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37200.0 | 2020-10-27 00:00:00 UTC | 3 Figures That Show Aurora Cannabis Doesn't Have Its Shareholders' Best Interests in Mind | ACB | https://www.nasdaq.com/articles/3-figures-that-show-aurora-cannabis-doesnt-have-its-shareholders-best-interests-in-mind | nan | nan | Over the next decade, marijuana is projected to be one of the fastest growing industries in North America.
There are tens of billions of dollars in sales conducted annually in the black market, which implies that demand for cannabis products is strong. As legalizations pick up throughout the U.S., and with Canada becoming the first industrialized country to green light adult-use weed in the modern era in 2018, the time is ripe for investors to consider pouncing on pot stocks.
Throughout North America, no marijuana stock has been more popular or polarizing with the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB).
Image source: Getty Images.
Aurora's growth blueprint goes up in smoke
By the midpoint of 2019, Aurora looked as if it had a clear path to become a cannabis leader. The company had 15 cultivation facilities that, if fully built out, could yield north of 650,000 kilos of weed a year. Being able to produce so much cannabis made it more likely that the company's production costs per gram would be among the lowest in the industry, and that it'd sign numerous wholesale supply agreements.
It also had access to around two dozen international markets. This includes the U.S., which Aurora entered with its acquisition of cannabidiol (CBD)-focused company Reliva in May 2020. Since Canadian demand was expected to peak between 800,000 kilos and 1 million kilos per year, these international markets were being counted on as another channel of significant growth, and as a means of insulating the company's operating margins from dried cannabis oversupply in domestic markets.
Aurora even brought billionaire activist investor Nelson Peltz onboard in March 2019 as a strategic advisor. Peltz's expertise lies with consumer-packaged food and beverage companies, making him a logical choice to bridge an equity investment and/or partnership after Canopy Growth and Cronos Group had secured billion-dollar investments.
But as of today, Aurora has shuttered five of its smaller facilities, sold a 1-million-square-foot greenhouse that was never retrofit for pot production, and halted construction on two projects to conserve cash. Additionally, its international sales have been virtually nonexistent for a company with its reach, and Nelson Peltz recently resigned, with no equity investments or brand-name partnerships to show for it.
Image source: Getty Images.
News flash: Aurora Cannabis isn't helping its shareholders
Aurora Cannabis is an absolute mess, and there are three figures that unequivocally prove that this company doesn't have its shareholders' best interests in mind.
Relentless share-based dilution
To begin with, Aurora Cannabis is a serial diluter. For the past six years, the company has been issuing stock to raise capital, as well as using its common stock as collateral to complete the more than one dozen acquisition's it's made. Although every single Canadian licensed producer has issued stock to raise capital, fund deals, or pay bonuses to its employees or execs, the level of dilution at Aurora has been particularly bad.
Taking into account the 1-for-12 reverse split that was enacted by the company in May to avoid delisting from the New York Stock Exchange, Aurora had approximately 1.3 million shares outstanding, as of June 30, 2014. But as of June 30, 2020, Aurora had 115.2 million shares outstanding. That's a more than 8,700% increase in the company's outstanding share count in six years.
Here's another interesting way to look at this data: Over the trailing four years (through Oct. 24, 2020), Aurora's market cap is up 42%, but its share price is down 77%. That gap is entirely due to the company's relentless issuance of common stock.
As one on final note on this figure, Aurora's board approved a $250 million (that's U.S. dollars) at-the-market offering earlier this year. In other words, it's not done drowning investors with its share issuances.
Image source: Getty Images.
Massive writedowns
A second figure that demonstrates what little thought Aurora Cannabis has put into creating value for its shareholders is the company's fiscal 2020 writedown.
When one company buys another, it's not uncommon for the purchaser to pay a premium above and beyond the tangible value of the assets being acquired. For an acquirer, the goal is simple: Unlock value from the company it's buying (both physical and intellectual/intangible) and recoup all of the premium being paid. But somewhere along the line, Aurora's management team went way off track.
When Aurora made acquisitions, it's as if there was no planning done to come up with realistic valuations. With as little as 800,000 kilos of projected domestic demand for 2020-2021, the more than 600,000 kilos in peak annual output that Aurora was targeting just didn't make sense. The fact is, many of Aurora's deals were grossly overvalued, and it resulted in some massive writedowns in fiscal 2020.
Between July 1, 2019 and June 30, 2020, Aurora Cannabis wrote down $2.54 billion Canadian in goodwill, took an impairment charge of CA$157.8 million on its property, plant, and equipment, and took a charge of CA$75 million on its intangible assets. That's more than CA$2.8 billion down the tubes because of management's poor decision-making.
Image source: Getty Images.
Executive bonuses for a putrid operating performance
But don't worry -- I've saved the best figure for last.
Despite writing down close to half of the company's total assets in fiscal 2020, and seeing the company's share price decline by more than 96% since mid-March 2019, you'll be happy to know that Aurora Cannabis executives received pay raises and bonuses last year.
According to disclosures filed with SEDAR, all of the company's executives listed in the disclosure received salary or pay increases ranging between 9% and 16%. Additionally, share and option-based awards to executives rose a cool 58% from the prior-year period to CA$9.8 million. The disclosure also showed that now-retired CEO Terry Booth, who was behind many of the issues I've described, received almost CA$5 million in compensation.
Put another way, Aurora Cannabis is cutting jobs and slashing expenses in an effort to avoid defaulting on its debt covenant, and in fiscal 2020 reported a net loss of CA$3.3 billion, which is currently more than four times its market cap. And despite all this, total compensation to the company's executives increased CA$14.95 million from CA$9.49 million in the previous year.
This company does not deserve your money or your trust.
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. | Throughout North America, no marijuana stock has been more popular or polarizing with the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). As legalizations pick up throughout the U.S., and with Canada becoming the first industrialized country to green light adult-use weed in the modern era in 2018, the time is ripe for investors to consider pouncing on pot stocks. Although every single Canadian licensed producer has issued stock to raise capital, fund deals, or pay bonuses to its employees or execs, the level of dilution at Aurora has been particularly bad. | Throughout North America, no marijuana stock has been more popular or polarizing with the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). Although every single Canadian licensed producer has issued stock to raise capital, fund deals, or pay bonuses to its employees or execs, the level of dilution at Aurora has been particularly bad. Despite writing down close to half of the company's total assets in fiscal 2020, and seeing the company's share price decline by more than 96% since mid-March 2019, you'll be happy to know that Aurora Cannabis executives received pay raises and bonuses last year. | Throughout North America, no marijuana stock has been more popular or polarizing with the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). Since Canadian demand was expected to peak between 800,000 kilos and 1 million kilos per year, these international markets were being counted on as another channel of significant growth, and as a means of insulating the company's operating margins from dried cannabis oversupply in domestic markets. News flash: Aurora Cannabis isn't helping its shareholders Aurora Cannabis is an absolute mess, and there are three figures that unequivocally prove that this company doesn't have its shareholders' best interests in mind. | Throughout North America, no marijuana stock has been more popular or polarizing with the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). Despite writing down close to half of the company's total assets in fiscal 2020, and seeing the company's share price decline by more than 96% since mid-March 2019, you'll be happy to know that Aurora Cannabis executives received pay raises and bonuses last year. And despite all this, total compensation to the company's executives increased CA$14.95 million from CA$9.49 million in the previous year. |
37201.0 | 2020-10-27 00:00:00 UTC | Why Aurora Cannabis, Canopy Growth, and Tilray Stocks Were Down 5% (and More) on Monday | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-canopy-growth-and-tilray-stocks-were-down-5-and-more-on-monday-2020-10 | nan | nan | What happened
For the second day running, marijuana stocks are in a funk. Shares of cannabis industry giant Canopy Growth Corporation (NYSE: CGC) fell 6% on Monday, while smaller Aurora Cannabis (NYSE: ACB) slipped 6% and Tilray (NASDAQ: TLRY) tumbled 13%.
Personally, I blame Joe Biden for this -- and Donald Trump, too.
Image source: Getty Images.
So what
Earlier this month, the Vice Presidential debate featured a clear and unequivocal promise from Vice Presidential candidate Kamala Harris to "decriminalize marijuana" and "expunge the records of those who have been convicted of marijuana" related offenses, removing the stigma from cannabis use. One week later, Presidential candidate Joe Biden repeated the pledge to "decriminalize marijuana, wipe out the record."
Marijuana stock investors may have entertained similar hopes for the final presidential debate, held last Thursday -- the rising stock prices of each of Canopy Growth, Aurora Cannabis, and Tilray certainly seemed to suggest that was what they were hoping, at least. But as it turned out, neither President Trump nor his opponent uttered a single word on the subject of marijuana legalization. The subject of cannabis simply didn't come up.
And all three of these marijuana stocks have declined for the last two weekdays in a row in consequence.
Now what
Should investors really be disappointed about that, though?
After all, if you tally up all the states that are voting to legalize marijuana for either medical use, recreational use -- or both -- next month, there's a very real chance that come Nov. 4, marijuana could become socially acceptable and readily accessible in more than three out of four U.S. states (and the District of Columbia and Puerto Rico).
Sure, no one took the opportunity to talk up cannabis at last week's debate. But even so, the Biden-Harris ticket remains on record supporting cannabis legalization,and continues to lead in national polls. If they prevail on Nov. 3, marijuana could very well become legal at the national level -- and that would be very good news for marijuana investors.
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. | Shares of cannabis industry giant Canopy Growth Corporation (NYSE: CGC) fell 6% on Monday, while smaller Aurora Cannabis (NYSE: ACB) slipped 6% and Tilray (NASDAQ: TLRY) tumbled 13%. So what Earlier this month, the Vice Presidential debate featured a clear and unequivocal promise from Vice Presidential candidate Kamala Harris to "decriminalize marijuana" and "expunge the records of those who have been convicted of marijuana" related offenses, removing the stigma from cannabis use. One week later, Presidential candidate Joe Biden repeated the pledge to "decriminalize marijuana, wipe out the record." | Shares of cannabis industry giant Canopy Growth Corporation (NYSE: CGC) fell 6% on Monday, while smaller Aurora Cannabis (NYSE: ACB) slipped 6% and Tilray (NASDAQ: TLRY) tumbled 13%. One week later, Presidential candidate Joe Biden repeated the pledge to "decriminalize marijuana, wipe out the record." Marijuana stock investors may have entertained similar hopes for the final presidential debate, held last Thursday -- the rising stock prices of each of Canopy Growth, Aurora Cannabis, and Tilray certainly seemed to suggest that was what they were hoping, at least. | Shares of cannabis industry giant Canopy Growth Corporation (NYSE: CGC) fell 6% on Monday, while smaller Aurora Cannabis (NYSE: ACB) slipped 6% and Tilray (NASDAQ: TLRY) tumbled 13%. So what Earlier this month, the Vice Presidential debate featured a clear and unequivocal promise from Vice Presidential candidate Kamala Harris to "decriminalize marijuana" and "expunge the records of those who have been convicted of marijuana" related offenses, removing the stigma from cannabis use. Marijuana stock investors may have entertained similar hopes for the final presidential debate, held last Thursday -- the rising stock prices of each of Canopy Growth, Aurora Cannabis, and Tilray certainly seemed to suggest that was what they were hoping, at least. | Shares of cannabis industry giant Canopy Growth Corporation (NYSE: CGC) fell 6% on Monday, while smaller Aurora Cannabis (NYSE: ACB) slipped 6% and Tilray (NASDAQ: TLRY) tumbled 13%. 10 stocks we like better than Aurora Cannabis Inc. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
37202.0 | 2020-10-26 00:00:00 UTC | 3 Fast-Growing Stocks Robinhood Investors Can't Buy but Would Probably Love | ACB | https://www.nasdaq.com/articles/3-fast-growing-stocks-robinhood-investors-cant-buy-but-would-probably-love-2020-10-26 | nan | nan | Sorry, Robinhood investors. There are some stocks that you just can't buy on the popular trading platform.
What's the deal? Robinhood doesn't allow buying and selling many stocks that trade over the counter (i.e., not on a centralized stock exchange like Nasdaq and the New York Stock Exchange.) Granted, there are a few OTC stocks you can buy on Robinhood, but the company has cherry-picked the ones that it allows.
This might not be a huge problem. However, it means that several great U.S.-based pure-play marijuana stocks can't be bought on Robinhood since they can only trade over the counter due to cannabis being illegal at the federal level. Meanwhile, five Canadian marijuana stocks rank among the 100 most popular stocks on Robinhood.
Here are three fast-growing pot stocks that Robinhood investors can't buy right now but would probably love.
Image source: Getty Images.
1. Curaleaf Holdings
Curaleaf Holdings (OTC: CURLF) ranks as the biggest U.S.-based cannabis operator in terms of market cap and trails behind only Canopy Growth (NYSE: CGC) among all pure-play pot stocks. Robinhood investors can buy Canopy but can't buy Curaleaf. That's a shame because Curaleaf appears to be a better pick on nearly every front.
For one thing, Curaleaf already consistently generates positive earnings before interest, taxes, depreciation, and amortization (EBITDA); Canopy and most of its Canadian peers don't. Curaleaf reported revenue of $121.4 million in its latest quarter (including its managed entities), a 120% year-over-year jump. Canopy posted net revenue of 110 million in Canadian dollars (roughly US$84 million) in its latest quarter, up 22% from the prior-year period.
While Canopy can only hope to enter the lucrative U.S. market, Curaleaf already operates in 23 states. It runs 95 dispensaries, 22 cultivation sites, and more than 30 processing facilities. Growth shouldn't be a problem at all for Curaleaf. Several of the states where it operates have cannabis markets only in their early stages.
2. Green Thumb Industries
Let's compare Green Thumb Industries (OTC: GTBIF) to the most popular pot stock on Robinhood -- Aurora Cannabis (NYSE: ACB). I'll warn you in advance, though: It's not much of a contest.
Like Curaleaf, Green Thumb already consistently delivers positive EBITDA and is on track to be profitable next year. Like Canopy, Aurora doesn't. Green Thumb's revenue soared nearly 168% year over year in Q2 to $119.6 million, only a smidgeon behind Curleaf's revenue total. Aurora's latest quarterly revenue declined both from the prior-year period and the previous quarter to CA$72.1 million (around US$55 million).
Green Thumb should have plenty of room to run. The recreational marijuana market in its home state of Illinois is sizzling hot. The company recently opened its 49th retail cannabis store nationwide in Pennsylvania, which claims a fast-growing medical cannabis market. Green Thumb still has another 47 retail licenses that allow it to launch new stores across the country.
3. Trulieve Cannabis
Trulieve Cannabis (OTC: TCNNF) claims a key advantage over all of the stocks mentioned so far: It's already profitable. The U.S. cannabis operator has delivered positive and growing adjusted EBITDA in 10 consecutive quarters.
In its latest quarter, Trulieve reported record revenue of $120.8 million, more than double the total generated in the prior-year period and a 26% quarter-over-quarter increase. What's especially impressive is that the company posted free cash flow of $39.6 million.
You could accurately describe Trulieve as the 800-pound gorilla of the large medical cannabis market in Florida. Sixty-three of the company's 65 stores are in the Sunshine State, where it commands a 50% market share. However, Trulieve is also expanding into other markets. It now has operations in California, Massachusetts, and Connecticut. With its strong financial position, the company seems likely to continue moving into new markets in the future.
Changes could be on the way
For now, if Robinhood investors want to buy any of these top U.S. marijuana stocks they'll have to do so on a different trading platform. But changes could be on the way.
The U.S. elections in November just might set the stage for federal cannabis laws to be revised. Should Democrats win the presidency and sweep both legislative chambers, there's a good chance that legislation could be passed that legalizes medical cannabis nationwide and recognizes the rights of states to enforce their own cannabis laws. If that happens, Curaleaf, Green Thumb, and Trulieve would be able to list their shares on major U.S. stock exchanges, giving Robinhood investors an opportunity at long last to buy these hot 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
Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Green Thumb Industries. 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. | Green Thumb Industries Let's compare Green Thumb Industries (OTC: GTBIF) to the most popular pot stock on Robinhood -- Aurora Cannabis (NYSE: ACB). However, it means that several great U.S.-based pure-play marijuana stocks can't be bought on Robinhood since they can only trade over the counter due to cannabis being illegal at the federal level. For one thing, Curaleaf already consistently generates positive earnings before interest, taxes, depreciation, and amortization (EBITDA); Canopy and most of its Canadian peers don't. | Green Thumb Industries Let's compare Green Thumb Industries (OTC: GTBIF) to the most popular pot stock on Robinhood -- Aurora Cannabis (NYSE: ACB). Here are three fast-growing pot stocks that Robinhood investors can't buy right now but would probably love. Robinhood investors can buy Canopy but can't buy Curaleaf. | Green Thumb Industries Let's compare Green Thumb Industries (OTC: GTBIF) to the most popular pot stock on Robinhood -- Aurora Cannabis (NYSE: ACB). Robinhood doesn't allow buying and selling many stocks that trade over the counter (i.e., not on a centralized stock exchange like Nasdaq and the New York Stock Exchange.) If that happens, Curaleaf, Green Thumb, and Trulieve would be able to list their shares on major U.S. stock exchanges, giving Robinhood investors an opportunity at long last to buy these hot pot stocks. | Green Thumb Industries Let's compare Green Thumb Industries (OTC: GTBIF) to the most popular pot stock on Robinhood -- Aurora Cannabis (NYSE: ACB). Several of the states where it operates have cannabis markets only in their early stages. Trulieve Cannabis Trulieve Cannabis (OTC: TCNNF) claims a key advantage over all of the stocks mentioned so far: It's already profitable. |
37203.0 | 2020-10-24 00:00:00 UTC | These 2 Pot Stocks Face a Challenging Future, Even if Biden Wins | ACB | https://www.nasdaq.com/articles/these-2-pot-stocks-face-a-challenging-future-even-if-biden-wins-2020-10-24 | nan | nan | There's a lot of excitement in the cannabis industry about what a possible election win by Joe Biden might mean for pot stocks. Under President Trump, there hasn't been any significant movement on marijuana legalization. But if Biden wins the Oval, there is potential for -- at least -- the decriminalization of marijuana. His running mate, Kamala Harris, said that her ticket would decriminalize the Schedule 1 drug in a debate earlier this month, causing marijuana stocks to rally as much as 10% on the day.
However, if decriminalization happens, it won't have the same effects as outright legalization. There would still be plenty of restrictions facing industry players in a decriminalization scenario. And until legalization happens, two of the largest Canadian pot stocks, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), will struggle to grow with limited access to the U.S. market. At the end of the day, it probably won't matter who wins the U.S. presidential election, and both will face tough roads ahead.
1. Aurora Cannabis
In December 2018, the U.S. Senate passed the Farm Bill, which made hemp-derived cannabidiol (CBD) products legal at the federal level. It presented a legal way for Canadian pot stocks to enter the U.S. cannabis market. In May, Aurora Cannabis announced that it closed on its $40 million acquisition of Reliva, which sells hemp-based CBD products in the U.S. While the acquisition is an opportunity for Aurora to tap into a new and exciting market, it's not going to lead to explosive growth.
Research company Brightfield Group recently slashed its forecast for the entire U.S. CBD market, which includes more than just hemp-based products. Previously, the company was projecting the market to be worth $20 billion by 2023. But now, demand isn't looking as strong, and Brightfield expects that number to be just $12.4 billion. For 2020, it's estimating the market will reach $4.7 billion in sales.
Image source: Getty Images.
Aurora faces a crowded field of competitors in the U.S. in the form of companies like Charlotte's Web and Green Thumb Industries. Battling for market share in what's not a large segment to begin with may not lead to the sales growth that Aurora (and its anxious investors) is clamoring for.
