Unnamed: 0 stringlengths 3 8 | Date stringlengths 23 23 | Article_title stringlengths 1 250 | Stock_symbol stringlengths 1 5 | Url stringlengths 44 135 | Publisher stringclasses 1 value | Author stringclasses 1 value | Article stringlengths 1 343k | Lsa_summary stringlengths 3 53.9k | Luhn_summary stringlengths 1 53.9k | Textrank_summary stringlengths 1 53.9k | Lexrank_summary stringlengths 1 53.9k |
|---|---|---|---|---|---|---|---|---|---|---|---|
36700.0 | 2021-09-28 00:00:00 UTC | Camber Energy Alert: What’s Going on With New Meme Favorite CEI Stock Today? | ACB | https://www.nasdaq.com/articles/camber-energy-alert%3A-whats-going-on-with-new-meme-favorite-cei-stock-today-2021-09-28 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Camber Energy (NYSEAMERICAN:CEI) stock is running higher on Tuesday despite a lack of news concerning the company.
Source: John Brueske/Shutterstock.com
Instead, it’s another case of retail investors jumping into the stock in an effort to push prices higher. Shares prices were doing well in pre-market trading and continued to rise this morning. We saw a dip partway through the morning. However, shares appear to be on the upward trend again as of this writing.
So what does this mean for CEI stock investors? Expect more volatility throughout the day as retail traders continue to pump and dump the stock today. That means we might see several more dips and rises before the day is done.
Investors looking to jump into CEI stock today will want to be careful about doing so. There’s no guaranteeing when this pump and dump will come to an end. Join the rally at the wrong time and you could be left holding the bag while others run with the profits.
7 Best Stocks to Buy Now to Protect Against a Potential Pullback
Of course, retail traders bring heavy trading of CEI stock with them today. As of this writing, more than 439 million shares of the stock have changed hands. To put that in perspective, the company’s daily average trading volume is about 79 million shares.
CEI stock was up 6.3% as of Tuesday morning and is up 194.4% since the start of the year.
There’s more hotstock market newsworth looking into below!
InvestorPlace offers coverage of all thelatest stock market newsthat traders will want to know about. That includes what’s happening with shares of Aurora Cannabis (NASDAQ:ACB), Digital Brands Group (NASDAQ:DBGI), and Hyzon Motors (NASDAQ:HYZN) today. You can find out all about that at the following links!
More Stock Market News for Tuesday
Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings?
6 Reasons Why Digital Brands Group Investors Are Smiling Today as DBGI Stock Soars
Hyzon Motors News: The Negative Short Report Sending HYZN Stock Into a Tail-Spin Today
On the date of publication, William White 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.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
The post Camber Energy Alert: What’s Going on With New Meme Favorite CEI Stock Today? 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. | That includes what’s happening with shares of Aurora Cannabis (NASDAQ:ACB), Digital Brands Group (NASDAQ:DBGI), and Hyzon Motors (NASDAQ:HYZN) today. More Stock Market News for Tuesday Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? Source: John Brueske/Shutterstock.com Instead, it’s another case of retail investors jumping into the stock in an effort to push prices higher. | That includes what’s happening with shares of Aurora Cannabis (NASDAQ:ACB), Digital Brands Group (NASDAQ:DBGI), and Hyzon Motors (NASDAQ:HYZN) today. More Stock Market News for Tuesday Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Camber Energy (NYSEAMERICAN:CEI) stock is running higher on Tuesday despite a lack of news concerning the company. | That includes what’s happening with shares of Aurora Cannabis (NASDAQ:ACB), Digital Brands Group (NASDAQ:DBGI), and Hyzon Motors (NASDAQ:HYZN) today. More Stock Market News for Tuesday Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Camber Energy (NYSEAMERICAN:CEI) stock is running higher on Tuesday despite a lack of news concerning the company. | That includes what’s happening with shares of Aurora Cannabis (NASDAQ:ACB), Digital Brands Group (NASDAQ:DBGI), and Hyzon Motors (NASDAQ:HYZN) today. More Stock Market News for Tuesday Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? Shares prices were doing well in pre-market trading and continued to rise this morning. |
36701.0 | 2021-09-28 00:00:00 UTC | Midday Market Update: Why Are Stocks Down Today? | ACB | https://www.nasdaq.com/articles/midday-market-update%3A-why-are-stocks-down-today-2021-09-28 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market isn’t doing so hot on Tuesday and we’re diving into the reasons why in our midday market update.
Source: Shutterstock
So why are stocks down today? There are a few factors affecting thestock market today Among them is the rising price of oil. Prices have jumped above $80 a barrel, which is the first time it’s broken that price point since 2018.
This is leading to fears of an energy crisis this winter. Some predictions claim temperatures are going to be too cool for suppliers to meet demand. As a result, countries around the world could continue to see the price of oil rise higher in the coming months.
To go along with that, we’re also seeing uncertainty surrounding bond yields as the Federal Reserve prepares to recalibrate. That’s coming after its boosts that went into effect during the pandemic.
Another concern for investors comes from Treasury Secretary Janet Yellen. She warns that the approaching debt ceiling could cut spending if not raised or suspended. That means legislators will have to come to an agreement on the federal debt limit, reports Bloomberg.
7 Best Stocks to Buy Now to Protect Against a Potential Pullback
Of course, there’s also no denying the fear that comes from the novel coronavirus. Investors are still unsure about recovering markets as talk of the Delta variant spreading has some shareholders uncertain about their investments.
Traders will want to keep all of this in mind while doing business today. Make your decisions with a clear head and don’t fall into panic selling.
We’ve got morestock newsoutside of the midday market update worth looking into below!
InvestorPlace offers daily coverage of the stock market and today is no different. A few examples of stories to check out include an update on this week’s Lucid Motors (NASDAQ:LCID) event, what has Camber Energy (NYSEAMERICAN:CEI) rising higher, as well as price predictions for Aurora Cannabis (NASDAQ:ACB). You can learn all about these stocks at the following link!
More Tuesday Stock Market News
LCID Stock Dips Tuesday Despite ‘Electric’ Lucid Event Update
Camber Energy Alert: What’s Going on With New Meme Favorite CEI Stock Today?
Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings?
On the date of publication, William White 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.
The post Midday Market Update: Why Are Stocks Down Today? 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. | A few examples of stories to check out include an update on this week’s Lucid Motors (NASDAQ:LCID) event, what has Camber Energy (NYSEAMERICAN:CEI) rising higher, as well as price predictions for Aurora Cannabis (NASDAQ:ACB). Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? As a result, countries around the world could continue to see the price of oil rise higher in the coming months. | A few examples of stories to check out include an update on this week’s Lucid Motors (NASDAQ:LCID) event, what has Camber Energy (NYSEAMERICAN:CEI) rising higher, as well as price predictions for Aurora Cannabis (NASDAQ:ACB). Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market isn’t doing so hot on Tuesday and we’re diving into the reasons why in our midday market update. | A few examples of stories to check out include an update on this week’s Lucid Motors (NASDAQ:LCID) event, what has Camber Energy (NYSEAMERICAN:CEI) rising higher, as well as price predictions for Aurora Cannabis (NASDAQ:ACB). Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market isn’t doing so hot on Tuesday and we’re diving into the reasons why in our midday market update. | Aurora Cannabis Price Predictions: Where Is ACB Stock Going After Earnings? A few examples of stories to check out include an update on this week’s Lucid Motors (NASDAQ:LCID) event, what has Camber Energy (NYSEAMERICAN:CEI) rising higher, as well as price predictions for Aurora Cannabis (NASDAQ:ACB). InvestorPlace offers daily coverage of the stock market and today is no different. |
36702.0 | 2021-09-28 00:00:00 UTC | 3 Ultra-Popular Stocks With No Buy Ratings on Wall Street | ACB | https://www.nasdaq.com/articles/3-ultra-popular-stocks-with-no-buy-ratings-on-wall-street-2021-09-28 | nan | nan | Looking to buy a stock? Chances are Wall Street has a favorable view of the publicly traded company you're looking to add to your portfolio.
According to data from CNBC, over 90% of all S&P 500 stock ratings from Wall Street analysts were the equivalent of "buy" or "hold" between 1997 and 2017. With the exception of short periods in 2002-2003 and 2008-2009, sell ratings have consistently accounted for only 1% to 6% of all ratings for S&P 500 companies this century.
One reason for this "buy bias" is due to the U.S. and global economy growing over time. Historically, the stock market moves higher over the long run, too. Wall Street analysts might simply be playing the favorable odds that higher-quality businesses will increase in value over time.
Additionally, The Wall Street Journal noted some years back that Wall Street analysts are hesitant to issue sell ratings so as not to burn bridges for their clients or themselves with the companies they cover. No matter the reasoning, sell ratings are rare on Wall Street.
Image source: Getty Images.
But don't tell that to shareholders of the following three ultra-popular stocks. These are three of the 16 most-held stocks on the Robinhood (NASDAQ: HOOD) platform, and not one of them has a single buy rating from a Wall Street analyst.
Aurora Cannabis
One of the biggest buzzkills, according to Wall Street, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). Aurora, which at one time was the most-held stock on Robinhood, is being covered by 13 Wall Street institutions, seven of which rate the company the equivalent of a hold and six of which believe it's a sell.
Though Aurora Cannabis does foot the blame for a lot of this negativity, some of its issues can be traced to Canadian federal and provincial regulators failing the pot industry. For example, Ontario's lottery system to assign retail licenses through 2019 was terrible and resulted in only a few dozen dispensaries opening. Canadian pot stocks are still trying to recover from supply chain bottlenecks in the country's most populous province.
But as I mentioned, Aurora Cannabis isn't without fault. The company expanded its production capacity far beyond what was needed. At one time, it held 15 production facilities that could have yielded more than 600,000 kilos of annual cannabis output if fully operational. Management has since closed five of these smaller facilities, sold a 1-million-square-foot greenhouse that wasn't retrofitted for cannabis production, and halted construction on two of the company's largest projects.
Yet, even with this aggressive cost-cutting, Aurora Cannabis is still a long way from generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA). With the company continuing to burn cash and the previous management team grossly overpaying for about a dozen acquisitions, it's regularly had to sell its common stock to raise capital to pay its bills and fund buyouts.
Taking into account a reverse split enacted last year to stave off delisting, Aurora's share count has ballooned from about 1.3 million shares in June 2014 to 198 million shares, as of mid-May. That sort of dilution is precisely why the company's shares are down nearly 95% since March 2019.
The salt in the wound is that Canada's legal weed sales have been hitting monthly records, all while Aurora's recreational pot revenue was more than halved in its fiscal third quarter.
Image source: Getty Images.
Sundial Growers
Yet another Canadian pot stock in the no-buy zone for Wall Street is small-cap Sundial Growers (NASDAQ: SNDL). Even though it's the fourth most-held stock on Robinhood, four of the six analysts covering the company rate it a sell.
Despite sitting on a boatload of cash, cash equivalents, and long-term investments (about $948 million), Sundial Growers has three factors working against it.
To begin with, Sundial's approach to raising capital has destroyed shareholder value. Initially, it looked as if management would sell enough common stock to simply pay off the company's outstanding debt. But in a nine-month stretch between Oct. 1, 2020 and June 30, 2021, Sundial's executives have unrelentingly issued stock to raise additional capital.
The end result is the issuance of roughly 1.5 billion shares of stock. With 2 billion shares now outstanding, Sundial has virtually no chance of ever generating meaningful earnings per share, and it'll likely struggle to remain listed on the Nasdaq exchange without a substantial reverse split.
Second, Sundial's management team hasn't laid out a concrete plan for its capital. While it did undertake a cash-and-stock deal to acquire Inner Spirit Holdings in July, and it's committed roughly $425 million to its joint venture with SAF Group, known as SunStream Bancorp, to invest in cannabis industry opportunities, the company has continued to raise cash with no stated purpose.
Third, Sundial has shifted its operating model away from wholesale cannabis to take advantage of the higher margins associated with the retail side of the equation. Unfortunately, having to start from scratch has led to significant year-over-year sales declines at a time when legal weed sales are rapidly growing.
In March I more or less referred to Sundial as the worst cannabis stock money could buy. That descriptor still holds true today.
Image source: Getty Images.
AMC Entertainment
But the most popular stock of all that's getting absolutely no love from Wall Street analysts and investment banks is movie theater chain AMC Entertainment (NYSE: AMC). The third most-held stock on Robinhood has nine analysts covering the company. Five of them have it rated a sell, with four others chiming in with a hold rating.
This rating distribution isn't a surprise given that Wall Street's consensus price target for AMC is $5.44. Shares of the company would need to fall 86% from where they closed last week to reach this consensus target.
The reason AMC's share price has rocketed higher in 2021 primarily has to do with retail investors piling into the stock and betting on a short squeeze -- i.e., a very short-term event whereby pessimists (short-sellers) run for the exit and buy shares to cover their positions. The issue for these optimists is that none of the data surrounding AMC is working in their favor.
For one, short squeezes typically require certain conditions be met, which simply aren't there at the moment. While the company's 18.8% short interest at the end of August is higher than most stocks, its large daily trading volume means it would take less than a day for all 95.94 million short shares to be covered. The liquidity of AMC's stock means short-sellers have no fear of being trapped in their position.
Fundamentally, the movie theater industry has been in a nearly two-decade decline. Tickets sold and inflation-adjusted gross at the box office have fallen 22% between 2002 and 2019, the last full year before the pandemic. Streaming offerings and substantially reduced film exclusivity (30 to 45 days now, compared to 75 to 90 days prior to the pandemic) bode poorly for the industry's future.
And then there's AMC's operating performance and liability-riddled balance sheet. Despite a record $2.023 billion in liquidity ($1.81 billion in cash), AMC burned through $576.5 million in cash in the first six months of 2021. Its lease liabilities are soaring, it owes $420 million in deferred rent, and it's lugging around nearly $5.5 billion in debt that it likely can't pay.
More than $1 billion in aggregate debt due in 2026 and 2027 is also valued at 70% to 74% of face value. Debt going for this much below par is a very real warning sign that bondholders believe a future default is possible.
Long story short, Wall Street has every reason to be skeptical of AMC.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 17, 2021
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. 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 One of the biggest buzzkills, according to Wall Street, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). With the company continuing to burn cash and the previous management team grossly overpaying for about a dozen acquisitions, it's regularly had to sell its common stock to raise capital to pay its bills and fund buyouts. The salt in the wound is that Canada's legal weed sales have been hitting monthly records, all while Aurora's recreational pot revenue was more than halved in its fiscal third quarter. | Aurora Cannabis One of the biggest buzzkills, according to Wall Street, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). Initially, it looked as if management would sell enough common stock to simply pay off the company's outstanding debt. AMC Entertainment But the most popular stock of all that's getting absolutely no love from Wall Street analysts and investment banks is movie theater chain AMC Entertainment (NYSE: AMC). | Aurora Cannabis One of the biggest buzzkills, according to Wall Street, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). Additionally, The Wall Street Journal noted some years back that Wall Street analysts are hesitant to issue sell ratings so as not to burn bridges for their clients or themselves with the companies they cover. Aurora, which at one time was the most-held stock on Robinhood, is being covered by 13 Wall Street institutions, seven of which rate the company the equivalent of a hold and six of which believe it's a sell. | Aurora Cannabis One of the biggest buzzkills, according to Wall Street, is Canadian marijuana stock Aurora Cannabis (NASDAQ: ACB). According to data from CNBC, over 90% of all S&P 500 stock ratings from Wall Street analysts were the equivalent of "buy" or "hold" between 1997 and 2017. While the company's 18.8% short interest at the end of August is higher than most stocks, its large daily trading volume means it would take less than a day for all 95.94 million short shares to be covered. |
36703.0 | 2021-09-28 00:00:00 UTC | Aurora Cannabis Inc. (ACB) Q4 2021 Earnings Call Transcript | ACB | https://www.nasdaq.com/articles/aurora-cannabis-inc.-acb-q4-2021-earnings-call-transcript-2021-09-28 | nan | nan | Image source: The Motley Fool.
Aurora Cannabis Inc. (NASDAQ: ACB)
Q4 2021 Earnings Call
Sep 27, 2021, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the Aurora Cannabis Inc. fourth-quarter 2021 results conference call. [Operator instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ananth Krishnan, vice president, corporate development and investor relations.
Please go ahead.
Ananth Krishnan -- Vice President, Corporate Development and Investor Relations
Thank you, John, and thank you all for joining us for Aurora Cannabis fourth-quarter fiscal 2021 conference call. This is being recorded today, Monday, September 27, 2021. With me today are Aurora's CEO, Miguel Martin; and CFO, Glen Ibbott. After the close of markets today, Aurora issued a news release announcing our financial results for the fiscal fourth quarter and fiscal-year 2021.
The release and the accompanying financial statements and MD&A will be available on our website or on our SEDAR and EDGAR profiles. In addition, you can find a supplemental information deck on our IR website. Listeners are reminded that certain matters discussed in today's conference call could constitute forward-looking statements that are subject to the risks and uncertainties related to Aurora's future financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 17, 2021
The risks to risk factors that may affect results are detailed in Aurora's annual information form and other periodic filings and registration statements. These documents may be accessed via the SEDAR and EDGAR databases. Since we're conducting today's call from respective remote locations, we may experience technical issues. We thank you in advance for your patience.
Following the prepared remarks by Miguel and Glen, we will conduct a question-and-answer session. [Operator instructions] For retail and institutional investors, we will review questions through the chat function of the webcast link. With that, I would like to turn the call over to Miguel. Please go ahead.
Miguel Martin -- Chief Executive Officer
Thank you, Ananth. We made significant strategic and financial progress during fiscal-year 2021. In fact, as of fiscal Q4, I can safely say we're in the best shape the company has ever been in. While there's certainly more work to do, Aurora is on the right course to build shareholder value, particularly from these levels.
Building value starts with profitability on an adjusted EBITDA basis. The entire team is focused on the separate and additional facility closures we announced last week is another proof point to show that these actions are well underway. Building on that, let me speak to a few more data points that underscore our progress into 2021 and how that sets the table for value creation in 2022. First, Aurora is and remains the No.
1 Canadian LP in global medical cannabis revenue, with margins over 60%. This is nearly double what we see in the adult rec segment. For that reason, we will happily continue to allocate resources to the Canadian, European, or Israeli medical markets, where our regulatory expertise, science, testing and compliance combined to create a portable and profitable model. The second lever we're pulling is expense reduction.
As you know, we're on track to deliver another $60 million to $80 million in incremental cost savings, and it's important to note that these savings won't affect any planned growth initiatives. These additional savings will also clear our path to being adjusted EBITDA positive by the first half of our next fiscal year, even if revenue was to remain constant with our fiscal 2021 fourth-quarter levels. That said, we do not expect revenue -- that said, we do expect revenue growth in 2022. Another value creation data point that complements our P&L is the balance sheet and a growing, dynamic and fragmented market, our regulatory expertise and No.
1 position in Canadian medical are further advantaged with a strong balance sheet. I'm pleased to say that we have vastly improved ours with approximately $400 million of cash as of Friday, no secured term debt, and access to $1 billion of capital under our shelf prospectus. We've also gotten better at managing our operating cash flow, reducing the need for incremental capital. We also expect to leverage our significant investments in R&D and monetize a world-leading science and innovation program.
The foundation of this is what we believe to be the world's largest dedicated cannabis breeding and genetics facility located in Comox, British Columbia. And lastly, we've strengthened our executive team by bringing in two highly skilled individuals in the areas of operations and HR, Alex Miller and Lori Schick, respectively. With that as a backdrop, I want to remind our listeners that Aurora is comprised of four distinct, yet complementary components. First, a No.
1 ranked Canadian medical business by revenue and the largest federally regulated medical market in the world. Second is our international medical business, which ranks as the second-largest Canadian LP by revenue. Net revenue from these two businesses increased 18% during fiscal 2021. Third is our science and innovation business unit.
We are monetizing our intellectual property in genetics and biosynthesis. And finally, fourth, our Canadian adult rec business, where we've already made progress, although challenges remain. Let's take a deeper dive on medical cannabis as it really serves as a solid foundation for our future. Domestically, we represent about a fifth of the Canadian medical market, but only about 1% of the population are currently medical cannabis patients.
While our market share is roughly double of our next closest peer, the top five LPs within the Canadian medical channel represent less than 40% of the market. This gap represents Aurora's opportunity to expand our presence, and we have done so through significant investment to help doctors and patients fully appreciate the benefits of medical cannabis. That outreach includes education. Aurora's investments in sophisticated technology, coupled with unparalleled professional counseling and guidance in navigating medical cannabis alternative treatments, have enabled us to provide an end-to-end patient experience for a growing clientele of recurring Canadian patients.
About 80% of our Canadian medical cannabis net revenue is constituted by cannabis insured and/or subsidized patient groups, which sets up the medical channels a very solid core revenue growth. Also our infrastructure to support a direct-to-patient distribution model, which begins with patient clearing and then transitions to onboarding, medical consultation, and finally prescription fulfillment across a variety of price points, all being a key factor of our success. To improve our Canadian medical business further, we are now leveraging technology in our patient intake and user experience to lower wait times, raise service levels and increase product choices. This is a key driver of margin.
In its totality, our market position in Canadian medical, our innovation, and tactical execution have created a tangible barrier to entry, which is good news for shareholders as we grow other parts of the business. In terms of international medical, we're leveraging core capabilities from Canada as new countries look at launching medical cannabis. This is a distinct advantage over our peers, creating a deep moat around our business. A data point here is our leading position in Germany in dry flower with a growing share of the oil market there.
In France, Aurora and Ethypharm were selected in October of 2020 by the National Agency for the Safety of Medicines and Health Products to supply the entire medical cannabis pilot program with dry flower. We won three of the nine tender lots, which included all available dry flower lots and just delivered our first shipment in August. In Israel, we delivered an $8 million cannabis shipment in July as part of our supply agreement with Cantek. We believe this is the largest single shipment of cannabis that Israel has received.
Speaking of Israel, we are excited to announce an extended supply agreement with Cantek, under which we just received appeal for a further $9 million shipment, which we expect to deliver in fiscal Q2. Our compliant expertise was responsible for the extension, all good news. Of course, our expertise in medical cannabis and ability to operate within a highly regulated framework gives us a great opportunity to expand in the global adult rec. History demonstrates that medical regimes eventually evolve to adult rec as companies like Aurora that have a proven ability to operate in federal regulated systems will have an advantage when new markets open up.
Let's pivot to Canadian adult rec. Those who follow the market are well aware of industrywide challenges, but I'll bring up two points. First, while fixing this segment will clearly take longer than expected, we did grow 8% sequentially compared to fiscal Q3 and are seeing early signs that our focus on higher quality, higher potency, higher-margin products is beginning to pay dividends. Specifically, our sales mix was positively impacted by a growth of about 400 basis points in same ramp, offset by a modest decline in Daily Special.
The growth in San Raf represents over 20% increase in dollar terms. We believe this momentum should continue with additional premium product introductions and a focus on innovation throughout all categories. Second, we believe the adult rec segment is in the process of bottoming out and is now poised to rebound given the new store openings and rising consumer demand. The dried flower rec category in Canada is a tale of two markets.
First, the high-margin premium dried flower category where margins are 50% or higher; and second, the discount flower category, where many SKUs are breakeven or even negative margin. Our strategy centers on our premium category. We are not going to be chasing unprofitable market share. We're going to be chasing profit pool dollars.
Furthermore, our focus on product innovation and manufacturing excellence is squarely aligned with the expectation of our retail partners. So there's segment discussion out of the way. Let me pivot to our P&L, and our primary goal of adjusted EBITDA profitability. Aurora has identified cash savings in the midpoint of our previous guidance of $60 million to $80 million.
We plan to deliver $30 million to $40 million of those savings within the next 12 months and the remainder within 15 months. We expect approximately 60% of the savings will come from asset consolidation, operational and supply chain efficiencies. For example, last week, we announced internally a plan to centralize much of our Canadian production at our River facility in Bradford, Ontario, and the resulting closure of our Polaris facility. We expect the remaining 40% of savings to be sourced through SG&A.
And keep in mind that these efficiencies are incremental to the approximately $300 million of total cost reductions achieved since February of 2020. Again, expense reductions, margin improvements, and sustainable cash flow generation won't inhibit our growth plans. To be clear, to reach adjusted EBITDA profitability by the first half of the next fiscal year, we do not expect to any revenue growth in the Q4 2021 levels. But I hope you can tell, we are positioned for top-line growth in 2022 and with that, adjusted EBITDA profitability should follow.
With that, I will turn the call over to Glen.
Glen Ibbott -- Chief Financial Officer
Thanks, Miguel, and good afternoon, everyone. I appreciate you joining us today and your patience with our slight delay in getting earnings out as we finished up the last bits of our audit. Before I get to our Q4 results, I'd like to take a moment to review the success of our business transformation program over the past year. As Miguel referenced, our financial fundamentals are in better shape now than they have been for several years.
Our balance sheet, after having paid off the $90 million secured term debt in June and having invested approximately $30 million into our new insurance structure in September, still sits at around $400 million of cash as of Friday. That is excellent considering we started Q4 of $520 million and paid out $120 million in debt reduction and investment. And the debt and insurance actions will save us almost $35 million in annual cash flow. Our core medical businesses continued to deliver overall growth and enviable margins that generally sits at 60% or better, with the result in gross profit dollars being an absolutely critical driver of our path to positive EBITDA.
And of course, our SG&A and capex are a fraction of what they used to be, which is clearly good news for our investors. So now to Q4 results, which I believe demonstrated the importance of Aurora's diversified business in both consumer and medical markets across 12 countries. Overall, Q4 net cannabis revenue before provisions was $55.7 million. Our medical cannabis segment continues to excel, generating $35 million in sales and a gross margin of 68%.
This represents about 63% of our Q4 revenue and almost 80% of our gross profit. Our consumer cannabis business delivered $20.2 million, excluding provisions and a gross margin of 31%. So overall, Q4's gross margin was 54%, with just north of $30 million of gross profit. This makes Aurora one of the leading, if not the best, gross profit generators in the Canadian cannabis industry.
SG&A remains well-controlled, resulting in an improvement in adjusted EBITDA, excluding restructuring. While still negative of $13.9 million, it is heading in the right direction. Now a bit more detail on each of our business segments. Our Canadian medical revenue was $26.4 million in Q4, essentially flat quarter over quarter despite the impact of competition from continued store openings in the consumer market.
Our Canadian medical patients can be segmented into two groups: those with cost reimbursement coverage and those without the reimbursement program. Our success is really driven by our high-value insured patient groups whose reimbursement makes some recurring buyers. And this is why we have made patient groups with reimbursement coverage, a high focused priority in our medical business. That said, we may see some migration of price-sensitive non-reimbursement patients from the medical channel to the adult rec channel as that market continues to develop over time.
Our international medical revenue was $8.6 million, down slightly quarter over quarter, but up 88% versus a year ago. In Q4, this business delivered a 72% margin, beating our mid-60s expectations. This exceptional result was driven mainly by country mix. Our Q4 international margin also benefited from the transfer of almost all of our European supply to our Nordic facility in Denmark.
And while there were no sales to Israel in Q4, as Miguel noted, we did deliver approximately 8 million of medical cannabis to Israel in early July and have a further $9 million shipment plan for next month. BDS Analytics estimates a market size of about $3.2 billion by 2025 for just Germany, Poland, U.K., France and Israel. With that context, this is clear why international medical is worthy of our focus and investment and why our leadership internationally is an important driver of long-term shareholder value. Our Q4 consumer revenue of about $20 million, including provisions, was an increase of 8% compared to Q3.
We are seeing signs of our shift to the higher-margin core and premium segments that will underpin our future success in this market. Miguel noted, Q4 saw a step forward for San Rafael '71 brand, and this contributed to an increase in our average net selling price per gram of dried cannabis. Now for SG&A, which includes R&D. It remains well controlled coming in at $44.8 million in Q4, excluding restructuring, a 30% decrease compared to last year.
And while we have made a lot of progress in driving down SG&A over the past 12 months, as Miguel stated earlier, we are implementing further measures to take out costs that should get us well below a $40 million quarterly run rate at the time we exit the fiscal year. So pulling all of this together, we generated an adjusted EBITDA loss in Q4 2021 of $13.9 million, excluding restructuring one-time costs. This represents about an $18 million improvement year over year and a $2.6 million improvement from the prior quarter. To help investors think about our path to EBITDA profitability, I'll provide some thoughts on how the cost reduction plans that Miguel described will flow through the P&L.
Approximately 60% of cash savings are expected to be realized in cost of goods as inventory has drawn down. This should occur over several quarters as our lower production cost structure shows up in finished goods. We expect the remaining 40% of cash savings to show up in SG&A. These savings will be seen as they are executed, beginning with Q2 of this fiscal year.
I noted earlier that we are financially stronger today than we have been for several years, particularly with respect to our materially improved balance sheet and financial firepower. We started Q4 with $520 million of cash. During the quarter, we paid out our term debt facility using almost $90 million to do so. This frees us from restricted debt covenants and results in principal and interest savings of approximately $6 million per quarter, which moves us further toward positive free cash flow in the coming quarters.
Despite paying off our term debt, we still ended the quarter with $440 million of cash. Additionally, we have the USD1 billion shelf prospectus, including the full amount of the USD300 million at the market facility still available. These are available as financial firepower as we prepare for strategic and creative opportunities. So to wrap up, what I hope you take away from our Q4 financial results is the following.
Aurora has a clear path forward to being adjusted EBITDA positive by the first half of our next fiscal year through actions that we control. And we have significantly strengthened our balance sheet with more cash and working capital and having eliminated secured term debt. Now, I'll turn the call back to Miguel.
Miguel Martin -- Chief Executive Officer
Thanks, Glen. Before we go to Q&A, I want to talk briefly about our science and innovation business group, which we feel is a real differentiator. We launched this group last May with the goal of commercializing patented and patent-pending technology, which we believe will be key to developing cannabinoid production in biosynthesis and the plan itself. Through licensing agreements, Aurora and 22nd Century Group share the global IP rights that are key in commercializing key aspects of cannabinoid production and biosynthesis and plants.
We believe the long-term market for cannabinoid molecules, produced biosynthesis where the plant will be incredibly profitable, and we have seenglobal marketsize estimates of $10 billion by 2025. As I said, this is a long-term effort, but one that we believe will ultimately allow companies to bring a wide array of new-generation products to the market. When someone else is using the technologies and infringing our rights, we expect to be compensated, either willingly or through legal action. In addition to IP, our industry-leading genetics and breeding program is positioning Aurora to win in the flower and concentrate consumer categories.
This program is expected to not only drive more revenue by injecting rotation and variety into our product pipeline, but also greatly improve the efficiencies of cultivation through higher-yielding plants, higher cannabinoids, and better disease resistance. Our team has been able to screen over 7,000 unique cultivars in 2021 alone. In August and September of 2021, Aurora launched the first three new proprietary cannabis cultivars in our San Raf brand, all of which have distinct terpene profiles and high THC potency. We are already seeing the results through nearly $1 million in sales since their launch.
The genetics and breeding program, which is an asset-light business model, is always expected to generate high-margin revenue through license agreements. So to wrap up our call today, I'd like you to take away the following. First, we are the No. 1 Canadian LP in the global medical business by revenue, which is a huge and growing total addressable market.
Second, the expertise here will transfer to adult rec as medical-only jurisdictions continue to open up. Aurora will be the partner of choice. Third, despite cost savings that will get us to profitability, we are still developing proprietary and protected premium product that is being sold and licensed. Innovation will be the lifeblood of success in this industry, and positive cash flow and a strong balance sheet will be required.
Not all of our competitors have this, but Aurora does. Lastly, Canadian rec will come back. That time line won't impede our strategic or financial progress. Aurora has shown an incredible agility over the last two years.
The final leg of our transformation is well underway and with the unique attributes that we bring to this dynamic opportunity, I've never been more confident in where the company is as we head into fiscal 2022. We look forward to sharing further progress on upcoming calls, and that concludes our prepared remarks. Before moving to analyst questions, I will answer a few questions from our retail shareholders who are invited to submit questions ahead of today's call.
Ananth Krishnan -- Vice President, Corporate Development and Investor Relations
Thanks, Miguel. Prior to analyst questions, we will be addressing three questions from our retail shareholders. So, Miguel, the first question is, when will you be EBITDA positive? And why should investors now believe that the time is right to be EBITDA positive they've been waiting for profitability?
Miguel Martin -- Chief Executive Officer
And first and foremost, I can absolutely sympathize with the frustration around past milestones not being achieved. But there's a big difference between what we're seeing now and what we said then. Those forecasts were based on assumptions of revenue growth, and that's not what we're seeing here now. We've initiated aggressive cost-saving measures and then when fully implemented, we expect we'll get us to EBITDA profitability.
None of our core businesses need to grow revenue or increase their margin from the Q4. I think it's also important to understand that we do have a history of delivering on our transformation plans. We've got SG&A from over 100 million a quarter to the low 40s. We've aligned production to sales.
We reduced complexity in our network and sold a number of facilities. We've significantly cut capex and improved working capital. And also, we have a completely new team that is executing this plan. I mentioned Lori Schick and Alex Miller, but we have an incredible new talent up and down throughout the company.
So as I mentioned, we are relying on revenue growth to get us there. And -- but we still expect to be able to deliver it. So I think that's the [Inaudible] confidence in this versus what's been said in the past.
Ananth Krishnan -- Vice President, Corporate Development and Investor Relations
Great. Thank you, Miguel. So our next question is, should we expect to see any acquisitions anytime soon given where the market is today and the recent consolidation seen in the cannabis sector?
Miguel Martin -- Chief Executive Officer
Ananth, we're going to be really consistent on this point. Our primary objective is to be EBITDA positive and nothing is going to take our attention away from this objective. So I know there are some people that want us to be bigger and to chase market share, but we're not going to do a deal that sacrifices profitability in order to be a bigger, less profitable cannabis company. So there's been criticism in the past about the way the company has handled this space, and we're going to take a diligent and patient approach to M&A.
I think if you look at what's happened in the environment recently, I think being patient and diligence is absolutely the right path. So we're going to continue to look. And if there's something that makes sense that has a strong strategic rationale and that can bolster our ability to make money, we have the balance sheet and we have the ability to do it. But we're not going to risk shareholder capital without a strong business case.
Ananth Krishnan -- Vice President, Corporate Development and Investor Relations
OK. Great. And one last question from our retail shareholder base, Miguel, before we kick it over to the analysts. We've seen many of your Canadian LP competitors structure deals to enter the U.S.
THC market when it becomes federally legal. Why has Aurora been slow in addressing this key growth market?
Miguel Martin -- Chief Executive Officer
Well, first and foremost, I would say we haven't been slow. We've been saying for a long time that the U.S. is going to take longer. Many of our peers thought it was going to happen faster, and these investments would make more sense.
I think investors don't want a company to make a structured deal that may or may not transition into a profitable situation. That doesn't mean we're not looking at the U.S., but a couple of things there. First is -- and I'll keep saying it, our goal is to be a bit profitable. That is the unique position, the No.
1 Canadian LP in terms of medical, the No. 1 global company in terms of all the things I've mentioned and profitability. That's our goal. And so flushing that all down the drain to chase something in the U.S., I don't think, is important.
Secondly, we just had a big election in Germany. And it's a big world out there, and I understand the interest in the U.S. And I've got a tremendous amount of respect for the MSOs and my Canadian LP peers. But if you look at Germany, if you look at Israel, if you look at France, you look at these markets, there is a lot of money to be made, and we're doing that.
And we're doing, I think, an exceptional job of that. What the learnings are in those markets absolutely are applicable to the U.S., and we continue to believe that the path toward the U.S. will be through medical, will be through federal legalization and decriminalization. And clearly, if you look at the capabilities of Aurora, both in Canada and around the world, we will have a lot of options when the U.S.
does open up.
Ananth Krishnan -- Vice President, Corporate Development and Investor Relations
That's great. So at this time, John, I'd like to turn it back over to you to open up the queue for analyst questions.
Questions & Answers:
Operator
Thank you. [Operator instructions] Our first question comes from the line of Vivien Azer with Cowen & Co. You may proceed with your question.
Vivien Azer -- Cowen and Company -- Analyst
Hi. Thank you. Good afternoon. Miguel and Glen, I was hoping to dig in, please, on the consumer cannabis segment.
I would like to hear how the quarter settled out relative to you're going in expectations and if there are any key call-outs in terms of form factor or price point drivers as it relates to the 8% sequential revenue growth? Thank you.
Miguel Martin -- Chief Executive Officer
Yeah. Good afternoon, Viv. So let me kick it off, and then I'll share it to Glen. I made the comment that it's a tale of two cities.
If you look at the margins of discount flower, in many cases, a better breakeven in some cases in certain big provinces, they're negative. And so that's just -- as this whole thing shakes out, chasing that and chasing overall market share at the cost of profitability really is not our strategy. That's not to say it may not benefit others. Where we're going is the higher-margin premium flower and the higher-margin concentrate.
That's a place where consistently, we're seeing almost 2x margins. And if you look at that coupled with a rec business because, again, if you can use the same products in both rec and medical, there are efficiencies, and we've seen a big uptick in patients looking for premium products. I think there's a lot of value there. So it's going to take a bit longer, but I think in order for that discount flower business to shake out as people try to compete on price and it will.
I mean, there's no way that's sustainable long term. At that point, we've got some great brands, and we've got some great capabilities. But at this juncture, we're going to focus on making money. Glen?
Glen Ibbott -- Chief Financial Officer
Thanks. Yeah. We are starting to see -- I mentioned in my remarks, I know Miguel echoed this. We are starting to see some of the data that shows us that we are seeing that shift, for instance, our San Raf or even just during the summer, has been picking up.
I think in Quebec, we picked up at least 1% or better market share. And I know it doesn't always show up in the data, like the headset data and things like that. Quebec, I don't think you get good info, but our average selling price in Quebec is 80% higher than Ontario because of the shift into San Raf, we've always done well there. So we are seeing it.
I think it will take a little bit. You certainly didn't see it in Q4 as much in terms of the revenue. But there's a lot of stuff happening under the covers there where we see our core and premium brands picking up and certainly, innovation that we launched in -- during the summer and is coming up as well. We have strong expectations for, but to Miguel's point, we would also see some revenue fall off as we exit unprofitable segments.
And I'm confident, I mean, at the gross profit level. So that's the kind of what's happening there. But we're seeing the data. We're seeing some of the traction, but I think it will be reflected in our financials over the next several quarters.
Vivien Azer -- Cowen and Company -- Analyst
OK. So -- and I don't have any follow-up. So just to clarify, relative to your expectations, maybe just on the premium side, was the premium side of your business on consumer cannabis in line with expectations?
Miguel Martin -- Chief Executive Officer
Yes, Viv. I'll take that. Listen, I'm never satisfied. Innovation accounts for the vast majority of products.
I mean if you look at the data, and I know you know this better than anybody, the majority of products that's sold in the last 30 to 60 days didn't exist more than 12 months ago. So our full-year '22 innovation calendar includes 80 new SKUs versus 85 we put in the market. So would I like to see more progress in San Raf? And I would say, they're absolutely. Am I confident that we have the right plans in place and the right amount of infrastructure to meet what we need to do? I do.
And so I think that's a long-winded way to say, we're pleased with where we're at, but we could always be hungrier to push faster.
Vivien Azer -- Cowen and Company -- Analyst
Of course. Thank you.
Miguel Martin -- Chief Executive Officer
Thank you.
Operator
Our next question comes from the line of Pablo Zuanic with Cantor Fitzgerald. You may proceed with your question.
Matthew Baker -- Cantor Fitzgerald -- Analyst
Good afternoon. This is Matthew Baker on behalf of Pablo. We have two questions today. So firstly, can you discuss which of your cultivation facilities are currently operational? And in the case of Aurora Sky, how many rooms are currently operational?
Miguel Martin -- Chief Executive Officer
Matthew, we've made the announcement post rationalization that we're going to have -- I'll talk about Sky in a second. We have Sky. We have Whistler. We have River, and we have Ridge, and then we have the Nordic facility in Europe.
That is an incredibly strong, not only portfolio of manufacturing centers of excellence. Right now, as we've talked about, Sky is operating at about 25%. There's a lot of good work. It is one of the largest facilities in Canada that carries a CUMCS certification, which is quite a challenge and is a requirement for Israeli shipments.
And so listen, we have plenty of capacity if we needed it, but we have also the flexibility with those facilities to be able to rightsize them as we need to be. Glen, anything you want to add to that?
Glen Ibbott -- Chief Financial Officer
Just the second part of your question on Sky. It isn't a matter of room. We're actually using most of the rooms. We've just changed some of the cultivation habits that we've got in there to produce a higher quality plan.
So we're -- as Miguel said, we're operating at 25%, but we have plenty flex capacity to service Israel, other export markets or any other growth needs that we have. So we feel quite confident. I will add, we've also got our outdoor facility, which is called Valley. We saw commercial sales out of Valley last year, and we're just taking down the harvest a couple of weeks ago from the first set of -- the first harvest is another one yet to come in the fall.
And we expect that we would see commercial or consumer grade to cannabis coming out of that facility as well. So that's a real win for us.
Matthew Baker -- Cantor Fitzgerald -- Analyst
All right. Thank you for that. For our second question, we wanted to know how you guys feel about the outlook for your export business and if it's reasonable to assume that this revenue flow could double in full-year 2022 compared to full-year 2021?
Miguel Martin -- Chief Executive Officer
Let me judge a little bit about Israel, and then I'll kick it to Glen who can talk about the aggregate. Israel is a very challenging marketplace. The IMCA, which is the regulatory authority in Israel. It's one of the strictest in the world.
We have a wonderful relationship with the lead regulator there, [Inaudible]. And he is quite a leading regulatory figure around the world. They've really taken a hard stance in terms of what it takes. It's beyond CUMCS.
It's a variety of different pesticides they look for. So we're not giving guidance on Israel because it continues to move around. We feel really confident that as long as the border is open for imports, we'll continue to be almost unique in our ability to navigate that with high-quality, highly regulated, and compliant cannabis products. And for a country of 9 million people with over almost 100,000 patients, I think we've done an excellent job, which really sets us up well for new markets coming on.
I mentioned in my prepared remarks about Germany, we're thrilled with that election. And having the No. 1 flower business with also a very challenging regulatory environment sets us up well for that market. Glen?
Glen Ibbott -- Chief Financial Officer
Yeah. I'll add. Europe for us, and this is important, though. We're operating 12 countries.
We're actually selling and seeing strong growth in a number of really important countries for us, the U.K., Poland, of course, Germany. So when we project over the next year, and we're not guiding on this, but our opportunity for growth is certainly the German market, but it sees other markets as well. I mentioned some sizing from BDS and where they expect certain European markets to be by 2025. And that's just as a reminder, that those are sizable markets, well worth our investment.
Love that we are leaders in Europe about $3.5 billion market in just those countries I mentioned by 2025, gives us tons of room for growth. And our team there has continued to deliver for quarter after quarter through a number of years now. So I have a great deal of confidence in our international medical business.
Matthew Baker -- Cantor Fitzgerald -- Analyst
Thank you, guys.
Miguel Martin -- Chief Executive Officer
Thank you.
Operator
[Operator instructions] Our next question comes from Michael Lavery with Piper Sandler. You may proceed with your question.
Michael Lavery -- Piper Sandler -- Analyst
Thank you. Good afternoon.
Miguel Martin -- Chief Executive Officer
Good afternoon, Michael.
Michael Lavery -- Piper Sandler -- Analyst
You touched on the IP that you have just before the Q&A and some of the royalty opportunities or ways to monetize that. Can you give us a sense of timing or what we might be able to expect there in terms of how that could unfold?
Miguel Martin -- Chief Executive Officer
Yes. It's a great question. So the company had spent a lot of money on this previously, and these assets came out of the Anandia acquisition. And as we mentioned, we partnered with 22nd Century, a company that we all know well.
Right now, we're sort of in the early stages of it. All indications are, though, that the biosynthesis and the IP around those pathways are some of the more important ones for the cannabinoid molecules. We know some of our peers are doing good work in that space. We also know that in other categories, it's a significant piece of business, particularly for those companies that don't want to be vertically integrated.
So, Michael, I think we're probably -- you'll start to see us defend IP, which we've started to do, you'll start to see us talk a little bit more specifically about it. We're excited on the Analyst Day to share with you some of the new talent that we brought into that space, both on the science side as well as on the business development side. And I think with that, you'll have a better sense on the timing and scope of it. Clearly, if you look at almost any other category, that is evolving like this.
There's a significant amount of IP. I would also say that the legal construct to defend it is quite strong. I mean this is not pie in the sky that the companies are going to be able to defend this type of IP. Obviously, the U.S.
is stronger than some other markets. But globally, there is a very consistent and well-tread pathway for companies to defend their pathway. It's some biosynthesis and a variety of things. So we're excited about that.
Michael Lavery -- Piper Sandler -- Analyst
OK. Great. Thanks so much.
Miguel Martin -- Chief Executive Officer
You're very welcome.
Operator
Our next question comes from Andrew Carter with Stifel. You may proceed with your question.
Andrew Carter -- Stifel Financial Corp. -- Analyst
Hey. Thanks. Good evening. I know you've mentioned the kind of stores opening, but I guess what we're seeing right now from stores is Canada is beyond saturation and stores aren't getting into some areas where it needs to.
The other thing we're seeing is kind of the retail inventory levels are pretty high relative to where they started the year. So could you just kind of help us understand how your portfolio is positioned kind of to grow with the market? I mean, we're at the end of this quarter. So should we see another sequential increase, taking a lot of heavy lifting, cleaning up the portfolio? Just help us with that. Thanks.
Miguel Martin -- Chief Executive Officer
Be happy to, and it's a great question. First and foremost, the retail environment, and this is no disrespect, anybody that's connected to it is unlike any other regulated product you've ever seen, out of stocks, marketing principles, the inability to have merchandising programs because of the inducement provisions. The differences between province to province, the low penetration of chains, there's some very good ones, but the overall store count and then to your point, things coming online and saturation. And so, I think we're in the early days, Andrew, of a real optimized retail environment.
The provincial buyers and decision-makers are also catching up to -- as we come out of COVID. And when you see out of stocks from primary brands in 30%, 40% at the time and when you see the No. 1 SKU in Canada, only being in about two-thirds of the stores, you see a lot of opportunity for execution. So you asked two -- you asked one question and I'll tack on a statement to it.
How do we see our portfolio? We feel really good about our portfolio because we're now putting out high potency, high turf products, both for us and for some of our partners. I know you're aware of North 40 and the great work they've done. They use some of our genetics with a product called Farm Gas. That got almost a 30 potency.
And so, that's a big win. Secondly, we are partnered up with what I would say is probably the best-brokered network in Canada through GND, a division of Southern Glazer, where we're able to make three times the number of calls we made previously and really develop and lever their excellence around that. And so, I'm bullish on our category in the prime areas. I will say, though, we're not going to chase market share.
If a company right now wants to be top five, they'd have to have a significant piece of discount flower, and it's just not a priority for us. I also don't think it's a priority for our retail partners who are looking to hold on a margin and to sell products that move off the shelves. So we're going to be consistent in that. We're going to make money.
And I think the market will normalize. And we've seen our competitors also sort of pivot to a less race to the bottom on price and try to focus on some margin accretion.
Andrew Carter -- Stifel Financial Corp. -- Analyst
Thanks. I'll pass it on.
Miguel Martin -- Chief Executive Officer
You're very welcome. Appreciate it.
Operator
Our next question comes from Heather Balsky with Bank of America. You may proceed with your question.
Heather Balsky -- Bank of America Merrill Lynch -- Analyst
Hi. Thanks. This is Heather Balsky. So I'm just curious, putting some of the comments together that you've made with regards to consumers' demand for value versus premium.
And I think you mentioned that it's taking a bit longer than you originally expected. I'm just curious, what you're seeing in terms of now that markets are starting to open up, people are going into the stores more. Are you seeing changing trends? Any interest from the consumer. We've heard that there's been a fair amount of turnover in the budtender -- I guess, in budtenders in general, just how that's impacting demand for value versus premium? Just anything you're seeing as markets are opening up?
Miguel Martin -- Chief Executive Officer
Sure. I'd be happy to, Heather. So I think it's a couple of things. One is everybody is trying to figure out what the new normal looks like.
And the reality is, particularly on a 28-gram discount flower, it's a challenge to make money on that format. We also see similar to what you see in Colorado and California, that over time, there is absolutely a strong group of consumers that will pay more for premium. This is not going to be the one regulated category where all that is sold as discount and this deal aligned from one of my peers. This isn't going to be like everyone just goes and buys moonshine in the alcohol business.
Johnnie Walker, Tito's, they're valuable brands. Is it taking a bit longer? Yes. Now you bring up a really interesting point about the budtender. And I think to be fair about the environment.
When you have an environment where there's massive out of stocks, when you have an environment where you can't have formalized merchandising programs, and you have a market where each of the manufacturers are trying to figure out exactly what is their specific approach and with half the sales -- 60% of sales being something that didn't exist a year ago, the budtenders hold an incredibly powerful hold over the consumers and what they are. Many of the companies like us are starting to develop educational tools from a category standpoint, not just in the self-serving way. And I know the chains are also trying to bring category management principles to it. So I think you're going to see an evolution of it, particularly as we get into concentrates in Gen 2 and Gen 3 products that take a little more explanation.
And clearly, like I keep saying, this is not going to be the one geography in the world and the one category where there's not premium products sold for a premium margin.
Heather Balsky -- Bank of America Merrill Lynch -- Analyst
All right. Thank you.
Miguel Martin -- Chief Executive Officer
You're very welcome, Heather.
Operator
Our next question comes from John Zamparo with CIBC. You may proceed with your question.
John Zamparo -- CIBC -- Analyst
Thanks. Good afternoon. I wanted to follow up on a comment you'd made, Glen. Really just trying to reconcile what we're seeing from data providers at the retail level with the commentary about San Raf improving and just a modest decline in Daily Special? And what have you seen in F Q1 to date that gives you the confidence that you are turning around in terms of the consumer market?
Glen Ibbott -- Chief Financial Officer
Let me start, and then Miguel will add I'm sure. I just -- I think I wanted to make the point that most data that is out there doesn't -- because Quebec owns the retail distribution, you don't necessarily get direct data from them in these data sources. They sometimes extrapolate from the rest of Canada or France. So that's always been a strong market for us, particularly for San Raf.
In fact, most quarters, we sell more flower in Quebec than we do in Ontario. And I made the point that if we're selling the higher-margin stock like at the San Raf flower, you have an ASP of 80% -- over 80% greater in Quebec than Ontario. So I think that was the only point. It just -- I know we've asked you to look at the data, but the data is still evolving as well, right? So it's relatively new.
And there are challenges, I think, in interpreting that. I'm not trying to overplay this, but it's just one of our more important markets that's not necessarily reflected ultimately. But we have seen -- Miguel talked about innovation being incredibly important. I think we've finally got our pipeline plugged in really well and introduction of these three new cultivars under San Raf launched in Quebec in August and in Ontario line and a few other provinces in September.
We're seeing a really nice reaction to this stuff that's unique, unique terpene profile, mid-20s for several of them in terms of THC potency and then, Farm Gas through North 40 partnership with a couple of batches that are hitting up at 30%, incredible terpene profile. So we've got the science and the genetics side plugged in nicely to kind of drive that innovation and quite an innovation launch plan over the next number of quarters. So that's really where we see that sort of continued shift, I think, into the shift into the premium side of the market. Miguel?
Miguel Martin -- Chief Executive Officer
Yes. I mean, I guess, the only data point I'd mention is when you look at competitors, when you put out a high-quality product, whether it's new or whether it's an extension, and what do I mean by that? North of 22 potency in a format that's interesting, potentially high turf levels, it almost uniquely does well. And so, it's not a secret recipe in terms of what is required here in order to meet the consumer needs. Clearly, someone who's played a lot with market shares in the premium category, it's not where I'd want it to be.
But I think to Glen's point, if you look what we were able to do and get over $1 million in revenue out of three brand new FKUs in a couple of core provinces, I think we're on the right track, and we'll keep pushing on that.
Operator
Thank you. Our next question comes from Frederico Gomes with ATB Capital Markets. You may proceed with your question.
Frederico Gomes -- ATB Capital Markets -- Analyst
Hi. Good afternoon, guys. Thanks for taking my question. I just wanted to touch on your CBD segment.
I know you guys had an impairment there. But can you provide an update on Reliva and the strategy for that segment? Do you guys plan to grow that business or invest any money? Or is this not a priority right now? Thanks.
Miguel Martin -- Chief Executive Officer
It's a great question. Today, we launched a secondary line called KG7, that's got more of a sports orientation to it and absolutely has a better price point on gummies, which is the largest segment. We continue to have, if not the largest, one of the largest amount of store distribution in the U.S. And while we are a bit frustrated with the progress that we see at the federal level, we did see what may be the most important state that has lapped California passed an important piece of legislation that will allow CBD to be sold there.
So I continue to think that our positioning of the brands of choice for mass retail throughout the country and the responsible and compliant way will play dividends for us. I would also mention it's such a highly variable model that you're just not seeing losses like you see from some of our competitors in that space. So it's a one real piece of optionality. We're also starting to see some international markets be interested in what continues to be the #1 Nielsen ranked brand in CBD, and that would be additive to the overall financials.
Frederico Gomes -- ATB Capital Markets -- Analyst
Thank you. Appreciate that.
Miguel Martin -- Chief Executive Officer
You're very welcome.
Operator
Our next question comes from Tamy Chen with BMO Capital Markets. You may proceed with your question.
Tamy Chen -- BMO Capital Markets -- Analyst
Hi. Good evening. Thanks for the question. I just wanted to ask, what's the plan for Sky? And you mentioned it's still operating at 25% capacity.
I would assume that's not the level of capacity you'd like it to be running at for the status quo in going forward. So what's the plan with that facility? And can you just confirm with respect to your San Raf sell in? Is that all coming from internal sourcing? Or do you procure from third parties for some of that? Thank you.
Miguel Martin -- Chief Executive Officer
Great. So Sky, as I mentioned, we have about 25% of the capacity online. But when you have margins in the Israeli business and the international business, it very quickly is an additive piece. As that -- those businesses come more online and the difficulties in getting CUMCS certification, Sky is really important.
Also, we're seeing some of those new cultivars, I just mentioned, now being grown at Sky and seeing a real progress in terms of the overall potency. That's a nice to have. And if we can get there with the cost structure of Sky will be totally additive. So we like what we've done there.
It gives us, I think, the best of both worlds in that facility, and we'll sort of see where it goes. Glen, do you want to take the second part?
Glen Ibbott -- Chief Financial Officer
I mean, Sky operating at current levels with the type of business that we're driving out of there is actually quite a nice cash flow generator. So that I don't get thrown off at the 25% because that's not a kind of a low-margin facility anymore. It's delivering the stuff that brings higher margins with us, which was really an important part of the repositioning and the improvement in the quality of potency coming out of that facility. And sorry, your second piece of your question?
Tamy Chen -- BMO Capital Markets -- Analyst
I just wanted to ask if for your San Raf supply, if that's all coming from internally produced product? Or do you wholesale some of it?
Glen Ibbott -- Chief Financial Officer
I would say acquire. We've acquired a couple of small batches from some craft growers that are launched under our Grower's Stash brand, but San Raf itself, the three cultivars, that's all being driven out of our new genetics out of our coast facility that genetics coming at the coast.
Tamy Chen -- BMO Capital Markets -- Analyst
Thank you.
Glen Ibbott -- Chief Financial Officer
Yeah.
Operator
Our next question comes from Doug Miehm with RBC Capital Markets. You may proceed with your question.
Doug Miehm -- RBC Capital Markets -- Analyst
Yes. Good afternoon. The question just has to do with the craft growers and what you see in the Canadian marketplace. We know that earlier in the year, they did quite well.
They were taking market share from the larger LPs. And I'm just wondering if you're seeing that being sustained? Or do you see yourselves and maybe some of the other larger competitors taking that share back from the craft growers?
Miguel Martin -- Chief Executive Officer
Yes. Doug, it's a great question. Listen, I think there's always going to be a place in the super premium segment, albeit not a lot of volume for a very craft regional grower, similar to what you might see in microbeer or see in the spirits business. I would say that the large LPs and Aurora really leading the way, have up their game in terms of delivering what the consumer wants.
I think you're going to start to see, like we saw with San Raf, the advantages of a large LP, whether that's listings, whether that's retail execution, whether that's innovation, whether that's science are going to come to bear. It's not -- I keep going back to this. It's just not going to be the one category where the large LPs -- the top seven only represent 35%, 40% of the business. It might take a little bit longer than we all like, but there are inherent advantages that we all, and I think particularly Aurora has that will allow us to grow profitable market share.
Now like I said, if someone wants to chase a bunch of discount flower and get 300 basis points, 400 basis points, 500 basis points and lose money, particularly on a 28 gram, they can have it. But I think in that core, in that premium space, you're going to see companies like Aurora do very well, particularly as the consumers start to expect more and get more from those large LPs.
Doug Miehm -- RBC Capital Markets -- Analyst
OK. Thank you.
Miguel Martin -- Chief Executive Officer
You're very welcome.
Operator
Our next question comes from Adam Buckham with Scotiabank. You may proceed with your question.
Adam Buckham -- Scotiabank -- Analyst
Hey, guys. Thanks for taking my questions. So I wanted to touch back on Israel. I guess I have two parts.
The first one is thinking about the two large sales that you've made, first in July and then, I guess, the upcoming one. Can you maybe talk to how much of this is the relieving of the bottleneck that's occurred there? And then secondly, are you able to comment on how many Canadian LPs are supplying Israel currently?
Miguel Martin -- Chief Executive Officer
Yes. I don't -- I mean, I don't think it's a bottleneck. I was out there in July. The reality is you've got local Israeli companies that are high quality, they're growing cannabis.
As I mentioned, the IMCA, which I have a tremendous amount of respect for, and I had the pleasure of spending a lot of time with, it expects that Israel is going to have some of the most stringent regulatory requirements of any market in the world and be a leader in regulatory compliance. That's really hard. So a lot of people would love to access Israel and the margins. I think in order to do that, first and foremost, you have to have excellence in regulatory compliance.
Secondly, you have to have a really strong partner that can execute on the ground, and we're really pleased with our partnership with Cantek. And third, I think you have to make a commitment as a company long term. And we're -- couldn't be happier with all of those things coming together. I would -- I don't know all the different LPs that we try to get into Israel.
I can imagine with that margin structure, everybody would love to be able to get into Israel, but CUMCS, all the pesticide testing, everything that I mentioned is not easy. And so, it's been a handful of companies that have been able to navigate it. I might argue we've done it better than most, but we'll stay on it, and we're thrilled about it.
Adam Buckham -- Scotiabank -- Analyst
Great. Thanks.
Operator
At this time, we have reached the end of the question-and-answer session. And I will now turn the call over to Ananth for any closing comments.
Ananth Krishnan -- Vice President, Corporate Development and Investor Relations
Thanks very much, John, and thanks very much for everyone for joining the call. We look forward to coming back in November and reporting our Q1 fiscal 2022 financial results. Everyone else, please stay safe, and hope to speak to you soon. Thanks so much.
Operator
[Operator signoff]
Duration: 55 minutes
Call participants:
Ananth Krishnan -- Vice President, Corporate Development and Investor Relations
Miguel Martin -- Chief Executive Officer
Glen Ibbott -- Chief Financial Officer
Vivien Azer -- Cowen and Company -- Analyst
Matthew Baker -- Cantor Fitzgerald -- Analyst
Michael Lavery -- Piper Sandler -- Analyst
Andrew Carter -- Stifel Financial Corp. -- Analyst
Heather Balsky -- Bank of America Merrill Lynch -- Analyst
John Zamparo -- CIBC -- Analyst
Frederico Gomes -- ATB Capital Markets -- Analyst
Tamy Chen -- BMO Capital Markets -- Analyst
Doug Miehm -- RBC Capital Markets -- Analyst
Adam Buckham -- Scotiabank -- Analyst
More ACB analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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 Inc. (NASDAQ: ACB) Q4 2021 Earnings Call Sep 27, 2021, 5:00 p.m. Operator [Operator signoff] Duration: 55 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Investor Relations Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Matthew Baker -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Heather Balsky -- Bank of America Merrill Lynch -- Analyst John Zamparo -- CIBC -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Doug Miehm -- RBC Capital Markets -- Analyst Adam Buckham -- Scotiabank -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. For that reason, we will happily continue to allocate resources to the Canadian, European, or Israeli medical markets, where our regulatory expertise, science, testing and compliance combined to create a portable and profitable model. | Operator [Operator signoff] Duration: 55 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Investor Relations Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Matthew Baker -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Heather Balsky -- Bank of America Merrill Lynch -- Analyst John Zamparo -- CIBC -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Doug Miehm -- RBC Capital Markets -- Analyst Adam Buckham -- Scotiabank -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis Inc. (NASDAQ: ACB) Q4 2021 Earnings Call Sep 27, 2021, 5:00 p.m. About 80% of our Canadian medical cannabis net revenue is constituted by cannabis insured and/or subsidized patient groups, which sets up the medical channels a very solid core revenue growth. | Operator [Operator signoff] Duration: 55 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Investor Relations Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Matthew Baker -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Heather Balsky -- Bank of America Merrill Lynch -- Analyst John Zamparo -- CIBC -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Doug Miehm -- RBC Capital Markets -- Analyst Adam Buckham -- Scotiabank -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis Inc. (NASDAQ: ACB) Q4 2021 Earnings Call Sep 27, 2021, 5:00 p.m. Our Canadian medical revenue was $26.4 million in Q4, essentially flat quarter over quarter despite the impact of competition from continued store openings in the consumer market. | Operator [Operator signoff] Duration: 55 minutes Call participants: Ananth Krishnan -- Vice President, Corporate Development and Investor Relations Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Matthew Baker -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Heather Balsky -- Bank of America Merrill Lynch -- Analyst John Zamparo -- CIBC -- Analyst Frederico Gomes -- ATB Capital Markets -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Doug Miehm -- RBC Capital Markets -- Analyst Adam Buckham -- Scotiabank -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis Inc. (NASDAQ: ACB) Q4 2021 Earnings Call Sep 27, 2021, 5:00 p.m. So, Miguel, the first question is, when will you be EBITDA positive? |
36704.0 | 2021-09-27 00:00:00 UTC | 4 Top Stock Trades for Tuesday: ACB, F, RIDE, NKE | ACB | https://www.nasdaq.com/articles/4-top-stock-trades-for-tuesday%3A-acb-f-ride-nke-2021-09-27 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks opened lower to start the week and clawed back some of the deficits, although the Russell 2000 had a great day, up almost 1.5% on Monday. With that in mind, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Aurora Cannabis (ACB)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Aurora Cannabis (NASDAQ:ACB) reported earnings after the close and boy, this stock has really been struggling. That’s even as some of the other cannabis stocks have been fetching a bid.
Can earnings turn it around?
Lately, the $6 level has been decent support. Bulls will want that to remain the case after the print, but they’ll really want to see ACB stock avoid a close below last week’s low of $5.85. That’s also the September low, for those that are curious.
On the upside, let’s see if shares can clear the 50-day moving average. Above the 50-day puts the $7.50 resistance level in play. Above that could set the tone for a push up to the 50-week and 200-day moving averages.
Top Stock Trades for Tomorrow No. 2: Ford (F)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Ford (NYSE:F) shares have been trading great lately, haven’t they? Earlier this month, we flagged the “ABCDE” correction, followed by the breakout over downtrend resistance.
After a quick dip, Ford stock has now ripped off four-straight days of gains. That’s been good for a gain of nearly 12%.
From here, I want to see how Ford stock handles itself. If it continues to push higher, let’s look for a test of the 61.8% retracement of the current range, near $15. A push above $15 could eventually put the recent high of $16.45 back on the table (but not before some pullbacks along the way).
On a dip, though, I need to see the 50-day and 10-day moving averages act as support.
Top Stock Trades for Tomorrow No. 3: Lordstown Motors (RIDE)
Click to Enlarge
Source: Chart courtesy of TrendSpider
I have not been a big fan of Lordstown Motors (NASDAQ:RIDE), and even though the recent price action has been good, it doesn’t mean I’m going to become an overnight bull in this one.
That said, shares continue to ride the 10-day moving average higher. If RIDE stock can clear last week’s high of $8, it puts the notable $9 level in play. This level went from solid support in the second quarter to resistance in Q3.
Which role will it play for Q4? We won’t have to wait long to find out.
If shares clear $10, see how RIDE stock handles the 10-month moving average. Above it puts the 200-day in play, as well as the Q2 high at $11.88.
On the downside, however, a move below $6.70 and the 50-day moving average does not bode well for bulls. In that scenario, the $5.75 gap-fill level could be in play.
Top Trades for Tomorrow No. 4: Nike (NKE)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Nike (NYSE:NKE) shares were buried on Friday following disappointing quarterly results.
Shares broke the previous post-earnings low of $150.48 and are seeing a second day of selling here on Monday. However, I think the stock could be setting up for a great buy-the-dip opportunity, based on support and risk/reward. I know the quarter wasn’t great and either was guidance, but this is a trade — not a full position investment.
In the $145 to $147 zone, not only does Nike find a huge area of prior resistance, but it also finds the 200-day moving average. I would be a buyer on a dip into this area — aggressive buyers could justify a long position now — and would use a break or close below the 50-week moving average as my stop-loss.
More conservative bulls may consider a tighter stop-loss, such as a close or sustained break below $145.
On the upside, though, keep an eye on $150.50. A move above that level could fuel a further push to the upside, even if it’s only temporary.
On the date of publication, Bret Kenwell 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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Tuesday: ACB, F, RIDE, NKE 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. | Click to Enlarge Source: Chart courtesy of TrendSpider Aurora Cannabis (NASDAQ:ACB) reported earnings after the close and boy, this stock has really been struggling. 1: Aurora Cannabis (ACB) Bulls will want that to remain the case after the print, but they’ll really want to see ACB stock avoid a close below last week’s low of $5.85. | Click to Enlarge Source: Chart courtesy of TrendSpider Aurora Cannabis (NASDAQ:ACB) reported earnings after the close and boy, this stock has really been struggling. 1: Aurora Cannabis (ACB) Bulls will want that to remain the case after the print, but they’ll really want to see ACB stock avoid a close below last week’s low of $5.85. | Click to Enlarge Source: Chart courtesy of TrendSpider Aurora Cannabis (NASDAQ:ACB) reported earnings after the close and boy, this stock has really been struggling. 1: Aurora Cannabis (ACB) Bulls will want that to remain the case after the print, but they’ll really want to see ACB stock avoid a close below last week’s low of $5.85. | Click to Enlarge Source: Chart courtesy of TrendSpider Aurora Cannabis (NASDAQ:ACB) reported earnings after the close and boy, this stock has really been struggling. 1: Aurora Cannabis (ACB) Bulls will want that to remain the case after the print, but they’ll really want to see ACB stock avoid a close below last week’s low of $5.85. |
36705.0 | 2021-09-27 00:00:00 UTC | Aurora Cannabis posts smaller core loss on higher pot demand, cost cuts | ACB | https://www.nasdaq.com/articles/aurora-cannabis-posts-smaller-core-loss-on-higher-pot-demand-cost-cuts-2021-09-27-0 | nan | nan | Adds industry background, revenue
Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products.
Pandemic-induced lockdowns have lifted demand for cannabis-related products from homebound customers, while the new sector-friendly policy changes, including access to federal banking, has sparked optimism among investors.
Aurora last week said it would shut down a facility in Edmonton, Alberta, without disclosing the number of employees that would be impacted by the move. The company had announced staff reductions and plans to shut five facilities in June last year.
The Edmonton-based company's total revenue stood at C$54.8 million, compared with C$55.2 million in the third quarter.
On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier.
