen as the industry's leading companies, have lost 99% of their value.
Why is the industry in such bad shape? And should investors expect things to get better?
The industry has gotten crowded
Today, there are close to 1,000 licensed cultivators, processors, and sellers in the Canadian pot market. As of the end of 2018, there were about 134 companies that were licensed under the Cannabis Act. The sheer growth during those years highlights just how many businesses have been rushing in to try and capitalize on the industry's growth prospects.
That has made it incredibly difficult for large companies to gain a stable footing in the industry. Tilray Chief Executive Officer Irwin Simon once referred to these businesses as "ankle biters," as they chipped away at its market share.
Back in 2021 when Simon was more optimistic about the company's growth prospects, he was hoping his company could attain at least a 30% market share in Canada (at the time, Tilray had about 16%), which was part of his vision to get the business to $4 billion in annual revenue by 2024 -- a forecast that management has since withdrawn. Today, Tilray boasts a leading market share in Canada of just 13.4%.With plenty of producers vying for market share, it looks doubtful the company will get anywhere near 30%.
Many Canadian marijuana companies have similar patterns in that they started fast out of the gate and were optimistic about the future, only to see things slow down considerably.
Data source: YCharts
Investors may be encouraged to see an uptick in revenue growth for Aurora and Tilray in recent periods. But it's important to note that acquisitions have helped bolster some of these numbers, especially for Tilray, and that going up against weak comparable numbers from the previous year can make an increase in revenue appear misleading.
The black market still plays a big role
According to data from Canada's Department of Public Safety, the black market still accounts for a third of the entire marijuana market. While that has been declining over the years, it presents a problem as black-market sellers often price products much lower than legal pot shops, with the discount being about 55%.
Because black market vendors don't pay taxes, it makes it easy for them to undercut legal cannabis companies. One thing for investors to watch for is whether the situation deteriorates, especially if the economy weakens or goes into a recession and consumers struggle to afford legal pot products.
Pressure from not just many licensed producers but also the black market has effectively created a race to the bottom where cannabis companies need to price their products low in order to sell. And that isn't a recipe for success, making it the norm for cannabis companies to be deeply unprofitable as the chart below shows.
Data source: YCharts
Should you take a chance on Canadian pot stocks?
There isn't a reason to expect things to get better for Canadian marijuana companies. Competition remains fierce, and some companies are resorting to other options instead. Aurora has been focusing on medical marijuana and international markets. Canopy Growth has been selling properties to trim costs as it awaits the day when the U.S. legalizes marijuana (assuming that ever happens). Tilray, meanwhile, has been acquiring alcohol companies in an effort to diversify and be able to explore at least some growth opportunities in the U.S.
The Canadian pot market simply isn't an attractive option for cannabis companies. But unfortunately, for many of these companies, there aren't many good alternatives to seek growth, hence their poor results. Given the highly competitive landscape and little hope for a change anytime soon, investing in Canadian pot stocks remains extremely risky. These are not investments worth pursuing for the majority of investors. Investing in multi-state operators in the U.S. may be a better option, but that, too, comes with risks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | During that time frame, shares of Tilray Brands (NASDAQ: TLRY), Canopy Growth, and Aurora Cannabis, which were once seen as the industry's leading companies, have lost 99% of their value. One thing for investors to watch for is whether the situation deteriorates, especially if the economy weakens or goes into a recession and consumers struggle to afford legal pot products. Pressure from not just many licensed producers but also the black market has effectively created a race to the bottom where cannabis companies need to price their products low in order to sell. | The creation of a legal pot industry was supposed to provide cannabis companies with attractive growth opportunities. During that time frame, shares of Tilray Brands (NASDAQ: TLRY), Canopy Growth, and Aurora Cannabis, which were once seen as the industry's leading companies, have lost 99% of their value. The Canadian pot market simply isn't an attractive option for cannabis companies. | Back in 2021 when Simon was more optimistic about the company's growth prospects, he was hoping his company could attain at least a 30% market share in Canada (at the time, Tilray had about 16%), which was part of his vision to get the business to $4 billion in annual revenue by 2024 -- a forecast that management has since withdrawn. Today, Tilray boasts a leading market share in Canada of just 13.4%.With plenty of producers vying for market share, it looks doubtful the company will get anywhere near 30%. The Canadian pot market simply isn't an attractive option for cannabis companies. | During that time frame, shares of Tilray Brands (NASDAQ: TLRY), Canopy Growth, and Aurora Cannabis, which were once seen as the industry's leading companies, have lost 99% of their value. Today, Tilray boasts a leading market share in Canada of just 13.4%.With plenty of producers vying for market share, it looks doubtful the company will get anywhere near 30%. The Canadian pot market simply isn't an attractive option for cannabis companies. |
36350.0 | 2023-10-05 00:00:00 UTC | Aurora Cannabis (ACB) Price Target Increased by 5.29% to 0.75 | ACB | https://www.nasdaq.com/articles/aurora-cannabis-acb-price-target-increased-by-5.29-to-0.75 | nan | nan | The average one-year price target for Aurora Cannabis (NASDAQ:ACB) has been revised to 0.75 / share. This is an increase of 5.29% from the prior estimate of 0.71 dated August 31, 2023.
The price target is an average of many targets provided by analysts. The latest targets range from a low of 0.53 to a high of 1.19 / share. The average price target represents an increase of 35.88% from the latest reported closing price of 0.55 / share.
What is the Fund Sentiment?
There are 234 funds or institutions reporting positions in Aurora Cannabis. This is a decrease of 33 owner(s) or 12.36% in the last quarter. Average portfolio weight of all funds dedicated to ACB is 0.05%, an increase of 31.31%. Total shares owned by institutions increased in the last three months by 9.75% to 55,310K shares.
The put/call ratio of ACB is 0.05, indicating a bullish outlook.
What are Other Shareholders Doing?
Verition Fund Management holds 12,337K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 3,047K shares, representing an increase of 75.30%. The firm increased its portfolio allocation in ACB by 198.39% over the last quarter.
MJ - ETFMG Alternative Harvest ETF holds 11,387K shares representing 2.75% ownership of the company. In it's prior filing, the firm reported owning 8,346K shares, representing an increase of 26.71%. The firm increased its portfolio allocation in ACB by 21.32% over the last quarter.
Etf Managers Group holds 8,346K shares representing 2.01% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Renaissance Technologies holds 5,646K shares representing 1.36% ownership of the company. In it's prior filing, the firm reported owning 5,809K shares, representing a decrease of 2.88%. The firm decreased its portfolio allocation in ACB by 19.07% over the last quarter.
Mirae Asset Global Investments Co. holds 2,716K shares representing 0.66% ownership of the company. In it's prior filing, the firm reported owning 2,298K shares, representing an increase of 15.38%. The firm decreased its portfolio allocation in ACB by 11.93% over the last quarter.
Aurora Cannabis Background Information
(This description is provided by the company.)
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Canada, Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and Reliva. Providing customers with innovative, high-quality cannabis and hemp products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The average one-year price target for Aurora Cannabis (NASDAQ:ACB) has been revised to 0.75 / share. Average portfolio weight of all funds dedicated to ACB is 0.05%, an increase of 31.31%. The put/call ratio of ACB is 0.05, indicating a bullish outlook. | The average one-year price target for Aurora Cannabis (NASDAQ:ACB) has been revised to 0.75 / share. Average portfolio weight of all funds dedicated to ACB is 0.05%, an increase of 31.31%. The put/call ratio of ACB is 0.05, indicating a bullish outlook. | The average one-year price target for Aurora Cannabis (NASDAQ:ACB) has been revised to 0.75 / share. Average portfolio weight of all funds dedicated to ACB is 0.05%, an increase of 31.31%. The put/call ratio of ACB is 0.05, indicating a bullish outlook. | Average portfolio weight of all funds dedicated to ACB is 0.05%, an increase of 31.31%. The average one-year price target for Aurora Cannabis (NASDAQ:ACB) has been revised to 0.75 / share. The put/call ratio of ACB is 0.05, indicating a bullish outlook. |
36351.0 | 2023-09-28 00:00:00 UTC | Why Canopy Growth Stock Is Cratering Today | ACB | https://www.nasdaq.com/articles/why-canopy-growth-stock-is-cratering-today | nan | nan | What happened
Shares of the Canadian cannabis pioneer Canopy Growth (NASDAQ: CGC) are under pressure Thursday morning. Specifically, the marijuana company's shares were down by 12.9% on heavy volume as of 10:58 a.m. ET.
What's sparking this sell-off? Canopy Growth, along with several of its Canadian and American peers, has been blazing the comeback trail over the past month. Thanks to a recommendation by the U.S. Department of Health and Human Services to downgrade marijuana from Schedule I (no medical value) to Schedule III (drugs with a current medical use) in the Controlled Substances Act and recent progress on the Secure and Fair Enforcement (SAFE) Banking Act in the Senate, marijuana stocks have been on fire over this period. Canopy Growth stock, for instance, jumped by over 300% at one point in the prior 30 days.
CGC data by YCharts
So what
So why is Canopy Growth stock deep in the red today? Today's move appears to be little more than a broader reversion to the mean for both Canopy Growth and other recent high fliers like Aurora Cannabis (down 14% at the time of this writing).
The long and short of it is that Canopy Growth, along with many of its peers, probably won't be a fundamentally driven growth play until the U.S. removes marijuana from the Controlled Substances Act altogether, and the timing of this event is a complete unknown at this point.
Most experts think the Drug Enforcement Agency, which has the final say over marijuana's classification, will concur with the Department of Health and Human Services' recent recommendation to downgrade cannabis under the Controlled Substances Act. While a move to Schedule 3 would open the door for more research on the plant's purported medical benefits, it wouldn't end federal prohibition, which is what really matters for cannabis-based businesses in the States.
Now what
Is Canopy Growth stock a buy on this dip? It all depends on your appetite for risk. Canopy Growth could very well end up with an outsize piece of the massive cannabis market a decade from now. Then again, the U.S. government's cautious approach to full legalization could have unintended consequences for the industry over the long term, and could create a situation where marijuana is legally available only by prescription.
Indeed, a handful of U.S. lawmakers have expressed this exact concern in regard to the slow pace of legalization. To be fair, most marijuana advocates in the U.S. Congress don't share this particular concern, given the Food and Drug Administration's laissez-faire approach to cannabis regulation to date. Nevertheless, Canopy Growth stock is arguably a buy only if you side with the optimists on this all-important issue.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Most experts think the Drug Enforcement Agency, which has the final say over marijuana's classification, will concur with the Department of Health and Human Services' recent recommendation to downgrade cannabis under the Controlled Substances Act. While a move to Schedule 3 would open the door for more research on the plant's purported medical benefits, it wouldn't end federal prohibition, which is what really matters for cannabis-based businesses in the States. To be fair, most marijuana advocates in the U.S. Congress don't share this particular concern, given the Food and Drug Administration's laissez-faire approach to cannabis regulation to date. | What happened Shares of the Canadian cannabis pioneer Canopy Growth (NASDAQ: CGC) are under pressure Thursday morning. Thanks to a recommendation by the U.S. Department of Health and Human Services to downgrade marijuana from Schedule I (no medical value) to Schedule III (drugs with a current medical use) in the Controlled Substances Act and recent progress on the Secure and Fair Enforcement (SAFE) Banking Act in the Senate, marijuana stocks have been on fire over this period. Most experts think the Drug Enforcement Agency, which has the final say over marijuana's classification, will concur with the Department of Health and Human Services' recent recommendation to downgrade cannabis under the Controlled Substances Act. | Thanks to a recommendation by the U.S. Department of Health and Human Services to downgrade marijuana from Schedule I (no medical value) to Schedule III (drugs with a current medical use) in the Controlled Substances Act and recent progress on the Secure and Fair Enforcement (SAFE) Banking Act in the Senate, marijuana stocks have been on fire over this period. The long and short of it is that Canopy Growth, along with many of its peers, probably won't be a fundamentally driven growth play until the U.S. removes marijuana from the Controlled Substances Act altogether, and the timing of this event is a complete unknown at this point. 10 stocks we like better than Canopy Growth When our analyst team has a stock tip, it can pay to listen. | Thanks to a recommendation by the U.S. Department of Health and Human Services to downgrade marijuana from Schedule I (no medical value) to Schedule III (drugs with a current medical use) in the Controlled Substances Act and recent progress on the Secure and Fair Enforcement (SAFE) Banking Act in the Senate, marijuana stocks have been on fire over this period. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. That's right -- they think these 10 stocks are even better buys. |
36352.0 | 2023-09-28 00:00:00 UTC | Why Aurora Cannabis Stock Got Smoked Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-got-smoked-today | nan | nan | What happened
Stocks in the cannabis sector have been bid up in recent weeks thanks to some political news surrounding marijuana's legal status in the United States. Aurora Cannabis (NASDAQ: ACB) has been one of them with a 50% gain over the last month.
Today, however, Aurora stock is getting hit hard. As of 10:12 a.m. ET, its shares were down by 9.3%.
So what
Shares plunged because the company just announced it was selling stock to raise new capital. The good news is that it will use the $25 million raised to pay down some debt. The company could also gain another almost $4 million if an over-allotment option is exercised.
The bad news is that it will be costly for shareholders in two ways. The more than 46 million shares being sold to financial services firm Canaccord Genuity will dilute existing shareholders. Perhaps more importantly, the shares are priced at $0.54 after Aurora's shares closed at about $0.67 yesterday. That represents a 19% difference.
Investors aren't hitting the stock by that same amount perhaps because the company is putting the new capital to good use. Management will pay off a $25 million outstanding balance from existing convertible senior notes.
Now what
The stock is taking a hit mainly due to the pricing today, but it still makes sense for Aurora to take advantage of the recent jump in the stock price. That jump came after the Biden administration asked the Drug Enforcement Agency (DEA) to reclassify marijuana as a Schedule III drug from its current Schedule I status. Separately, legislation is pending in the U.S. to ease bank restrictions related to marijuana businesses.
Those potential tailwinds for the U.S. business helped Aurora and other Canadian cannabis stocks to soar recently. Aurora jumped at the chance to erase some debt. There is no free lunch, though, and investors are reacting to the associated costs today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) has been one of them with a 50% gain over the last month. What happened Stocks in the cannabis sector have been bid up in recent weeks thanks to some political news surrounding marijuana's legal status in the United States. The more than 46 million shares being sold to financial services firm Canaccord Genuity will dilute existing shareholders. | Aurora Cannabis (NASDAQ: ACB) has been one of them with a 50% gain over the last month. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis wasn't one of them! | Aurora Cannabis (NASDAQ: ACB) has been one of them with a 50% gain over the last month. Now what The stock is taking a hit mainly due to the pricing today, but it still makes sense for Aurora to take advantage of the recent jump in the stock price. 10 stocks we like better than Aurora Cannabis When our analyst team has a stock tip, it can pay to listen. | Aurora Cannabis (NASDAQ: ACB) has been one of them with a 50% gain over the last month. The good news is that it will use the $25 million raised to pay down some debt. Those potential tailwinds for the U.S. business helped Aurora and other Canadian cannabis stocks to soar recently. |
36353.0 | 2023-09-28 00:00:00 UTC | 2 Cheap Cannabis Stocks to Avoid in October | ACB | https://www.nasdaq.com/articles/2-cheap-cannabis-stocks-to-avoid-in-october | nan | nan | Cannabis stocks aren't exactly in vogue right now. All of the biggest public marijuana companies massively underperformed the market over the last 12 months, with nearly all of them losing a lot of their value, and there may not be relief in sight.
For the bargain-hunting investor, now is the ideal time to be on the lookout. But not every bruised stock is a genuine opportunity, and many are likely to lose even more value, at least in the near term. Therefore, here are two inexpensively valued cannabis stocks you should probably steer clear of even if you're looking for a deal.
1. Canopy Growth
Canopy Growth (NASDAQ: CGC) is a Canadian cultivator that looks cheap and appears to be exposed to a lot of upside from cannabis legalization in the U.S., but it's a trap. First, take a look at this chart:
CGC PS Ratio data by YCharts
As you can see, Canopy's price-to-sales (P/S) multiple of 1.5 is significantly lower than its peers like Tilray Brands, Curaleaf and Green Thumb Industries. But that does not mean it is priced at a bargain. Its quarterly revenue of $81 million is 20% lower than it was three years ago. Furthermore, its quarterly gross profits are down 77% in the same period, reaching over $4 million. The culprit for the decline is the collapse of the Canadian recreational marijuana market, which saw an overabundance of supply crash against a deficit of demand.
Since then, the company pivoted to focus on the U.S. market, scaling down its Canadian retail operations in favor of wholesaling. It's selling off a handful of its properties to pay down its long-term debt load of $789 million, generate more cash, and cut its expenses. It's also ceasing operations of money-burning business units, like BioSteel sports drinks. But those strategic shifts have yet to pay off.
Management expects to reach positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of its 2024 fiscal year. Still, it's hard to see why investors would be happy about that, as its quarterly cost of goods sold (COGS) has grown as a proportion of sales since three years ago, meaning that unit economics are still a major impediment to growing the bottom line. There's simply not much reason to buy shares of a company that's downsizing while also continuing to struggle with the same problems as it did in the past while additionally shifting its market focus simultaneously.
2. Aurora Cannabis
Aurora Cannabis (NASDAQ: ACB) is another stock worth avoiding for the moment despite its P/S of 1.3, and its story is quite similar to Canopy's. Hit hard by the Canadian cannabis market's decline, the business grew its quarterly revenue by only 10% in the last three years, arriving at $56 million in Q1 of its 2024 fiscal year. The last two quarters saw its sales in the European medicinal marijuana market skyrocket.
But that belies the bigger problem: its quarterly gross profits of $18.6 million are still 29% lower than three years ago. In short, Aurora massively overbuilt its supply capacity to attempt to capture a large slice of the Canadian medicinal market, and its task over the last couple of years has been to unwind that ambition and reach a sustainable scale for its operations. Earlier this year, it sold off one of its cultivation facilities in Canada, reducing its ability to serve demand in exchange for cutting overhead. And management has plans to continue slashing other expenses in hopes of reporting positive free cash flow (FCF) for its 2024 fiscal year.
Much like Canopy Growth, reaching that goal belies its sketchy unit economics, in which its quarterly COGS has risen as a percentage of revenue compared to where it was in 2020. It's possible that Aurora will manage to rectify its operations and become profitable in the long run. For now, investors should be concerned that it still isn't profitable despite three years of transformation, cost-cutting, and shifting of its markets. It's a bit too risky to approach, so avoid it.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Aurora Cannabis (NASDAQ: ACB) is another stock worth avoiding for the moment despite its P/S of 1.3, and its story is quite similar to Canopy's. First, take a look at this chart: CGC PS Ratio data by YCharts As you can see, Canopy's price-to-sales (P/S) multiple of 1.5 is significantly lower than its peers like Tilray Brands, Curaleaf and Green Thumb Industries. Still, it's hard to see why investors would be happy about that, as its quarterly cost of goods sold (COGS) has grown as a proportion of sales since three years ago, meaning that unit economics are still a major impediment to growing the bottom line. | Aurora Cannabis Aurora Cannabis (NASDAQ: ACB) is another stock worth avoiding for the moment despite its P/S of 1.3, and its story is quite similar to Canopy's. Canopy Growth Canopy Growth (NASDAQ: CGC) is a Canadian cultivator that looks cheap and appears to be exposed to a lot of upside from cannabis legalization in the U.S., but it's a trap. Hit hard by the Canadian cannabis market's decline, the business grew its quarterly revenue by only 10% in the last three years, arriving at $56 million in Q1 of its 2024 fiscal year. | Aurora Cannabis Aurora Cannabis (NASDAQ: ACB) is another stock worth avoiding for the moment despite its P/S of 1.3, and its story is quite similar to Canopy's. Hit hard by the Canadian cannabis market's decline, the business grew its quarterly revenue by only 10% in the last three years, arriving at $56 million in Q1 of its 2024 fiscal year. See the 10 stocks *Stock Advisor returns as of September 25, 2023 Alex Carchidi has no position in any of the stocks mentioned. | Aurora Cannabis Aurora Cannabis (NASDAQ: ACB) is another stock worth avoiding for the moment despite its P/S of 1.3, and its story is quite similar to Canopy's. Hit hard by the Canadian cannabis market's decline, the business grew its quarterly revenue by only 10% in the last three years, arriving at $56 million in Q1 of its 2024 fiscal year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Canopy Growth wasn't one of them! |
36354.0 | 2023-09-28 00:00:00 UTC | Quanterix Corporation (QTRX) Moves 7.2% Higher: Will This Strength Last? | ACB | https://www.nasdaq.com/articles/quanterix-corporation-qtrx-moves-7.2-higher%3A-will-this-strength-last | nan | nan | Quanterix Corporation QTRX shares rallied 7.2% in the last trading session to close at $27.39. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.7% gain over the past four weeks.
Quanterix recorded a strong price increase after Canaccord Genuity upgraded the company and raised the price target, indicating that the company is performing well and has strong growth potential in the market.
This company is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of +10%. Revenues are expected to be $27.4 million, up 2.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Quanterix Corporation, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on QTRX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Quanterix Corporation is part of the Zacks Medical - Products industry. Aurora Cannabis Inc. ACB, another stock in the same industry, closed the last trading session 5.1% lower at $0.67. ACB has returned 58% in the past month.
Aurora Cannabis Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. Compared to the company's year-ago EPS, this represents a change of +37.5%. Aurora Cannabis Inc. currently boasts a Zacks Rank of #3 (Hold).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Inc. ACB, another stock in the same industry, closed the last trading session 5.1% lower at $0.67. ACB has returned 58% in the past month. Click to get this free report Quanterix Corporation (QTRX) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Quanterix Corporation (QTRX) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Aurora Cannabis Inc. ACB, another stock in the same industry, closed the last trading session 5.1% lower at $0.67. ACB has returned 58% in the past month. | Click to get this free report Quanterix Corporation (QTRX) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Aurora Cannabis Inc. ACB, another stock in the same industry, closed the last trading session 5.1% lower at $0.67. ACB has returned 58% in the past month. | Aurora Cannabis Inc. ACB, another stock in the same industry, closed the last trading session 5.1% lower at $0.67. ACB has returned 58% in the past month. Click to get this free report Quanterix Corporation (QTRX) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. |
36355.0 | 2023-09-27 00:00:00 UTC | US Senate committee votes to advance amended marijuana banking bill | ACB | https://www.nasdaq.com/articles/us-senate-committee-votes-to-advance-amended-marijuana-banking-bill-0 | nan | nan | Adds details and background on the bill in paragraphs 3-6
Sept 27 (Reuters) - A U.S. Senate committee on Wednesday voted to advance a marijuana banking bill, raising hopes for the cash-dependent cannabis sector to get access to regular banking services.
U.S.-listed shares of Canopy Growth CGC.OWEED.TO , Cronos Group CRON.TO, CRON.O, Aurora Cannabis ACB.TO, ACB.O, SNDL SNDL.O, Tilray Brands TLRY.O climbed between 3% and 6.5% on the voting.
The Secure and Fair Enforcement Regulation Banking Act (SAFER) was introduced by a bipartisan group of senators last week. The bill will now move to the Senate floor.
An earlier version of the bill, the SAFE Banking Act, had failed to secure a Senate vote despite the House of Representatives passing it seven times.
Most banks in the country do not service cannabis companies as marijuana remains illegal at the federal level despite several states legalizing its medicinal and recreational use.
(Reporting by Arunima Kumar and Sourasis Bose in Bengaluru; Editing by Sriraj Kalluvila)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S.-listed shares of Canopy Growth CGC.OWEED.TO , Cronos Group CRON.TO, CRON.O, Aurora Cannabis ACB.TO, ACB.O, SNDL SNDL.O, Tilray Brands TLRY.O climbed between 3% and 6.5% on the voting. An earlier version of the bill, the SAFE Banking Act, had failed to secure a Senate vote despite the House of Representatives passing it seven times. Most banks in the country do not service cannabis companies as marijuana remains illegal at the federal level despite several states legalizing its medicinal and recreational use. | U.S.-listed shares of Canopy Growth CGC.OWEED.TO , Cronos Group CRON.TO, CRON.O, Aurora Cannabis ACB.TO, ACB.O, SNDL SNDL.O, Tilray Brands TLRY.O climbed between 3% and 6.5% on the voting. Adds details and background on the bill in paragraphs 3-6 Sept 27 (Reuters) - A U.S. Senate committee on Wednesday voted to advance a marijuana banking bill, raising hopes for the cash-dependent cannabis sector to get access to regular banking services. The Secure and Fair Enforcement Regulation Banking Act (SAFER) was introduced by a bipartisan group of senators last week. | U.S.-listed shares of Canopy Growth CGC.OWEED.TO , Cronos Group CRON.TO, CRON.O, Aurora Cannabis ACB.TO, ACB.O, SNDL SNDL.O, Tilray Brands TLRY.O climbed between 3% and 6.5% on the voting. Adds details and background on the bill in paragraphs 3-6 Sept 27 (Reuters) - A U.S. Senate committee on Wednesday voted to advance a marijuana banking bill, raising hopes for the cash-dependent cannabis sector to get access to regular banking services. An earlier version of the bill, the SAFE Banking Act, had failed to secure a Senate vote despite the House of Representatives passing it seven times. | U.S.-listed shares of Canopy Growth CGC.OWEED.TO , Cronos Group CRON.TO, CRON.O, Aurora Cannabis ACB.TO, ACB.O, SNDL SNDL.O, Tilray Brands TLRY.O climbed between 3% and 6.5% on the voting. Adds details and background on the bill in paragraphs 3-6 Sept 27 (Reuters) - A U.S. Senate committee on Wednesday voted to advance a marijuana banking bill, raising hopes for the cash-dependent cannabis sector to get access to regular banking services. The Secure and Fair Enforcement Regulation Banking Act (SAFER) was introduced by a bipartisan group of senators last week. |
36356.0 | 2023-09-26 00:00:00 UTC | 1 Green Flag and 2 Red Flags for Aurora Cannabis Stock | ACB | https://www.nasdaq.com/articles/1-green-flag-and-2-red-flags-for-aurora-cannabis-stock | nan | nan | Aurora Cannabis (NASDAQ: ACB) shareholders are thirsty for some good news. The company's shares are trading down around 88% over the last three years. That's not great for current shareholders, but investors on the sidelines might be looking for reasons to buy in hopes of a turnaround. Those reasons are few and far between at the moment as times are hard in the cannabis industry, and Aurora can't seem to catch a break.
Let's take a closer look at one of the new green flags worth knowing about with Aurora Cannabis as well as two relatively new red flags that could soon deepen the company's woes.
Green flag: Medicinal marijuana sales are picking up again
The bright spot in Aurora's latest earnings release on Aug. 10 was its quarterly revenue, which shot up by 48% year over year, hitting $56 million. This brought the company one step closer to revisiting the sales heights of its heyday in 2019.
The strong growth marks the second consecutive quarter in which Aurora experienced snappy revenue growth and supports the idea that the steep downtrend starting in early 2021 is now over. It's a clear green flag that the near-term future might continue to improve and eventually even surpass the past.
Management attributes the revenue rebound to strengthening demand in its global medicinal cannabis segment, which is responsible for 55% of its sales. In particular, Australia and the European Union (E.U.) were the hot spots. Growth in those areas is favorable, as the company might be able to hold onto its market share more effectively than in its home market of Canada, where cannabis prices remain depressed due to oversupply.
Red flag No. 1: Aurora may be delisted from the Nasdaq exchange
Aurora's stock currently trades around $0.81 per share. To be listed on the Nasdaq Composite, a business' shares must consistently meet the minimum bid price requirement of $1. But its stock hasn't been worth that much since before March of this year.
Per an agreement with the Nasdaq, starting from Sept. 19, Aurora has 180 days for its shares to meet the minimum bid requirement, once again, or it will be delisted. It's unclear what it can do differently to pump up its stock price. One option is to do a reverse stock split, but investors aren't going to like that and it would likely result in a further price drop for the (now fewer) shares.
Stiff headwinds remain in play in its primary cannabis market in Canada, with vast amounts of inexpensive marijuana continuing to outweigh demand. The financial markets, where cannabis stocks currently are sharply out of favor, are also unlikely to be much kinder to the company over the next six months.
If Aurora is delisted from the Nasdaq, it'll still be listed on the Toronto Stock Exchange (TSX). But that exchange sees just a tiny fraction of the Nasdaq's daily volume. In other words, getting delisted would be yet another serious headwind that would be an immediate headache for shareholders.
Red flag No. 2: Aurora is running quite short on cash
Aurora's trailing-12-month (TTM) operating expenses are $161 million. It has $60 million in current debt and capital lease obligations due within a year. Despite improving somewhat over the last few years, its operating margin is still nowhere near breakeven. The company's cash, equivalents, and short-term investments total only $119 million.
Management plans to realize cost efficiencies worth around $30 million during its 2024 fiscal year, but that won't be enough. So investors should expect the company to take on more debt.
The savings aren't likely to be enough on their own for the company to reach its goal of reporting positive free cash flow (FCF) in the 2024 calendar year. There's still time for its fortunes to improve on that front. But its near-term finances are a big red flag, nonetheless.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) shareholders are thirsty for some good news. Management attributes the revenue rebound to strengthening demand in its global medicinal cannabis segment, which is responsible for 55% of its sales. Stiff headwinds remain in play in its primary cannabis market in Canada, with vast amounts of inexpensive marijuana continuing to outweigh demand. | Aurora Cannabis (NASDAQ: ACB) shareholders are thirsty for some good news. Green flag: Medicinal marijuana sales are picking up again The bright spot in Aurora's latest earnings release on Aug. 10 was its quarterly revenue, which shot up by 48% year over year, hitting $56 million. Growth in those areas is favorable, as the company might be able to hold onto its market share more effectively than in its home market of Canada, where cannabis prices remain depressed due to oversupply. | Aurora Cannabis (NASDAQ: ACB) shareholders are thirsty for some good news. Let's take a closer look at one of the new green flags worth knowing about with Aurora Cannabis as well as two relatively new red flags that could soon deepen the company's woes. Green flag: Medicinal marijuana sales are picking up again The bright spot in Aurora's latest earnings release on Aug. 10 was its quarterly revenue, which shot up by 48% year over year, hitting $56 million. | Aurora Cannabis (NASDAQ: ACB) shareholders are thirsty for some good news. Green flag: Medicinal marijuana sales are picking up again The bright spot in Aurora's latest earnings release on Aug. 10 was its quarterly revenue, which shot up by 48% year over year, hitting $56 million. 1: Aurora may be delisted from the Nasdaq exchange Aurora's stock currently trades around $0.81 per share. |
36357.0 | 2023-09-22 00:00:00 UTC | Why Canopy Growth Stock Popped 12% on Friday | ACB | https://www.nasdaq.com/articles/why-canopy-growth-stock-popped-12-on-friday | nan | nan | What happened
Marijuana stocks moved higher on Friday, with cannabis company Canopy Growth (NASDAQ: CGC) gaining more than 12% earlier today and Aurora Cannabis (NASDAQ: ACB) rising more than 7% before each settled down.
Political maneuvering in Washington and how investors are interpreting it might explain why investors are enthusiastic about marijuana stocks. Unfortunately, these same investors may be drawing the wrong conclusions.
So what
So what are the politicos up to this time? On the one hand, there's real progress in the Senate, with efforts to advance a Secure and Fair Enforcement (SAFE) Banking Act that would permit banks to provide services to marijuana businesses in states that have legalized cannabis sales. By all accounts, this bill should exit committee and head to the Senate floor for consideration as early as next week.
At the same time, in the House of Representatives, advocates of marijuana legalization have reintroduced the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which would go beyond mere banking reform to legalize marijuana entirely.
Simultaneously, news source Marijuana Moment reported today that Senate Majority Leader Chuck Schumer, a New York Democrat, is circulating a petition online asking voters to "sign on to demand that the federal government end the prohibition of marijuana."
Now what
Full-scale legalization of cannabis would increase sales of the drug, and maybe even profits from those sales, and that's probably why investors in Canopy Growth and Aurora Cannabis are thinking this news is good for their stocks.
The problem, as Marijuana Moment points out, is this petition isn't aimed at winning legislators' votes, but rather is targeted at voters to build a political campaign's email and fund-raising lists. So it's more of a political pitch than a legislative pitch to win votes for legalizing marijuana.
Reinforcing this view, Marijuana Moment points out that Schumer has not actually introduced a marijuana legalization bill in the Senate to accompany his fundraising pitch.
What implications does this hold for marijuana investors? If Schumer's real motivation is to raise campaign funds, then logically he's going to want to keep the question of marijuana legalization open for as long as possible (and almost certainly through the coming election) to maximize the amount of money coming in. And if that's the case, then contrary to what the petition seems to be promising -- imminent legalization -- it's more likely he'll be motivated to delay a vote on that.
So what sounds like good news is actually bad news today. And even the marijuana stocks that are racking up gains will probably soon give them back.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Marijuana stocks moved higher on Friday, with cannabis company Canopy Growth (NASDAQ: CGC) gaining more than 12% earlier today and Aurora Cannabis (NASDAQ: ACB) rising more than 7% before each settled down. By all accounts, this bill should exit committee and head to the Senate floor for consideration as early as next week. Simultaneously, news source Marijuana Moment reported today that Senate Majority Leader Chuck Schumer, a New York Democrat, is circulating a petition online asking voters to "sign on to demand that the federal government end the prohibition of marijuana." | What happened Marijuana stocks moved higher on Friday, with cannabis company Canopy Growth (NASDAQ: CGC) gaining more than 12% earlier today and Aurora Cannabis (NASDAQ: ACB) rising more than 7% before each settled down. The problem, as Marijuana Moment points out, is this petition isn't aimed at winning legislators' votes, but rather is targeted at voters to build a political campaign's email and fund-raising lists. So it's more of a political pitch than a legislative pitch to win votes for legalizing marijuana. | What happened Marijuana stocks moved higher on Friday, with cannabis company Canopy Growth (NASDAQ: CGC) gaining more than 12% earlier today and Aurora Cannabis (NASDAQ: ACB) rising more than 7% before each settled down. At the same time, in the House of Representatives, advocates of marijuana legalization have reintroduced the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which would go beyond mere banking reform to legalize marijuana entirely. Now what Full-scale legalization of cannabis would increase sales of the drug, and maybe even profits from those sales, and that's probably why investors in Canopy Growth and Aurora Cannabis are thinking this news is good for their stocks. | What happened Marijuana stocks moved higher on Friday, with cannabis company Canopy Growth (NASDAQ: CGC) gaining more than 12% earlier today and Aurora Cannabis (NASDAQ: ACB) rising more than 7% before each settled down. Now what Full-scale legalization of cannabis would increase sales of the drug, and maybe even profits from those sales, and that's probably why investors in Canopy Growth and Aurora Cannabis are thinking this news is good for their stocks. Reinforcing this view, Marijuana Moment points out that Schumer has not actually introduced a marijuana legalization bill in the Senate to accompany his fundraising pitch. |
36358.0 | 2023-09-21 00:00:00 UTC | Why Aurora Cannabis Stock Gave Up Some Gains Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-gave-up-some-gains-today | nan | nan | What happened
Shares of cannabis companies Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) both plunged more than 10% in early trading Thursday morning. Canopy Growth quickly recovered most of its losses, and as of 10:30 a.m. ET today is only down about 1.8%.
Aurora Cannabis didn't and is still down a depressing 7.2%. The question is why. And the answer seems to be: Congress.
So what
The U.S. Senate is currently preparing the Secure and Fair Enforcement (SAFE) Banking Act for a vote. If passed, the law would make it easier for banks to provide services to marijuana businesses, a positive for marijuana stocks.
