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37000.0 | 2021-01-04 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Aurora Cannabis, Teledyne Techologies, Moderna Inc | ACB | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-aurora-cannabis-teledyne-techologies-moderna-inc-2021-01-04 | nan | nan | Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 and the Dow eased from record levels on the first trading day of the year on Monday as nerves over the outcome of runoff elections in Georgia this week countered optimism over a vaccine-driven recovery in the global economy..N
At 11:16 a.m. ET, the Dow Jones Industrial Average .DJI was down 1.56% at 30,130.36. The S&P 500 .SPX was down 1.02% at 3,717.59 and the Nasdaq Composite .IXIC was down 0.99% at 12,760.436. The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 19.2% ** L Brands Inc , up 5.1% ** Newmont Corp , up 4.3% The top three S&P 500 .PL.INX percentage losers: ** Teledyne Techologies Inc , down 7.6% ** Norwegian Cruise Line Holdings Ltd , down 7.1% ** Carnival Corp , down 6.6% The top three NYSE .PG.N percentage gainers: ** Studio City International Holdings Ltd , up 19.4% ** U.S. Silica Holdings Inc , up 16.8% ** Aurora Cannabis Inc , up 12.6% The top three NYSE .PL.N percentage losers: ** QuantumScape Corp , down 37% ** Genworth Financial Inc , down 24.1% ** CNFinance Holdings Ltd , down 18.5% The top Nasdaq .PG.O percentage gainers: ** Bionano Genomics Inc , up 119.2% ** The9 Ltd , up 73% The top Nasdaq .PL.O percentage losers: ** Big Rock Parters Acquisition Corp , down 45.3% ** Calithera Biosciences Inc CALA.O, down 41.6%
** Ocugen Inc OCGN.O: up 59.6%
BUZZ-Surges after India approves emergency use of partner's COVID-19 vaccine ** Tesla Inc TSLA.O: up 3.6%
BUZZ-Tesla starts 2021 on record high after beating 2020 delivery estimates ** PubMatic Inc PUBM.O: up 2.8%
BUZZ-Jefferies starts with 'buy', says winner in ad tech space ** Under Armour Inc UAA.N: down 0.3%
BUZZ-Pivotal Research upgrades on increased athletic goods demand ** Airbnb Inc ABNB.O: down 3.3%
BUZZ-Street View: Analysts check into Airbnb for the long haul ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil Corp XOM.N: up 0.2% ** Occidental Petroleum Corp OXY.N: up 1.0% ** EQT Corp EQT.N: up 3.5% ** TechnipFMC PLC FTI.N: up 2.0%
BUZZ-Oil stocks up as OPEC+ expected to cap output ** Pinduoduo Inc PDD.O: down 4.3%
BUZZ-Set for second consecutive day in red ** Newmont Corp NEM.N: up 4.3% ** Barrick Gold Corp GOLD.N: up 7.6% ** AngloGold Ashanti Ltd AU.N: up 10.9% ** Harmony Gold Mining Company Ltd HMY.N: up 10.5% ** Yamana Gold Inc AUY.N: up 5.6%
BUZZ-Gold miners gain as bullion rises on weak dollar ** Magellan Health Inc MGLN.O: up 12.2%
BUZZ-Up on $2.2 bln Centene deal ** Tiziana Life Sciences PLC TLSA.O: up 16.8%
BUZZ-Gains on completion of Foralumab clinical trial ** China Telecom Corporation Limited CHA.N: down 6.9% ** China Mobile Limited CHL.N: down 6.1% ** China Unicom (Hong Kong) Limited CHU.N: down 4.3%
BUZZ-U.S. shares of Chinese telcos fall on NYSE delisting announcement ** Arcturus Therapeutics Holdings Inc ARCT.O: up 8.8%
BUZZ-Up as FDA allows mid-stage COVID-19 vaccine trial ** FLIR Systems Inc FLIR.O: up 19.2%
BUZZ-Surges as Teledyne to buy co for $8 bln ** Calithera Biosciences Inc CALA.O: down 41.6%
BUZZ-Slumps after missing main goal of cancer study ** Fisker Inc FSR.N: up 3.2%
BUZZ-Up after deal to develop driver assistance technology with Magna ** Inovio Pharmaceuticals Inc INO.O: up 6.0%
BUZZ-Rises on Advaccine deal to make, sell COVID-19 vaccine in China ** C3.ai Inc AI.N: down 13.5%
BUZZ-Drops as Morgan Stanley, JP Morgan "underweight" out of the gate ** Riot Blockchain Inc RIOT.O: up 0.3% ** Marathon Patent Group Inc MARA.O: up 8.2%
BUZZ-Cryptocurrency stocks jump even as Bitcoin slumps ** Eos Energy Enterprises Inc EOSE.O: up 0.2%
BUZZ-Rises on $20 mln supply order ** Boeing Co BA.N: down 3.8%
BUZZ-Bernstein downgrades on bleak 787 outlook ** Inozyme Pharma Inc INZY.O: up 3.7%
BUZZ-Up on UK, U.S. nod for human trials of mineralization disorder drug USN ** Enzo Biochem Inc ENZ.N: up 4.4%
BUZZ-Up on expanded emergency use authorization for COVID-19 testing ** Moderna Inc MRNA.O: up 6.0%
BUZZ-Gains on raising 2021 vaccine output forecast ** Brookfield Property Partners LP BPY.O: up 16.7%
BUZZ-Soars on take-private offer from Brookfield Asset Management
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 1.56%
Consumer Discretionary
.SPLRCD
down 1.15%
Consumer Staples
.SPLRCS
down 1.24%
Energy
.SPNY
down 0.41%
Financial
.SPSY
down 1.39%
Health
.SPXHC
down 1.05%
Industrial
.SPLRCI
down 2.02%
Information Technology
.SPLRCT
down 1.42%
Materials
.SPLRCM
down 0.47%
Real Estate
.SPLRCR
down 2.33%
Utilities
.SPLRCU
down 1.63%
(Compiled by Amruta Khandekar in Bengaluru)
((Amruta.Khandekar@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. | Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Dow eased from record levels on the first trading day of the year on Monday as nerves over the outcome of runoff elections in Georgia this week countered optimism over a vaccine-driven recovery in the global economy..N At 11:16 a.m. The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 19.2% ** L Brands Inc , up 5.1% ** Newmont Corp , up 4.3% The top three S&P 500 .PL.INX percentage losers: ** Teledyne Techologies Inc , down 7.6% ** Norwegian Cruise Line Holdings Ltd , down 7.1% ** Carnival Corp , down 6.6% The top three NYSE .PG.N percentage gainers: ** Studio City International Holdings Ltd , up 19.4% ** U.S. Silica Holdings Inc , up 16.8% ** Aurora Cannabis Inc , up 12.6% The top three NYSE .PL.N percentage losers: ** QuantumScape Corp , down 37% ** Genworth Financial Inc , down 24.1% ** CNFinance Holdings Ltd , down 18.5% The top Nasdaq .PG.O percentage gainers: ** Bionano Genomics Inc , up 119.2% ** The9 Ltd , up 73% The top Nasdaq .PL.O percentage losers: ** Big Rock Parters Acquisition Corp , down 45.3% ** Calithera Biosciences Inc CALA.O, down 41.6% ** Ocugen Inc OCGN.O: up 59.6% BUZZ-Surges after India approves emergency use of partner's COVID-19 vaccine ** Tesla Inc TSLA.O: up 3.6% BUZZ-Tesla starts 2021 on record high after beating 2020 delivery estimates ** PubMatic Inc PUBM.O: up 2.8% BUZZ-Jefferies starts with 'buy', says winner in ad tech space ** Under Armour Inc UAA.N: down 0.3% BUZZ-Pivotal Research upgrades on increased athletic goods demand ** Airbnb Inc ABNB.O: down 3.3% BUZZ-Street View: Analysts check into Airbnb for the long haul ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil Corp XOM.N: up 0.2% ** Occidental Petroleum Corp OXY.N: up 1.0% ** EQT Corp EQT.N: up 3.5% ** TechnipFMC PLC FTI.N: up 2.0% BUZZ-Oil stocks up as OPEC+ expected to cap output ** Pinduoduo Inc PDD.O: down 4.3% BUZZ-Set for second consecutive day in red ** Newmont Corp NEM.N: up 4.3% ** Barrick Gold Corp GOLD.N: up 7.6% ** AngloGold Ashanti Ltd AU.N: up 10.9% ** Harmony Gold Mining Company Ltd HMY.N: up 10.5% ** Yamana Gold Inc AUY.N: up 5.6% BUZZ-Gold miners gain as bullion rises on weak dollar ** Magellan Health Inc MGLN.O: up 12.2% BUZZ-Up on $2.2 bln Centene deal ** Tiziana Life Sciences PLC TLSA.O: up 16.8% BUZZ-Gains on completion of Foralumab clinical trial ** China Telecom Corporation Limited CHA.N: down 6.9% ** China Mobile Limited CHL.N: down 6.1% ** China Unicom (Hong Kong) Limited CHU.N: down 4.3% BUZZ-U.S. shares of Chinese telcos fall on NYSE delisting announcement ** Arcturus Therapeutics Holdings Inc ARCT.O: up 8.8% BUZZ-Up as FDA allows mid-stage COVID-19 vaccine trial ** FLIR Systems Inc FLIR.O: up 19.2% BUZZ-Surges as Teledyne to buy co for $8 bln ** Calithera Biosciences Inc CALA.O: down 41.6% BUZZ-Slumps after missing main goal of cancer study ** Fisker Inc FSR.N: up 3.2% BUZZ-Up after deal to develop driver assistance technology with Magna ** Inovio Pharmaceuticals Inc INO.O: up 6.0% BUZZ-Rises on Advaccine deal to make, sell COVID-19 vaccine in China ** C3.ai Inc AI.N: down 13.5% BUZZ-Drops as Morgan Stanley, JP Morgan "underweight" out of the gate ** Riot Blockchain Inc RIOT.O: up 0.3% ** Marathon Patent Group Inc MARA.O: up 8.2% BUZZ-Cryptocurrency stocks jump even as Bitcoin slumps ** Eos Energy Enterprises Inc EOSE.O: up 0.2% BUZZ-Rises on $20 mln supply order ** Boeing Co BA.N: down 3.8% BUZZ-Bernstein downgrades on bleak 787 outlook ** Inozyme Pharma Inc INZY.O: up 3.7% BUZZ-Up on UK, U.S. nod for human trials of mineralization disorder drug USN ** Enzo Biochem Inc ENZ.N: up 4.4% BUZZ-Up on expanded emergency use authorization for COVID-19 testing ** Moderna Inc MRNA.O: up 6.0% BUZZ-Gains on raising 2021 vaccine output forecast ** Brookfield Property Partners LP BPY.O: up 16.7% BUZZ-Soars on take-private offer from Brookfield Asset Management The 11 major S&P 500 sectors: Communication Services down 1.63% (Compiled by Amruta Khandekar in Bengaluru) ((Amruta.Khandekar@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. | Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Dow eased from record levels on the first trading day of the year on Monday as nerves over the outcome of runoff elections in Georgia this week countered optimism over a vaccine-driven recovery in the global economy..N At 11:16 a.m. The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 19.2% ** L Brands Inc , up 5.1% ** Newmont Corp , up 4.3% The top three S&P 500 .PL.INX percentage losers: ** Teledyne Techologies Inc , down 7.6% ** Norwegian Cruise Line Holdings Ltd , down 7.1% ** Carnival Corp , down 6.6% The top three NYSE .PG.N percentage gainers: ** Studio City International Holdings Ltd , up 19.4% ** U.S. Silica Holdings Inc , up 16.8% ** Aurora Cannabis Inc , up 12.6% The top three NYSE .PL.N percentage losers: ** QuantumScape Corp , down 37% ** Genworth Financial Inc , down 24.1% ** CNFinance Holdings Ltd , down 18.5% The top Nasdaq .PG.O percentage gainers: ** Bionano Genomics Inc , up 119.2% ** The9 Ltd , up 73% The top Nasdaq .PL.O percentage losers: ** Big Rock Parters Acquisition Corp , down 45.3% ** Calithera Biosciences Inc CALA.O, down 41.6% ** Ocugen Inc OCGN.O: up 59.6% BUZZ-Surges after India approves emergency use of partner's COVID-19 vaccine ** Tesla Inc TSLA.O: up 3.6% BUZZ-Tesla starts 2021 on record high after beating 2020 delivery estimates ** PubMatic Inc PUBM.O: up 2.8% BUZZ-Jefferies starts with 'buy', says winner in ad tech space ** Under Armour Inc UAA.N: down 0.3% BUZZ-Pivotal Research upgrades on increased athletic goods demand ** Airbnb Inc ABNB.O: down 3.3% BUZZ-Street View: Analysts check into Airbnb for the long haul ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil Corp XOM.N: up 0.2% ** Occidental Petroleum Corp OXY.N: up 1.0% ** EQT Corp EQT.N: up 3.5% ** TechnipFMC PLC FTI.N: up 2.0% BUZZ-Oil stocks up as OPEC+ expected to cap output ** Pinduoduo Inc PDD.O: down 4.3% BUZZ-Set for second consecutive day in red ** Newmont Corp NEM.N: up 4.3% ** Barrick Gold Corp GOLD.N: up 7.6% ** AngloGold Ashanti Ltd AU.N: up 10.9% ** Harmony Gold Mining Company Ltd HMY.N: up 10.5% ** Yamana Gold Inc AUY.N: up 5.6% BUZZ-Gold miners gain as bullion rises on weak dollar ** Magellan Health Inc MGLN.O: up 12.2% BUZZ-Up on $2.2 bln Centene deal ** Tiziana Life Sciences PLC TLSA.O: up 16.8% BUZZ-Gains on completion of Foralumab clinical trial ** China Telecom Corporation Limited CHA.N: down 6.9% ** China Mobile Limited CHL.N: down 6.1% ** China Unicom (Hong Kong) Limited CHU.N: down 4.3% BUZZ-U.S. shares of Chinese telcos fall on NYSE delisting announcement ** Arcturus Therapeutics Holdings Inc ARCT.O: up 8.8% BUZZ-Up as FDA allows mid-stage COVID-19 vaccine trial ** FLIR Systems Inc FLIR.O: up 19.2% BUZZ-Surges as Teledyne to buy co for $8 bln ** Calithera Biosciences Inc CALA.O: down 41.6% BUZZ-Slumps after missing main goal of cancer study ** Fisker Inc FSR.N: up 3.2% BUZZ-Up after deal to develop driver assistance technology with Magna ** Inovio Pharmaceuticals Inc INO.O: up 6.0% BUZZ-Rises on Advaccine deal to make, sell COVID-19 vaccine in China ** C3.ai Inc AI.N: down 13.5% BUZZ-Drops as Morgan Stanley, JP Morgan "underweight" out of the gate ** Riot Blockchain Inc RIOT.O: up 0.3% ** Marathon Patent Group Inc MARA.O: up 8.2% BUZZ-Cryptocurrency stocks jump even as Bitcoin slumps ** Eos Energy Enterprises Inc EOSE.O: up 0.2% BUZZ-Rises on $20 mln supply order ** Boeing Co BA.N: down 3.8% BUZZ-Bernstein downgrades on bleak 787 outlook ** Inozyme Pharma Inc INZY.O: up 3.7% BUZZ-Up on UK, U.S. nod for human trials of mineralization disorder drug USN ** Enzo Biochem Inc ENZ.N: up 4.4% BUZZ-Up on expanded emergency use authorization for COVID-19 testing ** Moderna Inc MRNA.O: up 6.0% BUZZ-Gains on raising 2021 vaccine output forecast ** Brookfield Property Partners LP BPY.O: up 16.7% BUZZ-Soars on take-private offer from Brookfield Asset Management The 11 major S&P 500 sectors: Communication Services down 1.63% (Compiled by Amruta Khandekar in Bengaluru) ((Amruta.Khandekar@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. | Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Dow eased from record levels on the first trading day of the year on Monday as nerves over the outcome of runoff elections in Georgia this week countered optimism over a vaccine-driven recovery in the global economy..N At 11:16 a.m. The top three S&P 500 .PG.INX percentage gainers: ** FLIR Systems Inc , up 19.2% ** L Brands Inc , up 5.1% ** Newmont Corp , up 4.3% The top three S&P 500 .PL.INX percentage losers: ** Teledyne Techologies Inc , down 7.6% ** Norwegian Cruise Line Holdings Ltd , down 7.1% ** Carnival Corp , down 6.6% The top three NYSE .PG.N percentage gainers: ** Studio City International Holdings Ltd , up 19.4% ** U.S. Silica Holdings Inc , up 16.8% ** Aurora Cannabis Inc , up 12.6% The top three NYSE .PL.N percentage losers: ** QuantumScape Corp , down 37% ** Genworth Financial Inc , down 24.1% ** CNFinance Holdings Ltd , down 18.5% The top Nasdaq .PG.O percentage gainers: ** Bionano Genomics Inc , up 119.2% ** The9 Ltd , up 73% The top Nasdaq .PL.O percentage losers: ** Big Rock Parters Acquisition Corp , down 45.3% ** Calithera Biosciences Inc CALA.O, down 41.6% ** Ocugen Inc OCGN.O: up 59.6% BUZZ-Surges after India approves emergency use of partner's COVID-19 vaccine ** Tesla Inc TSLA.O: up 3.6% BUZZ-Tesla starts 2021 on record high after beating 2020 delivery estimates ** PubMatic Inc PUBM.O: up 2.8% BUZZ-Jefferies starts with 'buy', says winner in ad tech space ** Under Armour Inc UAA.N: down 0.3% BUZZ-Pivotal Research upgrades on increased athletic goods demand ** Airbnb Inc ABNB.O: down 3.3% BUZZ-Street View: Analysts check into Airbnb for the long haul ** Chevron Corp CVX.N: up 0.4% ** Exxon Mobil Corp XOM.N: up 0.2% ** Occidental Petroleum Corp OXY.N: up 1.0% ** EQT Corp EQT.N: up 3.5% ** TechnipFMC PLC FTI.N: up 2.0% BUZZ-Oil stocks up as OPEC+ expected to cap output ** Pinduoduo Inc PDD.O: down 4.3% BUZZ-Set for second consecutive day in red ** Newmont Corp NEM.N: up 4.3% ** Barrick Gold Corp GOLD.N: up 7.6% ** AngloGold Ashanti Ltd AU.N: up 10.9% ** Harmony Gold Mining Company Ltd HMY.N: up 10.5% ** Yamana Gold Inc AUY.N: up 5.6% BUZZ-Gold miners gain as bullion rises on weak dollar ** Magellan Health Inc MGLN.O: up 12.2% BUZZ-Up on $2.2 bln Centene deal ** Tiziana Life Sciences PLC TLSA.O: up 16.8% BUZZ-Gains on completion of Foralumab clinical trial ** China Telecom Corporation Limited CHA.N: down 6.9% ** China Mobile Limited CHL.N: down 6.1% ** China Unicom (Hong Kong) Limited CHU.N: down 4.3% BUZZ-U.S. shares of Chinese telcos fall on NYSE delisting announcement ** Arcturus Therapeutics Holdings Inc ARCT.O: up 8.8% BUZZ-Up as FDA allows mid-stage COVID-19 vaccine trial ** FLIR Systems Inc FLIR.O: up 19.2% BUZZ-Surges as Teledyne to buy co for $8 bln ** Calithera Biosciences Inc CALA.O: down 41.6% BUZZ-Slumps after missing main goal of cancer study ** Fisker Inc FSR.N: up 3.2% BUZZ-Up after deal to develop driver assistance technology with Magna ** Inovio Pharmaceuticals Inc INO.O: up 6.0% BUZZ-Rises on Advaccine deal to make, sell COVID-19 vaccine in China ** C3.ai Inc AI.N: down 13.5% BUZZ-Drops as Morgan Stanley, JP Morgan "underweight" out of the gate ** Riot Blockchain Inc RIOT.O: up 0.3% ** Marathon Patent Group Inc MARA.O: up 8.2% BUZZ-Cryptocurrency stocks jump even as Bitcoin slumps ** Eos Energy Enterprises Inc EOSE.O: up 0.2% BUZZ-Rises on $20 mln supply order ** Boeing Co BA.N: down 3.8% BUZZ-Bernstein downgrades on bleak 787 outlook ** Inozyme Pharma Inc INZY.O: up 3.7% BUZZ-Up on UK, U.S. nod for human trials of mineralization disorder drug USN ** Enzo Biochem Inc ENZ.N: up 4.4% BUZZ-Up on expanded emergency use authorization for COVID-19 testing ** Moderna Inc MRNA.O: up 6.0% BUZZ-Gains on raising 2021 vaccine output forecast ** Brookfield Property Partners LP BPY.O: up 16.7% BUZZ-Soars on take-private offer from Brookfield Asset Management The 11 major S&P 500 sectors: Communication Services down 1.56% Consumer Discretionary | Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Dow eased from record levels on the first trading day of the year on Monday as nerves over the outcome of runoff elections in Georgia this week countered optimism over a vaccine-driven recovery in the global economy..N At 11:16 a.m. ET, the Dow Jones Industrial Average .DJI was down 1.56% at 30,130.36. The S&P 500 .SPX was down 1.02% at 3,717.59 and the Nasdaq Composite .IXIC was down 0.99% at 12,760.436. |
37001.0 | 2021-01-04 00:00:00 UTC | Why Marijuana Stocks Are Lighting Up the New Year | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-are-lighting-up-the-new-year-2021-01-04 | nan | nan | What happened
Marijuana stocks are entering 2021 on a high note, with shares of Aurora Cannabis (NYSE: ACB) leading the pack 12.5% higher as of 10:40 a.m. EST, Canopy Growth (NASDAQ: CGC) not far behind with a 7.5% gain, and Aphria (NASDAQ: APHA) up 5.2%.
So what
There's no specific new news behind the momentum, but 2020 was a big year for the legal marijuana industry, with Arizona, Montana, New Jersey, and South Dakota all voting to legalize recreational marijuana use in their respective states through ballot initiatives. Mississippi voted to permit medical marijuana use and, according to a tally by CNN, this means that recreational use will soon be legal across 15 states, and medical marijuana in 36 states (once "regulatory structures" have been set up to permit this in the respective states.)
This will be the job of state legislatures in the newly "legal" states this year. Meanwhile, at the federal level, the U.S. House of Representatives voted 228-164 last month to decriminalize cannabis nationwide.
Image source: Getty Images.
Now what
With voters in Georgia set to hold runoff elections for two Senate seats on Tuesday, control of the U.S. Senate also remains up for grabs -- holding the potential for the Senate to echo the House's endorsement this year, and for a new Biden Administration to sign marijuana decriminalization into law.
In short, there's plenty of reason for marijuana investors to be optimistic as the New Year gets underway. That being said, this is not a time for investors in the marijuana industry to be counting their chickens.
Why not? To gain control of the Senate, the Democrats must win both Georgia Senate seats up for grabs tomorrow. And even if that happens, the Senate party layout will read Republicans 50, Democrats 48, Democratic-leaning-independents (who presumably favor decriminalization) two, and Vice President-elect Kamala Harris casting the deciding vote in the event of a tie. In short, while federal decriminalization is a possibility this year, it's a slim one.
Slow and steady, state-by-state legalization is more likely to win the race.
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
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 are entering 2021 on a high note, with shares of Aurora Cannabis (NYSE: ACB) leading the pack 12.5% higher as of 10:40 a.m. EST, Canopy Growth (NASDAQ: CGC) not far behind with a 7.5% gain, and Aphria (NASDAQ: APHA) up 5.2%. And even if that happens, the Senate party layout will read Republicans 50, Democrats 48, Democratic-leaning-independents (who presumably favor decriminalization) two, and Vice President-elect Kamala Harris casting the deciding vote in the event of a tie. 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. | What happened Marijuana stocks are entering 2021 on a high note, with shares of Aurora Cannabis (NYSE: ACB) leading the pack 12.5% higher as of 10:40 a.m. EST, Canopy Growth (NASDAQ: CGC) not far behind with a 7.5% gain, and Aphria (NASDAQ: APHA) up 5.2%. So what There's no specific new news behind the momentum, but 2020 was a big year for the legal marijuana industry, with Arizona, Montana, New Jersey, and South Dakota all voting to legalize recreational marijuana use in their respective states through ballot initiatives. Mississippi voted to permit medical marijuana use and, according to a tally by CNN, this means that recreational use will soon be legal across 15 states, and medical marijuana in 36 states (once "regulatory structures" have been set up to permit this in the respective states.) | What happened Marijuana stocks are entering 2021 on a high note, with shares of Aurora Cannabis (NYSE: ACB) leading the pack 12.5% higher as of 10:40 a.m. EST, Canopy Growth (NASDAQ: CGC) not far behind with a 7.5% gain, and Aphria (NASDAQ: APHA) up 5.2%. So what There's no specific new news behind the momentum, but 2020 was a big year for the legal marijuana industry, with Arizona, Montana, New Jersey, and South Dakota all voting to legalize recreational marijuana use in their respective states through ballot initiatives. Mississippi voted to permit medical marijuana use and, according to a tally by CNN, this means that recreational use will soon be legal across 15 states, and medical marijuana in 36 states (once "regulatory structures" have been set up to permit this in the respective states.) | What happened Marijuana stocks are entering 2021 on a high note, with shares of Aurora Cannabis (NYSE: ACB) leading the pack 12.5% higher as of 10:40 a.m. EST, Canopy Growth (NASDAQ: CGC) not far behind with a 7.5% gain, and Aphria (NASDAQ: APHA) up 5.2%. To gain control of the Senate, the Democrats must win both Georgia Senate seats up for grabs tomorrow. 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. |
37002.0 | 2021-01-03 00:00:00 UTC | The Top 50 Robinhood Stocks in 2021 | ACB | https://www.nasdaq.com/articles/the-top-50-robinhood-stocks-in-2021-2021-01-03 | nan | nan | One of the most volatile years on record for the stock market has officially come to a close. Despite losing over a third of its value during the first quarter, the widely followed S&P 500 ended the year on a high note, with the index advancing by a double-digit percentage.
For some investors, volatility can be unnerving. But for millennial and novice investors, it's been an insatiable lure.
Image source: Getty Images.
Millennials are flocking to Robinhood
Online investing app Robinhood, which is best-known for its commission-free trades, fractional share investing, and gifting of free shares of stock to new members, has been particularly popular among younger investors. With an average user age of 31, Robinhood gained an estimated 3 million new users in 2020.
In one sense, it's fantastic to see young investors putting their money to work in the greatest wealth creator on the planet. Historically, the stock market has doubled about once every decade, including dividend reinvestment. Over four decades, an initial investment would increase 1,500%, hypothetically assuming that the historic average return holds true.
On the other hand, Robinhood hasn't exactly provided these millennial and novice investors with the tools and education they're going to need to be successful over the long run. As a result, Robinhood's leaderboard (i.e., the most-held stocks on the platform) is a mix a brand-name companies and absolute head-scratching dart throws.
As we move headlong into a new year, here are the top 50 Robinhood stocks for 2021, as ranked by the platform's leaderboard.
COMPANY COMPANY
1. Apple 26. Fitbit
2. Tesla Motors (NASDAQ: TSLA) 27. OrganiGram
3. General Electric 28. JetBlue Airways
4. Ford Motor 29. Nikola
5. American Airlines Group (NASDAQ: AAL) 30. Royal Caribbean Group
6. Pfizer 31. Spirit Airlines
7. Carnival 32. Southwest Airlines
8. Delta Air Lines 33. Genius Brands
9. NIO (NYSE: NIO) 34. Twitter
10. Disney 35. Prospect Capital
11. Moderna 36. Netflix
12. Amazon 37. Coca-Cola
13. Microsoft 38. Direxion Daily S&P Oil & Gas Bull 2X
14. GoPro 39. MGM Resorts
15. Aurora Cannabis (NYSE: ACB) 40. Workhorse Group
16. Plug Power 41. Facebook
17. Norwegian Cruise Line (NYSE: NCLH) 42. AT&T
18. Snap 43. Uber Technologies
19. Marathon Oil 44. Canopy Growth
20. United Airlines 45. ExxonMobil
21. Bank of America 46. Starbucks
22. Aphria 47. Draftkings
23. Alibaba 48. Inovio Pharmaceuticals
24. AMC Entertainment 49. Palantir Technologies
25. Boeing 50. Virgin Galactic
Data source: Robinhood, current as of 12/29/2020. Table by author.
What stands out?
Now that you've had a closer look at what millennial and novice investors have been buying, let's take a closer look at some of the standout trends.
A dangerous obsession with travel stocks
The first thing that jumps about from this list of the 50 most-held Robinhood stocks is just how many top holdings are airlines or cruise line companies. It's absolutely frightening that six of the top 32 most-held stocks are capital-intensive, low-margin, and generally debt-ridden airline stocks.
American Airlines, which happens to be the fifth-most-held stock on the entire platform, is lugging around more than $41 billion in debt. Though it's had access to coronavirus relief loans, the debt it's carrying around will minimize its financial flexibility for many years to come. To boot, we don't know when air travel is going to get back to pre-coronavirus disease 2019 (COVID-19) levels, and most airline stocks, including American, have suspended their dividends and share buybacks.
Among cruise lines, Norwegian nearly capsized in May when it warned Wall Street about its ability to raise capital to stay afloat. Management has, thankfully, been aggressive with its cost-cutting and capital-raising tactics. Nevertheless, it could be years before the cruise industry is back to its former glory.
Image source: Getty Images.
Young investors love cannabis
It's no secret that, when broken down by age group, people between the ages of 18 and 34 have the most favorable view of marijuana. That's why it's no surprise to find four marijuana stocks among the 50 most-held stocks on the platform.
At one time, Aurora Cannabis was the most-held stock on Robinhood. But after declining by close to 90% over the trailing three years, it appears to have lost most of its allure with millennials. Aurora Cannabis has been financing its day-to-day operations and acquisitions with its common stock for years, which is ultimately responsible for diluting the daylights out of the company's long-term shareholders.
Arguably Robinhood's biggest flaw is that it doesn't allow its users to purchase stocks listed on the over-the-counter (OTC) exchange. In some ways that's a positive thing, as there are a sea of bad-news penny stocks listed on the OTC boards. But many of the best U.S. marijuana stocks are listed on the OTC exchange. In short, millennials have been stuck investing in some of the worst cannabis stocks.
A Tesla Model S plugged in for charging. Image source: Tesla.
Renewable energy is on their mind
Young investors are also enthralled with the idea of putting their money to work in renewable energy stocks. More specifically, Robinhood's top 50 contains four electric-vehicle (EV) stocks and Plug Power, which is focused on hydrogen fuel cell solutions. Technically, General Motors and Ford can also be added to the list, given that they're investing billions each year into EVs and autonomous vehicle technology.
Robinhood investors have always had an affinity for chasing big gains, which is probably why Tesla and NIO have catapulted into the top 10 most-held stocks. Tesla was the top-performing megacap stock in 2020, with NIO catapulting more than 1,000% at one point. Millennials rightly understand that EVs are the future of the auto industry, and they want to get in early on that investment.
However, meeting exceptionally lofty expectations could be difficult for Tesla, NIO, and a host of other EV manufacturers. Tesla is only making around 500,000 EVs annually, yet holds a valuation that's as big as multiple established car brands on a combined basis. Meanwhile, NIO has a nearly $69 billion market cap and is only delivering around 50,000 EVs on annual run-rate basis. Suffice it to say, renewable energy is a high-growth but risky bet in 2021.
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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. 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 Amazon, AT&T, Bank of America, ExxonMobil, and Facebook. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, and Walt Disney. The Motley Fool owns shares of Fitbit, Palantir Technologies Inc., and Spirit Airlines. The Motley Fool recommends Carnival, Delta Air Lines, JetBlue Airways, Southwest Airlines, and Uber Technologies and recommends the following options: short January 2021 $135 calls on Walt Disney, long January 2022 $1920 calls on Amazon, short January 2021 $100 calls on Starbucks, long January 2021 $60 calls on Walt Disney, and short January 2022 $1940 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 (NYSE: ACB) 40. As a result, Robinhood's leaderboard (i.e., the most-held stocks on the platform) is a mix a brand-name companies and absolute head-scratching dart throws. To boot, we don't know when air travel is going to get back to pre-coronavirus disease 2019 (COVID-19) levels, and most airline stocks, including American, have suspended their dividends and share buybacks. | Aurora Cannabis (NYSE: ACB) 40. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, and Walt Disney. The Motley Fool owns shares of Fitbit, Palantir Technologies Inc., and Spirit Airlines. | Aurora Cannabis (NYSE: ACB) 40. A dangerous obsession with travel stocks The first thing that jumps about from this list of the 50 most-held Robinhood stocks is just how many top holdings are airlines or cruise line companies. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, and Walt Disney. | Aurora Cannabis (NYSE: ACB) 40. A dangerous obsession with travel stocks The first thing that jumps about from this list of the 50 most-held Robinhood stocks is just how many top holdings are airlines or cruise line companies. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Netflix, OrganiGram Holdings, Starbucks, Tesla, Twitter, Virgin Galactic Holdings Inc, and Walt Disney. |
37003.0 | 2021-01-02 00:00:00 UTC | 4 Pot Stocks to Avoid Like the Plague in 2021 | ACB | https://www.nasdaq.com/articles/4-pot-stocks-to-avoid-like-the-plague-in-2021-2021-01-02 | nan | nan | Over the next decade, North American cannabis sales should soar. Canada waved the green flag on recreational weed sales on Oct. 17, 2018. Meanwhile, 36 states in the U.S. have legalized medical marijuana, 15 of which also allow for adult-use consumption or retail sale. It's a legitimate, fast-growing business that could very well show investors the green.
However, not all companies in next-big-thing industries can be winners. If you're looking to put your money to work in one of the fastest-growing industries on the planet, avoid the following four marijuana stocks like the plague in 2021.
Image source: Getty Images.
Aurora Cannabis
As has been the case for the past two years, Canadian licensed producer Aurora Cannabis (NYSE: ACB) is possibly the most dangerous pot stock to own. Even with its shares down close to 90% over the trailing three-year period, there's a lot that could still go wrong for the world's most popular pot stock.
The biggest beef that investors should have with Aurora Cannabis is the company's complete disregard for its shareholders. The company has regularly financed its day-to-day operations and acquisitions by issuing common stock. Since April 2019, Aurora has completed at-the-market offering programs of $400 million and $250 million, and its board approved another $500 million in 2020. In plainer English, Aurora's outstanding share count has risen by more than 11,800% since June 2014. It's drowning existing shareholders.
Aside from the constant share issuances, Aurora's management team hasn't exactly inspired confidence. Both the previous and new management teams have punted positive earnings before interest, taxes, depreciation, and amortization (EBITDA) further down the road. This is worrisome because positive EBITDA is needed to avoid defaulting on its updated debt covenant.
Even if Aurora Cannabis is able to finally generate positive EBITDA after significant cost-cutting activity, it's likely years away from turning a profit. A company that's backpedaling in a fast-growing industry isn't where you want to park your money.
Image source: Getty Images.
Cronos Group
Another marijuana stock investors should avoid like the plague in 2020 is Canada's Cronos Group (NASDAQ: CRON).
Cronos may have the second-most cash on hand of any pure-play pot stock, but its operating performance has been abysmal. In the quarter that ended in September, Cronos produced only 11.4 million Canadian dollars ($8.9 million U.S.) in net sales and a negative gross margin. Through the first nine months of 2020, Cronos' CA$110 million in operating expenses absolutely dwarfs the meager CA$29.7 million in total sales it's recorded. In other words, it's not going to be profitable anytime soon.
Cronos Group also hurt itself by not building up a production presence in Canada. Whereas most of its peers expanded too much, Cronos did the opposite. Its Peace Naturals farm is only capable of 40,000 kilos of pot per year. That's not much at all -- especially in a market craving value-priced dried flower.
But maybe the biggest disappointment of all is that its partnership with tobacco giant Altria Group isn't paying dividends. It was widely expected that Altria would help Cronos Group develop and market cannabis vapes and other derivative products throughout North America. Unfortunately, little progress has been made on this front. Until Cronos can get its higher-margin derivatives segment off the ground, it doesn't belong in your portfolio.
Image source: Getty Images.
HEXO
If you haven't figured it out by now, the plan in 2021 is to avoid most high-profile Canadian licensed producers that mismanaged their early stage expansion. That includes Quebec-based HEXO (NYSE: HEXO).
I'll admit that by mid-2019, HEXO looked great. It had acquired Newstrike Brands to bolster its capacity, was expected to lean heavily on higher-margin derivative products, and had secured an aggregate 200,000-kilo wholesale order with Quebec over a five-year period. However, regulatory and supply channel issues have plagued the launch of derivatives. Meanwhile, the Newstrike deal ultimately wasn't needed. HEXO eventually wrote down the bulk of the purchase and sold the Niagara facility for a mere CA$10.25 million.
More concerning is HEXO's cash situation. Like Aurora Cannabis, HEXO has been burning through its cash and has turned to share offerings of various forms to raise capital. Although HEXO's outstanding share count hasn't ballooned as much as Aurora's, it's still skyrocketed in recent years. That's bad news for shareholders.
HEXO also recently completed a 4-for-1 reverse split to avoid being delisted from the New York Stock Exchange. Here's a tip: Companies that are in solid financial shape rarely, if ever, have to worry about enacting reverse splits to avoid delisting. HEXO should be avoided in 2021.
Image source: Getty Images.
Canopy Growth
Finally, pot stock investors would be wise to keep their distance from the most cash-rich publicly traded cannabis stock on the planet, Canopy Growth (NASDAQ: CGC).
Canopy Growth does have what's arguably the best equity partnership in the cannabis space. Spirits giant Constellation Brands (NYSE: STZ) has made four separate direct or indirect investments into Canopy since October 2017, pushing its ownership in Canopy to more than 38%. Constellation Brands has a clear vested interest in Canopy Growth's success, which is likely why its former CFO, David Klein, is now Canopy's CEO.
But like Aurora, Cronos, and HEXO, Canopy Growth is failing miserably in the operating department. Even with Klein overseeing the closure of 3 million square feet of indoor growing space in British Columbia, as well as a significant reduction in share-based compensation, the company's operating loss totaled more than CA$284 million in the fiscal second quarter. Through the first six months of fiscal 2021, Canopy's gross margin is only 13.2% and it's lost almost CA$457 million on an operating basis.
What's potentially scarier is how quickly the company is burning through its monstrous cash pile. By the end of calendar year 2018, Canopy Growth had close to CA$5 billion in cash on its balance sheet. But by the end of September 2020, it was down to CA$1.72 billion. Mind you, this includes a CA$245 million add-on investment from Constellation earlier this year.
The only thing ablaze right now is Canopy's balance sheet. That's not a good thing. Avoid marijuana's biggest stock by market cap in 2021.
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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 HEXO. 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 As has been the case for the past two years, Canadian licensed producer Aurora Cannabis (NYSE: ACB) is possibly the most dangerous pot stock to own. It was widely expected that Altria would help Cronos Group develop and market cannabis vapes and other derivative products throughout North America. It had acquired Newstrike Brands to bolster its capacity, was expected to lean heavily on higher-margin derivative products, and had secured an aggregate 200,000-kilo wholesale order with Quebec over a five-year period. | Aurora Cannabis As has been the case for the past two years, Canadian licensed producer Aurora Cannabis (NYSE: ACB) is possibly the most dangerous pot stock to own. Cronos Group Another marijuana stock investors should avoid like the plague in 2020 is Canada's Cronos Group (NASDAQ: CRON). In the quarter that ended in September, Cronos produced only 11.4 million Canadian dollars ($8.9 million U.S.) in net sales and a negative gross margin. | Aurora Cannabis As has been the case for the past two years, Canadian licensed producer Aurora Cannabis (NYSE: ACB) is possibly the most dangerous pot stock to own. Cronos Group Another marijuana stock investors should avoid like the plague in 2020 is Canada's Cronos Group (NASDAQ: CRON). Canopy Growth Finally, pot stock investors would be wise to keep their distance from the most cash-rich publicly traded cannabis stock on the planet, Canopy Growth (NASDAQ: CGC). | Aurora Cannabis As has been the case for the past two years, Canadian licensed producer Aurora Cannabis (NYSE: ACB) is possibly the most dangerous pot stock to own. It was widely expected that Altria would help Cronos Group develop and market cannabis vapes and other derivative products throughout North America. HEXO should be avoided in 2021. |
37004.0 | 2020-12-31 00:00:00 UTC | CANADA STOCKS-TSX falls on weakness in energy, materials stocks | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-on-weakness-in-energy-materials-stocks-2020-12-31 | nan | nan | Adds details; updates prices
Dec 31 (Reuters) - Canada's main stock index fell on the last trading day of the year on Thursday, weighed down by weakness in materials and energy stocks, while investors focused on fading prospects for bigger U.S. stimulus checks.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, slipped 0.7%, while the energy sector .SPTTEN was down 0.4% as U.S. crude CLc1 and Brent crude LCOc1 both lost 0.7% a barrel O/R
* At 09:37 a.m. ET (14:37 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 62.3 points, or 0.36%, at 17,483.51.
* The TSX is set to record a 2.46% gain in 2020, compared with a 19.1% jump last year, as a surge in coronavirus cases and strict restrictions weighed.
* Pot producers Cronos Group Inc CRON.TO and Aurora Cannabis ACB.TO were the biggest decliners in the index on Thursday, falling 2.3% and 2.2%, respectively.
* The financials sector .SPTTFS slipped 0.2% and the industrials sector .GSPTTIN fell 0.4%.
* On the TSX, 34 issues were higher, while 178 issues declined for a 5.24-to-1 ratio to the downside, with 11.39 million shares traded.
* The largest percentage gainers on the TSX were WPT Industrial Real Estate Investment Trust WIR_u.TO, which jumped 1.1%, and Imperial Oil Ltd IMO.TO, which rose 1.1%.
* The most heavily traded shares by volume were Power Corp of Canada POW.TO, Bank of Nova Scotia BNS.TO, and TC Energy Corp TRP.TO.
* The TSX posted three new 52-week highs and no new lows.
* Across all Canadian issues there were 23 new 52-week highs and one new low, with total volume of 23.74 million shares.
(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. | * Pot producers Cronos Group Inc CRON.TO and Aurora Cannabis ACB.TO were the biggest decliners in the index on Thursday, falling 2.3% and 2.2%, respectively. * The TSX is set to record a 2.46% gain in 2020, compared with a 19.1% jump last year, as a surge in coronavirus cases and strict restrictions weighed. * The largest percentage gainers on the TSX were WPT Industrial Real Estate Investment Trust WIR_u.TO, which jumped 1.1%, and Imperial Oil Ltd IMO.TO, which rose 1.1%. | * Pot producers Cronos Group Inc CRON.TO and Aurora Cannabis ACB.TO were the biggest decliners in the index on Thursday, falling 2.3% and 2.2%, respectively. Adds details; updates prices Dec 31 (Reuters) - Canada's main stock index fell on the last trading day of the year on Thursday, weighed down by weakness in materials and energy stocks, while investors focused on fading prospects for bigger U.S. stimulus checks. * The financials sector .SPTTFS slipped 0.2% and the industrials sector .GSPTTIN fell 0.4%. | * Pot producers Cronos Group Inc CRON.TO and Aurora Cannabis ACB.TO were the biggest decliners in the index on Thursday, falling 2.3% and 2.2%, respectively. Adds details; updates prices Dec 31 (Reuters) - Canada's main stock index fell on the last trading day of the year on Thursday, weighed down by weakness in materials and energy stocks, while investors focused on fading prospects for bigger U.S. stimulus checks. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, slipped 0.7%, while the energy sector .SPTTEN was down 0.4% as U.S. crude CLc1 and Brent crude LCOc1 both lost 0.7% a barrel O/R * At 09:37 a.m. | * Pot producers Cronos Group Inc CRON.TO and Aurora Cannabis ACB.TO were the biggest decliners in the index on Thursday, falling 2.3% and 2.2%, respectively. Adds details; updates prices Dec 31 (Reuters) - Canada's main stock index fell on the last trading day of the year on Thursday, weighed down by weakness in materials and energy stocks, while investors focused on fading prospects for bigger U.S. stimulus checks. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, slipped 0.7%, while the energy sector .SPTTEN was down 0.4% as U.S. crude CLc1 and Brent crude LCOc1 both lost 0.7% a barrel O/R * At 09:37 a.m. |
37005.0 | 2020-12-31 00:00:00 UTC | Interesting ACB Put And Call Options For February 2021 | ACB | https://www.nasdaq.com/articles/interesting-acb-put-and-call-options-for-february-2021-2020-12-31 | nan | nan | Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options become available today, for the February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new February 2021 contracts and identified one put and one call contract of particular interest.
The put contract at the $8.00 strike price has a current bid of 20 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $8.00, but will also collect the premium, putting the cost basis of the shares at $7.80 (before broker commissions). To an investor already interested in purchasing shares of ACB, that could represent an attractive alternative to paying $8.55/share today.
Because the $8.00 strike represents an approximate 6% 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 2.50% return on the cash commitment, or 21.22% 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 $8.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $9.50 strike price has a current bid of 25 cents. If an investor was to purchase shares of ACB stock at the current price level of $8.55/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $9.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 14.04% if the stock gets called away at the February 2021 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 $9.50 strike highlighted in red:
Considering the fact that the $9.50 strike represents an approximate 11% 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 2.92% boost of extra return to the investor, or 24.82% 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 $8.55) to be 146%. 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 $9.50 strike highlighted in red: Considering the fact that the $9.50 strike represents an approximate 11% 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 February 2021 expiration. | Below is a chart showing ACB's trailing twelve month trading history, with the $9.50 strike highlighted in red: Considering the fact that the $9.50 strike represents an approximate 11% 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 February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new February 2021 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 $9.50 strike highlighted in red: Considering the fact that the $9.50 strike represents an approximate 11% 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 February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new February 2021 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 $9.50 strike highlighted in red: Considering the fact that the $9.50 strike represents an approximate 11% 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 February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new February 2021 contracts and identified one put and one call contract of particular interest. |
37006.0 | 2020-12-31 00:00:00 UTC | Will Aurora Cannabis Recover in 2021? | ACB | https://www.nasdaq.com/articles/will-aurora-cannabis-recover-in-2021-2020-12-31 | nan | nan | When Canada legalized recreational marijuana on Oct. 17, 2018, investors flocked to the companies in the sector under the belief that an entireglobal marketwas about to open. That set off a bubble for many pot stocks -- one that deflated as reality set in that federal legalization in the U.S. was still a long way off.
One of the most widely held marijuana stocks has been Aurora Cannabis (NYSE: ACB). But in the years since the Canadian market opened, its share price has dropped by 93%. Given those relative lows, investors may wonder whether it's oversold and due for significant gains in the quarters ahead. A look at the underlying business offers some clues about the answer to that question.
Image source: Getty Images.
Aurora management has been trying to improve its business fundamentals since it launched a transformation plan early in 2020. The goals are to reduce expenses, better scrutinize capital expenditures, and improve the balance sheet en route to attaining profitability.
The company seemed to be making progress, and management had said it was on track to report positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) this year. But in a recent business update, Aurora said its "back to basics" business strategy "will delay the Company's ability to achieve positive Adjusted EBITDA as management invests in its consumer business."
That's not good news for investors. There's little doubt that the trend toward legalizing marijuana has momentum. It's happening at the state level, but U.S. federal legalization is likely still fairly far off. That is likely the only route for Aurora's business to thrive. Investors looking to invest in the cannabis sector in 2021 can find companies other than Aurora that have growing revenue and clearer paths to profitability.
10 stocks we like better than Aurora Cannabis Inc.
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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.
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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. | One of the most widely held marijuana stocks has been Aurora Cannabis (NYSE: ACB). When Canada legalized recreational marijuana on Oct. 17, 2018, investors flocked to the companies in the sector under the belief that an entireglobal marketwas about to open. The goals are to reduce expenses, better scrutinize capital expenditures, and improve the balance sheet en route to attaining profitability. | One of the most widely held marijuana stocks has been Aurora Cannabis (NYSE: ACB). But in a recent business update, Aurora said its "back to basics" business strategy "will delay the Company's ability to achieve positive Adjusted EBITDA as management invests in its consumer business." After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | One of the most widely held marijuana stocks has been Aurora Cannabis (NYSE: ACB). But in a recent business update, Aurora said its "back to basics" business strategy "will delay the Company's ability to achieve positive Adjusted EBITDA as management invests in its consumer business." * 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! | One of the most widely held marijuana stocks has been Aurora Cannabis (NYSE: ACB). That is likely the only route for Aurora's business to thrive. 10 stocks we like better than Aurora Cannabis Inc. |
37007.0 | 2020-12-31 00:00:00 UTC | 3 Reasons to Buy Canopy Growth, And 1 Reason to Sell | ACB | https://www.nasdaq.com/articles/3-reasons-to-buy-canopy-growth-and-1-reason-to-sell-2020-12-31 | nan | nan | Canopy Growth (NASDAQ: CGC) has always been an investor favorite, even though it's struggled from time to time. After a 2019 in which the cannabis industry suffered some major setbacks, Canopy tried its best to get back on track in 2020. Even though it wasn't enough to bring in profits, the company finally saw its revenue rising.
Despite having strong financial backing from Constellation Brands (NYSE: STZ), the company continued cost-cutting strategies to reduce operating expenses this year. Its recent impressive second-quarter fiscal 2021 results for the period ending Sept. 30 were proof of the progress Canopy has made.
Not only did it see a 77% year-over-year jump in reported revenue to 135.3 million Canadian dollars, but it also managed to reduce its selling, general, and administrative (SG&A) expenses in pursuit of positive EBITDA (or earnings before interest, tax, depreciation, and amortization). Recently, it also announced further cost-cutting measures in Canada to bring the company closer to profitability.
Here are three reasons why you should put your hard-earned money into this exciting pot stock right now, and one big risk that it carries.
Image source: Getty Images.
One reason to sell
Before I tell you the positives, let's investigate the disadvantage of owning Canopy stock. Despite having a first-mover advantage in the medical cannabis market, Canopy Growth is still not profitable. The company first started selling cannabis oil in the fourth quarter of FY 2016.
The company stands strong on its medical cannabis business, no doubt. It saw a 72% year-over-year surge in medical cannabis revenue (Canada and international) to CA$92.2 million in the recent quarter. But Canadian revenue growth is still affected by regulatory hurdles that delay the opening of legal stores in some provinces. This causes a mismatch between demand and supply, and has helped prevent Canopy from achieving positive EBITDA.
However, the company is taking all the necessary steps to grow revenue, cut costs, and get closer to profitability.
Cost-cutting strategies
On Dec. 9, Canopy announced it was ceasing operations at a few of its facilities in Canada. Close to 220 employees were affected as part of these changes. Management expects to achieve CA$150 million to $200 million in cost savings, taking Canopy closer to profitability. Related to these changes, the company estimates it will record total pre-tax charges of between CA$350 million and CA$400 million in the third and fourth quarters of fiscal year 2021.
Since David Klein took over the reins of the company as CEO, cost-cutting strategies have been aggressive. The fact that the CEO is running a tight ship is a good sign. In April, Canopy exited operations in South Africa and Lesotho and closed some facilities in Canada, Colombia, and New York.
That helped the company reduce its SG&A expenses in the second quarter by 19%, to CA$147 million, from the prior-year period. It helped improve the EBITDA loss from CA$150.4 million in Q2 2020 to CA$85.7 million this quarter. Peer Aurora Cannabis (NYSE: ACB) implemented similar cost-cutting strategies this year, but it appears the company is still far from rebounding any time soon.
Image source: Getty Images.
Its dominance in the cannabis beverage segment
Canada legalized derivatives in October 2019 as part of "Cannabis 2.0" legalization. The new laws allowed vapes, beverages, concentrates, edibles, and more. Canopy has launched a variety of those products since then, but one special area to applaud is its beverage segment. Canopy has shipped over 1.2 million cannabis beverages since late March, most of which are ready-to-drink tetrahydrocannabinol (THC) cannabis beverages. These were marketed under the Tweed, Houseplant, and DeepSpace brands.
According to management, the company controls 70% of Canada's market share just five brands of products. So imagine the potential when it launches more beverages and expands into the U.S. market, where it has a distribution advantage with two of its partners -- Constellation Brands and Acreage Holdings.
Canopy cannot begin the production and sale of marijuana in the country until it is federally allowed. So its acquisition deal with hemp company Acreage will be final whenever U.S. federal legalization comes to fruition. Both companies are planning to launch a wide array of beverages next summer.
Leading the beverage market, which is expected to grow by a compound annual growth rate (CAGR) of 18% to $2.8 billion by 2025, according to Grand View Research, is a huge point for Canopy. Besides Canopy, only peer HEXO has launched cannabis beverages. Aphria's recent acquisition of U.S. craft brewer SweetWater Brewing Company has marked its entry into this segment, but it could take a while before it launches any products.
A strong financial backing
Cash is king, especially in an evolving sector like marijuana. The legal status of cannabis in many countries keeps companies from expanding. Here, Canopy Growth has an advantage because of its financial partner, Constellation Brands. This U.S. beverage giant entered into a strategic partnership in October 2017 by investing CA$245 million in the business. Though the investment hasn't borne much fruit for Constellation yet, the company has faith in the cannabis industry and Canopy's potential. Constellation has been increasing its stake in Canopy since then by exercising its warrants, and it now holds a 38.6% stake. Canopy ended the second quarter with $1.7 billion in cash and short-term investments.
Constellation did most of the heavy lifting for Canopy, which saved it from being burdened with debt, unlike peer Aurora Cannabis. Furthermore, as the maker of Corona beer, Constellation's extensive network in the U.S. can help Canopy distribute its cannabis-infused beverages there.
Canopy is already dominating the Canadian beverage market, and I don't think it will be too long from now when the same happens in the U.S. Shares of Canopy have jumped 15% so far this year, while Aurora's stock has sunk 67%. The Horizons Marijuana Life Sciences ETF, the industry benchmark, has fallen 9% over the same period.
CGC data by YCharts
Constellation's backing, cost-cutting strategies, a strong leadership team, and focus on more innovative derivative products could take Canopy a long way next year. And federal legalization (whenever it inevitably comes) will open huge doors for Canopy in the U.S. cannabis market. I don't see much longer before this cannabis stock starts turning a profit, making it a solid buy 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 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. | Peer Aurora Cannabis (NYSE: ACB) implemented similar cost-cutting strategies this year, but it appears the company is still far from rebounding any time soon. Not only did it see a 77% year-over-year jump in reported revenue to 135.3 million Canadian dollars, but it also managed to reduce its selling, general, and administrative (SG&A) expenses in pursuit of positive EBITDA (or earnings before interest, tax, depreciation, and amortization). Leading the beverage market, which is expected to grow by a compound annual growth rate (CAGR) of 18% to $2.8 billion by 2025, according to Grand View Research, is a huge point for Canopy. | Peer Aurora Cannabis (NYSE: ACB) implemented similar cost-cutting strategies this year, but it appears the company is still far from rebounding any time soon. Despite having strong financial backing from Constellation Brands (NYSE: STZ), the company continued cost-cutting strategies to reduce operating expenses this year. Management expects to achieve CA$150 million to $200 million in cost savings, taking Canopy closer to profitability. | Peer Aurora Cannabis (NYSE: ACB) implemented similar cost-cutting strategies this year, but it appears the company is still far from rebounding any time soon. Canopy has shipped over 1.2 million cannabis beverages since late March, most of which are ready-to-drink tetrahydrocannabinol (THC) cannabis beverages. Though the investment hasn't borne much fruit for Constellation yet, the company has faith in the cannabis industry and Canopy's potential. | Peer Aurora Cannabis (NYSE: ACB) implemented similar cost-cutting strategies this year, but it appears the company is still far from rebounding any time soon. Its dominance in the cannabis beverage segment Canada legalized derivatives in October 2019 as part of "Cannabis 2.0" legalization. So imagine the potential when it launches more beverages and expands into the U.S. market, where it has a distribution advantage with two of its partners -- Constellation Brands and Acreage Holdings. |
37008.0 | 2020-12-31 00:00:00 UTC | CANADA STOCKS - TSX falls 0.53% to 17,451.95 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-0.53-to-17451.95-2020-12-31 | nan | nan | * The Toronto Stock Exchange's TSX falls 0.53 percent to 17,451.95
* Leading the index were Trillium Therapeutics Inc , up 9.3%, Bausch Health Companies Inc BHC.TO, up 3.6%, and Element Fleet Management Corp EFN.TO, higher by 2.3%.
* Lagging shares were Cronos Group Inc CRON.TO, down 5.0%, Aurora Cannabis Inc ACB.TO, down 4.8%, and MEG Energy Corp MEG.TO, lower by 3.6%.
* On the TSX 55 issues rose and 164 fell as a 0.3-to-1 ratio favored decliners. There were 5 new highs and no new lows, with total volume of 92.6 million shares.
* The most heavily traded shares by volume were Cenovus Energy Inc CVE.TO, Bank Of Nova Scotia BNS.TO and Power Corporation Of Canada POW.TO.
* The TSX's energy group .SPTTEN fell 1.27 points, or 1.4%, while the financials sector .SPTTFS climbed 0.33 points, or 0.1%.
* West Texas Intermediate crude futures CLc1 rose 0.1%, or $0.05, to $48.45 a barrel. Brent crude LCOc1 rose 0.17%, or $0.09, to $51.72 O/R
* The TSX is up 2.3% for the year.
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 Cronos Group Inc CRON.TO, down 5.0%, Aurora Cannabis Inc ACB.TO, down 4.8%, and MEG Energy Corp MEG.TO, lower by 3.6%. * The Toronto Stock Exchange's TSX falls 0.53 percent to 17,451.95 * Leading the index were Trillium Therapeutics Inc , up 9.3%, Bausch Health Companies Inc BHC.TO, up 3.6%, and Element Fleet Management Corp EFN.TO, higher by 2.3%. * The most heavily traded shares by volume were Cenovus Energy Inc CVE.TO, Bank Of Nova Scotia BNS.TO and Power Corporation Of Canada POW.TO. | * Lagging shares were Cronos Group Inc CRON.TO, down 5.0%, Aurora Cannabis Inc ACB.TO, down 4.8%, and MEG Energy Corp MEG.TO, lower by 3.6%. * On the TSX 55 issues rose and 164 fell as a 0.3-to-1 ratio favored decliners. * The TSX's energy group .SPTTEN fell 1.27 points, or 1.4%, while the financials sector .SPTTFS climbed 0.33 points, or 0.1%. | * Lagging shares were Cronos Group Inc CRON.TO, down 5.0%, Aurora Cannabis Inc ACB.TO, down 4.8%, and MEG Energy Corp MEG.TO, lower by 3.6%. * The Toronto Stock Exchange's TSX falls 0.53 percent to 17,451.95 * Leading the index were Trillium Therapeutics Inc , up 9.3%, Bausch Health Companies Inc BHC.TO, up 3.6%, and Element Fleet Management Corp EFN.TO, higher by 2.3%. * The most heavily traded shares by volume were Cenovus Energy Inc CVE.TO, Bank Of Nova Scotia BNS.TO and Power Corporation Of Canada POW.TO. | * Lagging shares were Cronos Group Inc CRON.TO, down 5.0%, Aurora Cannabis Inc ACB.TO, down 4.8%, and MEG Energy Corp MEG.TO, lower by 3.6%. * The Toronto Stock Exchange's TSX falls 0.53 percent to 17,451.95 * Leading the index were Trillium Therapeutics Inc , up 9.3%, Bausch Health Companies Inc BHC.TO, up 3.6%, and Element Fleet Management Corp EFN.TO, higher by 2.3%. * The TSX's energy group .SPTTEN fell 1.27 points, or 1.4%, while the financials sector .SPTTFS climbed 0.33 points, or 0.1%. |
37009.0 | 2020-12-31 00:00:00 UTC | 2 Cannabis Stocks That Could Double Your Money Next Year | ACB | https://www.nasdaq.com/articles/2-cannabis-stocks-that-could-double-your-money-next-year-2020-12-31 | nan | nan | When investors talk about cannabis stocks, Canadian players Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. But in 2020, U.S. cannabis companies not only proved their potential, but outperformed their Canadian counterparts. Two such companies are Illinois-based Green Thumb Industries (OTC: GTBIF) and Florida-based Trulieve Cannabis (OTC: TCNNF).
Both these companies have seen triple-digit revenue growth this year and are dominating their state markets. Green Thumb is already profitable, and Trulieve is not far away.
It's no wonder their stocks have been sky high in 2020. With the year coming to an end, shares of Trulieve have soared 173% so far, while Green Thumb's stock has gained 146%. Meanwhile, the benchmark index, Horizons Marijuana Life Sciences ETF, sunk 9% over the same period. Let's dig deeper and look at the outstanding progress these two pot companies made this year and what opportunities lie ahead for 2021.
Image source: Getty Images.
Green Thumb's revenue growth led the way to profitability
Green Thumb offers its medical and recreational marijuana products through its Rise and Essence store chains under the Dogwalkers, Dr. Solomon's, and Rhythm brands. Its 48 retail stores across ten states helped revenue grow a stunning 131% year over year to $157.1 million in its second quarter. Increased growth in both of its segments, consumer packaged goods and retail, drove the revenue jump. The company's products are offered through the consumer packaged segment and sold through its retail channels.
Green Thumb's focus is on its home state Illinois -- where eight of its 48 stores are located. And that continues to prove a very wise choice. Illinois saw outstanding sales numbers since it legalized recreational cannabis at the start of the year. Experts predict it could easily cross $1 billion in total sales for 2020. Green Thumb has licenses to open two more stores in the state.
The top-line growth brought in a significant 50% increase from the year-ago period in adjusted EBITDA, which rang in at $53.2 million. Green Thumb also recorded a net income of $9.6 million in the quarter, compared to a loss of $14 million in the year-ago period.