($1 = 1.2652 Canadian dollars)
(Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi)
((Rithika.Krishna@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. | Adds industry background, revenue Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. Pandemic-induced lockdowns have lifted demand for cannabis-related products from homebound customers, while the new sector-friendly policy changes, including access to federal banking, has sparked optimism among investors. Aurora last week said it would shut down a facility in Edmonton, Alberta, without disclosing the number of employees that would be impacted by the move. | Adds industry background, revenue Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. The company had announced staff reductions and plans to shut five facilities in June last year. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier. | Adds industry background, revenue Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier. ($1 = 1.2652 Canadian dollars) (Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi) ((Rithika.Krishna@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. | Adds industry background, revenue Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. The company had announced staff reductions and plans to shut five facilities in June last year. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier. |
36706.0 | 2021-09-27 00:00:00 UTC | Aurora Cannabis posts smaller core loss on higher pot demand, cost cuts | ACB | https://www.nasdaq.com/articles/aurora-cannabis-posts-smaller-core-loss-on-higher-pot-demand-cost-cuts-2021-09-27 | nan | nan | Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier.
($1 = 1.2652 Canadian dollars)
(Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi)
((Rithika.Krishna@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. | Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier. ($1 = 1.2652 Canadian dollars) (Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi) ((Rithika.Krishna@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. | Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier. ($1 = 1.2652 Canadian dollars) (Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi) ((Rithika.Krishna@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. | Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier. ($1 = 1.2652 Canadian dollars) (Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi) ((Rithika.Krishna@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. | Sept 27 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O reported a smaller fourth-quarter core loss on Monday, as the pot producer benefited from aggressive cost-cut measures and higher demand for cannabis and related products. On an adjusted basis, the company posted a loss before interest, taxes, depreciation and amortization of C$19.3 million ($15.25 million) for the three months ended June 30, compared with a loss of C$33.3 million, a year earlier. ($1 = 1.2652 Canadian dollars) (Reporting by Rithika Krishna in Bengaluru; Editing by Vinay Dwivedi) ((Rithika.Krishna@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. |
36707.0 | 2021-09-27 00:00:00 UTC | Why Sundial, Tilray, Canopy Growth, and Aurora Cannabis Stocks Are Glowing Green Today | ACB | https://www.nasdaq.com/articles/why-sundial-tilray-canopy-growth-and-aurora-cannabis-stocks-are-glowing-green-today-2021 | nan | nan | What happened
Marijuana stocks rocketed in Monday morning trading as the prospects for full-scale marijuana legalization improved in Washington.
As MarijuanaMoment.net reports, a panel from the U.S. House of Representatives -- having passed its SAFE Banking Act (a law legalizing banks doing business with cannabis companies) as part of the 2022 National Defense Authorization Act last week -- is now preparing for a vote to "federally legalize marijuana" outright.
Shares of marijuana stocks are responding as you'd expect. Sundial Growers (NASDAQ: SNDL) and Tilray (NASDAQ: TLRY) are both up 4.1% as of 11:45 a.m. EDT today. Canopy Growth (NASDAQ: CGC) is gaining 4.8%, and Aurora Cannabis (NASDAQ: ACB) is leading the pack higher with a 5.9% gain.
Image source: Getty Images.
So what
The House Judiciary Committee will begin marking up a "dozen pieces of legislation" Wednesday, according to the report. Chief among them will be the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would "decriminalize marijuana federally" by removing marijuana from the Controlled Substances Act. The bill would also create a marijuana tax -- giving even representatives who are waffling on the law a reason to support it: tax revenue.
At the same time, this morning UPI reported on a study conducted under the auspices of the Journal of the American Medical Association, which found that "reported daily use of marijuana did not substantially increase even after recreational use [in states where marijuana has been] legalized," and that "there was not a rise in marijuana use disorder in these states," either -- apparently rebutting media reports of an epidemic of reefer madness that gained attention over the summer.
Now what
So that right there gives marijuana investors two reasons to feel optimistic about the prospects for legalization this week. Would you like a third?
Over in the Senate, which must sign off on any law that the House passes, there's been a lot of talk lately about how pro-legalization Senators didn't want to pass the SAFE Act alone, but legalize cannabis entirely, all in one go. If the MORE Act gets passed by the House and sent to the Senate, then this could give those senators the opportunity to do just that.
Granted, President Biden still seems opposed to the law, but on balance, today still seems to hold more good news than bad for cannabis investors.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 17, 2021
Rich Smith 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. | Canopy Growth (NASDAQ: CGC) is gaining 4.8%, and Aurora Cannabis (NASDAQ: ACB) is leading the pack higher with a 5.9% gain. As MarijuanaMoment.net reports, a panel from the U.S. House of Representatives -- having passed its SAFE Banking Act (a law legalizing banks doing business with cannabis companies) as part of the 2022 National Defense Authorization Act last week -- is now preparing for a vote to "federally legalize marijuana" outright. So what The House Judiciary Committee will begin marking up a "dozen pieces of legislation" Wednesday, according to the report. | Canopy Growth (NASDAQ: CGC) is gaining 4.8%, and Aurora Cannabis (NASDAQ: ACB) is leading the pack higher with a 5.9% gain. As MarijuanaMoment.net reports, a panel from the U.S. House of Representatives -- having passed its SAFE Banking Act (a law legalizing banks doing business with cannabis companies) as part of the 2022 National Defense Authorization Act last week -- is now preparing for a vote to "federally legalize marijuana" outright. Over in the Senate, which must sign off on any law that the House passes, there's been a lot of talk lately about how pro-legalization Senators didn't want to pass the SAFE Act alone, but legalize cannabis entirely, all in one go. | Canopy Growth (NASDAQ: CGC) is gaining 4.8%, and Aurora Cannabis (NASDAQ: ACB) is leading the pack higher with a 5.9% gain. As MarijuanaMoment.net reports, a panel from the U.S. House of Representatives -- having passed its SAFE Banking Act (a law legalizing banks doing business with cannabis companies) as part of the 2022 National Defense Authorization Act last week -- is now preparing for a vote to "federally legalize marijuana" outright. At the same time, this morning UPI reported on a study conducted under the auspices of the Journal of the American Medical Association, which found that "reported daily use of marijuana did not substantially increase even after recreational use [in states where marijuana has been] legalized," and that "there was not a rise in marijuana use disorder in these states," either -- apparently rebutting media reports of an epidemic of reefer madness that gained attention over the summer. | Canopy Growth (NASDAQ: CGC) is gaining 4.8%, and Aurora Cannabis (NASDAQ: ACB) is leading the pack higher with a 5.9% gain. What happened Marijuana stocks rocketed in Monday morning trading as the prospects for full-scale marijuana legalization improved in Washington. Now what So that right there gives marijuana investors two reasons to feel optimistic about the prospects for legalization this week. |
36708.0 | 2021-09-27 00:00:00 UTC | Canopy Growth Makes Another Big Move Towards U.S. Expansion | ACB | https://www.nasdaq.com/articles/canopy-growth-makes-another-big-move-towards-u.s.-expansion-2021-09-27 | nan | nan | Expansion into the U.S. pot market is a key area of focus for Canadian marijuana producer Canopy Growth (NASDAQ: CGC). The company was working on deals to enter the U.S. well before its peers explored this opportunity. In 2019, it inked a still-pending deal with multi-state operator Acreage Holdings to accelerate its growth into the market, but that deal will only happen if and when the U.S. opens for business through federal legalization.
This month, Canopy Growth announced yet another move into America. But this deal doesn't need to wait for marijuana legalization.
Image source: Getty Images.
Canopy Growth launches CBD vapes in the U.S.
On Sept. 14, Canopy Growth announced that it would be launching its first-ever cannabidiol (CBD) vape product, the whisl. The product has options that allow users to control their desired effect, whether it's to focus, relax, or wind down.
How can Canopy Growth do this, since marijuana is federally illegal in the U.S.? These products do not contain any tetrahydrocannabinol (THC), the psychoactive component of cannabis. While CBD isn't entirely legal, it is allowed as long as it is derived from a hemp plant -- which it is for these vape products. In 2018, the U.S. legalized hemp-based products under the Farm Bill.
Included in the news release was even more promising news: Canopy Growth will sell these products in more than 3,000 U.S. Circle K stores in a partnership with global convenience store giant Alimentation Couche-Tard (OTC: ANCU.F). This chain is no stranger to cannabis, as Couche-Tard owns a near-20% stake in marijuana retailer Fire & Flower, which has stores all across Canada.
Paving the way for bigger gains
The hemp-based CBD market is legal, but it isn't a significant growth opportunity, nor is it a new business unit for the company. Canopy Growth currently includes sales from any revenue it earns from the segment (including any sales it makes within the U.S.) in its "international and other" line item.
In its most recent results, for the period ending June 30, that line totaled just 19.4 million Canadian dollars and was down 8% year over year. It accounted for a little over 14% of its net revenue of CA$136.2 million. However, that also includes sales from medical marijuana in international markets. If hemp-based CBD products represented a significant chunk of revenue, Canopy Growth would likely have separated it out. The launch of the whisl product probably won't change the CBD story.
The bigger picture for Canopy investors is the growth in distribution channels. Canopy is positioning itself to be able to quickly profit from the U.S. market upon federal legalization. First, with its strategic relationship with beer maker Constellation Brands, which owns nearly 40% of Canopy. Secondly, with its Acreage deal waiting in the wings, contingent on the policy change. And most recently, by creating a presence in Circle K stores.
Is Canopy Growth a buy today?
From an investment standpoint, Canopy Growth isn't a great Canadian marijuana stock. Its revenue growth has been inconsistent and its high growth days are in the rearview mirror, at least until it can fully enter the U.S. market. And that's where the potential is with this stock. If you're OK with waiting, possibly multiple years, for the U.S. to federally legalize marijuana, then Canopy Growth could certainly be a pot stock worth buying today.
Shares of the company have fallen more than 45% this year (the Horizons Marijuana Life Sciences ETF is flat) as it has long been overvalued and arguably, it still is. That being said, at a price-to-sales multiple of less than 12, its valuation metric is moving closer to other Canadian pot stocks.
CGC PS Ratio data by YCharts
Given the relationships and partnerships, it has in place, it's arguably worth a higher premium than its peers, anyway. For long-term investors, now may be a good time to consider buying shares of Canopy Growth.
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 – 15 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 owns shares of and recommends ALIMENTATION COUCHE-TARD INC and Constellation 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. | Paving the way for bigger gains The hemp-based CBD market is legal, but it isn't a significant growth opportunity, nor is it a new business unit for the company. If you're OK with waiting, possibly multiple years, for the U.S. to federally legalize marijuana, then Canopy Growth could certainly be a pot stock worth buying today. Shares of the company have fallen more than 45% this year (the Horizons Marijuana Life Sciences ETF is flat) as it has long been overvalued and arguably, it still is. | Expansion into the U.S. pot market is a key area of focus for Canadian marijuana producer Canopy Growth (NASDAQ: CGC). Canopy Growth launches CBD vapes in the U.S. On Sept. 14, Canopy Growth announced that it would be launching its first-ever cannabidiol (CBD) vape product, the whisl. Paving the way for bigger gains The hemp-based CBD market is legal, but it isn't a significant growth opportunity, nor is it a new business unit for the company. | Canopy Growth launches CBD vapes in the U.S. On Sept. 14, Canopy Growth announced that it would be launching its first-ever cannabidiol (CBD) vape product, the whisl. From an investment standpoint, Canopy Growth isn't a great Canadian marijuana stock. If you're OK with waiting, possibly multiple years, for the U.S. to federally legalize marijuana, then Canopy Growth could certainly be a pot stock worth buying today. | But this deal doesn't need to wait for marijuana legalization. If you're OK with waiting, possibly multiple years, for the U.S. to federally legalize marijuana, then Canopy Growth could certainly be a pot stock worth buying today. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC and Constellation Brands. |
36709.0 | 2021-09-26 00:00:00 UTC | Is Sundial Growers Too Cheap to Pass Up? | ACB | https://www.nasdaq.com/articles/is-sundial-growers-too-cheap-to-pass-up-2021-09-26 | nan | nan | Cannabis stocks, growth stocks, and all kinds of investments have been volatile this month. The S&P 500 is down nearly 2% since the start of September and the Horizons Marijuana Life Sciences ETF has dropped by 9%. Although some investors may feel the urge to scramble for the exits, the recent sell-off could present some attractive buying opportunities.
One stock investors may be considering is pot producer Sundial Growers (NASDAQ: SNDL). Earlier this year, Reddit investors turned it into a meme stock, creating a buying wave that sent it to a high of nearly $4 a share. This week, its stock fell as low as $0.68 -- its lowest level since May 13, when it touched $0.65.
In the wake of that decline, is Sundial Growers a bargain worth buying, or should investors steer clear?
Image source: Getty Images.
Poor results and potential dilution
Generally speaking, cannabis companies are risky investments since many aren't profitable and rely on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to show growth in their bottom lines. Sundial Growers is no exception. The only reason why it may be slightly safer than the average pot stock is that it has a significant amount of cash.
As of Aug. 9, the company reported 760 million Canadian dollars in unrestricted cash. And despite posting losses of CA$322 million over the trailing 12 months, its operating cash burn is only CA$137 million. The company's balance sheet should keep its operations afloat for the foreseeable future.
However, that doesn't protect shareholders from seeing their positions diluted. Sundial Growers' financials are littered with warrants, and in its second-quarter report, there were more than 98 million derivative warrants outstanding at an exercise price of $1.50. Even if Sundial Growers' stock jumps back above that level, investors holding those warrants could exercise them, which would limit the upside for the stock.
But for speculators, the temptation to take a chance on Sundial Growers may still be there.
Does the potential reward outweigh the risk?
Last year, the market's interest in Sundial Growers was related to news that it was on the hunt for deals. Management said in its second-quarter 2020 results that it was conducting a "strategic alternatives review." This hinted at a possible merger, business combination, or an outright sale. And while Sundial Growers has made some modest deals since then, including acquiring cannabis retail company Inner Spirit Holdings, and setting up SunStream Bancorp, a joint venture with private equity firm SAF Group, a blockbuster transaction never materialized.
Sundial itself hasn't generated consistent revenue growth -- indeed, its sales have been declining. And while branching out into the retail cannabis business might help that, such a move could increase its cash burn.
Sundial Growers was a speculative investment then, and it remains one today. The wildcard is that the company still has plenty of cash available should it want to execute a big move without diluting shareholders. But even as the market caps of cannabis companies have been falling this year, Sundial has opted for smaller, more calculated moves. A large transaction doesn't appear to be what management is looking for.
Its premium is not justified
With its stock trading at more than 21 times revenue, Sundial Growers is valued expensively. Canopy Growth and Aurora Cannabis, two of the largest marijuana producers in Canada, trade at price-to-sales multiples of just 11 and 4, respectively. There's no good reason to pay such a steep premium for Sundial Growers.
Even if the stock more than doubles in value, investors will need to worry about warrants seriously crimping the stock's price. They also should remember that when the share price popped in late January, management didn't issue shares just once but twice.
Sundial Growers' stock price would have to fall even further before the possible rewards of buying it outweighed the risks. At this point, it doesn't possess the potential upside that would make it worth gambling on -- even for investors with a healthy appetite for risk. Warrants and the threat of dilution will likely hamper its stock price, even if investors turn bullish on the company's prospects.
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 – 15 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 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. | Poor results and potential dilution Generally speaking, cannabis companies are risky investments since many aren't profitable and rely on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to show growth in their bottom lines. And while Sundial Growers has made some modest deals since then, including acquiring cannabis retail company Inner Spirit Holdings, and setting up SunStream Bancorp, a joint venture with private equity firm SAF Group, a blockbuster transaction never materialized. 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. | Cannabis stocks, growth stocks, and all kinds of investments have been volatile this month. One stock investors may be considering is pot producer Sundial Growers (NASDAQ: SNDL). And despite posting losses of CA$322 million over the trailing 12 months, its operating cash burn is only CA$137 million. | One stock investors may be considering is pot producer Sundial Growers (NASDAQ: SNDL). Even if Sundial Growers' stock jumps back above that level, investors holding those warrants could exercise them, which would limit the upside for the stock. Sundial Growers' stock price would have to fall even further before the possible rewards of buying it outweighed the risks. | One stock investors may be considering is pot producer Sundial Growers (NASDAQ: SNDL). Sundial Growers is no exception. A large transaction doesn't appear to be what management is looking for. |
36710.0 | 2021-09-24 00:00:00 UTC | Aurora Cannabis Inc expected to post a loss of 27 cents a share - Earnings Preview | ACB | https://www.nasdaq.com/articles/aurora-cannabis-inc-expected-to-post-a-loss-of-27-cents-a-share-earnings-preview-2021-09 | nan | nan | * Aurora Cannabis Inc ACB.TO, ACB.TO is expected to show a fall in quarterly revenue when it reports results on September 27.
* The Alberta-based company is expected to report a 22.0% decrease in revenue to C$56.282 million from C$72.11 million a year ago, according to the mean estimate from 11 analysts, based on Refinitiv data.
* Refinitiv's mean analyst estimate for Aurora Cannabis Inc is for a loss of 27 cents per share. For the same quarter last year, the company reported a loss of C$2.70 per share.
* The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy," 6 "hold" and 6 "sell" or "strong sell."
* The mean earnings estimate of analysts was unchanged in the last three months.
* Wall Street's median 12-month price target for Aurora Cannabis Inc is C$8, about 2.6% above its last closing price of C$7.79.
* Previous quarterly performance (using preferred earnings measure in Canadian dollars).
QUARTER ENDING
STARMINE
SMARTESTIMATE®
REFINITIV IBES ESTIMATE
ACTUAL
BEAT, MET, MISSED
SURPRISE %
Mar. 31 2021
-0.22
-0.22
-0.82
Missed
-267
Dec. 31 2020
-0.24
-0.25
-0.36
Missed
-45.9
Sep. 30 2020
-0.41
-0.40
-0.56
Missed
-39.5
Jun. 30 2020
-0.64
-2.58
-2.70
Missed
-4.5
Mar. 31 2020
-0.80
-0.76
-1.32
Missed
-73.7
Dec. 31 2019
-0.85
-0.67
-1.08
Missed
-61.9
Sep. 30 2019
-0.52
-0.52
0.12
Beat
123.2
Jun. 30 2019
-0.66
-0.59
0.00
Beat
100
This summary was machine generated September 24 at 20:03 GMT. All figures in Canadian dollars unless otherwise stated.
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.TO, ACB.TO is expected to show a fall in quarterly revenue when it reports results on September 27. * Refinitiv's mean analyst estimate for Aurora Cannabis Inc is for a loss of 27 cents per share. * Previous quarterly performance (using preferred earnings measure in Canadian dollars). | * Aurora Cannabis Inc ACB.TO, ACB.TO is expected to show a fall in quarterly revenue when it reports results on September 27. * The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy," 6 "hold" and 6 "sell" or "strong sell." 31 2021 -0.22 -0.22 -0.82 Missed -267 Dec. 31 2020 -0.24 -0.25 -0.36 Missed -45.9 Sep. 30 2020 -0.41 -0.40 -0.56 Missed -39.5 Jun. | * Aurora Cannabis Inc ACB.TO, ACB.TO is expected to show a fall in quarterly revenue when it reports results on September 27. * The Alberta-based company is expected to report a 22.0% decrease in revenue to C$56.282 million from C$72.11 million a year ago, according to the mean estimate from 11 analysts, based on Refinitiv data. * The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy," 6 "hold" and 6 "sell" or "strong sell." | * Aurora Cannabis Inc ACB.TO, ACB.TO is expected to show a fall in quarterly revenue when it reports results on September 27. * Refinitiv's mean analyst estimate for Aurora Cannabis Inc is for a loss of 27 cents per share. 30 2020 -0.64 -2.58 -2.70 Missed -4.5 Mar. |
36711.0 | 2021-09-22 00:00:00 UTC | CANADA STOCKS-Toronto index eyes best day in two months as commodities rally | ACB | https://www.nasdaq.com/articles/canada-stocks-toronto-index-eyes-best-day-in-two-months-as-commodities-rally-2021-09-22 | nan | nan | By Amal S
Sept 22 (Reuters) - Canada's main stock index was on course for its biggest percentage gain in two months on Wednesday as energy stocks climbed more than 3%, while investors focused on the U.S. Federal Reserve's policy decision due later in the day.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE added 0.75% to 20,395.51, set for its best day since July 21.
The energy group .SPTTEN extended gains for a second straight session as crude prices climbed more than $1 after data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes. O/R
The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 1.6%. MET/L
Commodities and other risky assets rallied as China's central bank injected cash into the banking system and on relief that the country's debt-burdened Evergrande would pay interest on a domestic bond.
"Now with People's Bank of China stepping in to support China's financial system, commodities are bouncing back and that's a positive for Canadian markets," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Traders are tracking the Fed's policy meeting for clues on when the U.S. central bank will begin to trim its massive pandemic-era stimulus measures.
"At some point the markets will ask why not, because if the economy is strong, and inflation is picking up and then one would think the Fed should be tapering, just like the Bank of Canada has been," added Cieszynski.
The Canadian benchmark index, which has recorded seven straight months of gains, is on track to end September in the red amid concerns over slowing global growth, rising inflation and the spread of the Delta COVID-19 variant.
HIGHLIGHTS
Aurora Cannabis Inc ACB.TO fell 1.9% after it said it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year.
Celestica Inc CLS.TO surged 12.6% to become the biggest percentage gainer on the TSX after the chipmaker agreed to buy PCI Ltd for $306 million in cash from Platinum Equity.
The TSX posted two new 52-week highs and no new lows.
(Reporting by Amal S in Bengaluru; Editing by Sriraj Kalluvila)
((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3677;))
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.TO fell 1.9% after it said it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. The Canadian benchmark index, which has recorded seven straight months of gains, is on track to end September in the red amid concerns over slowing global growth, rising inflation and the spread of the Delta COVID-19 variant. Celestica Inc CLS.TO surged 12.6% to become the biggest percentage gainer on the TSX after the chipmaker agreed to buy PCI Ltd for $306 million in cash from Platinum Equity. | Aurora Cannabis Inc ACB.TO fell 1.9% after it said it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. By Amal S Sept 22 (Reuters) - Canada's main stock index was on course for its biggest percentage gain in two months on Wednesday as energy stocks climbed more than 3%, while investors focused on the U.S. Federal Reserve's policy decision due later in the day. The energy group .SPTTEN extended gains for a second straight session as crude prices climbed more than $1 after data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes. | Aurora Cannabis Inc ACB.TO fell 1.9% after it said it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. By Amal S Sept 22 (Reuters) - Canada's main stock index was on course for its biggest percentage gain in two months on Wednesday as energy stocks climbed more than 3%, while investors focused on the U.S. Federal Reserve's policy decision due later in the day. MET/L Commodities and other risky assets rallied as China's central bank injected cash into the banking system and on relief that the country's debt-burdened Evergrande would pay interest on a domestic bond. | Aurora Cannabis Inc ACB.TO fell 1.9% after it said it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. By Amal S Sept 22 (Reuters) - Canada's main stock index was on course for its biggest percentage gain in two months on Wednesday as energy stocks climbed more than 3%, while investors focused on the U.S. Federal Reserve's policy decision due later in the day. O/R The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 1.6%. |
36712.0 | 2021-09-22 00:00:00 UTC | CANADA STOCKS-Toronto futures rise as crude prices climb | ACB | https://www.nasdaq.com/articles/canada-stocks-toronto-futures-rise-as-crude-prices-climb-2021-09-22 | nan | nan | Sept 22 (Reuters) - Futures tracking Canada's main stock index on Wednesday extended gains from the previous session as oil prices rose, with investors focused on the U.S. Federal Reserve's policy decision due later in the day.
December futures on the S&P/TSX index SXFc1 were up 0.56% at 7:00 a.m. ET.
Oil prices climbed more than $1 after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes. O/R
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended 0.5% higher at 20,244.29 on Tuesday, recovering from its lowest closing level in nearly two months in the previous session..TO
Traders are tracking the Federal Reserve's policy meeting for cues on when the central bank will begin to taper its massive pandemic-era stimulus measures.
Dow Jones Industrial Average e-mini futures 1YMc1 were up 0.64% at 7:00 a.m. ET, while S&P 500 e-mini futures ESc1 were up 0.59% and Nasdaq 100 e-mini futures NQc1 were up 0.36%. .N
TOP STORIES TOP/CAN
Canada's provincial bonds appear more attractive than sovereign debt as focus shifts from Canada's election to tightening monetary policy, with a Bank of Canada (BoC) rate hike expected as early as 2022, two senior investment strategists said.
Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year.
ANALYST RESEARCH HIGHLIGHTS RCH/CA
First Quantum Minerals Ltd FM.TO: Jefferies cuts price target to C$40 from C$42
Roots Corp ROOT.TO: RBC raises target price to C$3.50 from C$3
Teck Resources Ltd TECKb.TO: Scotiabank raises price target to C$43 from C$35
COMMODITIES AT 7:00 a.m. ET
Gold futures GCc2: $1773.1; -0.17% GOL/
US crude CLc1: $71.65; +1.64% O/R
Brent crude LCOc1: $75.42; +1.43% O/R
U.S. ECONOMIC DATA DUE ON WEDNESDAY
1000 Existing home sales for Aug : Expected 5.89 mln; Prior 5.99 mln
1000 Existing home sales percentage change for Aug : Prior 2.0%
1400 Fed funds target rate : Expected 0-0.25%; Prior 0-0.25%
1400 Fed int on excess reserves : Prior 0.15%
1400 FFR projection-current for Q3 : Prior 0.1%
1400 FFR projection-1st year for Q3 : Prior 0.1%
1400 FFR projection-2nd year for Q3 : Prior 0.6%
1400 FFR projection-longer for Q3 : Prior 2.5%
1400 FFR projection-3rd year for Q3 : Prior 0.1%
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report .TO
Canadian dollar and bonds report CAD/CA/
Reuters global stocks poll for Canada EQUITYPOLL1, EPOLL/CA
Canadian markets directory CANADA
($1= C$1.28)
(Reporting by Amal S in Bengaluru; Editing by Sriraj Kalluvila)
((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3677;))
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.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. Sept 22 (Reuters) - Futures tracking Canada's main stock index on Wednesday extended gains from the previous session as oil prices rose, with investors focused on the U.S. Federal Reserve's policy decision due later in the day. O/R The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended 0.5% higher at 20,244.29 on Tuesday, recovering from its lowest closing level in nearly two months in the previous session..TO Traders are tracking the Federal Reserve's policy meeting for cues on when the central bank will begin to taper its massive pandemic-era stimulus measures. | Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. Sept 22 (Reuters) - Futures tracking Canada's main stock index on Wednesday extended gains from the previous session as oil prices rose, with investors focused on the U.S. Federal Reserve's policy decision due later in the day. 1000 Existing home sales for Aug : Expected 5.89 mln; Prior 5.99 mln 1000 Existing home sales percentage change for Aug : Prior 2.0% 1400 Fed funds target rate : Expected 0-0.25%; Prior 0-0.25% 1400 Fed int on excess reserves : Prior 0.15% 1400 FFR projection-current for Q3 : Prior 0.1% 1400 FFR projection-1st year for Q3 : Prior 0.1% 1400 FFR projection-2nd year for Q3 : Prior 0.6% 1400 FFR projection-longer for Q3 : Prior 2.5% 1400 FFR projection-3rd year for Q3 : Prior 0.1% | Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. Sept 22 (Reuters) - Futures tracking Canada's main stock index on Wednesday extended gains from the previous session as oil prices rose, with investors focused on the U.S. Federal Reserve's policy decision due later in the day. ET, while S&P 500 e-mini futures ESc1 were up 0.59% and Nasdaq 100 e-mini futures NQc1 were up 0.36%. | Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. Sept 22 (Reuters) - Futures tracking Canada's main stock index on Wednesday extended gains from the previous session as oil prices rose, with investors focused on the U.S. Federal Reserve's policy decision due later in the day. Oil prices climbed more than $1 after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes. |
36713.0 | 2021-09-21 00:00:00 UTC | Canada's Aurora Cannabis to shut down a facility in Edmonton | ACB | https://www.nasdaq.com/articles/canadas-aurora-cannabis-to-shut-down-a-facility-in-edmonton-2021-09-21 | nan | nan | Sept 21 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year.
The company said medical distribution from the Aurora Polaris facility that is being shut down will move to an adjacent factory called Aurora Sky, while manufacturing will move to its Aurora River factory in Ontario.
"We aspire to be a leaner, more agile organization that keeps pace with our competition and is on a path to profitability," a spokesperson for the company said in an email statement.
The company, however, did not disclose the number of employees that would be impacted by the move.
On Monday, the Edmonton-based company also delayed the announcement of its fourth-quarter earnings.
Aurora had announced staff reductions and plans to shut five facilities in June last year, hit by the pandemic's impact on the cash-strapped cannabis industry.
Canada legalized recreational cannabis in October 2018, but profits have remained elusive for most marijuana companies due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth.
(Reporting by Niket Nishant and Shariq Khan in Bengaluru; Editing by Krishna Chandra Eluri)
((Niket.Nishant@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. | Sept 21 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. Aurora had announced staff reductions and plans to shut five facilities in June last year, hit by the pandemic's impact on the cash-strapped cannabis industry. Canada legalized recreational cannabis in October 2018, but profits have remained elusive for most marijuana companies due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth. | Sept 21 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. The company said medical distribution from the Aurora Polaris facility that is being shut down will move to an adjacent factory called Aurora Sky, while manufacturing will move to its Aurora River factory in Ontario. Aurora had announced staff reductions and plans to shut five facilities in June last year, hit by the pandemic's impact on the cash-strapped cannabis industry. | Sept 21 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. The company said medical distribution from the Aurora Polaris facility that is being shut down will move to an adjacent factory called Aurora Sky, while manufacturing will move to its Aurora River factory in Ontario. Aurora had announced staff reductions and plans to shut five facilities in June last year, hit by the pandemic's impact on the cash-strapped cannabis industry. | Sept 21 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.O said on Tuesday it will shut down a facility in Edmonton, Alberta, adding to the woes of the cash-strapped Canadian pot producer which has been reeling under the impact of the pandemic since last year. The company said medical distribution from the Aurora Polaris facility that is being shut down will move to an adjacent factory called Aurora Sky, while manufacturing will move to its Aurora River factory in Ontario. "We aspire to be a leaner, more agile organization that keeps pace with our competition and is on a path to profitability," a spokesperson for the company said in an email statement. |
36714.0 | 2021-09-21 00:00:00 UTC | After-Hours Earnings Report for September 21, 2021 : ADBE, FDX, SFIX, ACB, ISR | ACB | https://www.nasdaq.com/articles/after-hours-earnings-report-for-september-21-2021-%3A-adbe-fdx-sfix-acb-isr-2021-09-21 | nan | nan | The following companies are expected to report earnings after hours on 09/21/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Adobe Inc. (ADBE)is reporting for the quarter ending August 31, 2021. The computer software company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.52. This value represents a 18.87% increase compared to the same quarter last year. In the past year ADBE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.94%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ADBE is 62.38 vs. an industry ratio of 48.80, implying that they will have a higher earnings growth than their competitors in the same industry.
FedEx Corporation (FDX)is reporting for the quarter ending August 31, 2021. The transportation company's consensus earnings per share forecast from the 8 analysts that follow the stock is $4.96. This value represents a 1.85% increase compared to the same quarter last year. FDX missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -0.6%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for FDX is 11.79 vs. an industry ratio of 20.60.
Stitch Fix, Inc. (SFIX)is reporting for the quarter ending July 31, 2021. The retail (shoe) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $-0.14. This value represents a 68.18% increase compared to the same quarter last year. SFIX missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -144.44%. The "days to cover" for this stock exceeds 10 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for SFIX is -84.58 vs. an industry ratio of 1.50.
Aurora Cannabis Inc. (ACB)is reporting for the quarter ending June 30, 2021. The medical products company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.21. This value represents a 61.54% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ACB is -4.75 vs. an industry ratio of 42.70.
IsoRay, Inc. (ISR)is reporting for the quarter ending June 30, 2021. The consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.01. ISR reported earnings of $-0.02 per share for the same quarter a year ago; representing a a decrease of -50.00%.ISR missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -100%.
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)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ACB is -4.75 vs. an industry ratio of 42.70. The computer software company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.52. | Aurora Cannabis Inc. (ACB)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ACB is -4.75 vs. an industry ratio of 42.70. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ADBE is 62.38 vs. an industry ratio of 48.80, implying that they will have a higher earnings growth than their competitors in the same industry. | Aurora Cannabis Inc. (ACB)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ACB is -4.75 vs. an industry ratio of 42.70. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ADBE is 62.38 vs. an industry ratio of 48.80, implying that they will have a higher earnings growth than their competitors in the same industry. | Aurora Cannabis Inc. (ACB)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ACB is -4.75 vs. an industry ratio of 42.70. FDX missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -0.6%. |
36715.0 | 2021-09-20 00:00:00 UTC | Why Aurora Cannabis, Canopy Growth, and Tilray Stock Tumbled Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-canopy-growth-and-tilray-stock-tumbled-today-2021-09-20 | nan | nan | What happened
Marijuana stocks are getting shellacked in Monday morning trading. As of 11:05 a.m. EDT, shares of Canopy Growth (NASDAQ: CGC) have fallen 5.8%, Tilray (NASDAQ: TLRY) is down 6%, and Aurora Cannabis (NASDAQ: ACB) is bringing up the rear with a 6.3% decline.
Partly this is a consequence of today's broad stock market sell-off (the S&P 500 is down 1.6%). But partly, Wall Street is to blame.
Image source: Getty Images.
So what
The past several days have seen a series of cuts to marijuana stock price targets among Wall Street analysts, you see, in advance of Aurora Cannabis' upcoming fiscal fourth-quarter 2021 earnings report (due out tomorrow).
The bad news began back on Thursday, when Roth Capital cut its price target on Tilray in half, to $12 a share, commenting that management's sales projections for fiscal 2024 were too "hopeful" to be true. Tilray is projecting $4 billion in sales that year, by the way -- but according to data from S&P Global Market Intelligence, most analysts on Wall Street think sales will be only $1.3 billion.
For context, Tilray's $4 billion promise might have made sense when it was growing sales six-fold year over year (like in 2019), or even just doubling sales (as it did in 2020). After sales growth slowed to just 27% year over year this year, however, hopes of the company growing from $513 million in annual revenue currently to eight times that number three years from now do seem a bit overoptimistic.
And the problems don't end with Tilray. One day after that price target cut came out, investment bank Cantor Fitzgerald lowered its price target on Aurora Cannabis by a third (to 8.30 Canadian dollars), reported TheFly.com. More than just a slowdown, here Cantor warned of a sequential "mid-teens drop" in Canadian sales of cannabis for recreational use.
Now what
Finally, this morning both Cantor and Piper Sandler teamed up to jointly cut price targets on Canopy Growth (to CA$21 and CA$15, respectively). Neither analyst came right out and suggested selling Canopy stock ahead of Aurora's earnings report, but both are only "neutral" on Canopy's prospects.
Cantor Fitzgerald echoed its concerns about declining sales, and noted that while Canopy Growth is predicting it will achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of 2022, the analyst doesn't think that's likely to happen before mid-2023. For its part, Piper also noted the 2022 prediction, but said "we consider [that] very difficult to achieve" in light of the market share losses Canopy Growth is suffering.
In short, it's bad news all around for the cannabis companies, and investors have started to notice.
10 stocks we like better than Canopy Growth Corp.
When our award-winning 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 Canopy Growth Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 17, 2021
Rich Smith 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. | As of 11:05 a.m. EDT, shares of Canopy Growth (NASDAQ: CGC) have fallen 5.8%, Tilray (NASDAQ: TLRY) is down 6%, and Aurora Cannabis (NASDAQ: ACB) is bringing up the rear with a 6.3% decline. So what The past several days have seen a series of cuts to marijuana stock price targets among Wall Street analysts, you see, in advance of Aurora Cannabis' upcoming fiscal fourth-quarter 2021 earnings report (due out tomorrow). The bad news began back on Thursday, when Roth Capital cut its price target on Tilray in half, to $12 a share, commenting that management's sales projections for fiscal 2024 were too "hopeful" to be true. | As of 11:05 a.m. EDT, shares of Canopy Growth (NASDAQ: CGC) have fallen 5.8%, Tilray (NASDAQ: TLRY) is down 6%, and Aurora Cannabis (NASDAQ: ACB) is bringing up the rear with a 6.3% decline. So what The past several days have seen a series of cuts to marijuana stock price targets among Wall Street analysts, you see, in advance of Aurora Cannabis' upcoming fiscal fourth-quarter 2021 earnings report (due out tomorrow). Now what Finally, this morning both Cantor and Piper Sandler teamed up to jointly cut price targets on Canopy Growth (to CA$21 and CA$15, respectively). | As of 11:05 a.m. EDT, shares of Canopy Growth (NASDAQ: CGC) have fallen 5.8%, Tilray (NASDAQ: TLRY) is down 6%, and Aurora Cannabis (NASDAQ: ACB) is bringing up the rear with a 6.3% decline. So what The past several days have seen a series of cuts to marijuana stock price targets among Wall Street analysts, you see, in advance of Aurora Cannabis' upcoming fiscal fourth-quarter 2021 earnings report (due out tomorrow). Cantor Fitzgerald echoed its concerns about declining sales, and noted that while Canopy Growth is predicting it will achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of 2022, the analyst doesn't think that's likely to happen before mid-2023. | As of 11:05 a.m. EDT, shares of Canopy Growth (NASDAQ: CGC) have fallen 5.8%, Tilray (NASDAQ: TLRY) is down 6%, and Aurora Cannabis (NASDAQ: ACB) is bringing up the rear with a 6.3% decline. Tilray is projecting $4 billion in sales that year, by the way -- but according to data from S&P Global Market Intelligence, most analysts on Wall Street think sales will be only $1.3 billion. One day after that price target cut came out, investment bank Cantor Fitzgerald lowered its price target on Aurora Cannabis by a third (to 8.30 Canadian dollars), reported TheFly.com. |
36716.0 | 2021-09-17 00:00:00 UTC | Best Stocks To Invest In Right Now? 4 Cannabis Stocks To Watch | ACB | https://www.nasdaq.com/articles/best-stocks-to-invest-in-right-now-4-cannabis-stocks-to-watch-2021-09-17 | nan | nan | 4 Top Cannabis Stocks To Check Out Right Now
Cannabis stocks, in general, have and continue to turn heads in the stock market lately. The current hype around the industry is thanks to several key factors now. On one hand, you have the coronavirus pandemic resulting in consumers staying home more often. When you couple this with a rise in anxiety and stress amid pandemic conditions, the rise in demand for medical cannabis makes sense. On the other hand, people continue to turn to cannabis as a means of leisure as well. With the overall momentum for legalization at the federal level, some investors would be eager to bet on some of the top cannabis stocks in the market now.
After considering all of these factors, would now be a good time to jump on the best cannabis stocks? Well, if anything, the market is already expanding even before achieving nationwide legalization. For example, the state of Ohio is reportedly looking to double its total dispensaries. Elsewhere, industry leaders such as Tilray (NASDAQ: TLRY) and Curaleaf (OTCMKTS: CURLF) are growing their U.S. operations as well. With all this activity in the space now, could one of these top cannabis names in the stock market today be worth investing in?
Top Cannabis Stocks To Buy [Or Sell] This Month
Aurora Cannabis Inc. (NASDAQ: ACB)
GrowGeneration Corporation (NASDAQ: GRWG)
High Tide Inc. (NASDAQ: HITI)
Innovative Industrial Properties (NYSE: IIPR)
Aurora Cannabis Inc.
First up on our list of cannabis stocks, we have Aurora Cannabis, a Canadian-owned licensed producer of medical and consumer cannabis. It has sales and operations in more than 20 countries worldwide. The company is a leading integrated cannabis company with a robust network of subsidiaries and strategic partnerships. Boasting state-of-the-art production facilities, the company continues to be one of the fastest-growing cannabis companies in the world. ACB stock currently trades at $6.54 as of 10:19 a.m. ET. The company will be reporting its fourth quarter and full fiscal year 2021 financials next week on September 22, 2021.
Last month, the company announced that it had successfully delivered its initial shipment of cannabis to the French medical cannabis pilot program to serve patients in France. Aurora and Ethypharm were selected by the National Agency for the Safety of Medicines and Health Products to supply the entire medical cannabis-dried flower range to French patients during the pilot program.
The company says that this first prescription is a significant step toward providing access to patients and will support the destigmatization of medical cannabis in France. If successful, this pilot program could lead to one of the largest regulated medical cannabis markets in Europe. Given this exciting piece of news, will you consider investing in ACB stock right now?
Read More
4 Semiconductor Stocks To Watch Right Now
Good Stocks To Invest In Right Now? 4 IPO Stocks To Watch
GrowGeneration Corp
Next, we will look at GrowGeneration, one of the largest hydroponics suppliers in the country with 60 retail and distribution centers. It is a pick-and-shovel play company for the cannabis industry that sells thousands of products. Namely, this would include organic nutrients and soils, advanced lighting technology, and state-of-the-art hydroponics equipment that is used by both commercial and home growers.
Also, it has strategic partnerships with some of the biggest brand names in the industry and offers a direct-to-farm delivery service along with equipment financing. GRWG stock currently trades at $27.27 as of 10:20 a.m. ET.
On Wednesday, the company announced that it has opened 2 new hydroponic garden centers to serve the largest hydroponic market in the country, Los Angeles County, California. It will become the company’s 11th and 12th locations in Southern California and will begin operations on September 24, 2021. In August, the company also announced that it had acquired Commercial Grow Supply, a hydroponic superstore located in California. All things considered, should you add GRWG stock to your portfolio of cannabis stocks right now?
[Read More] Top Stocks To Buy Now? 4 Renewable Energy Stocks For Your Watchlist
High Tide Inc.
High Tide is a cannabis company whose portfolio includes a dominant Canadian cannabis retail chain, a global manufacturer, and distributor of cutting-edge consumption accessories. It also boasts an impressive e-commerce platform for cannabis accessories, with almost 100 million site visits in 2020 alone. HITI stock currently trades at $6.32 as of 10:21 a.m. ET and has more than doubled in valuation year-to-date.
Today, the company announced its Canna Cabana retail cannabis store in Ontario, Canada has begun selling recreational cannabis products for the adult user. This opening will represent High Tide’s 95th branded retail location across Canada, selling recreational cannabis products and consumption accessories. On September 14, 2021, the company reported its third-quarter financials.
Impressively, its revenue was $48.1 million, almost doubling compared to a year ago. Its Cabana Club membership has grown by 45% to over 200,000 members. It also reported its sixth consecutive quarter of positive adjusted EBITDA. For these reasons, should you be excited about owning HITI stock?
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
Innovative Industrial Properties
Another name to consider in the U.S. cannabis market today would be Innovative Industrial Properties or IIPR for short. Now, for starters, the company is not your usual play on the cannabis industry. Namely, IIPR is a real estate investment trust (REIT). As a REIT, the company primarily focuses on acquiring and leasing medical-use cannabis facilities. Notably, this positions IIPR to benefit from the current momentum across the board in the marijuana industry. On top of that, the company does not have to deal with the risks and extensive costs required to cultivate marijuana.
Because of this, investors looking to make less direct plays on the weed industry now could be eyeing IIPR stock. As it stands, IIPR stock is now trading at $235.74 as of 10:21 a.m. ET. This is after gaining by over 30% year-to-date. Despite all of this, the company continues to make plays catering to investors.
Earlier this week, IIPR declared a dividend of $1.50 per share, marking a 28% year-over-year increase. Moreover, the company also posted stellar results in its latest fiscal quarter report. In it, IIPR saw year-over-year surges of 100% in total revenue and 120% in net income. All in all, would IIPR stock be a top buy for you now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Cannabis Stocks To Buy [Or Sell] This Month Aurora Cannabis Inc. (NASDAQ: ACB) GrowGeneration Corporation (NASDAQ: GRWG) High Tide Inc. (NASDAQ: HITI) Innovative Industrial Properties (NYSE: IIPR) Aurora Cannabis Inc. First up on our list of cannabis stocks, we have Aurora Cannabis, a Canadian-owned licensed producer of medical and consumer cannabis. ACB stock currently trades at $6.54 as of 10:19 a.m. Given this exciting piece of news, will you consider investing in ACB stock right now? | Top Cannabis Stocks To Buy [Or Sell] This Month Aurora Cannabis Inc. (NASDAQ: ACB) GrowGeneration Corporation (NASDAQ: GRWG) High Tide Inc. (NASDAQ: HITI) Innovative Industrial Properties (NYSE: IIPR) Aurora Cannabis Inc. First up on our list of cannabis stocks, we have Aurora Cannabis, a Canadian-owned licensed producer of medical and consumer cannabis. ACB stock currently trades at $6.54 as of 10:19 a.m. Given this exciting piece of news, will you consider investing in ACB stock right now? | Top Cannabis Stocks To Buy [Or Sell] This Month Aurora Cannabis Inc. (NASDAQ: ACB) GrowGeneration Corporation (NASDAQ: GRWG) High Tide Inc. (NASDAQ: HITI) Innovative Industrial Properties (NYSE: IIPR) Aurora Cannabis Inc. First up on our list of cannabis stocks, we have Aurora Cannabis, a Canadian-owned licensed producer of medical and consumer cannabis. ACB stock currently trades at $6.54 as of 10:19 a.m. Given this exciting piece of news, will you consider investing in ACB stock right now? | Top Cannabis Stocks To Buy [Or Sell] This Month Aurora Cannabis Inc. (NASDAQ: ACB) GrowGeneration Corporation (NASDAQ: GRWG) High Tide Inc. (NASDAQ: HITI) Innovative Industrial Properties (NYSE: IIPR) Aurora Cannabis Inc. First up on our list of cannabis stocks, we have Aurora Cannabis, a Canadian-owned licensed producer of medical and consumer cannabis. ACB stock currently trades at $6.54 as of 10:19 a.m. Given this exciting piece of news, will you consider investing in ACB stock right now? |
36717.0 | 2021-09-15 00:00:00 UTC | 3 Things to Watch For When Aurora Cannabis Reports Earnings This Month | ACB | https://www.nasdaq.com/articles/3-things-to-watch-for-when-aurora-cannabis-reports-earnings-this-month-2021-09-15 | nan | nan | After the markets close Sept. 21, Aurora Cannabis (NASDAQ: ACB) will release results for its fiscal fourth quarter, which ended June 30. The troubled Canadian pot company's stock is already down by about 20% year to date -- a sharp contrast to the sector benchmark Horizons Marijuana Life Sciences ETF, which is up 5% -- and the upcoming report could be pivotal in determining whether the share price gets out of the red for 2021.
Investors aren't expecting to see Aurora turn a profit in the final quarter of its fiscal year, but there are other ways that the company can show it is making progress. Here are the three main areas you should keep a close eye on when the company reports next week.
Image source: Getty Images.
1. Write-downs
Write-downs are common in the cannabis industry -- estimated plant values can change over time, and if some of a company's products aren't selling or have declined in quality, they may need to be written off. Although these are non-cash expenses that investors may be quick to dismiss, write-downs offer an important insight into how well a company's business is operating and how accurately it is valuing its assets.
Normally, companies like to do some financial housecleaning and adjust inflated valuations as the fiscal year comes to an end. In 2020, when Aurora reported its year-end numbers, it wrote down its goodwill and intangible assets by a staggering 1.6 billion Canadian dollars, bringing its total write-downs for the fiscal year to more than CA$1.8 billion. Sure, those numbers get backed out when calculating the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), but that doesn't mean investors should ignore them.
Big write-downs aren't supposed to be recurring or common, and investors shouldn't let companies off the hook for them just because they aren't cash expenses. Another big write-down this time around could lead to a sharp and sudden sell-off of Aurora's shares.
2. Operating expenses
Aurora has been slashing expenses left and right over the past year. From shutting down facilities to laying off employees, management has been making the business leaner in an effort to shore up its financials and get it closer to positive adjusted EBITDA.
As those spending cuts flow through the income statement, investors should expect to see some sort of progress toward adjusted profitability. In its fiscal third quarter, which ended March 31, the company's selling, general, and administrative (SG&A) expenses of CA$42 million were down 42% from the prior-year period. Its adjusted EBITDA loss of CA$24 million was also less than half of the CA$50 million loss it reported a year earlier.
However, Aurora still has more work to do if it wants to catch up to its more profitable cannabis sector peers. And when the company reported its fiscal Q3 numbers in May, management stated that there was another CA$60 million to CA$80 million in annual cost savings that it could achieve within 18 months.
3. Revenue
One of the reasons Aurora has fallen out of favor with growth investors is that the business has struggled to grow. In its fiscal Q3, sales of CA$55 million were down 25% year over year and down 18% from the fiscal second quarter. To make matters worse, there have been challenges in the consumer cannabis market, where Aurora has been seeing sales decline due to COVID-19 lockdowns, particularly in Ontario, Canada's largest province. And Ontario only began coming out of its third-wave lockdown in June, meaning we can expect to hear thatAurora was still feeling those headwinds in its Q4. (The Canadian government put new stay-at-home orders into effect on April 7.)
Given all this, it could prove tough for the company to even match last quarter's revenue figure. But investors may not buy that as an excuse, as the Canadian pot market is coming off another record month in June, during which sales topped CA$318.7 million -- up 1.7% from May's tally of CA$313.2 million.
Investors should hope for the best, but expect the worst
If Aurora avoids write-downs and makes substantial progress in improving its adjusted EBITDA number, that could be enough to offset investors' bearishness about a further decline in revenue. However, investors have probably learned all too well by now not to expect too much from this company on earnings day.
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 – 15 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 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. | After the markets close Sept. 21, Aurora Cannabis (NASDAQ: ACB) will release results for its fiscal fourth quarter, which ended June 30. The troubled Canadian pot company's stock is already down by about 20% year to date -- a sharp contrast to the sector benchmark Horizons Marijuana Life Sciences ETF, which is up 5% -- and the upcoming report could be pivotal in determining whether the share price gets out of the red for 2021. Sure, those numbers get backed out when calculating the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), but that doesn't mean investors should ignore them. | After the markets close Sept. 21, Aurora Cannabis (NASDAQ: ACB) will release results for its fiscal fourth quarter, which ended June 30. Its adjusted EBITDA loss of CA$24 million was also less than half of the CA$50 million loss it reported a year earlier. But investors may not buy that as an excuse, as the Canadian pot market is coming off another record month in June, during which sales topped CA$318.7 million -- up 1.7% from May's tally of CA$313.2 million. | After the markets close Sept. 21, Aurora Cannabis (NASDAQ: ACB) will release results for its fiscal fourth quarter, which ended June 30. Investors aren't expecting to see Aurora turn a profit in the final quarter of its fiscal year, but there are other ways that the company can show it is making progress. And when the company reported its fiscal Q3 numbers in May, management stated that there was another CA$60 million to CA$80 million in annual cost savings that it could achieve within 18 months. | After the markets close Sept. 21, Aurora Cannabis (NASDAQ: ACB) will release results for its fiscal fourth quarter, which ended June 30. Investors aren't expecting to see Aurora turn a profit in the final quarter of its fiscal year, but there are other ways that the company can show it is making progress. In its fiscal Q3, sales of CA$55 million were down 25% year over year and down 18% from the fiscal second quarter. |
36718.0 | 2021-09-12 00:00:00 UTC | Is All Hope Lost for Canopy Growth After Q1 Earnings? | ACB | https://www.nasdaq.com/articles/is-all-hope-lost-for-canopy-growth-after-q1-earnings-2021-09-12 | nan | nan | Canada-based Canopy Growth (NASDAQ: CGC) has been one of investors' all-time favorite pot stocks. The company earned itself an early mover advantage in Canada after it entered the medical cannabis market in the fourth quarter of fiscal 2016. But many external headwinds (lack of legal stores, illicit market sales, regulatory approvals, and more) in Canada pulled down the company's revenue. It has also not succeeded in achieving positive earnings before interest, tax, depreciation, and amortization (EBITDA) yet.
Its partnership deal with U.S. beverage giant Constellation Brands in 2018 was a highlight of the industry and has kept its balance sheet fortified while other Canadian companies struggled. But has this benefited Canopy's quarterly numbers in any way? Let's dive into its first-quarter (ended June 30) results to find out.
Image source: Getty Images.
Revenue is growing but is insufficient to bring in profits
Unlike peer Aurora Cannabis, Canopy has been successfully growing its revenue. But the revenue growth isn't enough to draw in profits. Its recent first-quarter net revenue came in at 136 million Canadian dollars, marking 23% growth year over year. All of the company's segments except international markets showed good growth compared with the year-ago period. Management stated the recreational market suffered some setbacks due to lockdowns in a few of the provinces, but this segment still saw growth.
Canadian recreational sales were up 35% year over year to CA$60 million.
Medical cannabis and others, including CBD-related products (CBD, or cannabidiol, is a non-psychoactive component of marijuana), grew by 26% year over year to CA$73.5 million.
Other consumer products (which includes business from vaporizer maker Storz & Bickel, skincare brand This Works, and others) jumped 39% to CA$43 million from the year-ago period.
International cannabis sales declined 8% to CA$19 million.
The company expanded its portfolio of cannabis derivatives (additional recreational products that Canada legalized in October 2019) in the first quarter of fiscal 2022. That included tetrahydrocannabinol (THC, the psychoactive component in cannabis) beverages named Tweed Iced Tea and Tweed Fizz seltzer, shipping in the current quarter. It launched Tweed Strawberry gummies in Ontario in Q4 2021, which has led the company to the "No. 2 market share in the total gummy category in Canada," according to management. It also launched a few more edibles under the Ace Valley brand in the first quarter.
Customers will likely see additional products in this vein, as Canopy plans to double its assortment of beverages and gummies on the market in the coming months. Management expects the acquisition of Ontario-based cannabis brand Ace Valley and Toronto-based Supreme Cannabis to make positive contributions over the coming quarters. Both acquisitions were completed this year.
There was a surprise in Q1 results, but ...
Many were excited to see a net profit of CA$390 million in the first-quarter earnings. However, management stated that this profit was driven by "other income totaling CA$581 million during Q1 2022 primarily attributable to non-cash fair value changes of CA$601 million." The Canadian marijuana companies report using International Financial Reporting Standards (IFRS). They often have to make accounting adjustments for their inventories, which then leads to the company reporting a "profit" that might not be real.
However, the company did manage to lower its selling, general, and administrative expenses to CA$112 million from CA$135 million in the year-ago period. This dip in expenses led to a lower EBITDA loss in the quarter -- CA$64 million, versus $92 million in Q1 2021. Management reassured shareholders that the company is on track to accelerate revenue growth to achieve positive adjusted EBITDA by the end of fiscal 2022. The target is achievable if management is able to continue lowering its expenses and growing its earnings.
High expectations from the U.S. cannabis market
Canopy's management has high hopes for the U.S. cannabis market, where it plans to expand with two of its partners, Constellation and Acreage Holdings. The deal with U.S.-based hemp company Acreage will not be finalized until legalization happens federally, and while prospects for that are rising, it is still a long shot.
I have always favored Canopy because I believed in its potential of bouncing back. But this high dependency on the U.S. market might change my mind. I agree it has some strong partners in the U.S. to establish a market presence. But when the U.S. legalizes marijuana, the domestic operators will be the first to gain from it. Multi-state operators like Trulieve Cannabis, Green Thumb Industries, and Cresco Labs are already in good financial standing to take advantage of a federally legal market.
To match up to such competition, Canopy will have to be profitable even before it enters the U.S. market. And to do so, it has to focus on growing its revenue in its home markets. Canopy is putting in a lot of effort, unlike peer Aurora Cannabis, whose promises are vague. But I am afraid Canopy's efforts also aren't enough to turn around its fate in another two years.
For investors who are still interested in Canadian pot stocks, Tilray would be a good choice for the long term. So far this year, Tilray's stock has gained 61%, while Canopy's shares are down 31%. Meanwhile, industry benchmark the Horizons Marijuana Life Sciences ETF has gained 9% in the same period.
CGC data by YCharts
Tilray's fourth-quarter (ended May 31) earnings were impressive. After its merger with Aphria, the company is stronger and more ready to expand in both Canada and the U.S. markets. While all hope for Canopy might not be completely lost, there are certainly better cannabis companies for your portfolio in Canada and beyond. With state legalization ramping up, the U.S. cannabis stocks are a better pick right now compared with Canopy Growth.
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 – 15 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 owns shares of and recommends Constellation Brands, Cresco Labs Inc., Green Thumb Industries, and Trulieve Cannabis Corp. 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. | Other consumer products (which includes business from vaporizer maker Storz & Bickel, skincare brand This Works, and others) jumped 39% to CA$43 million from the year-ago period. Multi-state operators like Trulieve Cannabis, Green Thumb Industries, and Cresco Labs are already in good financial standing to take advantage of a federally legal market. The Motley Fool owns shares of and recommends Constellation Brands, Cresco Labs Inc., Green Thumb Industries, and Trulieve Cannabis Corp. | High expectations from the U.S. cannabis market Canopy's management has high hopes for the U.S. cannabis market, where it plans to expand with two of its partners, Constellation and Acreage Holdings. Multi-state operators like Trulieve Cannabis, Green Thumb Industries, and Cresco Labs are already in good financial standing to take advantage of a federally legal market. The Motley Fool owns shares of and recommends Constellation Brands, Cresco Labs Inc., Green Thumb Industries, and Trulieve Cannabis Corp. | However, the company did manage to lower its selling, general, and administrative expenses to CA$112 million from CA$135 million in the year-ago period. High expectations from the U.S. cannabis market Canopy's management has high hopes for the U.S. cannabis market, where it plans to expand with two of its partners, Constellation and Acreage Holdings. Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. | High expectations from the U.S. cannabis market Canopy's management has high hopes for the U.S. cannabis market, where it plans to expand with two of its partners, Constellation and Acreage Holdings. So far this year, Tilray's stock has gained 61%, while Canopy's shares are down 31%. Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. |
36719.0 | 2021-09-10 00:00:00 UTC | CANADA STOCKS-Toronto index heads for weekly loss as cannabis stocks weigh | ACB | https://www.nasdaq.com/articles/canada-stocks-toronto-index-heads-for-weekly-loss-as-cannabis-stocks-weigh-2021-09-10 | nan | nan | By Amal S
Sept 10 (Reuters) - Canada's main stock index slipped on Friday and was on track to record weekly losses as a weakness in shares of cannabis companies offset a bounce in oil stocks, with investors also assessing the latest monthly jobs report.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE slipped 0.2% to 20,665.51 after gaining in early opening trade. The benchmark was on course to end the week 0.7% lower.
The country added 90,200 jobs in August, slightly below expectations, while the unemployment rate dropped to 7.1%, its lowest point since the onset of the coronavirus pandemic, Statistics Canada data showed, driving the Canadian dollar CAD= 0.5% higher.
"I think people are taking that (job data) as a positive," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
"That is a sign of confidence in the economy and in the reopening and that certainly is helping to boost the Canadian dollar this morning."
Bank of Canada Governor Tiff Macklem on Thursday said the Canadian economy is moving closer to the point where the central bank will no longer need to continue adding stimulus through its quantitative easing program.
The energy sector .SPTTEN rose 0.7%, leading gains as oil prices, one of Canada's major exports, climbed towards $73 a barrel. O/R
Miner Hudbay Minerals Inc HBM.TO jumped 7.2% after National Bank of Canada upgraded the stock to "outperform".
Pot producer Tilray TLRY.TO shed 1% after Piper Sandler cut its price target on the stock, saying it expects near-term headwinds in Canadian cannabis market. Its peers Canpoy Growth WEED.TO and Aurora Cannabis ACB.TO also fell 2.9% and 2.2%, respectively.
Global stock markets were buoyed by news of a call between Chinese leader Xi Jinping and U.S. President Joe Biden that raised hopes of a thaw in tensions between the world's top economies.
(Reporting by Amal S in Bengaluru; Editing by Anil D'Silva)
((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3677;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its peers Canpoy Growth WEED.TO and Aurora Cannabis ACB.TO also fell 2.9% and 2.2%, respectively. The country added 90,200 jobs in August, slightly below expectations, while the unemployment rate dropped to 7.1%, its lowest point since the onset of the coronavirus pandemic, Statistics Canada data showed, driving the Canadian dollar CAD= 0.5% higher. Pot producer Tilray TLRY.TO shed 1% after Piper Sandler cut its price target on the stock, saying it expects near-term headwinds in Canadian cannabis market. | Its peers Canpoy Growth WEED.TO and Aurora Cannabis ACB.TO also fell 2.9% and 2.2%, respectively. By Amal S Sept 10 (Reuters) - Canada's main stock index slipped on Friday and was on track to record weekly losses as a weakness in shares of cannabis companies offset a bounce in oil stocks, with investors also assessing the latest monthly jobs report. The country added 90,200 jobs in August, slightly below expectations, while the unemployment rate dropped to 7.1%, its lowest point since the onset of the coronavirus pandemic, Statistics Canada data showed, driving the Canadian dollar CAD= 0.5% higher. | Its peers Canpoy Growth WEED.TO and Aurora Cannabis ACB.TO also fell 2.9% and 2.2%, respectively. By Amal S Sept 10 (Reuters) - Canada's main stock index slipped on Friday and was on track to record weekly losses as a weakness in shares of cannabis companies offset a bounce in oil stocks, with investors also assessing the latest monthly jobs report. The country added 90,200 jobs in August, slightly below expectations, while the unemployment rate dropped to 7.1%, its lowest point since the onset of the coronavirus pandemic, Statistics Canada data showed, driving the Canadian dollar CAD= 0.5% higher. | Its peers Canpoy Growth WEED.TO and Aurora Cannabis ACB.TO also fell 2.9% and 2.2%, respectively. By Amal S Sept 10 (Reuters) - Canada's main stock index slipped on Friday and was on track to record weekly losses as a weakness in shares of cannabis companies offset a bounce in oil stocks, with investors also assessing the latest monthly jobs report. The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE slipped 0.2% to 20,665.51 after gaining in early opening trade. |
36720.0 | 2021-09-08 00:00:00 UTC | Why Aurora Cannabis, Canopy Growth, Hexo, and Sundial Growers Stocks All Tumbled Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-canopy-growth-hexo-and-sundial-growers-stocks-all-tumbled-today-2021 | nan | nan | What happened
Marijuana stocks slipped in Wednesday afternoon trading. Shares of Sundial Growers (NASDAQ: SNDL) are trading down 2.8% as of 2:35 p.m. EDT, followed by Aurora Cannabis (NASDAQ: ACB) with a 3.2% loss, Hexo (NASDAQ: HEXO) down 3.8%, and Canopy Growth (NASDAQ: CGC) bringing up the rear with a 4.1% decline.
I blame CNN.
Image source: Getty Images.
So what
Citing a report from the Canadian Medical Association Journal Tuesday, CNN warned that "whether you smoke it, vape it, or eat it as an edible, cannabis may be significantly increasing your risk of a heart attack" -- and that may have investors worried about investing in cannabis right now.
How big of a risk are we talking about? According to a CMAJ analysis of a study involving 33,000 adults ages 18 to 44, says CNN, cannabis users under age 45 suffer heart attacks at nearly twice the rate of people who don't. Researchers theorized that the "extremely potent" strains of marijuana in use today may be affecting users' heart rates, adding to "increasing evidence that this could potentially be harmful to you."
Additionally, CNN cited research from the American Heart Association warning that "cannabis can have negative interactions with ... cardiovascular medications like blood thinners."
Now what
Could there be other reasons that cannabis stocks are down -- like the fact that the whole stock market seems to be in the red today, for example? Absolutely. But marijuana stocks are getting hit particularly hard -- harder than most other stocks. And I suspect it's largely these new reports of health risks from marijuana use, piled atop other warnings of risks to users' mental health that appeared in the news back in July, that are the primary cause of today's declines in marijuana stocks in particular.
What's more, so long as legislation to legalize marijuana remains under consideration in the U.S. House and Senate, I expect we'll see more stories along these lines as lobbyists for and against legalization try to catch the attention of legislators, and the media tries to capitalize on the story. So, even now that legalization seems inevitable -- with so many states having legalized already, and Congress likely to follow in time -- long-term investors in marijuana stocks will need to exercise patience.
Legalization will come, but that doesn't mean it will be a smooth ride getting there.
10 stocks we like better than Canopy Growth Corp.
When our award-winning 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 Canopy Growth Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 9, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. 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 Sundial Growers (NASDAQ: SNDL) are trading down 2.8% as of 2:35 p.m. EDT, followed by Aurora Cannabis (NASDAQ: ACB) with a 3.2% loss, Hexo (NASDAQ: HEXO) down 3.8%, and Canopy Growth (NASDAQ: CGC) bringing up the rear with a 4.1% decline. Researchers theorized that the "extremely potent" strains of marijuana in use today may be affecting users' heart rates, adding to "increasing evidence that this could potentially be harmful to you." Additionally, CNN cited research from the American Heart Association warning that "cannabis can have negative interactions with ... cardiovascular medications like blood thinners." | Shares of Sundial Growers (NASDAQ: SNDL) are trading down 2.8% as of 2:35 p.m. EDT, followed by Aurora Cannabis (NASDAQ: ACB) with a 3.2% loss, Hexo (NASDAQ: HEXO) down 3.8%, and Canopy Growth (NASDAQ: CGC) bringing up the rear with a 4.1% decline. According to a CMAJ analysis of a study involving 33,000 adults ages 18 to 44, says CNN, cannabis users under age 45 suffer heart attacks at nearly twice the rate of people who don't. Additionally, CNN cited research from the American Heart Association warning that "cannabis can have negative interactions with ... cardiovascular medications like blood thinners." | Shares of Sundial Growers (NASDAQ: SNDL) are trading down 2.8% as of 2:35 p.m. EDT, followed by Aurora Cannabis (NASDAQ: ACB) with a 3.2% loss, Hexo (NASDAQ: HEXO) down 3.8%, and Canopy Growth (NASDAQ: CGC) bringing up the rear with a 4.1% decline. Now what Could there be other reasons that cannabis stocks are down -- like the fact that the whole stock market seems to be in the red today, for example? And I suspect it's largely these new reports of health risks from marijuana use, piled atop other warnings of risks to users' mental health that appeared in the news back in July, that are the primary cause of today's declines in marijuana stocks in particular. | Shares of Sundial Growers (NASDAQ: SNDL) are trading down 2.8% as of 2:35 p.m. EDT, followed by Aurora Cannabis (NASDAQ: ACB) with a 3.2% loss, Hexo (NASDAQ: HEXO) down 3.8%, and Canopy Growth (NASDAQ: CGC) bringing up the rear with a 4.1% decline. So what Citing a report from the Canadian Medical Association Journal Tuesday, CNN warned that "whether you smoke it, vape it, or eat it as an edible, cannabis may be significantly increasing your risk of a heart attack" -- and that may have investors worried about investing in cannabis right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
36721.0 | 2021-09-08 00:00:00 UTC | 1 Key Number Cannabis Investors Cannot Afford to Ignore | ACB | https://www.nasdaq.com/articles/1-key-number-cannabis-investors-cannot-afford-to-ignore-2021-09-08 | nan | nan | When marijuana companies report their earnings, the focus for investors typically goes to how much their sales grew and how profitable the businesses are. It's not often that these companies do well on both the top and bottom lines -- especially given the youth of this industry, which is still in its early growth stages. However, investors need to look beyond just those two areas.
What's arguably more important than revenue growth and profitability is cash flow from operations. The reason is that if a company is burning through cash from its day-to-day activities, it can be a sign that share issues and dilution are inevitable, which can offset any bullishness that sales and profit growth might generate. For cannabis investors, it can be a costly mistake to brush past the statement of cash flow.
Image source: Getty Images.
Poor cash flow can predict a need for share offerings
If a business is burning through cash instead of bringing it in, share issues might be inevitable. And news of an offering can be downright catastrophic. Cannabis producer Hexo (NASDAQ: HEXO) announced a $140 million offering on Aug. 20, and the stock ended up crashing by more than 25% on the day.
But a quick look at the company's operations could have easily predicted this. In the trailing 12 months, Hexo burned through 18 million Canadian dollars just from its day-to-day operations. Although that might not seem like a huge amount, given that Hexo reported CA$194 million of cash on hand as of June 14 when it released its third-quarter results (period ending April 30), eagle-eyed investors would have noted that the company has been active in acquiring other marijuana businesses.