And passage actually looks pretty likely this time around, with 42 co-sponsors on the Senate bill, a likely 60 total votes in support, and then a vote in the House of Representatives -- which has already passed the bill multiple times in years past.
The problem is that supporters of marijuana banking reform could run into problems from supporters of full-scale legalization in the House. As cannabis news source Marijuana Moment reports today, House supporters of legalization have just reintroduced the broader Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act for consideration.
Now what
So if marijuana banking reform is good news for marijuana stocks, then wouldn't actual legalization be even better news?
Sure...if it passes. Full-scale legalization would logically make it easier to buy and sell cannabis, resulting in greater revenue for companies like Canopy and Aurora, greater scale of production, and potentially positive profit margins as a result.
The problem is that the last election cycle saw several supporters of legalization replaced by opponents, and the MORE Act currently has only 33 co-sponsors -- all Democrats. And this suggests that the MORE Act could be viewed as less bipartisan than the SAFE Banking Act.
If, by the time the SAFE Banking Act passes the Senate and moves to the House, legislators there start looking at marijuana regulation in general as a partisan issue, this could actually end up hurting the chances for passage of either bill, with the result that neither the MORE Act nor the SAFE Banking Act pass.
That's the risk in a nutshell: that legalization advocates' reach might be exceeding their grasp. It's a risk worth considering, and today, that's just what investors seem to be doing.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of cannabis companies Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) both plunged more than 10% in early trading Thursday morning. Full-scale legalization would logically make it easier to buy and sell cannabis, resulting in greater revenue for companies like Canopy and Aurora, greater scale of production, and potentially positive profit margins as a result. The problem is that the last election cycle saw several supporters of legalization replaced by opponents, and the MORE Act currently has only 33 co-sponsors -- all Democrats. | What happened Shares of cannabis companies Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) both plunged more than 10% in early trading Thursday morning. The problem is that supporters of marijuana banking reform could run into problems from supporters of full-scale legalization in the House. Full-scale legalization would logically make it easier to buy and sell cannabis, resulting in greater revenue for companies like Canopy and Aurora, greater scale of production, and potentially positive profit margins as a result. | What happened Shares of cannabis companies Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) both plunged more than 10% in early trading Thursday morning. As cannabis news source Marijuana Moment reports today, House supporters of legalization have just reintroduced the broader Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act for consideration. Now what So if marijuana banking reform is good news for marijuana stocks, then wouldn't actual legalization be even better news? | What happened Shares of cannabis companies Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) both plunged more than 10% in early trading Thursday morning. If passed, the law would make it easier for banks to provide services to marijuana businesses, a positive for marijuana stocks. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis wasn't one of them! |
36359.0 | 2023-09-20 00:00:00 UTC | Cannabis Stocks Are Red-Hot Right Now and This Could Send Them Even Higher | ACB | https://www.nasdaq.com/articles/cannabis-stocks-are-red-hot-right-now-and-this-could-send-them-even-higher | nan | nan | The growth opportunities in the marijuana industry are massive. One estimate from Fortune Business Insights has the global industry growing to nearly eight times its value to more than $444 billion by the end of the decade. But a lot of that hinges on what happens with legalization, both in the U.S. and around the globe.
There hasn't been any significant reform in the U.S. (at the federal level), but investors are getting excited about recent developments. And that enthusiasm could soar higher in the weeks and months ahead.
Potential marijuana reform has investors talking about pot stocks again
Late last month, there was news that the Department of Health and Human Services recommended that the U.S. government reschedule marijuana. After conducting an 11-month review, the department concluded that marijuana doesn't belong in the same classification as heroin and other harmful drugs. The proposed change would reclassify marijuana from a Schedule I substance to a Schedule III substance, where the Drug Enforcement Administration (DEA) says there is a "moderate to low potential for physical and psychological dependence."
It's ultimately up to the DEA whether it will make the change, but the mere recommendation has been enough to get investors more bullish on pot stocks again. And with valuations taking a beating in recent years, simply getting investors' attention is a win for this struggling industry. Between Aug. 30, when the news was announced, and the end of last week (Sep. 15), shares of Aurora Cannabis (NASDAQ: ACB) rose by 112%, and Canopy Growth (NASDAQ: CGC) skyrocketed even higher by 197%.
But as hot as pot stocks have been recently, there's another growth catalyst that could lift them even higher.
Will the SAFE Banking Act finally obtain approval?
One piece of legislation that could move pot stocks is the SAFE Banking Act. It won't legalize marijuana, but it will give U.S.-based marijuana companies the ability to freely and easily do business with the big banks. Currently, it's not easy for businesses involved with marijuana to obtain banking services. While it's not impossible, big banks shy away from the industry due to the problems that might arise with the federal government for doing so.
The SAFE Banking Act has made it through the House several times, only to end up going nowhere afterward. But now there's an opportunity to strike while the iron is hot and while regulators are talking about marijuana. There are reports that there may be a hearing within the next five weeks involving the Senate Banking Committee.
Having the committee green-light the bill could set the wheels in motion all over again in Congress. It could, however, also lead to yet another letdown for the marijuana industry and its investors. But if attitudes are indeed changing on marijuana, then there's definitely an outside chance that this time could really be different for the bill.
Why passing the bill matters
Marijuana won't become legal if the SAFE Banking Act passes, but it can potentially be a watershed moment for the industry. Without any significant marijuana reform passing at the federal level, it would finally be a sign that the government is taking a serious look at the substance, and SAFE Banking may prove to be an important step in getting the needle moving.
For a company such as Canopy Growth, which has established the special purpose vehicle Canopy USA to house its U.S.-based investments, the payoff is easy to see. If SAFE Banking obtains approval, the Nasdaq may ease its views on marijuana as well and potentially allow the company to consolidate the results of Canopy USA.
And if the bill ultimately leads to marijuana legalization, then Canopy Growth will again stand to benefit in a big way if it can finally enter the U.S. pot market, which has been a big part of its long-term strategy. In 2019, Canopy Growth first announced plans to acquire multi-state operator (MSO) Acreage Holdings.
In Aurora's case, it's a bit more surprising that the stock is surging as much as it is. The company hasn't been lining up acquisitions in the U.S.. In fact, its focus has been on the international medical marijuana industry. Currently, the consumer cannabis business accounts for less than one-quarter of the company's total revenue. But if a new U.S. cannabis market were to open up, it wouldn't be a surprise if the company were to alter its strategy.
Aurora has also been giving investors more of a reason to be optimistic about its operations. Earlier this month, it announced that it was repurchasing convertible notes and reducing its debt and interest costs as it looks to obtain positive free cash flow by the end of next year.
Investors should remain cautious
It can be tempting to buy up these stocks, given their recent gains. But the danger with this industry is that it is highly volatile, and things can change quickly. If the SAFE Banking Act fails to pass again or the DEA decides against rescheduling marijuana, pot stocks could quickly give back these recent gains.
Investors shouldn't forget that over the past five years, both of these stocks are still down more than 97%. While you can make the argument that given that kind of decline, there's massive upside if marijuana legislation passes, it's also hard to ignore the utter failure and horrible investments that these two stocks have proven to be.
If you have a high risk tolerance, then you may still want to consider investing in the cannabis industry -- although Canopy Growth and Aurora Cannabis might not be your best options. Instead, you may want to consider some of the top MSOs in the country.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Between Aug. 30, when the news was announced, and the end of last week (Sep. 15), shares of Aurora Cannabis (NASDAQ: ACB) rose by 112%, and Canopy Growth (NASDAQ: CGC) skyrocketed even higher by 197%. Without any significant marijuana reform passing at the federal level, it would finally be a sign that the government is taking a serious look at the substance, and SAFE Banking may prove to be an important step in getting the needle moving. Earlier this month, it announced that it was repurchasing convertible notes and reducing its debt and interest costs as it looks to obtain positive free cash flow by the end of next year. | Between Aug. 30, when the news was announced, and the end of last week (Sep. 15), shares of Aurora Cannabis (NASDAQ: ACB) rose by 112%, and Canopy Growth (NASDAQ: CGC) skyrocketed even higher by 197%. Will the SAFE Banking Act finally obtain approval? Why passing the bill matters Marijuana won't become legal if the SAFE Banking Act passes, but it can potentially be a watershed moment for the industry. | Between Aug. 30, when the news was announced, and the end of last week (Sep. 15), shares of Aurora Cannabis (NASDAQ: ACB) rose by 112%, and Canopy Growth (NASDAQ: CGC) skyrocketed even higher by 197%. Potential marijuana reform has investors talking about pot stocks again Late last month, there was news that the Department of Health and Human Services recommended that the U.S. government reschedule marijuana. Why passing the bill matters Marijuana won't become legal if the SAFE Banking Act passes, but it can potentially be a watershed moment for the industry. | Between Aug. 30, when the news was announced, and the end of last week (Sep. 15), shares of Aurora Cannabis (NASDAQ: ACB) rose by 112%, and Canopy Growth (NASDAQ: CGC) skyrocketed even higher by 197%. Potential marijuana reform has investors talking about pot stocks again Late last month, there was news that the Department of Health and Human Services recommended that the U.S. government reschedule marijuana. It won't legalize marijuana, but it will give U.S.-based marijuana companies the ability to freely and easily do business with the big banks. |
36360.0 | 2023-09-19 00:00:00 UTC | Why Aurora Cannabis and Canopy Growth Popped Today, but Cresco Labs Dropped | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-and-canopy-growth-popped-today-but-cresco-labs-dropped | nan | nan | What happened
Marijuana stocks were trending in different directions Tuesday morning. Cresco Labs (OTC: CRLBF) shares shed 6.7% through 10:37 a.m. ET, while rival Aurora Cannabis (NASDAQ: ACB) gained 6.5%. And Canopy Growth (NASDAQ: CGC) -- which spiked by nearly 9% right after market-open -- has already given back most of its gains, but is still hanging onto a 1.4% gain.
So what exactly is it that's giving marijuana investors the heebie-jeebies?
So what
Big picture, the song remains the same (if you'll pardon the mixed metaphor).
In Washington, D.C., there's been no clear response yet from the Drug Enforcement Agency to the Department of Health and Human Services' recommendation that marijuana be rescheduled to a level that would make legalizing marijuana for medical purposes easier. In Congress, however, work continues apace in a Senate committee to finalize a version of the SAFE Banking Act, which would permit banks to provide banking services to marijuana companies in states where the drug is legal. A committee vote to move the bill to the Senate floor is expected mid-next week, and legislators are optimistic that, this year, at last, the act shall pass.
In support of that, Marijuana Moment reported Tuesday morning that a coalition of 35 "cannabis trade associations, drug policy reform groups," and even the United Food and Commercial Workers International Union has sent a letter to Congress urging it to pass the SAFE Banking Act. As the letter's signatories stress, preventing marijuana businesses from being able to legally deposit their income into banks forces small businesses to operate mostly in cash, and makes them a target for criminals -- there were as many as 100 robberies of cannabis businesses between November 2021 and April 2022 in Washington state alone.
This latest addition to the chorus in favor of the SAFE Banking Act sounds like good news for marijuana stocks. Anything that makes operating in the marijuana space easier and more profitable for small businesses is likely to filter up and benefit the bigger companies that produce the marijuana in the first place.
The problem is that the closer we get to SAFE Banking Act passage -- as it becomes less like a hope and more like a reality -- the more investors are going to have to consider whether the law will make a big enough difference to the publicly traded marijuana companies to turn one or more of them profitable.
In that regard, mention is often made of Canada, where marijuana has been fully legal for years, yet still remains an unprofitable business for big players such as Canopy Growth and Aurora Cannabis. However, what many investors may not know is that Canadian banks remain reluctant to offer banking services to Canadian pot businesses.
"Canadian cannabis companies often face similar challenges in finding banks willing to work with them," the marijuana news site StratCann reported late last year. The reason seems to be that Canadian banks often have cross-border ties to U.S. banks, and fear punishment from U.S. regulators even if they are only working with legal Canadian cannabis businesses.
Potentially, therefore, if Congress passes the SAFE Banking Act, it could benefit not only the U.S. marijuana industry, but the Canadian marijuana industry as well.
Now what
And now, one final hopeful note for U.S. marijuana investors. Earlier this month, you may have heard that Aurora Cannabis announced a plan to issue shares to raise cash with which to pay down its debt -- in order to lower its interest payments and make it easier for the company to achieve positive free cash flow (FCF) next year. Investors quickly rewarded the company with significant stock price gains. Recognizing that, on Tuesday, Aurora Cannabis doubled down on the idea.
As management just announced, the company will buy back a further $9.6 million worth of its convertible senior debt, and will pay for that by issuing and selling another 13.5 million Aurora Cannabis shares. That is in addition to the $9 million worth of debt Aurora has already promised to pay down by issuing 20.1 million shares back on Sept. 11.
The more debt Aurora pays down, the closer it will get to positive FCF. The closer Aurora gets to positive FCF, the more its stock price goes up. The more its stock price goes up ... the cheaper it gets to issue more shares and pay down more debt.
Lather, rinse, and repeat.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ET, while rival Aurora Cannabis (NASDAQ: ACB) gained 6.5%. In support of that, Marijuana Moment reported Tuesday morning that a coalition of 35 "cannabis trade associations, drug policy reform groups," and even the United Food and Commercial Workers International Union has sent a letter to Congress urging it to pass the SAFE Banking Act. The problem is that the closer we get to SAFE Banking Act passage -- as it becomes less like a hope and more like a reality -- the more investors are going to have to consider whether the law will make a big enough difference to the publicly traded marijuana companies to turn one or more of them profitable. | ET, while rival Aurora Cannabis (NASDAQ: ACB) gained 6.5%. In Congress, however, work continues apace in a Senate committee to finalize a version of the SAFE Banking Act, which would permit banks to provide banking services to marijuana companies in states where the drug is legal. In that regard, mention is often made of Canada, where marijuana has been fully legal for years, yet still remains an unprofitable business for big players such as Canopy Growth and Aurora Cannabis. | ET, while rival Aurora Cannabis (NASDAQ: ACB) gained 6.5%. In Congress, however, work continues apace in a Senate committee to finalize a version of the SAFE Banking Act, which would permit banks to provide banking services to marijuana companies in states where the drug is legal. As the letter's signatories stress, preventing marijuana businesses from being able to legally deposit their income into banks forces small businesses to operate mostly in cash, and makes them a target for criminals -- there were as many as 100 robberies of cannabis businesses between November 2021 and April 2022 in Washington state alone. | ET, while rival Aurora Cannabis (NASDAQ: ACB) gained 6.5%. In Congress, however, work continues apace in a Senate committee to finalize a version of the SAFE Banking Act, which would permit banks to provide banking services to marijuana companies in states where the drug is legal. The closer Aurora gets to positive FCF, the more its stock price goes up. |
36361.0 | 2023-09-19 00:00:00 UTC | Aurora Confirms Share Transfer To Nasdaq Capital Market; To Repurchase $9.6 Mln Of Senior Notes | ACB | https://www.nasdaq.com/articles/aurora-confirms-share-transfer-to-nasdaq-capital-market-to-repurchase-%249.6-mln-of-senior | nan | nan | (RTTNews) - Aurora Cannabis Inc. (ACB), a Canadian cannabis producer, said on Tuesday that it has received approval to transfer the listing of its shares to the Nasdaq Capital Market from the Nasdaq Global Select Market, with effect from September 19.
The transfer is expected to allow the firm to seek an additional 180 days to regain compliance with the minimum bid price requirement for its Nasdaq listing.
The firm noted that its shares will continue to trade in the U.S. under the ticker 'ACB' and the share trading will not be affected by the transfer. ACB shares continue to be listed on the Toronto Stock Exchange as the deficiency does not impact the company's status with its TSX listing.
In addition, Aurora has agreed to repurchase around C$13 million or $9.6 million principal amount of its convertible senior notes satisfied by the issuance of around 13.5 million shares.
Post transaction, Aurora will have approximately C$39.6 million or $29.2 million of notes outstanding.
The transaction aims to further reduce the company's debt and annual cash interest costs to achieve the target of positive free cash flow in 2024.
Aurora has repurchased around C$428 million or $316 million principal amount of notes since December 2021, resulting in total cash interest savings of approximately C$32 million or $24.1 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Aurora Cannabis Inc. (ACB), a Canadian cannabis producer, said on Tuesday that it has received approval to transfer the listing of its shares to the Nasdaq Capital Market from the Nasdaq Global Select Market, with effect from September 19. The firm noted that its shares will continue to trade in the U.S. under the ticker 'ACB' and the share trading will not be affected by the transfer. ACB shares continue to be listed on the Toronto Stock Exchange as the deficiency does not impact the company's status with its TSX listing. | (RTTNews) - Aurora Cannabis Inc. (ACB), a Canadian cannabis producer, said on Tuesday that it has received approval to transfer the listing of its shares to the Nasdaq Capital Market from the Nasdaq Global Select Market, with effect from September 19. The firm noted that its shares will continue to trade in the U.S. under the ticker 'ACB' and the share trading will not be affected by the transfer. ACB shares continue to be listed on the Toronto Stock Exchange as the deficiency does not impact the company's status with its TSX listing. | (RTTNews) - Aurora Cannabis Inc. (ACB), a Canadian cannabis producer, said on Tuesday that it has received approval to transfer the listing of its shares to the Nasdaq Capital Market from the Nasdaq Global Select Market, with effect from September 19. The firm noted that its shares will continue to trade in the U.S. under the ticker 'ACB' and the share trading will not be affected by the transfer. ACB shares continue to be listed on the Toronto Stock Exchange as the deficiency does not impact the company's status with its TSX listing. | (RTTNews) - Aurora Cannabis Inc. (ACB), a Canadian cannabis producer, said on Tuesday that it has received approval to transfer the listing of its shares to the Nasdaq Capital Market from the Nasdaq Global Select Market, with effect from September 19. The firm noted that its shares will continue to trade in the U.S. under the ticker 'ACB' and the share trading will not be affected by the transfer. ACB shares continue to be listed on the Toronto Stock Exchange as the deficiency does not impact the company's status with its TSX listing. |
36362.0 | 2023-09-18 00:00:00 UTC | Why Canopy Growth, Aurora Cannabis, and Cresco Labs Stocks Fell on Monday | ACB | https://www.nasdaq.com/articles/why-canopy-growth-aurora-cannabis-and-cresco-labs-stocks-fell-on-monday | nan | nan | What happened
Marijuana stocks started out the new week on a down note Monday, with shares of Aurora Cannabis (NASDAQ: ACB) slipping 6%, Cresco Labs (OTC: CRLBF) sliding 6.2%, and Canopy Growth (NASDAQ: CGC) down 14.4%.
Unsurprisingly, Canopy Growth is probably the stock that started it all.
So what
This morning, Canopy Growth announced that it will create 22.9 million new Canopy Growth shares and sell them for $1.09 each in a private placement. Investors who paid as much as $1.35 per share for Canopy Growth stock as recently as Friday are understandably perturbed that private investors are getting a chance to buy the stock for a nearly 20% discount.
They may be even less happy to learn that the placement contains an "overallotment" option guaranteeing that, if demand is strong enough, these private investors may be able to buy an additional 22.9 million shares for the same low price. And that each share being sold in this placement will be bundled with a warrant that acts as a free call option enabling the investors to buy an additional share for $1.35 at any time in the next five years.
On the plus side, of course, Canopy Growth stands to gain anywhere from $25 million to $50 million in new funds from the offering -- money that management says it will use for "for working capital and other general corporate purposes." Investors don't seem to think that advantage outweighs the sweetheart nature of the deal terms as described, however, and they're not happy about it.
Now what
Of course, all of the above mainly explains why investors are upset with Canopy Growth today. Why, though, are Cresco Labs and Aurora Cannabis following Canopy stock lower if Canopy is the only stock giving away the store, so to speak?
Well, investors may be extrapolating from Canopy Growth's need for more funds, and calculating that Aurora and Cresco may also need to make similar moves in the future. And they may be right about that.
After all, while Canopy Growth burned more than twice as much cash ($434 million, according to data from S&P Global Market Intelligence) over the past 12 months as did Aurora ($121 million) and Cresco ($21 million) combined, none of these three stocks is currently generating positive free cash flow. All of them are unprofitable.
On the plus side, though, all three of these stocks stand to benefit if the U.S. Congress passes its SAFE Banking Act to legalize banks offering banking services to marijuana companies -- and according to Marijuana Moment, a committee vote to send that bill to the Senate floor for a vote could take place as early as next week. What's more, the bill's Republican sponsor is assuring investors today that "we've got enough votes to get it passed."
Don't be surprised then, if volatile marijuana stocks that are down today start drifting higher again as we get closer to the date of the committee vote. Don't be surprised if these stocks positively rocket again when (or if) it becomes clear that the SAFE Banking Act will become law.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Marijuana stocks started out the new week on a down note Monday, with shares of Aurora Cannabis (NASDAQ: ACB) slipping 6%, Cresco Labs (OTC: CRLBF) sliding 6.2%, and Canopy Growth (NASDAQ: CGC) down 14.4%. They may be even less happy to learn that the placement contains an "overallotment" option guaranteeing that, if demand is strong enough, these private investors may be able to buy an additional 22.9 million shares for the same low price. Well, investors may be extrapolating from Canopy Growth's need for more funds, and calculating that Aurora and Cresco may also need to make similar moves in the future. | What happened Marijuana stocks started out the new week on a down note Monday, with shares of Aurora Cannabis (NASDAQ: ACB) slipping 6%, Cresco Labs (OTC: CRLBF) sliding 6.2%, and Canopy Growth (NASDAQ: CGC) down 14.4%. Why, though, are Cresco Labs and Aurora Cannabis following Canopy stock lower if Canopy is the only stock giving away the store, so to speak? On the plus side, though, all three of these stocks stand to benefit if the U.S. Congress passes its SAFE Banking Act to legalize banks offering banking services to marijuana companies -- and according to Marijuana Moment, a committee vote to send that bill to the Senate floor for a vote could take place as early as next week. | What happened Marijuana stocks started out the new week on a down note Monday, with shares of Aurora Cannabis (NASDAQ: ACB) slipping 6%, Cresco Labs (OTC: CRLBF) sliding 6.2%, and Canopy Growth (NASDAQ: CGC) down 14.4%. Investors who paid as much as $1.35 per share for Canopy Growth stock as recently as Friday are understandably perturbed that private investors are getting a chance to buy the stock for a nearly 20% discount. Why, though, are Cresco Labs and Aurora Cannabis following Canopy stock lower if Canopy is the only stock giving away the store, so to speak? | What happened Marijuana stocks started out the new week on a down note Monday, with shares of Aurora Cannabis (NASDAQ: ACB) slipping 6%, Cresco Labs (OTC: CRLBF) sliding 6.2%, and Canopy Growth (NASDAQ: CGC) down 14.4%. Unsurprisingly, Canopy Growth is probably the stock that started it all. So what This morning, Canopy Growth announced that it will create 22.9 million new Canopy Growth shares and sell them for $1.09 each in a private placement. |
36363.0 | 2023-09-17 00:00:00 UTC | Is Aurora Cannabis Stock a Buy Now? | ACB | https://www.nasdaq.com/articles/is-aurora-cannabis-stock-a-buy-now | nan | nan | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. The company was initially seen as one of the frontrunners in the race to dominate this field, but things haven't turned out so well.
But could Aurora Cannabis be on the verge of making a comeback? The company recently announced some news that has the market buzzing, not to mention there are some interesting industrywide developments. With all that going on, let's find out whether investors should consider giving a second thought to the pot grower.
Benefitting from multiple tailwinds
On Sept. 8, Aurora Cannabis announced a move to reduce its debt and interest expense. The company said it had repurchased $9 million worth of convertible debt between mid-August and early September. Aurora Cannabis raised the money to do so by issuing 20.1 million new shares. This is part of the company's goal to become free-cash-flow-positive next year -- something that would be an achievement considering how poorly it has performed in recent years, both financially and on the stock market.
That's not the only reason Aurora Cannabis has been on fire lately. The company is also benefiting from positive news on the regulatory front. The U.S. Department of Health and Human Services (HHS) recently recommended that marijuana be downgraded from a Schedule I controlled substance to Schedule III. If the agency in charge, the U.S. Drug Enforcement Administration (DEA), decides to follow this recommendation, things will get substantially easier for pot companies.
Schedule III substances are classified as less prone to dependence than those in the first or second category. For context, heroin is a Schedule I drug. Under the new HHS proposal, marijuana would also become recognized as having accepted medical use in the country -- a potential game changer for the pot industry. Yes, cannabis would remain illegal at the federal level, but things would get substantially less stringent for Aurora Cannabis and its peers.
Finally, there is a bill making its way through the U.S. Senate right now that could give pot companies easier access to various banking services, which they currently lack due to the legal landscape surrounding marijuana in the country. These are all positive developments for Aurora Cannabis and the rest of the industry, but is that enough to buy the stock?
How long will this momentum last?
Let's assume the DEA does reschedule cannabis as per the HHS's recommendation, and lawmakers pass this new bill seeking to grant cannabis companies easier access to traditional means of funding. Even under this scenario, it's not clear that Aurora Cannabis is a buy. Consider the company's financial results. In its latest period -- the first quarter of its fiscal year 2024, ended June 30 -- Aurora Cannabis reported revenue of 75.1 million Canadian dollars (about $55.7 million), up 50% year over year.
That sounds great, at least until one realizes that much of that growth wasn't organic and was instead due to an acquisition the company made in August 2022. This has been part of Aurora's strategy for years. The company has sought to dominate the market by making a series of acquisitions. There is nothing wrong with this strategy in principle, but Aurora Cannabis hardly had the financial means to splurge on takeovers, so it often had to issue new shares, diluting existing shareholders in the process.
Perhaps that would have been fine if these acquisitions had panned out and the company's financial results had increased substantially as a result, but that largely didn't happen. Aurora Cannabis' revenue growth has been unimpressive in the past five years after initially soaring once pot became legal in Canada.
Data source: YCharts
In fairness, that's not entirely the company's fault. The Canadian market had been difficult, with intense competition (including from illicit markets), stiff regulations to obtain cannabis licenses, and other challenges. That's why there is no reason to think that Aurora Cannabis will suddenly turn things around even if the legal landscape substantially improves in the U.S. That will almost certainly attract plenty of new companies, and, based on the company's history, I wouldn't pick Aurora Cannabis to be one of the winners.
The company also remains unprofitable, although it has improved on this front in recent years and looks close to profitability.
Data source: YCharts
Aurora Cannabis may or may not become free-cash-flow-positive next year. In my view, it doesn't matter. The company's track record is too poor for that to somehow tip the scales in its favor. It should take much more than that for most investors to consider initiating a position. For now, it's best to stay away and watch how things unfold from a safe distance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. If the agency in charge, the U.S. Drug Enforcement Administration (DEA), decides to follow this recommendation, things will get substantially easier for pot companies. Finally, there is a bill making its way through the U.S. Senate right now that could give pot companies easier access to various banking services, which they currently lack due to the legal landscape surrounding marijuana in the country. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. The U.S. Department of Health and Human Services (HHS) recently recommended that marijuana be downgraded from a Schedule I controlled substance to Schedule III. In its latest period -- the first quarter of its fiscal year 2024, ended June 30 -- Aurora Cannabis reported revenue of 75.1 million Canadian dollars (about $55.7 million), up 50% year over year. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. Let's assume the DEA does reschedule cannabis as per the HHS's recommendation, and lawmakers pass this new bill seeking to grant cannabis companies easier access to traditional means of funding. That's why there is no reason to think that Aurora Cannabis will suddenly turn things around even if the legal landscape substantially improves in the U.S. That will almost certainly attract plenty of new companies, and, based on the company's history, I wouldn't pick Aurora Cannabis to be one of the winners. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. Finally, there is a bill making its way through the U.S. Senate right now that could give pot companies easier access to various banking services, which they currently lack due to the legal landscape surrounding marijuana in the country. These are all positive developments for Aurora Cannabis and the rest of the industry, but is that enough to buy the stock? |
36364.0 | 2023-09-17 00:00:00 UTC | Is Aurora Cannabis Stock a Buy Now? | ACB | https://www.nasdaq.com/articles/is-aurora-cannabis-stock-a-buy-now-0 | nan | nan | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. The company was initially seen as one of the frontrunners in the race to dominate this field, but things haven't turned out so well.
But could Aurora Cannabis be on the verge of making a comeback? The company recently announced some news that has the market buzzing, not to mention there are some interesting industrywide developments. With all that going on, let's find out whether investors should consider giving a second thought to the pot grower.
Benefitting from multiple tailwinds
On Sept. 8, Aurora Cannabis announced a move to reduce its debt and interest expense. The company said it had repurchased $9 million worth of convertible debt between mid-August and early September. Aurora Cannabis raised the money to do so by issuing 20.1 million new shares. This is part of the company's goal to become free-cash-flow-positive next year -- something that would be an achievement considering how poorly it has performed in recent years, both financially and on the stock market.
That's not the only reason Aurora Cannabis has been on fire lately. The company is also benefiting from positive news on the regulatory front. The U.S. Department of Health and Human Services (HHS) recently recommended that marijuana be downgraded from a Schedule I controlled substance to Schedule III. If the agency in charge, the U.S. Drug Enforcement Administration (DEA), decides to follow this recommendation, things will get substantially easier for pot companies.
Schedule III substances are classified as less prone to dependence than those in the first or second category. For context, heroin is a Schedule I drug. Under the new HHS proposal, marijuana would also become recognized as having accepted medical use in the country -- a potential game changer for the pot industry. Yes, cannabis would remain illegal at the federal level, but things would get substantially less stringent for Aurora Cannabis and its peers.
Finally, there is a bill making its way through the U.S. Senate right now that could give pot companies easier access to various banking services, which they currently lack due to the legal landscape surrounding marijuana in the country. These are all positive developments for Aurora Cannabis and the rest of the industry, but is that enough to buy the stock?
How long will this momentum last?
Let's assume the DEA does reschedule cannabis as per the HHS's recommendation, and lawmakers pass this new bill seeking to grant cannabis companies easier access to traditional means of funding. Even under this scenario, it's not clear that Aurora Cannabis is a buy. Consider the company's financial results. In its latest period -- the first quarter of its fiscal year 2024, ended June 30 -- Aurora Cannabis reported revenue of 75.1 million Canadian dollars (about $55.7 million), up 50% year over year.
That sounds great, at least until one realizes that much of that growth wasn't organic and was instead due to an acquisition the company made in August 2022. This has been part of Aurora's strategy for years. The company has sought to dominate the market by making a series of acquisitions. There is nothing wrong with this strategy in principle, but Aurora Cannabis hardly had the financial means to splurge on takeovers, so it often had to issue new shares, diluting existing shareholders in the process.
Perhaps that would have been fine if these acquisitions had panned out and the company's financial results had increased substantially as a result, but that largely didn't happen. Aurora Cannabis' revenue growth has been unimpressive in the past five years after initially soaring once pot became legal in Canada.
Data source: YCharts
In fairness, that's not entirely the company's fault. The Canadian market had been difficult, with intense competition (including from illicit markets), stiff regulations to obtain cannabis licenses, and other challenges. That's why there is no reason to think that Aurora Cannabis will suddenly turn things around even if the legal landscape substantially improves in the U.S. That will almost certainly attract plenty of new companies, and, based on the company's history, I wouldn't pick Aurora Cannabis to be one of the winners.
The company also remains unprofitable, although it has improved on this front in recent years and looks close to profitability.
Data source: YCharts
Aurora Cannabis may or may not become free-cash-flow-positive next year. In my view, it doesn't matter. The company's track record is too poor for that to somehow tip the scales in its favor. It should take much more than that for most investors to consider initiating a position. For now, it's best to stay away and watch how things unfold from a safe distance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. If the agency in charge, the U.S. Drug Enforcement Administration (DEA), decides to follow this recommendation, things will get substantially easier for pot companies. Finally, there is a bill making its way through the U.S. Senate right now that could give pot companies easier access to various banking services, which they currently lack due to the legal landscape surrounding marijuana in the country. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. The U.S. Department of Health and Human Services (HHS) recently recommended that marijuana be downgraded from a Schedule I controlled substance to Schedule III. In its latest period -- the first quarter of its fiscal year 2024, ended June 30 -- Aurora Cannabis reported revenue of 75.1 million Canadian dollars (about $55.7 million), up 50% year over year. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. Let's assume the DEA does reschedule cannabis as per the HHS's recommendation, and lawmakers pass this new bill seeking to grant cannabis companies easier access to traditional means of funding. That's why there is no reason to think that Aurora Cannabis will suddenly turn things around even if the legal landscape substantially improves in the U.S. That will almost certainly attract plenty of new companies, and, based on the company's history, I wouldn't pick Aurora Cannabis to be one of the winners. | Aurora Cannabis (NASDAQ: ACB) has perhaps been the most disappointing pot stock since Canada legalized adult recreational uses of marijuana back in 2018 -- and that's saying something. Finally, there is a bill making its way through the U.S. Senate right now that could give pot companies easier access to various banking services, which they currently lack due to the legal landscape surrounding marijuana in the country. These are all positive developments for Aurora Cannabis and the rest of the industry, but is that enough to buy the stock? |
36365.0 | 2023-09-14 00:00:00 UTC | 3 Reasons Aurora Cannabis Stock Is a Buy Right Now | ACB | https://www.nasdaq.com/articles/3-reasons-aurora-cannabis-stock-is-a-buy-right-now | nan | nan | Aurora Cannabis (NASDAQ: ACB) is one of the most popular stocks in the cannabis industry. Nonetheless, the company has struggled to achieve profitability and positive cash flow on a consistent basis since inception.
This was due to a slew of headwinds, such as fierce competition, regulatory uncertainty, and high excise taxes, among many other factors. In response to these hurricane-force headwinds, the pot titan's share price has plummeted by almost 99% over the past five years.
However, there are some encouraging signs that Aurora Cannabis may be turning a corner and becoming a more attractive investment opportunity. Roughly three years ago, the company implemented several strategic moves and cost-saving measures to improve its:
financial performance
market position in key segments like medical
long-term growth potential
Here are three reasons Aurora Cannabis stock may finally be a buy.
Image source: Getty Images.
1. Cost-cutting and restructuring
Aurora Cannabis has been implementing a comprehensive plan to reduce operating expenses, improve margins, and streamline operations. The company has closed or sold several of its production facilities, reduced its workforce, and significantly reduced its debt.
As a result of this strategic initiative, Aurora Cannabis expects to achieve positive free cash flow in calendar year 2024. Wall Street wasn't expecting the company to hit this key financial milestone until at least calendar year 2026.
2. International expansion
The company has an exceptionally strong presence in the international medical cannabis market, with operations in several high-value territories like Australia, Poland, and Germany. Moreover, it's one of three domestic producers in Germany, which is the largest cannabis market in Europe in terms of sales. This market should become considerably more business-friendly in the years ahead.
3. Valuation and outlook
Aurora Cannabis currently sports a market cap of approximately $361 million. In 2023, global medical cannabis sales are expected to surpass $16.6 billion, and this figure is forecast to balloon to nearly $66 billion by 2030, according to a report by Grand View Research. Aurora Cannabis, as a leader in medical cannabis, should be able to capitalize on this favorable tailwind.
Key takeaway
Aurora Cannabis isn't without risk. The company still faces challenges, such as:
Legal uncertainty in the multiple key geographies
Burdensome and costly regulations in the Canadian market
Competition from illicit sources
Moreover, the company has a history of diluting shareholders on a regular basis. In the past three years alone, Aurora Cannabis has more than tripled its outstanding share count. As a result of these risk factors, investors probably shouldn't go overboard with this low-priced marijuana stock.