When Aurora released its fourth-quarter results on Sept. 24, its net sales for the period ended June 30 totaled 72.1 million Canadian dollars ($54.86 million), which was a 5% decline from the previous period. And for its next quarter, Aurora is projecting its cannabis net sales (which is separate from total net sales but makes up the vast majority of it) to come in no higher than CA$64 million -- they were CA$67.5 million in Q4. For the full fiscal year, the company reported a net loss totaling CA$3.3 billion, mostly due to impairment losses.
2. Canopy Growth
Canopy Growth turned heads last year when it announced plans to acquire Acreage Holdings (OTC: ACRGF). After all, the company couldn't technically do a deal with Acreage -- not without running into trouble with the exchanges, as it would be investing in the U.S. cannabis industry, which is not compliant with U.S. federal law. The pot producer's solution was to put a huge asterisk on the agreement to say that once it's legal to do so, it will close the deal.
Although Canopy Growth and Acreage announced in October that the Canadian producer's cannabis beverages will be hitting the U.S. market next summer, investors should be careful with interpreting what that really means. The press release stated that Acreage would be launching Canopy Growth's "sessionable tetrahydrocannabinol (THC) beverage formulations," not the company's actual products -- which can't legally cross the border. The announcement is a clever way to stir up excitement, and while Acreage can certainly help gauge interest for Canopy Growth's beverages, it's not the same as the Ontario-based company actually selling its beverages directly to U.S. consumers.
Like Aurora, Canopy Growth has been struggling to grow its sales this year. On Aug. 10, it reported net revenue of CA$110.4 million for the period ended June 30, which was up just 2.3% from the previous quarter. The company also called the new year, fiscal 2021, a "transition year" as it looks to make changes in the business to achieve positive net income. Canopy Growth recorded a mammoth CA$1.4 billion loss in fiscal 2020 as impairments weighed down its financials. In the first quarter of 2021, its net loss totaled CA$128.3 million.
Cannabis investors should temper their expectations for these pot stocks
It's possible that if Biden wins the election in November, pot stocks surge on the results. But investors should be careful to note that there are other, more pressing issues (like the floundering economy) that he'd need to address amid the coronavirus pandemic. It could still be years before the U.S. government makes a significant move on marijuana legalization. And without full, unrestricted access to the U.S. market, it'll remain a challenge for Aurora and Canopy Growth to generate strong sales growth as they'll have to continue battling for market share in Canada, where the legal pot market is two years old and full of companies jockeying for footing in the industry.
Although both stocks have been struggling lately, Aurora's doing noticeably worse in 2020:
^SPX data by YCharts
Unfortunately, these trends may not improve over the long haul. While these pot stocks may get a boost in November if democrats gain control of The White House and Congress, investors shouldn't expect the bullishness to last.
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 Charlottes Web Holdings and Green Thumb Industries. The Motley Fool recommends Charlotte's Web. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And until legalization happens, two of the largest Canadian pot stocks, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), will struggle to grow with limited access to the U.S. market. His running mate, Kamala Harris, said that her ticket would decriminalize the Schedule 1 drug in a debate earlier this month, causing marijuana stocks to rally as much as 10% on the day. Although Canopy Growth and Acreage announced in October that the Canadian producer's cannabis beverages will be hitting the U.S. market next summer, investors should be careful with interpreting what that really means. | And until legalization happens, two of the largest Canadian pot stocks, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), will struggle to grow with limited access to the U.S. market. When Aurora released its fourth-quarter results on Sept. 24, its net sales for the period ended June 30 totaled 72.1 million Canadian dollars ($54.86 million), which was a 5% decline from the previous period. For the full fiscal year, the company reported a net loss totaling CA$3.3 billion, mostly due to impairment losses. | And until legalization happens, two of the largest Canadian pot stocks, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), will struggle to grow with limited access to the U.S. market. And for its next quarter, Aurora is projecting its cannabis net sales (which is separate from total net sales but makes up the vast majority of it) to come in no higher than CA$64 million -- they were CA$67.5 million in Q4. And without full, unrestricted access to the U.S. market, it'll remain a challenge for Aurora and Canopy Growth to generate strong sales growth as they'll have to continue battling for market share in Canada, where the legal pot market is two years old and full of companies jockeying for footing in the industry. | And until legalization happens, two of the largest Canadian pot stocks, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), will struggle to grow with limited access to the U.S. market. In May, Aurora Cannabis announced that it closed on its $40 million acquisition of Reliva, which sells hemp-based CBD products in the U.S. Like Aurora, Canopy Growth has been struggling to grow its sales this year. |
37204.0 | 2020-10-22 00:00:00 UTC | Was it All Bad News in Aphria's Q1 Results? | ACB | https://www.nasdaq.com/articles/was-it-all-bad-news-in-aphrias-q1-results-2020-10-22 | nan | nan | Canadian marijuana company Aphria (NASDAQ: APHA) is often viewed as a (relatively) safe pot stock pick. Aphria's peers, including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), have recently gone on acquisition and expansion sprees, scaring some investors away with rapid growth strategy implementation. These actions have made it hard for Aurora and Canopy to control their expenses and grow revenue high enough to achieve positive earnings before income, tax, depreciation, and amortization (EBITDA). Aphria has noted their examples, and is instead taking an asset-light approach to business and focusing on its core operations in Canada. However, Aphria's fiscal 2021 first-quarter results, reported Oct. 15, disappointed investors, and the stock dipped 18%.
Aphria's bottom line is what truly spooked investors. Losses for the quarter ended Aug. 31 came in at 5.1 million Canadian dollars compared to a net profit of CA$16.4 million in the year-ago period. But was it all bad news in the first quarter, or is it wise to buy this stock during its dive?
Image source: Getty Images.
Net losses in Q1 did not please investors
The net losses in the first quarter were a huge letdown. But on the bright side, losses came in lower than the loss of CA$98.8 million in Q4 2019. Aphria also reported a 17% decline in distribution revenue to CA$82.2 million, a fall from CA$95.3 million in Q1 2021. Its distribution revenue includes CA$79.6 million from its German subsidiary CC Pharma and CA$250,000 from its other distribution locations in Malta, Italy, Colombia, Argentina, Australia, and Israel.
In the recentearnings call management said the distribution revenue decline was a result of the coronavirus pandemic. But note that a sizable chunk of Aphria's revenue still comes from its medical and recreational product segments. Its selling, general, and administrative costs (SG&A) are probably most responsible for the drag on the bottom line, having increased to CA$54.4 million from CA$41.14 million in the year-ago quarter. Management attributed the jump to increased operating linked to rising global operations and a hike in selling costs associated with the company's higher sales.
The total net revenue for the quarter grew 16% year over year to CA$146 million but fell 4% from the prior quarter. Sales also missed analysts' estimates of CA$160 million.
It's not all bad news!
When a company reports losses, other good things happening in the background can sometimes go unnoticed. This absolutely applies to Aphria. Even though distribution revenue declined, the company grew cannabis revenue from CA$35 million to CA$82.2 million in Q1. Cannabis revenue even increased sequentially from CA$65.4 million in Q4.
Aphria's dependence on distribution revenue from its German subsidiary and others could be detrimental in the longer run. Instead, it should focus on growing its revenue in its home country. Canada has legalized both medical and recreational cannabis, as well as derivative products. (Derivatives like vapes, edibles, concentrates, and beverages have only been legal nationwide since October 2019.) A main challenge in Canada is the regulatory hold-ups that delay legal store openings, but that situation seems to be improving this year. It's evident that Aphria is slowly directing efforts toward its home country, by looking at the jump in recreational and medical revenues this quarter.
The first quarter of FY 2021 marked Aphria's sixth consecutive quarter of positive EBITDA. The measurement rang in at CA$10 million, a drastic jump from CA$1.0 million in the year-ago quarter. This achievement means more in the context of Aphria's peers' struggles. Aurora Cannabis, for example, is slashing costs through rationalizing facilities in an effort to achieve positive EBITDA by the second quarter of FY 2021.
Should you buy and hold this stock after its Q1 results?
The U.S. is another key marijuana market for Aphria. Cannabis derivatives will have an immense opportunity in a legalized U.S. market -- if (or when) federal legalization comes.
Aphria is seeing promising numbers from its vape products, which contributed 13% of total gross cannabis revenue in the quarter. Vape sales also increased by 17% sequentially, proving the strength of Aphria's brands. It sells its medical and recreational marijuana products under the Aphria, Broken Coast, and Solei names.
Aphria ended the first quarter strong with CA$400.0 million of cash and cash equivalents, which it plans to use to fuel expansion in Canada and internationally. Shares of the stock are down 11% so far this year, better than Canopy and Aurora's dips of 16% and 84%, respectively. Meanwhile, the Horizons Marijuana Life Sciences ETF has sunk 30.3% over the same period.
APHA data by YCharts
Despite its current dive, Aphria remains one of the best cannabis stocks available. With some of the best revenue numbers in the industry, a strong balance sheet, and consistent EBITDA, this pot stock's future is still looking bright.
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. | Aphria's peers, including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), have recently gone on acquisition and expansion sprees, scaring some investors away with rapid growth strategy implementation. These actions have made it hard for Aurora and Canopy to control their expenses and grow revenue high enough to achieve positive earnings before income, tax, depreciation, and amortization (EBITDA). Aurora Cannabis, for example, is slashing costs through rationalizing facilities in an effort to achieve positive EBITDA by the second quarter of FY 2021. | Aphria's peers, including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), have recently gone on acquisition and expansion sprees, scaring some investors away with rapid growth strategy implementation. The total net revenue for the quarter grew 16% year over year to CA$146 million but fell 4% from the prior quarter. Even though distribution revenue declined, the company grew cannabis revenue from CA$35 million to CA$82.2 million in Q1. | Aphria's peers, including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), have recently gone on acquisition and expansion sprees, scaring some investors away with rapid growth strategy implementation. Aphria also reported a 17% decline in distribution revenue to CA$82.2 million, a fall from CA$95.3 million in Q1 2021. The total net revenue for the quarter grew 16% year over year to CA$146 million but fell 4% from the prior quarter. | Aphria's peers, including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), have recently gone on acquisition and expansion sprees, scaring some investors away with rapid growth strategy implementation. Canadian marijuana company Aphria (NASDAQ: APHA) is often viewed as a (relatively) safe pot stock pick. Losses for the quarter ended Aug. 31 came in at 5.1 million Canadian dollars compared to a net profit of CA$16.4 million in the year-ago period. |
37205.0 | 2020-10-22 00:00:00 UTC | 3 Stocks Robinhood Investors Should Give Up On | ACB | https://www.nasdaq.com/articles/3-stocks-robinhood-investors-should-give-up-on-2020-10-22 | nan | nan | It's been an exceptionally volatile year on Wall Street, with the broad-based S&P 500 losing more than a third of its value at one point during the first quarter, then regaining everything that was lost in under five months. The CBOE Volatility Index saw its highest reading on record in March.
When volatility spikes, we often witness young and novice investors pile into the stock market in hopes of getting rich quick. Just take a peek at the rapidly growing membership data for online investing app Robinhood if you don't believe me.
Robinhood, which is best known for offering commission-free trades, fractional-share investments, and gifts free shares of stock to new users, has gained millions of members in 2020. The average age of its users is just 31. While it's great that young people are putting their money to work in the stock market, Robinhood isn't giving its members the tools or education needed to understand the importance and compounding potential of long-term investing. As a result, Robinhood investors own a lot of awful companies.
Here are three of the most popular Robinhood stocks that investors should probably give up on.
Image source: Getty Images.
Aurora Cannabis
If there's an investment trend that millennials absolutely love, it's marijuana. Unfortunately, Robinhood investors aren't allowed to buy over-the-counter marijuana stocks, which relegates them to invest in underperforming Canadian pot stocks. Among these, young investors have latched onto Aurora Cannabis (NYSE: ACB).
As of mid-March 2019, Aurora Cannabis looked like it had its ducks in a row. It had 15 cultivation facilities and was capable of well over 600,000 kilos of weed output per year at its peak. The company also had access to two dozen countries outside of Canada. As the icing on the cake, Aurora had hired billionaire activist investor Nelson Peltz as the company's strategic advisor. The expectation was that Peltz, who had strong ties to the consumer packaged goods industry, would be the bridge to an equity investment from a brand-name food or beverage company.
Today, Aurora Cannabis is a dumpster fire. It's closed five of its smaller production facilities, sold a 1-million-square-foot greenhouse that was never retrofit for pot production, and halted construction on two of its largest projects to conserve cash. Peltz has also stepped down from his role as an advisor.
What's more, Aurora's domestic pot sales have been stagnant despite licensed cannabis store sales in Canada hitting all-time highs. The company and its peers are being forced to compete with illicit producers by selling value products that are absolutely crushing margins.
Aurora's balance sheet has also been an utter mess. In fiscal 2020, the company took nearly $3 billion Canadian in writedowns, and its cash situation is precarious at best. The only effective way for Aurora to raise capital has been to undertake at-the-market stock offerings that dilute existing shareholders.
Long story short, Robinhood investors should give up on Aurora Cannabis.
Image source: Getty Images.
TOP Ships
Another popular stock with millennial investors that'll have you absolutely scratching your head in disbelief is shipping company TOP Ships (NASDAQ: TOPS).
Prior to the Great Recession, TOP Ships was an in-demand company with a potentially bright future. However, with the pricing for contracts to ship oil, petroleum product, and certain liquid chemicals falling steadily throughout much of the past decade, TOP Ships is an even greater mess than Aurora Cannabis.
I believe the only reason TOP Ships avoided a bankruptcy reorganization after the Great Recession is that it's been liberally selling its stock to raise capital and enacting reverse to avoid delisting from the Nasdaq. This rinse-and-repeat cycle has completely destroyed shareholder value, yet continues to attract investors who may not know better.
Over the past 12.5 years, TOP Ships has enacted 10 reverse splits to avoid being delisted to the OTC exchange. Seven of these reverse splits have taken place since May 2017, with a number of them being large in scale (1-for-10 or larger). After hitting its all-time reverse-split-adjusted high in 2004, TOP Ships has fallen from (I hope you're sitting down for this) $4,562,459,852,800.00 a share to the $1.13 a share it closed at on Oct. 19.
Even with TOP Ships' execs pledging not to sell any stock to raise capital or enact any reverse splits in the near future, the company's history of obliterating shareholder value in an industry with declining fundamentals tells a different tale. Robinhood investors are urged to avoid TOP Ships.
Image source: Getty Images.
Hertz Global
A final stock that Robinhood investors need to give up on is car rental giant Hertz Global (NYSE: HTZ).
Hertz caught fire shortly after its May bankruptcy filing on the possibility that it could be acquired. It again more than doubled last week after securing $1.65 billion in debtor-in-possession financing to continue its operations during its reorganization process. As you may have guessed, Hertz was pushed into bankruptcy after the coronavirus pandemic caused travel to plummet.
Unfortunately, wishful thinking isn't going to get investors very far with Hertz. The company has about $19 billion in debt on its balance sheet, most of which is tied to its fleet of vehicles. It now has an additional $1.65 billion in debtor financing on top of that. If and when Hertz exits bankruptcy, the company's bondholders are going to hold the vast majority of equity in the company. It's possible common stockholders could receive some equity during the reorganization, but it's far likelier that they won't receive a red cent when all is said and done.
What's also unclear is when the U.S. travel industry is going to return to normal. There are many unknowns surrounding a coronavirus vaccine and travelers' willingness to take vacations, or even business trips. Even after reorganizing under the umbrella of Chapter 11 bankruptcy, Hertz is no sure success.
In short, Robinhood investors should hit the brakes and exit the vehicle.
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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. | Among these, young investors have latched onto Aurora Cannabis (NYSE: ACB). While it's great that young people are putting their money to work in the stock market, Robinhood isn't giving its members the tools or education needed to understand the importance and compounding potential of long-term investing. The expectation was that Peltz, who had strong ties to the consumer packaged goods industry, would be the bridge to an equity investment from a brand-name food or beverage company. | Among these, young investors have latched onto Aurora Cannabis (NYSE: ACB). TOP Ships Another popular stock with millennial investors that'll have you absolutely scratching your head in disbelief is shipping company TOP Ships (NASDAQ: TOPS). I believe the only reason TOP Ships avoided a bankruptcy reorganization after the Great Recession is that it's been liberally selling its stock to raise capital and enacting reverse to avoid delisting from the Nasdaq. | Among these, young investors have latched onto Aurora Cannabis (NYSE: ACB). Unfortunately, Robinhood investors aren't allowed to buy over-the-counter marijuana stocks, which relegates them to invest in underperforming Canadian pot stocks. TOP Ships Another popular stock with millennial investors that'll have you absolutely scratching your head in disbelief is shipping company TOP Ships (NASDAQ: TOPS). | Among these, young investors have latched onto Aurora Cannabis (NYSE: ACB). Unfortunately, Robinhood investors aren't allowed to buy over-the-counter marijuana stocks, which relegates them to invest in underperforming Canadian pot stocks. Long story short, Robinhood investors should give up on Aurora Cannabis. |
37206.0 | 2020-10-21 00:00:00 UTC | Why Marijuana Stocks Canopy Growth, Tilray, and Aurora Cannabis All Rose on Wednesday | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-canopy-growth-tilray-and-aurora-cannabis-all-rose-on-wednesday-2020 | nan | nan | What happened
Cannabis stock investors were clearly fired up on Wednesday, bidding up the shares of Canadian players Canopy Growth (NYSE: CGC), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NYSE: ACB). Canopy Growth was the champ of the trio, advancing by 3.2% on the day, while both Tilray and Aurora rose by just under 3%.
So what
On Wednesday. the see-saw that is publicly traded marijuana was on an up cycle. The likely catalyst was the latest official figures from Statistics Canada. These show that cannabis sales climbed by over 5% on a month-over-month basis to hit $244.9 million Canadian ($186 million) in August -- a new monthly record.
Image source: Getty Images.
Better, all of the country's 13 provinces and territories recorded increases, and not only for August -- they have now notched gains for three months in a row. Paving the way was the most populous province, Ontario, which collectively spent just under CA$67 million ($50.9 million) during the month, a 10.9% increase.
Now what
While we can attribute at least some of the continued gains to the isolation of the coronavirus pandemic, a growth rate of 5%-plus is highly encouraging regardless, particularly considering that every part of Canada is contributing.
This is a good sign for Canopy Growth, Tilray, and Aurora, as they are all multi-faceted cannabis businesses active throughout the country. While the marijuana industry faces a host of daunting challenges, it's increasingly obvious that consumer demand for product is not one of them.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming.
Cannabis legalization is sweeping over North America – 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. | What happened Cannabis stock investors were clearly fired up on Wednesday, bidding up the shares of Canadian players Canopy Growth (NYSE: CGC), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NYSE: ACB). Now what While we can attribute at least some of the continued gains to the isolation of the coronavirus pandemic, a growth rate of 5%-plus is highly encouraging regardless, particularly considering that every part of Canada is contributing. This is a good sign for Canopy Growth, Tilray, and Aurora, as they are all multi-faceted cannabis businesses active throughout the country. | What happened Cannabis stock investors were clearly fired up on Wednesday, bidding up the shares of Canadian players Canopy Growth (NYSE: CGC), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NYSE: ACB). These show that cannabis sales climbed by over 5% on a month-over-month basis to hit $244.9 million Canadian ($186 million) in August -- a new monthly record. This is a good sign for Canopy Growth, Tilray, and Aurora, as they are all multi-faceted cannabis businesses active throughout the country. | What happened Cannabis stock investors were clearly fired up on Wednesday, bidding up the shares of Canadian players Canopy Growth (NYSE: CGC), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NYSE: ACB). 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. 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. | What happened Cannabis stock investors were clearly fired up on Wednesday, bidding up the shares of Canadian players Canopy Growth (NYSE: CGC), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NYSE: ACB). the see-saw that is publicly traded marijuana was on an up cycle. The Motley Fool has no position in any of the stocks mentioned. |
37207.0 | 2020-10-21 00:00:00 UTC | CANADA STOCKS-TSX falls as energy sector drags on weaker oil prices | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-as-energy-sector-drags-on-weaker-oil-prices-2020-10-21 | nan | nan | Oct 21 (Reuters) - Canada's main stock index fell on Wednesday, dragged by energy stocks, as oil prices fell after a surprise build-up in U.S. crude stockpiles stoked concerns of a supply glut and a spike in global COVID-19 cases fueled demand worries.