Intent on becoming one of the top three companies in the Canadian pot market, Hexo has been bolstering its operations through acquisitions. One of the largest deals the company announced this year was its plan to buy licensed producer Redecan, which it says will put it "on the verge of [becoming] the no. 1 licensed producer by recreational market share." Hexo funded the CA$925 million deal through a combination of cash and stock.
There's no guarantee that Hexo is done, either. Even if it is content with its operations in Canada, it is also eyeing opportunities in the U.S. for when that market opens up (once the federal government legalizes pot). In May, Hexo announced it was acquiring a cannabis facility in Colorado. And while the cost was modest at just $6 million, the cost to retrofit and upgrade the facility could run Hexo close to $50 million.
For a business that isn't generating positive cash from its operations, these types of deals can spell problems down the road.
Should investors avoid stocks that have negative cash flow?
If you're a risk-averse investor, you should definitely steer clear of stocks that are growing their operations but also burning through cash. Hexo and marijuana producer Aurora Cannabis (NASDAQ: ACB) are two companies that often dip into the equity markets to raise money. And since 2020, both have been among the worst investments in the industry, down more than 60%:
HEXO data by YCharts.
It has been a bumpy ride for the cannabis sector, but the Horizons Marijuana Life Sciences ETF is still in a net positive position with returns of just over 1% during this time frame. The same cannot be said for these two cannabis operators.
Like Hexo, Aurora Cannabis has also been burning through significant cash; in the past four quarters, the company has used CA$280 million to fund its daily activities. And if you include investments in property and equipment, its cash burn rises to a negative CA$359 million. Even though Aurora hasn't been busy with acquisitions, the marijuana company's constant need for cash is evident -- when it announced a $300 million at-the-market offering program in May that would allow it to sell shares at its convenience, Aurora reported a cash position of CA$525 million, which isn't a terribly large buffer given its high rate of cash burn.
Both Aurora and Hexo are likely to issue more shares in the future, at least until they can start consistently generating positive cash flow. And while Hexo is closer to that state than Aurora, its thirst for acquisitions could negate that. Even if you believe the moves that both companies are making today will lead to positive results down the road, I'd argue there are simply better options out there for cannabis investors.
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 – 15 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 recommends HEXO Corp. 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. | Hexo and marijuana producer Aurora Cannabis (NASDAQ: ACB) are two companies that often dip into the equity markets to raise money. The reason is that if a company is burning through cash from its day-to-day activities, it can be a sign that share issues and dilution are inevitable, which can offset any bullishness that sales and profit growth might generate. Although that might not seem like a huge amount, given that Hexo reported CA$194 million of cash on hand as of June 14 when it released its third-quarter results (period ending April 30), eagle-eyed investors would have noted that the company has been active in acquiring other marijuana businesses. | Hexo and marijuana producer Aurora Cannabis (NASDAQ: ACB) are two companies that often dip into the equity markets to raise money. Cannabis producer Hexo (NASDAQ: HEXO) announced a $140 million offering on Aug. 20, and the stock ended up crashing by more than 25% on the day. Like Hexo, Aurora Cannabis has also been burning through significant cash; in the past four quarters, the company has used CA$280 million to fund its daily activities. | Hexo and marijuana producer Aurora Cannabis (NASDAQ: ACB) are two companies that often dip into the equity markets to raise money. Although that might not seem like a huge amount, given that Hexo reported CA$194 million of cash on hand as of June 14 when it released its third-quarter results (period ending April 30), eagle-eyed investors would have noted that the company has been active in acquiring other marijuana businesses. Like Hexo, Aurora Cannabis has also been burning through significant cash; in the past four quarters, the company has used CA$280 million to fund its daily activities. | Hexo and marijuana producer Aurora Cannabis (NASDAQ: ACB) are two companies that often dip into the equity markets to raise money. Cannabis producer Hexo (NASDAQ: HEXO) announced a $140 million offering on Aug. 20, and the stock ended up crashing by more than 25% on the day. Intent on becoming one of the top three companies in the Canadian pot market, Hexo has been bolstering its operations through acquisitions. |
36722.0 | 2021-09-05 00:00:00 UTC | 1 Stock I'd Avoid at All Costs | ACB | https://www.nasdaq.com/articles/1-stock-id-avoid-at-all-costs-2021-09-05 | nan | nan | Ever since the coronavirus pandemic hit, the cannabis industry has been on fire. Marijuana sales got a boost amid lockdowns both in Canada and the U.S., and continued expansion of state legalization acted as an added benefit to rising U.S. sales.
Canada, however, has faced many external headwinds, including regulatory hurdles, a lack of legal stores, black-market sales cutting into traffic, and more. Despite a surge in pot sales across the country, Canadian producer Aurora Cannabis (NASDAQ: ACB) has failed to take advantage. The company sells medical and recreational products in the Great White North, and I fear its less-than-desirable performance so far this year is unlikely to improve anytime soon.
Image source: Getty Images.
Aurora's future looks bleak
My viewpoint is hardly surprising, given that Aurora Cannabis has been repeatedly disappointing investors since 2020. Its failure to grow revenue and achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) is hard to ignore. And while this is to some extent an industry issue -- peer Canopy Growth is also not EBITDA-positive yet -- the latter company is making a big effort to get there. Meanwhile, Aurora is failing to cut its expenses and continues to excessively dilute its stock to raise cash.
In January, Aurora sold 12,000,000 units of the Company for total gross proceeds of $125 million. The company stated in its press release that "each Unit will be comprised of one common share of the Company (a "Common Share") and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a "Warrant")."
That dilution did boost its cash position; the company noted that at the end of the third quarter (ended March 31), it had 525 million Canadian dollars in cash and CA$90 million of outstanding term debt. And in May, Aurora announced its new plan of selling up to $300 million worth of its common shares in an at-the-market offering.
In the Q3earnings call management said they expect to clear off this debt over the coming months through cash they plan to obtain from "non-dilutive cash inflows from non-core asset sales and grants." That said, too much share dilution is usually a sign a company is failing to raise capital through any other means, which usually doesn't sit well with investors.
In Aurora's third quarter, its total revenue declined 21% year over year to CA$55 million. Its recreational cannabis sales fell 53% to CA$18 million from the year-ago period. The worst part was that Aurora even saw a dip in domestic medical cannabis sales, which fell 17% year over year to CA$36 million in the recent quarter. Even though it had an early mover advantage in Canada, it still hasn't been able to establish dominance in the medical cannabis segment in the region. It started generating sales from medical cannabis in January 2016.
Meanwhile, for the same quarter ended March 31, peer Canopy Growth saw a 30% jump in medical cannabis sales to CA$75 million. It did manage to reduce its EBITDA losses significantly, to CA$24 million from CA$49 million in the year-ago period, but don't get too excited -- that's still not a sign that the company is recovering. Management does claim that the company will be EBITDA-positive in the next 18 months. But it has been promising the same since the fourth quarter of fiscal 2019 and has failed repetitively. In fact, losses have kept mounting thereafter.
Through various cost-cutting strategies under its facility rationalization plan announced last year, the company has realized cost savings of CA$300 million. Aurora hopes to generate another CA$60 million to CA$80 million in annual savings over the next 18 months. These targets still seem far-fetched given Aurora's history of consistently missing its targets and lacking any clear plan for the future.
Aurora Cannabis needs to step up its game
On July 15, Aurora delivered a single cannabis shipment worth CA$8 million to Israel. The company has a strategic supply agreement with Israel-based Cantek Global and intends to supply a minimum of 4,000 kg of bulk dried flower annually. This falls under its strategy to enhance its medical cannabis portfolio in key international markets, according to management. Israel has stricter border controls that keep the black market in check, so its strong medical cannabis market could serve as a good opportunity for Aurora.
Aurora Cannabis is estimated to report its fourth-quarter earnings on Sept. 23. We will know more of its plans for 2021 then, though I do not have much hope for this company, at least this year. It could take two to three years minimum for the company to start seeing some noticeable growth in its revenue numbers and become profitable.
Aurora also has failed to acquire a deep-pocketed partner, which peers Canopy Growth and Cronos Group have both managed to do. U.S. beverage giant Constellation Brands has a large investment in Canopy, while tobacco company Altria Group holds a stake in Cronos. Such financial support could have helped with regulating costs and expanding in the U.S. cannabis market, and its lack is making it difficult for the company to introduce more derivatives (vapes, edibles, beverages, and more). Aurora launched a few cannabis-infused edibles and some vape products in December 2019, but since then the company has made no progress with these products.
That's unfortunate since these high-margin derivatives can help Aurora lift its revenue and achieve profitability. Estimates show the cannabis derivatives market could be worth CA$2 billion annually, but Aurora is missing out on this opportunity.
There are better options
The rapidly expanding U.S. cannabis market is also a long shot for Aurora. Even if federal legalization happens anytime soon, the company is not financially stable enough to expand in the blazing U.S. market.
Most of the domestic players -- like Trulieve Cannabis, Cresco Labs, and Green Thumb Industries -- have already established a strong footing, making them tough competition for Aurora.
These multistate operators are better cannabis picks right now for the long term. An investment as low as $1,000 in these stocks now could grow to a considerable amount 10 years down the line.
That said, for investors who still want to invest in Canadian stocks, Tilray -- a stronger, profitable company since its merger with Aphria, boasting better financials, a strong balance sheet, growing revenues, and exciting growth opportunities -- is a much better option. So far this year, Aurora's shares have fallen 14% while Tilray's stock has gained 64%, compared to the industry benchmark, the Horizons Marijuana Life Sciences ETF, which has gained 9%.
Wall Street analysts expect Aurora to fall by 6% over the next 12 months. Until Aurora shows some strong growth numbers, I would advise you to steer clear of this cannabis stock.
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 – 15 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 owns shares of and recommends Cresco Labs Inc., Green Thumb Industries, and Trulieve Cannabis Corp. 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. | Despite a surge in pot sales across the country, Canadian producer Aurora Cannabis (NASDAQ: ACB) has failed to take advantage. Such financial support could have helped with regulating costs and expanding in the U.S. cannabis market, and its lack is making it difficult for the company to introduce more derivatives (vapes, edibles, beverages, and more). Most of the domestic players -- like Trulieve Cannabis, Cresco Labs, and Green Thumb Industries -- have already established a strong footing, making them tough competition for Aurora. | Despite a surge in pot sales across the country, Canadian producer Aurora Cannabis (NASDAQ: ACB) has failed to take advantage. The company stated in its press release that "each Unit will be comprised of one common share of the Company (a "Common Share") and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a "Warrant")." Most of the domestic players -- like Trulieve Cannabis, Cresco Labs, and Green Thumb Industries -- have already established a strong footing, making them tough competition for Aurora. | Despite a surge in pot sales across the country, Canadian producer Aurora Cannabis (NASDAQ: ACB) has failed to take advantage. The company stated in its press release that "each Unit will be comprised of one common share of the Company (a "Common Share") and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a "Warrant")." The worst part was that Aurora even saw a dip in domestic medical cannabis sales, which fell 17% year over year to CA$36 million in the recent quarter. | Despite a surge in pot sales across the country, Canadian producer Aurora Cannabis (NASDAQ: ACB) has failed to take advantage. In Aurora's third quarter, its total revenue declined 21% year over year to CA$55 million. It did manage to reduce its EBITDA losses significantly, to CA$24 million from CA$49 million in the year-ago period, but don't get too excited -- that's still not a sign that the company is recovering. |
36723.0 | 2021-09-03 00:00:00 UTC | CANADA STOCKS-TSX futures rise as commodity prices strengthen | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-futures-rise-as-commodity-prices-strengthen-2021-09-03 | nan | nan | Sept 3 (Reuters) - Futures for Canada's main stock index hit a record high on Friday, as oil and bullion strengthened, and the benchmark index was set to gain for a second straight week.
Oil prices were largely steady on Friday as a rebound in global demand was widely expected, while gold prices were propped up by a weaker dollar. O/RGOL/
September futures on the S&P/TSX index SXFc1 were up 0.17% at 7:00 a.m. ET.
Statistics Canada is expected to post labor productivity rate for the second quarter at 08:30 a.m. ET.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 0.5% at 20,795.12, a record closing level, on Thursday. .TO
Global equities held near record highs as investors awaited U.S. job figures due later in the day for cues on the timing of the Federal Reserve's asset purchase tapering. The Bank of Canada is due to make an interest rate decision next week.
The Dow Jones Industrial Average e-mini futures 1YMc1 were up 0.18% at 7:00 a.m. ET, while S&P 500 e-mini futures ESc1 were up 0.2% and the Nasdaq 100 e-mini futures NQc1 were up 0.13%..N
TOP STORIES TOP/CAN
Enbridge ENB.TO on Thursday said its LaRose compressor station in southern Louisiana suffered damage as a result of Hurricane Ida and that it was still working to access its facilities in Venice, Louisiana.
ANALYST RESEARCH HIGHLIGHTS RCH/CA
Aurora Cannabis Inc ACB.TO: Jefferies raises rating to "hold"
BRP Inc DOO.TO: CIBC raises to "outperform" from "neutral"
Cameco Corp CCO.TO: RBC raises to "sector perform" from "underperform"
COMMODITIES AT 7:00 a.m. ET
Gold futures GCc2: $1813.2; +0.21% GOL/
US crude CLc1: $70.23; +0.37% O/R
Brent crude LCOc1: $73.5; +0.64% O/R
U.S. ECONOMIC DATA DUE ON FRIDAY
0830 Non-farm payrolls for Aug : Expected 750,000; Prior 943,000
0830 Private payrolls for Aug : Expected 665,000; Prior 703,000
0830 Manufacturing payrolls for Aug : Expected 25,000; Prior 27,000
0830 Government payrolls for Aug : Prior 240,000
0830 Unemployment rate for Aug : Expected 5.2%; Prior 5.4%
0830 Average earnings mm for Aug : Expected 0.3%; Prior 0.4%
0830 Average earnings yy for Aug : Expected 4.0%; Prior 4.0%
0830 Average workweek hours for Aug : Expected 34.8 hrs; Prior 34.8 hrs
0830 Labor force partic for Aug : Prior 61.7%
0830 U6 underemployment for Aug : Prior 9.2%
0945 Markit Composite Final PMI for Aug : Prior 55.4
0945 Markit Services PMI Final for Aug : Prior 55.2
1000 ISM N-Manufacturing PMI for Aug : Expected 61.5; Prior 64.1
1000 ISM N-Manufacturing Business Activity for Aug : Expected 62.8; Prior 67.0
1000 ISM N-Manufacturing Employment Index for Aug : Prior 53.8
1000 ISM N-Manufacturing New Orders Index for Aug : Prior 63.7
1000 ISM N-Manufacturing Price Paid Index for Aug : Prior 82.3
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report .TO
Canadian dollar and bonds report CAD/CA/
Reuters global stocks poll for Canada EQUITYPOLL1, EPOLL/CA
Canadian markets directory CANADA
($1= C$1.25)
(Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi)
((Amal.S@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 3677;))
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.TO: Jefferies raises rating to "hold" BRP Inc DOO.TO: CIBC raises to "outperform" from "neutral" Cameco Corp CCO.TO: RBC raises to "sector perform" from "underperform" COMMODITIES AT 7:00 a.m. Sept 3 (Reuters) - Futures for Canada's main stock index hit a record high on Friday, as oil and bullion strengthened, and the benchmark index was set to gain for a second straight week. The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 0.5% at 20,795.12, a record closing level, on Thursday. | Aurora Cannabis Inc ACB.TO: Jefferies raises rating to "hold" BRP Inc DOO.TO: CIBC raises to "outperform" from "neutral" Cameco Corp CCO.TO: RBC raises to "sector perform" from "underperform" COMMODITIES AT 7:00 a.m. Sept 3 (Reuters) - Futures for Canada's main stock index hit a record high on Friday, as oil and bullion strengthened, and the benchmark index was set to gain for a second straight week. 0830 Non-farm payrolls for Aug : Expected 750,000; Prior 943,000 0830 Private payrolls for Aug : Expected 665,000; Prior 703,000 0830 Manufacturing payrolls for Aug : Expected 25,000; Prior 27,000 0830 Government payrolls for Aug : Prior 240,000 0830 Unemployment rate for Aug : Expected 5.2%; Prior 5.4% 0830 Average earnings mm for Aug : Expected 0.3%; Prior 0.4% 0830 Average earnings yy for Aug : Expected 4.0%; Prior 4.0% 0830 Average workweek hours for Aug : Expected 34.8 hrs; Prior 34.8 hrs 0830 Labor force partic for Aug : Prior 61.7% 0830 U6 underemployment for Aug : Prior 9.2% 0945 Markit Composite Final PMI for Aug : Prior 55.4 0945 Markit Services PMI Final for Aug : Prior 55.2 1000 ISM N-Manufacturing PMI for Aug : Expected 61.5; Prior 64.1 1000 ISM N-Manufacturing Business Activity for Aug : Expected 62.8; Prior 67.0 1000 ISM N-Manufacturing Employment Index for Aug : Prior 53.8 1000 ISM N-Manufacturing New Orders Index for Aug : Prior 63.7 1000 ISM N-Manufacturing Price Paid Index for Aug : Prior 82.3 | Aurora Cannabis Inc ACB.TO: Jefferies raises rating to "hold" BRP Inc DOO.TO: CIBC raises to "outperform" from "neutral" Cameco Corp CCO.TO: RBC raises to "sector perform" from "underperform" COMMODITIES AT 7:00 a.m. Sept 3 (Reuters) - Futures for Canada's main stock index hit a record high on Friday, as oil and bullion strengthened, and the benchmark index was set to gain for a second straight week. 0830 Non-farm payrolls for Aug : Expected 750,000; Prior 943,000 0830 Private payrolls for Aug : Expected 665,000; Prior 703,000 0830 Manufacturing payrolls for Aug : Expected 25,000; Prior 27,000 0830 Government payrolls for Aug : Prior 240,000 0830 Unemployment rate for Aug : Expected 5.2%; Prior 5.4% 0830 Average earnings mm for Aug : Expected 0.3%; Prior 0.4% 0830 Average earnings yy for Aug : Expected 4.0%; Prior 4.0% 0830 Average workweek hours for Aug : Expected 34.8 hrs; Prior 34.8 hrs 0830 Labor force partic for Aug : Prior 61.7% 0830 U6 underemployment for Aug : Prior 9.2% 0945 Markit Composite Final PMI for Aug : Prior 55.4 0945 Markit Services PMI Final for Aug : Prior 55.2 1000 ISM N-Manufacturing PMI for Aug : Expected 61.5; Prior 64.1 1000 ISM N-Manufacturing Business Activity for Aug : Expected 62.8; Prior 67.0 1000 ISM N-Manufacturing Employment Index for Aug : Prior 53.8 1000 ISM N-Manufacturing New Orders Index for Aug : Prior 63.7 1000 ISM N-Manufacturing Price Paid Index for Aug : Prior 82.3 | Aurora Cannabis Inc ACB.TO: Jefferies raises rating to "hold" BRP Inc DOO.TO: CIBC raises to "outperform" from "neutral" Cameco Corp CCO.TO: RBC raises to "sector perform" from "underperform" COMMODITIES AT 7:00 a.m. Sept 3 (Reuters) - Futures for Canada's main stock index hit a record high on Friday, as oil and bullion strengthened, and the benchmark index was set to gain for a second straight week. The Bank of Canada is due to make an interest rate decision next week. |
36724.0 | 2021-09-02 00:00:00 UTC | 3 Pot Stocks to Avoid Like the Plague in September | ACB | https://www.nasdaq.com/articles/3-pot-stocks-to-avoid-like-the-plague-in-september-2021-09-02 | nan | nan | There's a very good chance that legal cannabis could be one of the decade's most impressive growth trends.
According to New Frontier Data, the U.S. weed market is on track to grow by an annualized average of 21% through 2025. This would place annual pot sales at north of $41 billion by mid-decade. Meanwhile, cannabis-focused analytics company BDSA expects Canadian weed sales to more than double from $2.6 billion to $6.4 billion between 2020 and 2026. There's plenty of room in these robust growth projections for certain marijuana stocks to thrive.
However, not all pot stocks are going to be winners. Among the veritable sea of fast-growing cannabis stocks are three that should be avoided like the plague in September.
Image source: Getty Images.
Sundial Growers
In March, I effectively referred to Sundial Growers (NASDAQ: SNDL) as the worst cannabis stock money could buy. Even with the company's share price being halved since that declaration, I still believe Sundial is one of the worst ways to put your money to work in the cannabis space.
Sundial has one thing going for it: cash. Management turned on the capital-raising faucet in October 2020 and hasn't shut the valve off since. As of early August, the company was sitting on approximately 1.2 billion Canadian dollars ($953 million) in cash, marketable securities, and long-term investments. With no debt, the concerns of bankruptcy are long gone. Unfortunately, this bountiful cash pile is where the good news ends.
The only way Sundial has been able to raise capital is buy issuing stock -- a lot of stock. In the nine months between Sept. 30, 2020 and June 30, 2020, Sundial's share count ballooned from 509 million to 2 billion. All the while, longtime shareholders have been pummeled by this incessant dilution. With the company's share price stuck below $1, a reverse split will potentially be necessary to avoid delisting from the Nasdaq exchange.
What makes this ongoing capital-raising activity especially maddening is that management isn't exactly certain what it's going to do with all of this cash. It's made an acquisition and has sort of become a cannabis-focused special purpose acquisition company. But continuing to raise cash without any concrete plan is a slap in the face to the company's shareholders.
If you need another good reason to avoid Sundial, consider that its sales have headed in reverse as Canadian weed revenue expands. Switching from wholesale to retail meant rebuilding its business from the ground up. Through the first half of 2021, Sundial has generated only $19.5 million in gross cannabis revenue, which is down 40% from the comparable year-ago period.
With the exception of its cash, Sundial has nothing going for it.
Image source: Getty Images.
Hexo
Another Canadian pot stock that's absolutely raking its shareholders over the coals and deserves to be avoided like the plague is Quebec-based Hexo (NASDAQ: HEXO).
When Canada legalized recreational marijuana in October 2018, I truly thought Hexo was going to be a winner. The company had formed a joint venture (known as Truss) with Molson Coors Beverage to create a line of cannabinoid-infused beverages. It also secured a five-year wholesale agreement for an aggregate of 200,000 kilos of cannabis from its home province of Quebec. However, time has shown that nothing is a given in the investment world.
Aside from federal and provincial-level regulatory miscues that have delayed the opening of dispensaries in key Canadian provinces (ahem, Ontario), Hexo's biggest issue has been its acquisition-happy management team. For example, Hexo grossly overpaid for its Newstrike Brands buyout in 2019. While this purchase was designed to expand its production capacity, this added output was never necessary. Eventually, Newstrike's cultivation facility was sold for pennies on the dollar and Hexo took a significant writedown.
What's Hexo done in the two years since this ill-timed purchase? You guessed it: Made more acquisitions with capital it simply doesn't have. It acquired the struggling Zenabis Global by issuing stock, has nearly closed the purchase of 48North Cannabis, which is an all-stock deal, and issued tens of millions of new shares to acquire Redecan, Canada's largest private licensed producer. While I will note that Redecan is profitable on an operating basis, Hexo's track record has always been to grossly overpay for assets that it can't afford.
Taking into account the company's 1-for-4 reverse split that was enacted in December to avoid a possible delisting for a low share price, Hexo's outstanding share count has surged from a little over 60 million two years ago to over 201 million today.
With a persistent cash outflow, there's simply no reason for investors to gamble on Hexo when so many other great names are worthy of investment in the cannabis space.
Image source: Getty Images.
Aurora Cannabis
You didn't think I'd forgotten about Aurora Cannabis (NASDAQ: ACB), did you? Sundial might be one of the worst-run companies in the pot industry, but Aurora Cannabis has long been a fixture of this monthly column of pot stocks to avoid.
Similar to Hexo, Aurora Cannabis looked as if it was set for success when the green flag waved in Canada. It had 15 production facilities and was projected to be the world's largest producer of weed, with over 600,000 kilos a year, when fully operational. But just like Hexo, management was too overzealous with its production expectations and wildly overpaid for roughly a dozen acquisitions.
How badly did Aurora overpay? After accounting for tangible and intangible assets, the "premium" one company pays for another is recorded as goodwill on its balance sheet. By the beginning of calendar year 2020, Aurora was carrying CA$3.17 billion in goodwill. A significant portion of this goodwill has since been written down, with half of Aurora's total assets (about CA$2.8 billion) whittling away since the beginning of 2020.
Like Sundial and Hexo, Aurora Cannabis is a serial share diluter. In close to a seven-year stretch between June 2014 and May 2021, Aurora's outstanding share count rocketed from around 1.3 million shares to about 198 million shares. With the company still not generating positive cash flow from its operations, ongoing share-based dilution remains a constant threat to its investors.
And that brings me to the final point: Aurora's ghastly operating performance. Even with aggressive cost-cutting, production facility closures, and asset sales, Aurora's push to positive earnings before interest, taxes, depreciation, and amortization (EBITDA) keeps getting kicked further down the line. That's a problem considering the company's debt is tied to covenants requiring it to hit positive EBITDA.
Aurora was a catchy name early on in the cannabis movement, but it's clear-cut proof that being first doesn't always mean a company will be a long-term winner.
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 – 15 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
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. and Nasdaq. 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 You didn't think I'd forgotten about Aurora Cannabis (NASDAQ: ACB), did you? As of early August, the company was sitting on approximately 1.2 billion Canadian dollars ($953 million) in cash, marketable securities, and long-term investments. Aside from federal and provincial-level regulatory miscues that have delayed the opening of dispensaries in key Canadian provinces (ahem, Ontario), Hexo's biggest issue has been its acquisition-happy management team. | Aurora Cannabis You didn't think I'd forgotten about Aurora Cannabis (NASDAQ: ACB), did you? Sundial Growers In March, I effectively referred to Sundial Growers (NASDAQ: SNDL) as the worst cannabis stock money could buy. As of early August, the company was sitting on approximately 1.2 billion Canadian dollars ($953 million) in cash, marketable securities, and long-term investments. | Aurora Cannabis You didn't think I'd forgotten about Aurora Cannabis (NASDAQ: ACB), did you? Hexo Another Canadian pot stock that's absolutely raking its shareholders over the coals and deserves to be avoided like the plague is Quebec-based Hexo (NASDAQ: HEXO). Taking into account the company's 1-for-4 reverse split that was enacted in December to avoid a possible delisting for a low share price, Hexo's outstanding share count has surged from a little over 60 million two years ago to over 201 million today. | Aurora Cannabis You didn't think I'd forgotten about Aurora Cannabis (NASDAQ: ACB), did you? When Canada legalized recreational marijuana in October 2018, I truly thought Hexo was going to be a winner. Sundial might be one of the worst-run companies in the pot industry, but Aurora Cannabis has long been a fixture of this monthly column of pot stocks to avoid. |
36725.0 | 2021-08-31 00:00:00 UTC | Why Aurora Cannabis, Tilray, and Sundial Growers Stocks Are Smoking Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-tilray-and-sundial-growers-stocks-are-smoking-today-2021-08-31 | nan | nan | What happened
Marijuana stocks Sundial Growers (NASDAQ: SNDL), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NASDAQ: ACB) are all hopping in afternoon trading on Tuesday. As of 1:05 p.m. EDT, Sundial was up a solid 4.2%, Tilray had gained 5%, and Aurora Cannabis led the pack with a 5.2% gain.
To find out why, we need to look south of the border.
Image source: Getty Images.
So what
As you're probably aware, the fate of marijuana legalization legislation in the U.S. is still up in the air, stalled while Senate Democrats try to figure a way to pass a law that does not currently have the votes to pass. But the picture is a bit brighter down in Mexico.
In Mexico, the Supreme Court has already ruled that it is unconstitutional to ban personal use (and even cultivation) of marijuana. Logistically, Mexico's Congress still hasn't quite managed to pass a law decriminalizing cannabis, but that could soon change, reports MarijuanaMoment.net today.
Already, in the last legislative session, both Mexico's Senate and its Chamber of Deputies passed laws legalizing cannabis (although they were not quite in sync). In a statement Monday, Sen. Julio Ramón Menchaca Salazar of the majority Morena Party promised to put harmonizing the two bills on the agenda for the new legislative session that begins tomorrow.
Now what
What will this mean for marijuana stocks? On the one hand, assuming legislators take up where they left off last session, it could soon become legal in Mexico for persons 18 years or older to grow their own marijuana (as many as six plants per citizen), which might not be great news for commercial demand.
On the other hand, for folks who prefer to outsource their agriculture, and buy marijuana rather than grow it, the law would permit people to buy, possess, and use up to 28 grams (or 1 ounce) of cannabis at a time.
That's the same possession limit as you will find in California or Colorado, for example. And it suggests that Mexico is now on the cusp of becoming the next big (legal) market for weed.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 9, 2021
Rich Smith 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. | What happened Marijuana stocks Sundial Growers (NASDAQ: SNDL), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NASDAQ: ACB) are all hopping in afternoon trading on Tuesday. Logistically, Mexico's Congress still hasn't quite managed to pass a law decriminalizing cannabis, but that could soon change, reports MarijuanaMoment.net today. In a statement Monday, Sen. Julio Ramón Menchaca Salazar of the majority Morena Party promised to put harmonizing the two bills on the agenda for the new legislative session that begins tomorrow. | What happened Marijuana stocks Sundial Growers (NASDAQ: SNDL), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NASDAQ: ACB) are all hopping in afternoon trading on Tuesday. Already, in the last legislative session, both Mexico's Senate and its Chamber of Deputies passed laws legalizing cannabis (although they were not quite in sync). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | What happened Marijuana stocks Sundial Growers (NASDAQ: SNDL), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NASDAQ: ACB) are all hopping in afternoon trading on Tuesday. Already, in the last legislative session, both Mexico's Senate and its Chamber of Deputies passed laws legalizing cannabis (although they were not quite in sync). See the 10 stocks *Stock Advisor returns as of August 9, 2021 Rich Smith has no position in any of the stocks mentioned. | What happened Marijuana stocks Sundial Growers (NASDAQ: SNDL), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NASDAQ: ACB) are all hopping in afternoon trading on Tuesday. Now what What will this mean for marijuana stocks? 10 stocks we like better than Aurora Cannabis Inc. |
36726.0 | 2021-08-28 00:00:00 UTC | 3 Cannabis Stocks to Avoid Now | ACB | https://www.nasdaq.com/articles/3-cannabis-stocks-to-avoid-now-2021-08-28 | nan | nan | If the government could just get out of the way of marijuana, it could realize its full potential as a massive growth opportunity. Unfortunately, a tax and regulatory morass on the state level, coupled with its continuing classification as an illegal substance federally, has put roadblocks in front of otherwise good pot stocks.
Other cannabis stocks, however, seem to go out of their way to sabotage themselves and their investors. Canopy Growth (NASDAQ: CGC), Charlotte's Web Holdings (OTC: CWBHF), and Aurora Cannabis (NASDAQ: ACB) should be avoided because of self-inflicted wounds that hold them back.
Image source: Getty Images.
Oh, Canada
Eric Volkman (Canopy Growth): I feel that Canopy Growth is not only a stock to avoid now, but likely one to keep away from well into the future.
Since the 2018 entry of a strategic (and deep-pocketed) partner, liquor company Constellation Brands (NYSE: STZ), Canopy Growth has been seen as one of the sector's incumbents. But prominence and a dedicated investor do not necessarily a good stock make.
Canopy Growth is a poster child for the typically loss-making marijuana industry, with consistent annual bottom-line deficits that have deepened worryingly of late.
A total of 1.74 billion Canadian dollars ($1.37 billion) was the damage in full-year 2020, which spooked even the hardy investors who endured the 2019 loss of over CA$1.3 billion ($1 billion). Which, in turn, was nearly double the CA$736 million ($579 million) shortfall of 2018.
Canopy Growth spends a lot of money on asset buys, attempting to broaden its product range, widen its network, and take some market share.
A clutch of acquisitions (the latest one being quality Canadian producer Supreme) have certainly bulked it up and kept it relevant in its home market. Despite this, it still managed to post sequential revenue declines in its last two reported quarters. Many were impressed by the fact that Canopy Growth posted a rare, seemingly quite substantial net profit of CA$390 million ($307 million) in the most recent of those two periods (the first quarter of fiscal 2022). However, digging into the earnings literature, we see that this was due to what the company says was "Other Income totaling $581 million during Q1 2022 primarily attributable to non-cash fair value changes of [CA]$601 million."
Fair value changes are essentially accounting adjustments based on how a company values its inventory, and the costs of selling it. This is a feature of the International Financial Reporting Standards (IFRS) more than a few Canadian marijuana companies use, and these estimates aren't necessarily considered pinpoint-accurate. So that nine-digit profit might not be all it's cracked up to be, to put it tactfully.
Finally, Canadian pot companies as a group have fallen out of investor favor next to their American counterparts.
This is reasonable. The U.S. market is far larger, it isn't maturing like Canada (which flipped the switch on the first, crucial stage of recreational marijuana legalization nationwide in 2018), and for the foreseeable future it's closed to direct Canadian exports (the drug is still technically illegal at the federal level, after all). The companies that will get the real jump on the U.S. market, most likely, will be U.S. operators.
Image source: Getty Images.
This CBD stock isn't what it used to be
Alex Carchidi (Charlotte's Web Holdings): Sometimes, it's best to avoid a company that isn't getting much from its leadership position in a market.
On that note, Charlotte's Web makes a smattering of wellness products for humans and pets, all of which contain cannabidiol (CBD), a chemical derived from cannabis. Whereas typical cannabis goods might be inebriating, CBD isn't, and proponents claim that it has beneficial effects, like reducing anxiety. So the market for CBD isn't the same as the burgeoning markets for medicinal and recreational cannabis, though there is probably some overlap.
Per the company's latest earnings report, second-quarter revenue only grew by 11.4% year over year to reach $24.2 million, which is far too low for a relatively small business that investors might look to for robust growth. And quarterly revenue seems to have stagnated after 2019, when it brought in $25 million in the second quarter.
On top of this slowing demand, profitability has remained out of reach for the last two years. That was doubtlessly caused by sharp rises in Charlotte's Web's cost of goods sold (COGS) and its selling, general, and administrative (SG&A) expenses since 2018. At least some of the increased SG&A expenditures stem from growing its marketing channels and spending to maintain and expand its leading market share in several distribution segments. In 2020, Charlotte's Web was the largest CBD pure-play competitor in e-commerce, food stores, drugstores, natural specialty retail, and mass retail.
Still, being the top dog in these segments of the CBD market hasn't led to significant revenue growth or significant returns for investors over the last few years. So investors should steer clear of this stock until management demonstrates that the company's leading market share is actually beneficial to shareholders.
Image source: Getty Images.
Quality control concerns
Rich Duprey (Aurora Cannabis): Although Aurora Cannabis remains one of the most widely held stocks on the Robinhood platform (it's currently 14th), it doesn't warrant the loyalty investors have showered on the business.
Sales last quarter tumbled 21% from the year-ago period, but the consumer segment plunged by half. Although the Canadian government is more zealous in ordering widespread lockdowns beyond what we see in the U.S. in a bid to fight COVID-19, Aurora exacerbated the situation by going on an acquisition spree in which it overpaid for production and distribution capabilities.
It has since written down large chunks of those costs. In many instances, that was because it hasn't been able to achieve the kind of premium, high-quality flower its growth strategy requires, particularly at Sky, which was going to be its flagship greenhouse. Today, Sky operates at just 25% of its capacity as it continues to work through the issues there.
Equally disturbing has been Aurora's willingness to dilute its existing shareholders to continuously raise cash. In May, it announced a new plan to sell up to $300 million worth of stock in an at-the-market offering, and though such sales have enabled the pot stock to pay off one of its credit facilities, it still has some $300 million in long-term debt. To its credit, it has $525 million in cash. So while it ought to be positioned for growth, its internal misfirings keep dragging it down.
The stock is down 20% year to date, but it has lost almost two-thirds of its value from the highs it hit earlier this year. There may very well be a time Aurora is a buy, but that time is not now, and investors should avoid the stock. It needs to prove it can consistently get the sort of high-quality production from all of its facilities so that its goal of being a premium producer can be realized.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 9, 2021
Alex Carchidi has no position in any of the stocks mentioned. Eric Volkman has no position in any of the stocks mentioned. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Charlotte's Web Holdings and Constellation Brands. The Motley Fool recommends Charlotte's Web. 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. | Canopy Growth (NASDAQ: CGC), Charlotte's Web Holdings (OTC: CWBHF), and Aurora Cannabis (NASDAQ: ACB) should be avoided because of self-inflicted wounds that hold them back. Unfortunately, a tax and regulatory morass on the state level, coupled with its continuing classification as an illegal substance federally, has put roadblocks in front of otherwise good pot stocks. The U.S. market is far larger, it isn't maturing like Canada (which flipped the switch on the first, crucial stage of recreational marijuana legalization nationwide in 2018), and for the foreseeable future it's closed to direct Canadian exports (the drug is still technically illegal at the federal level, after all). | Canopy Growth (NASDAQ: CGC), Charlotte's Web Holdings (OTC: CWBHF), and Aurora Cannabis (NASDAQ: ACB) should be avoided because of self-inflicted wounds that hold them back. Quality control concerns Rich Duprey (Aurora Cannabis): Although Aurora Cannabis remains one of the most widely held stocks on the Robinhood platform (it's currently 14th), it doesn't warrant the loyalty investors have showered on the business. The Motley Fool owns shares of and recommends Charlotte's Web Holdings and Constellation Brands. | Canopy Growth (NASDAQ: CGC), Charlotte's Web Holdings (OTC: CWBHF), and Aurora Cannabis (NASDAQ: ACB) should be avoided because of self-inflicted wounds that hold them back. This CBD stock isn't what it used to be Alex Carchidi (Charlotte's Web Holdings): Sometimes, it's best to avoid a company that isn't getting much from its leadership position in a market. Quality control concerns Rich Duprey (Aurora Cannabis): Although Aurora Cannabis remains one of the most widely held stocks on the Robinhood platform (it's currently 14th), it doesn't warrant the loyalty investors have showered on the business. | Canopy Growth (NASDAQ: CGC), Charlotte's Web Holdings (OTC: CWBHF), and Aurora Cannabis (NASDAQ: ACB) should be avoided because of self-inflicted wounds that hold them back. Oh, Canada Eric Volkman (Canopy Growth): I feel that Canopy Growth is not only a stock to avoid now, but likely one to keep away from well into the future. This CBD stock isn't what it used to be Alex Carchidi (Charlotte's Web Holdings): Sometimes, it's best to avoid a company that isn't getting much from its leadership position in a market. |
36727.0 | 2021-08-20 00:00:00 UTC | Why Aurora Cannabis, Charlotte's Web, and Green Thumb Industries Stocks Got All Shook Up Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-charlottes-web-and-green-thumb-industries-stocks-got-all-shook-up | nan | nan | What happened
I have to admit: When I took a look at the declining share prices of marijuana stocks earlier this week, and concluded investors in the cannabis sector might be getting worried about the implications of a new bill that would legalize psychedelic drugs in California -- I half thought I was seeing things, jumping at shadows. But the evidence really does seem to be adding up toward the conclusion that psychedelics may be following the same path to legalization that marijuana blazed before them.
Investors don't seem to know precisely what to make of this development, however. In Friday trading, for example, we saw shares of Aurora Cannabis (NASDAQ: ACB) close up 3.7%, while cannabis stocks like Charlotte's Web (OTC: CWBHF) and Green Thumb Industries (OTC: GTBIF) headed in the other direction -- down 2.9% and 3.8%, respectively.
Image source: Getty Images.
So what
All of this happened, of course, on a pretty slow news day for the marijuana sector -- but a busy one for psychedelics. First and foremost, cannabis news source MarijuanaMoment.com spent Friday following up on its California story with a new piece describing how "Portland activists" are also pushing to "decriminalize psychedelics cultivation, gifting, and community ceremonies."
Already, Oregon voters have voted to legalize "psilocybin therapy" in ballot initiatives, but this still leaves some risk of "criminalization," reports Marijuana Moment. To remedy that, residents of Portland are urging their local government representatives to pass a law specifically authorizing possession and use of psychedelics. And according to the website, similar movements are afoot in Michigan, Massachusetts, and yes, California, too.
Hopping aboard this already-moving train on Thursday,stock market newssite TheFly.com interviewed Matt Stang, the CEO of "psychedelic wellness" company Delic Holdings. Stang argued that psychedelic drugs have a role to play to help peoples' mental wellness, and extolled the "huge opportunity" for medicinal psychedelics. In the course of the interview, he also pointed out Delic's role in all of this, and how it is working "really hard to get insurance coverage" of psychedelic drugs.
Now what
Now, how does all the above explain the divergent reactions among marijuana stock prices today? Honestly, I'm at a loss to explain why Aurora Cannabis stock is up on today's news. The reactions of investors in Charlotte's Web, on the other hand, and in Green Thumb Industries, are a bit more logical, and along the lines of how many investors reacted to the earlier news of California's moves to legalize psychedelics.
Simply put, at the same time as marijuana investors are on the cusp of seeing their product legalized at the federal level, so that companies (and investors in those companies) can more easily profit from it, we now see the emergence of psychedelic drugs as a potential rival for consumers' dollars. Psychedelics may not be nearly as far along as cannabis on the path to legalization, but they do appear to be heading in the same direction.
I have to imagine that when marijuana investors first set out on this journey, this was not the outcome they expected.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 9, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Charlotte's Web Holdings and Green Thumb Industries. The Motley Fool recommends Charlotte's Web. 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. | In Friday trading, for example, we saw shares of Aurora Cannabis (NASDAQ: ACB) close up 3.7%, while cannabis stocks like Charlotte's Web (OTC: CWBHF) and Green Thumb Industries (OTC: GTBIF) headed in the other direction -- down 2.9% and 3.8%, respectively. What happened I have to admit: When I took a look at the declining share prices of marijuana stocks earlier this week, and concluded investors in the cannabis sector might be getting worried about the implications of a new bill that would legalize psychedelic drugs in California -- I half thought I was seeing things, jumping at shadows. First and foremost, cannabis news source MarijuanaMoment.com spent Friday following up on its California story with a new piece describing how "Portland activists" are also pushing to "decriminalize psychedelics cultivation, gifting, and community ceremonies." | In Friday trading, for example, we saw shares of Aurora Cannabis (NASDAQ: ACB) close up 3.7%, while cannabis stocks like Charlotte's Web (OTC: CWBHF) and Green Thumb Industries (OTC: GTBIF) headed in the other direction -- down 2.9% and 3.8%, respectively. Hopping aboard this already-moving train on Thursday,stock market newssite TheFly.com interviewed Matt Stang, the CEO of "psychedelic wellness" company Delic Holdings. The Motley Fool owns shares of and recommends Charlotte's Web Holdings and Green Thumb Industries. | In Friday trading, for example, we saw shares of Aurora Cannabis (NASDAQ: ACB) close up 3.7%, while cannabis stocks like Charlotte's Web (OTC: CWBHF) and Green Thumb Industries (OTC: GTBIF) headed in the other direction -- down 2.9% and 3.8%, respectively. What happened I have to admit: When I took a look at the declining share prices of marijuana stocks earlier this week, and concluded investors in the cannabis sector might be getting worried about the implications of a new bill that would legalize psychedelic drugs in California -- I half thought I was seeing things, jumping at shadows. The reactions of investors in Charlotte's Web, on the other hand, and in Green Thumb Industries, are a bit more logical, and along the lines of how many investors reacted to the earlier news of California's moves to legalize psychedelics. | In Friday trading, for example, we saw shares of Aurora Cannabis (NASDAQ: ACB) close up 3.7%, while cannabis stocks like Charlotte's Web (OTC: CWBHF) and Green Thumb Industries (OTC: GTBIF) headed in the other direction -- down 2.9% and 3.8%, respectively. 10 stocks we like better than Aurora Cannabis Inc. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! |
36728.0 | 2021-08-19 00:00:00 UTC | Why Aurora Cannabis, Tilray, and Sundial Growers Stocks Tumbled Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-tilray-and-sundial-growers-stocks-tumbled-today-2021-08-19 | nan | nan | What happened
Marijuana stocks got thrown for a loop on Thursday, and shares of Aurora Cannabis (NASDAQ: ACB) are trading down 3.6% as of 3:40 p.m. EDT, followed by Sundial Growers (NASDAQ: SNDL) with a 4% loss, and Tilray (NASDAQ: TLRY) down 4.4%.
So what
It's rarely easy to put your finger on what exactly causes a marijuana stock to go up or down. None of these stocks are profitable, after all, and according to Wall Street analysts polled by S&P Global Market Intelligence, profitability remains at least a few years away for most of them.
Sundial, for example, isn't expected to turn a profit according to generally accepted accounting principles (GAAP) before 2023, if then. Tilray won't earn anything before 2025, and Aurora Cannabis -- well, it's anybody's guess when Aurora might earn a profit. Analysts forecast nothing but losses as far out as the eye can see.
Image source: Getty Images.
Now what
Still, marijuana investors have proven a patient bunch, and generally willing to stick with this industry while they wait for marijuana to be legalized in the U.S., and for profitability to emerge. One thing that could upset that apple cart, though, is: what happens if marijuana isn't the only drug that gets legalized?
This was the subject of the lead article on MarijuanaMoment.net last night, which noted that in California -- a pioneer in marijuana legalization already -- the state Senate passed a bill to legalize possession of psychedelic drugs as well earlier this year. Said bill is now progressing through the state Assembly, and due to be voted on on Aug. 26. In theory at least, this bill could "reach the governor's desk this year," notes MM.
If it succeeds, then marijuana investors could soon have to factor in competition from a whole host of other drugs -- psilocybin mushrooms, DMT, ibogaine, LSD, and MDMA -- and what it might mean to sales trends for the marijuana industry. The prospect of soon having to compete with harder drugs like these could be what is worrying marijuana investors today.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 9, 2021
Rich Smith 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. | What happened Marijuana stocks got thrown for a loop on Thursday, and shares of Aurora Cannabis (NASDAQ: ACB) are trading down 3.6% as of 3:40 p.m. EDT, followed by Sundial Growers (NASDAQ: SNDL) with a 4% loss, and Tilray (NASDAQ: TLRY) down 4.4%. Sundial, for example, isn't expected to turn a profit according to generally accepted accounting principles (GAAP) before 2023, if then. One thing that could upset that apple cart, though, is: what happens if marijuana isn't the only drug that gets legalized? | What happened Marijuana stocks got thrown for a loop on Thursday, and shares of Aurora Cannabis (NASDAQ: ACB) are trading down 3.6% as of 3:40 p.m. EDT, followed by Sundial Growers (NASDAQ: SNDL) with a 4% loss, and Tilray (NASDAQ: TLRY) down 4.4%. 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 Inc. wasn't one of them! | What happened Marijuana stocks got thrown for a loop on Thursday, and shares of Aurora Cannabis (NASDAQ: ACB) are trading down 3.6% as of 3:40 p.m. EDT, followed by Sundial Growers (NASDAQ: SNDL) with a 4% loss, and Tilray (NASDAQ: TLRY) down 4.4%. This was the subject of the lead article on MarijuanaMoment.net last night, which noted that in California -- a pioneer in marijuana legalization already -- the state Senate passed a bill to legalize possession of psychedelic drugs as well earlier this year. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Rich Smith has no position in any of the stocks mentioned. | What happened Marijuana stocks got thrown for a loop on Thursday, and shares of Aurora Cannabis (NASDAQ: ACB) are trading down 3.6% as of 3:40 p.m. EDT, followed by Sundial Growers (NASDAQ: SNDL) with a 4% loss, and Tilray (NASDAQ: TLRY) down 4.4%. Now what Still, marijuana investors have proven a patient bunch, and generally willing to stick with this industry while they wait for marijuana to be legalized in the U.S., and for profitability to emerge. This was the subject of the lead article on MarijuanaMoment.net last night, which noted that in California -- a pioneer in marijuana legalization already -- the state Senate passed a bill to legalize possession of psychedelic drugs as well earlier this year. |
36729.0 | 2021-08-17 00:00:00 UTC | Will More High-Profile Stocks Move to the Nasdaq? | ACB | https://www.nasdaq.com/articles/will-more-high-profile-stocks-move-to-the-nasdaq-2021-08-17 | nan | nan | The stock market fared poorly on Tuesday, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) saw significant losses. As of 2 p.m. EDT, the Nasdaq was down more than 1%, roughly in line with other major market benchmarks.
Many companies that are coming public for the first time choose the Nasdaq, as the exchange has a reputation for being a home for high-growth tech-savvy businesses with aspirations for excellence. Yet increasingly, a key element of the Nasdaq's success has been the willingness of companies to move their listings away from the rival New York Stock Exchange. This trend is contributing to the Nasdaq's strength and could well continue.
Image source: Getty Images.
Big wins for the Nasdaq
In the first half of 2021, the Nasdaq had a huge role in the investment banking area. The exchange boasted 410 new initial public offerings, raising $106 billion in capital for listing companies. That was the highest since 2008, and it gave the Nasdaq the edge over its stock exchange rivals for the 30th straight quarter.
The Nasdaq got wins in every segment of the market. The exchange listed more than three-quarters of all operating companies going public during the period. Moreover, more than two-thirds of special purpose acquisition companies doing IPOs chose the Nasdaq, and some high-profile companies ended up choosing the Nasdaq after going public, including SoFi (NASDAQ: SOFI). The direct listing of cryptocurrency exchange giant Coinbase (NASDAQ: COIN) was also a coup for the market.
One area that didn't get quite as much attention was the fact that some major companies leading their respective industries made the move from the NYSE to the Nasdaq during the early part of 2021. Those companies included Honeywell (NASDAQ: HON) and Aurora Cannabis (NASDAQ: ACB), and each had different reasons for making the shift.
A change in corporate culture
For Honeywell, the move to the Nasdaq was clearly intended to indicate a shift in the company's focus. Long seen as an industrial giant, Honeywell has increasingly emphasized its technological prowess. As CEO Darius Adamczyk explained when the company made the move, "Honeywell is the world's premier software-industrial company, shaping the future of technology and sustainability." Adamczyk further noted that the Nasdaq has a "long tradition of listing category-defining technology companies."
That's entirely consistent with Honeywell's latest corporate strategy. The company has already made big investments in its Honeywell Forge software and digital solutions business. Moreover, it plans to take a major stake in a quantum-computing company, with the hope that it will quickly ramp up to represent a significant portion of Honeywell's overall sales.
Saving some green
Meanwhile, for Aurora Cannabis, switching to the Nasdaq was also about saving cold hard cash. As CEO Miguel Martin explained in the company's May announcement of the move, "This listing transfer will enable us to realize cost efficiencies." Aurora was following several other cannabis stocks that had made similar switches recently, including Canopy Growth (NASDAQ: CGC).
For investors, whether a stock trades on the Nasdaq or the NYSE rarely makes a big difference. Both markets are accessible through brokers, with most brokerage institutions offering commission-free trading for both exchanges.
Yet as more companies try to position themselves as being innovative, fast-growing, and technologically forward-thinking, it's likely that you'll see additional shifts to the Nasdaq. As long as the exchange can maintain its reputation for fostering the leaders of tomorrow, the Nasdaq will keep attracting both newly public companies and well-established businesses looking to invigorate their prospects.
10 stocks we like better than Honeywell International
When our award-winning 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 Honeywell International wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 9, 2021
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends SoFi Technologies, Inc. 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. | Those companies included Honeywell (NASDAQ: HON) and Aurora Cannabis (NASDAQ: ACB), and each had different reasons for making the shift. Many companies that are coming public for the first time choose the Nasdaq, as the exchange has a reputation for being a home for high-growth tech-savvy businesses with aspirations for excellence. One area that didn't get quite as much attention was the fact that some major companies leading their respective industries made the move from the NYSE to the Nasdaq during the early part of 2021. | Those companies included Honeywell (NASDAQ: HON) and Aurora Cannabis (NASDAQ: ACB), and each had different reasons for making the shift. Moreover, more than two-thirds of special purpose acquisition companies doing IPOs chose the Nasdaq, and some high-profile companies ended up choosing the Nasdaq after going public, including SoFi (NASDAQ: SOFI). As CEO Darius Adamczyk explained when the company made the move, "Honeywell is the world's premier software-industrial company, shaping the future of technology and sustainability." | Those companies included Honeywell (NASDAQ: HON) and Aurora Cannabis (NASDAQ: ACB), and each had different reasons for making the shift. Yet increasingly, a key element of the Nasdaq's success has been the willingness of companies to move their listings away from the rival New York Stock Exchange. Moreover, more than two-thirds of special purpose acquisition companies doing IPOs chose the Nasdaq, and some high-profile companies ended up choosing the Nasdaq after going public, including SoFi (NASDAQ: SOFI). | Those companies included Honeywell (NASDAQ: HON) and Aurora Cannabis (NASDAQ: ACB), and each had different reasons for making the shift. The exchange listed more than three-quarters of all operating companies going public during the period. For investors, whether a stock trades on the Nasdaq or the NYSE rarely makes a big difference. |
36730.0 | 2021-08-17 00:00:00 UTC | 3 Troubling Numbers From Canopy Growth's Q1 Results | ACB | https://www.nasdaq.com/articles/3-troubling-numbers-from-canopy-growths-q1-results-2021-08-17 | nan | nan | Canopy Growth (NASDAQ: CGC) reported its first-quarter numbers earlier this month. And while investors were likely taken aback by the impressive profit the company posted during the period, which totaled 390 million Canadian dollars, they likely knew it was too good to be true. After all, this is a company that has struggled with consistency and sales growth in the past. Breakeven remains an elusive target for the business.
Although the Canadian pot producer is certainly making strides in transforming its business into a leaner operation, there are still many problems that investors simply shouldn't overlook. Below are just three of the most concerning items from the company's Q1 results.
Image source: Getty Images.
1. Quarterly sales were down sequentially
For the period ending June 30, Canopy Growth's net revenue totaled CA$136.2 million, for a year-over-year increase of 23%. However, when comparing those numbers to the previous three months, when the top line was CA$148.4 million, that's a decline of more than 8%. It's a troubling figure because the Canadian pot market has been growing in size, hitting a record of CA$313.3 million this past May. It was also the third month in a row that sales were up nationwide.
But that hasn't translated into strong sales numbers for the company. Canopy Growth's revenue from the Canadian recreational market was just CA$60 million in Q1, down from CA$61.1 million in the fourth quarter. Even beverage sales didn't show much movement. In its beverages, edibles, and topicals segment, sales from both recreational and medical markets topped CA$13.3 million this past quarter, versus CA$13.5 million in Q4.
Without some strong sales growth, it's going to be difficult for the company to hit breakeven, especially as it continues to add more products to its portfolio. The company boasts a "robust innovation pipeline" that calls for more than 100 products to launch before the end of the current fiscal year.
2. Impairment charges increased
A big problem with adding too many products is that slow-moving ones can result in impairment charges. And that nasty phrase popped up yet again on the company's financials in Q1. Under its asset impairment and restructuring costs, Canopy Growth incurred CA$89.2 million worth of expenses -- seven times the CA$12.8 million it reported a year earlier. It's also higher than Q4, when those expenses totaled CA$74.8 million for the period ending March 31.
While the company can dismiss that number, claiming it's due to changes in the business -- or, as the line suggests, restructuring -- that doesn't mean investors should do the same. It's still an expense that will weigh down the bottom line, even if it is conveniently removed from the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) calculation. It's important because recurring impairment charges suggest the business isn't being run efficiently. And that can make it difficult to generate a profit and generate positive cash flow, which was yet another problem in Q1.
3. Cash burn soared
An area I never ignore on a cannabis company's financials is its cash burn. It's not as subjective a calculation as adjusted EBITDA, and it can help investors gauge the health of a company's operations. Unfortunately, the picture wasn't pretty for Canopy Growth in Q1 -- the business used up CA$165.8 million in cash during the period in its day-to-day operating activities alone. A year ago, that number was just CA$118.5 million.
The statement of cash flow makes it clear how the company turned a profit. Canopy Growth recorded CA$658.2 million in non-cash fair value adjustments, which propped up its bottom line (adjusted EBITDA was a negative CA$63.6 million). Canopy Growth investors may not be too concerned about the company's cash, given that as of June 30 it still reported cash and cash equivalents of CA$559.8 million (plus CA$1.5 billion in short-term investments). But that stockpile won't last forever; if the company continues its rate of cash burn, it might need to dip into its investments (or issue more shares) within 12 months.
Canopy Growth still isn't a buy
It has been a sobering year for Canopy Growth so far, and the stock has fallen more than 26% in value year to date -- even as the Horizons Marijuana Life Sciences ETF is up 12%. For all the potential the company believes it possesses, including its goal of being in the U.S. market within a year, it has continued to underperform. The stock trades at an egregious multiple of 12 times its future revenue (rivals Tilray and Aurora Cannabis trade at multiples of just 7 and 5, respectively) and remains vastly overvalued. These latest results do little to change that, which is why, despite its struggles this year, it wouldn't be surprising to see the pot stock continue to fall further in the weeks and months ahead.
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 – 15 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 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. | And while investors were likely taken aback by the impressive profit the company posted during the period, which totaled 390 million Canadian dollars, they likely knew it was too good to be true. Quarterly sales were down sequentially For the period ending June 30, Canopy Growth's net revenue totaled CA$136.2 million, for a year-over-year increase of 23%. It's still an expense that will weigh down the bottom line, even if it is conveniently removed from the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) calculation. | Quarterly sales were down sequentially For the period ending June 30, Canopy Growth's net revenue totaled CA$136.2 million, for a year-over-year increase of 23%. In its beverages, edibles, and topicals segment, sales from both recreational and medical markets topped CA$13.3 million this past quarter, versus CA$13.5 million in Q4. Under its asset impairment and restructuring costs, Canopy Growth incurred CA$89.2 million worth of expenses -- seven times the CA$12.8 million it reported a year earlier. | Canopy Growth's revenue from the Canadian recreational market was just CA$60 million in Q1, down from CA$61.1 million in the fourth quarter. Under its asset impairment and restructuring costs, Canopy Growth incurred CA$89.2 million worth of expenses -- seven times the CA$12.8 million it reported a year earlier. Canopy Growth investors may not be too concerned about the company's cash, given that as of June 30 it still reported cash and cash equivalents of CA$559.8 million (plus CA$1.5 billion in short-term investments). | Although the Canadian pot producer is certainly making strides in transforming its business into a leaner operation, there are still many problems that investors simply shouldn't overlook. Canopy Growth recorded CA$658.2 million in non-cash fair value adjustments, which propped up its bottom line (adjusted EBITDA was a negative CA$63.6 million). Canopy Growth investors may not be too concerned about the company's cash, given that as of June 30 it still reported cash and cash equivalents of CA$559.8 million (plus CA$1.5 billion in short-term investments). |
36731.0 | 2021-08-12 00:00:00 UTC | Got $1,000? 3 Reasons to Invest It in This Pot Stock Today | ACB | https://www.nasdaq.com/articles/got-%241000-3-reasons-to-invest-it-in-this-pot-stock-today-2021-08-12 | nan | nan | Investing in marijuana stocks now might be the smartest decision you could make. The industry is still a nascent one with tremendous space to grow both nationally and internationally. U.S. cannabis stocks could get a boost once the drug is federally legalized, a development many see as inevitable. In anticipation of that day, the marijuana sector provides a fruitful opportunity for investors to grow their wealth five to 10 years down the line (and beyond!).
That said, it is a common myth that you need a truckload of money to invest in the stock market. Starting small is easier and safer. If you have $1,000 left after paying all your bills, consider growth stocks like Illinois-based multi-state operator and pure-play cannabis company Cresco Labs (OTC: CRLBF), which saw an outstanding revenue jump of 271% year over year in 2020 to reach $476 million.
The business had a strong start to 2021, as well. The company is not profitable yet, but it has consistently reported positive earnings before interest, tax, depreciation, and amortization (EBITDA). It is set to report its second-quarter results (ended June 30) on Aug. 13. Analysts expect this quarter to be profitable. Here are three reasons to consider buying the stock on the dip now.
Image source: Getty Images.
1. Smart growth strategies could play out well this year for Cresco
After an outstanding 2020, Cresco started 2021 on a strong note with 168% growth in revenue for Q1 (which ended March 31) from the year-ago period. The company's strength is its wholesale segment, which contributes 54% of total revenue. This segment grew 151% year over year to $96 million, while retail revenue also saw growth of 193% to $83 million from just 24 stores. Retail revenue includes medical and recreational cannabis sales in the U.S. and vape sales in Canada. The company has added to its operations since that report and now operates 33 stores in 10 U.S. states.
Even though the revenue growth didn't manage to bring in profits, it did provide the company with another quarter of positive EBITDA. This came in at $35 million, up from $16.5 million in the year-ago period.
A few acquisitions that Cresco Labs completed in the first quarter could contribute to Q2 revenue. One, Verdant Creations, allows the company access to four dispensaries in Ohio, bringing its total to five in the state. It also acquired Massachusetts dispensary chain Cultivate Processing, which operates two dispensaries in that state with plans to open a third soon.
In addition, Cresco completed the acquisition of Bluma Wellness, a vertically integrated operator in Florida, in April. This acquisition marked its entry into the Sunshine State, where hometown player Trulieve Cannabis (OTC: TCNNF) is dominating the market with 87 operating dispensaries and a 50% market share. Bluma operates eight dispensaries in the state with plans to open seven more. Florida hasn't legalized recreational cannabis, but establishing a strong footing now could be beneficial for Cresco in the longer term.
2. Cresco's second quarter could bring in profits
Another reason investors shy away from cannabis stocks is because most of them are not profitable yet -- Canadian stocks in particular. However, Wall Street analysts expect Cresco Labs' bottom line to improve this quarter. According to estimates, Cresco Labs could report a triple-digit revenue jump of 106% year over year to $194 million. For full-year 2021, analysts expect revenue to be about $843 million, further rising to $1.2 billion in 2022. Cresco's management, meanwhile, is even more optimistic, predicting in the earnings report that the company would reach an "annualized revenue run-rate of more than $1 billion by the end of 2021."
Analysts also expect a net profit per share of $0.01 in Q2, compared with a loss of $0.11 per share in the year-ago period. That profit could rise to $0.05 per share for 2021, climbing up to $0.38 per share in 2022.
3. State legalization could boost the company's stock price
Cresco credits much of the revenue growth in 2020 to the Illinois market, which legalized recreational cannabis last year. Total legal cannabis sales in the state hit $1 billion in 2020, with $669 million coming from recreational marijuana; estimates show that sales of recreational cannabis alone this year could top $1 billion. The company operates 10 dispensaries in its home state.
Up-and-coming cannabis markets in New York and New Jersey, both of which recently legalized recreational marijuana this year, could also be thrilling opportunities for Cresco. It operates four dispensaries in New York but none in New Jersey yet. The New York market is expected to generate $245 million in marijuana revenue annually by 2024.
Arizona, which legalized recreational cannabis in January, could also be another great market for the company; it operates one dispensary there now.
The continuing spread of state legalization in the U.S. will open exciting doors for the company. The average target price for the stock is $18.80, implying a 68% upside in the next 12 months. It's currently incredibly cheap, trading at just 4 times sales. Its Canadian counterparts' revenue numbers are much lower.
CRLBF PS Ratio data by YCharts
Cresco Labs' stock has surged by 127% since its IPO even with a limited legal market. If the company manages to beat analysts' estimates this quarter and bring in profits, I see no reason why this wouldn't boost the stock price. Furthermore, if growth continues at a slightly higher rate in the next three years as legalization spreads, an investment of $1,000 (or any other amount!) could more than triple by then. Note that investing is a long-term game, so starting slow and expanding your portfolio with growth stocks over time is a smart way to build your wealth.
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 – 15 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 owns shares of and recommends Cresco Labs Inc. and Trulieve Cannabis Corp. 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. | If the company manages to beat analysts' estimates this quarter and bring in profits, I see no reason why this wouldn't boost the stock price. Note that investing is a long-term game, so starting slow and expanding your portfolio with growth stocks over time is a smart way to build your wealth. 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. | If you have $1,000 left after paying all your bills, consider growth stocks like Illinois-based multi-state operator and pure-play cannabis company Cresco Labs (OTC: CRLBF), which saw an outstanding revenue jump of 271% year over year in 2020 to reach $476 million. Smart growth strategies could play out well this year for Cresco After an outstanding 2020, Cresco started 2021 on a strong note with 168% growth in revenue for Q1 (which ended March 31) from the year-ago period. Total legal cannabis sales in the state hit $1 billion in 2020, with $669 million coming from recreational marijuana; estimates show that sales of recreational cannabis alone this year could top $1 billion. | If you have $1,000 left after paying all your bills, consider growth stocks like Illinois-based multi-state operator and pure-play cannabis company Cresco Labs (OTC: CRLBF), which saw an outstanding revenue jump of 271% year over year in 2020 to reach $476 million. State legalization could boost the company's stock price Cresco credits much of the revenue growth in 2020 to the Illinois market, which legalized recreational cannabis last year. Total legal cannabis sales in the state hit $1 billion in 2020, with $669 million coming from recreational marijuana; estimates show that sales of recreational cannabis alone this year could top $1 billion. | The company has added to its operations since that report and now operates 33 stores in 10 U.S. states. State legalization could boost the company's stock price Cresco credits much of the revenue growth in 2020 to the Illinois market, which legalized recreational cannabis last year. If the company manages to beat analysts' estimates this quarter and bring in profits, I see no reason why this wouldn't boost the stock price. |
36732.0 | 2021-08-05 00:00:00 UTC | Why Aurora Cannabis, Canopy Growth, and Charlotte's Web Stocks Are Hopping Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-canopy-growth-and-charlottes-web-stocks-are-hopping-today-2021-08-05 | nan | nan | What happened
Congress is hard at work trying to pass a new law to legalize marijuana (in case you hadn't heard), and as the work progresses, investors in marijuana stocks are starting to get excited.
In particular, news reports on progress in Congress helped boost the shares of marijuana stocks. As of 3:10 p.m. EDT, Canopy Growth (NASDAQ: CGC) is up 6%, Aurora Cannabis (NASDAQ: ACB) is up 6.8%, and Charlotte's Web Holdings (OTC: CWBHF) is up 2.6%.
Curiously, though, the best news today may be on Charlotte's Web -- the stock that's gaining the least.
Image source: Getty Images.
So what
Don't get me wrong -- there's good news for Canopy Growth and Aurora Cannabis, too. As MarijuanaMoment reports, the Senate Appropriations Committee just approved an amendment that would permit doctors at the U.S. Department of Veterans Affairs to recommend that veterans be prescribed marijuana for medicinal purposes in states where this is legal. With medical marijuana legal in 36 states, this promises to be a big boost for the cannabis companies, no matter what other provisions make it into the final bill.
It's just that, to my mind at least, the news on the not-quite-marijuana front is even more optimistic.
As MM also reports today, the Senate Appropriations Committee has also approved amendments that encourage the U.S. Department of Agriculture, Food and Drug Administration, and other federal agencies "to reconsider 'arbitrary' THC restrictions on hemp and continue efforts to develop a regulatory pathway for CBD products," potentially permitting the production of more potent CBD products.
Additionally, MM notes that the committee "wants to make sure that hemp farmers and businesses are eligible to participate in insurance and loan programs" -- another move that would boost businesses such as Charlotte's Web, which rather than producing marijuana per se, focuses on the production and distribution of "hemp-based cannabidiol wellness products."
Now what
If one assumes that VA doctors permitted to prescribe actual marijuana to their patients would also be permitted to prescribe CBD (as seems reasonable), then it appears all of today's news benefits Charlotte's Web, while only some of it benefits marijuana companies like Aurora and Canopy Growth.
And if that realization grows, the gains for Charlotte's Web stock in particular could be just beginning.