ACB Average Diluted Shares Outstanding (Quarterly) data by YCharts.
That being said, Aurora Cannabis has made clear strides toward becoming a leader in the global medical marijuana space, improving its operating efficiency, and cutting out unnecessary and unprofitable growth initiatives over the past three years. Hence, risk-tolerant investors might want to consider nibbling at this marijuana stock as its turnaround strategy starts to bear tangible results.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) is one of the most popular stocks in the cannabis industry. ACB Average Diluted Shares Outstanding (Quarterly) data by YCharts. Roughly three years ago, the company implemented several strategic moves and cost-saving measures to improve its: financial performance market position in key segments like medical long-term growth potential Here are three reasons Aurora Cannabis stock may finally be a buy. | Aurora Cannabis (NASDAQ: ACB) is one of the most popular stocks in the cannabis industry. ACB Average Diluted Shares Outstanding (Quarterly) data by YCharts. As a result of this strategic initiative, Aurora Cannabis expects to achieve positive free cash flow in calendar year 2024. | Aurora Cannabis (NASDAQ: ACB) is one of the most popular stocks in the cannabis industry. ACB Average Diluted Shares Outstanding (Quarterly) data by YCharts. Roughly three years ago, the company implemented several strategic moves and cost-saving measures to improve its: financial performance market position in key segments like medical long-term growth potential Here are three reasons Aurora Cannabis stock may finally be a buy. | Aurora Cannabis (NASDAQ: ACB) is one of the most popular stocks in the cannabis industry. ACB Average Diluted Shares Outstanding (Quarterly) data by YCharts. In the past three years alone, Aurora Cannabis has more than tripled its outstanding share count. |
36366.0 | 2023-09-14 00:00:00 UTC | Why These 3 Marijuana Stocks Rocketed Higher This Week | ACB | https://www.nasdaq.com/articles/why-these-3-marijuana-stocks-rocketed-higher-this-week | nan | nan | What happened
Canadian marijuana stocks have been on fire this week. Speaking to this point, Aurora Cannabis (NASDAQ: ACB) saw its shares soar by 88% through the first three and a half days of trading this week, while Cronos Group (NASDAQ: CRON) and SNDL (NASDAQ: SNDL) managed a 17.5% and 19.2% gain, respectively, over this same period, according to data provided by S&P Global Market Intelligence.
These impressive increases contrast with the modest 1.22% rise of the S&P 500 index over the same period. Furthermore, Aurora Cannabis, Cronos Group, and SNDL had all suffered significant losses in the past 12 months before this week's sudden reversal.
ACB data by YCharts.
So what
These high-profile Canadian cannabis stocks rallied this week in response to three separate catalysts that acted in concert to dramatically improve investor sentiment. These factors were:
Aurora Cannabis reiterated last Friday that it expects to achieve positive cash flow by calender year 2024, beating analysts' expectations by two years. Mr. Market, for its part, seemed to take this news as a sign that the Canadian cannabis market is starting to work through its early growing pains.
Senator Chuck Schumer, the majority leader of the U.S. Senate, reiterated his commitment to advancing the SAFE Banking Act this week, which would allow banks and other financial institutions to serve cannabis businesses without fear of federal prosecution. The bill reportedly has bipartisan support and could move out of committee in the coming weeks. This would be a major step forward for the U.S. cannabis industry, which currently operates largely on a cash basis.
In late August, the U.S. Department of Health and Human Services recommended that marijuana be reclassified from Schedule I to Schedule III under the Controlled Substances Act. This recommendation, if adopted by the Drug Enforcement Agency, would facilitate research on the therapeutic effects of cannabis and possibly pave the way for its eventual legalization at the federal level.
Now what
Are any of these pot stocks still a buy after this week's rally? Aurora Cannabis and SNDL screen as intriguing speculative buys for risk-tolerant investors with a long-term outlook. Aurora Cannabis is currently exiting a three-year-long reorganization plan to rightsize its output, reduce costs, and position it as a leader in medical cannabis in both Canada and key international markets like Germany.
SNDL has remade itself following a pair of major acquisitions over the past two years, and it sports one of the industry's strongest balance sheets. The Canadian pot titan, in turn, ought to have the staying power necessary to benefit from the slow march toward widespread legalization in high-value markets like the United States.
Cronos Group, on the other hand, appears to be more of a business development play at this point. The company's shares could deliver strong returns for patient investors, but its organic growth profile isn't nearly as strong as many of its peers like Aurora Cannabis and SNDL.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Speaking to this point, Aurora Cannabis (NASDAQ: ACB) saw its shares soar by 88% through the first three and a half days of trading this week, while Cronos Group (NASDAQ: CRON) and SNDL (NASDAQ: SNDL) managed a 17.5% and 19.2% gain, respectively, over this same period, according to data provided by S&P Global Market Intelligence. ACB data by YCharts. So what These high-profile Canadian cannabis stocks rallied this week in response to three separate catalysts that acted in concert to dramatically improve investor sentiment. | Speaking to this point, Aurora Cannabis (NASDAQ: ACB) saw its shares soar by 88% through the first three and a half days of trading this week, while Cronos Group (NASDAQ: CRON) and SNDL (NASDAQ: SNDL) managed a 17.5% and 19.2% gain, respectively, over this same period, according to data provided by S&P Global Market Intelligence. ACB data by YCharts. Furthermore, Aurora Cannabis, Cronos Group, and SNDL had all suffered significant losses in the past 12 months before this week's sudden reversal. | Speaking to this point, Aurora Cannabis (NASDAQ: ACB) saw its shares soar by 88% through the first three and a half days of trading this week, while Cronos Group (NASDAQ: CRON) and SNDL (NASDAQ: SNDL) managed a 17.5% and 19.2% gain, respectively, over this same period, according to data provided by S&P Global Market Intelligence. ACB data by YCharts. So what These high-profile Canadian cannabis stocks rallied this week in response to three separate catalysts that acted in concert to dramatically improve investor sentiment. | Speaking to this point, Aurora Cannabis (NASDAQ: ACB) saw its shares soar by 88% through the first three and a half days of trading this week, while Cronos Group (NASDAQ: CRON) and SNDL (NASDAQ: SNDL) managed a 17.5% and 19.2% gain, respectively, over this same period, according to data provided by S&P Global Market Intelligence. ACB data by YCharts. Now what Are any of these pot stocks still a buy after this week's rally? |
36367.0 | 2023-09-14 00:00:00 UTC | Why Canopy Growth Stock Is Growing Mightily Again | ACB | https://www.nasdaq.com/articles/why-canopy-growth-stock-is-growing-mightily-again | nan | nan | What happened
What was down is up again, as the topsy-turvy world of marijuana investing sent cannabis stocks soaring again on Thursday morning after Wednesday's sell-off. As of 10:35 a.m. ET, shares of Aurora Cannabis (NASDAQ: ACB) leapt 13.5% higher, while peer pot producer Canopy Growth (NASDAQ: CGC) gained 22.5%.
And just as you'd expect, it's the stock with the greatest gains that's reporting the good news today.
So what
Bright and early this morning, Canopy Growth announced that it has decided to halt funding of its BioSteel Sports Nutrition unit, the dietary supplements business that was responsible for about 60% of Canopy Growth's losses in fiscal Q1 2024. Furthermore, Canopy Growth is taking steps to prepare for an orderly sale of BioSteel's assets, effectively closing down the division for good.
What will this mean for investors?
Well, for one thing, shutting down BioSteel "immediately eliminates significant cash burn for Canopy Growth," says Canopy. Indeed, it will probably even generate some cash from the sale of BioSteel's assets. And as for the rest of the company, ex-BioSteel, Canopy Growth says that by the end of this current fiscal year, "all remaining business units" at Canopy Growth will report "positive adjusted EBITDA."
Now what
The reason Canopy Growth is making this move seems obvious: Canopy Growth is a marijuana business. This is implied in its name. It's the primary reason marijuana investors buy the stock. And, in the current environment of easing regulations on marijuana sales in the U.S., marijuana offers the greatest chance for Canopy Growth to, well, grow strongly in the future.
So why not cut the dead weight, and double down on marijuana instead?
This, in a nutshell, is what Canopy Growth is doing: simplifying its business, reducing cash burn, and focusing on its core cannabis operations going forward. It sounds like a good plan to me.
And judging from today's stock price explosion, investors seem to agree.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ET, shares of Aurora Cannabis (NASDAQ: ACB) leapt 13.5% higher, while peer pot producer Canopy Growth (NASDAQ: CGC) gained 22.5%. What happened What was down is up again, as the topsy-turvy world of marijuana investing sent cannabis stocks soaring again on Thursday morning after Wednesday's sell-off. Furthermore, Canopy Growth is taking steps to prepare for an orderly sale of BioSteel's assets, effectively closing down the division for good. | ET, shares of Aurora Cannabis (NASDAQ: ACB) leapt 13.5% higher, while peer pot producer Canopy Growth (NASDAQ: CGC) gained 22.5%. And as for the rest of the company, ex-BioSteel, Canopy Growth says that by the end of this current fiscal year, "all remaining business units" at Canopy Growth will report "positive adjusted EBITDA." It's the primary reason marijuana investors buy the stock. | ET, shares of Aurora Cannabis (NASDAQ: ACB) leapt 13.5% higher, while peer pot producer Canopy Growth (NASDAQ: CGC) gained 22.5%. So what Bright and early this morning, Canopy Growth announced that it has decided to halt funding of its BioSteel Sports Nutrition unit, the dietary supplements business that was responsible for about 60% of Canopy Growth's losses in fiscal Q1 2024. Now what The reason Canopy Growth is making this move seems obvious: Canopy Growth is a marijuana business. | ET, shares of Aurora Cannabis (NASDAQ: ACB) leapt 13.5% higher, while peer pot producer Canopy Growth (NASDAQ: CGC) gained 22.5%. Well, for one thing, shutting down BioSteel "immediately eliminates significant cash burn for Canopy Growth," says Canopy. Now what The reason Canopy Growth is making this move seems obvious: Canopy Growth is a marijuana business. |
36368.0 | 2023-09-13 00:00:00 UTC | Why September Could Be a Big Month for Aurora Cannabis | ACB | https://www.nasdaq.com/articles/why-september-could-be-a-big-month-for-aurora-cannabis | nan | nan | At nearly the halfway mark of September, Aurora Cannabis (NASDAQ: ACB) has been one of the hottest stocks to own this month. It finished August at just $0.48, and on Monday, it closed at $0.91, nearly doubling in less than two weeks.
Aurora and other pot stocks have been rallying on talks of marijuana reform in the U.S., including potentially rescheduling cannabis down from a Schedule I substance to Schedule III. Aurora has been a risky investment in the past, but the company has been making strides at improving its financials, and there is the potential that the stock may rise even further in value in the weeks ahead.
The company has been slashing its expenses as it aims for positive cash flow
Aurora has been making an effort to reduce its costs in the hopes of reaching profitability and improving its cash flow. This month, it announced that it had recently repurchased $9 million in convertible senior notes, which will reduce its interest expenses.
The company says that since December 2021, it has repurchased $306 million in convertible senior notes and estimates that has reduced its interest costs by nearly $24 million. CEO Miguel Martin says the company has "one of the strongest balance sheets of the Canadian LPs" and projects that before the end of next year, the company will be generating positive free cash flow.
Positive free cash flow would be a huge accomplishment for Aurora. Simply generating positive operating cash flow is something marijuana companies strive for. Free cash flow is after accounting for capital expenditures and is a sign of even stronger financials.
Over the years, Aurora has struggled with cash flow, but it has been making some steady progress this year.
ACB Cash from Operations (Quarterly) data by YCharts
Why this hot stock could go even higher
Despite its strong gains in September, Aurora could be on its way to an even higher valuation. Not only is the company improving its financials, but the stock has taken a beating over the years, which could make the stock overdue for a rally. Here's a look at just how badly Aurora Cannabis stock has performed in recent years:
YEAR STOCK PERFORMANCE
2022
-83%
2021
-35%
2020
-68%
Aurora has burned investors badly over the years, but its beaten-down valuation also means there's potentially a lot more upside for the stock now that it appears to be getting its house in order. And with pot stocks gaining more attention due to talk of marijuana reform, Aurora is in prime position to benefit from these developments.
The company has achieved positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for three straight quarters. Cash flow has been improving, which means the company's operations are becoming more sustainable. If Aurora can achieve positive free cash flow, that also means less risk of dilution in the future. With a more positive outlook, investors are starting to feel more bullish about the stock again, which can lead to an even greater rally as the month goes on.
Aurora Cannabis isn't out of the woods just yet
Aurora has a lot of upside, but for its stock to net big returns for investors, the company has to deliver on its promises and prove that it has turned its business around. It isn't there yet. And there are still question marks about its growth.
The company did achieve impressive 50% year-over-year revenue growth in its latest earnings report (for the period ending June 30) with sales topping 75.1 million Canadian dollars, but that was largely due to new revenue from Bevo Farms, which Aurora now has a controlling interest in (it acquired it in August 2022). Bevo Farms is in the plant propagation business, and its revenue wasn't included in Aurora's prior-year results.
Aurora's focus, however, remains predominantly on the medical marijuana market, where growth prospects aren't nearly as promising as in the recreational market. Investors need to brace for the reality that Aurora likely won't continue growing at such fast rates. Bevo is also a seasonal business, which Aurora says generates nearly three-quarters of its annual revenue during the first half of the year -- Aurora's top line will likely look less impressive in upcoming quarters, and that could have a big impact on earnings.
Should you invest in Aurora Cannabis stock?
It may be tempting for cannabis investors to buy into this red-hot rally, but the prudent thing for investors to do is to wait and see how Aurora performs in future quarters. Even if the stock continues soaring in September, the danger is that there could be a reversal next month. That is the kind of volatility that seasoned cannabis investors have become accustomed to.
This has been an incredibly risky stock to own, and investors should be extra careful when it comes to Aurora Cannabis. While you might miss out on some gains by waiting, you can also minimize the risk of a huge sell-off by waiting to see that the company's financials have significantly improved before deciding to buy the stock. Until Aurora Cannabis starts generating positive cash flow consistently, investors are better off putting the stock in their watchlists rather than in their portfolios.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At nearly the halfway mark of September, Aurora Cannabis (NASDAQ: ACB) has been one of the hottest stocks to own this month. ACB Cash from Operations (Quarterly) data by YCharts Why this hot stock could go even higher Despite its strong gains in September, Aurora could be on its way to an even higher valuation. Aurora has been a risky investment in the past, but the company has been making strides at improving its financials, and there is the potential that the stock may rise even further in value in the weeks ahead. | At nearly the halfway mark of September, Aurora Cannabis (NASDAQ: ACB) has been one of the hottest stocks to own this month. ACB Cash from Operations (Quarterly) data by YCharts Why this hot stock could go even higher Despite its strong gains in September, Aurora could be on its way to an even higher valuation. This month, it announced that it had recently repurchased $9 million in convertible senior notes, which will reduce its interest expenses. | At nearly the halfway mark of September, Aurora Cannabis (NASDAQ: ACB) has been one of the hottest stocks to own this month. ACB Cash from Operations (Quarterly) data by YCharts Why this hot stock could go even higher Despite its strong gains in September, Aurora could be on its way to an even higher valuation. The company has been slashing its expenses as it aims for positive cash flow Aurora has been making an effort to reduce its costs in the hopes of reaching profitability and improving its cash flow. | At nearly the halfway mark of September, Aurora Cannabis (NASDAQ: ACB) has been one of the hottest stocks to own this month. ACB Cash from Operations (Quarterly) data by YCharts Why this hot stock could go even higher Despite its strong gains in September, Aurora could be on its way to an even higher valuation. Aurora has been a risky investment in the past, but the company has been making strides at improving its financials, and there is the potential that the stock may rise even further in value in the weeks ahead. |
36369.0 | 2023-09-13 00:00:00 UTC | Why Canopy Growth, Aurora Cannabis, and Cresco Labs Stocks Sank Today | ACB | https://www.nasdaq.com/articles/why-canopy-growth-aurora-cannabis-and-cresco-labs-stocks-sank-today | nan | nan | What happened
Pop!
Might that great sucking sound, that we just heard, the noise of the marijuana stock bubble finally popping? After two full weeks of incredible gains, shares of two of the best known pot stocks, Canopy Growth (NASDAQ: CGC) -- up 194% from Aug. 30 through last night's close -- and Aurora Cannabis (NASDAQ: ACB) -- up 106% -- are taking dramatic tumbles Wednesday morning, down 15.7% and 21.9%, respectively, through 10:35 a.m. ET. And cannabis producer Cresco Labs (OTC: CRLBF), up a similarly astounding 91% through last night, is giving back 6.2%.
The question is why?
So what
So let me see if I can lay that out for you.
By now you know the situation in the marijuana market currently:
Two weeks ago, on the aforementioned Aug. 30, the U.S. Department of Health and Human Services (HHS) told the U.S. Drug Enforcement Agency (DEA) that it thinks marijuana should be downgraded from a Schedule I narcotic to a mere Schedule III drug (similar to steroids, testosterone, and codeine, and thus easier to access for medical purposes).
After years of opposition, President Biden has also declared his public support for legalizing medical marijuana.
The U.S. Congress is also preparing to make it easier for marijuana businesses to access banking services, as it prepares a Secure and Fair Enforcement (SAFE) Banking Act for a floor vote.
In short, all across D.C., the federal government is taking baby steps toward marijuana legalization. Marijuana stock investors have recognized this trend, they're happy about it, and they've been buying marijuana stocks to capitalize upon it -- but now here come the monkey wrenches aiming to derail the process.
Yesterday, a group of 14 U.S. senators and representatives sent a letter to the DEA urging the agency to "reject" HHS's recommendation to ease regulation of marijuana. As Marijuana Moment reported, the legislators argue that "research, science, and trends support the case that marijuana should remain a Schedule I drug" because of its "high [and] increasing ... potential for abuse."
Now what
Mind you, these legislators are in the minority. In the U.S. Senate for example, at least 40 co-signers to the SAFE Banking Act seem sufficiently assured of marijuana's safety that they're willing to support letting bankers make loans to marijuana businesses, accept marijuana cash for deposit, and so on. Pundits predict the SAFE Banking Act will sail through the Senate with at least 60 votes, and go on to be passed by the House as well -- which has already voted in favor of similar legislation several times in the past. Logically, it seems likely that the DEA will side with the majority on this one -- especially with HHS giving it political cover.
Even if that's how things play out, though, marijuana companies' troubles may not be over.
In California, and in the U.S. House of Representatives as well, moves are advancing to allow medical research into psychedelics as an alternative to marijuana. And while the House proposals seem rather limited in scope, California has simultaneous initiatives to both broadly legalize psychedelics, and also to raise $5 billion in government funds for "psychedelic therapies for mental health," as Marijuana Moment also reports.
So what does all this mean for marijuana investors? Legalization still seems to be the way the winds are blowing, not just at the state but also at the federal level. That's the good news. But the bad news is that legalization may not stop with marijuana. At the rate things are changing, we could soon see psychedelic drugs legalized for medical purposes as well -- creating more competition for marijuana stocks.
Just what these three still-unprofitable companies needed: More competition. Sigh.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cresco Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After two full weeks of incredible gains, shares of two of the best known pot stocks, Canopy Growth (NASDAQ: CGC) -- up 194% from Aug. 30 through last night's close -- and Aurora Cannabis (NASDAQ: ACB) -- up 106% -- are taking dramatic tumbles Wednesday morning, down 15.7% and 21.9%, respectively, through 10:35 a.m. By now you know the situation in the marijuana market currently: Two weeks ago, on the aforementioned Aug. 30, the U.S. Department of Health and Human Services (HHS) told the U.S. Drug Enforcement Agency (DEA) that it thinks marijuana should be downgraded from a Schedule I narcotic to a mere Schedule III drug (similar to steroids, testosterone, and codeine, and thus easier to access for medical purposes). Yesterday, a group of 14 U.S. senators and representatives sent a letter to the DEA urging the agency to "reject" HHS's recommendation to ease regulation of marijuana. | After two full weeks of incredible gains, shares of two of the best known pot stocks, Canopy Growth (NASDAQ: CGC) -- up 194% from Aug. 30 through last night's close -- and Aurora Cannabis (NASDAQ: ACB) -- up 106% -- are taking dramatic tumbles Wednesday morning, down 15.7% and 21.9%, respectively, through 10:35 a.m. By now you know the situation in the marijuana market currently: Two weeks ago, on the aforementioned Aug. 30, the U.S. Department of Health and Human Services (HHS) told the U.S. Drug Enforcement Agency (DEA) that it thinks marijuana should be downgraded from a Schedule I narcotic to a mere Schedule III drug (similar to steroids, testosterone, and codeine, and thus easier to access for medical purposes). The U.S. Congress is also preparing to make it easier for marijuana businesses to access banking services, as it prepares a Secure and Fair Enforcement (SAFE) Banking Act for a floor vote. | After two full weeks of incredible gains, shares of two of the best known pot stocks, Canopy Growth (NASDAQ: CGC) -- up 194% from Aug. 30 through last night's close -- and Aurora Cannabis (NASDAQ: ACB) -- up 106% -- are taking dramatic tumbles Wednesday morning, down 15.7% and 21.9%, respectively, through 10:35 a.m. By now you know the situation in the marijuana market currently: Two weeks ago, on the aforementioned Aug. 30, the U.S. Department of Health and Human Services (HHS) told the U.S. Drug Enforcement Agency (DEA) that it thinks marijuana should be downgraded from a Schedule I narcotic to a mere Schedule III drug (similar to steroids, testosterone, and codeine, and thus easier to access for medical purposes). Marijuana stock investors have recognized this trend, they're happy about it, and they've been buying marijuana stocks to capitalize upon it -- but now here come the monkey wrenches aiming to derail the process. | After two full weeks of incredible gains, shares of two of the best known pot stocks, Canopy Growth (NASDAQ: CGC) -- up 194% from Aug. 30 through last night's close -- and Aurora Cannabis (NASDAQ: ACB) -- up 106% -- are taking dramatic tumbles Wednesday morning, down 15.7% and 21.9%, respectively, through 10:35 a.m. At the rate things are changing, we could soon see psychedelic drugs legalized for medical purposes as well -- creating more competition for marijuana stocks. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis wasn't one of them! |
36370.0 | 2023-09-13 00:00:00 UTC | The 3 Most Undervalued Cannabis Stocks to Buy in September 2023 | ACB | https://www.nasdaq.com/articles/the-3-most-undervalued-cannabis-stocks-to-buy-in-september-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The cannabis market is in disarray.
In Canada, where the recreational drug was legalized nationwide in 2018, the market has all but collapsed. High government taxes have pushed cannabis users to a thriving black market while too many companies have oversupplied the legal industry. The result for cannabis companies has been poor sales and plunging stock prices.
Most leading cannabis stocks, down 90% over the past five years, are now trading below $5 a share, putting them in penny stock territory. Dozens of cannabis producers have gone out of business and a wave of consolidation is now sweeping across the sector. At the same time, cannabis producers continue waiting for the drug to be federally legalized in the U.S., which would open up the American market to foreign entrants.
A glimmer of hope exists though, as the Biden administration recently recommended that the U.S. Drug Enforcement Administration (DEA) loosen federal restrictions on cannabis. So far however, little progress has been made toward national legalization.
The dire situation has led to extremely cheap valuations on many cannabis stocks, potentially offering an opportunity to investors. Let’s discover three of the most undervalued cannabis stocks to buy in September 2023.
Canopy Growth Corp. (CGC)
Source: T. Schneider / Shutterstock
The most recent financial results from Canopy Growth Corp. (NASDAQ:CGC) were an improvement, though that’s not saying much. The cannabis producer posted a net loss of $42 million. It continues to restructure its operations and aggressively cut costs. The latest outcome was a big improvement over last year when Canopy Growth announced a net loss of $2.1 billion. Revenue in the most recent quarter totaled $121.1 million, up 2% from $118.7 million a year ago.
The company said that it reduced its operating costs by $47 million in its latest quarter. It’s also seeing higher revenues from its BioSteel sports drink unit and rising demand in the medical cannabis space.
However, the company continues to struggle against a thriving black market in Canada as it awaits U.S. federal legalization of the recreational drug. Still, CGC stock can be had for a steal right now, having declined 65% over the last 12 months to trade deep down on the penny stock league tables.
Tilray Brands (TLRY)
Source: viewimage / Shutterstock.com
After acquiring several troubled cannabis companies, Tilray Brands (NASDAQ:TLRY) has emerged as the largest cannabis producer in neighboring Canada.
The company has been making some interesting moves lately, most recently buying eight craft beer brands in the U.S. from brewing giant Anheuser-Busch InBev (NYSE:BUD). The purchases make Tilray one of the largest craft brewers in America and help to deepen the company’s presence in the U.S. while it awaits cannabis legalization stateside.
The craft beer deal gives Tilray production facilities that stretch from Portland, Oregon to Patchogue, New York. The partnership comes after Tilray relocated its Toronto-based corporate headquarters to New York City this spring as it focuses almost entirely on its U.S. expansion. During this time, Tilray bought former cannabis rival Hexo Corp. in a deal worth $229 million. This further cements its position as Canada’s top cannabis producer, holding 13% market share. TLRY shares have declined 15% over the last 12 months and also trade as a penny stock.
Aurora Cannabis (ACB)
Source: Ralf Liebhold / Shutterstock.com
Aurora Cannabis (NASDAQ:ACB) is another penny stock that looks incredibly cheap right now. It declined 99% over the last five years, including a 38% plunge in the past 12 months. Like most cannabis producers, Aurora is struggling to contend with a strong black market and oversupply in its Canadian home market.
In addition to the lack of U.S. federal legalization, Aurora Cannabis has also gotten into hot water on news reports of its CEO’s salary. In July, it was disclosed that CEO Miguel Martin’s annual compensation rose 38% to nearly $7 million. At the same time, ACB stock cratered to trade at less than $1 per share. News of the pay increase caused outrage among Aurora Cannabis shareholders.
The company defended itself by pointing to the structural changes that have been made to the business in recent months. This includes eliminating more than $400 million in costs and cutting hundreds of jobs. Investors looking for a rock bottom cannabis security should check out ACB stock.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post The 3 Most Undervalued Cannabis Stocks to Buy in September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) is another penny stock that looks incredibly cheap right now. At the same time, ACB stock cratered to trade at less than $1 per share. Investors looking for a rock bottom cannabis security should check out ACB stock. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) is another penny stock that looks incredibly cheap right now. At the same time, ACB stock cratered to trade at less than $1 per share. Investors looking for a rock bottom cannabis security should check out ACB stock. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) is another penny stock that looks incredibly cheap right now. At the same time, ACB stock cratered to trade at less than $1 per share. Investors looking for a rock bottom cannabis security should check out ACB stock. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) is another penny stock that looks incredibly cheap right now. At the same time, ACB stock cratered to trade at less than $1 per share. Investors looking for a rock bottom cannabis security should check out ACB stock. |
36371.0 | 2023-09-12 00:00:00 UTC | Why Canopy Growth, Aurora Cannabis, and Tilray Stocks Are All Over the Map Today | ACB | https://www.nasdaq.com/articles/why-canopy-growth-aurora-cannabis-and-tilray-stocks-are-all-over-the-map-today | nan | nan | What happened
Anecdotally, at least, I hear that medical marijuana is sometimes prescribed as a treatment for nausea -- but it's having the opposite effect upon marijuana investors Tuesday morning. Shares of pot stocks such as Tilray Brands (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NASDAQ: ACB) have all swung around wildly, from highs as high as up 26% (Aurora) to lows as low as down 18% (Canopy), and everything in between -- all in the space of less than an hour of stock market trading.
As things start to settle down circa 10:45 a.m. ET, we're looking at Tilray stock down 9.5% and Canopy Growth down 12.4%, but Aurora Cannabis up 7.5%.
Such erratic trading patterns may be making cannabis investors feel a bit queasy. But fear not -- we're here to help explain what's going on.
So what
So what is going on in the marijuana market on Tuesday?
Well, as you can imagine, it's all a bit confusing. Big picture, matters are still much as they have been over the past couple of weeks:
President Joe Biden has thrown his support behind legalizing marijuana for medicinal purposes.
The Department of Health and Human Services (HHS) is recommending downgrading marijuana from a Schedule I drug to just Schedule III (the same level as steroids, testosterone, or codeine, for example).
The Drug Enforcement Agency may or may not go along with that recommendation.
Why, even Congress appears ready to make things easier for marijuana investors as it gets set to consider the latest version of the Secure And Fair Enforcement (SAFE) Banking Act, which (if passed) will permit marijuana businesses to finally gain access to banking services.
In short, the regulatory environment for medical marijuana appears to be taking a turn for the better. And yet, at the same time as momentum is building for marijuana legalization, things are getting more complicated in Congress.
As cannabis-focused news site Marijuana Moment reported Tuesday, U.S. Rep Dave Joyce (R-Ohio) -- a marijuana legalization proponent -- is introducing legislation to prevent federal enforcement of drug offenses in states that have already legalized weed. Simultaneously, another congressman who opposes legalization is raising a ruckus over a letter that President Biden may (or may not) have sent to HHS recommending that the department recommend relaxed regulation of cannabis -- and that legislator is questioning the methodology by which HHS concluded that the regulation of cannabis should be relaxed.
Now what
Now, it's hardly surprising that congressmen who oppose cannabis legalization would take steps to derail the process. But after watching Tilray stock gain 10% Monday -- and Canopy Growth gain 82% -- as investors placed their optimistic bets on marijuana legalization, it's logical that some investors might be ready to pocket their gains now that things are starting to look more complicated.
What's much more interesting is that tiny Aurora Cannabis continues to add to its gains Tuesday even in the face of rising uncertainty. After all, Aurora gained 72% on Monday -- nearly as much as Canopy Growth -- yet as Canopy fell Tuesday morning, Aurora stock kept going up.
Why is that?
Almost certainly, it's because, unlike Tilray and Canopy, Aurora recently put out actual news of its own to sustain its momentum. Specifically, on Friday, Aurora management reaffirmed its commitment to generating positive free cash flow in 2024, and announced that it is issuing shares to pay down debt, and reduce interest costs to make that goal easier to reach. If Aurora becomes the first of these three well-known cannabis companies to begin generating enough cash to be self-sustaining, that will be a big plus in the stock's favor, and could arguably make Aurora Cannabis the best bet in marijuana stocks today.
Granted, that's a big "if." But it's the specific "if" that Aurora Cannabis investors are betting on Tuesday.
10 stocks we like better than Aurora Cannabis
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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*Stock Advisor returns as of September 11, 2023
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of pot stocks such as Tilray Brands (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NASDAQ: ACB) have all swung around wildly, from highs as high as up 26% (Aurora) to lows as low as down 18% (Canopy), and everything in between -- all in the space of less than an hour of stock market trading. Big picture, matters are still much as they have been over the past couple of weeks: President Joe Biden has thrown his support behind legalizing marijuana for medicinal purposes. What's much more interesting is that tiny Aurora Cannabis continues to add to its gains Tuesday even in the face of rising uncertainty. | Shares of pot stocks such as Tilray Brands (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NASDAQ: ACB) have all swung around wildly, from highs as high as up 26% (Aurora) to lows as low as down 18% (Canopy), and everything in between -- all in the space of less than an hour of stock market trading. Why, even Congress appears ready to make things easier for marijuana investors as it gets set to consider the latest version of the Secure And Fair Enforcement (SAFE) Banking Act, which (if passed) will permit marijuana businesses to finally gain access to banking services. But after watching Tilray stock gain 10% Monday -- and Canopy Growth gain 82% -- as investors placed their optimistic bets on marijuana legalization, it's logical that some investors might be ready to pocket their gains now that things are starting to look more complicated. | Shares of pot stocks such as Tilray Brands (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NASDAQ: ACB) have all swung around wildly, from highs as high as up 26% (Aurora) to lows as low as down 18% (Canopy), and everything in between -- all in the space of less than an hour of stock market trading. But after watching Tilray stock gain 10% Monday -- and Canopy Growth gain 82% -- as investors placed their optimistic bets on marijuana legalization, it's logical that some investors might be ready to pocket their gains now that things are starting to look more complicated. If Aurora becomes the first of these three well-known cannabis companies to begin generating enough cash to be self-sustaining, that will be a big plus in the stock's favor, and could arguably make Aurora Cannabis the best bet in marijuana stocks today. | Shares of pot stocks such as Tilray Brands (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NASDAQ: ACB) have all swung around wildly, from highs as high as up 26% (Aurora) to lows as low as down 18% (Canopy), and everything in between -- all in the space of less than an hour of stock market trading. ET, we're looking at Tilray stock down 9.5% and Canopy Growth down 12.4%, but Aurora Cannabis up 7.5%. After all, Aurora gained 72% on Monday -- nearly as much as Canopy Growth -- yet as Canopy fell Tuesday morning, Aurora stock kept going up. |
36372.0 | 2023-09-11 00:00:00 UTC | Why Canopy Growth, Aurora Cannabis, and Tilray Stocks All Exploded Higher Today | ACB | https://www.nasdaq.com/articles/why-canopy-growth-aurora-cannabis-and-tilray-stocks-all-exploded-higher-today | nan | nan | What happened
Marijuana stocks lit up the stock market again on Monday, with shares of Tilray Brands (NASDAQ: TLRY), for example, gaining 9.4% through 1:25 p.m. ET. Gains at two of the three other best-known publicly traded marijuana stocks, however, did much, much better, with Canopy Growth (NASDAQ: CGC) rising 54% and Aurora Cannabis (NASDAQ: ACB) rocketing an astounding 74%.
What the heck is going on here, investors must be wondering?
So what
That's an excellent question. Let's see if I can provide an answer.
In the case of Aurora Cannabis, let's begin with a press release from the company late Friday afternoon after close of trading for the day. Aurora informed investors that it had bought back about $9 million worth of its convertible debt and issued 20.1 million new shares to raise the cash for the buybacks. Management explained the move as being intended to reduce its debt load, save about $660,000 in annual interest expense and...make it easier for the company to achieve its goal of reporting positive free cash flow (FCF) in calendar year 2024.
This announcement may have caught investors by surprise. After all, according to analysts polled by S&P Global Market Intelligence, Aurora Cannabis isn't expected to achieve either profits according to generally accepted accounting principles (GAAP) or positive FCF before 2026 at the earliest. But here's Aurora management saying not only that it will hit this goal two years ahead of time but taking affirmative action to help make that happen.
No wonder investors are shocked. No wonder they're applauding!
Now what
I do wonder, though, if Aurora Cannabis is actually going to be able to hit this goal so much sooner than anyone on Wall Street thought possible -- or indeed, hit it at all.
Other investors, however, may be taking the opposite approach. They may be thinking that it sure sounds like Wall Street was wrong about Aurora Cannabis. And if Wall Street was wrong about Aurora Cannabis, might it also be wrong about Canopy Growth (not expected to report positive profits before 2028)? Might Canopy, too, turn profitable earlier than expected?
And what about Tilray? As with Aurora, analysts polled by S&P were already thinking Tilray would report a GAAP profit in 2026. Unlike Aurora, these same analysts were already assuming that Tilray would begin generating some free cash flow in 2024. And if Aurora thinks it can generate cash profits next year, then might not this reinforce expectations that Tilray will, too?
Maybe.
Meanwhile, we've got positive tailwinds out of Washington, D.C. where legislators are moving to advance the Secure and Fair Enforcement (SAFE) Banking Act for a floor vote, even as the U.S. Department of Health and Human Services pushes the Drug Enforcent Administration (DEA) to reschedule marijuana as a less dangerous Schedule III controlled substance. Both these developments are continuing to lift cannabis stocks higher, as visions of marijuana legalization dance in investors' heads. These same investors may even be interpreting Aurora's promises of 2024 FCF as being more likely to be fulfilled if the regulatory environment for marijuana gets more benign.