Trulieve is dominating the Sunshine State
Trulieve recorded a 93% year-over-year jump in revenue to $136.3 million in its third quarter ended Sep. 30. Sequentially, revenue also rose from $120 million in the second quarter. This revenue jump led to a straight 83% surge in adjusted EBITDA to $67.5 million. This quarter marks the eleventh consecutive quarter of positive EBITDA. Trulieve opened nine stores in the third quarter, and has a presence in six states with 68 stores nationwide. This drastic growth in a small number of states demonstrates the popularity of its products.
Many smaller cannabis companies struggled to hold onto cash amid the pandemic. This allowed Trulieve to capture its markets. According to Marijuana Business Daily, Trulieve has captured around 52% of the smokable cannabis market share in Florida.
Image source: Getty Images.
Both companies have enough scale to thrive
Trulieve's high dependence on medical cannabis was a concern for much of 2020. Many of its peers were generating revenues out of recreational cannabis products (mainly cannabis derivatives), higher-margin products that are growing in demand, while Trulieve focused on the medical segment.
It was wise of Trulieve to step into the cannabis derivatives market when it did. Cannabis derivatives include vapes, edibles, topicals, beverages, and more. In its third quarter, Trulieve launched a wide array of edibles for its medical cannabis patients, including cannabis-infused chocolates, gels, cookies, and brownies. Florida is slated to put a recreational cannabis proposal on the 2022 ballot. Once the state legalizes cannabis for adult use, the company will have an even wider customer base ticking off its revenue growth. Florida is the third most populous state in the U.S. with a population of 21.4 million.
Green Thumb is already making its mark with its recreational products -- so nothing to worry about there. It earns two-thirds of its revenue from its derivatives including edibles, infused beverages, vapes, concentrates, and topicals.
Staying strong in their home states has proven beneficial for both companies. Both are in a solid financial position to grow with the evolving industry. Trulieve ended its third quarter with cash and cash equivalents of $193.4 million. Meanwhile, Green Thumb had $78 million in cash and around $97 million in total debt. However, its rising revenue should be enough to pay off its debts. As more states legalize cannabis, possible federal legalization will help these two to dominate the industry.
HMMJ data by YCharts
Strong fundamentals, outstanding revenue growth, profitable, stable balance sheets, and exciting growth strategies makes both these sure choices for the new year.
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 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. | When investors talk about cannabis stocks, Canadian players Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Let's dig deeper and look at the outstanding progress these two pot companies made this year and what opportunities lie ahead for 2021. In its third quarter, Trulieve launched a wide array of edibles for its medical cannabis patients, including cannabis-infused chocolates, gels, cookies, and brownies. | When investors talk about cannabis stocks, Canadian players Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Green Thumb's revenue growth led the way to profitability Green Thumb offers its medical and recreational marijuana products through its Rise and Essence store chains under the Dogwalkers, Dr. Solomon's, and Rhythm brands. Many of its peers were generating revenues out of recreational cannabis products (mainly cannabis derivatives), higher-margin products that are growing in demand, while Trulieve focused on the medical segment. | When investors talk about cannabis stocks, Canadian players Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Green Thumb's revenue growth led the way to profitability Green Thumb offers its medical and recreational marijuana products through its Rise and Essence store chains under the Dogwalkers, Dr. Solomon's, and Rhythm brands. Trulieve is dominating the Sunshine State Trulieve recorded a 93% year-over-year jump in revenue to $136.3 million in its third quarter ended Sep. 30. | When investors talk about cannabis stocks, Canadian players Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Illinois saw outstanding sales numbers since it legalized recreational cannabis at the start of the year. Meanwhile, Green Thumb had $78 million in cash and around $97 million in total debt. |
37010.0 | 2020-12-31 00:00:00 UTC | 5 Stocks to Sell Right Now | ACB | https://www.nasdaq.com/articles/5-stocks-to-sell-right-now-2020-12-31 | nan | nan | Congratulations, investors! You've made it! We're less than 24 hours from closing the curtain on 2020, which for most folks can't come soon enough.
Although the stock market was incredibly volatile this year, 2020 will go down as yet another green year. In fact, it'll mark the 38th time in the past 46 years that the benchmark S&P 500's total return (including dividends) was positive. But this doesn't mean all stocks fared well.
With this being the last day of the year to take advantage of tax-loss harvesting, I'd suggest selling the following five poorly performing stocks right now.
Image source: Getty Images.
Aurora Cannabis
U.S. marijuana stocks had a pretty good year. However, the same can't be said of our neighbors to the north, which are still struggling with federal and provincial regulatory issues. Having lost two-thirds of its value in 2020 and 88% over the trailing three-year period, it's time for investors to take their lumps and move on from Aurora Cannabis (NYSE: ACB).
Perhaps the biggest issue with Aurora is its complete disregard for its shareholders. For the past six years, the company has financed its day-to-day operations and acquisitions by selling its own stock. Since April 2019, it's done this via at-the-market (ATM) offerings. The company has already completed separate ATM offerings of $400 million and $250 million, and recently introduced another $500 million ATM offering. The point is that Aurora's outstanding share count has ballooned over 11,800% in the past six years. As this share count rises, existing investors are being diluted into oblivion.
Investors should also be skeptical of management's efforts to reach positive earnings before interest, taxes, depreciation, and amortization (EBITDA). Aurora's executives have moved the goalpost to reach positive EBITDA on numerous occasions, even with stringent cost cuts, which have included closing five smaller facilities and halting construction on two large projects. It's a pot stock worth selling right now.
The now-retired Nikola Badger EV pickup truck. Image source: Nikola.
Nikola
Even though its shares are technically up 33% in 2020, the vast majority of investors who piled into electric-vehicle (EV) stock Nikola (NASDAQ: NKLA) did so well after it began its mid-summer romp higher. Over the past six months, it has shed 78% of its value.
The Nikola story looked promising in September when it appeared close to securing a $2 billion equity investment from General Motors (NYSE: GM). It was expected that General Motors would handle the production of Nikola's first mass-produced EV pickup truck, the Badger. But after many months of discussions, the deal fell through. GM and Nikola are still working together in some capacity, but there's no equity investment involved, and GM isn't building the Badger for Nikola. In fact, Nikola retired the Badger before any vehicles were produced.
To make matters worse, Nikola is being probed by the Securities and Exchange Commission (SEC) following allegations from short-side firm Hindenburg Research that Nikola and its founder, Trevor Milton, engaged in fraud. It's worth pointing out that Milton also stepped down from his role as executive chairman via a middle-of-the-night tweet, which is odd, to say the least.
Nikola is a stock that investors can confidently sell right now to preserve their remaining capital.
Image source: American Airlines.
American Airlines Group
Another stock that's a long overdue sell is American Airlines Group (NASDAQ: AAL). The airline industry is a capital-intensive, low-margin operating model, and American is very likely the worst of the worst in this truly avoidable industry.
One of the most notable issues for American Airlines is its balance sheet. It's no secret that the coronavirus outbreak is disrupting air travel like never before, and it's unclear when travelers will return to the skies. American has had to raise capital and seek coronavirus disease 2019 (COVID-19) relief loans to ensure it has enough money to navigate its way through this mess. However, its balance sheet now features about $33 billion in net debt and over $41 billion in total debt. Even if it survives this recession, the company will be strangled by its debt for years to come.
As my Foolish colleague Adam Levine-Weinberg pointed out, American Airlines also has a history of wasting investors' money. Back in 2018, it chose to retire commercial planes well before their useful period was up. Modernizing its fleet before it was needed is yet another reason American's debt load is higher than all other airline stocks.
Now with no dividend or share buybacks, American Airlines' stock is wholly avoidable.
Image source: Getty Images.
Occidental Petroleum
Oil stocks were also clobbered by the COVID-19 pandemic. Lockdowns during the spring in the U.S. and other developed countries caused crude oil demand to crater and, for a brief period, pushed West Texas Intermediate futures into negative territory. This all spells bad news for U.S. shale producer Occidental Petroleum (NYSE: OXY), which is down 57% in 2020 through this past weekend.
Occidental's acquisition of Anadarko, which closed in 2019, simply couldn't have come at a worse time. To be fair, no one could have foreseen the unprecedented disruption that COVID-19 would cause in the oil industry. Nevertheless, it's left Occidental with over $41 billion in outstanding debt, which threatens the long-term viability of the company. Without major divestitures and significant cost-cutting, it's unclear if Occidental will survive to see the long term.
What's more, Occidental Petroleum took a $10 billion investment from Warren Buffett's Berkshire Hathaway in 2019 to help facilitate the Anadarko buyout. In return, Berkshire received preferred stock with an 8% annual yield. Occidental either has to fork over $200 million in cash each quarter to Buffett's company or issue common stock to Berkshire Hathaway in the amount of $200 million.
Suffice it to say, Occidental is in some serious trouble, and selling now to preserve what's left of your initial investment might be a smart idea.
Image source: Getty Images.
Biogen
Lastly, investors should strongly consider dumping biotech blue chip Biogen (NASDAQ: BIIB), which has been whipsawed by Food and Drug Administration (FDA) panel votes and legal battles in 2020. Shares are down 16% through this past weekend.
One of the biggest cash-flow drivers for years has been multiple sclerosis (MS) blockbuster drug Tecfidera. Through the first nine months of 2020, Tecfidera has generated about $3.2 billion in sales. The problem is that Biogen lost a key patent battle in court earlier this year, paving the way for generic drugmakers to launch copycats of its MS blockbuster. Previously expected to be protected through 2028, Tecfidera's cash flow could be squeezed significantly moving forward.
The other issue for Biogen is that the experimental Alzheimer's disease drug aducanumab failed to find an audience with an FDA panel. Although the FDA is not required to follow the advice of its panel, the panel overwhelming voted against multiple questions regarding aducanumab's efficacy.
With little in the way of near-term catalysts, it could be time to say goodbye to this previous cash cow.
10 stocks we like better than Biogen
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Biogen and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 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. | Having lost two-thirds of its value in 2020 and 88% over the trailing three-year period, it's time for investors to take their lumps and move on from Aurora Cannabis (NYSE: ACB). Aurora's executives have moved the goalpost to reach positive EBITDA on numerous occasions, even with stringent cost cuts, which have included closing five smaller facilities and halting construction on two large projects. Lockdowns during the spring in the U.S. and other developed countries caused crude oil demand to crater and, for a brief period, pushed West Texas Intermediate futures into negative territory. | Having lost two-thirds of its value in 2020 and 88% over the trailing three-year period, it's time for investors to take their lumps and move on from Aurora Cannabis (NYSE: ACB). The Nikola story looked promising in September when it appeared close to securing a $2 billion equity investment from General Motors (NYSE: GM). American Airlines Group Another stock that's a long overdue sell is American Airlines Group (NASDAQ: AAL). | Having lost two-thirds of its value in 2020 and 88% over the trailing three-year period, it's time for investors to take their lumps and move on from Aurora Cannabis (NYSE: ACB). Nikola Even though its shares are technically up 33% in 2020, the vast majority of investors who piled into electric-vehicle (EV) stock Nikola (NASDAQ: NKLA) did so well after it began its mid-summer romp higher. American Airlines Group Another stock that's a long overdue sell is American Airlines Group (NASDAQ: AAL). | Having lost two-thirds of its value in 2020 and 88% over the trailing three-year period, it's time for investors to take their lumps and move on from Aurora Cannabis (NYSE: ACB). The point is that Aurora's outstanding share count has ballooned over 11,800% in the past six years. Image source: Nikola. |
37011.0 | 2020-12-30 00:00:00 UTC | Why Marijuana Stocks Are on Fire Today | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-are-on-fire-today-2020-12-30 | nan | nan | What happened
Marijuana stocks bounced higher in Wednesday trading. As of 2:35 p.m. EST, shares of Aurora Cannabis (NYSE: ACB) had risen 2.4%, while larger Aphria (NASDAQ: APHA) and Canopy Growth (NASDAQ: CGC) had notched bigger gains of 3.7% and 4.4%, respectively. For a change, this time the strength seen in marijuana stocks has nothing to do with marijuana legalization in America.
This time, it's all about Mexico.
Image source: Getty Images.
So what
As The Wall Street Journal reports, the Mexican Congress is set to transform Mexico into "the world's largest legal cannabis market" in an upcoming vote that will legalize recreational use of the drug "throughout the supply chain, from farming to distribution and consumption."
Mexico's Senate has already signed off on the legislation. Senators are currently working with their counterparts in the lower house of Congress to agree on a joint bill, with even more lenient restrictions on the amount of marijuana a person can carry in public, which could be approved as early as next month.
Now what
If advocates for the legislation have their way, Mexico could soon become the third country after Canada and Uruguay to completely legalize marijuana for recreational purposes (medicinal marijuana has been legal in Mexico since 2017). More importantly, with a population of 129 million -- roughly three times that of the populations of Canada and Uruguay combined -- Mexico will become by far the largest country in the world to have legalized the drug.
And perhaps even more important, once Mexico and Canada have both legalized marijuana, the United States will be bracketed by countries where the drug is legal. It will also the only member of the United States-Mexico-Canada trade agreement to have not legalized the drug... yet.
If you're wondering what happens after that, look no further than New York, where Gov. Andrew Cuomo last month mused that, with marijuana about to become legal next door in New Jersey, the only thing New York has to lose now from not legalizing weed is tax revenue.
I think you can expect the U.S. Congress to come to the same conclusion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As of 2:35 p.m. EST, shares of Aurora Cannabis (NYSE: ACB) had risen 2.4%, while larger Aphria (NASDAQ: APHA) and Canopy Growth (NASDAQ: CGC) had notched bigger gains of 3.7% and 4.4%, respectively. So what As The Wall Street Journal reports, the Mexican Congress is set to transform Mexico into "the world's largest legal cannabis market" in an upcoming vote that will legalize recreational use of the drug "throughout the supply chain, from farming to distribution and consumption." Senators are currently working with their counterparts in the lower house of Congress to agree on a joint bill, with even more lenient restrictions on the amount of marijuana a person can carry in public, which could be approved as early as next month. | As of 2:35 p.m. EST, shares of Aurora Cannabis (NYSE: ACB) had risen 2.4%, while larger Aphria (NASDAQ: APHA) and Canopy Growth (NASDAQ: CGC) had notched bigger gains of 3.7% and 4.4%, respectively. So what As The Wall Street Journal reports, the Mexican Congress is set to transform Mexico into "the world's largest legal cannabis market" in an upcoming vote that will legalize recreational use of the drug "throughout the supply chain, from farming to distribution and consumption." Now what If advocates for the legislation have their way, Mexico could soon become the third country after Canada and Uruguay to completely legalize marijuana for recreational purposes (medicinal marijuana has been legal in Mexico since 2017). | As of 2:35 p.m. EST, shares of Aurora Cannabis (NYSE: ACB) had risen 2.4%, while larger Aphria (NASDAQ: APHA) and Canopy Growth (NASDAQ: CGC) had notched bigger gains of 3.7% and 4.4%, respectively. Now what If advocates for the legislation have their way, Mexico could soon become the third country after Canada and Uruguay to completely legalize marijuana for recreational purposes (medicinal marijuana has been legal in Mexico since 2017). And perhaps even more important, once Mexico and Canada have both legalized marijuana, the United States will be bracketed by countries where the drug is legal. | As of 2:35 p.m. EST, shares of Aurora Cannabis (NYSE: ACB) had risen 2.4%, while larger Aphria (NASDAQ: APHA) and Canopy Growth (NASDAQ: CGC) had notched bigger gains of 3.7% and 4.4%, respectively. Now what If advocates for the legislation have their way, Mexico could soon become the third country after Canada and Uruguay to completely legalize marijuana for recreational purposes (medicinal marijuana has been legal in Mexico since 2017). And perhaps even more important, once Mexico and Canada have both legalized marijuana, the United States will be bracketed by countries where the drug is legal. |
37012.0 | 2020-12-29 00:00:00 UTC | Why Aurora Cannabis, OrganiGram, and Others Dropped Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-organigram-and-others-dropped-today-2020-12-29 | nan | nan | What happened
Stocks in the cannabis sector both large and small are taking a hit today. As of 1:30 p.m. EST, these four stocks are moving in tandem:
Green Thumb Industries (OTC: GTBIF) is down 4%.
Aurora Cannabis (NYSE: ACB) is down 5%.
HEXO (NYSE: HEXO) is down 5%.
OrganiGram Holdings (NASDAQ: OGI) is down 4%.
Those stocks have a large range in market capitalization of $5 billion, $1.5 billion, $465 million, and $310 million, respectively.
So what
There's no apparent company-specific news today, but something is likely driving market sentiment.
Image source: Getty Images.
One thing that should be noted is that these stocks have been on a roll since before the U.S. election on Nov. 3.
ACB data by YCharts
And U.S. politics continue to be watched closely by cannabis investors as the Georgia Senate runoff election next week could have implications for the path toward federal marijuana legalization.
Some investors may be locking in some profits before the end of the calendar year, fearing the outcome to that election race could hit the sector next week.
Now what
Other investors may feel like the potential in these names is taking too long to play out. But investors in the sector should have these stocks squarely in the speculation portion of a portfolio. Those types of investments may take years to blossom, if they ever do.
Each business needs to be looked at individually, too. While progress toward more widespread legalization should lift all cannabis stocks, not all are performing the same today. Aurora, for example, provided a business update earlier this month. The stock is down more than 20% in December, and the update didn't offer great news on the operations side. The company is closing one facility and scaling back production by 75% in another.
While Aurora's strategy is to work toward profitability, Green Thumb reported in November that it did turn a profit in its third quarter after a 31% increase in revenue versus the prior-year quarter. Management said it expects growth to continue in 2021.
Although OrganiGram and HEXO also reported growing revenue in the most recently reported quarter, neither is profitable. The big picture on cannabis stocks may be more important than the average sector. Federal legalization in the U.S. would likely bring a windfall and lift the whole industry. But investors still need to focus on the underlying business, and of these four, Green Thumb is doing the best. But it also has the highest valuation with a price-to-sales ratio more than double the others.
That's a good reminder that one has to dig deeper than just how much the share prices are moving in a day to decide if it makes for a buying 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
Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Green Thumb Industries and OrganiGram Holdings. The Motley Fool recommends HEXO. 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 And U.S. politics continue to be watched closely by cannabis investors as the Georgia Senate runoff election next week could have implications for the path toward federal marijuana legalization. Aurora Cannabis (NYSE: ACB) is down 5%. Some investors may be locking in some profits before the end of the calendar year, fearing the outcome to that election race could hit the sector next week. | Aurora Cannabis (NYSE: ACB) is down 5%. ACB data by YCharts And U.S. politics continue to be watched closely by cannabis investors as the Georgia Senate runoff election next week could have implications for the path toward federal marijuana legalization. While Aurora's strategy is to work toward profitability, Green Thumb reported in November that it did turn a profit in its third quarter after a 31% increase in revenue versus the prior-year quarter. | ACB data by YCharts And U.S. politics continue to be watched closely by cannabis investors as the Georgia Senate runoff election next week could have implications for the path toward federal marijuana legalization. Aurora Cannabis (NYSE: ACB) is down 5%. 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 (NYSE: ACB) is down 5%. ACB data by YCharts And U.S. politics continue to be watched closely by cannabis investors as the Georgia Senate runoff election next week could have implications for the path toward federal marijuana legalization. What happened Stocks in the cannabis sector both large and small are taking a hit today. |
37013.0 | 2020-12-29 00:00:00 UTC | CANADA STOCKS - TSX falls 0.41% to 17,551.26 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-0.41-to-17551.26-2020-12-29 | nan | nan | * The Toronto Stock Exchange's TSX falls 0.41 percent to 17,551.26
* Leading the index were TransAlta Renewables Inc , up 5.9%, Silvercrest Metals Inc SIL.TO, up 3.8%, and OceanaGold Corp OGC.TO, higher by 3.8%.
* Lagging shares were Ballard Power Systems Inc BLDP.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 6.2%, and Canopy Growth Corp WEED.TO, lower by 5.6%.
* On the TSX 87 issues rose and 128 fell as a 0.7-to-1 ratio favored decliners. There were 9 new highs and no new lows, with total volume of 128.2 million shares.
* The most heavily traded shares by volume were Cenovus Energy Inc CVE.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO.
* The TSX's energy group .SPTTEN fell 0.27 points, or 0.3%, while the financials sector .SPTTFS climbed 0.92 points, or 0.3%.
* West Texas Intermediate crude futures CLc1 rose 0.76%, or $0.36, to $47.98 a barrel. Brent crude LCOc1 rose 0.37%, or $0.19, to $51.05 O/R
* The TSX is up 2.9% for the year.
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 Ballard Power Systems Inc BLDP.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 6.2%, and Canopy Growth Corp WEED.TO, lower by 5.6%. * The Toronto Stock Exchange's TSX falls 0.41 percent to 17,551.26 * Leading the index were TransAlta Renewables Inc , up 5.9%, Silvercrest Metals Inc SIL.TO, up 3.8%, and OceanaGold Corp OGC.TO, higher by 3.8%. * On the TSX 87 issues rose and 128 fell as a 0.7-to-1 ratio favored decliners. | * Lagging shares were Ballard Power Systems Inc BLDP.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 6.2%, and Canopy Growth Corp WEED.TO, lower by 5.6%. * On the TSX 87 issues rose and 128 fell as a 0.7-to-1 ratio favored decliners. * The most heavily traded shares by volume were Cenovus Energy Inc CVE.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO. | * Lagging shares were Ballard Power Systems Inc BLDP.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 6.2%, and Canopy Growth Corp WEED.TO, lower by 5.6%. * The Toronto Stock Exchange's TSX falls 0.41 percent to 17,551.26 * Leading the index were TransAlta Renewables Inc , up 5.9%, Silvercrest Metals Inc SIL.TO, up 3.8%, and OceanaGold Corp OGC.TO, higher by 3.8%. * The most heavily traded shares by volume were Cenovus Energy Inc CVE.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO. | * Lagging shares were Ballard Power Systems Inc BLDP.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 6.2%, and Canopy Growth Corp WEED.TO, lower by 5.6%. * The Toronto Stock Exchange's TSX falls 0.41 percent to 17,551.26 * Leading the index were TransAlta Renewables Inc , up 5.9%, Silvercrest Metals Inc SIL.TO, up 3.8%, and OceanaGold Corp OGC.TO, higher by 3.8%. * The most heavily traded shares by volume were Cenovus Energy Inc CVE.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO. |
37014.0 | 2020-12-29 00:00:00 UTC | 4 Cannabis Trends That Will Dominate in 2021 | ACB | https://www.nasdaq.com/articles/4-cannabis-trends-that-will-dominate-in-2021-2020-12-29 | nan | nan | For the past nine months, tech stocks have been all the rage. But while tech has Wall Street's attention, marijuana stocks have been quietly outperforming.
According to a recent report from New Frontier Data, the legal U.S. cannabis industry is expected to grow by a compound annual rate of 21% between 2019 and 2025. That will push legal weed sales from $13.2 billion in 2019 to an estimated $41.5 billion by mid-decade. This is a fast-growing industry with overwhelming support for legalization from the public, which is what makes it such an intriguing investment opportunity.
Every year brings change to the cannabis industry. As we ready to move into 2021, expect the following four trends to dominate the marijuana space.
Image source: Getty Images.
1. The push for cannabis banking reform
In November, the pot industry let out a collective cheer when Democratic Party challenger Joe Biden defeated incumbent Republican Donald Trump for the presidency. Although Trump has maintained a hands-off approach to state-level marijuana regulation, both of his attorneys general (Jeff Sessions and William Barr) were unabashedly anti-cannabis. Trump himself has shied away from the legalization debate.
On the campaign trail, Biden pledged to decriminalize marijuana at the federal level and reschedule the drug from Schedule I to Schedule II. Though this wouldn't legalize cannabis at the federal level, it would remove many of the penalties associated with marijuana use.
What'll be far more interesting is if progress is made on cannabis banking reform. The Democrat-led House has previously introduced legislation designed to allow banks and credit unions to provide basic financial services to pot companies in legalized states without the fear of a federal penalty. Momentum certainly seems to favor banking reform, but much will depend on whether Republican Senate Majority Leader Mitch McConnell allows such a bill to reach the upper house's floor for a vote.
The fight for banking reform is especially noteworthy for marijuana real estate investment trust Innovative Industrial Properties (NYSE: IIPR). Innovative Industrial's sale-leaseback program has been a critical growth tool for the company that cannabis banking reform would probably weaken.
Image source: Getty Images.
2. State-level legalizations
Even though it's an off year for elections, 2021 could see a handful of states move to legalize medical or recreational marijuana. On Dec. 28, I laid out my thinking on three states that looked poised to legalize in the upcoming year.
New York probably has the highest probability of legalizing adult-use weed in 2021 of any state. The Empire State's Legislature came very close to doing so in 2019. Legalization would likely have come in 2020 had the coronavirus disease 2019 (COVID-19) not hit New York so hard. With big budget gaps to fill, New York legislators might get to business on legalizing recreational pot early in 2021.
The neighboring state of Connecticut could also follow suit on the adult-use cannabis front. The November election further widened the margin by which Democrats control Connecticut's House and Senate, potentially paving the way for legalization. Favorability toward nationwide legalization in November's Gallup poll was 83% for self-identified Democrats, compared to 48% for Republicans.
Virginia is another strong candidate to legalize recreational pot. Democrat Gov. Ralph Northam has already released a comprehensive plan designed to legalize adult-use weed. Northam should find a receptive audience, with Democrats controlling Virginia's Legislature.
Image source: Getty Images.
3. The push to profitability
The upcoming year will also feature the ongoing push toward profitability by North American pot stocks. Though some marijuana stocks have already achieved recurring profitability, like the aforementioned Innovative Industrial Properties, the vast majority of pure-play pot stocks have yet to do so.
The expectation, based on Wall Street estimates, is that many of the largest publicly traded U.S. multistate operators (MSO) will turn the corner to recurring profitability in 2021. These include Green Thumb Industries, Cresco Labs, and Planet 13 Holdings (OTC: PLNH.F), to name a few.
Planet 13 is an extremely intriguing case. Unlike other MSOs, which have expanded into a multitude of legalized states, it's focused on a small number of states. Right now, it has a single location open just west of the Las Vegas Strip in Nevada. This location spans 112,000 square feet and happens to be the largest dispensary in the country. In 2021, Planet 13 will open its second dispensary -- a 40,000-square-foot facility -- in Santa Ana, California, which is about 10 minutes north of Disneyland.
Meanwhile, most Canadian pot stocks are still trying to pare back expenses and look at least a year or two away from sustainable profitability. Aphria (NASDAQ: APHA) might have been the one exception in the upcoming year. However, its merger with Tilray (NASDAQ: TLRY) complicates matters and might push the company into the red for another year.
Image source: Getty Images.
4. An ongoing North American shakeout
Finally, look for the industry to continue to thin out as the gap between the haves and have-nots widens.
Although marijuana offers supercharged growth potential this decade, not every pot stock can be a winner. We've already seen plenty of industry hopefuls fall by the wayside. The question is: What other companies will be left in the dust?
For example, Tilray very much needed a partner given its precarious cash situation and ongoing operating losses. Merging with Aphria is a saving grace for Tilray and might give the combined company some operating leverage domestically and internationally years down the road.
However, this merger also complicates the situation for the struggling Aurora Cannabis (NYSE: ACB). Once viewed as a potential partner for Aphria, Aurora Cannabis now has no logical suitor. That's problematic given the company's precipitous cash burn and ongoing share-based dilution. Aurora doesn't have the look of being a long-term survivor in the cannabis space, at least at the moment.
In other words, 2021 could be a put up or shut up sort of year for fringe-level cannabis stocks like 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
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cresco Labs Inc., Green Thumb Industries, Innovative Industrial Properties, and Planet 13 Holdings 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. | However, this merger also complicates the situation for the struggling Aurora Cannabis (NYSE: ACB). The push for cannabis banking reform In November, the pot industry let out a collective cheer when Democratic Party challenger Joe Biden defeated incumbent Republican Donald Trump for the presidency. The Democrat-led House has previously introduced legislation designed to allow banks and credit unions to provide basic financial services to pot companies in legalized states without the fear of a federal penalty. | However, this merger also complicates the situation for the struggling Aurora Cannabis (NYSE: ACB). The push to profitability The upcoming year will also feature the ongoing push toward profitability by North American pot stocks. These include Green Thumb Industries, Cresco Labs, and Planet 13 Holdings (OTC: PLNH.F), to name a few. | However, this merger also complicates the situation for the struggling Aurora Cannabis (NYSE: ACB). State-level legalizations Even though it's an off year for elections, 2021 could see a handful of states move to legalize medical or recreational marijuana. Though some marijuana stocks have already achieved recurring profitability, like the aforementioned Innovative Industrial Properties, the vast majority of pure-play pot stocks have yet to do so. | However, this merger also complicates the situation for the struggling Aurora Cannabis (NYSE: ACB). New York probably has the highest probability of legalizing adult-use weed in 2021 of any state. The push to profitability The upcoming year will also feature the ongoing push toward profitability by North American pot stocks. |
37015.0 | 2020-12-29 00:00:00 UTC | Is Curaleaf a Good Buy After Its Impressive Q3 Results? | ACB | https://www.nasdaq.com/articles/is-curaleaf-a-good-buy-after-its-impressive-q3-results-2020-12-29 | nan | nan | U.S. cannabis stocks often get overlooked in favor of popular Canadian players like Aurora Cannabis and Canopy Growth. But if you look at their revenue growth even in a limited legal market, you will understand why U.S. stocks are actually the better options. While marijuana is still illegal at a federal level in the U.S., more states made cannabis legal in the November 2020 elections, presenting more opportunities for expansion. Currently, 35 states and the District of Colombia allow the medical use of cannabis, while 15 states and D.C. allow recreational use of marijuana.
Massachusetts-based Curaleaf Holdings (OTC: CURLF) had a marvelous 2020. It reported consistent revenue growth and positive EBITDA (which stands for earnings before income, tax, depreciation, and amortization). Its outstanding performance continued into the third quarter of fiscal 2020, which was reported on Nov. 17. Its stock has gained 97% so far this year, while the industry benchmark, the Horizons Marijuana Life Sciences ETF, is down 4% over the same period. Here are three reasons why this pot stock is an excellent buy after its Q3 results.
Image source: Getty Images.
Revenue growth leads to consistent EBITDA growth
Despite the strong demand for cannabis, Canadian marijuana companies have always struggled to generate the revenue required to be profitable. It is mostly because of the challenging regulatory environment in Canada -- this delays the opening of legal stores, pushing consumers toward the black market.
Meanwhile, U.S. cannabis companies saw drastic revenue growth, especially when marijuana sales started soaring during the pandemic. Curaleaf is a vertically integrated cannabis company, which allows it to control its supply chain. It sells its medical and recreational marijuana products in 23 U.S. states. Because it controls all steps of production, Curaleaf could avoid major production disruption and maintain efficiencies amid the pandemic.
In its third quarter ended Sept. 30, Curaleaf saw an eye-catching revenue surge of 195% year over year to $182.4 million. Both its segments, retail and wholesale, brought in higher sales during the quarter. Retail sales jumped 206.5% to $135.3 million in Q3, from $44.2 million in the year-ago period. Meanwhile, wholesale revenue increased from $6.5 million in Q3 2019 to $45 million in Q3 2020.
The excellent top-line increase in the quarter drove adjusted EBITDA to $42 million, up from an EBITDA of $10.4 million in Q3 2019. The company reported positive EBITDA in the first two quarters of fiscal 2020 as well. EBITDA also jumped 51% from $27 million in the second quarter, reflecting the rate at which the company grew its sales amid the crisis. If EBITDA grows at this rate, it won't be too far along when Curaleaf starts making profits.
Lucrative expansion opportunities could drive future growth
Acquisitions have always been a driving factor for Curaleaf's revenue growth. The company stated in its Q3 results that the Grassroots, Curaleaf NJ, and Arrow acquisitions in 2020 drove the retail revenue jump.
The Grassroots acquisition, in particular, has proven very fruitful for Curaleaf. And why wouldn't it? With the acquisition of the hemp cannabidiol (CBD) oil company, Curaleaf now has 135 operating dispensaries with a stunning 1.6 million square feet of cultivation capacity. This will allow the company to meet growing national demand.
More growth prospects ahead in 2021
I find Curaleaf's bold strategy of expanding amid a global pandemic impressive. And I don't see any reason for it to stop. Its revenue growth is sky-high and its consistent positive EBITDA and stable balance sheet allow it to spread its roots in more legal markets. It ended the quarter with $84.6 million of cash on hand and $280 million of outstanding debt, net of unamortized debt discounts.
Management believes the election results showed the support the American people have toward cannabis. A Gallup poll prior to the election showed around 68% of Americans support cannabis legalization. The company discussed in the Q3earnings callits plans to double its capacity in key states, including Arizona, Illinois, Massachusetts, Maryland, Florida, and Pennsylvania -- where it believes demand exceeds supply. Florida, New Jersey, Pennsylvania, and Arizona can also expect additional dispensaries to open.
Curaleaf expects to end fiscal 2020 on a high note, planning to bring in managed revenue of around $240 million and pro forma revenue of $250 million in the fourth quarter. Furthermore, management stated BDS Analytics estimates that Curaleaf could generate close to $30 billion in revenue by 2025. Note that this current estimate is based on its operations in 23 states. Imagine the growth when more states legalize marijuana, or if marijuana becomes federally legal by 2022.
CURLF data by YCharts
At the rate that Curaleaf is multiplying its revenue, the company could easily achieve consistent profitability. Increased sales will also help the company continue its expansion into new state markets. With solid financials and a stable position amid an ongoing crisis, this cannabis stock is as close as you can get to a sure thing.
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. | While marijuana is still illegal at a federal level in the U.S., more states made cannabis legal in the November 2020 elections, presenting more opportunities for expansion. With the acquisition of the hemp cannabidiol (CBD) oil company, Curaleaf now has 135 operating dispensaries with a stunning 1.6 million square feet of cultivation capacity. The company discussed in the Q3earnings callits plans to double its capacity in key states, including Arizona, Illinois, Massachusetts, Maryland, Florida, and Pennsylvania -- where it believes demand exceeds supply. | It reported consistent revenue growth and positive EBITDA (which stands for earnings before income, tax, depreciation, and amortization). Revenue growth leads to consistent EBITDA growth Despite the strong demand for cannabis, Canadian marijuana companies have always struggled to generate the revenue required to be profitable. The company stated in its Q3 results that the Grassroots, Curaleaf NJ, and Arrow acquisitions in 2020 drove the retail revenue jump. | Revenue growth leads to consistent EBITDA growth Despite the strong demand for cannabis, Canadian marijuana companies have always struggled to generate the revenue required to be profitable. Curaleaf expects to end fiscal 2020 on a high note, planning to bring in managed revenue of around $240 million and pro forma revenue of $250 million in the fourth quarter. 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. | Revenue growth leads to consistent EBITDA growth Despite the strong demand for cannabis, Canadian marijuana companies have always struggled to generate the revenue required to be profitable. EBITDA also jumped 51% from $27 million in the second quarter, reflecting the rate at which the company grew its sales amid the crisis. 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. |
37016.0 | 2020-12-28 00:00:00 UTC | Down 66% in 2020, Is Aurora Cannabis Now a Buy? | ACB | https://www.nasdaq.com/articles/down-66-in-2020-is-aurora-cannabis-now-a-buy-2020-12-28 | nan | nan | Most cannabis companies had a bright 2020 as marijuana sales soared amid the pandemic. Higher revenue growth, profits coming in, and lucrative expansion plans were combined with higher stock performance.
But Canada-based Aurora Cannabis (NYSE: ACB) has sunk 66% in 2020, compared with the 3.4% decline in the benchmark Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF). So what is this company not doing right?
Image source: Getty Images.
Aurora did some drastic cost-cutting in June to lower its expenses and achieve positive EBITDA, but its first-quarter 2021 results (for the period ending Sept. 30) saw total net revenue sink 8% to 67.8 million Canadian dollars ($52.7 million).
It has no strong financial backing to support any of its growth strategies, like Canopy Growth has with U.S. beverage giant Constellation Brands. Aurora has time and again failed to meet its guidance of achieving positive EBITDA.
Moreover, its cash position along with lower revenue growth doesn't allow the company to launch innovative cannabis derivatives (like vapes, edibles, and beverages). Meanwhile, peers are taking advantage, with Canopy Growth leading in derivatives, beverages in particular.
We will learn if profitability is on the horizon when we get results from the second quarter of fiscal 2021, which are expected in February. Management has assured that it will achieve positive EBITDA in the quarter. Aurora has been bad at managing its operating expenses, the result of which has been consistently negative EBITDA. In its recent first quarter, EBITDA losses came in at CA$57.8 million, compared with a loss of CA$33 million in the year-ago quarter.
ACB data by YCharts.
This pot stock is not a buy on the dip. I would suggest waiting for second-quarter results, which will give a better idea if the company succeeded in delivering on its promises and its plan for 2021. Until Aurora Cannabis shows some fruitful numbers, this is one marijuana stock to avoid.
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. | But Canada-based Aurora Cannabis (NYSE: ACB) has sunk 66% in 2020, compared with the 3.4% decline in the benchmark Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF). ACB data by YCharts. Moreover, its cash position along with lower revenue growth doesn't allow the company to launch innovative cannabis derivatives (like vapes, edibles, and beverages). | But Canada-based Aurora Cannabis (NYSE: ACB) has sunk 66% in 2020, compared with the 3.4% decline in the benchmark Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF). ACB data by YCharts. Higher revenue growth, profits coming in, and lucrative expansion plans were combined with higher stock performance. | But Canada-based Aurora Cannabis (NYSE: ACB) has sunk 66% in 2020, compared with the 3.4% decline in the benchmark Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF). ACB data by YCharts. Aurora did some drastic cost-cutting in June to lower its expenses and achieve positive EBITDA, but its first-quarter 2021 results (for the period ending Sept. 30) saw total net revenue sink 8% to 67.8 million Canadian dollars ($52.7 million). | But Canada-based Aurora Cannabis (NYSE: ACB) has sunk 66% in 2020, compared with the 3.4% decline in the benchmark Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF). ACB data by YCharts. So what is this company not doing right? |
37017.0 | 2020-12-28 00:00:00 UTC | 2 Pot Stocks to Sell Before 2021 | ACB | https://www.nasdaq.com/articles/2-pot-stocks-to-sell-before-2021-2020-12-28 | nan | nan | I much prefer analyzing (and writing about) stocks to buy rather than stocks to sell. It's just more fun to try to pick the stocks that can generate big returns instead of delivering depressing losses. But sometimes it's necessary to identify the stocks to sell so that you have cash freed up to buy more promising stocks.
My view is that there are quite a few marijuana stocks that are good picks to buy that should be winners in the new year. However, some are more likely to be losers. Here are two pot stocks that I think it makes sense to sell before 2021.
Image source: Getty Images.
Aurora Cannabis
If you've owned shares of Aurora Cannabis (NYSE: ACB), selling before the end of 2017 would have been your best move. It's been mainly downhill for the Canadian cannabis producer since then. Aurora really flopped in 2020, with the stock plunging more than 60%.
But could better days be ahead for Aurora? After all, the company has a new management team in place now. It's cut costs dramatically. Aurora has even maintained in recent months that it was on track to report positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in its next quarter.
Note the use of the past tense there. The company backpedaled on this goal in an update on Dec. 16. Aurora now only expects to post an improved adjusted EBITDA loss in its fiscal 2021 second quarter. It attributed the delay to a strategy of investing in a "back to basics" strategy and "the unpredictability of the current demand environment."
Aurora definitely needs to do something to turn things around. Reducing expenses was necessary for Aurora, but what it really needs is to return to strong sales growth. In the company's latest quarterly update, Aurora actually lost ground in the important Canadian recreational marijuana market.
Maybe Aurora's change in strategy will work. However, count me as pessimistic at least for now. There simply aren't enough compelling reasons to hang onto this sinking stock when there are other alternatives with strong financial positions and tremendous growth prospects.
Emerald Health Therapeutics
Compared to Aurora, Emerald Health Therapeutics (OTC: EMHT.F) has been a big winner this year. But that's only because Aurora's performance stank so much. Emerald Health stock is still down more than 30% in 2020.
There's one positive for Emerald Health. The company now has a pretty healthy balance sheet after selling its stake in Pure Sunfarms to its former partner, Village Farms (NASDAQ: VFF). However, that deal also means that Emerald no longer can participate in Pure Sunfarms' growth in the Canadian recreational marijuana market.
It also leaves Emerald Health as a much smaller player. My view is that it'll be more challenging to compete against larger rivals in the future than it's been in the past.
The company generated net revenue of only CA$3.37 million in the third quarter. More importantly, it posted a net loss of nearly CA$11.7 million. I don't see a clear path to profitability for Emerald.
And that leads to arguably the biggest reason to sell the stock. Emerald received CA$60 million in cash from Village Farms plus a promissory note of CA$19.9 million payable soon. However, unless the company manages to make significant bottom-line improvement, its cash will run out within the next couple of years. Before it gets to that point, Emerald would probably have to raise additional capital by issuing new shares -- which would cause the stock to fall even more.
Look elsewhere
I'm not saying that it's impossible for Aurora Cannabis and Emerald Health to deliver gains for investors next year. It could happen. What I am saying, though, is that there are other marijuana stocks that offer much better chances of winning in 2021.
In particular, my view is that U.S. pot stocks provide more attractive prospects. If you're hoping to profit from the cannabis boom, there are some fast-growing U.S.-based stocks that are much more appealing picks than either Aurora or Emerald.
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 Village Farms International 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. | Aurora Cannabis If you've owned shares of Aurora Cannabis (NYSE: ACB), selling before the end of 2017 would have been your best move. Aurora has even maintained in recent months that it was on track to report positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in its next quarter. There simply aren't enough compelling reasons to hang onto this sinking stock when there are other alternatives with strong financial positions and tremendous growth prospects. | Aurora Cannabis If you've owned shares of Aurora Cannabis (NYSE: ACB), selling before the end of 2017 would have been your best move. Emerald Health Therapeutics Compared to Aurora, Emerald Health Therapeutics (OTC: EMHT.F) has been a big winner this year. However, that deal also means that Emerald no longer can participate in Pure Sunfarms' growth in the Canadian recreational marijuana market. | Aurora Cannabis If you've owned shares of Aurora Cannabis (NYSE: ACB), selling before the end of 2017 would have been your best move. Emerald Health Therapeutics Compared to Aurora, Emerald Health Therapeutics (OTC: EMHT.F) has been a big winner this year. If you're hoping to profit from the cannabis boom, there are some fast-growing U.S.-based stocks that are much more appealing picks than either Aurora or Emerald. | Aurora Cannabis If you've owned shares of Aurora Cannabis (NYSE: ACB), selling before the end of 2017 would have been your best move. My view is that there are quite a few marijuana stocks that are good picks to buy that should be winners in the new year. Emerald Health stock is still down more than 30% in 2020. |
37018.0 | 2020-12-24 00:00:00 UTC | CANADA STOCKS - TSX rises 0.17% to 17,623.88 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.17-to-17623.88-2020-12-24 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.17 percent to 17,623.88
* Leading the index were TransAlta Renewables Inc , up 6.5%, TransAlta Corp TA.TO, up 4.9%, and Aurinia Pharmaceuticals Inc AUP.TO, higher by 4.8%.
* Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.0%, Canopy Growth Corp WEED.TO, down 4.7%, and Aphria Inc APHA.TO, lower by 3.8%.
* On the TSX 126 issues rose and 92 fell as a 1.4-to-1 ratio favored advancers. There were 6 new highs and no new lows, with total volume of 96.0 million shares.
* The most heavily traded shares by volume were Canadian Imperial Bank Of Commerce CM.TO, Power Corporation Of Canada POW.TO and Tc Energy Corp TRP.TO.
* The TSX's energy group .SPTTEN fell 0.70 points, or 0.8%, while the financials sector .SPTTFS climbed 0.36 points, or 0.1%.
* West Texas Intermediate crude futures CLc1 rose 0.37%, or $0.18, to $48.3 a barrel. Brent crude LCOc1 rose 0.2%, or $0.1, to $51.3 O/R
* The TSX is up 3.3% for the year.
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 5.0%, Canopy Growth Corp WEED.TO, down 4.7%, and Aphria Inc APHA.TO, lower by 3.8%. * On the TSX 126 issues rose and 92 fell as a 1.4-to-1 ratio favored advancers. * The most heavily traded shares by volume were Canadian Imperial Bank Of Commerce CM.TO, Power Corporation Of Canada POW.TO and Tc Energy Corp TRP.TO. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.0%, Canopy Growth Corp WEED.TO, down 4.7%, and Aphria Inc APHA.TO, lower by 3.8%. * On the TSX 126 issues rose and 92 fell as a 1.4-to-1 ratio favored advancers. * The most heavily traded shares by volume were Canadian Imperial Bank Of Commerce CM.TO, Power Corporation Of Canada POW.TO and Tc Energy Corp TRP.TO. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.0%, Canopy Growth Corp WEED.TO, down 4.7%, and Aphria Inc APHA.TO, lower by 3.8%. * The Toronto Stock Exchange's TSX rises 0.17 percent to 17,623.88 * Leading the index were TransAlta Renewables Inc , up 6.5%, TransAlta Corp TA.TO, up 4.9%, and Aurinia Pharmaceuticals Inc AUP.TO, higher by 4.8%. * The most heavily traded shares by volume were Canadian Imperial Bank Of Commerce CM.TO, Power Corporation Of Canada POW.TO and Tc Energy Corp TRP.TO. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 5.0%, Canopy Growth Corp WEED.TO, down 4.7%, and Aphria Inc APHA.TO, lower by 3.8%. * The Toronto Stock Exchange's TSX rises 0.17 percent to 17,623.88 * Leading the index were TransAlta Renewables Inc , up 6.5%, TransAlta Corp TA.TO, up 4.9%, and Aurinia Pharmaceuticals Inc AUP.TO, higher by 4.8%. * On the TSX 126 issues rose and 92 fell as a 1.4-to-1 ratio favored advancers. |
37019.0 | 2020-12-24 00:00:00 UTC | CANADA STOCKS-TSX falls as energy and materials stocks drag | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-as-energy-and-materials-stocks-drag-2020-12-24 | nan | nan | Adds details and updates prices; No Canadian markets report on Dec. 25 due to Christmas holiday
Dec 24 (Reuters) - Canada's main stock index fell on Thursday in a shortened trading session, driven by weakness in both energy and materials stocks, while hopes for a bigger coronavirus economic relief package in United States limited losses.
* At 09:41 a.m. ET (14:41 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 19.21 points, or 0.11%, at 17,574.36.
* The energy sector .SPTTEN dropped 1.2% on falling crude prices, while adding to the downbeat mood, the materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 0.8%. O/RGOL/
* Locally, the value of Canadian building permits rose by 12.9% in November from October, easily beating analyst estimates of a 3.0% gain, Statistics Canada data showed
* Fuel-cell products developer Ballard Power Systems Inc BLDP.TO fell 4.1%, the most on the TSX, and the second biggest decliner was pot producer Aurora Cannabis IncACB.TO, down 2.9%.
* The financials sector .SPTTFS slipped 0.2%. The industrials sector .GSPTTIN fell 0.2%.
* On the TSX, 61 issues were higher, while 150 issues declined for a 2.46-to-1 ratio to the downside, with 13.46 million shares traded.
* The largest percentage gainers on the TSX were TransAlta Corp TA.TO, and its majority owned subsidiary TransAlta Renewables Inc RNW.TO, which jumped 6.6% and 4.4% respectively after the power firm said it is selling power transmission assets in Canada and the U.S. for $439 million to its renewable energy subsidiary.
* The most heavily traded shares by volume were Power Corporation of Canada POW.TO, Canadian Imperial Bank of Commerce CM.TO, and TC Energy Corp TRP.TO.
* The TSX posted three new 52-week highs and no new lows.
* Across all Canadian issues there were 15 new 52-week highs and no new lows, with total volume of 26.71 million shares.
(Reporting by Amal S in Bengaluru; Editing by Shailesh Kuber)
((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. | O/RGOL/ * Locally, the value of Canadian building permits rose by 12.9% in November from October, easily beating analyst estimates of a 3.0% gain, Statistics Canada data showed * Fuel-cell products developer Ballard Power Systems Inc BLDP.TO fell 4.1%, the most on the TSX, and the second biggest decliner was pot producer Aurora Cannabis IncACB.TO, down 2.9%. Adds details and updates prices; No Canadian markets report on Dec. 25 due to Christmas holiday Dec 24 (Reuters) - Canada's main stock index fell on Thursday in a shortened trading session, driven by weakness in both energy and materials stocks, while hopes for a bigger coronavirus economic relief package in United States limited losses. * The most heavily traded shares by volume were Power Corporation of Canada POW.TO, Canadian Imperial Bank of Commerce CM.TO, and TC Energy Corp TRP.TO. | O/RGOL/ * Locally, the value of Canadian building permits rose by 12.9% in November from October, easily beating analyst estimates of a 3.0% gain, Statistics Canada data showed * Fuel-cell products developer Ballard Power Systems Inc BLDP.TO fell 4.1%, the most on the TSX, and the second biggest decliner was pot producer Aurora Cannabis IncACB.TO, down 2.9%. Adds details and updates prices; No Canadian markets report on Dec. 25 due to Christmas holiday Dec 24 (Reuters) - Canada's main stock index fell on Thursday in a shortened trading session, driven by weakness in both energy and materials stocks, while hopes for a bigger coronavirus economic relief package in United States limited losses. * The most heavily traded shares by volume were Power Corporation of Canada POW.TO, Canadian Imperial Bank of Commerce CM.TO, and TC Energy Corp TRP.TO. | O/RGOL/ * Locally, the value of Canadian building permits rose by 12.9% in November from October, easily beating analyst estimates of a 3.0% gain, Statistics Canada data showed * Fuel-cell products developer Ballard Power Systems Inc BLDP.TO fell 4.1%, the most on the TSX, and the second biggest decliner was pot producer Aurora Cannabis IncACB.TO, down 2.9%. Adds details and updates prices; No Canadian markets report on Dec. 25 due to Christmas holiday Dec 24 (Reuters) - Canada's main stock index fell on Thursday in a shortened trading session, driven by weakness in both energy and materials stocks, while hopes for a bigger coronavirus economic relief package in United States limited losses. * The largest percentage gainers on the TSX were TransAlta Corp TA.TO, and its majority owned subsidiary TransAlta Renewables Inc RNW.TO, which jumped 6.6% and 4.4% respectively after the power firm said it is selling power transmission assets in Canada and the U.S. for $439 million to its renewable energy subsidiary. | O/RGOL/ * Locally, the value of Canadian building permits rose by 12.9% in November from October, easily beating analyst estimates of a 3.0% gain, Statistics Canada data showed * Fuel-cell products developer Ballard Power Systems Inc BLDP.TO fell 4.1%, the most on the TSX, and the second biggest decliner was pot producer Aurora Cannabis IncACB.TO, down 2.9%. Adds details and updates prices; No Canadian markets report on Dec. 25 due to Christmas holiday Dec 24 (Reuters) - Canada's main stock index fell on Thursday in a shortened trading session, driven by weakness in both energy and materials stocks, while hopes for a bigger coronavirus economic relief package in United States limited losses. * The most heavily traded shares by volume were Power Corporation of Canada POW.TO, Canadian Imperial Bank of Commerce CM.TO, and TC Energy Corp TRP.TO. |
37020.0 | 2020-12-24 00:00:00 UTC | 2 Ultra-Risky Pot Stocks That Could Make You Filthy Rich | ACB | https://www.nasdaq.com/articles/2-ultra-risky-pot-stocks-that-could-make-you-filthy-rich-2020-12-24 | nan | nan | One of the ways that investors can swing for the fences in pursuit of great returns is by buying stocks that carry some extra risk. And right now, the cannabis industry is chock full of them. These are companies that have the potential to double or triple in value in the medium term -- in large part because their share prices have cratered after a rough year, particularly in the Canadian market.
The Horizons Marijuana Life Sciences ETF is down 1.2% in 2020, far underperforming the broad-market S&P 500 and its 16% gains. But as poorly as the sector ETF has done this year, Aurora Cannabis (NYSE: ACB) and Sundial Growers (NASDAQ: SNDL) are doing much worse, down 63% and 83%, respectively. However, all hope is not lost for them just yet. Here's how these stocks could generate some major returns over the next 12 months.
Image source: Getty Images.
The upside case for Aurora Cannabis
One of the biggest problems for Alberta-based Aurora Cannabis is that it simply isn't making enough money to fund its operations. As a result, it must continually issue more shares, diluting existing shareholders and sending its stock price downward. In its fiscal 2021 first quarter, which ended Sept. 30, Aurora used up 108.5 million Canadian dollars just on its day-to-day operating activities. It also spent another CA$15.8 million on capital expenditures.
However, Aurora is continuing to cut expenses and improve its cash flow. In November, it shut down its Aurora Sun cannabis growing facility and slashed production levels by 75% at its Aurora Sky site. These are major moves for the company, as these were among the company's two most promising facilities. In 2019, then-CEO Terry Booth referred to Aurora Sun as "the next evolution in our Sky Class facility design, delivering massive scale, low cost production, and consistent, high-quality cannabis."
Earlier this month, the company also announced it would be laying off 214 employees, further downsizing after laying off 700 in June.
These cost reductions could pave the way to positive adjusted-EBITDA -- which the company anticipates it will reach in the current quarter. We'll find out when the next earnings report comes out, likely in February). Hitting that target in fiscal Q2 could be key in the company's turnaround. Aurora has struggled with profitability; last quarter, it booked an adjusted EBITDA loss of CA$57.9 million.
Shifting from a bottom-line number so firmly in the red to one that's in the black in one quarter is an ambitious goal, but if Aurora succeeds, the pot stock could soar rapidly. And since adjusted-EBITDA excludes many non-cash items, an improvement on that metric would reflect stronger cash flows. That would be more great news for shareholders, inasmuch as it would reduce the company's need to issue more stock, and would also put it in a better position to fund more growth or potentially acquire another business.
Sundial Growers
Another Alberta-based cannabis company that could make you rich is Sundial Growers, although it's a lot riskier than Aurora Cannabis.
This pot producer's stock price has soared by more than 240% since the start of November (while the Horizons Marijuana Life Sciences ETF is up just 45%). Last month, it announced that it would be partnering with confectioner Choklat to launch a brand of cannabis-infused chocolate products.
On Nov. 11, it also released its quarterly results for the period ending Sept. 30. But with net revenue down 46% year over year to just CA$12.9 million, it probably wasn't the company's top line or management's mention of "price compressions" that got investors more excited about the stock.
In the earnings release, Sundial hinted that a possible deal was in the works, mentioning that it "continues to review potential strategic alternatives." However, it did not say a transaction was imminent, and made it clear that it wouldn't provide any updates until either the review is complete or the board "approves a specific action."
The speculation about a possible deal and the news of Sundial's partnership with Choklat led to a surge in trading volume for the stock.
SNDL Volume data by YCharts
Now that Tilray and Aphria have a merger in the works, other cannabis companies may be on the lookout for similar opportunities to join forces and take advantage of greater scale.
It would be wishful thinking to believe that Sundial can turn its business around on its own. While its partnership with Choklat will help bolster its top line, it will take a lot of work to not just make up for last quarter's large drop in revenue, let alone to generate growth. It's unlikely that the company's business will improve enough to send its shares skyrocketing next year. A suitor paying a large premium to acquire it, however, could quickly accomplish that.
But that's a big risk. If Sundial fails to find a buyer, its shares could slump again. Without sales growth and with an adjusted EBITDA loss of CA$4.4 million in its most recent quarter, there aren't a whole lot of reasons for investors to like the business as it is right now.
In short, this pot stock is highly speculative, and only appropriate for investors willing to take on significant risk.
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. | But as poorly as the sector ETF has done this year, Aurora Cannabis (NYSE: ACB) and Sundial Growers (NASDAQ: SNDL) are doing much worse, down 63% and 83%, respectively. In 2019, then-CEO Terry Booth referred to Aurora Sun as "the next evolution in our Sky Class facility design, delivering massive scale, low cost production, and consistent, high-quality cannabis." Shifting from a bottom-line number so firmly in the red to one that's in the black in one quarter is an ambitious goal, but if Aurora succeeds, the pot stock could soar rapidly. | But as poorly as the sector ETF has done this year, Aurora Cannabis (NYSE: ACB) and Sundial Growers (NASDAQ: SNDL) are doing much worse, down 63% and 83%, respectively. The Horizons Marijuana Life Sciences ETF is down 1.2% in 2020, far underperforming the broad-market S&P 500 and its 16% gains. Sundial Growers Another Alberta-based cannabis company that could make you rich is Sundial Growers, although it's a lot riskier than Aurora Cannabis. | But as poorly as the sector ETF has done this year, Aurora Cannabis (NYSE: ACB) and Sundial Growers (NASDAQ: SNDL) are doing much worse, down 63% and 83%, respectively. The upside case for Aurora Cannabis One of the biggest problems for Alberta-based Aurora Cannabis is that it simply isn't making enough money to fund its operations. Sundial Growers Another Alberta-based cannabis company that could make you rich is Sundial Growers, although it's a lot riskier than Aurora Cannabis. | But as poorly as the sector ETF has done this year, Aurora Cannabis (NYSE: ACB) and Sundial Growers (NASDAQ: SNDL) are doing much worse, down 63% and 83%, respectively. Sundial Growers Another Alberta-based cannabis company that could make you rich is Sundial Growers, although it's a lot riskier than Aurora Cannabis. It's unlikely that the company's business will improve enough to send its shares skyrocketing next year. |
37021.0 | 2020-12-24 00:00:00 UTC | Robinhood's 10 Most Held Stocks See Big Changes | ACB | https://www.nasdaq.com/articles/robinhoods-10-most-held-stocks-see-big-changes-2020-12-24 | nan | nan | It's been an exceptionally volatile year for the stock market, but that hasn't fazed young investors one bit. Robinhood, the online app best known for offering commission-free trades, fractional-share investing, and gifting free shares of stock to new members, signed up millions of new users in 2020. That's noteworthy because the average age of Robinhood's user base is only 31.
For months, Robinhood's leaderboard -- i.e., the 100 most held stocks on the platform -- hasn't changed all that much. But over the past couple of weeks, we've witnessed significant adjustments to what millennial and novice investors want to own.
Image source: Getty Images.
These top-10 holdings aren't going anywhere
Although the order has flipped around a bit, the five most held stocks on Robinhood have been in the top 10 for quite some time. As of this past weekend, this included the following stocks, ranked in order of popularity:
Apple (NASDAQ: AAPL)
Tesla (NASDAQ: TSLA)
General Electric
Ford
American Airlines Group (NASDAQ: AAL)
Some of these are no-brainers. For instance, Apple has the most popular smartphone in the U.S. and should see its operating margins pick up as it proactively becomes a service-oriented company. Apple is also one of the most recognized brands in the world. It's a logical top holding that young investors can easily relate to.
Even though I strongly disagree with its current valuation, Tesla's popularity among millennials makes sense. Electric vehicles (EV) are the future of the auto industry, and Tesla has clearly identifiable first-mover advantages. The company is on pace to potentially top 500,000 EVs delivered in 2020, and its battery technology continues to lead its peers in both range and power.
The consistent top-10 holding that makes little sense is American Airlines. The airline industry is capital-intensive and produces meager margins, which should already be a red flag. What's worse is that American Airlines has buried itself in over $41 billion in debt. Even if it survives the coronavirus pandemic, this debt will strangle growth opportunities for the next decade.
Image source: Amazon.
These brand-name stocks are no longer top-10 holdings
The big surprises occur once you move beyond the top-five holdings. Three mainstay holdings in Robinhood's top 10 have fallen down the rankings.
Canadian marijuana stock Aurora Cannabis (NYSE: ACB), which was once the most held company on the entire platform, has fallen all the way back to the 15th spot on the leaderboard. Considering that Aurora's shares have declined by more than 90% since March 2019, an exodus by young investors was long overdue. Aurora has continually hurt its investors by issuing common stock and failing to meet its own forecasts of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). It's struggling mightily and should be avoided by investors.
Tech giant Microsoft (NASDAQ: MSFT) also finds itself on the outside looking in. Currently 13th on Robinhood's leaderboard, it's unclear why young investors have soured a bit on the company. Microsoft's fiscal first-quarter results showed it was business as usual, with a majority of the company's cloud offerings growing by a double-digit percentage from the previous year. Microsoft is generating insane amounts of cash flow and is aggressively reinvesting this cash into high-margin growth opportunities. In other words, it should probably remain a top holding by millennial investors.
Maybe the biggest shock of all is that Amazon (NASDAQ: AMZN) has fallen out of the top 10 (currently 12th). Like Microsoft, it's not entirely clear why millennials are piling into other companies instead of Amazon. According to an eMarketer report from March, Amazon was expected to control 38.7% of all online sales in 2020 and increase its share to 39.7% in 2021. That's roughly 33 percentage points higher than its closest competitor. Cloud infrastructure segment Amazon Web Services is also growing like a weed. It should help triple Amazon's operating cash flow within the next four years.
Image source: Getty Images.
Here's the rest of Robinhood's new top 10
Following the top-five holdings mentioned earlier are Robinhood's remaining top-10 holdings (in order):
Pfizer (NYSE: PFE)
Carnival
Delta Air Lines
NIO (NYSE: NIO)
Disney
Pfizer has quickly risen up the ranks in 2020 after developing a successful coronavirus vaccine with the help of BioNTech. The Pfizer/BioNTech vaccine (BNT162b2) delivered vaccine efficacy of 95% in phase 3 trials, which blew researchers' expectations out of the water. This vaccine was recently granted emergency use authorization by the U.S. Food and Drug Administration and should have a pretty clear path to billions of dollars in annual sales in 2021.