* The energy sector .SPTTEN dropped 1.6% as U.S. crude CLc1 prices were down 2.1% a barrel, while Brent crude LCOc1 lost 1.7%. O/R
* At 9:40 a.m. ET (13:40 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 19.61 points, or 0.12%, at 16,253.65.
* Canada's annual inflation rate in September rose to 0.5% from 0.1% in August, on transportation, recreation and higher prices for new housing, Statistics Canada said.
* Canadian National Railway Co CNR.TO fell 3.6%, the most on the TSX, after the railroad operator posted third-quarter profit below analysts' expectations.
* The second-biggest decliner was oil producer Imperial Oil Limited IMO.TO, down 2.5%.
* The financials sector .SPTTFS slipped 0.2%. The industrials sector .GSPTTIN fell 0.8%.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 1.2% as gold futures GCc1 rose 0.6% to $1,922.6 an ounce. GOL/
* On the TSX, 116 issues were higher, while 103 issues declined for a 1.13-to-1 ratio favouring gainers, with 14.33 million shares traded.
* Weed stocks Aurora Cannabis Inc ACB.TO and Canopy Growth Co WEED.TO were the biggest percentage gainers on the TSX, jumping 8.1% and 6.1%, respectively.
* The most heavily-traded shares by volume were Royal Bank of Canada , Suncor Energy Inc , and Great Panther Mining Ltd .
* The TSX posted two new 52-week highs and no new lows.
* Across all Canadian issues there were nine new 52-week highs and one new low, with total volume of 26.56 million shares.
(Reporting by Amal S in Bengaluru; Editing by Ramakrishnan M.)
((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. | * Weed stocks Aurora Cannabis Inc ACB.TO and Canopy Growth Co WEED.TO were the biggest percentage gainers on the TSX, jumping 8.1% and 6.1%, respectively. Oct 21 (Reuters) - Canada's main stock index fell on Wednesday, dragged by energy stocks, as oil prices fell after a surprise build-up in U.S. crude stockpiles stoked concerns of a supply glut and a spike in global COVID-19 cases fueled demand worries. * Canadian National Railway Co CNR.TO fell 3.6%, the most on the TSX, after the railroad operator posted third-quarter profit below analysts' expectations. | * Weed stocks Aurora Cannabis Inc ACB.TO and Canopy Growth Co WEED.TO were the biggest percentage gainers on the TSX, jumping 8.1% and 6.1%, respectively. Oct 21 (Reuters) - Canada's main stock index fell on Wednesday, dragged by energy stocks, as oil prices fell after a surprise build-up in U.S. crude stockpiles stoked concerns of a supply glut and a spike in global COVID-19 cases fueled demand worries. * The energy sector .SPTTEN dropped 1.6% as U.S. crude CLc1 prices were down 2.1% a barrel, while Brent crude LCOc1 lost 1.7%. | * Weed stocks Aurora Cannabis Inc ACB.TO and Canopy Growth Co WEED.TO were the biggest percentage gainers on the TSX, jumping 8.1% and 6.1%, respectively. Oct 21 (Reuters) - Canada's main stock index fell on Wednesday, dragged by energy stocks, as oil prices fell after a surprise build-up in U.S. crude stockpiles stoked concerns of a supply glut and a spike in global COVID-19 cases fueled demand worries. * The energy sector .SPTTEN dropped 1.6% as U.S. crude CLc1 prices were down 2.1% a barrel, while Brent crude LCOc1 lost 1.7%. | * Weed stocks Aurora Cannabis Inc ACB.TO and Canopy Growth Co WEED.TO were the biggest percentage gainers on the TSX, jumping 8.1% and 6.1%, respectively. Oct 21 (Reuters) - Canada's main stock index fell on Wednesday, dragged by energy stocks, as oil prices fell after a surprise build-up in U.S. crude stockpiles stoked concerns of a supply glut and a spike in global COVID-19 cases fueled demand worries. The industrials sector .GSPTTIN fell 0.8%. |
37208.0 | 2020-10-20 00:00:00 UTC | Why Marijuana Stocks Aurora Cannabis, Canopy Growth, and Tilray Are Giving Up Much of Monday's Gains | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-aurora-cannabis-canopy-growth-and-tilray-are-giving-up-much-of | nan | nan | What happened
Canadian marijuana stocks soared on Monday as investors reacted to the prospects that the U.S. election results in November could improve the prospects for the cannabis industry. But what the market gives, the market can take away.
Shares of Aurora Cannabis (NYSE: ACB) were falling 9.3% lower as of 11:09 a.m. EDT on Tuesday. Canopy Growth (NYSE: CGC) stock was down 5.5%, while shares of Tilray (NASDAQ: TLRY) declined 4.3%. These declines wiped out much of the gains generated by the stocks on Monday.
So what
Volatility isn't surprising for pot stocks. That's especially true for the major Canadian stocks, with all of the top cannabis producers still not profitable on a consistent basis. As we've seen today, such volatility occurs even when there aren't new developments for the individual stocks.
Image source: Getty Images.
Investors are better off ignoring the day-to-day price swings. It's more important to focus on the long-term growth prospects for each company.
The prospects of marijuana legalization in the U.S., even if it's only for medical cannabis, in a potential Biden administration would likely improve the prospects for Aurora, Canopy, and Tilray. But the three companies aren't on an equal footing when it comes to being able to capitalize on an opportunity to expand into the U.S. market.
Canopy Growth has a much larger cash stockpile than either Aurora or Tilray, thanks to the equity investments made by Constellation Brands. The company also is already positioned to jump into the U.S. cannabis market if federal laws change with its option to acquire U.S.-based cannabis operator Acreage Holdings.
The potential for the relaxation of federal cannabis laws in the U.S. could be the biggest catalyst for these three pot stocks in the near future. However, the primary focus right now for Aurora, Canopy, and Tilray is the Canadian cannabis market. The COVID-19 pandemic has created some challenges, especially in the Canadian retail market. However, the country's Cannabis 2.0 derivatives market also has opened up new growth opportunities for each of the companies.
Now what
There are three key developments for investors to watch over the next few months with these stocks. Perhaps the most important one is the U.S. election on Nov. 3. The outcome of the U.S. presidential and Senate elections holds the potential to change the fortunes of Aurora, Canopy, and Tilray.
Each company also should report quarterly results in the near future. Canopy and Tilray provided their last updates on Aug. 10, so they're due to announce their next quarterly results next month. Aurora reported its latest results on Sept. 22, so it will likely be at least a month behind Canopy and Tilray.
The third thing to watch is the impact of the ongoing COVID-19 pandemic. Should lockdowns be reinstated in Canada, all of the top cannabis producers in the country could suffer.
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 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. | Shares of Aurora Cannabis (NYSE: ACB) were falling 9.3% lower as of 11:09 a.m. EDT on Tuesday. Canopy Growth has a much larger cash stockpile than either Aurora or Tilray, thanks to the equity investments made by Constellation Brands. The outcome of the U.S. presidential and Senate elections holds the potential to change the fortunes of Aurora, Canopy, and Tilray. | Shares of Aurora Cannabis (NYSE: ACB) were falling 9.3% lower as of 11:09 a.m. EDT on Tuesday. What happened Canadian marijuana stocks soared on Monday as investors reacted to the prospects that the U.S. election results in November could improve the prospects for the cannabis industry. Canopy Growth (NYSE: CGC) stock was down 5.5%, while shares of Tilray (NASDAQ: TLRY) declined 4.3%. | Shares of Aurora Cannabis (NYSE: ACB) were falling 9.3% lower as of 11:09 a.m. EDT on Tuesday. What happened Canadian marijuana stocks soared on Monday as investors reacted to the prospects that the U.S. election results in November could improve the prospects for the cannabis industry. The prospects of marijuana legalization in the U.S., even if it's only for medical cannabis, in a potential Biden administration would likely improve the prospects for Aurora, Canopy, and Tilray. | Shares of Aurora Cannabis (NYSE: ACB) were falling 9.3% lower as of 11:09 a.m. EDT on Tuesday. The company also is already positioned to jump into the U.S. cannabis market if federal laws change with its option to acquire U.S.-based cannabis operator Acreage Holdings. However, the primary focus right now for Aurora, Canopy, and Tilray is the Canadian cannabis market. |
37209.0 | 2020-10-20 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Acorda, General Motors, AMC | ACB | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-acorda-general-motors-amc-2020-10-20 | 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
Wall Street's main indexes opened higher on Tuesday as investors were hopeful of more stimulus from Washington, with Senate Republicans preparing to vote on a bill to help small businesses hammered by the COVID-19 pandemic. .N
At 9:55 a.m. ET, the Dow Jones Industrial Average .DJI was up 0.65% at 28,378.18. The S&P 500 .SPX was up 0.62% at 3,448.26 and the Nasdaq Composite .IXIC was up 0.41% at 11,525.657. The top three S&P 500 .PG.INX percentage gainers: ** Regions Financial Corp , up 6 % ** IQVIA Holdings Inc , up 5.4 % ** General Motors , up 5.1 % The top three S&P 500 .PL.INX percentage losers: ** International Business Machines Corp , down 6.5 % ** Pioneer Natural Resources Co , down 5.1 % ** Synchrony Financial , down 3.9 % The top NYSE .PG.N percentage gainers: ** Resolute Forest Production Inc , up 8.5 % ** Crown Holdings Inc , up 8.3 % The top three NYSE .PL.N percentage losers: ** AMC Entertainment Holdings Inc , down 9.2 % ** Aurora Cannabis Inc , down 7.2 % ** International Business Machines Corp , down 6.5 % The top three Nasdaq .PG.O percentage gainers: ** Cleveland BioLabs Inc , up 81.2 % ** Aptinyx Inc , up 55.2 % ** Aurora Mobile Ltd , up 17.6 % The top three Nasdaq .PL.O percentage losers: ** Kaixin Auto Holdings , down 28.8 % ** Atlas Technical Consultants Inc , down 19 % ** Greenland Technologies Holding Corp , down 16.5 % ** Emcore Corp EMKR.O: up 11.5%
BUZZ-Emcore Corp: Soars as it expects Q4 rev to exceed estimates ** BancorpSouth BXS.N: up 4.8%
BUZZ-BancorpSouth rises as Q3 profit tops estimates ** Aptinyx APTX.O: up 55.2%
BUZZ-Aptinyx: Surges on positive results from PTSD therapy study ** Acorda ACOR.O: up 73.9%
BUZZ-Acorda jumps as co entitled to milestone payment from Biogen International
** Crown Holdings CCK.N: up 8.3%
BUZZ-Crown Holdings: Rises on higher annual earnings forecast ** Hexcel HXL.N: down 6.1%
BUZZ-Hexcel: Down on surprise quarterly loss as COVID-19 hits demand ** Travelers TRV.N: up 3.4%
BUZZ-Travelers Companies Inc: Rises on Q3 profit beat ** Procter & Gamble PG.N: up 2.0%
BUZZ-P&G: Up on forecast bump on detergents, cleaning supplies demand ** Cleveland BioLabs CBLI.O: up 81.2%
BUZZ-Cleveland BioLabs rises on merger agreement with Cytocom Inc ** Parsley Energy PE.N: up 2.7%
BUZZ-Parsley Energy: Rises on report of Pioneer Natural Resources in takeover talks ** Cara Therapeutics CARA.O: up 5.1%
BUZZ-Cara Therapeutics: Up on license agreement for kidney disease vaccine ** Centogene CNTG.O: up 5.1%
BUZZ-Centogene: Gains on raising full-year revenue outlook, CEO change ** General Motors GM.N: up 5.1%
BUZZ-General Motors: Rises on EV investment plans in U.S.; Citi hikes PT ** Isoray Inc ISR.N: down 25.9%
BUZZ-Isoray drops on planned stock-and-warrants offering ** Workday WDAY.O: up 1.2%
BUZZ-Workday: Piper Sandler sees potential catalysts, upgrades to 'overweight' ** UBS UBS.N: up 6.6%
BUZZ-UBS: U.S.-listed shares up on solid Q3 profit beat, buyback hopes ** IQVIA IQV.N: up 5.4%
BUZZ-IQVIA: Gains on Q3 profit beat, full-year profit forecast raise ** Rayonier Advanced Materials RYAM.N: up 6.1%
REFILE-BUZZ-Rayonier Advanced Materials: RBC sees Q3 boost from Forest Products unit, upgrades ** Flour FLR.N: up 2.5%
BUZZ-Flour: Up on 5-year pipeline maintenance contract in Peru ** AMC Entertainment AMC.N: down 9.2%
BUZZ-AMC falls after filing to sell up to 15 mln shares ** Synchrony Financial SYF.N: down 3.9%
BUZZ-Synchrony Financial slips on dismal Q3 ** Amphenol Corp APH.N: up 1.1% ** TE Connectivity TEL.N: up 1.8% ** Sensata ST.N: up 2.7%
BUZZ-Tech hardware cos: JPM raises PTs on upside from end market recovery ** Albertsons ACI.N: up 6.3%
BUZZ-Albertsons: Eyes 2-month high after forecast beat
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.45%
Consumer Discretionary
.SPLRCD
up 0.57%
Consumer Staples
.SPLRCS
up 0.74%
Energy
.SPNY
up 1.04%
Financial
.SPSY
up 1.31%
Health
.SPXHC
up 0.51%
Industrial
.SPLRCI
up 0.88%
Information Technology
.SPLRCT
up 0.37%
Materials
.SPLRCM
up 0.77%
Real Estate
.SPLRCR
up 1.05%
Utilities
.SPLRCU
up 0.28%
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 Wall Street's main indexes opened higher on Tuesday as investors were hopeful of more stimulus from Washington, with Senate Republicans preparing to vote on a bill to help small businesses hammered by the COVID-19 pandemic. ET, the Dow Jones Industrial Average .DJI was up 0.65% at 28,378.18. The top three S&P 500 .PG.INX percentage gainers: ** Regions Financial Corp , up 6 % ** IQVIA Holdings Inc , up 5.4 % ** General Motors , up 5.1 % The top three S&P 500 .PL.INX percentage losers: ** International Business Machines Corp , down 6.5 % ** Pioneer Natural Resources Co , down 5.1 % ** Synchrony Financial , down 3.9 % The top NYSE .PG.N percentage gainers: ** Resolute Forest Production Inc , up 8.5 % ** Crown Holdings Inc , up 8.3 % The top three NYSE .PL.N percentage losers: ** AMC Entertainment Holdings Inc , down 9.2 % ** Aurora Cannabis Inc , down 7.2 % ** International Business Machines Corp , down 6.5 % The top three Nasdaq .PG.O percentage gainers: ** Cleveland BioLabs Inc , up 81.2 % ** Aptinyx Inc , up 55.2 % ** Aurora Mobile Ltd , up 17.6 % The top three Nasdaq .PL.O percentage losers: ** Kaixin Auto Holdings , down 28.8 % ** Atlas Technical Consultants Inc , down 19 % ** Greenland Technologies Holding Corp , down 16.5 % ** Emcore Corp EMKR.O: up 11.5% BUZZ-Emcore Corp: Soars as it expects Q4 rev to exceed estimates ** BancorpSouth BXS.N: up 4.8% BUZZ-BancorpSouth rises as Q3 profit tops estimates ** Aptinyx APTX.O: up 55.2% BUZZ-Aptinyx: Surges on positive results from PTSD therapy study ** Acorda ACOR.O: up 73.9% BUZZ-Acorda jumps as co entitled to milestone payment from Biogen International ** Crown Holdings CCK.N: up 8.3% BUZZ-Crown Holdings: Rises on higher annual earnings forecast ** Hexcel HXL.N: down 6.1% BUZZ-Hexcel: Down on surprise quarterly loss as COVID-19 hits demand ** Travelers TRV.N: up 3.4% BUZZ-Travelers Companies Inc: Rises on Q3 profit beat ** Procter & Gamble PG.N: up 2.0% BUZZ-P&G: Up on forecast bump on detergents, cleaning supplies demand ** Cleveland BioLabs CBLI.O: up 81.2% BUZZ-Cleveland BioLabs rises on merger agreement with Cytocom Inc ** Parsley Energy PE.N: up 2.7% BUZZ-Parsley Energy: Rises on report of Pioneer Natural Resources in takeover talks ** Cara Therapeutics CARA.O: up 5.1% BUZZ-Cara Therapeutics: Up on license agreement for kidney disease vaccine ** Centogene CNTG.O: up 5.1% BUZZ-Centogene: Gains on raising full-year revenue outlook, CEO change ** General Motors GM.N: up 5.1% BUZZ-General Motors: Rises on EV investment plans in U.S.; Citi hikes PT ** Isoray Inc ISR.N: down 25.9% BUZZ-Isoray drops on planned stock-and-warrants offering ** Workday WDAY.O: up 1.2% BUZZ-Workday: Piper Sandler sees potential catalysts, upgrades to 'overweight' ** UBS UBS.N: up 6.6% BUZZ-UBS: U.S.-listed shares up on solid Q3 profit beat, buyback hopes ** IQVIA IQV.N: up 5.4% BUZZ-IQVIA: Gains on Q3 profit beat, full-year profit forecast raise ** Rayonier Advanced Materials RYAM.N: up 6.1% REFILE-BUZZ-Rayonier Advanced Materials: RBC sees Q3 boost from Forest Products unit, upgrades ** Flour FLR.N: up 2.5% BUZZ-Flour: Up on 5-year pipeline maintenance contract in Peru ** AMC Entertainment AMC.N: down 9.2% BUZZ-AMC falls after filing to sell up to 15 mln shares ** Synchrony Financial SYF.N: down 3.9% BUZZ-Synchrony Financial slips on dismal Q3 ** Amphenol Corp APH.N: up 1.1% ** TE Connectivity TEL.N: up 1.8% ** Sensata ST.N: up 2.7% BUZZ-Tech hardware cos: JPM raises PTs on upside from end market recovery ** Albertsons ACI.N: up 6.3% BUZZ-Albertsons: Eyes 2-month high after forecast beat The 11 major S&P 500 sectors: Communication Services | 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 Wall Street's main indexes opened higher on Tuesday as investors were hopeful of more stimulus from Washington, with Senate Republicans preparing to vote on a bill to help small businesses hammered by the COVID-19 pandemic. The top three S&P 500 .PG.INX percentage gainers: ** Regions Financial Corp , up 6 % ** IQVIA Holdings Inc , up 5.4 % ** General Motors , up 5.1 % The top three S&P 500 .PL.INX percentage losers: ** International Business Machines Corp , down 6.5 % ** Pioneer Natural Resources Co , down 5.1 % ** Synchrony Financial , down 3.9 % The top NYSE .PG.N percentage gainers: ** Resolute Forest Production Inc , up 8.5 % ** Crown Holdings Inc , up 8.3 % The top three NYSE .PL.N percentage losers: ** AMC Entertainment Holdings Inc , down 9.2 % ** Aurora Cannabis Inc , down 7.2 % ** International Business Machines Corp , down 6.5 % The top three Nasdaq .PG.O percentage gainers: ** Cleveland BioLabs Inc , up 81.2 % ** Aptinyx Inc , up 55.2 % ** Aurora Mobile Ltd , up 17.6 % The top three Nasdaq .PL.O percentage losers: ** Kaixin Auto Holdings , down 28.8 % ** Atlas Technical Consultants Inc , down 19 % ** Greenland Technologies Holding Corp , down 16.5 % ** Emcore Corp EMKR.O: up 11.5% BUZZ-Emcore Corp: Soars as it expects Q4 rev to exceed estimates ** BancorpSouth BXS.N: up 4.8% BUZZ-BancorpSouth rises as Q3 profit tops estimates ** Aptinyx APTX.O: up 55.2% BUZZ-Aptinyx: Surges on positive results from PTSD therapy study ** Acorda ACOR.O: up 73.9% BUZZ-Acorda jumps as co entitled to milestone payment from Biogen International ** Crown Holdings CCK.N: up 8.3% BUZZ-Crown Holdings: Rises on higher annual earnings forecast ** Hexcel HXL.N: down 6.1% BUZZ-Hexcel: Down on surprise quarterly loss as COVID-19 hits demand ** Travelers TRV.N: up 3.4% BUZZ-Travelers Companies Inc: Rises on Q3 profit beat ** Procter & Gamble PG.N: up 2.0% BUZZ-P&G: Up on forecast bump on detergents, cleaning supplies demand ** Cleveland BioLabs CBLI.O: up 81.2% BUZZ-Cleveland BioLabs rises on merger agreement with Cytocom Inc ** Parsley Energy PE.N: up 2.7% BUZZ-Parsley Energy: Rises on report of Pioneer Natural Resources in takeover talks ** Cara Therapeutics CARA.O: up 5.1% BUZZ-Cara Therapeutics: Up on license agreement for kidney disease vaccine ** Centogene CNTG.O: up 5.1% BUZZ-Centogene: Gains on raising full-year revenue outlook, CEO change ** General Motors GM.N: up 5.1% BUZZ-General Motors: Rises on EV investment plans in U.S.; Citi hikes PT ** Isoray Inc ISR.N: down 25.9% BUZZ-Isoray drops on planned stock-and-warrants offering ** Workday WDAY.O: up 1.2% BUZZ-Workday: Piper Sandler sees potential catalysts, upgrades to 'overweight' ** UBS UBS.N: up 6.6% BUZZ-UBS: U.S.