And they may be right. That being said, cannabis investors have been burned by irrational exuberance before. Over the past couple of years, Tilray Brands shares have lost 74% of their value, Aurora Cannabis, 88%, and Canopy Growth, 91%. Before betting too much of your hard-earned cash on a belief that "this time will be different," I'd suggest checking the numbers -- and making sure Aurora Cannabis' promises pan out.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Gains at two of the three other best-known publicly traded marijuana stocks, however, did much, much better, with Canopy Growth (NASDAQ: CGC) rising 54% and Aurora Cannabis (NASDAQ: ACB) rocketing an astounding 74%. In the case of Aurora Cannabis, let's begin with a press release from the company late Friday afternoon after close of trading for the day. Management explained the move as being intended to reduce its debt load, save about $660,000 in annual interest expense and...make it easier for the company to achieve its goal of reporting positive free cash flow (FCF) in calendar year 2024. | Gains at two of the three other best-known publicly traded marijuana stocks, however, did much, much better, with Canopy Growth (NASDAQ: CGC) rising 54% and Aurora Cannabis (NASDAQ: ACB) rocketing an astounding 74%. Management explained the move as being intended to reduce its debt load, save about $660,000 in annual interest expense and...make it easier for the company to achieve its goal of reporting positive free cash flow (FCF) in calendar year 2024. And if Wall Street was wrong about Aurora Cannabis, might it also be wrong about Canopy Growth (not expected to report positive profits before 2028)? | Gains at two of the three other best-known publicly traded marijuana stocks, however, did much, much better, with Canopy Growth (NASDAQ: CGC) rising 54% and Aurora Cannabis (NASDAQ: ACB) rocketing an astounding 74%. 10 stocks we like better than Aurora Cannabis When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis wasn't one of them! | Gains at two of the three other best-known publicly traded marijuana stocks, however, did much, much better, with Canopy Growth (NASDAQ: CGC) rising 54% and Aurora Cannabis (NASDAQ: ACB) rocketing an astounding 74%. What happened Marijuana stocks lit up the stock market again on Monday, with shares of Tilray Brands (NASDAQ: TLRY), for example, gaining 9.4% through 1:25 p.m. But here's Aurora management saying not only that it will hit this goal two years ahead of time but taking affirmative action to help make that happen. |
36373.0 | 2023-09-08 00:00:00 UTC | Why Canopy Growth, Aurora Cannabis, and Curaleaf Stocks All Popped Today | ACB | https://www.nasdaq.com/articles/why-canopy-growth-aurora-cannabis-and-curaleaf-stocks-all-popped-today | nan | nan | What happened
Marijuana stocks just keep lighting up. Ever since the U.S. Department of Health and Human Services told the Drug Enforcement Agency last month that it thinks cannabis should be knocked down from a Schedule I narcotic to Schedule III status, cannabis companies like Aurora Cannabis (NASDAQ: ACB), Canopy Growth (NASDAQ: CGC), and Curaleaf Holdings (OTC: CURLF) have been hitting progressively higher highs and lower lows.
And Friday is no exception. As of 2:25 p.m. ET, Aurora Cannabis shares are up 9.4%, while Curaleaf is tacking on 14.4%, and Canopy Growth lives up to its name, growing faster than anybody else at 16.4%.
So what
So why the continued enthusiasm over news that's more than a week old already? It's because the news just keeps getting better and better for marijuana investors. Last weekend, for example, President Biden threw his support behind legalizing medical marijuana. And on Wednesday, Senate Majority Leader Chuck Schumer, the New York Democrat, said he hopes to make progress on passing the Secure and Fair Enforcement (SAFE) Banking Act this session, making it easier for marijuana businesses to access banking services.
Now, there's even more good news on both those fronts. The pot news website Marijuana Moment reported late yesterday that a new study out of Australia on medical marijuana shows that pot smokers enjoy "improved quality of life, and lower pain, anxiety and depression" than those suffering from chronic health conditions who don't smoke pot.
The study added the advisory that these benefits require three months of use, but if you're an investor in a marijuana stock, knowing that patients need to use pot for at least three months at a time is not bad news.
Meanwhile, in a separate Marijuana Moment article, both Republican and Democratic senators are talking up the prospects of passing Schumer's SAFE Banking Act. Republican co-sponsor Senator Steve Daines, a Montana Republican, says talks over the SAFE Act's passage are "moving in the right direction." And Senate Banking Committee Chairman Sherrod Brown, an Ohio Democrat, says agreement on the legislation could potentially come as soon as six weeks from now.
Now what
According to Marijuana Moment, support is holding steady with the SAFE Banking Act having 42 co-sponsors, and enough overall support to reach the 60 votes needed for Senate passage. Schumer is said to feel confident that the legislation will pass a floor vote. And after that, the bill only has to pass a vote in the House, which has already approved it several times in years past.
At this point, it seems the greatest risk is that overconfident legislators might try to load the bill with a grab bag of related marijuana measures. These could include expunging the criminal records of past drug offenders, permitting cannabis businesses to apply for small-business loans backed by the government, and (something of particular interest to investors) allowing U.S.-based marijuana stocks to list on U.S. exchanges.
Nice as that would be, however, most senators seem to prefer a more gradual approach of passing laws one at a time, and marching slowly but steadily toward full-scale marijuana legalization. But hungry for its own piece of the marijuana pie, the American Bankers Association is now advocating openly for the SAFE Banking Act's passage as-is.
With both bankers and marijuana advocates now lobbying in support of this bill, the chances we will see the SAFE Banking Act passed in 2023 look stronger than ever.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ever since the U.S. Department of Health and Human Services told the Drug Enforcement Agency last month that it thinks cannabis should be knocked down from a Schedule I narcotic to Schedule III status, cannabis companies like Aurora Cannabis (NASDAQ: ACB), Canopy Growth (NASDAQ: CGC), and Curaleaf Holdings (OTC: CURLF) have been hitting progressively higher highs and lower lows. These could include expunging the criminal records of past drug offenders, permitting cannabis businesses to apply for small-business loans backed by the government, and (something of particular interest to investors) allowing U.S.-based marijuana stocks to list on U.S. exchanges. Nice as that would be, however, most senators seem to prefer a more gradual approach of passing laws one at a time, and marching slowly but steadily toward full-scale marijuana legalization. | Ever since the U.S. Department of Health and Human Services told the Drug Enforcement Agency last month that it thinks cannabis should be knocked down from a Schedule I narcotic to Schedule III status, cannabis companies like Aurora Cannabis (NASDAQ: ACB), Canopy Growth (NASDAQ: CGC), and Curaleaf Holdings (OTC: CURLF) have been hitting progressively higher highs and lower lows. And on Wednesday, Senate Majority Leader Chuck Schumer, the New York Democrat, said he hopes to make progress on passing the Secure and Fair Enforcement (SAFE) Banking Act this session, making it easier for marijuana businesses to access banking services. Now what According to Marijuana Moment, support is holding steady with the SAFE Banking Act having 42 co-sponsors, and enough overall support to reach the 60 votes needed for Senate passage. | Ever since the U.S. Department of Health and Human Services told the Drug Enforcement Agency last month that it thinks cannabis should be knocked down from a Schedule I narcotic to Schedule III status, cannabis companies like Aurora Cannabis (NASDAQ: ACB), Canopy Growth (NASDAQ: CGC), and Curaleaf Holdings (OTC: CURLF) have been hitting progressively higher highs and lower lows. And on Wednesday, Senate Majority Leader Chuck Schumer, the New York Democrat, said he hopes to make progress on passing the Secure and Fair Enforcement (SAFE) Banking Act this session, making it easier for marijuana businesses to access banking services. The pot news website Marijuana Moment reported late yesterday that a new study out of Australia on medical marijuana shows that pot smokers enjoy "improved quality of life, and lower pain, anxiety and depression" than those suffering from chronic health conditions who don't smoke pot. | Ever since the U.S. Department of Health and Human Services told the Drug Enforcement Agency last month that it thinks cannabis should be knocked down from a Schedule I narcotic to Schedule III status, cannabis companies like Aurora Cannabis (NASDAQ: ACB), Canopy Growth (NASDAQ: CGC), and Curaleaf Holdings (OTC: CURLF) have been hitting progressively higher highs and lower lows. It's because the news just keeps getting better and better for marijuana investors. Meanwhile, in a separate Marijuana Moment article, both Republican and Democratic senators are talking up the prospects of passing Schumer's SAFE Banking Act. |
36374.0 | 2023-09-06 00:00:00 UTC | Will This New Development Mean A Big Rally In Cannabis Stocks? | ACB | https://www.nasdaq.com/articles/will-this-new-development-mean-a-big-rally-in-cannabis-stocks | nan | nan | Curaleaf Holdings Inc. (OTCMKTS: CURLF), Innovative Industrial Properties Inc. (NYSE: IIPR) and Tilray Inc. (NASDAQ: TLRY) were among cannabis stocks jumping higher after the Department of Health and Human Services recommended that marijuana no longer be classified as a Schedule 1 drug.
If approved, the move could trigger a significant rally in cannabis stocks for several compelling reasons.
The Schedule I classification means regulators believe cannabis has no recognized medical use, as well as a significant potential for abuse.
Despite the legalization of recreational marijuana in 23 states and the legalization of medical marijuana in 38 states, the Federal government still considers cannabis to be an illegal drug. A shift to Schedule 3 would allow expanded, federally funded research into cannabis' medical benefits and could pave the way for legalization in more states.
Tax Challenges To Cannabis Companies
In addition, cannabis companies currently face numerous challenges due to the current federal restrictions. Those include limited access to banking services and large tax burdens. Their tax status is unfavorable, as cannabis dispensaries must pay federal taxes, but can’t receive federal aid.
The reclassification of marijuana at the federal level would eliminate some of the murky regulatory issues, making it easy for cannabis businesses to access capital for expansion and other operational costs.
Currently, the tax code forbids cannabis businesses from writing off numerous expenses, because their product is a Schedule 1 drug. A shift to Schedule 3, would eliminate that problem. Higher expenses could result in bigger profits. It’s a simple business equation that many companies in this industry can’t apply.
Catalyst For Renewed Investor Interest?
Investors have been closely monitoring the cannabis sector for years, waiting for a catalyst that could drive substantial growth. The HHS recommendation could be just that catalyst, sparking renewed investor interest.
Cannabis stocks, once greeted with tremendous enthusiasm as U.S. states began to legalize weed, have been in decline since 2018, despite a valiant rally attempt in late 2020 and early 2021. You can track the downside trajectory using MarketBeat’s ETFMG Alternative Harvest ETF (NYSEARCA: MJ) chart.
Following the news from the HHS, the MJ ETF finished 22.84% higher for the week ended September 1.
The most heavily weighted components in the ETF include Tilray, SNDL Inc. (NASDAQ: SNDL), Cronos Group Inc. (NASDAQ: CRON), Canopy Growth Corp. (NASDAQ: CGC), Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) and Aurora Cannabis Inc. (NYSE: ACB).
All those stocks got a bump on the news, but keep in mind that some cannabis stocks, such as Aurora, are fairly well known but are penny stocks lacking any meaningful institutional support.
Constellation Brands' Big Cannabis Investment
Meanwhile, S&P 500 component Constellation Brands Inc. (NYSE: STZ) has invested billions in Canopy Growth. It retains a passive investment in Canopy, meaning it has no board seats. However, the stake, which accounts for more than 35% of Canopy’s ownership, is a clear signal that the purveyor of brands such as Corona, Modelo and Kim Crawford wines, wants to capitalize on the cannabis industry as well.
Constellation’s shares didn’t budge higher on the HHS news, which makes sense: Already, its quarterly revenue has totaled around $2 billion or more just selling beer, wine and spirits, so analysts aren’t even modeling any impact from cannabis sales at this time.
But a reclassification is not certain.
Down This Road Before
Only a few months ago, cannabis stocks rallied on optimism that Congress would pass the SAFE Act, intended to ease banking requirements for the industry. However, in July, the bill hit roadblocks on both sides of the political aisle. It may run into further delays as Congress wrangles over spending bills to forestall a federal government shutdown on October 1.
In other words, it’s caught in the usual Washington mess, although passage isn’t completely off the table.
The cannabis industry lags many others in terms of price performance. A reclassification of marijuana as a Schedule 3 drug, which is the same classification as controlled substances such as Tylenol with codeine, would likely be a significant boost to the industry, as would passage of the SAFE Act. But for now, cannabis companies are still smoking a pipe full of hope, rather than chilling out because industry conditions look much better.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The most heavily weighted components in the ETF include Tilray, SNDL Inc. (NASDAQ: SNDL), Cronos Group Inc. (NASDAQ: CRON), Canopy Growth Corp. (NASDAQ: CGC), Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) and Aurora Cannabis Inc. (NYSE: ACB). Curaleaf Holdings Inc. (OTCMKTS: CURLF), Innovative Industrial Properties Inc. (NYSE: IIPR) and Tilray Inc. (NASDAQ: TLRY) were among cannabis stocks jumping higher after the Department of Health and Human Services recommended that marijuana no longer be classified as a Schedule 1 drug. The reclassification of marijuana at the federal level would eliminate some of the murky regulatory issues, making it easy for cannabis businesses to access capital for expansion and other operational costs. | The most heavily weighted components in the ETF include Tilray, SNDL Inc. (NASDAQ: SNDL), Cronos Group Inc. (NASDAQ: CRON), Canopy Growth Corp. (NASDAQ: CGC), Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) and Aurora Cannabis Inc. (NYSE: ACB). Despite the legalization of recreational marijuana in 23 states and the legalization of medical marijuana in 38 states, the Federal government still considers cannabis to be an illegal drug. Constellation Brands' Big Cannabis Investment Meanwhile, S&P 500 component Constellation Brands Inc. (NYSE: STZ) has invested billions in Canopy Growth. | The most heavily weighted components in the ETF include Tilray, SNDL Inc. (NASDAQ: SNDL), Cronos Group Inc. (NASDAQ: CRON), Canopy Growth Corp. (NASDAQ: CGC), Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) and Aurora Cannabis Inc. (NYSE: ACB). Curaleaf Holdings Inc. (OTCMKTS: CURLF), Innovative Industrial Properties Inc. (NYSE: IIPR) and Tilray Inc. (NASDAQ: TLRY) were among cannabis stocks jumping higher after the Department of Health and Human Services recommended that marijuana no longer be classified as a Schedule 1 drug. Tax Challenges To Cannabis Companies In addition, cannabis companies currently face numerous challenges due to the current federal restrictions. | The most heavily weighted components in the ETF include Tilray, SNDL Inc. (NASDAQ: SNDL), Cronos Group Inc. (NASDAQ: CRON), Canopy Growth Corp. (NASDAQ: CGC), Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) and Aurora Cannabis Inc. (NYSE: ACB). Currently, the tax code forbids cannabis businesses from writing off numerous expenses, because their product is a Schedule 1 drug. Constellation Brands' Big Cannabis Investment Meanwhile, S&P 500 component Constellation Brands Inc. (NYSE: STZ) has invested billions in Canopy Growth. |
36375.0 | 2023-09-05 00:00:00 UTC | Why Marijuana Stocks Keep Growing Higher Tuesday | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-keep-growing-higher-tuesday | nan | nan | What happened
It's the Tuesday after the holiday weekend, and shares of marijuana stocks seem to have benefited greatly from the rest. Across the board, shares of cannabis companies are shooting higher. Tilray Brands (NASDAQ: TLRY) is tacking on a solid 4.5% gain as of 12:45 p.m. ET, and Aurora Cannabis (NASDAQ: ACB) is up 6.8%, while Curaleaf Holdings (OTC: CURLF) gains 14.1%, Green Thumb Industries (OTC: GTBIF) gains 14.6%, and industry bellwether Canopy Growth (NASDAQ: CGC) is doing best of all -- up a powerful 27.6%.
And they all have President Joe Biden to thank for it.
So what
As you've probably heard by now, late last month the U.S. Department of Health and Human Services (HSS) recommended to the U.S. Drug Enforcement Agency (DEA) that the latter downgrade marijuana from a Schedule I controlled substance to just a Schedule III controlled substance -- something that investors have waited nearly a year to see. But in fact, the news got even better over the weekend.
During the 2020 presidential campaign, then-VP hopeful Kamala Harris promised that the Biden administration, if elected, would "decriminalize marijuana, and we will expunge the records of those who have been convicted of marijuana." But then, it didn't actually do that.
In a disheartening development for marijuana investors, then-White House Press Secretary Jen Psaki later clarified that the president did not, in fact, back efforts in Congress to legalize marijuana at all.
But this changed over the holiday weekend.
As cannabis news source Marijuana Moment reported on Monday, new White House Press Secretary Karine Jean-Pierre now says that, in fact, President Biden has "always supported the legalization of marijuana for medical purposes" (emphases added). And with this statement now in hand, it seems more likely than ever that the DEA will go along with administration policy and downgrade marijuana to a Schedule III controlled substance. In turn, this designation that would facilitate medical research on the drug, and presumably make it more likely that medical marijuana (at least) will now become legal at the federal level.
Now what
Admittedly, this is still a step short of the full-scale marijuana legalization that investors have been looking forward to since 2020. But it's a step toward that goal. It's also worth pointing out that this is how legalization has tended to work at the state level, with state governments first testing the waters by legalizing medical pot, and then, when the world doesn't end, proceeding to full-scale legalization next.
Investors in marijuana stocks may therefore be correctly interpreting this week's news when they assume that, while it may take some time, marijuana is now on a confirmed path toward legalization.
Granted, it still remains to be seen if legalizing marijuana (whether medical or otherwise) will translate into profits for marijuana stocks. Financial data from S&P Global Market Intelligence suggest that this may be easier said than done. Canopy Growth, Aurora Cannabis, Tilray, and Curaleaf, for example, have all remained decidedly unprofitable for years, despite marijuana having been legalized in Canada already. On the other hand, Green Thumb Industries does seem to have figured out the trick of eking out (very small) profits from the U.S. cannabis trade.
If you're planning to bet on marijuana legalization, and buy stock in a cannabis company yourself, the almost uniquely profitable Green Thumb stock might be the best place to start.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ET, and Aurora Cannabis (NASDAQ: ACB) is up 6.8%, while Curaleaf Holdings (OTC: CURLF) gains 14.1%, Green Thumb Industries (OTC: GTBIF) gains 14.6%, and industry bellwether Canopy Growth (NASDAQ: CGC) is doing best of all -- up a powerful 27.6%. And with this statement now in hand, it seems more likely than ever that the DEA will go along with administration policy and downgrade marijuana to a Schedule III controlled substance. Canopy Growth, Aurora Cannabis, Tilray, and Curaleaf, for example, have all remained decidedly unprofitable for years, despite marijuana having been legalized in Canada already. | ET, and Aurora Cannabis (NASDAQ: ACB) is up 6.8%, while Curaleaf Holdings (OTC: CURLF) gains 14.1%, Green Thumb Industries (OTC: GTBIF) gains 14.6%, and industry bellwether Canopy Growth (NASDAQ: CGC) is doing best of all -- up a powerful 27.6%. So what As you've probably heard by now, late last month the U.S. Department of Health and Human Services (HSS) recommended to the U.S. Drug Enforcement Agency (DEA) that the latter downgrade marijuana from a Schedule I controlled substance to just a Schedule III controlled substance -- something that investors have waited nearly a year to see. And with this statement now in hand, it seems more likely than ever that the DEA will go along with administration policy and downgrade marijuana to a Schedule III controlled substance. | ET, and Aurora Cannabis (NASDAQ: ACB) is up 6.8%, while Curaleaf Holdings (OTC: CURLF) gains 14.1%, Green Thumb Industries (OTC: GTBIF) gains 14.6%, and industry bellwether Canopy Growth (NASDAQ: CGC) is doing best of all -- up a powerful 27.6%. As cannabis news source Marijuana Moment reported on Monday, new White House Press Secretary Karine Jean-Pierre now says that, in fact, President Biden has "always supported the legalization of marijuana for medical purposes" (emphases added). Granted, it still remains to be seen if legalizing marijuana (whether medical or otherwise) will translate into profits for marijuana stocks. | ET, and Aurora Cannabis (NASDAQ: ACB) is up 6.8%, while Curaleaf Holdings (OTC: CURLF) gains 14.1%, Green Thumb Industries (OTC: GTBIF) gains 14.6%, and industry bellwether Canopy Growth (NASDAQ: CGC) is doing best of all -- up a powerful 27.6%. But in fact, the news got even better over the weekend. If you're planning to bet on marijuana legalization, and buy stock in a cannabis company yourself, the almost uniquely profitable Green Thumb stock might be the best place to start. |
36376.0 | 2023-08-31 00:00:00 UTC | Pot firms gain as US move to ease curbs boosts sentiment | ACB | https://www.nasdaq.com/articles/pot-firms-gain-as-us-move-to-ease-curbs-boosts-sentiment | nan | nan | Updates shares in paragraphs 5,6 and 7
Aug 31 (Reuters) - Shares of marijuana companies climbed as much as 14% in morning trading on Thursday after the Department of Health and Human Services recommended its reclassification as a lower-risk substance following an 11-month review.
Marijuana remains illegal at the federal level even as nearly 40 U.S. states have legalized its use in some form, and the reclassification is seen as the first step toward wider legalization that has the support of a majority of Americans.
"Certainly moving cannabis off of Schedule 1 is the right decision and long overdue. Though a full descheduling would be preferred and likely most appropriate for cannabis," said Patrick Rea, managing director of venture capital firm Poseidon Garden Ventures.
The firm held investments in companies like retailer and producer Green Thumb Industries GTII.CD, and cannabis data platform Flowhub, according to its website.
Shares of cannabis firms Cronos Group CRON.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 10%.
Verano Holdings VRNO.CD, Green Thumb Industries GTII.CD, Cresco Labs CL.CD and Curaleaf Holdings CURA.CD and Goodness Growth GDNS.CD rose between 5% and 14%.
Pot stocks tracker AdvisorShares Pure US Cannabis ETF MSOS.K gained 8.5%. It closed 21.2% higher on Wednesday following the news, clocking its best day since Oct. 6, 2022.
The recommendation was provided to the Drug Enforcement Agency who has the final authority on rescheduling and will now initiate its own review.
Still, some analysts said the rescheduling would not be able to address the banking or capital market access challenges for cannabis companies.
The SAFE Banking Act, a crucial legislation that would make it easier for the cannabis industry to access banking services, has failed to secure a Senate vote despite the House of Representatives passing it seven times.
"The main issue the industry will face revolves around the crucial fact that over the last two decades, dozens of states have developed their own cannabis laws (medical or recreational) in the absence of cohesive federal regulation. And rescheduling to Schedule III would not solve this mismatch," Bernstein analyst Nadine Sarwat said.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of cannabis firms Cronos Group CRON.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 10%. The firm held investments in companies like retailer and producer Green Thumb Industries GTII.CD, and cannabis data platform Flowhub, according to its website. The recommendation was provided to the Drug Enforcement Agency who has the final authority on rescheduling and will now initiate its own review. | Shares of cannabis firms Cronos Group CRON.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 10%. The firm held investments in companies like retailer and producer Green Thumb Industries GTII.CD, and cannabis data platform Flowhub, according to its website. Verano Holdings VRNO.CD, Green Thumb Industries GTII.CD, Cresco Labs CL.CD and Curaleaf Holdings CURA.CD and Goodness Growth GDNS.CD rose between 5% and 14%. | Shares of cannabis firms Cronos Group CRON.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 10%. Still, some analysts said the rescheduling would not be able to address the banking or capital market access challenges for cannabis companies. The SAFE Banking Act, a crucial legislation that would make it easier for the cannabis industry to access banking services, has failed to secure a Senate vote despite the House of Representatives passing it seven times. | Shares of cannabis firms Cronos Group CRON.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 10%. Verano Holdings VRNO.CD, Green Thumb Industries GTII.CD, Cresco Labs CL.CD and Curaleaf Holdings CURA.CD and Goodness Growth GDNS.CD rose between 5% and 14%. Still, some analysts said the rescheduling would not be able to address the banking or capital market access challenges for cannabis companies. |
36377.0 | 2023-08-31 00:00:00 UTC | Pot firms gain as US move to ease curbs lifts sentiment | ACB | https://www.nasdaq.com/articles/pot-firms-gain-as-us-move-to-ease-curbs-lifts-sentiment | nan | nan | Aug 31 (Reuters) - U.S.-listed shares of marijuana companies rose up to 7% in premarket trading on Thursday after the Department of Health and Human Services recommended reclassification as a lower-risk substance following an 11-month review.
Marijuana remains illegal at the federal level even as nearly 40 U.S. states have legalized its use in some form, and the reclassification is seen as the first step toward wider legalization that has the support of a majority of Americans.
"Certainly moving cannabis off of Schedule 1 is the right decision and long overdue. Though a full descheduling would be preferred and likely most appropriate for cannabis," said Patrick Rea, managing director of venture capital firm Poseidon Garden Ventures.
The firm held investments in companies like retailer and producer Green Thumb Industries GTII.CD, and cannabis data platform Flowhub, according to its website.
Shares of cannabis firms SNDL SNDL.O, OrganiGram Holdings OGI.TO, OGI.0, Tilray Brands TLRY.O, Cronos Group CRON.TO, CRON.O, Canopy Growth WEED.TO, CGC.O and Aurora Cannabis ACB.TO, ACB.O rose between 1.2% and 7%.
Pot stocks tracker AdvisorShares Pure US Cannabis ETF MSOS.K gained 3.7% premarket. It closed 21.2% higher on Wednesday, clocking its best day since Oct. 6, 2022.
The recommendation was provided to the Drug Enforcement Agency who has the final authority on rescheduling and will now initiate its own review.
Still, some analysts said the rescheduling would not be able to address the banking or capital market access challenges for cannabis companies.
The SAFE Banking Act, a crucial legislation that would make it easier for the cannabis industry to access banking services, has failed to secure a Senate vote despite the House passing it seven times.
"The main issue the industry will face revolves around the crucial fact that over the last two decades, dozens of states have developed their own cannabis laws (medical or recreational) in the absence of cohesive federal regulation. And rescheduling to Schedule III would not solve this mismatch," Bernstein analyst Nadine Sarwat said.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of cannabis firms SNDL SNDL.O, OrganiGram Holdings OGI.TO, OGI.0, Tilray Brands TLRY.O, Cronos Group CRON.TO, CRON.O, Canopy Growth WEED.TO, CGC.O and Aurora Cannabis ACB.TO, ACB.O rose between 1.2% and 7%. Aug 31 (Reuters) - U.S.-listed shares of marijuana companies rose up to 7% in premarket trading on Thursday after the Department of Health and Human Services recommended reclassification as a lower-risk substance following an 11-month review. The firm held investments in companies like retailer and producer Green Thumb Industries GTII.CD, and cannabis data platform Flowhub, according to its website. | Shares of cannabis firms SNDL SNDL.O, OrganiGram Holdings OGI.TO, OGI.0, Tilray Brands TLRY.O, Cronos Group CRON.TO, CRON.O, Canopy Growth WEED.TO, CGC.O and Aurora Cannabis ACB.TO, ACB.O rose between 1.2% and 7%. Aug 31 (Reuters) - U.S.-listed shares of marijuana companies rose up to 7% in premarket trading on Thursday after the Department of Health and Human Services recommended reclassification as a lower-risk substance following an 11-month review. Still, some analysts said the rescheduling would not be able to address the banking or capital market access challenges for cannabis companies. | Shares of cannabis firms SNDL SNDL.O, OrganiGram Holdings OGI.TO, OGI.0, Tilray Brands TLRY.O, Cronos Group CRON.TO, CRON.O, Canopy Growth WEED.TO, CGC.O and Aurora Cannabis ACB.TO, ACB.O rose between 1.2% and 7%. Still, some analysts said the rescheduling would not be able to address the banking or capital market access challenges for cannabis companies. The SAFE Banking Act, a crucial legislation that would make it easier for the cannabis industry to access banking services, has failed to secure a Senate vote despite the House passing it seven times. | Shares of cannabis firms SNDL SNDL.O, OrganiGram Holdings OGI.TO, OGI.0, Tilray Brands TLRY.O, Cronos Group CRON.TO, CRON.O, Canopy Growth WEED.TO, CGC.O and Aurora Cannabis ACB.TO, ACB.O rose between 1.2% and 7%. Aug 31 (Reuters) - U.S.-listed shares of marijuana companies rose up to 7% in premarket trading on Thursday after the Department of Health and Human Services recommended reclassification as a lower-risk substance following an 11-month review. Still, some analysts said the rescheduling would not be able to address the banking or capital market access challenges for cannabis companies. |
36378.0 | 2023-08-31 00:00:00 UTC | CANADA STOCKS-TSX up for fifth day, pot stocks lift healthcare | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-up-for-fifth-day-pot-stocks-lift-healthcare | nan | nan | By Siddarth S
Aug 31 (Reuters) - Canada's main index extended gains on Thursday as a jump in Shopify shares lifted the broader technology sector, while pot firms gained after the United States' move to ease curbs on marijuana.
At 10:25 a.m. ET (1425 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 51.69 points, or 0.25%, at 20,382.01. The index rose for the fifth straight session, but was on track for a monthly decline of 1.2%.
Technology stocks .SPTTTK rose 2.4%, led by an 8.0% gain in Shopify SHOP.TO after the company said Amazon.com AMZN.O would release an app in Shopify's app ecosystem that would give U.S.-based merchants access to Amazon's "Buy with Prime" option.
Shares of cannabis firms Cronos Group CRON.TO, Tilray Brands TLRY.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 11%.
The healthcare index .GSPTTHC, housing the pot stocks, rose nearly 3% to lead sectoral gains.
Canadian Imperial Bank of Commerce CM.TO fell 3% after it missed analysts' estimates for quarterly profit.
Five of the big six Canadian banks missed quarterly profit estimates on higher loan loss provisions amid the Bank of Canada's aggressive interest rate hikes since last year.
"Old days of secular interest rate declines, robust investment banking fees, growth in consumer lending growth without having credit losses is all done in this (economic) environment. This is a new paradigm for the bank stocks," said Matt Manara, partner and portfolio manager, Aventine Investment Management.
"One of the other interesting stats is bank assets to Canada's GDP are close to 400% when in the U.S. they're less than half of that. The banks are highly levered and very vulnerable going into a recession."
Separately, data showed U.S. personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, climbed 3.3% in July, on an annual basis, in line with expectations.
(Reporting by Siddarth S in Bengaluru; Editing by Shounak Dasgupta and Shilpi Majumdar)
((siddarth.s@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of cannabis firms Cronos Group CRON.TO, Tilray Brands TLRY.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 11%. By Siddarth S Aug 31 (Reuters) - Canada's main index extended gains on Thursday as a jump in Shopify shares lifted the broader technology sector, while pot firms gained after the United States' move to ease curbs on marijuana. Canadian Imperial Bank of Commerce CM.TO fell 3% after it missed analysts' estimates for quarterly profit. | Shares of cannabis firms Cronos Group CRON.TO, Tilray Brands TLRY.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 11%. By Siddarth S Aug 31 (Reuters) - Canada's main index extended gains on Thursday as a jump in Shopify shares lifted the broader technology sector, while pot firms gained after the United States' move to ease curbs on marijuana. Five of the big six Canadian banks missed quarterly profit estimates on higher loan loss provisions amid the Bank of Canada's aggressive interest rate hikes since last year. | Shares of cannabis firms Cronos Group CRON.TO, Tilray Brands TLRY.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 11%. By Siddarth S Aug 31 (Reuters) - Canada's main index extended gains on Thursday as a jump in Shopify shares lifted the broader technology sector, while pot firms gained after the United States' move to ease curbs on marijuana. Five of the big six Canadian banks missed quarterly profit estimates on higher loan loss provisions amid the Bank of Canada's aggressive interest rate hikes since last year. | Shares of cannabis firms Cronos Group CRON.TO, Tilray Brands TLRY.TO, OrganiGram Holdings OGI.TO, Aurora Cannabis ACB.TO, Canopy Growth WEED.TO jumped between 3% and 11%. By Siddarth S Aug 31 (Reuters) - Canada's main index extended gains on Thursday as a jump in Shopify shares lifted the broader technology sector, while pot firms gained after the United States' move to ease curbs on marijuana. The healthcare index .GSPTTHC, housing the pot stocks, rose nearly 3% to lead sectoral gains. |
36379.0 | 2023-08-28 00:00:00 UTC | These Are the ONLY 3 Cannabis Stocks to Consider in August 2023 | ACB | https://www.nasdaq.com/articles/these-are-the-only-3-cannabis-stocks-to-consider-in-august-2023 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the chances of marijuana companies accessing the U.S. financial system higher than ever and cannabis stocks trading at lower valuations than ever before, now looks like an excellent time to seek out top-notch cannabis stocks to buy. Regarding access to the American financial system, Senate Majority Leader Chuck Schumer, a Democrat, appears to be working hard to enable the cannabis sector to obtain this much-needed change. Indeed, in July, he touted the legislation as a priority.
Moreover, seven Senate Republicans have co-sponsored the bill, not far away from the nine needed to vote for it to pass the Senate. Since conservatives are focused on many other issues, and Republicans are looking for ways to attract young voters, I believe there’s a very good chance that the legislation will pass the House. If marijuana companies can access the American financial system, they can obtain loans from U.S. banks, allowing them to spend much more on marketing and new initiatives. So, if the legislation becomes law, I expect cannabis stocks to surge over the longer term.
Tilray (TLRY)
Source: rafapress / Shutterstock.com
Canada-based Tilray (NASDAQ:TLRY) has made a few savvy moves lately that should help it to make its brand much more powerful over the longer term. And ultimately, in turn, the latter development should boost its top and bottom lines.
First, TLRY merged with a rival, HEXO, taking its total market share to 13% in Canada. That move should make more Canadian consumers aware of Tilray and its offerings.
Secondly, the cannabis company has snapped up eight beer brands from Anheuser-Busch InBev (NYSE: BUD) while acquiring Truss Beverage Corp., which specializes in cannabis-infused beverages from Molson Coors (NYSE: TAP). By putting its name on those beverage bottles, Tilray will increase its brand power.
Additionally, since consumers — including those who are older and conservative — are used to socializing while drinking alcoholic beverages, I believe they may be more comfortable with trying cannabis-infused beer than imbibing cannabis in other forms. Finally, the U.S. beer brands should provide Tilray with significant, positive cash flows.
Also encouragingly, the company generated a positive operating cash flow of $44 million last quarter, while its forward price-sales ratio is an attractive 2.18 times.
Aurora Cannabis (ACB)
Source: Ralf Liebhold / Shutterstock.com
Aurora Cannabis (NASDAQ:ACB) reported encouraging fiscal first-quarter results on Aug. 10, as its revenue soared 50% versus the same period a year earlier to 75.1 million Canadian dollars, while its adjusted EBITDA came in at 2.2 million Canadian dollars, up from a loss of 8.8 million Canadian dollars in Q2 of 2022.
Like Tilray, Aurora appears to have embraced an intelligent strategy. I have long warned that legal cannabis sellers would have difficulty competing financially with illegal dealers who don’t have to pay taxes or spend funds complying with government regulations.
Aurora reported that last quarter, its year-over-year revenue increase was “mainly due to growth in (its) global medical cannabis business and a record high quarterly revenue in (its) plant propagation business.”