As you'll note, millennials really love auto stocks focused on EV production. NIO has rocketed up Robinhood's leaderboard throughout 2020 and found its way into the top 10. The China-based premium EV manufacturer is operating in the largest EV market in the world. It's seen its gross vehicle margin flip into the positive from the prior-year period. Admittedly, NIO's valuation is incredibly aggressive, given that it's on pace for an annual run-rate of only 50,000 EV deliveries. However, this doesn't seem to be fazing younger investors.
Millennials are taking big risks by betting on Delta Air Lines and Carnival, though. While coronavirus vaccines raise hopes of ending the pandemic, the balance sheets for most airline stocks and cruise companies aren't pretty. It could be years before we see travel and leisure demand return to anywhere near pre-coronavirus levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Canadian marijuana stock Aurora Cannabis (NYSE: ACB), which was once the most held company on the entire platform, has fallen all the way back to the 15th spot on the leaderboard. Robinhood, the online app best known for offering commission-free trades, fractional-share investing, and gifting free shares of stock to new members, signed up millions of new users in 2020. Aurora has continually hurt its investors by issuing common stock and failing to meet its own forecasts of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). | Canadian marijuana stock Aurora Cannabis (NYSE: ACB), which was once the most held company on the entire platform, has fallen all the way back to the 15th spot on the leaderboard. Here's the rest of Robinhood's new top 10 Following the top-five holdings mentioned earlier are Robinhood's remaining top-10 holdings (in order): Pfizer (NYSE: PFE) Carnival Delta Air Lines The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, Tesla, and Walt Disney. | Canadian marijuana stock Aurora Cannabis (NYSE: ACB), which was once the most held company on the entire platform, has fallen all the way back to the 15th spot on the leaderboard. As of this past weekend, this included the following stocks, ranked in order of popularity: Apple (NASDAQ: AAPL) Tesla (NASDAQ: TSLA) General Electric Ford American Airlines Group (NASDAQ: AAL) Some of these are no-brainers. See the 10 stocks *Stock Advisor returns as of November 20, 2020 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | Canadian marijuana stock Aurora Cannabis (NYSE: ACB), which was once the most held company on the entire platform, has fallen all the way back to the 15th spot on the leaderboard. These top-10 holdings aren't going anywhere Although the order has flipped around a bit, the five most held stocks on Robinhood have been in the top 10 for quite some time. As of this past weekend, this included the following stocks, ranked in order of popularity: Apple (NASDAQ: AAPL) Tesla (NASDAQ: TSLA) General Electric Ford American Airlines Group (NASDAQ: AAL) Some of these are no-brainers. |
37022.0 | 2020-12-23 00:00:00 UTC | ACB Crosses Above Key Moving Average Level | ACB | https://www.nasdaq.com/articles/acb-crosses-above-key-moving-average-level-2020-12-23 | nan | nan | In trading on Wednesday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed above their 200 day moving average of $9.39, changing hands as high as $9.62 per share. Aurora Cannabis Inc shares are currently trading up about 5% 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 $27.84 as the 52 week high point — that compares with a last trade of $9.33.
Click here to find out which 9 other stocks recently crossed above 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 Wednesday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed above their 200 day moving average of $9.39, changing hands as high as $9.62 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 $27.84 as the 52 week high point — that compares with a last trade of $9.33. Click here to find out which 9 other stocks recently crossed above 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 Wednesday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed above their 200 day moving average of $9.39, changing hands as high as $9.62 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 $27.84 as the 52 week high point — that compares with a last trade of $9.33. Click here to find out which 9 other stocks recently crossed above 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 Wednesday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed above their 200 day moving average of $9.39, changing hands as high as $9.62 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 $27.84 as the 52 week high point — that compares with a last trade of $9.33. Click here to find out which 9 other stocks recently crossed above 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 Wednesday, shares of Aurora Cannabis Inc (Symbol: ACB) crossed above their 200 day moving average of $9.39, changing hands as high as $9.62 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 $27.84 as the 52 week high point — that compares with a last trade of $9.33. Aurora Cannabis Inc shares are currently trading up about 5% on the day. |
37023.0 | 2020-12-22 00:00:00 UTC | 4 Popular Robinhood Stocks That May Lose 50% (or More) in 2021 | ACB | https://www.nasdaq.com/articles/4-popular-robinhood-stocks-that-may-lose-50-or-more-in-2021-2020-12-22 | nan | nan | In just nine days, we'll close the curtain on one of the craziest years in history. The broad-based S&P 500 endured a record-setting bear market decline of 34% in under five weeks. The index then made history by taking less than five months to post new highs after hitting a bear market bottom.
Millennial investors have loved every minute of it. We know this because online investing app Robinhood has added millions of new users in 2020. The average age of its user base is only 31.
Robinhood's commission-free trades, fractional share investing, and gifting of free shares of stock to new members all incentivize young people to put their money to work in the greatest wealth creator on the planet. Unfortunately, the platform hasn't done a good job of educating its users about the benefits of long-term investing and compounding. As a result, Robinhood's leaderboard -- the 100-most-held stock on the platform -- is a smorgasbord of terrible businesses.
The following four popular Robinhood stocks are companies that I believe have the potential to lose 50% or more in 2021.
Image source: Getty Images.
NIO
Electric-vehicle (EV) manufacturer NIO (NYSE: NIO) has had a stellar year. NIO's approximately 22,500 EV SUV deliveries between April 1 and Sept. 30 outpaced the total number of deliveries for the entirety of 2019. Further, the company has allayed cash concerns by raising capital. It's creating plenty of buzz with its battery-as-a-service subscription model that reduces upfront vehicle cost in exchange for a long-term monthly subscription fee.
But NIO and its $73 billion market cap have some huge shoes to fill. After all, even with production capacity increased, the company is on track for an annual run-rate output of maybe 50,000 to 60,000 EVs. By comparison, some traditional auto stocks have been around for over a century, are investing billions in EV and autonomous technology, and can produce millions of vehicles annually -- yet have a smaller market cap than NIO.
The other potential concern is that NIO relies on its partnership with JAC Motors to boost production capacity to an estimated 150,000 units in 2021. NIO's plans to build its own production factory fell through in early 2019 due to cost restrictions. In other words, NIO's fate isn't entirely in its hands, which is a bit concerning for a $73 billion company.
Image source: American Airlines.
American Airlines Group
It's one of life's greatest mysteries: Why do millennial and novice investors like American Airlines Group (NASDAQ: AAL) stock? Although it's a brand-name airline stock and it's down significantly over the past three years, there aren't any redeeming qualities that should have young people champing at the bit to invest in American Airlines.
Easily the biggest issue for the company is its outstanding debt. American Airlines was, thankfully, the recipient of a coronavirus disease 2019 (COVID-19) relief loan, and has taken the initiative to raise additional capital to navigate its way through the pandemic. But as of the end of September, it had nearly $33 billion in net debt and $41.2 billion in total debt. Even if the company survives the pandemic, servicing this debt will cripple its financial flexibility for a long time to come.
Additionally, American Airlines was required to suspend its share buybacks and dividend payout in return for accepting a COVID-19 relief loan. This is a company that operates in a capital-intensive, low-margin industry, and it now has no capital return program whatsoever. It's unquestionably the worst company in the industry and could still have plenty of downside.
Image source: Getty Images.
Aurora Cannabis
The North American cannabis industry is starting to catch fire, but it doesn't mean every company will be a winner. If we've learned anything over the last couple of years, it's that Aurora Cannabis (NYSE: ACB) has little regard for its shareholders, and it's unlikely to be a winner.
The single biggest reason investors should keep their distance from Aurora Cannabis is the company's ongoing share-based dilution. Since April 2019, Aurora's board has approved and completed separate at-the-market (ATM) share offerings of $400 million and $250 million. It is now working on a $500 million ATM offering. This company has also funded more than a dozen acquisitions with its common stock. In total, Aurora's outstanding share count has ballooned by over 11,800% in six-plus years.
Another issue is that management (old and new) continues to kick the can further down the road when it comes to hitting positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Achieving positive EBITDA is critical to not violating the company's debt covenant.
Even if cannabis is a hot investment in 2021, Aurora Cannabis looks as if it'll go up in smoke.
Image source: Getty Images.
Moderna
Another ultrapopular Robinhood stock that could potentially lose half its value in 2021 is clinical-stage drug developer Moderna (NASDAQ: MRNA).
I know what you're probably thinking: Am I crazy? After all, Moderna's COVID-19 vaccine candidate, mRNA-1273, has produced the second-highest vaccine efficacy to date (94.1%), and arguably has the best safety profile of the three late-stage candidates we thus far have data on. On Dec. 18, the Food and Drug Administration granted emergency use authorization to mRNA-1273.
But there are a couple of big challenges that await Moderna. For example, Johnson & Johnson (NYSE: JNJ) should be reporting interim efficacy data for its COVID-19 vaccine candidate sometime in January. Johnson & Johnson's vaccine is only administered in one dose, as opposed to two doses for all other late-stage candidates, including Moderna. If Johnson & Johnson is able to deliver a vaccine efficacy north of 90%, Moderna's vaccine could quickly be deemed obsolete.
Also, the vaccine space should grow more crowded over time. There are around two dozen coronavirus vaccines in development, which suggests that Moderna's share of the market will only shrink after 2021.
Suffice it to say that the upcoming year could be rough for one of the standout healthcare stocks of 2020.
10 stocks we like better than Moderna INC
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If we've learned anything over the last couple of years, it's that Aurora Cannabis (NYSE: ACB) has little regard for its shareholders, and it's unlikely to be a winner. By comparison, some traditional auto stocks have been around for over a century, are investing billions in EV and autonomous technology, and can produce millions of vehicles annually -- yet have a smaller market cap than NIO. American Airlines was, thankfully, the recipient of a coronavirus disease 2019 (COVID-19) relief loan, and has taken the initiative to raise additional capital to navigate its way through the pandemic. | If we've learned anything over the last couple of years, it's that Aurora Cannabis (NYSE: ACB) has little regard for its shareholders, and it's unlikely to be a winner. American Airlines Group It's one of life's greatest mysteries: Why do millennial and novice investors like American Airlines Group (NASDAQ: AAL) stock? Aurora Cannabis The North American cannabis industry is starting to catch fire, but it doesn't mean every company will be a winner. | If we've learned anything over the last couple of years, it's that Aurora Cannabis (NYSE: ACB) has little regard for its shareholders, and it's unlikely to be a winner. By comparison, some traditional auto stocks have been around for over a century, are investing billions in EV and autonomous technology, and can produce millions of vehicles annually -- yet have a smaller market cap than NIO. Although it's a brand-name airline stock and it's down significantly over the past three years, there aren't any redeeming qualities that should have young people champing at the bit to invest in American Airlines. | If we've learned anything over the last couple of years, it's that Aurora Cannabis (NYSE: ACB) has little regard for its shareholders, and it's unlikely to be a winner. We know this because online investing app Robinhood has added millions of new users in 2020. Image source: American Airlines. |
37024.0 | 2020-12-21 00:00:00 UTC | Why Aurora Cannabis Stock Is Trading Down Again Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-is-trading-down-again-today-2020-12-21 | nan | nan | What happened
Shares of Aurora Cannabis (NYSE: ACB) continued dropping today, and were down 6% as of noon EST. This brings the total decline since Nov. 30 to more than 20%.
So what
The drop today comes after the company released a business update last week. Aurora is in the midst of a business transformation in an attempt to become profitable.
Image source: Getty Images.
Aurora also received a downgrade on Friday, when BMO Capital analyst Tamy Chen downgraded the stock and dropped the price target from $7 to $5.45 per share. Shares closed Friday's session at $9.60. Chen said she believes that the current valuation of Aurora's shares is "out of line with fundamentals."
Now what
Aurora management has been trying to improve those fundamentals since it launched a business transformation early in 2020. The plan is designed to reduce expenses, better scrutinize capital expenditures, and improve its balance sheet to attain profitability.
In last week's update, the company said its improved balance sheet has allowed it to amend its credit facilities to provide additional financial flexibility. Aurora is also scaling back production to better align with sales, and is "moving to a more variable cost structure in cultivation" by using external suppliers, according to a statement from CEO Miguel Martin.
Martin said the company closed one growing facility, and reduced production at another to 25% of its previous capacity. For investors, an improved balance sheet is a positive, but reducing costs by lowering production is not a good direction. Profitability seems to still be a long way away, and helps explain the recent analyst downgrade.
10 stocks we like better than Aurora Cannabis Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Aurora Cannabis (NYSE: ACB) continued dropping today, and were down 6% as of noon EST. The plan is designed to reduce expenses, better scrutinize capital expenditures, and improve its balance sheet to attain profitability. In last week's update, the company said its improved balance sheet has allowed it to amend its credit facilities to provide additional financial flexibility. | What happened Shares of Aurora Cannabis (NYSE: ACB) continued dropping today, and were down 6% as of noon EST. Aurora also received a downgrade on Friday, when BMO Capital analyst Tamy Chen downgraded the stock and dropped the price target from $7 to $5.45 per share. In last week's update, the company said its improved balance sheet has allowed it to amend its credit facilities to provide additional financial flexibility. | What happened Shares of Aurora Cannabis (NYSE: ACB) continued dropping today, and were down 6% as of noon EST. Aurora also received a downgrade on Friday, when BMO Capital analyst Tamy Chen downgraded the stock and dropped the price target from $7 to $5.45 per share. * 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! | What happened Shares of Aurora Cannabis (NYSE: ACB) continued dropping today, and were down 6% as of noon EST. Aurora also received a downgrade on Friday, when BMO Capital analyst Tamy Chen downgraded the stock and dropped the price target from $7 to $5.45 per share. For investors, an improved balance sheet is a positive, but reducing costs by lowering production is not a good direction. |
37025.0 | 2020-12-20 00:00:00 UTC | How Aurora Cannabis Stock Performed in 2020 | ACB | https://www.nasdaq.com/articles/how-aurora-cannabis-stock-performed-in-2020-2020-12-21 | nan | nan | To be blunt, Aurora Cannabis (NYSE: ACB) was a stinker of a stock in 2020. In fact, it was one of the worst-performing marijuana companies on the market during the year, which is saying something given how awful they were as a group. As of the market close Dec. 17, Aurora had shed 63% of its value since the beginning of 2020.
Over the course of the year, Aurora had to contend with a number of headaches. Some of these were outside of its control, and some painfully self-induced.
Image source: Getty Images.
Of the former, relatively weak selling prices -- resulting from supply issues and the continued strength of the black market -- continue to plague the industry, particularly affecting top grower Aurora.
As to the latter, continued bottom-line losses and negative cash flow have led the company to make ever more secondary stock issues. These don't solve its overall problems and they dilute existing shareholders, making the stock progressively less attractive.
Meanwhile, two major pillars of Aurora's business strategy, namely to be a dominant grower and to be a leading player in international markets, aren't kicking in. For the aforementioned reasons, being a major producer/cultivator isn't ideal just now. At the same time, the molasses-slow progress of marijuana legalization overseas won't make those international ambitions viable for quite some time, perhaps even years.
Aurora does deserve credit for trimming its considerable costs through sensible moves, such as shuttering some of its smaller facilities. There was also a glimmer or two of hope in its Q1 of fiscal 2021 results, published last month, but at the end of 2020, Aurora was still very far from being out of the woods. We can probably expect the same for the opening months of 2021, at least.
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 – 11 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
Eric Volkman 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. | To be blunt, Aurora Cannabis (NYSE: ACB) was a stinker of a stock in 2020. As to the latter, continued bottom-line losses and negative cash flow have led the company to make ever more secondary stock issues. Meanwhile, two major pillars of Aurora's business strategy, namely to be a dominant grower and to be a leading player in international markets, aren't kicking in. | To be blunt, Aurora Cannabis (NYSE: ACB) was a stinker of a stock in 2020. These don't solve its overall problems and they dilute existing shareholders, making the stock progressively less attractive. Meanwhile, two major pillars of Aurora's business strategy, namely to be a dominant grower and to be a leading player in international markets, aren't kicking in. | To be blunt, Aurora Cannabis (NYSE: ACB) was a stinker of a stock in 2020. At the same time, the molasses-slow progress of marijuana legalization overseas won't make those international ambitions viable for quite some time, perhaps even 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. | To be blunt, Aurora Cannabis (NYSE: ACB) was a stinker of a stock in 2020. Meanwhile, two major pillars of Aurora's business strategy, namely to be a dominant grower and to be a leading player in international markets, aren't kicking in. At the same time, the molasses-slow progress of marijuana legalization overseas won't make those international ambitions viable for quite some time, perhaps even years. |
37026.0 | 2020-12-19 00:00:00 UTC | Pot Stock Mega-Merger: What Should Investors Know About Aphria and Tilray? | ACB | https://www.nasdaq.com/articles/pot-stock-mega-merger%3A-what-should-investors-know-about-aphria-and-tilray-2020-12-19 | nan | nan | Canadian pot stocks Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY) are looking to join forces in what would be a seismic shift in the marijuana industry. On Dec. 16, both companies announced a defining agreement to merge and that the all-stock deal will close in the second quarter of next year.
Earlier this year, Aphria was also in advanced merger talks with Aurora Cannabis (NYSE: ACB), but that deal fell through. The Tilray-Aphria deal is much more of a sure thing at this point, with both companies already eyeing a completion date. Let's take a closer look at what this transaction could mean for the industry and if investors should be buying up either of their stocks based on this news.
Image source: Getty Images.
The largest cannabis company in the world -- but for how long?
Combined, the two companies say that based on pro forma revenue of 874 million Canadian dollars ($685 million), they would be the largest cannabis company in the world. But as impressive as that sounds, it may end up being short-lived. Massachusetts-based Curaleaf (OTC: CURLF) reported pro forma revenue of $215.3 million in its latest quarterly results for the period ending Sept. 30. Even if the company were to maintain that run rate throughout the course of a full year, its revenue would come in at around $860 million, well above Aphria and Tilray's combined figure. And this also doesn't factor in the growth that Curaleaf will benefit from in 2021 with four more states legalizing marijuana for recreational use.
While Aphria and Tilray would likely become the largest Canadian cannabis company in terms of sales, the title of world's largest likely wouldn't last for long, especially since neither company would have access to the lucrative U.S. pot market while marijuana remains illegal federally. Although together, the companies believe they are "well-positioned to compete in the U.S. cannabis market," the reality is that they'll be limited to just the hemp-based cannabidiol (CBD) segment for now. Analysts project that the U.S. retail CBD hemp market will be worth up to $11.3 billion by 2024, up from an estimated $1.9 billion to $2.3 billion this year. That's nowhere near the size of the total legal cannabis market in the U.S., which could be worth as much as $35 billion by 2025.
Is the combined company a better investment?
Assuming the deal goes through, the question remains whether the combined company will be a formidable investment. Year to date, shares of Tilray are down more than 40%, while Aphria's stock is up 60%, and the Horizons Marijuana Life Sciences ETF has held relatively steady, down just 1%. Which direction the new company's stock will go in will depend on how well the businesses fuse together.
Together, the companies expect to be able to generate CA$100 million worth of annual (pre-tax) cost synergies by combining. But there will also be redundancies that will come with merging and that can lead to some short-term pain as the companies battle with inefficiencies and unnecessary costs from the onset. It could take a while before the new operation is running as efficiently as it can.
And there's still a lot to do in terms of cleaning up the financials of both companies. Through the first nine months of 2020, Tilray's incurred a net loss of $268.1 million -- more than double the $102 million it lost during the same period last year. Although its losses haven't been as big, Aphria has reported a loss in three of its past four quarterly results.
It also prided itself in posting a positive adjusted EBITDA number for the sixth period in a row when it released its first-quarter results on Oct. 15, for the period ended Aug. 31. That streak could be at risk with this merger as Tilray recently posted an adjusted EBITDA loss of $1.5 million for the third quarter ended Sept. 30. The company did state its focus remained on reaching positive adjusted EBITDA by the fourth quarter.
In its latest quarterly results, Aphria's sales of CA$145.7 million were down 4% from the previous quarter. Tilray, meanwhile, reported no growth in Q3 from the prior-year period and sales were up just 2% from the second quarter. Neither company is blowing the doors off right now when it comes to sales and there's no guarantee that will change when they're operating as one unit.
Although the two companies will have greater resources at their disposal, they'll also have more issues to work through, so it's too early to tell if the net effect will be a much stronger investment when these companies join forces.
Should investors buy shares of Aphria or Tilray today?
If the deal goes through, Aphria investors will own 62% of the combined company, even though the company will continue operating under the Tilray name. And given that both companies issued press releases about this transaction, it looks likely that the merger will become a reality.
Pooling together their resources will give the merging cannabis companies a better chance of succeeding in the industry, which is particularly important in the midst of these challenging economic times. But sometimes having a larger operation can make it more difficult to manage and operate. And that's why despite the excitement surrounding this latest news, I wouldn't go out and buy shares of either company today: There is no guarantee the new business will be a whole lot better off than where the individual entities are 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 – 11 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. | Earlier this year, Aphria was also in advanced merger talks with Aurora Cannabis (NYSE: ACB), but that deal fell through. Massachusetts-based Curaleaf (OTC: CURLF) reported pro forma revenue of $215.3 million in its latest quarterly results for the period ending Sept. 30. Year to date, shares of Tilray are down more than 40%, while Aphria's stock is up 60%, and the Horizons Marijuana Life Sciences ETF has held relatively steady, down just 1%. | Earlier this year, Aphria was also in advanced merger talks with Aurora Cannabis (NYSE: ACB), but that deal fell through. Canadian pot stocks Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY) are looking to join forces in what would be a seismic shift in the marijuana industry. Massachusetts-based Curaleaf (OTC: CURLF) reported pro forma revenue of $215.3 million in its latest quarterly results for the period ending Sept. 30. | Earlier this year, Aphria was also in advanced merger talks with Aurora Cannabis (NYSE: ACB), but that deal fell through. Combined, the two companies say that based on pro forma revenue of 874 million Canadian dollars ($685 million), they would be the largest cannabis company in the world. While Aphria and Tilray would likely become the largest Canadian cannabis company in terms of sales, the title of world's largest likely wouldn't last for long, especially since neither company would have access to the lucrative U.S. pot market while marijuana remains illegal federally. | Earlier this year, Aphria was also in advanced merger talks with Aurora Cannabis (NYSE: ACB), but that deal fell through. Even if the company were to maintain that run rate throughout the course of a full year, its revenue would come in at around $860 million, well above Aphria and Tilray's combined figure. In its latest quarterly results, Aphria's sales of CA$145.7 million were down 4% from the previous quarter. |
37027.0 | 2020-12-19 00:00:00 UTC | 5 Bold Predictions for the 2021 Stock Market | ACB | https://www.nasdaq.com/articles/5-bold-predictions-for-the-2021-stock-market-2020-12-19 | nan | nan | After the whiplash and uncertainty of 2020, the only thing I know for sure is that 2021 is going to be a weird year on the market. As the world sees the light at the end of the pandemic's dark tunnel, many of the new trends we've experienced this year may prove to be short-lived.
Or, they might be more resistant to change than we could have imagined, as I think will be the case.
Image source: Getty Images.
1. "Stay-at-home" stocks will suffer, but their earnings won't stop growing
As people get vaccinated and start to venture out to in-person businesses with more confidence, stay-home-economy companies like Zoom Video Communications and Teladoc Health will fall out of favor. After all, once the pandemic is over, there won't be tens of millions of people who need to use their services on a daily basis, right?
As true as this may be, stay-at-home stocks are far from finished. In fact, their earnings might continue to grow now that people are familiar with their products and many workplaces have grown to rely on them. In Zoom's case, it probably won't be able to sustain its quarterly earnings growth in excess of 8,884% like it did in 2020, but keep in mind that its expansion can decelerate quite a bit and still end up with impressive triple-digit growth.
2. Ethical and sustainable investing will accelerate
Global warming didn't take a break in 2020. If anything, the climate crisis is more urgent than ever before. That's why environmental, social, and governance (ESG) investing is going to be one of the hottest trends next year. In a nutshell, ESG investing means buying stocks from companies that don't contribute to the world's problems, and divesting from those that do.
Using ESG criteria like environmental friendliness to evaluate your investments ensures that your portfolio won't make you complicit in harming our planet or its people. Major asset managers like BlackRock have already pledged to account for ESG factors in 100% of their investments by the end of 2020, and others are sure to follow. Plus, ESG investing is becoming dramatically more popular among younger investors, so it'll be a major force in 2021 and beyond.
3. Marijuana stocks will face a reckoning
Many cannabis companies have seen their stock price soar this year on news of possible legalization in the U.S. But, in terms of earnings growth and shareholder-friendly policies, the industry hasn't flourished (yet). Unprofitable companies are the norm, even though in many cases quarterly revenue growth is high, such as with Cresco Labs' expansion of 326.6% year over year.
In 2021, this picture will change. Competitors like Cresco and Canopy Growth have been dutifully reducing or controlling their expenses while gaining traction in their markets over the last year, putting them within a stone's throw of consistent profitability. Once a couple of these companies are reporting earnings growth, weaker contenders like Aurora Cannabis will be less attractive to investors.
4. Robinhood traders will continue to be a driving force for bizarre valuations
Robinhood's army of retail traders has been credited or blamed for many of 2020's market oddities, especially regarding hotly traded stocks like Tesla. If 2021 heralds a new bull market, expect Robinhood investors to keep blowing bubbles.
People who day trade using the app probably won't be going back to their jobs in person until later in the year, assuming that they only do so once they are vaccinated. So, that's a few more months for them to have a strong degree of influence on the market at a minimum. Even once society fully gets back to normal, don't expect these traders to disappear. Now that they've learned the thrill of investing -- which for them might sometimes be closer to gambling -- they're not going to go cold turkey just because other stuff is on their plates.
5. The market's decoupling from the "real economy" will increase
After the crash in March, 2020 saw the market roar. Unemployment also soared, and its recovery to pre-pandemic levels is still incomplete. As Main Street suffers through restaurant and small business closures, large and public companies have seen their stocks flourish. This trend will intensify next year for one big reason: The market looks forward.
As rough as things are economically, there's a clear trajectory of improvement, even if it's slower than we might like. Investors look at this trajectory, and assume that things will be better tomorrow than they are today. So, even if today looks bleak on Main Street, there's plenty of room to improve, and the expected improvement there will ensure more revenue for public companies.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | "Stay-at-home" stocks will suffer, but their earnings won't stop growing As people get vaccinated and start to venture out to in-person businesses with more confidence, stay-home-economy companies like Zoom Video Communications and Teladoc Health will fall out of favor. Using ESG criteria like environmental friendliness to evaluate your investments ensures that your portfolio won't make you complicit in harming our planet or its people. Competitors like Cresco and Canopy Growth have been dutifully reducing or controlling their expenses while gaining traction in their markets over the last year, putting them within a stone's throw of consistent profitability. | "Stay-at-home" stocks will suffer, but their earnings won't stop growing As people get vaccinated and start to venture out to in-person businesses with more confidence, stay-home-economy companies like Zoom Video Communications and Teladoc Health will fall out of favor. In Zoom's case, it probably won't be able to sustain its quarterly earnings growth in excess of 8,884% like it did in 2020, but keep in mind that its expansion can decelerate quite a bit and still end up with impressive triple-digit growth. The Motley Fool owns shares of and recommends Cresco Labs Inc., Teladoc Health, Tesla, and Zoom Video Communications. | "Stay-at-home" stocks will suffer, but their earnings won't stop growing As people get vaccinated and start to venture out to in-person businesses with more confidence, stay-home-economy companies like Zoom Video Communications and Teladoc Health will fall out of favor. In a nutshell, ESG investing means buying stocks from companies that don't contribute to the world's problems, and divesting from those that do. Marijuana stocks will face a reckoning Many cannabis companies have seen their stock price soar this year on news of possible legalization in the U.S. | "Stay-at-home" stocks will suffer, but their earnings won't stop growing As people get vaccinated and start to venture out to in-person businesses with more confidence, stay-home-economy companies like Zoom Video Communications and Teladoc Health will fall out of favor. That's why environmental, social, and governance (ESG) investing is going to be one of the hottest trends next year. Unprofitable companies are the norm, even though in many cases quarterly revenue growth is high, such as with Cresco Labs' expansion of 326.6% year over year. |
37028.0 | 2020-12-18 00:00:00 UTC | Aurora: Negatives Still Outweigh Positives, Says Analyst | ACB | https://www.nasdaq.com/articles/aurora%3A-negatives-still-outweigh-positives-says-analyst-2020-12-18 | nan | nan | Aurora Cannabis (ACB) provided investors with a business update on Wednesday and Jefferies analyst Owen Bennett has been sifting through the news.
Did the latest developments do anything to alter Bennett’s bearish thesis? Let’s take a look.
Aurora’s update included the announcement of better credit facility terms, with C$116 million of debt obligations (from the overall C$288 million) now due in December 2022 instead of at the end of Aug 2021.
The new terms, Bennett says, give Aurora “greater flexibility around the debt,” and help address “near-term liquidity concerns somewhat.”
The company also confirmed it will close its Sun facility and will reduce production at its Sky facility by 75%, based on a “decision to move to a more variable cost structure.”
Bennett says the pivot toward the variable cost structure "appears to be driven by requirements of the debt holders vs what is best for top line.”
What’s more, it also means an increase to “third-party supply” channels, from which the product will go toward the company’s “value portfolio.” At the same time, the company will keep on using the pared back Sky facility for its premium products.
Overall, the analyst does not see the latest developments as offering evidence of a meaningful turnaround.
“While we are fully behind the potential cost and margin benefits from [the] update, for us it just adds more risk and uncertainty to near-term market share trends,” Bennett said. “Aurora has a significant presence in the below-premium price segments. There is no guarantee it can ensure quality and consistency as it moves to third-party supply, and therefore as this transition takes place we could see some volatility.”
There’s no change, then, to Bennett’s rating, which stays an Underperform (i.e. Sell). The analyst's C$4.93 (US$3.87) price target represents a steep 60% drop from current levels. (To watch Bennett’s track record, click here)
The view from the rest of the Street is hardly any rosier. Based on 10 Holds and 4 Sells, ACB has a Moderate Sell consensus rating. Going by the C$9.66 (US$7.6) average price target, the stock will be changing hands at a 19% discount a year from now. (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. | Aurora Cannabis (ACB) provided investors with a business update on Wednesday and Jefferies analyst Owen Bennett has been sifting through the news. Based on 10 Holds and 4 Sells, ACB has a Moderate Sell consensus rating. “While we are fully behind the potential cost and margin benefits from [the] update, for us it just adds more risk and uncertainty to near-term market share trends,” Bennett said. | Aurora Cannabis (ACB) provided investors with a business update on Wednesday and Jefferies analyst Owen Bennett has been sifting through the news. Based on 10 Holds and 4 Sells, ACB has a Moderate Sell consensus rating. (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. | Aurora Cannabis (ACB) provided investors with a business update on Wednesday and Jefferies analyst Owen Bennett has been sifting through the news. Based on 10 Holds and 4 Sells, ACB has a Moderate Sell consensus rating. The new terms, Bennett says, give Aurora “greater flexibility around the debt,” and help address “near-term liquidity concerns somewhat.” The company also confirmed it will close its Sun facility and will reduce production at its Sky facility by 75%, based on a “decision to move to a more variable cost structure.” Bennett says the pivot toward the variable cost structure "appears to be driven by requirements of the debt holders vs what is best for top line.” What’s more, it also means an increase to “third-party supply” channels, from which the product will go toward the company’s “value portfolio.” At the same time, the company will keep on using the pared back Sky facility for its premium products. | Aurora Cannabis (ACB) provided investors with a business update on Wednesday and Jefferies analyst Owen Bennett has been sifting through the news. Based on 10 Holds and 4 Sells, ACB has a Moderate Sell consensus rating. Going by the C$9.66 (US$7.6) average price target, the stock will be changing hands at a 19% discount a year from now. |
37029.0 | 2020-12-17 00:00:00 UTC | 3 Ways Curaleaf and Trulieve Beat Aurora Cannabis Like a Drum | ACB | https://www.nasdaq.com/articles/3-ways-curaleaf-and-trulieve-beat-aurora-cannabis-like-a-drum-2020-12-17 | nan | nan | To determine how popular a given stock is with investors, look at its average daily trading volume. Stocks with high trading volumes tend to be at the center of investors' attention.
Based on this metric, Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock around. Unsurprisingly, Aurora also ranks as the top pot stock in Robinhood's list of the 100 most popular stocks on its trading platform.
Popularity isn't everything. Curaleaf Holdings (OTC: CURLF) and Trulieve Cannabis (OTC: TCNNF) might not be in the limelight as much as Aurora, but they're beating the Canadian cannabis producer like a drum in the following ways.
Image source: Getty Images.
1. Much stronger revenue growth
Investors cheered when Aurora beat revenue expectations with its fiscal year 2021 first-quarter results in November. The company reported Q1 revenue of 67.8 million in Canadian dollars, up a measly 0.4% from the previous quarter. Even worse, Aurora lost market share in the key Canadian recreational marijuana market. The news really wasn't worthy of celebration.
Contrast that anemic performance with the latest quarterly results for Curaleaf and Trulieve. In the third quarter of 2020, Curaleaf posted total revenue of over $182 million, a 55% quarter-over-quarter increase and nearly triple the revenue generated in the prior-year period. Meanwhile, Trulieve reported all-time high revenue of more than $136 million in Q3, up 13% from the previous quarter and nearly double its revenue in the same quarter of 2019.
The stories for Curaleaf and Trulieve were actually even better than those figures. Both companies have been busy acquiring other businesses. On a pro forma basis, including pending acquisitions, Curaleaf's Q3 revenue totaled over $215 million while Trulieve's revenue approached $155 million.
2. Nearly or already profitable
Aurora's executives can only dream of getting anywhere close to achieving profitability. The Canadian company recorded a net loss in its most recent quarter of over CA$107 million.
The best Aurora can shoot for over the near term is to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Aurora posted an adjusted EBITDA loss of nearly CA$58 million in its latest quarter, but the company's goal is to record positive adjusted EBITDA in fiscal 2021 Q2.
There's a much rosier outlook for Curaleaf and Trulieve. Curaleaf reported adjusted EBITDA of over $42 million in Q3, up 51% from the previous quarter. It also wasn't too far away from profitability, with a net loss of $9.3 million. Trulieve posted adjusted EBITDA of $67.5 million in Q3, its 11th consecutive quarter of generating positive EBITDA. It also recorded a profit of over $17 million.
3. Significantly greater opportunities
Arguably the most important way that Curaleaf and Trulieve beat Aurora, though, is with their significantly greater market opportunities. Aurora competes in the Canadian recreational and medical cannabis markets, as well as in some international medical cannabis markets. However, it will be left out of the lucrative U.S. cannabis market until federal marijuana legalization happens. No one knows how long it will take for the U.S. to legalize pot at the federal level.
Curaleaf and Trulieve, of course, focus on the U.S. market. Curaleaf operates in 16 states, including fast-growing markets in Illinois and Pennsylvania. Trulieve dominates the Florida medical cannabis market and now has operations in six states.
The opportunities for the two companies continue to expand. On Election Day, five states voted to legalize recreational or medical cannabis. Two of them -- Arizona and New Jersey -- present especially promising markets.
Better buys
One analyst predicts that Aurora Cannabis stock will sink to $0 over time. I'm not that bearish about the Canadian pot stock. Aurora certainly has its challenges, but there are some reasons to hope for a brighter future.
However, I don't think that Aurora deserves its widespread popularity among investors. Curaleaf and Trulieve have much stronger financial positions and much better opportunities than Aurora does. I expect them to deliver much better returns over the long run, too. Forget popularity: Curaleaf and Trulieve are simply better marijuana stocks to buy than 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 – 11 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. | Based on this metric, Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock around. The best Aurora can shoot for over the near term is to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Forget popularity: Curaleaf and Trulieve are simply better marijuana stocks to buy than Aurora Cannabis. | Based on this metric, Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock around. Much stronger revenue growth Investors cheered when Aurora beat revenue expectations with its fiscal year 2021 first-quarter results in November. Aurora posted an adjusted EBITDA loss of nearly CA$58 million in its latest quarter, but the company's goal is to record positive adjusted EBITDA in fiscal 2021 Q2. | Based on this metric, Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock around. Aurora posted an adjusted EBITDA loss of nearly CA$58 million in its latest quarter, but the company's goal is to record positive adjusted EBITDA in fiscal 2021 Q2. Aurora competes in the Canadian recreational and medical cannabis markets, as well as in some international medical cannabis markets. | Based on this metric, Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock around. Aurora competes in the Canadian recreational and medical cannabis markets, as well as in some international medical cannabis markets. Curaleaf and Trulieve have much stronger financial positions and much better opportunities than Aurora does. |
37030.0 | 2020-12-16 00:00:00 UTC | Pre-Market Most Active for Dec 16, 2020 : TLRY, SIOX, APHA, LAZR, AAL, BHP, AAPL, NIO, ACB, NOK, AIV, F | ACB | https://www.nasdaq.com/articles/pre-market-most-active-for-dec-16-2020-%3A-tlry-siox-apha-lazr-aal-bhp-aapl-nio-acb-nok-aiv | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 20.13 to 12,616.05. The total Pre-Market volume is currently 36,466,166 shares traded.
The following are the most active stocks for the pre-market session:
Tilray, Inc. (TLRY) is +2.21 at $10.08, with 7,608,711 shares traded. TLRY's current last sale is 108.97% of the target price of $9.25.
Sio Gene Therapies Inc. (SIOX) is +1.06 at $3.90, with 4,565,154 shares traded.
Aphria Inc. (APHA) is +0.48 at $8.60, with 2,184,652 shares traded. As reported by Zacks, the current mean recommendation for APHA is in the "buy range".
Luminar Technologies, Inc. (LAZR) is +2.48 at $25.35, with 1,841,667 shares traded.LAZR is scheduled to provide an earnings report on 12/18/2020, for the fiscal quarter ending Sep2020. The consensus earnings per share forecast is -0.05 per share, which represents a 4 percent increase over the EPS one Year Ago
American Airlines Group, Inc. (AAL) is -0.13 at $16.88, with 1,327,096 shares traded. AAL's current last sale is 168.8% of the target price of $10.
BHP Group Limited (BHP) is unchanged at $65.32, with 1,126,544 shares traded.BHP is scheduled to provide an earnings report on 12/21/2020, for the fiscal quarter ending Sep2020. The consensus earnings per share forecast is 999 per share, which represents a 99,900 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.16 at $127.72, with 993,440 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NIO Inc. (NIO) is +0.74 at $44.24, with 963,764 shares traded. NIO's current last sale is 134.06% of the target price of $33.
Aurora Cannabis Inc. (ACB) is +0.2 at $10.41, with 887,831 shares traded. ACB's current last sale is 114.46% of the target price of $9.095.
Nokia Corporation (NOK) is -0.08 at $4.02, with 875,542 shares traded. NOK's current last sale is 89.33% of the target price of $4.5.
Apartment Investment and Management Company (AIV) is -0.14 at $4.90, with 800,189 shares traded., following a 52-week high recorded in prior regular session.
Ford Motor Company (F) is +0.08 at $9.23, with 512,102 shares traded. F's current last sale is 102.56% of the target price of $9.
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 +0.2 at $10.41, with 887,831 shares traded. ACB's current last sale is 114.46% of the target price of $9.095. Luminar Technologies, Inc. (LAZR) is +2.48 at $25.35, with 1,841,667 shares traded.LAZR is scheduled to provide an earnings report on 12/18/2020, for the fiscal quarter ending Sep2020. | Aurora Cannabis Inc. (ACB) is +0.2 at $10.41, with 887,831 shares traded. ACB's current last sale is 114.46% of the target price of $9.095. Luminar Technologies, Inc. (LAZR) is +2.48 at $25.35, with 1,841,667 shares traded.LAZR is scheduled to provide an earnings report on 12/18/2020, for the fiscal quarter ending Sep2020. | Aurora Cannabis Inc. (ACB) is +0.2 at $10.41, with 887,831 shares traded. ACB's current last sale is 114.46% of the target price of $9.095. The consensus earnings per share forecast is -0.05 per share, which represents a 4 percent increase over the EPS one Year Ago | ACB's current last sale is 114.46% of the target price of $9.095. Aurora Cannabis Inc. (ACB) is +0.2 at $10.41, with 887,831 shares traded. TLRY's current last sale is 108.97% of the target price of $9.25. |
37031.0 | 2020-12-15 00:00:00 UTC | Forget Aurora Cannabis: These 3 Pot Stocks Are Much More Attractive | ACB | https://www.nasdaq.com/articles/forget-aurora-cannabis%3A-these-3-pot-stocks-are-much-more-attractive-2020-12-15 | nan | nan | You probably wouldn't want to buy stock in an unprofitable company that's posting declining trailing revenue while also crashing in value by more than 62% over the course of the year -- especially when there are several sector competitors that don't have these dubious distinctions.
Aurora Cannabis (NYSE: ACB) is the stock sporting all of these red flags today. Thankfully, there are a few companies that are more appealing to investors who want to get in on the marijuana market gold rush that may electrify 2021. They're by no means perfect picks, but in the wild world of marijuana investing, they're as close as they come.
Image source: Getty Images.
1. Cresco Labs
U.S.-based Cresco Labs (OTC: CRLBF) is on an accelerating growth trajectory. Unlike Aurora Cannabis, its trailing revenue has increased by a sharp 176.4% this year, won in part by its strong coverage of wholesale and consumer retail locations in some of the most populous U.S. states. And the company's earnings are expanding alongside its revenue; it reported a record $46.4 million in adjusted earnings in the most recent quarter.
Cresco has one problem in common with Aurora: Unprofitability. Nonetheless, Cresco has spent the year making prudent cuts to its selling, general, and administrative (SG&A) expenses. So, this company might even post profits in the middle of next year, a time when Aurora will probably still be struggling.
2. Aphria
Aphria's (NASDAQ: APHA) quarterly revenue growth of 14.7% year over year is decent, but it won't turn any heads. On the other hand, it has many favorable traits that other cannabis companies lack, including having more than a full year of consecutive and positive earnings, not to mention holding the No. 3 spot in the Canadian market by revenue and the No. 1 spot in the Canadian market for vaporizers.
Aphria also has a significantly more diverse revenue base than its peers. This was bolstered by its recent acquisition of SweetWater Brewing Company, an American cannabis-infused craft beer company, for $250 million in cash and $50 million in stock. The SweetWater purchase will help it to prepare for its next big initiative: Capitalizing on potential federal marijuana legalization in the U.S.
3. GrowGeneration
GrowGeneration (NASDAQ: GRWG) is the only profitable company on this list, and it's also the one with the fastest-growing quarterly earnings, which expanded 217.9% year over year. Plus, it's nearly debt-free compared to its cash on hand and trailing revenue. So, how does this company buck all of the marijuana industry trends?
ACB Revenue (TTM) data by YCharts
Well, mostly by selling hydroponic garden supplies like tools and plant nutrients rather than cannabis products. While it does sell a few items specifically for the cultivation of marijuana, the company sells gardening that could be used to grow a wide variety of plants. In fact, with 28 locations in 10 states, it's the largest such chain of hydroponic garden centers in the U.S., and it sells to both commercial and individual customers.
As legalization and decriminalization efforts advance in the U.S. and the cannabis industry continues to expand on a state-by-state basis, you can bet that GrowGeneration's products are going to be in hot demand. In anticipation of this, the company has already positioned stores in states where it expects the cannabis market to grow the most. To assist in this process, management has also sourced quality products that it can white-label to sell directly to cannabis cultivators. All of these attributes and efforts point to favorable outcomes for shareholders, especially in comparison to companies like 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
Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cresco Labs Inc. and GrowGeneration. 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) is the stock sporting all of these red flags today. ACB Revenue (TTM) data by YCharts Well, mostly by selling hydroponic garden supplies like tools and plant nutrients rather than cannabis products. Unlike Aurora Cannabis, its trailing revenue has increased by a sharp 176.4% this year, won in part by its strong coverage of wholesale and consumer retail locations in some of the most populous U.S. states. | Aurora Cannabis (NYSE: ACB) is the stock sporting all of these red flags today. ACB Revenue (TTM) data by YCharts Well, mostly by selling hydroponic garden supplies like tools and plant nutrients rather than cannabis products. Cresco Labs U.S.-based Cresco Labs (OTC: CRLBF) is on an accelerating growth trajectory. | Aurora Cannabis (NYSE: ACB) is the stock sporting all of these red flags today. ACB Revenue (TTM) data by YCharts Well, mostly by selling hydroponic garden supplies like tools and plant nutrients rather than cannabis products. You probably wouldn't want to buy stock in an unprofitable company that's posting declining trailing revenue while also crashing in value by more than 62% over the course of the year -- especially when there are several sector competitors that don't have these dubious distinctions. | Aurora Cannabis (NYSE: ACB) is the stock sporting all of these red flags today. ACB Revenue (TTM) data by YCharts Well, mostly by selling hydroponic garden supplies like tools and plant nutrients rather than cannabis products. On the other hand, it has many favorable traits that other cannabis companies lack, including having more than a full year of consecutive and positive earnings, not to mention holding the No. |
37032.0 | 2020-12-15 00:00:00 UTC | 4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR | ACB | https://www.nasdaq.com/articles/4-top-stock-trades-for-wednesday%3A-amd-acb-nvta-spwr-2020-12-15 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A slight pop gave way to a decline in early trading, but buyers stepped in this time and drove stocks higher. Now, let’s see if we can get a strong finish to the week and this year. With that in mind, let’s look at some top stock trades in the meantime.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
Click to Enlarge
Advanced Micro Devices (NASDAQ:AMD) gave some bulls a frustrating shake-out last week.
That happened after shares opened last weekly at the two-times daily rotation level near $95, sold off, then broke Friday’s low and closed below the 10-day moving average. On the chart, I broke the last three weeks down into three blue boxes, to help make sense of the weekly ranges. I also highlighted this failure.
While shares quickly reclaimed the 10-day moving average, the stock finished the week with a question mark. On Monday AMD ran back to $95 and stalled, before breaking out clean over this mark on Tuesday (today).
AMD can be a tough one to trade, as it does bounce around a bit, but it’s moves tend to be very technical.
7 Biotech Stocks To Buy Beyond Covid Vaccine Plays
From here, I am looking for a move to $100. On the downside, though, look for $95 and the 10-day moving average to act as support.
Top Stock Trades for Tomorrow No. 2: Aurora Cannabis (ACB)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Aurora Cannabis (NYSE:ACB) and other pot stocks have been pretty quiet lately, but are starting to perk up a bit.
Shares ripped higher in early November, topping $14, settled back in near $7, then ripped higher again. After another round of settling — this time along the 200-day moving average — the stock is starting to have that look again.
That look that says it may want to pop. It’s holding the 21-day and 200-day moving averages and looking to rotate over the three-day high at $10.10. Above puts the weekly rotation in play near $10.81.
Above that — and this is key — the declining 50-week moving average will put the November high at $14.48 on the table. This a spec play and don’t forget that when it comes to position for risk.
Top Stock Trades for Tomorrow No. 3: Invitae (NVTA)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Invitae (NYSE:NVTA) is getting knocked lower on the day, down almost 7% on Tuesday. On Monday, the stock hit the 261.8% extension and was rejected.
Now we could have a dip-buying opportunity.
Shares are coming into the 21-day and 50-day moving averages at $50.56 and $48.07, respectively. The latter comes into play within penny of the December low at $48.06 as well. It also has the two-times range extension at $48.59.
If this area holds, I think bulls can look for a bounce back into the mid-$50s. Above $55 and uptrend support will put that 261.8% extension back in play near $61.30.
10 Undervalued Stocks to Buy That Are Preparing to Blast Off
A break of the 50-day moving average could trigger more selling pressure, potentially putting the 100-day moving average in play near $41.
Top Trades for Tomorrow No. 4: SunPower (SPWR)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
I had SunPower (NASDAQ:SPWR) on watch today, as it has a high short interest and continued to trade quite well. However, I did not expect a 13% gain on the day.
Share burst off uptrend support and the 10-day and 20-day moving averages, racing through the $24.40 high. If it can hold that level on the downside, bulls will keep their focus on the upside.
Picking targets has been tough for this one, but I will try. Measuring from the December low to the November high, the 161.8% extension comes into play at $27.08. Above that and $30 is possible, followed by the 261.8% extension at $31.41.
On the date of publication, Bret Kenwell held a long position in AMD and NVTA.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR 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 StockCharts.com Aurora Cannabis (NYSE:ACB) and other pot stocks have been pretty quiet lately, but are starting to perk up a bit. 2: Aurora Cannabis (ACB) The post 4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR appeared first on InvestorPlace. | Click to Enlarge Source: Chart courtesy of StockCharts.com Aurora Cannabis (NYSE:ACB) and other pot stocks have been pretty quiet lately, but are starting to perk up a bit. 2: Aurora Cannabis (ACB) The post 4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR appeared first on InvestorPlace. | The post 4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR appeared first on InvestorPlace. 2: Aurora Cannabis (ACB) Click to Enlarge Source: Chart courtesy of StockCharts.com Aurora Cannabis (NYSE:ACB) and other pot stocks have been pretty quiet lately, but are starting to perk up a bit. | The post 4 Top Stock Trades for Wednesday: AMD, ACB, NVTA, SPWR appeared first on InvestorPlace. 2: Aurora Cannabis (ACB) Click to Enlarge Source: Chart courtesy of StockCharts.com Aurora Cannabis (NYSE:ACB) and other pot stocks have been pretty quiet lately, but are starting to perk up a bit. |
37033.0 | 2020-12-15 00:00:00 UTC | Why Marijuana Stocks Were on Fire Today | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-were-on-fire-today-2020-12-15 | nan | nan | What happened
Marijuana stocks closed Tuesday trading broadly higher -- and the smaller they were, the higher they popped.
Tiny HEXO (NYSE: HEXO) closed the day up 7.9%, while Aurora Cannabis (NYSE: ACB) rose 6.8%, and industry bellwether Canopy Growth (NASDAQ: CGC) closed out the day with a 5.8% gain.
Image source: Getty Images.
So what
Why did marijuana stocks rise today? In the absence of obvious catalysts like market-moving analyst upgrades or price target increases, it's not 100% clear what investors were responding to today.
They may, for example, have drawn encouragement from news of U.S. cannabis grower Verano Holdings' reverse-merger IPO on the Canadian Securities Exchange, and the $2.8 billion value investors attached to it. MJBizDaily reports that "capital is loosening" in the marijuana industry, meaning that it is getting easier to attract financing (and investors), now that the U.S. presidential election is definitely over and a marijuana-friendly administration is set to take office next month.
Or investors may have gotten excited by an early-morning item on MarketWatch detailing a trading outlook for 2021 from MKM Partners, in which the investment broker announced a series of "winning stock themes" for the new year, cannabis being among them.
Now what
If it was the latter that investors were responding to, though, they may want to read a bit further down, and not stop at the headline. In that article, MKM explained that its preference was for a certain flavor of cannabis stock in particular -- specifically, "multistate operators" growing in more than one U.S. state.
Coincidentally, soon-to-be IPO Verano Holdings is one such multistate operator, as it's headquartered in Chicago, "active" in 12 states, and in possession of 440,000 square feet of cannabis cultivation facilities. So, too, is MKM's specific pick in the sector, Curaleaf, with its 15 cultivation sites, 24 processing sites, and 57 dispensaries spread across 18 U.S. states. In contrast, according to data from S&P Global Market Intelligence, all of HEXO's assets are located in Canada, as are the vast majority of Aurora Cannabis and Canopy Growth assets. Thus, none of these three marijuana stocks that moved today seem to fit neatly into the investment thesis that MKM outlined.
More importantly, all three of these stocks are still losing money and burning cash (as, indeed, is Curaleaf). Before getting swept up in today's marijuana stock rally, therefore, investors might want to do a gut check and ask how long they can afford to be patient for these stocks to turn a profit -- because according to analyst estimates, it's going to be at least 2023 before HEXO becomes profitable, and 2024 for Canopy Growth, and 2025 for Aurora Cannabis.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Tiny HEXO (NYSE: HEXO) closed the day up 7.9%, while Aurora Cannabis (NYSE: ACB) rose 6.8%, and industry bellwether Canopy Growth (NASDAQ: CGC) closed out the day with a 5.8% gain. MJBizDaily reports that "capital is loosening" in the marijuana industry, meaning that it is getting easier to attract financing (and investors), now that the U.S. presidential election is definitely over and a marijuana-friendly administration is set to take office next month. Or investors may have gotten excited by an early-morning item on MarketWatch detailing a trading outlook for 2021 from MKM Partners, in which the investment broker announced a series of "winning stock themes" for the new year, cannabis being among them. | Tiny HEXO (NYSE: HEXO) closed the day up 7.9%, while Aurora Cannabis (NYSE: ACB) rose 6.8%, and industry bellwether Canopy Growth (NASDAQ: CGC) closed out the day with a 5.8% gain. What happened Marijuana stocks closed Tuesday trading broadly higher -- and the smaller they were, the higher they popped. In contrast, according to data from S&P Global Market Intelligence, all of HEXO's assets are located in Canada, as are the vast majority of Aurora Cannabis and Canopy Growth assets. | Tiny HEXO (NYSE: HEXO) closed the day up 7.9%, while Aurora Cannabis (NYSE: ACB) rose 6.8%, and industry bellwether Canopy Growth (NASDAQ: CGC) closed out the day with a 5.8% gain. Before getting swept up in today's marijuana stock rally, therefore, investors might want to do a gut check and ask how long they can afford to be patient for these stocks to turn a profit -- because according to analyst estimates, it's going to be at least 2023 before HEXO becomes profitable, and 2024 for Canopy Growth, and 2025 for Aurora Cannabis. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Rich Smith has no position in any of the stocks mentioned. | Tiny HEXO (NYSE: HEXO) closed the day up 7.9%, while Aurora Cannabis (NYSE: ACB) rose 6.8%, and industry bellwether Canopy Growth (NASDAQ: CGC) closed out the day with a 5.8% gain. Before getting swept up in today's marijuana stock rally, therefore, investors might want to do a gut check and ask how long they can afford to be patient for these stocks to turn a profit -- because according to analyst estimates, it's going to be at least 2023 before HEXO becomes profitable, and 2024 for Canopy Growth, and 2025 for Aurora Cannabis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
37034.0 | 2020-12-15 00:00:00 UTC | Aurora Cannabis Can’t Grow Its Way to a Profit | ACB | https://www.nasdaq.com/articles/aurora-cannabis-cant-grow-its-way-to-a-profit-2020-12-15 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cannabis stocks have been among the biggest winners since the presidential election. And this was very good news for Aurora Cannabis (NYSE:ACB). At one time it was one of the darlings of the nascent cannabis sector, but ACB stock has fallen on hard times.
Source: Shutterstock
But some investors are beginning to believe the company has turned a corner. New management is in place that is sharpening the company’s focus. And then there is the tantalizing hope that the United States will legalize marijuana at the federal level.
I prefer taking a longer view. At some point, likely in the next decade, the United States market will become fully open for cannabis companies. In the meantime, the cannabis sector is likely to go through normal consolidation. Call it survival of the fittest.
But if only the strongest will survive, I’m not sure I’m ready to put Aurora Cannabis on that list.
A Question of When
On Nov. 3, 2020, four additional states passed ballot initiatives to legalize recreational marijuana. That now means 15 of these United States legalized both recreational and medical marijuana.
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The number is even greater for states that legalized medical marijuana. For those scoring at home, that number is now at 33, or 36 if you count Puerto Rico, Guam and the U.S. Virgin Islands.
And with an occupant in the White House who has already said he is agreeable to, at the very least, decriminalizing marijuana, the table looks to be set. However, with a pandemic still raging I’m not sure that legalization will make it high on the new administration’s priority list.
But let’s say it does. Aurora Cannabis has a minimal presence in the United States at this time. And the simple fact is that it doesn’t have the cash to get there anytime soon.
Aurora Cannabis Has a Narrow Path
When I first started writing about Aurora Cannabis last year, I saw a path for the company through medical marijuana. Unfortunately the company took an untimely and unwise detour. Aurora tried to become one of Canada’s leading growers at a time when it was becoming clear that supply far exceeded demand.
That left Aurora in a position of devaluing the assets they have. And with only about $50 million of revenue in the last quarter, it’s still clear that they have work to do in capturing market share in their home country.
I still believe that the path to legalizing cannabis in the United States goes through the medical marijuana route. And this is where Aurora Cannabis has its most compelling story. But this is a narrow path that includes the twin sirens of competition and regulation.
And then there’s the problem of cash. As in, Aurora continues to burn through cash. That isn’t entirely unexpected. However, unlike Canopy Growth (NASDAQ:CGC) that has Constellation Brands (NYSE:STZ ) infusing cash into its operations, Aurora is largely on its own.
This crystallizes the problem as I see it for Aurora and ACB stock. Without revenue, it has no choice but to issue new shares in order to raise cash. It’s fair to say that with enough discipline the cycle could stop. The problem for Aurora is that it rarely does.
ACB Stock Is Not a Buy Yet
The cannabis sector has had more than its share of unfortunate events. Even if you’re the biggest cannabis bull, you will have to have an exceptional amount of patience as you wait for this market to mature.
And I understand that our national lack of patience may make a temporary spike in ACB stock look attractive. I’d advise against that line of thinking.
Aurora Cannabis pushed aggressive growth when it should have stayed put. Now it can’t afford to stay put, but the only way for it to grow is to continue to dilute shareholder value. Aurora made its balance sheet look better because it cut spending. As I’ve remarked before, playing defense only gets you so far, particularly when you’re in a growth sector.
You don’t have to be weak on cannabis to not like where this story is headed. ACB stock looks weak at a time when it needs to be strong. There are simply other cannabis stocks that look like a better buy.
On the date of publication Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Chris Markoch is a freelance financial copywriter who has been covering the market for over six years. He has been writing for Investor Place since 2019.
The post Aurora Cannabis Can’t Grow Its Way to a Profit 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. | And I understand that our national lack of patience may make a temporary spike in ACB stock look attractive. And this was very good news for Aurora Cannabis (NYSE:ACB). At one time it was one of the darlings of the nascent cannabis sector, but ACB stock has fallen on hard times. | And this was very good news for Aurora Cannabis (NYSE:ACB). At one time it was one of the darlings of the nascent cannabis sector, but ACB stock has fallen on hard times. This crystallizes the problem as I see it for Aurora and ACB stock. | And this was very good news for Aurora Cannabis (NYSE:ACB). At one time it was one of the darlings of the nascent cannabis sector, but ACB stock has fallen on hard times. This crystallizes the problem as I see it for Aurora and ACB stock. | ACB Stock Is Not a Buy Yet The cannabis sector has had more than its share of unfortunate events. ACB stock looks weak at a time when it needs to be strong. And this was very good news for Aurora Cannabis (NYSE:ACB). |
37035.0 | 2020-12-15 00:00:00 UTC | CANADA STOCKS - TSX rises 0.62% to 17,494.63 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.62-to-17494.63-2020-12-15 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.62 percent to 17,494.63
* Leading the index were Silvercorp Metals Inc , up 8.1%, First Majestic Silver Corp FR.TO, up 7.5%, and BRP Inc DOO.TO, higher by 6.3%.
* Lagging shares were Fairfax Financial Holdings Ltd FFH.TO, down 2.7%, Kinaxis Inc KXS.TO, down 2.6%, and Lundin Gold Inc LUG.TO, lower by 2.6%.
* On the TSX 176 issues rose and 41 fell as a 4.3-to-1 ratio favored advancers. There were 8 new highs and no new lows, with total volume of 162.0 million shares.
* The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Cenovus Energy Inc CVE.TO and Aurora Cannabis Inc ACB.TO.
* The TSX's energy group .SPTTEN rose 0.81 points, or 0.9%, while the financials sector .SPTTFS climbed 0.46 points, or 0.2%.
* West Texas Intermediate crude futures CLc1 rose 1.26%, or $0.59, to $47.58 a barrel. Brent crude LCOc1 rose 0.86%, or $0.43, to $50.72 O/R
* The TSX is up 2.5% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Cenovus Energy Inc CVE.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.62 percent to 17,494.63 * Leading the index were Silvercorp Metals Inc , up 8.1%, First Majestic Silver Corp FR.TO, up 7.5%, and BRP Inc DOO.TO, higher by 6.3%. * Lagging shares were Fairfax Financial Holdings Ltd FFH.TO, down 2.7%, Kinaxis Inc KXS.TO, down 2.6%, and Lundin Gold Inc LUG.TO, lower by 2.6%. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Cenovus Energy Inc CVE.TO and Aurora Cannabis Inc ACB.TO. * The TSX's energy group .SPTTEN rose 0.81 points, or 0.9%, while the financials sector .SPTTFS climbed 0.46 points, or 0.2%. Brent crude LCOc1 rose 0.86%, or $0.43, to $50.72 O/R * The TSX is up 2.5% for the year. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Cenovus Energy Inc CVE.TO and Aurora Cannabis Inc ACB.TO. * The TSX's energy group .SPTTEN rose 0.81 points, or 0.9%, while the financials sector .SPTTFS climbed 0.46 points, or 0.2%. Brent crude LCOc1 rose 0.86%, or $0.43, to $50.72 O/R * The TSX is up 2.5% for the year. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Cenovus Energy Inc CVE.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.62 percent to 17,494.63 * Leading the index were Silvercorp Metals Inc , up 8.1%, First Majestic Silver Corp FR.TO, up 7.5%, and BRP Inc DOO.TO, higher by 6.3%. * Lagging shares were Fairfax Financial Holdings Ltd FFH.TO, down 2.7%, Kinaxis Inc KXS.TO, down 2.6%, and Lundin Gold Inc LUG.TO, lower by 2.6%. |
37036.0 | 2020-12-14 00:00:00 UTC | Aurora Cannabis Needs More Than a Symbolic Gesture | ACB | https://www.nasdaq.com/articles/aurora-cannabis-needs-more-than-a-symbolic-gesture-2020-12-14 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dec. 4 passage of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act by the U.S. House of Representatives should have been a happy occasion for Aurora Cannabis (NYSE:ACB) and ACB stock.