10 stocks we like better than Charlotte's Web
When our award-winning 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 Charlotte's Web wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Charlotte's Web Holdings. The Motley Fool recommends Charlotte's Web. 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. | As of 3:10 p.m. EDT, Canopy Growth (NASDAQ: CGC) is up 6%, Aurora Cannabis (NASDAQ: ACB) is up 6.8%, and Charlotte's Web Holdings (OTC: CWBHF) is up 2.6%. With medical marijuana legal in 36 states, this promises to be a big boost for the cannabis companies, no matter what other provisions make it into the final bill. Additionally, MM notes that the committee "wants to make sure that hemp farmers and businesses are eligible to participate in insurance and loan programs" -- another move that would boost businesses such as Charlotte's Web, which rather than producing marijuana per se, focuses on the production and distribution of "hemp-based cannabidiol wellness products." | As of 3:10 p.m. EDT, Canopy Growth (NASDAQ: CGC) is up 6%, Aurora Cannabis (NASDAQ: ACB) is up 6.8%, and Charlotte's Web Holdings (OTC: CWBHF) is up 2.6%. As MarijuanaMoment reports, the Senate Appropriations Committee just approved an amendment that would permit doctors at the U.S. Department of Veterans Affairs to recommend that veterans be prescribed marijuana for medicinal purposes in states where this is legal. As MM also reports today, the Senate Appropriations Committee has also approved amendments that encourage the U.S. Department of Agriculture, Food and Drug Administration, and other federal agencies "to reconsider 'arbitrary' THC restrictions on hemp and continue efforts to develop a regulatory pathway for CBD products," potentially permitting the production of more potent CBD products. | As of 3:10 p.m. EDT, Canopy Growth (NASDAQ: CGC) is up 6%, Aurora Cannabis (NASDAQ: ACB) is up 6.8%, and Charlotte's Web Holdings (OTC: CWBHF) is up 2.6%. Additionally, MM notes that the committee "wants to make sure that hemp farmers and businesses are eligible to participate in insurance and loan programs" -- another move that would boost businesses such as Charlotte's Web, which rather than producing marijuana per se, focuses on the production and distribution of "hemp-based cannabidiol wellness products." Now what If one assumes that VA doctors permitted to prescribe actual marijuana to their patients would also be permitted to prescribe CBD (as seems reasonable), then it appears all of today's news benefits Charlotte's Web, while only some of it benefits marijuana companies like Aurora and Canopy Growth. | As of 3:10 p.m. EDT, Canopy Growth (NASDAQ: CGC) is up 6%, Aurora Cannabis (NASDAQ: ACB) is up 6.8%, and Charlotte's Web Holdings (OTC: CWBHF) is up 2.6%. In particular, news reports on progress in Congress helped boost the shares of marijuana stocks. Now what If one assumes that VA doctors permitted to prescribe actual marijuana to their patients would also be permitted to prescribe CBD (as seems reasonable), then it appears all of today's news benefits Charlotte's Web, while only some of it benefits marijuana companies like Aurora and Canopy Growth. |
36733.0 | 2021-08-05 00:00:00 UTC | Is It Too Late to Buy Canopy Growth Stock? | ACB | https://www.nasdaq.com/articles/is-it-too-late-to-buy-canopy-growth-stock-2021-08-05 | nan | nan | Despite a marijuana boom amid the pandemic, some Canadian cannabis stocks have failed to generate profits. There are many reasons for this, including fewer legal stores than anticipated, a smaller market than that of the U.S., black-market sales eating into revenue, and regulatory holdups. All of these have dug into Canadian pot companies' sales.
Popular Canadian players including Aurora Cannabis (NASDAQ: ACB) and Canopy Growth (NASDAQ: CGC) have been struggling for a while now to achieve positive earnings before interest, tax, depreciation, and amortization (EBITDA). I continue to doubt that Aurora will bounce back anytime soon, but Canopy might just be a little luckier. While the company isn't profitable yet, it does have the financial backing of U.S. beverage giant Constellation Brands as a plus point. The latter invested 245 million Canadian dollars in its partnership with Canopy in 2017. Exercising its warrants since then has given Constellation a 38.6% stake in Canopy. But is this the only reason to trust this pot stock?
Image Source: Getty Images.
Canopy Growth's revenue growth is not enough to bring in profits
Canopy is growing revenue, but that growth isn't significant enough to generate profits. In its 2021 fiscal fourth quarter (ended March 31), revenue jumped 38% year over year to CA$148 million. For the full year, revenue came in at CA$547 million, up from CA$399 million in fiscal 2020. Canopy saw growth in almost all of its business segments for the full fiscal year 2021:
Canadian recreational sales were up 32% year over year to CA$230 million.
Medical cannabis and others (including CBD-related products -- CBD, or cannabidiol, is a non-psychoactive component of marijuana) grew by 23% year over year to CA$149 million.
Other consumer products (which includes business from vaporizer maker Storz & Bickel, skincare brand This Works, and others) jumped 62% to CA$168 million from the year-ago period.
Canopy did manage to reduce its EBITDA losses for the quarter. These came in at CA$233 million, compared with CA$991 million in Q4 2020. That's thanks to the company's business transformation plan, initiated in December 2020, which helped lower its selling, general, and administrative expenses to CA$148 million from CA$197 million in the year-ago quarter. In the earnings report, CFO Mike Lee said that the company expects to realize CA$150 million to CA$200 million of cost savings from this plan within the next 18 months.
Canopy Growth is excited about the U.S. market, but ...
Canopy Growth's CEO is pretty optimistic about the U.S. cannabis industry. And why not? Canopy has an edge over its peers in the U.S. market thanks to its strong partners, including Constellation Brands and U.S.-based hemp company Acreage Holdings. (Its deal with Acreage, made in April 2019, is contingent upon future federal marijuana legalization in the U.S.) However, the U.S. market is a long shot for now. To be profitable, Canopy has to grow its market in Canada and globally.
It's making progress there, having managed to capture a 35% dollar share of the total cannabis beverage category in Canada in fiscal 2021. Beverages are a form of cannabis derivatives, the additional recreational products (vapes, edibles, concentrates, and more) that Canada legalized in 2019.
In the first quarter of fiscal 2022, Canopy has expanded its portfolio of tetrahydrocannabinol (THC, the psychoactive component in marijuana) beverages with Tweed Iced Tea beverages, and it launched Tweed Strawberry gummies in Ontario. We will know more about its product launch and growth strategies in its upcoming Q1 2022 results, due Aug. 6. In the meantime, management is excited about the acquisitions of Ontario-based cannabis brand Ace Valley and Toronto-based Supreme Cannabis Company (both completed this year), hoping these acquisitions will further add to its recreational cannabis revenue growth.
Is this pot stock a safe bet?
Management stated in the earnings report that Canopy is on track to achieve positive adjusted EBITDA by the second half of fiscal 2022.
Unlike its peer Aurora Cannabis, which has a reputation for setting aggressive targets and failing to achieve them, Canopy's goal seems reasonable. Though Canopy cannot reap the benefits of the U.S. cannabis market now, if it manages to generate profits just from the Canadian and international markets, it will be more than ready to capture the U.S. cannabis market eventually with the help of its partners. Its cannabis-infused beverages and chocolates are gaining traction in the Canadian market, and could be a huge hit in the U.S.
However, investors should also take note of how the company is handling its debt issues. Even though Constellation is doing most of its heavy financial lifting, Canopy's balance sheet is messy. It ended fiscal 2021 with CA$2.3 billion in cash, cash equivalents, and investments, and long-term debt of CA$1.6 billion. Unless it starts generating profits, the debt issues could become a big concern.
When it comes to valuation, we look at Canopy's price-to-sales (P/S) ratio since the company is not yet profitable. Canopy is trading at 17 times sales. That's expensive compared with its U.S. counterparts, which have higher revenue growth than Canopy but are trading at lower P/S ratios (between 3 and 9). Most of them, like Trulieve Cannabis and Curaleaf Holdings, are also profitable.
CGC PS Ratio data by YCharts
Canadian marijuana stocks are a risky bet right now (except perhaps for Tilray (NASDAQ: TLRY), which just turned in a profit in its recent Q4 ended May 31). Chances are, however, that Canopy could turn itself around. If you have a strong risk appetite and can wait to see Canopy achieve its full potential five to 10 years down the line, then it is not too late to buy this pot stock.
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 – 15 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 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. | Popular Canadian players including Aurora Cannabis (NASDAQ: ACB) and Canopy Growth (NASDAQ: CGC) have been struggling for a while now to achieve positive earnings before interest, tax, depreciation, and amortization (EBITDA). There are many reasons for this, including fewer legal stores than anticipated, a smaller market than that of the U.S., black-market sales eating into revenue, and regulatory holdups. Other consumer products (which includes business from vaporizer maker Storz & Bickel, skincare brand This Works, and others) jumped 62% to CA$168 million from the year-ago period. | Popular Canadian players including Aurora Cannabis (NASDAQ: ACB) and Canopy Growth (NASDAQ: CGC) have been struggling for a while now to achieve positive earnings before interest, tax, depreciation, and amortization (EBITDA). In its 2021 fiscal fourth quarter (ended March 31), revenue jumped 38% year over year to CA$148 million. Canopy saw growth in almost all of its business segments for the full fiscal year 2021: Canadian recreational sales were up 32% year over year to CA$230 million. | Popular Canadian players including Aurora Cannabis (NASDAQ: ACB) and Canopy Growth (NASDAQ: CGC) have been struggling for a while now to achieve positive earnings before interest, tax, depreciation, and amortization (EBITDA). Canopy Growth's revenue growth is not enough to bring in profits Canopy is growing revenue, but that growth isn't significant enough to generate profits. Canopy saw growth in almost all of its business segments for the full fiscal year 2021: Canadian recreational sales were up 32% year over year to CA$230 million. | Popular Canadian players including Aurora Cannabis (NASDAQ: ACB) and Canopy Growth (NASDAQ: CGC) have been struggling for a while now to achieve positive earnings before interest, tax, depreciation, and amortization (EBITDA). Canopy Growth's revenue growth is not enough to bring in profits Canopy is growing revenue, but that growth isn't significant enough to generate profits. For the full year, revenue came in at CA$547 million, up from CA$399 million in fiscal 2020. |
36734.0 | 2021-08-04 00:00:00 UTC | Why Aurora Cannabis Stock Plunged 22% in July | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-plunged-22-in-july-2021-08-04 | nan | nan | What happened
Shares of Aurora Cannabis (NASDAQ: ACB) tumbled 22% for the month of July, according to data provided by S&P Global Market Intelligence, even as the Horizons Marijuana Life Sciences Index ETF fell 11% and the S&P 500 managed to cobble together a 2.2% gain.
Aurora, one of the Robinhood investing app's most-held stocks, has enjoyed few bright moments in 2021. And with the prospects of marijuana legalization in the U.S. not looking especially promising on the federal level at the moment, the pot stock had very few days to be happy about last month.
Image source: Getty Images.
So what
Aurora serves both the medical and consumer marijuana markets in Canada. And while the industry has suffered from regulatory miscues that have hindered cannabis companies from achieving their full potential, Aurora has exacerbated its situation by heavily diluting shareholders with excessive share offerings. Its share count has risen more than tenfold over the past few years.
In May, it announced a new plan to sell up to $300 million worth of stock in an at-the-market offering.
Its operations are not profitable, either, and it has failed to make any real headway there. Sales tumbled in its fiscal third quarter by 21% and its consumer segment plunged by half, though it blamed the pandemic and Canadian lockdowns of retail stores that have largely been more rigorous than here in the U.S.
Now what
Unlike many of its peers, Aurora Cannabis does not have a deep-pocketed partner on which to lean. No multinational corporation has stepped forward to invest billions in its grow operations, as occurred with Canopy Growth, Cronos Group, and Tilray.
So if marijuana were legalized federally, while it might allow Aurora to expand into new markets in the U.S., it would also undoubtedly create a crush of new rivals that it can ill afford to compete against at the moment. The company could use new opportunities for growth, but they'd likely undermine its financial position more if they did open up.
Investors will need to see whether Aurora Cannabis can regain its footing as Canada's economy finally reopens. It's likely not going to happen this next quarter, but the marijuana stock might be able to find its footing over the coming quarters.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Rich Duprey 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. | What happened Shares of Aurora Cannabis (NASDAQ: ACB) tumbled 22% for the month of July, according to data provided by S&P Global Market Intelligence, even as the Horizons Marijuana Life Sciences Index ETF fell 11% and the S&P 500 managed to cobble together a 2.2% gain. And while the industry has suffered from regulatory miscues that have hindered cannabis companies from achieving their full potential, Aurora has exacerbated its situation by heavily diluting shareholders with excessive share offerings. Sales tumbled in its fiscal third quarter by 21% and its consumer segment plunged by half, though it blamed the pandemic and Canadian lockdowns of retail stores that have largely been more rigorous than here in the U.S. Now what Unlike many of its peers, Aurora Cannabis does not have a deep-pocketed partner on which to lean. | What happened Shares of Aurora Cannabis (NASDAQ: ACB) tumbled 22% for the month of July, according to data provided by S&P Global Market Intelligence, even as the Horizons Marijuana Life Sciences Index ETF fell 11% and the S&P 500 managed to cobble together a 2.2% gain. So what Aurora serves both the medical and consumer marijuana markets in Canada. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | What happened Shares of Aurora Cannabis (NASDAQ: ACB) tumbled 22% for the month of July, according to data provided by S&P Global Market Intelligence, even as the Horizons Marijuana Life Sciences Index ETF fell 11% and the S&P 500 managed to cobble together a 2.2% gain. 10 stocks we like better than Aurora Cannabis Inc. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Rich Duprey has no position in any of the stocks mentioned. | What happened Shares of Aurora Cannabis (NASDAQ: ACB) tumbled 22% for the month of July, according to data provided by S&P Global Market Intelligence, even as the Horizons Marijuana Life Sciences Index ETF fell 11% and the S&P 500 managed to cobble together a 2.2% gain. Investors will need to see whether Aurora Cannabis can regain its footing as Canada's economy finally reopens. 10 stocks we like better than Aurora Cannabis Inc. |
36735.0 | 2021-08-04 00:00:00 UTC | 3 Pot Stocks to Avoid Like the Plague in August | ACB | https://www.nasdaq.com/articles/3-pot-stocks-to-avoid-like-the-plague-in-august-2021-08-04 | nan | nan | Cannabis is likely to be one of the fastest-growing industries of the decade. According to New Frontier Data, legal weed sales in the U.S. are expected to grow by an annual average of 21%, ultimately hitting north of $41 billion by mid-decade. Meanwhile, the Canadian pot market is expected to see sales vault from $2.6 billion in 2020 to $6.4 billion by 2026, per BDSA.
While this sales growth will undoubtedly make some cannabis investors rich, we also know that not every marijuana stock can be a winner. The following trio of pot stocks stand out for all the wrong reasons and should be avoided like the plague in August.
Image source: Getty Images.
Aurora Cannabis
Aurora Cannabis (NASDAQ: ACB) was once the most-held stock on online investing app Robinhood. It had 15 production facilities, was expected to peak at well north of 600,000 kilos of annual production, and sported a market cap of nearly $10 billion. Nowadays, it's a regular resident of the pot stocks to avoid column.
Even though cannabis is treated as a traditional consumer good (i.e., demand is pretty steady, no matter how well or poorly the U.S. economy is performing), and Canadian weed revenue has been climbing, Aurora Cannabis' fiscal third-quarter operating results were abysmal. Net cannabis sales plunge 21% from the prior-year period, with recreational weed revenue declining 53%. While the coronavirus pandemic took much of the blame, it's tough to sweep a 53% sales drop under the rug when total pot sales for the country have been trending higher.
To be fair, Aurora Cannabis and its Canadian peers have been hurt by regulatory miscues at the federal and provincial level. For example, it took far too long for Ontario's regulators to realize its dispensary lottery system wasn't working. This led to supply bottlenecks that are still being worked out. But Aurora's roughly one dozen grossly overpriced acquisition didn't help its cause, either. Over the past two years, the company has written down in the neighborhood of half of its total assets.
Arguably the bigger issue for Aurora Cannabis is that it's no closer to reaching profitability than it was at this time last year. Through the first nine months of fiscal 2021, Aurora posted an operating loss of $232.3 million Canadian ($186.2 million U.S.). That's only an 18% reduction from the comparable nine-month period in fiscal 2020. The company's management team has outlined numerous forecasts to reach positive earnings before interest, taxes, depreciation, and amortization (EBITDA), but none of these projections have come to fruition.
And if you need one more rock-solid reason to avoid Aurora Cannabis like the plague, take into account the company's nonstop share-based dilution that's been used to fund acquisitions and cover day-to-day operating expenses. Taking into account a 1-for-12 reverse split enacted in May 2020, Aurora's share count has ballooned from 1.3 million shares in mid-2014 to about 198 million shares by March 31, 2021. Devoid of catalysts, Aurora Cannabis should be avoided by investors.
Image source: Getty Images.
Cronos Group
Another pot stock that should be given the cold shoulder by investors in August is Cronos Group (NASDAQ: CRON).
Like Aurora, Cronos is a Canadian weed stock that's pretty popular with retail investors on Robinhood. But unlike Aurora, Cronos Group is well funded. That's because it closed a deal in March 2019 to sell a 45% equity stake to Altria Group (NYSE: MO) for $1.8 billion. Altria is the U.S. tobacco company behind the premium tobacco brand Marlboro.
When the Altria deal closed over two years ago, the expectation was that Cronos would use this capital to push into the U.S., as well as work hand-in-hand with Altria to develop high-margin derivatives, such as vapes. With cigarette volume declining in the U.S., it's been in Altria's interests to develop alternate sales channels beyond just tobacco. However, much like in 2019, cannabis reform measures in the U.S. have stalled. This has effectively minimized the impact of having Altria as a vested partner.
What's more, Cronos did make a deal to enter the U.S. market, but it looks to have grossly overpaid. In September 2019, Cronos closed on a $300 million buyout of four operating subsidiaries of Redwood Holding Group in order to get its hands on the Lord Jones brand of cannabidiol (CBD)-infused beauty products. Though CBD was all the rage in 2019, U.S. sales have fizzled badly since. Based on first-quarter sales, Cronos is on pace to bring in less than $10 million in the U.S. this year. That's peanuts for a company Cronos shelled out $300 million for.
Although the company deserves a pat on the back for not overextending its production capacity in 2018 and 2019 like some Canadian pot stocks (ahem, Aurora), it could be argued that Cronos' lack of production will hold it back. Outside of Peace Naturals, which caps out around 40,000 kilos of annual output, Cronos' asset portfolio simply doesn't match its $2.7 billion market cap.
Until Cronos Group narrows its quarterly losses and demonstrates serious sales growth momentum, it has no business, in my view, being valued at much more than its net cash value ($1.23 billion).
Image source: Getty Images.
Sundial Growers
The third pot stock to avoid like the plague in August is a frequent visitor to this monthly list: Sundial Growers (NASDAQ: SNDL).
Sundial is the fourth most-held stock by retail investors on Robinhood and is lauded for two key reasons. First, it's a penny stock, and younger investors have a tendency (albeit incorrect) to believe that buying more shares of a low-priced stock will give them a better chance to quickly grow their wealth. Second, Sundial is sitting on a mountain of cash, $866 million, as of May 7.
Though this war chest ensures that Sundial has more than enough capital to execute on its business strategy for the foreseeable future, the real issue is that management has been continually selling stock to raise this cash. Instead of simply selling enough stock to pay off its debt, Sundial's management team has been persistently raising capital and drowning the company's investors in new shares for the past 10 months. Between Oct. 1, 2020 and May 7, 2021, Sundial issued approximately 1.351 billion new shares of stock, which more than tripled its outstanding share count.
With at least 1.86 billion shares outstanding, the company has virtually no chance of ever generating meaningful earnings per share. Additionally, having so many shares outstanding (with more dilution likely coming) is liable to keep the company's share price around or below $1. That makes delisting from the Nasdaq exchange a real possibility.
To make matters worse, the company's retail cultivation operations have been subpar. Switching from wholesale to retail has led to persistent double-digit declines in gross cannabis revenue. While I will point out that Sundial's operating performance has improved, it's still a long way from generating a recurring profit and in any way justifying a $1.5 billion market cap.
In March, I dubbed Sundial the worst pot stock money can buy. I still stand by that statement.
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 – 15 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
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. 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 Aurora Cannabis (NASDAQ: ACB) was once the most-held stock on online investing app Robinhood. And if you need one more rock-solid reason to avoid Aurora Cannabis like the plague, take into account the company's nonstop share-based dilution that's been used to fund acquisitions and cover day-to-day operating expenses. In September 2019, Cronos closed on a $300 million buyout of four operating subsidiaries of Redwood Holding Group in order to get its hands on the Lord Jones brand of cannabidiol (CBD)-infused beauty products. | Aurora Cannabis Aurora Cannabis (NASDAQ: ACB) was once the most-held stock on online investing app Robinhood. Like Aurora, Cronos is a Canadian weed stock that's pretty popular with retail investors on Robinhood. Outside of Peace Naturals, which caps out around 40,000 kilos of annual output, Cronos' asset portfolio simply doesn't match its $2.7 billion market cap. | Aurora Cannabis Aurora Cannabis (NASDAQ: ACB) was once the most-held stock on online investing app Robinhood. Cronos Group Another pot stock that should be given the cold shoulder by investors in August is Cronos Group (NASDAQ: CRON). Although the company deserves a pat on the back for not overextending its production capacity in 2018 and 2019 like some Canadian pot stocks (ahem, Aurora), it could be argued that Cronos' lack of production will hold it back. | Aurora Cannabis Aurora Cannabis (NASDAQ: ACB) was once the most-held stock on online investing app Robinhood. Until Cronos Group narrows its quarterly losses and demonstrates serious sales growth momentum, it has no business, in my view, being valued at much more than its net cash value ($1.23 billion). Instead of simply selling enough stock to pay off its debt, Sundial's management team has been persistently raising capital and drowning the company's investors in new shares for the past 10 months. |
36736.0 | 2021-08-02 00:00:00 UTC | The Top 50 Robinhood Stocks in August | ACB | https://www.nasdaq.com/articles/the-top-50-robinhood-stocks-in-august-2021-08-02 | nan | nan | For more than a year, volatility has been a big theme for Wall Street. We watched the quickest decline of at least 30% in history for the benchmark S&P 500 during the first quarter of 2020, and we've borne witness to the strongest bounce-back rally from a bear-market bottom of all-time.
Whereas stock market volatility isn't every investors' cup of tea, it's the catalyst that's driven retail investors to put their money to work in the market.
Image source: Getty Images.
Online investing app Robinhood, which went public last week, has done a particularly good job of attracting new retail investors. Last year, it gained in the neighborhood of 3 million new users.
Robinhood's platform offers a number of perks that retail investors enjoy. For example, there's commission-free trading for shares of companies listed on the major U.S. exchanges. This means retail investors can put $10 to work right now without worrying about commission fees eating into their principle investment.
Robinhood also gifts free shares of stock to new members who transact on the platform, and it allows for fractional-share investing on a number of stocks. Instead of having to scrape together around $2,700 to buy a single share of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of Google and YouTube, fractional-share investing can allow smaller dollar amounts to be invested in fractions of a share.
While it's great to see retail investors putting their money to work in one of the greatest wealth creators on the planet, it's also unnerving to get a closer look at what they're buying. In many instances, Robinhood's retail investors are chasing meme stocks, momentum plays, penny stocks, and other undesirable companies.
If you don't believe me, take a gander at the 50 most-held Robinhood stocks as we enter August.
COMPANY COMPANY
1. Tesla Motors 26. Snap
2. Apple (NASDAQ: AAPL) 27. Bank of America
3. AMC Entertainment (NYSE: AMC) 28. Blackberry
4. Sundial Growers (NASDAQ: SNDL) 29. OrganiGram Holdings
5. Ford Motor 30. Coinbase Global
6. General Electric 31. Tilray
7. Nio 32. Facebook (NASDAQ: FB)
8. Walt Disney 33. Nvidia
9. Amazon (NASDAQ: AMZN) 34. Starbucks
10. Microsoft 35. Virgin Galactic
11. American Airlines Group 36. Canopy Growth
12. Plug Power 37. Advanced Micro Devices
13. Carnival 38. Vanguard S&P 500 ETF
14. Nokia 39. AT&T
15. Aurora Cannabis (NASDAQ: ACB) 40. SPDR S&P 500 ETF
16. Pfizer 41. Twitter
17. GoPro 42. Moderna
18. Zomedica 43. Coca-Cola
19. Naked Brand Group 44. FuelCell Energy
20. Lucid Group 45. Norwegian Cruise Line
21. Delta Air Lines 46. Ideanomics
22. Netflix (NASDAQ: NFLX) 47. Workhorse Group
23. Palantir Technologies 48. General Motors
24. GameStop (NYSE: GME) 49. Castor Maritime
25. Alibaba 50. United Airlines
Data source: Robinhood, as of July 30, 2021.
Meme-mania continues
Like summer and ice cream, meme stocks and Robinhood retail traders go hand in hand. Meme stocks are companies lauded for the social media buzz they create, rather than their operating performance. Popular meme stocks AMC Entertainment, GameStop, Sundial Growers, and Zomedica take up four of the top 18 spots on Robinhood's leaderboard.
For retail investors, the lure of these stocks is the expectation of a short squeeze -- a short-term event whereby pessimists (short-sellers) feel trapped in their positions and head for the exit at once, causing a rising share price to skyrocket. However, a squeeze is highly unlikely for any of these names.
For instance, GameStop has seen its short interest decline considerably since the beginning of the year. Though GameStop is now financially secure after two substantive capital raises, it's going to be some time before it has an opportunity to be profitable, once again. The company's previous management team whiffed on the digital gaming transition, which has left GameStop with few alternatives other than to continue closing its brick-and-mortar stores to reduce its expenses.
Meanwhile, movie theater chain AMC Entertainment faces a double whammy. On one hand, its operating performance is abysmal -- and that's putting it nicely. It doesn't have anywhere near enough cash to pay off its outstanding debts, as evidenced by plunging 2026 and 2027 bond prices, and the movie theater industry is seeing less revenue as a result of streaming and considerably shorter periods of film exclusivity with studios.
AMC is also contending with an impassioned group of retail investors claiming every conspiracy under the sun (e.g., dark pool abuse, failure to delivers, naked short shares, and so on). The problem is, not a single one of these audacious claims can be backed up with fact. Not one. Meme investors are probably going to get crushed in the quarters that lie ahead.
Image source: Getty Images.
Canadian pot stocks are a hit
Another big theme for Robinhood's retail investors is cannabis stocks. Unfortunately, Robinhood doesn't allow its members to buy companies listed on the over-the-counter exchange. This means most of the high-quality, fast-growing, and profitable U.S. pot stocks can't be purchased on the platform. Instead, Robinhood investors are stuck with the perpetually underperforming Canadian marijuana stocks. Five of the 36 most-held stocks on Robinhood are Canadian pot stocks.
Even though legalized weed sales in Canada are on track to more than double by 2026, according to a report by cannabis analytics company BDSA, Canadian pot stocks are a mess. They've been clobbered by regulatory miscues at the federal and provincial level that have slowed the dispensary license approval process and created supply bottlenecks. Canadian pot stocks have also sabotaged their progress by grossly overpaying for acquisitions and expanding well beyond what demand dictated.
For example, Aurora Cannabis, once the most-held stock on the Robinhood platform, had 15 production facilities back in 2019. It was expected to lead the world in cannabis output, with the potential to easily surpass 600,000 kilos a year. But in less than two years, Aurora Cannabis has closed five smaller grow farms, sold off a 1 million-square-foot greenhouse that it never retrofit for production, and halted construction on two of its largest production facilities. Even with these cost cuts, Aurora is still losing money hand over fist and has had to turn to persistent dilutive share offerings to raise capital.
Aurora's not alone. Penny stock Sundial Growers has completely destroyed shareholder value with its incessant share offerings to raise capital. In just over a seven-month stretch between Oct. 1, 2020 and May 7, 2021, Sundial's outstanding share count ballooned from 509 million to 1.86 billion. At this level, Sundial has virtually no chance of ever generating a meaningful per-share profit, and it's a good bet to be delisted without going the reverse split route. Even though a reverse split has no impact on a company's market cap, it's often viewed as a sign of operating weakness.
Image source: Amazon.
The FAANGs get some love
However, one area where I can commend Robinhood's retail investors is their love for the FAANG stocks. By FAANG, I'm referring to Facebook, Apple, Amazon, Netflix, and Alphabet (formerly Google, ergo the "G" in FAANG). Respectively, they rank as No.'s 32, 2, 9, 22, and 58 on Robinhood.
As Motley Fool co-founder David Gardner has previously opined, winners keep winning. The FAANG stocks are a group of winners with clear-cut competitive advantages.
Facebook is the most-dominant social media platform on the planet. It ended June with over 3.5 billion people visiting an owned asset each month, including 2.9 billion people logging onto its namesake site monthly.
Apple provides the most popular smartphone device (iPhone) in the U.S., and it's arguably a global leader in brand loyalty. On a trailing 12-month basis, Apple has generated north of $104 billion in operating cash flow.
Amazon dominates not one, but two niches. It holds just over 40% of all U.S. online retail market share in the U.S., according to eMarketer, and it brought in close to a third of all global cloud infrastructure spending in the first quarter, based on a report by Canalys.
Netflix ended the June quarter with more than 209 million global paid streaming subscribers and has produced dozens of original shows and movies that've helped garner and retain viewers.
Alphabet subsidiary Google has consistently handled between 91% and 93% of global internet search share over the past 12 months, per GlobalStats. Meanwhile, YouTube has become one of the three most-visited social sites on the planet.
The FAANGs have an exceptional track record of delivering for investors.
10 stocks we like better than Amazon
When our award-winning 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 Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.
Sean Williams owns shares of AT&T, Amazon, Bank of America, and Facebook. The Motley Fool owns shares of and recommends Advanced Micro Devices, Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, NIO Inc., Netflix, Nvidia, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, and Walt Disney. The Motley Fool recommends BlackBerry, Carnival, Delta Air Lines, and Moderna Inc. and recommends the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short July 2021 $120 calls on Starbucks, and short March 2023 $130 calls on Apple. 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) 40. For retail investors, the lure of these stocks is the expectation of a short squeeze -- a short-term event whereby pessimists (short-sellers) feel trapped in their positions and head for the exit at once, causing a rising share price to skyrocket. It doesn't have anywhere near enough cash to pay off its outstanding debts, as evidenced by plunging 2026 and 2027 bond prices, and the movie theater industry is seeing less revenue as a result of streaming and considerably shorter periods of film exclusivity with studios. | Aurora Cannabis (NASDAQ: ACB) 40. Popular meme stocks AMC Entertainment, GameStop, Sundial Growers, and Zomedica take up four of the top 18 spots on Robinhood's leaderboard. The Motley Fool owns shares of and recommends Advanced Micro Devices, Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, NIO Inc., Netflix, Nvidia, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, and Walt Disney. | Aurora Cannabis (NASDAQ: ACB) 40. Canadian pot stocks are a hit Another big theme for Robinhood's retail investors is cannabis stocks. The Motley Fool owns shares of and recommends Advanced Micro Devices, Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, NIO Inc., Netflix, Nvidia, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, and Walt Disney. | Aurora Cannabis (NASDAQ: ACB) 40. In many instances, Robinhood's retail investors are chasing meme stocks, momentum plays, penny stocks, and other undesirable companies. The Motley Fool owns shares of and recommends Advanced Micro Devices, Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, NIO Inc., Netflix, Nvidia, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, and Walt Disney. |
36737.0 | 2021-07-29 00:00:00 UTC | Is Aurora Cannabis a Buy? | ACB | https://www.nasdaq.com/articles/is-aurora-cannabis-a-buy-2021-07-29 | nan | nan | Aurora Cannabis (NASDAQ: ACB) has long been an underperforming marijuana stock. And year to date, it's off to another rocky start, down 15% in 2021 while the Horizons Marijuana Life Sciences ETF has risen 18%. But there is hope that the company could become more investable as it has been shedding costs and improving its bottom line.
There's definitely risk involved here, but investors have seen just how quickly the stock can rise on some bullishness; shares of Aurora skyrocketed to highs of nearly $19 in February amid the meme hype. Should contrarian investors consider picking up the stock before the company announces its year-end results in September?
Image source: Getty Images.
Aurora has been making progress on multiple fronts
Although Aurora has struggled with generating consistent revenue growth and staying out of the red, that doesn't mean the business hasn't been making progress. If nothing else, it looks a lot more stable nowadays. The company reported cash on hand on May 12 of 525 million Canadian dollars, compared with just CA$230 million a year earlier. That's a solid improvement, especially because in early 2020, many investors were concerned that Aurora could run out of money within just a few months.
The company is in a much better place now, and its operations are much more sustainable. Over the trailing 12 months, Aurora has burned through CA$280 million. If it maintained that rate, its cash balance could potentially fund its operations for nearly two years (assuming its needs for capital and investments were minimal). That's an important consideration for investors in a company that has normally been quick to raise money through stock issues. While having a significant chunk of cash on hand doesn't guarantee that it won't pursue further offerings in the near future, it could minimize the need to do so.
Aurora has also been making strides in improving its bottom line. For the third quarter ending March 31, the company reported an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of CA$24 million. That's less than half the CA$50 million loss it incurred a year earlier. And the company said it found another CA$60 million to CA$80 million in annual costs that it can trim within 18 months.
Revenue might be the biggest problem
Improvements in EBITDA and cash flow would be great for investors to see. However, if the company can't achieve that while growing its top line, it may not be enough for the stock to rally. There are many great cannabis stocks out there that are achieving incredible sales numbers, and if Aurora wants to attract growth investors, it's going to need a much stronger top line.
In Q3, sales of CA$55 million were down 21% year over year. The company did particularly badly in the consumer segment, where cannabis net revenue was just CA$18 million -- less than half of what the company generated a year earlier. Aurora blamed the poor results primarily on COVID-19 and the impact of lockdowns on distributors and retailers. Ontario, Canada's largest province, only began loosening its COVID-19 restrictions in June, so investors may need to wait a couple of quarters before consumer numbers improve.
A wait-and-see approach remains safest for this stock
It's easy to be negative on a stock that has lost close to 90% of its value since 2019 (the Marijuana Life Sciences ETF, by comparison, is down 35% during that time frame), but there are reasons for investors to have some optimism around Aurora. And from the surge in the stock's value back in February, you can see that investors are eager to believe that the business is on the right track.
That said, it isn't quite there yet, and there could still be a long road ahead. Aurora needs to get to profitability, and its sales numbers need to get a lot better. With lockdowns still likely impacting its upcoming quarterly results (at least on the consumer side), I wouldn't expect a strong rebound this coming quarter. But given that the Canadian pot market reached an all-time high in May with CA$313 million in sales, Aurora's fourth-quarter numbers could still look better than Q3's.
At a minimum, I would wait for at least a couple of quarters' worth of positive adjusted EBITDA and strong sales growth before even considering buying this pot stock. Waiting for the company to deliver consistent results might sacrifice some potential gains along the way, but it will also prevent you from incurring significant losses by gambling on what's proven to have been an extremely risky stock over the past few years.
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 – 15 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 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 long been an underperforming marijuana stock. There's definitely risk involved here, but investors have seen just how quickly the stock can rise on some bullishness; shares of Aurora skyrocketed to highs of nearly $19 in February amid the meme hype. Ontario, Canada's largest province, only began loosening its COVID-19 restrictions in June, so investors may need to wait a couple of quarters before consumer numbers improve. | Aurora Cannabis (NASDAQ: ACB) has long been an underperforming marijuana stock. That's less than half the CA$50 million loss it incurred a year earlier. The company did particularly badly in the consumer segment, where cannabis net revenue was just CA$18 million -- less than half of what the company generated a year earlier. | Aurora Cannabis (NASDAQ: ACB) has long been an underperforming marijuana stock. The company reported cash on hand on May 12 of 525 million Canadian dollars, compared with just CA$230 million a year earlier. The company did particularly badly in the consumer segment, where cannabis net revenue was just CA$18 million -- less than half of what the company generated a year earlier. | Aurora Cannabis (NASDAQ: ACB) has long been an underperforming marijuana stock. There are many great cannabis stocks out there that are achieving incredible sales numbers, and if Aurora wants to attract growth investors, it's going to need a much stronger top line. In Q3, sales of CA$55 million were down 21% year over year. |
36738.0 | 2021-07-28 00:00:00 UTC | Why Sundial, Aurora Cannabis, and Other Marijuana Stocks Are Soaring Today | ACB | https://www.nasdaq.com/articles/why-sundial-aurora-cannabis-and-other-marijuana-stocks-are-soaring-today-2021-07-28 | nan | nan | What happened
Wednesday is shaping up to be a profitable day for cannabis investors. Here's how some of the most popular pot stocks were performing as of 12:30 p.m. EDT today:
Sundial Growers (NASDAQ: SNDL), up 10%
OrganiGram Holdings (NASDAQ: OGI), up 9%
Aurora Cannabis (NASDAQ: ACB), up 8%
Canopy Growth (NASDAQ: CGC), up 7%
Hexo (NYSE: HEXO), up 7%
So what
The gains were sparked by a blockbuster earnings report from industry heavyweight Tilray (NASDAQ: TLRY). In its debut performance following its merger with fellow pot producer Aphria, Tilray delivered fiscal 2021 fourth-quarter results that were significantly higher than many investors expected.
Image source: Getty Images.
Tilray's revenue jumped 25% year over year to $142.2 million, fueled by a 36% surge in cannabis sales. It also reported a surprise profit of $33.6 million, or $0.18 per share. Analysts had expected the company to post a per-share loss of $0.12.
This strong level of growth from an industry giant bodes well for other marijuana businesses, and investors reacted by bidding up the shares of many cannabis companies.
Now what
We'll soon have an opportunity to confirm whether Tilray's gains are indicative of a broadscale expansion of the marijuana market, or if they're more reflective of the success of its company-specific growth initiatives. Fellow industry leader Canopy Growth is scheduled to report earnings on Aug. 6.
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 – 15 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
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends Hexo Corp. 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. | Here's how some of the most popular pot stocks were performing as of 12:30 p.m. EDT today: Sundial Growers (NASDAQ: SNDL), up 10% OrganiGram Holdings (NASDAQ: OGI), up 9% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 7% Hexo (NYSE: HEXO), up 7% So what The gains were sparked by a blockbuster earnings report from industry heavyweight Tilray (NASDAQ: TLRY). In its debut performance following its merger with fellow pot producer Aphria, Tilray delivered fiscal 2021 fourth-quarter results that were significantly higher than many investors expected. This strong level of growth from an industry giant bodes well for other marijuana businesses, and investors reacted by bidding up the shares of many cannabis companies. | Here's how some of the most popular pot stocks were performing as of 12:30 p.m. EDT today: Sundial Growers (NASDAQ: SNDL), up 10% OrganiGram Holdings (NASDAQ: OGI), up 9% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 7% Hexo (NYSE: HEXO), up 7% So what The gains were sparked by a blockbuster earnings report from industry heavyweight Tilray (NASDAQ: TLRY). The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends Hexo Corp. | Here's how some of the most popular pot stocks were performing as of 12:30 p.m. EDT today: Sundial Growers (NASDAQ: SNDL), up 10% OrganiGram Holdings (NASDAQ: OGI), up 9% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 7% Hexo (NYSE: HEXO), up 7% So what The gains were sparked by a blockbuster earnings report from industry heavyweight Tilray (NASDAQ: TLRY). This strong level of growth from an industry giant bodes well for other marijuana businesses, and investors reacted by bidding up the shares of many cannabis companies. 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. | Here's how some of the most popular pot stocks were performing as of 12:30 p.m. EDT today: Sundial Growers (NASDAQ: SNDL), up 10% OrganiGram Holdings (NASDAQ: OGI), up 9% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 7% Hexo (NYSE: HEXO), up 7% So what The gains were sparked by a blockbuster earnings report from industry heavyweight Tilray (NASDAQ: TLRY). It also reported a surprise profit of $33.6 million, or $0.18 per share. The Motley Fool recommends Hexo Corp. |
36739.0 | 2021-07-27 00:00:00 UTC | Why Hexo, Canopy Growth, and Aurora Cannabis Investors Are Scared | ACB | https://www.nasdaq.com/articles/why-hexo-canopy-growth-and-aurora-cannabis-investors-are-scared-2021-07-27 | nan | nan | What happened
"Congress to vote on marijuana, psychedelics and CBD this week," declared marijuana news hub Marijuana Moment yesterday evening -- but the reaction among marijuana investors wasn't at all what you'd expect.
As early as today, according to the report, the House of Representatives could begin voting on legislation to remove cannabis from the list of Schedule I substances forbidden for sale, use, or possession by federal law. And yet, in 1:05 p.m. EDT trading Tuesday, shares of Hexo (NYSE: HEXO) are down 4.6% while Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) have plummeted 6.8% apiece.
Image source: Getty Images.
So what
So what, precisely, is it that marijuana investors are scared of? Three possibilities spring to mind.
First and foremost, although the legislation introduced in the House today aims to broadly legalize marijuana, it lacks some provisions that marijuana legalization activists have advocated, including a ban on denying renters access to public housing based on marijuana use -- a factor that could continue to weigh on the product's popularity.
Next, as an article on PitchBook this week points out, because proposed legislation (in both the House and Senate) does broadly make marijuana easier to sell, possess, and use, it could potentially "spark up cannabis IPOs on Wall Street." And investors in existing cannabis stocks like Hexo, Canopy Growth, and Aurora Cannabis might not relish the idea of competition with a bunch of brand-new cannabis company IPOs.
And then there's the wild card -- that bit about "psychedelics" included in the headline of the Marijuana Moment report. As the site points out, the marijuana legalization legislation being proposed in the House, at least, includes an amendment that could legalize the use of federal funds to research uses for "psychedelics such as psilocybin, MDMA and ibogaine."
Now what
And here's the thing: Marijuana activists and marijuana investors have been so focused on getting their drug of choice legalized -- and enjoying the fruits of that legalization in the form of new revenue -- that they may not have considered what might happen if drugs such as mushrooms and ecstasy get legalized at the same time (or even a little later). Here, too, the possibility of competition for products produced by Hexo, Canopy Growth, and Aurora Cannabis may be rearing its ugly head.
Now that Congress has embarked upon the legalization of one drug, investors have to start considering what might be the effect of legalizing other drugs as well -- and what effect that would have upon the profitability of marijuana stocks.
10 stocks we like better than Canopy Growth Corp.
When our award-winning 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 Canopy Growth Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. 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. | And yet, in 1:05 p.m. EDT trading Tuesday, shares of Hexo (NYSE: HEXO) are down 4.6% while Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) have plummeted 6.8% apiece. As early as today, according to the report, the House of Representatives could begin voting on legislation to remove cannabis from the list of Schedule I substances forbidden for sale, use, or possession by federal law. Next, as an article on PitchBook this week points out, because proposed legislation (in both the House and Senate) does broadly make marijuana easier to sell, possess, and use, it could potentially "spark up cannabis IPOs on Wall Street." | And yet, in 1:05 p.m. EDT trading Tuesday, shares of Hexo (NYSE: HEXO) are down 4.6% while Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) have plummeted 6.8% apiece. What happened "Congress to vote on marijuana, psychedelics and CBD this week," declared marijuana news hub Marijuana Moment yesterday evening -- but the reaction among marijuana investors wasn't at all what you'd expect. And investors in existing cannabis stocks like Hexo, Canopy Growth, and Aurora Cannabis might not relish the idea of competition with a bunch of brand-new cannabis company IPOs. | And yet, in 1:05 p.m. EDT trading Tuesday, shares of Hexo (NYSE: HEXO) are down 4.6% while Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) have plummeted 6.8% apiece. What happened "Congress to vote on marijuana, psychedelics and CBD this week," declared marijuana news hub Marijuana Moment yesterday evening -- but the reaction among marijuana investors wasn't at all what you'd expect. First and foremost, although the legislation introduced in the House today aims to broadly legalize marijuana, it lacks some provisions that marijuana legalization activists have advocated, including a ban on denying renters access to public housing based on marijuana use -- a factor that could continue to weigh on the product's popularity. | And yet, in 1:05 p.m. EDT trading Tuesday, shares of Hexo (NYSE: HEXO) are down 4.6% while Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) have plummeted 6.8% apiece. What happened "Congress to vote on marijuana, psychedelics and CBD this week," declared marijuana news hub Marijuana Moment yesterday evening -- but the reaction among marijuana investors wasn't at all what you'd expect. As the site points out, the marijuana legalization legislation being proposed in the House, at least, includes an amendment that could legalize the use of federal funds to research uses for "psychedelics such as psilocybin, MDMA and ibogaine." |
36740.0 | 2021-07-24 00:00:00 UTC | Better Pot Stock: Canopy Growth vs. Aurora Cannabis | ACB | https://www.nasdaq.com/articles/better-pot-stock%3A-canopy-growth-vs.-aurora-cannabis-2021-07-24 | nan | nan | The global pandemic that affected almost every economic sector has been somewhat advantageous for the marijuana industry, as lockdowns boosted cannabis sales in many locations. That said, sales growth numbers have been better in the U.S. than in Canada, as some Canadian provinces are still challenged with regulatory hurdles that restrict the number of legal stores (though more are slated to open this year).
With cannabis sales rising, the industry is getting competitive. This year has already brought us some big acquisitions, both in Canada and in the U.S. Perhaps the biggest was the merging of two Canadian players, Aphria and Tilray, to create the "new" Tilray, which was completed in May. The recent acquisition of Harvest Health & Recreation by Florida-based Trulieve Cannabis was also a highlight.
But what are two of the most popular cannabis companies up to this year? Canadian player Aurora Cannabis (NASDAQ: ACB) has been on a roller-coaster ride since 2020, while fellow Canadian company Canopy Growth (NASDAQ: CGC) has held its ground. But both are still unprofitable. Let's take a look at their progress this year and determine which of these two pot stocks is the better buy now.
Image source: Getty Images.
Aurora Cannabis has a rocky path ahead
Despite last year's cost-cutting efforts under its "facility rationalizations" plan (which included closing down unproductive facilities and focusing on the productive ones), Aurora still seems to be struggling. It did manage to realize cost savings of 300 million Canadian dollars in its recent third quarter, ended March 31, and expects another CA$60 million to CA$80 million in savings annually over the next 18 months.
It also managed to bring down its selling, general and administrative (SG&A) expenses to CA$45 million, down CA$33 million from the year-ago period in Q3. However, these achievements weren't enough to help it make a profit. The company recorded earnings before interest, tax, depreciation, and amortization (EBITDA) losses of CA$24 million, down from CA$49 million in Q3 2020. That's a good sign, but not a strong indicator that it is heading toward recovery.
Despite having an early mover advantage in the Canadian market, its medical cannabis revenue fell 17% year over year to CA$36 million in the third quarter. Meanwhile, Canopy Growth generated CA$55 million in revenue just from medical cannabis in Canada in its fiscal fourth quarter, which ended March 31.
Canopy has a strong partner in Constellation Brands (more on that below), but Aurora doesn't have a similar backer to fund its investment in the production of high-margin cannabis derivatives -- vapes, edibles, beverages, and more, which Canada legalized in October 2019 -- that could help boost its revenue growth. Aurora's total revenue for the third quarter fell 25% year over year to CA$55 million. On the recreational front, cannabis sales also dropped 53% to CA$18 million from the year-ago period. The disappointing third-quarter results don't paint a good picture for Aurora this year.
Canopy Growth had a bad quarter, but it can still turn itself around
Canopy, meanwhile, is on a path of transforming itself by reducing costs and achieving positive EBITDA. It has been working on growing its revenue, which shows in its recent quarterly results. In its fiscal Q4 2021, revenue was up 38% from the year-ago period to CA$148 million.
However, revenue growth has to be consistent for the company to achieve profitability while keeping costs lower. In Q4, it managed to lower its SG&A costs by 25% year over year to CA$148 million, which helped reduce EBITDA losses to CA$94 million from CA$102 million in the year-ago period. But it is still far away from generating profits.
Canopy has been heavily focusing on developing innovative derivatives like vapes, cannabis-infused chocolates, and beverages, thanks to its U.S. beverage giant partner Constellation Brands, which does most of its financial lifting. Its cannabis beverages in particular have achieved good customer feedback, bringing in more sales. For the full fiscal year, its tetrahydrocannabinol (THC) beverages captured a 35% dollar share of the total beverage category in the Canadian recreational cannabis market. Its ultimate target, however, is the U.S. cannabis beverage market, which is a long shot until federal legalization happens. Therefore, for now, the company has to focus on driving revenue growth in either Canada or international markets to hit profitability.
An obvious choice
Even though neither company has achieved positive EBITDA yet, Canopy Growth is probably closer to its target than its peer Aurora. Thanks to Constellation's backing, Canopy doesn't have to worry about capital. If it continues to keep its costs lower and drive revenue growth from the high-margin derivatives products, there is a possibility that it could achieve positive EBITDA by the second half of fiscal 2022, which management has assured it's confident it can do.
Meanwhile, Aurora's management believes it will be EBITDA positive in the next 18 months. But based on Aurora's history of failing to deliver on its promises, I find this difficult to believe -- the company still has many challenges to overcome. It has to continue not only lowering its costs, but also reducing the dilution of its stock. Further stock dilution will only bring down its stock price, as it's usually seen as a sign that a company has failed to raise capital by any other means.
At the moment, Canadian pot stocks are risky until they can generate profits and prove that they are worthwhile investments. I would instead suggest including their U.S. counterparts -- such as Curaleaf Holdings, Green Thumb Industries, and Cresco Labs -- in your portfolio; all of these are in a much more profitable position.
That said, investors who still have faith in Canadian pot stocks (and a strong risk appetite) should go for the better option among these two Canadian players. Canopy has a strong financial partner, growing revenue, innovative products, better opportunities in the U.S. and international cannabis markets, and is closer to profitability -- all of which make it a better cannabis pick for the long term.
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 – 15 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 owns shares of and recommends Cresco Labs Inc. and 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. | Canadian player Aurora Cannabis (NASDAQ: ACB) has been on a roller-coaster ride since 2020, while fellow Canadian company Canopy Growth (NASDAQ: CGC) has held its ground. Meanwhile, Canopy Growth generated CA$55 million in revenue just from medical cannabis in Canada in its fiscal fourth quarter, which ended March 31. Canopy has a strong partner in Constellation Brands (more on that below), but Aurora doesn't have a similar backer to fund its investment in the production of high-margin cannabis derivatives -- vapes, edibles, beverages, and more, which Canada legalized in October 2019 -- that could help boost its revenue growth. | Canadian player Aurora Cannabis (NASDAQ: ACB) has been on a roller-coaster ride since 2020, while fellow Canadian company Canopy Growth (NASDAQ: CGC) has held its ground. It did manage to realize cost savings of 300 million Canadian dollars in its recent third quarter, ended March 31, and expects another CA$60 million to CA$80 million in savings annually over the next 18 months. Meanwhile, Canopy Growth generated CA$55 million in revenue just from medical cannabis in Canada in its fiscal fourth quarter, which ended March 31. | Canadian player Aurora Cannabis (NASDAQ: ACB) has been on a roller-coaster ride since 2020, while fellow Canadian company Canopy Growth (NASDAQ: CGC) has held its ground. It did manage to realize cost savings of 300 million Canadian dollars in its recent third quarter, ended March 31, and expects another CA$60 million to CA$80 million in savings annually over the next 18 months. Despite having an early mover advantage in the Canadian market, its medical cannabis revenue fell 17% year over year to CA$36 million in the third quarter. | Canadian player Aurora Cannabis (NASDAQ: ACB) has been on a roller-coaster ride since 2020, while fellow Canadian company Canopy Growth (NASDAQ: CGC) has held its ground. Despite having an early mover advantage in the Canadian market, its medical cannabis revenue fell 17% year over year to CA$36 million in the third quarter. Aurora's total revenue for the third quarter fell 25% year over year to CA$55 million. |
36741.0 | 2021-07-22 00:00:00 UTC | Why Aurora Cannabis, Tilray, Hexo, and Sundial Investors Are Panicking Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-tilray-hexo-and-sundial-investors-are-panicking-today-2021-07-22 | nan | nan | What happened
Call it a "Reefer Madness" moment. In a flashback to the classic 1936 anti-drug film, marijuana investors got spooked today by news reports of health concerns among cannabis consumers -- and it's playing havoc with marijuana stocks.
In 1:55 p.m. EDT trading:
Aurora Cannabis (NASDAQ: ACB) fell 3.5%;
Hexo (NYSE: HEXO) has lost 3.8%;
Sundial Growers (NASDAQ: SNDL) stock is down 4.4%;
and Tilray (NASDAQ: TLRY) got thrown for a 4.7% loss.
Image source: Getty Images.
So what
Separate articles published on major news sites over the past couple of days included:
Recounting stories of children eating cannabis gummies and suffering overdoses (CBS);
Citing a study linking a rising incidence of schizophrenia to "problematic use of marijuana" (CNN);
and quoting an anti-marijuana activist calling it a "highly processed product" that's a source of "cannabis-induced psychosis" (Fox News).
Now what
These negative media mentions come at the same time when two competing marijuana legalization bills are making their way through the U.S. Senate and House, respectively -- and they come at the same time when President Biden is considering whether he will (or will not) sign any legalization bill that ultimately receives passing votes from Congress.
The more strident the criticism gets, the more likely the president will ultimately decide he will not sign a bill legalizing marijuana. And seeing as that seems to be the direction he was leaning before these headlines, I'd say that the chances for cannabis becoming legal at the federal level just got a whole lot worse.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. 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. | In 1:55 p.m. EDT trading: Aurora Cannabis (NASDAQ: ACB) fell 3.5%; Hexo (NYSE: HEXO) has lost 3.8%; Sundial Growers (NASDAQ: SNDL) stock is down 4.4%; and Tilray (NASDAQ: TLRY) got thrown for a 4.7% loss. So what Separate articles published on major news sites over the past couple of days included: Recounting stories of children eating cannabis gummies and suffering overdoses (CBS); Citing a study linking a rising incidence of schizophrenia to "problematic use of marijuana" (CNN); and quoting an anti-marijuana activist calling it a "highly processed product" that's a source of "cannabis-induced psychosis" (Fox News). Now what These negative media mentions come at the same time when two competing marijuana legalization bills are making their way through the U.S. Senate and House, respectively -- and they come at the same time when President Biden is considering whether he will (or will not) sign any legalization bill that ultimately receives passing votes from Congress. | In 1:55 p.m. EDT trading: Aurora Cannabis (NASDAQ: ACB) fell 3.5%; Hexo (NYSE: HEXO) has lost 3.8%; Sundial Growers (NASDAQ: SNDL) stock is down 4.4%; and Tilray (NASDAQ: TLRY) got thrown for a 4.7% loss. The more strident the criticism gets, the more likely the president will ultimately decide he will not sign a bill legalizing marijuana. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | In 1:55 p.m. EDT trading: Aurora Cannabis (NASDAQ: ACB) fell 3.5%; Hexo (NYSE: HEXO) has lost 3.8%; Sundial Growers (NASDAQ: SNDL) stock is down 4.4%; and Tilray (NASDAQ: TLRY) got thrown for a 4.7% loss. So what Separate articles published on major news sites over the past couple of days included: Recounting stories of children eating cannabis gummies and suffering overdoses (CBS); Citing a study linking a rising incidence of schizophrenia to "problematic use of marijuana" (CNN); and quoting an anti-marijuana activist calling it a "highly processed product" that's a source of "cannabis-induced psychosis" (Fox News). See the 10 stocks *Stock Advisor returns as of June 7, 2021 Rich Smith has no position in any of the stocks mentioned. | In 1:55 p.m. EDT trading: Aurora Cannabis (NASDAQ: ACB) fell 3.5%; Hexo (NYSE: HEXO) has lost 3.8%; Sundial Growers (NASDAQ: SNDL) stock is down 4.4%; and Tilray (NASDAQ: TLRY) got thrown for a 4.7% loss. 10 stocks we like better than Aurora Cannabis Inc. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! |
36742.0 | 2021-07-19 00:00:00 UTC | Why Aurora Cannabis, Tilray, and Charlotte's Web Stocks Fell Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-tilray-and-charlottes-web-stocks-fell-today-2021-07-19 | nan | nan | What happened
It's been less than a year since then-vice presidential candidate Kamala Harris promised on national television that a Biden-Harris administration would support legislation to "decriminalize marijuana, and we will expunge the records of those who have been convicted of marijuana."
Fast forward a few months, and that promise seems almost within reach, with Senate Majority Leader Chuck Schumer recently unveiling a draft bill to legalize marijuana for recreational use. And yet, for the past several days, the stocks of cannabis companies such as Aurora Cannabis (NASDAQ: ACB), Tilray (NASDAQ: TLRY), and Charlotte's Web Holdings (OTC: CWBHF) have been on a sustained downturn, falling anywhere from 13% to 17% since early last week.
On Monday, all three of these stocks declined again intraday. Tilray and Charlotte's Web closed the day in the red -- down 2.2% and 3.1%, respectively -- while Aurora ended flat.
Image source: Getty Images.
So what
But if things are moving in the right direction for marijuana legalization, and in the direction Harris promised us months ago, then why are marijuana investors seemingly so distressed?
Because President Joe Biden.
As MarijuanaMoment.net opined last week, despite Harris' avowed support for marijuana legalization, the person who ultimately holds the pen that will decide the fate of any marijuana legalization law that passes Congress is apparently not a fan. To the contrary, the president supports only "modest reforms," reports MM, such as expunging criminal records (as Harris promised) and decriminalizing cannabis possession (which sort of sounds like what she promised last year, but isn't quite as expansive as what she seemed to promise -- or what reform advocates had hoped she had promised).
And in any case, according to White House Press Secretary Jen Psaki, the White House has "no new endorsements" it wants to make in the wake of the new Senate bill's unveiling. Read between the lines, and that kind of sounds she's saying the president out-and-out opposes legalization.
Now what
So where does this leave marijuana investors today?
Pew Research polls show that 91% of U.S. voters now favor legalizing marijuana, and you have to figure that at some point, Biden is going to come around to this view himself, and get back on track with his running mate's campaign pledge -- and with the twin bills to legalize cannabis in Congress.
That being said, in a story that came out Friday, ABC News highlighted the despondency of legalization advocates, quoting one cannabis CEO wondering aloud, "why would a Democratically controlled Congress want to put a legalization bill in front of a president from their party who has already said he doesn't want to sign a legalization bill?"
If even marijuana companies are starting to worry about the prospects for marijuana legalization, is it any wonder that marijuana investors are getting a little worried about that, too?
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Charlotte's Web Holdings. The Motley Fool recommends Charlotte's Web. 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. | And yet, for the past several days, the stocks of cannabis companies such as Aurora Cannabis (NASDAQ: ACB), Tilray (NASDAQ: TLRY), and Charlotte's Web Holdings (OTC: CWBHF) have been on a sustained downturn, falling anywhere from 13% to 17% since early last week. Fast forward a few months, and that promise seems almost within reach, with Senate Majority Leader Chuck Schumer recently unveiling a draft bill to legalize marijuana for recreational use. Pew Research polls show that 91% of U.S. voters now favor legalizing marijuana, and you have to figure that at some point, Biden is going to come around to this view himself, and get back on track with his running mate's campaign pledge -- and with the twin bills to legalize cannabis in Congress. | And yet, for the past several days, the stocks of cannabis companies such as Aurora Cannabis (NASDAQ: ACB), Tilray (NASDAQ: TLRY), and Charlotte's Web Holdings (OTC: CWBHF) have been on a sustained downturn, falling anywhere from 13% to 17% since early last week. So what But if things are moving in the right direction for marijuana legalization, and in the direction Harris promised us months ago, then why are marijuana investors seemingly so distressed? The Motley Fool recommends Charlotte's Web. | And yet, for the past several days, the stocks of cannabis companies such as Aurora Cannabis (NASDAQ: ACB), Tilray (NASDAQ: TLRY), and Charlotte's Web Holdings (OTC: CWBHF) have been on a sustained downturn, falling anywhere from 13% to 17% since early last week. Pew Research polls show that 91% of U.S. voters now favor legalizing marijuana, and you have to figure that at some point, Biden is going to come around to this view himself, and get back on track with his running mate's campaign pledge -- and with the twin bills to legalize cannabis in Congress. That being said, in a story that came out Friday, ABC News highlighted the despondency of legalization advocates, quoting one cannabis CEO wondering aloud, "why would a Democratically controlled Congress want to put a legalization bill in front of a president from their party who has already said he doesn't want to sign a legalization bill?" | And yet, for the past several days, the stocks of cannabis companies such as Aurora Cannabis (NASDAQ: ACB), Tilray (NASDAQ: TLRY), and Charlotte's Web Holdings (OTC: CWBHF) have been on a sustained downturn, falling anywhere from 13% to 17% since early last week. So what But if things are moving in the right direction for marijuana legalization, and in the direction Harris promised us months ago, then why are marijuana investors seemingly so distressed? Pew Research polls show that 91% of U.S. voters now favor legalizing marijuana, and you have to figure that at some point, Biden is going to come around to this view himself, and get back on track with his running mate's campaign pledge -- and with the twin bills to legalize cannabis in Congress. |
36743.0 | 2021-07-16 00:00:00 UTC | Top Weed Stocks To Watch Today? 3 For Your Watchlist | ACB | https://www.nasdaq.com/articles/top-weed-stocks-to-watch-today-3-for-your-watchlist-2021-07-16 | nan | nan | 3 Trending Cannabis Stocks For Your July 2021 Watchlist
While investors scramble to find the best stocks as inflation surges, weed stocks continue to gain traction. Arguably, some would even say that they are among the hottest stocks right now in the stock market. Given the current growth runway for the industry as a whole globally, I can understand why. For starters, the world today is growing increasingly fond of the calming substance. Understandably, with more time to conduct proper research, we can find more applications for cannabis emerging across the board. All this has and continues to expand the growth opportunities for the global marijuana industry today.
In fact, things continue to heat up in the growing legal U.S. cannabis market now. Earlier this week, Senate Majority leader Chuck Schumer introduced the Cannabis Administration and Opportunity Act (CAOA) draft bill. Should the CAOA be successful, we could see the end of cannabis prohibition in the U.S. At the same time, it would see the government regulate and tax marijuana like alcohol and tobacco. Safe to say, this ideal outcome could spell massive tailwinds ahead for the industry moving forward. Likewise, even Tilray (NASDAQ: TLRY) CEO Irwin Simon. believes that U.S. legalization could happen within the next 24 months.
Given these developments in the weed industry, the top weed stocks in the stock market today could be in focus. Firstly, industry lead Tilray continues to grow its business in both domestic and international markets. Secondly, investors may also want to consider pick-and-shovel plays such as GrowGeneration (NASDAQ: GRWG) or weed accessory retailers like High Tide (NASDAQ: HITI). Both GRWG stock and HITI stock are up by over 250% in the past year. With all that said, here are three trending cannabis stocks worth knowing in the stock market now.
Top Weed Stocks To Watch In July 2021
Aurora Cannabis Inc. (NASDAQ: ACB)
Cresco Labs Inc. (OTCMKTS: CRLBF)
Innovative Industrial Properties Inc. (NYSE: IIPR)
Aurora Cannabis Inc.
Starting us off today is Aurora Cannabis Inc. In short, it is a Canadian licensed cannabis producer. Through its global cannabis portfolio, the company caters to both the medical and consumer markets. Among its core divisions are its Aurora, Aurora Drift, San Rafael ’71, MedReleaf, and CanniMed brands to name a few. In particular, demand for the company’s medical cannabis products seems to be growing now. In its latest quarter fiscal posted in May, Aurora saw its international medical sales skyrocket by 134% year-over-year. Now, seeing as Aurora is an upcoming name in the cannabis industry, ACB stock could be worth watching.
While the company’s shares may be trading at a loss this year, Aurora does not seem to be slowing down. Just yesterday, the company completed a $6.36 million shipment of cannabis to Israel. This would be one of the largest single shipments towards the region to date. Evidently, the sale would be a testament to Aurora’s growing influence in international markets now. On top of this, the company is also actively collaborating with Cantek Global, a leading name in Israel’s medical marijuana industry now. The deal will see a minimum supply of 4,000 kgs of bulk dried flowers delivered annually to Israel. Aside from Israel, the company also boasts leadership positions in both the Canadian and European markets.
Furthermore, Aurora is also hard at work bolstering its existing brands as well. As of last month, the company’s San Rafael ’71 brand now boasts three new products. Senior Director John McEachern believes that this adds to Aurora’s robust genetics library of cannabis offerings, meeting more diverse consumer demands. Could all of this make ACB stock a top weed stock to invest in for you?
Source: TD Ameritrade TOS
Read More
4 Semiconductor Stocks To Watch Right Now
Good Stocks To Invest In Right Now? 4 IPO Stocks To Watch
Cresco Labs Inc.
Following that, we have a U.S.-based marijuana company, Cresco Labs Inc. By Cresco’s estimates, it is one of the largest vertically integrated multistate cannabis operators in the U.S. The company primarily identifies as a consumer-packaged goods provider and is the largest wholesaler of branded cannabis products locally. Similar to our previous entry, Cresco’s wide array of brands serves the medical and adult-use markets. For a sense of scale, Cresco currently operates across 10 states in the U.S. with 18 production facilities and 32 operational dispensaries.
With the current focus towards federal legalization in the U.S., we could be looking at exciting times ahead for CRLBF stock. Likewise, investors appear to feel the same as well. This would be the case seeing as the company’s shares are now up by over 115% in the past year. On the financial front, Cresco appears to be gaining momentum as well. Back in May, the company saw its total revenue skyrocket by over 170% year-over-year in its first-quarter fiscal. This was followed by a 272% increase in cash on hand over the same period.
This week, investors could be eyeing CRLBF stock as the company opens yet another dispensary in Philadelphia. The addition of the Sunnyside retail outlet marks Cresco’s fourth dispensary in the state. According to CEO Charlie Bachtell, Cresco’s Sunnyside retail platform continues to outpace industry averages on per store retail metrics. With all this in mind, would CRLBF stock be a top buy for you in thestock market today
Source: TD Ameritrade TOS
[Read More] 4 Artificial Intelligence Stocks To Watch Right Now
Innovative Industrial Properties Inc.
Last but not least we have Innovative Industrial Properties Inc. (IIPR). Now, IIPR primarily operates as a real estate investment trust (REIT). Simply put, the company primarily targets medical-use cannabis facilities for acquisition. After acquiring said facilities, the company works with tenants that operate in the marijuana industry. Unlike most pure-play names in the market, IIPR stock could be a more defensive play among weed stocks now. After all, the company would be less exposed to intense market competition among pure-play marijuana providers, given the structure of its main business.
To some extent, it seems like investors are already keen on the company’s shares. As demand for cannabis and its related products skyrocketed during the pandemic, so did IIPR stock. Since its pandemic era low, IIPR stock is sitting on gains of over 240%. Similarly, the company also posted stellar figures in its latest quarter fiscal back in May. In it, IIPR saw massive year-over-year leaps of 102% in total revenue and 118% in net income. Moreover, the company also announced that it would be increasing its dividend for the current quarter by 6%. This would mark a dividend of $1.32 per share for investors now.
If all that wasn’t enough, the company also provided a key update on its operations last week. In the second quarter so far, IIPR has already made four key acquisitions, all of which are currently being leased. Additionally, the company also carried out three lease amendments, providing more tenant improvements at its properties in Florida and Pennsylvania. With IIPR seemingly firing on all cylinders now, will you be adding IIPR stock to your portfolio?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Weed Stocks To Watch In July 2021 Aurora Cannabis Inc. (NASDAQ: ACB) Cresco Labs Inc. (OTCMKTS: CRLBF) Innovative Industrial Properties Inc. (NYSE: IIPR) Aurora Cannabis Inc. Now, seeing as Aurora is an upcoming name in the cannabis industry, ACB stock could be worth watching. Could all of this make ACB stock a top weed stock to invest in for you? | Top Weed Stocks To Watch In July 2021 Aurora Cannabis Inc. (NASDAQ: ACB) Cresco Labs Inc. (OTCMKTS: CRLBF) Innovative Industrial Properties Inc. (NYSE: IIPR) Aurora Cannabis Inc. Now, seeing as Aurora is an upcoming name in the cannabis industry, ACB stock could be worth watching. Could all of this make ACB stock a top weed stock to invest in for you? | Top Weed Stocks To Watch In July 2021 Aurora Cannabis Inc. (NASDAQ: ACB) Cresco Labs Inc. (OTCMKTS: CRLBF) Innovative Industrial Properties Inc. (NYSE: IIPR) Aurora Cannabis Inc. Now, seeing as Aurora is an upcoming name in the cannabis industry, ACB stock could be worth watching. Could all of this make ACB stock a top weed stock to invest in for you? | Top Weed Stocks To Watch In July 2021 Aurora Cannabis Inc. (NASDAQ: ACB) Cresco Labs Inc. (OTCMKTS: CRLBF) Innovative Industrial Properties Inc. (NYSE: IIPR) Aurora Cannabis Inc. Now, seeing as Aurora is an upcoming name in the cannabis industry, ACB stock could be worth watching. Could all of this make ACB stock a top weed stock to invest in for you? |
36744.0 | 2021-07-14 00:00:00 UTC | CANADA STOCKS - TSX falls 0.61% to 20,147.24 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-0.61-to-20147.24-2021-07-14 | nan | nan | * The Toronto Stock Exchange's TSX falls 0.61 percent to 20,147.24
* Leading the index were TFI International Inc , up 8.8%, OceanaGold Corp OGC.TO, up 4.4%, and Wesdome Gold Mines Ltd WDO.TO, higher by 4.3%.