Consumers who use medical cannabis likely want to take the drug under the supervision of their doctors, a service that illegal dealers can’t provide. And dealers usually don’t sell cannabis plants. So, it appears that ACB has found a way to circumvent the competition issue from illegal dealers.
ACB stock has a very attractive forward price-sales ratio of just 0.85 times.
Curaleaf Holdings (CURLF)
Source: gvictoria / Shutterstock.com
According to The Financial Times, Massachusetts-based Curaleaf (OTCMKTS:CURLF) is “one of the world’s largest cannabis companies.” The company’s operations are close to being profitable, as it generated an operating loss of just $12.4 million last year on revenue of $1.336 billion. In comparison, it reported operating income of $58.6 million on nearly $1.2 billion of sales in 2021. Last quarter, it generated EBITDA of $46 million.
Further, over the longer term, Curaleaf could get a big lift from Germany, a relatively large market it plans to enter by the end of 2024.
That’s because the German government recently decriminalized recreational marijuana, and according to a survey cited by the (country’s) government, 4.5mn Germans claimed to have smoked marijuana at least once last year, The Financial Times reported.
Research firm Prohibition Partners believes that Berlin’s decision will cause the country’s medical marijuana sector to grow due to the publicity generated by the government’s decision.
CURLF stock has a very attractive trailing price-sales ratio of just 1.5 times.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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The post These Are the ONLY 3 Cannabis Stocks to Consider in August 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) reported encouraging fiscal first-quarter results on Aug. 10, as its revenue soared 50% versus the same period a year earlier to 75.1 million Canadian dollars, while its adjusted EBITDA came in at 2.2 million Canadian dollars, up from a loss of 8.8 million Canadian dollars in Q2 of 2022. So, it appears that ACB has found a way to circumvent the competition issue from illegal dealers. ACB stock has a very attractive forward price-sales ratio of just 0.85 times. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) reported encouraging fiscal first-quarter results on Aug. 10, as its revenue soared 50% versus the same period a year earlier to 75.1 million Canadian dollars, while its adjusted EBITDA came in at 2.2 million Canadian dollars, up from a loss of 8.8 million Canadian dollars in Q2 of 2022. So, it appears that ACB has found a way to circumvent the competition issue from illegal dealers. ACB stock has a very attractive forward price-sales ratio of just 0.85 times. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) reported encouraging fiscal first-quarter results on Aug. 10, as its revenue soared 50% versus the same period a year earlier to 75.1 million Canadian dollars, while its adjusted EBITDA came in at 2.2 million Canadian dollars, up from a loss of 8.8 million Canadian dollars in Q2 of 2022. So, it appears that ACB has found a way to circumvent the competition issue from illegal dealers. ACB stock has a very attractive forward price-sales ratio of just 0.85 times. | Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) reported encouraging fiscal first-quarter results on Aug. 10, as its revenue soared 50% versus the same period a year earlier to 75.1 million Canadian dollars, while its adjusted EBITDA came in at 2.2 million Canadian dollars, up from a loss of 8.8 million Canadian dollars in Q2 of 2022. So, it appears that ACB has found a way to circumvent the competition issue from illegal dealers. ACB stock has a very attractive forward price-sales ratio of just 0.85 times. |
36380.0 | 2023-08-23 00:00:00 UTC | These 2 Stocks Carry a Lot of Risk, but Their Upside Is Huge | ACB | https://www.nasdaq.com/articles/these-2-stocks-carry-a-lot-of-risk-but-their-upside-is-huge-8 | nan | nan | Marijuana investors have been discouraged the past two years due to the lack of progress toward federal legalization in the U.S. Meanwhile, the Canadian cannabis market, despite being fully legal, appears to be saturated, causing problems for the companies there.
Still, there are a few cannabis companies with solid fundamentals that have the potential to thrive as the industry matures. Cannabis is rapidly expanding, and it takes time for growth companies to show their full potential. According to Allied Market Research, the global marijuana market is expected to generate $149 billion in annual sales by 2031, with a compound annual growth rate of 20%.
If you're a patient investor who believes the cannabis industry will bounce back, investing in these two growth stocks now could pay off in the long run.
Image source: Getty Images.
1. Trulieve Cannabis
For a long time, domestic marijuana player Trulieve Cannabis (OTC: TCNNF) concentrated solely on its home state of Florida. While industry experts thought that was a mistake, Trulieve's strategy worked in its favor. With 125 stores, it has established a dominant position in its home state. This prevented the company from haphazardly expanding and burdening its balance sheet.
It has now expanded to other states, with a total of 186 stores across the country offering a wide range of cannabis products for both medical and recreational use.
Oversupply and pricing pressure in the U.S. has hurt revenue growth for most cannabis companies in the past couple of quarters. The company's total revenue fell 10% year over year to $282 million in the second quarter. Trulieve has consistently generated quarterly positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the last few years, before the saturated U.S. markets took a toll on most cannabis companies.
Meanwhile, Trulieve's Canadian rivals are still struggling to achieve EBITDA profitability. However, EBITDA does not accurately reflect true profit and the company reported a net loss of $404 million in Q2.
Trulieve's dominance in Florida will be an advantage if the state legalizes recreational cannabis. Trulieve's monopoly in a limited-license market has allowed it to build a loyal customer base for its products, which could help it see green in its bottom line soon.
Trulieve had $160 million in cash, cash equivalents, and restricted cash at the end of the quarter. The company has the financial resources to expand, even into international markets. Its debt-to-equity ratio, on the other hand, is 0.89. A higher ratio indicates that the company is heavily reliant on debt to operate or expand. Trulieve should be wary of overburdening its balance sheet if it doesn't intend to repeat the mistakes made by its peer Aurora Cannabis, whose shares have declined 99% in the past five years
2. Green Thumb Industries
Unlike Trulieve, Green Thumb Industries (OTC: GTBIF) has made a steady climb. It grew from 39 stores in eight states in 2019 to 84 stores in 15 states as of August 2023.
Green Thumb has managed to increase its revenue from $216 million in 2019 to $1 billion in 2022 in an intensely competitive sector, giving Trulieve stiff competition.
However, headwinds had an impact this quarter. In the most recent second quarter, revenue fell 1% year over year to $252 million. The company targets markets with limited licenses, where only a few cannabis companies are allowed to operate.
This strategy has enabled it to draw in loyal customers to keep delivering consistent profits. Green Thumb has reported positive net income for 11 consecutive quarters under generally accepted accounting principles (GAAP) -- a rare occurrence for cannabis companies. In the second quarter, it reported net income of $13.4 million.
Despite difficult industry conditions, management is pleased with its progress this quarter. Green Thumb President Anthony Georgiadis stated in the Q1 press release, "While the cannabis industry continues to face challenges, at Green Thumb, we have been able to navigate a path to profitability and strong operating cash flow."
Green Thumb's steady expansion over the years may have kept its debt-to-equity ratio low at 0.16. The company had $290 million in debt outstanding and $149 million in cash and cash equivalents at the end of the first quarter. If it keeps bringing in consistent profits, it should be relatively easy to repay the debt while also financing growth. In the second quarter, the company opened six new locations.
The potential upside for these growth stocks could be enormous
To enjoy the rewards of a growth stock, investors must be patient. Both stocks have fallen significantly this year, owing to doubts that federal legalization in coming in the near future. Despite their stock performance, both companies are doing well.
This is most likely why Wall Street analysts rate both stocks as strong buys. Trulieve's stock could rise 175% in next 12 months, according to the average estimate of analysts, while Green Thumb's stock is expected to rise 132% in the next year.
Both cannabis stocks are currently undervalued, with a price-to-sales ratio of less than 2. For investors with a high risk tolerance and a willingness to hold the shares until the companies realize their full potential, these two could be worth the risk. However, starting with a small investment in both stocks alongside a diversified portfolio of stable stocks would be a smart move.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Green Thumb Industries and Trulieve Cannabis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Trulieve has consistently generated quarterly positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the last few years, before the saturated U.S. markets took a toll on most cannabis companies. Trulieve should be wary of overburdening its balance sheet if it doesn't intend to repeat the mistakes made by its peer Aurora Cannabis, whose shares have declined 99% in the past five years 2. Green Thumb has reported positive net income for 11 consecutive quarters under generally accepted accounting principles (GAAP) -- a rare occurrence for cannabis companies. | Trulieve Cannabis For a long time, domestic marijuana player Trulieve Cannabis (OTC: TCNNF) concentrated solely on its home state of Florida. The company's total revenue fell 10% year over year to $282 million in the second quarter. Green Thumb Industries Unlike Trulieve, Green Thumb Industries (OTC: GTBIF) has made a steady climb. | Trulieve Cannabis For a long time, domestic marijuana player Trulieve Cannabis (OTC: TCNNF) concentrated solely on its home state of Florida. Trulieve has consistently generated quarterly positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the last few years, before the saturated U.S. markets took a toll on most cannabis companies. Green Thumb President Anthony Georgiadis stated in the Q1 press release, "While the cannabis industry continues to face challenges, at Green Thumb, we have been able to navigate a path to profitability and strong operating cash flow." | Cannabis is rapidly expanding, and it takes time for growth companies to show their full potential. The company's total revenue fell 10% year over year to $282 million in the second quarter. The Motley Fool has positions in and recommends Green Thumb Industries and Trulieve Cannabis. |
36381.0 | 2023-08-20 00:00:00 UTC | 3 Cannabis Stocks to Snap Up Before They Skyrocket | ACB | https://www.nasdaq.com/articles/3-cannabis-stocks-to-snap-up-before-they-skyrocket | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite the ongoing challenges, the cannabis industry has been responsive to innovation, growth, and transformation. The article lists three key players poised to capitalize on unique aspects of the cannabis market.
Unlike its peers, the first stock has roots in medical cannabis, granting it a formidable foothold in global markets. From Canada to Europe and Australia, it’s not just about medical cannabis but the company’s focus on innovation and diversification that lead to long-term stability.
Real estate and cannabis might seem like an unlikely pairing, yet the second one has efficiently combined the two. By leasing high-quality properties to established cannabis operators, the company secures a steady stream of rental income, creating stable growth in a fluctuating market.
Through strategic investments and partnerships, the third one is crafting a unique identity by incorporating cutting-edge technology and genetics into its offerings. The introduction of THCV-rich formulations and seed-based production showcases the company’s focus on anticipating and catering to consumer trends. It is setting the stage for sustainable success.
The article delves deep into each company’s strategy, potential, and what sets them apart in the dynamic cannabis market.
Cannabis Stocks: Aurora Cannabis (ACB)
Source: Ralf Liebhold / Shutterstock.com
Aurora Cannabis (NASDAQ:ACB) emphasizes medical cannabis, which sets it apart from others in the industry. Its leadership in global medical cannabis markets, including Canada, Europe, and Australia, gives it a competitive advantage.
The company produces high-potency cultivars with strong gross margins and market share positions. It enables Aurora to capture a loyal patient base and capitalize on the growing demand for medical cannabis products worldwide.
Also, Aurora’s commitment to innovation and product development is expected to drive growth. Introducing approximately 75 new products to the Canadian market and expanding its international channels with the best-performing cultivars and extracts could increase revenue streams and a broader customer base.
Further, the company’s move to diversify beyond cannabis by investing in plant propagation, specifically through its controlling interest in Bevo, can provide a stable revenue stream. The controlled-environment agricultural industry, which includes plant propagation, is set to play a crucial role in the future. The company is addressing issues such as food supply security and reducing carbon footprints. Thus, the diversification positions Aurora to tap into a growing market.
Moreover, Aurora’s efforts to reduce costs and optimize operations demonstrate a fiscal responsibility commitment. The company has a track record of decreasing convertible debt significantly. Its focus on generating positive free cash flow by 2024 indicates prudent financial management.
In terms of global expansion, Aurora’s presence in key international markets, such as Germany, Poland, the UK, and Australia, positions it to take advantage of potential regulatory changes and market growth. Regulatory shifts, particularly in Germany’s medical cannabis market, could lead to significant expansion opportunities. Finally, Aurora’s expertise and cultivation capabilities may enable it to excel in new markets as they open up. Thus, it makes the list as one of my top cannabis stocks.
Innovative Industrial Properties (IIPR)
Source: Shutterstock
Innovative Industrial Properties (NYSE:IIPR) has a high-quality portfolio and a balanced financial structure. Its portfolio consists of mission-critical properties. These properties are leased to reputable cannabis operators, ensuring consistent rental income. Their high-quality portfolio of properties across 19 states gives them a competitive advantage.
Additionally, the company maintains a balanced financial structure with a debt-to-total gross assets ratio of 12%. The conservative approach reduces financial risk and provides flexibility for the company. It led the company to pursue growth opportunities, withstand market fluctuations, and continue providing stable returns to investors.
Additionally, the company can consistently generate revenue through its properties, and its focus on selective acquisitions and investment opportunities allows it to make strategic decisions contributing to sustained growth.
Moreover, the company’s portfolio is well-diversified across multiple states and tenants. It reduces the risk associated with relying on a single market or operator. With no tenant representing more than 14% of total invested capital, the company is less exposed to the challenges faced by individual operators.
Favorably, Innovative Industrial Properties has a track record of returning value to its investors through dividends. The company declared $7.20 in dividends per share over the past 12 months. It represents an 11% increase over the prior year. This commitment to providing dividends can attract income-oriented investors.
Despite challenges, the regulated cannabis industry’s long-term growth potential remains strong. Industry research forecasts substantial growth, with annual sales projected to double from 2023 to 2030, reaching over $70 billion.
Fundamentally, positive developments in legislation, such as the SAFE Banking Act, and state-level momentum for cannabis programs and tax relief can further enhance the industry’s stability and growth potential. These changes could lead to improved financial conditions and access to capital for the cannabis industry. I believe that makes it one of the best cannabis stocks to buy right now.
OrganiGram (OGI)
Source: Ralf Liebhold / Shutterstock.com
On the caboose of this list of cannabis stocks, OrganiGram (NASDAQ:OGI) has exhibited growth in its Canadian recreational business, driven by innovative products and excellence in retail execution. It has maintained or improved its market share in categories like gummies (50.2%), hash (22%), and milled flowers (53%).
Further, the company’s focus on innovation, as seen in partnerships and investments, is pivotal. Strategic investments in companies like Green Tank Technologies and Phylos Bioscience ensure access to cutting-edge vaporization technology and unique seed genetics. These innovations can help OrganiGram differentiate its products, enhance consumer experiences, and expand its consumer base.
OrganiGram’s investment in THCV-rich cultivars through Phylos Bioscience opens doors for developing products catering to consumer needs, such as improved focus, creativity, and calmness. As THCV gains popularity for its non-psychoactive properties, OrganiGram’s focus on incorporating it into various formulations (starting with gummies and vapes) positions the company at the forefront of catering to emerging consumer trends.
Also, the company invests in operational improvements and cost-cutting projects. It includes automation, optimized drying processes, and seed-based production. They are expected to yield substantial savings. This increased operational efficiency enhances the company’s profitability and ability to maintain competitive pricing.
Similarly, OrganiGram invests in seed-based production. Interestingly, it is strategically timed. This transition will be gradual and iterative, starting in four grow rooms. Seed-based production offers advantages such as reduced growth time (65 to 80 days compared to 100 days), standardized flowers, and minimized disease risks. This approach aligns with consumer demand for novelty while cutting labor costs and turning to grow rooms more swiftly.
Fundamentally, collaborative efforts with BAT in research and development promise to yield innovative products and delivery methods, enhancing the consumer experience. Lastly, developing emulsions, vapor formulations, and packaging solutions allows OrganiGram to provide novel products and continuously maintain a competitive edge. Thus, it is one of the best cannabis stocks in my book.
As of this writing, Yiannis Zourmpanos was long IIPR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cannabis Stocks: Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) emphasizes medical cannabis, which sets it apart from others in the industry. By leasing high-quality properties to established cannabis operators, the company secures a steady stream of rental income, creating stable growth in a fluctuating market. Fundamentally, positive developments in legislation, such as the SAFE Banking Act, and state-level momentum for cannabis programs and tax relief can further enhance the industry’s stability and growth potential. | Cannabis Stocks: Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) emphasizes medical cannabis, which sets it apart from others in the industry. By leasing high-quality properties to established cannabis operators, the company secures a steady stream of rental income, creating stable growth in a fluctuating market. Innovative Industrial Properties (IIPR) Source: Shutterstock Innovative Industrial Properties (NYSE:IIPR) has a high-quality portfolio and a balanced financial structure. | Cannabis Stocks: Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) emphasizes medical cannabis, which sets it apart from others in the industry. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite the ongoing challenges, the cannabis industry has been responsive to innovation, growth, and transformation. By leasing high-quality properties to established cannabis operators, the company secures a steady stream of rental income, creating stable growth in a fluctuating market. | Cannabis Stocks: Aurora Cannabis (ACB) Source: Ralf Liebhold / Shutterstock.com Aurora Cannabis (NASDAQ:ACB) emphasizes medical cannabis, which sets it apart from others in the industry. Additionally, the company can consistently generate revenue through its properties, and its focus on selective acquisitions and investment opportunities allows it to make strategic decisions contributing to sustained growth. These innovations can help OrganiGram differentiate its products, enhance consumer experiences, and expand its consumer base. |
36382.0 | 2023-08-10 00:00:00 UTC | Aurora Cannabis Inc. (ACB) Reports Q4 Loss, Tops Revenue Estimates | ACB | https://www.nasdaq.com/articles/aurora-cannabis-inc.-acb-reports-q4-loss-tops-revenue-estimates-0 | nan | nan | Aurora Cannabis Inc. (ACB) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.15, delivering a surprise of -275%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Aurora Cannabis Inc., which belongs to the Zacks Medical - Products industry, posted revenues of $55.92 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 19.50%. This compares to year-ago revenues of $39.35 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Aurora Cannabis Inc. Shares have lost about 42.8% since the beginning of the year versus the S&P 500's gain of 16.4%.
What's Next for Aurora Cannabis Inc.
While Aurora Cannabis Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Aurora Cannabis Inc. Favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.04 on $48.01 million in revenues for the coming quarter and -$0.11 on $195.78 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The Cooper Companies (COO), another stock in the broader Zacks Medical sector, has yet to report results for the quarter ended July 2023. The results are expected to be released on August 30.
This surgical and contact lens products maker is expected to post quarterly earnings of $3.34 per share in its upcoming report, which represents a year-over-year change of +4.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
The Cooper Companies' revenues are expected to be $899.55 million, up 6.7% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Inc. (ACB) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.08. Click to get this free report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. | Click to get this free report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report To read this article on Zacks.com click here. Aurora Cannabis Inc. (ACB) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.08. Aurora Cannabis Inc., which belongs to the Zacks Medical - Products industry, posted revenues of $55.92 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 19.50%. | Aurora Cannabis Inc. (ACB) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.08. Click to get this free report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report To read this article on Zacks.com click here. Aurora Cannabis Inc., which belongs to the Zacks Medical - Products industry, posted revenues of $55.92 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 19.50%. | Aurora Cannabis Inc. (ACB) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.08. Click to get this free report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. |
36383.0 | 2023-08-10 00:00:00 UTC | Aurora Cannabis (ACB) Q1 2024 Earnings Call Transcript | ACB | https://www.nasdaq.com/articles/aurora-cannabis-acb-q1-2024-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Aurora Cannabis (NASDAQ: ACB)
Q1 2024 Earnings Call
Aug 10, 2023, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings and welcome to the Aurora Cannabis Inc.'s first-quarter 2024 results conference call. All participants will be in a listen-only mode, and a question-and-answer session will follow the formal presentation. This conference call is being recorded today, Thursday, August 10th, 2023. I would now like to turn the conference over to your host, Ananth Krishnan, vice president, corporate development and strategy.
Please go ahead.
Ananth Krishnan -- Vice President, Corporate Development and Strategy
Thank you, Michelle. We appreciate you all joining us this afternoon. With me today are our CEO Miguel Martin, and CFO Glen Ibbott. After the market closed, Aurora issued a news release announcing our fiscal 2024 first-quarter financial results.
This news release, accompanying financial statements, and MD&A are available on our IR website and can also be accessed via SEDAR and EDGAR. In addition, you will find the supplemental information deck on our IR website. Listeners are reminded that certain matters discussed on today's conference call could constitute forward-looking statements that are subject to certain risks and uncertainties related to our future financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements. The risks -- risk factors that may affect actual results are detailed in our annual information form and other periodic filings and registration statements. These documents may similarly be accessed via SEDAR and EDGAR.
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Following prepared remarks by Miguel and Glen, we will conduct a question-and-answer session with our covering analysts. We ask you to limit yourself to one question and one follow-up before going back into queue. With that, I will turn over the call to Miguel. Please go ahead.
Miguel Martin -- Chief Executive Officer
Thank you, Ananth. Aurora today is a differentiated and diversified company with a leading global cannabis platform and a leading North American plant propagator. In cannabis, we are medical first and a leader in that business across the world. In plant propagation, we are one of the top companies operating critical infrastructure in the controlled environment agricultural industry. We are very proud of the record quarter we just delivered.
We generated the largest adjusted EBITDA we've ever achieved, and revenue and adjusted gross profit at the highest level Aurora has reported in three years. But be assured, we're not resting here. We are pushing harder than ever to bring our diversified operations to free cash flow generation. Let me step back for a minute and look at a bigger picture with you. Next month marks my third anniversary as CEO of Aurora.
During those three years, we've undertaken a very focused and purposeful transformation. One, we reset our operational footprint and cost structure. We are focused on leveraging our industry-leading science and cultivation expertise to produce some of the world's most innovative products and high-potency cultivars. These next-generation cultivars are routinely producing 28% THC and higher potency, with 43% greater yields and 26% cost per gram reduction compared to our legacy cultivars. And we expect to continue to improve in the future.
Two, we reduced our SG&A expenses while simultaneously augmenting our CPG and pharma experience in both our leadership and our operating staff. Over the last three years, quarterly SG&A has been taken down by 50%, but we retain critical talent and invested in experienced and agile new recruits. We're very proud of how our high-performing team can collaborate and execute. Three, we rededicated ourselves to the market. We've always been leaders in medical cannabis both in Canada and globally. We invested in technology, talent, product selection, and patient experience with over two times the medical market share of our nearest competitor in Canada and leadership positions in Germany, Poland, the U.K., and Australia.
We succeed where others don't because of the high barriers to entry and our world-class cultivation and manufacturing. We've been leaders in Germany since 2017 and one of only three companies with German production facilities. We continue to invest and support the European medical cannabis with an on-the-ground team in Germany, Poland, the U.K., and elsewhere. Four, we recognize the need to diversify our revenue and cash flow base beyond cannabis. While the case for global cannabis is a very bullish one, the timing of regulatory change can sometimes be difficult to pinpoint. We found our first adjacency in the infrastructure-like industry on plant propagation.
Over the long-term, plant propagation in cannabis, as in every other agricultural industry, will become an important part of the value chain. But in the meantime, our controlling interest in Bevo is expected to provide free cash flow growth and exposure to a critical infrastructure-like asset class that most public market investors cannot get exposure to. The tailwinds for the controlled environment agricultural industry include onshoring the food supply, supply chain uncertainty, and reducing our food's carbon footprint. All of these are compelling long-term value-creation attributes we expect to accrue to Aurora shareholders. In addition to the positive macro tailwinds, we see a path for Bevo to double its revenue and cash flow over the next two to three years through the use of our underutilized cannabis facilities, Aurora Sky, which is well suited for the orchid business.
A market segment ready for supply chain disruption, prefinished orchids in North America are mainly sourced from overseas with the attendant costs and quality issues that brings. But the capital required to build a highly controlled environment to grow orchids in North America is a barrier. And for Bevo, many of their orchid customers will be the same blue-chip retailers that they've already served for years. We expect our first sales of orchids before the end of this calendar year with calendar 2024 representing a step function change in Bevo's revenue and EBITDA generation as the orchids business plan hits a steady state. And now Aurora Sun.
With some growth capital, which will be fully funded from a committed bank facility, this one 1.6 million-square-foot greenhouse in Southern Alberta will greatly expand the reach of Bevo to the farmers and greenhouse operators of Alberta and the American Midwest. And finally, our balance sheet, where over three years, we have reduced our convertible debt from 531 million to approximately 63 million as of today, demonstrating that prudent fiscal management and focus on cash and cash flow are top priorities for the company. Of course, I'm very proud of our team and our success to date, but as I said earlier, we're just getting started. On the top line, we see a path to growing our business across all markets that we operate in. Investment and innovation is vital to our success.
And we plan to introduce approximately 75 new products to the Canadian market in the coming three quarters with the best-performing cultivars and extract products being introduced to our international channels. We have the opportunity to earn profits in Canadian adult use through our upcoming product launches. And with our continued drive to invest in efficient cultivation and manufacturing, we see opportunities for our Canadian adult use business to move to profitability. Our Canadian medical business continues to benefit from our broad and attractive product assortment and the excellent patient experience we deliver. With disruption in the Canadian marketplace, we believe Aurora's No.
1 position in the medical market leaves us well positioned to gather business from other medical LPs in Canada. Our proven next-generation cultivars that we're launching across Europe and Australia are proving themselves to be popular with patients. Right now, with the products we have taken to market in the past three months, we have more demand than we've been able to supply in Europe and Australia. In an industry challenged by excess supply, we are excited by this enviable position.
And with recent changes to our supply chain, we think we can handle this increasing demand. When speaking of Europe, I should note the potentially positive regulatory changes we are seeing there. Germany, in particular, has a lot going on. We have an excellent team on the ground in Europe, including one of the top regulatory advocates in the industry. We're very supportive of the direction the government is moving in.
With the potential for de-scheduling of cannabis from the narcotics list in the near future, the German medical market has the potential to expand in size significantly, and of course, France where a medical cannabis pilot program is expected to wrap up early next year and a full medical cannabis system is expected to be implemented. We are pleased to be the sole flower supplier to the pilot trial, and when the market unfolds, we expect to be a key player. It should be clear that our regulatory expertise, backed by our unwavering commitment to science, breeding, and genetics, sets us apart and positions us to win in new medical and recreational markets when they open. Below the revenue line, the intersection of our cultivation science, focus on operational expertise, and efficient EU-GMP facilities continues to drive our cost per gram and per unit costs lower. And of course, we are committed to meeting our ongoing cost optimization targets.
We talked lastearnings callabout a further $40 million of annual savings, which is progressing nicely, and we expect to see the impact of these reductions fully through the back half of this fiscal year. I'm sure that our track record on top-line execution and expense management should give everyone confidence that we will generate positive free cash flow in calendar 2024. It's truly an exciting time for Aurora, our shareholders, and our employees. And with that, I would now like to turn the call over to Glen for a detailed financial review.
Glen Ibbott -- Chief Financial Officer
Thank you, Miguel, and hello, everyone. Before my remarks, as a reminder, last year, Aurora changed its fiscal year-end to March 31st, so the period ended June 30th, 2023 that we are reporting on marks our first quarter of fiscal 2024. Aurora reported a strong quarter in Q1. In medical, our international business continued to grow nicely as demand for our products are outpacing supply. And Canadian medical delivered yet another solid quarter of meaningful revenue and gross profit.
In consumer, our business was up year over year, down only slightly sequentially despite the halt in our popular Glitches product. And finally, Bevo had its best quarter to date in our plant propagation business unit. I'm also very happy to report that, along with good traction on our top line, we delivered the highest adjusted gross profit we've had in three years. And we are on track to generate the further cost efficiencies we've discussed, which will reduce cash outlays without impacting growth opportunities in our business. So, add it all up and we delivered our third consecutive quarter of positive adjusted EBITDA, a record for us at $2.2 million.
So, looking at our Q1 results in more depth. Net revenue was $75.1 million, compared to $50.1 million in the year-ago period. We saw growth across all business units, including record revenue at Bevo, which we acquired in August of 2022. Our global medical cannabis business generated $41.6 million in revenue at a 61% adjusted gross margin. More specifically, international medical revenue is $16.2 million, up 40% from last year, and Canadian medical cannabis was $25.4 million, up 2% year over year and 5% sequentially.
The strong performance in our highest-margin channels was due to several factors, including the positive market reaction in Europe to our new Canadian-grown, high-potency cultivars, driving our best quarter of European revenue ever with record quarters for us in Germany and Poland; the continued growth of the Australian medical market, where we also had our best quarter ever as sales in that market, more than offsetting the $1 million of Israel revenue from last quarter that did not repeat in Q1; and of course, our focus on supporting and growing sales to insured patient groups in Canada. Q1 adjusted gross margin for medical cannabis was 61%, within our target range of 60% and above and consistent sequentially. However, it was down from 67% a year ago, as Q1 revenue mix contained more volume to certain international bulk export markets that produced a slightly lower adjusted gross margin. So, as usual, driven by our leadership and global medical markets, our medical cannabis business represented about 75% of our Q1 cannabis revenue and 88% of adjusted cannabis gross profit, an important distinction from our peers. Consumer cannabis net revenue is $13.2 million, up 5% from a year ago as we continue to drive new and innovative products to all of our markets.
We were pleased with this performance, particularly given that we only had a partial quarter of sales in Q1 of the popular large-pack Glitches prior to the Health Canada industrywide halt on certain ingestible extract products. That said, we have a strong product pipeline with compelling new innovations planned for launch in late Q2. So, we expect to overcome the loss of large-pack Glitches revenue as we enter Q3. Adjusted gross margin in the consumer channel was 27%, compared to 26% in the prior-year quarter, but the difference driven mainly by higher efficiency, cultivation, and production.
In our plant propagation business, Bevo contributed $19.9 million in net revenue, an 85% increase sequentially. This reflects the seasonal cadence of the business, and it reflects overperformance in the quarter. There was no revenue from Bevo in the year-ago comparative quarters we've not yet completed the acquisition. Plant propagation adjusted gross margins were 22%, down sequentially from 36%, as expected, due to the mix and annual timing of vegetable and ornamental plant sales.
Adjusted SG&A was well controlled at approximately $29.5 million, reflecting our commitment to keeping SG&A at or below $30 million. And as we've discussed previously, as part of our push for another $40 million in annualized cost savings, we have already taken actions that will reduce SG&A further. We expect those savings to begin to show up in Q2. Looking forward, we expect Q2 cannabis net revenue to be largely similar -- similar to fiscal Q1 with the geographical mix weighted slightly more toward the international medical segment. And for plant propagation, we expect to see reduced revenues and gross profit due to seasonality. Normally, Bevo earns about 25% to 35% of annual revenues in the second half of the calendar year, our fiscal Q2 and Q3.
That said, as we accelerate Bevo's business plan, we expect first sales of orchids from the 800,000-square-foot Sky facility to occur in Q3 of this fiscal year, and sales from the 1.6 million-square-foot Aurora Sun facility to begin in the first half of our next fiscal year. So, we are excited about the dependable, yet rapidly growing, contribution and diversification that the plant propagation platform brings to our company. Now turning to cash flows in our balance sheet. We are on track to meet our objective of positive free cash flow in calendar 2024. In fact, we made a lot of progress in Q1.
Our operations used a net $11.2 million, down 58% from the year-ago period. Driving this improvement were our actions to close less-efficient operations and to supply our end markets from Aurora's cost-effective, high-quality Canadian EU-GMP production facilities. In Q1, we closed our Aurora Nordic facility and our U.S. CBD business, and we decided to sell a European R&D facility. These actions will positively impact cash flows and margins in the second half of our fiscal year by at least $16 million of annualized savings.
We've also taken a number of further cost-reduction initiatives and operations in SG&A during Q1. And those annualized benefits of approximately $24 million should start to show up in Q2 and be fully realized in the second half of this fiscal year. I should note that Q1 cash flows did include payments for several restructuring initiatives including contract terminations and severance. We do expect more of this in Q2, but it should become much lighter after that as we complete the restructuring actions we've already announced. And of course, we've been diligently taking care of the convertible debt balance.
During Q1 and shortly afterward, we purchased $83.5 million of our convertible senior notes at an average 2.24% discount to par value for aggregate cash consideration of approximately $62 million and the issuance of 28.9 million common shares. Currently, we have approximately $63 million of convertible debt remaining, and we'll have it all settled within the next seven months. As at July 31st, we're very pleased to have approximately $214 million of cash and cash equivalents, which is more than sufficient to fund operations until we reach positive free cash flow. So, to sum up, over the last three years, Aurora's financial metrics have gotten better and better driven by a diversified global business, delivering dependable revenue and strong gross profit. We've also -- we've also strengthened our balance sheet, rationalized our cost structure, and we believe we are ideally positioned to take advantage of growth opportunities across our business units. Thanks for your interest.
I'll now turn the call back to Miguel.
Miguel Martin -- Chief Executive Officer
Thanks, Glen. We've now generated positive adjusted EBITDA for three consecutive quarters and set a company record for adjusted EBITDA in Q1. Looking ahead, while there may be some volatility between any three-month period, we've demonstrated that we're well on the path to free cash flow over the long term. We've already differentiated ourselves from others in the cannabis industry through our leadership in global medical cannabis, which includes higher-potency cultivars with strong gross margins and leading market share positions in Canada, Europe, and Australia. This has been supported all along by our innovation and development of quality products for a loyal patient base, and we have added a complementary growth channel through Bevo, which will play a more impactful part in our overall business in the years ahead. We view the synergies between these businesses as compelling.
We then combine these top-line opportunities with significant operating efficiencies that we are embedding within our organization through substantial cost reduction. Our target of removing a further $40 million of costs during fiscal 2024 is ambitious. But when considering how much we've already accomplished through our business transformation, it is entirely within our wheelhouse. Our balance sheet also provides us with resources to be targeted and opportunistic in the midst of rapid industry rationalization. In short, we have the capital, plan, and staying power to create value for our shareholders as we build a world-class company. Thank you for your time and interest in Aurora.
Operator, please open the lines for questions.
Questions & Answers:
Operator
Thank you, ladies and gentlemen. We will now begin the question-and-answer session. [Operator instructions] Your first question comes from Vivien Azer of Aurora Cannabis. Please go ahead.
Robin Holby -- TD Cowen -- Analyst
Hi. Good evening. This is Robin Holby on for Vivien Azer of TD Cowen, and thank you for taking the question.
Miguel Martin -- Chief Executive Officer
No problem.
Robin Holby -- TD Cowen -- Analyst
Yeah, I was hoping -- if you could possibly add some color to the growth that you're seeing in Australia and whether or not this market is accretive to your overall international medical cannabis segment gross margin.
Miguel Martin -- Chief Executive Officer
Yeah, listen, it's a great question. Now, first and foremost, let me say that the, you know, traditional syndicated data on market size, market shares that you would see, you know, say, in Canada on the medical business does not exist in Australia. So, the numbers I'm going to give you are directional and, you know, for that. So, let me talk about market size and let me talk about where we sit, and then I'll let Glenn sort of take the secondary question you had on margins. We believe that, today, the Australian business is about the same size as the Canadian medical business, which is about $400 million of annual manufacturer revenue. Now, there are, you know, a couple of different ways to look at that.
We have a partner in that business called MedReleaf Australia, and they have a great sales organization led by, you know, a wonderful gentleman who's an ex-pharmacist. We see the Australia market growing very quickly. You know, they, at this juncture, don't have a lot of the more common formats that you might see, say, pre-rolls and other forms of extracts and other markets. But we're really excited about that market and the growth, and it has been, from a revenue standpoint, a growth market from us. Now, from a margin standpoint, I'll let Glen give you some more details.
Since we are not, you know, fully integrated there as we might be in other markets, the margins for us are a little bit lower, say, than they would be in Germany or Poland or other European markets. Glen?