-listed shares up on solid Q3 profit beat, buyback hopes ** IQVIA IQV.N: up 5.4% BUZZ-IQVIA: Gains on Q3 profit beat, full-year profit forecast raise ** Rayonier Advanced Materials RYAM.N: up 6.1% REFILE-BUZZ-Rayonier Advanced Materials: RBC sees Q3 boost from Forest Products unit, upgrades ** Flour FLR.N: up 2.5% BUZZ-Flour: Up on 5-year pipeline maintenance contract in Peru ** AMC Entertainment AMC.N: down 9.2% BUZZ-AMC falls after filing to sell up to 15 mln shares ** Synchrony Financial SYF.N: down 3.9% BUZZ-Synchrony Financial slips on dismal Q3 ** Amphenol Corp APH.N: up 1.1% ** TE Connectivity TEL.N: up 1.8% ** Sensata ST.N: up 2.7% BUZZ-Tech hardware cos: JPM raises PTs on upside from end market recovery ** Albertsons ACI.N: up 6.3% BUZZ-Albertsons: Eyes 2-month high after forecast beat The 11 major S&P 500 sectors: Communication Services up 0.28% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ET, the Dow Jones Industrial Average .DJI was up 0.65% at 28,378.18. The top three S&P 500 .PG.INX percentage gainers: ** Regions Financial Corp , up 6 % ** IQVIA Holdings Inc , up 5.4 % ** General Motors , up 5.1 % The top three S&P 500 .PL.INX percentage losers: ** International Business Machines Corp , down 6.5 % ** Pioneer Natural Resources Co , down 5.1 % ** Synchrony Financial , down 3.9 % The top NYSE .PG.N percentage gainers: ** Resolute Forest Production Inc , up 8.5 % ** Crown Holdings Inc , up 8.3 % The top three NYSE .PL.N percentage losers: ** AMC Entertainment Holdings Inc , down 9.2 % ** Aurora Cannabis Inc , down 7.2 % ** International Business Machines Corp , down 6.5 % The top three Nasdaq .PG.O percentage gainers: ** Cleveland BioLabs Inc , up 81.2 % ** Aptinyx Inc , up 55.2 % ** Aurora Mobile Ltd , up 17.6 % The top three Nasdaq .PL.O percentage losers: ** Kaixin Auto Holdings , down 28.8 % ** Atlas Technical Consultants Inc , down 19 % ** Greenland Technologies Holding Corp , down 16.5 % ** Emcore Corp EMKR.O: up 11.5% BUZZ-Emcore Corp: Soars as it expects Q4 rev to exceed estimates ** BancorpSouth BXS.N: up 4.8% BUZZ-BancorpSouth rises as Q3 profit tops estimates ** Aptinyx APTX.O: up 55.2% BUZZ-Aptinyx: Surges on positive results from PTSD therapy study ** Acorda ACOR.O: up 73.9% BUZZ-Acorda jumps as co entitled to milestone payment from Biogen International ** Crown Holdings CCK.N: up 8.3% BUZZ-Crown Holdings: Rises on higher annual earnings forecast ** Hexcel HXL.N: down 6.1% BUZZ-Hexcel: Down on surprise quarterly loss as COVID-19 hits demand ** Travelers TRV.N: up 3.4% BUZZ-Travelers Companies Inc: Rises on Q3 profit beat ** Procter & Gamble PG.N: up 2.0% BUZZ-P&G: Up on forecast bump on detergents, cleaning supplies demand ** Cleveland BioLabs CBLI.O: up 81.2% BUZZ-Cleveland BioLabs rises on merger agreement with Cytocom Inc ** Parsley Energy PE.N: up 2.7% BUZZ-Parsley Energy: Rises on report of Pioneer Natural Resources in takeover talks ** Cara Therapeutics CARA.O: up 5.1% BUZZ-Cara Therapeutics: Up on license agreement for kidney disease vaccine ** Centogene CNTG.O: up 5.1% BUZZ-Centogene: Gains on raising full-year revenue outlook, CEO change ** General Motors GM.N: up 5.1% BUZZ-General Motors: Rises on EV investment plans in U.S.; Citi hikes PT ** Isoray Inc ISR.N: down 25.9% BUZZ-Isoray drops on planned stock-and-warrants offering ** Workday WDAY.O: up 1.2% BUZZ-Workday: Piper Sandler sees potential catalysts, upgrades to 'overweight' ** UBS UBS.N: up 6.6% BUZZ-UBS: U.S.-listed shares up on solid Q3 profit beat, buyback hopes ** IQVIA IQV.N: up 5.4% BUZZ-IQVIA: Gains on Q3 profit beat, full-year profit forecast raise ** Rayonier Advanced Materials RYAM.N: up 6.1% REFILE-BUZZ-Rayonier Advanced Materials: RBC sees Q3 boost from Forest Products unit, upgrades ** Flour FLR.N: up 2.5% BUZZ-Flour: Up on 5-year pipeline maintenance contract in Peru ** AMC Entertainment AMC.N: down 9.2% BUZZ-AMC falls after filing to sell up to 15 mln shares ** Synchrony Financial SYF.N: down 3.9% BUZZ-Synchrony Financial slips on dismal Q3 ** Amphenol Corp APH.N: up 1.1% ** TE Connectivity TEL.N: up 1.8% ** Sensata ST.N: up 2.7% BUZZ-Tech hardware cos: JPM raises PTs on upside from end market recovery ** Albertsons ACI.N: up 6.3% BUZZ-Albertsons: Eyes 2-month high after forecast beat The 11 major S&P 500 sectors: Communication Services up 0.45% 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 Wall Street's main indexes opened higher on Tuesday as investors were hopeful of more stimulus from Washington, with Senate Republicans preparing to vote on a bill to help small businesses hammered by the COVID-19 pandemic. ET, the Dow Jones Industrial Average .DJI was up 0.65% at 28,378.18. The S&P 500 .SPX was up 0.62% at 3,448.26 and the Nasdaq Composite .IXIC was up 0.41% at 11,525.657. |
37210.0 | 2020-10-20 00:00:00 UTC | CANADA STOCKS-TSX tracks Wall Street higher on U.S. stimulus hopes | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-tracks-wall-street-higher-on-u.s.-stimulus-hopes-2020-10-20 | nan | nan | Oct 20 (Reuters) - Canada's main stock index rose on Tuesday, in line with Wall Street gains, as optimism around Washington lawmakers agreeing on a U.S. stimulus deal before the presidential election offset weakness in energy shares due to lower crude prices.
* At 9:37 a.m. ET (1337 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 25.44 points, or 0.16%, at 16,299.51.
* The energy sector .SPTTEN dropped 0.2% as U.S. crude CLc1 prices were down 1% a barrel, while Brent crude LCOc1 lost 0.8%. O/R
* The biggest percentage gainer on the TSX was lumber provider Interfor Corporation IFP.TO, jumping 5.5% after TD Securities raised its stock rating, followed by Ero Copper Corp ERO.TO, which rose 4.9%.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 0.8% despite gold futures GCc1 fell 0.4% to $1,899 an ounce. GOL/
* On the TSX, 141 issues were higher, while 76 issues declined for a 1.86-to-1 ratio favouring gainers, with 10.34 million shares exchanging hands.
* Weed stocks Aurora Cannabis Inc and Canopy Growth Co were the biggest decliners, falling 5.8% and 4.0%, respectively.
* The most heavily traded stocks by volume were Royal Bank of Canada , Valeura Energy Inc and New Millennium Iron Corp .
* The TSX posted one new 52-week highs and no new lows.
* There were six new 52-week highs and two new lows across all Canadian issues, with total volume of 19.32 million shares.
(Reporting by Amal S in Bengaluru; Editing by Rashmi Aich)
((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. | Oct 20 (Reuters) - Canada's main stock index rose on Tuesday, in line with Wall Street gains, as optimism around Washington lawmakers agreeing on a U.S. stimulus deal before the presidential election offset weakness in energy shares due to lower crude prices. O/R * The biggest percentage gainer on the TSX was lumber provider Interfor Corporation IFP.TO, jumping 5.5% after TD Securities raised its stock rating, followed by Ero Copper Corp ERO.TO, which rose 4.9%. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, added 0.8% despite gold futures GCc1 fell 0.4% to $1,899 an ounce. | Oct 20 (Reuters) - Canada's main stock index rose on Tuesday, in line with Wall Street gains, as optimism around Washington lawmakers agreeing on a U.S. stimulus deal before the presidential election offset weakness in energy shares due to lower crude prices. * The energy sector .SPTTEN dropped 0.2% as U.S. crude CLc1 prices were down 1% a barrel, while Brent crude LCOc1 lost 0.8%. GOL/ * On the TSX, 141 issues were higher, while 76 issues declined for a 1.86-to-1 ratio favouring gainers, with 10.34 million shares exchanging hands. | Oct 20 (Reuters) - Canada's main stock index rose on Tuesday, in line with Wall Street gains, as optimism around Washington lawmakers agreeing on a U.S. stimulus deal before the presidential election offset weakness in energy shares due to lower crude prices. O/R * The biggest percentage gainer on the TSX was lumber provider Interfor Corporation IFP.TO, jumping 5.5% after TD Securities raised its stock rating, followed by Ero Copper Corp ERO.TO, which rose 4.9%. GOL/ * On the TSX, 141 issues were higher, while 76 issues declined for a 1.86-to-1 ratio favouring gainers, with 10.34 million shares exchanging hands. | Oct 20 (Reuters) - Canada's main stock index rose on Tuesday, in line with Wall Street gains, as optimism around Washington lawmakers agreeing on a U.S. stimulus deal before the presidential election offset weakness in energy shares due to lower crude prices. ET (1337 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 25.44 points, or 0.16%, at 16,299.51. * There were six new 52-week highs and two new lows across all Canadian issues, with total volume of 19.32 million shares. |
37211.0 | 2020-10-20 00:00:00 UTC | This Canadian Pot Stock Has the Best Chance at Long-Term Success | ACB | https://www.nasdaq.com/articles/this-canadian-pot-stock-has-the-best-chance-at-long-term-success-2020-10-20 | nan | nan | Considering how poorly marijuana stocks have performed since the end of the first quarter of 2019, you might find what I'm about to say hard to believe. But the fact is, cannabis could well be one of the fastest-growing industries in North America this decade.
However, we've witnessed one heck of a divide in North America between the U.S. and Canadian marijuana markets. Though Canada was the first industrialized country in the modern era to greenlight recreational cannabis, it completely fumbled its efforts to become the global blueprint for legalization.
Image source: Getty Images.
Canada blew its chance to be a global marijuana leader
Some of this blame falls on national and provincial regulators. National agency Health Canada delayed the launch of high-margin derivatives (e.g., vapes, edibles, topicals, concentrates, and infused beverages) by two months. The agency also took a long time to review and approve cultivation, processing, and sales licenses before the official legalization of adult-use sales on Oct. 17, 2019.
At the provincial level, problems have ranged from supply shortages to complete bottlenecks. For example, Ontario, Canada's most populous province, used a lottery system to assign dispensary licenses until the end of 2019. Canadian sales commenced on Oct. 17, 2019; a year later, only 24 retail locations are open. For context, Ontario could comfortably house around 1,000 dispensaries.
But it's not all the fault of regulators. Canadian marijuana licensed producers have had plenty of miscues of their own. Up and down the line, we've witnessed LPs grossly overpay for the acquisitions they made between 2016 and 2019, with far too many bumping up capacity to levels that simply didn't make sense given projected demand in domestic markets.
While it's obviously going to take time for Canada to work through its issues, there's bound to be at least one winner among its more than half-dozen highly visible LPs. The big question is: Which Canadian pot stock has the best chance of long-term success?
Image source: Getty Images.
These LPs aren't in great shape
Despite being the two most cash-rich cannabis stocks in North America, neither Canopy Growth (NYSE: CGC) nor Cronos Group (NASDAQ: CRON) is guaranteed success. Canopy Growth is losing money hand over fist and has shuttered at least 3 million square feet of licensed indoor greenhouses in 2020. Meanwhile, Cronos Group's big bet on derivatives hasn't yet paid off. Cronos might not have enough capacity at its disposal.
I'm fairly confident it's not going to be Aurora Cannabis (NYSE: ACB), either. Aurora has been a slow-motion train wreck since March 2019. It wrote down about $3 billion Canadian in fiscal 2020 and has been slashing expenses to reduce its cash burn and avoid breaching its debt covenant. The company's push toward adjusted positive earnings before interest, taxes, depreciation, and amortization (EBITDA) has also been kicked down the road repeatedly.
As for Tilray (NASDAQ: TLRY) and HEXO (NYSE: HEXO), it's not even certain that these two will survive to see the long term. Both Tilray and HEXO have undertaken at-the-market share offerings to raise cash because they keep losing boatloads of money. They also each grossly overpaid for key acquisitions, with Tilray writing down a substantial sum tied to its Manitoba Harvest purchase and HEXO taking a huge impairment from its Newstrike Brands buyout.
Image source: Getty Images.
This Canadian marijuana stock is best-positioned for the long term
The fact is, there's only one Canadian marijuana stock that seems to have a good chance at long-term success: OrganiGram Holdings (NASDAQ: OGI).
OrganiGram isn't much to look at right now. Just like its peers, it's struggling, with net sales falling 27% from the prior-year period in the fiscal third quarter despite the coronavirus pushing licensed Canadian cannabis store sales to an all-time high. The most recent quarter also saw cost of sales more than triple. An adverse fair-value adjustment on biological assets also widened the company's net loss.
But there are other factors that make OrganiGram the most logical choice to succeed.
For one, it's the only major LP to focus its attention on a single facility. At the height of capacity expansion, Aurora Cannabis had 15 facilities, while Canopy Growth reached the double digits. Meanwhile, OrganiGram has its Moncton facility in New Brunswick -- and that's it. Having a single facility capable of producing 70,000 kilos of cannabis annually affords the company far more flexibility on the cost and output front than its peers. In other words, it's easier to solve one puzzle than 15 puzzles at the same time.
Image source: Getty Images.
OrganiGram's Moncton facility should also be one of the most efficient in the industry once the Canadian weed industry has worked out its kinks. That's because OrganiGram is focusing on high-level tetrahydrocannabinol plants with three growing tiers in its greenhouse. Maximizing yield and grow space should enable the company to significantly reduce its growing costs.
The company's location could also be a competitive advantage. OrganiGram is the only major LP located in an Eastern Canadian province. Although provinces like Ontario and Quebec are far more populated, surveys have shown higher cannabis usage rates in the Eastern Canadian provinces.
Lastly, OrganiGram might have a clear path to derivative growth once Canadian regulators resolve the country's supply problems. The company has spent CA$15 million on a line of fully automated equipment to produce up to 4 million kilos of infused chocolates annually. It also has a powdered beverage that can speed up how quickly cannabinoids take effect.
Having avoided overpriced acquisitions and resisted the urge to expand capacity, OrganiGram is in great shape to thrive over 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.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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. | I'm fairly confident it's not going to be Aurora Cannabis (NYSE: ACB), either. Up and down the line, we've witnessed LPs grossly overpay for the acquisitions they made between 2016 and 2019, with far too many bumping up capacity to levels that simply didn't make sense given projected demand in domestic markets. These LPs aren't in great shape Despite being the two most cash-rich cannabis stocks in North America, neither Canopy Growth (NYSE: CGC) nor Cronos Group (NASDAQ: CRON) is guaranteed success. | I'm fairly confident it's not going to be Aurora Cannabis (NYSE: ACB), either. These LPs aren't in great shape Despite being the two most cash-rich cannabis stocks in North America, neither Canopy Growth (NYSE: CGC) nor Cronos Group (NASDAQ: CRON) is guaranteed success. This Canadian marijuana stock is best-positioned for the long term The fact is, there's only one Canadian marijuana stock that seems to have a good chance at long-term success: OrganiGram Holdings (NASDAQ: OGI). | I'm fairly confident it's not going to be Aurora Cannabis (NYSE: ACB), either. These LPs aren't in great shape Despite being the two most cash-rich cannabis stocks in North America, neither Canopy Growth (NYSE: CGC) nor Cronos Group (NASDAQ: CRON) is guaranteed success. This Canadian marijuana stock is best-positioned for the long term The fact is, there's only one Canadian marijuana stock that seems to have a good chance at long-term success: OrganiGram Holdings (NASDAQ: OGI). | I'm fairly confident it's not going to be Aurora Cannabis (NYSE: ACB), either. These LPs aren't in great shape Despite being the two most cash-rich cannabis stocks in North America, neither Canopy Growth (NYSE: CGC) nor Cronos Group (NASDAQ: CRON) is guaranteed success. This Canadian marijuana stock is best-positioned for the long term The fact is, there's only one Canadian marijuana stock that seems to have a good chance at long-term success: OrganiGram Holdings (NASDAQ: OGI). |
37212.0 | 2020-10-17 00:00:00 UTC | 3 Green Flags for Aurora Cannabis' Future | ACB | https://www.nasdaq.com/articles/3-green-flags-for-aurora-cannabis-future-2020-10-17 | nan | nan | For investors in troubled Canadian marijuana cultivator Aurora Cannabis (NYSE: ACB), good news is in short supply. The company is nowhere near profitability, and its stock has been falling since March of last year, culminating in a massive collapse in September.
In its latest earnings report, Aurora disclosed that its sales revenues were down 5% from the previous quarter, capping a long string of losses. If that weren't enough, shareholders are mounting a lawsuit against the company, alleging that it misled investors in early 2020 about the stock's potential.