* Lagging shares were OrganiGram Holdings Inc OGI.TO, down 11.1%, Aurora Cannabis Inc ACB.TO, down 10.2%, and Tilray Inc TLRY.TO, lower by 8.0%.
* On the TSX 91 issues rose and 133 fell as a 0.7-to-1 ratio favored decliners. There were no and no new lows, with total volume of 174.4 million shares.
* The most heavily traded shares by volume were Enbridge Inc ENB.TO, Oceanagold Corp OGC.TO and Cenovus Energy Inc CVE.TO.
* The TSX's energy group .SPTTEN fell 3.55 points, or 2.6%, while the financials sector .SPTTFS climbed 0.36 points, or 0.1%.
* West Texas Intermediate crude futures CLc1 fell 3.08%, or $2.32, to $72.93 a barrel. Brent crude LCOc1 fell 2.41%, or $1.84, to $74.65 O/R
* The TSX is up 15.6% for the year.
This summary was machine generated July 14 at 21:03.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * Lagging shares were OrganiGram Holdings Inc OGI.TO, down 11.1%, Aurora Cannabis Inc ACB.TO, down 10.2%, and Tilray Inc TLRY.TO, lower by 8.0%. * The Toronto Stock Exchange's TSX falls 0.61 percent to 20,147.24 * Leading the index were TFI International Inc , up 8.8%, OceanaGold Corp OGC.TO, up 4.4%, and Wesdome Gold Mines Ltd WDO.TO, higher by 4.3%. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Oceanagold Corp OGC.TO and Cenovus Energy Inc CVE.TO. | * Lagging shares were OrganiGram Holdings Inc OGI.TO, down 11.1%, Aurora Cannabis Inc ACB.TO, down 10.2%, and Tilray Inc TLRY.TO, lower by 8.0%. * The Toronto Stock Exchange's TSX falls 0.61 percent to 20,147.24 * Leading the index were TFI International Inc , up 8.8%, OceanaGold Corp OGC.TO, up 4.4%, and Wesdome Gold Mines Ltd WDO.TO, higher by 4.3%. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Oceanagold Corp OGC.TO and Cenovus Energy Inc CVE.TO. | * Lagging shares were OrganiGram Holdings Inc OGI.TO, down 11.1%, Aurora Cannabis Inc ACB.TO, down 10.2%, and Tilray Inc TLRY.TO, lower by 8.0%. * The Toronto Stock Exchange's TSX falls 0.61 percent to 20,147.24 * Leading the index were TFI International Inc , up 8.8%, OceanaGold Corp OGC.TO, up 4.4%, and Wesdome Gold Mines Ltd WDO.TO, higher by 4.3%. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Oceanagold Corp OGC.TO and Cenovus Energy Inc CVE.TO. | * Lagging shares were OrganiGram Holdings Inc OGI.TO, down 11.1%, Aurora Cannabis Inc ACB.TO, down 10.2%, and Tilray Inc TLRY.TO, lower by 8.0%. * On the TSX 91 issues rose and 133 fell as a 0.7-to-1 ratio favored decliners. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Oceanagold Corp OGC.TO and Cenovus Energy Inc CVE.TO. |
36745.0 | 2021-07-14 00:00:00 UTC | Why Hexo, Canopy Growth, and Aurora Cannabis Stocks All Just Crashed | ACB | https://www.nasdaq.com/articles/why-hexo-canopy-growth-and-aurora-cannabis-stocks-all-just-crashed-2021-07-14 | nan | nan | What happened
Nearly one year ago, in the run-up to the 2020 presidential election, then-Democratic Vice Presidential Candidate Kamala Harris promised to support legislation that "will decriminalize marijuana," and continued, "we will expunge the records of those who have been convicted of marijuana."
Nearly one year later, that promise is approaching fulfillment with the unveiling of a new bill in the U.S. Senate to legalize marijuana for recreational use. And yet, marijuana stocks are down on the news. In 2:15 p.m. EDT trading, shares of Hexo (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) are both down 5%, while Aurora Cannabis (NASDAQ: ACB) stock is down even more -- 7.8%.
Why is that?
Image source: Getty Images.
So what
On the face of it, today's news sure sounds like good news for marijuana stocks. Fulfilling Vice President Harris' promise, the new Cannabis Administration and Opportunity Act rolled out today by Senate Majority Leader Chuck Schumer promises to "federally deschedule cannabis, expunge prior convictions" and "allow people to petition for resentencing," too, according to an analysis by MarijuanaMoment.net.
On the other hand, the bill falls short of legalizing marijuana use across the land, inasmuch as its language explicitly authorizes individual states to ban the drug if they choose to. It also threatens the attractiveness of the marijuana business by levying federal taxes on marijuana sales -- 10% at first, and rising as high as 25% over time, and presumably these taxes will be layered atop any state taxes already imposed.
That won't necessarily be great news for marijuana sales, even if the bill does become law.
Now what
And of course, this brings us to possibly the biggest objection to today's news: the fact that it's not really a "bill" being introduced for consideration by the Senate, but only a "first draft" that the Senator has released for public comment.
Over the next 60 days, says MarijuanaMoment, "advocates and stakeholders" will have the opportunity to kibbitz over the language of the bill, and potentially criticize many of the provisions that investors (initially) liked about it. Then comes the next hurdle, getting 60 senators to vote for the final version of the bill, a road that will be "rough," according to TheHill.com, but necessary if the bill is to survive any moves to filibuster it.
Indeed, as reported by TheHill.com, Senator Schumer "does not currently have the votes to pass the legislation" -- but he introduced it anyway. Whether the comments period will result in final bill language that can win sufficient support remains to be seen. For now, though, the price response we're seeing in marijuana stocks suggests that prospects for passage are dim.
10 stocks we like better than Aurora Cannabis Inc.
When our award-winning 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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. 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. | In 2:15 p.m. EDT trading, shares of Hexo (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) are both down 5%, while Aurora Cannabis (NASDAQ: ACB) stock is down even more -- 7.8%. Fulfilling Vice President Harris' promise, the new Cannabis Administration and Opportunity Act rolled out today by Senate Majority Leader Chuck Schumer promises to "federally deschedule cannabis, expunge prior convictions" and "allow people to petition for resentencing," too, according to an analysis by MarijuanaMoment.net. On the other hand, the bill falls short of legalizing marijuana use across the land, inasmuch as its language explicitly authorizes individual states to ban the drug if they choose to. | In 2:15 p.m. EDT trading, shares of Hexo (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) are both down 5%, while Aurora Cannabis (NASDAQ: ACB) stock is down even more -- 7.8%. What happened Nearly one year ago, in the run-up to the 2020 presidential election, then-Democratic Vice Presidential Candidate Kamala Harris promised to support legislation that "will decriminalize marijuana," and continued, "we will expunge the records of those who have been convicted of marijuana." Fulfilling Vice President Harris' promise, the new Cannabis Administration and Opportunity Act rolled out today by Senate Majority Leader Chuck Schumer promises to "federally deschedule cannabis, expunge prior convictions" and "allow people to petition for resentencing," too, according to an analysis by MarijuanaMoment.net. | In 2:15 p.m. EDT trading, shares of Hexo (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) are both down 5%, while Aurora Cannabis (NASDAQ: ACB) stock is down even more -- 7.8%. So what On the face of it, today's news sure sounds like good news for marijuana stocks. Fulfilling Vice President Harris' promise, the new Cannabis Administration and Opportunity Act rolled out today by Senate Majority Leader Chuck Schumer promises to "federally deschedule cannabis, expunge prior convictions" and "allow people to petition for resentencing," too, according to an analysis by MarijuanaMoment.net. | In 2:15 p.m. EDT trading, shares of Hexo (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) are both down 5%, while Aurora Cannabis (NASDAQ: ACB) stock is down even more -- 7.8%. Nearly one year later, that promise is approaching fulfillment with the unveiling of a new bill in the U.S. Senate to legalize marijuana for recreational use. And yet, marijuana stocks are down on the news. |
36746.0 | 2021-07-13 00:00:00 UTC | CANADA STOCKS-Pot stocks lift TSX after OrganiGram's strong reults | ACB | https://www.nasdaq.com/articles/canada-stocks-pot-stocks-lift-tsx-after-organigrams-strong-reults-2021-07-13 | nan | nan | July 13 (Reuters) - Canada's main stock index rose on Tuesday as cannabis producers rallied, driven by upbeat earnings from OrganiGram Holdings, and sent the healthcare index surging nearly 4%.
* At 09:46 a.m. ET (13:46 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 45.28 points, or 0.22%, at 20,278.36.
* The energy sector .SPTTEN climbed 0.1% as U.S. crude CLc1 prices were up 0.2% a barrel, while Brent crude LCOc1 added 0.6%. O/R
* The healthcare sector .GSPTTHC added 3.8%, on track for its best session in more than a month, as shares in OrganiGram OGI.TO surged 17% after the pot producer reported a jump in quarterly net revenue.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, rose 1.3% as gold futures GCc1 advanced 0.2% to $1,809.3 an ounce. GOL/MET/L
* On the TSX, 111 issues were higher, while 110 declined for a 1.01-to-1 ratio favouring gainers, with 15.93 million shares traded.
* After Organigram, the largest percentage gainers on the TSX were cannabis majors Tilray Inc , Cronos Group CRON.TO, Aurora Cannabis ACB.TO and Canopy Growth WEED.TO, which rose between 5.3% and 6.7%.
* Badger Infrastructure solutions fell 6%, the most on the TSX, after brokerage BMO cut the stock's price target. The second-biggest decliner was Westport Fuel , which fell 2.6%.
* The most heavily traded shares by volume were Toronto Dominion Bank , Nevada Copper and Bombardier .
* The TSX posted no new 52-week highs and no new lows.
* Across all Canadian issues, there were 65 new 52-week highs and three new lows, with a total volume of 30.83 million shares.
(Reporting by Susan Mathew in Bengaluru; Editing by Ramakrishnan M.)
((susan.mathew@thomsonreuters.com; +91-80-6287-2704;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * After Organigram, the largest percentage gainers on the TSX were cannabis majors Tilray Inc , Cronos Group CRON.TO, Aurora Cannabis ACB.TO and Canopy Growth WEED.TO, which rose between 5.3% and 6.7%. O/R * The healthcare sector .GSPTTHC added 3.8%, on track for its best session in more than a month, as shares in OrganiGram OGI.TO surged 17% after the pot producer reported a jump in quarterly net revenue. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, rose 1.3% as gold futures GCc1 advanced 0.2% to $1,809.3 an ounce. | * After Organigram, the largest percentage gainers on the TSX were cannabis majors Tilray Inc , Cronos Group CRON.TO, Aurora Cannabis ACB.TO and Canopy Growth WEED.TO, which rose between 5.3% and 6.7%. July 13 (Reuters) - Canada's main stock index rose on Tuesday as cannabis producers rallied, driven by upbeat earnings from OrganiGram Holdings, and sent the healthcare index surging nearly 4%. O/R * The healthcare sector .GSPTTHC added 3.8%, on track for its best session in more than a month, as shares in OrganiGram OGI.TO surged 17% after the pot producer reported a jump in quarterly net revenue. | * After Organigram, the largest percentage gainers on the TSX were cannabis majors Tilray Inc , Cronos Group CRON.TO, Aurora Cannabis ACB.TO and Canopy Growth WEED.TO, which rose between 5.3% and 6.7%. July 13 (Reuters) - Canada's main stock index rose on Tuesday as cannabis producers rallied, driven by upbeat earnings from OrganiGram Holdings, and sent the healthcare index surging nearly 4%. O/R * The healthcare sector .GSPTTHC added 3.8%, on track for its best session in more than a month, as shares in OrganiGram OGI.TO surged 17% after the pot producer reported a jump in quarterly net revenue. | * After Organigram, the largest percentage gainers on the TSX were cannabis majors Tilray Inc , Cronos Group CRON.TO, Aurora Cannabis ACB.TO and Canopy Growth WEED.TO, which rose between 5.3% and 6.7%. July 13 (Reuters) - Canada's main stock index rose on Tuesday as cannabis producers rallied, driven by upbeat earnings from OrganiGram Holdings, and sent the healthcare index surging nearly 4%. GOL/MET/L * On the TSX, 111 issues were higher, while 110 declined for a 1.01-to-1 ratio favouring gainers, with 15.93 million shares traded. |
36747.0 | 2021-07-08 00:00:00 UTC | Why Tilray and Other Cannabis Stocks Are Moving Down This Week | ACB | https://www.nasdaq.com/articles/why-tilray-and-other-cannabis-stocks-are-moving-down-this-week-2021-07-08 | nan | nan | What happened
Cannabis stocks have been hit hard by investors this week. Several names that are down between 5% and 10% for the week are extending losses seen over the past month. Canadian companies Tilray (NASDAQ: TLRY), Aurora Cannabis (NASDAQ: ACB), and HEXO (NYSE: HEXO) have dropped 17%, 18%, and 28%, respectively over the last 30 days. And shares of U.S.-based cannabidiol (CBD) company Charlotte's Web Holdings (OTC: CWBHF) have lost more than 27% in that time. For this week alone, these stocks have dropped as follows as of late Thursday:
Tilray was down 7%
Aurora was down 6%
HEXO was down 10%
Charlotte's Web was down 9%
So what
There hasn't been any overly meaningful news out of the cannabis sector this week. And the overall market has also taken a breather from its steady march upward this week as well. But most cannabis stocks remain speculative with investors waiting for their potential to be realized. Even taking into account the large declines seen over the past month, names like Tilray and HEXO are still 275% and 78% higher year to date, respectively.
Image source: Getty Images.
Now what
Tilray actually released some new product news his week. The company said it completed the first successful harvest of medical cannabis grown in its German facility for distribution to pharmacies in that country. And Tilray also launched its first cross-branded product in the U.S. with its craft brewer SweetWater Brewing. The lager beer uses Tilray's Broken Coast craft cannabis brand name.
Last week, HEXO said it acquired its first U.S. production facility. It bought the Colorado operation through a U.S. subsidiary to establish a presence in the country to produce "a full range of cannabis products." The facility will also complement its joint venture with Molson Coors (NYSE: TAP), which produces CBD-infused beverages in the state.
These companies are still working to become profitable. Over the last year and a half, Aurora consolidated its operations and restructured its balance sheet to that end. As speculative investments, marijuana stocks will be volatile, and the decline seen this week shouldn't be unexpected for investors.
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 – 15 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
Howard Smith owns shares of Charlotte's Web and Tilray, Inc. The Motley Fool owns shares of and recommends Charlotte's Web Holdings. The Motley Fool recommends Charlotte's Web and HEXO Corp. 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 companies Tilray (NASDAQ: TLRY), Aurora Cannabis (NASDAQ: ACB), and HEXO (NYSE: HEXO) have dropped 17%, 18%, and 28%, respectively over the last 30 days. Even taking into account the large declines seen over the past month, names like Tilray and HEXO are still 275% and 78% higher year to date, respectively. The company said it completed the first successful harvest of medical cannabis grown in its German facility for distribution to pharmacies in that country. | Canadian companies Tilray (NASDAQ: TLRY), Aurora Cannabis (NASDAQ: ACB), and HEXO (NYSE: HEXO) have dropped 17%, 18%, and 28%, respectively over the last 30 days. The Motley Fool owns shares of and recommends Charlotte's Web Holdings. The Motley Fool recommends Charlotte's Web and HEXO Corp. | Canadian companies Tilray (NASDAQ: TLRY), Aurora Cannabis (NASDAQ: ACB), and HEXO (NYSE: HEXO) have dropped 17%, 18%, and 28%, respectively over the last 30 days. For this week alone, these stocks have dropped as follows as of late Thursday: Tilray was down 7% Aurora was down 6% HEXO was down 10% Charlotte's Web was down 9% So what There hasn't been any overly meaningful news out of the cannabis sector this week. 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. | Canadian companies Tilray (NASDAQ: TLRY), Aurora Cannabis (NASDAQ: ACB), and HEXO (NYSE: HEXO) have dropped 17%, 18%, and 28%, respectively over the last 30 days. For this week alone, these stocks have dropped as follows as of late Thursday: Tilray was down 7% Aurora was down 6% HEXO was down 10% Charlotte's Web was down 9% So what There hasn't been any overly meaningful news out of the cannabis sector this week. Last week, HEXO said it acquired its first U.S. production facility. |
36748.0 | 2021-07-06 00:00:00 UTC | 3 Pot Stocks to Avoid Like the Plague in July | ACB | https://www.nasdaq.com/articles/3-pot-stocks-to-avoid-like-the-plague-in-july-2021-07-06 | nan | nan | Want to make some serious green this decade? Investing in cannabis might be for you.
According to a report from New Frontier Data, U.S. weed sales are expected to grow by an average annual rate of 21% through 2025, ultimately hitting north of $41 billion. Meanwhile, cannabis-focused analytics company BDSA is looking for Canadian pot sales to catapult from $2.6 billion in 2020 to $6.4 billion by 2026.
However, history is very clear that not all companies in high-growth industries will be successful. Even with a promising outlook for legal cannabis in North America, the following three pot stocks should be avoided like the plague in July.
Image source: Getty Images.
Sundial Growers
No surprise here. If there's a marijuana stock at the top of the avoid list, it's the company whose management team continues to show absolutely no regard for its shareholders, Sundial Growers (NASDAQ: SNDL).
Last year was transformational in a variety of ways for Sundial. Its management shifted the company's focus away from lower-margin wholesale cannabis to higher-margin retail, and in the fourth quarter, executives began raising capital to strengthen the company's debt-laden balance sheet. While both strategies sounded great on paper, neither has worked out well for shareholders.
Shifting the company's focus to retail has been rocky at best. Essentially starting from scratch on the retail side led to a 30% reduction in net cannabis revenue in the March-ended quarter. To boot, Wall Street anticipates companywide sales will decline by 11% in 2021 to $45 million, all while weed sales for Canada continue to climb.
The bigger issue has been management's reckless behavior on the capital-raising front. Even after paying off all outstanding debt, executives have continued selling stock. Between Sept. 30, 2020, and May 7, 2021, the company's outstanding share count skyrocketed from 509 million to 1.86 billion. With this many shares outstanding, it's going to be virtually impossible for Sundial to ever report meaningful earnings per share. It might also force the company to enact a reverse stock split to maintain a share price above $1, which is required for continued listing on the Nasdaq exchange.
The icing on the cake is that while Sundial has built up a cash hoard of as much as $876 million, as of early May, management has no clear plan as to how it'll put this capital to work. Investors in Sundial don't have to worry about bankruptcy, but the onslaught of dilution, coupled with an abysmal operating performance, will continue to weigh down the company's share price.
Image source: Getty Images.
Aurora Cannabis
If you think Sundial is a regular guest to this monthly column of pot stocks to avoid, let me introduce you to its longest-running "tenant," Canadian weed company Aurora Cannabis (NASDAQ: ACB).
At one time, there wasn't a hotter marijuana stock on the planet than Aurora Cannabis. It was once the most-owned stock on Robinhood, the online investing app dominated by retail investors. And its 15 cultivation facilities were projected to make it the largest cannabis producer in the world. It was a fun memory while it lasted.
Like Sundial, Aurora has been a train wreck from an operating standpoint. Even after shuttering five of its smaller cultivation facilities, halting the construction of two large production sites, and selling a greenhouse that it never got around to retrofitting for pot production, Aurora is no closer to generating a recurring profit or producing positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). In its fiscal third quarter, ended March 31, recreational weed sales nosedived 53% and adjusted gross margin fell 7 percentage points to 21%.
What's made Aurora Cannabis an even worse performer than Sundial is the company's history of acquisitions. Since 2016, Aurora has made around a dozen purchases, each of which proved to be grossly overvalued. The worst of them all was the MedReleaf deal, which cost about $2 billion. MedReleaf was expected to generate 140,000 kilos in annual cannabis output and allow Aurora to profit from its proprietary brands. Ultimately, Aurora is generating 28,000 kilos annually (after shuttering/selling assets) and isn't benefiting much from MedReleaf's brands.
And as you might have guessed, it's also a serial share diluter. Between June 2014 and March 2021, Aurora Cannabis' outstanding share count has ballooned from about 1.3 million shares to 198 million. As long as this company continues to lose money, management will keep selling stock to raise capital. That puts it squarely in the avoid column.
Image source: Getty Images.
Canopy Growth
To complete the trifecta, the third pot stock to avoid like the plague in July also hails from Canada. Canopy Growth (NASDAQ: CGC) might be the largest Canadian weed stock by market cap, but it's an absolute mess from an operating standpoint.
The selling point for the company has long been its robust cash position. Spirits giant Constellation Brands owns close to a 39% stake in Canopy Growth, with those equity stakes pumping well over $4 billion into the company. This cash was expected to allow Canopy to expand its existing infrastructure and act as a downside buffer.
However, its poor operating performance and overpriced acquisitions have eroded what was once a massive net cash position. After taking on $750 million in debt in March 2021, the company has approximately $1.87 billion in cash, cash equivalents, and short-term investments. But that compares to $1.28 billion in long-term debt. A more than $3 billion net-cash position has now been shrunk to less than $600 million in under three years. That should give you some idea of how poorly managed this company has been.
In fiscal 2021, which ended March 31, Canopy brought in almost $493 million in sales and produced a gross margin of $54 million. But selling, general and administrative (SG&A) expenses plus share-based compensation tallied a combined $541 million. Including a number of one-time expenses, Canopy Growth's operating loss was $1 billion. No matter how much cost-cutting occurs at the SG&A level, this company isn't anywhere close to generating a profit.
Comparatively, you could buy a U.S. multistate operator like Curaleaf, which has a similar market cap, is expected to turn profitable on a recurring basis this year, and will generate twice as much in annual revenue as Canopy Growth.
Until Canopy proves it can live up to its bloated market cap, it's not worth owning.
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 – 15 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
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Brands. The Motley Fool recommends Nasdaq. 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 If you think Sundial is a regular guest to this monthly column of pot stocks to avoid, let me introduce you to its longest-running "tenant," Canadian weed company Aurora Cannabis (NASDAQ: ACB). If there's a marijuana stock at the top of the avoid list, it's the company whose management team continues to show absolutely no regard for its shareholders, Sundial Growers (NASDAQ: SNDL). Investors in Sundial don't have to worry about bankruptcy, but the onslaught of dilution, coupled with an abysmal operating performance, will continue to weigh down the company's share price. | Aurora Cannabis If you think Sundial is a regular guest to this monthly column of pot stocks to avoid, let me introduce you to its longest-running "tenant," Canadian weed company Aurora Cannabis (NASDAQ: ACB). In its fiscal third quarter, ended March 31, recreational weed sales nosedived 53% and adjusted gross margin fell 7 percentage points to 21%. Between June 2014 and March 2021, Aurora Cannabis' outstanding share count has ballooned from about 1.3 million shares to 198 million. | Aurora Cannabis If you think Sundial is a regular guest to this monthly column of pot stocks to avoid, let me introduce you to its longest-running "tenant," Canadian weed company Aurora Cannabis (NASDAQ: ACB). If there's a marijuana stock at the top of the avoid list, it's the company whose management team continues to show absolutely no regard for its shareholders, Sundial Growers (NASDAQ: SNDL). Between June 2014 and March 2021, Aurora Cannabis' outstanding share count has ballooned from about 1.3 million shares to 198 million. | Aurora Cannabis If you think Sundial is a regular guest to this monthly column of pot stocks to avoid, let me introduce you to its longest-running "tenant," Canadian weed company Aurora Cannabis (NASDAQ: ACB). After taking on $750 million in debt in March 2021, the company has approximately $1.87 billion in cash, cash equivalents, and short-term investments. The Motley Fool owns shares of and recommends Constellation Brands. |
36749.0 | 2021-07-02 00:00:00 UTC | CANADA STOCKS - TSX rises 0.3% to 20,226.11 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.3-to-20226.11-2021-07-02 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.30 percent to 20,226.11
* Leading the index were NovaGold Resources Inc , up 5.8%, Innergex Renewable Energy Inc INE.TO, up 5.1%, and Nexgen Energy Ltd NXE.TO, higher by 4.3%.
* Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.5%, OrganiGram Holdings Inc OGI.TO, down 5.3%, and Tilray Inc TLRY.TO, lower by 5.1%.
* On the TSX 152 issues rose and 71 fell as a 2.1-to-1 ratio favored advancers. There were 21 new highs and no new lows, with total volume of 182.8 million shares.
* The most heavily traded shares by volume were Bank Of Nova Scotia BNS.TO, Tc Energy Corp TRP.TO and Suncor Energy Inc SU.TO.
* The TSX's energy group .SPTTEN rose 0.03 points, or 0.0%, while the financials sector .SPTTFS climbed 0.82 points, or 0.2%.
* West Texas Intermediate crude futures CLc1 fell 0.05%, or $0.04, to $75.19 a barrel. Brent crude LCOc1 rose 0.37%, or $0.28, to $76.12 O/R
* The TSX is up 16% for the year.
This summary was machine generated July 2 at 21:24.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.5%, OrganiGram Holdings Inc OGI.TO, down 5.3%, and Tilray Inc TLRY.TO, lower by 5.1%. * On the TSX 152 issues rose and 71 fell as a 2.1-to-1 ratio favored advancers. * West Texas Intermediate crude futures CLc1 fell 0.05%, or $0.04, to $75.19 a barrel. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.5%, OrganiGram Holdings Inc OGI.TO, down 5.3%, and Tilray Inc TLRY.TO, lower by 5.1%. * On the TSX 152 issues rose and 71 fell as a 2.1-to-1 ratio favored advancers. * The TSX's energy group .SPTTEN rose 0.03 points, or 0.0%, while the financials sector .SPTTFS climbed 0.82 points, or 0.2%. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.5%, OrganiGram Holdings Inc OGI.TO, down 5.3%, and Tilray Inc TLRY.TO, lower by 5.1%. * The Toronto Stock Exchange's TSX rises 0.30 percent to 20,226.11 * Leading the index were NovaGold Resources Inc , up 5.8%, Innergex Renewable Energy Inc INE.TO, up 5.1%, and Nexgen Energy Ltd NXE.TO, higher by 4.3%. * The most heavily traded shares by volume were Bank Of Nova Scotia BNS.TO, Tc Energy Corp TRP.TO and Suncor Energy Inc SU.TO. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.5%, OrganiGram Holdings Inc OGI.TO, down 5.3%, and Tilray Inc TLRY.TO, lower by 5.1%. * On the TSX 152 issues rose and 71 fell as a 2.1-to-1 ratio favored advancers. * The most heavily traded shares by volume were Bank Of Nova Scotia BNS.TO, Tc Energy Corp TRP.TO and Suncor Energy Inc SU.TO. |
36750.0 | 2021-07-01 00:00:00 UTC | 3 Best Canadian Marijuana Stocks to Buy for the Upside Potential | ACB | https://www.nasdaq.com/articles/3-best-canadian-marijuana-stocks-to-buy-for-the-upside-potential-2021-07-01 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While the recreational cannabis market continues to evolve and mature, there is still reason to be bullish on marijuana stocks and their prospects.
The Alternative Harvest exchange traded fund (NYSEARCA:MJ), which trades under the ticker symbol “MJ,” was the first cannabis-focused ETF approved in the United States.
The fund tracks an index of stocks that are engaged in the legal cultivation, production, marketing and distribution of cannabis products. In the first six months of this year, the MJ ETF is up a healthy 38% at $20.63.
7 of the Hottest Energy Stocks to Buy This Summer
Over the past year, the ETF has risen 59%, outpacing broader stock markets, and while individual marijuana stocks continue to experience highs and lows, analysts remain enthusiastic about the industry’s long-term potential.
Cannabis companies from neighboring Canada, where the drug is legal nationwide for recreational use, continue to lead the way. Here are the three best Canadian marijuana stocks to buy for future upside potential.
Tilray (NASDAQ:TLRY)
Canopy Growth (NASDAQ:CGC)
Aurora Cannabis (NASDAQ:ACB)
Best Marijuana Stocks to Buy: Tilray (TLRY)
TLRY) logo on a web browser." width="300" height="169">
Source: Jarretera / Shutterstock.com
Move over Canopy Growth. There’s a new king of the Canadian cannabis market.
Tilray is now bigger than both Canopy Growth and Aurora Cannabis following its recently completed merger with former rival Aphria.
The newly combined company, which continues to use the Tilray name and branding, has annual revenues of $1 billion and a 17% share of the North American retail cannabis market.
Industry observers are expecting big things from Tilray post-merger. Tilray executives say the company’s focus is to boost its sales in the U.S. market, where it sees a huge growth opportunity as more states legalize recreational cannabis.
About 20 states have now legalized the drug for recreational use. Tilray wants to eventually control 30% of the North American cannabis market.
Outside of North America, the company is expanding its presence in markets such as Germany and entering new markets where cannabis use has been decriminalized, such as Israel and Portugal.
TLRY stock is up year-to-date at around $18 a share. Investment bank Jefferies Group upgraded the company’s shares to “buy” from “underperform” after the Aphria merger officially closed.
Jefferies said the combined companies are a “perfect match” and stating that Tilray has an excellent opportunity to grow its sales in the U.S., Canada and throughout Europe.
Canopy Growth (CGC)
Source: Shutterstock
Canopy Growth stock looks like a buying opportunity at its current price of around $24, especially if the company succeeds in turning around its operations and improving its finances.
Many analysts have grown bearish on the former number one Canadian cannabis producer after a string of disappointing quarterly earnings.
In early June, the cannabis producer reported a steep year-end loss after writing off more than $500 million in impairment charges, while its fourth-quarter results fell short of analysts’ expectations.
7 Stocks to Buy From the 'Goldman Sachs Renewable Energy Picks' List
Canopy Growth reported $148 million in revenue for its fiscal fourth quarter, up 38% from the same period a year earlier but down 3% from its fiscal third quarter as Covid-19 restrictions weighed on the cannabis industry.
On a full-year basis, Canopy Growth reported $546.6 million in revenue, up 37% from a year earlier. However, the company reported a net loss of $616.7 million in the fourth quarter and a year-end loss of $1.67 billion led by steep asset and inventory charges.
Analysts expected $153 million in revenue and a $61.1 million adjusted loss for the fourth quarter.
The struggling company has responded to its financial woes by undertaking several rounds of staff reductions and cost cuts.
Since last fall, Canopy Growth has reduced its global headcount by 1,000 staff and shutdown several Canadian and U.S. production facilities.
In the first half of 2021, CGC stock has declined 8%. The company will likely need to report some positivefinancial newsbefore the share price finds a bottom.
Investors should look for continued weakness to buy Canopy Growth stock at a discount and hope for a comeback story.
Aurora Cannabis (ACB)
Source: Shutterstock
Aurora Cannabis is another Canadian cannabis reclamation project. However, the company appears to be doing the right things to improve its operations and gain market share in the increasingly competitive cannabis space.
In June, Aurora Cannabis announced that it is shuttering unproductive cannabis greenhouses and production facilities in order to achieve cost savings.
The company says it has already achieved $242 million in savings and expects another $64.5 million over the next 18 months.
The cost saving measures come after Aurora Cannabis reported a revenue decline of 25% in its fiscal 2021 third quarter ended on March 31.
Recreational cannabis sales fell 53% and medical cannabis sales declined 17% year-over-year in the quarter.
The medical cannabis sales drop was particularly disappointing as Aurora Cannabis has been a leader in that segment for nearly a decade. Shares of ACB are down 6% year-to-date.
At their current price, Aurora Cannabis stock looks extremely affordable, with room to grow.
Disclosure: 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.
The post 3 Best Canadian Marijuana Stocks to Buy for the Upside Potential 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. | Tilray (NASDAQ:TLRY) Canopy Growth (NASDAQ:CGC) Aurora Cannabis (NASDAQ:ACB) Best Marijuana Stocks to Buy: Tilray (TLRY) TLRY) logo on a web browser." Aurora Cannabis (ACB) Source: Shutterstock Aurora Cannabis is another Canadian cannabis reclamation project. Shares of ACB are down 6% year-to-date. | Tilray (NASDAQ:TLRY) Canopy Growth (NASDAQ:CGC) Aurora Cannabis (NASDAQ:ACB) Best Marijuana Stocks to Buy: Tilray (TLRY) TLRY) logo on a web browser." Aurora Cannabis (ACB) Source: Shutterstock Aurora Cannabis is another Canadian cannabis reclamation project. Shares of ACB are down 6% year-to-date. | Tilray (NASDAQ:TLRY) Canopy Growth (NASDAQ:CGC) Aurora Cannabis (NASDAQ:ACB) Best Marijuana Stocks to Buy: Tilray (TLRY) TLRY) logo on a web browser." Aurora Cannabis (ACB) Source: Shutterstock Aurora Cannabis is another Canadian cannabis reclamation project. Shares of ACB are down 6% year-to-date. | Aurora Cannabis (ACB) Source: Shutterstock Aurora Cannabis is another Canadian cannabis reclamation project. Tilray (NASDAQ:TLRY) Canopy Growth (NASDAQ:CGC) Aurora Cannabis (NASDAQ:ACB) Best Marijuana Stocks to Buy: Tilray (TLRY) TLRY) logo on a web browser." Shares of ACB are down 6% year-to-date. |
36751.0 | 2021-07-01 00:00:00 UTC | Aurora Cannabis (ACB) Shares Cross Below 200 DMA | ACB | https://www.nasdaq.com/articles/aurora-cannabis-acb-shares-cross-below-200-dma-2021-07-01 | nan | nan | In trading on Thursday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed below their 200 day moving average of $8.82, changing hands as low as $8.67 per share. Aurora Cannabis Inc shares are currently trading down about 1.8% on the day. The chart below shows the one year performance of ACB shares, versus its 200 day moving average:
Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $18.98 as the 52 week high point — that compares with a last trade of $8.88.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed below their 200 day moving average of $8.82, changing hands as low as $8.67 per share. The chart below shows the one year performance of ACB shares, versus its 200 day moving average: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $18.98 as the 52 week high point — that compares with a last trade of $8.88. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed below their 200 day moving average of $8.82, changing hands as low as $8.67 per share. The chart below shows the one year performance of ACB shares, versus its 200 day moving average: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $18.98 as the 52 week high point — that compares with a last trade of $8.88. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed below their 200 day moving average of $8.82, changing hands as low as $8.67 per share. The chart below shows the one year performance of ACB shares, versus its 200 day moving average: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $18.98 as the 52 week high point — that compares with a last trade of $8.88. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed below their 200 day moving average of $8.82, changing hands as low as $8.67 per share. The chart below shows the one year performance of ACB shares, versus its 200 day moving average: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $18.98 as the 52 week high point — that compares with a last trade of $8.88. Aurora Cannabis Inc shares are currently trading down about 1.8% on the day. |
36752.0 | 2021-07-01 00:00:00 UTC | The Top 50 Robinhood Stocks in July | ACB | https://www.nasdaq.com/articles/the-top-50-robinhood-stocks-in-july-2021-07-01 | nan | nan | Though volatility has tapered off in recent weeks, investors have received something of a crash course in being patient over the past 17 months. Despite the broad-based S&P 500 shedding 34% of its value in about a month during the first quarter of 2020, we've watched the benchmark index catapult more than 90% off of its lows.
For some investors, volatility is something they fear. But for predominantly young and novice retail investors, volatility is the impetus that's driven them to put their money to work in the stock market.
Image source: Getty Images.
As volatility has whipsawed the market, these younger retail investors have found their home with online investing app Robinhood. We know this because Robinhood added approximately 3 million new users in 2020.
There are a number of lures for retail investors with Robinhood. For example, Robinhood doesn't charge a commission when stocks that are listed on the New York Stock Exchange or Nasdaq exchange are bought or sold. Robinhood is also one of many brokerages that allows for fractional share investing. And, who can forget that Robinhood also gifts free shares of stock to new users.
In one respect, it's a fantastic thing to see young people putting their money to work. Time is the biggest ally investors have. The earlier they start putting their money to work, the better chance they have of compounding their nest egg.
On the other hand, Robinhood's retail investors have been buying some really awful stocks. Instead of thinking for the long-term, their buying activity demonstrates a willingness to chase momentum plays, penny stocks, and money-losing businesses.
If you don't believe me, here's a closer look at the 50 most-held Robinhood stocks as we enter July.
COMPANY COMPANY
1. Tesla Motors (NASDAQ: TSLA) 26. Snap
2. Apple 27. Alibaba
3. AMC Entertainment (NYSE: AMC) 28. Bank of America
4. Sundial Growers (NASDAQ: SNDL) 29. OrganiGram Holdings
5. Ford Motor 30. Coinbase Global
6. General Electric 31. Tilray
7. NIO 32. Facebook
8. Walt Disney 33. Canopy Growth
9. Microsoft 34. Advanced Micro Devices
10. Amazon 35. Starbucks
11. American Airlines Group (NASDAQ: AAL) 36. Twitter
12. Plug Power 37. AT&T
13. Nokia 38. Moderna
14. Carnival 39. NVIDIA
15. Aurora Cannabis (NASDAQ: ACB) 40. FuelCell Energy
16. Pfizer 41. Vanguard S&P 500 ETF
17. Zomedica 42. Coca-Cola
18. GoPro 43. Norwegian Cruise Line (NYSE: NCLH)
19. Naked Brand Group 44. Ideanomics
20. Palantir Technologies 45. Workhorse Group
21. GameStop (NYSE: GME) 46. SPDR S&P 500 ETF
22. Delta Air Lines 47. Virgin Galactic
23. BlackBerry 48. General Motors
24. Churchill Capital 49. Zynga
25. Netflix 50. United Airlines
Data source: Robinhood, as of June 26, 2021. Table by author.
Continuing to chase meme stocks
Like bees to honey, retail investors have been inseparable from meme stocks for almost six months. A meme stock is a company valued more for its social media favorability/hype than its operating performance.
Since mid-January, retail investors have been banding together to buy shares and out-of-the-money call options on stocks with high levels of short interest. In many instances, companies with high levels of short interest have poor-performing businesses. This is how we've witnessed GameStop and AMC Entertainment become extremely popular on Robinhood.
The good news for GameStop is that it's been able to use its monumental run to sell shares of common stock and raise capital. It's completely erased its debt and given itself more than enough cash to oversee its ongoing transformation into a digital gaming company. To be clear, this doesn't negate the fact that GameStop's previous management team completely dropped the ball on the shift to digital gaming. What it does do is give the company enough capital to at least attempt a transformation.
The same can't be said for AMC, which sold the vast majority of its shares six months ago to avoid bankruptcy. Even with a handful of recent capital raises, AMC has well over $3 billion in net debt, and its 2027 bond prices indicate the company is still a bankruptcy risk.
To make matters worse, movie theater ticket sales have been in a 19-year decline. Even with a larger share of the movie theater industry, AMC's pie is shrinking. It's pretty clear that social media hype, ignorance of fundamental data, and misinformation are the key drivers behind AMC's irrational rally.
Image source: Getty Images.
Canadian cannabis binge
Robinhood's retail investors also have quite the crush on Canadian marijuana stocks. Five of the 33 most-held companies on Robinhood's leaderboard hail from our neighbor to the north.
Even though cannabis-focused research company BDSA has forecasted weed sales growth in Canada from $2.6 billion in 2020 to $6.4 billion by 2026, the Canadian pot industry has been a disaster. Regulators have caused all sorts of supply chain issues, consumers have flocked to lower-margin value brands, and Canadian marijuana stocks overzealously expanded and, in some instances, decimated their balance sheets in the process.
Robinhood investors' fascination with Sundial Growers is nothing short of frustrating. It may well be the single most-avoidable marijuana stock. Although its management team was able to pay off the company's existing debt by issuing stock and conducting debt-for-equity swaps, these share offerings simply haven't stopped. In a little over a seven-month stretch, more than 1.35 billion shares were issued. Sundial is showing zero regard for its shareholders, and its management team hasn't even laid out a concrete plan for how it'll spend its cash.
We've seen similar issues from Aurora Cannabis, the second most-popular Canadian weed stock. Once the most-held stock on Robinhood, Aurora has drowned its shareholders in dilution. Even after selling one of its greenhouses and shuttering a number of other cultivation facilities, its cost-cutting has put it nowhere near close to generating a profit. As long as Aurora keeps burning through cash, its management team will continue to issue stock.
Image source: American Airlines.
An obsession with travel companies
Another absolute head-scratcher is Robinhood investors' obsession with travel companies -- specifically airlines and cruise ship operators.
On one hand, the case could be made that the coronavirus pandemic overly punished the travel industry. Though we remain firmly in a global pandemic, increased domestic vaccination rates offer hope that the U.S. could soon put the pandemic in the rearview mirror. For instance, the Transportation Security Administration screened over 2 million passengers in a single day in mid-June for the first time since before the pandemic was declared.
On the other hand, the travel industry tends to be built on mediocre margins, at best, and it typically requires the economy to be running on all cylinders. Despite recovering from a recession, most airline stocks are now lugging around billions in extra debt that they didn't have two years ago. American Airlines, which I've previously anointed as the worst airline stock, has $34 billion in net debt and $48 billion in aggregate debt. The interest American Airlines is going to have to pay to service this debt could cripple its growth initiatives for the next decade.
Meanwhile, companies like Norwegian Cruise Line came perilously close to bankruptcy during the pandemic. Unlike airlines, which are essential for business travel, cruise ships aren't essential. They'll remain at the mercy of the pandemic until it's firmly in the rearview mirror. That means Norwegian may continue losing money well into 2022, if not beyond.
A Tesla Model S plugged in for charging. Image source: Tesla.
Alternative energy for autos in focus
Lastly, Robinhood investors appear to be going all-in on anything that has to do with alternative/clean energy for vehicles.
Electric vehicle (EV) kingpin Tesla has surpassed Apple to become the most-held stock on the platform, while Ford, General Motors, Workhorse Group, NIO, and Churchill Capital are other EV producers that found their way into the top 50 leaderboard (GM and Ford predominantly produce combustion-engine vehicles at the moment). If we also include Plug Power, FuelCell Energy, and Ideanomics, that's nine of the top 48 Robinhood stocks that are devoted to alternative energy adoption for autos.
There's pretty much no question at this point that EVs and potentially hydrogen fuel cells represent the future of the automotive industry. There's a multi-decade opportunity for consumers and enterprise fleets to switch over to alternative solutions, as well as for ancillary players to build the infrastructure necessary to support EVs and hydrogen fuel-cell vehicles.
The issue is that investors have a tendency to overestimate how quickly new technology is adopted, and that's likely what we're witnessing with EVs. The fact that Tesla is worth $647 billion is ludicrous considering that it hasn't demonstrated it can generate a profit from selling its EVs. The only way Tesla has been able to generate a profit is by selling renewable energy credits or taking a one-time benefit from the sale of Bitcoin.
The EV space is growing increasingly more crowded, and the major auto stocks are investing tens of billions into new models. It's unlikely that Tesla will be able to hold onto its competitive edge for much longer.
10 stocks we like better than Tesla
When our award-winning 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 Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.
Sean Williams owns shares of AT&T, Amazon, Bank of America, and Facebook. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Bitcoin, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. The Motley Fool recommends BlackBerry, Carnival, Delta Air Lines, Moderna Inc., and Nasdaq and recommends the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short July 2021 $120 calls on Starbucks, and short March 2023 $130 calls on Apple. 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) 40. Regulators have caused all sorts of supply chain issues, consumers have flocked to lower-margin value brands, and Canadian marijuana stocks overzealously expanded and, in some instances, decimated their balance sheets in the process. Although its management team was able to pay off the company's existing debt by issuing stock and conducting debt-for-equity swaps, these share offerings simply haven't stopped. | Aurora Cannabis (NASDAQ: ACB) 40. Electric vehicle (EV) kingpin Tesla has surpassed Apple to become the most-held stock on the platform, while Ford, General Motors, Workhorse Group, NIO, and Churchill Capital are other EV producers that found their way into the top 50 leaderboard (GM and Ford predominantly produce combustion-engine vehicles at the moment). The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Bitcoin, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. | Aurora Cannabis (NASDAQ: ACB) 40. Electric vehicle (EV) kingpin Tesla has surpassed Apple to become the most-held stock on the platform, while Ford, General Motors, Workhorse Group, NIO, and Churchill Capital are other EV producers that found their way into the top 50 leaderboard (GM and Ford predominantly produce combustion-engine vehicles at the moment). The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Bitcoin, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. | Aurora Cannabis (NASDAQ: ACB) 40. Electric vehicle (EV) kingpin Tesla has surpassed Apple to become the most-held stock on the platform, while Ford, General Motors, Workhorse Group, NIO, and Churchill Capital are other EV producers that found their way into the top 50 leaderboard (GM and Ford predominantly produce combustion-engine vehicles at the moment). The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Bitcoin, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. |
36753.0 | 2021-06-29 00:00:00 UTC | Is 22nd Century Group a Buy? | ACB | https://www.nasdaq.com/articles/is-22nd-century-group-a-buy-2021-06-29 | nan | nan | Tobacco company 22nd Century Group (NYSEMKT: XXII) has been one of the hottest stocks to buy this year. Its shares have already climbed more than 120%, dwarfing the S&P 500 and its 13% gains. There is an awful lot of bullishness behind a business that has generated losses that have nearly eclipsed its revenue over the past year.
The company has been working on some exciting things, but it still has a long way to go in proving it is the real deal. Is this just another high-risk meme stock, or could 22nd Century make for an incredible investment opportunity?
Image source: Getty Images.
Its low-nicotine products could be game changers
There is a lot of excitement surrounding 22nd Century's very low nicotine content (VLNC) products. The U.S. Food and Drug Administration (FDA) approved the marketing of the company's tobacco products, which contain between just 0.2 and 0.7 milligrams of nicotine per cigarette, in December 2019. Conventional cigarettes, the FDA noted, average between 10 and 14 milligrams. And studies have found that reducing nicotine levels can lower the dependence levels of smokers and even help them to quit smoking.
But despite the green light from the FDA, the company isn't rolling in sales just yet. Revenue for the first three months of 2021 totaled just $6.8 million and was down 4% on lower volumes. The company is hoping that the FDA will approve its modified risk tobacco product (MRTP) application. If it does, 22nd Century would able to let consumers know that its products contain 95% less nicotine.
However, the company filed the MRTP application two years ago, and although 22nd Century says it is in the final stages of the review process, it hasn't offered a date as to when it might get the news from the FDA.
The company also has other businesses
VLNC products are a key area for 22nd Century, but the company is also targeting what it estimates to be a $1.3 trillion global opportunity that includes tobacco, hemp, and cannabis. 22nd Century conducts cannabis research and has partnered with multiple companies to develop intellectual property. Earlier this year, it reached a deal with Keygene, a company that specializes in molecular breeding and attempts to maximize crop yields. It also has an exclusive agreement with testing company CannaMetrix, which it believes can help it commercialize new products and bring them to market faster than competitors can.
The company has recently launched a subsidiary in Canada that will enable it to more easily penetrate the cannabis market there, where marijuana is fully legal. It is pursuing multiple revenue streams for hemp and cannabis in 2021, including monetizing some of its IP. One of the companies it is working with is Canadian producer Aurora Cannabis, and it expects to generate revenue related to the IP that they share (related to commercializing cannabinoid biosynthesis) later this year.
There's also another segment to 22nd Century's business, but no further details about this one have been announced. In a June letter to shareholders, CEO James Mish said the plant-based franchise represents a $500 billion market opportunity and relates to a plant species that is similar to hemp and cannabis but "is not as highly regulated and legislated as [those] two franchises."
Is the stock too expensive?
Any time shares of a company double or triple in value, it's worth asking whether the valuation has gotten out of control. And the numbers clearly suggest that in 22nd Century's case, it has. At 25 times its revenue, 22nd Century is trading at an extremely high premium to Aurora Cannabis, a risky but more established company that investors are paying just 7 times revenue for. Although the businesses are different, it's hard to suggest that 22nd Century should be worth a larger premium than Aurora. The average holding in the SPDR S&P 500 ETF Trust is even cheaper, trading at less than 3 times its sales.
Should you buy shares of 22nd Century?
There are many red flags here that make it easy for me to look past this stock.
For one, the company keeps dangling the carrot that it will obtain MRTP approval for its tobacco products even though there's no firm timeline investors can count on. And even if it does get the OK from the FDA, there's still no guarantee the products will be in high demand. Although they may be safer, consumers may not like them, and until the numbers are there to support the company's claims, they may struggle to gain widespread approval. The cannabis business may offer more potential, but here again, investors will need to wait to see how much it can actually bring in from that segment of its operations.
The part I dislike most about the business is the secrecy surrounding its third business. If it is such a great opportunity, surely the company could at least give investors more details about it. If management is going to hold back that information, then investors should also hold back their money.
And if all that wasn't reason enough to avoid the stock, there is also its hefty valuation, which is obscene for a business that is as unproven as 22nd Century is right now.
While the market opportunity may seem promising, investors should remember that with all that market size also comes lots of competition looking to fight for it; simply being in those markets doesn't mean 22nd Century will be a big player in them.
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 – 15 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 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 U.S. Food and Drug Administration (FDA) approved the marketing of the company's tobacco products, which contain between just 0.2 and 0.7 milligrams of nicotine per cigarette, in December 2019. However, the company filed the MRTP application two years ago, and although 22nd Century says it is in the final stages of the review process, it hasn't offered a date as to when it might get the news from the FDA. 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. | Its low-nicotine products could be game changers There is a lot of excitement surrounding 22nd Century's very low nicotine content (VLNC) products. One of the companies it is working with is Canadian producer Aurora Cannabis, and it expects to generate revenue related to the IP that they share (related to commercializing cannabinoid biosynthesis) later this year. At 25 times its revenue, 22nd Century is trading at an extremely high premium to Aurora Cannabis, a risky but more established company that investors are paying just 7 times revenue for. | Tobacco company 22nd Century Group (NYSEMKT: XXII) has been one of the hottest stocks to buy this year. The company also has other businesses VLNC products are a key area for 22nd Century, but the company is also targeting what it estimates to be a $1.3 trillion global opportunity that includes tobacco, hemp, and cannabis. At 25 times its revenue, 22nd Century is trading at an extremely high premium to Aurora Cannabis, a risky but more established company that investors are paying just 7 times revenue for. | The U.S. Food and Drug Administration (FDA) approved the marketing of the company's tobacco products, which contain between just 0.2 and 0.7 milligrams of nicotine per cigarette, in December 2019. If it does, 22nd Century would able to let consumers know that its products contain 95% less nicotine. While the market opportunity may seem promising, investors should remember that with all that market size also comes lots of competition looking to fight for it; simply being in those markets doesn't mean 22nd Century will be a big player in them. |
36754.0 | 2021-06-24 00:00:00 UTC | ACB August 6th Options Begin Trading | ACB | https://www.nasdaq.com/articles/acb-august-6th-options-begin-trading-2021-06-24 | nan | nan | Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new August 6th contracts and identified one put and one call contract of particular interest.
The put contract at the $8.50 strike price has a current bid of 42 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $8.50, but will also collect the premium, putting the cost basis of the shares at $8.08 (before broker commissions). To an investor already interested in purchasing shares of ACB, that could represent an attractive alternative to paying $9.31/share today.
Because the $8.50 strike represents an approximate 9% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.94% return on the cash commitment, or 41.94% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aurora Cannabis Inc, and highlighting in green where the $8.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $10.50 strike price has a current bid of 47 cents. If an investor was to purchase shares of ACB stock at the current price level of $9.31/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $10.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 17.83% if the stock gets called away at the August 6th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red:
Considering the fact that the $10.50 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.05% boost of extra return to the investor, or 42.85% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $9.31) to be 118%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the August 6th expiration. | Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new August 6th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new August 6th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new August 6th contracts and identified one put and one call contract of particular interest. |
36755.0 | 2021-06-23 00:00:00 UTC | Tilray Stock Is Budding and Is a Great Long-Term Buy | ACB | https://www.nasdaq.com/articles/tilray-stock-is-budding-and-is-a-great-long-term-buy-2021-06-23 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The bulls are completely in charge of Wall Street since the pandemic bottom last year. But in spite of the indices setting records, there are some stocks lagging now. Cannabis in general is a sector struggling of late. Tilray (NASDAQ:TLRY) stock has been in a downward spiral since February. From high to low it fell 80% following the GameStop (NYSE:GME) super spike.
TLRY) logo on a web browser." width="300" height="169">
Source: Jarretera / Shutterstock.com
These artificial mega-rallies are disruptive especially that this was TLRY’s second. At its lowest last month it was 95% below its 2018 all time high. It has had strong showings but the bulls have failed to hold the levels. The sympathy action from the Reddit meme stocks is detracting from the company’s efforts.
The Cannabis sector is trying to establish themselves as a legitimate investment thesis. Social media shenanigans are working against that effort. TLRY finally closed on the merger with Aphria and now is a more formidable foe. Management has skills, because they did this while their product is still illegal in the United States.
In my last article in April, I suggested that TLRY stock had stronger support below. The test of that opinion is ongoing now, because the price has fallen into it. Back then I had suggested selling puts instead of buying shares. That trade is still working well, and now investors have a decision to make. Should they stay long for the long haul, or actively trade around the action.
10 Marijuana Stocks to Buy for Their 'Beyond the Flower' Plans
I don’t fault the fans willing to stick it out — after all, the game hasn’t even legally started.
The cannabis trade will benefit from the legalization headline. However I warn against the possibility that the easy money played out already. Wall Street has a way of looking far out in advance and may have already factored the effect of President Joe Biden’s priorities and plans in.
Fundamentally, Tilray stock is doing relatively okay. Revenues are growing and net income is somewhat stable. It still loses money but the price-to-sales ratio is under 15. Buyers today have realistic expectations without a lot of hopium in it. It will be harder to spook them out of their positions.
Besides, the 25% June correction may have already shaken out the weak hands.
It is important for the bulls to maintain a positive ascending trend of higher-lows. For that to happen the stock price needs to stay above $16 per share. Otherwise there could be another retest of the May lows.
TLRY Stock Is a Winner Over Time
Source: Charts by TradingView
Left alone I trust that things will work out well. However, I have some concerns stemming from the overall macroeconomic conditions. The indices are setting blistering records with the help of a massive stimulus effort. The Federal reserve hinted last week that this could be ending sooner than later. The White House also looks like it is unwinding its programs, so we could suffer a sugar high crash.
Stocks have been rising with gale-force tailwind from trillions in government programs. I worry about what could replace them and how will the markets react in their absence. Fundamentally there’s nothing wrong, but technically there could be a big pothole while investors adjust.
By rule, I have infused an extra notch of doubt in all of my trades this year. I am confident that I will survive missing out on a few upside ticks. Conversely I refuse to be a victim to a gigantic blind side like in 2008. In the very long term TLRY stock is more likely than not going to have better days. Owning some of it now is fine as long as investors leave room for error.
On the date of publication, Nicolas Chahine 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.
Nicolas Chahine is the managing director of SellSpreads.com.
The post Tilray Stock Is Budding and Is a Great Long-Term Buy 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. | 10 Marijuana Stocks to Buy for Their 'Beyond the Flower' Plans I don’t fault the fans willing to stick it out — after all, the game hasn’t even legally started. TLRY Stock Is a Winner Over Time Source: Charts by TradingView Left alone I trust that things will work out well. On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The bulls are completely in charge of Wall Street since the pandemic bottom last year. Tilray (NASDAQ:TLRY) stock has been in a downward spiral since February. Fundamentally, Tilray stock is doing relatively okay. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The bulls are completely in charge of Wall Street since the pandemic bottom last year. TLRY Stock Is a Winner Over Time Source: Charts by TradingView Left alone I trust that things will work out well. In the very long term TLRY stock is more likely than not going to have better days. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The bulls are completely in charge of Wall Street since the pandemic bottom last year. The cannabis trade will benefit from the legalization headline. In the very long term TLRY stock is more likely than not going to have better days. |
36756.0 | 2021-06-16 00:00:00 UTC | 2 Ways Aurora Cannabis Is Shooting Itself in the Foot | ACB | https://www.nasdaq.com/articles/2-ways-aurora-cannabis-is-shooting-itself-in-the-foot-2021-06-16 | nan | nan | Canada-based Aurora Cannabis (NASDAQ: ACB) has long been a favorite of investors, having made many of them millionaires in the past after it began selling medical cannabis in the first quarter of 2016 (Canada legalized medical cannabis in 2001). In just the two years between 2016 and 2018, Aurora's share price shot up by 2,400%. However, Aurora didn't focus on its expenses while ramping up its operations, and this led to great financial distress and took a toll on its stock price.
ACB data by YCharts
The year 2020 was a dreadful one for the company, which repeatedly failed to live up to its promise of achieving positive earnings before interest, tax, depreciation, and amortization (EBITDA). And results from the third quarter, which ended March 31, show that management still isn't doing enough to get back to safety. Here are two ways Aurora is still shooting itself in the foot.
Image source: Getty Images.
Ineffective growth strategies
While U.S. cannabis companies are generating triple-digit revenue growth even with a limited legal market (cannabis is federally illegal in the U.S.), Aurora Cannabis's revenue picture doesn't look good. Massachusetts-based Curaleaf Holdings' (OTC: CURLF) revenue grew 170% year over year to $260 million in its first quarter ended March 31. Meanwhile, Aurora recorded a revenue decline in its fiscal Q3 2021, which also ended March 31. Its total net revenue fell 25% year over year to 55 million Canadian dollars. On the recreational front, cannabis sales fell 53% to CA$18 million from the year-ago period.
The worst part is that Aurora is failing to generate enough revenue from its medical cannabis sales even in Canada, where it should have established a stronger market by now. It had an early mover advantage in Canada and started generating sales from medical cannabis in January 2016. But Aurora's domestic medical cannabis sales actually fell 17% year over year to CA$36 million in the recent quarter.
For the same period, peer Canopy Growth (NASDAQ: CGC) recorded a 37% jump in total net revenue to CA$546 million from the year-ago period and saw CA$55 million in revenue just from medical cannabis in Canada. That company also saw a drastic 32% jump year over year to CA$229 million from recreational cannabis, with much of the credit going to its new, innovative high-margin cannabis derivatives products.
Not taking advantage of the new derivatives market
Canada legalized cannabis derivatives, which include vapes, edibles, beverages, concentrates, and more, in October 2019 as part of "cannabis 2.0" legalization.
But Aurora has failed to show much involvement in these products, which are a highlight of the marijuana industry right now. One research report from Deloitte shows that the cannabis derivatives market could be worth CA$2 billion annually. Aurora launched a few of these derivatives -- cannabis-infused edibles and some vape products -- in December 2019, but since then there has been no development.
It's not hard to see why. These innovative products are costly to manufacture, and Aurora has been struggling to keep its costs down. It was easier for Canopy Growth, as that company's U.S. beverage giant partner Constellation Brands (NYSE: STZ) does most of its heavy financial lifting.
This is another mistake Aurora made: not having a deep-pocketed partner like Constellation, one that could have allowed the company to persist through any crisis while focusing on growth. This disadvantage will also make it hard for Aurora to expand into the growing U.S. cannabis market.
High-margin derivatives could help Aurora push its revenue higher, putting it closer to profitability. Aurora managed to reduce its EBITDA losses to CA$24 million from CA$49 million in Q3 2020, which is an improvement, but that is not a strong indication that the company is recovering.
The profitability target seems far-fetched for Aurora anytime over the next two years, but investors hope the company will at least achieve positive EBITDA this year. In the Q3earnings call CFO Glen Ibbott claimed that with "the continued business transformation efficiencies," Aurora would become EBITDA positive in the next 18 months. I find this a reasonable target, provided Aurora manages to get into the derivatives market to grow its revenue while keeping costs lower.
Under the leadership of CEO Miguel Martin, in June, Aurora instituted what it calls "facility rationalizations," whereby it shut down unproductive facilities in order to focus on the productive ones. The company has already realized cost savings of CA$300 million from this business transformation plan. It expects another CA$60 million to CA$80 million in savings annually over the next 18 months.
Is there any hope for this pot stock?
Through various dilution strategies, Aurora has managed to maintain its cash position for now. It ended the quarter with CA$525 million in cash and CA$90 million of outstanding term debt. Management stated in theearnings callthat they intend to clear off this debt over the coming months through cash they plan to obtain from "nondilutive cash inflows from noncore asset sales and grants."
Looking at the company's history of failing to deliver on its promises, it is hard to trust any of these projections. With marijuana sales on the rise and prospects of U.S. federal legalization on the horizon, it wouldn't be entirely impossible for Aurora to recover -- but it could take a while. If you have the stomach to bear the risk, a small stake in the company could be worthwhile. But before investing heavily in this marijuana stock and expecting it to make you richer, I advise waiting for the company to show some solid revenue and profit numbers.
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 – 15 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 owns shares of and recommends Constellation 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. | ACB data by YCharts The year 2020 was a dreadful one for the company, which repeatedly failed to live up to its promise of achieving positive earnings before interest, tax, depreciation, and amortization (EBITDA). Canada-based Aurora Cannabis (NASDAQ: ACB) has long been a favorite of investors, having made many of them millionaires in the past after it began selling medical cannabis in the first quarter of 2016 (Canada legalized medical cannabis in 2001). It was easier for Canopy Growth, as that company's U.S. beverage giant partner Constellation Brands (NYSE: STZ) does most of its heavy financial lifting. | Canada-based Aurora Cannabis (NASDAQ: ACB) has long been a favorite of investors, having made many of them millionaires in the past after it began selling medical cannabis in the first quarter of 2016 (Canada legalized medical cannabis in 2001). ACB data by YCharts The year 2020 was a dreadful one for the company, which repeatedly failed to live up to its promise of achieving positive earnings before interest, tax, depreciation, and amortization (EBITDA). Its total net revenue fell 25% year over year to 55 million Canadian dollars. | Canada-based Aurora Cannabis (NASDAQ: ACB) has long been a favorite of investors, having made many of them millionaires in the past after it began selling medical cannabis in the first quarter of 2016 (Canada legalized medical cannabis in 2001). ACB data by YCharts The year 2020 was a dreadful one for the company, which repeatedly failed to live up to its promise of achieving positive earnings before interest, tax, depreciation, and amortization (EBITDA). Ineffective growth strategies While U.S. cannabis companies are generating triple-digit revenue growth even with a limited legal market (cannabis is federally illegal in the U.S.), Aurora Cannabis's revenue picture doesn't look good. | Canada-based Aurora Cannabis (NASDAQ: ACB) has long been a favorite of investors, having made many of them millionaires in the past after it began selling medical cannabis in the first quarter of 2016 (Canada legalized medical cannabis in 2001). ACB data by YCharts The year 2020 was a dreadful one for the company, which repeatedly failed to live up to its promise of achieving positive earnings before interest, tax, depreciation, and amortization (EBITDA). For the same period, peer Canopy Growth (NASDAQ: CGC) recorded a 37% jump in total net revenue to CA$546 million from the year-ago period and saw CA$55 million in revenue just from medical cannabis in Canada. |
36757.0 | 2021-06-15 00:00:00 UTC | Here's How Low Analysts Think Aurora Cannabis Can Go | ACB | https://www.nasdaq.com/articles/heres-how-low-analysts-think-aurora-cannabis-can-go-2021-06-15 | nan | nan | Even as the overall cannabis industry has been getting bigger and earning more enthusiasm from investors, Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) stock has done poorly. Its share price has fallen by 26% over the past year -- undoubtedly frustrating its shareholders -- while the sector benchmark Horizons Marijuana Life Sciences ETF is up by more than 46% over the same period.
And Aurora's shares may not be done declining. Analysts on Wall Street are expecting the pot stock to continue to fall after another uninspiring quarter.
Image source: Getty Images.
Analysts see more than 30% downside
Since May, when Aurora released its earnings report for the first three months of 2021 (its fiscal third quarter), many analysts have been downgrading the stock and cutting their price targets. Aurora reported a year-over-year sales decline of 25% to just 55 million Canadian dollars for fiscal Q3, so it has been difficult to find much reason for bullishness. And while the company is focused on improving its bottom line, it booked an an adjusted EBITDA loss of CA$24 million -- even steeper than the loss of CA$16.8 million it took in fiscal Q2 2021.
Here are some of the price targets the analysts covering Aurora have set:
CIBC: CA$9
BMO Capital Markets: CA$8
Canaccord Genuity: CA$7
Desjardin: CA$8
Cantor Fitzgerald: CA$9
Last week, the stock closed at $9.82 on the NASDAQ and CA$11.94 on the Toronto Stock Exchange. The five price targets above average out to CA$8.20, suggesting that Aurora's stock could drop by another 31% over the next year. As bearish a forecast as that may be, it still wouldn't put the share price anywhere near the lows it hit in October 2020 when it fell below $4 on the NASDAQ.
What will make or break the stock this year?
Two factors will determine where Aurora Cannabis goes in 2021 -- its top and bottom lines. The challenges the company has faced in moving the needle to bolster its profits and grow sales have dragged the stock down. Better numbers would help the stock gain some traction, and also lessen the need for management to continually issue new shares to raise cash.
In the past 12 months, Aurora Cannabis burned through CA$280 million for its operating activities, and raised CA$714 million through stock offerings. Unless the company can stop those trends, it's likely that its share price will descend to the lows that many analysts are projecting.
Is Aurora Cannabis a good contrarian buy?
Aurora has been a chronic underperformer, and as tempting as it might be to roll the dice on the stock and bet that the company will turn things around, that would be a dangerous tactic. Many cannabis companies have been putting up adjusted EBITDA profits of late, including Sundial Growers and HEXO. Aurora isn't generating the impressive growth that multistate operators in the U.S. are posting, and now even companies in Canada are doing better and achieving stronger bottom lines. Until and unless the business improves, there's little reason to expect the stock will rally.
However, it's easy to see why risk-takers might be willing to gamble on the stock. Ahead of its fiscal second-quarter report (for the period that ended Dec. 31), traders bid the stock upward. When Aurora delivered those numbers on Feb. 11, they weren't abysmal, and the company's adjusted EBITDA was moving in the right direction. As a result, the stock spiked even higher to a peak of nearly $19. All of that bullishness faded within days, but it's a reminder of just how quickly some positivity can send Aurora's share price soaring.
Unless you're the gambling type, I would stay away from Aurora's stock -- it just isn't worth the risk. While the company could surprise investors with positive results next quarter, tougher times are still likely ahead for it and other Canadian cannabis producers.