Glen Ibbott -- Chief Financial Officer
Yeah, that's exactly right, Miguel. And so, the way I look at it is, it may be, as we blend more Australian revenue into our international sales, that the percentage gross margin comes down. But this is absolutely all incremental gross margin dollars for us. So, it's an important part, I think, of the -- the growth that we're seeing across the globe in medical cannabis.
Miguel Martin -- Chief Executive Officer
I guess the only other point I'll make is that it is, once again, a market that requires an EU-GMP certification, which is really becoming a point of differentiation, not only having high-quality products, but also being able to hold up to that standard. And we have, you know, a pretty significant amount of EU-GMP production at a real high quality in our Canadian facilities, which gives us a lot of synergies and efficiencies to be able to utilize those facilities to ship to, say, Germany, Poland, and obviously, Australia, as we're talking about.
Operator
Thank you. The next question comes from Michael Lavery of Piper Sandler. Please go ahead.
Michael Lavery -- Piper Sandler -- Analyst
Thank you. Good evening.
Miguel Martin -- Chief Executive Officer
Good evening, Michael.
Michael Lavery -- Piper Sandler -- Analyst
I just was curious, you've -- in your medical cannabis discussion, you mentioned the momentum for further improving margins over the course of the year. Maybe could you give a sense of the magnitude of that? And is that separate from the cost savings you've identified just in terms of mix improvement and some other things? Or is that partly driven, or maybe even very much driven, by the $40 million of savings you've identified?
Miguel Martin -- Chief Executive Officer
Yeah, Michael, it's actually would be, you know, incremental to that. And so, the majority of the improvement will be the transition of servicing the European market from the Canadian facilities. And so, you know, previously, those markets were being serviced by our Nordic facility, and, you know, the margins are, you know -- you know, pretty significantly higher as we service that, you know, products from Canada. Gen, I mean, do you want to give some sort of -- I mean, I know you have points on timing and scale.
You want to cover that piece of it?
Glen Ibbott -- Chief Financial Officer
Yeah, absolutely. Michael, it's a great question. There's a lot going on there. So, as we bring the cultivation back to Canada, we're very efficient producers here in Canada, but we're also launching a number of the newer cultivars.
There's some that launched last quarter, and we've got some more coming up that are -- you know, had some of the stats. And in terms of efficiency and cost efficiency, these really drive the margin for us, getting those much higher yields than the legacy cultivars and will help us on the margin side. And then, when -- you know, so that's also true for Australia, where we're seeing some of the newer cultivars really starting to take up there. And we've also made some other changes within the way we source some of the flower and how we allocate far between our channel that should drive those international margins up over the course of the year. So, you know, in terms of magnitude, you know, I guess we're -- we're going to have to see how that plays out In terms of timing because, right now, we've still got a little bit of Nordic product that we're pushing through in Q2. But I expect, by the time we get to Q3 and Q4, we'll see the full impact of sourcing from Canada, which is going to be at least 10 points of margin, perhaps better.
Michael Lavery -- Piper Sandler -- Analyst
OK, that's really helpful. And just to follow up on Bevo, I know you didn't own the business, but -- but I would have to imagine your due diligence would have given you a sense of what its year-ago revenues would have been. Can you give us a sense of just how it compared even if it was from the prior owners to this quarter?
Glen Ibbott -- Chief Financial Officer
Yeah, we -- we actually -- in our press release, we had planned propagation revenue up, I think it was 12%, 14%. That was versus the year-ago period when they owned it. So, just kind of an apples-to-apples comparison. They're running at about 40 million bucks when we bought them.
They're up above probably in the high-40s now. And that might help you a little bit when you think of how the next couple of quarters -- you can model the next couple of quarters of where we think usually kind of that 25% to 35% of the annual revenue shows up over the next two quarters. You know, run rate right now is probably in the $45 million to $50 million range.
Michael Lavery -- Piper Sandler -- Analyst
OK, great. Thanks so much.
Glen Ibbott -- Chief Financial Officer
Yeah.
Miguel Martin -- Chief Executive Officer
Thank you, Michael.
Operator
Thank you. The next question comes from Frederico Gomes of ATB Capital Markets. Please go ahead.
Eric Livshits -- ATB Capital Markets -- Analyst
Hi, this is Eric Livshits in for Frederico Gomes. Thank you for taking my question. So, over the past several quarters, you guided for adjusted SG&A to remain below $30 million, which you've obviously met. So, just to confirm, is this still the target moving forward, and kind of how are you just thinking about SG&A spend from here? Thank you.
Miguel Martin -- Chief Executive Officer
So, let me -- I'll talk a bit, you know, top line. I'll let Glen give you, you know, maybe some of the modeling questions which is probably, you know, Eric, what you're looking for. You know, when we look at SG&A, there's obviously some baseline. What's interesting about the SG&A is that, when we see these efficiencies around cultivars, you know, in some cases being to 2x the yields, you know, per square meter, you don't see a big jump up in SG&A.
So, you're able to grow, you know, your top line and, as Glen mentioned, improve your margins with that over -- overall SG&A line. We -- you know, that number being below 30, we still think is about right. We're making significant investments in R&D science, innovation. And we're servicing, you know, broader markets we just brought on Switzerland and Austria based on that same SG&A footprint. So, you are seeing a bit of growth in the top line with that same number. So, we do see some efficiency there.
But, Glen, maybe you want to maybe go further on that for Eric.
Glen Ibbott -- Chief Financial Officer
Yeah, absolutely. I mean, part of the strategy here is to get that SG&A down to a level that we think is stable and supportive of the growth of the business and then hold, right, so that we can get that scale and that leverage off of that SG&A base. There is always a little bit of SG&A that's driven by the revenue, the volumes, whether sales commissions or what have you. But for the most part, a lot of our SG&A, I kind of call it a little bit fixed, if you will, given that we have investments as being a U.S.-listed public company, etc., etc. So --so, we've still got a few million bucks more to take out of it.
We're -- you know, our objective of keeping it below $30 million as we outline some of these cost savings over the next year will reduce that and -- and take it down further below 30 million. And we should -- as I say, we should be seeing those showing up over the next couple of quarters, those savings.
Eric Livshits -- ATB Capital Markets -- Analyst
Great. Thank you.
Miguel Martin -- Chief Executive Officer
Thank you, Eric.
Operator
Thank you. The next question comes from Matt Bottomley of Canaccord Genuity. Please go ahead.
Yewon Kang -- Canaccord Genuity -- Analyst
Hi, this is Yewon Kang on for Matt Bottomley. Thanks for the question. So, I wanted to turn the focus back to Australia for my question. Lately, there's been a lot of media reports indicating that the Greens party in the country have been trying to legalize cannabis for recreational purposes.
I guess I just want to get your guys' thoughts on how you're viewing those headlines coming out of the country right now. And is there any further room for growth in terms of, you know, entering the recreational market, you know, in partnership with MedReleaf or any other avenues in the future?
Miguel Martin -- Chief Executive Officer
Yeah, it's a great question. So, let me -- let me take it in sort of three parts. The first part is, you know, we, you know, invest pretty extensively in government relations, and we believe we have a really good relationship with the TGA, which is the regulatory authority there, plus elected officials. What we're hearing is, on recreational, even though there's been some headlines about the Green Party, it's a ways off.
So, it's not really actionable right now. Secondly, what we see in Australia is similar to what we see in Canada and other markets is that it's the same regulatory agencies and validation. So, the manufacturing, the packaging, the labeling, the marketing, all is very similar. So, as we've always said, excellence in medical is clearly a significant advantage at a time in which rec is moving forward. Now lastly, the medical market, we still see upside for the overall size of the medical market in Australia. There is many, you know, very common formats that are not available in Australia, you know, extracts, edibles, pre-rolls, that would have a massive impact on that patient base.
Secondly, there is a very interesting law in Australia that's very punitive about operating a motor vehicle with any presence of cannabis or cannabinoids in your system that they're working on right now. And I know it seems like a nichey little law, but if that were to change, and we think there's a good chance it will, that would really open up a larger patient base. And then, we're also seeing an expansion in the reimbursement model. And so, I don't want to predict what a $400 million annual run rate will go to, but we do see a lot of upside in Australia. And we also see it as a consolidated piece of business. Again, this indicated that data is not perfectly accurate, but it does appear that the top three companies in Australia, which MedReleaf is one, represent, you know, over half of the total business.
So, it's a bit dissimilar than other markets where you see a lot of -- you know, we don't see a lot of concentration.
Operator
Thank you. The next question comes from John Zamparo of CIBC. Please go ahead.
John Zamparo -- CIBC World Markets -- Analyst
Thanks. Good evening. My question is also on -- on Australia. So, I'm hoping we could go a bit deeper on this.
And if we rewind a couple of years, Israel was considered a really attractive market, and multiple LPs raced toward it. It became saturated and domestic producers took share as well. So, I wonder if you could talk about how sustainable the growth is in Australia and what factors will make this different. Is there anything keeping those top three providers at the top? Are there any barriers to entry that you can speak to? Any other color would be helpful.
Miguel Martin -- Chief Executive Officer
Sure, I mean, John, it's a great question. So, if you go back in time on Israel, you know, first and foremost, you have a significant difference in the size of the population and, therefore, the patient base. So, the potential size of the pie in Australia is going to be bigger than what you have in Israel. Secondly, in Israel, you know, the regulatory process was very fluid. And you saw the starts and stops as that agency was looking to really determine, you know, what were going to be the import criteria, the testing criteria.
And today, they use a standard called CUMCS that is quite a challenge. And so, when you couple that with a -- also a bit of a regulatory challenge in the number of pharmacies and retail outlets while they've grown, still sort of created an overall process. Australia feels different. And I don't want to, you know, predict as things are so dynamic, but I would say Australia, you know, is sort of different in three ways. First is the scope.
You know, $400 million of annual revenue is bigger than, you know, Israel ever was, and that also appears to be growing. Secondly, the TGA has established pretty common standards, and they mirror, in almost every case, EU-GMP. So, that, you know, creates a bit of a different situation. And third is, at least today, imported flower has the vast majority of the business as opposed to, you know, locally grown flower. So, you know, I don't -- you know, we've been a, you know, strong proponent of what's happening in Israel, and we're obviously a big player in Australia.
I think I feel more bullish on what's happening in Australia, but things can change. And I think the most important thing for us has been our ability to adapt and be successful in all these markets. And so, we have a leadership position in Germany, in Poland, in Czech Republic. You know, we're going in in Switzerland and Austria. And so, I think, you know, there are a lot of commonalities of being successful. And when one door closes, it appears another one's going to open, and, you know, you have to be able to take advantage of it.
And right now, Australia is a great market for high-quality flower particularly, which is why I think you see the market concentration.
John Zamparo -- CIBC World Markets -- Analyst
That's -- that's really helpful. Thanks. And if I could follow up with one others -- one other, I'm curious to get your view on the court ruling yesterday on chewable extracts and Health Canada's position.
Miguel Martin -- Chief Executive Officer
Yeah, I mean it was a -- it was an interesting ruling. I mean, basically, the question was sort of twofold. One was would the stay be lifted on a particular product, and secondly, you know, was there an opportunity in the process. And I guess let me -- let me start by saying, you know, it's very easy to be critical of Health Canada, you know, about the current cannabis situation in Canada. We're not one of those companies that are critical.
You know, if we look around the world, with the progress that Canada has made and the size of the market and the predictability of the process, we're appreciative of it. So, that's been kicked back. That decision, you know, has been kicked back to Health Canada to see if there are opportunities in that listing process. That was not, you know, litigation that we brought or a question we brought. So, I think it's obviously, you know, a better position to a different, you know, company.
That being said, you know, we look forward to working with Health Canada. We also participate in industry groups as this overall progress, you know, moves forward; and obviously the 10-milligram limit. And the, you know, designation of that, you know, extract -- ingestible extract, we think, is an important one to allow licensed producers, you know, to participate in that market because it's clearly a big market.
John Zamparo -- CIBC World Markets -- Analyst
Great. I appreciate the color. Thank you very much.
Miguel Martin -- Chief Executive Officer
All right, John. Thank you.
Operator
Thank you. There are no further questions. I will turn the call back to Miguel Martin for closing remarks.
Miguel Martin -- Chief Executive Officer
Well, listen, we are obviously thrilled with this quarter and really proud of all the hard work. I want to thank all of our team members at Aurora. They've done an unbelievable job across all of our four businesses. You've seen the results.
We really do appreciate, you know, your support and your interest in our business and this industry. It's exciting times, and, you know, we're pleased to have the quarter we did. And we look forward to talking to all of you in the future. Thanks so much and have a great evening.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Ananth Krishnan -- Vice President, Corporate Development and Strategy
Miguel Martin -- Chief Executive Officer
Glen Ibbott -- Chief Financial Officer
Robin Holby -- TD Cowen -- Analyst
Michael Lavery -- Piper Sandler -- Analyst
Eric Livshits -- ATB Capital Markets -- Analyst
Yewon Kang -- Canaccord Genuity -- Analyst
John Zamparo -- CIBC World Markets -- Analyst
More ACB analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) Q1 2024 Earnings Call Aug 10, 2023, 5:00 p.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Robin Holby -- TD Cowen -- Analyst Michael Lavery -- Piper Sandler -- Analyst Eric Livshits -- ATB Capital Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst John Zamparo -- CIBC World Markets -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We invested in technology, talent, product selection, and patient experience with over two times the medical market share of our nearest competitor in Canada and leadership positions in Germany, Poland, the U.K., and Australia. | Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Robin Holby -- TD Cowen -- Analyst Michael Lavery -- Piper Sandler -- Analyst Eric Livshits -- ATB Capital Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst John Zamparo -- CIBC World Markets -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis (NASDAQ: ACB) Q1 2024 Earnings Call Aug 10, 2023, 5:00 p.m. Below the revenue line, the intersection of our cultivation science, focus on operational expertise, and efficient EU-GMP facilities continues to drive our cost per gram and per unit costs lower. | Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Robin Holby -- TD Cowen -- Analyst Michael Lavery -- Piper Sandler -- Analyst Eric Livshits -- ATB Capital Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst John Zamparo -- CIBC World Markets -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis (NASDAQ: ACB) Q1 2024 Earnings Call Aug 10, 2023, 5:00 p.m. The strong performance in our highest-margin channels was due to several factors, including the positive market reaction in Europe to our new Canadian-grown, high-potency cultivars, driving our best quarter of European revenue ever with record quarters for us in Germany and Poland; the continued growth of the Australian medical market, where we also had our best quarter ever as sales in that market, more than offsetting the $1 million of Israel revenue from last quarter that did not repeat in Q1; and of course, our focus on supporting and growing sales to insured patient groups in Canada. | Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Robin Holby -- TD Cowen -- Analyst Michael Lavery -- Piper Sandler -- Analyst Eric Livshits -- ATB Capital Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst John Zamparo -- CIBC World Markets -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis (NASDAQ: ACB) Q1 2024 Earnings Call Aug 10, 2023, 5:00 p.m. We believe that, today, the Australian business is about the same size as the Canadian medical business, which is about $400 million of annual manufacturer revenue. |
36384.0 | 2023-08-08 00:00:00 UTC | QuidelOrtho (QDEL) Beats Q2 Earnings and Revenue Estimates | ACB | https://www.nasdaq.com/articles/quidelortho-qdel-beats-q2-earnings-and-revenue-estimates | nan | nan | QuidelOrtho (QDEL) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $2.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4%. A quarter ago, it was expected that this medical diagnostics company would post earnings of $1.40 per share when it actually produced earnings of $1.80, delivering a surprise of 28.57%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
QuidelOrtho, which belongs to the Zacks Medical - Products industry, posted revenues of $665.1 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 7.30%. This compares to year-ago revenues of $613.4 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
QuidelOrtho shares have lost about 2.1% since the beginning of the year versus the S&P 500's gain of 17.7%.
What's Next for QuidelOrtho?
While QuidelOrtho has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for QuidelOrtho: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $666.33 million in revenues for the coming quarter and $5.28 on $2.99 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Aurora Cannabis Inc. (ACB), another stock in the same industry, has yet to report results for the quarter ended June 2023. The results are expected to be released on August 10.
This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Aurora Cannabis Inc.'s revenues are expected to be $46.8 million, up 18.9% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Inc. (ACB), another stock in the same industry, has yet to report results for the quarter ended June 2023. Click to get this free report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Click to get this free report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Aurora Cannabis Inc. (ACB), another stock in the same industry, has yet to report results for the quarter ended June 2023. QuidelOrtho, which belongs to the Zacks Medical - Products industry, posted revenues of $665.1 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 7.30%. | Aurora Cannabis Inc. (ACB), another stock in the same industry, has yet to report results for the quarter ended June 2023. Click to get this free report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. QuidelOrtho (QDEL) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.25 per share. | Aurora Cannabis Inc. (ACB), another stock in the same industry, has yet to report results for the quarter ended June 2023. Click to get this free report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. QuidelOrtho (QDEL) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.25 per share. |
36385.0 | 2023-08-01 00:00:00 UTC | LeMaitre Vascular (LMAT) Q2 Earnings and Revenues Beat Estimates | ACB | https://www.nasdaq.com/articles/lemaitre-vascular-lmat-q2-earnings-and-revenues-beat-estimates | nan | nan | LeMaitre Vascular (LMAT) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 15.63%. A quarter ago, it was expected that this medical device maker would post earnings of $0.25 per share when it actually produced earnings of $0.27, delivering a surprise of 8%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
LeMaitre, which belongs to the Zacks Medical - Products industry, posted revenues of $50.12 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 3.78%. This compares to year-ago revenues of $42.11 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
LeMaitre shares have added about 37.4% since the beginning of the year versus the S&P 500's gain of 19.5%.
What's Next for LeMaitre?
While LeMaitre has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for LeMaitre: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $45.93 million in revenues for the coming quarter and $1.20 on $190.09 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Aurora Cannabis Inc. (ACB), is yet to report results for the quarter ended June 2023. The results are expected to be released on August 10.
This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Aurora Cannabis Inc.'s revenues are expected to be $46.8 million, up 18.9% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One other stock from the same industry, Aurora Cannabis Inc. (ACB), is yet to report results for the quarter ended June 2023. Click to get this free report LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Click to get this free report LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Aurora Cannabis Inc. (ACB), is yet to report results for the quarter ended June 2023. LeMaitre, which belongs to the Zacks Medical - Products industry, posted revenues of $50.12 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 3.78%. | Click to get this free report LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Aurora Cannabis Inc. (ACB), is yet to report results for the quarter ended June 2023. LeMaitre Vascular (LMAT) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.32 per share. | One other stock from the same industry, Aurora Cannabis Inc. (ACB), is yet to report results for the quarter ended June 2023. Click to get this free report LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. While LeMaitre has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? |
36386.0 | 2023-06-23 00:00:00 UTC | Can The SAFE Act Light Up High Hopes For Cannabis Industry? | ACB | https://www.nasdaq.com/articles/can-the-safe-act-light-up-high-hopes-for-cannabis-industry | nan | nan | As often happens in highly regulated industries, the economic fate of entrepreneurs and shareholders is in the hands of politicians.
In this case, the cannabis industry is the one in question.
Although 23 states and the District of Columbia have legalized the recreational sale of marijuana, banking and taxation rules impeded the growth that many thought would have skyrocketed by now.
For example, the ETFMG Alternative Harvest ETF (NYSEARCA: MJ), the oldest cannabis exchange-traded fund, debuted with much fanfare in 2015. It rallied to a 2018 high of $45.40 but has essentially gone up in a puff of smoke, now trading more than 93% from its former glory days.
However, investors are lighting up with some optimism recently: Shares of the ETF are up 1.99% in June, as investors seem open to the idea that the industry may get by with some help from its friends in Congress.
SAFE To Assume Bill Will Pass?
Senate Majority Leader Chuck Schumer has reportedly told sources that he’s confident a bipartisan bill to smooth banking requirements for the cannabis industry will make it through Congress in this session.
The bill carries the Washington-style moniker, the Secure and Fair Enforcement (SAFE) Act.
Due to the federal illegality of marijuana, companies operating within state laws that allow them to sell cannabis are compelled to conduct cash transactions. This poses some big challenges, such as making dispensaries susceptible to theft and robberies, causing hassles for business owners, and creating an environment conducive to potential money-laundering activities.
The SAFE Act would create an exemption to federal laws that forbid financial institutions from working with businesses engaged in activities deemed illegal at the federal level.
Cannabis Stocks Up On SAFE Optimism
Cannabis stocks trading higher in anticipation of a possible easing of banking rules include Curaleaf Holdings Inc. (OTCMKTS: CURLF), Innovative Industrial Properties (NYSE: IIPR), and Verano Holdings Corp. (OTCMKTS: VRNOF).
You may not know it due to the continued hoopla and hopium surrounding Tilray Inc (NASDAQ: TLRY). Still, all the companies named above have larger market capitalizations now than Tilray, which is down 51.68% in the past year. The stock is down more than 99% from its September 2018 high. While a going concern that’s still listed on a major exchange can’t technically go to zero, this one is pretty close. Shares closed on June 22 at $1.60.
For the record, Tilray didn’t participate in the SAFE-related bank rally. The company, like Curaleaf, is based in Canada, but both do business in the U.S. and would therefore be affected by U.S. regulatory changes.
Oversupply Bedevils Industry
Tilray’s recent problems have more to do with an oversupply of product (yes, that’s possible and has bedeviled growers and distributors for several years) and the issuance of convertible notes to pay off debt with upcoming maturity dates. In other words, they are issuing debt to pay off other debts. Think about it like opening a credit card to make your mortgage payment; that doesn’t sound like something that would end well.
Fellow erstwhile cannabis industry star Aurora Cannabis Inc. (NYSE: ACB) is up $21.26% in June, but seeing as Aurora is a penny stock, which closed on June 22 at $0.62, a significant gain could be a short covering or simply meme-stock-style noise.
Canopy Growth (NASDAQ: CGC), also once a high flier, has not participated in the recent rally.
What To Make Of SAFE Act Potential?
So what should investors make of the potential for the SAFE Act to pass Congress? According to reports, there are enough votes on both sides of the aisle to get the bill through, so that’s potentially a plus.
It’s a difficult game to pick the next winners in this sector, as the whole industry has been through the wringer in recent years. Passing the SAFT Act would likely smooth operations for cannabis companies and clear the way for long-awaited growth.
However, it’s generally best to avoid purchasing stocks based on events that “might” happen, combined with hunches about those events’ ramifications. As with any stock from any industry, watch to see if cannabis companies can turn around slowing revenue and lack of profitability and if their charts reflect renewed institutional buying.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fellow erstwhile cannabis industry star Aurora Cannabis Inc. (NYSE: ACB) is up $21.26% in June, but seeing as Aurora is a penny stock, which closed on June 22 at $0.62, a significant gain could be a short covering or simply meme-stock-style noise. Senate Majority Leader Chuck Schumer has reportedly told sources that he’s confident a bipartisan bill to smooth banking requirements for the cannabis industry will make it through Congress in this session. This poses some big challenges, such as making dispensaries susceptible to theft and robberies, causing hassles for business owners, and creating an environment conducive to potential money-laundering activities. | Fellow erstwhile cannabis industry star Aurora Cannabis Inc. (NYSE: ACB) is up $21.26% in June, but seeing as Aurora is a penny stock, which closed on June 22 at $0.62, a significant gain could be a short covering or simply meme-stock-style noise. Due to the federal illegality of marijuana, companies operating within state laws that allow them to sell cannabis are compelled to conduct cash transactions. Cannabis Stocks Up On SAFE Optimism Cannabis stocks trading higher in anticipation of a possible easing of banking rules include Curaleaf Holdings Inc. (OTCMKTS: CURLF), Innovative Industrial Properties (NYSE: IIPR), and Verano Holdings Corp. (OTCMKTS: VRNOF). | Fellow erstwhile cannabis industry star Aurora Cannabis Inc. (NYSE: ACB) is up $21.26% in June, but seeing as Aurora is a penny stock, which closed on June 22 at $0.62, a significant gain could be a short covering or simply meme-stock-style noise. Senate Majority Leader Chuck Schumer has reportedly told sources that he’s confident a bipartisan bill to smooth banking requirements for the cannabis industry will make it through Congress in this session. Cannabis Stocks Up On SAFE Optimism Cannabis stocks trading higher in anticipation of a possible easing of banking rules include Curaleaf Holdings Inc. (OTCMKTS: CURLF), Innovative Industrial Properties (NYSE: IIPR), and Verano Holdings Corp. (OTCMKTS: VRNOF). | Fellow erstwhile cannabis industry star Aurora Cannabis Inc. (NYSE: ACB) is up $21.26% in June, but seeing as Aurora is a penny stock, which closed on June 22 at $0.62, a significant gain could be a short covering or simply meme-stock-style noise. The stock is down more than 99% from its September 2018 high. What To Make Of SAFE Act Potential? |
36387.0 | 2023-06-19 00:00:00 UTC | Aurora Cannabis Inc. (ACB) Forms 'Hammer Chart Pattern': Time for Bottom Fishing? | ACB | https://www.nasdaq.com/articles/aurora-cannabis-inc.-acb-forms-hammer-chart-pattern%3A-time-for-bottom-fishing | nan | nan | Shares of Aurora Cannabis Inc. (ACB) have been struggling lately and have lost 19.2% over the past four weeks. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.
While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this company is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.
Understanding Hammer Chart and the Technique to Trade It
This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
Here's What Makes the Trend Reversal More Likely for ACB
There has been an upward trend in earnings estimate revisions for ACB lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.
Over the last 30 days, the consensus EPS estimate for the current year has increased 10.8%. What it means is that the sell-side analysts covering ACB are majorly in agreement that the company will report better earnings than they predicted earlier.
If this is not enough, you should note that ACB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. So, for the shares of Aurora Cannabis Inc. a Zacks Rank of 2 is a more conclusive fundamental indication of a potential turnaround.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Aurora Cannabis Inc. (ACB) have been struggling lately and have lost 19.2% over the past four weeks. Here's What Makes the Trend Reversal More Likely for ACB There has been an upward trend in earnings estimate revisions for ACB lately, which can certainly be considered a bullish indicator on the fundamental side. What it means is that the sell-side analysts covering ACB are majorly in agreement that the company will report better earnings than they predicted earlier. | Click to get this free report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Aurora Cannabis Inc. (ACB) have been struggling lately and have lost 19.2% over the past four weeks. Here's What Makes the Trend Reversal More Likely for ACB There has been an upward trend in earnings estimate revisions for ACB lately, which can certainly be considered a bullish indicator on the fundamental side. | If this is not enough, you should note that ACB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. Shares of Aurora Cannabis Inc. (ACB) have been struggling lately and have lost 19.2% over the past four weeks. Here's What Makes the Trend Reversal More Likely for ACB There has been an upward trend in earnings estimate revisions for ACB lately, which can certainly be considered a bullish indicator on the fundamental side. | Here's What Makes the Trend Reversal More Likely for ACB There has been an upward trend in earnings estimate revisions for ACB lately, which can certainly be considered a bullish indicator on the fundamental side. If this is not enough, you should note that ACB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. Shares of Aurora Cannabis Inc. (ACB) have been struggling lately and have lost 19.2% over the past four weeks. |
36388.0 | 2023-06-14 00:00:00 UTC | Why Aurora Cannabis Stock Dropped Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-dropped-today | nan | nan | What happened
Shares of Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) are down sharply in afternoon trading Wednesday, falling 7.6% through 1:55 p.m. ET after underperforming expectations in its fiscal third-quarter 2023 earnings report this morning.
Aurora reported revenue of only 64 million Canadian dollars ($48.1 million), a miss on sales. Analysts had forecast it would lose $0.05 per share on sales of $48.6 million.
The company did not give a per-share figure for its net loss, but Aurora's total net loss of CAD$87 million appears to work out to a loss of CAD$0.25 per share ($0.19) based on the company's share count of 351.6 million.
So what
Aurora said that its ongoing business transformation has delivered about $400 million in annualized cost savings, and that sales grew 27% year over year. Management also said it achieved its second sequential quarter of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) -- about CAD$310,000 in total. But that's not calculated according to generally accepted accounting principles (GAAP).
The company's take all sounds pretty positive, but judging from investors' reaction to the news, it appears they're less than wholly convinced by Aurora's spin.
Now what
Nor do they appear to be entirely optimistic about the company's future.
Management says it intends to continue cutting costs, and is on track to achieve positive free cash flow by the end of fiscal 2024 (which has already begun, with fiscal 2023 having been condensed down to just three quarters, of which the third quarter was the last).
Nearer term, management says revenue in the first quarter of fiscal 2024 will be basically flat sequentially. With profit margins also expected to be roughly similar, Aurora Cannabis is unlikely to earn any profit this quarter, either.
That's apparently not what investors were hoping to hear, and this is why they're selling off the stock today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) are down sharply in afternoon trading Wednesday, falling 7.6% through 1:55 p.m. Management also said it achieved its second sequential quarter of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) -- about CAD$310,000 in total. The company's take all sounds pretty positive, but judging from investors' reaction to the news, it appears they're less than wholly convinced by Aurora's spin. | What happened Shares of Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) are down sharply in afternoon trading Wednesday, falling 7.6% through 1:55 p.m. The company did not give a per-share figure for its net loss, but Aurora's total net loss of CAD$87 million appears to work out to a loss of CAD$0.25 per share ($0.19) based on the company's share count of 351.6 million. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | What happened Shares of Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) are down sharply in afternoon trading Wednesday, falling 7.6% through 1:55 p.m. The company did not give a per-share figure for its net loss, but Aurora's total net loss of CAD$87 million appears to work out to a loss of CAD$0.25 per share ($0.19) based on the company's share count of 351.6 million. 10 stocks we like better than Aurora Cannabis When our analyst team has a stock tip, it can pay to listen. | What happened Shares of Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) are down sharply in afternoon trading Wednesday, falling 7.6% through 1:55 p.m. Aurora reported revenue of only 64 million Canadian dollars ($48.1 million), a miss on sales. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis wasn't one of them! |
36389.0 | 2023-06-14 00:00:00 UTC | Aurora Cannabis (ACB) Q3 2023 Earnings Call Transcript | ACB | https://www.nasdaq.com/articles/aurora-cannabis-acb-q3-2023-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Aurora Cannabis (NASDAQ: ACB)
Q3 2023 Earnings Call
Jun 14, 2023, 8:15 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings. Welcome to the Aurora Cannabis third-quarter and full fiscal 2023 conference call. As a reminder, fiscal 2023 is comprised of three quarters, ending March 31st, 2023. All participants will be in listen-only mode, and a question-and-answer session will follow the formal presentation.
This conference call is being recorded today, Wednesday, June 14th, 2023. I would now like to turn the conference over to your host, Ananth Krishnan, vice president, corporate development and strategy. Please go ahead.
Ananth Krishnan -- Vice President, Corporate Development and Strategy
Thank you, Rob. We appreciate you all joining us this morning. With me today our Aurora's CEO, Miguel Martin; and CFO, Glen Ibbott. Prior to market open today, Aurora issued a news release announcing our fiscal 2023 third-quarter and year-end financial results.
This news release, accompanying financial statements, and MD&A will be available on our IR website, and it will also be available on SEDAR and EDGAR shortly after this call. In addition, you'll be able to find a supplemental information deck on our IR website. Listeners are reminded that certain matters discussed on today's conference call could constitute forward-looking statements that are subject to risks and uncertainties related to our future financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements.
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The risk factors that may affect actual results are detailed in our annual information form and other periodic filings and registration statements. These documents may similarly be accessed via SEDAR and EDGAR. Following the prepared remarks by Miguel and Glen, we will conduct a question-and-answer session with our covering analysts. We ask that you limit yourself to one question and then get back in the queue for follow-up.
With that, I will turn the call over to Miguel. Please go ahead.
Miguel Martin -- Chief Executive Officer
Thank you, Ananth. Q3 marks the end of our abbreviated fiscal 2023, and we're very pleased with our strategic and financial progress. First and foremost, our business transformation plan is working as we have now generated positive adjusted EBITDA for two consecutive quarters. Part of that plan included a commitment to rationalizing expenses, and we've done so over the last three fiscal years by approximately $400 million.
Today, we're announcing an additional 40 million annualized savings that we believe can be achieved by March 31st, 2024, the end of our fiscal 2024 year. This incremental reduction puts us squarely on the path to reach our next financial milestone, which is positive free cash flow. Glen will provide more context on this in his remarks. Milestones aside, the cannabis industry is still full of challenges, but we've not taken our eyes off what we view as Aurora's greatest opportunity, solidifying our position and focusing on resources on the global medical segment.
We remain the No. 1 Canadian LP. There is and will continue to be real and profitable growth opportunities in the global medical market for companies such as Aurora. We have been able to sustain and grow our high-margin medical cannabis revenue over time, and our diversified presence affords us some resilience to macroeconomic and regulatory risks.
Our view is that the momentum for top-line expansion and profitability remains very strong. And as we've said many times, Aurora's expertise in managing the complexity of multiple jurisdictions' regulatory frameworks, our unwavering commitment to science, breeding, and genetics sets us apart in this industry. And these are the capabilities that will position us to win new business in medical and, for that matter. recreational markets as they open up.
Our ability to invest and grow is supported by our strong balance sheet, which we've worked hard to improve over the last three years. We believe we're among a very small group of LPs and MSOs that have a robust balance sheet and net cash position. And this gives Aurora staying power and the necessary capital to be targeted and opportunistic in the midst of rapid industry rationalization. Let's now briefly touch on the quarter before Glen does a more complete financial review.
Our international medical revenue represents a global portfolio of profitable markets where we remain a leading cannabis provider. As part of our commitment to bring high quality, consistent, and innovative cannabis products to these patients, we recently introduced two Canadian-grown, high-THC cultivars that are popular in Canada to German patients. These proven products give physicians even more options to prescribe patients individually tailored treatments. While the German market for rec is exciting and something industry is eagerly awaiting, any enhancements to the current medical industry will have a more immediate impact.
In particular, the German government is currently working to deschedule cannabis in the first part of the legalization bill. With Aurora's leadership position in the German medical cannabis industry, we are well positioned to benefit from these proposed changes. Staying on the topic of Germany, as one of only three companies with a medical domestic production license in that country, Aurora will have a significant advantage and role when the German adult-use regulatory framework is developed. Turning to the Canadian medical market, our focus remains on serving insured patient groups, which represents some 82% of our Q3 Canadian medical cannabis net revenues, up 100 basis points from Q2 and up 500 basis points from Q3 last year.
Our industry-leading share remains at about 25%, roughly double that of our closest competitor. Looking forward, you may have read that we launched a new program for Canadian patients designed to support and empower cannabis patients on their wellness journey. Alongside the advice of a healthcare professional, Aurora patients can use the award-winning Strainprint App by logging their symptoms and consumption habits to better understand which strains, THC, CBD levels, and doses best work for them. This is technology and innovation at work, all for the sake of better patient outcomes.
Switching to Canadian adult rec. Despite ongoing macro challenges that are impacting this industry, Aurora has been able to maintain our net revenue position compared to Q2, while also increasing our gross margins by 5%. When comparing to Q3 of last year, we are seeing net revenue increase by 4.1 million. We've been able to do this by leveraging our science-driven cultivation advantages while continuing to invest in product innovation and product availability.
Finally, let's discuss Bevo, one of the largest suppliers of propagated vegetables and ornamental plants in North America. Q3 plant propagation revenue represented a significant increase from Q2 as we entered prime seasonality as the segment delivers its highest revenues in the late winter and spring months as orders are fulfilled. We have also completed repurposing the 800,000-square-foot Aurora Sky facility for orchid and vegetable propagation. We expect to see revenues generated from the Sky facility in the final quarter of calendar 2023.