Source: Shutterstock
After all, the act decriminalizes cannabis at the federal level, providing additional opportunities for Aurora and all the other Canadian cannabis companies south of the border.
However, in five days of trading since, it’s been nothing but downhill for Aurora’s share price. As reality set in that the House’s move represents nothing more than a symbolic gesture, investors have taken it as a cue to exit.
Aurora’s stock is up 152% since hitting a 52-week low of $3.71 on Oct. 28. For the Edmonton-based company to remain in double digits, it will have to do more than ride President-elect Joe Biden’s coattails.
It was a nice story, but that’s it.
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I’m 100% behind the federal decriminalization of cannabis. Heck, if I had it my way, the U.S. federal government would decriminalize all illicit drugs, but that’s a subject for another day. However, for too long, Aurora has been overpromising and under-delivering.
It’s time for Aurora CEO Miguel Martin to step up in 2021. Symbolic gestures just won’t cut it.
Aurora Does Have Some Quality Assets
When you consider that Aurora has a trifecta of revenue streams — medical cannabis, consumer cannabis and hemp-derived cannabidiol (CBD) — you would think that its business would be thriving.
And in some ways, it is.
The company has the number one Canadian medical-cannabis platform by revenue and strong international growth. Its CBD brand Reliva has become the first or second choice of most shoppers at brick-and-mortar retail stores. And, personally, I’ve tried its Aurora Drift chocolate edibles, and they were pretty good.
So, it’s not as if the business doesn’t bring anything to the table.
However, InvestorPlace’s Vince Martin recently called Aurora out for not having a large enough presence in the U.S., a key market to conquer if you want to be a global cannabis player.
“The company has minimal exposure to the U.S., even assuming federal legalization. A stretched balance sheet is forcing the company to slash costs, and would limit its ability to aggressively tackle a federally legalized market,” Martin wrote on Dec. 8.
My colleague is right to a certain extent. However, I don’t think there’s any question that the acquisition of Reliva in May, which cost it a maximum of $85 million in stock, gives it excellent expansion potential in the lucrative U.S. CBD market.
Reliva’s not going to be the difference-maker, but it will give the company time to figure out how to expand its presence further south of the border.
Where Does ACB Stock Go From Here?
The last time I wrote about Aurora was in September. I believed that Miguel Martin was a good choice as CEO. If you want to know more about his plans, you should watch this short video.
“With 25 years of experience in the consumer packaged goods industry, it is Martin’s time spent at Altria (NYSE:MO) as senior vice president of sales and distribution that ought to make him a refreshing change from former CEO and co-founder, Terry Booth,” I wrote on Sept. 16.
Having been CEO of Reliva before becoming chief commercial officer of Aurora, he was ideally suited to hit the ground running. Now, three months into his promotion as CEO, things are starting to happen.
On Nov. 25, Aurora Europe announced its first shipment of “Made-in-Europe” medical cannabis to German pharmacies. The dried flower was produced at Aurora Nordic in Denmark. Capable of producing 10,000 kilograms of high-quality medical cannabis, Aurora is ready to take the European market by storm.
Two years in the making, Aurora Nordic will be a key cog in the wheel.
On the same day of its announcement in Europe, Aurora revealed that it had entered into a strategic supply agreement with Cantek Holdings, a leading Israeli medical cannabis company. The agreement calls for Aurora to supply Cantek with a minimum of 4,000 kilograms of bulk dried flower annually. The product will be processed, turned into finished product and co-branded under the Aurora and Cantek names.
So, things are happening.
The Bottom Line
In my September article, when ACB was around $7, I suggested it might be a good buy for aggressive investors.
“The new CEO is taking the helm of a business that’s been completely humbled over the past seven months. It will be a tremendous challenge for Martin as he focuses on Aurora’s four goals for growth,” I wrote. “If you’re an aggressive investor, having lost 30% of its value over the past month, now is an excellent time to make a bet on ACB stock, but only if you can afford to lose the entire bet.”
Although ACB stock dropped to as low as $3.71, it’s managed to recover and then some.
At this point, I would be hesitant to buy its shares for double digits. However, I do think it’s making progress. Were it to fall back into the $7 range, aggressive investors ought to be all over it.
If you’re looking for a long-term investment, there are better bets in Canada and the U.S.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post Aurora Cannabis Needs More Than a Symbolic Gesture 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. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dec. 4 passage of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act by the U.S. House of Representatives should have been a happy occasion for Aurora Cannabis (NYSE:ACB) and ACB stock. Where Does ACB Stock Go From Here? The Bottom Line In my September article, when ACB was around $7, I suggested it might be a good buy for aggressive investors. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dec. 4 passage of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act by the U.S. House of Representatives should have been a happy occasion for Aurora Cannabis (NYSE:ACB) and ACB stock. “If you’re an aggressive investor, having lost 30% of its value over the past month, now is an excellent time to make a bet on ACB stock, but only if you can afford to lose the entire bet.” Although ACB stock dropped to as low as $3.71, it’s managed to recover and then some. Where Does ACB Stock Go From Here? | InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dec. 4 passage of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act by the U.S. House of Representatives should have been a happy occasion for Aurora Cannabis (NYSE:ACB) and ACB stock. Where Does ACB Stock Go From Here? The Bottom Line In my September article, when ACB was around $7, I suggested it might be a good buy for aggressive investors. | “If you’re an aggressive investor, having lost 30% of its value over the past month, now is an excellent time to make a bet on ACB stock, but only if you can afford to lose the entire bet.” Although ACB stock dropped to as low as $3.71, it’s managed to recover and then some. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dec. 4 passage of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act by the U.S. House of Representatives should have been a happy occasion for Aurora Cannabis (NYSE:ACB) and ACB stock. Where Does ACB Stock Go From Here? |
37037.0 | 2020-12-11 00:00:00 UTC | Canopy Growth Stock Is a Bet on a U.S. Market Which May Not Arrive | ACB | https://www.nasdaq.com/articles/canopy-growth-stock-is-a-bet-on-a-u.s.-market-which-may-not-arrive-2020-12-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cannabis stocks are hot again, and industry leader Canopy Growth (NASDAQ:CGC) has benefited. Before a 5% pullback on Wednesday, CGC stock had better than doubled in a little over two months. Even with the one-day weakness, shares are up 37% year-to-date.
Source: Shutterstock
It’s been a long time coming. The sector as a whole topped out back in March of 2019, when CGC briefly cleared $50. Since then, consistently disappointing results in Canada, as well as a lack of movement elsewhere in the world, have undercut sentiment. In fact, the 40%-plus decline in CGC stock from its March 2019 peak is relatively minimal compared to a 90%-plus plunge for Aurora Cannabis (NYSE:ACB) and an 85% fall for Hexo (NYSE:HEXO), to name just two struggling rivals.
But sentiment has turned, at least for now. And it’s U.S. politics that appear to be the catalyst. Positive results in the November elections along with long-awaited movement at the federal level are sparking hopes of full legalization. Canopy, more so than perhaps any other Canadian producer, would be a big winner in that scenario.
The problem after the rally, however, is that the case for Canopy stock and the sector as a whole increasingly rests on that U.S. market. We’ve seen enough, or at least close to enough, to believe that other regulated markets (whether recreational or medical) simply do not and cannot offer the profits required to support even current valuations.
That leaves CGC stock vulnerable to sentiment toward U.S. legalization. Of late, that’s been a plus for the stock. At some point, that’s likely to change.
The Turnaround Begins
There is a sense that Canopy itself is in the middle of a potentially successful turnaround. That sense isn’t completely wrong.
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Canopy brought in David Klein from shareholder Constellation Brands (NYSE:STZ,NYSE:STZ.B) to improve execution. He’s done so. Layoffs have significantly lowered operating expenses and cash burn. Production has been rationalized, with Canopy this week announcing the closure of more production facilities.
Canopy, like so many other Canadian producers, simply overshot. The demand in Canada and elsewhere was not there to support the vast amount of production capacity put into place. Significant oversupply led to a lack of pricing power and crushed profit margins. The company at least is taking steps to try and fix that problem.
Meanwhile, Canopy still is investing behind its business, as it should. CBD (cannabidiol) products have been launched in Canada and the U.S. According to Canopy’s fiscal second quarter earnings release last month, the company is gaining market share, with a 200 basis point improvement in Q2 to 15.5% from 13.5% the quarter before.
Indeed, revenue in the quarter was an all-time record for Canopy. That growth came with lower spending, as Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss narrowed sharply year-over-year. Operating expenses declined 19% y-o-y, while gross margin expanded signficantly.
As I wrote at the beginning of the year, the hope coming into 2020 was that Klein would make Canopy Growth a better company. It certainly seems like he’s succeeding. The market is responding as such: CGC stock rallied almost 5% after earnings.
Is It Enough?
And yet there’s a real question as to whether ‘better’ is good enough. Taking a step back and reviewing the Q2 report, it’s hard to answer in the affirmative.
Revenue did grow. Adjusted EBITDA loss did narrow. But the quarter remains something close to a disaster.
Canopy generated 135 million CAD in revenue. Adjusted EBITDA was negative 85.7 million CAD. Canopy, using the most favorable possible profit metric, still lost 63 cents for every dollar in sales. Free cash flow burn, at over 190 million CAD, dwarfed revenue.
Yes, the Canadian market is relatively new. But it’s not that new. “Cannabis 2.0” products have been rolled out. Retail stores have opened after regulatory bottlenecks slowed capacity. There should be a way to at least near profitability in this market. Canopy is nowhere close.
The rest of the world isn’t contributing enough, either. International medical revenue actually declined 3% year-over-year.
And so it’s exceedingly difficult to see how this business, outside of the U.S., can support a market capitalization now back over $10 billion. Net cash of 1.2 billion CAD (roughly $940 million) obviously isn’t enough. The profits required to support that valuation have to come somewhere, and it’s hard to see that ‘somewhere’ being anywhere but the U.S.
The U.S. and CGC Stock
Now, if the U.S. does come around, Canopy has a huge opportunity. The likes of Aurora are hamstrung by balance sheet problems. Canopy has a deal with Acreage Holdings (OTCMKTS:ACRHF) that could provide for almost-instant access to a federally regulated American market.
But there are two core reasons for caution. The first is that Canopy isn’t necessarily just going to waltz in and take market share. Existing multi-state operators like Trulieve Cannabis (OTCMKTS:TCNNF) already have strong presences and valuable brands.
The second is that federal legalization is not a slam dunk. And it’s legalization, not just decriminalization, that almost certainly would be required for a company like Canopy to have the needed access to financial and other resources.
The U.S. House of Representatives did vote on cannabis decriminalization last week, but it was largely a symbolic vote. Republicans in the Senate still likely have enough power to block any legislation, and Joe Biden has said that he does not support full legalization.
State-level elections did provide some support for legalization and decriminalization — but, again, that’s not enough. Canopy needs movement at the federal level to enter the U.S. And it needs to enter the U.S. to create the profits needed to move CGC stock higher.
That entry could still be many, many years off. And when investors realize that fact, the rally in CGC stock is likely to reverse.
On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Canopy Growth Stock Is a Bet on a U.S. Market Which May Not Arrive 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. | In fact, the 40%-plus decline in CGC stock from its March 2019 peak is relatively minimal compared to a 90%-plus plunge for Aurora Cannabis (NYSE:ACB) and an 85% fall for Hexo (NYSE:HEXO), to name just two struggling rivals. We’ve seen enough, or at least close to enough, to believe that other regulated markets (whether recreational or medical) simply do not and cannot offer the profits required to support even current valuations. That growth came with lower spending, as Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss narrowed sharply year-over-year. | In fact, the 40%-plus decline in CGC stock from its March 2019 peak is relatively minimal compared to a 90%-plus plunge for Aurora Cannabis (NYSE:ACB) and an 85% fall for Hexo (NYSE:HEXO), to name just two struggling rivals. Positive results in the November elections along with long-awaited movement at the federal level are sparking hopes of full legalization. Layoffs have significantly lowered operating expenses and cash burn. | In fact, the 40%-plus decline in CGC stock from its March 2019 peak is relatively minimal compared to a 90%-plus plunge for Aurora Cannabis (NYSE:ACB) and an 85% fall for Hexo (NYSE:HEXO), to name just two struggling rivals. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cannabis stocks are hot again, and industry leader Canopy Growth (NASDAQ:CGC) has benefited. According to Canopy’s fiscal second quarter earnings release last month, the company is gaining market share, with a 200 basis point improvement in Q2 to 15.5% from 13.5% the quarter before. | In fact, the 40%-plus decline in CGC stock from its March 2019 peak is relatively minimal compared to a 90%-plus plunge for Aurora Cannabis (NYSE:ACB) and an 85% fall for Hexo (NYSE:HEXO), to name just two struggling rivals. According to Canopy’s fiscal second quarter earnings release last month, the company is gaining market share, with a 200 basis point improvement in Q2 to 15.5% from 13.5% the quarter before. As I wrote at the beginning of the year, the hope coming into 2020 was that Klein would make Canopy Growth a better company. |
37038.0 | 2020-12-11 00:00:00 UTC | Could Aurora Cannabis Be a Millionaire-Maker Stock? | ACB | https://www.nasdaq.com/articles/could-aurora-cannabis-be-a-millionaire-maker-stock-2020-12-11 | nan | nan | Aurora Cannabis (NYSE: ACB) was one of the biggest winning pot stocks last month. Its return of over 120% in November beat the S&P 500's 10% gain hands down. The company is part of a great trend in which Canadian pot growers are setting more realistic production goals after a couple of years of over-expansion.
With the stock gaining so fast, investors wonder if a small investment in the company could turn them into millionaires down the line. Today, let's look at whether or not there is in fact an explosive embedded in Aurora stock and if now is the right time to initiate a position.
Image source: Getty Images.
Some progress at last
Like all stocks that may have huge upside potential, Aurora must demonstrate that it generate impressive revenue growth. Luckily, the company has just that from its acquisition of hemp cannabidiol (CBD) company Reliva.
Reliva generates about $10 million in revenue per year and is among the top two most popular CBD brands across the country today. The other belongs to Charlotte's Web. Reliva's products are available in more than 20,000 retail stores. The pick up of these brands isn't bad considering this is Aurora's first expansive action into the U.S. market.
That's not all. Aurora took aggressive measures to close down production facilities and lay off employees back in June after its newly invested plants failed to make a profit. The company managed to reduce its annual production quotas from 500,000 kilograms (kg) of dried cannabis per year to 142,500 kg. Such cost-cutting tactics saved Aurora about CA$57 million per quarter in selling, general, and administrative expenses.
Right now, Aphria (TSX: APHA)(NASDAQ: APHA) boasts the title of biggest pot-grower in Canada, while Curaleaf (CNSX: CURA)(OTC: CURLF) dominates the U.S. market, both in terms of revenue. The winner's circle's dynamics may soon change, though, as Aurora is making significant progress to turn around the business. The company has finally achieved No. 1 market share in the Canadian medical cannabis sector, with over 85,000 active patients and 40% revenue growth quarter over quarter for the segment.
Nonetheless, problems persist
Despite significant progress, the company's share of woes still lingers. In the first quarter of 2021 (ended Sept. 30), Aurora's sales fell from 73.7 million Canadian dollars in last year's quarter to CA$67.8 million. Although its operating loss fell year over year by about CA$35 million, the company did recognize about CA$21.9 million in one-time expenses largely due to the termination of its partnership with the UFC.
Even though it is scaling down its business, the company's production is still excessive. During Q1 2021, it managed to sell just over 16,000 kg of cannabis, compared to about 46,874 kg produced in the quarter.
Since the company isn't profitable, it must rely on what's left of its cash balance and further stock offerings to stay afloat. Right now, the company has about CA$151 million worth of cash and investments, compared to about CA$185 million in loans and CA$322 million in convertible note liabilities. Over the past year, the company has issued more than 32 million shares to keep its operations going. The streak of stock dilutions may be near its end, as this is the third consecutive quarter that Aurora has been cutting down its operating loss.
Here's the good news
Despite suffering a catastrophic blow to its expansion plans, Aurora proved that it could quickly scale down its operations to become more in line with what consumers ask for. As another example, the company managed to cut down its expenditures to CA$15.8 million versus CA$106.8 million in the same period last year.
Right now, the stock may be significantly undervalued compared to its potential. It trades for just 5.6 times revenue and 1.2 times net assets. As Aurora continues to focus on realigning its Canadian business with market conditions and pushes its U.S. expansion efforts, I'd expect Aurora to achieve its growth goals in no time. However, its many challenges ahead indicate that this is not a get-rich-quick stock, especially if one wants to turn a small position into a million-dollar holding. But for marijuana investors with a long-term contrarian mindset, I'd highly recommend checking out Aurora 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
Zhiyuan Sun 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) was one of the biggest winning pot stocks last month. The company is part of a great trend in which Canadian pot growers are setting more realistic production goals after a couple of years of over-expansion. Aurora took aggressive measures to close down production facilities and lay off employees back in June after its newly invested plants failed to make a profit. | Aurora Cannabis (NYSE: ACB) was one of the biggest winning pot stocks last month. In the first quarter of 2021 (ended Sept. 30), Aurora's sales fell from 73.7 million Canadian dollars in last year's quarter to CA$67.8 million. Although its operating loss fell year over year by about CA$35 million, the company did recognize about CA$21.9 million in one-time expenses largely due to the termination of its partnership with the UFC. | Aurora Cannabis (NYSE: ACB) was one of the biggest winning pot stocks last month. In the first quarter of 2021 (ended Sept. 30), Aurora's sales fell from 73.7 million Canadian dollars in last year's quarter to CA$67.8 million. Although its operating loss fell year over year by about CA$35 million, the company did recognize about CA$21.9 million in one-time expenses largely due to the termination of its partnership with the UFC. | Aurora Cannabis (NYSE: ACB) was one of the biggest winning pot stocks last month. Reliva generates about $10 million in revenue per year and is among the top two most popular CBD brands across the country today. Even though it is scaling down its business, the company's production is still excessive. |
37039.0 | 2020-12-11 00:00:00 UTC | Where Will HEXO Be in 1 Year? | ACB | https://www.nasdaq.com/articles/where-will-hexo-be-in-1-year-2020-12-11 | nan | nan | We all saw what happened when the popular Canadian pot stock Aurora Cannabis (NYSE: ACB) chose to initiate a reverse stock split in May. Aurora's shares had started trading below $1 on the New York Stock Exchange (NYSE), which is against the trading compliance. To save its stock from getting delisted, Aurora opted for a 1-for-12 reverse stock split. It boosted the share price for a limited period, before the stock crashed this year. Aurora's consistent unimpressive quarterly results added to the disaster. The company's stock has slumped 59% so far this year, compared to the measly 1% gain of the industry benchmark, the Horizons Marijuana Life Sciences ETF.
Another Canadian pot company in the same boat as Aurora is HEXO (NYSE: HEXO), which received an NYSE listing warning in May when its shares fell and traded below $1 for 30 consecutive days. Now, to save itself from getting delisted, HEXO has proposed an 8-for-1 reverse stock split. This consolidation of its shares is subject to shareholder approval today, Dec. 11. In the face of mixed recent fourth quarter 2020 results and shares that are down 35% year to date, will this share consolidation help save the stock and give the company time to achieve profitability?
Image source: Getty Images.
Is HEXO set up for success?
Recreational cannabis products contributed 83% to HEXO's fourth-quarter (ended July 31) total net revenue, which was up 76% year over year to 27.1 million Canadian dollars.
Cannabis derivatives, in particular, added to the top-line growth. Derivatives are additional recreational cannabis products that Canada legalized as part of the "Cannabis 2.0" legalization in October 2019. Cannabis. 2.0 products include vapes, edibles, concentrates, and beverages. HEXO offered its vape products across Canada to both recreational and medical consumers in July.
Additionally, it also launched cannabidiol (CBD) and tetrahydrocannabinol (THC) infused beverages during the quarter through Truss Beverage, a partnership venture with Molson Coors Canada (a business under the Molson Coors Beverage Company (NYSE: TAP) umbrella). These offerings, launched under five brands -- Little Victory, House of Terpenes, Mollo, Veryvell, and XMG -- brought in CA$1.9 million worth of sales in the quarter.
HEXO also created a business venture with Molson Coors to explore opportunities for offering non-alcoholic, hemp-derived CBD beverages in Colorado. The company kept all production and distribution within Colorado state lines, where recreational use of marijuana is legal. (The use of CBD in food and beverages is still federally regulated by the U.S. Food and Drug Administration.)
In July, HEXO marked its entry into the Israeli medical cannabis market by launching its products through an agreement with Breath of Life International, an Israeli medical cannabis company. The Israeli medical cannabis market is seeing a surge in patients that could bring in more consumers for HEXO's products. In the last two years, authorized medical cannabis patients have more than doubled in Israel, according to Marijuana Business Daily. Moreover, Israel has strict border controls that limit the illicit cannabis market, which could help preserve legal cannabis sales.
Both of these deals have yet to reach their full potential in adding to HEXO's overall revenue growth and profits.
Achieving profitability could still take a while
HEXO's quarterly operating expenses jumped to CA$418.6 million from CA$110 million in the year-ago period. Various impairment charges and new product launches added to the higher expenses in the quarter, according to management. The adjusted EBITDA, which stands for earnings before income, tax, depreciation, and amortization, loss of CA$3.2 million is easily explained by the rise in expenses. However, the good news is Q4 2020 EBITDA was an improvement compared to a whopping CA$28 million loss in Q4 2019.
A company that handles operating expenses in an efficient manner can bring itself close to achieving positive EBITDA. HEXO assured investors in its Q4 results that it is working its way toward achieving positive adjusted EBITDA by the first half of 2021. Peer Aurora Cannabis also expects to achieve positive adjusted EBITDA by its second-quarter fiscal 2021 ending Dec. 31.
I am highly doubtful that this will happen, since Aurora again recorded huge losses in its first-quarter along with declining revenues. It looks like HEXO is in the same boat. With the recent surge in operating expenses, its revenue growth is not enough to breakeven, at least not by the first half of 2021. Though the expenses were incurred to launch new derivatives, the sales from derivatives products don't look like they'll be enough to cover those expenses.
We will have to wait and see how HEXO lives up to its promises. For now, it remains a risky cannabis stock. But its strategies to expand into the Israel medical cannabis market and strengthen its cannabis beverage business in Canada and the U.S. could help it earn more, more quickly. If (or when) federal legalization happens in the U.S., there will be a much wider market for HEXO's derivatives products.
HEXO data by YCharts
Stock consolidation is not always a bad thing -- it can help boost its price. But that can only happen if the company uses the money raised in a productive way. If HEXO fails to grow its earnings and revenue after consolidation, it will lead to a worse stock dilution scenario (in which the value of the stock is reduced for existing investors). With that in mind, I would advise keeping a close watch on this marijuana company's progress before putting the stock in your basket.
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 recommends HEXO. 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. | We all saw what happened when the popular Canadian pot stock Aurora Cannabis (NYSE: ACB) chose to initiate a reverse stock split in May. The company's stock has slumped 59% so far this year, compared to the measly 1% gain of the industry benchmark, the Horizons Marijuana Life Sciences ETF. These offerings, launched under five brands -- Little Victory, House of Terpenes, Mollo, Veryvell, and XMG -- brought in CA$1.9 million worth of sales in the quarter. | We all saw what happened when the popular Canadian pot stock Aurora Cannabis (NYSE: ACB) chose to initiate a reverse stock split in May. Recreational cannabis products contributed 83% to HEXO's fourth-quarter (ended July 31) total net revenue, which was up 76% year over year to 27.1 million Canadian dollars. Derivatives are additional recreational cannabis products that Canada legalized as part of the "Cannabis 2.0" legalization in October 2019. | We all saw what happened when the popular Canadian pot stock Aurora Cannabis (NYSE: ACB) chose to initiate a reverse stock split in May. Another Canadian pot company in the same boat as Aurora is HEXO (NYSE: HEXO), which received an NYSE listing warning in May when its shares fell and traded below $1 for 30 consecutive days. Recreational cannabis products contributed 83% to HEXO's fourth-quarter (ended July 31) total net revenue, which was up 76% year over year to 27.1 million Canadian dollars. | We all saw what happened when the popular Canadian pot stock Aurora Cannabis (NYSE: ACB) chose to initiate a reverse stock split in May. In the face of mixed recent fourth quarter 2020 results and shares that are down 35% year to date, will this share consolidation help save the stock and give the company time to achieve profitability? 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. |
37040.0 | 2020-12-10 00:00:00 UTC | Interesting ACB Put And Call Options For January 2021 | ACB | https://www.nasdaq.com/articles/interesting-acb-put-and-call-options-for-january-2021-2020-12-10 | nan | nan | Investors in Aurora Cannabis Inc (Symbol: ACB) saw new options begin trading today, for the January 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new January 2021 contracts and identified one put and one call contract of particular interest.
The put contract at the $6.50 strike price has a current bid of 31 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $6.50, but will also collect the premium, putting the cost basis of the shares at $6.19 (before broker commissions). To an investor already interested in purchasing shares of ACB, that could represent an attractive alternative to paying $9.74/share today.
Because the $6.50 strike represents an approximate 33% 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 4.77% return on the cash commitment, or 34.82% 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 $6.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $11.50 strike price has a current bid of $1.18. If an investor was to purchase shares of ACB stock at the current price level of $9.74/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $11.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 30.18% if the stock gets called away at the January 2021 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 $11.50 strike highlighted in red:
Considering the fact that the $11.50 strike represents an approximate 18% 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 12.11% boost of extra return to the investor, or 88.44% 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 $9.74) to be 147%. 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 $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 18% 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 January 2021 expiration. | Below is a chart showing ACB's trailing twelve month trading history, with the $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 18% 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 January 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new January 2021 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 $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 18% 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 January 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ACB options chain for the new January 2021 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 January 2021 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 $11.50 strike highlighted in red: Considering the fact that the $11.50 strike represents an approximate 18% 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 January 2021 expiration. |
37041.0 | 2020-12-10 00:00:00 UTC | Better Cannabis Stock: Aurora Cannabis or Canopy Growth? | ACB | https://www.nasdaq.com/articles/better-cannabis-stock%3A-aurora-cannabis-or-canopy-growth-2020-12-10 | nan | nan | Cannabis stocks have been on fire since the November election. The Horizons Marijuana Life Sciences ETF is up more than 45% since the start of last month, significantly outperforming the S&P 500, which is up just 13% during that time. Pot investors are more bullish on the future of the industry after four new states legalized marijuana for recreational use: Arizona, Montana, New Jersey, and South Dakota.
Investors are also bullish on Joe Biden, the Democrat who won the presidential election and who has expressed a more favorable view on marijuana than President Donald Trump. While full legalization may not be in the cards under a Biden Administration, the President-elect supports federal decriminalization.
All this positive news has made many pot stocks hot buys again. Even stocks of Canadian cannabis giants Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) got big boosts, rising 51% and 154%, respectively, since November. The two rivals are both eyeing the U.S. market and chomping at the bit for marijuana to become legal at the federal level so they can tap into the lucrative opportunities. Let's take a closer look at which stock is in a better position to enter the U.S. and which one is the better buy right now.
Image source: Getty Images.
Canopy Growth's big advantage: Partnerships
Ontario-based Canopy Growth has a big advantage over many of its peers because if it needed to enter the U.S. market, it wouldn't be starting from square one. Alcohol giant Constellation Brands (NYSE: STZ) has a 38.6% stake in the Canadian pot producer, which can not just aid Canopy Growth from a financial and distribution perspective, but has also allowed the two companies to collaborate on beverages.
Canopy Growth also entered into a tentative agreement to acquire Acreage Holdings in 2019. The deal cannot be completed until marijuana is federally legal in the U.S., but if and when that happens, it would instantly give Canopy Growth a presence in 15 states.
That's why the Canadian cannabis company is in an excellent position to enter the U.S. marijuana market once it's legal to do so. For investors, it remains a waiting game as it's unclear if and when legalization may take place, but Canopy Growth looks like it could be among the biggest benefactors of full federal legalization. With a couple of great partnerships to facilitate its growth south of the border, it could quickly become one of the bigger names in the U.S. pot industry.
Until that happens, however, the company will need to focus on its existing operations. On Nov. 9, Canopy Growth released its second-quarter results for the period ending Sep. 30, posting record sales of 135.3 million Canadian dollars. However, profitability remains a challenge as the company reported a loss of CA$96.6 million. The company has been in the red in each of the past four quarters.
Without its prospects for the U.S. market, Canopy Growth wouldn't be as attractive of an investment as it is today.
Do cash issues hinder Aurora's potential growth?
Aurora doesn't have a big-name backer that it can rely on for help. Even billionaire investor Nelson Peltz wasn't able to help broker a deal for the cannabis company as an advisor. In May, it conducted a 12-for-1 reverse stock split to save itself from being delisted from the NYSE after consistently trading under $1.
But Aurora is also eyeing the U.S. market, and in the spring, it acquired hemp company Reliva, which operates in the U.S. Hemp is already legal federally in the U.S. and while the acquisition could potentially help Aurora's eventual move into American markets, it's not a multistate operator like Acreage, which gives Canopy the upper hand in that respect. And while hemp is a great way to enter the U.S., investors should know how much bigger the legal marijuana market is. By 2024, analysts project that the retail cannabidiol hemp market will be worth up to $11.3 billion. The legal U.S. cannabis market, however, is on track to be worth $35 billion by 2025.
The bigger problem for Aurora is that it needs to be self-sufficient, and it's struggling to do that right now. In the three months ending Sep. 30, the company burned through CA$108.5 million -- which is up from CA$94.9 million a year ago. In order to support its cash balance, the company issued shares which brought in CA$114.3 million during the period. For investors, that's a concern because if the company continually needs to issue shares, that's going to dilute their ownership and drive down the stock price. Despite the recent rally, Aurora's stock is still down 60% this year, while the Horizons Marijuana Life Sciences ETF is up 2%, and Canopy Growth's value has risen by 35%.
If Aurora pursues an aggressive growth strategy in the U.S. should that market open up, it would increase its need for cash and exacerbate an already challenging financial situation.
Canopy is the better stock, both now and in the future
These two cannabis companies were once fierce rivals, and it used to be unclear which one would dominate the industry. Today, the picture is much clearer as the partnerships that Canopy Growth has in place have put the company in a much stronger position. Constellation has invested too much into Canopy Growth to not support it if it needs help, which gives the pot stock a lot more stability than its rival. And with Acreage, it's ready to move into the U.S. market at a moment's notice. Aurora, meanwhile, has to significantly improve its financials not only so it can stop relying on new share issues to raise money, but to be able to fund new growth initiatives, such as U.S. expansion.
Canopy Growth is the safer buy today, and it's also in a better position to grow over many years. Investors who buy shares should plan to hold on for the long-run.
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 – 11 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 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 stocks of Canadian cannabis giants Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) got big boosts, rising 51% and 154%, respectively, since November. Investors are also bullish on Joe Biden, the Democrat who won the presidential election and who has expressed a more favorable view on marijuana than President Donald Trump. Alcohol giant Constellation Brands (NYSE: STZ) has a 38.6% stake in the Canadian pot producer, which can not just aid Canopy Growth from a financial and distribution perspective, but has also allowed the two companies to collaborate on beverages. | Even stocks of Canadian cannabis giants Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) got big boosts, rising 51% and 154%, respectively, since November. The Horizons Marijuana Life Sciences ETF is up more than 45% since the start of last month, significantly outperforming the S&P 500, which is up just 13% during that time. Canopy Growth's big advantage: Partnerships Ontario-based Canopy Growth has a big advantage over many of its peers because if it needed to enter the U.S. market, it wouldn't be starting from square one. | Even stocks of Canadian cannabis giants Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) got big boosts, rising 51% and 154%, respectively, since November. Canopy Growth's big advantage: Partnerships Ontario-based Canopy Growth has a big advantage over many of its peers because if it needed to enter the U.S. market, it wouldn't be starting from square one. But Aurora is also eyeing the U.S. market, and in the spring, it acquired hemp company Reliva, which operates in the U.S. Hemp is already legal federally in the U.S. and while the acquisition could potentially help Aurora's eventual move into American markets, it's not a multistate operator like Acreage, which gives Canopy the upper hand in that respect. | Even stocks of Canadian cannabis giants Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) got big boosts, rising 51% and 154%, respectively, since November. That's why the Canadian cannabis company is in an excellent position to enter the U.S. marijuana market once it's legal to do so. But Aurora is also eyeing the U.S. market, and in the spring, it acquired hemp company Reliva, which operates in the U.S. Hemp is already legal federally in the U.S. and while the acquisition could potentially help Aurora's eventual move into American markets, it's not a multistate operator like Acreage, which gives Canopy the upper hand in that respect. |
37042.0 | 2020-12-10 00:00:00 UTC | Is Cresco Labs Stock a Buy? | ACB | https://www.nasdaq.com/articles/is-cresco-labs-stock-a-buy-2020-12-10 | nan | nan | What's better than selling a copious amount of marijuana? Selling an even more copious amount of marijuana, more efficiently than before, and to an everwidening audience. Assuming you're a cannabis cultivation company, that is.
Currently, marijuana wholesaler Cresco Labs (OTC: CRLBF) is living the dream. But, despite its favorable growth trajectory, its appeal to investors may not be as sky-high as it is to its customers. Competition within the industry is rising, and Cresco still isn't listed on any U.S. stock exchange. Likewise, for all its strengths, it still hasn't proven that its business model is viable in the long term. Let's examine where the company is at right now to see if these issues should cause investors to steer clear.
Image source: Getty Images.
Why you should buy it
In my mind, there are several strong reasons to buy this stock. First, Cresco's quarterly revenue is growing explosively at a rate of 326.6% year over year. Growth like that could ebb over the next year and easily remain in the triple-digits.
It's growing so rapidly because it's already the largest cannabis wholesaler in the American market. The company derives 59% of its revenue from wholesale transactions, which is significantly more than its primary competitors like Curaleaf. As the rest of the industry expands market penetration in the form of retail locations, Cresco keeps pace by benefiting from economies of scale. Management is committed to maintaining its lead in wholesaling in the long term because that's where they think margins will be the highest. It's clear that the strategy is working -- so far.
Speaking of margins, management has also pushed forward with selling, general, and administrative (SG&A) cost cuts and other helpful improvements. In particular, its cultivation facilities in Illinois and Pennsylvania are becoming more efficient quite rapidly. Management credits the efficiency improvements at these facilities in particular for an improvement in operational gross profit as a percentage of revenue coming in at 53% in the quarter, compared to 47% in the previous quarter.
Most importantly, thanks to falling costs and rising revenue, the company's most recent adjusted earnings before interest, taxes, amortization, and depreciation (EBITDA) of $46.4 million are the largest it has ever reported. Its $17.8 million in cash flow from operations is also a company record.
Why it might be better to wait
Even though its core financial metrics are improving rapidly, Cresco is still unprofitable, with a negative profit margin of 17.88%. But compared to companies like Aurora Cannabis, it's much closer to consistently profitable operations. Unfortunately, management hasn't provided any explicit estimates for when profitability might occur. My estimate, based on the last few quarters of data, is that it might be profitable by the end of 2021, which is a bit far in the future for conservative investors looking to make a decision today.
Furthermore, Cresco competes in the medicinal and recreational cannabis markets, but its portfolio of adult use brands is far larger than its medicinal holdings. As the marijuana industry experiences rising business competition from a wave of legalization in the U.S., it may not be able to defend its medicinal market share against others as a result. This is especially concerning because it enjoys a higher price point with its Remedi medicinal brand in comparison to its adult-use brands like Good News and its newest brand, High Supply. If the price is right for medicinal cannabis, why does management continue to advance with lower-price and less-differentiated brands?
The verdict
That last question isn't a dealbreaker for me. The overall strategy -- wholesaling and focusing on the recreational market -- appears to be working. Management has shown that it is effective at lowering costs, increasing sales revenue, and scaling production capacity keenly with demand. As far as cannabis stocks go, Cresco is a winner, even if it hasn't proven that its operations are sustainable in the long run yet. I'd be comfortable with buying this stock today, and I expect that waiting a year would make the decision even easier.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cresco Labs 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. | Speaking of margins, management has also pushed forward with selling, general, and administrative (SG&A) cost cuts and other helpful improvements. Most importantly, thanks to falling costs and rising revenue, the company's most recent adjusted earnings before interest, taxes, amortization, and depreciation (EBITDA) of $46.4 million are the largest it has ever reported. As the marijuana industry experiences rising business competition from a wave of legalization in the U.S., it may not be able to defend its medicinal market share against others as a result. | Currently, marijuana wholesaler Cresco Labs (OTC: CRLBF) is living the dream. First, Cresco's quarterly revenue is growing explosively at a rate of 326.6% year over year. As the marijuana industry experiences rising business competition from a wave of legalization in the U.S., it may not be able to defend its medicinal market share against others as a result. | Management credits the efficiency improvements at these facilities in particular for an improvement in operational gross profit as a percentage of revenue coming in at 53% in the quarter, compared to 47% in the previous quarter. As far as cannabis stocks go, Cresco is a winner, even if it hasn't proven that its operations are sustainable in the long run yet. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Cresco Labs Inc. wasn't one of them! | It's growing so rapidly because it's already the largest cannabis wholesaler in the American market. Furthermore, Cresco competes in the medicinal and recreational cannabis markets, but its portfolio of adult use brands is far larger than its medicinal holdings. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Cresco Labs Inc. wasn't one of them! |
37043.0 | 2020-12-10 00:00:00 UTC | Where Will Aurora Cannabis Be in 1 Year? | ACB | https://www.nasdaq.com/articles/where-will-aurora-cannabis-be-in-1-year-2020-12-10 | nan | nan | Would you want to invest in a stock that lost more than 80% of its value over the last three years? Probably not, but you might be willing to hedge your bets if it started to make a turnaround.
As you might have guessed, the stock I'm referring to is Aurora Cannabis (NYSE: ACB). While its turnaround is anything but guaranteed, it has new management, a plan to transform its business, and -- as a green wave slowly sweeps the U.S. -- new markets to enter. One year from now, the company might be on the road to healthy finances and profitable growth. There's just one problem: I could have said the exact same thing last year or the year before, and I would have been wrong.
Image source: Getty Images.
Cutting costs has yet to provide transformative change
Aurora Cannabis has two things in its favor: Revenue leadership in the Canadian medicinal cannabis market, and rapid growth in its international medicinal segments. Its gross margin for medicinal sales was 59% in its first quarter of the 2021 fiscal year, which is significantly higher than the 38% margin of its recreational cannabis sales. If it can continue to maintain its advantages in the medicinal market, there won't be as much pressure on its bottom line. But there are signs of trouble. Its medicinal margin dropped by 8% while the recreational margin increased by 3% in the most recent quarter.
It's no secret that the company is working hard to turn the corner. Cost-cutting is proceeding aggressively, building on prior efforts to shut down or sell excessive and expensive cultivation facilities. Selling, general, and administrative (SG&A) expenses dropped by 25% last quarter, and research and development (R&D) expenses plummeted by 66%. Look for these improvements to continue over the next year, albeit at a slower pace as the easy cuts conclude.
Profitable operations will probably be an ongoing struggle for Aurora Cannabis in 2021. Last quarter, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved 64% to reach a loss of $10.5 million. That's assuming you exclude the costs of implementing its business transformation plan and paying out one-off expenses like severance, however. Without these concessions, the company lost $57.9 million, a deterioration of 79% more than the prior quarter and also significantly worse than the losses of $29.6 million in the quarter before last. It's hard to argue that profitability is right around the corner when losses seem to keep growing larger and larger if you don't use accounting loopholes.
Will progress gain momentum, or sputter out?
It looks like trimming costs isn't going to be enough to make Aurora profitable by next year. Thankfully, it's also transitioning its recreational cannabis strategy to prioritize "Cannabis 2.0" products like vaporizers over low-margin cannabis flowers. These items command higher selling prices and also higher margins, so they'll help a great deal with overall profitability. Last quarter, the Cannabis 2.0 segment grew by 31%, paired with a 4% increase in the average net selling price per gram of cannabis. If management can keep up this growth, it'll be in significantly better shape by the end of 2021.
Of course, competitors like Canopy Growth Company and Aphria will be contesting this attempt to gain Cannabis 2.0 market share. In particular, Canopy's strategy has been to capture the cannabis beverage market, where it retains a 54% share in Canada; Aphria has also entered the beverage market with cannabis-themed beers. This is important, as Aurora blamed competition for its 3% decrease in consumer cannabis revenue last quarter. It's unclear exactly how or in which product segment it plans to beat the competition in the recreational market, so investors should be on the lookout for any clues from management. If in 2021 its difficulties in the consumer segment continue or worsen, the company's future will be in even more severe jeopardy.
On the other hand, if Aurora's plan to switch to higher-margin recreational use products succeeds and its revenue growth accelerates, it'll be on the road to profitability. If it's fantastically successful, it might even reach its first profitable quarter by the end of 2021.
But should you invest in Aurora Cannabis? Not yet. Wait until its adjusted earnings losses have shrunk so much that they're on the verge of becoming gains. At that point, which may well be by the end of next year, the company will have established its turnaround firmly. Until then, this stock is a risky gamble.
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 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 you might have guessed, the stock I'm referring to is Aurora Cannabis (NYSE: ACB). It's unclear exactly how or in which product segment it plans to beat the competition in the recreational market, so investors should be on the lookout for any clues from management. On the other hand, if Aurora's plan to switch to higher-margin recreational use products succeeds and its revenue growth accelerates, it'll be on the road to profitability. | As you might have guessed, the stock I'm referring to is Aurora Cannabis (NYSE: ACB). Cutting costs has yet to provide transformative change Aurora Cannabis has two things in its favor: Revenue leadership in the Canadian medicinal cannabis market, and rapid growth in its international medicinal segments. Its medicinal margin dropped by 8% while the recreational margin increased by 3% in the most recent quarter. | As you might have guessed, the stock I'm referring to is Aurora Cannabis (NYSE: ACB). Cutting costs has yet to provide transformative change Aurora Cannabis has two things in its favor: Revenue leadership in the Canadian medicinal cannabis market, and rapid growth in its international medicinal segments. Its gross margin for medicinal sales was 59% in its first quarter of the 2021 fiscal year, which is significantly higher than the 38% margin of its recreational cannabis sales. | As you might have guessed, the stock I'm referring to is Aurora Cannabis (NYSE: ACB). Would you want to invest in a stock that lost more than 80% of its value over the last three years? Cutting costs has yet to provide transformative change Aurora Cannabis has two things in its favor: Revenue leadership in the Canadian medicinal cannabis market, and rapid growth in its international medicinal segments. |
37044.0 | 2020-12-09 00:00:00 UTC | CANADA STOCKS - TSX falls 0.37% to 17,574.29 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-0.37-to-17574.29-2020-12-09 | nan | nan | * The Toronto Stock Exchange's TSX falls 0.37 percent to 17,574.29
* Leading the index were Whitecap Resources Inc , up 4.8%, Linamar Corp LNR.TO, up 4.7%, and George Weston Ltd WN.TO, higher by 3.8%.
* Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 11.4%, Ballard Power Systems Inc BLDP.TO, down 6.8%, and Aurora Cannabis Inc ACB.TO, lower by 6.5%.
* On the TSX 78 issues rose and 141 fell as a 0.6-to-1 ratio favored decliners. There were 11 new highs and no new lows, with total volume of 199.9 million shares.
* The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Air Canada AC.TO and Crescent Point Energy Corp CPG.TO.
* The TSX's energy group .SPTTEN fell 0.35 points, or 0.4%, while the financials sector .SPTTFS climbed 1.34 points, or 0.4%.
* West Texas Intermediate crude futures CLc1 rose 0.02%, or $0.01, to $45.61 a barrel. Brent crude LCOc1 rose 0.23%, or $0.11, to $48.95 O/R
* The TSX is up 3% for the year.
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 Trillium Therapeutics Inc TRIL.TO, down 11.4%, Ballard Power Systems Inc BLDP.TO, down 6.8%, and Aurora Cannabis Inc ACB.TO, lower by 6.5%. * The Toronto Stock Exchange's TSX falls 0.37 percent to 17,574.29 * Leading the index were Whitecap Resources Inc , up 4.8%, Linamar Corp LNR.TO, up 4.7%, and George Weston Ltd WN.TO, higher by 3.8%. * On the TSX 78 issues rose and 141 fell as a 0.6-to-1 ratio favored decliners. | * Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 11.4%, Ballard Power Systems Inc BLDP.TO, down 6.8%, and Aurora Cannabis Inc ACB.TO, lower by 6.5%. * On the TSX 78 issues rose and 141 fell as a 0.6-to-1 ratio favored decliners. * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Air Canada AC.TO and Crescent Point Energy Corp CPG.TO. | * Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 11.4%, Ballard Power Systems Inc BLDP.TO, down 6.8%, and Aurora Cannabis Inc ACB.TO, lower by 6.5%. * The Toronto Stock Exchange's TSX falls 0.37 percent to 17,574.29 * Leading the index were Whitecap Resources Inc , up 4.8%, Linamar Corp LNR.TO, up 4.7%, and George Weston Ltd WN.TO, higher by 3.8%. * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Air Canada AC.TO and Crescent Point Energy Corp CPG.TO. | * Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 11.4%, Ballard Power Systems Inc BLDP.TO, down 6.8%, and Aurora Cannabis Inc ACB.TO, lower by 6.5%. * The Toronto Stock Exchange's TSX falls 0.37 percent to 17,574.29 * Leading the index were Whitecap Resources Inc , up 4.8%, Linamar Corp LNR.TO, up 4.7%, and George Weston Ltd WN.TO, higher by 3.8%. * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Air Canada AC.TO and Crescent Point Energy Corp CPG.TO. |
37045.0 | 2020-12-09 00:00:00 UTC | The Industry Billionaires Bought Hand Over Fist in Q3 | ACB | https://www.nasdaq.com/articles/the-industry-billionaires-bought-hand-over-fist-in-q3-2020-12-09 | nan | nan | Between the U.S. election and multiple drug companies reporting coronavirus disease 2019 (COVID-19) vaccine efficacy results in November, a lot of otherwise important news was lost in the shuffle. Among these news events was the quarterly filing of Form 13Fs with the Securities and Exchange Commission.
In simple terms, a 13F provides an intricate look at what money managers with over $100 million in assets under management were holding as of the end of the most recent quarter (in this case, Sept. 30). A 13F also allows investors to decipher what stocks successful money managers have been buying and selling. This can help professional and retail investors spot trends in the market that might not otherwise be obvious.
Image source: Getty Images.
Successful money managers can't stop buying into this surprising industry
In the third quarter, many of the industries and trends you'd expect to be hot, like cloud computing, cybersecurity, and healthcare, remained top targets by money managers. But there was one surprising industry that saw incredible purchasing activity from billionaires and aggregate 13F filers: Canadian marijuana stocks.
Here's a quick rundown of the increase or decrease in aggregate ownership by 13F filers from the sequential second quarter (declines noted by parenthesis):
Aurora Cannabis (NYSE: ACB): 27.2%
Canopy Growth (NASDAQ: CGC): 9.6%
Tilray (NASDAQ: TLRY): 26%
HEXO (NYSE: HEXO): 32.8%
Sundial Growers (NASDAQ: SNDL): 104.4%
OrganiGram Holdings: 22.7%
Aphria: (5.6%)
Cronos Group: (2.3%)
Aurora Cannabis, the most popular pot stock among millennial investors, saw Jim Simons' Renaissance Technologies open a 447,378-share position, while Ken Griffin's Citadel Advisors added 418,994 shares to its existing stake. Meanwhile, Jeff Yass' Susquehanna International tripled its position in Canopy Growth and substantially upped its stake in Tilray. Even Israel Englander's Millennium Management got in on the action with a nearly 52,000-share purchase of Sundial Growers.
Image source: Getty Images.
Here's why Canadian pot stocks are suddenly the apple of Wall Street's eye
Why have billionaire money managers suddenly changed their tune on what's otherwise been an awful place for investors to park their money over the past 21 months?
One possibility is that we're finally seeing Canadian regulators work through some of their most pressing issues. For example, Canada's most-populous province, Ontario, had been using a lottery system to assign dispensary licenses through the end of 2019. At the one-year anniversary of adult-use cannabis sales being legal (Oct. 17, 2019), only 24 retail stores were open in a province that could probably house 1,000 dispensaries. The new process, which simply involves vetting applications, is moving along much faster, with over 150 dispensary licenses assigned, as of September. This should relieve supply bottlenecks and allow for sales to pick up in a big way in 2021.
These Canadian pot stocks have also gotten serious about reducing their costs and aligning production to meet consumer demand. Aurora Cannabis has shuttered five of its smaller cultivation farms, halted construction on two its largest projects, and sold off a 1-million-square-foot greenhouse. There's also Canopy Growth, which permanently closed 3 million square feet of licensed indoor cultivation in British Columbia.
Beyond just operating costs, most management teams are tightening their belts when it comes to share-based compensation. This was a serious problem for Canopy Growth under Bruce Linton, but it's not been nearly as big of an issue since former Constellation Brands CFO David Klein took the reins in January.
Finally, I'd opine that billionaires are counting on increasing uptake of cannabis derivatives in 2021. Derivatives are alternative consumption options like vapes, edibles, infused beverages, concentrates, and topicals that bear considerably higher margins than dried cannabis flower. Similar to the initial launch of dried flower, regulatory and supply issues dominated the landscape. By next year, many of these supply issues for derivatives should be resolved.
Image source: Getty Images.
Billionaire money managers might be throwing away money
While there's no question that cannabis is going to be one of the fastest-growing industries this decade, I'm highly skeptical of billionaire money managers putting their money to work in Canadian marijuana stocks.
For starters, Canadian pot stocks have been notorious for secondary stock offerings and at-the-market share sales that destroy shareholder value. Aurora Cannabis' share count has skyrocketed more than 11,800% over the past six years. We've also seen Sundial Growers and HEXO issuing stock on a regular basis to raise capital. With the industry still working out some kinks, additional cash raises are likely, which is bad news for investors.
Furthermore, the entire industry has been losing money hand over fist. There have been massive impairment charges over the past fiscal year for Aurora Cannabis, HEXO, and Tilray that were tied to overzealous and overpriced acquisitions. But even beyond one-time charges, operating expenses have been far too high considering the challenges the industry has faced.
Another clear-cut issue is that Canadian consumers are buying up valued-based flower products. Canadian regulators assumed that placing a relatively low 10% tax on legal weed products wouldn't deter consumption. However, illicit growers are consistently undercutting licensed producers and retailers on price. Canadian pot stocks are fighting back with value-based products, but it's crippling their margins.
It's also unclear when Canadian weed stocks might have an opportunity to enter the lucrative U.S. market. President-elect Joe Biden's plan to decriminalize and reschedule marijuana at the federal level isn't going to be enough to allow Canadian marijuana stocks to enter the U.S. cannabis industry. Without Democrats in clear control of the U.S. Senate, it's unlikely we see the green carpet rolled out anytime soon.
If you ask me, billionaire money managers look to be throwing their investors' money away by placing their faith in Canadian pot stocks.
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 – 11 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 and OrganiGram Holdings. The Motley Fool recommends HEXO. 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 a quick rundown of the increase or decrease in aggregate ownership by 13F filers from the sequential second quarter (declines noted by parenthesis): Aurora Cannabis (NYSE: ACB): 27.2% Canopy Growth (NASDAQ: CGC): 9.6% Tilray (NASDAQ: TLRY): 26% Between the U.S. election and multiple drug companies reporting coronavirus disease 2019 (COVID-19) vaccine efficacy results in November, a lot of otherwise important news was lost in the shuffle. Sundial Growers (NASDAQ: SNDL): 104.4% OrganiGram Holdings: 22.7% Aphria: (5.6%) Cronos Group: (2.3%) Aurora Cannabis, the most popular pot stock among millennial investors, saw Jim Simons' Renaissance Technologies open a 447,378-share position, while Ken Griffin's Citadel Advisors added 418,994 shares to its existing stake. | Here's a quick rundown of the increase or decrease in aggregate ownership by 13F filers from the sequential second quarter (declines noted by parenthesis): Aurora Cannabis (NYSE: ACB): 27.2% Canopy Growth (NASDAQ: CGC): 9.6% Tilray (NASDAQ: TLRY): 26% But there was one surprising industry that saw incredible purchasing activity from billionaires and aggregate 13F filers: Canadian marijuana stocks. The Motley Fool owns shares of and recommends Constellation Brands and OrganiGram Holdings. | Here's a quick rundown of the increase or decrease in aggregate ownership by 13F filers from the sequential second quarter (declines noted by parenthesis): Aurora Cannabis (NYSE: ACB): 27.2% Canopy Growth (NASDAQ: CGC): 9.6% Tilray (NASDAQ: TLRY): 26% Here's why Canadian pot stocks are suddenly the apple of Wall Street's eye Why have billionaire money managers suddenly changed their tune on what's otherwise been an awful place for investors to park their money over the past 21 months? Billionaire money managers might be throwing away money While there's no question that cannabis is going to be one of the fastest-growing industries this decade, I'm highly skeptical of billionaire money managers putting their money to work in Canadian marijuana stocks. | Here's a quick rundown of the increase or decrease in aggregate ownership by 13F filers from the sequential second quarter (declines noted by parenthesis): Aurora Cannabis (NYSE: ACB): 27.2% Canopy Growth (NASDAQ: CGC): 9.6% Tilray (NASDAQ: TLRY): 26% Billionaire money managers might be throwing away money While there's no question that cannabis is going to be one of the fastest-growing industries this decade, I'm highly skeptical of billionaire money managers putting their money to work in Canadian marijuana stocks. Aurora Cannabis' share count has skyrocketed more than 11,800% over the past six years. |
37046.0 | 2020-12-08 00:00:00 UTC | CANADA STOCKS - TSX rises 0.29% to 17,634.14 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.29-to-17634.14-2020-12-08 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.29 percent to 17,634.14
* Leading the index were Ballard Power Systems Inc , up 8.2%, Crescent Point Energy Corp CPG.TO, up 6.9%, and BlackBerry Ltd BB.TO, higher by 3.8%.
* Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 10.7%, Hudbay Minerals Inc HBM.TO, down 4.5%, and Real Matters Inc REAL.TO, lower by 4.4%.
* On the TSX 105 issues rose and 109 fell as a 1-to-1 ratio favored decliners. There were 8 new highs and no new lows, with total volume of 162.4 million shares.
* The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Bce Inc BCE.TO and Aurora Cannabis Inc ACB.TO.
* The TSX's energy group .SPTTEN rose 0.76 points, or 0.8%, while the financials sector .SPTTFS climbed 0.84 points, or 0.3%.
* West Texas Intermediate crude futures CLc1 fell 0.2%, or $0.09, to $45.67 a barrel. Brent crude LCOc1 rose 0.25%, or $0.12, to $48.91 O/R
* The TSX is up 3.3% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Bce Inc BCE.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.29 percent to 17,634.14 * Leading the index were Ballard Power Systems Inc , up 8.2%, Crescent Point Energy Corp CPG.TO, up 6.9%, and BlackBerry Ltd BB.TO, higher by 3.8%. * Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 10.7%, Hudbay Minerals Inc HBM.TO, down 4.5%, and Real Matters Inc REAL.TO, lower by 4.4%. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Bce Inc BCE.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.29 percent to 17,634.14 * Leading the index were Ballard Power Systems Inc , up 8.2%, Crescent Point Energy Corp CPG.TO, up 6.9%, and BlackBerry Ltd BB.TO, higher by 3.8%. * On the TSX 105 issues rose and 109 fell as a 1-to-1 ratio favored decliners. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Bce Inc BCE.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.29 percent to 17,634.14 * Leading the index were Ballard Power Systems Inc , up 8.2%, Crescent Point Energy Corp CPG.TO, up 6.9%, and BlackBerry Ltd BB.TO, higher by 3.8%. * The TSX's energy group .SPTTEN rose 0.76 points, or 0.8%, while the financials sector .SPTTFS climbed 0.84 points, or 0.3%. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Bce Inc BCE.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.29 percent to 17,634.14 * Leading the index were Ballard Power Systems Inc , up 8.2%, Crescent Point Energy Corp CPG.TO, up 6.9%, and BlackBerry Ltd BB.TO, higher by 3.8%. * Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 10.7%, Hudbay Minerals Inc HBM.TO, down 4.5%, and Real Matters Inc REAL.TO, lower by 4.4%. |
37047.0 | 2020-12-07 00:00:00 UTC | CANADA STOCKS - TSX rises 0.24% to 17,562.87 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.24-to-17562.87-2020-12-07 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.24 percent to 17,562.87
* Leading the index were OceanaGold Corp , up 31.3%, Cameco Corp CCO.TO, up 10.2%, and Kinross Gold Corp K.TO, higher by 7.4%.
* Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 10.4%, First Quantum Minerals Ltd FM.TO, down 5.8%, and Tourmaline Oil Corp TOU.TO, lower by 5.2%.
* On the TSX 97 issues rose and 122 fell as a 0.8-to-1 ratio favored decliners. There were 8 new highs and no new lows, with total volume of 198.3 million shares.
* The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Blackberry Ltd BB.TO and Aurora Cannabis Inc ACB.TO.
* The TSX's energy group .SPTTEN fell 0.97 points, or 1.0%, while the financials sector .SPTTFS slipped 1.24 points, or 0.4%.
* West Texas Intermediate crude futures CLc1 fell 1.15%, or $0.53, to $45.73 a barrel. Brent crude LCOc1 fell 1.02%, or $0.5, to $48.75 O/R
* The TSX is up 2.9% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Blackberry Ltd BB.TO and Aurora Cannabis Inc ACB.TO. * Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 10.4%, First Quantum Minerals Ltd FM.TO, down 5.8%, and Tourmaline Oil Corp TOU.TO, lower by 5.2%. * On the TSX 97 issues rose and 122 fell as a 0.8-to-1 ratio favored decliners. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Blackberry Ltd BB.TO and Aurora Cannabis Inc ACB.TO. * The TSX's energy group .SPTTEN fell 0.97 points, or 1.0%, while the financials sector .SPTTFS slipped 1.24 points, or 0.4%. Brent crude LCOc1 fell 1.02%, or $0.5, to $48.75 O/R * The TSX is up 2.9% for the year. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Blackberry Ltd BB.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.24 percent to 17,562.87 * Leading the index were OceanaGold Corp , up 31.3%, Cameco Corp CCO.TO, up 10.2%, and Kinross Gold Corp K.TO, higher by 7.4%. * The TSX's energy group .SPTTEN fell 0.97 points, or 1.0%, while the financials sector .SPTTFS slipped 1.24 points, or 0.4%. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Blackberry Ltd BB.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX rises 0.24 percent to 17,562.87 * Leading the index were OceanaGold Corp , up 31.3%, Cameco Corp CCO.TO, up 10.2%, and Kinross Gold Corp K.TO, higher by 7.4%. * Lagging shares were Trillium Therapeutics Inc TRIL.TO, down 10.4%, First Quantum Minerals Ltd FM.TO, down 5.8%, and Tourmaline Oil Corp TOU.TO, lower by 5.2%. |
37048.0 | 2020-12-07 00:00:00 UTC | Why Aurora Cannabis, HEXO, and Sundial Growers Are Moving Down Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-hexo-and-sundial-growers-are-moving-down-today-2020-12-07 | nan | nan | What happened
Marijuana stocks had been soaring since the U.S. election, but the last five days have marked a reversal. After an earlier drop of 10%, shares of Aurora Cannabis (NYSE: ACB) were down 5% as of 1:45 p.m. EST. HEXO (NYSE: HEXO) shares are down 9%, and Sundial Growers (NASDAQ: SNDL) 18% at the same time.
The stocks of the three companies have risen between 60% and 200% just since the election. But each is down double digits in the past week as well as since the start of 2020.
So what
The surge hasn't compensated for what's been a rough year for cannabis stocks. And there are fundamental reasons why shares in companies like Aurora are down sharply this year.
Image source: Getty Images.
Aurora spent much of this year restructuring its business and raising capital as it incurred growing losses. The changes included cutting jobs, consolidating production, and selling additional stock to raise money. Even with its pop since the election, shares are down about 60% since the start of the year.
The only real news today came from HEXO. In late October the company proposed a reverse stock split to enable the stock to remain in compliance with the minimum standards of the New York Stock Exchange. Today, the company announced it plans to revise the proposed 8-for-1 split down to 4-for-1, since its shares have risen by 36% since the original announcement.
Now what
A reverse stock split doesn't change the business fundamentals of a company. The need for one is typically not a good sign, as it is essentially due to a dropping share price. So HEXO changing the share consolidation plan doesn't really indicate anything other than acknowledging the recent jump in share price.
Shares of HEXO, as well as Aurora and Sundial, have moved since the election, when five states passed ballot initiatives concerning the legalization of marijuana. Another somewhat positive development came last week when a United Nations commission voted to remove medical cannabis from the list of Schedule IV drugs created at the 1961 Single Convention on Narcotic Drugs. That vote doesn't immediately change any legislation, but it is symbolic as it removes it from the highest level of a group of dangerous drugs, which includes heroin.