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 – 15 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 recommends HEXO Corp. 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. | Even as the overall cannabis industry has been getting bigger and earning more enthusiasm from investors, Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) stock has done poorly. Its share price has fallen by 26% over the past year -- undoubtedly frustrating its shareholders -- while the sector benchmark Horizons Marijuana Life Sciences ETF is up by more than 46% over the same period. Aurora has been a chronic underperformer, and as tempting as it might be to roll the dice on the stock and bet that the company will turn things around, that would be a dangerous tactic. | Even as the overall cannabis industry has been getting bigger and earning more enthusiasm from investors, Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) stock has done poorly. And while the company is focused on improving its bottom line, it booked an an adjusted EBITDA loss of CA$24 million -- even steeper than the loss of CA$16.8 million it took in fiscal Q2 2021. In the past 12 months, Aurora Cannabis burned through CA$280 million for its operating activities, and raised CA$714 million through stock offerings. | Even as the overall cannabis industry has been getting bigger and earning more enthusiasm from investors, Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) stock has done poorly. BMO Capital Markets: CA$8 Canaccord Genuity: CA$7 Desjardin: CA$8 Cantor Fitzgerald: CA$9 Last week, the stock closed at $9.82 on the NASDAQ and CA$11.94 on the Toronto Stock Exchange. In the past 12 months, Aurora Cannabis burned through CA$280 million for its operating activities, and raised CA$714 million through stock offerings. | Even as the overall cannabis industry has been getting bigger and earning more enthusiasm from investors, Canadian marijuana company Aurora Cannabis (NASDAQ: ACB) stock has done poorly. And Aurora's shares may not be done declining. And while the company is focused on improving its bottom line, it booked an an adjusted EBITDA loss of CA$24 million -- even steeper than the loss of CA$16.8 million it took in fiscal Q2 2021. |
36758.0 | 2021-06-11 00:00:00 UTC | Meme-Type Action Could Have Different Results for These 2 Long-Term Investments | ACB | https://www.nasdaq.com/articles/meme-type-action-could-have-different-results-for-these-2-long-term-investments-2021-06-11 | nan | nan | Whether you're betting on meme stocks or investing for long-term gain, there is the potential to make millions. But there is also potential to put your hard-earned dollars at risk.
Investors who stick to a long-term strategy can become millionaires over the course of years -- think investors in the cannabis industry, or possibly those who select a favorite turnaround play for the long haul. When it comes to retail investors who target companies with a high short interest (say, 20% of shares outstanding), that timeline can shorten to just a few days or weeks. And where the two strategies cross paths, you find the investors who just happen to get lucky. But getting lucky can also lead to frustration, uncertainty, and risk along the way.
The two stocks below have both seen challenges. One has legitimate turnaround potential, while the other could benefit from the hype despite the holes in its business. What happens when the Reddit r/WallStreetBets crowd takes notice of either one?
Image source: Getty Images.
A cannabis company that's missing the mark
For cannabis investors focused on the long term, it's important to look for businesses that are showing profits and expansion, are innovative leaders in the industry, and/or have a team of executives with vast experience and knowledge to put their company in the best possible scenario to be successful.
Aurora Cannabis (NASDAQ: ACB) is not one of them. The business has found its way into the spotlight thanks in part to hype and hope, but its financial stability is lacking. The company has failed repeatedly to grow revenue or meet consensus estimates on earnings. For the most recent quarter, which ended in March, Aurora reported a loss of $0.24 per share, missing estimates by 21% for revenue and by 41% for earnings -- marking two straight quarters of missing on earnings by more than 40%.
Although Aurora calls itself the No. 1 licensed producer of medical cannabis in Canada by revenue, and No. 2 by global cannabis sales, the company only represents 19% of the Canadian medical market. It relies heavily on international medical cannabis sales, and the momentum in that market gives it something to build on. But it will need to continue with its cost-cutting program, which saw selling, general, and administrative expenses down by 42% year over year in the most recent quarter. Management is hoping to eliminate $60 million to $80 million in annual expenses over the next 18 months. There are better plays in the medical and recreational-use cannabis market that offer more potential for less risk.
A big name from the past looks to the future
Some long-term investors are targeting BlackBerry (NYSE: BB) as a turnaround play. The company is in the midst of a strategic transition away from making smartphones and toward providing security solutions in the space known as the Internet of Things (IoT): internet-connected objects that collect and transfer data over a wireless network.
For BlackBerry's long-term investors, the good news is that the company provides products and services supporting the healthcare and transportation industries. The cybersecurity market in healthcare is projected to grow at a compound annual growth rate (CAGR) of 15.6% through 2026, while the transportation security market has a projected growth rate of 8% through 2027.
Management's new BlackBerry QNX real-time operating system platform is being used across various industries; it's currently running in 175 million vehicles, and the company recently added four more design wins to its growing list of top 25 electric vehicle original equipment manufacturers (OEMs) -- companies that provide the specifically designed components for a vehicle -- bringing its total to 23 of the top 25, an increase of 21%. Volvo is among these names, and has selected QNX as its primary software supporting the main electronic control units of the 300,000 heavy vehicles that Volvo manufactures each year.
The bad news has come in the form of the company's recent financial results. Thanks in part to the COVID-19 pandemic, revenue is down year over year, along with lowered margins and a higher per-share loss. But if there is a light at the end of the tunnel, it may be coming from the QNX platform -- having the system in 23 of the top 25 OEMs puts the company front and center for the electric vehicle manufacturers that own 68% of the electric vehicle market, and that market is very young. As it evolves with new technology requirements and vehicle models it will provide Blackberry with more opportunity for new design wins, and potentially lead to an increase in the number of electric vehicle manufacturers and number of vehicles it supports.
Easy come, easy go
Where it gets interesting for long-term investors is when the r/WallStreetBets community starts hyping BlackBerry or Aurora as the next AMC Entertainment Holdings or GameStop, which have seen gains in the neighborhood of 2,200% just this year, and have made some millionaires overnight. In fact, BlackBerry's stock has spiked twice this year for this reason, first in January when it went from $7 to over $25 in a matter of three weeks, then in the last week of May when it made a second run from $8 to $16. These small bursts can add some excitement to an investor's day, but the inconsistency and uncertainty about whether the company will be the next AMC or GameStop can also bring about quite a few "what should I do" moments. This type of hype could be detrimental to BlackBerry shareholders if they believe in the company's turnaround potential but are still subject to the whims of investors who take profits with no baseline.
For Aurora investors, the only positive growth in share price for the past two years has come from external news, such as a new administration being voted in, or a recent comment by CEO Miguel Martin referring to news about Amazon's take on a marijuana policy. No Aurora company news has been able to move the price in a positive direction. Becoming a meme stock and a focus of retail investors may be all that's left for original investors looking to get back something before they exit.
Meme stocks trade against the grain of fundamental investing. When a company with true turnaround potential gets sucked in, it can be frustrating and sometimes disappointing. When it happens to a company with not much else going for it, it can be a blessing in disguise for shareholders looking for a way out.
10 stocks we like better than BlackBerry
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and BlackBerry wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Jeff Little owns shares of Aurora Cannabis Inc., BlackBerry, Canopy Growth Corp., and Green Thumb Industries. The Motley Fool owns shares of and recommends Green Thumb Industries. The Motley Fool recommends BlackBerry. 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) is not one of them. When it comes to retail investors who target companies with a high short interest (say, 20% of shares outstanding), that timeline can shorten to just a few days or weeks. The company is in the midst of a strategic transition away from making smartphones and toward providing security solutions in the space known as the Internet of Things (IoT): internet-connected objects that collect and transfer data over a wireless network. | Aurora Cannabis (NASDAQ: ACB) is not one of them. Management's new BlackBerry QNX real-time operating system platform is being used across various industries; it's currently running in 175 million vehicles, and the company recently added four more design wins to its growing list of top 25 electric vehicle original equipment manufacturers (OEMs) -- companies that provide the specifically designed components for a vehicle -- bringing its total to 23 of the top 25, an increase of 21%. As it evolves with new technology requirements and vehicle models it will provide Blackberry with more opportunity for new design wins, and potentially lead to an increase in the number of electric vehicle manufacturers and number of vehicles it supports. | Aurora Cannabis (NASDAQ: ACB) is not one of them. A cannabis company that's missing the mark For cannabis investors focused on the long term, it's important to look for businesses that are showing profits and expansion, are innovative leaders in the industry, and/or have a team of executives with vast experience and knowledge to put their company in the best possible scenario to be successful. Management's new BlackBerry QNX real-time operating system platform is being used across various industries; it's currently running in 175 million vehicles, and the company recently added four more design wins to its growing list of top 25 electric vehicle original equipment manufacturers (OEMs) -- companies that provide the specifically designed components for a vehicle -- bringing its total to 23 of the top 25, an increase of 21%. | Aurora Cannabis (NASDAQ: ACB) is not one of them. For the most recent quarter, which ended in March, Aurora reported a loss of $0.24 per share, missing estimates by 21% for revenue and by 41% for earnings -- marking two straight quarters of missing on earnings by more than 40%. There are better plays in the medical and recreational-use cannabis market that offer more potential for less risk. |
36759.0 | 2021-06-10 00:00:00 UTC | July 30th Options Now Available For Aurora Cannabis (ACB) | ACB | https://www.nasdaq.com/articles/july-30th-options-now-available-for-aurora-cannabis-acb-2021-06-10 | nan | nan | Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 30th contracts and identified one put and one call contract of particular interest.
The put contract at the $9.50 strike price has a current bid of $1.07. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $9.50, but will also collect the premium, putting the cost basis of the shares at $8.43 (before broker commissions). To an investor already interested in purchasing shares of ACB, that could represent an attractive alternative to paying $9.89/share today.
Because the $9.50 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 11.26% return on the cash commitment, or 82.22% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aurora Cannabis Inc, and highlighting in green where the $9.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $10.50 strike price has a current bid of 79 cents. If an investor was to purchase shares of ACB stock at the current price level of $9.89/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $10.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 14.16% if the stock gets called away at the July 30th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red:
Considering the fact that the $10.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.99% boost of extra return to the investor, or 58.31% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $9.89) to be 118%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the July 30th expiration. | Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 30th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 30th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ACB's trailing twelve month trading history, with the $10.50 strike highlighted in red: Considering the fact that the $10.50 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 30th contracts and identified one put and one call contract of particular interest. |
36760.0 | 2021-06-09 00:00:00 UTC | 3 Pot Plays That Are Lighting Up With Momentum | ACB | https://www.nasdaq.com/articles/3-pot-plays-that-are-lighting-up-with-momentum-2021-06-09 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Look alive, momentum lovers. Despite the broad market’s dithering, marijuana stocks are finally percolating. The awakening has been a long time coming, and today we’re going to spotlight three picks that demand your attention.
To gain a sense of the industry’s ebb and flow, I use the Alternative Harvest ETF (NYSEARCA:MJ), which counts the biggest cannabis companies among its top holdings. Since February’s blow-off top, MJ has been trending lower beneath a falling 50-day and 20-day moving average.
The fall from grace wasn’t isolated to marijuana stocks. Growth stocks everywhere took it on the chin as traders started looking for better-valued bargains elsewhere.
8 Tech Stocks That Are Helping to Build the Next Big Thing
But the pendulum is starting to swing back. Last week, MJ rallied back above its 50-day, breaching multiple ceilings in the process. This morning’s 2% gain is providing further follow-through and evidence of buyers’ staying power.
That said, here are three tempting targets if you’re looking to get in on the action.
Aurora Cannabis (NASDAQ:ACB)
Cronos Group (NASDAQ:CRON)
Tilray (NASDAQ:TLRY)
We’ll follow my usual course with a quick chart breakdown and trade idea.
Marijuana Stocks: Aurora Cannabis (ACB)
Source: The thinkorswim® platform from TD Ameritrade
Aurora Cannabis is echoing the behavior of its industry fund, MJ, with one exception. Its trend reversal is more mature. In other words, ACB stock has already seen more upside and distance itself from the 50-day moving average.
A two-day pullback developed after the initial breakout, but buyers swarmed quickly, and we’ve rallied over the past three sessions. Shallow retracements like this reveal bulls’ aggression and suggest the newfound trend has more gas in the tank.
At $10, ACB is cheap enough for a straight stock play. I like using last week’s low ($9.07) as the stop loss if you’re swinging directional plays. If you want a higher probability play, then sell puts.
The Trade: Sell the $9 put for 58 cents.
Cronos Group (CRON)
Source: The thinkorswim® platform from TD Ameritrade
The old idiom of birds of a feather flocking together holds for marijuana stocks. Especially right now. Cronos Group looks extremely similar to ACB, and MJ for that matter. In addition, it also carries a similar price tag to Aurora. I’d characterize its recent surge as a breakout, a base, and now, a new breakout attempt.
Relative strength is on display this morning, with CRON up nearly 5% at the time of this writing. There isn’t any major resistance until $11, making it the obvious target for chart watchers like me.
8 Tech Stocks That Are Helping to Build the Next Big Thing
From a strategy perspective, I’d echo the ACB commentary. Long stock for a directional play, or short puts if you want to game time decay.
The Trade: Sell the July $8 put for 40 cents.
Marijuana Stocks: Tilray (TLRY)
Source: The thinkorswim® platform from TD Ameritrade
The final pick for today’s hat trick of marijuana stocks is Tilray. The big differentiator for TLRY versus its predecessors is volatility. It has a booming beta with a penchant for massive moves. While ACB and CRON are up 3% and 5% this morning, TLRY is galloping higher by 9%. But even this comparison doesn’t do it justice. If you want to see when things really get wild, check out the epic squeeze in February, which saw prices more than triple in a little over a week.
While I wouldn’t necessarily bet on the lighting striking twice, TLRY could still deliver some nice gains if pot stocks remain in favor for a spell. No sense in departing from the logic used to build plays on the other two picks. Stick with buying stock or shorting puts.
The Trade: Sell the July $15 put for 60 cents.
On the date of publication, Tyler Craig held LONG positions in MJ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
For a free trial to the best trading community on the planet and Tyler’s current home, click here!
The post 3 Pot Plays That Are Lighting Up With Momentum 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 (NASDAQ:ACB) Cronos Group (NASDAQ:CRON) Tilray (NASDAQ:TLRY) We’ll follow my usual course with a quick chart breakdown and trade idea. Marijuana Stocks: Aurora Cannabis (ACB) Source: The thinkorswim® platform from TD Ameritrade Aurora Cannabis is echoing the behavior of its industry fund, MJ, with one exception. In other words, ACB stock has already seen more upside and distance itself from the 50-day moving average. | Aurora Cannabis (NASDAQ:ACB) Cronos Group (NASDAQ:CRON) Tilray (NASDAQ:TLRY) We’ll follow my usual course with a quick chart breakdown and trade idea. Marijuana Stocks: Aurora Cannabis (ACB) Source: The thinkorswim® platform from TD Ameritrade Aurora Cannabis is echoing the behavior of its industry fund, MJ, with one exception. In other words, ACB stock has already seen more upside and distance itself from the 50-day moving average. | Aurora Cannabis (NASDAQ:ACB) Cronos Group (NASDAQ:CRON) Tilray (NASDAQ:TLRY) We’ll follow my usual course with a quick chart breakdown and trade idea. Marijuana Stocks: Aurora Cannabis (ACB) Source: The thinkorswim® platform from TD Ameritrade Aurora Cannabis is echoing the behavior of its industry fund, MJ, with one exception. In other words, ACB stock has already seen more upside and distance itself from the 50-day moving average. | Aurora Cannabis (NASDAQ:ACB) Cronos Group (NASDAQ:CRON) Tilray (NASDAQ:TLRY) We’ll follow my usual course with a quick chart breakdown and trade idea. Marijuana Stocks: Aurora Cannabis (ACB) Source: The thinkorswim® platform from TD Ameritrade Aurora Cannabis is echoing the behavior of its industry fund, MJ, with one exception. In other words, ACB stock has already seen more upside and distance itself from the 50-day moving average. |
36761.0 | 2021-06-08 00:00:00 UTC | Here's 1 Popular Robinhood Stock That Could Be Even Riskier Than Dogecoin | ACB | https://www.nasdaq.com/articles/heres-1-popular-robinhood-stock-that-could-be-even-riskier-than-dogecoin-2021-06-08 | nan | nan | Whatever you think about Dogecoin (CRYPTO: DOGE), it's been a huge winner this year. The price of the popular cryptocurrency has skyrocketed more than 6,400%. That return trounces even the best-performing stocks that are currently popular on Robinhood.
But Dogecoin proponents and opponents alike would also probably agree that the cryptocurrency is risky. Some traders who bought at the peak price a few weeks ago are now sitting on a 45% loss.
This cryptocurrency isn't the only investment alternative that exposes buyers to the potential for huge losses, though. Here's one popular Robinhood stock that could be even riskier than Dogecoin.
Image source: Getty Images.
A shadow of its former self
At least one of the most widely held stocks among Robinhood investors has fallen harder this year than Dogecoin. Aurora Cannabis (NASDAQ: ACB) shares currently trade at more than 50% below its peak level set in February.
However, the full story is much worse for Aurora. The marijuana stock has lost more than 90% of its value since early 2018.
At one point, Aurora ranked as the biggest cannabis producer in the world based on market cap. Reports even surfaced that Coca-Cola was considering teaming up with the company to develop cannabis-infused beverages. All of that seems like ancient history now, though.
While several of its rivals in the Canadian cannabis market landed big partners, Aurora has yet to strike a deal with a major player in the consumer packaged goods industry. And the company isn't anywhere close to being the biggest cannabis producer in the world now. It barely makes the top five among Canadian companies and could easily lose its spot among the top 10 biggest North American cannabis companies.
What makes Aurora so risky
You could make the argument, though, that Aurora is actually less risky now that it's only a shadow of its former self. To some degree, that's true. However, there are still several major risks that the company faces.
Aurora's biggest problem is that it continues to lose a lot of money. In the company's third-quarter results announced in May, Aurora posted a net loss from continuing operations of $165.7 million Canadian. In the past, Aurora has stated that it was on track to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). That goal still hasn't been met.
Because it remains unprofitable, Aurora has to resort to stock offerings to raise more cash. These offerings, though, cause dilution in the value of existing shares. Less than a week after reporting its Q3 results, Aurora filed a prospectus supplement that set up a new at-the-market equity program. This program allows the company to sell up to $300 million of shares. More dilution is on the way.
Aurora's situation would be better if its financial results were improving, but they're not. The company sales fell 25% year over year in Q3 with its consumer cannabis revenue plunging 53%. Competition in the Canadian market is fierce with intense pricing pressure.
The company has its target set on the U.S. cannabis market. For now, though, Aurora can't enter the U.S. market and list its shares on a major U.S. stock exchange because of federal marijuana laws.
One advantage
Does Aurora have any advantages over Dogecoin? Actually, yes -- and it's a significant one: The struggling cannabis producer has more control over its future than Dogecoin does.
Like most cryptocurrencies, Dogecoin's valuation depends solely on buyers' whims. It has no value in and of itself. There isn't a board of directors and a management team working every day to figure out ways to boost Dogecoin's price (unless you want to count self-proclaimed "Dogefather" Elon Musk's tweets).
On the other hand, Aurora does have a board and executives developing and implementing strategies to improve the company's fortunes. They've cut costs. They're looking at potential acquisitions. Maybe these efforts will work; maybe they won't. However, unlike Dogecoin, Aurora isn't totally at the mercy of outside forces.
Despite this advantage, it's still possible that Aurora will be a riskier bet going forward than Dogecoin will be. The good news for investors, though, is that you don't have to accept any level of risk that you're not comfortable with. There are plenty of other investment alternatives that offer better risk-reward propositions than either Aurora Cannabis or Dogecoin.
10 stocks we like better than Aurora Cannabis
When investing geniuses David and Tom Gardner have 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.*
David and Tom 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.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Keith Speights 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) shares currently trade at more than 50% below its peak level set in February. While several of its rivals in the Canadian cannabis market landed big partners, Aurora has yet to strike a deal with a major player in the consumer packaged goods industry. In the past, Aurora has stated that it was on track to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). | Aurora Cannabis (NASDAQ: ACB) shares currently trade at more than 50% below its peak level set in February. This cryptocurrency isn't the only investment alternative that exposes buyers to the potential for huge losses, though. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights has no position in any of the stocks mentioned. | Aurora Cannabis (NASDAQ: ACB) shares currently trade at more than 50% below its peak level set in February. For now, though, Aurora can't enter the U.S. market and list its shares on a major U.S. stock exchange because of federal marijuana laws. 10 stocks we like better than Aurora Cannabis When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Aurora Cannabis (NASDAQ: ACB) shares currently trade at more than 50% below its peak level set in February. The price of the popular cryptocurrency has skyrocketed more than 6,400%. These offerings, though, cause dilution in the value of existing shares. |
36762.0 | 2021-06-07 00:00:00 UTC | Why 22nd Century Group, HEXO, and Canopy Growth Stocks All Popped Today | ACB | https://www.nasdaq.com/articles/why-22nd-century-group-hexo-and-canopy-growth-stocks-all-popped-today-2021-06-07 | nan | nan | What happened
Marijuana stocks are growing again Monday -- with a little help from 22nd Century Group (NYSEMKT: XXII).
In a pair of press releases, 22nd Century first announced that it is selling 10 million shares of stock to an institutional investor at $4 a share, in order to raise $40 million "to support the Company's strategic objectives across all of its plant franchises." Then 22nd Century announced that one of these "objectives" will be to partner with Aurora Cannabis (NASDAQ: ACB) to "actively explore commercial development opportunities" on tobacco and cannabis products.
22nd Century stock jumped 13.2% today, and Aurora Cannabis stock closed 8.3% higher -- but cannabis stocks HEXO (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) climbed higher as well, ending up 3.7% and 5.8%, respectively.
Image source: Getty Images.
So what
What's the connection here? What connects point A (22nd Century and Aurora's partnership) to point B (HEXO's and Canopy's reaction to the news)?
Two theories suggest themselves. First, in 22nd Century's announcement, it mentioned that it has secured "strategic partnerships with two leading alkaloid specialist plant breeders to complete [its] full scope of upstream capabilities." 22nd Century didn't identify either partner, saying it will give more detail on this only in its Q2 2021earnings callin August -- but investors may be starting to place bets among the publicly traded marijuana producers as to who they might be.
But second, even if neither HEXO nor Canopy Growth are the partners, 22nd Century's raising of capital -- and investing it in, among other things, forming a new "22nd Century Canada" Canadian subsidiary to exploit "expanded activities in tobacco, hemp/cannabis and its yet-to-be announced third franchise" and commercializing "key aspects of cannabinoid biosynthesis in the hemp/cannabis plant and microorganisms" -- suggests renewed enthusiasm for the marijuana business.
Now what
Of course, the question still remains whether any of these new developments will be enough to move the needle and turn the marijuana industry profitable. To date, of the four companies named above, not one has been able to book even a single full-year profit in the three years since Canada legalized marijuana for recreational use. To the contrary, the larger companies (Canopy and Aurora) seem to lose more and more money with each passing year.
Maybe 22nd Century's growing role in this industry will do something to change that. Maybe, though, its deeper involvement will just contribute to the situation of oversupply that has kept a lid on cannabis prices and kept the marijuana industry as a whole unprofitable for years.
10 stocks we like better than 22nd Century Group
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and 22nd Century Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. 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. | Then 22nd Century announced that one of these "objectives" will be to partner with Aurora Cannabis (NASDAQ: ACB) to "actively explore commercial development opportunities" on tobacco and cannabis products. First, in 22nd Century's announcement, it mentioned that it has secured "strategic partnerships with two leading alkaloid specialist plant breeders to complete [its] full scope of upstream capabilities." 22nd Century didn't identify either partner, saying it will give more detail on this only in its Q2 2021earnings callin August -- but investors may be starting to place bets among the publicly traded marijuana producers as to who they might be. | Then 22nd Century announced that one of these "objectives" will be to partner with Aurora Cannabis (NASDAQ: ACB) to "actively explore commercial development opportunities" on tobacco and cannabis products. 22nd Century stock jumped 13.2% today, and Aurora Cannabis stock closed 8.3% higher -- but cannabis stocks HEXO (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) climbed higher as well, ending up 3.7% and 5.8%, respectively. What connects point A (22nd Century and Aurora's partnership) to point B (HEXO's and Canopy's reaction to the news)? | Then 22nd Century announced that one of these "objectives" will be to partner with Aurora Cannabis (NASDAQ: ACB) to "actively explore commercial development opportunities" on tobacco and cannabis products. In a pair of press releases, 22nd Century first announced that it is selling 10 million shares of stock to an institutional investor at $4 a share, in order to raise $40 million "to support the Company's strategic objectives across all of its plant franchises." 22nd Century stock jumped 13.2% today, and Aurora Cannabis stock closed 8.3% higher -- but cannabis stocks HEXO (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) climbed higher as well, ending up 3.7% and 5.8%, respectively. | Then 22nd Century announced that one of these "objectives" will be to partner with Aurora Cannabis (NASDAQ: ACB) to "actively explore commercial development opportunities" on tobacco and cannabis products. 22nd Century stock jumped 13.2% today, and Aurora Cannabis stock closed 8.3% higher -- but cannabis stocks HEXO (NYSE: HEXO) and Canopy Growth (NASDAQ: CGC) climbed higher as well, ending up 3.7% and 5.8%, respectively. But second, even if neither HEXO nor Canopy Growth are the partners, 22nd Century's raising of capital -- and investing it in, among other things, forming a new "22nd Century Canada" Canadian subsidiary to exploit "expanded activities in tobacco, hemp/cannabis and its yet-to-be announced third franchise" and commercializing "key aspects of cannabinoid biosynthesis in the hemp/cannabis plant and microorganisms" -- suggests renewed enthusiasm for the marijuana business. |
36763.0 | 2021-06-07 00:00:00 UTC | Why Sundial Growers, Aurora Cannabis, and OrganiGram Holdings Stocks Rose Today | ACB | https://www.nasdaq.com/articles/why-sundial-growers-aurora-cannabis-and-organigram-holdings-stocks-rose-today-2021-06-07 | nan | nan | What happened
The cannabis sector got a boost last week when Amazon (NASDAQ: AMZN) said it backs federal legislation in the U.S. to legalize marijuana. Canadian companies with aspirations to grow in a legal U.S. market also benefited. Some of these names have been moving thanks to interest from retail traders on social media, and it can be hard to tell whether or not they trade more on the potential for business fundamentals. Today, the direction is up, and three Canadian names are moving as follows as of 12:45 p.m. EDT:
Sundial Growers (NASDAQ: SNDL) up 8.3%.
Aurora Cannabis (NASDAQ: ACB) up 7.6%.
OrganiGram Holdings (NASDAQ: OGI) up 5.5%.
So what
Moves in these stocks can be attributed to retail traders by looking at different metrics. Besides having no company-specific news, sharp jumps in the 30-day average daily trading volume are a good clue. That recent bump has occurred in Sundial and Aurora shares.
30-day average daily volume data by YCharts.
Another focus of retail traders is short interest, as they attempt to band together and drive shares up until short-sellers have to cover, meaning buying back previously sold shares. All three of these cannabis stocks have a fairly high percentage of shares held short. As of mid-May, OrganiGram had 5.8% of its float held short, Aurora 18%, and Sundial 24%, according to MarketWatch.
Image source: Getty Images.
Now what
So while it's apparent that some cannabis stocks (especially Sundial and Aurora) appear to be moving thanks mostly to the WallStreetBets crowd, there are more-fundamental factors that have attracted investors recently.
U.S. states continue to pass legislation decriminalizing or legalizing marijuana for various uses. Most recently, traditionally conservative Alabama became the 37th state to legalize medical marijuana. And adding to legalization fever is retail giant Amazon saying it will stop screening certain employees for marijuana, depending on job requirements.
Investors should still focus mostly on the fundamentals in addition to speculating on a large new market in the U.S. But there is some bad news on that front. In its first-quarter financials reported last month, Sundial said gross revenue dropped 30% sequentially compared to the fourth quarter of 2020, and a similar amount versus the year-ago first quarter. One of the main headwinds for the company was a lower product selling price. In its earnings conference call, Sundial CFO Jim Keough explained that the average gross selling price of branded products dropped 24% compared to the previous quarter, "reflecting the industry price compression and a consumer shift to value products."
That's what longer-term cannabis investors should be focused on. The popularity of the stocks on social media will wane. What's left will be the underlying business. Whether it's from improving prices in their home market or growth into new ones, that has to improve for these companies to have long-term success.
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 – 15 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
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Howard Smith owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and OrganiGram Holdings. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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) up 7.6%. Now what So while it's apparent that some cannabis stocks (especially Sundial and Aurora) appear to be moving thanks mostly to the WallStreetBets crowd, there are more-fundamental factors that have attracted investors recently. And adding to legalization fever is retail giant Amazon saying it will stop screening certain employees for marijuana, depending on job requirements. | Aurora Cannabis (NASDAQ: ACB) up 7.6%. In its earnings conference call, Sundial CFO Jim Keough explained that the average gross selling price of branded products dropped 24% compared to the previous quarter, "reflecting the industry price compression and a consumer shift to value products." The Motley Fool owns shares of and recommends Amazon and OrganiGram Holdings. | Aurora Cannabis (NASDAQ: ACB) up 7.6%. In its earnings conference call, Sundial CFO Jim Keough explained that the average gross selling price of branded products dropped 24% compared to the previous quarter, "reflecting the industry price compression and a consumer shift to value products." 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. | Aurora Cannabis (NASDAQ: ACB) up 7.6%. Some of these names have been moving thanks to interest from retail traders on social media, and it can be hard to tell whether or not they trade more on the potential for business fundamentals. Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. |
36764.0 | 2021-06-04 00:00:00 UTC | 3 Pot Stocks to Avoid Like the Plague in June | ACB | https://www.nasdaq.com/articles/3-pot-stocks-to-avoid-like-the-plague-in-june-2021-06-04 | nan | nan | Forget about renewable energy. "Going green" with marijuana stocks may very well be one of the best investments you can make this decade.
According to New Frontier Data, the U.S. pot industry should deliver average annual growth of 21% between 2019 and 2025, ultimately leading to sales of more than $41 billion by mid-decade. Meanwhile, cannabis-focused analytics company BDSA foresees Canadian weed sales rocketing from $2.6 billion in 2020 to an estimated $6.4 billion by 2026. The old adage as an investor is to follow the money, and it's most definitely going to pot stocks.
Unfortunately, not all cannabis stocks will be winners. No matter how successful or fast-growing an industry is, there are always underperformers. As we move headlong into June, the following three pot stocks stand out for all the wrong reasons and should be avoided like the plague.
Image source: Getty Images.
Aurora Cannabis
For more than a year, I've offered up my take on which marijuana stocks should be avoided on a monthly basis. I don't believe I've once failed to include Canadian pot stock Aurora Cannabis (NASDAQ: ACB). Even though Aurora has been a consistently popular stock with millennials on online investing app Robinhood, it's just not a well-managed company, and its operating results show it.
A little over three weeks ago, Aurora Cannabis lifted the hood on its fiscal third-quarter operating performance. It featured net sales of 55.2 million Canadian dollars ($45.7 million U.S.), which represents a decline of 25% from the previous year. In particular, recreational weed sales were more than halved, which the company primarily blamed on coronavirus restrictions and a one-time transition to a contract sales team. While Canada's legal pot sales have grown at a steady pace, Aurora continues to shrink.
It also keeps burning a lot of cash. Even with the company enacting significant cost-cutting initiatives, Aurora burned through CA$86.3 million in cash in Q3 2021, which was up slightly from the CA$84.6 million it went through in the sequential quarter. The only reason Aurora's cash balance is even up from the previous year is because the company continues to dilute its shareholders with share sales and at-the-market offerings.
Speaking of share-based dilution, Aurora's share count has increased from a reverse-split-adjusted 1.35 million shares in June 2014 to about 198 million shares by March 31, 2021. Over just the past year, the company has issued close to 89 million shares. Long-term investors are constantly under assault by management's inability to control costs and grow the business.
With a mountain of idle assets and ongoing dilution, Aurora Cannabis remains one of the worst pot stocks you can buy.
Image source: Getty Images.
Cronos Group
On the other hand, having a mountain of cash isn't always the answer. Just ask the shareholders of cash-rich Canadian cannabis stock Cronos Group (NASDAQ: CRON).
Back in December 2018, Cronos landed itself a whale. Tobacco giant Altria Group (NYSE: MO) -- the company behind the premium Marlboro brand -- agreed to invest $1.8 billion for a 45% stake in the company. Armed with a boatload of capital, it was assumed that Altria would help Cronos develop and market higher-margin derivative products, such as vapes. But in spite of this equity stake, Cronos has completely floundered.
As of the end of March, Cronos had approximately $1.24 billion in cash, cash equivalents, and short-term investments remaining. It spent about $225 million (along with another $75 million in stock) helping to acquire the Lord Jones brand of cannabidiol-based beauty products in the U.S. and has seen its cash pile dwindle as losses have piled up. As for the Lord Jones purchase, Cronos recognized a measly $2.44 million in first-quarter sales.
In fact, this is a common theme for Cronos. While I'm not shy about pointing the finger at companies like Aurora Cannabis, which expanded far too quickly, Cronos deserves a finger wag for doing too little. The company's best quarter to date is the measly $12.6 million in sales it reported in the first quarter. That's an annual run-rate of $50 million in sales for a company carrying a $3.05 billion market cap. Even if you take the cash out of the equation, it's not fundamentally prudent to pay $1.8 billion for a consistently unprofitable business that's taken this long to hit an annual run-rate of $50 million in sales in one of the fastest-growing industries on the planet.
Until Cronos Group demonstrates significant top-line growth, there's absolutely no reason to own this pot stock.
Image source: Getty Images.
Sundial Growers
Last but not least, we have retail traders' favorite pot-based meme stock, Sundial Growers (NASDAQ: SNDL). As you'll see, penny stocks almost always trade at penny valuations for good reason.
Sundial was caught up in the short-squeeze craze that hit the market in late January and early February. As a penny stock with high short interest in a fast-growing industry, it was one of the most sought-after companies by retail traders, at least for a short time. But as we've seen, fundamentals always matter.
In Sundial's case, both its operating performance and the actions of management have been a disappointment. Beginning in October 2020, management sought to reduce or eliminate Sundial's debt load by raising capital. The company executed debt-to-equity swaps, conducted at-the-market share offerings, and sold shares via direct offerings.
The problem is that management hasn't stopped selling stock to raise capital. Between Sept. 30, 2020 and May 7, 2021, Sundial Growers' outstanding share count has ballooned from 509 million to 1.86 billion. That's an incredible amount of dilution and a slap in the face to long-term shareholders.
Although Sundial has built up a CA$1.08 billion cash war chest, its management team doesn't have any concrete plans for what it wants to do with this cash. If there's a bright side here, Sundial is in absolutely no danger of going bankrupt. Then again, the arrow isn't pointing up, either.
With so many shares outstanding and an $800 million at-the-market offering underway, Sundial has virtually no chance of ever producing meaningful earnings per share and may require a reverse split just to remain listed on the Nasdaq exchange.
As the icing on the cake, the company's traditional cannabis operations produced only CA$9.9 million in net sales in the first quarter, which is down 29% from the prior-year period. No matter how you slice the data, Sundial is likely the worst pot stock money can buy.
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 – 15 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
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. 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. | I don't believe I've once failed to include Canadian pot stock Aurora Cannabis (NASDAQ: ACB). Even though Aurora has been a consistently popular stock with millennials on online investing app Robinhood, it's just not a well-managed company, and its operating results show it. The only reason Aurora's cash balance is even up from the previous year is because the company continues to dilute its shareholders with share sales and at-the-market offerings. | I don't believe I've once failed to include Canadian pot stock Aurora Cannabis (NASDAQ: ACB). The only reason Aurora's cash balance is even up from the previous year is because the company continues to dilute its shareholders with share sales and at-the-market offerings. Just ask the shareholders of cash-rich Canadian cannabis stock Cronos Group (NASDAQ: CRON). | I don't believe I've once failed to include Canadian pot stock Aurora Cannabis (NASDAQ: ACB). Even with the company enacting significant cost-cutting initiatives, Aurora burned through CA$86.3 million in cash in Q3 2021, which was up slightly from the CA$84.6 million it went through in the sequential quarter. The only reason Aurora's cash balance is even up from the previous year is because the company continues to dilute its shareholders with share sales and at-the-market offerings. | I don't believe I've once failed to include Canadian pot stock Aurora Cannabis (NASDAQ: ACB). Aurora Cannabis For more than a year, I've offered up my take on which marijuana stocks should be avoided on a monthly basis. The only reason Aurora's cash balance is even up from the previous year is because the company continues to dilute its shareholders with share sales and at-the-market offerings. |
36765.0 | 2021-06-03 00:00:00 UTC | ACB July 23rd Options Begin Trading | ACB | https://www.nasdaq.com/articles/acb-july-23rd-options-begin-trading-2021-06-03 | nan | nan | Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $9.50 strike price has a current bid of $1.02. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $9.50, but will also collect the premium, putting the cost basis of the shares at $8.48 (before broker commissions). To an investor already interested in purchasing shares of ACB, that could represent an attractive alternative to paying $10.00/share today.
Because the $9.50 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 10.74% return on the cash commitment, or 78.38% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aurora Cannabis Inc, and highlighting in green where the $9.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $12.50 strike price has a current bid of 54 cents. If an investor was to purchase shares of ACB stock at the current price level of $10.00/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $12.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 30.40% if the stock gets called away at the July 23rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $12.50 strike highlighted in red:
Considering the fact that the $12.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.40% boost of extra return to the investor, or 39.42% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $10.00) to be 119%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options become available today, for the July 23rd expiration. | Below is a chart showing ACB's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 23rd contracts and identified one put and one call contract of particular interest. | Below is a chart showing ACB's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 23rd contracts and identified one put and one call contract of particular interest. | Below is a chart showing ACB's trailing twelve month trading history, with the $12.50 strike highlighted in red: Considering the fact that the $12.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options become available today, for the July 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new July 23rd contracts and identified one put and one call contract of particular interest. |
36766.0 | 2021-06-03 00:00:00 UTC | Will HEXO Overtake Aurora in Revenue This Year? | ACB | https://www.nasdaq.com/articles/will-hexo-overtake-aurora-in-revenue-this-year-2021-06-03 | nan | nan | HEXO (NYSE: HEXO) has its sights set on being one of the top three cannabis companies in Canada. And to do that, it will likely need to overtake Aurora Cannabis (NASDAQ: ACB), which has far less revenue than both Tilray and Canopy Growth. HEXO has been wheeling and dealing of late, making moves that will strengthen its top line and put it in a good position to potentially surpass Aurora.
Will that happen as early as this year, and do these transactions make HEXO a better buy, or will they lead to more challenges ahead? Below, I'll look at some of the company's recent moves and what they could mean for its top line.
Image source: Getty Images.
The deals that have been keeping HEXO busy
These are the notable transactions HEXO has entered into thus far in 2021:
On Feb. 16, it announced it would be acquiring Zenabis Global for 235 million Canadian dollars in an all-stock deal. HEXO likes the deal because it immediately puts it in the European market and expands its capacity. Plus, HEXO estimates that the two businesses could achieve annual synergies of CA$20 million in the first year. Zenabis generated CA$59 million in revenue last year.
On May 17, in another all-stock transaction, HEXO said it would be purchasing 48North Cannabis for about CA$50 million. This transaction could generate synergies of CA$12 million within one year after the deal closes and will allow HEXO to diversify its portfolio as 48North sells topicals, and bath and intimacy products. The company reported revenue of CA$17 million in 2020. In its most recent quarter, for the period ending March 31, sales of CA$5.2 million grew 94% year over year. 48North launched several new products during the period that it said generated strong demand.
HEXO's latest move came on May 28 when it announced a deal to acquire Redecan, a privately held cannabis producer, for CA$925 million in cash and stock. Redecan is a leader in the Canadian market for pre-rolled products, and its portfolio also includes top-selling oils and capsules. Although the company's financials are not available, HEXO believes that with the Redecan deal it is "on the verge of surpassing" its goal of being a top-three cannabis company in terms of market share in the recreational market. HEXO also notes that Redecan "has proven itself capable of consistently delivering significant [earnings before interest, taxes, depreciation, and amortization] EBITDA."
In total, that's over CA$1.2 billion in transactions over a period of just over three months. HEXO is serious in its pursuit of becoming a more dominant force in the Canadian cannabis market. But will these deals put its top line higher than Aurora's?
What HEXO's revenue might look like
In its most recent results, released on March 18, HEXO reported net revenue of CA$32.9 million for the period ending Jan. 31. If it were to maintain that level of revenue, its annual sales would come in at around CA$132 million. Add in at least CA$75 million in sales from Zenabis and 48North, and that number could climb as high as CA$207 million. While it's unclear how much Redecan may contribute, given that HEXO paid the highest price tag for the business (nearly four times what it did for Zenabis), I would expect that its revenue could potentially be two or three times as large (its profitability likely garners a premium as well). If that's the case, the company's revenue could be in the neighborhood of CA$118 million to CA$177 million. With that, HEXO should be on track to generate at least CA$325 million and potentially as much as CA$384 million. And this is without factoring in any synergetic growth from these businesses.
Over the trailing 12 months, Aurora has generated just CA$267 million. Even at the low end of the estimate for Redecan, HEXO looks to be in good shape to blow past Aurora's top line. Things can change quickly if Aurora gets into the mergers and acquisitions (M&A) game, but given its focus on profitability of late rather than all-out sales growth, I don't see that as a likely scenario in the near term.
HEXO likely won't overtake Aurora in revenue this year if only because the Redecan deal won't close until the third quarter of 2021. However, once that happens and the company's numbers get included in HEXO's results, that should easily put it over the top and ahead of Aurora.
Do these deals make HEXO a buy?
All of these transactions will make HEXO bigger, but whether they will make the stock a better investment is still a question mark. I'm always hesitant about recommending companies that are aggressive in getting too big too fast. Aurora was aggressive in its early growth days, and now the company is paying for that, having to lay off staff and slash production in an effort to get leaner and closer to profitability. Although HEXO posted positive adjusted EBITDA of CA$202 thousand in its latest earnings report, these recent transactions could make it more difficult for that pattern to continue with all the added expenses that will come along with them.
My concern is that HEXO's bottom line will take a hit in subsequent quarters. If the company gets too deep in the red, the stock could be poised for a sell-off. Year to date, shares of HEXO have doubled and outperformed the Horizons Marijuana Life Sciences ETF, which is up 41% over the same period. But that heightened valuation could make it more vulnerable to a correction. While HEXO may end up being bigger than Aurora next year, it could also end up following in the same dangerous footsteps, which is why I would stay far away from this pot stock.
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 – 15 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 recommends HEXO Corp. 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. | And to do that, it will likely need to overtake Aurora Cannabis (NASDAQ: ACB), which has far less revenue than both Tilray and Canopy Growth. This transaction could generate synergies of CA$12 million within one year after the deal closes and will allow HEXO to diversify its portfolio as 48North sells topicals, and bath and intimacy products. Things can change quickly if Aurora gets into the mergers and acquisitions (M&A) game, but given its focus on profitability of late rather than all-out sales growth, I don't see that as a likely scenario in the near term. | And to do that, it will likely need to overtake Aurora Cannabis (NASDAQ: ACB), which has far less revenue than both Tilray and Canopy Growth. In its most recent quarter, for the period ending March 31, sales of CA$5.2 million grew 94% year over year. What HEXO's revenue might look like In its most recent results, released on March 18, HEXO reported net revenue of CA$32.9 million for the period ending Jan. 31. | And to do that, it will likely need to overtake Aurora Cannabis (NASDAQ: ACB), which has far less revenue than both Tilray and Canopy Growth. The deals that have been keeping HEXO busy These are the notable transactions HEXO has entered into thus far in 2021: On Feb. 16, it announced it would be acquiring Zenabis Global for 235 million Canadian dollars in an all-stock deal. What HEXO's revenue might look like In its most recent results, released on March 18, HEXO reported net revenue of CA$32.9 million for the period ending Jan. 31. | And to do that, it will likely need to overtake Aurora Cannabis (NASDAQ: ACB), which has far less revenue than both Tilray and Canopy Growth. Zenabis generated CA$59 million in revenue last year. In its most recent quarter, for the period ending March 31, sales of CA$5.2 million grew 94% year over year. |
36767.0 | 2021-06-03 00:00:00 UTC | Why the Next Quarter Could Be Tough for Canadian Cannabis Companies | ACB | https://www.nasdaq.com/articles/why-the-next-quarter-could-be-tough-for-canadian-cannabis-companies-2021-06-03 | nan | nan | For many Canadian pot stocks, growing sales just isn't a given anymore. Now that the industry is more developed and there are more competitors, companies are getting more aggressive in trying to pad their top lines, like introducing value brands to wrestle away sales from the illegal market and rivals. But that only exacerbates another issue in the industry: A lack of profitability. Many pot producers in Canada are deep in the red.
It's a challenging time to be investing and holding shares of Canadian cannabis companies. Unlike their U.S. counterparts, their market isn't as large and it's already completely legal, so brand new areas of the country aren't suddenly opening up for business. And with lockdowns still affecting the market, there could be some more near-term pain for cannabis investors who decide to hang on to Canadian pot stocks.
Image source: Getty Images.
Why the next quarter could be a tough one
Stay-at-home orders amid the pandemic aren't a new challenge for the industry to deal with. But what might make things worse for pot producers is that during May, the Ontario Cannabis Store (OCS) said that it would accept fewer deliveries in its effort to keep COVID-19 case numbers down. Although it stated that it would still receive orders, the volume it processes will be lower.
All the legal pot shops in Ontario go through the OCS, so if its volumes are down, there will be fewer products for stores to receive. And compounding the problem is that stores also aren't ordering as much with consumers not able to shop in-store. The good news is that Ontario stay-at-home orders are over as of June 2, and the province is beginning its reopening plan. Unfortunately, the damage may be done for the upcoming quarter, which will include the month of May.
For Canadian pot producers, Ontario is simply too large a market to ignore. In March 2021 (the most recent month for which data is available), retail sales totaled 298 million Canadian dollars for all of Canada. Of that tally, Ontario accounted for more than one-third with CA$103 million. And that's a larger percentage than a year ago now that it has opened more stores:
MARCH 2021 MARCH 2020
Province Sales % of Canada Sales % of Canada
Ontario $103 million 35% $47 million 26%
Alberta $59 million 20% $40 million 22%
Quebec $48 million 16% $38 million 21%
British Columbia $41 million 14% $24 million 13%
Data source: Statistics Canada. All figures in Canadian dollars.
The top four provinces in the country accounted for 85% of revenue in March 2021 versus 82% a year ago. But the big difference: Ontario is capturing more of the pie and is a more crucial piece of the industry's growth in Canada. So even a low month for the OCS could have crippling effects on the industry and any pot producer that sells its products in the province.
Should you sell Canadian pot stocks?
Canopy Growth (NASDAQ: CGC) released its latest earnings report on June 1. Its sales of CA$148 million for the period ending March 31 were up 38% year over year but down 2.7% from the CA$153 million that it reported in the previous period. And this was despite cannabis sales in Canada totaling CA$840 million during the first three months of the year, which was 1.8% higher than the CA$825 million that was reported in the final three months of 2020.
If the company can't find a way to grow its sales during an improved quarter, there won't be much hope that during the next quarter, amid a problematic May, things will be any better. While Canopy Growth is in the midst of a transition and trying to get closer to profitability (it reported an adjusted EBITDA loss of CA$94 million last quarter), generating consistent revenue growth has long been a problem for the company that goes beyond just one quarter. And other companies face similar issues, as rival Aurora Cannabis remains unprofitable and its revenue during the same period totaled CA$55 million, which was down 18% from the previous quarter.
For cannabis investors, the safer play is definitely investing in U.S.-based pot stocks. Although they operate in quasi-legal environments where their operations are legal within individual states but not federally, they're not in any danger of shutting down. Plus, growth opportunities are plentiful, especially with recreational markets in New Jersey and New York opening up soon.
Not only are they better plays for the short term, but there's also a lot more potential over the long haul. By 2025, the U.S. market could be worth as much as $34.5 billion, according to estimates from BDSA. The Canadian market will be nearly one-sixth the size at just $6.1 billion. If you're a growth investor, the U.S. pot market presents a much more attractive investment opportunity.
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 – 15 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 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. | Now that the industry is more developed and there are more competitors, companies are getting more aggressive in trying to pad their top lines, like introducing value brands to wrestle away sales from the illegal market and rivals. But what might make things worse for pot producers is that during May, the Ontario Cannabis Store (OCS) said that it would accept fewer deliveries in its effort to keep COVID-19 case numbers down. And other companies face similar issues, as rival Aurora Cannabis remains unprofitable and its revenue during the same period totaled CA$55 million, which was down 18% from the previous quarter. | For Canadian pot producers, Ontario is simply too large a market to ignore. Province Sales % of Canada Sales % of Canada Ontario $103 million 35% $47 million 26% Alberta $59 million 20% $40 million 22% Quebec $48 million 16% $38 million 21% British Columbia $41 million 14% $24 million 13% Data source: Statistics Canada. And this was despite cannabis sales in Canada totaling CA$840 million during the first three months of the year, which was 1.8% higher than the CA$825 million that was reported in the final three months of 2020. | Province Sales % of Canada Sales % of Canada Ontario $103 million 35% $47 million 26% Alberta $59 million 20% $40 million 22% Quebec $48 million 16% $38 million 21% British Columbia $41 million 14% $24 million 13% Data source: Statistics Canada. And this was despite cannabis sales in Canada totaling CA$840 million during the first three months of the year, which was 1.8% higher than the CA$825 million that was reported in the final three months of 2020. While Canopy Growth is in the midst of a transition and trying to get closer to profitability (it reported an adjusted EBITDA loss of CA$94 million last quarter), generating consistent revenue growth has long been a problem for the company that goes beyond just one quarter. | All the legal pot shops in Ontario go through the OCS, so if its volumes are down, there will be fewer products for stores to receive. For Canadian pot producers, Ontario is simply too large a market to ignore. Should you sell Canadian pot stocks? |
36768.0 | 2021-06-02 00:00:00 UTC | Why Canopy Growth, Aurora Cannabis, and Hexo Stocks Are on Fire Today | ACB | https://www.nasdaq.com/articles/why-canopy-growth-aurora-cannabis-and-hexo-stocks-are-on-fire-today-2021-06-02 | nan | nan | What happened
Marijuana stocks were on fire Wednesday, with shares of Hexo (NYSE: HEXO) closing the day up 4.4%, Canopy Growth (NASDAQ: CGC) rising 5.4%, and Aurora Cannabis (NASDAQ: ACB) beating them both with a 7.8% gain. And just one word explains why all these stocks are doing so well:
Amazon (NASDAQ: AMZN).
Why would Amazon want to make marijuana legal? Image source: Getty Images.
So what
Yesterday, in a surprise announcement, Amazon declared its support for proposed marijuana legalization in the United States.
Buried deep within a post on the company's "AboutAmazon" blog, that primarily discussed workplace efficiency initiatives, Amazon Worldwide Consumer CEO Dave Clark said the company's "public policy team will be actively supporting The Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act)," with the goal of legalizing marijuana at the federal level, and expunging records of criminal marijuana offenses as well.
Furthermore, Reuters reports that Amazon has advised it will "no longer screen its job applicants for marijuana use for any positions not regulated by the Department of Transportation."
Now what
These two developments -- leniency on Amazon's part in regard to employee marijuana use, and a push to officially legalize marijuana at the national level -- would probably have sufficed in and of themselves to give marijuana stocks a boost today. But on top of all the above, Clark further expressed the hope that "other employers will join us" in this effort, "and that policymakers will act swiftly to pass this law."
It seems Amazon is trying to start a movement in the corporate world. But why?
Well, here's one theory: In an aside that investors in marijuana stocks and in Amazon stock alike might want to take note of, Reuters observed that Amazon "does not allow marijuana sales on its platform."
Yet.
10 stocks we like better than Amazon
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends HEXO Corp. and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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. | What happened Marijuana stocks were on fire Wednesday, with shares of Hexo (NYSE: HEXO) closing the day up 4.4%, Canopy Growth (NASDAQ: CGC) rising 5.4%, and Aurora Cannabis (NASDAQ: ACB) beating them both with a 7.8% gain. So what Yesterday, in a surprise announcement, Amazon declared its support for proposed marijuana legalization in the United States. Furthermore, Reuters reports that Amazon has advised it will "no longer screen its job applicants for marijuana use for any positions not regulated by the Department of Transportation." | What happened Marijuana stocks were on fire Wednesday, with shares of Hexo (NYSE: HEXO) closing the day up 4.4%, Canopy Growth (NASDAQ: CGC) rising 5.4%, and Aurora Cannabis (NASDAQ: ACB) beating them both with a 7.8% gain. Well, here's one theory: In an aside that investors in marijuana stocks and in Amazon stock alike might want to take note of, Reuters observed that Amazon "does not allow marijuana sales on its platform." After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | What happened Marijuana stocks were on fire Wednesday, with shares of Hexo (NYSE: HEXO) closing the day up 4.4%, Canopy Growth (NASDAQ: CGC) rising 5.4%, and Aurora Cannabis (NASDAQ: ACB) beating them both with a 7.8% gain. Buried deep within a post on the company's "AboutAmazon" blog, that primarily discussed workplace efficiency initiatives, Amazon Worldwide Consumer CEO Dave Clark said the company's "public policy team will be actively supporting The Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act)," with the goal of legalizing marijuana at the federal level, and expunging records of criminal marijuana offenses as well. Now what These two developments -- leniency on Amazon's part in regard to employee marijuana use, and a push to officially legalize marijuana at the national level -- would probably have sufficed in and of themselves to give marijuana stocks a boost today. | What happened Marijuana stocks were on fire Wednesday, with shares of Hexo (NYSE: HEXO) closing the day up 4.4%, Canopy Growth (NASDAQ: CGC) rising 5.4%, and Aurora Cannabis (NASDAQ: ACB) beating them both with a 7.8% gain. Why would Amazon want to make marijuana legal? * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! |
36769.0 | 2021-06-02 00:00:00 UTC | Smoked Tilray Shares Remain Worth Buying | ACB | https://www.nasdaq.com/articles/smoked-tilray-shares-remain-worth-buying-2021-06-02 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tilray (NASDAQ:TLRY) has always been a big deal among cannabis stocks and recently TLRY stock has grown more impressive, except with Wall Street. And today that reeks of opportunity for buyers. Let’s check in with what’s happening off and on the price chart, then offer a risk-adjusted position to grow your trading account.
TLRY) logo on a web browser." width="300" height="169">
Source: Jarretera / Shutterstock.com
Canopy Growth (NASDAQ:CGC). Aurora Cannabis (NASDAQ:ACB). New Age Beverages (NASDAQ:NBEV). Sundial Growers (NASDAQ:SNDL) and many others. From the largest to the smallest, and for pot producers of all flavors, the past couple months have mostly proven a house of pain for investors.
On that front, Tilray shareholders can commiserate as a market leader, in the worst sort of way, with its peers. Three months after peaking at $67 in early February, shares were down as much as 80%. And today and nearly a month off its corrective low, shares are still off 75% from that relative high.
Issues Facing TLRY Stock
To be fair, Wall Street’s broader rotation out of higher multiple growth stories, which began in February, has barely loosened its grip. And I suppose TLRY, as well as other cannabis stocks, can empathize with others such as hard-hit SPACs. Churchill Capital (NYSE:CCIV). QuantumScape (NYSE:QS). Opendoor Technologies (NASDAQ:OPEN). There’s plenty of pain to go around.
But the smoking in TLRY shares still ranks among the best, in an ignominious sort of way. And behind that burden have been two other issues weighing on investors.
7 Travel Stocks to Buy Just in Time for Beach Season
First, there’s the overhang Tilray felt alongside other pot stocks. Optimism over quick-to-happen federal legalization under a pot-friendly Biden administration faded with the president’s well-watched first 100 days failing to find agreeable political will for cannabis. And it’s an issue.
Bottom line, Tilray, and other Canadian pot companies, can’t retain their publicly traded status and market marijuana in the U.S. until there’s a change at the federal level.
Secondly, size does matter. But it’s also two-way street and a challenging one for TLRY these days.
In early May, Tilray closed its deal with Aphria making the combined company the largest global grow outfit on a pro forma sales basis. But a valuation of around $7 billion compounded by disappointing quarterly results apparently left many investors gaging.
TLRY Weekly Price Chart
Source: Charts by TradingView
Change in a beneficial sort of way is almost certain to happen as it relates to cannabis’ gridlock and sentiment surrounding TLRY’s place in the industry. And late last month, word of the House Judiciary Committee readying to reintroduce a bill for the federal legalization of marijuana did send TLRY stock higher.
What will tomorrow usher in? Cannabis cafes are still unlikely, of course. But shares of Tilray are leaving a fresh scent of growing profits on the weekly price chart.
And it’s one that looks worth sampling today.
Bottom Line on TLRY Stock
Technically, Tilray shares have confirmed a third bottoming attempt following two prior tries in March and April during the stock’s bear-market correction. Modest follow-through to start the month has TLRY about 4% to 5% above a double candlestick bottoming pattern.
For some, today’s Tilray share price may put it out of reach. But I’m upbeat it’s a buy. With stochastics bullishly aligned and only just starting to trend higher from oversold territory, I see a decent risk-to-reward proposition under the notion an uptrend will emerge during the second half of 2021.
Right now and to better prepare for a bullish price cycle in TRLY stock, protect against downside risk or even put traders in an advantaged position to accumulate on weakness through active management, a September $15/$35 collar smells like the color of money in our estimation.
On the date of publication, Chris Tyler 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.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
The post Smoked Tilray Shares Remain Worth Buying 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 (NASDAQ:ACB). Issues Facing TLRY Stock To be fair, Wall Street’s broader rotation out of higher multiple growth stories, which began in February, has barely loosened its grip. And late last month, word of the House Judiciary Committee readying to reintroduce a bill for the federal legalization of marijuana did send TLRY stock higher. | Aurora Cannabis (NASDAQ:ACB). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray (NASDAQ:TLRY) has always been a big deal among cannabis stocks and recently TLRY stock has grown more impressive, except with Wall Street. TLRY Weekly Price Chart | Aurora Cannabis (NASDAQ:ACB). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray (NASDAQ:TLRY) has always been a big deal among cannabis stocks and recently TLRY stock has grown more impressive, except with Wall Street. Issues Facing TLRY Stock To be fair, Wall Street’s broader rotation out of higher multiple growth stories, which began in February, has barely loosened its grip. | Aurora Cannabis (NASDAQ:ACB). Bottom Line on TLRY Stock Technically, Tilray shares have confirmed a third bottoming attempt following two prior tries in March and April during the stock’s bear-market correction. For some, today’s Tilray share price may put it out of reach. |
36770.0 | 2021-06-02 00:00:00 UTC | Forget Aurora: This Little-Known Pot Stock Could Double | ACB | https://www.nasdaq.com/articles/forget-aurora%3A-this-little-known-pot-stock-could-double-2021-06-02 | nan | nan | Aurora Cannabis (NASDAQ: ACB) is a chronic underachiever in the industry. Not only does the business struggle to generate any meaningful growth, but it also routinely disappoints investors either with poor results or relentless share offerings, diluting its existing shareholders. Rather than rolling the dice on what's one of the riskiest stocks in the sector, there's a much better option that investors should consider: Leaf Mobile (OTC: LEML.F).
Leaf Mobile has a market cap of around $250 million and with trading volumes often well below 50,000, it isn't on many investors' radars. However, it has the potential to be a much better buy than Aurora, and it could even double in value.
Image source: Getty Images.
What does Leaf Mobile do?
One of the things that makes Leaf Mobile a unique investment in the sector is that it's not a producer, nor does it provide growers with the equipment to produce cannabis. Instead, the company is in the gaming business, providing a variety of free-to-play mobile games. Among its more popular games are cannabis-themed titles Cheech & Chong Bud Farm and Bud Farm: Idle Tycoon. Both are rated highly on the Apple store, with 4.8 stars and tens of thousands of reviews.
Leaf Mobile has other games in its portfolio, and on Feb. 5 it completed a cash-and-stock deal for East Side Games (ESG) in a reverse takeover worth 159 million Canadian dollars. A few of ESG's popular titles are based on television shows, including the Trailer Park Boys and It's Always Sunny in Philadelphia.
On March 9, Leaf Mobile also announced that it had signed a nonbinding letter of intent to acquire Truly Social Games for no more than CA$37 million. The deal could take 36 months to complete and will depend on how Truly Social performs. One of the exciting aspects of this game developer is that it is involved in augmented reality. Its Stickman AR game allows users to create characters overtop of whatever environment their phone is in, whether it's a living room, office, or outdoors.
And Leaf Mobile is not done. CEO Darcy Taylor says the company continues to look to expand geographically and into more game genres to further diversify its portfolio. The company is also looking to tap into the non-fungible token (NFT) craze. In March, it announced that it would experiment with NFTs and award them to top-performing players in certain games.
A look at the company's latest results
On May 17, Leaf Mobile released its first-quarter results of 2021 for the period ending March 31. On a pro forma basis, if its acquisition of ESG took place on Jan. 1, Leaf Mobile's revenue would have been CA$25.3 million and up 95% year over year. That's also 10% higher than the fourth quarter. Together, the companies would have generated an adjusted EBITDA profit of CA$3 million in Q1, compared with a loss of CA$1.4 million a year ago.
Adjusted EBITDA has been a target of marijuana companies and reaching breakeven on that metric remains a goal for Aurora Cannabis (it incurred a loss of CA$24 million during the first three months of 2021).
Analysts think Leaf Mobile's stock could double
Currently, Leaf Mobile's stock trades around CA$0.40 on the Toronto Stock Exchange and analysts from Eight Capital and Haywood Securities have set price targets of CA$1 and CA$0.75, respectively. But as the company continues to expand and diversify its portfolio, it wouldn't be surprising to see more bullishness for this underrated company. Its relatively small market cap combined with an aggressive growth strategy could quickly attract growth investors.
Is Leaf Mobile a buy?
Leaf Mobile is at a CA$100 million annual run rate in revenue. If it can keep that pace going, then at worst, the stock will be trading at roughly three times its sales. But given the rapid expansion the company is undertaking, it's likely that its revenue for the year will come in even higher than that. And that's a fairly low multiple of sales; the average stock in the Horizons Marijuana Life Sciences ETF trades at more than five times its revenue.
Leaf Mobile is an intriguing stock to own and it could be one of the better buys for cannabis investors. It's certainly a stock I'd buy before even considering Aurora Cannabis.
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 – 15 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 owns shares of and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. 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) is a chronic underachiever in the industry. Not only does the business struggle to generate any meaningful growth, but it also routinely disappoints investors either with poor results or relentless share offerings, diluting its existing shareholders. Adjusted EBITDA has been a target of marijuana companies and reaching breakeven on that metric remains a goal for Aurora Cannabis (it incurred a loss of CA$24 million during the first three months of 2021). | Aurora Cannabis (NASDAQ: ACB) is a chronic underachiever in the industry. Together, the companies would have generated an adjusted EBITDA profit of CA$3 million in Q1, compared with a loss of CA$1.4 million a year ago. Analysts think Leaf Mobile's stock could double Currently, Leaf Mobile's stock trades around CA$0.40 on the Toronto Stock Exchange and analysts from Eight Capital and Haywood Securities have set price targets of CA$1 and CA$0.75, respectively. | Aurora Cannabis (NASDAQ: ACB) is a chronic underachiever in the industry. Leaf Mobile has other games in its portfolio, and on Feb. 5 it completed a cash-and-stock deal for East Side Games (ESG) in a reverse takeover worth 159 million Canadian dollars. On March 9, Leaf Mobile also announced that it had signed a nonbinding letter of intent to acquire Truly Social Games for no more than CA$37 million. | Aurora Cannabis (NASDAQ: ACB) is a chronic underachiever in the industry. What does Leaf Mobile do? On March 9, Leaf Mobile also announced that it had signed a nonbinding letter of intent to acquire Truly Social Games for no more than CA$37 million. |
36771.0 | 2021-06-01 00:00:00 UTC | The Top 50 Robinhood Stocks in June | ACB | https://www.nasdaq.com/articles/the-top-50-robinhood-stocks-in-june-2021-06-01 | nan | nan | Volatility is always present in the stock market, but it's been especially prominent since February 2020. Though patience has, once again, paid off for investors, their gains have come after the benchmark S&P 500 lost 34% of its value in less than five weeks during the first quarter of 2020.
Some investors absolutely shy away when heightened volatility rears its head. But that's not what we've witnessed from retail investors.
Image source: Getty Images.
Even though retail investors have been putting their money to work on Wall Street for more than a century, they used the wild volatility on Wall Street over the past 16 months as their cue to really ramp up their buying. How do we know this? Just take a look at online investing app Robinhood, which gained approximately 3 million new users last year.
Millennial investors have found a home at Robinhood for a bevy of reasons. The app doesn't charge commissions for buying or selling on major exchanges, and it allows fractional shares for a number of securities. The company even awards new members with free shares of stock.
While it's fantastic to see young investors putting their money to work in the greatest wealth creator on the planet, it's also disturbing to see what they've been buying. Instead of taking the tried-and-true long-term investing approach, many are chasing momentum plays, penny stocks, and companies with poor operating performance.
Don't believe me? Here are the 50 most-held stocks on Robinhood's leaderboard as we enter June:
COMPANY COMPANY
1. Tesla (NASDAQ: TSLA) 26. OrganiGram Holdings
2. Apple 27. Bank of America
3. AMC Entertainment Holdings (NYSE: AMC) 28. Coinbase Global
4. Sundial Growers (NASDAQ: SNDL) 29. Tilray
5. Ford Motor 30. Facebook
6. General Electric 31. Canopy Growth (NASDAQ: CGC)
7. NIO 32. Advanced Micro Devices
8. Walt Disney 33. Twitter
9. Microsoft 34. Starbucks (NASDAQ: SBUX)
10. Amazon 35. Moderna
11. American Airlines Group 36. AT&T
12. Plug Power 37. FuelCell Energy
13. Nokia 38. Virgin Galactic Holdings
14. Pfizer 39. Ideanomics
15. Aurora Cannabis (NASDAQ: ACB) 40. Norwegian Cruise Line Holdings
16. Carnival 41. Vanguard S&P 500 ETF
17. GameStop (NYSE: GME) 42. Coca-Cola
18. Zomedica (NYSEMKT: ZOM) 43. General Motors
19. GoPro 44. NVIDIA
20. Palantir Technologies 45. SPDR S&P 500 ETF
21. Churchill Capital 46. United Airlines Holdings
22. Delta Air Lines 47. Uber Technologies
23. Snap 48. Zynga
24. Netflix 49. Boeing
25. Alibaba Group Holding 50. Workhorse Group
Data source: Robinhood, as of May 28, 2021.
Meme-mania doesn't stop
With retail investors acting as the catalyst behind the meme stock craze (meme stocks are companies lauded for their social media popularity, not their fundamentals), it should come as no surprise that companies like AMC Entertainment, GameStop, and Sundial Growers are among the most-held on Robinhood.
AMC, GameStop, and Sundial were some of the most heavily short-sold companies earlier this year, which made them logical targets by investors on Reddit who were looking for short-squeeze opportunities. Though we witnessed these squeezes take place in January and February, the recent trading in these names looks to be more hype or mania than short-covering.
History is pretty clear that hype-driven stocks will eventually have the rug pulled out from under them. AMC, for example, is going to struggle just to service its more than $5.4 billion in corporate debt and doesn't appear to have a chance to pay back what comes due in 2026. It also has $473 million in deferred rent obligations to contend with.
As for GameStop, it boasts a healthy net cash position following a recent share offering. But it was very late in transitioning to digital gaming, and as a result will see its sales go nowhere for years to come. GameStop's core strategy for the time being is to keep closing physical stores to cut down on operating expenses.
In sum, meme stocks are bad news.
Image source: Getty Images.
Penny for your thoughts
Robinhood investors have also demonstrated that they love penny stocks. Sundial Growers and Zomedica are two of the 18 most-held stocks on the platform, yet both can be purchased for under $1 a share.
Psychologically, young and/or novice investors believe that owning more shares of stock will give them a better chance to make a lot of money. There's also the belief that it's easier to double a stock from $1 a share to $2 than, say, $100 to $200. But the reality is that penny stocks almost always trade at a low share price for very good reasons.
In the case of pot stock Sundial Growers, it's because the company's management team can't stop drowning its investors in share offerings. Earlier this year, the company's board OK'd an additional $800 million at-the-market share offering. Since the end of September, more than 1.35 billion shares have been issued. With 1.86 billion shares now outstanding, Sundial has almost no chance of ever generating meaningful earnings per share, or perhaps even remaining listed on the Nasdaq exchange.