And once executed, Bevo's financial contribution could be significant. This rapid expansion serves to increase Bevo's production capability and extended shipping range in Canada and the U.S. Now that we expect to see positive adjusted EBITDA on an annual basis, we see our next financial milestone as maintaining a net cash position and generating positive free cash flow. And with that, I would now like to turn the call over to Glen for our financial review.
Glen Ibbott -- Chief Financial Officer
Thank you, Miguel. Good morning, everyone. I will walk through the Q3 P&L momentarily, but first, let's review our balance sheet. Aurora already has one of the strongest balance sheets among Canadian LPs.
As of Monday, June 12th, we have approximately $230 million of cash and cash equivalents, and this should be more than sufficient to fund operations until we reach positive free cash flow, which we are working to achieve by the end of calendar year 2024. Miguel noted our plan to capture an additional $40 million in annualized cash flow savings this fiscal year. We've already put into motion most of the actions to achieve these savings, including the closure of production at our facility in Denmark, further targeted reductions to external SG&A operations costs, and a number of other initiatives and investments. In Q3 2023, our operations used a net $15.1 million excluding changes in working capital.
The 15.1 million includes about $2.1 million in nonrecurring termination costs, so our rate of operating cash use for planning purposes is approximately $13 million per quarter. To be a bit more prescriptive, this fiscal year, we're working on taking out a minimum of $5 million quarterly from operations as we eliminate less efficient operations and focus on supplying the globe from our very low cost, yet high-quality production facilities; removing a minimum of $5 million quarterly through a number of defined and targeted efficiency and cost-reduction initiatives in operations and in SG&A. Combined, these will bring us down to low single-digit quarterly cash use and operations during this fiscal year with nine months remaining before the end of calendar 2024 to achieve the remainder. Of course, this is all before considering revenue growth.
In addition, compared to Q3, we'll also save approximately $2 million a quarter in interest as we pay off the remainder of our convertible debt, currently standing at about $80 million Canadian. And we intend to pay that off by the end of this fiscal year. Finally, quarterly capital expenditures were $3.6 million in Q3, on par with the previous quarter. For fiscal 2024, we've also pulled in capex as that's required to keep our facilities maintained and working efficiently.
We expect to hold quarterly maintenance capex at an average of $2 million in fiscal 2024. That will save over $1 million a quarter compared to Q3. We're seeing the benefit of alignment of production and sales volumes. That significant excess inventory is an issue we seem to have put behind us.
At the same time, we are realizing the benefit of our long-term commitment to science and quality cultivation and that demand for our products globally is beginning to outpace supply. So, we see upside opportunity whether expanding capacity prudently and smartly. Revenue growth, as it arrives, is incremental on our -- on our path to positive cash flow. This could accelerate the timing of reaching our goal.
This road to positive free cash flow, while also preparing to realize incremental revenue opportunities, certainly distinguishes Aurora during a period of intense and rapid industry change and rationalization. Aurora is positioned with balance-sheet strength and realistic growth prospects to thrive over the long term as the global cannabis market expands. The actions I just outlined are the starting point on our journey to reach positive free cash flow by the end of calendar 2024. To make sure that we can be opportunistic during this period of industry rationalization, we will exclude any growth capex from our free cash flow target that is discretionary but that we might deploy to increase shareholder value even further.
We currently have approximately $80 million Canadian remaining on our convertible notes due in 2024. Subsequent to our year-end of March 31st, we repurchased about $50.9 million U.S. in aggregate principal amount of convertible senior notes for total cash consideration of approximately $46 million U.S. And we issued 6.4 million common shares in settlement of a further $4 million U.S.
of principal on this debt. And we will settle the remaining convertible debenture balance by maturity next year. We do not intend to refinance the notes. I should remind you that we continue to have access to approximately $241 million U.S.
under our base shelf prospectus. During Q3, we issued 4.7 million shares for net proceeds of $3.6 million and refiled a new shelf in March as the previous one was expiring. Note that our intentions regarding further share issuances would only be for strategic purposes, and that includes debt repayment. Now, let's review the P&L in each of our businesses.
Q3 total net revenue grew 4% to $64 million. That's compared to $61.7 million last quarter and up 27% compared to the year-ago period. For the second consecutive quarter, we achieved a modest positive adjusted EBITDA, which we attribute to both revenue growth and cost containment. Overall, Aurora's Q3 adjusted gross margin before fair value adjustments was 48% versus 45% in Q2, which remains among the industry's best.
Canadian medical revenue was $24.2 million in Q3, down 6% from Q2. The business is steady, but the revenue trend was impacted due to the timing of shipments at the end of Q1, which resulted in higher Q2 sales, again, demonstrating the value of our diversified portfolio of global medical businesses as markets developed. International medical revenue is $13.8 million, steady compared to last quarter with continuing growth in our export business to Australia, offsetting a slight decline [Audio gap] We have made the decision to close our Nordic production facility in Denmark and will supply our very important European business from our Canadian footprint where we have much lower per unit costs, higher quality, and a much more reliable supply. We believe this change, in addition to reduced costs, will allow us to compete even more effectively in the growing European market where we already have a substantial leadership position.
As usual, driven by our focus and leadership in global medical markets, medical cannabis represented about 71% of Q3 cannabis revenue and 86% of Aurora's adjusted cannabis gross profit. Medical adjusted gross margin was 60%, down only slightly from 61% in the prior quarter and within our target range of 60% and above. We expect the supply of Europe from Canada will improve European medical margins over the next fiscal year. The stability and strength of our medical adjusted gross margins is an important gross profit driver that truly distinguishes Aurora from its major competitors.
Consumer cannabis net revenue was $14.5 million, steady compared to last quarter, which we view favorably because it demonstrates our agility in delivering compelling products even with ongoing macro challenges in the consumer market. Adjusted gross margin before fair value adjustments on consumer cannabis net revenue is 25% in Q3, compared to 20% the prior quarter. The increase from Q2 was primarily driven by a shift in mix toward core segment brands as consumers responded to our product innovation. And in the plant propagation segment, our controlling stake in Bevo enabled us to recognize $10.8 million net revenue during Q3, up from $6.6 million in Q2.
As a reminder, Bevo has a seasonal cadence with two-thirds of Bevo's annual revenue and adjusted EBITDA being realized in the period from January to June. On an annualized basis, Bevo's business is steady and predictable and supports our ability to generate positive adjusted EBITDA and, eventually, positive free cash flow. Adjusted gross margin before fair value adjustments on plant propagations was 36% in Q3, compared to 15% in Q2. This was expected as the seasonality of the vegetable and ornamental plant industry in the late winter and spring months yield higher margins relative to the rest of the year because there's a high volume of production and orders being fulfilled in these months.
Finally, adjusted SG&A was $28.4 million, with adjusted R&D just below $2 million, reflecting our ongoing commitment to keeping SG&A well controlled. This was accomplished through the successful execution of our business transformation plan that included rationalizing our operations footprint and focusing on core business essentials. And a quick look ahead as we're closing in on the end of Q1 fiscal 2024. We expect cannabis net revenue for fiscal Q1 2024 to be largely similar to fiscal Q3 2023 with the geographic mix weighted slightly more heavily toward the international medical segment.
For plant propagation, we expect to see a seasonally strong quarter as we reach our peak selling period. Furthermore, adjusted gross margins are projected to be consistent with fiscal Q3 2023. And we also expect to maintain our stated objective of quarterly SG&A expense run rate below 30 million. To close and sum up, Aurora's financial metrics are healthy and strong with a diversified global cannabis business delivering dependable revenue and leading gross profit and supported by a well-controlled SG&A foundation.
As we outlined, management is working diligently to even further strengthen both the balance sheet and the company's free cash flow. Thanks for your interest. I'll now turn the call back to Miguel.
Miguel Martin -- Chief Executive Officer
Thanks, Glen. Several years ago, we embarked on a journey to bring the company to sustainable positive adjusted EBITDA. This has since been accomplished through our focus on the highest margin opportunity within cannabis, global medical, as well as a substantial reduction in costs that have resulted in significant operating efficiencies. We have now set another ambitious target of removing a further $40 million of costs during this fiscal year to support our goal of being free cash flow positive by the end of calendar 2024.
In the big picture, we believe our accomplishments to date, coupled with our near-term goals becoming convertible debt free and cash flow positive, truly sets us apart from our peers. And as industry rationalization takes hold, we think it is important for our investors to appreciate that we have the necessary capital, business plan, and, by extension, the staying power to not only endure but emerge stronger than these competitors as the global cannabis industry develops. Our growth and profitability focus is on the high-margin medical business that continues to expand globally, supported by innovation and development of quality products for our loyal patient base. We have and will continue to pull all levers at our disposal to create equity value for our shareholders, and that includes smartly allocating capital between organic growth, strategic M&A, and continuing to focus on all the details that build a world-class company.
Thank you for your time and interest in Aurora. Operator, please open the lines for questions.
Questions & Answers:
Operator
Thank you. We'll now be conducting the question-and-answer session. [Operator instructions] So that we may address questions from as many participants as possible, we ask that you please limit yourself to one question. If you have additional questions, you may requeue.
One moment please while we poll for questions. Thank you. Thank you. And our first question is coming from the line of Michael Lavery with Piper Sandler.
Please proceed with your question.
Michael Lavery -- Piper Sandler -- Analyst
Thank you. Good morning.
Miguel Martin -- Chief Executive Officer
Good morning, Michael.
Michael Lavery -- Piper Sandler -- Analyst
I just wanted to ask a little bit of a portfolio strategy question with a threat of capital allocation in it. Basically, just -- you mentioned strategic M&A at the end of your prepared remarks and also talked about paying down the convert. I guess, maybe some of it is -- is, you know -- with the cash balance you have now, is there any -- any reason to not pay that down sooner than later? Do you want to keep some dry powder? Is that part of your thinking? And on those a little bit more strategic side, how do you think about the portfolio evolution? Is there -- are there things proactively on your radar? Obviously, you're focused on on global medical, but obviously did the Bevo acquisition as well. So, clearly open to some adjacencies.
How do you think about maybe what the optimal portfolio looks like, or if there's additions you're looking for, or what it would take to make something interesting to you?
Miguel Martin -- Chief Executive Officer
Great. Well, listen. Good morning. We appreciate the question.
I think first and foremost is, as we think about the portfolio, we continue to focus on those areas in the cannabis business where you can make money. And right now, that's almost predominantly in the medical aspects with Canada and in Western Europe. And so, we continue to make investments in those areas which is definitely paying dividends. The margins are 2x what we see in rec.
It's a much more consolidated piece of business. And importantly in Europe, we're seeing a sort of a normalization of what the regulations are. EU GMP product that is allowed to be imported from facilities like ours in Canada. And while the regulations are really high, you get a lot of values and scale with those markets.
So, we're going to continue to expand there. We've seen positive movement in Switzerland and Austria most recently. And, obviously, the strength that we have in places like Germany and Poland and Czech Republic and whatnot make that an obvious piece of expansion. On the product side, what we're seeing is incredible advancements in the genetic work that we're doing in our -- we think one of the strongest facilities in the world out off Vancouver Island in bringing high-quality genetics, high potency, incredible yields to the medical channel but also to the rec channel.
And so, there are great efficiencies in that from a portfolio standpoint. Beyond, you know, cannabis as we see things that aren't obvious adjacent, like Bevo, which was a wonderful acquisition and a great team, it allowed us to do a couple of things. One is the consistency and sort of value of a great company like Bevo but also utilize world-class facilities like we mentioned with Sky, you know, to get value out of that. So, we'll continue to look at that.
In terms of the balance sheet and the debt, as we've stated, it is our goal to take out the rest of the converts before their maturity next year, which obviously, has a pretty significant impact on interest savings. But the balance sheet is an important one, and we've worked really hard to be one of the few companies in a net cash position. And we look forward to being opportunistic. There are, you know, in this time of consolidation, we continue to see things that are of interest.
But as you know, we've been really, really patient. And I think that's paid off in not chasing some of the higher valuations you saw a couple of years ago. And importantly for us, not chasing on the U.S., which just wasn't, you know, a core set up, and I think, right now, poses a challenge particularly for Canadian companies.
Operator
Our next question is from the line of Frederico Gomes with ATB Capital Markets. Please proceed with your question.
Frederico Gomes -- ATB Capital Markets -- Analyst
Hi. Good morning. Thank you for taking my questions. Just on your consumer cannabis segment, we have seen a positive market share trend recently or at least stabilization and some gains according to some data providers.
So, can you talk a little bit about that segment? Is there any chance that you could accelerate market share gains there, especially on edibles? We think we're seeing a good pickup there. You know, what is it that you're seeing that market, you know, could that surprise for the upside? Thank you.
Miguel Martin -- Chief Executive Officer
Well, Fred, thank you for the question. So, as you recall, we made an acquisition just about a year ago with a company called Thrive that had a wonderful portfolio of products including a very, you know, super premium product line called Greybeard. And that team, which is really why we went after that asset, was wonderfully adept at navigating the rec market. And the rec market is still -- presents a lot of challenges.
We still see price compression. We still see the growth of value flower at pricing that doesn't make sense, but we do see spots where you can perform and make some money, concentrates, pre-rolls, and, to your point, injectibles, which we had some considerable success in. So, as we look at the landscape, you know, right now, we have a little bit less than a three share. And it does not appear that if you had a larger share, you would have greater profitability.
So, we're being very, I think, thoughtful in how we look at all of our opportunities in rec. And as opportunities present itself, you know, we're able to take advantage because of our low cost of production and innovation. I think we're a little bit of a ways off where there will be strong economics across all aspects of the rec portfolio, but it's definitely getting better. And we see some glimmers of hope with provincial entities such as the OCS putting in pricing floors.
And we do see a little bit of the rationalization on pricing, particularly on flower that gives us some hope that, in the future, you could see more profit opportunities. And with that, we'll definitely take advantage of it because with the genetics and science and innovation that we have implemented in our medical channel, there's an easy crossover into rec.
Operator
Our next question is in the line of Pablo Zuanic with Zuanic & Associates. Please proceed with your question.
Pablo Zuanic -- Zuanic and Associates -- Analyst
Good morning. Thanks. Look, regarding the German market, Miguel, a two-part question. What I'm hearing is that the sources of growth there, it's mostly coming from the online pharmacy business, right? So, the reimbursable business is pretty much flat to down, and even the cash business in brick and mortar, it's -- it's flattish.
So, it's online pharmacy driving growth, and that could be significant because we know that, in terms of patients, that's underpenetrated end market. So, first of all, is that true? The second question is that the concern I have when I check all the websites of those online pharmacies, they have a significant number of SKUs, and they pride themselves in that variety they have there. And if you're an LP, you know, shipping a few SKUs, maybe you are a disadvantage. I mean, tell me about that.
I know you talked about some new cultivars, but if you can stress this assumption. Thank you.
Miguel Martin -- Chief Executive Officer
Yeah. Well, thanks for the question, Pablo. I would say it's not just online pharmacies. And so, what we're seeing is a growth in the overall prescriber base.
Now, right now in Germany, it is a bit challenging because of the classification of cannabis as a narcotic for a traditional physician or clinician to prescribe cannabis. But that is starting to expand. And one of the things that's been lost in all of the noise about what's happening with the German rec business has been stated position of the German government to reduce bureaucracy and to open up the medical cannabis business. Right now, in Germany, it's about 0.1% of the adult population is in the cannabis system, where as say in Canada, it's 1%.
So, we are seeing some expansion outside of the online pharmacies. And, you know, you mentioned the point about their catalog and how many brands are in there. A couple of things on that. First and foremost, one of the great challenges in the German market is the incredible rigor that they have with the testing to have products be acceptable in the market.
It has to be roughly around 10% of the stated potency in their lab. So, product quality and availability that meets that spec is one of the key competitive drivers in Germany as opposed to say the distribution system that you're referencing. The second thing in Germany, what we're seeing is an interest in more premium quality and higher-potency medications. And so, therefore, we've introduced two proven cultivars from Canada into Germany.
And the early read is that they're well received. The last thing is we saw a lot of investment as people were getting excited about a possible rec solution. And now, with that being a bit off, we're going to see consolidation. And so, unlike the rec business in Canada where the top 10 LPs only do 30% of the business, the top five LPs and the medical business in -- in Germany might do two-thirds of the overall business.
So, there are efficiencies there for the LPs that can navigate that high bar and that can consistently connect with patients. And that will be a benefit both in the online system, as well as the brick and mortar. And lastly, we do think that with the progression of some of the regs, traditional brick and mortar through a pharmacy is going to be much more the prevailing application as opposed to today's execution that's somewhat skewed.
Operator
Our next question comes from the line of Vivien Azer with TD Cowen. Please proceed with your question.
Robin Holby -- Cowen and Company -- Analyst
Good morning. This is Robin Holby on for Vivien Azer. And thank you for taking the question. Given the pivot away from the Nordic facility, can you dimensionalize any near-term gross margin headwind you might expect from moving supply for Europe back to Canada? And you mentioned this should increase gross margins over time.
Could you explain what gives you conviction in the ability to increase gross margins above the 60% gross margin target over time? Thank you.
Miguel Martin -- Chief Executive Officer
Sure. Thanks for the question. So, one of the challenges with that facility, there was probably three primary challenges. The first is the regulations on what would be traditional remediation of pathogens, whether that's powdery mildew or other things, in that facility made it a bit difficult to achieve the same yield in production that we get out of Canada.
So, that's one. Secondly, the size of that greenhouse facility did not really lend itself to the same sort of production efficiencies that we get out of our traditional indoor facilities that we have in Canada. And third, because there is no difference in terms of the ability to ship that product into that market, when you're able to utilize the scale and the sophistication and, to be honest, the experience that we had with the Canadian facility into that -- into that European market, it's a benefit. The other thing I'll mention is that we started in the European markets with Canadian flower particularly.
And in the German market and some other European markets, they value, for whatever reason, the Canadian product as having a higher quality and being more, you know, sort of valuable to them. And so, it is a margin increase for us, but also the predictability, because of our knowledge and experience with those indoor facilities in Ontario is so much higher, that it's just an overall better system, which is why we think we can grow margins. Now, in terms of the overall margin profile, we don't see any added costs. And because the economics run through the wholesale list price for the overall system, you're not seeing the same pricing compression that you would see, say, in the rec market in Canada.
And as we get greater efficiencies in our production, as well as in other aspects of the distribution and sales and marketing in those markets, we do see the opportunity to have an accretive margin situation. So, we're excited about that.
Operator
Our next questions is from the line of Tamy Chen with BMO Capital Markets. Please proceed with your question.
Tamy Chen -- BMO Capital Markets -- Analyst
Hi. Good morning. Thanks for the question. I wanted to step back a bit and talk about your cost structure.
And I suspect you may also, as a result, touch on the new cost savings plan that you mentioned. But I just wanted to understand, if I look at your business now, the majority is in the medical side, Canada as well as international, though Canada is a bigger part. And with respect to the consumer or recreational segment over the last several while you've really narrowed down that business in your focus to be profitable, I'm just wondering at this point now, when I look at your quarterly SG&A on an adjusted basis, it's about, as you said, around 30 million a quarter. So, that's still 120 million a year of adjusted SG&A, which is a decent amount versus your total revenue figure.
So, I'm just wondering, at this point now, what -- why is it still so significant? What are the biggest cost components there that you feel can still be worked down going forward? Thanks.
Miguel Martin -- Chief Executive Officer
You got it. Let me make a couple of comments, then I'll turn it over to Glen. So, first and foremost is you well know, Tamy, and we appreciate the question. You know, we took about 400 million out over the past three years, and we've announced another 40.
The 30 million that you're describing in SG&A, there's still complexity and general cost to the cannabis system that looks a little different than say what I'm used to from a CPG standpoint. The production, the medical, the regulations, the shipping, all of that is complex and, therefore, creates cost. It's something we look at a lot, and I think people should have great confidence that when we say we're going to get to this 40 within the time period, we're going to get there. But that doesn't mean we're going to stop there and as we see other opportunities.
In terms of rec, about $14 million or $15 million a quarter in revenue there, and we've made significant improvements in terms of the cost profile of that. But as you mentioned, the vast majority of our focus and where we think the real upside is on the medical business, which scale does benefit you there, which will help with sort of the scaling of the SG&A versus future growth because we can produce out of those common facilities in Canada and ship around the world. Well, Glen, maybe I can turn it over to you, and you could talk a little specifically about the cost structure for Tamy.
Glen Ibbott -- Chief Financial Officer
Thanks, Miguel. I think you covered it quite well. Tamy, you know, we're in four different businesses, all cannabis related plus Bevo. So, you know, supporting global medical in Europe and becoming quite a -- quite a nice business in Australia.
Canadian medical, Canadian rec, and Bevo, it's complex. And so, you know, we've got maybe heavier than you might expect for the legal regulatory [Inaudible] sort of framework. And certainly shipping, which we run through our SG&A, shipping to the provinces to Europe, to Australia, etc., etc., runs through our SG&A. And, you know, this is about serving the globe.
So, we think we've built a good platform. We will continue to see crossroads to kind of say normal course of business, continue to look for efficiencies every year. And on top of that, we do our public company costs. So -- so, we are looking, and we have defined plans that are already in progress to reduce the cost by about $5 million a quarter.
But -- but just just realizing we've got a platform that's quite capable of scale. So, as we add incremental revenue through some of the opportunities that are right in front of us, we don't need to scale up SG&A. We believe we can continue to hold it at this level and add top-line revenue, start to see those metrics looking a little bit more like you might expect. Thank you.
Operator
Our next questions from the line of John Zamparo with CIBC. Please proceed with your question.
John Zamparo -- CIBC World Markets -- Analyst
Thank you very much. I wanted to ask about the consumer segment and, in particular, on -- on edibles. And you've gained considerable share in that category according to Hifyre data. I wonder if you can frame how much of that has come from glitches or any other brands that offer chewable extracts.
And what's your view on how that matter plays out with regulators?
Miguel Martin -- Chief Executive Officer
Yeah, John. Thanks for the question. Yeah. We look at the quarter, and obviously, the decision by Health Canada on glitches, it was considerable.
It's probably was a couple of million dollars of revenue in the quarter associated with glitches. I think it's an interesting piece. We were really excited about the innovation on glitches. And navigating that, we obviously made our submission to Health Canada six months before we launched it, and then Health Canada had a concern or questions, I guess, say, on ours and other products.
I know that's an industry fight, and we're going to be talking to Health Canada about that 10 milligram limit. On glitches, and I'm not going to -- I'm not saying it's going to be the same amount of volume. But the prohibition was having more than 10 milligram in one package. And so, we're going to continue to have glitches in the market going forward, but it will just be one unit at 10 milligrams as opposed to the 10 by 10 that we had out there.
This has been raised I think by a variety of different entities in Canada, the competition bureau and a variety of other industry entities that this is a real sort of gap for the legal regulatory forward license producers versus the illicit market where you see what I would describe as an irresponsible representation of edibles at high potencies, youthful presentations. And so, I think over time, this is one that's going to resolve itself. But for us, I think this is an example of our ability to pivot. Within six months, we identified that opportunity, we're able to launch it and did seven figures in sales in the quarter.
That's not the last innovative item we're going to have. We're launching infused pre-rolls. We're launching other minor cannabinoid gummies which have done really well, as well as innovations that we've seen in flower and other core aspects that have done well. So, in this market, you've got to be very agile as Glen mentioned in his comments.
We've done that. And I think what we've done really well that I'm really proud of is we take what's there, and we don't chase what I would call unprofitable market share. And we're still not in a place in the rec business where having a 10-plus share is going to guarantee that we're going to have greater profitability. So, as I mentioned before, we're about a three share.
We're finding the spots that we think are sustainable and profitable, and we are seeing some positive movements, the OCS price wars and other provinces decisions on flower. And so, we'll get there. And as we look forward in the future quarters, we'll see things like glitches that we're excited about. And I do think, as I mentioned before, that the 10 milligram cap will be addressed at some point.
Operator
Our next question is from the line of Yewon Kang with Canaccord Genuity. Please proceed with your question.
Yewon Kang -- Canaccord Genuity -- Analyst
Hi. Good morning. This is Yewon Kang on for Matt Bottomley. Thanks for the question.
Just wanted to touch on the adjusted gross margins for the quarter. Under the wholesale bulk cannabis business, as well as the Bevo Farms business, adjusted gross margins for these segments ticked up this quarter pretty significantly. So, I guess, could you speak to any of the drivers that caused the sequential growth in these margins? Thanks.
Miguel Martin -- Chief Executive Officer
Of course. Glen, you want to take that one?
Glen Ibbott -- Chief Financial Officer
Yeah, absolutely. So, in the plant propagation business, as I mentioned in my prepared remarks, it's seasonal. And so, what's really happening in the first half of this fiscal year, but it's all in our reported Q3 this evening and our reported Q1 is that, just a fully utilized stuff to -- stuff to the rafters facility that's really cranking out a ton of plants and, therefore, revenue. So, you're getting a completely utilized cost structure in that -- in those two quarters.
That's why the margins are higher. Through the remainder of the year, we expect them to be a little bit lower, more similar to what we saw in our Q2. I guess, the one of the beauties I think of what Bevo is doing with the Sky facility is the orchid business that's being launched at Sky is a little less seasonal to start to smooth some of those comps out in our plant propagation margin. Beyond that, the bulk sale cannabis, as we just said, have a lot less excess cannabis.
And we're finding a spot -- spots to sell some of our higher-potency volume, and those infuse some nice margins on some of the core bulk sales. That's not a segment that we're leaning on [Inaudible] talked about it much. And that's really just seen as an outlet after we've got four different channels that are all kind of fighting for cannabis right now if there's a little bit left at the end also through the bulk sale process. Thank you.
Operator
Thank you. At this time, we've reached the end of the question-and-answer session. And I'll turn the call over to Miguel Martin for closing remarks.
Miguel Martin -- Chief Executive Officer
Well, listen. We are thrilled with this quarter and, more importantly, thrilled about where the company is going. We appreciate everybody's interest in this, and we look forward to sharing the story as we go forward. On behalf of everyone in Aurora, thank you for your interest, and take it from there.
All the best. Thanks.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Ananth Krishnan -- Vice President, Corporate Development and Strategy
Miguel Martin -- Chief Executive Officer
Glen Ibbott -- Chief Financial Officer
Michael Lavery -- Piper Sandler -- Analyst
Frederico Gomes -- ATB Capital Markets -- Analyst
Pablo Zuanic -- Zuanic and Associates -- Analyst
Robin Holby -- Cowen and Company -- Analyst
Tamy Chen -- BMO Capital Markets -- Analyst
John Zamparo -- CIBC World Markets -- Analyst
Yewon Kang -- Canaccord Genuity -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis (NASDAQ: ACB) Q3 2023 Earnings Call Jun 14, 2023, 8:15 a.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Michael Lavery -- Piper Sandler -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Pablo Zuanic -- Zuanic and Associates -- Analyst Robin Holby -- Cowen and Company -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst John Zamparo -- CIBC World Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Alongside the advice of a healthcare professional, Aurora patients can use the award-winning Strainprint App by logging their symptoms and consumption habits to better understand which strains, THC, CBD levels, and doses best work for them. | Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Michael Lavery -- Piper Sandler -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Pablo Zuanic -- Zuanic and Associates -- Analyst Robin Holby -- Cowen and Company -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst John Zamparo -- CIBC World Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis (NASDAQ: ACB) Q3 2023 Earnings Call Jun 14, 2023, 8:15 a.m. International medical revenue is $13.8 million, steady compared to last quarter with continuing growth in our export business to Australia, offsetting a slight decline [Audio gap] We have made the decision to close our Nordic production facility in Denmark and will supply our very important European business from our Canadian footprint where we have much lower per unit costs, higher quality, and a much more reliable supply. | Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Michael Lavery -- Piper Sandler -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Pablo Zuanic -- Zuanic and Associates -- Analyst Robin Holby -- Cowen and Company -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst John Zamparo -- CIBC World Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis (NASDAQ: ACB) Q3 2023 Earnings Call Jun 14, 2023, 8:15 a.m. To be a bit more prescriptive, this fiscal year, we're working on taking out a minimum of $5 million quarterly from operations as we eliminate less efficient operations and focus on supplying the globe from our very low cost, yet high-quality production facilities; removing a minimum of $5 million quarterly through a number of defined and targeted efficiency and cost-reduction initiatives in operations and in SG&A. | Operator [Operator signoff] Duration: 0 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Strategy Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Michael Lavery -- Piper Sandler -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Pablo Zuanic -- Zuanic and Associates -- Analyst Robin Holby -- Cowen and Company -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst John Zamparo -- CIBC World Markets -- Analyst Yewon Kang -- Canaccord Genuity -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis (NASDAQ: ACB) Q3 2023 Earnings Call Jun 14, 2023, 8:15 a.m. Canadian medical revenue was $24.2 million in Q3, down 6% from Q2. |
36390.0 | 2023-06-14 00:00:00 UTC | Correction: Aurora Cannabis Reports Narrower Loss In Q3 | ACB | https://www.nasdaq.com/articles/correction%3A-aurora-cannabis-reports-narrower-loss-in-q3 | nan | nan | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year.
The company reported loss from continuing operations of C$87.23 million compared with loss from continuing operations of C$1.012 billion last year.
The revenue was C$64 million in the third quarter compared to C$50.4 million in 2022. The company noted that the Bevo acquisition contributed C$10.7 million in revenue. Looking ahead to the first quarter, the company expects cannabis net revenue similar to the third quarter.
In the regular trading session on Tuesday, the stock closed at $0.58, up $0.02 or 4.77%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The company noted that the Bevo acquisition contributed C$10.7 million in revenue. In the regular trading session on Tuesday, the stock closed at $0.58, up $0.02 or 4.77%. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The company reported loss from continuing operations of C$87.23 million compared with loss from continuing operations of C$1.012 billion last year. The company noted that the Bevo acquisition contributed C$10.7 million in revenue. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The company reported loss from continuing operations of C$87.23 million compared with loss from continuing operations of C$1.012 billion last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The revenue was C$64 million in the third quarter compared to C$50.4 million in 2022. In the regular trading session on Tuesday, the stock closed at $0.58, up $0.02 or 4.77%. |
36391.0 | 2023-06-14 00:00:00 UTC | Aurora Cannabis Reports Narrower Loss In Q3 | ACB | https://www.nasdaq.com/articles/aurora-cannabis-reports-narrower-loss-in-q3 | nan | nan | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year.
The company reported loss of C$87.23 million compared with loss of C$67.2 million last year.
The revenue was C$64 million in the third quarter compared to C$50.4 million in 2022. The company noted that the Bevo acquisition contributed C$10.7 million in revenue. Looking ahead to the first quarter, the company expects cannabis net revenue similar to the third quarter.
In the regular trading session on Tuesday, the stock closed at $0.58, up $0.02 or 4.77%. However, during the premarket trading, the stock is currently trading at $0.59, up 0.68%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The company noted that the Bevo acquisition contributed C$10.7 million in revenue. In the regular trading session on Tuesday, the stock closed at $0.58, up $0.02 or 4.77%. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The company reported loss of C$87.23 million compared with loss of C$67.2 million last year. The company noted that the Bevo acquisition contributed C$10.7 million in revenue. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The company reported loss of C$87.23 million compared with loss of C$67.2 million last year. The revenue was C$64 million in the third quarter compared to C$50.4 million in 2022. | (RTTNews) - Aurora Cannabis Inc. (ACB) on Wednesday reported a narrower loss for the third quarter, which can be credited to the impact of the Bevo acquisition, as it coincides with the beginning of its historically productive time of the year. The company noted that the Bevo acquisition contributed C$10.7 million in revenue. In the regular trading session on Tuesday, the stock closed at $0.58, up $0.02 or 4.77%. |
36392.0 | 2023-05-25 00:00:00 UTC | The Most Likely Scenario for Aurora Cannabis Stock Doesn't Look Good | ACB | https://www.nasdaq.com/articles/the-most-likely-scenario-for-aurora-cannabis-stock-doesnt-look-good | nan | nan | Aurora Cannabis (NASDAQ: ACB) has been struggling for years. Despite all the layoffs and cost-cutting efforts management deployed, its financials remain problematic and investors simply don't see many reasons to invest in the business. The stock is trading down to well under $1 per share, and another reverse stock split is inevitable for the company. The likely long-term scenario is that the company isn't able to survive -- at least, not on its own.
Aurora Cannabis investors shouldn't expect a turnaround
Aurora Cannabis' stock price fell 96% over the past three years. After some strong initial growth in 2018, when Canada legalized the recreational pot market, an influx of competition made it difficult for the company to stay out of the red, and even simply generating consistent growth is now a challenge.
ACB Revenue (Quarterly YoY Growth) data by YCharts
The cannabis company pivoted more toward medical marijuana in an effort to improve profitability. However, even that wasn't enough to turn things around as the company continues to incur net losses. At this point, Aurora Cannabis is likely in too deep to turn things around all on its own.
It lacks the deep pockets that a business such as Canopy Growth has thanks to its partnership with beer maker Constellation Brands to simply allow it to weather the storm and invest in growth opportunities in other markets. As of Feb. 8, Aurora reported 310 million Canadian dollars in cash on hand. That might be sufficient to keep the lights on, but it won't leave much room for growth given the company's persistent cash burn.
ACB Cash from Operations (TTM) data by YCharts
A takeover may be inevitable
At a market cap of around $230 million, Aurora could make for an attractive takeover target. Admittedly, whoever takes over the business will have a big cleanup job to do to trim the operations. But with marijuana companies such as SNDL and Tilray Brands looking at acquisitions to bolster their portfolios, Aurora could make for a suitable target.
What the company has going for it is a strong medical business. Aurora is a market leader in the Canadian medical marijuana market. It's also in 11 international cannabis markets, including Germany, France, and the U.K. Having a strong global presence in marijuana could be more valuable in the future, especially since legalization in the U.S. doesn't appear to be inevitable. Companies could opt to go overseas rather than wait for the U.S. market to open up.
Whether it's SNDL, Tilray, or another marijuana business focused on pursuing growth opportunities, Aurora does have assets that could prove to be valuable to a potential acquirer.
Is Aurora Cannabis stock worth buying right now?
If a takeover takes place, Aurora Cannabis' stock could rise in value. But that is relative, and even if a deal does happen, it could be after the stock declines even further from where it is now. It can be extremely risky to buy a troubled stock such as Aurora simply in the hopes that another company might buy it out. There's no guarantee as to when that might happen and what value it would fetch, regardless of how probable the scenario looks to be.
Aurora Cannabis has been one of the worst investments to own in the cannabis industry and there's no reason to expect that will change now. Inflation hasn't gone away and consumers are being more selective in what they are spending money on, and that could mean that falling sales remain a problem for the business as the year goes on. Aurora Cannabis is a stock that investors should continue to stay far away from.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming.
Cannabis legalization is sweeping over North America – 19 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.
Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.
Simply click here to get the full story now.