Investors need to continue to monitor regulatory developments to predict the future potential of these stocks. Just as importantly, the business fundamentals will determine if they can even stay viable until a potential expansion of the market comes through legislation. In the meantime, investors should expect a continued high amount of volatility.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After an earlier drop of 10%, shares of Aurora Cannabis (NYSE: ACB) were down 5% as of 1:45 p.m. EST. The changes included cutting jobs, consolidating production, and selling additional stock to raise money. Shares of HEXO, as well as Aurora and Sundial, have moved since the election, when five states passed ballot initiatives concerning the legalization of marijuana. | After an earlier drop of 10%, shares of Aurora Cannabis (NYSE: ACB) were down 5% as of 1:45 p.m. EST. HEXO (NYSE: HEXO) shares are down 9%, and Sundial Growers (NASDAQ: SNDL) 18% at the same time. Now what A reverse stock split doesn't change the business fundamentals of a company. | After an earlier drop of 10%, shares of Aurora Cannabis (NYSE: ACB) were down 5% as of 1:45 p.m. EST. In late October the company proposed a reverse stock split to enable the stock to remain in compliance with the minimum standards of the New York Stock Exchange. * 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! | After an earlier drop of 10%, shares of Aurora Cannabis (NYSE: ACB) were down 5% as of 1:45 p.m. EST. Now what A reverse stock split doesn't change the business fundamentals of a company. 10 stocks we like better than Aurora Cannabis Inc. |
37049.0 | 2020-12-07 00:00:00 UTC | 7 Medical Marijuana Stocks for a Healthcare Revolution | ACB | https://www.nasdaq.com/articles/7-medical-marijuana-stocks-for-a-healthcare-revolution-2020-12-07 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For the past few years, the cannabis sector has been mostly in a bear market. Lately, though, things have been picking up. The supply-demand dynamics have gotten better in Canada and the political situation is turning more favorable in the United States. There are also encouraging developments in healthcare applications for cannabis. In fact, there are some very interesting medical marijuana stocks available right now.
One reason for this is that the academic research surrounding marijuana continues to show promise. It looks like cannabis has a wide range of applications, from treating diseases to helping with pain management.
Next, the medical sector is also less prone to competitive pressures, especially when compared to the consumer market. That’s because the regulations are a barrier to entry. Likewise, the considerable time spent researching new treatments makes it hard for competitors to break into the industry.
7 Auto Stocks to Watch Going Into 2021
So, what are some of the best medical marijuana stocks to consider right now? Well, let’s take a look:
GW Pharmaceuticals (NASDAQ:GWPH)
Charlotte’s Web (OTCMKTS:CWBHF)
AbbVie (NYSE:ABBV)
Aurora Cannabis (NYSE:ACB)
Cronos Group (NASDAQ:CRON)
Harvest Health & Recreation (OTCMKTS:HRVSF)
Aleafia Health (OTCMKTS:ALEAF)
Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH)
Source: Yarygin / Shutterstock.com
When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. The company got its start back in 1998. Since then, it has been a major innovator.
However, when the company went public in 2013, there was not much interest. But this was temporary. Soon enough, GWPH stock become red hot.
As of now, the company’s lead cannabinoid product is Epidiolex, which targets seizures caused by Lennox-Gastaut syndrome, Dravet syndrome and other conditions. The drug hit the markets in late 2018. GWPH has since been seeking regulatory approval for other indications like Rett syndrome, although these efforts have been put on hold due to Covid-19.
In the latest quarter, revenues shot up by 51% to $137 million, up from $91 million the previous year. Additionally, net loss was $12.2 million, compared to $13.8 million in 2019. The company also announced its pivotal Phase 3 program for nabiximols, which is being developed for multiple sclerosis (MS). If approved, this will certainly be a nice driver for growth in the coming years.
Charlotte’s Web (CWBHF)
CWBHF) branded hemp product" width="300" height="169">
Source: Kevin McGovern / Shutterstock.com
Next on my list of medical marijuana stocks is Charlotte’s Web, a company that develops wellness products with CBD oil (cannabidiol) derived from hemp. CWBHF is vertically integrated so as to provide better control over the quality. As for manufacturing, it is FDA-registered and received NCF International’s “Good Manufacturing Practices” mark of approval.
The company also has wide distribution. There are about 22,000 retail locations that carry its products, including Harmony Hemp and CBD Clinic.
Even though the pandemic has weighed on growth, Charlotte’s Web has been offsetting some of this with aggressive investments in ecommerce and direct-to-consumer selling. This business jumped by nearly 28% year-over-year (YOY) in the latest quarter.
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Finally, with the election of Joe Biden, CWBHF stock might get a boost on the regulatory front as well. That is, there may be more opportunity to sell CBD products because of the new administration.
AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Many of the medical marijuana stocks out there are relatively small. That often means that the volatility can be severe.
So, if you are looking for a more stable way to get exposure to the burgeoning cannabis market, you should consider AbbVie. Of course, ABBV is a traditional pharma company with treatments that span oncology, immunology, neuroscience and so on. But the company also has Marinol.
Marinol is an FDA-approved drug that uses a dronabinol, a synthetic substitute for THC (tetrahydrocannabinol). THC is a natural part of the marijuana plant which has proven effective to treat vomiting from chemotherapy as well as loss of appetite in AIDS patients.
Now, this drug is not a big part of ABBV stock’s business. But then again, the experience with this type of medical innovation could lead to others, especially as restrictions lift.
Aurora Cannabis (ACB)
ACB) logo in green" width="300" height="169">
Source: ElRoi / Shutterstock.com
Aurora Cannabis has a substantial medical business, with close to 90,000 patients. The company also maintains a solid global presence, such as in countries like Germany.
Not long ago, though, the prospects for ACB stock looked bleak. The company was running low on cash and the overall business was lagging.
Yet, with the recent bull move in medical marijuana stocks, Aurora got aggressive with its fundraising. Soon enough, it was able to raise a cool $150 million.
The underlying business is also showing signs of improvement. In fact, in the recent U.S. election, there were various states that passed favorable cannabis laws. This should help increase sales next year.
7 Growth Stocks Flying Under the Radar
Additionally, Miguel Martin — the company’s new CEO — is a proven leader in the consumer products space. Martin’s focus on discipline should help propel Aurora to profitability. In the latestearnings call he noted, “We intend to demonstrate that Aurora can be a profitable, growth-oriented leader in the global cannabinoid market.”
Cronos (CRON)
Source: Shutterstock
Cronos is one of the best-capitalized medical marijuana stocks out there right now. As it stands, the company has roughly $1.1 billion in cash and equivalents in the bank. And when you exclude this from the market capitalization, the value of the remaining equity is only about $1.8 billion. That actually makes CRON stock one of the more interesting value plays in the cannabis sector.
Admittedly, a large part of the business does come from the consumer segment. Note that the company’s largest equity holder is Altria (NYSE:MO), which has been a key strategic partner.
But Cronos’ medical business is also important. The company has a line of wellness and health products under its PeaceNaturals brand. It also has a variety of CBD topicals and injectables, like Lord Jones.
Finally, Cronos has been ramping up its partnerships in the medical area. For instance, the company made a notable deal with Gingko Bioworks, an innovator in biological manufacturing of cannabis strains. Many of the products that come out of this partnership will prove quite effective for medical use.
Harvest Health & Recreation (HRVSF)
Source: Shutterstock
Harvest Health & Recreation is a vertically integrated cannabis company, with 38 retail locations and 11 cultivation and processing facilities. It is also one of the largest operators in Arizona, one of the larger markets for medical cannabis. In other words, Harvest Health & Recreation has extensive experience selling medical marijuana and dealing with state regulations.
What’s more, Arizona voters just passed a ballot measure to legalize recreational marijuana during the recent election. As such, the growth prospects look good for HRVSF stock.
In the meantime, though, the company’s management has been focused on building a solid organization. Harvest Health & Recreation is adjusted EBITDA positive and is on track to generate over $225 million in revenues this year (Page 19).
7 Stocks to Sell for December
Finally, this pick of the medical marijuana stocks has a growing presence in states like Florida, Maryland and Pennsylvania — all of which have positive trends for the cannabis market.
Aleafia Health (ALEAF)
Source: Shutterstock
Last on my list of medical marijuana stocks is Aleafia Health, a nationwide network of medical clinics across Canada. In addition to its clinical reach, the company also an extensive cultivation system, supply chain, R&D capabilities and distribution facilities.
One of the keys to this company’s success has been its low-cost model. Last year, the production cost from its outdoor facilities — which meet strict regulatory requirements — was about 10 cents per gram.
Another advantage for ALEAF stock is its strong financial position. The company possesses about $43 million in the bank and has maintained positive adjusted EBITDA for three of the past four quarters.
Moreover, the company is gearing up for a pick up in growth. For example, it has completed major facility buildouts — like the expansion of its outdoor site — which will greatly increase capacity.
On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. Aurora Cannabis (ACB) ACB) logo in green" width="300" height="169"> Source: ElRoi / Shutterstock.com Aurora Cannabis has a substantial medical business, with close to 90,000 patients. Not long ago, though, the prospects for ACB stock looked bleak. | Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. Aurora Cannabis (ACB) ACB) logo in green" width="300" height="169"> Source: ElRoi / Shutterstock.com Aurora Cannabis has a substantial medical business, with close to 90,000 patients. Not long ago, though, the prospects for ACB stock looked bleak. | Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. Aurora Cannabis (ACB) ACB) logo in green" width="300" height="169"> Source: ElRoi / Shutterstock.com Aurora Cannabis has a substantial medical business, with close to 90,000 patients. Not long ago, though, the prospects for ACB stock looked bleak. | Well, let’s take a look: GW Pharmaceuticals (NASDAQ:GWPH) Charlotte’s Web (OTCMKTS:CWBHF) AbbVie (NYSE:ABBV) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Harvest Health & Recreation (OTCMKTS:HRVSF) Aleafia Health (OTCMKTS:ALEAF) Medical Marijuana Stocks to Buy: GW Pharmaceuticals (GWPH) Source: Yarygin / Shutterstock.com When it comes to medical marijuana stocks, GW Pharmaceuticals is one of the pioneers of the industry. Aurora Cannabis (ACB) ACB) logo in green" width="300" height="169"> Source: ElRoi / Shutterstock.com Aurora Cannabis has a substantial medical business, with close to 90,000 patients. Not long ago, though, the prospects for ACB stock looked bleak. |
37050.0 | 2020-12-07 00:00:00 UTC | CANADA STOCKS-TSX falls on energy drag, U.S.-Sino tensions | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-on-energy-drag-u.s.-sino-tensions-2020-12-07 | nan | nan | Dec 7 (Reuters) - Canada's main stock index fell on Monday, dragged down by weakness in energy stocks, while rising tensions between the United States and China sapped appetite for risky assets.
* The energy sector .SPTTEN dropped 2.4% as U.S. crude CLc1 prices were down 0.9% a barrel, while Brent crude LCOc1 lost 0.9%. O/R
* Reuters exclusively reported that the United States was preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong.
* At 09:42 a.m. ET (14:42 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 58.33 points, or 0.33%, at 17,462.64.
* Pot producer Aurora Cannabis ACB.TO fell 4.8%, the most on the TSX. The second biggest decliner was oil producer Gibson Energy Inc GEI.TO, down 4.4%.
* The financials sector .SPTTFS slipped 0.7%. The industrials sector .GSPTTIN fell 0.3%.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 1.2% as gold futures GCc1 rose 0.1% to $1,838.2 an ounce. GOL/MET/L
* On the TSX, 69 issues were higher, while 149 issues declined for a 2.16-to-1 ratio to the downside, with 28.67 million shares traded.
* The largest percentage gainers on the TSX were miner OceanaGold Corp , which jumped 25.8%, and uranium producer Cameco Corp , which rose 4.2%.
* The most heavily traded shares by volume were Suncor Energy Inc , Hexo Corp and Zenabis Global Inc .
* The TSX posted four new 52-week highs and no new lows.
* Across all Canadian issues, there were 39 new 52-week highs and five new lows, with total volume of 56.94 million shares.
(Reporting by Amal S in Bengaluru; Editing by Krishna Chandra Eluri)
((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. | * Pot producer Aurora Cannabis ACB.TO fell 4.8%, the most on the TSX. O/R * Reuters exclusively reported that the United States was preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 1.2% as gold futures GCc1 rose 0.1% to $1,838.2 an ounce. | * Pot producer Aurora Cannabis ACB.TO fell 4.8%, the most on the TSX. Dec 7 (Reuters) - Canada's main stock index fell on Monday, dragged down by weakness in energy stocks, while rising tensions between the United States and China sapped appetite for risky assets. GOL/MET/L * On the TSX, 69 issues were higher, while 149 issues declined for a 2.16-to-1 ratio to the downside, with 28.67 million shares traded. | * Pot producer Aurora Cannabis ACB.TO fell 4.8%, the most on the TSX. Dec 7 (Reuters) - Canada's main stock index fell on Monday, dragged down by weakness in energy stocks, while rising tensions between the United States and China sapped appetite for risky assets. GOL/MET/L * On the TSX, 69 issues were higher, while 149 issues declined for a 2.16-to-1 ratio to the downside, with 28.67 million shares traded. | * Pot producer Aurora Cannabis ACB.TO fell 4.8%, the most on the TSX. Dec 7 (Reuters) - Canada's main stock index fell on Monday, dragged down by weakness in energy stocks, while rising tensions between the United States and China sapped appetite for risky assets. * The largest percentage gainers on the TSX were miner OceanaGold Corp , which jumped 25.8%, and uranium producer Cameco Corp , which rose 4.2%. |
37051.0 | 2020-12-07 00:00:00 UTC | Down 58% in 2020, Is Aurora Cannabis Now a Buy? | ACB | https://www.nasdaq.com/articles/down-58-in-2020-is-aurora-cannabis-now-a-buy-2020-12-07 | nan | nan | Despite a rough year for the stock market, the green flag has been waving in full force for most North American cannabis stocks. An election night sweep in five U.S. states, coupled with Ontario finally getting its act together on the dispensary licensing front, has rolled out the green carpet for pot stocks.
Well, most pot stocks, anyway.
Aurora Cannabis (NYSE: ACB), the most popular marijuana stock in the world, has been nothing short of a train wreck in 2020. Shares of the company are off 58% year-to-date, yet have nearly tripled over the past five weeks. After a volatile and disappointing 2020 campaign, investors are left to wonder if it's finally time to buy into Aurora Cannabis.
Before casting my verdict, let's take a closer look at some of the key reasons Aurora would and wouldn't be worth buying right now.
Image source: Getty Images.
Here's why 2021 could be a much greener year for Aurora Cannabis
Arguably the biggest catalyst for Aurora is its executive turnover. As I'll describe a bit later, the company's previous management team put it in a serious bind. Since longtime CEO Terry Booth resigned, Aurora has made tangible financial progress by slashing expenses and reducing its cash burn. This included closing five of its smaller production facilities to take advantage of economies of scale at its larger cultivation farms, as well as halting construction at its two biggest projects to conserve cash.
The company is also likely to benefit from Canadian regulators continuing to work out a number of kinks. For example, Ontario abandoned its lottery system for dispensary licenses at the end of 2019, and went with a more traditional application vetting process. Between October 2019 and September 2020, the number of open retail locations in Canada's most-populous province catapulted from 24 to 150. More open locations in key provinces means more opportunity for Aurora to get its products in front of consumers.
Additionally, don't overlook the slow but steady growth of Cannabis 2.0 products. "Cannabis 2.0" describes the alternative consumption options that launched roughly a year ago, such as edibles, vapes, infused beverages, concentrates, and topicals. In the fiscal first quarter, ended Sept. 30, Aurora notes that consumer cannabis extract net revenue jumped by $3.6 million Canadian from the sequential fourth quarter. This likely played a key role in helping to boost its adult-use cannabis adjusted gross margin (before fair-value adjustments) by 3 percentage points to 38%.
A final positive catalyst to consider is Aurora's bountiful international presence. Assuming we see a broader uptake of medical cannabis in Europe and recreational weed in Mexico, Aurora could finally begin adding some key puzzle pieces to its long-term operating model.
Image source: Getty Images.
The upcoming year might also be more of the same -- and that's not good
While there are certainly reasons for investors to believe Aurora's worst days might be behind it, there are an equal number of reasons to be concerned about its future.
The single-biggest issue for the company continues to be its ability to access capital. Despite some serious cost-cutting, Aurora is still a long way away from recurring profitability, and is burning through a lot of its cash on hand. As a result, the company has financed its operations and acquisitions by selling stock, often through at-the-market (ATM) offerings. Since April 2019, it's completed a $400 million (that's U.S.) and $250 million ATM offering, with its board recently approving another $500 million ATM offering. In simpler terms, Aurora Cannabis is diluting the daylights out of its shareholders to fund its operations. In a little over six years, the company's outstanding share count has risen by 11,800%, and this figure shows no signs of slowing.
Another clear concern has been the behavior of Canadian cannabis customers. Even though Canadian regulators purposely enacted a perceived-to-be low 10% tax rate on legal cannabis sales, it's made it difficult for licensed producers to compete with the black market on price. In order to really take on illicit producers, growers like Aurora have had to turn to value-brand flower products. This has helped to boost aggregate sales, but margins on dried flower have gone down the tubes. This will likely continue throughout 2021.
Even the new management team comes with faults. On multiple occasions we've watched Aurora Cannabis redraw the finish line as to when it'll reach positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Reaching positive adjusted EBITDA is a condition laid out by the company's lenders. If Aurora fails to improve its operating results, its survivability comes into question.
As one final note, the company is still trying to improve its balance sheet. The previous management team left Aurora with a boatload of overvalued and unnecessary assets.
Image source: Getty Images.
The verdict
Now for the $64,000 question: Should investors buy Aurora Cannabis?
After weighing both sides, my answer is decidedly no.
To be clear, Aurora Cannabis isn't devoid of long-term catalysts. It could very well be an industry leader in low-cost cannabis production, and its international presence could eventually pay dividends. The door isn't closed on its success.
However, management continues to put shareholders over a barrel. The company's steep losses will result in ongoing share issuances for the foreseeable future. It's unclear when the company's cash burn will shrink enough to reduce or eliminate these value-crushing ATM programs.
Further, it's become impossible to trust the company's guidance when the profitability/adjusted EBITDA goalposts keep getting moved. If investors can't trust Aurora's management team, there's no reason to put your money to work in this company.
More than likely, it'll be one of top pot stocks to avoid in 2021.
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 – 11 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 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), the most popular marijuana stock in the world, has been nothing short of a train wreck in 2020. This included closing five of its smaller production facilities to take advantage of economies of scale at its larger cultivation farms, as well as halting construction at its two biggest projects to conserve cash. Assuming we see a broader uptake of medical cannabis in Europe and recreational weed in Mexico, Aurora could finally begin adding some key puzzle pieces to its long-term operating model. | Aurora Cannabis (NYSE: ACB), the most popular marijuana stock in the world, has been nothing short of a train wreck in 2020. As I'll describe a bit later, the company's previous management team put it in a serious bind. In the fiscal first quarter, ended Sept. 30, Aurora notes that consumer cannabis extract net revenue jumped by $3.6 million Canadian from the sequential fourth quarter. | Aurora Cannabis (NYSE: ACB), the most popular marijuana stock in the world, has been nothing short of a train wreck in 2020. Despite a rough year for the stock market, the green flag has been waving in full force for most North American cannabis stocks. Here's why 2021 could be a much greener year for Aurora Cannabis Arguably the biggest catalyst for Aurora is its executive turnover. | Aurora Cannabis (NYSE: ACB), the most popular marijuana stock in the world, has been nothing short of a train wreck in 2020. A final positive catalyst to consider is Aurora's bountiful international presence. To be clear, Aurora Cannabis isn't devoid of long-term catalysts. |
37052.0 | 2020-12-06 00:00:00 UTC | Why Aurora Cannabis Stock Rocketed Higher in November | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-rocketed-higher-in-november-2020-12-06 | nan | nan | What happened
Canadian-licensed marijuana producer Aurora Cannabis (NYSE: ACB) had a month for the record books in November. The pot company's stock rose by a whopping 188% over the course of the month, according to data from S&P Global Market Intelligence.
The spark? Aurora's shares took flight for two reasons:
Joe Biden's win in the 2020 presidential election could set the stage for major cannabis reform in the United States.
A landmark piece of legislation known as the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) was making its way through the U.S. House of Representatives last month. Last Friday, the House passed this historic bill that could effectively end the federal prohibition on cannabis.
Image source: Getty Images.
So what
Prior to last month's monstrous rally, Aurora's shares were down by an eye-catching 62% over the past 22 months. The pot magnate's shares were in free fall over this period due to massive oversupply in its home market of Canada, sluggish international sales, hefty goodwill impairment charges, and most importantly, the issuance of new shares at a dizzying pace in order to raise capital.
Investors, for their part, appear to think that these hurricane-force headwinds may have weakened to a significant degree following the U.S. presidential election. Underscoring this point, Aurora's market cap swelled by a noteworthy $1.4 billion within a mere three weeks of Biden's win last month.
Now what
Can Aurora's shares continue to shoot higher? In the short term, investor enthusiasm for this popular pot stock might remain at fever pitch. But that doesn't mean that savvy investors should add this cannabis stock to their portfolio right now.
The reality of the situation is that the MORE Act may never see the light of day in the Senate -- and even if it does, the U.S. cannabis market is already chock-full of competition from various multistate operators. In short, despite its recent hot streak, Aurora's stock simply isn't a compelling growth play.
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 – 11 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
George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Canadian-licensed marijuana producer Aurora Cannabis (NYSE: ACB) had a month for the record books in November. Aurora's shares took flight for two reasons: Joe Biden's win in the 2020 presidential election could set the stage for major cannabis reform in the United States. Underscoring this point, Aurora's market cap swelled by a noteworthy $1.4 billion within a mere three weeks of Biden's win last month. | What happened Canadian-licensed marijuana producer Aurora Cannabis (NYSE: ACB) had a month for the record books in November. The pot company's stock rose by a whopping 188% over the course of the month, according to data from S&P Global Market Intelligence. Aurora's shares took flight for two reasons: Joe Biden's win in the 2020 presidential election could set the stage for major cannabis reform in the United States. | What happened Canadian-licensed marijuana producer Aurora Cannabis (NYSE: ACB) had a month for the record books in November. The pot company's stock rose by a whopping 188% over the course of the month, according to data from S&P Global Market Intelligence. Aurora's shares took flight for two reasons: Joe Biden's win in the 2020 presidential election could set the stage for major cannabis reform in the United States. | What happened Canadian-licensed marijuana producer Aurora Cannabis (NYSE: ACB) had a month for the record books in November. So what Prior to last month's monstrous rally, Aurora's shares were down by an eye-catching 62% over the past 22 months. In short, despite its recent hot streak, Aurora's stock simply isn't a compelling growth play. |
37053.0 | 2020-12-06 00:00:00 UTC | Robinhood Investors Are Missing Out on This Huge Cannabis Opportunity | ACB | https://www.nasdaq.com/articles/robinhood-investors-are-missing-out-on-this-huge-cannabis-opportunity-2020-12-06 | nan | nan | Cannabis stocks have been soaring recently the back of the U.S. election and a largely positive third-quarter earnings season. Not only do investors believe an incoming Biden administration could potentially roll back some marijuana prohibition provisions, but U.S. cannabis stocks have also reported some excellent sales growth in their third-quarter earnings.
Unfortunately, investors on the popular Robinhood platform can't participate in a good part of the industry -- in fact, the best part. Yet here's how investors on the platform can still gain access to this potential boom.
Robinhood investors can't directly invest in U.S. cannabis MSOs. Image source: Getty Images.
Robinhood doesn't offer U.S.-based multistate operators
Currently, Robinhood does not offer trading on Canadian exchanges, or most stocks that trade over the counter in the United States. Over-the-counter stocks are generally less liquid than stocks that trade on major U.S. exchanges and thus bear some higher risks, which is why certain platforms don't allow you to trade them.
In an ironic and somewhat absurd twist befitting the U.S. government's continued prohibition of cannabis, U.S.-based cannabis operators can trade on the Canadian exchanges, and their American depositary receipts trade over the counter in the United States. By contrast, Canadian cannabis companies actually trade on U.S. exchanges, since they are "legal" businesses up in Canada.
Hey, no one ever said the war on drugs made sense.
Unfortunately, this nonsensical arrangement is hurting the ability of Robinhooders to profit, since U.S. multistate operators (MSOs) look to be much, much better investments than their Canadian peers.
A quick comparison
To see how much better things are looking for U.S. MSOs, consider the recent data from a sampling of major cannabis companies' third-quarter results. Three of the largest U.S. MSOs are Curaleaf Holdings (OTC: CURLF), Green Thumb Industries (OTC: GTBIF), and Trulieve (OTC: TCNNF). They are growing much more quickly and are more profitable than their large Canadian peers, several of which occupy the 100 most popular Robinhood stocks today. These include Aphria (NASDAQ: APHA), Cronos Group (NASDAQ: CRON), Canopy Growth (NASDAQ: CGC), Aurora Cannabis (NYSE: ACB), and Tilray (NASDAQ: TLRY).
U.S. COMPANY
REVENUE GROWTH (RECENT QUARTER)
GROSS MARGIN (RECENT QUARTER)
Curaleaf Holdings
164%
47.5%
Green Thumb Industries
131.1%
55.4%
Trulieve
92.7%
75%
CANADIAN COMPANY
REVENUE GROWTH (RECENT QUARTER)
GROSS MARGIN (RECENT QUARTER)
Aphria
15.5%
29.7%
Aurora Cannabis
(8%)
36.2%
Canopy Growth 76.5%
17.3%
Cronos Group
96.3%
(13.5%)
Tilray
(0.6%)
7.3%
Data sources: company quarterly filings. YOY=year-over-year.
It's pretty clear what the better businesses are here. U.S. MSOs are seeing not only exploding growth but also higher margins. This is because Canada, while legal, largely dropped the ball in rolling out licenses for dispensaries. That has not only plagued the Canadian companies in terms of overproducing more than they can sell because of the logjam, but it has also allowed the black market to continue unabated in many parts of the country.
Meanwhile, it appears U.S. consumers are embracing legal cannabis wherever they can, either recreationally or with a medical prescription, and happily flocking to legal stores. It's a real shame that Robinhooders can't buy into what is clearly a better part of the industry, especially since there is clear demand for cannabis industry exposure, with seven of the top 100 most popular Robinhood stocks being "lesser" Canadian cannabis companies.
But there may be a way...
Fortunately, all hope is not lost for Robinhooders. A new exchange-traded-fund called the AdvisorShares Pure US Cannabis ETF (NYSEMKT: MSOS) trades on the NYSEArca exchange and is therefore available for Robinhooders to trade. The three aforementioned large U.S. MSOs are among its top holdings, giving Robinhooders broad and diversified exposure to the booming U.S. cannabis scene.
Pure US Cannabis ETF could be worth a look right now even after its recent run. The House of Representatives just voted to legalize cannabis at the federal level on Friday. While the bill has little chance of being taken up by the Republican-controlled Senate, it's still an unprecedented vote. In addition, some cannabis executives think there is a good shot of passing cannabis banking reform in the new administration, and possibly even the STATES Act, which would insure that companies complying with state cannabis laws wouldn't be prosecuted.
Should that happen, I'd expect U.S. MSOs to continue higher, given their strong growth and profitability. For Robinhood investors, the Pure US Cannabis ETF may be worth checking out heading into 2021.
10 stocks we like better than AdvisorShares Pure US Cannabis ETF
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Billy Duberstein owns shares of Green Thumb Industries and Trulieve Cannabis. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Green Thumb Industries. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These include Aphria (NASDAQ: APHA), Cronos Group (NASDAQ: CRON), Canopy Growth (NASDAQ: CGC), Aurora Cannabis (NYSE: ACB), and Tilray (NASDAQ: TLRY). Not only do investors believe an incoming Biden administration could potentially roll back some marijuana prohibition provisions, but U.S. cannabis stocks have also reported some excellent sales growth in their third-quarter earnings. Aphria 15.5% 29.7% Aurora Cannabis (8%) 36.2% Canopy Growth 76.5% 17.3% Cronos Group 96.3% (13.5%) Tilray (0.6%) 7.3% Data sources: company quarterly filings. | These include Aphria (NASDAQ: APHA), Cronos Group (NASDAQ: CRON), Canopy Growth (NASDAQ: CGC), Aurora Cannabis (NYSE: ACB), and Tilray (NASDAQ: TLRY). Robinhood doesn't offer U.S.-based multistate operators Currently, Robinhood does not offer trading on Canadian exchanges, or most stocks that trade over the counter in the United States. Aphria 15.5% 29.7% Aurora Cannabis (8%) 36.2% Canopy Growth 76.5% 17.3% Cronos Group 96.3% (13.5%) Tilray (0.6%) 7.3% Data sources: company quarterly filings. | These include Aphria (NASDAQ: APHA), Cronos Group (NASDAQ: CRON), Canopy Growth (NASDAQ: CGC), Aurora Cannabis (NYSE: ACB), and Tilray (NASDAQ: TLRY). In an ironic and somewhat absurd twist befitting the U.S. government's continued prohibition of cannabis, U.S.-based cannabis operators can trade on the Canadian exchanges, and their American depositary receipts trade over the counter in the United States. It's a real shame that Robinhooders can't buy into what is clearly a better part of the industry, especially since there is clear demand for cannabis industry exposure, with seven of the top 100 most popular Robinhood stocks being "lesser" Canadian cannabis companies. | These include Aphria (NASDAQ: APHA), Cronos Group (NASDAQ: CRON), Canopy Growth (NASDAQ: CGC), Aurora Cannabis (NYSE: ACB), and Tilray (NASDAQ: TLRY). Robinhood doesn't offer U.S.-based multistate operators Currently, Robinhood does not offer trading on Canadian exchanges, or most stocks that trade over the counter in the United States. By contrast, Canadian cannabis companies actually trade on U.S. exchanges, since they are "legal" businesses up in Canada. |
37054.0 | 2020-12-05 00:00:00 UTC | Is Tilray Stock a Buy? | ACB | https://www.nasdaq.com/articles/is-tilray-stock-a-buy-2020-12-05 | nan | nan | When it comes to investing in the marijuana sector, popular players like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Smaller players like Tilray (NASDAQ: TLRY) often get overlooked. Technically, Tilray isn't a smaller company -- its market cap of $1.1 billion is just slightly less than that of Aurora's cap of $1.9 billion. However, Aurora has stolen investors' attention mostly because of its acquisition spree and expansion pace, and Canopy's investors are keeping a close watch on the company to see if it can appropriately implement cost-cutting measures. Aurora and Canopy focus on both medical and recreational cannabis products.
Tilray, on the other hand, has put more of its interest in medical cannabis products, especially in the European market. In its recent third quarter, which ended Sept. 30, the company saw a decline in total cannabis revenue, but international medical sales were up. Let's take a look at its Q3 results in depth and determine if this cannabis stock is worth investing in.
Image source: Getty Images.
Third-quarter results were lukewarm
Total revenue for the third quarter almost came in flat at 51.4 million Canadian dollars compared to CA$51.1 million in the year-ago period. Tilray's total revenue includes total cannabis revenue and sales from hemp minus excise duties.
Total cannabis revenue saw a dip of 11.3% year over year to CA$31.4 million because of the discontinuation of bulk sales, according to the company.
Surprisingly, recreational cannabis, which isn't Tilray's main focus, saw a surge of 26% year over year to CA$19 million. This category also included new cannabis derivatives. Cannabis derivatives include vapes, edibles, beverages, concentrates, and more. Canada legalized these as part of "Cannabis 2.0" legalization in October 2019.
Medical cannabis products are its strength
Medical cannabis products helped Tilray get a lot of traction in the international markets. In the third quarter, Tilray's international medical cannabis revenue saw a jump to CA$8.1 million from CA$5.7 million, while Canada's medical sales fell 13% to CA$3.3 million from Q3 2019. Tilray faces stiff competition in the Canadian medical cannabis market from the likes of Canopy Growth, which has an advantage as an early mover in the industry. In its recent fiscal second-quarter 2021 results for the period ended Sept. 30, Canopy earned CA$13.8 million from its medical cannabis operations in Canada. These comprised 15% of its total cannabis revenue.
Tilray's medical cannabis business is not just experiencing growth but also is gaining international expert recognition -- which is evident from the recent positive reviews it received for its products used in a clinical study. In September, the company announced that Australian researchers published preliminary results from a clinical trial that used the company's medical cannabis product. The results published in Annals of Oncology, a peer-reviewed journal, showed that Tilray's product reduced "nausea and vomiting for cancer patients undergoing chemotherapy in a world's first clinical trial."
Tilray also has a cultivation license from the Government of Portugal to produce medical marijuana products for the EU market. Through its Portugal facility, Tilray plans to export its products to the Israel market along with a partnership with Cannadoc, an Israel Medical Cannabis Agency. Both entered into a strategic partnership agreement in January. Unlike Canada, which is more challenged by the black market, Israel can be a surer opportunity for Tilray. Because of stricter border controls, the Israeli cannabis market is better protected from the illicit market.
Besides Australia, Canada, and the EU, its products also have a market presence in Latin America and New Zealand. In total, Tilray now exports medical marijuana products to 15 countries worldwide.
Tilray is wise to concentrate more on the medical cannabis market, particularly in Europe. With regulations improving, the European Cannabis Market could grow at a compound annual growth rate (CAGR) of 29.6% to be worth $37 billion by 2027.
Profitability is still a big question mark
Unlike Aurora, which saw an 8% year-over-year decline in revenue in its first-quarter fiscal 2021, Tilray's revenue didn't decline this quarter. However, the revenue growth wasn't sufficient for the company to break even. It reported an adjusted earnings before income, tax, depreciation, and amortization (EBITDA) loss of CA$1.5 million. However, this was better compared to losses of CA$36.4 million in the year-ago period. The company said cost-cutting efforts have helped it achieve that. In May, it shut down one of its cultivation facilities in Ontario, Canada. Management stated it would help save CA$7.5 million in annualized net savings that could boost revenues and help them achieve profitability.
The company ended the quarter with cash and cash equivalents of CA$155.2 million that could help with the launch of more derivatives products. In October, Tilray along with its wholly owned subsidiary, High Park Holdings, launched a new line of cannabis-infused edibles. Management is highly optimistic that the company will either break even or achieve positive EBITDA by the fourth quarter. This cannot be possible just by reducing costs; Tilray needs to work on growing revenues too.
Management believes the company has a "competitive position and business potential in the EU and Germany" medical markets. For this reason, they feel their Portuguese facility will position them better to capture these markets. The Portugal cultivation facility, once completed, could cultivate roughly 40 metric tons of dried cannabis, according to management.
Tilray's strategies for the future sound promising, but until the strategies bear fruit, Tilray is still a risky investment. Its lukewarm third-quarter results didn't help its stock, either, which is down a whopping 50% so far this year. Aurora Cannabis' stock is riding the same boat with a slump of 60%, while Canopy's stock is up 37%, respectively. Meanwhile, the industry benchmark, the Horizons Marijuana Life Sciences ETF, is down 0.57% over the same period.
TLRY data by YCharts
Tilray's expansion plans in Europe and the international medical cannabis market can benefit its revenues, but that could take a while, Thus, until Tilray increases revenue at a faster pace and achieves profitability, I would be cautious before investing in this marijuana 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. | When it comes to investing in the marijuana sector, popular players like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Tilray faces stiff competition in the Canadian medical cannabis market from the likes of Canopy Growth, which has an advantage as an early mover in the industry. Tilray's medical cannabis business is not just experiencing growth but also is gaining international expert recognition -- which is evident from the recent positive reviews it received for its products used in a clinical study. | When it comes to investing in the marijuana sector, popular players like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Tilray's total revenue includes total cannabis revenue and sales from hemp minus excise duties. In its recent fiscal second-quarter 2021 results for the period ended Sept. 30, Canopy earned CA$13.8 million from its medical cannabis operations in Canada. | When it comes to investing in the marijuana sector, popular players like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Medical cannabis products are its strength Medical cannabis products helped Tilray get a lot of traction in the international markets. In the third quarter, Tilray's international medical cannabis revenue saw a jump to CA$8.1 million from CA$5.7 million, while Canada's medical sales fell 13% to CA$3.3 million from Q3 2019. | When it comes to investing in the marijuana sector, popular players like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) come to mind. Aurora and Canopy focus on both medical and recreational cannabis products. Medical cannabis products are its strength Medical cannabis products helped Tilray get a lot of traction in the international markets. |
37055.0 | 2020-12-04 00:00:00 UTC | Why HEXO Dived on Friday While Other Marijuana Stocks Soared | ACB | https://www.nasdaq.com/articles/why-hexo-dived-on-friday-while-other-marijuana-stocks-soared-2020-12-04 | nan | nan | What happened
Friday was a happily memorable day for the marijuana sector, but you wouldn't know that from the performance of HEXO (NYSE: HEXO) stock. The company's shares cratered by nearly 8% on the day, despite the passage of a historic marijuana decriminalization measure in the U.S. House of Representatives.
But investors had good reason to be bearish on HEXO despite that encouraging development.
Image source: Getty Images.
So what
In what can't be classified as an instance of ideal timing, as the House was preparing its vote, HEXO announced that it has scheduled an annual general meeting (AGM) of shareholders for Friday, Dec. 11.
There's nothing unusual about calling an AGM, but a peek at the meeting's agenda reveals one troubling item -- a vote on a reverse stock split of the company, at the rate of eight common shares for one.
That isn't unexpected, as HEXO had proposed this "share consolidation" concurrent with its Q4 of fiscal 2020 results published in October. It's also not an unusual move in the cannabis industry; in May, HEXO's peer Aurora Cannabis enacted a 1-for-12 reverse stock split.
Now what
The thing is, no matter how anticipated, stock splits are very disheartening events. They are rare pieces of basic financial engineering that are almost always done to avoid a stock's delisting, as they boost its per-share without adding any true value to it. HEXO's not doing too badly for a pot company these days, but this move sure isn't going to improve sentiment on its 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 – 11 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
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends HEXO. 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. | So what In what can't be classified as an instance of ideal timing, as the House was preparing its vote, HEXO announced that it has scheduled an annual general meeting (AGM) of shareholders for Friday, Dec. 11. There's nothing unusual about calling an AGM, but a peek at the meeting's agenda reveals one troubling item -- a vote on a reverse stock split of the company, at the rate of eight common shares for one. 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. | There's nothing unusual about calling an AGM, but a peek at the meeting's agenda reveals one troubling item -- a vote on a reverse stock split of the company, at the rate of eight common shares for one. It's also not an unusual move in the cannabis industry; in May, HEXO's peer Aurora Cannabis enacted a 1-for-12 reverse stock split. HEXO's not doing too badly for a pot company these days, but this move sure isn't going to improve sentiment on its stock. | What happened Friday was a happily memorable day for the marijuana sector, but you wouldn't know that from the performance of HEXO (NYSE: HEXO) stock. HEXO's not doing too badly for a pot company these days, but this move sure isn't going to improve sentiment on its 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. | It's also not an unusual move in the cannabis industry; in May, HEXO's peer Aurora Cannabis enacted a 1-for-12 reverse stock split. HEXO's not doing too badly for a pot company these days, but this move sure isn't going to improve sentiment on its stock. 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. |
37056.0 | 2020-12-04 00:00:00 UTC | Why Aurora Cannabis and Aphria Rose While Sundial Growers Dropped Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-and-aphria-rose-while-sundial-growers-dropped-today-2020-12-04 | nan | nan | What happened
Shares of Aurora Cannabis (NYSE: ACB) were trading down 2.5% as of 2 p.m. EST Friday, after being as much as 8% higher earlier in the day. Aphria (NASDAQ: APHA), another Canadian pot grower, also traded 6% higher before giving up most of those gains. And shares of Sundial Growers (NASDAQ: SNDL) were down 8% after being higher earlier in the trading session.
There has been some news driving the stocks this week, but of the three, only Sundial has new information today for investors.
So what
After Sundial's stock soared 50% this week, the company announced today it is taking advantage of the increase to raise needed capital. The company said it will issue securities to raise up to $200 million, and also filed a prospectus for a new at-the-market equity program for up to $150 million of its common shares.
This came after Sundail's shares rose this week on the heels of a United Nations commission vote to remove medical cannabis from the list of Schedule IV drugs created at the 1961 Single Convention on Narcotic Drugs.
Image source: Getty Images.
The removal from the category that includes heroin doesn't mean any immediate change in the legal status of cannabis, since individual governments make those decisions. But it is a symbolic change that helps support the growing movement for legalization.
Now what
Pot stocks jumped on the news earlier this week. Sundial, like Aurora Cannabis, has seen its shares pummeled this year. Sundial stock has lost 76% since the start of 2020, while Aurora is down 58%. Aphria has bucked that trend, with shares rising 63% so far in 2020.
SNDL data by YCharts
Aphria, though, has made a move that should drive future growth in the business. Aurora has spent much of the year restructuring by closing operations, cutting jobs, and raising capital. Aphria recently closed on its acquisition of U.S. craft brewer SweetWater Brewing Company.
Aphria says it will use the $300 million acquisition to help expand its addressable market, utilizing SweetWater's U.S. infrastructure "to accelerate Aphria's entry into the U.S. ahead of federal legalization of cannabis to fuel sustainable profitable growth."
Aphria is going in a different direction than both Aurora and Sundial, with a much lower debt level relative to its equity. Sundial said it will use proceeds from its new share issuance "to continue to retire its indebtedness" as well as to grow the business.
A growing business is what investors really need to see for Aurora and Sundial Growers to be on a sustainable path toward profitability. At least Aphria has that path in the works already.
10 stocks we like better than Sundial Growers Inc
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Aurora Cannabis (NYSE: ACB) were trading down 2.5% as of 2 p.m. EST Friday, after being as much as 8% higher earlier in the day. So what After Sundial's stock soared 50% this week, the company announced today it is taking advantage of the increase to raise needed capital. The removal from the category that includes heroin doesn't mean any immediate change in the legal status of cannabis, since individual governments make those decisions. | What happened Shares of Aurora Cannabis (NYSE: ACB) were trading down 2.5% as of 2 p.m. EST Friday, after being as much as 8% higher earlier in the day. Aphria (NASDAQ: APHA), another Canadian pot grower, also traded 6% higher before giving up most of those gains. And shares of Sundial Growers (NASDAQ: SNDL) were down 8% after being higher earlier in the trading session. | What happened Shares of Aurora Cannabis (NYSE: ACB) were trading down 2.5% as of 2 p.m. EST Friday, after being as much as 8% higher earlier in the day. Aphria says it will use the $300 million acquisition to help expand its addressable market, utilizing SweetWater's U.S. infrastructure "to accelerate Aphria's entry into the U.S. ahead of federal legalization of cannabis to fuel sustainable profitable growth." 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. | What happened Shares of Aurora Cannabis (NYSE: ACB) were trading down 2.5% as of 2 p.m. EST Friday, after being as much as 8% higher earlier in the day. Sundial, like Aurora Cannabis, has seen its shares pummeled this year. Aphria says it will use the $300 million acquisition to help expand its addressable market, utilizing SweetWater's U.S. infrastructure "to accelerate Aphria's entry into the U.S. ahead of federal legalization of cannabis to fuel sustainable profitable growth." |
37057.0 | 2020-12-04 00:00:00 UTC | CANADA STOCKS - TSX rises 0.68% to 17,517.04 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.68-to-17517.04-2020-12-04 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.68 percent to 17,517.04
* Leading the index were BlackBerry Ltd , up 13.4%, MEG Energy Corp MEG.TO, up 11.5%, and Crescent Point Energy Corp CPG.TO, higher by 10.3%.
* Lagging shares were Seabridge Gold Inc SEA.TO, down 7.9%, Trillium Therapeutics Inc TRIL.TO, down 7.4%, and Richelieu Hardware Ltd RCH.TO, lower by 5.4%.
* On the TSX 131 issues rose and 88 fell as a 1.5-to-1 ratio favored advancers. There were 18 new highs and no new lows, with total volume of 215.1 million shares.
* The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO.
* The TSX's energy group .SPTTEN rose 5.09 points, or 5.8%, while the financials sector .SPTTFS climbed 2.11 points, or 0.7%.
* West Texas Intermediate crude futures CLc1 rose 0.88%, or $0.4, to $46.04 a barrel. Brent crude LCOc1 rose 0.64%, or $0.31, to $49.02 O/R
* The TSX is up 2.7% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO. * The Toronto Stock Exchange's TSX rises 0.68 percent to 17,517.04 * Leading the index were BlackBerry Ltd , up 13.4%, MEG Energy Corp MEG.TO, up 11.5%, and Crescent Point Energy Corp CPG.TO, higher by 10.3%. * Lagging shares were Seabridge Gold Inc SEA.TO, down 7.9%, Trillium Therapeutics Inc TRIL.TO, down 7.4%, and Richelieu Hardware Ltd RCH.TO, lower by 5.4%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO. * The Toronto Stock Exchange's TSX rises 0.68 percent to 17,517.04 * Leading the index were BlackBerry Ltd , up 13.4%, MEG Energy Corp MEG.TO, up 11.5%, and Crescent Point Energy Corp CPG.TO, higher by 10.3%. * The TSX's energy group .SPTTEN rose 5.09 points, or 5.8%, while the financials sector .SPTTFS climbed 2.11 points, or 0.7%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO. * The Toronto Stock Exchange's TSX rises 0.68 percent to 17,517.04 * Leading the index were BlackBerry Ltd , up 13.4%, MEG Energy Corp MEG.TO, up 11.5%, and Crescent Point Energy Corp CPG.TO, higher by 10.3%. * The TSX's energy group .SPTTEN rose 5.09 points, or 5.8%, while the financials sector .SPTTFS climbed 2.11 points, or 0.7%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Blackberry Ltd BB.TO. * The Toronto Stock Exchange's TSX rises 0.68 percent to 17,517.04 * Leading the index were BlackBerry Ltd , up 13.4%, MEG Energy Corp MEG.TO, up 11.5%, and Crescent Point Energy Corp CPG.TO, higher by 10.3%. * Lagging shares were Seabridge Gold Inc SEA.TO, down 7.9%, Trillium Therapeutics Inc TRIL.TO, down 7.4%, and Richelieu Hardware Ltd RCH.TO, lower by 5.4%. |
37058.0 | 2020-12-04 00:00:00 UTC | Will Aurora Cannabis Stock Go to $0? | ACB | https://www.nasdaq.com/articles/will-aurora-cannabis-stock-go-to-%240-2020-12-04 | nan | nan | It's easy to be down on a stock like Aurora Cannabis (NYSE: ACB). The stock has fallen more than 60% in the past 12 months, while the S&P 500 is up 18% over the same period. The company continues to issue more shares, and is struggling to grow and stay out of the red. But for one analyst from GLJ Research to suggest that the stock is worth zero seems extreme, even if you're really bearish on pot stocks.
The stock has shown signs of life lately, coming off a fantastic month in November when it rallied close to 190%. Below, I'll take a look at whether this is the start of a new, more positive trend for Aurora or if it really is in danger of going to zero and investors should jump ship.
Image source: Getty Images.
A $0 price target is more attention-grabbing than it is realistic
To say that a company is worth zero would suggest its assets have next to no value -- certainly not enough to cover its liabilities. And while you could discount items like intangible assets and goodwill, where valuations can sometimes heavily rely on estimates, Aurora would still have assets totaling 1.4 million Canadian dollars remaining as of Sept. 30 -- more than double the CA$603,000 it listed in total liabilities as of that date. The company has far more assets than it does liabilities, and it's far from worthless.
Setting a price target of zero is a great way to grab headlines and get people talking about the possibility of the stock going on more of a decline, but the arguments for the price target aren't terribly compelling. There were two main reasons the analyst gave for the valuation: (1) that Aurora's recent rise in price gave short-sellers an opportunity to take on greater short positions (which would push its price down), and (2) that Aurora's strategy isn't working and has been reset multiple times. But many top-performing stocks have short-sellers: Tesla's Elon Musk is known for battling short-sellers. With the automaker's stock up 780% in 12 months, it's fair to say he's been winning that war in spades.
As far as strategy goes, Aurora isn't the only cannabis company struggling. When rival Canopy Growth fired its CEO Bruce Linton last year, there was hope that a greater focus on costs and the bottom line would make the company more investable. However, it's continued to incur losses, staying firmly in the red in each of the past four quarters.
The company still faces challenges and is currently in a "transition year." The one advantage Canopy Growth has over Aurora is that it's backed by beverage magnate Constellation Brands, giving it more resources to tap into should it need help.
Aurora is struggling, but so are other Canadian pot stocks. Seriously changing course is necessarily a sign of business failure, especially in a relatively new industry like marijuana -- recreational use of the drug has only been legal in Canada since October 2018.
Will its rally continue?
On the flip side of things, investors may be wondering if Aurora's stock could continue rising and building off of last month's strong rally. I'm less optimistic about this because the main catalyst for Aurora and other pot stocks' ascension last month was Joe Biden's election win and four more states voting to legalize marijuana -- Arizona, Montana, New Jersey, and South Dakota.
Until the U.S. government legalizes marijuana at the federal level, the decisions of individual states won't mean a whole lot for Aurora. After all, if its marijuana products can't cross the U.S. border, there's no way for them to be sold in any state. That's why those gains may not hold up.
Aurora released first-quarter results for fiscal 2021 on Nov. 9 for the period ending Sept. 30, but those numbers weren't all that exciting, with net revenue of CA$67.8 million down 8% from the prior-year period. Gross profit before fair-value adjustments of CA$24.5 million was also 38% lower than the CA$39.6 million it generated in Q1 last year. So it's little surprise the company incurred a loss of CA$109.5 million for the period.
Aurora's focus, however, remains on its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) number, as its goal is to be positive by the second quarter. In Q1, its adjusted EBITDA loss was CA$57.9 million. However, the company notes that after further adjusting its adjusted EBITDA number to factor out employee termination costs and other restructuring-related expenses, its loss would have been just CA$10.5 million.
Because Aurora is lacking strong quarterly results and benefiting from political developments in the U.S. that likely won't impact its business, I wouldn't expect shares to continue rallying, especially if the company needs to raise cash again. In November, the company announced it would be issuing another 20 million shares to raise $150 million.
Is Aurora stock a buy?
It's unlikely that Aurora's share price will go to zero. As investors have noticed in November, even positive news from the industry in general has the ability to lift up shares of the company. And if Aurora does struggle, it can deploy another reverse stock split to boost its share price. Earlier this year, the Alberta-based company consolidated 12 shares into one to get its stock back up over $1 to avoid getting delisted from the New York Stock Exchange (NYSE).
But simply because the stock may not go to zero doesn't make it a good buy. There are serious challenges ahead for Aurora, and Q2 will be a big test. If the company can meet its target of a positive adjusted EBITDA number, it could be a good sign that the company is finally turning the corner. However, until there are some tangible financial results showing that Aurora is faring better, this is a stock investors should steer clear of.
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 and Tesla. 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. | It's easy to be down on a stock like Aurora Cannabis (NYSE: ACB). When rival Canopy Growth fired its CEO Bruce Linton last year, there was hope that a greater focus on costs and the bottom line would make the company more investable. I'm less optimistic about this because the main catalyst for Aurora and other pot stocks' ascension last month was Joe Biden's election win and four more states voting to legalize marijuana -- Arizona, Montana, New Jersey, and South Dakota. | It's easy to be down on a stock like Aurora Cannabis (NYSE: ACB). There were two main reasons the analyst gave for the valuation: (1) that Aurora's recent rise in price gave short-sellers an opportunity to take on greater short positions (which would push its price down), and (2) that Aurora's strategy isn't working and has been reset multiple times. In Q1, its adjusted EBITDA loss was CA$57.9 million. | It's easy to be down on a stock like Aurora Cannabis (NYSE: ACB). There were two main reasons the analyst gave for the valuation: (1) that Aurora's recent rise in price gave short-sellers an opportunity to take on greater short positions (which would push its price down), and (2) that Aurora's strategy isn't working and has been reset multiple times. Because Aurora is lacking strong quarterly results and benefiting from political developments in the U.S. that likely won't impact its business, I wouldn't expect shares to continue rallying, especially if the company needs to raise cash again. | It's easy to be down on a stock like Aurora Cannabis (NYSE: ACB). Aurora is struggling, but so are other Canadian pot stocks. It's unlikely that Aurora's share price will go to zero. |
37059.0 | 2020-12-03 00:00:00 UTC | Could Aurora Cannabis Be a Millionaire-Maker Stock? | ACB | https://www.nasdaq.com/articles/could-aurora-cannabis-be-a-millionaire-maker-stock-2020-12-03 | nan | nan | After Canada legalized recreational cannabis in October 2018, the rate at which Canadian marijuana company Aurora Cannabis (NYSE: ACB) expanded its operations convinced many investors that it would lead the new industry. However, when Canadian demand couldn't match Aurora's supply, the business's aggressive game plan proved detrimental. Regulatory hurdles also caused a delay in the opening of legal stores, affecting revenue, and Aurora's losses kept mounting.
However, the company is going all in this year to recover and reestablish its top spot in the cannabis market. It executed some stringent cost-cutting measures in June that it calls "facility rationalization plans," shutting down unproductive facilities and focusing on the productive ones. But its efforts do not yet appear to be bearing fruit, and investors who were hoping for glimmers of hope from Aurora's Q1 2021 results (released Nov. 9 for the period ending Sept. 30) were disappointed. Does this cannabis company have a chance to recover anytime soon and turn its investors into millionaires?
Image source: Getty Images.
First-quarter results didn't paint a good picture -- now what?
Aurora's total cannabis net revenue sank 8% year over year to 67.8 million Canadian dollars in the third quarter of 2020. The decline was caused by Aurora's Daily Special value brand, which was faced with some increased competition from peers in the cannabis flower category, according to management.
The fall in revenue was accompanied by another earnings before income, taxation, depreciation, and amortization (EBITDA) loss this quarter. That loss came in at CA$57.8 million, compared with a loss of CA$33 million in the year-ago quarter. Sequentially, losses were also worse than the CA$32.2 million seen in the fourth quarter of 2020. This was due to legal-settlement and contract-termination fees associated with workforce reduction as part of the company's business transformation plan.
The company needs to grow revenues at a faster pace and establish its position in the consumer cannabis market to achieve profitability. Its facility rationalization plans challenged its sales growth, but the company is ready with new tactics. In the management discussion and analysis for Q1, management targeted four things:
Growing Aurora's market share in key profitable Canadian consumer categories.
Enhancing and strengthening the company's Canadian medical market share.
Growing the international medical business, especially in the European market.
Building Reliva's brands in the U.S. cannabidiol (CBD) market.
Aurora acquired Reliva, which produces non-intoxicating products made from CBD, in May in exchange for $40 million of its common stock. Management intends to use Reliva's wide network of 20,000 retail stores to help capture the U.S. CBD market.
All of these strategies sound promising, no doubt, but these changes could take a while and will demand additional capital. Aurora has allocated capital of CA$40 million for all spending in fiscal year 2021. I will be surprised if -- with no profits -- Aurora can manage to fulfill its strategies within the CA$40 million it has set aside. Aurora already spent CA$13.2 million of that allocation in Q1. The company faces challenges in part because of its lack of a strong financial backer. For example, Constellation Brands (NYSE: STZ), which invested in Canopy Growth (NASDAQ: CGC) in October 2017 and has been increasing its stake ever since. Constellation's funding -- it now holds 38.6% of the company -- is propelling Canopy's growth strategies.
So could Aurora make you a millionaire?
The short answer: Aurora has a long way to go before it can be a millionaire-maker stock. For now, the company will have to work hard just to stay in the game. The company's 1-for-12 reverse stock split in May was intended to help boost its stock-price performance, but that level of stock dilution didn't sit well with investors.
Image source: Getty Images.
Diluting stock can help a company grow its earnings, but that's not the case either for Aurora. Its stock-price performance so far this year is worse than last year's slump of 56%. In 2020, year to date, Aurora's stock is down about 60%. Meanwhile, the industry benchmark, the Horizons Marijuana Life Sciences ETF, is basically flat, down 0.3%. And Canopy Growth, sporting second-quarter fiscal 2021 results that were better than Aurora's, has seen its stock jump 34% over the same period.
Currently, management claims it will attain positive EBITDA by the end of the second quarter. That's coming right up on Dec. 31, and looking at the first-quarter results, it's hard to trust the company can hit its target. If you feel a sense of déjà vu here, you're not alone -- Aurora made similar failed promises to achieve positive EBITDA by the fourth quarter of fiscal 2019 in May of last year. With its current scenario of revenue decline, unprofitability, and operating expenses improving at a slow rate, there are few chances for the company to achieve positive EBITDA anytime soon.
Until Aurora can show investors that it can live up to its promises, work on its growth strategies, find alternative ways of raising capital, and grow revenue at a faster rate, I think that it is not only far from a millionaire-maker -- it is a marijuana stock to avoid.
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. | After Canada legalized recreational cannabis in October 2018, the rate at which Canadian marijuana company Aurora Cannabis (NYSE: ACB) expanded its operations convinced many investors that it would lead the new industry. If you feel a sense of déjà vu here, you're not alone -- Aurora made similar failed promises to achieve positive EBITDA by the fourth quarter of fiscal 2019 in May of last year. With its current scenario of revenue decline, unprofitability, and operating expenses improving at a slow rate, there are few chances for the company to achieve positive EBITDA anytime soon. | After Canada legalized recreational cannabis in October 2018, the rate at which Canadian marijuana company Aurora Cannabis (NYSE: ACB) expanded its operations convinced many investors that it would lead the new industry. In the management discussion and analysis for Q1, management targeted four things: Growing Aurora's market share in key profitable Canadian consumer categories. If you feel a sense of déjà vu here, you're not alone -- Aurora made similar failed promises to achieve positive EBITDA by the fourth quarter of fiscal 2019 in May of last year. | After Canada legalized recreational cannabis in October 2018, the rate at which Canadian marijuana company Aurora Cannabis (NYSE: ACB) expanded its operations convinced many investors that it would lead the new industry. Aurora's total cannabis net revenue sank 8% year over year to 67.8 million Canadian dollars in the third quarter of 2020. Until Aurora can show investors that it can live up to its promises, work on its growth strategies, find alternative ways of raising capital, and grow revenue at a faster rate, I think that it is not only far from a millionaire-maker -- it is a marijuana stock to avoid. | After Canada legalized recreational cannabis in October 2018, the rate at which Canadian marijuana company Aurora Cannabis (NYSE: ACB) expanded its operations convinced many investors that it would lead the new industry. In the management discussion and analysis for Q1, management targeted four things: Growing Aurora's market share in key profitable Canadian consumer categories. In 2020, year to date, Aurora's stock is down about 60%. |
37060.0 | 2020-12-03 00:00:00 UTC | 3 Pot Stocks to Avoid Like the Plague in December | ACB | https://www.nasdaq.com/articles/3-pot-stocks-to-avoid-like-the-plague-in-december-2020-12-03 | nan | nan | The market has had a tough year, but North American pot stocks have thrived. The coronavirus disease 2019 (COVID-19) pandemic hasn't deterred consumers eager to buy cannabis products. In Canada, licensed cannabis store sales hit yet another all-time high in September ($197.5 million).
But as investors, we also know that not every company in a high-growth industry can be a winner. As we prepare to turn the page on 2020, my suggestion would be to avoid the following three pot stocks like the plague in December.
Image source: Getty Images.
Aurora Cannabis
Canadian licensed producer Aurora Cannabis (NYSE: ACB) should be a permanent fixture in this monthly column. Although it's been on fire since the U.S. election last month, there are many reasons I'm not buying into the misplaced euphoria surrounding this company.
At the moment, investors seem excited about the prospects for legalization; Joe Biden won the White House, and the Democrat-led House of Representatives will vote on the MORE Act this month. The Marijuana Opportunity, Reinvestment, and Expungement Act would decriminalize cannabis at the federal level and impose a retail tax on legal weed sales.
This sounds great on paper, but Biden's decriminalization plan has issues. Further, the MORE Act is dead on arrival as long as Sen. Mitch McConnell remains Senate Majority Leader. A House vote is nothing more than a talking point, which means Aurora is still far from entering the U.S. pot industry.
The bigger issue with Aurora Cannabis has always been its complete disregard for its shareholders. Whether to finance acquisitions or internal expansion, Aurora has often sold its common stock to raise capital. Between June 2014 and October 2020, its share count grew by more than 11,800% -- and it's not finished. Recently, the company's board approved a $500 million shelf offering that'll mean ongoing dilution.
Though most of Aurora's previous management team is gone, investors continue to suffer for their mistakes. In fiscal 2020 (ended June 30, 2020), Aurora recorded a $3.3 billion Canadian net loss, much of which can be attributed to goodwill and asset writedowns. The company was far too overzealous in the capacity expansion department and was forced to close facilities, lay off workers, and take huge impairment charges in fiscal 2020.
As the icing on the cake, Aurora continues to move back the goalposts for achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). There's no reason to trust management or invest in this marijuana stock.
Image source: Getty Images.
Sundial Growers
Another blazing-hot pot stock that investors would be smart to avoid in December is small-cap Sundial Growers (NASDAQ: SNDL).
Shares of Sundial more than quadrupled in November for many of the same reasons described above. Additionally, on Nov. 11, the company reported its third-quarter operating results that featured a CA$23 million reduction in debt and lower general and administrative expenses. Given the company's shift away from wholesale cannabis and toward higher-margin branded retail sales, investors have liked what they've seen.
Yet this company is still a hot mess.
One of the more front-and-center issues for Sundial is that it'll likely need a reverse split to remain listed on the Nasdaq. Historically, investors have seen reverse splits as signs of weakness. Most companies don't fare well after reverse splits.
The second problem is that Sundial's improved cash position has come at the expense of its shareholders. In recent months, Sundial has sold stock and converted some of its outstanding debt to equity. Its share count is thus ballooning. Although it has a healthier cash balance, Sundial may continue to lean on unfriendly tactics to raise capital.
Sundial Growers' operating results aren't all that impressive, either. Transitioning away from low-margin wholesale cannabis isn't going to happen overnight. That's a problem for a company that's reported a whopping CA$151.5 million in operating losses through the first nine months of 2020.
In other words, Sundial Growers is probably just the flavor of the week among day traders. It lacks the true substance that long-term investors crave. Avoid it.
Image source: Getty Images.
Tilray
A third marijuana stock that should be on investors' naughty list is Canadian licensed producer Tilray (NASDAQ: TLRY).