But there have been a few positive developments to give shareholders and potential investors a glimmer of hope. Support for cannabis legalization is increasing, and Aurora's own leadership team is changing, all of which could mean a turn in the company's luck. And while those factors won't be enough to make the stock worth a purchase in the short term, they'll definitely contribute to the company's turnaround effort.
Let's check out these green flags to see how and when the stock will be affected.
Image source: Getty Images.
1. Cannabis legalization has support from the U.S. public -- and from major U.S. politicians
If cannabis is legalized across the U.S. for both medicinal and recreational purposes, Aurora could benefit from a massive market, which may reach $23 billion in value by 2025. Pro-cannabis efforts recently got a boost when vice presidential candidate Sen. Kamala Harris endorsed cannabis decriminalization. And Harris is far from the only political figure who is open to decriminalization or legalization. Sen. Bernie Sanders has long been a proponent of full legalization, and Sen. Cory Booker recently expressed support. Similarly, Vermont Gov. Peter Shumlin appears to support legalization, and Rhode Island Gov. Lincoln Chafee is investigating whether it would be worthwhile for his state's revenue. Even the former governor of Texas, Rick Perry, has floated the idea of decriminalization.
But Aurora won't benefit from legalization if it can't profitably serve the customers in new markets, so it still has some work to do before it can even think of capitalizing on a legal U.S. market.
2. Harsh cuts will continue to reduce Aurora's overhead
As part of a desperate plan to achieve profitability, Aurora plans to lay off about 30% of its cannabis cultivation staff and 25% of its remaining administrative staff -- and it's already made steep cuts this year. In addition to reducing its workforce, the company plans to close five of its cultivation facilities and scale back production volume at several others.
Aurora also committed to eliminating high-cost projects using external contractors, reworking pricey research contracts, and shutting down several unprofitable product lines. These cuts and closures will take place over the next two quarters, and they should help to reduce the company's bloated operating costs to be more in line with its revenues.
Keep a close eye on Aurora's reported cost of cultivation per gram of cannabis to see whether this streamlining is having a significant impact on its long-term prospects. If the company can keep driving down its costs beyond the break-even point, it'll be on the road to finally being in the black.
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3. New leadership will be instrumental in Aurora's turnaround
In early September, Aurora announced that it had appointed Miguel Martin as its new CEO. Martin will be responsible for executing the company's cost-cutting transformation. He'll also need to fill the shoes of Aurora's co-founder, Steve Dobler, who has retired.
Martin is a newcomer to Aurora, having only joined the company as its chief commercial officer (CCO) in July of this year. But he was previously the CEO at Reliva, a private cannabidiol (CBD) company that Aurora acquired earlier this year. Reliva's purchase marked Aurora's entry into the U.S. cannabis market, meaning that Martin's promotion puts someone with firsthand knowledge of the new market at the wheel. It's also feasible that Martin will be able to use his expertise in the CBD market to increase Aurora's sales, which would provide welcome cash flow.
The new CEO will also need to deal with Aurora's response to the ongoing shareholder lawsuit against the company, which alleges that its cost cuts have so far failed to address the company's problems. If Martin can convince the shareholders to give him more time to scale down production, the company may save itself legal fees and payouts, helping it to stabilize its shaky cash position of $162 million CAD in the most recent quarter. This amount of cash pales in comparison to the trailing expenses of CA$457 million.
Thus, it's hard to argue that Aurora Cannabis will be a millionaire-maker stock anytime soon. With some luck, Martin's leadership will be a breath of fresh air, cannabis legalization will come sooner in the U.S. rather than later, and the company's reduced costs can help Aurora focus on strengthening its business for the long term.
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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. | For investors in troubled Canadian marijuana cultivator Aurora Cannabis (NYSE: ACB), good news is in short supply. Aurora also committed to eliminating high-cost projects using external contractors, reworking pricey research contracts, and shutting down several unprofitable product lines. If Martin can convince the shareholders to give him more time to scale down production, the company may save itself legal fees and payouts, helping it to stabilize its shaky cash position of $162 million CAD in the most recent quarter. | For investors in troubled Canadian marijuana cultivator Aurora Cannabis (NYSE: ACB), good news is in short supply. But Aurora won't benefit from legalization if it can't profitably serve the customers in new markets, so it still has some work to do before it can even think of capitalizing on a legal U.S. market. New leadership will be instrumental in Aurora's turnaround In early September, Aurora announced that it had appointed Miguel Martin as its new CEO. | For investors in troubled Canadian marijuana cultivator Aurora Cannabis (NYSE: ACB), good news is in short supply. Cannabis legalization has support from the U.S. public -- and from major U.S. politicians If cannabis is legalized across the U.S. for both medicinal and recreational purposes, Aurora could benefit from a massive market, which may reach $23 billion in value by 2025. Harsh cuts will continue to reduce Aurora's overhead As part of a desperate plan to achieve profitability, Aurora plans to lay off about 30% of its cannabis cultivation staff and 25% of its remaining administrative staff -- and it's already made steep cuts this year. | For investors in troubled Canadian marijuana cultivator Aurora Cannabis (NYSE: ACB), good news is in short supply. Support for cannabis legalization is increasing, and Aurora's own leadership team is changing, all of which could mean a turn in the company's luck. 10 stocks we like better than Aurora Cannabis Inc. |
37213.0 | 2020-10-17 00:00:00 UTC | Is Canopy Growth Stock a Buy? | ACB | https://www.nasdaq.com/articles/is-canopy-growth-stock-a-buy-2020-10-17 | nan | nan | Canadian marijuana company Canopy Growth (NYSE: CGC) sells everything from raw cannabis flowers to THC-infused beverages and cannabidiol hand creams. With its diverse collection of brands, it's among the industry's stronger competitors, and its stock is popular among some groups of investors. But like many cannabis companies, it isn't profitable, and its shares are down by more than 12% year to date, far underperforming the broader market.
Does this cannabis company have what it takes to become profitable and deliver the growth that its investors are seeking? Or are its problems the result of intractable internal issues and a business plan built around an expectation of low production costs that it can't deliver in reality?
In my view, Canopy Growth has promise as a result of its demonstrated capability to expand into new markets, but its penchant for overspending on building additional manufacturing capacity makes it a risky investment.
Image source: Getty Images.
Cannabis beverages gain momentum
One thing many investors appreciate about Canopy is its strong market position. In Germany, it's the top supplier of dried marijuana flower, and it's among the leaders in the U.S. and Canadian markets as well.
Its net sales grew by 22% year over year last quarter, led by its lineup of cannabis-infused beverages for adult recreational use. If cannabis legalization proceeds in the U.S., it's possible that Canopy Growth's revenues could continue to grow at a similarly rapid rate.
While the cannabis beverage segment is relatively new, Canopy has led the industry with its investments so far, creating four different brands of drinks and powder concentrates. In Canada, its beverages hold a 74% market share. However, it's important to recognize that right now, only 13% of company sales come from Canada, and just 1% of global revenue comes from products like beverages, so dominance in that niche of its domestic market is far from enough to carry the bottom line, or the share price, for now.
Next year, management plans to launch additional beverages and begin selling its existing ones in select U.S. states. It's plausible that someday, Canopy Growth could become known as the cannabis beverage company, but at the moment, the market is too new for any player to have gained a durable competitive advantage. Don't be too surprised if other companies notice its success and try to steal its market share, driving down profit margins in the segment in the process.
Slowly moving toward profitability
Like many other cannabis companies, Canopy Growth has struggled to reach profitability, in part because of its heavy investment in production facilities. To address this issue, it reduced its high-cost cultivation facilities in Canada throughout the year, curbing output capacity by 40%. It also terminated its cultivation operations in Colombia and New York, divested itself of its African assets, and canceled plans to expand production elsewhere. These actions were part of the company's larger plan to reduce its cash burn rate and focus on the most profitable segments of its business.
In the same vein, Canopy Growth has cut its workforce by 18% since the end of 2019. But with a profit margin of negative 297%, it still has a long way to go before breaking even. And with 10 new retail stores in Canada planned to open before the end of the year, it will need to carefully balance its competing goals of expansion and cost-cutting. This could prove challenging, especially if its revenue grows more slowly than expected.
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Is Canopy Growth worth a buy?
While I'm cautiously optimistic about this marijuana company as an investment in the long term, its progress toward profitability hasn't been as rapid as I would like, so I can't say that it's worth a buy right now. It has been less aggressive with production cuts and layoffs than somewhat weaker peers like Aurora Cannabis, (NYSE: ACB), and management hasn't articulated a clear plan for how it will reach profitability, even if its financial position is improving.
At the same time, its position in the cannabis-infused beverage market is strong, and it may be able to build a high-margin business in the segment. I won't buy now, but I'll be keeping an eye on Canopy Growth's earnings reports to see how its transition is coming along, and I'll revisit my decision if it looks like the company might be within a year of making more than it spends.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has been less aggressive with production cuts and layoffs than somewhat weaker peers like Aurora Cannabis, (NYSE: ACB), and management hasn't articulated a clear plan for how it will reach profitability, even if its financial position is improving. In my view, Canopy Growth has promise as a result of its demonstrated capability to expand into new markets, but its penchant for overspending on building additional manufacturing capacity makes it a risky investment. I won't buy now, but I'll be keeping an eye on Canopy Growth's earnings reports to see how its transition is coming along, and I'll revisit my decision if it looks like the company might be within a year of making more than it spends. | It has been less aggressive with production cuts and layoffs than somewhat weaker peers like Aurora Cannabis, (NYSE: ACB), and management hasn't articulated a clear plan for how it will reach profitability, even if its financial position is improving. Canadian marijuana company Canopy Growth (NYSE: CGC) sells everything from raw cannabis flowers to THC-infused beverages and cannabidiol hand creams. Or are its problems the result of intractable internal issues and a business plan built around an expectation of low production costs that it can't deliver in reality? | It has been less aggressive with production cuts and layoffs than somewhat weaker peers like Aurora Cannabis, (NYSE: ACB), and management hasn't articulated a clear plan for how it will reach profitability, even if its financial position is improving. Canadian marijuana company Canopy Growth (NYSE: CGC) sells everything from raw cannabis flowers to THC-infused beverages and cannabidiol hand creams. It's plausible that someday, Canopy Growth could become known as the cannabis beverage company, but at the moment, the market is too new for any player to have gained a durable competitive advantage. | It has been less aggressive with production cuts and layoffs than somewhat weaker peers like Aurora Cannabis, (NYSE: ACB), and management hasn't articulated a clear plan for how it will reach profitability, even if its financial position is improving. While I'm cautiously optimistic about this marijuana company as an investment in the long term, its progress toward profitability hasn't been as rapid as I would like, so I can't say that it's worth a buy right now. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Canopy Growth Corp. wasn't one of them! |
37214.0 | 2020-10-17 00:00:00 UTC | Is Tilray Stock a Buy? | ACB | https://www.nasdaq.com/articles/is-tilray-stock-a-buy-2020-10-17 | nan | nan | Canadian cannabis cultivator Tilray (NASDAQ: TLRY) is in many ways a prototypical pot company: It's unprofitable, its international value chain is overbuilt, and it competes in a handful of major cannabis product segments. All of that means Tilray's stock price rides on dreams of the cannabis market's future rather than sound fundamentals. Nonetheless, Tilray is well-known because it was the first cannabis company to have an initial public offering (IPO) on an American stock exchange.
It's no secret why the company still captures the imaginations of cannabis investors: Tilray has formidable infrastructure devoted to global production and distribution of cannabis, and it also has an abundance of research and development activity to fuel its future growth. But the stock has so far failed to deliver for its investors, leaving many to wonder whether the company is capable of overcoming its issues with profitability anytime soon. As it turns out, Tilray's competitive strategy isn't very similar to those of other cannabis companies -- and that just might make all the difference for its long-term performance.
Image source: Getty Images.
Tilray may flourish as a medicinal-use-first company
Tilray seeks to establish itself as a leading medicinal marijuana company, and it is currently conducting at least 10 different clinical trials in conjunction with a handful of different medical centers and universities. This differentiates it from more established cannabis companies like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), both of which compete in the recreational segment as well as the medicinal one. While Tilray does produce a small arrangement of adult-use products for Canada and Uruguay, its larger project is to serve the global medicinal cannabis market across 41 countries.
This may well change as the company's therapeutic development efforts start to bear fruit. Recently, Tilray reported favorable clinical trial data indicating that chemotherapy patients experienced lower levels of nausea after taking capsules containing a mixture of the company's cannabis. While the market's reaction to this news was muted, the trial does provide empirical evidence that Tilray's medicinal products are capable of helping real people with serious medical problems. In the long term, the company aims to expand its offerings of advanced medicinal products, which it sees as having a high margin and broad appeal in international markets.
Becoming profitable will still take more work, but cultivation in Portugal may help
Like many of its peers in the marijuana industry, Tilray has struggled to become profitable and to scale its operations to the level of demand for its products and the costs of cultivation and manufacturing. The company's trailing-12-month revenue was about $200 million, in comparison to its cost of revenue of $236 million and operating expenses of $208 million. In May, the company closed one of its cultivation facilities in Canada, which it claimed would save about $7.5 million over the course of a year. Tilray's CEO is aiming for the company to be approaching profitability by the end of this year, but closing production facilities alone probably won't be enough to bridge the gap between its costs and its revenues.
Despite this issue, Tilray has a powerful card up its sleeve. Unlike its competitors, Tilray is focused on increasing its sales in the E.U. rather than the U.S. While the company has production and distribution facilities scattered around the world, its cultivation and processing center in Portugal is its largest, with 2.7 million square feet of space. By producing cannabis in Portugal, Tilray gets the right to export its products to the rest of the E.U. without facing tariffs -- a tremendous cost advantage. So, even if Tilray isn't breaking even yet, it's ready to take advantage of both cannabis legalization and increasing acceptance of medicinal cannabis in the E.U.
Is Tilray worth buying over other cannabis stocks?
Future competitive advantages aside, investors should be aware that Tilray has started to issue new stock to raise cash, generating $227 million in the past 12 months. This means that people who purchase the company's stock right now may face dilution of their equity, especially if it takes longer than expected to reach profitability.
In my view, Tilray is the strongest of the popular cannabis stocks this year, but I still won't be investing in it anytime soon because it isn't anywhere close to being profitable. While I think the company's strategy of focusing on medicinal cannabis goods in the E.U. segment will be effective in the long term, I'd be much more comfortable investing in Tilray if I could point to consistent trends of falling costs and rising revenue. In fact, the company's gross margins fell in the most recent quarter, and its revenue only increased by 10% year over year. Thus, I'll be keeping an eye on Tilray's progress before considering a purchase again.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This differentiates it from more established cannabis companies like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), both of which compete in the recreational segment as well as the medicinal one. Recently, Tilray reported favorable clinical trial data indicating that chemotherapy patients experienced lower levels of nausea after taking capsules containing a mixture of the company's cannabis. While the market's reaction to this news was muted, the trial does provide empirical evidence that Tilray's medicinal products are capable of helping real people with serious medical problems. | This differentiates it from more established cannabis companies like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), both of which compete in the recreational segment as well as the medicinal one. Canadian cannabis cultivator Tilray (NASDAQ: TLRY) is in many ways a prototypical pot company: It's unprofitable, its international value chain is overbuilt, and it competes in a handful of major cannabis product segments. While Tilray does produce a small arrangement of adult-use products for Canada and Uruguay, its larger project is to serve the global medicinal cannabis market across 41 countries. | This differentiates it from more established cannabis companies like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), both of which compete in the recreational segment as well as the medicinal one. Canadian cannabis cultivator Tilray (NASDAQ: TLRY) is in many ways a prototypical pot company: It's unprofitable, its international value chain is overbuilt, and it competes in a handful of major cannabis product segments. Tilray may flourish as a medicinal-use-first company Tilray seeks to establish itself as a leading medicinal marijuana company, and it is currently conducting at least 10 different clinical trials in conjunction with a handful of different medical centers and universities. | This differentiates it from more established cannabis companies like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), both of which compete in the recreational segment as well as the medicinal one. This means that people who purchase the company's stock right now may face dilution of their equity, especially if it takes longer than expected to reach profitability. In my view, Tilray is the strongest of the popular cannabis stocks this year, but I still won't be investing in it anytime soon because it isn't anywhere close to being profitable. |
37215.0 | 2020-10-17 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-2020-10-17 | nan | nan | Canadian cannabis company Aurora Cannabis (NYSE: ACB) saw a bright future ahead when Canada legalized adult-use recreational marijuana in October 2018. But Aurora's acquisition spending spree, rapid expansion plans, and rising costs -- along with some external factors -- have made it hard for the company to turn a profit.
2019 was a dreadful year for the company, over which the stock lost 56% of its value. In contrast, the industry benchmark, the Horizons Marijuana Life Sciences Index ETF, declined 36% on the year.
2020 hasn't exactly been rosy for the company either. The stock is down over 80% and is consistently underperforming its peers. But Aurora is making some aggressive moves in a bounce-back effort. It executed some cost-cutting strategies including shutting down unprofitable facilities and reducing staff, in order to achieve its goal of hitting positive earnings before income, tax, depreciation, and amortization (EBITDA) by the second quarter of fiscal 2021. With two months left before 2020 ends, chances of the company coming back this year might yet be feasible. If its new strategies pan out, how will next year shape up for Aurora? Let's take a closer look.
Image source: Getty Images.
Aurora's path to recovery
After a rough 2019, Aurora made some serious attempts to regain investors' trust. In June, it announced business transformation plans that it called "facility rationalization." It decided to shut down five of its small-scale facilities over the next two quarters and merge a few Canadian production and manufacturing units. But now, it plans to ramp up production at its Nordic facility in Europe. The company has had to make up ground after it suffered serious impairment charges in its recent fourth quarter, ended June 30, including:
A fixed asset impairment charge of 86.5 million Canadian dollars associated with production facility rationalization
A CA$135.1 million charge linked to the carrying value of certain inventory
A non-cash writedown of goodwill and intangible assets (the company did not specify the details of the charges) of CA$1.6 billion
Are there more cannabis derivatives products in Aurora's pipeline?
The cannabis derivatives market, which Canada legalized in October 2019, is heating up across the border. Derivatives are non-bud recreational marijuana products such as vapes, concentrates, cannabis-infused beverages, and edibles. Aurora launched a long list of derivatives last December: CBD (cannabidiol) and THC (tetrahydrocannabinol) vapes, edibles (chocolates, baked goods, gummies, and mints), and concentrates. But that was the last time investors heard about any Aurora product launch -- until very recently. In its Q4 press release, CEO Miguel Martin discussed how Aurora will focus on emerging-growth formats like vapes, pre-rolls, concentrates, and edibles to position its Canadian consumer business, which "has slipped from its top position in [the] Canadian consumer" market.
Competitor Canopy Growth (NYSE: CGC) capitalized on the derivatives opportunity by launching a variety of derivatives like cannabis-infused chocolates, vape products, and beverages in May. The company sees huge opportunities in the cannabis beverages market and believes that it could attract an entirely new range of customers. Canopy has already shipped $1.2 million ready-to-drink (RTD) cans to Canadian markets under the Tweed, Houseplant and DeepSpace brands.
However, Aurora has shown no interest in cannabis beverages, a strategic choice that doesn't seem all that wise given Canopy's success. The U.S. cannabis beverage market could be worth $2.8 billion by 2025, according to Grand View Research. Other estimates reveal that cannabis beverages could bring in CA$529 million in annual revenue, with all cannabis derivatives generating CA$2.7 billion annually, according to Deloitte.
Given the competition, it would be a smart move on Aurora's part to launch more derivatives products. So far this year, shares of Aurora have crashed an abysmal 83%, worse than Canopy's slump of 15%. The Horizons Marijuana Life Sciences Index ETF has declined 26% over the same period.