As for veterinary health company Zomedica, it only began commercializing its first product in mid-March. Shares are currently valued at close to 40 times sales looking three years into the future. Though it does have a healthy cash position, Zomedica has buried its investors with share offerings and is closing in on 1 billion shares outstanding.
Penny stocks are rarely cheap.
Image source: Getty Images.
"Merry-juana"
Another trend you'll note about millennial investors is that they really love the prospects for marijuana stocks. In this respect, I agree with them.
Unfortunately, Robinhood is shortchanging its users in the cannabis department. Since the trading platform won't allow its users to buy and sell stocks listed on the over-the-counter exchange, and U.S. pot stocks can't list on major exchanges due to cannabis being illicit at the federal level, Robinhood users are stuck buying Canadian weed stocks. To put things as nicely as possible, the Canadian pot stocks have been a disaster.
Aurora Cannabis, which at one time was the most-held stock on Robinhood, has been burying its shareholders in dilution for years. It used its stock as collateral for around a dozen deals and grossly overpaid for all of its acquisitions. Even with legal Canadian weed sales climbing, Aurora's top line has been stuck in neutral or gone in reverse.
Canopy Growth is another popular marijuana stock that's been an utter disappointment. The company's cash pile has dwindled significantly over the past couple of years, and Canopy is still nowhere close to generating a profit, even after closing two large greenhouses in British Columbia.
Image source: Starbucks.
Brand-name companies are popular with millennials
Lastly, you'll note that among the meme stocks, pot stocks, and penny stocks, millennial investors have also piled into brand-name companies that they're familiar with or regularly engage with.
For instance, electric-vehicle (EV) manufacturer Tesla has supplanted Apple as the most-held stock in the Robinhood universe. Generally speaking, the desire to take action against climate change increases the younger someone is. Motivated young investors who want to see positive climate action taken, and who have a favorable view of CEO Elon Musk, have flocked to Tesla. In kind, Tesla's production numbers have risen significantly, and could near 800,000 EVs in 2021.
Coffee giant Starbucks has also been rising up the leaderboard in recent months. It has used its mobile app and rewards as a means to keep the younger generation loyal to its brand. It has also introduced an array of healthier lunches and snack options to improve foot traffic. It definitely doesn't hurt that Starbucks is one of the most-recognized brands in the world.
Brand-name companies that can engage with young investors are always a good bet to work their way onto Robinhood's leaderboard.
10 stocks we like better than Tesla
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors.
Sean Williams owns shares of AT&T, Amazon, Bank of America, and Facebook. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. The Motley Fool recommends Carnival, Delta Air Lines, Moderna Inc., Nasdaq, and Uber Technologies and recommends the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short July 2021 $120 calls on Starbucks, and short March 2023 $130 calls on Apple. 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) 40. Instead of taking the tried-and-true long-term investing approach, many are chasing momentum plays, penny stocks, and companies with poor operating performance. AMC, GameStop, and Sundial were some of the most heavily short-sold companies earlier this year, which made them logical targets by investors on Reddit who were looking for short-squeeze opportunities. | Aurora Cannabis (NASDAQ: ACB) 40. Since the trading platform won't allow its users to buy and sell stocks listed on the over-the-counter exchange, and U.S. pot stocks can't list on major exchanges due to cannabis being illicit at the federal level, Robinhood users are stuck buying Canadian weed stocks. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. | Aurora Cannabis (NASDAQ: ACB) 40. Since the trading platform won't allow its users to buy and sell stocks listed on the over-the-counter exchange, and U.S. pot stocks can't list on major exchanges due to cannabis being illicit at the federal level, Robinhood users are stuck buying Canadian weed stocks. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. | Aurora Cannabis (NASDAQ: ACB) 40. Brand-name companies are popular with millennials Lastly, you'll note that among the meme stocks, pot stocks, and penny stocks, millennial investors have also piled into brand-name companies that they're familiar with or regularly engage with. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, NIO Inc., NVIDIA, Netflix, OrganiGram Holdings, Palantir Technologies Inc., Starbucks, Tesla, Twitter, Vanguard S&P 500 ETF, Virgin Galactic Holdings Inc, Walt Disney, and Zynga. |
36772.0 | 2021-06-01 00:00:00 UTC | What Investors Need to Know About HEXO's Takeover of 48North | ACB | https://www.nasdaq.com/articles/what-investors-need-to-know-about-hexos-takeover-of-48north-2021-06-01 | nan | nan | The marijuana industry continues to consolidate in 2021. One of the more under-the-radar acquisitions of late was Canadian company HEXO's (NYSE: HEXO) agreement to buy its compatriot and peer 48North Cannabis (OTC: NCNNF), announced in mid-May.
In this Motley Fool Live conversation with healthcare and cannabis bureau chief Corinne Cardina, longtime Fool contributor Eric Volkman takes a brief look at the deal and sizes it up. This clip was recorded on May 21.
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 – 15 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
Corinne Cardina: Canadian pot company HEXO is continuing on a buying spree, so its latest acquisition is buying out its competitor, 48North.
They've also done a couple of other recent deals. In February, they announced that they were buying a rival called Zenabis Global and then earlier this month, it also entered the Colorado market.
So with this latest deal for 48North, HEXO's CEO did an interview with MJBiz Daily. He said that the deal is about competing in Canada's super-premium flower category, but also establishing intellectual property for cannabinoid-infused cosmetics for U.S. expansion.
Let's talk about this one. Do HEXO's recent acquisitions make it a more attractive stock, or could it be biting off more than it can chew?
Eric Volkman: I don't think they are biting off more than they can chew. I mean, what they're doing, it seems to me is they're chasing market share. They can talk about these special CBD products for the American market. That's all well and good but basically their ambition [is], they've stated they want to be one of the top two in terms of market share in their native Canada.
Canadian producers -- or Canadian weed companies in general -- they're vertically integrated. They're bottled up in Canada, outside of acquisitions -- and even very limited with that -- they can't enter the U.S. market. Because as we all know, on the federal level, marijuana is illegal there. So they're basically limited to the local market.
Which is nice in one way because Canada is completely legal for any type of marijuana. The only problem is it's Canada; in terms of population, it's much smaller than the U.S. and you have so many companies there trying to elbow their way into the market and make some more money.
So HEXO is going for share, that was more of a motivation with the Zenabis Global deal, which was a bigger deal. That was 235 million Canadian ($194 million) all in stock. The 48North was only 50 million Canadian ($41 million), so slightly smaller scale.
To me [48North] is not cheap for HEXO, but because they're spending in stock, there's an advantage there. Again, they save precious cash resources, which nobody has enough of in this industry. They have a clear strategy to really carve out much more of a presence there.
They also see the companies at the top of the food chain in Canada. Canopy Growth, Aurora [Cannabis]; those guys are stumbling. I feel that they sense that there's some blood in the water and they can jump in and be, if not the big fish, at least a bigger fish than they are now.
Corinne Cardina has no position in any of the stocks mentioned. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. 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. | 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. In February, they announced that they were buying a rival called Zenabis Global and then earlier this month, it also entered the Colorado market. He said that the deal is about competing in Canada's super-premium flower category, but also establishing intellectual property for cannabinoid-infused cosmetics for U.S. expansion. | One of the more under-the-radar acquisitions of late was Canadian company HEXO's (NYSE: HEXO) agreement to buy its compatriot and peer 48North Cannabis (OTC: NCNNF), announced in mid-May. Learn more Corinne Cardina: Canadian pot company HEXO is continuing on a buying spree, so its latest acquisition is buying out its competitor, 48North. Do HEXO's recent acquisitions make it a more attractive stock, or could it be biting off more than it can chew? | One of the more under-the-radar acquisitions of late was Canadian company HEXO's (NYSE: HEXO) agreement to buy its compatriot and peer 48North Cannabis (OTC: NCNNF), announced in mid-May. 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. Learn more Corinne Cardina: Canadian pot company HEXO is continuing on a buying spree, so its latest acquisition is buying out its competitor, 48North. | 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. Learn more Corinne Cardina: Canadian pot company HEXO is continuing on a buying spree, so its latest acquisition is buying out its competitor, 48North. Do HEXO's recent acquisitions make it a more attractive stock, or could it be biting off more than it can chew? |
36773.0 | 2021-06-01 00:00:00 UTC | Pot Shortages 2021: 18 Things for Marijuana Stock Investors to Know | ACB | https://www.nasdaq.com/articles/pot-shortages-2021%3A-18-things-for-marijuana-stock-investors-to-know-2021-06-01 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Some states are dealing with pot shortages in 2021 that are making it hard for marijuana companies to keep up with demand.
Source: Yarygin / Shutterstock.com
Let’s take a look at what marijuana stock investors need to know about the potential pot shortages in 2021.
The most recent states to deal with pot shortages in 2021 are New York and New Jersey.
Both states are ramping up efforts to produce more marijuana but a unique set of hurdles make it hard to do.
The biggest problem is that marijuana is still illegal at the federal level.
That means that growers can just reach out across state lines to get their hands on more supply.
Instead, everything has to be grown and sold locally.
That sounds like a dream for local growers but there’s another issue: financing.
Not many banks are willing to throw financing behind a business that doesn’t have the okay from the federal government.
As a result, local growers can have problems getting their businesses off the ground.
It’s not just New York and New Jersey that have run into these types of problems.
7 Cheap Stocks to Put on Your Buy List for June
Oregon dealt with a similar issue earlier this year when it couldn’t keep up with the demand for marijuana.
Another state with a similar conundrum is New Mexico.
It’s looking to legalize weed soon and that will put a strain on the supply of pot in the state.
This has some members of the medical marijuana community calling for restrictions to be removed on growing in the state.
Those shortages could be good news for some pot stocks.
Companies such as Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), GrowGeneration (NASDAQ:GRWG) could benefit from this.
Increasing demand for marijuana means increasing prices.
That extra demand could also result in eased restrictions that allow these companies to do business easier.
Of course, the best news would be the federal legalization of recreational marijuana, but we’ll have to wait and see if that ever happens.
We’ve got plenty of other stocks news outside of marijuana to look into.
Some of the hottest stories from InvestorPlace today cover a wide range of markets. That includes a massive Cloudera (NYSE:CLDR) deal, Nvidia (NASDAQ:NVDA) cracking down on crypto mining, as well as meme stocks gaining today. Get up to speed on these stories at the links below.
More Tuesday Stock News
CLDR Stock: 17 Things to Know About the Huge Cloudera Buyout Deal That Has Shares Skyrocketing Today
Nvidia Crypto News: The New Product Launches Moving NVDA Stock Today
Meme Stocks: Why Reddit Favorites AMC, SNDL, BB and GME Are Moving Today
On the date of publication, William White 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.
The post Pot Shortages 2021: 18 Things for Marijuana Stock Investors to Know 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. | Companies such as Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), GrowGeneration (NASDAQ:GRWG) could benefit from this. Both states are ramping up efforts to produce more marijuana but a unique set of hurdles make it hard to do. 7 Cheap Stocks to Put on Your Buy List for June Oregon dealt with a similar issue earlier this year when it couldn’t keep up with the demand for marijuana. | Companies such as Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), GrowGeneration (NASDAQ:GRWG) could benefit from this. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some states are dealing with pot shortages in 2021 that are making it hard for marijuana companies to keep up with demand. More Tuesday Stock News CLDR Stock: 17 Things to Know About the Huge Cloudera Buyout Deal That Has Shares Skyrocketing Today Nvidia Crypto News: The New Product Launches Moving NVDA Stock Today Meme Stocks: Why Reddit Favorites AMC, SNDL, BB and GME Are Moving Today On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. | Companies such as Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), GrowGeneration (NASDAQ:GRWG) could benefit from this. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some states are dealing with pot shortages in 2021 that are making it hard for marijuana companies to keep up with demand. More Tuesday Stock News CLDR Stock: 17 Things to Know About the Huge Cloudera Buyout Deal That Has Shares Skyrocketing Today Nvidia Crypto News: The New Product Launches Moving NVDA Stock Today Meme Stocks: Why Reddit Favorites AMC, SNDL, BB and GME Are Moving Today On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. | Companies such as Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), GrowGeneration (NASDAQ:GRWG) could benefit from this. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some states are dealing with pot shortages in 2021 that are making it hard for marijuana companies to keep up with demand. That means that growers can just reach out across state lines to get their hands on more supply. |
36774.0 | 2021-05-29 00:00:00 UTC | Here's Why the Best Is Yet to Come for Canopy Growth | ACB | https://www.nasdaq.com/articles/heres-why-the-best-is-yet-to-come-for-canopy-growth-2021-05-29 | nan | nan | The marijuana industry in Canada boomed amid the pandemic after cannabis was deemed an "essential item." However, sales weren't enough to compensate for the other headwinds the Canadian cannabis market faces. Among other things, a slow rollout of legal stores, regulatory hold-ups, and black-market challenges have challenged Canadian pot companies in growing their revenues enough to generate profits. Despite the hurdles, though, some are on their way to success -- and one among them is Canada-based Canopy Growth (NASDAQ: CGC).
While Canopy isn't profitable yet, it's long been an investor favorite. The company was smart in its initial days of development, when the marijuana industry was in a nascent stage. In October 2017 -- even before seeing state legalization ramp up in the U.S. or federal legalization move into the realm of the possible -- Canopy partnered up with U.S. beverage giant Constellation Brands (NYSE: STZ) in a deal that saw the latter invest 245 million Canadian dollars into Canopy.
I must say it was a very smart decision. Here's why Canopy Growth has a beautiful future waiting.
Image source: Getty Images.
Performance hasn't hit the mark yet, but ...
Slowly and steadily, Canopy is growing its revenue. In its Q3, which ended Dec. 31, revenue was up 23% from the year-ago period to CA$153 million.
Canopy hasn't been able to achieve positive earnings before interest, tax, depreciation, and amortization (EBITDA) yet, but is working on reducing its EBITDA losses. (Positive EBITDA is a sign of how well a company tackles its operating expenses. Meanwhile, net profits are the company's earnings after it has made all deductions.) In its Q3, the company managed to lower its total SG&A (or selling, general, and administrative) expenses to CA$144 million, which helped EBITDA losses come in lower at CA$68 million, compared with CA$97 million in Q3 2020.
Cannabis derivatives could be a game-changer
Canopy is doing well growing its revenue steadily, controlling its expenses, and lowering its EBITDA losses. However, it is important that it achieves profitability or it will lag compared to its U.S. counterparts, most of which are already profitable. This is where high-demand cannabis derivatives come into the picture. Canada legalized derivatives -- vapes, edibles, chocolates, beverages, concentrates, and more -- in October 2019 as part of "Cannabis 2.0." Derivatives offer consumers a different way to consume cannabis beyond the traditional way of smoking the flower.
Canopy has been very creative with its derivatives products, launching a wide array of options amid the pandemic. Its cannabis beverages in particular are a hit in Canada, according to the management, capturing a 34% market share for the quarter.
Canopy can achieve a similar presence in the U.S. if and when it launches these products. And many believe drinkable cannabis could take over the alcohol industry soon -- the global marijuana beverage market could grow at a compound annual growth rate (CAGR) of 18% to reach $2.8 billion by 2025, according to Grand View Research. Holding a dominant position in this segment with its innovative products will give Canopy an edge over its peers.
The deep pockets it boasts because of Constellation's investment will also allow the company to spend more on new cannabis products later in the year. Compare this with its peer Aurora Cannabis, which is struggling to survive and nowhere near launching any new derivatives.
Canopy Growth has some strong partners
To launch its new products in the U.S., Canopy can rely on Constellation's extensive network throughout the country to help it establish a solid footing. Meanwhile, in exercising its warrants over time, Constellation has come to hold a 38.6% stake in Canopy.
In April 2019, Canopy made an agreement to acquire U.S.-based hemp company Acreage Holdings, but that deal will only close if and when the U.S. federally legalizes marijuana. For now, the company is slowly moving forward with a different strategy in the U.S. As there are no restrictions on the use of the non-psychoactive compound cannabidiol (CBD) in the U.S., Canopy -- along with Acreage -- made an entry into the U.S. CBD beverage market in March with the launch of Quatreau, a premium ready-to-drink CBD-infused sparkling water.
This is not a cannabis stock you should miss out on
With its Q3 earnings results, management also discussed some of the company's medium-term financial targets:
Net revenue could grow at a CAGR of 40% to 50% between fiscal 2022 and 2024.
It expects to achieve positive adjusted EBITDA by the second half of fiscal 2022.
Marijuana investors may note the long list of U.S. cannabis companies that are in a much better financial position than Canopy. But I believe investors should have faith in Canopy's potential and the path it is carving for itself, though it may be a long road. With Constellation financially backing it, Canopy will be able to sell its innovative and varied recreational products to a wide customer base in the U.S. once federal legalization of marijuana happens.
We will know more of this cannabis company's plans for this year and beyond once it reports its fiscal 2021 fourth-quarter numbers on June 1. Interested investors will want to keep an eye on the results.
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 – 15 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 owns shares of and recommends Constellation 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. | And many believe drinkable cannabis could take over the alcohol industry soon -- the global marijuana beverage market could grow at a compound annual growth rate (CAGR) of 18% to reach $2.8 billion by 2025, according to Grand View Research. This is not a cannabis stock you should miss out on With its Q3 earnings results, management also discussed some of the company's medium-term financial targets: Net revenue could grow at a CAGR of 40% to 50% between fiscal 2022 and 2024. With Constellation financially backing it, Canopy will be able to sell its innovative and varied recreational products to a wide customer base in the U.S. once federal legalization of marijuana happens. | The marijuana industry in Canada boomed amid the pandemic after cannabis was deemed an "essential item." In its Q3, the company managed to lower its total SG&A (or selling, general, and administrative) expenses to CA$144 million, which helped EBITDA losses come in lower at CA$68 million, compared with CA$97 million in Q3 2020. Cannabis derivatives could be a game-changer Canopy is doing well growing its revenue steadily, controlling its expenses, and lowering its EBITDA losses. | In October 2017 -- even before seeing state legalization ramp up in the U.S. or federal legalization move into the realm of the possible -- Canopy partnered up with U.S. beverage giant Constellation Brands (NYSE: STZ) in a deal that saw the latter invest 245 million Canadian dollars into Canopy. Cannabis derivatives could be a game-changer Canopy is doing well growing its revenue steadily, controlling its expenses, and lowering its EBITDA losses. Marijuana investors may note the long list of U.S. cannabis companies that are in a much better financial position than Canopy. | While Canopy isn't profitable yet, it's long been an investor favorite. In October 2017 -- even before seeing state legalization ramp up in the U.S. or federal legalization move into the realm of the possible -- Canopy partnered up with U.S. beverage giant Constellation Brands (NYSE: STZ) in a deal that saw the latter invest 245 million Canadian dollars into Canopy. Slowly and steadily, Canopy is growing its revenue. |
36775.0 | 2021-05-28 00:00:00 UTC | Why Sundial, Aurora Cannabis, Cronos Group, and Other Marijuana Stocks Surged Today | ACB | https://www.nasdaq.com/articles/why-sundial-aurora-cannabis-cronos-group-and-other-marijuana-stocks-surged-today-2021-05 | nan | nan | What happened
Friday was a good day for cannabis investors. Here's how some of the most popular pot stocks fared:
Sundial Growers (NASDAQ: SNDL), up 15%
Cronos Group (NASDAQ: CRON), up 15%
OrganiGram Holdings (NASDAQ: OGI), up 11%
Aurora Cannabis (NASDAQ: ACB), up 8%
Canopy Growth (NASDAQ: CGC), up 6%
So what
A wave of deal-making has swept over the cannabis sector in recent months. Industry leaders Tilray and Aphria completed their merger earlier this month. Sundial Growers recently snapped up cannabis retailer Inner Spirit Holdings. Canopy Growth reached a deal to acquire The Supreme Cannabis Company in April. And today, investors awoke to the news that HEXO struck a deal to purchase privately held marijuana producer Redecan for roughly $766 million.
Image source: Getty Images.
The industry is rapidly consolidating, and investors appear to be betting that the businesses that remain will have a better chance at generating sustainable profits.
Now what
Canopy, Cronos, and Sundial have cash-rich balance sheets and thus could choose to make additional acquisitions in the coming months. Aurora and OrganiGram have less cash and are therefore more likely to be courted by larger suitors. Yet all of these companies' investors should expect continued deal-making to reshape the marijuana industry in the years ahead.
10 stocks we like better than Sundial Growers Inc
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Sundial Growers Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends HEXO Corp. 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. | Here's how some of the most popular pot stocks fared: Sundial Growers (NASDAQ: SNDL), up 15% Cronos Group (NASDAQ: CRON), up 15% OrganiGram Holdings (NASDAQ: OGI), up 11% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 6% So what A wave of deal-making has swept over the cannabis sector in recent months. And today, investors awoke to the news that HEXO struck a deal to purchase privately held marijuana producer Redecan for roughly $766 million. The industry is rapidly consolidating, and investors appear to be betting that the businesses that remain will have a better chance at generating sustainable profits. | Here's how some of the most popular pot stocks fared: Sundial Growers (NASDAQ: SNDL), up 15% Cronos Group (NASDAQ: CRON), up 15% OrganiGram Holdings (NASDAQ: OGI), up 11% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 6% So what A wave of deal-making has swept over the cannabis sector in recent months. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends HEXO Corp. | Here's how some of the most popular pot stocks fared: Sundial Growers (NASDAQ: SNDL), up 15% Cronos Group (NASDAQ: CRON), up 15% OrganiGram Holdings (NASDAQ: OGI), up 11% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 6% So what A wave of deal-making has swept over the cannabis sector in recent months. 10 stocks we like better than Sundial Growers Inc When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Joe Tenebruso has no position in any of the stocks mentioned. | Here's how some of the most popular pot stocks fared: Sundial Growers (NASDAQ: SNDL), up 15% Cronos Group (NASDAQ: CRON), up 15% OrganiGram Holdings (NASDAQ: OGI), up 11% Aurora Cannabis (NASDAQ: ACB), up 8% Canopy Growth (NASDAQ: CGC), up 6% So what A wave of deal-making has swept over the cannabis sector in recent months. The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends HEXO Corp. |
36776.0 | 2021-05-28 00:00:00 UTC | Why Pot Stocks Led Markets Higher Into the Holiday Weekend | ACB | https://www.nasdaq.com/articles/why-pot-stocks-led-markets-higher-into-the-holiday-weekend-2021-05-28 | nan | nan | The stock market closed the week on an up note, finishing the month of May as Monday brings the Memorial Day holiday. Gains were modest, but the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) all managed to climb higher.
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
+0.19%
+65
S&P 500
+0.08%
+3
Nasdaq Composite
+0.09%
+12
Data source: Yahoo! Finance.
Some of the biggest movers on Friday were marijuana stocks. Investors have been generally excited about the prospects for the cannabis industry since the U.S. elections, but the downturn in high-growth stocks also brought that positive momentum for pot investments to a halt. Now, it appears that investors have high hopes for the future once again. Let's look at some of the stocks seeing the biggest gains.
Image source: Getty Images.
Nearly unanimous gains for the marijuana industry
Much of the cannabis sector enjoyed considerable gains on Friday. The ETFMG Alternative Harvest ETF (NYSEMKT: MJ), which includes a wide array of cannabis-related investments, rose nearly 2% in the session.
Major cannabis stocks were up even more sharply, with one exception. Cronos Group (NASDAQ: CRON) led the way with a 15% rise, while Aurora Cannabis (NASDAQ: ACB) gained 8% and Canopy Growth (NASDAQ: CGC) was higher by nearly 6%. Only Tilray (NASDAQ: TLRY) missed out on the gains, with a drop of 3% coming in the last 30 minutes of the trading day.
Some smaller players in the marijuana space did equally well. Crowd favorite Sundial Growers (NASDAQ: SNDL) picked up almost 15%, while HEXO (NYSE: HEXO) was higher by 10%. OrganiGram Holdings (NASDAQ: OGI) saw its stock jump 11%.
Why was pot on the rise?
A number of factors supported the increase in investor interest in cannabis stocks. First, most of the top stocks in the sector are based in Canada and rely heavily on the Canadian retail market currently. The pandemic has been more stubborn north of the U.S. border, as vaccine rollouts have been somewhat slower. However, the country is making greater progress, and with the prospects of restrictions finally getting lifted, investors are hoping for a boost for the industry domestically.
Also, companies are getting more aggressive about consolidation efforts. Tilray's acquisition of Aphria is perhaps the clearest example, but today, HEXO announced that it would make its own strategic move, spending $765 million to buy out cannabis producer Redecan. Once the deal goes through, HEXO would become an industry leader in dried flower as well as in cannabis-infused beverages. Shareholders can expect some dilution, but only between 50% and 60% of the total price will come from new stock, with HEXO paying $330 million in cash.
Finally, marijuana investors still believe that the U.S. market is ripe for picking once the federal government makes moves to decriminalize pot. There hasn't been much progress on that front since January, as lawmakers have focused on different issues. Nevertheless, many in the industry see it as simply a matter of time before would-be cannabis consumers in the U.S. have the same ability to buy nationwide as their Canadian counterparts.
Keep your eyes on cannabis
Pot stocks have already enjoyed huge gains, with many having doubled or more in the past year. However, most are far below their highs from 2018. With growth investors looking for companies that can live up to their long-term potential, marijuana might represent a rare value opportunity amid high-priced high-growth stocks in other areas like technology.
10 stocks we like better than HEXO Corp.
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and HEXO Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends HEXO Corp. 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. | Cronos Group (NASDAQ: CRON) led the way with a 15% rise, while Aurora Cannabis (NASDAQ: ACB) gained 8% and Canopy Growth (NASDAQ: CGC) was higher by nearly 6%. Investors have been generally excited about the prospects for the cannabis industry since the U.S. elections, but the downturn in high-growth stocks also brought that positive momentum for pot investments to a halt. Tilray's acquisition of Aphria is perhaps the clearest example, but today, HEXO announced that it would make its own strategic move, spending $765 million to buy out cannabis producer Redecan. | Cronos Group (NASDAQ: CRON) led the way with a 15% rise, while Aurora Cannabis (NASDAQ: ACB) gained 8% and Canopy Growth (NASDAQ: CGC) was higher by nearly 6%. Nearly unanimous gains for the marijuana industry Much of the cannabis sector enjoyed considerable gains on Friday. The Motley Fool recommends HEXO Corp. | Cronos Group (NASDAQ: CRON) led the way with a 15% rise, while Aurora Cannabis (NASDAQ: ACB) gained 8% and Canopy Growth (NASDAQ: CGC) was higher by nearly 6%. Investors have been generally excited about the prospects for the cannabis industry since the U.S. elections, but the downturn in high-growth stocks also brought that positive momentum for pot investments to a halt. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Dan Caplinger has no position in any of the stocks mentioned. | Cronos Group (NASDAQ: CRON) led the way with a 15% rise, while Aurora Cannabis (NASDAQ: ACB) gained 8% and Canopy Growth (NASDAQ: CGC) was higher by nearly 6%. Nearly unanimous gains for the marijuana industry Much of the cannabis sector enjoyed considerable gains on Friday. 10 stocks we like better than HEXO Corp. |
36777.0 | 2021-05-28 00:00:00 UTC | CANADA STOCKS - TSX rises 0.39% to 19,852.18 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.39-to-19852.18-2021-05-28 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.39 percent to 19,852.18
* Leading the index were Cronos Group Inc , up 14.8%, OrganiGram Holdings Inc OGI.TO, up 9.7%, and Aurora Cannabis Inc ACB.TO, higher by 6.6%.
* Lagging shares were Dye & Durham Ltd DND.TO, down 4.7%, Ivanhoe Mines Ltd IVN.TO, down 4.3%, and Methanex Corp MX.TO, lower by 3.8%.
* On the TSX 151 issues rose and 75 fell as a 2-to-1 ratio favored advancers. There were 23 new highs and no new lows, with total volume of 226.7 million shares.
* The most heavily traded shares by volume were Blackberry Ltd BB.TO, Great-west Lifeco Inc GWO.TO and Suncor Energy Inc SU.TO.
* The TSX's energy group .SPTTEN rose 1.01 points, or 0.8%, while the financials sector .SPTTFS climbed 0.75 points, or 0.2%.
* West Texas Intermediate crude futures CLc1 fell 0.33%, or $0.22, to $66.63 a barrel. Brent crude LCOc1 rose 0.27%, or $0.19, to $69.65 O/R
* The TSX is up 13.9% for the year.
This summary was machine generated May 28 at 21:03 GMT.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The Toronto Stock Exchange's TSX rises 0.39 percent to 19,852.18 * Leading the index were Cronos Group Inc , up 14.8%, OrganiGram Holdings Inc OGI.TO, up 9.7%, and Aurora Cannabis Inc ACB.TO, higher by 6.6%. * Lagging shares were Dye & Durham Ltd DND.TO, down 4.7%, Ivanhoe Mines Ltd IVN.TO, down 4.3%, and Methanex Corp MX.TO, lower by 3.8%. * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Great-west Lifeco Inc GWO.TO and Suncor Energy Inc SU.TO. | * The Toronto Stock Exchange's TSX rises 0.39 percent to 19,852.18 * Leading the index were Cronos Group Inc , up 14.8%, OrganiGram Holdings Inc OGI.TO, up 9.7%, and Aurora Cannabis Inc ACB.TO, higher by 6.6%. * On the TSX 151 issues rose and 75 fell as a 2-to-1 ratio favored advancers. * The TSX's energy group .SPTTEN rose 1.01 points, or 0.8%, while the financials sector .SPTTFS climbed 0.75 points, or 0.2%. | * The Toronto Stock Exchange's TSX rises 0.39 percent to 19,852.18 * Leading the index were Cronos Group Inc , up 14.8%, OrganiGram Holdings Inc OGI.TO, up 9.7%, and Aurora Cannabis Inc ACB.TO, higher by 6.6%. * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Great-west Lifeco Inc GWO.TO and Suncor Energy Inc SU.TO. * The TSX's energy group .SPTTEN rose 1.01 points, or 0.8%, while the financials sector .SPTTFS climbed 0.75 points, or 0.2%. | * The Toronto Stock Exchange's TSX rises 0.39 percent to 19,852.18 * Leading the index were Cronos Group Inc , up 14.8%, OrganiGram Holdings Inc OGI.TO, up 9.7%, and Aurora Cannabis Inc ACB.TO, higher by 6.6%. * Lagging shares were Dye & Durham Ltd DND.TO, down 4.7%, Ivanhoe Mines Ltd IVN.TO, down 4.3%, and Methanex Corp MX.TO, lower by 3.8%. * On the TSX 151 issues rose and 75 fell as a 2-to-1 ratio favored advancers. |
36778.0 | 2021-05-27 00:00:00 UTC | 3 Exciting Reasons Trulieve Looks Like a Strong Buy After Earnings | ACB | https://www.nasdaq.com/articles/3-exciting-reasons-trulieve-looks-like-a-strong-buy-after-earnings-2021-05-27 | nan | nan | The marijuana industry caught plenty of investor attention last year when it kept soaring amid a global crisis while other sectors were struggling to survive. The drug was deemed an "essential item" in the U.S. and Canada during the lockdown, leading to higher sales. Sales are on the rise this year, too, and the ongoing wave of state legalization in the U.S. is the icing on the cake. The U.S. cannabis companies, in particular, have outshone their Canadian counterparts. Among these, Florida-based Trulieve Cannabis (OTC: TCNNF) is a rising star that has recorded 13 consecutive quarters of stellar revenue and positive earnings before interest, tax, depreciation, and amortization (EBITDA) -- a rare occurrence for cannabis companies.
On May 10, this already strong contender in the U.S. cannabis space upped its game by acquiring Arizona-based Harvest Health & Recreation (OTC: HRVSF). The deal, valued at $2.1 billion, will give Trulieve a wide hold on the U.S. cannabis market. Let's take a look at three things from its Q1 2021 earnings report, released May 13, that makes this exciting pot stock a strong buy now.
Image source: Getty Images.
1. Trulieve's revenue growth seems unstoppable
Trulieve is a classic example of how to strengthen your roots before you spread them. It has established a strong footing in its home state of Florida, with a total of 78 stores and about 2 million square feet of cultivation capacity in the state as of the end of Q1 (March 31). This helped it bolster its revenue growth.
Florida only allows medical cannabis, while efforts are ongoing to legalize recreational cannabis. Trulieve has boosted its medical cannabis position in other key markets including California, Massachusetts, and Connecticut. It is now getting ready to make a mark with its recreational products. It launched a few high-margin cannabis derivatives -- including gels, chocolates, cookies, and brownies -- for medical cannabis patients in Florida in Q3 2020. The Harvest Health acquisition will help it gain access to even more exciting markets. In its Q1, Trulieve's revenue grew 102% year over year to $194 million.
2. It is a profitable company
Positive EBITDA shows how well a company handles its operating expenses, while net profits are the company's earnings after all deductions. Trulieve managed to achieve both in Q1. Its adjusted EBITDA came in at $91 million, up 87% from the year-ago period. Operating expenses increased to $57 million from $29 million in Q1 2020 due to money spent on continued expansion. However, rising revenue was enough to drive in a positive EBITDA in the quarter.
Additionally, higher revenues and consistent positive EBITDA also contributed to a 27% year-over-year jump in net profits to $30 million for the quarter.
While keeping costs low, the company managed to hold its balance sheet stable. It ended its Q1 with cash and cash equivalents of $162 million and total outstanding debt of $86 million.
The company is in a good financial position to clear off its debts while growing revenue and profits via continued expansion. In the Q1earnings call management stated they expect a surge in operating expenses in 2021 as they continue to expand to new markets, but are confident that it won't dent revenue growth.
3. Its acquisition of Harvest Health is a smart move
Trulieve's acquisition of Harvest Health is subject to shareholder approval in the third quarter. This deal will give it a head start in Arizona, which recently legalized recreational cannabis. Harvest will also add Pennsylvania and Maryland dispensaries to Trulieve's national footprint. With Harvest's help, the combined company will have access to a blossoming marijuana market in the northeast, southeast, and southwest regions.
Harvest Health reported an outstanding first quarter with $88.8 million in revenue and adjusted EBITDA of $26.9 million. With access to 126 dispensaries in 11 states, Trulieve expects the combined company can generate around $1.2 billion in revenue and $461 million in adjusted EBITDA in 2021. A merger between two strong companies will allow taking advantage of each other's efficiencies -- such as the scale of operations, growth strategies, the addition of innovative products and brands, and larger cultivation capacity to generate more revenue and profits. Trulieve alone is working wonders, and the addition of Harvest should help Trulieve become a true cannabis powerhouse in the U.S.
For the full year, Trulieve expects revenue to come in the range of $815 million to $850 million and adjusted EBITDA to be in the range of $355 million to $375 million. Note that this guidance excludes the impact of the Harvest acquisition deal.
No reason to ignore this pot stock!
Trulieve Cannabis was already my top pick in the overall cannabis space even before it made its strategic move to acquire Harvest Health. The company is smart with its growth strategies. It took this bold step when it is already profitable and standing strong instead of going on a spending spree at the initial stages of its development like its Canadian counterpart Aurora Cannabis did, putting the latter business in a difficult financial position.
Marijuana sales could contribute about $92 billion in 2021 and up to $160 billion in 2025 to the U.S. economy, according to Marijuana Business Daily. I have no doubts this combined company will be able to capture a chunk of that market with revenues and profits soaring soon. I see no reason to avoid this pot stock. Even though Trulieve's stock has seen triple-digit gains over the last 12 months, its growth is unlikely to slow down soon. I believe its continued outstanding performance, probable federal legalization (over the next few years), and with the benefits from the Harvest acquisition will bring fruitful returns over the long term.
Consistent stellar revenue and profits, a robust balance sheet, a strong partner in Harvest Health, and an expanding national footprint all make for a strong case to invest in this marijuana stock now.
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 – 15 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 owns shares of and recommends Trulieve Cannabis Corp. 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. | In the Q1earnings call management stated they expect a surge in operating expenses in 2021 as they continue to expand to new markets, but are confident that it won't dent revenue growth. A merger between two strong companies will allow taking advantage of each other's efficiencies -- such as the scale of operations, growth strategies, the addition of innovative products and brands, and larger cultivation capacity to generate more revenue and profits. It took this bold step when it is already profitable and standing strong instead of going on a spending spree at the initial stages of its development like its Canadian counterpart Aurora Cannabis did, putting the latter business in a difficult financial position. | With access to 126 dispensaries in 11 states, Trulieve expects the combined company can generate around $1.2 billion in revenue and $461 million in adjusted EBITDA in 2021. Trulieve alone is working wonders, and the addition of Harvest should help Trulieve become a true cannabis powerhouse in the U.S. For the full year, Trulieve expects revenue to come in the range of $815 million to $850 million and adjusted EBITDA to be in the range of $355 million to $375 million. Consistent stellar revenue and profits, a robust balance sheet, a strong partner in Harvest Health, and an expanding national footprint all make for a strong case to invest in this marijuana stock now. | Among these, Florida-based Trulieve Cannabis (OTC: TCNNF) is a rising star that has recorded 13 consecutive quarters of stellar revenue and positive earnings before interest, tax, depreciation, and amortization (EBITDA) -- a rare occurrence for cannabis companies. With access to 126 dispensaries in 11 states, Trulieve expects the combined company can generate around $1.2 billion in revenue and $461 million in adjusted EBITDA in 2021. Trulieve alone is working wonders, and the addition of Harvest should help Trulieve become a true cannabis powerhouse in the U.S. For the full year, Trulieve expects revenue to come in the range of $815 million to $850 million and adjusted EBITDA to be in the range of $355 million to $375 million. | Florida only allows medical cannabis, while efforts are ongoing to legalize recreational cannabis. Harvest Health reported an outstanding first quarter with $88.8 million in revenue and adjusted EBITDA of $26.9 million. With access to 126 dispensaries in 11 states, Trulieve expects the combined company can generate around $1.2 billion in revenue and $461 million in adjusted EBITDA in 2021. |
36779.0 | 2021-05-25 00:00:00 UTC | First Week of ACB December 17th Options Trading | ACB | https://www.nasdaq.com/articles/first-week-of-acb-december-17th-options-trading-2021-05-25 | nan | nan | Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading this week, for the December 17th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 206 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new December 17th contracts and identified one put and one call contract of particular interest.
The put contract at the $7.00 strike price has a current bid of $1.41. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $7.00, but will also collect the premium, putting the cost basis of the shares at $5.59 (before broker commissions). To an investor already interested in purchasing shares of ACB, that could represent an attractive alternative to paying $7.91/share today.
Because the $7.00 strike represents an approximate 12% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 20.14% return on the cash commitment, or 35.68% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aurora Cannabis Inc, and highlighting in green where the $7.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $8.00 strike price has a current bid of $1.32. If an investor was to purchase shares of ACB stock at the current price level of $7.91/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $8.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 17.83% if the stock gets called away at the December 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $8.00 strike highlighted in red:
Considering the fact that the $8.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 16.69% boost of extra return to the investor, or 29.56% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $7.91) to be 119%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ACB shares really soar, which is why looking at the trailing twelve month trading history for Aurora Cannabis Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ACB's trailing twelve month trading history, with the $8.00 strike highlighted in red: Considering the fact that the $8.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading this week, for the December 17th expiration. | Below is a chart showing ACB's trailing twelve month trading history, with the $8.00 strike highlighted in red: Considering the fact that the $8.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading this week, for the December 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new December 17th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ACB's trailing twelve month trading history, with the $8.00 strike highlighted in red: Considering the fact that the $8.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading this week, for the December 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new December 17th contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new December 17th contracts and identified one put and one call contract of particular interest. Below is a chart showing ACB's trailing twelve month trading history, with the $8.00 strike highlighted in red: Considering the fact that the $8.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading this week, for the December 17th expiration. |
36780.0 | 2021-05-25 00:00:00 UTC | 2 Top Marijuana Stocks to Buy and Hold for the Next 10 Years | ACB | https://www.nasdaq.com/articles/2-top-marijuana-stocks-to-buy-and-hold-for-the-next-10-years-2021-05-25 | nan | nan | The legal marijuana industry is still very new, and what it will look like a decade from now -- not to mention which companies will still be around -- is really anyone's guess. A few years ago, Aurora Cannabis was one of the top producers in the industry, but now its business looks to be in disarray amid high costs and a lack of profitability. Even Canopy Growth, which was once the top cannabis company in the world, has fallen a few steps behind Tilray and large multi-state operators like Curaleaf and Trulieve Cannabis.
However, amidst all that noise there are two stocks that I would feel comfortable holding for the next 10 years: Scotts Miracle-Gro (NYSE: SMG) and Innovative Industrial Properties (NYSE: IIPR). Both are pick-and-shovel plays that are likely to remain solid investments no matter how many other cannabis producers join the industry.
Image source: Getty Images.
1. Scotts Miracle-Gro
Through its Hawthorne Gardening subdisidary, Scotts provides marijuana producers with the tools they need to grow cannabis via hydroponics, using a system of pipes and pumps instead of soil. Scotts traditionally was known simply for its conventional gardening business -- which falls under its U.S. consumer segment -- and while it still does that, it is growth in hydroponics that's sending sales through the roof.
On May 5, Scotts released its second-quarter results for the period ended April 3. Net sales of $1.8 billion rose by 32% from the prior-year period. The U.S. consumer segment grew 23% to $1.4 billion, while Hawthorne increased its sales at more than double that rate -- 66%, recording revenue of $363.8 million. Scotts noted that it was the fifth straight period in which Hawthorne's sales growth was in excess of 60%.
Although a growth rate that high isn't likely to persist over many years, more states legalizing marijuana and more companies and individuals growing pot will only create more demand for Hawthorne's products. It won't be surprising if that segment of its business remains strong for the foreseeable future.
At worst, Scotts is a stable dividend stock with a decent dividend yield of 1.2% (the S&P 500 average is about 1.4%). With profits in each of the past five fiscal years, its bottom line is stronger than most plant-touching businesses in the industry, and there's no reason to expect that will change in the near future.
2. Innovative Industrial Properties
While Scotts provides marijuana companies with the tools to grow cannabis, Innovative Industrial provides them with space for their cultivation activities. In many cases, it actually is a source of cash infusion for businesses that are struggling and need to raise money. Through sale-leaseback agreements, the grower sells their property to Innovative Industrial and in return gets money to help grow its business. Meanwhile, the real estate investment trust (REIT) gets another tenant it can collect recurring payments from.
By adding to its list of properties, Innovative Industrial accelerates its sales growth. REITs aren't typically known for high growth, given that rent payments remain fairly consistent month over month. But through acquiring new properties, the company gets bigger and its recurring income gets larger. When Innovative Industrial reported its first-quarter results on May 5 for the first three months of the year, it noted it had already made four acquisitions in 2021 across California, Florida, Michigan, and Texas.
In the first quarter, its rental revenue totaled $42.9 billion -- more than double the $21.1 billion it reported in the same period last year. And with modest operating costs, the company was able to bank more than half of that (60%) as profit. REITs have strong high-margin business models that make them fairly safe buys to hang on to. And since they need to pay out at least 90% of their earnings, they are also promising income stocks to buy and hold for the long term. Today, Innovative Industrial's yield is at 3%.
Like Scotts, this is another solid cannabis investment that will likely only benefit from a larger industry and more companies getting involved, and that's why it's one of the better marijuana stocks to buy if you are looking at the long term.
10 stocks we like better than Scotts Miracle-Gro
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Scotts Miracle-Gro wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
David Jagielski owns shares of Scotts Miracle-Gro. The Motley Fool owns shares of and recommends Innovative Industrial Properties, Scotts Miracle-Gro, and Trulieve Cannabis Corp. 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. | A few years ago, Aurora Cannabis was one of the top producers in the industry, but now its business looks to be in disarray amid high costs and a lack of profitability. Although a growth rate that high isn't likely to persist over many years, more states legalizing marijuana and more companies and individuals growing pot will only create more demand for Hawthorne's products. Like Scotts, this is another solid cannabis investment that will likely only benefit from a larger industry and more companies getting involved, and that's why it's one of the better marijuana stocks to buy if you are looking at the long term. | However, amidst all that noise there are two stocks that I would feel comfortable holding for the next 10 years: Scotts Miracle-Gro (NYSE: SMG) and Innovative Industrial Properties (NYSE: IIPR). Innovative Industrial Properties While Scotts provides marijuana companies with the tools to grow cannabis, Innovative Industrial provides them with space for their cultivation activities. The Motley Fool owns shares of and recommends Innovative Industrial Properties, Scotts Miracle-Gro, and Trulieve Cannabis Corp. | However, amidst all that noise there are two stocks that I would feel comfortable holding for the next 10 years: Scotts Miracle-Gro (NYSE: SMG) and Innovative Industrial Properties (NYSE: IIPR). Innovative Industrial Properties While Scotts provides marijuana companies with the tools to grow cannabis, Innovative Industrial provides them with space for their cultivation activities. Like Scotts, this is another solid cannabis investment that will likely only benefit from a larger industry and more companies getting involved, and that's why it's one of the better marijuana stocks to buy if you are looking at the long term. | Scotts noted that it was the fifth straight period in which Hawthorne's sales growth was in excess of 60%. Like Scotts, this is another solid cannabis investment that will likely only benefit from a larger industry and more companies getting involved, and that's why it's one of the better marijuana stocks to buy if you are looking at the long term. The Motley Fool owns shares of and recommends Innovative Industrial Properties, Scotts Miracle-Gro, and Trulieve Cannabis Corp. |
36781.0 | 2021-05-21 00:00:00 UTC | Why Aurora Cannabis Stock Popped Friday | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-popped-friday-2021-05-21 | nan | nan | What happened
Shares of Canadian cannabis company Aurora Cannabis (NYSE: ACB) closed up 3.8% on a slow day for Wall Street. The reason for the stock's rise, however, seems to have less to do with happenings in Canada than with what's going on in the U.S. Congress.
So what
Specifically, in the U.S. House of Representatives, it was reported that Judiciary Committee Chairman Jerrold Nadler is planning to introduce the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act for consideration by legislators next week. Such a move would not only "deschedule" marijuana (i.e., legalize it on the federal level), but do so retroactively, permitting persons previously convicted of marijuana drug offenses to have their records expunged, fulfilling a campaign pledge made by Vice President Kamala Harris last year.
Meanwhile, similar legislation is expected to be taken up in the U.S. Senate "very soon," reports MarijuanaMoment.net.
Image source: Getty Images.
Now what
Combined, these two news items suggest that marijuana legalization is advancing in the halls of Congress -- a fact presumed to be good news for marijuana companies such as Aurora Cannabis. It does not necessarily mean that legalization is imminent, however.
As MarijuanaMoment points out, the MORE bill going to the House has been amended somewhat from a version that passed the House last year, which may affect the support it receives this time around. And advocates of the new measure are said to be pushing for additional revisions which could further delay passage -- even before the inevitable negotiations between House and Senate versions begin later in the year.
10 stocks we like better than Aurora Cannabis Inc.
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Rich Smith 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. | What happened Shares of Canadian cannabis company Aurora Cannabis (NYSE: ACB) closed up 3.8% on a slow day for Wall Street. So what Specifically, in the U.S. House of Representatives, it was reported that Judiciary Committee Chairman Jerrold Nadler is planning to introduce the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act for consideration by legislators next week. Such a move would not only "deschedule" marijuana (i.e., legalize it on the federal level), but do so retroactively, permitting persons previously convicted of marijuana drug offenses to have their records expunged, fulfilling a campaign pledge made by Vice President Kamala Harris last year. | What happened Shares of Canadian cannabis company Aurora Cannabis (NYSE: ACB) closed up 3.8% on a slow day for Wall Street. Now what Combined, these two news items suggest that marijuana legalization is advancing in the halls of Congress -- a fact presumed to be good news for marijuana companies such as Aurora Cannabis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | What happened Shares of Canadian cannabis company Aurora Cannabis (NYSE: ACB) closed up 3.8% on a slow day for Wall Street. Such a move would not only "deschedule" marijuana (i.e., legalize it on the federal level), but do so retroactively, permitting persons previously convicted of marijuana drug offenses to have their records expunged, fulfilling a campaign pledge made by Vice President Kamala Harris last year. Now what Combined, these two news items suggest that marijuana legalization is advancing in the halls of Congress -- a fact presumed to be good news for marijuana companies such as Aurora Cannabis. | What happened Shares of Canadian cannabis company Aurora Cannabis (NYSE: ACB) closed up 3.8% on a slow day for Wall Street. Now what Combined, these two news items suggest that marijuana legalization is advancing in the halls of Congress -- a fact presumed to be good news for marijuana companies such as Aurora Cannabis. 10 stocks we like better than Aurora Cannabis Inc. |
36782.0 | 2021-05-21 00:00:00 UTC | Robinhood's Most Popular Marijuana Stocks Ranked From Best to Worst | ACB | https://www.nasdaq.com/articles/robinhoods-most-popular-marijuana-stocks-ranked-from-best-to-worst-2021-05-21 | nan | nan | Many Robinhood investors are seeing green these days, and not because of their stock gains. Instead, it's a reference to the kinds of stocks that are popular on the trading platform. Of the 100 most widely held stocks on Robinhood, seven of them are pot stocks.
Which of these stocks are worthy of consideration and which should be avoided? Here are the most popular marijuana stocks on Robinhood ranked from best to worst.
Image source: Getty Images.
1. Canopy Growth
Canopy Growth (NASDAQ: CGC) takes the top spot among the popular Robinhood marijuana stocks for three key reasons. First, it's already a major player in the global cannabis market. Canopy is one of the leaders in the Canadian recreational market as well as the German medical cannabis market.
Second, Canopy seems to have a clear path to profitability with a hefty cash stockpile to tap in the meantime. The company expects to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during the second half of its fiscal year 2022, which ends on March 31, 2022. It projects positive operating cash flow for full-year fiscal 2023 and positive free cash flow for full-year fiscal 2024. Canopy's cash stockpile stood at $1.59 billion as of Dec. 31, 2020.
Third, Canopy is in the best position in the huge U.S. market. The company already markets CBD products in the U.S. It owns options to acquire U.S. cannabis operator Acreage Holdings and to buy a significant stake in Terrascend if and when federal cannabis laws are changed. Canopy also has a big partner (and largest shareholder), Constellation Brands, that can help it achieve success in the U.S. market.
2. HEXO
HEXO (NYSE: HEXO) has delivered seven consecutive quarters of adjusted EBITDA improvement and reported positive adjusted EBITDA in its latest quarter. The company claims the No. 1 market share in Quebec's adult-use cannabis market as well as the leading national market share in Canada for cannabis beverages.
Truss, the joint venture formed by HEXO and Molson Coors, currently markets CBD beverages in the U.S. HEXO recently announced plans to open its first U.S. production facility through a wholly owned U.S. subsidiary. It's also in discussions with other consumer packaged goods companies about non-beverage partnerships.
HEXO sports one of the most attractive valuations among Canadian cannabis companies. Its shares trade at less than seven times trailing-12-month sales.
3. Tilray
Tilray (NASDAQ: TLRY) recently closed its merger with Aphria to create, in its words, "the world's largest global cannabis company." The company ranks as a market leader in Canada's adult-use market as well as Germany's medical cannabis market.
Both Tilray and Aphria generated positive adjusted EBITDA in their most recent quarter prior to the merger. However, Aphria (which was the dominant player in the transaction) saw its revenue fall compared to the previous quarter.
The "new" Tilray already has a presence in the U.S. market with hemp foods maker Manitoba Harvest and craft beer maker SweetWater Brewery. It won't be surprising if the company makes additional acquisitions to position itself for a potential entrance into the U.S. cannabis market when federally permissible.
4. OrganiGram Holdings
Unlike the top three companies on the list, OrganiGram Holdings (NASDAQ: OGI) doesn't have significant operations outside of Canada yet. However, OrganiGram has been successful in the Canadian adult-use market and is beefing up its position in the Cannabis 2.0 market with its acquisition of The Edibles and Infusions Corporation.
Admittedly, OrganiGram has been through a tough season. Its revenue fell in the second quarter in part due to COVID-19-related issues. Greg Engel recently stepped down as the company's CEO.
However, the stock trades at around nine times sales -- a bargain compared to many of its peers. OrganiGram also has a big partner, British American Tobacco, which owns close to 20% of the company. This relationship could open up new opportunities for OrganiGram going forward.
5. Cronos Group
Cronos Group (NASDAQ: CRON) is another Canadian cannabis producer with a connection to a tobacco giant: Altria owns 45% of Cronos. The big investment by Altria gave Cronos a nice cash stockpile to use in expanding.
Thanks to its 2019 acquisition of Lord Jones, Cronos has a strong presence in the U.S. CBD products market. It also has another key partnership with U.S.-based Ginkgo Bioworks to develop cannabinoids using fermentation processes.
However, Cronos isn't anywhere close to profitability yet. It isn't even moving in the right direction to generate positive adjusted EBITDA.
6. Sundial Growers
Sundial Growers (NASDAQ: SNDL) vaulted into the limelight earlier this year thanks mainly to the Reddit community. The Canadian pot stock skyrocketed more than 500% at one point before giving up much of its gain.
The chief problem for Sundial is that its sales continue to decline. In its latest quarter, the company reported that its revenue slid 29% year over year and 30% quarter over quarter. However, Sundial posted positive adjusted EBITDA thanks to its investments.
Investing in other cannabis companies could enable Sundial to be successful over the long run. However, those investments come at a steep price for shareholders: The cash used for investing comes from stock offerings that dilute the value of existing shares.
7. Aurora Cannabis
Aurora Cannabis (NYSE: ACB) comes in last on the ranking of Robinhood marijuana stocks primarily because it appears to be heading in the wrong direction on several fronts. The company's revenue fell 25% year over year in its latest quarter. Aurora yet again reported a huge net loss.
Most importantly, Aurora isn't on a clear path to profitability. This has forced the company to dilute its shares to raise additional cash more frequently than most, if not all, of its peers.
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 – 15 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
Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Brands and OrganiGram Holdings. The Motley Fool recommends HEXO Corp. 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 Aurora Cannabis (NYSE: ACB) comes in last on the ranking of Robinhood marijuana stocks primarily because it appears to be heading in the wrong direction on several fronts. The company expects to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during the second half of its fiscal year 2022, which ends on March 31, 2022. It won't be surprising if the company makes additional acquisitions to position itself for a potential entrance into the U.S. cannabis market when federally permissible. | Aurora Cannabis Aurora Cannabis (NYSE: ACB) comes in last on the ranking of Robinhood marijuana stocks primarily because it appears to be heading in the wrong direction on several fronts. Canopy Growth Canopy Growth (NASDAQ: CGC) takes the top spot among the popular Robinhood marijuana stocks for three key reasons. It projects positive operating cash flow for full-year fiscal 2023 and positive free cash flow for full-year fiscal 2024. | Aurora Cannabis Aurora Cannabis (NYSE: ACB) comes in last on the ranking of Robinhood marijuana stocks primarily because it appears to be heading in the wrong direction on several fronts. 1 market share in Quebec's adult-use cannabis market as well as the leading national market share in Canada for cannabis beverages. The company ranks as a market leader in Canada's adult-use market as well as Germany's medical cannabis market. | Aurora Cannabis Aurora Cannabis (NYSE: ACB) comes in last on the ranking of Robinhood marijuana stocks primarily because it appears to be heading in the wrong direction on several fronts. Of the 100 most widely held stocks on Robinhood, seven of them are pot stocks. Third, Canopy is in the best position in the huge U.S. market. |
36783.0 | 2021-05-20 00:00:00 UTC | The 1 Stock I'd Buy Right Now | ACB | https://www.nasdaq.com/articles/the-1-stock-id-buy-right-now-2021-05-20 | nan | nan | While the world still fights the coronavirus crisis, the pandemic-induced marijuana boom continues. After cannabis was declared an "essential item" in the U.S., sales at many cannabis companies spiked. The U.S. marijuana industry keeps flourishing, even with a limited legal market. Only a few states have legalized marijuana, while it remains illegal federally. But that hasn't stopped cannabis companies from showing extraordinary performance this year, thanks to pandemic tailwinds and the fact that ever more states are legalizing marijuana.
This is evident from Massachusetts-based Curaleaf Holdings' (OTC: CURLF) first-quarter 2021 performance, reported on May 10. Revenue soared again, bringing another quarter of positive earnings before income, tax, depreciation, and amortization (EBITDA). Let's dive right into its results for Q1, which ended March 31, and determine why this is one stock worth buying right now.
Image source: Getty Images.
First-quarter revenue growth was strong
Over the past 12 months, Curaleaf's stock has gained 144%, outpacing the industry benchmark, the Horizons Marijuana Life Sciences ETF, and its gain of 70%. The company performed well in all quarters of 2020. Its recent Q1 2021 earnings were even better.
Revenue grew 170% year over year to $260 million in the quarter, thanks to a jump in both retail and wholesale sales. Organic growth across all existing stores and contributions from six new stores across Florida, Maine, and Pennsylvania in Q1 brought in a 231% surge in retail revenue, to $188 million. Curaleaf also gives credit to a spurt of revenue from Arizona after recreational marijuana became legal there in January 2021.
A smart company
A company's ability to survive and thrive in an evolving industry can be determined in part by how it utilizes its capital resources in making strategic acquisitions. This is evident from the mistakes Curaleaf's Canadian counterpart Aurora Cannabis made when it haphazardly spent on acquisitions, putting itself in a difficult financial position.
Meanwhile, Curaleaf's wise growth strategies in making timely acquisitions have borne fruit. Curaleaf acquired cannabis oil brand Select from Cura Partners in February for $948.8 million. The strength of the Select brand in core western U.S. markets, and expansion of the brand in new central and northeastern markets, fueled the company's wholesale revenue growth of 254% to $72 million from the year-ago period. Curaleaf also launched some new products under the brand during the quarter. These new entrants include Select Squeeze, A tetrahydrocannabinol (THC)-infused beverage enhancer; Select Essentials, a high-potency oil with terpenes; and Select Fresh, a premium distillate oil with fruit flavors.
In 2020, Curaleaf also completed acquisitions of many other cannabis-product manufacturers and dispensaries across the country, including Curaleaf NJ, Arrow, MEOT, Remedy, Blue Kudu, and Alternative Therapies Group.
These acquisitions and innovative products could continue driving revenue and positive EBITDA for 2021 and beyond. Consistent positive EBITDA shows a company's ability to handle its operating expenses, while net profit determines its actual earnings after all the deductions. Curaleaf's selling, general, and administrative expenses (SG&A), minus non-recurring items, fell to 29% of total revenue from 36% in the year-ago period. This contributed to a whopping 213% year-over-year increase in adjusted EBITDA to $63 million.
High hopes for 2021 and beyond
Marijuana legalization at the state level is ramping up. Curaleaf opened four new stores in Illinois and Pennsylvania on March 31, bringing its total dispensaries across the nation to 106. The company holds an additional 32 licenses to expand its national footprint this year.
Recently, New Jersey and New York legalized recreational cannabis. The company expects to earn about $2.1 billion and $5 billion in sales, respectively, from these states each year. Management believes the company has a strong footing in the medical cannabis segment in both states, which will be beneficial in the long run as the recreational markets expand.
Revenue could grow sequentially to be in the range of $305 million to $315 million in the second quarter, according to management. Curaleaf's leadership team, led by CEO Joe Bayern, sees potential for margin expansion in states like California, Colorado, Michigan, and Utah. The company is on track to achieve its full-year revenue target of $1.2 billion to $1.3 billion.
Bayern also stated in the press release that the company is working on achieving "positive net income and positive operating cash flows in the back half of 2021." If Curaleaf continues growing revenue and positive EBITDA at this rate, I don't doubt it will hit its target.
Curaleaf has shown another solid quarter of revenue growth, consistent positive EBITDA, and smart growth strategies for the year to bring in profits. These are all the reasons I need to buy this pot stock right now.
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 – 15 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 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. | Consistent positive EBITDA shows a company's ability to handle its operating expenses, while net profit determines its actual earnings after all the deductions. Management believes the company has a strong footing in the medical cannabis segment in both states, which will be beneficial in the long run as the recreational markets expand. Curaleaf's leadership team, led by CEO Joe Bayern, sees potential for margin expansion in states like California, Colorado, Michigan, and Utah. | Consistent positive EBITDA shows a company's ability to handle its operating expenses, while net profit determines its actual earnings after all the deductions. If Curaleaf continues growing revenue and positive EBITDA at this rate, I don't doubt it will hit its target. Curaleaf has shown another solid quarter of revenue growth, consistent positive EBITDA, and smart growth strategies for the year to bring in profits. | But that hasn't stopped cannabis companies from showing extraordinary performance this year, thanks to pandemic tailwinds and the fact that ever more states are legalizing marijuana. Curaleaf has shown another solid quarter of revenue growth, consistent positive EBITDA, and smart growth strategies for the year to bring in profits. Cannabis legalization is sweeping over North America – 15 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. | Curaleaf opened four new stores in Illinois and Pennsylvania on March 31, bringing its total dispensaries across the nation to 106. Curaleaf has shown another solid quarter of revenue growth, consistent positive EBITDA, and smart growth strategies for the year to bring in profits. And make no mistake – it is coming. |
36784.0 | 2021-05-19 00:00:00 UTC | How to Buy Cannabis Stocks During a Bear Market | ACB | https://www.nasdaq.com/articles/how-to-buy-cannabis-stocks-during-a-bear-market-2021-05-19 | nan | nan | With the economic jitters over the last few weeks, investors everywhere are looking over their shoulders for the shadow of a looming bear market. But, even if the market starts to dip consistently, long-term success is still possible with diligent and consistent buying -- assuming you pick the stocks that will perform best over time, that is.
When it comes to cannabis stocks, it's hard enough to pick winners when the market is roaring. And with legalization of cannabis proceeding in the U.S., there will still be quite a lot of revenue growth potential regardless of how the market is behaving. So, today I'll be offering three tips that will help you to keep investing in the cannabis industry successfully, even during a market downturn.
Image source: Getty Images.
1. Consider companies that pay a dividend
Companies that pay dividends often prove to be more steadfast than those that don't. In short, businesses that have the financial strength to provide habitual payouts to investors are perpetually proving their worth in the form of cold hard cash. And, since the market hates when dividends get cut, dividend payers tend to keep on paying out for as long as they can, providing investors with tangible results regardless of volatility.
While there aren't too many companies in the cannabis industry that are financially healthy enough to pay a dividend, there are a few that do, and that makes them worth paying attention to during a contraction. Innovative Industrial Properties (NYSE: IIPR) and Scotts Miracle-Gro (NYSE: SMG) are two examples worth noting.
Innovative Industrial buys medicinal cannabis cultivation floorspace and then rents it back to the previous owner, acting as a landlord, whereas Scotts Miracle-Gro sells garden equipment and fertilizers to small-time and commercial cultivators alike. Neither has a dividend that will make you rich -- Innovative Industrial's yield is about 2.8% and Scotts Miracle-Gro's is just over 1% -- but their payouts will likely cushion their stock prices a bit.
2. Prioritize stocks with sufficient cash and cash flow
Companies without much free cash flow or much cash on hand are especially vulnerable to bear markets. If it's necessary to raise funds by issuing new stock, cash-poor companies will struggle to do so at an attractive price, especially if the cannabis industry is hit harder than others in a downturn. So smart management teams will likely defer any stock offerings until prices have stabilized or increased. This means that they may be forced to take on new debt to continue expanding their operations at the same pace as before.
In contrast, companies with positive and growing free cash flow, like Innovative Industrial Properties and Ayr Wellness (OTC: AYRW.F), are less likely to run into this problem. Free cash flows that are growing steadily over time tend to give the market confidence that a stock's finances are sound, which leads to better performance. If the market conditions become difficult, these companies can still expand using their cash on hand, buttressed by their profitable operations.
3. Focus on quality and avoid speculative buys
It's always good advice to buy quality stocks, but investors often need to pay for the privilege. While there's a time and a place for investing in oversold, indebted, or unprofitable companies, during a bear market is probably not it. That's especially true in the context of the cannabis industry, where there are quite a few businesses that are on a long road to profitability that they may not ever reach, like Aurora Cannabis.
Once a company is weighed down by debt and faced with falling share prices during a correction or a bear market, its management's field of options to raise cash becomes dramatically constrained. Eventually, bankruptcy may become a reality.
On the other hand, it's hard to go wrong with a firmly profitable business that's growing at a sustainable pace as a result of targeting attractive market segments and executing plans efficiently. For cannabis stocks, there is an important caveat when it comes to evaluating "quality": Look for competitors that are growing based on the non-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Many cannabis cultivators include the adjusted figures in their financial reporting, which is calculated with the help of accounting allowances to minimize the effect of swings in cannabis prices. In a bear market, the difference could be palpable, so stick to the stocks where management can demonstrate profitability and earnings growth without any extra slack from accounting tricks.
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 – 15 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
Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ayr Wellness, Innovative Industrial Properties, and Scotts Miracle-Gro. 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. | Once a company is weighed down by debt and faced with falling share prices during a correction or a bear market, its management's field of options to raise cash becomes dramatically constrained. On the other hand, it's hard to go wrong with a firmly profitable business that's growing at a sustainable pace as a result of targeting attractive market segments and executing plans efficiently. For cannabis stocks, there is an important caveat when it comes to evaluating "quality": Look for competitors that are growing based on the non-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). | Prioritize stocks with sufficient cash and cash flow Companies without much free cash flow or much cash on hand are especially vulnerable to bear markets. In contrast, companies with positive and growing free cash flow, like Innovative Industrial Properties and Ayr Wellness (OTC: AYRW.F), are less likely to run into this problem. The Motley Fool owns shares of and recommends Ayr Wellness, Innovative Industrial Properties, and Scotts Miracle-Gro. | While there aren't too many companies in the cannabis industry that are financially healthy enough to pay a dividend, there are a few that do, and that makes them worth paying attention to during a contraction. Prioritize stocks with sufficient cash and cash flow Companies without much free cash flow or much cash on hand are especially vulnerable to bear markets. If it's necessary to raise funds by issuing new stock, cash-poor companies will struggle to do so at an attractive price, especially if the cannabis industry is hit harder than others in a downturn. | So, today I'll be offering three tips that will help you to keep investing in the cannabis industry successfully, even during a market downturn. Neither has a dividend that will make you rich -- Innovative Industrial's yield is about 2.8% and Scotts Miracle-Gro's is just over 1% -- but their payouts will likely cushion their stock prices a bit. In contrast, companies with positive and growing free cash flow, like Innovative Industrial Properties and Ayr Wellness (OTC: AYRW.F), are less likely to run into this problem. |
36785.0 | 2021-05-18 00:00:00 UTC | How Sundial Growers Trounced Aurora Cannabis in Their Latest Earnings Updates | ACB | https://www.nasdaq.com/articles/how-sundial-growers-trounced-aurora-cannabis-in-their-latest-earnings-updates-2021-05-18 | nan | nan | Aurora Cannabis (NYSE: ACB) has ranked among the most widely followed pot stocks for years. However, there's a rising star that has largely eclipsed Aurora this year -- Sundial Growers (NASDAQ: SNDL). Thanks in large part to the Reddit community, Sundial jumped into the center of attention for marijuana-focused investors several months ago.
However, Sundial isn't just beating Aurora when it comes to grabbing the spotlight these days. Here's how Sundial trounced Aurora in their latest earnings updates.
Image source: Getty Images.
Sundial's surprise
Aurora Cannabis has promised for a long time that it's on a solid path to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This promise still hasn't been met. The company reported an adjusted EBITDA loss of 24 million in Canadian dollars in its quarterly update last week.
CFO Glen Ibbott stated in Aurora's fiscal 2021 third-quarter conference call that the company is "confident" that it will achieve a positive EBITDA run rate within the next 18 months. You couldn't blame investors for being skeptical after the company's past performance of overpromising and underdelivering.
Meanwhile, Sundial Growers showed that it was more action than talk with its first-quarter results reported earlier this month. The Canadian cannabis producer gave investors a pleasant surprise, posting positive adjusted EBITDA for the first time ever of CA$3.3 million.
Sure, Sundial's feat was made possible primarily by its investment gains and income from cannabis investments. However, there's an old saying: "Don't look a gift horse in the mouth." The bottom line is that Sundial delivered on what Aurora has only been promising.