Learn more
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Brands. The Motley Fool recommends SNDL. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACB Revenue (Quarterly YoY Growth) data by YCharts The cannabis company pivoted more toward medical marijuana in an effort to improve profitability. Aurora Cannabis (NASDAQ: ACB) has been struggling for years. ACB Cash from Operations (TTM) data by YCharts A takeover may be inevitable At a market cap of around $230 million, Aurora could make for an attractive takeover target. | ACB Revenue (Quarterly YoY Growth) data by YCharts The cannabis company pivoted more toward medical marijuana in an effort to improve profitability. ACB Cash from Operations (TTM) data by YCharts A takeover may be inevitable At a market cap of around $230 million, Aurora could make for an attractive takeover target. Aurora Cannabis (NASDAQ: ACB) has been struggling for years. | Aurora Cannabis (NASDAQ: ACB) has been struggling for years. ACB Revenue (Quarterly YoY Growth) data by YCharts The cannabis company pivoted more toward medical marijuana in an effort to improve profitability. ACB Cash from Operations (TTM) data by YCharts A takeover may be inevitable At a market cap of around $230 million, Aurora could make for an attractive takeover target. | Aurora Cannabis (NASDAQ: ACB) has been struggling for years. ACB Revenue (Quarterly YoY Growth) data by YCharts The cannabis company pivoted more toward medical marijuana in an effort to improve profitability. ACB Cash from Operations (TTM) data by YCharts A takeover may be inevitable At a market cap of around $230 million, Aurora could make for an attractive takeover target. |
36393.0 | 2023-05-17 00:00:00 UTC | Better Buy: Aurora Cannabis vs. Trulieve Cannabis | ACB | https://www.nasdaq.com/articles/better-buy%3A-aurora-cannabis-vs.-trulieve-cannabis | nan | nan | The marijuana industry is currently very interesting. While the majority of marijuana stocks are declining, affected by a lack of progress toward legalization, the sector as a whole is expanding rapidly. The global cannabis market is predicted to reach $149 billion in annual sales by 2031, growing at a compound annual growth rate of 20%, according to estimates from Allied Market Research.
Canadian cannabis company Aurora Cannabis (NASDAQ: ACB) has been investors' favorite for quite a while. The company recently hit its target of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), impressing investors. Meanwhile, after concentrating solely on its home state of Florida for the past few years, domestic marijuana player Trulieve Cannabis (OTC: TCNNF) is emerging from its cocoon.
Over the past year, both stocks have fallen by more than 60%. Although one of them looks better equipped to deal with industry challenges, the company as a whole has solid fundamentals and the potential to be very profitable in the long run. Let's dig in to find out which is the better buy right now.
Image source: Getty Images.
The case for Aurora Cannabis
Aurora Cannabis gained popularity after Canada legalized medical cannabis in 2016. As the market expanded, the company went on an acquisition binge, putting a strain on its balance sheet. What's more, a demand-supply imbalance soon threatened Aurora's top line in the Canadian market and dragged its stock down by 99% in the last five years. The company began to lose money and was forced to close the majority of its underperforming facilities to achieve its long-awaited goal of positive adjusted EBITDA.
It finally hit its target in its second-quarter fiscal 2023 (period ended Dec. 31). An improvement over the adjusted EBITDA loss of 7.1 million Canadian dollars in the prior-year quarter, adjusted EBITDA in the recent quarter came in at CA$1.4 million.
However, EBITDA does not accurately reflect profit. In the quarter, it reported a net loss of CA$67 million. Sequentially, it spent more cash (CA$60.6 million vs. CA$31 million ) on operating activities, suggesting it is spending more money than it is bringing in, which is not a good sign.
With roughly CA$260 million in unrestricted cash, the company asserts it has a solid balance sheet. However, most of its funds were raised by reissuing shares, which is bad for shareholders. Aurora doesn't even have a reliable financial partner to support its growth in the booming U.S. market if and when U.S. federal legalization occurs. Further, Aurora seems highly leveraged with over CA$220 million in debt. Before Aurora can demonstrate that it's a good growth stock, it has many obstacles to deal with.
The case for Trulieve Cannabis
Multi-state operator (MSO) Trulieve Cannabis isn't as favored as Aurora yet. But over the past few years, this MSO has proven itself. From a small medical cannabis company in its home state of Florida, it has come to dominate the state with 125 stores.
Trulieve runs 56 additional stores across the nation and provides a broad range of cannabis products for both medical and recreational use. In the first quarter of 2023, the company added three new locations, bringing its total to 186 across the country.
Before the oversupplied U.S. market began to impact its top line, the company had been consistently profitable for many quarters over the previous three years. The company's recently reported first-quarter total revenue decreased 9% year over year to $289 million. In addition, adjusted EBITDA dipped to $78 million from $105 million in the same quarter last year.
Yet, the company is actively scaling up and has the necessary financial stability to do so. The company ended the quarter with $195 million in cash, cash equivalents, and restricted cash.
When Florida legalizes recreational marijuana, its statewide dominance will be useful, as few marijuana companies have such a strong presence there. The state is still undergoing development with the 2024 legalization initiative. Trulieve's monopoly in a limited-license market guarantees a devoted customer base and ongoing profits for years to come, enriching shareholders.
But Trulieve must also be careful not to overextend itself and burden its balance sheet like Aurora Cannabis did.
Which should you buy now?
The choice is very clear. The best growth stock to buy now is Trulieve Cannabis.
Aurora could take a while to bounce back unless it starts generating profits. Also, I worry that Aurora's stock may undergo another reverse stock split to prevent it from getting delisted. It faced a similar situation in 2020 when it was forced to opt for a 1-for-12 reverse stock split as its shares consistently traded below $1 (below the New York Stock Exchange's trading limit).
If it decides to grow like rival Curaleaf Holdings, Trulieve has a lot of opportunity, even in international markets, as more European countries could legalize marijuana in the near future. The U.S. market is also huge for this MSO. As more states legalize marijuana, Trulieve could have a wider market share as the industry headwinds fade.
Though Trulieve is a better growth stock than Aurora, note that it is still risky. Until the industry realizes its full potential, Trulieve's path may be an uphill battle. If investors can be patient and can stomach these risks, it could be a better cannabis investment for the long haul.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming.
Cannabis legalization is sweeping over North America – 19 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.
Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.
Simply click here to get the full story now.
Learn more
Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Trulieve Cannabis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Canadian cannabis company Aurora Cannabis (NASDAQ: ACB) has been investors' favorite for quite a while. Meanwhile, after concentrating solely on its home state of Florida for the past few years, domestic marijuana player Trulieve Cannabis (OTC: TCNNF) is emerging from its cocoon. The company began to lose money and was forced to close the majority of its underperforming facilities to achieve its long-awaited goal of positive adjusted EBITDA. | Canadian cannabis company Aurora Cannabis (NASDAQ: ACB) has been investors' favorite for quite a while. The case for Aurora Cannabis Aurora Cannabis gained popularity after Canada legalized medical cannabis in 2016. Sequentially, it spent more cash (CA$60.6 million vs. CA$31 million ) on operating activities, suggesting it is spending more money than it is bringing in, which is not a good sign. | Canadian cannabis company Aurora Cannabis (NASDAQ: ACB) has been investors' favorite for quite a while. The case for Aurora Cannabis Aurora Cannabis gained popularity after Canada legalized medical cannabis in 2016. The case for Trulieve Cannabis Multi-state operator (MSO) Trulieve Cannabis isn't as favored as Aurora yet. | Canadian cannabis company Aurora Cannabis (NASDAQ: ACB) has been investors' favorite for quite a while. An improvement over the adjusted EBITDA loss of 7.1 million Canadian dollars in the prior-year quarter, adjusted EBITDA in the recent quarter came in at CA$1.4 million. In addition, adjusted EBITDA dipped to $78 million from $105 million in the same quarter last year. |
36394.0 | 2023-05-10 00:00:00 UTC | OraSure Technologies (OSUR) Q1 Earnings and Revenues Beat Estimates | ACB | https://www.nasdaq.com/articles/orasure-technologies-osur-q1-earnings-and-revenues-beat-estimates | nan | nan | OraSure Technologies (OSUR) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 131.25%. A quarter ago, it was expected that this diagnostic test maker would post earnings of $0.01 per share when it actually produced earnings of $0.21, delivering a surprise of 2,000%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
OraSure, which belongs to the Zacks Medical - Products industry, posted revenues of $154.96 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 21.88%. This compares to year-ago revenues of $67.71 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
OraSure shares have added about 40.5% since the beginning of the year versus the S&P 500's gain of 7.3%.
What's Next for OraSure?
While OraSure has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for OraSure: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $90.96 million in revenues for the coming quarter and $0.39 on $337.92 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +95.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Aurora Cannabis Inc.'s revenues are expected to be $48.19 million, up 21% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. Click to get this free report OraSure Technologies, Inc. (OSUR) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Click to get this free report OraSure Technologies, Inc. (OSUR) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. OraSure, which belongs to the Zacks Medical - Products industry, posted revenues of $154.96 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 21.88%. | Click to get this free report OraSure Technologies, Inc. (OSUR) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. OraSure Technologies (OSUR) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.16 per share. | Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. Click to get this free report OraSure Technologies, Inc. (OSUR) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. OraSure Technologies (OSUR) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.16 per share. |
36395.0 | 2023-05-02 00:00:00 UTC | InMode (INMD) Q1 Earnings and Revenues Top Estimates | ACB | https://www.nasdaq.com/articles/inmode-inmd-q1-earnings-and-revenues-top-estimates | nan | nan | InMode (INMD) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.40 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4%. A quarter ago, it was expected that this maker of cosmetic surgery devices would post earnings of $0.74 per share when it actually produced earnings of $0.78, delivering a surprise of 5.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
InMode, which belongs to the Zacks Medical - Products industry, posted revenues of $106.07 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $85.92 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
InMode shares have added about 5.3% since the beginning of the year versus the S&P 500's gain of 8.6%.
What's Next for InMode?
While InMode has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for InMode: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $132.2 million in revenues for the coming quarter and $2.66 on $535.8 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +95.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Aurora Cannabis Inc.'s revenues are expected to be $48.19 million, up 21% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. Click to get this free report InMode Ltd. (INMD) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. | Click to get this free report InMode Ltd. (INMD) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. InMode, which belongs to the Zacks Medical - Products industry, posted revenues of $106.07 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 0.26%. | Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. Click to get this free report InMode Ltd. (INMD) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. InMode (INMD) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.50 per share. | Another stock from the same industry, Aurora Cannabis Inc. (ACB), has yet to report results for the quarter ended March 2023. Click to get this free report InMode Ltd. (INMD) : Free Stock Analysis Report Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report To read this article on Zacks.com click here. InMode (INMD) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.50 per share. |
36396.0 | 2023-04-30 00:00:00 UTC | This Troubled Stock Might Go Up in Smoke | ACB | https://www.nasdaq.com/articles/this-troubled-stock-might-go-up-in-smoke | nan | nan | It's been roughly five years since Canada legalized cannabis, and it's been an unpleasant ride for investors in Aurora Cannabis (NASDAQ: ACB), one of Canada's leading growers and operators.
The company became a penny stock after surging to over $120 per share in 2018. While some may hope for a tremendous comeback story, sometimes a business model just isn't good.
Here's a look at Aurora Cannabis' problems and why investors should stay away from the stock for the foreseeable future.
Cannabis became a commodity
There was a lot of excitement when Canada legalized cannabis; a new market was born. However, the enthusiasm created a rush of companies flooding the market -- and with it, competition.
You can see in the chart that Aurora's gross margins and revenue growth were strong initially, but operators had to cut prices to compete as supply increased.
ACB Gross Profit Margin data by YCharts
When a company's margins go from north of 50% to negative in a few years, that's a sign that the business has little competitive advantage. Although there are differences in types of cannabis flower, what's the difference between brand X and brand Y? The black market, which supported demand for years, had no branding. Facing pricing pressure while a company invests in growing production, marketing its product, and hiring employees is a recipe for financial disaster.
Data source: Aurora Cannabis.
You can see that gross profit was just 3.5 million Canadian dollars over the last six months of 2022, leading to tremendous losses once you factor in overheads and other expenses. Without pricing power, Aurora Cannabis must sell a ton of volume to generate cash flow, which it hasn't been able to do yet.
How long can Aurora survive?
Aurora must stop burning cash if it wants to survive over the coming years. It turned a profit on non-GAAP (generally accepted accounting principles) earnings before interest, taxes, depreciation, and amortization (EBITDA) in its quarter ending Dec. 31, but that doesn't translate to cash flow. Balance sheet cash declined to CA$310 million from CA$488 million the prior quarter, and operating losses were CA$71 million for the quarter.
Management is aggressively cutting costs, but it's still hard to see its cash position lasting much longer. Without significant improvements, Aurora has enough cash for another year at last quarter's burn rate. The company could be forced to raise cash with an equity raise (a very dilutive move at its current share price), meaning the stock would be worth even less.
On the other hand, Aurora has been trying to stabilize its balance sheet, and taking on new debt to survive would also be counterproductive. Aurora's management called its efforts to turn cash flow positive a multiquarter initiative, which doesn't instill much confidence that it can do so without an injection of funds.
Don't get lured into a penny stock
Aurora's share price has declined to less than $1, making it a penny stock and an extremely speculative investment. Don't get tempted into making a bad investment by looking for an easy gain. The stock is this cheap because Aurora faces a real chance of bankruptcy and could struggle to make it much further than 2024 at this rate.
The company was once a promising player in a growing cannabis market, but a mixture of bad management and pricing pressure on a product that sells like a commodity stopped Aurora in its tracks. Avoid the stock until the business is at least generating an operating profit, and then reassess from there. Otherwise, your hard-earned money could go up in smoke.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It's been roughly five years since Canada legalized cannabis, and it's been an unpleasant ride for investors in Aurora Cannabis (NASDAQ: ACB), one of Canada's leading growers and operators. ACB Gross Profit Margin data by YCharts When a company's margins go from north of 50% to negative in a few years, that's a sign that the business has little competitive advantage. It turned a profit on non-GAAP (generally accepted accounting principles) earnings before interest, taxes, depreciation, and amortization (EBITDA) in its quarter ending Dec. 31, but that doesn't translate to cash flow. | It's been roughly five years since Canada legalized cannabis, and it's been an unpleasant ride for investors in Aurora Cannabis (NASDAQ: ACB), one of Canada's leading growers and operators. ACB Gross Profit Margin data by YCharts When a company's margins go from north of 50% to negative in a few years, that's a sign that the business has little competitive advantage. Facing pricing pressure while a company invests in growing production, marketing its product, and hiring employees is a recipe for financial disaster. | It's been roughly five years since Canada legalized cannabis, and it's been an unpleasant ride for investors in Aurora Cannabis (NASDAQ: ACB), one of Canada's leading growers and operators. ACB Gross Profit Margin data by YCharts When a company's margins go from north of 50% to negative in a few years, that's a sign that the business has little competitive advantage. Don't get lured into a penny stock Aurora's share price has declined to less than $1, making it a penny stock and an extremely speculative investment. | ACB Gross Profit Margin data by YCharts When a company's margins go from north of 50% to negative in a few years, that's a sign that the business has little competitive advantage. It's been roughly five years since Canada legalized cannabis, and it's been an unpleasant ride for investors in Aurora Cannabis (NASDAQ: ACB), one of Canada's leading growers and operators. Without pricing power, Aurora Cannabis must sell a ton of volume to generate cash flow, which it hasn't been able to do yet. |
36397.0 | 2023-04-27 00:00:00 UTC | Better Growth Stock: Aurora Cannabis vs. Tilray Brands | ACB | https://www.nasdaq.com/articles/better-growth-stock%3A-aurora-cannabis-vs.-tilray-brands | nan | nan | Marijuana stocks have fallen out of favor in the last two years. But the pot business is experiencing fluctuations like any other evolving industry. Investors who can be patient and wait for the industry to reach its full potential could be rewarded greatly. In fact, experts predict that global cannabis sales will increase at a compound annual rate of 20% to $149 billion by 2031.
The Canadian producers Aurora Cannabis (NASDAQ: ACB) and Tilray Brands (NASDAQ: TLRY) are two of the most popular marijuana companies. Only one of them, however, seems to have the potential to thrive in the long run.
Image source: Getty Images.
Aurora Cannabis reported its first positive EBITDA quarter
Aurora Cannabis has been investors' favorite among pot stocks for a while. But after its balance sheet was burdened by some of its reckless decisions, like an acquisition spree, the stock has dropped by 99% in the last five years.
However, its most recent quarterly results gave reason to believe that the company is on the mend. It finally achieved its long-awaited goal of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which came in at 1.4 million Canadian dollars ($1.03 million) in the second quarter of fiscal 2023. It is a significant improvement over the year-ago quarter's adjusted EBITDA loss of CA$7.1 million.
But there's more to the picture than meets the eye. To begin with, EBITDA is not a true measure of profit. Second, it still had a net loss of CA$67 million in the second quarter. It spent CA$60.6 million in cash on operating activities in the quarter, compared to CA$31 million in the first quarter, implying that it is burning more cash than it is making.
Although it appears to have a strong balance sheet with CA$310 million in cash, the company is still losing money. Furthermore, Aurora has raised the majority of its funds by reissuing shares, which does not sit well with investors. The company does not have a deep-pocketed partner like its peers to help with its expansion if and when cannabis is federally legalized in the U.S. Aurora management would have to prove it can reduce cash burn while boosting the top line organically to last in the long run.
Tilray's European expansion could be worthwhile
In 2021, Aphria and Tilray, two Canadian cannabis companies, merged to form Tilray Brands in an all-stock deal worth $3.9 billion. Tilray has benefited from the merger in a variety of ways, but it was also affected by the external headwinds that have engulfed Canadian cannabis companies (excess supply, fierce competition, regulatory delays, and rising black market sales).
However, Aphria had strengthened its position in the European market, which Tilray took advantage of. So, while the Canadian cannabis industry is struggling, Tilray continues to grow through its European operations, with cultivation and distribution in Portugal and Germany. The company earns a significant portion of distribution revenue from its German subsidiary CC Pharma.
Distribution revenue increased 5% year over year to $65.4 million in the company's fiscal third quarter, which ended Feb. 28. But its total net revenue fell 4% year over year to $145.6 million. Management attributed the revenue decline to demand-supply imbalances as well as excise-tax pressure.
While peers continue to struggle to be EBITDA positive, the company recorded its 16th consecutive quarter of positive adjusted EBITDA, at $14 million. It reported a $1.2 billion net loss, compared to a $52.5 million profit in the year-ago quarter. Management attributed this loss to a $1.1 billion noncash impairment charge caused by higher interest rates and goodwill reassessment (due to a drop in the company's market cap).
Adult-use marijuana could soon be legal in Germany, and other European countries could follow suit. Tilray's management believes it has an early mover advantage as the European cannabis market will grow at a compound annual rate of 61%, reaching $14 billion by 2022. Tilray's global exposure could serve as a buffer in the long run.
There's only one clear "winner" here
When it comes to earning long-term profits from a cannabis stock, Tilray is the better option here.
I see no reason for Aurora's stock to recover anytime soon unless the company begins to generate profits. Moreover, I believe the company could be heading for another reverse stock split to keep its stock from being delisted.
In 2020, Aurora faced a similar situation in which its stock price remained below $1 for an extended period, putting it at risk of delisting from the New York Stock Exchange. It was then forced to consolidate its shares in a 1-for-12 reverse stock split. Such a move gives a stock a quick boost from short-term gains, but the good times are usually fleeting.
Despite external headwinds in Canada, regulatory pressures, and the rise in black market sales, Tilray has managed to keep its business relatively stable and costs low while closing on a huge merger. The company's efforts in diversifying beyond the cannabis space and in different global markets could help it turn around and put it ahead of its peers in the long haul.
Tilray's stock is cheap now, trading at a price-to-sales ratio of 2.4, making it a good time to buy. But cannabis stocks are risky, so starting with a small investment in Tilray, as part of a well-diversified portfolio of stable stocks, would be a wise move.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Canadian producers Aurora Cannabis (NASDAQ: ACB) and Tilray Brands (NASDAQ: TLRY) are two of the most popular marijuana companies. The company does not have a deep-pocketed partner like its peers to help with its expansion if and when cannabis is federally legalized in the U.S. Aurora management would have to prove it can reduce cash burn while boosting the top line organically to last in the long run. Tilray has benefited from the merger in a variety of ways, but it was also affected by the external headwinds that have engulfed Canadian cannabis companies (excess supply, fierce competition, regulatory delays, and rising black market sales). | The Canadian producers Aurora Cannabis (NASDAQ: ACB) and Tilray Brands (NASDAQ: TLRY) are two of the most popular marijuana companies. Aurora Cannabis reported its first positive EBITDA quarter Aurora Cannabis has been investors' favorite among pot stocks for a while. Tilray's management believes it has an early mover advantage as the European cannabis market will grow at a compound annual rate of 61%, reaching $14 billion by 2022. | The Canadian producers Aurora Cannabis (NASDAQ: ACB) and Tilray Brands (NASDAQ: TLRY) are two of the most popular marijuana companies. Aurora Cannabis reported its first positive EBITDA quarter Aurora Cannabis has been investors' favorite among pot stocks for a while. Tilray's European expansion could be worthwhile In 2021, Aphria and Tilray, two Canadian cannabis companies, merged to form Tilray Brands in an all-stock deal worth $3.9 billion. | The Canadian producers Aurora Cannabis (NASDAQ: ACB) and Tilray Brands (NASDAQ: TLRY) are two of the most popular marijuana companies. Aurora Cannabis reported its first positive EBITDA quarter Aurora Cannabis has been investors' favorite among pot stocks for a while. Distribution revenue increased 5% year over year to $65.4 million in the company's fiscal third quarter, which ended Feb. 28. |
36398.0 | 2023-04-20 00:00:00 UTC | How Aurora Cannabis, Curaleaf, and SNDL Stack Up on 420 Day 2023 | ACB | https://www.nasdaq.com/articles/how-aurora-cannabis-curaleaf-and-sndl-stack-up-on-420-day-2023 | nan | nan | April 20th has a special significance for the cannabis industry. Its roots go back to the 1970s when a group of California students met secretly at 4:20 p.m. PT to smoke marijuana.
Using cannabis was illegal back then. Today, it's a multibillion-dollar industry with dozens of publicly traded companies based in the U.S. and Canada.
Three of those companies have especially attracted investors' attention in recent years -- Aurora Cannabis (NASDAQ: ACB), Curaleaf Holdings (OTC: CURLF), and SNDL (NASDAQ: SNDL) (formerly known as Sundial Growers). Here's how Aurora, Curaleaf, and SNDL stack up against each other on 420 Day 2023.
Stock performance
Let's start with the bad news. All three of these marijuana stocks have declined significantly over the last 12 months. Aurora Cannabis is the worst of the group, with its share price plunging more than 80%.
SNDL isn't too far behind (or ahead -- whichever way you look at it). Its shares have plummeted more than 70% since this time last year.
Curaleaf, which is based in the U.S., has fared better than its two Canadian peers. Its stock even briefly ventured into positive territory in late 2022.
However, that momentum was dashed with the failure of efforts to advance legislation in the U.S. Congress that would pave the way for banks to offer full services to cannabis operators without violating federal regulations.
The entire cannabis industry has faced stiff headwinds over the last year. Oversupply has driven prices down while higher interest rates have made it more expensive to obtain funding. Labor shortages have created problems for companies in finding workers. So far in 2023, these issues haven't subsided.
Financials
Have those industrywide headwinds shown up in these three companies' financial numbers? Definitely.
Aurora Cannabis announced year-over-year net revenue growth of only 1.8% in its quarter ending Dec. 31, 2022. The company's bulk wholesale business served as a drag on stronger growth in its medical cannabis business.
Aurora remains unprofitable. However, the Canadian cannabis operator finally managed to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) -- a goal it's had for years.
Curaleaf delayed the reporting of its 2022 fourth-quarter results because of some snags with converting from International Financial Reporting Standards (IFRS) to U.S. generally accepted accounting principles (GAAP) standards. But the company's Q3 results weren't especially impressive. Curaleaf's Q3 revenue increased 7% year over year to $340 million, while its net loss widened to nearly $51.5 million.
SNDL's net revenue for the quarter ending Sept. 30, 2022 rose a whopping 1,501% year over year. Don't get too excited, though: Nearly all of the increase stemmed from the company's acquisitions of liquor retailer Alcanna and Nova Cannabis. SNDL still posted a hefty net loss of 98.8 million in Canadian dollars.
Overall, Curaleaf appears to be in the strongest financial position. It generated cash flow from operations of $60 million in its most recently reported quarter. SNDL posted an operating cash flow of CA$8.6 million. Aurora is still working toward delivering positive cash flow from operations.
SNDL, though, has the largest cash stockpile, with CA$988 million of cash, marketable securities, and long-term investments as of Sept. 30, 2022. The company also had no outstanding debt.
Curaleaf's cash position stood at $197.7 million as of the same date. Aurora had around CA$310 million in cash as of Feb. 8, 2023, including restricted cash totaling CA$65 million.
Valuation
Since none of these companies are profitable, we can't use earnings-based valuation metrics. However, here's how they compare based on market cap and price-to-sales multiples:
COMPANY MARKET CAP PRICE-TO-SALES
Aurora Cannabis $220 million 1.14
Curaleaf Holdings $1.85 billion 1.41
SNDL $394 million 0.92
Data source: Yahoo! Finance.
Best of the bunch
Which of these beaten-down cannabis stocks is in the best position on 420 Day 2023? My vote would go to Curaleaf. It deserves a higher valuation because of the company's strength in the U.S. cannabis market.
While the growth opportunities for Curaleaf in the U.S. are significant, investors should be cautious about jumping aboard right now. Federal cannabis reform remains elusive and the supply glut is still in place. Black market sales continue to be problematic.
Curaleaf could be a big winner over time. For now, though, my view is that there are other stocks with more attractive risk-reward profiles.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends SNDL. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Three of those companies have especially attracted investors' attention in recent years -- Aurora Cannabis (NASDAQ: ACB), Curaleaf Holdings (OTC: CURLF), and SNDL (NASDAQ: SNDL) (formerly known as Sundial Growers). However, that momentum was dashed with the failure of efforts to advance legislation in the U.S. Congress that would pave the way for banks to offer full services to cannabis operators without violating federal regulations. However, the Canadian cannabis operator finally managed to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) -- a goal it's had for years. | Three of those companies have especially attracted investors' attention in recent years -- Aurora Cannabis (NASDAQ: ACB), Curaleaf Holdings (OTC: CURLF), and SNDL (NASDAQ: SNDL) (formerly known as Sundial Growers). SNDL posted an operating cash flow of CA$8.6 million. Aurora Cannabis $220 million 1.14 Curaleaf Holdings $1.85 billion 1.41 SNDL $394 million 0.92 Data source: Yahoo! | Three of those companies have especially attracted investors' attention in recent years -- Aurora Cannabis (NASDAQ: ACB), Curaleaf Holdings (OTC: CURLF), and SNDL (NASDAQ: SNDL) (formerly known as Sundial Growers). Curaleaf's Q3 revenue increased 7% year over year to $340 million, while its net loss widened to nearly $51.5 million. Aurora Cannabis $220 million 1.14 Curaleaf Holdings $1.85 billion 1.41 SNDL $394 million 0.92 Data source: Yahoo! | Three of those companies have especially attracted investors' attention in recent years -- Aurora Cannabis (NASDAQ: ACB), Curaleaf Holdings (OTC: CURLF), and SNDL (NASDAQ: SNDL) (formerly known as Sundial Growers). But the company's Q3 results weren't especially impressive. Curaleaf's Q3 revenue increased 7% year over year to $340 million, while its net loss widened to nearly $51.5 million. |
36399.0 | 2023-04-18 00:00:00 UTC | 3 Former High-Flying Stocks Down 92% to 99% That Billionaire Investors Can't Stop Buying | ACB | https://www.nasdaq.com/articles/3-former-high-flying-stocks-down-92-to-99-that-billionaire-investors-cant-stop-buying | nan | nan | Though you probably don't need the reminder, 2022 was a difficult year for much of the investment community. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all entered a bear market and produced their worst full-year returns since 2008.
But not all stocks have fared equally. Some former high-flying stocks have been taken the woodshed, with losses easily exceeding 90%. Yet for a select group of downtrodden highfliers, optimism remains -- at least among billionaire investors.
Image source: Getty Images.
No later than 45 days following the end of a quarter, fund managers overseeing at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission. A 13F provides a snapshot of what Wall Street's brightest money managers have been buying and selling. According to the latest round of 13Fs, three former highfliers, which are down between 92% and 99%, have been popular buys among billionaire money managers.
Teladoc Health: Down 92% from its all-time high
The first beaten-down former highflier that billionaires haven't been able to stop buying of late is telehealth kingpin Teladoc Health (NYSE: TDOC). After hitting an all-time high of $308 in February 2021, shares of the company have plummeted all the way back to $25 and change.
Despite this tumble, billionaires Israel Englander of Millennium Management and Ken Griffin of Citadel Advisors have been active buyers. Millennium added more than 2.3 million shares of Teladoc during the fourth quarter, while Citadel increased its existing stake by more than 30% with a nearly 316,000-share purchase.
The reason Teladoc shed more than 90% of its value primarily has to do with it grossly overpaying for applied health signals company Livongo Health in late 2020. Last year, Teladoc took three sizable writedowns tied to this $18.5 billion deal, resulting in a full-year loss of $84.60 per share! Just over $83 of this per-share loss is from impairment charges.
In hindsight, Teladoc grossly overpaid for Livongo. However, the bright side that is that it took its lumps and correctly recognized that it would be virtually impossible to recoup the goodwill associated with this deal. By taking hefty non-cash impairment charges in 2022, Teladoc should have much cleaner operating comparisons moving forward.
What's more, Teladoc Health has shown that it's not just a fad stock that benefited from the COVID-19 pandemic. While virtual visit demand certainly picked up during the pandemic, average annual sales growth in the six years leading up to declaration of a global pandemic was 74%. That's not a fluke. Rather, it's representative of an ongoing shift in personalized care.
Telemedicine is making it easier than ever to connect patients with physicians, as well as allowing physicians to keep closer tabs on their chronically ill patients. The expectation is we'll see improved patient outcomes and less money coming out of the pockets of health insurers. Anything that saves health insurers money is something they're going to promote and support.
Lastly, don't overlook the long-term potential of Livongo Health, even if Teladoc overpaid to acquire the company. Livongo's chronic care program enrollment grew by a healthy 16% in 2022 and now tops 1 million. Cross-selling opportunities between the two platforms, coupled with mindful spending, can help move Teladoc closer to profitability in 2023.
Aurora Cannabis: Down 99% from its all-time high
The second former highflier that's been absolutely decimated, yet continues to draw attention from billionaire investors, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). On a split-adjusted basis, shares of Aurora have plunged more than 99% from their all-time high.
In spite of its poor performance, Aurora Cannabis had two notable billionaire buyers during the fourth quarter. The aforementioned Israel Englander of Millennium Management scooped up roughly 6.24 million shares, while billionaire Jim Simons of Renaissance Technologies purchased almost 1.68 million shares.
The biggest issue for Aurora Cannabis is that it grossly overestimated domestic and international demand. At one point in 2019, Aurora owned 15 production facilities that, if fully developed, would have easily topped 600,000 kilos of annual cannabis output. Comparatively, Canadians consumed an estimated 391,000 kilos of weed all of last year. Aurora's projections weren't even close, and the company was forced to write down billions of dollars in goodwill tied to multiple overpriced acquisitions.
Another sizable problem is that Canadian consumers have favored value-based dried cannabis flower, rather than higher-margin derivatives, such as oils, vapes, and edibles. While Aurora has had modest success supplying medical cannabis domestically and abroad, its role in the recreational marijuana market has been nothing short of a disappointment.
Profits have also remained elusive for Aurora Cannabis. Even though the company finally made good on its bid to reach positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and it's delivered approximately $340 million in annualized cost savings from where things stood in February 2020, adjusted EBITDA isn't the same as a profit. Through the first six months of fiscal 2023, Aurora has an operating loss of 125.4 million Canadian dollars ($93.8 million U.S.) and doesn't appear to be particularly close to recurring profitability.
But arguably worst of all, Aurora Cannabis is a serial diluter. Since the company continues to lose money, it's been selling stock via registered offerings and at-the-market issuances for nearly a decade. Between June 30, 2014 and Dec. 30, 2022, Aurora's split-adjusted outstanding share count has risen from about 1.3 million to just shy of 341 million. Suffice it to say, there's little reason to be optimistic about Aurora Cannabis stock.
Image source: Getty Images.
Novavax: Down 97% from its all-time high
The third former beaten-down highflier that billionaire investors can't stop buying is biotech stock Novavax (NASDAQ: NVAX). After hitting nearly $332 on an intra-day basis a little over two years ago, shares of Novavax have shed 97% of their value.
Yet even with this poor performance, select billionaire money managers have been willing to take the plunge. This includes Jim Simons' Renaissance Technologies, which purchased 1.94 million shares during the fourth quarter, Israel Englander's Millennium Management, which bought 1.02 million shares, and John Overdeck's and David Siegel's Two Sigma Investments, which opened a 1.01-million-share position.
Novavax gained its fame during the COVID-19 pandemic. The company's phase 3 clinical study involving NVX-CoV2373 (known as Nuvaxovid internationally) was one of only three COVID-19 vaccines to reach the psychologically important 90% vaccine efficacy level. Superficially, it looked like a slam-dunk to become a key player in fighting the pandemic.
However, two big miscues caused Novavax to miss out on most of the proverbial low-hanging fruit (i.e., initial series vaccines in high-margin developed markets). The company delayed its filing for emergency-use authorization in the U.S. on numerous occasions, and it ran into manufacturing issues when trying to ramp production. The end result for Novavax was $1.98 billion in peak annual sales when its peers were netting closer to $20 billion annually from COVID-19 vaccines.
Perhaps the biggest dilemma for Novavax now is whether the company can keep the lights on. Although Novavax would appear to have plenty of cash on hand to navigate near-term turbulence, ongoing arbitration with vaccine relief organization Gavi could lead to the company having to return $700 million. This arbitration is what coerced the company to issue a going concern warning with its fourth-quarter operating results, despite ending 2022 with $1.34 billion in cash and cash equivalents.
If Novavax makes it through 2023 and receives a favorable arbitration ruling, its pipeline could be intriguing. Even with the worst of the COVID-19 pandemic in the rearview mirror, the potential for combination vaccines (influenza/COVID-19) is meaningful. But this is all a big "if" that's completely dependent on the future arbitration ruling.
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Sean Williams has positions in Novavax and Teladoc Health. The Motley Fool has positions in and recommends Teladoc Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis: Down 99% from its all-time high The second former highflier that's been absolutely decimated, yet continues to draw attention from billionaire investors, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). Aurora's projections weren't even close, and the company was forced to write down billions of dollars in goodwill tied to multiple overpriced acquisitions. However, two big miscues caused Novavax to miss out on most of the proverbial low-hanging fruit (i.e., initial series vaccines in high-margin developed markets). | Aurora Cannabis: Down 99% from its all-time high The second former highflier that's been absolutely decimated, yet continues to draw attention from billionaire investors, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). The aforementioned Israel Englander of Millennium Management scooped up roughly 6.24 million shares, while billionaire Jim Simons of Renaissance Technologies purchased almost 1.68 million shares. Novavax: Down 97% from its all-time high The third former beaten-down highflier that billionaire investors can't stop buying is biotech stock Novavax (NASDAQ: NVAX). | Aurora Cannabis: Down 99% from its all-time high The second former highflier that's been absolutely decimated, yet continues to draw attention from billionaire investors, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). Teladoc Health: Down 92% from its all-time high The first beaten-down former highflier that billionaires haven't been able to stop buying of late is telehealth kingpin Teladoc Health (NYSE: TDOC). Novavax: Down 97% from its all-time high The third former beaten-down highflier that billionaire investors can't stop buying is biotech stock Novavax (NASDAQ: NVAX). | Aurora Cannabis: Down 99% from its all-time high The second former highflier that's been absolutely decimated, yet continues to draw attention from billionaire investors, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). Novavax: Down 97% from its all-time high The third former beaten-down highflier that billionaire investors can't stop buying is biotech stock Novavax (NASDAQ: NVAX). That's right -- they think these 10 stocks are even better buys. |
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