Shares of the red-hot Tilray were up 58% in November, with excitement surrounding U.S. legalization pushing its valuation notably higher. The company also surged after reporting its third-quarter operating results. Tilray's net loss of $2.3 million (that's U.S.) came in much lower than Wall Street expected, with international medical cannabis sales jumping 42% from the prior-year period to $8.1 million.
Headlines paint a rosy picture, but a little digging should have investors scurrying away.
Delve deeper into Tilray's Q3 report, and you'll see that the company received a $31.9 million boost from warrant liability adjustments. If this one-time benefit is removed, but other pertinent operating expenses are kept, Tilray's net loss comes in closer to $34 million. The company has already lost $268.1 million on a year-to-date basis.
Furthermore, Tilray has serious cash concerns that it's been addressing by selling stock via at-the-market offerings (just like Aurora) and converting debt to common stock. A little over a week ago, the company announced its intent to convert an aggregate of $197.2 million in convertible debt to stock. This will dramatically increase the company's outstanding share count and weigh heavily on its shareholders.
Operating as it does without a clear strategy, Tilray is no place for investors' hard-earned money.
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 – 11 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 Canadian licensed producer Aurora Cannabis (NYSE: ACB) should be a permanent fixture in this monthly column. The Marijuana Opportunity, Reinvestment, and Expungement Act would decriminalize cannabis at the federal level and impose a retail tax on legal weed sales. As the icing on the cake, Aurora continues to move back the goalposts for achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). | Aurora Cannabis Canadian licensed producer Aurora Cannabis (NYSE: ACB) should be a permanent fixture in this monthly column. Whether to finance acquisitions or internal expansion, Aurora has often sold its common stock to raise capital. Tilray A third marijuana stock that should be on investors' naughty list is Canadian licensed producer Tilray (NASDAQ: TLRY). | Aurora Cannabis Canadian licensed producer Aurora Cannabis (NYSE: ACB) should be a permanent fixture in this monthly column. Sundial Growers Another blazing-hot pot stock that investors would be smart to avoid in December is small-cap Sundial Growers (NASDAQ: SNDL). Tilray A third marijuana stock that should be on investors' naughty list is Canadian licensed producer Tilray (NASDAQ: TLRY). | Aurora Cannabis Canadian licensed producer Aurora Cannabis (NYSE: ACB) should be a permanent fixture in this monthly column. One of the more front-and-center issues for Sundial is that it'll likely need a reverse split to remain listed on the Nasdaq. That's a problem for a company that's reported a whopping CA$151.5 million in operating losses through the first nine months of 2020. |
37061.0 | 2020-12-03 00:00:00 UTC | 1 Marijuana Stock That Could Double Your Money | ACB | https://www.nasdaq.com/articles/1-marijuana-stock-that-could-double-your-money-2020-12-03 | nan | nan | The coronavirus pandemic has wreaked havoc across the globe, and while some businesses are slowly returning to normal, most sectors have suffered huge losses.
Surprisingly, the marijuana sector isn't one of them. The pandemic increased demand for both medical and recreational cannabis, and marijuana was declared an "essential item" during lockdowns. That boosted revenues for U.S. cannabis companies in particular.
Their Canadian counterparts also saw rising revenue numbers, but Canada is still challenged by a lack of legal stores, which has led to supply issues and increased competition from the black market. The most popular players, Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB), had already seen a lot of damage in 2019; this year, both companies are making desperate attempts to recapture the market. Canopy, in particular -- while it is struggling -- has much brighter prospects than most of its peers. Its revenue is even growing, albeit not rapidly, and not enough to show (yet) on the bottom line.
But management at Canopy is making efforts to reduce costs and achieve profitability. The company has exited operations in South Africa and Lesotho and closed some facilities in Canada, Colombia, and New York in April. This former favorite has a high likelihood of recovery, potentially bringing it back to the forefront of the cannabis market again. Let's take a look at how that could happen.
Image source: Getty Images.
Cannabis derivatives are the key to Canopy's future
In its second quarter, which ended Sept. 30, Canopy's revenue was up mostly because of demand for its recreational products. Its Canadian adult-use cannabis revenue rose by 15.5%, which helped the total reported revenue jump 77% year over year to 135.3 million Canadian dollars.
The credit for the increase in recreational revenue can be given to the company's new cannabis derivatives products. Cannabis derivatives (vapes, edibles, concentrates, beverages, and more) were legalized in Canada as part of "Cannabis 2.0" in October 2019. Since then, Canopy has launched a wide range of products to capture this market.
Its cannabis beverages, in particular, have garnered excellent reviews, according to management. Canopy has shipped over 1.2 million cannabis beverages since late March, and management proudly announced in a press release that the company now has a 54% dollar market share with its five ready-to-drink tetrahydrocannabinol (THC) cannabis beverages. These products are offered under the Tweed, Houseplant, and DeepSpace brands.
Its strong financial backing is pushing it toward success
Canopy has a secret weapon in U.S. beverage giant Constellation Brands (NYSE: STZ), which is doing much of the company's heavy lifting. The businesses entered into a strategic partnership in October 2017, when the maker of Corona and Modelo beer, among other adult beverages, invested CA$245 million in Canopy. Since then, as a sign of faith in Canopy and the cannabis market's potential, Constellation has been increasing its stake in the company by exercising its warrants. It now holds a 38.6% stake.
Image source: Getty Images.
It's for this reason that despite a disastrous 2019 and a lack of profitability, Canopy is financially secure for now. At the end of the second quarter, Canopy had $1.7 billion in cash and short-term investments. Besides having Constellation's support, Canopy is also working on reducing its selling, general, and administrative expenses (SG&A) in a quest for positive EBITDA. The company managed to reduce its SG&A expenses in the quarter by 19%, to CA$147 million, from the prior-year period. That improved its EBITDA loss from CA$150.4 million in Q2 2020 to CA$85.7 million this quarter.
Canopy has two compelling partners to capture the U.S. market
The demand for dried cannabis is high, no doubt. But cannabis derivatives have tremendous potential as well -- a Deloitte research report states that the market for these products could be worth CA$2 billion annually, out of which beverages alone could generate CA$529 million.
With just five types of cannabis-infused beverages launched since March, Canopy has already dominated by having acquired a 70% of Canada's market share, according to management. So imagine the growth when the beverage market reaches its full potential.
Andrew Rapsey, Global Head of Beverages at Canopy, made his views on the beverage market clear. He said, "We're very bullish on the drinks category, not only in Canada, but the U.S. I think we feel like we've found a proposition and a way forward that will grow our brands as well as grow the category."
A lack of legalization at the federal level in the U.S. has tied the company's hands for now. But with more and more states leaning toward legalization and a new administration entering the White House, 2022 could be the year marijuana is legalized on the national level.
For the U.S. cannabis beverage market, the company has a different strategy. Canopy aims to go lower on the THC dosage in the U.S., offering lower-calorie, and better-tasting products, targeting consumers who want to try cannabis but not in the traditional form (smoking and vaping). Mike Lee, CFO of Canopy, has also publicly discussed how the U.S. beverage market could eventually grow to a $60 billion market for THC. I believe this strategy could work out well for Canopy.
Canopy has two key partners to help it move forward if and when legalization happens. Constellation's wide network can help Canopy capture the U.S. market in cannabis-infused beverages, giving it an edge over competitors including Aurora, which hasn't been able to secure similar financial backing. Canopy's second-quarter results boosted its stock price, which is up 33% so far this year. Meanwhile, Aurora's shares have sunk 58%, much worse than the industry benchmark, the Horizons Marijuana Life Sciences ETF, which is down 0.57%.
CGC data by YCharts
There's also Canopy's acquisition deal with Acreage Holdings, which will be final if and when legalization happens in the U.S. Acreage will also be able to help Canopy market its diverse portfolio of beverages.
A strong financial backup, smart growth strategies, slow but growing revenue, effective cost-cutting strategies, and innovative derivative products are carving out Canopy's path to success. A little patience with this cannabis stock should bear fruit in 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 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. | The most popular players, Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB), had already seen a lot of damage in 2019; this year, both companies are making desperate attempts to recapture the market. Their Canadian counterparts also saw rising revenue numbers, but Canada is still challenged by a lack of legal stores, which has led to supply issues and increased competition from the black market. Constellation's wide network can help Canopy capture the U.S. market in cannabis-infused beverages, giving it an edge over competitors including Aurora, which hasn't been able to secure similar financial backing. | The most popular players, Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB), had already seen a lot of damage in 2019; this year, both companies are making desperate attempts to recapture the market. Its Canadian adult-use cannabis revenue rose by 15.5%, which helped the total reported revenue jump 77% year over year to 135.3 million Canadian dollars. A strong financial backup, smart growth strategies, slow but growing revenue, effective cost-cutting strategies, and innovative derivative products are carving out Canopy's path to success. | The most popular players, Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB), had already seen a lot of damage in 2019; this year, both companies are making desperate attempts to recapture the market. Cannabis derivatives are the key to Canopy's future In its second quarter, which ended Sept. 30, Canopy's revenue was up mostly because of demand for its recreational products. Canopy has shipped over 1.2 million cannabis beverages since late March, and management proudly announced in a press release that the company now has a 54% dollar market share with its five ready-to-drink tetrahydrocannabinol (THC) cannabis beverages. | The most popular players, Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB), had already seen a lot of damage in 2019; this year, both companies are making desperate attempts to recapture the market. Cannabis derivatives are the key to Canopy's future In its second quarter, which ended Sept. 30, Canopy's revenue was up mostly because of demand for its recreational products. For the U.S. cannabis beverage market, the company has a different strategy. |
37062.0 | 2020-12-03 00:00:00 UTC | Say Goodbye to Aurora Cannabis and Hello to These Hot Pot Stocks | ACB | https://www.nasdaq.com/articles/say-goodbye-to-aurora-cannabis-and-hello-to-these-hot-pot-stocks-2020-12-03 | nan | nan | Aurora Cannabis (NYSE: ACB) ranked by far as the best-performing marijuana stock in November. Shares of the Canadian cannabis producer skyrocketed nearly 160%. Even with this huge gain, though, Aurora stock is down more than 50% year to date.
It's a much different story for Curaleaf Holdings (OTC: CURLF) and GrowGeneration (NASDAQ: GRWG). Curaleaf's shares have jumped more than 70% so far this year, while GrowGeneration stock has skyrocketed more than 770%. Aurora remains one of the most popular marijuana stocks on the market, but it's time to say goodbye to Aurora Cannabis and hello to these two hot pot stocks.
Image source: Getty Images.
Why they're hot
Curaleaf and GrowGeneration have achieved tremendous success for similar reasons. The continued growth of the U.S. cannabis market has served as a big tailwind for both companies.
Multistate cannabis operators have enjoyed tremendous momentum in large states that have legalized marijuana in some form. Curaleaf, the biggest MSO, is certainly no exception. The company currently operates in 23 states, including the fast-growing recreational market in Illinois and Florida's booming medical cannabis market.
Acquisitions have partly fueled Curaleaf's growth. The biggest of these deals -- acquiring privately held multistate operator Grassroots in July 2020 -- made Curaleaf the largest cannabis company in the world based on revenue. It also made Curaleaf the most diversified vertically integrated cannabis operator in the U.S.
Meanwhile, GrowGeneration has emerged as one of the top pick-and-shovel cannabis stocks. The company ranks as the largest retail chain of specialty hydroponic and organic garden centers. GrowGeneration now has 36 stores that are go-to sources for U.S. cannabis producers.
As with Curaleaf, GrowGeneration's acquisitions have been key to its growth. Most recently, GrowGeneration completed the acquisition of The GrowBiz, the third-largest chain of hydroponic garden centers in the U.S.
Huge opportunities ahead
There were a couple of big cannabis stories during the U.S. elections last month that bode well for both Curaleaf and GrowGeneration. Four states voted to legalize recreational pot. Two states voted to legalize medical cannabis.
Curaleaf CEO Joseph Lusardi cited the upcoming launches of the recreational marijuana markets in Arizona and New Jersey as top growth drivers for his company. GrowGeneration CEO Darren Lampert also said that the Election Day results presented a growth opportunity.
The vote by New Jersey residents to legalize recreational marijuana in particular could have a ripple effect. It's more likely now that New York, Pennsylvania, and Connecticut could also legalize recreational pot in the not-too-distant future.
Neither Curaleaf nor GrowGeneration has to rely on new markets to continue generating strong growth. Curaleaf should have great prospects in the states where it currently operates, especially in Ohio, Illinois, Pennsylvania, and Florida. GrowGeneration can keep up its momentum simply by consolidating the highly fragmented hydroponic retail market.
Much better than Aurora
Are Curaleaf and GrowGeneration really better picks than Aurora Cannabis? Absolutely.
For one thing, both companies are in much stronger financial shape than Aurora. While Aurora's revenue increased by a minuscule amount in its latest quarter, Curaleaf and GrowGeneration delivered year-over-year revenue growth of 164% and 152%, respectively, in their most recent quarterly updates.
Aurora hopes to achieve positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in its next quarter. Curaleaf and GrowGeneration both already consistently generate positive adjusted EBITDA. GrowGeneration is profitable, while Curaleaf is close to turning a profit.
Perhaps most importantly, Curaleaf and GrowGeneration operate in the U.S. -- the biggest cannabis market in the world. At this point, Aurora can only dream of a day when it will be able to enter the lucrative U.S. market.
If you're looking for the most talked-about pot stock, buy Aurora. If you want the best chance to make money, Curaleaf and GrowGeneration are much better picks.
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 – 11 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 GrowGeneration. 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) ranked by far as the best-performing marijuana stock in November. The biggest of these deals -- acquiring privately held multistate operator Grassroots in July 2020 -- made Curaleaf the largest cannabis company in the world based on revenue. Curaleaf CEO Joseph Lusardi cited the upcoming launches of the recreational marijuana markets in Arizona and New Jersey as top growth drivers for his company. | Aurora Cannabis (NYSE: ACB) ranked by far as the best-performing marijuana stock in November. Multistate cannabis operators have enjoyed tremendous momentum in large states that have legalized marijuana in some form. The company currently operates in 23 states, including the fast-growing recreational market in Illinois and Florida's booming medical cannabis market. | Aurora Cannabis (NYSE: ACB) ranked by far as the best-performing marijuana stock in November. Aurora remains one of the most popular marijuana stocks on the market, but it's time to say goodbye to Aurora Cannabis and hello to these two hot pot stocks. Much better than Aurora Are Curaleaf and GrowGeneration really better picks than Aurora Cannabis? | Aurora Cannabis (NYSE: ACB) ranked by far as the best-performing marijuana stock in November. Aurora remains one of the most popular marijuana stocks on the market, but it's time to say goodbye to Aurora Cannabis and hello to these two hot pot stocks. Much better than Aurora Are Curaleaf and GrowGeneration really better picks than Aurora Cannabis? |
37063.0 | 2020-12-03 00:00:00 UTC | Should Investors Start Focusing On Cannabis Stocks Again? 3 For Your List | ACB | https://www.nasdaq.com/articles/should-investors-start-focusing-on-cannabis-stocks-again-3-for-your-list-2020-12-03 | nan | nan | Are These The Best Pot Stocks To Buy Right Now?
Cannabis stocks soared after receiving another shot in the arm on Wednesday. This came after the United Nations Office on Drugs and Crime voted to remove marijuana from Schedule IV of the 1961 Single Convention on Narcotic Drugs. The symbolic vote could encourage the U.S. to loosen laws on marijuana. Investors appear to be all fired-up to jump on to the once over-hyped industry. But this time, it could be different, and it is definitely less hype than it was in 2018. Let’s look at why the cannabis industry rose, fell, and then rose again.
“Congress may be moving slower than the cannabis industry would like, but it is moving faster than almost any other policy issue,” analyst Eric Assaraf said. “Not even the pandemic is derailing a House vote on the MORE Act scheduled for tomorrow, which would legalize cannabis.”
For starters, cannabis has been illegal at a federal level in the U.S. since 1970. However, due to the increasing popularity of legalization for both medical and recreational use, there has been a lot of speculation on federal legalization. As a result, there were too many investors looking for a quick buck that led to a bubble. And that bubble burst in 2019. From there, some of the top pot stocks in the world, including Curaleaf (CURLF Stock Report) and Aphria (APHA Stock Report) saw their value vanishing into the ether. Now, with a Biden presidency and the recent vote from the U.N., investors appear to be coming back in droves. This in effect led investors looking for the top pot stocks to buy right now. That said, do you have these pot stocks on your list?
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Top Pot Stocks To Buy [Or Avoid] Right Now: Aurora Cannabis
Aurora Cannabis (ACB Stock Report) led the rally in the cannabis space on Wednesday by closing 12.48% higher. Now, with ACB stock seems to be taking a breather, sliding 2.92% as of 9.51 a.m. ET, should investors buy the stocks as they dip? In the past month, ACB stock has made some investors rich, with its stock price up nearly 190%. The monstrous rally could be because ACB stock was very oversold. It seemed like a few catalysts in addition to a technical rebound were working in favor of ACB stock.
While the company had to write down billions in losses on its assets over the miscalculation of the supply and demand balance of Canada’s legal marijuana market, it didn’t take its mistakes lightly. The company has been working around the clock in restructuring its company. And investors are relieved that Aurora is on track to resize its operations. The cost-cutting measures appear to be working well. Investors may now be wondering if the company can leverage its existing assets to turn things around for the better.
Despite its strong gains in the past month, ACB stock is still trading at a low valuation. Currently, the company is trading at an undemanding 6 times revenue. With potential improvements in the company’s U.S. and Canadian operations, we could be looking at exciting times ahead. Nevertheless, we don’t know if it will be smooth sailing. The question is, would you be willing to bet on ACB stock now?
Top Pot Stocks To Buy [Or Avoid] Right Now: Tilray
Tilray (TLRY Stock Report) is a global leader in cannabis research, cultivation, processing, and distribution. The company is the first GMP (Good Manufacturing Practice)-certified medical cannabis producer to supply cannabis flower and extract to patients and researchers in over 5 continents. Tilray produces and controls products according to quality standards by being GMP certified. The company’s share price is up nearly 250% since the March lows.
The company announced its third-quarter fiscal on November 9. Tilray reports a total revenue increase of 2% year-over-year at $51.4 million. Its cannabis segment revenue increased by 4% and the company also saw a 13% increase in Adult-Use sales. The company also reported a cash flow of $155.2 million at the end of its third quarter.
Despite the less than stellar performance in its third quarter, the company sees a $150 billion market for the global cannabis industry. This huge prize could be within the company’s reach as it positions itself for further growth. For instance, the company has boosted its presence in the U.S. by acquiring Manitoba Harvest in 2019. Manitoba Harvest is the world’s largest hemp food manufacturer. Tilray is also targeting the European market as more countries move to legalize marijuana. With that in mind, will you consider having TLRY stock in your portfolio?
[Read More] Are These The Top Retail Stocks To Watch In December? 2 Report Earnings Today
Top Pot Stocks To Buy [Or Avoid] Right Now: Canopy Growth
Canopy Growth (CGC Stock Report) is also one of the top pot stocks to buy in recent months. The largest pot stock in the world has delivered quite a stellar return. CGC stock more than doubled since the beginning of October. After a strong rally of this magnitude, investors began to question if the rally could continue. But analysts from Bank of America, Bryan Spillane and Lisa Lewandowski raised the price target on CGC stock to $32.37 and maintained a “Buy” rating.
The analysts explained that potential changes to the US federal law on cannabis bode well for the overall cannabis industry. It could also benefit Canopy Growth significantly as it would enable the Smiths Falls, Canada-based company to expand its activities in the U.S. On top of that, being the biggest cannabis stock by market cap comes with its perks. Its close relationship with Constellation Brands (STZ Stock Report) comes to mind. You see, both companies could work together on higher-margin cannabis derivatives. In addition, there could be partnerships in terms of marketing and distribution. That could lead to better utilization of resources, leading to higher profitability.
Besides having a strong partner, Canopy Growth has a robust balance sheet with ample liquidity. At the end of September, the company had over $1.3 billion. That gives the company a lot of financial flexibility in comparison with its rivals. With a notable company as its major shareholder and strong balance sheet, should investors be buying CGC stock now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 2 Are Up By Over 200% Since March Top Pot Stocks To Buy [Or Avoid] Right Now: Aurora Cannabis Aurora Cannabis (ACB Stock Report) led the rally in the cannabis space on Wednesday by closing 12.48% higher. Now, with ACB stock seems to be taking a breather, sliding 2.92% as of 9.51 a.m. In the past month, ACB stock has made some investors rich, with its stock price up nearly 190%. | 2 Are Up By Over 200% Since March Top Pot Stocks To Buy [Or Avoid] Right Now: Aurora Cannabis Aurora Cannabis (ACB Stock Report) led the rally in the cannabis space on Wednesday by closing 12.48% higher. Now, with ACB stock seems to be taking a breather, sliding 2.92% as of 9.51 a.m. In the past month, ACB stock has made some investors rich, with its stock price up nearly 190%. | 2 Are Up By Over 200% Since March Top Pot Stocks To Buy [Or Avoid] Right Now: Aurora Cannabis Aurora Cannabis (ACB Stock Report) led the rally in the cannabis space on Wednesday by closing 12.48% higher. Now, with ACB stock seems to be taking a breather, sliding 2.92% as of 9.51 a.m. In the past month, ACB stock has made some investors rich, with its stock price up nearly 190%. | 2 Are Up By Over 200% Since March Top Pot Stocks To Buy [Or Avoid] Right Now: Aurora Cannabis Aurora Cannabis (ACB Stock Report) led the rally in the cannabis space on Wednesday by closing 12.48% higher. Now, with ACB stock seems to be taking a breather, sliding 2.92% as of 9.51 a.m. In the past month, ACB stock has made some investors rich, with its stock price up nearly 190%. |
37064.0 | 2020-12-03 00:00:00 UTC | CANADA STOCKS - TSX rises 0.32% to 17,413.49 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.32-to-17413.49-2020-12-03 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,413.49
* Leading the index were WSP Global Inc , up 11.6%, Labrador Iron Ore Royalty Corp LIF.TO, up 9.8%, and Descartes Systems Group Inc DSG.TO, higher by 6%.
* Lagging shares were ARC Resources Ltd ARX.TO, down 5.5%, Tourmaline Oil Corp TOU.TO, down 4.5%, and Ballard Power Systems Inc BLDP.TO, lower by 4.1%.
* On the TSX 142 issues rose and 77 fell as a 1.8-to-1 ratio favored advancers. There were 16 new highs and no new lows, with total volume of 199.3 million shares.
* The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Aurora Cannabis Inc ACB.TO and Air Canada AC.TO.
* The TSX's energy group .SPTTEN rose 0.64 points, or 0.7%, while the financials sector .SPTTFS climbed 0.44 points, or 0.1%.
* West Texas Intermediate crude futures CLc1 rose 0.84%, or $0.38, to $45.66 a barrel. Brent crude LCOc1 rose 1.02%, or $0.49, to $48.74 O/R
* The TSX is up 2.1% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Aurora Cannabis Inc ACB.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,413.49 * Leading the index were WSP Global Inc , up 11.6%, Labrador Iron Ore Royalty Corp LIF.TO, up 9.8%, and Descartes Systems Group Inc DSG.TO, higher by 6%. * Lagging shares were ARC Resources Ltd ARX.TO, down 5.5%, Tourmaline Oil Corp TOU.TO, down 4.5%, and Ballard Power Systems Inc BLDP.TO, lower by 4.1%. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Aurora Cannabis Inc ACB.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,413.49 * Leading the index were WSP Global Inc , up 11.6%, Labrador Iron Ore Royalty Corp LIF.TO, up 9.8%, and Descartes Systems Group Inc DSG.TO, higher by 6%. * The TSX's energy group .SPTTEN rose 0.64 points, or 0.7%, while the financials sector .SPTTFS climbed 0.44 points, or 0.1%. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Aurora Cannabis Inc ACB.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,413.49 * Leading the index were WSP Global Inc , up 11.6%, Labrador Iron Ore Royalty Corp LIF.TO, up 9.8%, and Descartes Systems Group Inc DSG.TO, higher by 6%. * The TSX's energy group .SPTTEN rose 0.64 points, or 0.7%, while the financials sector .SPTTFS climbed 0.44 points, or 0.1%. | * The most heavily traded shares by volume were Suncor Energy Inc SU.TO, Aurora Cannabis Inc ACB.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,413.49 * Leading the index were WSP Global Inc , up 11.6%, Labrador Iron Ore Royalty Corp LIF.TO, up 9.8%, and Descartes Systems Group Inc DSG.TO, higher by 6%. * Lagging shares were ARC Resources Ltd ARX.TO, down 5.5%, Tourmaline Oil Corp TOU.TO, down 4.5%, and Ballard Power Systems Inc BLDP.TO, lower by 4.1%. |
37065.0 | 2020-12-02 00:00:00 UTC | Why Marijuana Stocks Are Smoking Hot Today | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-are-smoking-hot-today-2020-12-02 | nan | nan | What happened
Marijuana stocks went on a tear Wednesday, with shares of Aurora Cannabis (NYSE: ACB) rising 9.7%, Aphria (NASDAQ: APHA) going up 9.4%, and industry giant Canopy Growth (NASDAQ: CGC) gaining 5.7% through 12:30 p.m. EST.
You can thank the United Nations for that.
Image source: Getty Images.
So what
Earlier this morning, by a vote of 27 to 25, the United Nations Commission on Narcotic Drugs approved a decision to remove cannabis from Schedule IV of the U.N.'s 1961 Single Convention on Narcotic Drugs. In effect, although cannabis remains "a banned drug for non-medical use under UN law," reports Vice.com, it's now been officially differentiated from more dangerous drugs such as heroin, and it can be legally used as a medical treatment in countries signatory to the treaty.
Experts are calling the decision "a giant step toward the normalization of cannabis in medicine above all." As Marijuana Business Daily reported today, "countries that basically mirror the U.N. scheduling in their domestic legislation [can be expected to move toward] national descheduling and remove obstacles to use cannabis for medical and research purposes."
Now what
The U.N.'s decision seems to promise an immediate boost for stocks that supply marijuana for medicinal uses -- as do each of Aurora, Canopy, and Aphria. In time, it could even lead to full-scale legalization -- not just in the U.S., but around the world -- and marijuana investors are pretty high on that prospect, too.
Still, before marijuana investors get too excited about this news, here's what you need to know about how U.N. treaties work in practice: Basically, there are two kinds, those that "self-execute" (meaning that their provisions are binding upon countries once they sign the treaty) and those that do not self-execute.
The 1961 Single Convention on Narcotic Drugs, unfortunately, is one of the latter. And that means that, even among countries that have signed the convention, marijuana won't magically become "legal" overnight, even for medicinal purposes. Each country still needs to first write and pass amendments to its laws for this purpose before legalization can happen, and even among treaty signatories, there's no guarantee that they will do that.
Long story short, while today's news is good news for marijuana investors, don't expect it to have any immediate effect on sales, or on profits, for this still deeply unprofitable industry.
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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 went on a tear Wednesday, with shares of Aurora Cannabis (NYSE: ACB) rising 9.7%, Aphria (NASDAQ: APHA) going up 9.4%, and industry giant Canopy Growth (NASDAQ: CGC) gaining 5.7% through 12:30 p.m. EST. As Marijuana Business Daily reported today, "countries that basically mirror the U.N. scheduling in their domestic legislation [can be expected to move toward] national descheduling and remove obstacles to use cannabis for medical and research purposes." And that means that, even among countries that have signed the convention, marijuana won't magically become "legal" overnight, even for medicinal purposes. | What happened Marijuana stocks went on a tear Wednesday, with shares of Aurora Cannabis (NYSE: ACB) rising 9.7%, Aphria (NASDAQ: APHA) going up 9.4%, and industry giant Canopy Growth (NASDAQ: CGC) gaining 5.7% through 12:30 p.m. EST. So what Earlier this morning, by a vote of 27 to 25, the United Nations Commission on Narcotic Drugs approved a decision to remove cannabis from Schedule IV of the U.N.'s 1961 Single Convention on Narcotic Drugs. Long story short, while today's news is good news for marijuana investors, don't expect it to have any immediate effect on sales, or on profits, for this still deeply unprofitable industry. | What happened Marijuana stocks went on a tear Wednesday, with shares of Aurora Cannabis (NYSE: ACB) rising 9.7%, Aphria (NASDAQ: APHA) going up 9.4%, and industry giant Canopy Growth (NASDAQ: CGC) gaining 5.7% through 12:30 p.m. EST. So what Earlier this morning, by a vote of 27 to 25, the United Nations Commission on Narcotic Drugs approved a decision to remove cannabis from Schedule IV of the U.N.'s 1961 Single Convention on Narcotic Drugs. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Rich Smith has no position in any of the stocks mentioned. | What happened Marijuana stocks went on a tear Wednesday, with shares of Aurora Cannabis (NYSE: ACB) rising 9.7%, Aphria (NASDAQ: APHA) going up 9.4%, and industry giant Canopy Growth (NASDAQ: CGC) gaining 5.7% through 12:30 p.m. EST. As Marijuana Business Daily reported today, "countries that basically mirror the U.N. scheduling in their domestic legislation [can be expected to move toward] national descheduling and remove obstacles to use cannabis for medical and research purposes." Now what The U.N.'s decision seems to promise an immediate boost for stocks that supply marijuana for medicinal uses -- as do each of Aurora, Canopy, and Aphria. |
37066.0 | 2020-12-02 00:00:00 UTC | Marijuana Removed From United Nations List of Most Dangerous Drugs | ACB | https://www.nasdaq.com/articles/marijuana-removed-from-united-nations-list-of-most-dangerous-drugs-2020-12-02 | nan | nan | A United Nations (UN) commission has taken an important step in eliminating the legal stigma long associated with marijuana. On Wednesday, the Commission for Narcotic Drugs voted to remove it and cannabis resin from Schedule IV of the UN's Single Convention on Narcotic Drugs -- its classification for the world's most dangerous drugs.
The vote passed by a thin 27-to-25 margin with one abstention in the 53-member Commission.
While marijuana remains in the document, an international treaty intended to serve as a blueprint for law enforcement on drugs, it is now only in Schedule 1. This is reserved for substances that pose little threat.
lImage source: Getty Images.
The move was the most significant of a small set of votes the Commission took on cannabis based on recommendations from the World Health Organization (WHO) handed down in January 2019. A measure on deleting marijuana extracts and tinctures from Schedule 1 failed to pass.
The Single Convention essentially serves as a guideline, as it ultimately leaves drug laws and policy up to the member states. However, the UN is an influential organization, so its move on cannabis should support legalization efforts around the globe.
One Commission member, Canada, has already legalized marijuana entirely. As a result, some of the top names in publicly traded cannabis are based in the country, such as Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). Struggling with a host of issues in their industry, Canopy Growth, Aurora, and their peers are willing and eager to expand internationally when the legalization trend catches fire.
Not surprisingly, the shares of both companies were up significantly in mid-afternoon trading Wednesday. Canopy Growth was 5.8% higher, while Aurora was springing ahead by 10.3%; both were well outpacing the gains of the S&P 500 index.
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 – 11 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
Eric Volkman 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 a result, some of the top names in publicly traded cannabis are based in the country, such as Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). The move was the most significant of a small set of votes the Commission took on cannabis based on recommendations from the World Health Organization (WHO) handed down in January 2019. Struggling with a host of issues in their industry, Canopy Growth, Aurora, and their peers are willing and eager to expand internationally when the legalization trend catches fire. | As a result, some of the top names in publicly traded cannabis are based in the country, such as Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). On Wednesday, the Commission for Narcotic Drugs voted to remove it and cannabis resin from Schedule IV of the UN's Single Convention on Narcotic Drugs -- its classification for the world's most dangerous drugs. One Commission member, Canada, has already legalized marijuana entirely. | As a result, some of the top names in publicly traded cannabis are based in the country, such as Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). On Wednesday, the Commission for Narcotic Drugs voted to remove it and cannabis resin from Schedule IV of the UN's Single Convention on Narcotic Drugs -- its classification for the world's most dangerous drugs. 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. | As a result, some of the top names in publicly traded cannabis are based in the country, such as Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). The move was the most significant of a small set of votes the Commission took on cannabis based on recommendations from the World Health Organization (WHO) handed down in January 2019. The Single Convention essentially serves as a guideline, as it ultimately leaves drug laws and policy up to the member states. |
37067.0 | 2020-12-02 00:00:00 UTC | CANADA STOCKS - TSX rises 0.32% to 17,352.80 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.32-to-17352.80-2020-12-02 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,352.80
* Leading the index were Aurora Cannabis Inc , up 12.4%, Lightspeed POS Inc LSPD.TO, up 9.9%, and Aphria Inc APHA.TO, higher by 8.6%.
* Lagging shares were Transcontinental Inc TCLa.TO, down 5.1%, Ballard Power Systems Inc BLDP.TO, down 4.8%, and Lundin Mining Corp LUN.TO, lower by 4.3%.
* On the TSX 108 issues rose and 112 fell as a 1-to-1 ratio favored decliners. There were 6 new highs and no new lows, with total volume of 204.3 million shares.
* The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Suncor Energy Inc SU.TO.
* The TSX's energy group .SPTTEN rose 1.83 points, or 2.1%, while the financials sector .SPTTFS climbed 0.53 points, or 0.2%.
* West Texas Intermediate crude futures CLc1 rose 1.32%, or $0.59, to $45.14 a barrel. Brent crude LCOc1 rose 1.52%, or $0.72, to $48.14 O/R
* The TSX is up 1.7% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Suncor Energy Inc SU.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,352.80 * Leading the index were Aurora Cannabis Inc , up 12.4%, Lightspeed POS Inc LSPD.TO, up 9.9%, and Aphria Inc APHA.TO, higher by 8.6%. * Lagging shares were Transcontinental Inc TCLa.TO, down 5.1%, Ballard Power Systems Inc BLDP.TO, down 4.8%, and Lundin Mining Corp LUN.TO, lower by 4.3%. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Suncor Energy Inc SU.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,352.80 * Leading the index were Aurora Cannabis Inc , up 12.4%, Lightspeed POS Inc LSPD.TO, up 9.9%, and Aphria Inc APHA.TO, higher by 8.6%. * The TSX's energy group .SPTTEN rose 1.83 points, or 2.1%, while the financials sector .SPTTFS climbed 0.53 points, or 0.2%. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Suncor Energy Inc SU.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,352.80 * Leading the index were Aurora Cannabis Inc , up 12.4%, Lightspeed POS Inc LSPD.TO, up 9.9%, and Aphria Inc APHA.TO, higher by 8.6%. * The TSX's energy group .SPTTEN rose 1.83 points, or 2.1%, while the financials sector .SPTTFS climbed 0.53 points, or 0.2%. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Suncor Energy Inc SU.TO. * Lagging shares were Transcontinental Inc TCLa.TO, down 5.1%, Ballard Power Systems Inc BLDP.TO, down 4.8%, and Lundin Mining Corp LUN.TO, lower by 4.3%. * On the TSX 108 issues rose and 112 fell as a 1-to-1 ratio favored decliners. |
37068.0 | 2020-12-02 00:00:00 UTC | Forget Canopy Growth, Aurora Cannabis Is a Better Marijuana Stock | ACB | https://www.nasdaq.com/articles/forget-canopy-growth-aurora-cannabis-is-a-better-marijuana-stock-2020-12-02 | nan | nan | This November, pot stocks enjoyed renewed interest from investors. In a continuing scramble to see which company will capitalize on the recently legalized "cannabis 2.0" (derivatives) market in Canada, the United States' green wave also showed new life. Last month, voters in four states -- New Jersey, Arizona, South Dakota, and Montana -- cast their ballots to legalize recreational cannabis, and President-elect Joe Biden put decriminalization on his administration's agenda.
Two pot stocks investors are contemplating are Canopy Growth Corp (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). In the past month, both stocks made some investors rich, with the former up 54% and the latter on a monstrous rally that yielded a 154% gain. Many factors are pointing toward further gains for Aurora, and that Canopy may be overvalued. Let's take a look at them below.
Image source: Getty Images.
The quick case for Canopy Growth
Let's be honest: Canopy had a blowout quarter in its second quarter 2021, which ended Sept. 30. During this period, the company increased its revenue by a stunning 77% year over year to CA$135.3 million. At the same time, it expanded its gross margins from 5% to 19%. There was also a 57% improvement in the company's free cash flow, declining to a loss of $190.4 million per quarter.
Canopy Growth holds a dominant market share of 54% in the cannabis beverages industry. In addition, it managed to improve its standing in the Canadian recreational cannabis market by increasing its industry weight to 15.5%, a two-percentage-point improvement over first-quarter 2021.
In context, however, Canopy Growth's potential is mostly priced-in. Right now, the stock trades at a whopping 28 times sales, making it one of the most expensive stocks in the entire North American cannabis industry. Those with a value mindset, or those who just don't like to pay a high premium for good growth stocks, should take a look at its cheaper cousin, Aurora Cannabis, instead.
Why Aurora Cannabis is better
Aurora Cannabis' stock is very oversold. In 2019, the company expanded its production capacity to over 500,000 kilograms of cannabis per year. As of Q1 2021 (ended Sept. 30), however, the company found there was only demand for about 64,000 kilograms of its pot each year. Due to dramatically miscalculating the supply-and-demand balance of Canada's legal cannabis market, Aurora had to write down billions in losses on its assets.
One thing that amazes me about Aurora, however, is the speed of its turnaround. After a series of facility closures and lay-offs, Aurora is on track to resize its operations. In Q1 2021, its revenue decreased slightly to CA$67.8 million. However, the company managed to post an adjusted gross margin of 52%, far better than Canopy Growth's 19%.
Aurora cut its sales, general, and administrative (SG&A) expenses from CA$100 million per quarter to CA$43 million per quarter within the span of a year. Its operating loss adjusted for non-cash items (EBITDA) stands at only CA$10.5 million.
These cost-cutting measures are working well. They are aided by the fact that Aurora is slowly realizing new sales potential. In May, the company acquired U.S. cannabidiol (CBD) producer, Reliva. This subsidiary holds the top-selling cannabinoid topical cream and the second most popular CBD brands overall (by some measures) in the nation. Before its acquisition, Reliva brought in about $10 million per year in sales.
Reliva's products are available online and in over 20,000 retail locations. Nearly half of America's biggest convenience stores sell the company's CBD. As more and more states join the legalization bandwagon, one should expect Reliva's sales (and, by proxy, Aurora's) to accelerate in the near future.
The biggest edge Aurora has over Canopy Growth is its valuation. Right now, the company only trades at 5.9 times revenue and 1.2 times net assets. As its U.S. revenue segment improves and its Canadian operations bleed less and less cash, I'd expect Aurora stock to rally sharply and enrich investors much more than 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
Zhiyuan Sun owns shares of Canopy Growth. 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. | Two pot stocks investors are contemplating are Canopy Growth Corp (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). In a continuing scramble to see which company will capitalize on the recently legalized "cannabis 2.0" (derivatives) market in Canada, the United States' green wave also showed new life. Last month, voters in four states -- New Jersey, Arizona, South Dakota, and Montana -- cast their ballots to legalize recreational cannabis, and President-elect Joe Biden put decriminalization on his administration's agenda. | Two pot stocks investors are contemplating are Canopy Growth Corp (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). In addition, it managed to improve its standing in the Canadian recreational cannabis market by increasing its industry weight to 15.5%, a two-percentage-point improvement over first-quarter 2021. Due to dramatically miscalculating the supply-and-demand balance of Canada's legal cannabis market, Aurora had to write down billions in losses on its assets. | Two pot stocks investors are contemplating are Canopy Growth Corp (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). Why Aurora Cannabis is better Aurora Cannabis' stock is very oversold. As its U.S. revenue segment improves and its Canadian operations bleed less and less cash, I'd expect Aurora stock to rally sharply and enrich investors much more than Canopy Growth. | Two pot stocks investors are contemplating are Canopy Growth Corp (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB). Why Aurora Cannabis is better Aurora Cannabis' stock is very oversold. The biggest edge Aurora has over Canopy Growth is its valuation. |
37069.0 | 2020-12-02 00:00:00 UTC | Are These The Top Marijuana Stocks To Buy As The U.S. and U.N. Vote On Cannabis Legalization? | ACB | https://www.nasdaq.com/articles/are-these-the-top-marijuana-stocks-to-buy-as-the-u.s.-and-u.n.-vote-on-cannabis | nan | nan | Are These The Best Marijuana Stocks To Buy Right Now?
Marijuana stocks have had an amazing run in the stock market this past month. Many of these stocks are still on a post-election high after Joe Biden was declared the winner of the U.S. Presidential Elections in early November. Today, however, could bring top marijuana stocks to even greater highs. A United Nations commission has just voted to remove marijuana for medical use from a category of the world’s most dangerous drugs that include heroin. The vote would pave the way for marijuana research and medical use.
This historic vote was carried out after a recommendation from the World Health Organization (WHO) to remove cannabis and cannabis resin from the list of Schedule IV drugs. This vote could also have far-reaching implications for the global medical cannabis industry. For instance, it would help legalization efforts in several countries. This could fuel the growth for pot stocks in 2021 and beyond. Furthermore, the U.S. House of Representatives announced a scheduled vote today on the Marijuana Opportunity Reinvestment and Expungement Act. The bill, known as the MORE Act, would decriminalize marijuana on the federal level and make a few other changes.
Generally, you could see that the industry has a lot going on in the past month itself. Pot stocks like Curaleaf Holdings (CURLF Stock Report) and Aurora Cannabis (ACB Stock Report) are up by 11% and 101% respectively in the last month. This growth could only be the beginning for the industry that has had a rather turbulent 2020 so far. With that in mind, here is a list of the top 3 marijuana stocks that could bring investors huge gains over the next few months.
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Best Marijuana Stocks To Buy [Or Sell]: Village Farms International
Village Farm International (VFF Stock Report) has had an amazing year in the stock market. The company holds the title of one of the largest vertically integrated greenhouse growers in North America. Its wholly-owned subsidiary, Pure Sunfarms is one of the single largest cannabis growing operations in the world. The company’s stock has almost doubled in the past month alone and is traded at $10.46 as of 10:00 a.m. ET.
The company has benefited significantly from the U.S. Election. Village Farm had also announced its third-quarter results last month, much to investors’ delight. The company reported a 79% increase in revenue of $17 million in this quarter. It also reported a net income of $2.5 million, which is a 200% increase year-over-year. This is certainly good news for the company and is the 7th consecutive quarter of positive net income. This is also unsurprising for Village Farm as Pure Sunfarms is one of Canada’s top retail cannabis suppliers. The company supplies its cannabis products to over 70% of the Canadian market.
Village Farm is also set to take on the U.S. market as the move to legalize marijuana in the U.S. is put into motion. It plans to become a vertically integrated leader in the U.S. hemp-derived Cannabidiol (CBD) market. It has so far established a joint venture with Village Fields Hemp USA for multi-state outdoor hemp cultivation and CBD extraction. As the company has shown strong financial growth, will you consider having VFF stocks on your watchlist?
Best Marijuana Stocks To Buy [Or Sell]: Canopy Growth Corporation
Another major player in the marijuana industry is Canopy Growth Corporation (CGC Stock Report). Canopy Growth is the first cannabis company to be publicly traded in North America. The company plays a vital role in advancing the world’s perception of cannabis by focussing on research, product development, and innovative production capabilities. The company’s shares are up by over 40% since the start of November.
In the company’s latest quarter fiscal posted in November, the company has shown stellar financial results. Canopy Growth has indeed seen strong growth and market share gains in its Canadian recreational business. It saw its net revenue grew by 77% to $104 million. This is due to notable gains in both recreational and medical segments. The company also expanded its gross margins to 19%.
The company is accelerating growth in the U.S. market. It has scalable brands and has a strategy to bring its Tetrahydrocannabinol (THC) brands into the U.S. market through Multi-State Operator (MSO) licensing or hemp-derived CBD extensions. Canopy Growth has also been gaining rave reviews for its edibles, vapes, and cannabis-infused beverages. The company holds a market share of 54% in the Canadian cannabis beverage market. Furthermore, the company is bringing senior leadership to help penetrate the U.S. market. With so many exciting developments surrounding Canopy Growth, will you have CGC stock in your portfolio?
[Read More] Are These The Top Retail Stocks To Watch In December? 2 Up 100%+ In The Past Month
Best Marijuana Stocks To Buy [Or Sell]: Tilray
Tilray (TLRY Stock Report) is the last marijuana stock on this list. The company is a global leader in cannabis research, cultivation, processing, and distribution. Tilray is also a Good Manufacturing Practice (GMP) – certified medical cannabis producer to supply cannabis flower and extract products. It boasts cultivation and production facilities that are among the most advanced in the world. TLRY stocks were up by about 35% in November alone.
The company had just reported its third-quarter results in November. Tilray had posted a revenue of $51.4 million in its latest quarter. This figure is supported by Adult-Use and International Medicine sales that grew by 26% and 42% respectively. The company also saw its total cannabis revenue increase by 24% excluding the year-over-year impact related to bulk sales. Tilray has a cash balance of $155.2 million and access to another $209 million on an at-the-market offering. This will provide sufficient capital and access to manage operations and execute its plans well into 2021.
Construction of the company’s Portuguese cultivation facility is currently ongoing and will be completed by the end of the fourth quarter of 2020. In September, Tilray noted that Australian researchers have published results indicating that one of its GMP-produced products may reduce nausea and vomiting for cancer patients undergoing chemotherapy. This could benefit the company’s sales in the long run. With that in mind, will TLRY stock be a top marijuana stock to buy before 2021?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Pot stocks like Curaleaf Holdings (CURLF Stock Report) and Aurora Cannabis (ACB Stock Report) are up by 11% and 101% respectively in the last month. Many of these stocks are still on a post-election high after Joe Biden was declared the winner of the U.S. Presidential Elections in early November. A United Nations commission has just voted to remove marijuana for medical use from a category of the world’s most dangerous drugs that include heroin. | Pot stocks like Curaleaf Holdings (CURLF Stock Report) and Aurora Cannabis (ACB Stock Report) are up by 11% and 101% respectively in the last month. 3 Tech Stocks To Watch Before Friday Best Marijuana Stocks To Buy [Or Sell]: Village Farms International Village Farm International (VFF Stock Report) has had an amazing year in the stock market. Best Marijuana Stocks To Buy [Or Sell]: Canopy Growth Corporation Another major player in the marijuana industry is Canopy Growth Corporation (CGC Stock Report). | Pot stocks like Curaleaf Holdings (CURLF Stock Report) and Aurora Cannabis (ACB Stock Report) are up by 11% and 101% respectively in the last month. 3 Tech Stocks To Watch Before Friday Best Marijuana Stocks To Buy [Or Sell]: Village Farms International Village Farm International (VFF Stock Report) has had an amazing year in the stock market. Best Marijuana Stocks To Buy [Or Sell]: Canopy Growth Corporation Another major player in the marijuana industry is Canopy Growth Corporation (CGC Stock Report). | Pot stocks like Curaleaf Holdings (CURLF Stock Report) and Aurora Cannabis (ACB Stock Report) are up by 11% and 101% respectively in the last month. 3 Tech Stocks To Watch Before Friday Best Marijuana Stocks To Buy [Or Sell]: Village Farms International Village Farm International (VFF Stock Report) has had an amazing year in the stock market. Canopy Growth has indeed seen strong growth and market share gains in its Canadian recreational business. |
37070.0 | 2020-12-02 00:00:00 UTC | 3 Red Flags for Aurora Cannabis' Future | ACB | https://www.nasdaq.com/articles/3-red-flags-for-aurora-cannabis-future-2020-12-02 | nan | nan | Canada-based Aurora Cannabis (NYSE: ACB) had a disastrous 2019. Its stock price slid so far that the company risked being delisted from the New York Stock Exchange (which will boot a company if its price stays below $1 for long enough). Only a 1-for-12 reverse stock split in May saved it from that fate.
Of course, that financial sleight of hand did nothing to address its core issues. And despite some intense efforts in 2020, the company has failed to bounce back. Aurora's consistent inability to achieve positive earnings before income, tax, depreciation, and amortization (EBITDA) has left investors skeptical. Management did announce a new series of business transformation efforts in June to cut costs and conserve cash, but while those changes have helped bring costs down, they haven't been sufficient to make the company profitable yet.
Image source: Getty Images.
On Nov. 10, Aurora Cannabis delivered its first-quarter fiscal 2021 results, and the report only served to highlight its distressed condition. Although management has consistently assured investors that Aurora will achieve positive EBITDA in its fiscal second quarter (the end of which is just a month away), I still see a lot of red flags.
1. It isn't making progress with cannabis derivative products
Canada legalized "Cannabis 2.0" products in October 2019, allowing the sale of cannabis derivative products including vapes, edibles, concentrates, and beverages. Not long after, in December 2019, Aurora launched new lines of cannabis-infused edibles and some vape products.
But since then, the company has gone radio silent on the launch of any new products -- not a good sign. This is when Aurora should be pushing full tilt into the hot market for derivatives, which could boost its revenues considerably. One research report from Deloitte estimates that the cannabis derivatives market could be worth $2 billion Canadian annually.
In its fiscal Q1, which ended Sept. 31, net revenue from Aurora's consumer cannabis extract products was up by CA$3.6 million thanks to the sale of higher-margin products (including cannabis derivatives), but it wasn't enough to bring the company into the black. In fact, using the adjusted EBITDA metric, it rang up a loss of CA$57.8 million, compared with a loss of CA$33 million in the year-ago quarter.
Management's efforts at reducing its selling, general and administrative (SG&A) expenses did have an effect; SG&A came in at CA$44.3 million, compared to CA$58.8 million in Q4. However, the company will have to cut costs further and boost revenue significantly to reach profitability, and that will only be possible if it launches additional, innovative derivative products that stand out in the market.
Rival Canopy Growth (NASDAQ: CGC) is already garnering positive reviews for its edibles, vapes, and cannabis-infused beverages in particular. The cannabis-infused beverage market has major potential in Canada, according to Deloitte, which estimates it could generate CA$529 million annually. And the U.S. cannabis beverage market could grow to be worth $2.8 billion by 2025, according to Grand View Research.
2. It lacks a deep-pocketed partner
The popularity of cannabis and the potential of the market has grabbed the attention of many U.S. tobacco and alcohol companies. Beverage giant Constellation Brands (NYSE: STZ) has a large investment in Canopy Growth, tobacco company Altria Group holds a stake in Cronos Group, and HEXO has a partnership with beverage company Molson Coors. However, Aurora Cannabis hasn't been able to land such a deal, which is worrisome.
The cannabis industry is still evolving, and a strong financial partnership with an established company not only would have kept Aurora's pockets full but also could have helped it increase its U.S. footprint. The global legal cannabis market could be worth $74 billion by 2027, according to Grand View Research, with estimates from New Frontier Data suggesting that the U.S. alone could generate annual revenue of $38 billion by 2025. The fact that no larger company has expressed interest in partnering with Aurora to go after these huge numbers demonstrates a general lack of faith in its business.
Image source: Getty Images.
In contrast, Constellation started with an initial investment of CA$245 million in Canopy in October 2017, and has been increasing its stake since then by exercising warrants -- a signal of its trust in Canopy's potential. Thanks to Constellation's investment, Canopy ended the quarter with CA$1.7 billion in cash and short-term investments that it can use to fuel its growth. The investment has also given investors greater confidence in Canopy. As of Nov. 29, its stock price was up 37.5% year to date. Meanwhile, Aurora's shares had lost about 59% of their value. The industry-tracking Horizons Marijuana Life Sciences ETF, meanwhile, was off by just 0.57%.
ACB data by YCharts
3. It's failing to live up to its promises
This year, when Aurora started making drastic changes to its business, its main target was to achieve positive EBITDA by its fiscal fourth quarter, which ended in June. But it failed. Then, management said the company would achieve that goal by the second quarter of fiscal 2021. That period ends on Dec. 31, and I don't see it happening. Investors expected more from the new management team, which is led by CEO Miguel Martin. Martin previously served as CEO of Reliva, a seller of hemp-derived CBD products that Aurora acquired in May for $40 million worth of its common stock.
A disturbing pattern has developed here. In May 2019, management made similar assurances, saying the company was on track to achieve positive EBITDA by the fourth quarter of fiscal 2019. It failed, and its losses just kept increasing. Investors are understandably hesitant to trust in a management team that consistently misses its targets and appears to lack any clear plan for the future.
Its failure to launch more derivative products, its slow-growing revenue, an insufficiently urgent cost-cutting strategy, and the lack of progress under its new management team all add to my skepticism. It would be wise for investors to steer clear of this marijuana company until it shows some positive 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 – 11 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. | Canada-based Aurora Cannabis (NYSE: ACB) had a disastrous 2019. ACB data by YCharts 3. It's failing to live up to its promises This year, when Aurora started making drastic changes to its business, its main target was to achieve positive EBITDA by its fiscal fourth quarter, which ended in June. | Canada-based Aurora Cannabis (NYSE: ACB) had a disastrous 2019. ACB data by YCharts 3. It isn't making progress with cannabis derivative products Canada legalized "Cannabis 2.0" products in October 2019, allowing the sale of cannabis derivative products including vapes, edibles, concentrates, and beverages. | Canada-based Aurora Cannabis (NYSE: ACB) had a disastrous 2019. ACB data by YCharts 3. It isn't making progress with cannabis derivative products Canada legalized "Cannabis 2.0" products in October 2019, allowing the sale of cannabis derivative products including vapes, edibles, concentrates, and beverages. | Canada-based Aurora Cannabis (NYSE: ACB) had a disastrous 2019. ACB data by YCharts 3. It isn't making progress with cannabis derivative products Canada legalized "Cannabis 2.0" products in October 2019, allowing the sale of cannabis derivative products including vapes, edibles, concentrates, and beverages. |
37071.0 | 2020-12-02 00:00:00 UTC | CANADA STOCKS-TSX flat as losses in metal miners offset vaccine cheer | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-flat-as-losses-in-metal-miners-offset-vaccine-cheer-2020-12-02 | nan | nan | Adds details, updates prices
Dec 2 (Reuters) - Canada's main stock index traded flat on Wednesday, as losses in heavyweight mining and utilities stocks outweighed optimism over a quick economic recovery after Britain approved a COVID-19 vaccine.
* At 10:31 a.m. ET (1531 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 9.4 points, or 0.05%, at 17,306.33.
* U.S. crude CLc1 prices were up 0.9% a barrel, while Brent crude LCOc1 added 0.8% as investors awaited a pact from producers on output, which many traders expect will continue to be reined in. O/R
* Britain on Wednesday became the first country in the world to approve the Pfizer-BioNTech COVID-19 vaccine for use, saying it would start rolling it out early next week.
* Canadian labor productivity fell by a record 10.3% in the third quarter as hours worked rebounded faster than business output.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 0.1% as base metal prices retreated from recent highs. MET/L
* The energy sector .SPTTEN climbed 1%, while the utilities sector .GSPTTUT sank 0.9%.
* The financials sector .SPTTFS gained 0.1%. Royal Bank of Canada RY.TO and National Bank of Canada NA.TO beat expectations for fourth-quarter profit on lower-than-expected provisions to cover potential loan losses.
* On the TSX, 92 issues were higher, while 124 issues declined for a 1.35-to-1 ratio to the downside, with 62.80 million shares traded.
* The largest percentage gainers on the TSX were Blackberry Ltd BB.TO, which jumped 13.8%, adding to more than 19% rally on Tuesday and Lightspeed Pos Inc LSPD.TO, which rose 8.9% after brokerages raised their price targets on the stock.
* Methanex Corp MX.TO fell 3.9%, the most on the TSX. The second biggest decliner was Firstservice Corp FSV.TO, down 3.1%.
* The most heavily traded shares by volume were Blackberry Ltd BB.TO; Zenabis Global Inc ZENA.TO, which was flat and Aurora Cannabis ACB.TO, up 1.8%.
* The TSX posted three new 52-week highs and no new lows.
* Across all Canadian issues there were 13 new 52-week highs and four new lows, with total volume of 110.51 million shares.
(Reporting by Ambar Warrick and Devik Jain in Bengaluru; Editing by Shailesh Kuber)
((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net; Twitter: @AmbarWarrick))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO; Zenabis Global Inc ZENA.TO, which was flat and Aurora Cannabis ACB.TO, up 1.8%. O/R * Britain on Wednesday became the first country in the world to approve the Pfizer-BioNTech COVID-19 vaccine for use, saying it would start rolling it out early next week. * Canadian labor productivity fell by a record 10.3% in the third quarter as hours worked rebounded faster than business output. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO; Zenabis Global Inc ZENA.TO, which was flat and Aurora Cannabis ACB.TO, up 1.8%. Adds details, updates prices Dec 2 (Reuters) - Canada's main stock index traded flat on Wednesday, as losses in heavyweight mining and utilities stocks outweighed optimism over a quick economic recovery after Britain approved a COVID-19 vaccine. * On the TSX, 92 issues were higher, while 124 issues declined for a 1.35-to-1 ratio to the downside, with 62.80 million shares traded. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO; Zenabis Global Inc ZENA.TO, which was flat and Aurora Cannabis ACB.TO, up 1.8%. Adds details, updates prices Dec 2 (Reuters) - Canada's main stock index traded flat on Wednesday, as losses in heavyweight mining and utilities stocks outweighed optimism over a quick economic recovery after Britain approved a COVID-19 vaccine. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 0.1% as base metal prices retreated from recent highs. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO; Zenabis Global Inc ZENA.TO, which was flat and Aurora Cannabis ACB.TO, up 1.8%. Adds details, updates prices Dec 2 (Reuters) - Canada's main stock index traded flat on Wednesday, as losses in heavyweight mining and utilities stocks outweighed optimism over a quick economic recovery after Britain approved a COVID-19 vaccine. * On the TSX, 92 issues were higher, while 124 issues declined for a 1.35-to-1 ratio to the downside, with 62.80 million shares traded. |
37072.0 | 2020-12-01 00:00:00 UTC | Canadian pot producers may scale back in Europe - industry report | ACB | https://www.nasdaq.com/articles/canadian-pot-producers-may-scale-back-in-europe-industry-report-2020-12-01-0 | nan | nan | By Shariq Khan
Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, two industry consultants said in a report released on Tuesday.
Depending on the pace of legalization, the market for European cannabis could grow at a compound annual rate of 52% for the next five years, hitting $3.1 billion in sales by 2025, research firm Brightfield Group and consultancy Hanway Associates said.
They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America.
"Though they remain a tremendous force in Europe, forward momentum among (Canadian) liquidity providers will slow in the future, especially in newer or smaller markets," the consultants said, adding this would give more room for European players.
Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive.
Aurora, Aphria and Tilray already have production or distribution networks in countries like Germany and Denmark, and may not need additional investment, the report said.
When asked if Aurora was cutting investments in Europe, the company's managing director for the UK & Ireland, Don Perrott, said, "We have not changed our view that this market represents a significant opportunity, despite slower-than-expected growth to date across many EU member states."
"Europe remains a core part of Aurora's growth strategy and we are constantly evaluating opportunities to expand our business in the region," Perrott said.
Aphria's chief strategy officer, Denise Faltischek, echoed a similar view, saying the company believes that the EU continues to hold "many exciting growth opportunities".
(Reporting by Shariq Khan in Bengaluru; Editing by Anil D'Silva and Sriraj Kalluvila)
((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780, outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. By Shariq Khan Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, two industry consultants said in a report released on Tuesday. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive. | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive. When asked if Aurora was cutting investments in Europe, the company's managing director for the UK & Ireland, Don Perrott, said, "We have not changed our view that this market represents a significant opportunity, despite slower-than-expected growth to date across many EU member states." | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. By Shariq Khan Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, two industry consultants said in a report released on Tuesday. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive. | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. By Shariq Khan Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, two industry consultants said in a report released on Tuesday. Depending on the pace of legalization, the market for European cannabis could grow at a compound annual rate of 52% for the next five years, hitting $3.1 billion in sales by 2025, research firm Brightfield Group and consultancy Hanway Associates said. |
37073.0 | 2020-12-01 00:00:00 UTC | Why Marijuana Stocks Are All Over the Map Tuesday | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-are-all-over-the-map-tuesday-2020-12-01 | nan | nan | What happened
The election is over. Joe Biden and Kamala Harris have won. In a few short weeks, we're scheduled to inaugurate an administration whose stated policy is to "decriminalize marijuana, and ... expunge the records of those who have been convicted of marijuana" on a national level.
You might think that now that the election has been settled, marijuana stocks would go on a tear, rising inexorably and never looking back -- but in fact, as of 12:40 p.m. EST today, they're all over the map:
Aurora Cannabis (NYSE: ACB) down 7%;
Aphria (NASDAQ: APHA) down 6.5%;
and Sundial Growers (NASDAQ: SNDL), a small-cap producer of marijuana for recreational use, swinging wildly -- surging 30% in the morning only to plunge 10% below yesterday's closing price closer to noon, and currently just about where it started the day, up a bare 0.2%.
Image source: Getty Images.
So what
What the heck are marijuana investors thinking? It's very hard to say, but here's what we do know.
Historically, Aurora Cannabis has been considered one of the bellwethers of the marijuana market, but this morning Aurora got its bell rung when the Canadian press reported that the company is laying off 30 workers and "indefinitely pausing operations" at one of its Alberta cannabis production facilities. CanadianManufacturing.com notes that Aurora is saying its production pause is necessary to "ensure all of its operations are a fit for its current and future business and to help the company adjust to recent shifts in the industry." That sounds reasonable -- but it also sounds like an expansion of Aurora's previous plans to lay off 700 workers and shut down production at five facilities across Saskatchewan, Ontario, Alberta, and Quebec.
And on top of this, Reuters is now reporting that other Canadian growers are looking to scale back investments in Europe, citing "pressure to cut costs and deliver profit."