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What will 2021 bring for Aurora?
How 2021 shapes up for Aurora will depend on to what extent its aggressive cost-cutting strategies have succeeded. Its Q4 results disappointed investors, but hopefully its Q1 2021 report will show evidence that cost-cutting efforts are working. Aurora did already succeed in shrinking its capital expenditures down to CA$16.4 million from a massive Q3 charge of CA$74 million. Aurora's selling, general, and administrative (SG&A) expenses also fell to CA$67.7 million from CA$73 million in the year-ago quarter.
Aurora has just begun addressing investor concerns over a balance sheet full of impairment charges and writedowns, while enhancing its financial flexibility through credit facility amendments. All of these efforts contributed to an improvement in its adjusted EBITDA losses in the quarter. EBITDA losses came in at CA$34.6 million versus Q3's loss of CA$50.4 million.
Management stated in the Q4 results report that its facility rationalizations and cost-reduction plans could shrink costs by up to CA$10 million per quarter starting in the second half of fiscal 2021.
Image source: Getty Images.
Aurora's bottom line
Aurora's guidance for fiscal 2021 looks bleak. After divesting most of its non-core assets as part of its facility rationalizations plan, Aurora only has shaky cannabis sales to look to for revenue. The company is projecting cannabis net revenues in the range of CA$60 million to CA$64 million in the first quarter, a dip from Q4. Aurora hopes that its gross margin could fall in the range of 46% to 50%, after decreasing total spending on SG&A expenses and research and development (R&D) to a number between $40 and $45 million by the end of FY 2020.
If Aurora continues to reduce expenses and can launch some quality derivatives products, the company could bolster its revenue growth -- allowing it to hit profitability by next year. Investors should keep a close eye on the company's moves going forward. But for now, Aurora is not a reliable buy-and-hold marijuana stock.
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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 cannabis company Aurora Cannabis (NYSE: ACB) saw a bright future ahead when Canada legalized adult-use recreational marijuana in October 2018. ACB data by YCharts What will 2021 bring for Aurora? It executed some cost-cutting strategies including shutting down unprofitable facilities and reducing staff, in order to achieve its goal of hitting positive earnings before income, tax, depreciation, and amortization (EBITDA) by the second quarter of fiscal 2021. | Canadian cannabis company Aurora Cannabis (NYSE: ACB) saw a bright future ahead when Canada legalized adult-use recreational marijuana in October 2018. ACB data by YCharts What will 2021 bring for Aurora? The company has had to make up ground after it suffered serious impairment charges in its recent fourth quarter, ended June 30, including: A fixed asset impairment charge of 86.5 million Canadian dollars associated with production facility rationalization A CA$135.1 million charge linked to the carrying value of certain inventory A non-cash writedown of goodwill and intangible assets (the company did not specify the details of the charges) of CA$1.6 billion Are there more cannabis derivatives products in Aurora's pipeline? | Canadian cannabis company Aurora Cannabis (NYSE: ACB) saw a bright future ahead when Canada legalized adult-use recreational marijuana in October 2018. ACB data by YCharts What will 2021 bring for Aurora? The company has had to make up ground after it suffered serious impairment charges in its recent fourth quarter, ended June 30, including: A fixed asset impairment charge of 86.5 million Canadian dollars associated with production facility rationalization A CA$135.1 million charge linked to the carrying value of certain inventory A non-cash writedown of goodwill and intangible assets (the company did not specify the details of the charges) of CA$1.6 billion Are there more cannabis derivatives products in Aurora's pipeline? | Canadian cannabis company Aurora Cannabis (NYSE: ACB) saw a bright future ahead when Canada legalized adult-use recreational marijuana in October 2018. ACB data by YCharts What will 2021 bring for Aurora? The company has had to make up ground after it suffered serious impairment charges in its recent fourth quarter, ended June 30, including: A fixed asset impairment charge of 86.5 million Canadian dollars associated with production facility rationalization A CA$135.1 million charge linked to the carrying value of certain inventory A non-cash writedown of goodwill and intangible assets (the company did not specify the details of the charges) of CA$1.6 billion Are there more cannabis derivatives products in Aurora's pipeline? |
37216.0 | 2020-10-17 00:00:00 UTC | Aurora Cannabis: Buy the Dip? | ACB | https://www.nasdaq.com/articles/aurora-cannabis%3A-buy-the-dip-2020-10-17 | nan | nan | Investing guru Warren Buffett once said, "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." In the context of Aurora Cannabis' (NYSE: ACB) fall from grace, many investors are now applying Buffett's principle and wondering if they should buy the stock on its dip.
In the past two years, Aurora invested in facilities that would bring its total cannabis production capacity to over 625,000 kilograms (kg) per year to capitalize on the drug's legalization in Canada. Unfortunately, it turns out Canadian consumers never needed that much cannabis from Aurora. The business sold just 16,748 kg of marijuana in Q4 2020. As a result, shareholders began to abandon ship.
It's important for investors to remember that Buffett's premise is only foolproof when buying a great company at a reasonable price -- not buying a bad company on the cheap. Aurora could one of the companies in the latter category. Today, let's look at why Aurora is not a great investing option for the long term despite its potential near-term trading rebound.
Image source: Getty Images
A series of unfortunate events
Due to an oversupply of marijuana in Canada, Aurora's cannabis flowers' net selling price declined by about 30% year over year during Q4 2020. Right now, the company sells 37% of the 44,406 kg of cannabis it harvests. The failure of correctly estimating supply and demand dynamics has led Aurora to a 1.6 billion Canadian dollar writedown of its production facilities and acquired companies, while still holding onto inventory worth CA$139 million. This has definitely not been a good year for Aurora, as its stock price is down more than 83% year to date, turning an investment of $5,000 in January into a meager $850 as of Oct. 15.
Can Aurora turn things around?
Despite all the bad news surrounding the company, during its lastearnings call Aurora's management said the company is on track to achieve profitability by the second quarter of 2021. The path to that goal, however, has significant hurdles.
First of all, the profitability alluded to during theearnings callis only in terms of operating income less certain non-cash items such as depreciation and impairments, called earnings before interest, taxes, depreciation, and amortization (EBITDA). When a business purchases an asset, its market value goes down over time due to wear and tear. The property's decline is reported as a loss in accounting terms, despite receiving no actual negative cash flow from the adjustment. (Depreciation cost is an especially important measurement for pot companies, whose plant products come with expiration dates.) Even after adding depreciation and impairments back to its operating income, however, the company still has financial expenses to account for before it can become profitable.
If that isn't confusing enough, Aurora's profitability target is further convoluted by adjustments to its EBITDA. For example, in the past year, Aurora issued CA$59.9 million in share-based compensation to executives and employees, while its share price has declined by nearly 90%. That expense is part of Aurora's EBITDA adjustment, despite making the stock 10% more expensive (on a market cap basis) via dilutions.
If we were to remove all the excessive adjustments from Aurora's calculations, such as share-based compensation, financial losses, and restructuring expenses, the company's EBITDA loss in the fourth quarter of 2020 stood at CA$59.74 million, representing no significant improvement from its EBITDA loss of CA$73.55 million in Q4 2019.
As a result, it is likely that Aurora will have to wait a while longer to become EBITDA positive. Some analysts project that it could be as many as three years from now when Aurora finally achieves positive EBITDA. That's a problematic timeline, because the company only has CA$165 million worth of cash and investments on hand to offset CA$531.25 million in debt and convertibles. When a company runs out of cash and wants to continue its operations, it has few choices but to sell more stock to investors.
In the first half of 2020 alone, Aurora's shares outstanding increased by approximately 21 million to 111.09 million. Given Aurora's poor financial performance, investors should expect more dilution coming their way before a meaningful turnaround happens.
Takeaways for investors
Stock prices rarely move linearly. Right now, Aurora is only trading for 2 times price to sales (P/S) and 0.3 times its book value (P/B). Even with goodwill removed from its shareholder's equity calculation, the company still has a quarterly book value of CA$1.5 billion compared to a market cap of $526 million. Over the past two weeks, the amount of Aurora stock sold short accounts for between 19% and 29% of its trading volume. All of this indicates that Aurora's share price is low and may see a brief recovery in the near future.
But over the long term, investors should not plan to hold on to Aurora stock. The company is struggling to cut losses, engaged in a hyper-competitive marijuana market in Canada, dealing with inadequate capitalization, and continues to dilute of new investors. For those who are interested in marijuana stocks, there are plenty of companies in the burgeoning sector without the same financial woes as 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 – 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
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. | In the context of Aurora Cannabis' (NYSE: ACB) fall from grace, many investors are now applying Buffett's principle and wondering if they should buy the stock on its dip. The failure of correctly estimating supply and demand dynamics has led Aurora to a 1.6 billion Canadian dollar writedown of its production facilities and acquired companies, while still holding onto inventory worth CA$139 million. The company is struggling to cut losses, engaged in a hyper-competitive marijuana market in Canada, dealing with inadequate capitalization, and continues to dilute of new investors. | In the context of Aurora Cannabis' (NYSE: ACB) fall from grace, many investors are now applying Buffett's principle and wondering if they should buy the stock on its dip. Image source: Getty Images A series of unfortunate events Due to an oversupply of marijuana in Canada, Aurora's cannabis flowers' net selling price declined by about 30% year over year during Q4 2020. For example, in the past year, Aurora issued CA$59.9 million in share-based compensation to executives and employees, while its share price has declined by nearly 90%. | In the context of Aurora Cannabis' (NYSE: ACB) fall from grace, many investors are now applying Buffett's principle and wondering if they should buy the stock on its dip. Image source: Getty Images A series of unfortunate events Due to an oversupply of marijuana in Canada, Aurora's cannabis flowers' net selling price declined by about 30% year over year during Q4 2020. This has definitely not been a good year for Aurora, as its stock price is down more than 83% year to date, turning an investment of $5,000 in January into a meager $850 as of Oct. 15. | In the context of Aurora Cannabis' (NYSE: ACB) fall from grace, many investors are now applying Buffett's principle and wondering if they should buy the stock on its dip. In the past two years, Aurora invested in facilities that would bring its total cannabis production capacity to over 625,000 kilograms (kg) per year to capitalize on the drug's legalization in Canada. If we were to remove all the excessive adjustments from Aurora's calculations, such as share-based compensation, financial losses, and restructuring expenses, the company's EBITDA loss in the fourth quarter of 2020 stood at CA$59.74 million, representing no significant improvement from its EBITDA loss of CA$73.55 million in Q4 2019. |
37217.0 | 2020-10-16 00:00:00 UTC | CANADA STOCKS - TSX falls 0.38% to 16,438.75 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-0.38-to-16438.75-2020-10-16 | nan | nan | * The Toronto Stock Exchange's TSX falls 0.38 percent to 16,438.75
* Leading the index were Aritzia Inc , up 3.4%, Corus Entertainment Inc CJRb.TO, up 3.1%, and Home Capital Group Inc HCG.TO, higher by 3%.
* Lagging shares were Aurora Cannabis Inc ACB.TO, down 6.5%, Cenovus Energy Inc CVE.TO, down 4.7%, and Eldorado Gold Corp ELD.TO, lower by 4.5%.
* On the TSX 83 issues rose and 135 fell as a 0.6-to-1 ratio favored decliners. There were 10 new highs and 1 new low, with total volume of 176.9 million shares.
* The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Blackberry Ltd BB.TO and Enbridge Inc ENB.TO.
* The TSX's energy group .SPTTEN fell 1.08 points, or 1.6%, while the financials sector .SPTTFS climbed 0.21 points, or 0.1%.
* West Texas Intermediate crude futures CLc1 fell 0.44%, or $0.18, to $40.78 a barrel. Brent crude LCOc1 fell 0.81%, or $0.35, to $42.81 O/R
* The TSX is off 3.7% 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. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 6.5%, Cenovus Energy Inc CVE.TO, down 4.7%, and Eldorado Gold Corp ELD.TO, lower by 4.5%. * The Toronto Stock Exchange's TSX falls 0.38 percent to 16,438.75 * Leading the index were Aritzia Inc , up 3.4%, Corus Entertainment Inc CJRb.TO, up 3.1%, and Home Capital Group Inc HCG.TO, higher by 3%. * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Blackberry Ltd BB.TO and Enbridge Inc ENB.TO. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 6.5%, Cenovus Energy Inc CVE.TO, down 4.7%, and Eldorado Gold Corp ELD.TO, lower by 4.5%. * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Blackberry Ltd BB.TO and Enbridge Inc ENB.TO. * The TSX's energy group .SPTTEN fell 1.08 points, or 1.6%, while the financials sector .SPTTFS climbed 0.21 points, or 0.1%. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 6.5%, Cenovus Energy Inc CVE.TO, down 4.7%, and Eldorado Gold Corp ELD.TO, lower by 4.5%. * The Toronto Stock Exchange's TSX falls 0.38 percent to 16,438.75 * Leading the index were Aritzia Inc , up 3.4%, Corus Entertainment Inc CJRb.TO, up 3.1%, and Home Capital Group Inc HCG.TO, higher by 3%. * The TSX's energy group .SPTTEN fell 1.08 points, or 1.6%, while the financials sector .SPTTFS climbed 0.21 points, or 0.1%. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 6.5%, Cenovus Energy Inc CVE.TO, down 4.7%, and Eldorado Gold Corp ELD.TO, lower by 4.5%. * The Toronto Stock Exchange's TSX falls 0.38 percent to 16,438.75 * Leading the index were Aritzia Inc , up 3.4%, Corus Entertainment Inc CJRb.TO, up 3.1%, and Home Capital Group Inc HCG.TO, higher by 3%. * On the TSX 83 issues rose and 135 fell as a 0.6-to-1 ratio favored decliners. |
37218.0 | 2020-10-15 00:00:00 UTC | Why Marijuana Stocks Aurora Cannabis, HEXO, and Charlotte's Web Went Up in Smoke Today | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-aurora-cannabis-hexo-and-charlottes-web-went-up-in-smoke-today-2020 | nan | nan | What happened
Last week, Kamala Harris pledged that if elected, the Biden administration would decriminalize marijuana. Many weed stocks popped on that pronouncement.
That was then; this is now. Marijuana stocks had an awful Thursday. Bellwether Aurora Cannabis (NYSE: ACB) declined by 5.5% on the day, HEXO (NYSE: HEXO) slipped 3.5%, and cannabidiol (CBD) specialist Charlotte's Web Holdings (OTC: CWBHF) won that three-horse race to the bottom with a 7.5% slide.
Image source: Getty Images.
So what
The bad guy in this story is their peer, Canadian producer and supplier Aphria (NASDAQ: APHA). Before market open, Aphria published its results for the first quarter of fiscal 2021.
As is habitual in corporate marijuana, Aphria booked a net loss, although that was actually a bit narrower than analyst estimates.
The problem was revenue, which fell short of projections and was down on a sequential basis. Aphria said the culprit was the coronavirus pandemic, which dampened the market for any unrelated health need, such as medical marijuana. This had a deleterious effect on its distribution revenue.
Now what
Aphria's poor showing is about the 50th stark illustration of the woes of the cannabis industry. It remains burdened by many albatrosses, including the strength of competing black-market product, supply challenges, and regulatory inconsistencies -- even in 100% legalized Canada, the home not only of Aphria, but also Aurora and HEXO (Charlotte's Web is based in Colorado).
Marijuana stock investors are a hardy bunch, but many find these frequent reminders of struggle dismaying. Their patience might be wearing thin.
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 Charlotte's Web and 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. | Bellwether Aurora Cannabis (NYSE: ACB) declined by 5.5% on the day, HEXO (NYSE: HEXO) slipped 3.5%, and cannabidiol (CBD) specialist Charlotte's Web Holdings (OTC: CWBHF) won that three-horse race to the bottom with a 7.5% slide. As is habitual in corporate marijuana, Aphria booked a net loss, although that was actually a bit narrower than analyst estimates. It remains burdened by many albatrosses, including the strength of competing black-market product, supply challenges, and regulatory inconsistencies -- even in 100% legalized Canada, the home not only of Aphria, but also Aurora and HEXO (Charlotte's Web is based in Colorado). | Bellwether Aurora Cannabis (NYSE: ACB) declined by 5.5% on the day, HEXO (NYSE: HEXO) slipped 3.5%, and cannabidiol (CBD) specialist Charlotte's Web Holdings (OTC: CWBHF) won that three-horse race to the bottom with a 7.5% slide. It remains burdened by many albatrosses, including the strength of competing black-market product, supply challenges, and regulatory inconsistencies -- even in 100% legalized Canada, the home not only of Aphria, but also Aurora and HEXO (Charlotte's Web is based in Colorado). The Motley Fool recommends Charlotte's Web and HEXO. | Bellwether Aurora Cannabis (NYSE: ACB) declined by 5.5% on the day, HEXO (NYSE: HEXO) slipped 3.5%, and cannabidiol (CBD) specialist Charlotte's Web Holdings (OTC: CWBHF) won that three-horse race to the bottom with a 7.5% slide. It remains burdened by many albatrosses, including the strength of competing black-market product, supply challenges, and regulatory inconsistencies -- even in 100% legalized Canada, the home not only of Aphria, but also Aurora and HEXO (Charlotte's Web is based in Colorado). 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. | Bellwether Aurora Cannabis (NYSE: ACB) declined by 5.5% on the day, HEXO (NYSE: HEXO) slipped 3.5%, and cannabidiol (CBD) specialist Charlotte's Web Holdings (OTC: CWBHF) won that three-horse race to the bottom with a 7.5% slide. It remains burdened by many albatrosses, including the strength of competing black-market product, supply challenges, and regulatory inconsistencies -- even in 100% legalized Canada, the home not only of Aphria, but also Aurora and HEXO (Charlotte's Web is based in Colorado). 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. |
37219.0 | 2020-10-15 00:00:00 UTC | When Will Canadian Marijuana Stocks Be Profitable? | ACB | https://www.nasdaq.com/articles/when-will-canadian-marijuana-stocks-be-profitable-2020-10-15 | nan | nan | Marijuana should be one of fastest-growing industries in North America this decade. There are currently tens of billions of dollars in cannabis sales conducted annually in the black market. If these sales can gradually be moved to legal channels via legalization, large-scale players should see plenty of profit potential.
However, our neighbor to north has completely face-planted in its attempt to be a global marijuana leader.
Image source: Getty Images.
Canada's pot industry has been a mess
Despite becoming the first industrialized country to legalize recreational cannabis, Canada and its more than a half-dozen well-known licensed producers have struggled mightily.
Part of this blame can be attached to national and provincial regulators. For example, Health Canada delayed the initial launch of high-margin derivatives (e.g., edibles, infused beverages, and vapes) in 2019 by two months, and took far too long to review and approve cultivation and sales license applications prior to the Oct. 17, 2018 launch of dried flower sales throughout Canada.
As for provincial regulators, select provinces have suffered from failed leadership. In Ontario, the country's most-populous province, regulators stuck with a lottery system to assign retail licenses between Oct. 2018 and Dec. 2019. At the one-year anniversary (Oct. 17, 2019) of recreational sales, only 24 dispensaries had been opened in a province that could comfortably house close to 1,000 retail locations. Although Ontario has since moved to a more traditional application vetting process for dispensaries, it's going to take a while before there's an adequate retail presence in the province.
Canadian licensed producers (LPs) are to blame, too. Most of them failed to accurately predict what domestic consumer demand would be like in the early going, and are now being forced to shutter cultivation facilities and take significant writedowns on acquisitions.
Image source: Getty Images.
At some point, the Canadian marijuana industry is going to get its act together. The $64,000 question is, "When will Canadian marijuana stocks be profitable?"