Bleakness on both sides
There was a lot to dislike, though, about both companies' quarterly updates. Aside from a few bright spots, the results looked bleak for both Aurora and Sundial.
Of especially serious concern, Aurora and Sundial reported declining revenue. Aurora's revenue fell 25% year over year to CA$55.2 million. Sundial's gross revenue slid 29% year over year to CA$11.7 million.
The Canadian adult-use marijuana market continues to present major headwinds for all companies. The COVID-19 pandemic hurt retail sales. At the same time, provinces reduced their inventory levels.
Both cannabis producers also posted huge losses in their latest quarters. Aurora announced a net loss from continuing operations of CA$165.7 million, compared to a loss of CA$133.5 million in the prior-year period. Sundial's net loss from continuing operations totaled CA$134.4 million in Q1. In the prior-year period, Sundial reported a net loss of CA$37.9 million.
Similar paths
Aurora and Sundial are on strikingly similar paths. Both companies have made significant spending cuts and continue to focus on operational improvement. Aurora plans to slash between CA$60 million and CA$80 million in annual costs over the next 18 months.
Both companies are also focused on investing further in cannabis opportunities. As mentioned earlier, Sundial's positive adjusted EBITDA was due mainly to its investments. Aurora appears to be preparing to invest more as well. CEO Miguel Martin specifically alluded to "opportunistic M&A [mergers and acquisitions], particularly in the U.S." The company plans to file a prospectus for a $300 million stock offering that could be used to fund acquisitions.
Neither pot stock looks attractive, in my view, with their continued losses and revenue declines. However, Sundial appears to at least be moving in the right direction. It's a different story for Aurora.
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 – 15 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
Keith Speights 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 (NYSE: ACB) has ranked among the most widely followed pot stocks for years. Sundial's surprise Aurora Cannabis has promised for a long time that it's on a solid path to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). CFO Glen Ibbott stated in Aurora's fiscal 2021 third-quarter conference call that the company is "confident" that it will achieve a positive EBITDA run rate within the next 18 months. | Aurora Cannabis (NYSE: ACB) has ranked among the most widely followed pot stocks for years. The Canadian cannabis producer gave investors a pleasant surprise, posting positive adjusted EBITDA for the first time ever of CA$3.3 million. Aurora announced a net loss from continuing operations of CA$165.7 million, compared to a loss of CA$133.5 million in the prior-year period. | Aurora Cannabis (NYSE: ACB) has ranked among the most widely followed pot stocks for years. Sundial's surprise Aurora Cannabis has promised for a long time that it's on a solid path to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Aurora announced a net loss from continuing operations of CA$165.7 million, compared to a loss of CA$133.5 million in the prior-year period. | Aurora Cannabis (NYSE: ACB) has ranked among the most widely followed pot stocks for years. The company reported an adjusted EBITDA loss of 24 million in Canadian dollars in its quarterly update last week. Aurora's revenue fell 25% year over year to CA$55.2 million. |
36786.0 | 2021-05-17 00:00:00 UTC | Aurora Cannabis: The Light Keeps on Fading Into the Distance | ACB | https://www.nasdaq.com/articles/aurora-cannabis%3A-the-light-keeps-on-fading-into-the-distance-2021-05-17 | nan | nan | Heading into Aurora Cannabis’ (ACB) March quarter earnings (F3Q), with conditions known to be rough in the Canadian cannabis market, Needham’s Matt McGinley had “low expectations.” The analyst did not anticipate the company would show any “operating and cash flow improvements” in the quarter.
However, turns out McGinley was being a tad optimistic.
“This quarter was quite a bit worse than we assumed, with revenue (18.5)% QoQ, adj. EBITDA declining to $(24.0)mn or (44%) of sales, and $(70mn) in FCF losses,” the 5-star analyst said. “The only business line that held up in 3Q was the Canadian medical business with flat QoQ revenue, while int'l medical, US CBD, and the crucial Canadian adult-use markets all posted substantial sequential declines."
So, what’s going on at Aurora? McGinley has his own take on “the big picture.”
Although for the last 7 quarters Aurora has never generated more than $70 million in revenue, as production underwent “substantial restructuring” and G&A (general and administrative) expenses were slashed to $42.5 million, McGinley felt that if the company could keep GM (gross margin) rates over 50%, all it would need is revenue of $85 million “to reach EBITDA breakeven.”
However, at $55 million, revenue was not even close to that figure, while GM only came in the 40%'s.
“We aren't even sure it is in the 40%'s,” McGinley further said, “Because every quarter there are inventory write-offs and returns that we'd like to think are 1x, but don't really seem to be.”
What’s more, the adult-use market is proving to be a bit of a struggle for Aurora, and due to COVID, the much talked about portfolio reset “hasn't reset,” whilst provincial distributors are also much more “discerning with slotting.” Additionally, Canadian marketing restrictions make it very difficult to gain brand traction.
Against this backdrop and the ongoing restructuring process, EBITDA hasn't really gotten any better. Since F18, FCF losses have reached $1.8 billion, and in F21, Aurora lost $266 million.
Here is where Aurora’s famous share dilution tactics come into play.
“This has been funded with equity issuance where the share count has gone up by 5x since F18,” McGinley wrapped up, “And ACB is reloading with another US$300mn ATM program (just in case...)”
Down to the nitty gritty, what does it all mean for investors? McGinley rates ACB shares an Underperform (i.e. Sell) without suggesting a price target. (To watch McGinley’s track record, click here)
The rest of the Street’s view hardly paints a brighter picture. The stock’s Moderate Sell consensus rating is based on 6 Sells and 4 Holds. The analysts expect the share price to stay rang-bound in the coming months, given the average price target currently stands at $7.14. (See Aurora stock analysis on TipRanks)
To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Heading into Aurora Cannabis’ (ACB) March quarter earnings (F3Q), with conditions known to be rough in the Canadian cannabis market, Needham’s Matt McGinley had “low expectations.” The analyst did not anticipate the company would show any “operating and cash flow improvements” in the quarter. “This has been funded with equity issuance where the share count has gone up by 5x since F18,” McGinley wrapped up, “And ACB is reloading with another US$300mn ATM program (just in case...)” Down to the nitty gritty, what does it all mean for investors? McGinley rates ACB shares an Underperform (i.e. Sell) without suggesting a price target. | McGinley rates ACB shares an Underperform (i.e. Sell) without suggesting a price target. Heading into Aurora Cannabis’ (ACB) March quarter earnings (F3Q), with conditions known to be rough in the Canadian cannabis market, Needham’s Matt McGinley had “low expectations.” The analyst did not anticipate the company would show any “operating and cash flow improvements” in the quarter. “This has been funded with equity issuance where the share count has gone up by 5x since F18,” McGinley wrapped up, “And ACB is reloading with another US$300mn ATM program (just in case...)” Down to the nitty gritty, what does it all mean for investors? | Heading into Aurora Cannabis’ (ACB) March quarter earnings (F3Q), with conditions known to be rough in the Canadian cannabis market, Needham’s Matt McGinley had “low expectations.” The analyst did not anticipate the company would show any “operating and cash flow improvements” in the quarter. “This has been funded with equity issuance where the share count has gone up by 5x since F18,” McGinley wrapped up, “And ACB is reloading with another US$300mn ATM program (just in case...)” Down to the nitty gritty, what does it all mean for investors? McGinley rates ACB shares an Underperform (i.e. Sell) without suggesting a price target. | McGinley rates ACB shares an Underperform (i.e. Sell) without suggesting a price target. Heading into Aurora Cannabis’ (ACB) March quarter earnings (F3Q), with conditions known to be rough in the Canadian cannabis market, Needham’s Matt McGinley had “low expectations.” The analyst did not anticipate the company would show any “operating and cash flow improvements” in the quarter. “This has been funded with equity issuance where the share count has gone up by 5x since F18,” McGinley wrapped up, “And ACB is reloading with another US$300mn ATM program (just in case...)” Down to the nitty gritty, what does it all mean for investors? |
36787.0 | 2021-05-14 00:00:00 UTC | CANADA STOCKS - TSX rises 1.21% to 19,366.69 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-1.21-to-19366.69-2021-05-14 | nan | nan | * The Toronto Stock Exchange's TSX rises 1.21 percent to 19,366.69
* Leading the index were SNC-Lavalin Group Inc , up 16.0%, Village Farms International Inc VFF.TO, up 9.8%, and Denison Mines Corp DML.TO, higher by 9.4%.
* Lagging shares were Aurora Cannabis Inc ACB.TO, down 7.2%, Centerra Gold Inc CG.TO, down 3.8%, and Canadian National Railway Co CNR.TO, lower by 3.7%.
* On the TSX 194 issues rose and 35 fell as a 5.5-to-1 ratio favored advancers. There were 25 new highs and no new lows, with total volume of 225.7 million shares.
* The most heavily traded shares by volume were Enbridge Inc ENB.TO, Manulife Financial Corp MFC.TO and Cenovus Energy Inc CVE.TO.
* The TSX's energy group .SPTTEN rose 3.32 points, or 2.7%, while the financials sector .SPTTFS climbed 4.80 points, or 1.3%.
* West Texas Intermediate crude futures CLc1 rose 2.65%, or $1.69, to $65.51 a barrel. Brent crude LCOc1 rose 2.68%, or $1.8, to $68.85 O/R
* The TSX is up 11.1% for the year.
This summary was machine generated May 14 at 21:03 GMT.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 7.2%, Centerra Gold Inc CG.TO, down 3.8%, and Canadian National Railway Co CNR.TO, lower by 3.7%. * The Toronto Stock Exchange's TSX rises 1.21 percent to 19,366.69 * Leading the index were SNC-Lavalin Group Inc , up 16.0%, Village Farms International Inc VFF.TO, up 9.8%, and Denison Mines Corp DML.TO, higher by 9.4%. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Manulife Financial Corp MFC.TO and Cenovus Energy Inc CVE.TO. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 7.2%, Centerra Gold Inc CG.TO, down 3.8%, and Canadian National Railway Co CNR.TO, lower by 3.7%. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Manulife Financial Corp MFC.TO and Cenovus Energy Inc CVE.TO. * The TSX's energy group .SPTTEN rose 3.32 points, or 2.7%, while the financials sector .SPTTFS climbed 4.80 points, or 1.3%. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 7.2%, Centerra Gold Inc CG.TO, down 3.8%, and Canadian National Railway Co CNR.TO, lower by 3.7%. * The Toronto Stock Exchange's TSX rises 1.21 percent to 19,366.69 * Leading the index were SNC-Lavalin Group Inc , up 16.0%, Village Farms International Inc VFF.TO, up 9.8%, and Denison Mines Corp DML.TO, higher by 9.4%. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Manulife Financial Corp MFC.TO and Cenovus Energy Inc CVE.TO. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 7.2%, Centerra Gold Inc CG.TO, down 3.8%, and Canadian National Railway Co CNR.TO, lower by 3.7%. * The Toronto Stock Exchange's TSX rises 1.21 percent to 19,366.69 * Leading the index were SNC-Lavalin Group Inc , up 16.0%, Village Farms International Inc VFF.TO, up 9.8%, and Denison Mines Corp DML.TO, higher by 9.4%. * The most heavily traded shares by volume were Enbridge Inc ENB.TO, Manulife Financial Corp MFC.TO and Cenovus Energy Inc CVE.TO. |
36788.0 | 2021-05-14 00:00:00 UTC | Oversold Conditions For Aurora Cannabis (ACB) | ACB | https://www.nasdaq.com/articles/oversold-conditions-for-aurora-cannabis-acb-2021-05-14 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of Aurora Cannabis Inc (Symbol: ACB) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $6.59 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 57.4. A bullish investor could look at ACB's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACB shares:
Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $19.68 as the 52 week high point — that compares with a last trade of $6.86.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of Aurora Cannabis Inc (Symbol: ACB) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $6.59 per share. A bullish investor could look at ACB's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACB shares: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $19.68 as the 52 week high point — that compares with a last trade of $6.86. | A bullish investor could look at ACB's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACB shares: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $19.68 as the 52 week high point — that compares with a last trade of $6.86. In trading on Friday, shares of Aurora Cannabis Inc (Symbol: ACB) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $6.59 per share. | In trading on Friday, shares of Aurora Cannabis Inc (Symbol: ACB) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $6.59 per share. A bullish investor could look at ACB's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACB shares: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $19.68 as the 52 week high point — that compares with a last trade of $6.86. | In trading on Friday, shares of Aurora Cannabis Inc (Symbol: ACB) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $6.59 per share. A bullish investor could look at ACB's 29.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ACB shares: Looking at the chart above, ACB's low point in its 52 week range is $3.71 per share, with $19.68 as the 52 week high point — that compares with a last trade of $6.86. |
36789.0 | 2021-05-14 00:00:00 UTC | Why Aurora Cannabis Stock Sank Friday | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-sank-friday-2021-05-14 | nan | nan | What happened
Canadian cannabis company Aurora Cannabis (NYSE: ACB) reported fiscal third-quarter 2021 results yesterday, and investors are reacting by selling off the stock today. As of 10:05 a.m. EDT, Aurora shares were down more than 6%, after an initial 10% drop to start Friday's session.
So what
Financial results were down from the prior-year period, similar to other Canadian marijuana companies. Pandemic-related restrictions have affected sales for the entire industry.
But Aurora also included an item at the bottom of the news release that may have surprised investors. Though the company highlighted the fact that its balance sheet remains strong with about $525 million in Canadian dollars ($432.4 million) in cash on hand as of May 12, it announced that it will file to raise another $300 million in U.S. dollars through an equity offering.
Image source: Getty Images.
Now what
Aurora reported that total net revenue decreased 25% in its fiscal third quarter, compared to the prior-year period. Cannabis net revenue dropped 21%, driven down by a 53% plunge for its consumer products. Medical cannabis, however, saw a 17% jump in sales year over year.
CEO Miguel Martin said the relatively strong performance in Canadian medical cannabis sales was crucial as it "should translate into global adult-use success in the future as medical regimes evolve to adult-use markets."
But investors are likely focused today on the announcement of the filing for additional share sales. The at-the-market (ATM) offering is intended to increase flexibility, according to the company, adding "it is not expected to need to access the ATM facility without an accretive use of proceeds." The company also said it will move its U.S. listing from the New York Stock Exchange to the Nasdaq exchange as of May 24, seeking cost efficiencies.
But in combination with continued pressure on the business itself, shareholders aren't taking kindly today to the prospect of additional share dilution, which is likely what is knocking shares down today.
10 stocks we like better than Aurora Cannabis Inc.
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Howard Smith 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. | What happened Canadian cannabis company Aurora Cannabis (NYSE: ACB) reported fiscal third-quarter 2021 results yesterday, and investors are reacting by selling off the stock today. Now what Aurora reported that total net revenue decreased 25% in its fiscal third quarter, compared to the prior-year period. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | What happened Canadian cannabis company Aurora Cannabis (NYSE: ACB) reported fiscal third-quarter 2021 results yesterday, and investors are reacting by selling off the stock today. Cannabis net revenue dropped 21%, driven down by a 53% plunge for its consumer products. CEO Miguel Martin said the relatively strong performance in Canadian medical cannabis sales was crucial as it "should translate into global adult-use success in the future as medical regimes evolve to adult-use markets." | What happened Canadian cannabis company Aurora Cannabis (NYSE: ACB) reported fiscal third-quarter 2021 results yesterday, and investors are reacting by selling off the stock today. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! See the 10 stocks *Stock Advisor returns as of May 11, 2021 Howard Smith has no position in any of the stocks mentioned. | What happened Canadian cannabis company Aurora Cannabis (NYSE: ACB) reported fiscal third-quarter 2021 results yesterday, and investors are reacting by selling off the stock today. But investors are likely focused today on the announcement of the filing for additional share sales. 10 stocks we like better than Aurora Cannabis Inc. |
36790.0 | 2021-05-14 00:00:00 UTC | CANADA STOCKS-TSX rises on materials sector strength | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-on-materials-sector-strength-2021-05-14 | nan | nan | May 14 (Reuters) - Canada's main stock index rose on Friday supported by material stocks, as gold prices gained, with the dollar pulling back from one-week highs after U.S. Federal Reserve officials downplayed inflation concerns.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 1.0% as gold futures GCc1 rose 0.8% to $1,837.4 an ounce. GOL/
* At 9:38 a.m. ET (13:38 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 93.43 points, or 0.49%, at 19,229.24.
* Canadian factory sales rose 3.5% in March from February, led by motor vehicle, petroleum and coal, and food product industries, Statistics Canada said.
* Canadian National Railway Co CNR.TO fell 3.3% after it beat Canadian Pacific Railway Ltd CP.TO with a $33.6 billion acquisition offer for U.S. railway operator Kansas City Southern KSU.N.
* The energy sector .SPTTEN climbed 1.9% as U.S. crude CLc1 prices were up 1.6% a barrel, while Brent crude LCOc1 added 1.6%. O/R
* The financials sector .SPTTFS gained 0.6%, while the industrials sector .GSPTTIN fell 0.5%.
* On the TSX, 175 issues were higher, while 47 issues declined for a 3.72-to-1 ratio favouring gainers, with 19.79 million shares traded.
* The largest percentage gainers on the TSX were SNC Lavalin SNC.TO, which jumped 11.5% after strong quarterly results.
* AcuityAds Holdings Inc AT.TO was the second largest percentage gainer, rising 6.4%.
* Aurora Cannabis ACB.TO fell 7.8%, the most on the TSX, after disappointing quarterly results.
* The second biggest decliner was Aritzia Inc ATZ.TO, down 4.7%.
* The most heavily traded shares by volume were Manulife Financial Corp MFC.TO, Enbridge Inc ENB.TO and Tetra Bio-Pharma TBP.TO.
* The TSX posted 13 new 52-week highs and no new low.
* Across all Canadian issues there were 29 new 52-week highs and 5 new lows, with total volume of 34.84 million shares.
(REporting by Shivani Kumaresan in Bengaluru; Editing by Shounak Dasgupta)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780))
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.TO fell 7.8%, the most on the TSX, after disappointing quarterly results. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 1.0% as gold futures GCc1 rose 0.8% to $1,837.4 an ounce. * Canadian factory sales rose 3.5% in March from February, led by motor vehicle, petroleum and coal, and food product industries, Statistics Canada said. | * Aurora Cannabis ACB.TO fell 7.8%, the most on the TSX, after disappointing quarterly results. May 14 (Reuters) - Canada's main stock index rose on Friday supported by material stocks, as gold prices gained, with the dollar pulling back from one-week highs after U.S. Federal Reserve officials downplayed inflation concerns. O/R * The financials sector .SPTTFS gained 0.6%, while the industrials sector .GSPTTIN fell 0.5%. | * Aurora Cannabis ACB.TO fell 7.8%, the most on the TSX, after disappointing quarterly results. May 14 (Reuters) - Canada's main stock index rose on Friday supported by material stocks, as gold prices gained, with the dollar pulling back from one-week highs after U.S. Federal Reserve officials downplayed inflation concerns. * Canadian National Railway Co CNR.TO fell 3.3% after it beat Canadian Pacific Railway Ltd CP.TO with a $33.6 billion acquisition offer for U.S. railway operator Kansas City Southern KSU.N. | * Aurora Cannabis ACB.TO fell 7.8%, the most on the TSX, after disappointing quarterly results. * On the TSX, 175 issues were higher, while 47 issues declined for a 3.72-to-1 ratio favouring gainers, with 19.79 million shares traded. * The largest percentage gainers on the TSX were SNC Lavalin SNC.TO, which jumped 11.5% after strong quarterly results. |
36791.0 | 2021-05-14 00:00:00 UTC | CANADA STOCKS-TSX futures rise on higher gold prices | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-futures-rise-on-higher-gold-prices-2021-05-14 | nan | nan | May 14 (Reuters) - Futures for Canada's main stock index rose on Friday, as gold prices gained on a weaker U.S. dollar after U.S. Federal Reserve officials downplayed inflation concerns.
Spot gold XAU= was up 0.48% at $1,835.24 per ounce, while U.S. gold futures GCv1 gained 0.61% to $1,835.2. GOL/
June-quarter futures on the S&P/TSX index SXFc1 were up 0.33% at 7:00 a.m. ET.
Canada's manufacturing sales and wholesale trade data for March is due at 08:30 a.m. ET.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended 0.15% higher at 19,135.81 on Thursday. .TO
At 7:00 a.m. ET, Dow Jones Industrial Average e-mini futures 1YMc1 were up 0.46% and S&P 500 e-mini futures ESc1 had gained 0.62%. Nasdaq 100 e-mini futures NQc1 were up 1.02%. .N
TOP STORIES TOP/CAN
U.S. railway operator Kansas City Southern KSU.N said that it had accepted Canadian National Railway Co's CNR.TO $33.6 billion acquisition offer, upending a $29 billion deal with its competitor Canadian Pacific Railway Ltd CP.TO.
Aurora Cannabis Inc ACB.TO, ACB.N said it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year.
Bank of Canada Governor Tiff Macklem said if the buoyant Canadian dollar continues to rise it could create headwinds for exports and business investment as well as affecting monetary policy.
ANALYST RESEARCH HIGHLIGHTS RCH/CA
Home Capital Group HCG.TO: BMO raises target price to C$40 from C$36
Aurora Cannabis Inc ACB.TO: MKM Partners cuts target price to C$6 from C$9
COMMODITIES AT 7:00 a.m. ET
Gold futures GCc2: $1,835.2; +0.61% GOL/
US crude CLc1: $64.53; +1.11% O/R
Brent crude LCOc1: $67.81; +1.13% O/R
U.S. ECONOMIC DATA DUE ON FRIDAY
0830 Import prices mm for Apr: Expected 0.6%; Prior 1.2%
0830 Export prices mm for Apr: Expected 0.6%; Prior 2.1%
0830 Import prices yy for Apr: Prior 6.9%
0830 Retail sales mm for Apr: Expected 1.0%; Prior 9.8%
0830 Retail sales ex-autos mm for Apr: Expected 0.7%; Prior 8.4%
0830 Retail ex gas/autos for Apr: Prior 8.2%
0830 Retail control for Apr: Expected -0.2%; Prior 6.9%
0830 Retail sales YoY for Apr: Prior 27.72%
0915 Industrial production mm for Apr: Expected 1.0%; Prior 1.4%
0915 Capacity utilization SA for Apr: Expected 75.0%; Prior 74.4%
0915 Manufacturing output mm for Apr: Expected 0.4%; Prior 2.7%
0915 Industrial production YoY for Apr : Prior 1.02%
1000 Business inventories mm for Mar: Expected 0.3%; Prior 0.5%
1000 Retail inventories ex-auto rev for Mar: Prior 0.6%
1000 U Mich Sentiment Preliminary for May: Expected 90.4; Prior 88.3
1000 U Mich Conditions Preliminary for May: Expected 99.6; Prior 97.2
1000 U Mich Expectations Preliminary for May: Expected 85.0; Prior 82.7
1000 U Mich 1 year inflation preliminary for May: Prior 3.4%
1000 U Mich 5-year inflation preliminary for May: Prior 2.7%
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report .TO
Canadian dollar and bonds report CAD/CA/
Reuters global stocks poll for Canada EQUITYPOLL1, EPOLL/CA
Canadian markets directory CANADA
($1= C$1.21)
(Reporting by Shivani Kumaresan in Bengaluru; Editing by Devika Syamnath)
((Shivani.Kumaresan@thomsonreuters.com; +1 646 223 8780;))
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.TO, ACB.N said it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Home Capital Group HCG.TO: BMO raises target price to C$40 from C$36 Aurora Cannabis Inc ACB.TO: MKM Partners cuts target price to C$6 from C$9 COMMODITIES AT 7:00 a.m. May 14 (Reuters) - Futures for Canada's main stock index rose on Friday, as gold prices gained on a weaker U.S. dollar after U.S. Federal Reserve officials downplayed inflation concerns. | Aurora Cannabis Inc ACB.TO, ACB.N said it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Home Capital Group HCG.TO: BMO raises target price to C$40 from C$36 Aurora Cannabis Inc ACB.TO: MKM Partners cuts target price to C$6 from C$9 COMMODITIES AT 7:00 a.m. May 14 (Reuters) - Futures for Canada's main stock index rose on Friday, as gold prices gained on a weaker U.S. dollar after U.S. Federal Reserve officials downplayed inflation concerns. | Aurora Cannabis Inc ACB.TO, ACB.N said it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Home Capital Group HCG.TO: BMO raises target price to C$40 from C$36 Aurora Cannabis Inc ACB.TO: MKM Partners cuts target price to C$6 from C$9 COMMODITIES AT 7:00 a.m. May 14 (Reuters) - Futures for Canada's main stock index rose on Friday, as gold prices gained on a weaker U.S. dollar after U.S. Federal Reserve officials downplayed inflation concerns. | Aurora Cannabis Inc ACB.TO, ACB.N said it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Home Capital Group HCG.TO: BMO raises target price to C$40 from C$36 Aurora Cannabis Inc ACB.TO: MKM Partners cuts target price to C$6 from C$9 COMMODITIES AT 7:00 a.m. May 14 (Reuters) - Futures for Canada's main stock index rose on Friday, as gold prices gained on a weaker U.S. dollar after U.S. Federal Reserve officials downplayed inflation concerns. |
36792.0 | 2021-05-14 00:00:00 UTC | Here's Just How Ugly Aurora Cannabis' Q3 Results Really Were | ACB | https://www.nasdaq.com/articles/heres-just-how-ugly-aurora-cannabis-q3-results-really-were-2021-05-14 | nan | nan | Some investors may have thought that Aurora Cannabis (NYSE: ACB) was ready for a strong rebound after Bank of America reinstated coverage of the stock in late April. But that bounce quickly fizzled. Others may have thought that the company's quarterly update would provide a spark. Don't count on it.
Aurora announced its fiscal 2021 third-quarter results after the market closed on Thursday. The Canadian marijuana stock plunged more than 10% in after-hours trading. Here's just how ugly Aurora's fiscal Q3 results really were.
Image source: Getty Images.
By the numbers
Aurora reported revenue in its fiscal third quarter of 55.2 million Canadian dollars, down 25% year over year. This result fell far short of the consensus revenue estimate of CA$68.25 million.
The cannabis producer's bottom line also deteriorated. Aurora announced a Q3 net loss from continuing operations of CA$165.7 million. In the prior-year period, its net loss totaled CA$133.5 million.
There was one area where Aurora did see some improvement, though. The company recorded an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of CA$24 million. While this wasn't impressive, it was at least better than the adjusted EBITDA loss of CA$49.6 million in the same quarter of 2020.
Behind the numbers
Aurora Cannabis CEO Miguel Martin acknowledged that there were "challenges in the Canadian adult-use segment." He wasn't exaggerating. The company's consumer cannabis net revenue sank 53% year over year to CA$18 million.
There were several reasons behind this huge drop. The COVID-19 pandemic continued to present a major headwind. Aurora's switch to a contract sales force was another major factor. It also didn't help that the company's cannabis edibles and value brand launched in the prior-year period, making the year-over-year comparison more difficult.
Martin understandably preferred to focus on Aurora's medical cannabis business. He said that Aurora "delivered the strongest performance in domestic medical and the best results in international medical cannabis of any Canadian LP [licensed producer] during the period."
Indeed, medical cannabis was a bright spot for the company. Aurora's medical cannabis net revenue jumped 17% year over year to $36.4 million. International sales soared 134% year over year.
Looking ahead
Investors can expect further cost-cutting. The company announced plans to slash CA$60 million to CA$80 million annually over the next 18 months. These cuts are on top of the roughly CA$300 million in annual savings Aurora has already achieved.
One way that Aurora will reduce costs in the near future is its move to list its shares on the Nasdaq instead of the New York Stock Exchange, effective May 24, 2021. Martin said, "Nasdaq represents a good fit for Aurora and this listing transfer will enable us to realize cost efficiencies as part of our efforts to deliver long-term value to shareholders."
Don't be surprised if Aurora looks to make additional acquisitions in the U.S. Martin noted that the company ended its fiscal Q3 with around CA$525 million in cash. He said that this cash position will "support organic growth as well as opportunistic M&A [mergers and acquisitions], particularly in the U.S."
There was also another hint that Aurora could be preparing for a U.S. deal. The company said that it plans to file a new prospectus supplement to pave the way for a $300 million at-the-market stock offering. Aurora stated that this filing "will provide maximum flexibility to pursue acquisitions going forward, including within the U.S."
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 – 15 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
Keith Speights 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. | Some investors may have thought that Aurora Cannabis (NYSE: ACB) was ready for a strong rebound after Bank of America reinstated coverage of the stock in late April. Martin said, "Nasdaq represents a good fit for Aurora and this listing transfer will enable us to realize cost efficiencies as part of our efforts to deliver long-term value to shareholders." Don't be surprised if Aurora looks to make additional acquisitions in the U.S. Martin noted that the company ended its fiscal Q3 with around CA$525 million in cash. | Some investors may have thought that Aurora Cannabis (NYSE: ACB) was ready for a strong rebound after Bank of America reinstated coverage of the stock in late April. The company's consumer cannabis net revenue sank 53% year over year to CA$18 million. Aurora's medical cannabis net revenue jumped 17% year over year to $36.4 million. | Some investors may have thought that Aurora Cannabis (NYSE: ACB) was ready for a strong rebound after Bank of America reinstated coverage of the stock in late April. The company's consumer cannabis net revenue sank 53% year over year to CA$18 million. Aurora's medical cannabis net revenue jumped 17% year over year to $36.4 million. | Some investors may have thought that Aurora Cannabis (NYSE: ACB) was ready for a strong rebound after Bank of America reinstated coverage of the stock in late April. Aurora's medical cannabis net revenue jumped 17% year over year to $36.4 million. The company announced plans to slash CA$60 million to CA$80 million annually over the next 18 months. |
36793.0 | 2021-05-13 00:00:00 UTC | Aurora Cannabis to move U.S. listing to Nasdaq | ACB | https://www.nasdaq.com/articles/aurora-cannabis-to-move-u.s.-listing-to-nasdaq-2021-05-13 | nan | nan | May 13 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.N said on Thursday it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year.
Its shares, currently listed on the New York Stock Exchange, fell nearly 9% in extended trading as it missed expectations for third-quarter revenue, hit by the impact of coronavirus-induced restrictions in Canada.
"This listing transfer will enable us to realize cost efficiencies as part of our efforts to deliver long-term value to shareholders," Chief Executive Officer Miguel Martin said in a statement.
Rivals Canopy Growth Corp WEED.TO, CGC.O and Aphria Inc also moved their U.S. listings to the Nasdaq in 2020, citing lower costs. Aphria delisted this year after its reverse merger with Nasdaq-listed Tilray TLRY.TO, TLRY.O.
Aurora's shares will start trading on the Nasdaq on May 25 under the ticker symbol "ACB."
(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya Soni)
((Arunima.Kumar@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. | May 13 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.N said on Thursday it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Aurora's shares will start trading on the Nasdaq on May 25 under the ticker symbol "ACB." Its shares, currently listed on the New York Stock Exchange, fell nearly 9% in extended trading as it missed expectations for third-quarter revenue, hit by the impact of coronavirus-induced restrictions in Canada. | May 13 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.N said on Thursday it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Aurora's shares will start trading on the Nasdaq on May 25 under the ticker symbol "ACB." Its shares, currently listed on the New York Stock Exchange, fell nearly 9% in extended trading as it missed expectations for third-quarter revenue, hit by the impact of coronavirus-induced restrictions in Canada. | May 13 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.N said on Thursday it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Aurora's shares will start trading on the Nasdaq on May 25 under the ticker symbol "ACB." Its shares, currently listed on the New York Stock Exchange, fell nearly 9% in extended trading as it missed expectations for third-quarter revenue, hit by the impact of coronavirus-induced restrictions in Canada. | May 13 (Reuters) - Aurora Cannabis Inc ACB.TO, ACB.N said on Thursday it would move its U.S. stock listing to the Nasdaq due to the exchange's "cost-effectiveness," following similar moves by rivals last year. Aurora's shares will start trading on the Nasdaq on May 25 under the ticker symbol "ACB." Its shares, currently listed on the New York Stock Exchange, fell nearly 9% in extended trading as it missed expectations for third-quarter revenue, hit by the impact of coronavirus-induced restrictions in Canada. |
36794.0 | 2021-05-13 00:00:00 UTC | Why Hexo, Canopy Growth, and Aurora Cannabis Stocks Are Dropping Today | ACB | https://www.nasdaq.com/articles/why-hexo-canopy-growth-and-aurora-cannabis-stocks-are-dropping-today-2021-05-13 | nan | nan | What happened
On a bright day for the stock market in general -- the S&P 500 is up a solid 1.5% -- marijuana stocks are wilting today. As of 2:35 p.m. EDT, three of the best-known names in the sector, Hexo (NYSE: HEXO), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NYSE: ACB), are down 3.1%, 3.6%, and 5.3%, respectively.
So what
Scan the newsfeeds today, and there's no bad news to be found. No negative press releases from any of the companies themselves. No downgrades from stock market analysts -- not so much as a lowered price target.
Image source: Getty Images.
Actually, the contrary is true. If there's any news of relevance to report today, it's that in the halls of Congress, two Republican lawmakers have just introduced a bill to legalize marijuana at the federal level, and to "protect banks that service state-legal cannabis business and ensure that military veterans are specifically permitted to use marijuana in compliance with state laws," reports MarijuanaMoment.net.
When viewed in conjunction with last month's news that Senate Majority Leader (and Democrat) Chuck Schumer has called "to end the federal prohibition on marijuana in this country," this certainly seems to suggest that there's now bipartisan support, and support in both bodies of Congress, for legalizing marijuana federally.
Now what
Why would this development translate into falling stock prices for cannabis stocks like Hexo, Canopy, and Aurora? It honestly makes no sense to me -- except for one thing.
Hope for a national marijuana legalization bill has been behind the surge in marijuana stock prices ever since then Democratic presidential and vice presidential candidates Joe Biden and Kamala Harris threw their support behind the idea in last year's campaign. It's the catalyst that investors have been hoping would lift their stocks higher. But if and when legalization happens, what then?
Then, the onus may fall upon Hexo, Canopy, and Aurora -- each of which sells cannabis legally in Canada today, but hasn't been able to make a profit off of it -- to explain why they can't make a profit off of legal marijuana in the United States, either.
In the end, the most important factor moving marijuana stocks may not be legalization -- but profits.
10 stocks we like better than Aurora Cannabis Inc.
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO Corp. 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. | As of 2:35 p.m. EDT, three of the best-known names in the sector, Hexo (NYSE: HEXO), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NYSE: ACB), are down 3.1%, 3.6%, and 5.3%, respectively. If there's any news of relevance to report today, it's that in the halls of Congress, two Republican lawmakers have just introduced a bill to legalize marijuana at the federal level, and to "protect banks that service state-legal cannabis business and ensure that military veterans are specifically permitted to use marijuana in compliance with state laws," reports MarijuanaMoment.net. When viewed in conjunction with last month's news that Senate Majority Leader (and Democrat) Chuck Schumer has called "to end the federal prohibition on marijuana in this country," this certainly seems to suggest that there's now bipartisan support, and support in both bodies of Congress, for legalizing marijuana federally. | As of 2:35 p.m. EDT, three of the best-known names in the sector, Hexo (NYSE: HEXO), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NYSE: ACB), are down 3.1%, 3.6%, and 5.3%, respectively. Now what Why would this development translate into falling stock prices for cannabis stocks like Hexo, Canopy, and Aurora? Hope for a national marijuana legalization bill has been behind the surge in marijuana stock prices ever since then Democratic presidential and vice presidential candidates Joe Biden and Kamala Harris threw their support behind the idea in last year's campaign. | As of 2:35 p.m. EDT, three of the best-known names in the sector, Hexo (NYSE: HEXO), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NYSE: ACB), are down 3.1%, 3.6%, and 5.3%, respectively. Now what Why would this development translate into falling stock prices for cannabis stocks like Hexo, Canopy, and Aurora? Then, the onus may fall upon Hexo, Canopy, and Aurora -- each of which sells cannabis legally in Canada today, but hasn't been able to make a profit off of it -- to explain why they can't make a profit off of legal marijuana in the United States, either. | As of 2:35 p.m. EDT, three of the best-known names in the sector, Hexo (NYSE: HEXO), Canopy Growth (NASDAQ: CGC), and Aurora Cannabis (NYSE: ACB), are down 3.1%, 3.6%, and 5.3%, respectively. Then, the onus may fall upon Hexo, Canopy, and Aurora -- each of which sells cannabis legally in Canada today, but hasn't been able to make a profit off of it -- to explain why they can't make a profit off of legal marijuana in the United States, either. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
36795.0 | 2021-05-13 00:00:00 UTC | Post-Merger Tilray Stock Is One To Keep On Your Watchlist for Now | ACB | https://www.nasdaq.com/articles/post-merger-tilray-stock-is-one-to-keep-on-your-watchlist-for-now-2021-05-13 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Can Canadian cannabis producer Tilray (NASDAQ:TLRY) get its mojo back? Once-hot TLRY stock is down more than 62% over the past three months, compared to the 16.9% decline for pot sector tracker ETFMG Alternative Harvest ETF (NYSEARCA:MJ). The shares are the top holding in the exchange-traded fund’s (ETF) 31-stock portfolio.
TLRY) logo on a web browser." width="300" height="169">
Source: Jarretera / Shutterstock.com
Investors are hoping that the Toronto-based company can finally turn itself around now that it is officially the biggest Canadian marijuana producer following the completion of its merger with former rival Aphria.
The newly merged company, which retains the Tilray name and brand, is now larger than other major cannabis companies such as Canopy Growth (NASDAQ:CGC) and Aurora Cannabis (NYSE:ACB) with annual revenues approaching $1 billion and a 17% share of the North American retail cannabis market.
7 Great Growth Stocks to Consider for Your Short List
As the recreational cannabis space continues to evolve, mature and consolidate, shareholders are expecting the newly reinforced Tilray to not only survive but to thrive.
TLRY Stock Highs and Lows
The completed merger with Aphria has given Tilray and its stock a much needed lift. TLRY stock popped 14% immediately following news that the merger had successfully concluded and investment bank Jefferies Group immediately upgraded the company’s shares to “buy” from “underperform,” calling the merger with Aphria a “perfect match” and stating that Tilray has excellent upside potential in terms of future sales in the U.S., Canada and Europe.
The positive response to the merger was welcome by Tilray shareholders who have been on a wild ride with the stock so far this year. In early February, TLRY stock was targeted for a short squeeze by the retail investors who commiserate on Reddit. In a concerted effort, they drove Tilray’s share price up 253%, from $25.77 on Jan. 29 to a peak of $90.99 on Feb. 10. The stock was back down to $30 a share by March 5 and today trades at $14.53.
Sadly, this was not the first time Tilray stock had gotten caught in a short squeeze. The same thing happened in 2018, when the share price was driven 1,400% higher.
Targeting U.S. Market
Post-merger, Tilray is now being run by the senior leadership team that previously ran Aphria. While the merged company retains the Tilray name, it is now former Aphria CEO Irwin Simon running the show. Former Tilray CEO Brendan Kennedy has relinquished his management role and now serves only on the company’s board of directors.
Moving forward, Tilray has said its immediate priorities are to finalize the merger internally and to focus its sales efforts on the U.S. market, where it sees a huge opportunity.
Simon has said Tilray’s ambition is to eventually control 30% of the North American cannabis market. With more U.S. states legalizing cannabis (18 states in total have now legalized the drug for recreational use) and hope that the Biden administration may legalize the recreational drug at the federal level, Tilray is eager to expand in the U.S. with an array of products that include cannabis-infused beverages and edibles.
Outside of North America, the company is expanding its presence in markets such as Germany and entering new markets where personal use has been decriminalized, such as Israel and Portugal.
Much of Tilray’s international expansion focuses on a mix of recreational and medicinal cannabis products.
Not Yet Stable Investment
A lot continues to happen in the cannabis space and there’s no question that Tilray is a stronger and more resilient company after its merger with Aphria. However, the cannabis sector continues to evolve and change rapidly. A lot still needs to happen before cannabis can be considered a stable and mature investment. And this fact is reflected in TLRY stock, which continues to hover around $15 and struggles to stay above the $20 per share threshold.
While some investors have upgraded Tilray’s shares in recent weeks, others have downgraded the stock, stating that the merger and the company’s current market share are already baked into the stock price.
The company’s earnings also continue to disappoint investors and analysts. Given that more consolidation and regulatory changes are likely in the broader cannabis sector, investors would be smart to keep TLRY stock on their watchlist for now and be ready to buy shares quickly if it looks like a legitimate breakout occurs.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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.
The post Post-Merger Tilray Stock Is One To Keep On Your Watchlist for 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. | The newly merged company, which retains the Tilray name and brand, is now larger than other major cannabis companies such as Canopy Growth (NASDAQ:CGC) and Aurora Cannabis (NYSE:ACB) with annual revenues approaching $1 billion and a 17% share of the North American retail cannabis market. 7 Great Growth Stocks to Consider for Your Short List As the recreational cannabis space continues to evolve, mature and consolidate, shareholders are expecting the newly reinforced Tilray to not only survive but to thrive. Given that more consolidation and regulatory changes are likely in the broader cannabis sector, investors would be smart to keep TLRY stock on their watchlist for now and be ready to buy shares quickly if it looks like a legitimate breakout occurs. | The newly merged company, which retains the Tilray name and brand, is now larger than other major cannabis companies such as Canopy Growth (NASDAQ:CGC) and Aurora Cannabis (NYSE:ACB) with annual revenues approaching $1 billion and a 17% share of the North American retail cannabis market. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Can Canadian cannabis producer Tilray (NASDAQ:TLRY) get its mojo back? 7 Great Growth Stocks to Consider for Your Short List As the recreational cannabis space continues to evolve, mature and consolidate, shareholders are expecting the newly reinforced Tilray to not only survive but to thrive. | The newly merged company, which retains the Tilray name and brand, is now larger than other major cannabis companies such as Canopy Growth (NASDAQ:CGC) and Aurora Cannabis (NYSE:ACB) with annual revenues approaching $1 billion and a 17% share of the North American retail cannabis market. TLRY stock popped 14% immediately following news that the merger had successfully concluded and investment bank Jefferies Group immediately upgraded the company’s shares to “buy” from “underperform,” calling the merger with Aphria a “perfect match” and stating that Tilray has excellent upside potential in terms of future sales in the U.S., Canada and Europe. While some investors have upgraded Tilray’s shares in recent weeks, others have downgraded the stock, stating that the merger and the company’s current market share are already baked into the stock price. | The newly merged company, which retains the Tilray name and brand, is now larger than other major cannabis companies such as Canopy Growth (NASDAQ:CGC) and Aurora Cannabis (NYSE:ACB) with annual revenues approaching $1 billion and a 17% share of the North American retail cannabis market. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Can Canadian cannabis producer Tilray (NASDAQ:TLRY) get its mojo back? 7 Great Growth Stocks to Consider for Your Short List As the recreational cannabis space continues to evolve, mature and consolidate, shareholders are expecting the newly reinforced Tilray to not only survive but to thrive. |
36796.0 | 2021-05-12 00:00:00 UTC | Canopy Growth Stock Is Down More Than 50% From Its 52-Week High: Is Now the Time to Buy? | ACB | https://www.nasdaq.com/articles/canopy-growth-stock-is-down-more-than-50-from-its-52-week-high%3A-is-now-the-time-to-buy | nan | nan | Canopy Growth (NASDAQ: CGC) released its fiscal 2020 third-quarter earnings report on Feb. 9. Its strong results for the period, which ended Dec. 31, helped drive its share price to a 52-week high of $56.50 the following day.
Since then, the stock price has gone downhill significantly. Last week, the Canopy Growth closed at just $25.26. Over the past month, it has fallen by 19%. Over the same period, the sector-benchmark Horizons Marijuana Life Sciences ETF, declined by 15%.
The cannabis giant's next earnings report is due out on June 1, and what investors learn then will likely determine whether the stock's sell-off continues or reverses. But in the meantime, investors should ask themselves whether Canopy Growth's stock has fallen far enough that it's worth taking a chance on?
Image source: Getty Images
A look at its current valuation
Although Canopy Growth has lost a large chunk of its value, it has historically traded at high premiums. And that's why it is important to put its recent decline into context. Here is how it compares to rivals Aurora Cannabis, HEXO, and Tilray in terms of price-to-sales (P/S) ratios.
CGC PS Ratio data by YCharts
The stock has traded at a high multiple when compared to its peers in the industry for some time now, and it still does, even after its recent slide. Investors are likely paying those sizable premiums due to the stock's relative safety -- an attribute that's in part a consequence of alcoholic beverage giant Constellation Brands having purchased a 38.6% stake in the business. The large investments made by Constellation make it unlikely that Canopy Growth will run out of money any time soon.
Investors are likely also pricing into the stock the boost that the business will get when and if federal marijuana legalization in the U.S. takes place. Canopy Growth's CEO predicts that will happen within the next 12 months. Once cannabis is fully legal at the federal level, Canopy will be able to close its long-pending acquisition of Acreage Holdings and become a multistate operator overnight.
There's one more reason why investors may be willing to pay more of a premium for this company than they are for its peers: its ambitious goals.
Aiming for some aggressive targets
When the company released its fiscal Q3 numbers, it included some medium-term financial targets that -- if it achieves them -- will be downright impressive. Canopy projects that in the second half of its fiscal 2022 (which began in April), it will post positive adjusted EBITDA. It also says that from fiscal 2022 through fiscal 2024, its net revenue will grow at a compound annual rate of 40% to 50%. In addition, management forecasts that operating cash flow in fiscal 2023 will be positive, and that it will deliver positive free cash flow in the following year.
The goal that appears to be most realistic is for positive adjusted EBITDA in H2 fiscal 2022. This is a non-GAAP number, and while it would be great for the company to reach profitability by that metric, the company has fairly wide discretion about what it includes adjusted EBITDA. That's why I would take it with a grain of salt. In fiscal Q3, Canopy Growth reported an adjusted EBITDA loss of 68 million Canadian dollars, which was an improvement from the CA$97 million loss it reported a year earlier.
The more important metric to watch is operating cash flow, and the company's target there might be the longest shot of the three for it to hit. Over the past 12 months, Canopy Growth burned through CA$579 million in cash from its day-to-day operations. Let's assume that it does expand into the U.S. in 12 months, after which it ramps up its efforts to hit its lofty growth objectives and increase revenue by 50% per year. If the company is pursuing such an aggressive growth strategy, it's unlikely that it will be able to simultaneously improve its operating cash flow. And it's not as if the company is anywhere near positive operating cash flow today.
Generating 40% to 50% sales growth is possible, but Canopy Growth will likely need the U.S. to legalize marijuana for that to happen. In fiscal Q3, its sales were up 23% year over year. And while it will get bigger now that it is acquiring Supreme Cannabis, consistently growing at close to a 50% annualized rate is no easy task.
It's possible that Canopy may hit one or two of these targets. I wouldn't count on it hitting all of them.
Should you take a chance on Canopy Growth stock?
Canopy Growth is a risky investment because it is far from a cheap pot stock, and it has created some high expectations for its future. If it achieves all of its medium-term targets, it could definitely produce some exceptional returns for shareholders. But that's a big "if." As an investor, I'm wary when it comes to companies that make projections that appear far too bullish or optimistic, and that's how I would categorize Canopy Growth's currently stated targets. If you want to tap into the growth potential of the burgeoning U.S. cannabis market, you are probably better off just investing in one of the many multistate operators out there today.
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 – 15 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 owns shares of and recommends Constellation Brands. The Motley Fool recommends HEXO Corp. 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. | CGC PS Ratio data by YCharts The stock has traded at a high multiple when compared to its peers in the industry for some time now, and it still does, even after its recent slide. Investors are likely paying those sizable premiums due to the stock's relative safety -- an attribute that's in part a consequence of alcoholic beverage giant Constellation Brands having purchased a 38.6% stake in the business. As an investor, I'm wary when it comes to companies that make projections that appear far too bullish or optimistic, and that's how I would categorize Canopy Growth's currently stated targets. | Canopy Growth (NASDAQ: CGC) released its fiscal 2020 third-quarter earnings report on Feb. 9. Aiming for some aggressive targets When the company released its fiscal Q3 numbers, it included some medium-term financial targets that -- if it achieves them -- will be downright impressive. In fiscal Q3, Canopy Growth reported an adjusted EBITDA loss of 68 million Canadian dollars, which was an improvement from the CA$97 million loss it reported a year earlier. | In fiscal Q3, Canopy Growth reported an adjusted EBITDA loss of 68 million Canadian dollars, which was an improvement from the CA$97 million loss it reported a year earlier. Generating 40% to 50% sales growth is possible, but Canopy Growth will likely need the U.S. to legalize marijuana for that to happen. As an investor, I'm wary when it comes to companies that make projections that appear far too bullish or optimistic, and that's how I would categorize Canopy Growth's currently stated targets. | The more important metric to watch is operating cash flow, and the company's target there might be the longest shot of the three for it to hit. And it's not as if the company is anywhere near positive operating cash flow today. Should you take a chance on Canopy Growth stock? |
36797.0 | 2021-05-11 00:00:00 UTC | 4 of the Least Volatile Weed Stocks | ACB | https://www.nasdaq.com/articles/4-of-the-least-volatile-weed-stocks-2021-05-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With increasing possibility of cannabis legalization at federal level, weed stocks seem like a good investment theme. It’s worth noting that eighteen states containing 40% of the U.S. population have already legalized cannabis. This already presents a big market opportunity. However, weed stocks are likely to surge once federal legalization happens.
At the same time, it’s worth noting that U.S. is not the only big market for cannabis. Europe and Canada also have a big addressable market. The global cannabis market is expected to be worth $84.0 billion by fiscal year 2028. Therefore, a major part of growth is still impending for the sector.
While I am bullish on weed stocks, most of the stocks in the sector have been significantly volatile in the last 24 months. As an example, Aurora Cannabis (NYSE:ACB) stock has a beta of 3.18. Similarly, Sundial Growers (NASDAQ:SNDL) has a beta of over 6.0.
In my view, it makes sense to consider exposure to relatively lower beta stocks. This column will discuss four weed stocks that are best positioned to benefit from industry tailwinds in the coming years. These stocks have relatively low volatility and company specific fundamentals look strong.
10 Ideal Dividend Stocks for Your Retirement
Let’s take a deeper look into factors that make these weed stocks attractive.
Canopy Growth (NASDAQ:CGC)
Cronos Group (NASDAQ:CRON)
Tilray (NASDAQ:TLRY)
Curaleaf Holdings (OTCMKTS:CURLF)
4 of the Least Volatile Weed Stocks: Canopy Growth (CGC)
Source: Yarygin / Shutterstock.com
CGC stock is among the relatively less volatile weed stocks. For year-to-date FY2021, the stock has been sideways. With Federal marijuana legalization very likely, CGC stock seems attractive.
From a growth perspective, the outlook is attractive for Canopy. The company reported revenue growth of 23% to $152.5 million for the third quarter of 2021. EBITDA loss also narrowed to $68.4 million as compared to $97 million on a year-on-year basis.
For the next three years (through FY2024), the company expects to achieve annual revenue growth in the range of 40% to 50%. Further, with cost cutting, the company has guided for positive operating cash flow in FY2023. Positive free cash flow is expected in the subsequent year.
With product innovation in the recreational cannabis segment coupled with focus on health and wellness, strong growth seems likely. It’s also worth noting that as of Q3 2021, the company reported $1.6 billion in cash and equivalents. This is likely to help the company navigate the cash burn period.
Further, once U.S. markets open up, revenue growth is likely to remain robust even beyond FY2024. These factors have ensured that CGC stock remains relatively resilient at current levels.
Weed Stocks: Cronos Group (CRON)
Source: Shutterstock
CRON stock is also among the quality weed stocks. In the last six months, the stock has been in a consolidation mode (with some volatility). During this period, the stock has returned just 1.5%. I believe that a break-out on the upside seems imminent with regulatory tailwinds.
FY2020, Cronos reported revenue of $46.7 million, which was higher by 97% on a y-o-y basis. An important point to note is that the company’s revenue from the U.S. surged by 182%.
On the flip-side, Cronos reported an adjusted EBITDA loss of $147.3 million in FY2020 as compared to a loss of $98.3 million in FY2019. However, with the company investing in growth, I would not be worried about the cash burn.
For FY2020, the company reported cash and short-term investments of $1.3 billion. The cash buffer provides headroom for continued investment in sales and marketing.
Cronos Group has a strong portfolio of brands that includes products for wellness, premium-adult use and mass market products. The company’s wellness brand, Peace Naturals, has strong presence in high-growth markets of Canada, Germany and Israel. In the United States, the company is currently manufacturing and distributing hemp derived supplements and cosmetic products.
7 Stocks to Buy Right Now With All Eyes on Crypto
Clearly, the company is establishing presence in key markets. Once growth in the cannabis sector reaches inflection point, Cronos is positioned to benefit.
Tilray (TLRY)
Source: Shutterstock
TLRY stock recently closed the merger with Aphria and the stock looks attractive for upside. Post-merger, Jefferies has assigned a “buy” rating to the stock with a price target of $23. This would imply a steep upside of from current levels of $15.35 as of midday May 11, 2021.
With the merger creating the largest global cannabis company by revenue, Tilray is well positioned for growth. The merged entity already has a leadership position in adult-use cannabis market in Canada. Canopy Growth is a close second.
In terms of specific regions, Tilray has an EU-GMP low-cost Cannabis cultivation and production facility in Europe. This will help the company cater to the European market, which is likely to be worth $3.9 billion by FY2025.
In the United States, Tilray has acquired Craft Beer’s manufacturing and distribution infrastructure. Once cannabis is legalized, the infrastructure will help in ramping-up presence through the country. The company is already selling branded hemp and CBD products.
Another important point to note is that Aphria has generated positive EBITDA for the last six quarters. With merger synergies and sustained growth, it’s likely that EBITDA margin will continue to expand in the coming years.
Overall, TLRY stock is among the weed stocks with low volatility and a bright outlook in terms of revenue and cash flow growth.
Curaleaf Holdings (CURLF)
Source: Shutterstock
CURLF stock is among the top weed stocks with low volatility. In the last one-year, the stock has trended higher by 219%. With robust growth and leadership position in the United States, the stock continues to look attractive.
For Q4 2020, the company reported revenue growth of 186% to $233.3 million on a y-o-y basis. For the same period, the company reported EBITDA growth of 290%. Strong growth coupled with improving EBITDA margin explains the reason for stock upside.
The company already has a strong distribution platform across 23 states in the U.S. Potential federal legalization is likely to have a significant impact on growth. Further, in April 2021, Curaleaf completed the acquisition of EMMAC. The latter is the largest European independent cannabis company.
Curaleaf is also focused on growth in the medicinal cannabis segment. The company already has two partnerships with pharma companies and pre-clinical research in underway. The medicinal cannabis sector still lacks evidence-based products. Focus on clinical research is likely to be a differentiating factor for the company.
8 Blue-Chip Stocks With Strong Earnings
It’s also worth noting that research and development activities translated into the launch of 32 new formulated products in Q4 2020. As the product portfolio increases through inorganic growth and investment in research, the company has a bright outlook for the long term.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
The post 4 of the Least Volatile Weed Stocks 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. | As an example, Aurora Cannabis (NYSE:ACB) stock has a beta of 3.18. The company’s wellness brand, Peace Naturals, has strong presence in high-growth markets of Canada, Germany and Israel. 8 Blue-Chip Stocks With Strong Earnings It’s also worth noting that research and development activities translated into the launch of 32 new formulated products in Q4 2020. | As an example, Aurora Cannabis (NYSE:ACB) stock has a beta of 3.18. Canopy Growth (NASDAQ:CGC) Cronos Group (NASDAQ:CRON) Tilray (NASDAQ:TLRY) Curaleaf Holdings (OTCMKTS:CURLF) 4 of the Least Volatile Weed Stocks: Canopy Growth (CGC) Source: Yarygin / Shutterstock.com CGC stock is among the relatively less volatile weed stocks. Weed Stocks: Cronos Group (CRON) Source: Shutterstock CRON stock is also among the quality weed stocks. | As an example, Aurora Cannabis (NYSE:ACB) stock has a beta of 3.18. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With increasing possibility of cannabis legalization at federal level, weed stocks seem like a good investment theme. Canopy Growth (NASDAQ:CGC) Cronos Group (NASDAQ:CRON) Tilray (NASDAQ:TLRY) Curaleaf Holdings (OTCMKTS:CURLF) 4 of the Least Volatile Weed Stocks: Canopy Growth (CGC) Source: Yarygin / Shutterstock.com CGC stock is among the relatively less volatile weed stocks. | As an example, Aurora Cannabis (NYSE:ACB) stock has a beta of 3.18. Canopy Growth (NASDAQ:CGC) Cronos Group (NASDAQ:CRON) Tilray (NASDAQ:TLRY) Curaleaf Holdings (OTCMKTS:CURLF) 4 of the Least Volatile Weed Stocks: Canopy Growth (CGC) Source: Yarygin / Shutterstock.com CGC stock is among the relatively less volatile weed stocks. Overall, TLRY stock is among the weed stocks with low volatility and a bright outlook in terms of revenue and cash flow growth. |
36798.0 | 2021-05-11 00:00:00 UTC | Why Canopy Growth, Aurora Cannabis, and Charlotte's Web Stocks All Just Went Up in Smoke | ACB | https://www.nasdaq.com/articles/why-canopy-growth-aurora-cannabis-and-charlottes-web-stocks-all-just-went-up-in-smoke-2021 | nan | nan | What happened
There's little good news to report in the marijuana industry today, as shares of Charlotte's Web Holdings (OTC: CWBHF) plunged 9.2% as of 12:20 p.m. EDT, and shares of Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) follow them down 2.3% and 2.6%, respectively.
So what
We'll begin with Charlotte's Web and its first-quarter earnings report released this morning. The self-described "market share leader in full spectrum cannabidiol (CBD) hemp extract wellness products" isn't looking particularly healthy itself today, after reporting only $23.4 million in Q1 sales (Wall Street was hoping for $27.4 million). Street analysts were also looking for a loss of $0.05 per diluted share for the quarter, but it turns out Charlotte's Web lost twice that: $0.10 per share. On the plus side, Charlotte's Web's cash burn rate declined significantly year over year, down 43% to just $9.4 million. But investors seem to be focusing more on the lower-than-expected sales today, and the higher than expected losses.
Image source: Getty Images.
Granted, Charlotte's stock-in-trade is cannabidiol, a product related to actual marijuana, but not quite the same. And yet, as we turn to the "real" marijuana companies, the news doesn't get much better.
At Canopy Growth, investors got hit with a lowered price target, with CIBC cutting its valuation of the Canadian cannabis stock by 31%, to 38 Canadian dollars. On the plus side, that's still $31.39, implying 32% profit potential. However, CIBC still hesitated to recommend it, and kept its rating on Canopy Growth stock at neutral.
Aurora Cannabis investors got even worse news, though, as CIBC cut its valuation on that stock to CA$9 ($7.44), and downgraded Aurora Cannabis stock to "underperform." As the analyst commented in a note covered by TheFly.com, Wall Street estimates for Aurora's future earnings "appear optimistic," and Aurora is currently lagging its competitors on sales growth.
Now what
Viewed in the context of rising optimism about the prospects for marijuana legalization, declines in stock prices of some of the best known names in the cannabis industry may seem confusing to investors. And yet, when you consider that legalization of marijuana is likely to increase demand for it, and dampen demand for cannabidiol as an alternative, the declines at Charlotte's Web actually do make a lot of sense. (Plus, you know, there's that $0.10-per-share loss to digest.)
At the same time, the fact that both Canopy and Aurora are Canadian companies, where cannabis sales are currently already legal -- despite both companies being unable to make a profit off of the business -- suggests that even legalizing marijuana in the United States may not be enough to fix what ails these companies.
When you get right down to it, profits still matter most.
10 stocks we like better than Charlotte's Web
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Charlotte's Web wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Charlotte's Web Holdings. The Motley Fool recommends Charlotte's Web. 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. | What happened There's little good news to report in the marijuana industry today, as shares of Charlotte's Web Holdings (OTC: CWBHF) plunged 9.2% as of 12:20 p.m. EDT, and shares of Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) follow them down 2.3% and 2.6%, respectively. Now what Viewed in the context of rising optimism about the prospects for marijuana legalization, declines in stock prices of some of the best known names in the cannabis industry may seem confusing to investors. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Charlotte's Web wasn't one of them! | What happened There's little good news to report in the marijuana industry today, as shares of Charlotte's Web Holdings (OTC: CWBHF) plunged 9.2% as of 12:20 p.m. EDT, and shares of Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) follow them down 2.3% and 2.6%, respectively. The Motley Fool owns shares of and recommends Charlotte's Web Holdings. The Motley Fool recommends Charlotte's Web. | What happened There's little good news to report in the marijuana industry today, as shares of Charlotte's Web Holdings (OTC: CWBHF) plunged 9.2% as of 12:20 p.m. EDT, and shares of Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) follow them down 2.3% and 2.6%, respectively. Aurora Cannabis investors got even worse news, though, as CIBC cut its valuation on that stock to CA$9 ($7.44), and downgraded Aurora Cannabis stock to "underperform." At the same time, the fact that both Canopy and Aurora are Canadian companies, where cannabis sales are currently already legal -- despite both companies being unable to make a profit off of the business -- suggests that even legalizing marijuana in the United States may not be enough to fix what ails these companies. | What happened There's little good news to report in the marijuana industry today, as shares of Charlotte's Web Holdings (OTC: CWBHF) plunged 9.2% as of 12:20 p.m. EDT, and shares of Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) follow them down 2.3% and 2.6%, respectively. Street analysts were also looking for a loss of $0.05 per diluted share for the quarter, but it turns out Charlotte's Web lost twice that: $0.10 per share. Aurora Cannabis investors got even worse news, though, as CIBC cut its valuation on that stock to CA$9 ($7.44), and downgraded Aurora Cannabis stock to "underperform." |
36799.0 | 2021-05-11 00:00:00 UTC | Warren Buffett Has a Warning for Growth Investors | ACB | https://www.nasdaq.com/articles/warren-buffett-has-a-warning-for-growth-investors-2021-05-11 | nan | nan | Billionaire investor Warren Buffett held the annual shareholder meeting for his company, Berkshire Hathaway, earlier this month, and one of the things he pointed out was how dramatically the list of top 20 companies in the world (by market cap) has changed since 1989 -- none of the companies that made the list then are on it today. Selecting a company to invest in isn't easy, and Buffett warns that there is "a lot more to picking stocks than figuring out what's going to be a wonderful industry in the future."
It might be a tough message for growth investors to hear, but it's one they shouldn't ignore. Investors need to look no further than the high-growth cannabis sector for an example of how returns can vary wildly depending on the stock you invest in, despite the broader industry's amazing potential.
Image source: Getty Images.
The cannabis industry will be huge, there's no doubt about it
One of the reasons investors love the cannabis sector is because it's a new industry to invest in, and opportunities like this don't come along often. The desire to get in early and lock in some great returns is tantalizing.
Cannabis research company BDSA projects that by 2025 the global cannabis market will be worth $47.2 billion, growing at a compounded annual growth rate (CAGR) of 22% until then. The opportunities over the long term could be even greater: Grand View Research estimates that the market for cannabis pharmaceuticals will grow to $5.8 billion by 2027, and will average a CAGR of 76.8%. Epidiolex, which is now part of Jazz Pharmaceuticals' portfolio after the latter's acquisition of GW Pharmaceuticals, remains the only cannabis-based drug that the U.S. Food and Drug Administration has approved for use thus far. That part of the industry is still in its infancy, with a long way to go.
A big challenge with such an early growth industry is that predicting its size is difficult and requires frequent updates to forecasts. But there's little doubt that investors can earn some amazing returns from investing in cannabis. The problem, however, is that that doesn't mean you can relax your due diligence when selecting a pot stock to invest in.
Not all cannabis companies make for good investments
There are multiple variables investors should consider when investing in a cannabis company, such as which markets it is in, how strong its margins are, whether it is expanding too quickly (or slowly), and many other factors. Over the past year, you could have earned a wide range of different returns from investing in different components of the cannabis sector -- here are just a handful of examples:
SNDL data by YCharts
The top return on the above chart is from a company that doesn't even sell marijuana -- GrowGeneration simply provides the materials for people to grow cannabis and other crops. Aurora Cannabis, which is a producer, grew by just 7% in value in the past 12 months. A lack of profitability and perhaps too much expansion and cash burn, coupled with frequent share offerings, have kept its stock price down. Many of the top-performing producers have been from the U.S., including Trulieve Cannabis (OTC: TCNNF), which is up around 300%. That could be due to the more attractive growth opportunities here. BDSA projects that by 2025, the U.S. pot market will be worth $34.5 billion -- nearly six times the value of the Canadian cannabis industry.
Which types of stocks should cannabis investors target?
The segment of the industry you are investing in is important. Much of the hype in the cannabis sector right now surrounds the potential that the U.S. government will legalize marijuana, but there is no time frame as to when that might happen. And that's why I wouldn't invest in a Canadian-based cannabis company today -- until the U.S. pot market opens up, it will be limited to the significantly smaller Canadian pot market.
U.S.-based pot stocks that are already operating there are much safer bets, and can tap into that growth potential immediately. But it's also important to consider cannabis companies that are actually making money and aren't burning through cash. Not only does that lessen the need for share offerings (which lead to dilution for shareholders), but it can help facilitate future growth. And although profitability is elusive for many companies, some are generating strong bottom lines while they are still growing, making them even better buys.
Trulieve is a great example of that: The Florida-based company posted a profit of $63 million in 2020, while more than doubling its top line to $521.5 million. The company has posted 12 straight profitable quarters, so it's no surprise that it has been among the best investments to hold over the past year. And with more growth on its radar in markets like Massachusetts and Pennsylvania, there's little reason to doubt that it will remain a solid investment for the foreseeable future.
There are many other good buys to consider, but the important thing to remember is that an industry's high-growth potential shouldn't be a reason to overlook a company's specific performance or risks.
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 – 15 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 owns shares of and recommends Berkshire Hathaway (B shares), GrowGeneration Corp, and Trulieve Cannabis Corp. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short June 2021 $240 calls on Berkshire Hathaway (B shares). 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. | Investors need to look no further than the high-growth cannabis sector for an example of how returns can vary wildly depending on the stock you invest in, despite the broader industry's amazing potential. The opportunities over the long term could be even greater: Grand View Research estimates that the market for cannabis pharmaceuticals will grow to $5.8 billion by 2027, and will average a CAGR of 76.8%. There are many other good buys to consider, but the important thing to remember is that an industry's high-growth potential shouldn't be a reason to overlook a company's specific performance or risks. | Cannabis research company BDSA projects that by 2025 the global cannabis market will be worth $47.2 billion, growing at a compounded annual growth rate (CAGR) of 22% until then. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), GrowGeneration Corp, and Trulieve Cannabis Corp. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short June 2021 $240 calls on Berkshire Hathaway (B shares). | The cannabis industry will be huge, there's no doubt about it One of the reasons investors love the cannabis sector is because it's a new industry to invest in, and opportunities like this don't come along often. Not all cannabis companies make for good investments There are multiple variables investors should consider when investing in a cannabis company, such as which markets it is in, how strong its margins are, whether it is expanding too quickly (or slowly), and many other factors. Over the past year, you could have earned a wide range of different returns from investing in different components of the cannabis sector -- here are just a handful of examples: SNDL data by YCharts The top return on the above chart is from a company that doesn't even sell marijuana -- GrowGeneration simply provides the materials for people to grow cannabis and other crops. | Investors need to look no further than the high-growth cannabis sector for an example of how returns can vary wildly depending on the stock you invest in, despite the broader industry's amazing potential. The cannabis industry will be huge, there's no doubt about it One of the reasons investors love the cannabis sector is because it's a new industry to invest in, and opportunities like this don't come along often. The opportunities over the long term could be even greater: Grand View Research estimates that the market for cannabis pharmaceuticals will grow to $5.8 billion by 2027, and will average a CAGR of 76.8%. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.