Now what
This latest news could affect Aurora and Aphria directly, as the former operates a distribution network in Germany, while the latter has established production hubs in Denmark. But Reuters cites analysts worrying that the marijuana market may grow slower than expected "especially in newer or smaller markets" outside of Europe as well -- and right now, the newest market of all is the one that hasn't yet been legalized in the U.S.
When you take these media rumblings and combine it with the evident worries over profitability, and the fact that none of Aurora Cannabis, Aphria, or Sundial are currently anywhere near profitable, while all three of them are burning enormous amounts of cash -- $462 million, $222 million, and $113 million, respectively -- it's pretty clear now why marijuana investors are nervous:
Just because marijuana might soon be legal across the U.S. doesn't necessarily mean it will be profitable -- at all.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You might think that now that the election has been settled, marijuana stocks would go on a tear, rising inexorably and never looking back -- but in fact, as of 12:40 p.m. EST today, they're all over the map: Aurora Cannabis (NYSE: ACB) down 7%; Aphria (NASDAQ: APHA) down 6.5%; and Sundial Growers (NASDAQ: SNDL), a small-cap producer of marijuana for recreational use, swinging wildly -- surging 30% in the morning only to plunge 10% below yesterday's closing price closer to noon, and currently just about where it started the day, up a bare 0.2%. CanadianManufacturing.com notes that Aurora is saying its production pause is necessary to "ensure all of its operations are a fit for its current and future business and to help the company adjust to recent shifts in the industry." And on top of this, Reuters is now reporting that other Canadian growers are looking to scale back investments in Europe, citing "pressure to cut costs and deliver profit." | You might think that now that the election has been settled, marijuana stocks would go on a tear, rising inexorably and never looking back -- but in fact, as of 12:40 p.m. EST today, they're all over the map: Aurora Cannabis (NYSE: ACB) down 7%; Aphria (NASDAQ: APHA) down 6.5%; and Sundial Growers (NASDAQ: SNDL), a small-cap producer of marijuana for recreational use, swinging wildly -- surging 30% in the morning only to plunge 10% below yesterday's closing price closer to noon, and currently just about where it started the day, up a bare 0.2%. Historically, Aurora Cannabis has been considered one of the bellwethers of the marijuana market, but this morning Aurora got its bell rung when the Canadian press reported that the company is laying off 30 workers and "indefinitely pausing operations" at one of its Alberta cannabis production facilities. When you take these media rumblings and combine it with the evident worries over profitability, and the fact that none of Aurora Cannabis, Aphria, or Sundial are currently anywhere near profitable, while all three of them are burning enormous amounts of cash -- $462 million, $222 million, and $113 million, respectively -- it's pretty clear now why marijuana investors are nervous: Just because marijuana might soon be legal across the U.S. doesn't necessarily mean it will be profitable -- at all. | You might think that now that the election has been settled, marijuana stocks would go on a tear, rising inexorably and never looking back -- but in fact, as of 12:40 p.m. EST today, they're all over the map: Aurora Cannabis (NYSE: ACB) down 7%; Aphria (NASDAQ: APHA) down 6.5%; and Sundial Growers (NASDAQ: SNDL), a small-cap producer of marijuana for recreational use, swinging wildly -- surging 30% in the morning only to plunge 10% below yesterday's closing price closer to noon, and currently just about where it started the day, up a bare 0.2%. Historically, Aurora Cannabis has been considered one of the bellwethers of the marijuana market, but this morning Aurora got its bell rung when the Canadian press reported that the company is laying off 30 workers and "indefinitely pausing operations" at one of its Alberta cannabis production facilities. When you take these media rumblings and combine it with the evident worries over profitability, and the fact that none of Aurora Cannabis, Aphria, or Sundial are currently anywhere near profitable, while all three of them are burning enormous amounts of cash -- $462 million, $222 million, and $113 million, respectively -- it's pretty clear now why marijuana investors are nervous: Just because marijuana might soon be legal across the U.S. doesn't necessarily mean it will be profitable -- at all. | You might think that now that the election has been settled, marijuana stocks would go on a tear, rising inexorably and never looking back -- but in fact, as of 12:40 p.m. EST today, they're all over the map: Aurora Cannabis (NYSE: ACB) down 7%; Aphria (NASDAQ: APHA) down 6.5%; and Sundial Growers (NASDAQ: SNDL), a small-cap producer of marijuana for recreational use, swinging wildly -- surging 30% in the morning only to plunge 10% below yesterday's closing price closer to noon, and currently just about where it started the day, up a bare 0.2%. Historically, Aurora Cannabis has been considered one of the bellwethers of the marijuana market, but this morning Aurora got its bell rung when the Canadian press reported that the company is laying off 30 workers and "indefinitely pausing operations" at one of its Alberta cannabis production facilities. 10 stocks we like better than Aurora Cannabis Inc. |
37074.0 | 2020-12-01 00:00:00 UTC | Looking For The Top Marijuana Stocks To Buy In December 2020? 3 Names To Watch | ACB | https://www.nasdaq.com/articles/looking-for-the-top-marijuana-stocks-to-buy-in-december-2020-3-names-to-watch-2020-12-01 | nan | nan | Do You Have These 3 Top Marijuana Stocks On Your Watchlist?
It has been an interesting year for top marijuana stocks as the pot industry displayed great resilience. Unsurprisingly, marijuana stocks have also witnessed their fair share of volatility because of all the madness in the stock market this year. First, there has been an increase in the usage of marijuana when lockdown measures were put in place as reflected from the quarterly reports from cannabis companies. Next, a Biden administration may be more friendly toward initiatives for legalizing pot.
This is because he advocates strongly for marijuana decriminalization across the U.S. and will likely take measures to achieve this. In recent weeks, the marijuana industry appears to be showing a lot of activity on the stock market today. Could this signal that the top pot stocks to watch are making a comeback?
Can These Top Cannabis Stocks Continue To Rally?
The hype around marijuana stocks is apparent as many top marijuana stocks like Canopy Growth Corp (CGC Stock Report) are rising. At the same time, the current wave of interest seems to be extending towards marijuana penny stocks like Sundial Growers (SNDL Stock Report) which are up by nearly 100% on Monday’s intraday trading. This plays in favor of analysts projecting explosive long-term growth for this budding industry. According to New Frontier Data, the total U.S. sales of legalized adult-use and medical cannabis will hit $26.3 billion by 2025. Moreover, these estimates do not account for all the tailwinds poised towards the marijuana industry in 2020 as it was published in 2018.
Considering these points, could it be a good time for investors to make their entry into the marijuana market? Here is a list of top marijuana stocks to consider if you are thinking of doing so.
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Best Marijuana Stocks To Watch This Week: Aphria Inc
Aphria (APHA Stock Report) has been seeing heavy trading over the past week. Notably, its share price has seen gains of over 30% over the past 5 trading sessions and was up more than 60% in November alone. Aphria is among the largest marijuana cultivators in Canada. The company focuses on its sustainable, state-of-the-art greenhouses and cultivation operations, processing and distribution facilities, and first-class laboratories. By and large, all these are shaping Aphria to be a global leader in fully integrated cannabis production.
The company’s most recent quarter is putting APHA stock on investors’ radar. The company reported a 16% year-over-year increase in revenue. Gross profit rose by 65% from a year ago. Essentially, more people were staying at home due to coronavirus lockdown measures, driving demand for Aphria’s products. Certainly, one key aspect of Aphria’s business model sets it apart from the competition. It is important to realize that Aphria is a product-oriented company. This is clear as it owns several medicinal and recreational cannabis brands. These range from luxury cannabis products to even vaporizers. What else could possibly be putting this top marijuana stock in the limelight in recent weeks?
On November 30, Aphria finalized its deal to acquire craft beer producer SweetWater Brewing. SweetWater Brewing is a U.S. based craft brewer which focuses on the cannabis lifestyle business via its flagship “420” brand. You can see how this synergizes with Aphria’s business. More importantly, it provides a means for the company to penetrate the U.S. marijuana industry. This could be done through the use of pre-established distribution channels via SweetWater Brewing. Would this make APHA stock worth adding to your watchlist? You be the judge.
Best Marijuana Stocks To Watch This Week: Aurora Cannabis Inc
The second pot stocks to watch on this list is Aurora (ACB Stock Report). Aurora is a Canadian licensed cannabis producer. The company has eight licensed production facilities, five sales licenses, and operations across 25 countries. Significantly, Aurora has a large repertoire of medical and consumer brand marijuana-based products. Its share prices saw the greatest gains among top pot stocks in the past 5 trading sessions, surging more than 62% as of Monday’s closing. Let us take a closer look at this big name in the marijuana industry.
Surprisingly, Aurora’s recent quarter fiscal released in November painted a different picture. The company reported an 8% decrease in revenue year-over-year and a 39% increase in production costs in the same period. Admittedly, this is because Aurora was restructuring its business. This involved worker restructuring, consolidating production and increasing its available stocks to get additional funds. The company announced that it met selling, general, and administrative expenses (SG&A) and capital asset cost reduction targets. Furthermore, it also mentioned ongoing plans for facility rationalization and building a commercial platform that will generate sustainable and profitable revenue growth. Investors may now be wondering if Aurora can leverage its existing assets to turn things around for the better.
Earlier last week, it announced a strategic supply agreement with Cantek Holdings. Cantek is one of the leading medical cannabis companies in Israel. The deal involves Aurora supplying at least 8000kg of bulk dried flowers to Cantek over two years. In turn, the product will be processed and co-branded under both brand names on the Israeli market. Could this expansion on the international front be enough to make ACB stock a top marijuana stock to consider?
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Best Marijuana Stocks To Watch This Week: Cronos Group Inc
Finally, we have Cronos (CRON Stock Report). Cronos is a global cannabinoid (CBD) company with production and distribution channels across five continents. The company has a rather impressive portfolio filled with brands. This includes a global health and wellness platform, two adult-use brands, and three hemp-derived CBD brands. CRON stock jumped nearly 5% on Monday’s intraday trading and is up more than 22% from the past 5 trading sessions.
From its most recent quarterly report, the company appears to be doing relatively well in comparison with its industry rivals. The company reported a 96% increase in revenue on a year-over-year basis. The increase in revenue was primarily driven by two key markets. In detail, these were the adult-use Canadian cannabis market and the Israeli medical cannabis market. Additionally, it also reported a 143% year-over-year rise in net revenue across all brands and products in the U.S. This could be a good sign as recent legislative shifts in the U.S. could see the nationwide decriminalization of marijuana. Ultimately this could mean a massive stream of new customers for the company.
The company had a productive third quarter with several key developments. Cronos Israel received several key certifications required for the cultivation, production, and marketing of dried flowers, pre-rolled products, and oils in Israel. Furthermore, NatuEra which is backed by Cronos successfully imported hemp-derived CBD extract to the U.S. for business development and R&D purposes. With these solid moves and a mighty socio-political tailwind, would you say that CRON stock is a top marijuana stock to watch now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Marijuana Stocks To Watch This Week: Aurora Cannabis Inc The second pot stocks to watch on this list is Aurora (ACB Stock Report). Could this expansion on the international front be enough to make ACB stock a top marijuana stock to consider? Its share prices saw the greatest gains among top pot stocks in the past 5 trading sessions, surging more than 62% as of Monday’s closing. | Best Marijuana Stocks To Watch This Week: Aurora Cannabis Inc The second pot stocks to watch on this list is Aurora (ACB Stock Report). Could this expansion on the international front be enough to make ACB stock a top marijuana stock to consider? Best Marijuana Stocks To Watch This Week: Aphria Inc Aphria (APHA Stock Report) has been seeing heavy trading over the past week. | Best Marijuana Stocks To Watch This Week: Aurora Cannabis Inc The second pot stocks to watch on this list is Aurora (ACB Stock Report). Could this expansion on the international front be enough to make ACB stock a top marijuana stock to consider? The hype around marijuana stocks is apparent as many top marijuana stocks like Canopy Growth Corp (CGC Stock Report) are rising. | Best Marijuana Stocks To Watch This Week: Aurora Cannabis Inc The second pot stocks to watch on this list is Aurora (ACB Stock Report). Could this expansion on the international front be enough to make ACB stock a top marijuana stock to consider? Best Marijuana Stocks To Watch This Week: Aphria Inc Aphria (APHA Stock Report) has been seeing heavy trading over the past week. |
37075.0 | 2020-12-01 00:00:00 UTC | CANADA STOCKS-TSX jumps on record economic growth, vaccine optimism | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-jumps-on-record-economic-growth-vaccine-optimism-2020-12-01 | nan | nan | Adds details; updates prices
Dec 1 (Reuters) - Canada's main stock index jumped on Tuesday on data showing the economy grew at a record pace in the third quarter and signs that the first COVID-19 vaccine could be rolled out before the end of the year.
* At 09:54 a.m. ET (1454 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 238.79 points, or 1.39%, at 17,429.04.
* Canada's economy grew by a record 40.5% on an annualized basis, rebounding from a historic plunge in the second quarter, as businesses and stores reopened from COVID-19 lockdowns.
* Moderna MRNA.O and Pfizer-BioNTech PFE.N, BNTX.O both applied for emergency EU approval of their COVID-19 vaccines on Tuesday.
* On Monday, Canada's Liberal-led government forecast a historic C$381.6 billion deficit and pledged up to C$100 billion in stimulus spending to "jumpstart" the recovery, once the virus is under control.
* The energy sector .SPTTEN climbed 2.3%, while the industrials sector .GSPTTIN rose 0.8%.
* The financials sector .SPTTFS gained 1.9%, while the materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 2.4% as gold futures GCc1 rose 2% to $1,810.5 an ounce. GOL/MET/L
* On the TSX, 180 issues were higher, while 41 issues declined for a 4.39-to-1 ratio favoring gainers, with 39.18 million shares traded.
* The largest percentage gainer on the TSX was Blackberry Ltd BB.TO, which jumped 31.2% after teaming up with Amazon.com Inc AMZN.O on a new vehicle data and software platform, followed by Eldorado Gold ELD.TO, up 7.7%.
* Aurora Cannabis fell 3.7%, the most on the TSX, while the second-biggest decliner was Cronos Group Inc , down 3.3% after an industry report said Canadian pot producers may scale back their investments in Europe.
* The most heavily traded shares by volume were Bombardier B , down 7.6%; Hexo Corp , up 5.6% and Blackberry Ltd , up 31.2%.
* The TSX posted 12 new 52-week highs and no new lows.
* Across all Canadian issues there were 54 new 52-week highs and 4 new lows, with total volume of 84.40 million shares.
(Reporting by Devik Jain in Bengaluru; Editing by Aditya Soni)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details; updates prices Dec 1 (Reuters) - Canada's main stock index jumped on Tuesday on data showing the economy grew at a record pace in the third quarter and signs that the first COVID-19 vaccine could be rolled out before the end of the year. * Canada's economy grew by a record 40.5% on an annualized basis, rebounding from a historic plunge in the second quarter, as businesses and stores reopened from COVID-19 lockdowns. * Aurora Cannabis fell 3.7%, the most on the TSX, while the second-biggest decliner was Cronos Group Inc , down 3.3% after an industry report said Canadian pot producers may scale back their investments in Europe. | Adds details; updates prices Dec 1 (Reuters) - Canada's main stock index jumped on Tuesday on data showing the economy grew at a record pace in the third quarter and signs that the first COVID-19 vaccine could be rolled out before the end of the year. GOL/MET/L * On the TSX, 180 issues were higher, while 41 issues declined for a 4.39-to-1 ratio favoring gainers, with 39.18 million shares traded. * Across all Canadian issues there were 54 new 52-week highs and 4 new lows, with total volume of 84.40 million shares. | Adds details; updates prices Dec 1 (Reuters) - Canada's main stock index jumped on Tuesday on data showing the economy grew at a record pace in the third quarter and signs that the first COVID-19 vaccine could be rolled out before the end of the year. * The financials sector .SPTTFS gained 1.9%, while the materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 2.4% as gold futures GCc1 rose 2% to $1,810.5 an ounce. GOL/MET/L * On the TSX, 180 issues were higher, while 41 issues declined for a 4.39-to-1 ratio favoring gainers, with 39.18 million shares traded. | Adds details; updates prices Dec 1 (Reuters) - Canada's main stock index jumped on Tuesday on data showing the economy grew at a record pace in the third quarter and signs that the first COVID-19 vaccine could be rolled out before the end of the year. * On Monday, Canada's Liberal-led government forecast a historic C$381.6 billion deficit and pledged up to C$100 billion in stimulus spending to "jumpstart" the recovery, once the virus is under control. * Across all Canadian issues there were 54 new 52-week highs and 4 new lows, with total volume of 84.40 million shares. |
37076.0 | 2020-12-01 00:00:00 UTC | Why Marijuana Stock OrganiGram Holdings Tumbled by 9% on Tuesday | ACB | https://www.nasdaq.com/articles/why-marijuana-stock-organigram-holdings-tumbled-by-9-on-tuesday-2020-12-01 | nan | nan | What happened
Hardly a day goes by when at least one marijuana stock posts an outsized gain or a steep drop in price. One prominent example on Tuesday was Canada's OrganiGram Holdings (NASDAQ: OGI), which closed 9% lower.
So what
That reaction comes one day after OrganiGram released its Q4 of fiscal 2020 results, which all in all weren't particularly bad.
Image source: Getty Images.
Rather, OrganiGram on Tuesday seemed to fall victim to investor gloom that settled over marijuana stocks generally, with top names such as Aurora Cannabis and Aphria also declining. Outside of some restructuring news from Aurora, there wasn't much in the way of material developments to drive the sector down as a whole.
Investors might also be concerned about U.S. politics. While there is optimism that the incoming Biden administration might be more accommodating to cannabis companies, it's becoming apparent that it might -- at least initially -- have its hands full coping with a messy transition from the Trump era. Given their consistently money-losing ways, pot companies need all the legislative help they can get ASAP.
Now what
Marijuana stock investors know well that they have bought into a sector that is highly volatile, particularly on the cusp of a dramatic change in national leadership. Good or bad news, either sectorwide or company-specific, can really rock these stocks. On Tuesday there was no material change in OrganiGram's prospects for success, so believers in the company might do well to keep hanging on for the ride.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends OrganiGram Holdings. 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. | Rather, OrganiGram on Tuesday seemed to fall victim to investor gloom that settled over marijuana stocks generally, with top names such as Aurora Cannabis and Aphria also declining. While there is optimism that the incoming Biden administration might be more accommodating to cannabis companies, it's becoming apparent that it might -- at least initially -- have its hands full coping with a messy transition from the Trump era. 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. | What happened Hardly a day goes by when at least one marijuana stock posts an outsized gain or a steep drop in price. One prominent example on Tuesday was Canada's OrganiGram Holdings (NASDAQ: OGI), which closed 9% lower. Now what Marijuana stock investors know well that they have bought into a sector that is highly volatile, particularly on the cusp of a dramatic change in national leadership. | Rather, OrganiGram on Tuesday seemed to fall victim to investor gloom that settled over marijuana stocks generally, with top names such as Aurora Cannabis and Aphria also declining. Now what Marijuana stock investors know well that they have bought into a sector that is highly volatile, particularly on the cusp of a dramatic change in national leadership. 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. | One prominent example on Tuesday was Canada's OrganiGram Holdings (NASDAQ: OGI), which closed 9% lower. 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. The Motley Fool owns shares of and recommends OrganiGram Holdings. |
37077.0 | 2020-12-01 00:00:00 UTC | 3 Reasons to Buy Cresco Labs, and 1 Reason to Sell | ACB | https://www.nasdaq.com/articles/3-reasons-to-buy-cresco-labs-and-1-reason-to-sell-2020-12-01 | nan | nan | The coronavirus pandemic has dragged on revenue and profits across sectors and around the world. Surprisingly, the marijuana sector has been an exception; U.S. pot companies in particular have seen sky-high sales amid the crisis due to the growing demand for pot, both medical and adult-use. Cannabis, which was declared an essential item during lockdowns, is known to help with anxiety and stress.
And these businesses now have all the more reason to celebrate, as more states have been added to the legal cannabis list after November's elections. A total of 35 states and the District of Columbia have now made medical cannabis legal, while 15 states and D.C. have done so for recreational cannabis. This provides immense opportunities for U.S. cannabis companies to expand both their reach and their revenue. One such business, Illinois-based Cresco Labs (OTC: CRLBF), saw particularly impressive revenue growth in its third-quarter fiscal 2020 results, reported Nov. 18. Here are three reasons this stock is worth investing in for long-term returns, plus one potential reason to reconsider.
Image source: Getty Images.
Outstanding revenue growth
Cresco Labs' wide array of medical and recreational marijuana products are sold under the brand names Cresco, Reserve, Remedi, Good News, and High Supply. It operates through two segments, retail and wholesale. Being a vertically integrated multistate cannabis operator has been an upside for Cresco, allowing it to control its supply chain and avoid related problems amid the COVID-19 pandemic.
With a market cap of just over $2 billion, this company has solidified its footprint in nine U.S. states, with 15 production facilities holding 29 retail licenses. All this led to staggering revenue growth for the third quarter, in which sales were up a whopping 323% year over year, from $36.2 million to $153.2 million. The company saw growth in both wholesale revenue, which jumped as expanded capacity in Illinois and Pennsylvania and strong growth in California brought in more product, and retail revenue, with sequential same-store sales rising. Two new stores in Illinois have been particularly strong contributors to higher retail revenue.
Another quarter of positive EBITDA
Higher revenue and lower costs helped Cresco achieve another quarter of positive EBITDA (earnings before income, tax, depreciation, and amortization). Adjusted EBITDA jumped to a striking $52 million, up from $11 million in the year-ago period. The positive EBITDA can be attributed to lower SG&A (selling, general, and administrative) expenses, which were down to 30% of total revenue in Q3 from 70% the year before.
Consistent positive EBITDA shows that a company knows how to handle its operating expenses, and Cresco management's ongoing effort to reduce costs is demonstrated in its EBITDA numbers. Meanwhile, its Canadian counterparts Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) are struggling to keep costs lower and achieve positive EBITDA.
Financially stable enough to expand into new legal markets
Cresco's revenue growth is the result of some wise decisions For starters, investing in its home state proved fruitful. Illinois legalized recreational cannabis on Jan. 1, and recorded $40 million in legal recreational marijuana sales in that first month. In October, that figure was a record-breaking $100 million. The total from January through October is more than $500 million, and Cresco is taking advantage -- the company opened its tenth dispensary in the state in September amid this burgeoning market.
With a stable cash position and growing revenues and EBITDA, it shouldn't be hard for Cresco to expand into the states that legalized recreational marijuana in November (Arizona, Montana, New Jersey, and South Dakota). The company ended the third quarter with $58 million of cash and cash equivalents and no debt. Management also stated during theearnings callthat the cash balance includes $50 million in tenant improvement allowances (money provided by a landlord to cover a tenant's construction costs). Cresco plans to use these funds to expand cultivation facilities in Michigan, Massachusetts, and Ohio without the need to raise additional capital.
Its growth this year has helped bring its stock price new heights. So far this year, Cresco's stock has gained a whopping 50%, much better than industry benchmark Horizons Marijuana Life Sciences ETF's slight decline of 0.57%. For comparison, Aurora's stock has plummeted by 60% over the same period.
CRLBF data by YCharts
1 reason to sell Cresco Labs?
I can only find one potential downside to this exceptional pot stock: Marijuana is still not legal at a federal level in the U.S., which limits the market for companies like Cresco and makes it harder for them to raise capital. Though the legal state markets are booming, the U.S. cannabis industry won't reach its full potential until cannabis is legalized nationally. In the meantime, Cresco will need to work hard on further reducing costs to generate profits consistently.
That said, Cresco Labs is a vertically integrated cannabis company, and that control over its supply gives it an edge over peers. Cresco has proven its potential by not only surviving but thriving amidst the pandemic. Its remarkable revenue numbers, consistent positive EBITDA, and strong balance sheet make it an excellent cannabis pick for long-term returns.
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 – 11 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. 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. | Meanwhile, its Canadian counterparts Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) are struggling to keep costs lower and achieve positive EBITDA. Financially stable enough to expand into new legal markets Cresco's revenue growth is the result of some wise decisions For starters, investing in its home state proved fruitful. With a stable cash position and growing revenues and EBITDA, it shouldn't be hard for Cresco to expand into the states that legalized recreational marijuana in November (Arizona, Montana, New Jersey, and South Dakota). | Meanwhile, its Canadian counterparts Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) are struggling to keep costs lower and achieve positive EBITDA. Another quarter of positive EBITDA Higher revenue and lower costs helped Cresco achieve another quarter of positive EBITDA (earnings before income, tax, depreciation, and amortization). With a stable cash position and growing revenues and EBITDA, it shouldn't be hard for Cresco to expand into the states that legalized recreational marijuana in November (Arizona, Montana, New Jersey, and South Dakota). | Meanwhile, its Canadian counterparts Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) are struggling to keep costs lower and achieve positive EBITDA. Outstanding revenue growth Cresco Labs' wide array of medical and recreational marijuana products are sold under the brand names Cresco, Reserve, Remedi, Good News, and High Supply. With a stable cash position and growing revenues and EBITDA, it shouldn't be hard for Cresco to expand into the states that legalized recreational marijuana in November (Arizona, Montana, New Jersey, and South Dakota). | Meanwhile, its Canadian counterparts Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NYSE: ACB) are struggling to keep costs lower and achieve positive EBITDA. All this led to staggering revenue growth for the third quarter, in which sales were up a whopping 323% year over year, from $36.2 million to $153.2 million. The company saw growth in both wholesale revenue, which jumped as expanded capacity in Illinois and Pennsylvania and strong growth in California brought in more product, and retail revenue, with sequential same-store sales rising. |
37078.0 | 2020-12-01 00:00:00 UTC | CANADA STOCKS - TSX rises 0.66% to 17,303.51 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.66-to-17303.51-2020-12-01 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.66 percent to 17,303.51
* Leading the index were BlackBerry Ltd , up 20.5%, Torex Gold Resources Inc TXG.TO, up 11.9%, and Eldorado Gold Corp ELD.TO, higher by 10.6%.
* Lagging shares were Aurora Cannabis Inc ACB.TO, down 17.7%, Aphria Inc APHA.TO, down 9.3%, and Cronos Group Inc CRON.TO, lower by 8.4%.
* On the TSX 137 issues rose and 84 fell as a 1.6-to-1 ratio favored advancers. There were 16 new highs and no new lows, with total volume of 241.7 million shares.
* The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Aphria Inc APHA.TO.
* The TSX's energy group .SPTTEN fell 0.03 points, or 0.0%, while the financials sector .SPTTFS climbed 4.03 points, or 1.3%.
* West Texas Intermediate crude futures CLc1 fell 1.72%, or $0.78, to $44.56 a barrel. Brent crude LCOc1 fell 1.09%, or $0.52, to $47.36 O/R
* The TSX is up 1.4% for the year.
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 17.7%, Aphria Inc APHA.TO, down 9.3%, and Cronos Group Inc CRON.TO, lower by 8.4%. * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Aphria Inc APHA.TO. * West Texas Intermediate crude futures CLc1 fell 1.72%, or $0.78, to $44.56 a barrel. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 17.7%, Aphria Inc APHA.TO, down 9.3%, and Cronos Group Inc CRON.TO, lower by 8.4%. * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Aphria Inc APHA.TO. * The TSX's energy group .SPTTEN fell 0.03 points, or 0.0%, while the financials sector .SPTTFS climbed 4.03 points, or 1.3%. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Aphria Inc APHA.TO. * Lagging shares were Aurora Cannabis Inc ACB.TO, down 17.7%, Aphria Inc APHA.TO, down 9.3%, and Cronos Group Inc CRON.TO, lower by 8.4%. * The Toronto Stock Exchange's TSX rises 0.66 percent to 17,303.51 * Leading the index were BlackBerry Ltd , up 20.5%, Torex Gold Resources Inc TXG.TO, up 11.9%, and Eldorado Gold Corp ELD.TO, higher by 10.6%. | * The most heavily traded shares by volume were Blackberry Ltd BB.TO, Aurora Cannabis Inc ACB.TO and Aphria Inc APHA.TO. * Lagging shares were Aurora Cannabis Inc ACB.TO, down 17.7%, Aphria Inc APHA.TO, down 9.3%, and Cronos Group Inc CRON.TO, lower by 8.4%. * The Toronto Stock Exchange's TSX rises 0.66 percent to 17,303.51 * Leading the index were BlackBerry Ltd , up 20.5%, Torex Gold Resources Inc TXG.TO, up 11.9%, and Eldorado Gold Corp ELD.TO, higher by 10.6%. |
37079.0 | 2020-12-01 00:00:00 UTC | Cannabis Stocks Like Canopy Growth Could See Higher Highs | ACB | https://www.nasdaq.com/articles/cannabis-stocks-like-canopy-growth-could-see-higher-highs-2020-12-01 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cannabis stocks, like Canopy Growth (NASDAQ:CGC) stock, are seeing higher highs.
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Source: Jarretera / Shutterstock.com
In fact, over the last few weeks:
Canopy Growth jumped from $13.83 to a high of $27.70.
Aurora Cannabis (NYSE:ACB) ran from $4 to $9.41.
Cronos Group (NASDAQ:CRON) popped from $5.25 to $8.
Aphria (NASDAQ:APHA) ran from $4.30 to $6.84.
ETFMG Alternative Harvest (NYSE:MJ) popped from $10.50 to $14.36.
The buzz could very well last for some time. All on speculation President-elect Joe Biden could legalize cannabis at the federal level, and as more states approve its use. With patience, I strongly believe the CGC stock could rally back to $50.
Canopy Growth Just Moved to the Nasdaq
Helping, the stock just moved from the New York Stock Exchange to the Nasdaq composite, as of Nov. 13.
7 of the Best Cheap Stocks for December
“By making the move over to Nasdaq, we are joining some of the world’s leading companies that share our passion and focus for innovation,” said David Klein, Canopy Growth CEO. “Making the transition to Nasdaq also provides us with greater cost-effectiveness and access to a suite of tools and services that will help us connect more efficiently with our current and future investors.”
There’s a Good Deal of Support for Legalization
For one, Biden has already said he would, “decriminalize the use of cannabis and automatically expunge all prior cannabis use convictions,” as quoted by the Boston Globe. In addition, according to MarketWatch, Biden’s selection of Sen. Kamala Harris as his running mate is “modestly positive for cannabis, as she is an advocate for legalization.”
Plus, more states are legalizing cannabis.
For example, New Jersey, Montana and Arizona just approved amendments to legalize the use of cannabis for those above the age of 21. Voters in South Dakota approved it for medical use.
We also have to consider that the District of Columbia and 11 other states – Washington, Oregon, California, Nevada, Colorado, Michigan, Illinois, Maine, Vermont, Massachusetts and Alaska – all allow its recreational use now, too. Even better for related stocks, a Pew Research Center survey found that 67% of the U.S. supports legalization. A Gallup survey found that 66% of Americans are in favor of legalization.
Canopy Earnings Created a Lot of Buzz
The most recent earnings report from Canopy highlights a good deal of growth here. Revenues were up 77% year over year to CAD135.3 million, which beat expectations for CAD117.2 million. All thanks to an increase in recreational revenue, and strength in its vaporizer sales.
Gross margins improved 1,400bps to 19%. It also managed to increase its market share of the Canadian recreational market to 15.5%. In addition, Canopy Growth established a leadership position in the cannabis-infused beverage segment and opened another nine retail stores.
In the U.S. market, Canopy Growth launched its Martha Stewart-branded health and wellness CBD gummies, oil and soft gels, which helped generate significant media attention. Martha Stewart CBD products are also expanding into brick-and-mortar stores.
“We saw another quarter of improvement in our operating expense ratio while our marketing and R&D investments are being re-directed to drive sales,” added CFO Mike Lee. “Importantly, our end-to-end review has identified cost savings opportunities in the range of $150-$200 million across cost of goods sold, general and administrative expenses, and inventory, and efforts are underway to quickly capture value. Leveraging ongoing improvements across our business, we are accelerating our path to profitability, notably in our largest market, Canada.”
The Bottom Line With Canopy Growth
The buzz could very well last for some time for Canopy Growth. All on speculation Biden could legalize cannabis at the federal level, and as more states approve its use. That’s in addition to rapidly improving fundamentals, and growth in the U.S. and Canada.
Again, with patience, I strongly believe the CGC stock could rally back to $50.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
The post Cannabis Stocks Like Canopy Growth Could See Higher Highs 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 (NYSE:ACB) ran from $4 to $9.41. 7 of the Best Cheap Stocks for December “By making the move over to Nasdaq, we are joining some of the world’s leading companies that share our passion and focus for innovation,” said David Klein, Canopy Growth CEO. We also have to consider that the District of Columbia and 11 other states – Washington, Oregon, California, Nevada, Colorado, Michigan, Illinois, Maine, Vermont, Massachusetts and Alaska – all allow its recreational use now, too. | Aurora Cannabis (NYSE:ACB) ran from $4 to $9.41. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cannabis stocks, like Canopy Growth (NASDAQ:CGC) stock, are seeing higher highs. Canopy Growth Just Moved to the Nasdaq Helping, the stock just moved from the New York Stock Exchange to the Nasdaq composite, as of Nov. 13. | Aurora Cannabis (NYSE:ACB) ran from $4 to $9.41. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cannabis stocks, like Canopy Growth (NASDAQ:CGC) stock, are seeing higher highs. Canopy Growth Just Moved to the Nasdaq Helping, the stock just moved from the New York Stock Exchange to the Nasdaq composite, as of Nov. 13. | Aurora Cannabis (NYSE:ACB) ran from $4 to $9.41. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cannabis stocks, like Canopy Growth (NASDAQ:CGC) stock, are seeing higher highs. All on speculation Biden could legalize cannabis at the federal level, and as more states approve its use. |
37080.0 | 2020-12-01 00:00:00 UTC | Forget Aurora Cannabis, Cresco Labs Is a Better Marijuana Stock | ACB | https://www.nasdaq.com/articles/forget-aurora-cannabis-cresco-labs-is-a-better-marijuana-stock-2020-12-01 | nan | nan | The popular Canadian marijuana players have always been investors' favorites: Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) grabbed all the attention after Canada legalized recreational pot in October of 2018. These companies ramped up their production with rising demand in 2019. However, things went haywire when external headwinds caused a supply-and-demand imbalance, and 2020 has been a difficult year for both.
U.S. cannabis companies, on the other hand, are shining amid the coronavirus pandemic. Marijuana was labeled as an essential item in the U.S., and demand rose during lockdowns. Illinois-based pot company Cresco Labs (OTC: CRLBF) saw some explosive revenue numbers in its recent third quarter ended Sept. 30. Besides higher revenue, many other factors make this marijuana stock a much better choice than Aurora Cannabis. Let's take a look.
Image source: Getty Images.
Outstanding revenue growth
Cresco Labs serves the medical and recreational marijuana market under its brand names Cresco, Reserve, Remedi, Good News, and High Supply. It operates through two segments -- retail and wholesale. The retail segment includes its medical and adult-use products sold in the U.S., along with its nicotine vape products in Canada. In Q3, the wholesale segment contributed to 59% of total revenue while the retail space made up the remaining 41%.
Revenue grew a staggering 323% year over year from $36.2 million to $153.2 million in Q3. The wholesale segment jumped because of increased cultivation capacity in the key states of Illinois, Pennsylvania, and California. Retail revenue also saw an increase as sequential same-store sales grew. Two new stores in Illinois contributed to higher retail revenue as well.
Consistent positive EBITDA
The company's exceptional revenue growth helped it achieve another quarter of positive EBITDA (earnings before income, tax, depreciation, and amortization). Adjusted EBITDA rang in at a stunning $52 million, up from $11 million in the year-ago period.
Positive EBITDA also gives us an idea of how well a company is handling its operating expenses, which is one area where Aurora is struggling -- the company has yet to achieve positive EBITDA, and its costs keep piling up. That said, management does seem to be making efforts to reduce its SG&A (selling, general, and administrative) expenses. It will (hopefully) achieve its target of positive EBITDA by the second quarter of fiscal 2021. Meanwhile, Cresco is also working on reducing its SG&A to bring in profitability, with a sequential decline to 26% of total revenue in Q3 from 35% in Q2.
The outstanding numbers this quarter have also boosted Cresco's stock price. It's up 45% so far this year, while Aurora's stock has slumped 66%. Meanwhile, the industry benchmark, the Horizons Marijuana Life Sciences ETF, is down 7% over the same period.
CRLBF data by YCharts
Exciting expansion plans
Cresco has a market presence in nine U.S. states, with 15 production facilities holding 29 retail licenses. After the recent elections, four more states were added to the legal recreational list, making the total 15 and the District of Columbia. Meanwhile, two more states made it to the medical list, for a total of 34 plus D.C. That means Cresco now has more opportunities for expansion with a good cash balance on hand. It ended the third quarter with $58 million of cash and cash equivalents and no debt.
Despite the new markets, management doesn't want to shift its focus from the key areas in which it's already seen success, and it plans to continue expanding in those places, too. On the Q3earnings call management said that California market sales could reach $7 billion by 2025, and the state could be a key driver for the company.
While investors are still waiting to hear some positive news from Aurora, it might be worth taking a look at better options -- such as, say, Cresco Labs. The company has been doing well even within a limited legal market in the U.S., where there appears to be no end to demand for marijuana. A recent Gallup poll showed 68% of Americans are in favor of marijuana legalization.
A green light for federal legalization is expected by 2022 -- which would mean a wider market for Cresco. With outstanding rising revenues, continued positive EBITDA, and a stable balance sheet, it won't be difficult for Cresco Labs to capture a large share of the growing U.S. cannabis market.
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 – 11 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. 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 popular Canadian marijuana players have always been investors' favorites: Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) grabbed all the attention after Canada legalized recreational pot in October of 2018. CRLBF data by YCharts Exciting expansion plans Cresco has a market presence in nine U.S. states, with 15 production facilities holding 29 retail licenses. With outstanding rising revenues, continued positive EBITDA, and a stable balance sheet, it won't be difficult for Cresco Labs to capture a large share of the growing U.S. cannabis market. | The popular Canadian marijuana players have always been investors' favorites: Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) grabbed all the attention after Canada legalized recreational pot in October of 2018. Illinois-based pot company Cresco Labs (OTC: CRLBF) saw some explosive revenue numbers in its recent third quarter ended Sept. 30. Outstanding revenue growth Cresco Labs serves the medical and recreational marijuana market under its brand names Cresco, Reserve, Remedi, Good News, and High Supply. | The popular Canadian marijuana players have always been investors' favorites: Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) grabbed all the attention after Canada legalized recreational pot in October of 2018. Outstanding revenue growth Cresco Labs serves the medical and recreational marijuana market under its brand names Cresco, Reserve, Remedi, Good News, and High Supply. Positive EBITDA also gives us an idea of how well a company is handling its operating expenses, which is one area where Aurora is struggling -- the company has yet to achieve positive EBITDA, and its costs keep piling up. | The popular Canadian marijuana players have always been investors' favorites: Aurora Cannabis (NYSE: ACB) and Canopy Growth (NASDAQ: CGC) grabbed all the attention after Canada legalized recreational pot in October of 2018. The company has been doing well even within a limited legal market in the U.S., where there appears to be no end to demand for marijuana. With outstanding rising revenues, continued positive EBITDA, and a stable balance sheet, it won't be difficult for Cresco Labs to capture a large share of the growing U.S. cannabis market. |
37081.0 | 2020-12-01 00:00:00 UTC | Canadian pot producers may scale back in Europe -industry report | ACB | https://www.nasdaq.com/articles/canadian-pot-producers-may-scale-back-in-europe-industry-report-2020-12-01 | nan | nan | By Shariq Khan
Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, according to a joint report by two industry consultants on Tuesday.
Depending on the pace of legalization, the market for European cannabis could grow at a compound annual rate of 52% for the next five years, hitting $3.1 billion in sales by 2025, Chicago-based research firm Brightfield Group and London-based consultancy Hanway Associates said.
They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America.
"Though they remain a tremendous force in Europe, forward momentum among (Canadian) liquidity providers will slow in the future, especially in newer or smaller markets," the consultants said, adding this would give more room for European players.
Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive.
Aurora already has a distribution network in Germany, while Aphria Inc APHA.TO and Tilray TLRY.O have established major production hubs in Denmark and Portugal, and may not need additional investment, the report said.
When asked if Aurora was cutting investments in Europe, the company's managing director for the UK & Ireland, Don Perrott, said, "We have not changed our view that this market represents a significant opportunity, despite slower-than-expected growth to date across many EU member states."
"Europe remains a core part of Aurora's growth strategy and we are constantly evaluating opportunities to expand our business in the region," Perrott said.
(Reporting by Shariq Khan in Bengaluru; Editing by Anil D'Silva)
((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780, outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. Depending on the pace of legalization, the market for European cannabis could grow at a compound annual rate of 52% for the next five years, hitting $3.1 billion in sales by 2025, Chicago-based research firm Brightfield Group and London-based consultancy Hanway Associates said. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive. | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. By Shariq Khan Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, according to a joint report by two industry consultants on Tuesday. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive. | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. By Shariq Khan Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, according to a joint report by two industry consultants on Tuesday. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive. | They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc ACB.TO and Canopy Growth Corp WEED.TO - in trimming spending outside North America. By Shariq Khan Dec 1 (Reuters) - Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, according to a joint report by two industry consultants on Tuesday. Depending on the pace of legalization, the market for European cannabis could grow at a compound annual rate of 52% for the next five years, hitting $3.1 billion in sales by 2025, Chicago-based research firm Brightfield Group and London-based consultancy Hanway Associates said. |
37082.0 | 2020-12-01 00:00:00 UTC | Should You Invest $1,000 in These 3 Pot Stocks Today? | ACB | https://www.nasdaq.com/articles/should-you-invest-%241000-in-these-3-pot-stocks-today-2020-12-01 | nan | nan | Marijuana stocks got a much-needed boost from the results of the recent U.S. election. With the Biden administration set to take office amid key legalization victories in a handful of states, America could become a land of plenty for the cannabis industry -- but the majority of marijuana cultivators are far from being safe bets.
Many of the most-discussed companies in the industry are unprofitable despite rising revenue and falling costs. Others can't seem to strike the supply and demand balance in their home market while expanding internationally. Right now, there's no clear leader of the pack, though there are a handful of popular stocks that might be worthwhile. Let's take a close look a trio of these highly watched contenders to see which of the three could be a good stock to trust with $1,000.
Image source: Getty Images.
Aphria consistently reports positive earnings, but now it's in uncharted waters
Aphria (NASDAQ: APHA) has the distinction of being the only publicly traded and licensed cannabis company to have a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the entirety of the 2020 fiscal year. Given how much the industry as a whole seems to struggle with profitability, this suggests that Aphria is closer to business sustainability than most of its peers. It's also a sales leader thanks to its retail stores in the Canadian recreational cannabis market, in which it controls slightly more than 29% of the cannabis vaporizers segment.
In 2021, the company is preparing to expand its operations in Germany's medicinal market. Having launched its wellness brands in the country in Q4 2020, Aphria expects its first German harvest early in the new year. At the same time, Aphria is entering the American craft beer market through its acquisition of Sweetwater Brewing Company. Sweetwater makes cannabis-themed beers, and it may be Aphria's opening into the cannabis-infused beverages market in the future. This purchase, made at a cost of $300 million in cash and stock, will enable it to generate as much as CA $70 million in additional earnings each year, which will help finance the expansion of its cannabis brands.
Unfortunately, the acquisition is also why Aphria is a risky investment. Craft beer isn't something that has been established as one of the company's strengths, so the purchase could easily end up being a case of profit-burning "di-worse-ification". Nonetheless, if you're looking to invest in a marijuana stock, Aphria could be the best option at the moment thanks to its dedication to maintaining positive earnings.
Don't bet on Aurora's turnaround just yet
With a fresh CEO and a business transformation plan in full swing, Aurora Cannabis (NYSE: ACB) is working hard to turn its fortunes. Selling, general, and administrative (SG&A) expenses fell by 25% over the last quarter, as did research and development (R&D) costs. Making these cuts is something that management has prioritized, and it'll help the company reach profitability faster.
Like several of its competitors in the industry, Aurora is also trying to shift its business from low-margin product segments like unprocessed cannabis flower to higher-margin segments like vaporizers. The change seems beneficial so far, and its gross margins are slowly expanding, rising to 52% in the most recent quarter from 50% in the prior quarter. In the same period, its average net selling price per gram of cannabis increased by 4% while production costs remained constant, suggesting that its shift is proceeding as planned.
But the big picture is still far from ideal. Aurora's quarterly revenue is shrinking at 8% year over year. And, its free cash flow in the 2020 fiscal year was even worse than in 2019, with an outflow of $692.96 million. Avoid creating a new position in this stock until both free cash flow and revenue are reliably increasing for several quarters, preferably without debt rising at the same time.
Steady progress makes for a compelling future at Canopy Growth
Canopy Growth (NASDAQ: CGC) deserves the award for "most improved" cannabis company over the last three years. Free cash flow has grown by 57% compared to the same quarter last year. Notably, Canopy hasn't faced aggressive backslides with earnings in the way that some of its competitors have. Instead, it has simply continued along a consistent trajectory of revenue growth and diligent curbing of expenses. If dogs were investors, this last point is what would make their ears perk up.
But the company is still losing more than $190 million every three months, and its margins remain slim. In terms of its progress toward profitability, administrative expenses have fallen sharply, though there's still a long way to go.
Another positive factor is that it has large market shares in key growth regions. The company performs the best in its lineup of cannabis-infused beverages, where it holds 54% of the Canadian market. But it's also a major player in the German market, where it holds the top spot with its Spectrum Therapeutics brand. Next, it will take aim at the American market, where it has yet to reach its goal of a No. 1 or No. 2 position. So far, its Martha Stewart brand of cannabidiol (CBD) products is its newest offering, but its BioSteel cannabis beverages are also scheduled for wider distribution and faster revenue growth next year.
Between its consistent progress toward market share goals and quickly improving free cash flow, Canopy looks significantly better than Aurora and Aphria as an investment today. Companies with leading market shares aren't as risky as those without, and there isn't any situation in which steadily increasing financial strength is a bad thing. And, if Canopy plays its cards right, it'll continue to gain traction with its high-value recreational cannabis brands. Investors should still keep an eye on the profit margin's progress over time, but for now, there's an opportunity to get in before the crowd.
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 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. | Don't bet on Aurora's turnaround just yet With a fresh CEO and a business transformation plan in full swing, Aurora Cannabis (NYSE: ACB) is working hard to turn its fortunes. With the Biden administration set to take office amid key legalization victories in a handful of states, America could become a land of plenty for the cannabis industry -- but the majority of marijuana cultivators are far from being safe bets. In the same period, its average net selling price per gram of cannabis increased by 4% while production costs remained constant, suggesting that its shift is proceeding as planned. | Don't bet on Aurora's turnaround just yet With a fresh CEO and a business transformation plan in full swing, Aurora Cannabis (NYSE: ACB) is working hard to turn its fortunes. At the same time, Aphria is entering the American craft beer market through its acquisition of Sweetwater Brewing Company. Steady progress makes for a compelling future at Canopy Growth Canopy Growth (NASDAQ: CGC) deserves the award for "most improved" cannabis company over the last three years. | Don't bet on Aurora's turnaround just yet With a fresh CEO and a business transformation plan in full swing, Aurora Cannabis (NYSE: ACB) is working hard to turn its fortunes. Aphria consistently reports positive earnings, but now it's in uncharted waters Aphria (NASDAQ: APHA) has the distinction of being the only publicly traded and licensed cannabis company to have a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the entirety of the 2020 fiscal year. This purchase, made at a cost of $300 million in cash and stock, will enable it to generate as much as CA $70 million in additional earnings each year, which will help finance the expansion of its cannabis brands. | Don't bet on Aurora's turnaround just yet With a fresh CEO and a business transformation plan in full swing, Aurora Cannabis (NYSE: ACB) is working hard to turn its fortunes. Like several of its competitors in the industry, Aurora is also trying to shift its business from low-margin product segments like unprocessed cannabis flower to higher-margin segments like vaporizers. Aurora's quarterly revenue is shrinking at 8% year over year. |
37083.0 | 2020-11-30 00:00:00 UTC | Why Aurora Cannabis, Aphria, and HEXO Shares Rose Again Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-aphria-and-hexo-shares-rose-again-today-2020-11-30 | nan | nan | What happened
Several marijuana stocks have continued to move up today. Shares of Aurora Cannabis (NYSE: ACB), Aphria (NASDAQ: APHA), and HEXO (NYSE: HEXO) are up 15%, 8%, and 20% respectively, as of 2 p.m. EST.
While Aphria does have specific news that should fundamentally help the company, the moves are generally a continuation of a trend that has been ongoing since the Nov. 3 election.
So what
Canada-based marijuana producer Aphria announced today that it has closed on its previously announced acquisition of U.S. craft brewer SweetWater Brewing Company. But the overall upward trend in marijuana stocks has been due to the potential easing of restrictions the sector may see under a Biden administration.
Image source: Getty Images.
Pot stocks have gained momentum since the five states that had related ballot initiatives all passed them on Election Day. Prior to the election, during the vice presidential debate on Oct. 7, Kamala Harris said a Biden-Harris administration would "decriminalize marijuana and we will expunge the records of those who have been convicted of marijuana."
Since Election Day, shares of Aphria, HEXO, and Aurora are up between 60% and 140%, though only Aphria shares are in positive territory year to date.
Data by YCharts
Now what
Decriminalization of marijuana in the U.S. is likely still a long way off, even with the support of a Biden administration. But shares of the companies that would reap huge benefits continue to surge in a recovery triggered by the election.
Investors should still focus on the business results of each company. Aurora, for example, has been restructuring its business and raising capital this year as it incurred growing losses. Shareholder dilution, job cuts, and operation consolidation drove the stock down 75% for 2020 prior to Election Day. Last week, however, Aurora announced some positive progress with its first European delivery of medical marijuana directly from its European unit.
HEXO reported that it has seen revenue increase 23% sequentially and 76% year over year in its fiscal fourth quarter ended July 31, 2020. The $500 million market cap company also said it has $184 million in cash as of the end of the quarter.
Aphria's move into the craft brewing market is more significant fundamental news. It says it will use the $300 million acquisition to help expand its addressable market, utilizing SweetWater's U.S. infrastructure "to accelerate Aphria's entry into the U.S. ahead of federal legalization of cannabis to fuel sustainable profitable growth."
That is perhaps the most noteworthy bit of information for investors. But those looking to add pot stocks to their portfolio should consider it a speculative investment until there is much more clarity on the path toward decriminalization or full legalization in the U.S.
10 stocks we like better than Aurora Cannabis Inc.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends HEXO. 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 Aurora Cannabis (NYSE: ACB), Aphria (NASDAQ: APHA), and HEXO (NYSE: HEXO) are up 15%, 8%, and 20% respectively, as of 2 p.m. EST. While Aphria does have specific news that should fundamentally help the company, the moves are generally a continuation of a trend that has been ongoing since the Nov. 3 election. Pot stocks have gained momentum since the five states that had related ballot initiatives all passed them on Election Day. | Shares of Aurora Cannabis (NYSE: ACB), Aphria (NASDAQ: APHA), and HEXO (NYSE: HEXO) are up 15%, 8%, and 20% respectively, as of 2 p.m. EST. So what Canada-based marijuana producer Aphria announced today that it has closed on its previously announced acquisition of U.S. craft brewer SweetWater Brewing Company. Since Election Day, shares of Aphria, HEXO, and Aurora are up between 60% and 140%, though only Aphria shares are in positive territory year to date. | Shares of Aurora Cannabis (NYSE: ACB), Aphria (NASDAQ: APHA), and HEXO (NYSE: HEXO) are up 15%, 8%, and 20% respectively, as of 2 p.m. EST. Since Election Day, shares of Aphria, HEXO, and Aurora are up between 60% and 140%, though only Aphria shares are in positive territory year to date. But those looking to add pot stocks to their portfolio should consider it a speculative investment until there is much more clarity on the path toward decriminalization or full legalization in the U.S. 10 stocks we like better than Aurora Cannabis Inc. | Shares of Aurora Cannabis (NYSE: ACB), Aphria (NASDAQ: APHA), and HEXO (NYSE: HEXO) are up 15%, 8%, and 20% respectively, as of 2 p.m. EST. So what Canada-based marijuana producer Aphria announced today that it has closed on its previously announced acquisition of U.S. craft brewer SweetWater Brewing Company. Since Election Day, shares of Aphria, HEXO, and Aurora are up between 60% and 140%, though only Aphria shares are in positive territory year to date. |
37084.0 | 2020-11-30 00:00:00 UTC | FuelCell Energy, Aurora Cannabis Finish November Strong as Markets Sink | ACB | https://www.nasdaq.com/articles/fuelcell-energy-aurora-cannabis-finish-november-strong-as-markets-sink-2020-11-30 | nan | nan | The stock market had an amazingly strong November, and even a down day for the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) wasn't enough to stop the market from enjoying great returns for the month. By the end of trading, the Dow had risen by nearly 12% in November, matching the Nasdaq's rise and outpacing the roughly 11% gain for the S&P 500 for the month.
Today's stock market
INDEX
PERCENTAGE CHANGE (DECLINE)
POINT CHANGE
Dow
(0.91%)
(272)
S&P 500
(0.46%)
(17)
Nasdaq Composite
(0.06%)
(7)
Data source: Yahoo! Finance.
A couple of areas that have been extremely popular this month are electric vehicle technology and marijuana stocks. Monday continued the trend of strong performance in those areas. FuelCell Energy (NASDAQ: FCEL) saw its stock reach a new milestone, while Aurora Cannabis (NYSE: ACB) enjoyed a strong gain as investors start to look forward to 2021.
FuelCell charges up in November
FuelCell Energy finished higher by 5% on Monday. That brought the hydrogen fuel cell specialist's share price above the $10 mark for the first time since 2018. It also closed a month in which the company's stock jumped more than fivefold.
But the day wasn't free of volatility for shareholders. During the morning hours, FuelCell and its peers in the fuel cell industry seemed to react negatively to news that General Motors had decided not to build as deep a relationship with electric truck specialist Nikola as originally expected.
Image source: Getty Images.
The bullish case for FuelCell and its peers relies on a couple of things. First, internal combustion needs to give way to vehicle technology that relies on electrical generation, ideally through the use of the hydrogen fuel cells in which FuelCell has concentrated its attention. Also, FuelCell has to demonstrate why its own products are superior to those of its rivals. A substantial partnership with a major automaker would be a nice way to achieve both of those goals.
We're a long way from a final answer on how vehicle technology is likely to evolve and whether FuelCell will be a long-term winner. Until more time passes, investors in FuelCell can expect a rocky ride, with plenty of rises and falls along the way.
Raising the pot
Elsewhere, Aurora Cannabis finished the day with a nearly 12% gain. Some action in the cannabis complex gave a boost to several companies in the sector, and Aurora in particular remains an investor favorite.
From a big-picture view, Aurora has been just one of many pot stocks that have benefited from the results of the November elections. Most investors see President-elect Joe Biden as being friendlier to the prospects of legalizing marijuana at a national level than President Donald Trump. Moreover, at the state level, five states passed ballot measures to allow for the use of marijuana.
It's hard to get excited about Aurora's latest move, though. Over time, the Canadian cannabis company has seen share-price spikes like this several times. Yet each time, Aurora has taken advantage of price spikes to make secondary share offerings. These stock sales have diluted the interests of early investors, hurting returns and making it less likely that they'll ever fully recover their losses.
The cannabis industry has a lot of promise. But there might be better ways to play it than Aurora, even if shareholders like the marijuana stock 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 – 11 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
Dan Caplinger 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. | FuelCell Energy (NASDAQ: FCEL) saw its stock reach a new milestone, while Aurora Cannabis (NYSE: ACB) enjoyed a strong gain as investors start to look forward to 2021. During the morning hours, FuelCell and its peers in the fuel cell industry seemed to react negatively to news that General Motors had decided not to build as deep a relationship with electric truck specialist Nikola as originally expected. First, internal combustion needs to give way to vehicle technology that relies on electrical generation, ideally through the use of the hydrogen fuel cells in which FuelCell has concentrated its attention. | FuelCell Energy (NASDAQ: FCEL) saw its stock reach a new milestone, while Aurora Cannabis (NYSE: ACB) enjoyed a strong gain as investors start to look forward to 2021. A couple of areas that have been extremely popular this month are electric vehicle technology and marijuana stocks. That brought the hydrogen fuel cell specialist's share price above the $10 mark for the first time since 2018. | FuelCell Energy (NASDAQ: FCEL) saw its stock reach a new milestone, while Aurora Cannabis (NYSE: ACB) enjoyed a strong gain as investors start to look forward to 2021. The stock market had an amazingly strong November, and even a down day for the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) wasn't enough to stop the market from enjoying great returns for the month. 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. | FuelCell Energy (NASDAQ: FCEL) saw its stock reach a new milestone, while Aurora Cannabis (NYSE: ACB) enjoyed a strong gain as investors start to look forward to 2021. The stock market had an amazingly strong November, and even a down day for the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) wasn't enough to stop the market from enjoying great returns for the month. A couple of areas that have been extremely popular this month are electric vehicle technology and marijuana stocks. |
37085.0 | 2020-11-30 00:00:00 UTC | CANADA STOCKS - TSX falls 0.89% to 17,242.27 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-0.89-to-17242.27-2020-11-30 | nan | nan | * The Toronto Stock Exchange's TSX falls 0.89 percent to 17,242.27
* Leading the index were Aurora Cannabis Inc , up 11.4%, Aphria Inc APHA.TO, up 7%, and Wesdome Gold Mines Ltd WDO.TO, higher by 6.1%.
* Lagging shares were Crescent Point Energy Corp CPG.TO, down 9.7%, Vermilion Energy Inc VET.TO, down 7.7%, and Enerplus Corp ERF.TO, lower by 7.5%.
* On the TSX 70 issues rose and 149 fell as a 0.5-to-1 ratio favored decliners. There were 11 new highs and no new lows, with total volume of 231.2 million shares.
* The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Aphria Inc APHA.TO.
* The TSX's energy group .SPTTEN fell 5.39 points, or 5.9%, while the financials sector .SPTTFS slipped 4.52 points, or 1.5%.
* West Texas Intermediate crude futures CLc1 fell 0.77%, or $0.35, to $45.18 a barrel. Brent crude LCOc1 fell 1.22%, or $0.59, to $47.59 O/R
* The TSX is up 1% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Aphria Inc APHA.TO. * The Toronto Stock Exchange's TSX falls 0.89 percent to 17,242.27 * Leading the index were Aurora Cannabis Inc , up 11.4%, Aphria Inc APHA.TO, up 7%, and Wesdome Gold Mines Ltd WDO.TO, higher by 6.1%. * West Texas Intermediate crude futures CLc1 fell 0.77%, or $0.35, to $45.18 a barrel. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Aphria Inc APHA.TO. * Lagging shares were Crescent Point Energy Corp CPG.TO, down 9.7%, Vermilion Energy Inc VET.TO, down 7.7%, and Enerplus Corp ERF.TO, lower by 7.5%. * The TSX's energy group .SPTTEN fell 5.39 points, or 5.9%, while the financials sector .SPTTFS slipped 4.52 points, or 1.5%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Aphria Inc APHA.TO. * Lagging shares were Crescent Point Energy Corp CPG.TO, down 9.7%, Vermilion Energy Inc VET.TO, down 7.7%, and Enerplus Corp ERF.TO, lower by 7.5%. * The TSX's energy group .SPTTEN fell 5.39 points, or 5.9%, while the financials sector .SPTTFS slipped 4.52 points, or 1.5%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Aphria Inc APHA.TO. * Lagging shares were Crescent Point Energy Corp CPG.TO, down 9.7%, Vermilion Energy Inc VET.TO, down 7.7%, and Enerplus Corp ERF.TO, lower by 7.5%. * On the TSX 70 issues rose and 149 fell as a 0.5-to-1 ratio favored decliners. |
37086.0 | 2020-11-28 00:00:00 UTC | 3 Best Marijuana Stocks to Buy Now | ACB | https://www.nasdaq.com/articles/3-best-marijuana-stocks-to-buy-now-2020-11-28 | nan | nan | In the next few years, sector players are predicting that the U.S. marijuana market could expand at an astonishing rate of 20% per year to over $100 billion, a staggering increase from a size of roughly $13 billion in 2019. So far, 15 states and the District of Columbia have legalized recreational cannabis and 36 and D.C. permit medical marijuana. The green wave sweeping the nation shows no sign of subsiding; Federal decriminalization of marijuana may be on the table for the new Biden administration.
Significant opportunities lie ahead for pot growers domesticated in the U.S. and foreign distributers that hope to expand across the nation. Let's look at three of the top growers to buy now.
CBD oil and cannabis seeds. Image source: Getty Images.
1. Curaleaf
Curaleaf Holdings (OTC: CURLF) is the nation's largest marijuana grower, with a wide selection of products including cannabidiol (CBD) offerings, pre-rolls, oil extracts, and edibles. Its earnings report for the third quarter, which ended Sept. 30, showed revenue growth of 164% year over year to $193.2 million. And its EBITDA operating income increased more than threefold versus the year-ago quarter, to $42.3 million. Curaleaf also expanded its operations into Ohio, Illinois, and Pennsylvania. The pot grower now has a presence in 23 states and runs close to 100 dispensaries.
As with all growth stocks, Curaleaf shares do not come cheap. The company trades at a pricey premium of 11.6 times sales and 4.9 times book value, compared to an industry average of 7.8 times revenue and 5.4 times net assets. But a company that can more than double its revenue each year is well worth the price. And there may even be more upside than that for the stock, as suggested in this look at its latest earnings.
2. Green Thumb Industries
Another very successful U.S. marijuana grower, Green Thumb Industries (OTC: GTBIF) was founded in 2014 and is now on track to generate over $500 million in sales in 2020. That's a significant gain from the approximately $200 million it won in 2019.