According to Wall Street's consensus estimates, investors are going to need to be patient.
The lone Canadian LP expected to be profitable by 2022
The earliest LP on track to be profitable on a full-year basis is Ontario's Aphria (NASDAQ: APHA). Wall Street believes Aphria can generate $0.08 Canadian in per-share profit in fiscal 2022 (the company's fiscal year ends in May).
However, before anointing Aphria as the clear Canadian cannabis leader, understand that the company's operating results are getting some serious help from its acquisition of pharmaceutical distribution business CC Pharma. In fiscal 2020, total sales hit CA$543.3 million, which was up 129% from the prior-year period. But of this CA$543.3 million, only CA$150.4 million was associated with cannabis.
Generally speaking, pharmaceutical distribution margins are small and unimpressive. But distribution is a volume-based business that's clearly helping to push Aphria toward recurring profitability. To be clear, I'm not saying investors should punish Aphria for having a successful ancillary business segment. Rather, just understand that pharmaceutical distribution is going to be a drag on the company's margins, and value the company accordingly.
Image source: Getty Images.
This quartet of LPs should be profitable by 2023 (if they survive)
For four well-known Canadian LPs, 2023 looks to be their first opportunity to push into the green. Wall Street projects that Cronos Group, Tilray (NASDAQ: TLRY), HEXO (NYSE: HEXO), and OrganiGram (NASDAQ: OGI) will all turn nominally profitable on a recurring basis in 2023.
Of this group, OrganiGram looks the most compelling. OrganiGram didn't make any overpriced acquisitions leading up to the legalization of weed in Canada, and it has just a single operational facility in Moncton, New Brunswick. If the company can effectively control its expenses and produce superior yields to the industry average, it could easily come out a long-term winner. Investors will, however, need to exercise patience with OrganiGram as it ramps up its higher-margin derivative sales.
On the other hand, it's not even clear that Tilray or HEXO can survive over the long haul. Both companies have been issuing stock and diluting their shareholder to raise capital, all while losing money hand-over-fist. Both companies have also taken substantial writedowns, with Tilray chopping off value from its Manitoba Harvest purchase, and HEXO wiping the slate clean on its Newstrike Brands buyout. To boot, HEXO is a delisting risk.
Image source: Getty Images.
The most popular pot stocks are last in line to become profitable
Perhaps the biggest shock of all is that the two most popular marijuana stocks in Canada -- Canopy Growth (NYSE: CGC) and Aurora Cannabis (NYSE: ACB) -- are expected to be last among their peers to reach recurring profitability. Wall Street is looking for a very small per-share profit from both companies in fiscal 2024 (that's year-end Mar, 31, 2024 for Canopy and Jun. 30, 2024 for Aurora).
Even though Canopy Growth is the most cash-rich of all cannabis stocks, the company has been losing money at an extraordinary pace and making grossly overpriced acquisitions. Relatively new CEO David Klein has spent his first nine months on the job tightening Canopy's belt. Around 3 million square feet of licensed indoor cultivation space has been permanently closed, while share-based compensation has been (thankfully) slashed.
Meanwhile, Aurora Cannabis has been one of the industry's worst performers, with its share price down 96% since mid-March 2019. Aurora has shuttered five facilities, halted construction on two of its largest projects, sold another greenhouse, and taken billions of Canadian dollars in writedowns after grossly overpaying for its numerous acquisitions. Like Canopy, it's also trying to backpedal its way to profitability by slashing expenses. But unlike Canopy, Aurora Cannabis has been forced to lean on at-the-market stock offerings because of its ongoing cash burn.
Suffice it to say, Canopy Growth and Aurora Cannabis are two marijuana stocks that investors would be wise 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 – 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 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. | The most popular pot stocks are last in line to become profitable Perhaps the biggest shock of all is that the two most popular marijuana stocks in Canada -- Canopy Growth (NYSE: CGC) and Aurora Cannabis (NYSE: ACB) -- are expected to be last among their peers to reach recurring profitability. However, before anointing Aphria as the clear Canadian cannabis leader, understand that the company's operating results are getting some serious help from its acquisition of pharmaceutical distribution business CC Pharma. Both companies have also taken substantial writedowns, with Tilray chopping off value from its Manitoba Harvest purchase, and HEXO wiping the slate clean on its Newstrike Brands buyout. | The most popular pot stocks are last in line to become profitable Perhaps the biggest shock of all is that the two most popular marijuana stocks in Canada -- Canopy Growth (NYSE: CGC) and Aurora Cannabis (NYSE: ACB) -- are expected to be last among their peers to reach recurring profitability. Wall Street believes Aphria can generate $0.08 Canadian in per-share profit in fiscal 2022 (the company's fiscal year ends in May). Wall Street projects that Cronos Group, Tilray (NASDAQ: TLRY), HEXO (NYSE: HEXO), and OrganiGram (NASDAQ: OGI) will all turn nominally profitable on a recurring basis in 2023. | The most popular pot stocks are last in line to become profitable Perhaps the biggest shock of all is that the two most popular marijuana stocks in Canada -- Canopy Growth (NYSE: CGC) and Aurora Cannabis (NYSE: ACB) -- are expected to be last among their peers to reach recurring profitability. Wall Street projects that Cronos Group, Tilray (NASDAQ: TLRY), HEXO (NYSE: HEXO), and OrganiGram (NASDAQ: OGI) will all turn nominally profitable on a recurring basis in 2023. 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. | The most popular pot stocks are last in line to become profitable Perhaps the biggest shock of all is that the two most popular marijuana stocks in Canada -- Canopy Growth (NYSE: CGC) and Aurora Cannabis (NYSE: ACB) -- are expected to be last among their peers to reach recurring profitability. Canada's pot industry has been a mess Despite becoming the first industrialized country to legalize recreational cannabis, Canada and its more than a half-dozen well-known licensed producers have struggled mightily. Wall Street projects that Cronos Group, Tilray (NASDAQ: TLRY), HEXO (NYSE: HEXO), and OrganiGram (NASDAQ: OGI) will all turn nominally profitable on a recurring basis in 2023. |
37220.0 | 2020-10-15 00:00:00 UTC | Robinhood Investors Might Be Violating Basic Allocation Rules | ACB | https://www.nasdaq.com/articles/robinhood-investors-might-be-violating-basic-allocation-rules-2020-10-15 | nan | nan | Data indicates that Robinhood users, who are frequently learning how to invest in stocks, are piling disproportionately into a small number of risky strategies that violate important portfolio composition principles. The most popular stocks on the platform illustrate some clear purchasing trends that have yielded mixed results over the past six months.
However, even in those cases that have delivered favorable returns, a more nuanced analysis shows that investors may have taken on too much volatility to justify those gains.
Image source: Getty Images.
Robinhood became a lot more popular in April
Working from home and volatile market conditions fueled stock market participation in 2020, and Robinhood was one of the main beneficiaries, seeing its active user base grow from 10 million at the start of 2020 to 13 million in June. Robintrack.net, a site that published data from Robinhood's API through August, allowed the public to see which stocks were held by the largest number of account holders. This data didn't weight holdings according to value, but it still gave a great idea of the general trends that have been motivating retail investors and traders.
From April through August, the 10 most popular stocks on Robinhood remained largely unchanged. The list is comprised of GoPro (NASDAQ: GPRO), Carnival (NYSE: CCL), Tesla (NASDAQ: TSLA), Delta Air Lines (NYSE: DAL), Walt Disney (NYSE: DIS), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), American Airlines (NASDAQ: AAL), General Electric (NYSE: GE), and Ford Motor (NYSE: F).
Robinhood investors are targeting momentum and deep value
Since activity started taking off in April, half of the top 10 stocks on Robinhood have been outpaced by indexes that investors can track easily, inexpensively, and in a diversified manner with exchange-traded funds (ETFs). Investors have targeted deep value in airlines Delta and American, while powerful brands GE, Disney, and Microsoft have also generated attention.
Among that group, only GE is down over the period, but investors would still have been better off simply owning the market than half of the Robinhood top ten stocks. The long narrative for these five stocks may well come to fruition in the near future, but holders have nonetheless incurred six months of opportunity cost during one of the hottest bull markets of all time.
Image source: YCharts.
Elsewhere in the Robinhood top ten list, investors are enjoying some high-flying winners, including Tesla, Apple, GoPro, Ford, and Carnival. These were great positions to ride during the current bull market, but the ownership data indicates that the vast majority of Robinhood investors were still holding these stocks without taking all those gains off the table as of August. Holders of these stocks should congratulate themselves on these wins and know that they've outperformed benchmark indexes. However, they should also be aware of associated volatility risks and some absolutely essential portfolio composition principles.
Image source: YCharts.
Returns are an essential aspect of performance, but not the only one
Lagging performance for half of the top ten list speaks for itself, and the investing community no doubt wants to see that number higher. Beyond that, it's easy for investors to fall victim to confirmation bias and ignoring process in favor of results when assessing the surging portion of the portfolio.
All five stocks in the top ten that delivered outperformance are relatively volatile names with five-year beta values ranging from 1.3 to 1.95. This shouldn't be surprising, because volatile stocks tend to deliver better returns during bull markets. There's absolutely nothing wrong with owning volatile stocks. It's important to have exposure to these sorts of positions in a growth portfolio, because they are engines for gains. However, volatility works both ways, and overweighting these equities can quickly eliminate returns when the market sours. Robinhood users had not exited these positions as of August, so an examination of risk-adjusted returns could be vital for those investors.
Long-term investing is based on business fundamentals, stock valuation, and a stock's performance outlook relative to others. Speculation, on the other hand, largely ignores fundamentals by shifting the focus to narrative guesswork and momentum. Speculators sacrifice some control over performance, and they usually rely on short-term market dynamics working in their favor. Meanwhile, fundamental investors know that long-term stock performance will reflect the financial results of the underlying company. Along the way, share values may fluctuate within any short-term window due to market dynamics, and this risk can be quantified with volatility metrics such as beta.
As a result, sophisticated investors often analyze returns relative to volatility, thus ensuring that gains aren't simply a result of riskier behavior during advantageous periods. The Sharpe ratio is a popular metric used for this purpose. It's not a flawless metric, but it can shed some light on performance. Indeed, Robinhood's highfliers look somewhat less exciting in this light. GoPro's 1.95 Sharpe ratio and Carnivals' 0.78 are outstripped by 2.98 for the S&P. Tesla's 3.34 is almost identical to that of the NASDAQ. Ford and Apple still look to have been worth the volatility at 3.91 and 3.41 respectively, but the gap between those stocks and simple index fund is much more narrow once returns are risk-adjusted
Hopefully, the swelling number of Robinhood accounts represent the speculative or playful portion of users' overall financial plans. If these are their primary equity holdings, they would be well-served realize some gains, diversify and consider the role of volatility in whatever returns they've delivered so far.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Ryan Downie has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Microsoft, Tesla, and Walt Disney. The Motley Fool recommends Carnival and Delta Air Lines and recommends the following options: long January 2021 $60 calls on Walt Disney, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, and short October 2020 $125 calls on Walt Disney. 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. | Data indicates that Robinhood users, who are frequently learning how to invest in stocks, are piling disproportionately into a small number of risky strategies that violate important portfolio composition principles. These were great positions to ride during the current bull market, but the ownership data indicates that the vast majority of Robinhood investors were still holding these stocks without taking all those gains off the table as of August. Ford and Apple still look to have been worth the volatility at 3.91 and 3.41 respectively, but the gap between those stocks and simple index fund is much more narrow once returns are risk-adjusted Hopefully, the swelling number of Robinhood accounts represent the speculative or playful portion of users' overall financial plans. | The list is comprised of GoPro (NASDAQ: GPRO), Carnival (NYSE: CCL), Tesla (NASDAQ: TSLA), Delta Air Lines (NYSE: DAL), Walt Disney (NYSE: DIS), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), American Airlines (NASDAQ: AAL), General Electric (NYSE: GE), and Ford Motor (NYSE: F). Robinhood investors are targeting momentum and deep value Since activity started taking off in April, half of the top 10 stocks on Robinhood have been outpaced by indexes that investors can track easily, inexpensively, and in a diversified manner with exchange-traded funds (ETFs). The Motley Fool recommends Carnival and Delta Air Lines and recommends the following options: long January 2021 $60 calls on Walt Disney, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, and short October 2020 $125 calls on Walt Disney. | Robinhood became a lot more popular in April Working from home and volatile market conditions fueled stock market participation in 2020, and Robinhood was one of the main beneficiaries, seeing its active user base grow from 10 million at the start of 2020 to 13 million in June. The list is comprised of GoPro (NASDAQ: GPRO), Carnival (NYSE: CCL), Tesla (NASDAQ: TSLA), Delta Air Lines (NYSE: DAL), Walt Disney (NYSE: DIS), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), American Airlines (NASDAQ: AAL), General Electric (NYSE: GE), and Ford Motor (NYSE: F). Robinhood investors are targeting momentum and deep value Since activity started taking off in April, half of the top 10 stocks on Robinhood have been outpaced by indexes that investors can track easily, inexpensively, and in a diversified manner with exchange-traded funds (ETFs). | These were great positions to ride during the current bull market, but the ownership data indicates that the vast majority of Robinhood investors were still holding these stocks without taking all those gains off the table as of August. This shouldn't be surprising, because volatile stocks tend to deliver better returns during bull markets. The Motley Fool owns shares of and recommends Apple, Microsoft, Tesla, and Walt Disney. |
37221.0 | 2020-10-14 00:00:00 UTC | Why Shares of Aurora Cannabis, OrganiGram, and Charlotte's Web All Declined Today | ACB | https://www.nasdaq.com/articles/why-shares-of-aurora-cannabis-organigram-and-charlottes-web-all-declined-today-2020-10-14 | nan | nan | What happened
Marijuana stocks dropped in midday trading Wednesday. As of noon EDT, shares of Aurora Cannabis (NYSE: ACB) were trading 4% lower, OrganiGram Holdings (NASDAQ: OGI) was down 4.3%, and Charlotte's Web (OTC: CWBHF) was off 4%. And Charlotte's Web may be to blame for it all.
Weed stocks were wilting today. Image source: Getty Images.
So what
In a veritable tic-tac-toe of bad news, three analysts in a row have cut their price targets on Charlotte's Web, a producer of hemp-derived cannabidiol (CBD) wellness products. There are few details on the reasons for the cuts in price targets. But ratings-watcher StreetInsider.com confirms that since late Tuesday afternoon, no fewer than three separate name-brand analysts -- Cantor Fitzgerald, Roth Capital Partners, and Piper Sandler (NYSE: PIPR) -- have cut their price targets for Charlotte's Web stock.
Although CBD is the more legal byproduct of the marijuana industry, the pessimism about Charlotte's Web appears to be bleeding over into the more-traditional cannabis companies Aurora and OrganiGram, even though nobody seems to be downgrading them (yet).
Now what
Does this make sense with one political party promising to decriminalize marijuana and clear the records of those convicted of marijuana-related offenses?
Perhaps in the case of Charlotte's Web, it actually does. If you think of hemp-derived CBD wellness products as the legal alternative to the products that consumers nationwide really want to buy (weed), then the prospect of legal marijuana being widely available actually could be bad news for Charlotte's Web's business.
But it would almost certainly be good news for those who want to invest in honest-to-goodness marijuana stocks like Aurora Cannabis and OrganiGram Holdings. That's why today, although the declining price of Charlotte's Web stock makes sense, there's no really good reason to be selling Aurora Cannabis or OrganiGram.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends Charlotte's Web. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As of noon EDT, shares of Aurora Cannabis (NYSE: ACB) were trading 4% lower, OrganiGram Holdings (NASDAQ: OGI) was down 4.3%, and Charlotte's Web (OTC: CWBHF) was off 4%. So what In a veritable tic-tac-toe of bad news, three analysts in a row have cut their price targets on Charlotte's Web, a producer of hemp-derived cannabidiol (CBD) wellness products. But ratings-watcher StreetInsider.com confirms that since late Tuesday afternoon, no fewer than three separate name-brand analysts -- Cantor Fitzgerald, Roth Capital Partners, and Piper Sandler (NYSE: PIPR) -- have cut their price targets for Charlotte's Web stock. | As of noon EDT, shares of Aurora Cannabis (NYSE: ACB) were trading 4% lower, OrganiGram Holdings (NASDAQ: OGI) was down 4.3%, and Charlotte's Web (OTC: CWBHF) was off 4%. So what In a veritable tic-tac-toe of bad news, three analysts in a row have cut their price targets on Charlotte's Web, a producer of hemp-derived cannabidiol (CBD) wellness products. That's why today, although the declining price of Charlotte's Web stock makes sense, there's no really good reason to be selling Aurora Cannabis or OrganiGram. | As of noon EDT, shares of Aurora Cannabis (NYSE: ACB) were trading 4% lower, OrganiGram Holdings (NASDAQ: OGI) was down 4.3%, and Charlotte's Web (OTC: CWBHF) was off 4%. But ratings-watcher StreetInsider.com confirms that since late Tuesday afternoon, no fewer than three separate name-brand analysts -- Cantor Fitzgerald, Roth Capital Partners, and Piper Sandler (NYSE: PIPR) -- have cut their price targets for Charlotte's Web stock. That's why today, although the declining price of Charlotte's Web stock makes sense, there's no really good reason to be selling Aurora Cannabis or OrganiGram. | As of noon EDT, shares of Aurora Cannabis (NYSE: ACB) were trading 4% lower, OrganiGram Holdings (NASDAQ: OGI) was down 4.3%, and Charlotte's Web (OTC: CWBHF) was off 4%. But it would almost certainly be good news for those who want to invest in honest-to-goodness marijuana stocks like Aurora Cannabis and OrganiGram Holdings. That's why today, although the declining price of Charlotte's Web stock makes sense, there's no really good reason to be selling Aurora Cannabis or OrganiGram. |
37222.0 | 2020-10-14 00:00:00 UTC | Where Will Aphria Be in 1 Year? | ACB | https://www.nasdaq.com/articles/where-will-aphria-be-in-1-year-2020-10-14 | nan | nan | Investors have long known Canadian marijuana producers Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) as among the leading names in their industry, given their rapid expansion after Canada legalized recreational cannabis in October 2018. However, last year was pretty rough for both companies, bringing a series of headwinds that made it impossible for them to achieve profitability.
Regulatory delays slowed the openings of new legal cannabis stores through which they could sell their products. Unregulated sellers from an expanding black market also took a toll on the companies' revenues. And both companies' problems were exacerbated by the consequences of their rash, haphazard, and expensive efforts to expand too fast, too soon.
By contrast, cannabis producer Aphria (NASDAQ: APHA) has been taking advantage of current conditions to establish its name in the space with an asset-light approach. Selling products under the Aphria, Broken Coast, and Solei brands, it is the only Canadian pot company to have reported five consecutive quarters of positive EBITDA. Let's examine how Aphria could look one year from now.
Image Source: Getty Images.
Beyond high revenue growth, what more can it do?
Aphria already has an upper hand when it comes to revenue in the cannabis industry. Its focus on its roots has made its revenue soar this year. Considering its market cap of $1.6 billion -- less than a quarter of Canopy's $6.6 billion -- Aphria's revenue numbers are quite commendable. In its fiscal 2020, which ended May 31, its revenue grew 129% to $543.3 million Canadian dollars, while Canopy's revenue grew by 76% to CA$399 million for the same period.
When it delivered its fiscal Q4 numbers in late July, Aphria reported adjusted EBITDA of CA$8.6 million, up by a stunning 49% from Q3. But selling, general, and administrative (SG&A) expenses more than doubled sequentially, to CA$116.6 million, which pushed the company's Q4 net loss to $98.8 million. This was largely due to operational changes it made in response to the COVID-19 pandemic, resulting in a $64 million non-cash impairment charge, as well as some non-operating losses generated by declines in the values of some of its investments. However, I wouldn't fret about this one-time coronavirus-related charge.