What's surprising about Green Thumb's success is that it is generating such robust financial results on just six consumer brands. Its competitor Canopy Growth (NASDAQ: CGC), for example, generates less revenue than Green Thumb while relying on 10 brands. Green Thumb's dried flowers, vapes, edibles, pre-rolls, and concentrates are sold in 49 dispensaries in 12 states covering 45% of Americans.
Of the three companies here, Green Thumb is the only one that's profitable. Right now, it trades for 8.7 times sales and 4.6 times book value, indicating more bang for your buck versus Curaleaf.
3. Aurora Cannabis
Aurora Cannabis (NYSE: ACB), one of Canada's biggest pot growers, is also making its first expansion into the U.S. market. This May, Aurora closed its $40 million acquisition of hemp CBD company Reliva. However, that's all it has to show for its future in the U.S. right now, as the company is still heavily focused on Canadian operations.
Right now, Aurora has a lot of production capacity but sees very little demand. It sells about 16,000 kilograms of cannabis per quarter but can produce up to 100,000 kilograms each year from its flagship Aurora Sky facility alone.
In fact, Aurora wrote down over CA$1 billion ($767 million) in assets this year as it closed down many of its plants and laid off more than 500 employees. During the first quarter of 2021, revenue declined from CA$75.25 million last year to CA$67.8 million.
It has one last shot at returning to growth, and that's if it can export some of its excess capacity to meet the growing demand for recreational weed in the U.S. market. That is, assuming the U.S. one day federally legalizes of cannabis. That reality is probably unlikely in the short term, even under a new Biden administration.
Aurora stock offers the best value of these three, trading at just 4.7 times revenue and 1 times book value. Marijuana investors looking for cheap pot growers that could really turn around thanks to new legalization trends in the U.S. should consider Aurora. However, new investors should beware that the company will not be able to export its products to the U.S. until the drug is legalized at the federal level.
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
Zhiyuan Sun owns shares of Curaleaf Holdings, Inc. The Motley Fool owns shares of and recommends Green Thumb Industries. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Aurora Cannabis (NYSE: ACB), one of Canada's biggest pot growers, is also making its first expansion into the U.S. market. The green wave sweeping the nation shows no sign of subsiding; Federal decriminalization of marijuana may be on the table for the new Biden administration. Green Thumb's dried flowers, vapes, edibles, pre-rolls, and concentrates are sold in 49 dispensaries in 12 states covering 45% of Americans. | Aurora Cannabis Aurora Cannabis (NYSE: ACB), one of Canada's biggest pot growers, is also making its first expansion into the U.S. market. As with all growth stocks, Curaleaf shares do not come cheap. Green Thumb Industries Another very successful U.S. marijuana grower, Green Thumb Industries (OTC: GTBIF) was founded in 2014 and is now on track to generate over $500 million in sales in 2020. | Aurora Cannabis Aurora Cannabis (NYSE: ACB), one of Canada's biggest pot growers, is also making its first expansion into the U.S. market. The company trades at a pricey premium of 11.6 times sales and 4.9 times book value, compared to an industry average of 7.8 times revenue and 5.4 times net assets. Green Thumb Industries Another very successful U.S. marijuana grower, Green Thumb Industries (OTC: GTBIF) was founded in 2014 and is now on track to generate over $500 million in sales in 2020. | Aurora Cannabis Aurora Cannabis (NYSE: ACB), one of Canada's biggest pot growers, is also making its first expansion into the U.S. market. Its earnings report for the third quarter, which ended Sept. 30, showed revenue growth of 164% year over year to $193.2 million. As with all growth stocks, Curaleaf shares do not come cheap. |
37087.0 | 2020-11-27 00:00:00 UTC | After Hours Most Active for Nov 27, 2020 : ACB, VTRS, IQ, QQQ, TLRY, PLTR, PLYA, VER, TGNA, CARR, RTX, MSFT | ACB | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-27-2020-%3A-acb-vtrs-iq-qqq-tlry-pltr-plya-ver-tgna-carr-rtx | nan | nan | The NASDAQ 100 After Hours Indicator is up 22 to 12,290.32. The total After hours volume is currently 123,682,628 shares traded.
The following are the most active stocks for the after hours session:
Aurora Cannabis Inc. (ACB) is +0.11 at $10.58, with 4,485,870 shares traded. ACB's current last sale is 116.33% of the target price of $9.095.
Viatris Inc. (VTRS) is +0.07 at $17.12, with 3,335,383 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $1.34. VTRS's current last sale is 85.6% of the target price of $20.
iQIYI, Inc. (IQ) is unchanged at $22.01, with 3,099,760 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-0.42. IQ's current last sale is 90.58% of the target price of $24.3.
Invesco QQQ Trust, Series 1 (QQQ) is +0.05 at $299.06, with 2,593,557 shares traded. This represents a 81.33% increase from its 52 Week Low.
Tilray, Inc. (TLRY) is +0.3 at $8.80, with 2,417,083 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-0.14. TLRY's current last sale is 95.14% of the target price of $9.25.
Palantir Technologies Inc. (PLTR) is +0.6 at $28.26, with 2,370,152 shares traded. PLTR's current last sale is 194.9% of the target price of $14.5.
Playa Hotels & Resorts N.V. (PLYA) is -0.08 at $5.16, with 2,132,336 shares traded. PLYA's current last sale is 79.38% of the target price of $6.5.
VEREIT Inc. (VER) is unchanged at $7.34, with 2,111,748 shares traded. VER's current last sale is 104.84% of the target price of $7.001.
TEGNA Inc. (TGNA) is unchanged at $14.60, with 2,001,031 shares traded. As reported by Zacks, the current mean recommendation for TGNA is in the "buy range".
Carrier Global Corporation (CARR) is -0.06 at $37.75, with 1,916,920 shares traded. As reported by Zacks, the current mean recommendation for CARR is in the "buy range".
Raytheon Technologies Corporation (RTX) is -0.18 at $73.73, with 1,887,292 shares traded.
Microsoft Corporation (MSFT) is +0.01 at $215.24, with 1,652,734 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Inc. (ACB) is +0.11 at $10.58, with 4,485,870 shares traded. ACB's current last sale is 116.33% of the target price of $9.095. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. | Aurora Cannabis Inc. (ACB) is +0.11 at $10.58, with 4,485,870 shares traded. ACB's current last sale is 116.33% of the target price of $9.095. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. | Aurora Cannabis Inc. (ACB) is +0.11 at $10.58, with 4,485,870 shares traded. ACB's current last sale is 116.33% of the target price of $9.095. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. | ACB's current last sale is 116.33% of the target price of $9.095. Aurora Cannabis Inc. (ACB) is +0.11 at $10.58, with 4,485,870 shares traded. The NASDAQ 100 After Hours Indicator is up 22 to 12,290.32. |
37088.0 | 2020-11-27 00:00:00 UTC | After Hours Most Active for Nov 27, 2020 : ACB, VTRS, QQQ, IQ, TLRY, PLTR, PLYA, VER, TGNA, CARR, RTX, MSFT | ACB | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-27-2020-%3A-acb-vtrs-qqq-iq-tlry-pltr-plya-ver-tgna-carr-rtx | nan | nan | The NASDAQ 100 After Hours Indicator is up 2.48 to 12,260.69. The total After hours volume is currently 109,677,748 shares traded.
The following are the most active stocks for the after hours session:
Aurora Cannabis Inc. (ACB) is +0.08 at $10.55, with 4,352,504 shares traded. ACB's current last sale is 116% of the target price of $9.095.
Viatris Inc. (VTRS) is +0.08 at $17.13, with 3,335,242 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $1.34. VTRS's current last sale is 85.65% of the target price of $20.
Invesco QQQ Trust, Series 1 (QQQ) is +0.01 at $299.02, with 2,589,953 shares traded. This represents a 81.3% increase from its 52 Week Low.
iQIYI, Inc. (IQ) is +0.34 at $22.35, with 2,467,960 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-0.42. IQ's current last sale is 91.98% of the target price of $24.3.
Tilray, Inc. (TLRY) is +0.27 at $8.77, with 2,269,663 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-0.14. TLRY's current last sale is 94.81% of the target price of $9.25.
Palantir Technologies Inc. (PLTR) is +0.72 at $28.38, with 2,236,986 shares traded. PLTR's current last sale is 195.72% of the target price of $14.5.
Playa Hotels & Resorts N.V. (PLYA) is unchanged at $5.24, with 2,132,236 shares traded. PLYA's current last sale is 80.62% of the target price of $6.5.
VEREIT Inc. (VER) is unchanged at $7.34, with 2,111,748 shares traded. VER's current last sale is 104.84% of the target price of $7.001.
TEGNA Inc. (TGNA) is unchanged at $14.60, with 2,001,031 shares traded. As reported by Zacks, the current mean recommendation for TGNA is in the "buy range".
Carrier Global Corporation (CARR) is unchanged at $37.81, with 1,915,172 shares traded. As reported by Zacks, the current mean recommendation for CARR is in the "buy range".
Raytheon Technologies Corporation (RTX) is -0.0126 at $73.90, with 1,886,684 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $0.73. As reported by Zacks, the current mean recommendation for RTX is in the "buy range".
Microsoft Corporation (MSFT) is -0.11 at $215.12, with 1,634,309 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $1.64. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Inc. (ACB) is +0.08 at $10.55, with 4,352,504 shares traded. ACB's current last sale is 116% of the target price of $9.095. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. | Aurora Cannabis Inc. (ACB) is +0.08 at $10.55, with 4,352,504 shares traded. ACB's current last sale is 116% of the target price of $9.095. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. | Aurora Cannabis Inc. (ACB) is +0.08 at $10.55, with 4,352,504 shares traded. ACB's current last sale is 116% of the target price of $9.095. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. | ACB's current last sale is 116% of the target price of $9.095. Aurora Cannabis Inc. (ACB) is +0.08 at $10.55, with 4,352,504 shares traded. The NASDAQ 100 After Hours Indicator is up 2.48 to 12,260.69. |
37089.0 | 2020-11-27 00:00:00 UTC | CANADA STOCKS - TSX rises 0.32% to 17,406.89 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.32-to-17406.89-2020-11-27 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,406.89
* Leading the index were Aurora Cannabis Inc , up 18.0%, Trillium Therapeutics Inc TRIL.TO, up 8.8%, and Cronos Group Inc CRON.TO, higher by 7.7%.
* Lagging shares were Canada Goose Holdings Inc GOOS.TO, down 3.0%, OceanaGold Corp OGC.TO, down 2.4%, and Pretium Resources Inc PVG.TO, lower by 2.3%.
* On the TSX 129 issues rose and 90 fell as a 1.4-to-1 ratio favored advancers. There were 12 new highs and no new lows, with total volume of 162.8 million shares.
* The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Air Canada AC.TO and Suncor Energy Inc SU.TO.
* The TSX's energy group .SPTTEN rose 0.43 points, or 0.5%, while the financials sector .SPTTFS climbed 0.53 points, or 0.2%.
* West Texas Intermediate crude futures CLc1 fell 0.42%, or $0.19, to $45.52 a barrel. Brent crude LCOc1 rose 0.98%, or $0.47, to $48.27 O/R
* The TSX is up 2% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Air Canada AC.TO and Suncor Energy Inc SU.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,406.89 * Leading the index were Aurora Cannabis Inc , up 18.0%, Trillium Therapeutics Inc TRIL.TO, up 8.8%, and Cronos Group Inc CRON.TO, higher by 7.7%. * Lagging shares were Canada Goose Holdings Inc GOOS.TO, down 3.0%, OceanaGold Corp OGC.TO, down 2.4%, and Pretium Resources Inc PVG.TO, lower by 2.3%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Air Canada AC.TO and Suncor Energy Inc SU.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,406.89 * Leading the index were Aurora Cannabis Inc , up 18.0%, Trillium Therapeutics Inc TRIL.TO, up 8.8%, and Cronos Group Inc CRON.TO, higher by 7.7%. * The TSX's energy group .SPTTEN rose 0.43 points, or 0.5%, while the financials sector .SPTTFS climbed 0.53 points, or 0.2%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Air Canada AC.TO and Suncor Energy Inc SU.TO. * The Toronto Stock Exchange's TSX rises 0.32 percent to 17,406.89 * Leading the index were Aurora Cannabis Inc , up 18.0%, Trillium Therapeutics Inc TRIL.TO, up 8.8%, and Cronos Group Inc CRON.TO, higher by 7.7%. * The TSX's energy group .SPTTEN rose 0.43 points, or 0.5%, while the financials sector .SPTTFS climbed 0.53 points, or 0.2%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Air Canada AC.TO and Suncor Energy Inc SU.TO. * The TSX's energy group .SPTTEN rose 0.43 points, or 0.5%, while the financials sector .SPTTFS climbed 0.53 points, or 0.2%. Brent crude LCOc1 rose 0.98%, or $0.47, to $48.27 O/R * The TSX is up 2% for the year. |
37090.0 | 2020-11-27 00:00:00 UTC | Why Shares of Aurora Cannabis, Charlotte's Web, and Aphria Moved Higher Today | ACB | https://www.nasdaq.com/articles/why-shares-of-aurora-cannabis-charlottes-web-and-aphria-moved-higher-today-2020-11-27 | nan | nan | What happened
Shares of Canadian marijuana companies Aurora Cannabis (NYSE: ACB) and Aphria (NASDAQ: APHA), along with U.S.-based cannabidiol (CBD) products supplier Charlotte's Web Holdings (OTC: CWBHF), have been on a tear since the U.S. election on Nov. 3.
That run appeared to be continuing today, with Aphria and Charlotte's Web up 10% earlier, while Aurora moved up about 5%. Those jumps have since waned somewhat. As of 11:20 a.m. EST, Aphria shares are still up about 7%. But shares of Charlotte's Web are up 3.5%, while Aurora has given up virtually all of today's gains so far.
So what
The cannabis sector in general got a boost from the U.S. election earlier this month. The stocks of these three companies are up between 50% and 80% since then.
ACB data by YCharts
But to put it more in perspective, of the three, only Aphria shares are positive since the start of 2020. The election moved more buyers into the sector due to some wins at the polls. Five states -- New Jersey, Arizona, Mississippi, Montana, and South Dakota -- had ballot initiatives related to legalizing marijuana, and all five passed.
Image source: Getty Images.
Today's continuation of the election push may be related to the relief created when President Trump yesterday said he would "certainly" leave the White House if the electoral college officially elects Joe Biden president next month.
Now what
A Biden administration may be more friendly toward initiatives for legalizing pot, but shares of each of these companies will trade on their own business fundamentals. And only Aphria has announced significant news recently.
Aphria recently announced it is acquiring U.S. craft brewer SweetWater Brewing Company. This seems to be a good fit, and the company said the purchase will be immediately accretive to earnings.
On the other hand, Aurora spent much of this year restructuring its business and raising capital as it incurred growing losses. The changes included cutting jobs, consolidating production, and selling additional stock to raise money. Even with its pop since the election, shares are down 66% year to date.
Charlotte's Web delivered some encouraging news in its recently reported third-quarter earnings. While revenue was basically flat compared to the prior-year quarter, it did report sequential growth in both its direct-to-consumer (DTC) and business-to-business (B2B) segments. Management also expressed optimism in the earnings call, saying it expects the "increase in consumer momentum" to continue.
Investing in the cannabis sector shouldn't be thought of as a short-term plan. But while Aurora's business is still a question mark as it transitions, at least Aphria and Charlotte's Web have reported some decent news for investors recently, helping to justify a share price increase.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Canadian marijuana companies Aurora Cannabis (NYSE: ACB) and Aphria (NASDAQ: APHA), along with U.S.-based cannabidiol (CBD) products supplier Charlotte's Web Holdings (OTC: CWBHF), have been on a tear since the U.S. election on Nov. 3. ACB data by YCharts But to put it more in perspective, of the three, only Aphria shares are positive since the start of 2020. Five states -- New Jersey, Arizona, Mississippi, Montana, and South Dakota -- had ballot initiatives related to legalizing marijuana, and all five passed. | What happened Shares of Canadian marijuana companies Aurora Cannabis (NYSE: ACB) and Aphria (NASDAQ: APHA), along with U.S.-based cannabidiol (CBD) products supplier Charlotte's Web Holdings (OTC: CWBHF), have been on a tear since the U.S. election on Nov. 3. ACB data by YCharts But to put it more in perspective, of the three, only Aphria shares are positive since the start of 2020. That run appeared to be continuing today, with Aphria and Charlotte's Web up 10% earlier, while Aurora moved up about 5%. | What happened Shares of Canadian marijuana companies Aurora Cannabis (NYSE: ACB) and Aphria (NASDAQ: APHA), along with U.S.-based cannabidiol (CBD) products supplier Charlotte's Web Holdings (OTC: CWBHF), have been on a tear since the U.S. election on Nov. 3. ACB data by YCharts But to put it more in perspective, of the three, only Aphria shares are positive since the start of 2020. But while Aurora's business is still a question mark as it transitions, at least Aphria and Charlotte's Web have reported some decent news for investors recently, helping to justify a share price increase. | What happened Shares of Canadian marijuana companies Aurora Cannabis (NYSE: ACB) and Aphria (NASDAQ: APHA), along with U.S.-based cannabidiol (CBD) products supplier Charlotte's Web Holdings (OTC: CWBHF), have been on a tear since the U.S. election on Nov. 3. ACB data by YCharts But to put it more in perspective, of the three, only Aphria shares are positive since the start of 2020. That run appeared to be continuing today, with Aphria and Charlotte's Web up 10% earlier, while Aurora moved up about 5%. |
37091.0 | 2020-11-27 00:00:00 UTC | Is Aurora Cannabis Stock a Buy? | ACB | https://www.nasdaq.com/articles/is-aurora-cannabis-stock-a-buy-2020-11-27 | nan | nan | Aurora Cannabis (NYSE: ACB) had a disastrous 2019. Much of the decline in its share price was due to the company's reckless spending, along with external headwinds. It lost 56% of its stock value in 2019, worse than last year's 36% slump of the industry benchmark -- Horizons Marijuana Life Sciences Index ETF.
However, the company is making every possible attempt this year to rebound and recapture the cannabis market. Its efforts included shutting down unproductive facilities, reducing the workforce to conserve cash, and diluting its stock through a reverse stock split -- which isn't appealing to investors, who do not see diluting stock as a positive sign. Aurora opted for a 1-for-12 reverse stock split in May to save its stock from getting delisted from the New York Stock Exchange when its stock price dropped below $1. Diluting stock isn't necessarily a bad thing, if it helps the company grow its earnings and boost the stock price. However, that's not what happened with Aurora. The company is still struggling to stay afloat.
Given an up-and-down year, investors were hoping to hear some sort of positive news from the company's recent first-quarter fiscal 2021 report, released Nov. 9. But the report was a disappointment, dragging the stock deeper into the abyss. So far this year, Aurora's shares are down 72%, while its peer, Canopy Growth (NYSE: CGC), has seen its stock surge by 12%. Meanwhile, the industry benchmark has slumped 13% over the same period. Let's take a detailed look at the results and determine whether there are signs of recovery for Aurora in the near future.
Image source: Getty Images.
Cannabis derivatives could be a key market for Aurora to rebound
For the quarter ended Sept. 30, Aurora's total cannabis net revenue sank 8% year over year to 67.8 million Canadian dollars.
The fall was mostly due to a sales decline for Aurora's Daily Special value brand, which management says lost market share due to new entrants and increased competition in the cannabis flower category. However, the good news was a CA$3.6 million increase in consumer cannabis extract net revenue driven by higher-margin products, including cannabis-derivative products. Cannabis derivatives include vapes, edibles, concentrates, and beverages. Canada legalized these nationwide in October 2019 as a part of "Cannabis 2.0" legislation.
The company hasn't launched any new derivatives in months, and management didn't discuss any new rollouts in this quarter's call. I am not surprised by this, given that Aurora's main focus now is to conserve cash by reducing expenses and not spending more on new products. However, it's important for Aurora not to lose out on the opportunity of this new, expanding derivatives market, while its Canadian peers and U.S. counterparts are striking when the iron is hot. Aurora has also not shown any interest in launching cannabis beverages.
Meanwhile, its peer, Canopy Growth, has been rapidly expanding its derivatives position with the launch of a variety of these offerings. Its cannabis beverages, in particular, have been available since March and are drawing consumers' attention. In a research report, Deloitte estimates that cannabis-infused beverages alone could generate CA$529 million annually. And the U.S cannabis beverages market could be worth $2.8 billion by 2025, according to Grand View Research.
Image source: Getty Images.
Aurora still has a long way to go
Aurora assured investors in its most recent results that it will hit positive earnings before income, taxation, depreciation, and amortization (EBITDA) by the second quarter of fiscal year 2021, which ends Dec. 31. But it looks doubtful to me. Its Q1 EBITDA rang in at a loss of CA$57.8 million, compared with a loss of CA$33 million in the year-ago quarter. Sequentially, EBITDA losses were also up from CA$32.2 million in the fourth quarter of 2020, largely because of legal-settlement and contract-termination fees associated with workforce reduction as part of the business transformation plan announced in June.
While management is working to reduce its selling, general, and administrative (SG&A) expenses, it will need to work harder to achieve profitability. SG&A expenses fell from CA$58.8 million in Q4 to CA$46.9 million in Q1.Management will also have to prove that they can make the best of some high-price tag-acquisitions, especially hemp products company Reliva, which Aurora acquired for $40 million of its common stock in March to expand its reach in the U.S. cannabidiol (CBD) market. Some investors have questioned the leadership team, believing that Aurora made too many aggressive spending mistakes last year. But new CEO Miguel Martin -- previously the CEO of Reliva -- has promise, especially if the company can use his experience in the cannabis and consumer space to its advantage.
CGC data by YCharts
For now, Aurora remains a very risky investment with a reputation for not delivering on its promises. The company has to live up to its target of achieving positive EBITDA by the second quarter -- and even if it does, investors need to be aware that any cannabis stock still carries some amount of risk. Aurora also has to prove that it can capitalize on its Reliva acquisition, reduce costs further, and continue to expand into the derivatives market with more products.
This is a good buy for aggressive investors who believe high rewards come with high risk. But for risk-averse investors, my advice would be to wait until the company reports higher revenues or profit numbers before investing in 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 – 11 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. | Aurora Cannabis (NYSE: ACB) had a disastrous 2019. Given an up-and-down year, investors were hoping to hear some sort of positive news from the company's recent first-quarter fiscal 2021 report, released Nov. 9. Sequentially, EBITDA losses were also up from CA$32.2 million in the fourth quarter of 2020, largely because of legal-settlement and contract-termination fees associated with workforce reduction as part of the business transformation plan announced in June. | Aurora Cannabis (NYSE: ACB) had a disastrous 2019. Its efforts included shutting down unproductive facilities, reducing the workforce to conserve cash, and diluting its stock through a reverse stock split -- which isn't appealing to investors, who do not see diluting stock as a positive sign. Cannabis derivatives could be a key market for Aurora to rebound For the quarter ended Sept. 30, Aurora's total cannabis net revenue sank 8% year over year to 67.8 million Canadian dollars. | Aurora Cannabis (NYSE: ACB) had a disastrous 2019. Aurora opted for a 1-for-12 reverse stock split in May to save its stock from getting delisted from the New York Stock Exchange when its stock price dropped below $1. Cannabis derivatives could be a key market for Aurora to rebound For the quarter ended Sept. 30, Aurora's total cannabis net revenue sank 8% year over year to 67.8 million Canadian dollars. | Aurora Cannabis (NYSE: ACB) had a disastrous 2019. So far this year, Aurora's shares are down 72%, while its peer, Canopy Growth (NYSE: CGC), has seen its stock surge by 12%. Cannabis derivatives could be a key market for Aurora to rebound For the quarter ended Sept. 30, Aurora's total cannabis net revenue sank 8% year over year to 67.8 million Canadian dollars. |
37092.0 | 2020-11-26 00:00:00 UTC | 3 Canadian Pot Stocks All Cannabis Investors Need to Know About | ACB | https://www.nasdaq.com/articles/3-canadian-pot-stocks-all-cannabis-investors-need-to-know-about-2020-11-26 | nan | nan | As far as marijuana stock investors are concerned, Canada changed the world when it began to fully legalize marijuana in 2018. It's no wonder cannabis companies from that country still top the list of favorite marijuana stock investments, despite the many challenges those companies are facing.
In this video segment from Motley Fool Live, Healthcare and Cannabis Bureau Chief Corinne Cardina Jurney and veteran Motley Fool contributor Eric Volkman take a brief trip across the United States' northern border to discuss a trio of high-profile Canadian cannabis companies. This video was recorded on Oct. 20.
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 – 11 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: I do want to spend most of the rest of our time on the American pot stocks. But before we do that, let's just touch on the big three, the Canadian biggies. We've got Canopy Growth (NYSE: CGC), and you did mention, they have a lot of money behind them, and that's because Constellation Brands (NYSE: STZ), that's an alcohol giant, they own Corona. They have, I think it's a 40% stake at this point, and they have actually installed their former CFO as the new CEO of Canopy. They are in the middle of a turnaround, cost cutting, all that good stuff.
They've done the least bad of the big three stock-wise recently. If you look year-to-date, Canopy is down 8%, Aphria (NASDAQ: APHA) is down nine, poor Aurora (NYSE: ACB), just in the ground, I think down 80% year-to-date. What should investors think about these three?
Eric Volkman: Out of those three, I would say Canopy has probably got the best chance because, again, the cash thing, they do have a lot of money, not only in their own coffers. Constellation, it's pretty committed to the point where even before they installed the CEO, they had a fairly tight grip on the company. They had, I think several board members, two or three. I'm not sure, but yeah, they definitely kept their sum on their investment.
Because of that commitment, I don't think they're going to fade away anytime soon. Although they're not happy, Canopy's losses are not significant enough for them to completely pull the rug under the company yet. And Canopy has had some success, you know. Their brands are known, they're getting out there. People are buying and smoking them.
Out of the three, I'd probably choose Canopy as the one with, if I had to, the brightest prospects of the three.
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 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. | If you look year-to-date, Canopy is down 8%, Aphria (NASDAQ: APHA) is down nine, poor Aurora (NYSE: ACB), just in the ground, I think down 80% year-to-date. In this video segment from Motley Fool Live, Healthcare and Cannabis Bureau Chief Corinne Cardina Jurney and veteran Motley Fool contributor Eric Volkman take a brief trip across the United States' northern border to discuss a trio of high-profile Canadian cannabis companies. 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 look year-to-date, Canopy is down 8%, Aphria (NASDAQ: APHA) is down nine, poor Aurora (NYSE: ACB), just in the ground, I think down 80% year-to-date. It's no wonder cannabis companies from that country still top the list of favorite marijuana stock investments, despite the many challenges those companies are facing. In this video segment from Motley Fool Live, Healthcare and Cannabis Bureau Chief Corinne Cardina Jurney and veteran Motley Fool contributor Eric Volkman take a brief trip across the United States' northern border to discuss a trio of high-profile Canadian cannabis companies. | If you look year-to-date, Canopy is down 8%, Aphria (NASDAQ: APHA) is down nine, poor Aurora (NYSE: ACB), just in the ground, I think down 80% year-to-date. It's no wonder cannabis companies from that country still top the list of favorite marijuana stock investments, despite the many challenges those companies are facing. In this video segment from Motley Fool Live, Healthcare and Cannabis Bureau Chief Corinne Cardina Jurney and veteran Motley Fool contributor Eric Volkman take a brief trip across the United States' northern border to discuss a trio of high-profile Canadian cannabis companies. | If you look year-to-date, Canopy is down 8%, Aphria (NASDAQ: APHA) is down nine, poor Aurora (NYSE: ACB), just in the ground, I think down 80% year-to-date. As far as marijuana stock investors are concerned, Canada changed the world when it began to fully legalize marijuana in 2018. In this video segment from Motley Fool Live, Healthcare and Cannabis Bureau Chief Corinne Cardina Jurney and veteran Motley Fool contributor Eric Volkman take a brief trip across the United States' northern border to discuss a trio of high-profile Canadian cannabis companies. |
37093.0 | 2020-11-25 00:00:00 UTC | Why Aurora Cannabis Stock Is Giving Back Some Gains Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-is-giving-back-some-gains-today-2020-11-25 | nan | nan | What happened
Shares of Aurora Cannabis (NYSE: ACB) rushed ahead to close up 28.5% on Tuesday, but as Wednesday unfolds, the Canadian cannabis company is giving back some of those gains and is down 7.3% in 11:30 a.m. EST trading.
So what
Aurora gathered up its gains yesterday as investors responded to news that the General Services Administration has begun the transition to a Biden administration, despite President Trump still not having actually conceded that Joe Biden won the election earlier this month. Because, during the presidential campaign, Biden running mate and soon-to-be-Vice President Harris promised to "decriminalize marijuana, and ... expunge the records of those who have been convicted of marijuana," investors have high hopes that the transition in administration will soon lead to the federal legalization of weed.
Image source: Getty Images.
Now what
That hope translated into big profits for marijuana stocks yesterday. Today what we're seeing is a combination of some investors cashing in those profits, and others beginning to wonder, "Is this even news?"
After all, we've known for weeks that the Biden-Harris ticket probably would win, and we've known for months that decriminalization was the stated policy of the incoming administration. For that matter, we've known for certain -- ever since Election Day -- that five new states have been added to the ranks of places where marijuana use is largely permitted, whatever happens at the federal level. With all this good news already baked into the stock, it's really not clear why yesterday's beginning of the transition should have had such an outsize effect on Aurora Cannabis shares -- or whether the momentum will last long at all.
Indeed, today, that momentum is already disappearing like smoke on the wind.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Aurora Cannabis (NYSE: ACB) rushed ahead to close up 28.5% on Tuesday, but as Wednesday unfolds, the Canadian cannabis company is giving back some of those gains and is down 7.3% in 11:30 a.m. EST trading. For that matter, we've known for certain -- ever since Election Day -- that five new states have been added to the ranks of places where marijuana use is largely permitted, whatever happens at the federal level. With all this good news already baked into the stock, it's really not clear why yesterday's beginning of the transition should have had such an outsize effect on Aurora Cannabis shares -- or whether the momentum will last long at all. | What happened Shares of Aurora Cannabis (NYSE: ACB) rushed ahead to close up 28.5% on Tuesday, but as Wednesday unfolds, the Canadian cannabis company is giving back some of those gains and is down 7.3% in 11:30 a.m. EST trading. Now what That hope translated into big profits for marijuana stocks yesterday. 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 (NYSE: ACB) rushed ahead to close up 28.5% on Tuesday, but as Wednesday unfolds, the Canadian cannabis company is giving back some of those gains and is down 7.3% in 11:30 a.m. EST trading. So what Aurora gathered up its gains yesterday as investors responded to news that the General Services Administration has begun the transition to a Biden administration, despite President Trump still not having actually conceded that Joe Biden won the election earlier this month. With all this good news already baked into the stock, it's really not clear why yesterday's beginning of the transition should have had such an outsize effect on Aurora Cannabis shares -- or whether the momentum will last long at all. | What happened Shares of Aurora Cannabis (NYSE: ACB) rushed ahead to close up 28.5% on Tuesday, but as Wednesday unfolds, the Canadian cannabis company is giving back some of those gains and is down 7.3% in 11:30 a.m. EST trading. Because, during the presidential campaign, Biden running mate and soon-to-be-Vice President Harris promised to "decriminalize marijuana, and ... expunge the records of those who have been convicted of marijuana," investors have high hopes that the transition in administration will soon lead to the federal legalization of weed. With all this good news already baked into the stock, it's really not clear why yesterday's beginning of the transition should have had such an outsize effect on Aurora Cannabis shares -- or whether the momentum will last long at all. |
37094.0 | 2020-11-24 00:00:00 UTC | CANADA STOCKS-TSX gains on energy boost as oil hits highest since March | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-gains-on-energy-boost-as-oil-hits-highest-since-march-2020-11-24 | nan | nan | Nov 24 (Reuters) - Canada's main stock index rose on Tuesday, led by a jump in energy stocks, as a third promising COVID-19 vaccine spurred hopes of a quicker economic recovery and drove oil prices to an over eight-month high.
* The energy sector .SPTTEN climbed 4.2% as U.S. crude CLc1 prices were up 1.9% a barrel, while Brent crude LCOc1 added 1.7%. O/R
* At 14:40 a.m. ET (14:40 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 115.33 points, or 0.67%, at 17,209.86.
* AstraZeneca AZN.L said on Monday its COVID-19 vaccine could be up to 90% effective.
* The largest percentage gainer on the TSX was pot producer Aurora Cannabis Inc ACB.TO, which jumped 24.6%, followed by oil firm Vermilion Energy Inc VET.TO, which rose 8.4%.
* The financials sector .SPTTFS gained 1.1%. The industrials sector .GSPTTIN rose 0.1%.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 0.8% as gold futures GCc1 fell 1.6% to $1,809.3 an ounce. GOL/
* On the TSX, 140 issues were higher, while 78 issues declined for a 1.79-to-1 ratio favoring gainers, with 29.53 million shares traded.
* Miner Silvercorp Metals Inc fell 11.3%, the most on the TSX, and the second-biggest decliner was fuel-cell products developer Ballard Power Systems Inc , down 4.6%.
* The most heavily traded shares by volume were Cardinal Resource Ltd , Bombardier Inc , and Baytex Energy Corp .
* The TSX posted nine new 52-week highs and no new lows.
* Across all Canadian issues there were 59 new 52-week highs and six new lows, with total volume of 60.06 million shares.
(Reporting by Amal S in Bengaluru; Editing by Aditya Soni)
((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. | * The largest percentage gainer on the TSX was pot producer Aurora Cannabis Inc ACB.TO, which jumped 24.6%, followed by oil firm Vermilion Energy Inc VET.TO, which rose 8.4%. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 0.8% as gold futures GCc1 fell 1.6% to $1,809.3 an ounce. * Miner Silvercorp Metals Inc fell 11.3%, the most on the TSX, and the second-biggest decliner was fuel-cell products developer Ballard Power Systems Inc , down 4.6%. | * The largest percentage gainer on the TSX was pot producer Aurora Cannabis Inc ACB.TO, which jumped 24.6%, followed by oil firm Vermilion Energy Inc VET.TO, which rose 8.4%. Nov 24 (Reuters) - Canada's main stock index rose on Tuesday, led by a jump in energy stocks, as a third promising COVID-19 vaccine spurred hopes of a quicker economic recovery and drove oil prices to an over eight-month high. * The energy sector .SPTTEN climbed 4.2% as U.S. crude CLc1 prices were up 1.9% a barrel, while Brent crude LCOc1 added 1.7%. | * The largest percentage gainer on the TSX was pot producer Aurora Cannabis Inc ACB.TO, which jumped 24.6%, followed by oil firm Vermilion Energy Inc VET.TO, which rose 8.4%. Nov 24 (Reuters) - Canada's main stock index rose on Tuesday, led by a jump in energy stocks, as a third promising COVID-19 vaccine spurred hopes of a quicker economic recovery and drove oil prices to an over eight-month high. GOL/ * On the TSX, 140 issues were higher, while 78 issues declined for a 1.79-to-1 ratio favoring gainers, with 29.53 million shares traded. | * The largest percentage gainer on the TSX was pot producer Aurora Cannabis Inc ACB.TO, which jumped 24.6%, followed by oil firm Vermilion Energy Inc VET.TO, which rose 8.4%. Nov 24 (Reuters) - Canada's main stock index rose on Tuesday, led by a jump in energy stocks, as a third promising COVID-19 vaccine spurred hopes of a quicker economic recovery and drove oil prices to an over eight-month high. * The energy sector .SPTTEN climbed 4.2% as U.S. crude CLc1 prices were up 1.9% a barrel, while Brent crude LCOc1 added 1.7%. |
37095.0 | 2020-11-24 00:00:00 UTC | CANADA STOCKS - TSX rises 1.02% to 17,268.29 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-1.02-to-17268.29-2020-11-24 | nan | nan | * The Toronto Stock Exchange's TSX rises 1.02 percent to 17,268.29
* Leading the index were Aurora Cannabis Inc , up 26.0%, Crescent Point Energy Corp CPG.TO, up 10.1%, and Air Canada AC.TO, higher by 9.3%.
* Lagging shares were Silvercorp Metals Inc SVM.TO, down 12.7%, Ballard Power Systems Inc BLDP.TO, down 8.1%, and Alamos Gold Inc AGI.TO, lower by 5.8%.
* On the TSX 141 issues rose and 76 fell as a 1.9-to-1 ratio favored advancers. There were 17 new highs and no new lows, with total volume of 254.5 million shares.
* The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Air Canada AC.TO.
* The TSX's energy group .SPTTEN rose 3.92 points, or 4.5%, while the financials sector .SPTTFS climbed 5.82 points, or 1.9%.
* West Texas Intermediate crude futures CLc1 rose 4.2%, or $1.81, to $44.87 a barrel. Brent crude LCOc1 rose 3.95%, or $1.82, to $47.88 O/R
* The TSX is up 1.2% for the year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 1.02 percent to 17,268.29 * Leading the index were Aurora Cannabis Inc , up 26.0%, Crescent Point Energy Corp CPG.TO, up 10.1%, and Air Canada AC.TO, higher by 9.3%. * Lagging shares were Silvercorp Metals Inc SVM.TO, down 12.7%, Ballard Power Systems Inc BLDP.TO, down 8.1%, and Alamos Gold Inc AGI.TO, lower by 5.8%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 1.02 percent to 17,268.29 * Leading the index were Aurora Cannabis Inc , up 26.0%, Crescent Point Energy Corp CPG.TO, up 10.1%, and Air Canada AC.TO, higher by 9.3%. * The TSX's energy group .SPTTEN rose 3.92 points, or 4.5%, while the financials sector .SPTTFS climbed 5.82 points, or 1.9%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 1.02 percent to 17,268.29 * Leading the index were Aurora Cannabis Inc , up 26.0%, Crescent Point Energy Corp CPG.TO, up 10.1%, and Air Canada AC.TO, higher by 9.3%. * The TSX's energy group .SPTTEN rose 3.92 points, or 4.5%, while the financials sector .SPTTFS climbed 5.82 points, or 1.9%. | * The most heavily traded shares by volume were Aurora Cannabis Inc ACB.TO, Suncor Energy Inc SU.TO and Air Canada AC.TO. * The Toronto Stock Exchange's TSX rises 1.02 percent to 17,268.29 * Leading the index were Aurora Cannabis Inc , up 26.0%, Crescent Point Energy Corp CPG.TO, up 10.1%, and Air Canada AC.TO, higher by 9.3%. * Lagging shares were Silvercorp Metals Inc SVM.TO, down 12.7%, Ballard Power Systems Inc BLDP.TO, down 8.1%, and Alamos Gold Inc AGI.TO, lower by 5.8%. |
37096.0 | 2020-11-24 00:00:00 UTC | Are These The Top Marijuana Stocks To Buy Ahead Of A Biden Presidency? | ACB | https://www.nasdaq.com/articles/are-these-the-top-marijuana-stocks-to-buy-ahead-of-a-biden-presidency-2020-11-24 | nan | nan | Looking For Top Marijuana Stocks To Buy? Here Are 3 Names To Watch
Marijuana stocks have had an interesting year in the stock market so far. These stocks have shown resilience despite the volatility and economic uncertainty that was brought by the coronavirus pandemic. As daily cases continue to rise with the U.S. reaching over 100,000 new cases in the last few days, things do look bleak. How would top marijuana stocks fare as states are restricting movement and implementing new lockdown measures?
This could perhaps be one of the best years for marijuana stocks and investors who put their money in the cannabis industry. The industry in general has been showing signs of stability. Top cannabis stocks like Curaleaf Holdings (CURLF Stock Report) and Canopy Growth Corp (CGC Stock Report) have seen impressive revenue gains in their latest quarters. Part of this stability could be because Joe Biden has officially won the U.S. Presidential Race this year. One thing that is clear from the election results is that American voters of all parties overwhelmingly support legalizing cannabis. Cannabis initiatives have won legalization in states like Arizona and New Jersey earlier this month and they won by massive and historic margins. With this shift, it is clear that there is a growing demand for legal marijuana.
Current Senate Minority Leader Chuck Schumer has stated that marijuana legalization would be a major priority in a Democratic-controlled Senate. This is of course assuming that the Democrats manage to take full control of Congress in the next few months. Could 2021 be the year for marijuana stocks to reach all new highs? With all things considered, here are 3 marijuana stocks to watch.
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Best Marijuana Stocks To Buy [Or Sell]: Tilray
Tilray (TLRY Stock Report) is a global leader in cannabis research, cultivation, processing, and distribution. The company is the first GMP (Good Manufacturing Practice)-certified medical cannabis producer to supply cannabis flower and extract to patients and researchers in over 5 continents. Tilray produces and controls products according to quality standards by being GMP certified. The company’s share price is up by around 200% since the March lows at $7.66 as of 10:26 a.m. ET.
The company has just announced its third-quarter fiscal on November 9. Tilray reports a total revenue increase of 2% year-over-year at $51.4 million. Its cannabis segment revenue increased by 4% and the company also saw a 13% increase in Adult-Use sales. The company also reported a cash flow of $155.2 million at the end of its third quarter.
Despite the less than stellar performance in its third quarter, the company sees a $150 billion market for the global cannabis industry. This huge prize could be within the company’s reach as it positions itself for further growth. For instance, the company has boosted its presence in the U.S. by acquiring Manitoba Harvest in 2019. Manitoba Harvest is the world’s largest hemp food manufacturer. Tilray is also targeting the European market as more countries move to legalize marijuana. With that in mind, will you consider having TLRY stocks in your portfolio?
Best Marijuana Stocks To Buy [Or Sell]: Aurora Cannabis Inc.
Aurora Cannabis (ACB Stock Report) is a licensed cannabis producer that is based in Canada. The company is a pioneer in global cannabis that helps to improve the health, wellness, and lives of its users. Aurora boasts highly automated facilities across Canada and Europe that allow for optimized growing conditions. The company’s share price has seen an explosive gain of 22% on Tuesday morning as of 10.28 a.m. ET.
The company seems to be paving the way to a new era of medical cannabis products that has aglobal market Its portfolio of medical brands includes CanniMed which helps manage symptoms of chronic disabilities and terminal illnesses. The company’s recent first-quarter fiscal posted in November however did not meet analyst expectations. Aurora posted a net revenue decrease of 1% this quarter at $51.88 million. Nevertheless, that is an impressive feat as the pandemic had affected consumer trends worldwide.
The decrease in revenue is because of a 16% decrease in consumer dried cannabis net revenue. The company also lost market share in key categories. To combat this loss, Aurora is currently executing a tactical plan intended to regain and grow its market share again. This includes leveraging on Aurora’s premium brands across all major consumer categories. Nevertheless, Aurora has assured investors this quarter that the company will achieve positive earnings by the second quarter. Could ACB stock be set for a rebound in the coming weeks?
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Best Marijuana Stocks To Buy [Or Sell]: Innovative Industrial Properties Inc.
Innovative Industrial Properties (IIPR Stock Report) is a cannabis-focused real estate investment trust. With the momentum of state legalization of medical-use cannabis in the U.S., the company focuses on partnering with well-capitalized and experienced medical-use cannabis operators. As a real estate investment trust (REIT), Innovative acquires and leases out properties to these marijuana companies. It then collects rental income as its main source of revenue.
The company is one of the few in the marijuana industry to have been spared from the market crash this year. Innovative’s share prices are up by 108% year-to-date and are currently traded at $156.9 as of 10:29 a.m. ET. So why has this company been thriving when the broader market has plummeted this year? In the company’s third-quarter fiscal posted in November, revenue grew by 197% year-over-year to $34.3 million. Innovative’s net income grew by an impressive 210% to $19.2 million as well. This is likely due to many marijuana companies facing economic stress and hence allowing Innovative to acquire their properties.
The company has stated that it acquired five properties totaling approximately 448,000 rentable square feet located in Florida, Michigan, and New Jersey. In this quarter, Innovative had also made available additional funding to tenants at seven existing properties. This is to facilitate continued buildout and expansion of facilities. This all plays well for Innovative as it looks like there is no stopping to medical marijuana growth. As more people grow to understand its benefits and recreational purposes, Innovative could be set for future growth. This is why IIPR stock is on this list of marijuana stocks to watch.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Marijuana Stocks To Buy [Or Sell]: Aurora Cannabis Inc. Aurora Cannabis (ACB Stock Report) is a licensed cannabis producer that is based in Canada. Could ACB stock be set for a rebound in the coming weeks? To combat this loss, Aurora is currently executing a tactical plan intended to regain and grow its market share again. | Best Marijuana Stocks To Buy [Or Sell]: Aurora Cannabis Inc. Aurora Cannabis (ACB Stock Report) is a licensed cannabis producer that is based in Canada. Could ACB stock be set for a rebound in the coming weeks? Best Marijuana Stocks To Buy [Or Sell]: Tilray Tilray (TLRY Stock Report) is a global leader in cannabis research, cultivation, processing, and distribution. | Best Marijuana Stocks To Buy [Or Sell]: Aurora Cannabis Inc. Aurora Cannabis (ACB Stock Report) is a licensed cannabis producer that is based in Canada. Could ACB stock be set for a rebound in the coming weeks? Top cannabis stocks like Curaleaf Holdings (CURLF Stock Report) and Canopy Growth Corp (CGC Stock Report) have seen impressive revenue gains in their latest quarters. | Best Marijuana Stocks To Buy [Or Sell]: Aurora Cannabis Inc. Aurora Cannabis (ACB Stock Report) is a licensed cannabis producer that is based in Canada. Could ACB stock be set for a rebound in the coming weeks? Tilray reports a total revenue increase of 2% year-over-year at $51.4 million. |
37097.0 | 2020-11-24 00:00:00 UTC | Stock Markets Are Record-Bound; Marijuana Stocks Soar | ACB | https://www.nasdaq.com/articles/stock-markets-are-record-bound-marijuana-stocks-soar-2020-11-24 | nan | nan | Tuesday morning brought fresh new record highs to parts of the stock market, and it even sent the Dow Jones Industrial Average (DJINDICES: ^DJI) past a key milestone. After having encountered amazing volatility throughout 2020, investors now seem ready to put the year behind them and focus on the promise that 2021 will bring.
As of 11:45 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 470 points to 30,061, which would be enough for a new record if it finishes the day at that level. The S&P 500 (SNPINDEX: ^GSPC) climbed 55 points to 3,632, which would also be a new record close. The Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 117 points to 11,998, falling short of reaching unprecedented levels by about 1%.
There were several pockets of success in the stock market Tuesday. Entertainment and energy stocks were prominent among gainers, as hopes for a viable coronavirus vaccine and a jump in oil prices of more than $2 per barrel lifted crude back above $45. Yet the most interesting move came from cannabis stocks like Aurora Cannabis (NYSE: ACB) and Tilray (NASDAQ: TLRY), which jumped apparently in response to something that many people had already taken for granted.
Image source: Getty Images.
Pot stocks go higher
Aurora Cannabis saw its stock rise more than 20% on Tuesday morning. Tilray rose 13%, while industry peers Canopy Growth (NASDAQ: CGC) and Cronos Group (NASDAQ: CRON) settled for 8% gains.
The rising tide stemmed from the latest news out of Washington. Investors believe that a Biden administration will be friendlier to the idea of federal cannabis legalization than the Trump administration has been. Even though the results of the presidential election had become increasingly clear, cannabis investors nevertheless cheered news that the White House would move forward in working with Biden administration senior officials to coordinate a transition.
Pot stocks already had a lot to celebrate at the state level. All five states that were considering measures to expand the availability of marijuana saw those measures pass. The industry has been taking advantage of state-level opportunities as they arise, and the more states pass legislation, the sillier it looks for federal-level prohibitions to stand.
Will cannabis companies burn investors again?
Even with today's big gains, it's easy to understand why some investors watching the marijuana market might hesitate to jump in head-first. Prospects looked equally good when the Canadian market opened up for adult recreational marijuana use, but the reality hasn't been as good as anticipated. Indeed, the challenges associated with recreational cannabis in Canada have been a large part of what caused huge losses for Aurora, Tilray, and other marijuana stocks.
Moreover, big-name cannabis companies still haven't necessarily turned the corner. In particular, Aurora is still working through a host of issues, reorganizing its business and continuing to raise capital through secondary share offerings at a furious pace. That's left some shareholders worried that even if the U.S. market does open up to cannabis at the federal level, Aurora might not be in a position to take full advantage.
Competition is also rearing up. Challenging the top early names in the industry have been companies like Village Farms International (NASDAQ: VFF) and GrowGeneration (NASDAQ: GRWG), both of which have found their own niche plays in cannabis. With so many new companies in the business, investors have to be careful in assessing the true competitive advantages that Canopy Growth, Cronos, Tilray, and Aurora have.
A happy holiday
As the holiday season approaches, stock markets are getting in a festive mood. No matter what happens with cannabis stocks and other sectors of the market today, the long run has a lot of promise for investors across the market.
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.
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Cannabis legalization is sweeping over North America – 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends GrowGeneration and Village Farms International 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. | Yet the most interesting move came from cannabis stocks like Aurora Cannabis (NYSE: ACB) and Tilray (NASDAQ: TLRY), which jumped apparently in response to something that many people had already taken for granted. Tuesday morning brought fresh new record highs to parts of the stock market, and it even sent the Dow Jones Industrial Average (DJINDICES: ^DJI) past a key milestone. Entertainment and energy stocks were prominent among gainers, as hopes for a viable coronavirus vaccine and a jump in oil prices of more than $2 per barrel lifted crude back above $45. | Yet the most interesting move came from cannabis stocks like Aurora Cannabis (NYSE: ACB) and Tilray (NASDAQ: TLRY), which jumped apparently in response to something that many people had already taken for granted. Tuesday morning brought fresh new record highs to parts of the stock market, and it even sent the Dow Jones Industrial Average (DJINDICES: ^DJI) past a key milestone. Challenging the top early names in the industry have been companies like Village Farms International (NASDAQ: VFF) and GrowGeneration (NASDAQ: GRWG), both of which have found their own niche plays in cannabis. | Yet the most interesting move came from cannabis stocks like Aurora Cannabis (NYSE: ACB) and Tilray (NASDAQ: TLRY), which jumped apparently in response to something that many people had already taken for granted. Pot stocks go higher Aurora Cannabis saw its stock rise more than 20% on Tuesday morning. No matter what happens with cannabis stocks and other sectors of the market today, the long run has a lot of promise for investors across the market. | Yet the most interesting move came from cannabis stocks like Aurora Cannabis (NYSE: ACB) and Tilray (NASDAQ: TLRY), which jumped apparently in response to something that many people had already taken for granted. Pot stocks go higher Aurora Cannabis saw its stock rise more than 20% on Tuesday morning. With so many new companies in the business, investors have to be careful in assessing the true competitive advantages that Canopy Growth, Cronos, Tilray, and Aurora have. |
37098.0 | 2020-11-24 00:00:00 UTC | Pre-Market Most Active for Nov 24, 2020 : ACB, NIO, FCEL, XPEV, LI, AAL, TLRY, SPI, CCL, PLTR, RIG, TSLA | ACB | https://www.nasdaq.com/articles/pre-market-most-active-for-nov-24-2020-%3A-acb-nio-fcel-xpev-li-aal-tlry-spi-ccl-pltr-rig | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 50.7 to 11,956.64. The total Pre-Market volume is currently 127,421,058 shares traded.
The following are the most active stocks for the pre-market session:
Aurora Cannabis Inc. (ACB) is +2.09 at $9.27, with 7,816,424 shares traded. ACB's current last sale is 103% of the target price of $9.
NIO Inc. (NIO) is +2.78 at $58.16, with 6,700,115 shares traded., following a 52-week high recorded in prior regular session.
FuelCell Energy, Inc. (FCEL) is +0.96 at $9.51, with 6,058,857 shares traded., following a 52-week high recorded in prior regular session.
XPeng Inc. (XPEV) is +4.13 at $76.30, with 3,903,880 shares traded., following a 52-week high recorded in prior regular session.
Li Auto Inc. (LI) is +5.22 at $48.86, with 3,498,144 shares traded., following a 52-week high recorded in prior regular session.
American Airlines Group, Inc. (AAL) is +0.8 at $14.36, with 3,354,287 shares traded. AAL's current last sale is 143.6% of the target price of $10.
Tilray, Inc. (TLRY) is +1.22 at $7.90, with 3,255,406 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-0.14. TLRY's current last sale is 85.41% of the target price of $9.25.
SPI Energy Co., Ltd. (SPI) is +5.88 at $16.60, with 2,043,740 shares traded.
Carnival Corporation (CCL) is +1.25 at $19.43, with 1,887,638 shares traded. CCL's current last sale is 129.53% of the target price of $15.
Palantir Technologies Inc. (PLTR) is +1.2601 at $22.30, with 1,767,930 shares traded., following a 52-week high recorded in prior regular session.
Transocean Ltd. (RIG) is +0.37 at $2.17, with 1,535,198 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-0.16. RIG's current last sale is 173.6% of the target price of $1.25.
Tesla, Inc. (TSLA) is +25.37 at $547.22, with 1,368,089 shares traded., following a 52-week high recorded in prior regular session.
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 +2.09 at $9.27, with 7,816,424 shares traded. ACB's current last sale is 103% of the target price of $9. FuelCell Energy, Inc. (FCEL) is +0.96 at $9.51, with 6,058,857 shares traded., following a 52-week high recorded in prior regular session. | Aurora Cannabis Inc. (ACB) is +2.09 at $9.27, with 7,816,424 shares traded. ACB's current last sale is 103% of the target price of $9. NIO Inc. (NIO) is +2.78 at $58.16, with 6,700,115 shares traded., following a 52-week high recorded in prior regular session. | Aurora Cannabis Inc. (ACB) is +2.09 at $9.27, with 7,816,424 shares traded. ACB's current last sale is 103% of the target price of $9. NIO Inc. (NIO) is +2.78 at $58.16, with 6,700,115 shares traded., following a 52-week high recorded in prior regular session. | Aurora Cannabis Inc. (ACB) is +2.09 at $9.27, with 7,816,424 shares traded. ACB's current last sale is 103% of the target price of $9. The NASDAQ 100 Pre-Market Indicator is up 50.7 to 11,956.64. |
37099.0 | 2020-11-24 00:00:00 UTC | 4 Robinhood Stocks Billionaires Bought in Q3 | ACB | https://www.nasdaq.com/articles/4-robinhood-stocks-billionaires-bought-in-q3-2020-11-24 | nan | nan | It's been an exceptionally volatile year for the stock market, and that's been music to the ears of millennial and novice investors who envision getting rich quick on these wild vacillations. Online investing app Robinhood, which is known for its commission-free trades, fractional share investing, and gifting of stock to new members, has gained millions of new users in 2020 -- yet the average age of its user base is only 31.
While it's great to see young people using time as leverage to invest for their future, it's also unnerving that Robinhood hasn't given these millennial and novice investors the tools needed to truly succeed. Many don't understand the importance of long-term investing or compounding, and have instead chosen to chase penny stocks or otherwise awful companies.
Yet you might be surprised to learn that some of the most widely held Robinhood stocks were purchased hand over fist by billionaire money managers during the third quarter. Here are four of the most sought-after Robinhood stocks in Q3.
Image source: Getty Images.
Aurora Cannabis
This is not a joke. Chronic underperforming marijuana stock Aurora Cannabis (NYSE: ACB) was a popular purchase among 13F filers in the third quarter, and among a handful of billionaire money managers. Jim Simons' Renaissance Technologies opened a 447,378-share position during the quarter, with Ken Griffin's Citadel Advisors adding 418,994 shares to an existing position.
Despite once being the most-held stock on the Robinhood platform, Aurora has been a train wreck, which is what makes these billionaire buys so surprising. This is a company that's been ravaged by regulatory issues at the federal and provincial level in Canada, as well as the overzealousness of its previous management team. Aurora Cannabis grossly overestimated its capacity needs and overpaid for its acquisitions by a sizable amount. Last year's $3.3 billion Canadian net loss was predominantly the result of writedowns tied to overpriced buyouts and overextended capacity.
Aurora Cannabis has also shown little desire to do what's best for shareholders. Between June 2014 and October 2020, the company's outstanding share count grew by more than 11,800%, with the company's board recently approving a $500 million (that's U.S.) at-the-market offering to raise capital whenever it sees fit. It's drowning its shareholders in dilution and isn't even a lock to survive at this point.
Image source: Getty Images.
Palantir Technologies
Although it only became a public traded company on the final day of the third quarter, 13F filings show that data-mining company Palantir Technologies (NYSE: PLTR) was a hot buy among 13F filers and select billionaires. Steven Cohen's Point72 Asset Management gobbled up 29.9 million shares, with Larry Fink's BlackRock and Soros Fund Management, run by George Soros, picking up about 29.3 million and 18.5 million shares respectively.
The lure of Palantir is twofold. First, it opted for a direct listing instead of a traditional initial public offering. Without investment banks cheerleading on the sidelines, Palantir's initial valuation didn't skyrocket into the stratosphere. This allowed money managers and retail investors to build a position at a somewhat reasonable valuation.
The other factor that excited investors is Palantir's accelerating growth amid the pandemic. Providing its data-mining and analytics services for the federal government via its Gotham platform is certainly lucrative. Yet it's Palantir's opportunity with enterprise clients via the Foundry platform that'll be the longer-term and safer growth driver. Investors should expect double-digit annual sales growth for a long time to come.
Image source: Getty Images.
Plug Power
Another stock billionaires couldn't stop buying during the third quarter was hydrogen fuel-cell solutions provider Plug Power (NASDAQ: PLUG). In aggregate, 13F filers increased their stakes by more than 18% in Plug Power in Q3, with BlackRock's Larry Fink taking the biggest bite at an additional 7.63 million shares.
Concerns over climate change are driving a renewable energy revolution that goes well beyond broad-scale electric utilities. Plug Power is providing its hydrogen-powered technology mobility solutions (e.g., forklifts) to a number of brand-name retailers and grocers. This desire to go green, coupled with the coronavirus disease 2019 (COVID-19) pandemic dramatically increasing demand for many of Plug Power's core clients, has made for a banner year. Plug's full-year guidance implies year-on-year sales growth of around 35%.
Additionally, Plug Power has wisely locked in some of its most important clients with warrant deals. In 2017, Amazon (NASDAQ: AMZN) was granted warrants to acquire up to 55.3 million shares of Plug stock, with these warrants vesting based on Amazon's orders of fuel cell and hydrogen technology from Plug. Considering that Plug Power's stock has soared since this announcement, Amazon is fully incentivized to exercise these warrants and continue deepening its relationship with Plug.
Though still years from recurring profitability, renewable energy stock Plug Power definitely has Wall Street's attention.
Image source: Getty Images.
Slack Technologies
Fourth and finally, billionaire investors and high-dollar money managers were intrigued by software-as-a-service (SaaS) stock Slack Technologies (NYSE: WORK). In total, 13F filers added over 50 million net shares of Slack to their portfolios in the third quarter, with Larry Fink's BlackRock upping its position by 6.65 million shares.
The Slack buy thesis is built on the same premise that's been driving SaaS stocks for much of 2020: Businesses are becoming more dynamic and remote, so technology in the workplace needs to adapt to quickly share information. Slack is set up to be that trusted intercompany collaborative service. In the July ended quarter, it added approximately 8,000 net new paying clients and tallied 87 paying customers with north of $1 million in annual recurring revenue.
But Slack is also competing against some powerhouses. Microsoft's (NASDAQ: MSFT) Teams communication platform and Zoom Video Communications (NASDAQ: ZM) have really held Slack's valuation at bay. Microsoft's deep pockets and branding, along with Zoom's seemingly exponential video growth, have raised doubts about Slack's ability to compete for and keep clients. Then again, with Zoom focused on video and Microsoft working on more projects than I can count, it's also possible Slack has the upper hand on becoming the go-to collaborative service (perhaps not on the video end) in the workplace.
It's certainly a stock to keep a close eye on.
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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 Amazon. The Motley Fool owns shares of and recommends Amazon, Microsoft, Slack Technologies, and Zoom Video Communications and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 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. | Chronic underperforming marijuana stock Aurora Cannabis (NYSE: ACB) was a popular purchase among 13F filers in the third quarter, and among a handful of billionaire money managers. While it's great to see young people using time as leverage to invest for their future, it's also unnerving that Robinhood hasn't given these millennial and novice investors the tools needed to truly succeed. This desire to go green, coupled with the coronavirus disease 2019 (COVID-19) pandemic dramatically increasing demand for many of Plug Power's core clients, has made for a banner year. | Chronic underperforming marijuana stock Aurora Cannabis (NYSE: ACB) was a popular purchase among 13F filers in the third quarter, and among a handful of billionaire money managers. Plug Power Another stock billionaires couldn't stop buying during the third quarter was hydrogen fuel-cell solutions provider Plug Power (NASDAQ: PLUG). Microsoft's (NASDAQ: MSFT) Teams communication platform and Zoom Video Communications (NASDAQ: ZM) have really held Slack's valuation at bay. | Chronic underperforming marijuana stock Aurora Cannabis (NYSE: ACB) was a popular purchase among 13F filers in the third quarter, and among a handful of billionaire money managers. Plug Power Another stock billionaires couldn't stop buying during the third quarter was hydrogen fuel-cell solutions provider Plug Power (NASDAQ: PLUG). In 2017, Amazon (NASDAQ: AMZN) was granted warrants to acquire up to 55.3 million shares of Plug stock, with these warrants vesting based on Amazon's orders of fuel cell and hydrogen technology from Plug. | Chronic underperforming marijuana stock Aurora Cannabis (NYSE: ACB) was a popular purchase among 13F filers in the third quarter, and among a handful of billionaire money managers. Plug Power Another stock billionaires couldn't stop buying during the third quarter was hydrogen fuel-cell solutions provider Plug Power (NASDAQ: PLUG). Additionally, Plug Power has wisely locked in some of its most important clients with warrant deals. |
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