The company's medical cannabis business has gained footholds across Canada, Europe, Africa, South America, and Oceania. Its Germany-based subsidiary, CC Pharma, brought in 98% of total distribution revenue in Q4; 2% came from other distribution companies. Of the quarter's net revenue of CA$152 million, CA$65.5 million came from cannabis products and CA$99.1 million from distribution revenue (minus CA$12.4 million in excise taxes). The medical business contributed 13% of the total revenue of in Q4; recreational cannabis provided the rest.
Aphria can be expected to benefit from the newer market for cannabis derivatives -- products such as vapes, edibles, concentrates, and pot-infused beverages and chocolates, which became legal for sale in Canada in October 2019 under its "Cannabis 2.0" regulations.
Its cannabis vape products are doing well, according to the Q4 report. I would be eager to see what more it can do with derivatives, given that Canopy Growth launched a wide range of vapes, cannabis-infused chocolates, and beverages in May. Given this competition and more, Aphria should plan to launch more varieties of derivative products soon.
Image Source: Getty Images.
What should be the focus?
Aphria earned a big chunk of its distribution revenue from its German subsidiary, and that dependence on CC Pharma could prove detrimental in the longer run. Management should continue to focus on the company's core operations and bringing in more sales from its home country. That said, diversification is also not a bad idea as more countries legalize cannabis. A key market for Aphria could be the U.S., where states continue to loosen restrictions: New Jersey, Mississippi, South Dakota, Arizona, and Montana all have legalization proposals of various types on their ballots next month.
Aphria also hasn't made any compelling partnership deals with any alcohol or beverage companies in the U.S. Meanwhile, Canopy Growth is partnered with beverage maker Constellation Brands, HEXO has linked up with Colorado-based Molson Coors Beverage Company, and Cronos Group has a deal with tobacco maker Altria Group. These strategic deals could be beneficial for these companies once the U.S. federally legalizes marijuana. What worries me is that Aphria might lose out on these opportunities.
Still, the future is bright for Aphria
A profitable company's strength lies in its leadership team -- and Aphria has proved that point. Since Irwin Simon took the reins as CEO in 2019, Aphria has been flourishing. (Prior to that, Simon was the independent chair of its board of directors.) His leadership skills are evident from the successes of packaged goods company Hain Celestial Group, which he founded and led as CEO for 25 years. Hain Celestial recorded $2.3 billion in revenue for its fiscal 2019.
Besides Canada, Aphria also has operations in Germany, Italy, Malta, Colombia, and Argentina. With consistent positive EBITDA and good cash on hand, the company has an opportunity to be a leading player in the derivatives market, which would give it room to flourish even more in the coming years. It had CA$497.2 million of cash and cash equivalents on its books at the end of its fiscal Q4.
So far this year, Aphria's stock has generally outperformed its peers. It's up by 10%, while the industry benchmark Horizons Marijuana Life Sciences ETF is down by 27%. Meanwhile, Canopy and Aurora have sunk 14% and 80%, respectively, over the same period.
ACB data by YCharts
Aphria will report its fiscal first-quarter 2021 results on Thursday, at which point investors should get a clearer picture of its growth strategies. But with a strong leadership team, consistent EBITDA, and staggering revenue growth, this is one of the best marijuana stock picks for new and seasoned investors.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors have long known Canadian marijuana producers Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) as among the leading names in their industry, given their rapid expansion after Canada legalized recreational cannabis in October 2018. ACB data by YCharts Aphria will report its fiscal first-quarter 2021 results on Thursday, at which point investors should get a clearer picture of its growth strategies. This was largely due to operational changes it made in response to the COVID-19 pandemic, resulting in a $64 million non-cash impairment charge, as well as some non-operating losses generated by declines in the values of some of its investments. | Investors have long known Canadian marijuana producers Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) as among the leading names in their industry, given their rapid expansion after Canada legalized recreational cannabis in October 2018. ACB data by YCharts Aphria will report its fiscal first-quarter 2021 results on Thursday, at which point investors should get a clearer picture of its growth strategies. In its fiscal 2020, which ended May 31, its revenue grew 129% to $543.3 million Canadian dollars, while Canopy's revenue grew by 76% to CA$399 million for the same period. | Investors have long known Canadian marijuana producers Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) as among the leading names in their industry, given their rapid expansion after Canada legalized recreational cannabis in October 2018. ACB data by YCharts Aphria will report its fiscal first-quarter 2021 results on Thursday, at which point investors should get a clearer picture of its growth strategies. Of the quarter's net revenue of CA$152 million, CA$65.5 million came from cannabis products and CA$99.1 million from distribution revenue (minus CA$12.4 million in excise taxes). | Investors have long known Canadian marijuana producers Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) as among the leading names in their industry, given their rapid expansion after Canada legalized recreational cannabis in October 2018. ACB data by YCharts Aphria will report its fiscal first-quarter 2021 results on Thursday, at which point investors should get a clearer picture of its growth strategies. Its focus on its roots has made its revenue soar this year. |
37223.0 | 2020-10-14 00:00:00 UTC | Aurora Cannabis Sells Entire Stake In Australia's Cann Group | ACB | https://www.nasdaq.com/articles/aurora-cannabis-sells-entire-stake-in-australias-cann-group-2020-10-14 | nan | nan | (RTTNews) - Canadian cannabis company Aurora Cannabis Inc. has sold off its entire stake in Australian medical marijuana company Cann Group Ltd., noting that the decision was consistent with its current strategic priorities.
Aurora Cannabis said in a filing with the Australian Securities Exchange that it has disposed of its entire position in Cann Group, effective October 9, 2020.
Cann Group is the first company in Australia ever to be licensed for research and cultivation of medical cannabis for human use.
Separately, Cann Group said it has been advised that Aurora Cannabis has exited its ownership position in Cann Group.
Aurora Cannabis sold its 11.84 percent shareholding in Cann Group via off-market trades to a small number of undisclosed buyers, after the market closed on Friday, 9 October 2020.
According to Cann Group, Aurora Cannabis indicated that its decision to exit its stake in Cann Group was consistent with its current strategic priorities.
Cann Group added that Aurora Cannabis' decision had no impact on Cann Group's business plans that include developing a growing and diversified supply base with B2B customers in Australia and overseas as well as proceeding with plans to expand its manufacturing capacity.
In March 2017, Aurora Cannabis announced its participation in the initial public offering or IPO of Cann Group on the Australian Stock Exchange as a cornerstone investor, securing a 19.9 percent stake in Cann Group.
At that time, Aurora Cannabis noted that there was potential for Australia to become a leading market for medical cannabis research, innovation, investment and commercialization, due to the country's regulatory framework, entrepreneurial business environment, and the high quality of local talent.
Aurora Cannabis later said in December 2017 that it increased its ownership stake in Cann Group to 22.9 percent from 19.9 percent, noting that funding the acceleration of Cann Group's expansion plans made strong strategic sense.
Last month, Aurora Cannabis reported a wider loss for fiscal year 2020. The company' full-year net loss widened to C$3.31 billion from restated loss of C$300.60 million in the prior year, while net revenue grew to C$278.91 million from a restated C$245.54 million.
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 said in a filing with the Australian Securities Exchange that it has disposed of its entire position in Cann Group, effective October 9, 2020. Aurora Cannabis sold its 11.84 percent shareholding in Cann Group via off-market trades to a small number of undisclosed buyers, after the market closed on Friday, 9 October 2020. Cann Group added that Aurora Cannabis' decision had no impact on Cann Group's business plans that include developing a growing and diversified supply base with B2B customers in Australia and overseas as well as proceeding with plans to expand its manufacturing capacity. | (RTTNews) - Canadian cannabis company Aurora Cannabis Inc. has sold off its entire stake in Australian medical marijuana company Cann Group Ltd., noting that the decision was consistent with its current strategic priorities. Separately, Cann Group said it has been advised that Aurora Cannabis has exited its ownership position in Cann Group. According to Cann Group, Aurora Cannabis indicated that its decision to exit its stake in Cann Group was consistent with its current strategic priorities. | (RTTNews) - Canadian cannabis company Aurora Cannabis Inc. has sold off its entire stake in Australian medical marijuana company Cann Group Ltd., noting that the decision was consistent with its current strategic priorities. According to Cann Group, Aurora Cannabis indicated that its decision to exit its stake in Cann Group was consistent with its current strategic priorities. Aurora Cannabis later said in December 2017 that it increased its ownership stake in Cann Group to 22.9 percent from 19.9 percent, noting that funding the acceleration of Cann Group's expansion plans made strong strategic sense. | (RTTNews) - Canadian cannabis company Aurora Cannabis Inc. has sold off its entire stake in Australian medical marijuana company Cann Group Ltd., noting that the decision was consistent with its current strategic priorities. Aurora Cannabis said in a filing with the Australian Securities Exchange that it has disposed of its entire position in Cann Group, effective October 9, 2020. Cann Group is the first company in Australia ever to be licensed for research and cultivation of medical cannabis for human use. |
37224.0 | 2020-10-13 00:00:00 UTC | CANADA STOCKS - TSX falls 0.31% to 16,510.83 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-0.31-to-16510.83-2020-10-13 | nan | nan | * The Toronto Stock Exchange's TSX falls 0.31 percent to 16,510.83
* Leading the index were BlackBerry Ltd , up 8.8%, Aphria Inc APHA.TO, up 6.2%, and Eldorado Gold Corp ELD.TO, higher by 5.5%.
* Lagging shares were Enerplus Corp ERF.TO, down 5.6%, Parex Resources Inc PXT.TO, down 5.1%, and Aurora Cannabis Inc ACB.TO, lower by 4.9%.
* On the TSX 73 issues rose and 150 fell as a 0.5-to-1 ratio favored decliners. There were 11 new highs and no new lows, with total volume of 221.9 million shares.
* The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Canadian Natural Resources Ltd CNQ.TO and Aphria Inc APHA.TO.
* The TSX's energy group .SPTTEN fell 0.94 points, or 1.4%, while the financials sector .SPTTFS slipped 2.81 points, or 1.0%.
* West Texas Intermediate crude futures CLc1 rose 1.9%, or $0.75, to $40.18 a barrel. Brent crude LCOc1 rose 1.75%, or $0.73, to $42.45 O/R
* The TSX is off 3.2% 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. | * Lagging shares were Enerplus Corp ERF.TO, down 5.6%, Parex Resources Inc PXT.TO, down 5.1%, and Aurora Cannabis Inc ACB.TO, lower by 4.9%. * The Toronto Stock Exchange's TSX falls 0.31 percent to 16,510.83 * Leading the index were BlackBerry Ltd , up 8.8%, Aphria Inc APHA.TO, up 6.2%, and Eldorado Gold Corp ELD.TO, higher by 5.5%. * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Canadian Natural Resources Ltd CNQ.TO and Aphria Inc APHA.TO. | * Lagging shares were Enerplus Corp ERF.TO, down 5.6%, Parex Resources Inc PXT.TO, down 5.1%, and Aurora Cannabis Inc ACB.TO, lower by 4.9%. * On the TSX 73 issues rose and 150 fell as a 0.5-to-1 ratio favored decliners. * The TSX's energy group .SPTTEN fell 0.94 points, or 1.4%, while the financials sector .SPTTFS slipped 2.81 points, or 1.0%. | * Lagging shares were Enerplus Corp ERF.TO, down 5.6%, Parex Resources Inc PXT.TO, down 5.1%, and Aurora Cannabis Inc ACB.TO, lower by 4.9%. * The Toronto Stock Exchange's TSX falls 0.31 percent to 16,510.83 * Leading the index were BlackBerry Ltd , up 8.8%, Aphria Inc APHA.TO, up 6.2%, and Eldorado Gold Corp ELD.TO, higher by 5.5%. * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Canadian Natural Resources Ltd CNQ.TO and Aphria Inc APHA.TO. | * Lagging shares were Enerplus Corp ERF.TO, down 5.6%, Parex Resources Inc PXT.TO, down 5.1%, and Aurora Cannabis Inc ACB.TO, lower by 4.9%. * The Toronto Stock Exchange's TSX falls 0.31 percent to 16,510.83 * Leading the index were BlackBerry Ltd , up 8.8%, Aphria Inc APHA.TO, up 6.2%, and Eldorado Gold Corp ELD.TO, higher by 5.5%. * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Canadian Natural Resources Ltd CNQ.TO and Aphria Inc APHA.TO. |
37225.0 | 2020-10-12 00:00:00 UTC | If You Invested $5,000 in Canopy Growth's IPO, This Is How Much Money You'd Have Now | ACB | https://www.nasdaq.com/articles/if-you-invested-%245000-in-canopy-growths-ipo-this-is-how-much-money-youd-have-now-2020-10 | nan | nan | If you had invested $5,000 in Canopy Growth (NYSE: CGC) on the day of its trading debut in May 2018, that investment would be worth just $2,762 as of Oct. 8 -- a devastating 45% loss. At one point in time, the principal would have been worth more than $10,000 due to excessive speculation in the Canadian marijuana market. Now, that bubble has popped, and many investors are left wondering whether they will ever recoup their capital.
As it turns out, the problems that caused Canopy Growth's spectacular fall are still lingering. Even the billion-dollar investment made in the company by Constellation Brands (NYSE: STZ) may not be enough to reverse the trend. Let's look at why investors should look past Canopy Growth and choose other marijuana stocks today.
Image source: Getty Images
Struggling operations
In the first quarter of 2021, Canopy Growth's sales increased by 22% year over year to $110.4 million Canadian dollars, primarily driven by the 92% growth witnessed in its international medical cannabis segment. Its hemp and recreational cannabis sales, however, saw significant headwinds. Because of ongoing oversupply issues in the Canadian marijuana market, the price of dried flower cannabis has deflated by about 15% year over year.
Additionally, Canopy Growth only produced 22,990 kilograms (kg) of cannabis in the quarter, down significantly from the 40,960 kg it posted in Q1 2020. The company closed down two of its production facilities in British Columbia due to a lack of consumer demand.
While Canopy Growth's revenue increased, its profitability wasn't able to catch up. The company's gross profits declined to CA$6.5 million during the quarter, down abut two-thirds from Q1 2020. On the other hand, its selling, general, and administrative (SG&A) expenses rang in at over CA$135 million. Canopy Growth also issued CA$30.7 million in share-based compensation expenses and recorded CA$12.8 million in asset impairment and restructuring expenses.
If all that wasn't bad enough, Canopy Growth also has CA$390 million in inventory on its balance sheet and recorded a writedown of CA$19 million in unsold goods during Q1 2021. Although the company is trying to attain No. 1 or No. 2 market share status in Canada and Germany, it is having trouble sticking to expansion plans in the increasingly competitive U.S. market for cannabis.
Out-of-this-world valuation
Canopy Growth's financial situation is not improving. During Q1, the company used up CA$327.3 million worth of cash, not accounting for the CA$245 million in cash it received via the issuance of new stock. Without a reversal of luck, Canopy Growth's CA$2 billion cash and investments will shrink quarter by quarter. The company also has CA$500 million worth of debt, CA$285 million in acquisition liabilities, and CA$287 million in warrants to account for.
Despite its declining financial health, Canopy Growth is still trading at a stunning 20 times price-to-sales (P/S) and 1.6 times price-to-book value (P/B) -- meaning that a large portion of its shareholders' equity consists of goodwill. Meanwhile, the company has continued diluting shareholders to raise more cash to pay for its unprofitable expenses. Currently, Canopy Growth's valuation is one of the most expensive in the industry, with competitors Aphria (NASDAQ: APHA), Aurora Cannabis (NYSE: ACB), and Green Thumb Industries (OTC: GTBIF) trading at P/S ratios of just 3.7, 2.4, and 8.5, respectively. Now may be a good time to consider alternative investments instead of Canopy Growth.
A never-ending wait for returns
Since mid-2018, Canopy Growth's shares outstanding have increased from about 200 million to more than 371 million. That's nearly double the number in a little over two years. If you're a marijuana investor looking for sector stocks with substantial growth, excellent financials, and a track record of protecting shareholders' capital, I'd quickly pass over Canopy Growth as an option. And if I'd invested $5,000 upon the company's IPO two years ago, I wouldn't hold my breath waiting for that investment to double.
Luckily for investors, the company isn't doomed by any means. With the help of Constellation Brands, Canopy is set to release its cannabis beverages in the U.S. next year. The company sold an astonishing 1.5 million cans after the beverages' launch in Canada last December. Although now is not a good time to get in Canopy, it may be a good idea to add it to one's watchlist in case the company makes a turnaround in the future.
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Zhiyuan Sun owns shares of Canopy Growth. 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. | Currently, Canopy Growth's valuation is one of the most expensive in the industry, with competitors Aphria (NASDAQ: APHA), Aurora Cannabis (NYSE: ACB), and Green Thumb Industries (OTC: GTBIF) trading at P/S ratios of just 3.7, 2.4, and 8.5, respectively. Image source: Getty Images Struggling operations In the first quarter of 2021, Canopy Growth's sales increased by 22% year over year to $110.4 million Canadian dollars, primarily driven by the 92% growth witnessed in its international medical cannabis segment. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Currently, Canopy Growth's valuation is one of the most expensive in the industry, with competitors Aphria (NASDAQ: APHA), Aurora Cannabis (NYSE: ACB), and Green Thumb Industries (OTC: GTBIF) trading at P/S ratios of just 3.7, 2.4, and 8.5, respectively. Image source: Getty Images Struggling operations In the first quarter of 2021, Canopy Growth's sales increased by 22% year over year to $110.4 million Canadian dollars, primarily driven by the 92% growth witnessed in its international medical cannabis segment. Canopy Growth also issued CA$30.7 million in share-based compensation expenses and recorded CA$12.8 million in asset impairment and restructuring expenses. | Currently, Canopy Growth's valuation is one of the most expensive in the industry, with competitors Aphria (NASDAQ: APHA), Aurora Cannabis (NYSE: ACB), and Green Thumb Industries (OTC: GTBIF) trading at P/S ratios of just 3.7, 2.4, and 8.5, respectively. Image source: Getty Images Struggling operations In the first quarter of 2021, Canopy Growth's sales increased by 22% year over year to $110.4 million Canadian dollars, primarily driven by the 92% growth witnessed in its international medical cannabis segment. Canopy Growth also issued CA$30.7 million in share-based compensation expenses and recorded CA$12.8 million in asset impairment and restructuring expenses. | Currently, Canopy Growth's valuation is one of the most expensive in the industry, with competitors Aphria (NASDAQ: APHA), Aurora Cannabis (NYSE: ACB), and Green Thumb Industries (OTC: GTBIF) trading at P/S ratios of just 3.7, 2.4, and 8.5, respectively. Now may be a good time to consider alternative investments instead of Canopy Growth. If you're a marijuana investor looking for sector stocks with substantial growth, excellent financials, and a track record of protecting shareholders' capital, I'd quickly pass over Canopy Growth as an option. |
37226.0 | 2020-10-11 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-2020-10-11 | nan | nan | Canadian marijuana company Aurora Cannabis (NYSE: ACB) is one of the most productive competitors in the North American cannabis marketplace, cultivating more than 35,000 kilograms of bulk flower in the third quarter of this year. With its net revenue expanding at a compound annual growth rate of 144% between the start of 2017 and the end of 2019, it's easy to see why some investors are taking an interest in the company. But it faces serious obstacles to its future success, and it hasn't had an easy year.
Aurora is nowhere close to being a profitable company, and to make matters worse, its stock has taken a beating this year, contracting by more than 82%. Can Aurora rally its fortunes and return its share price to the wild highs of 2018 and 2019, or are the company's millionaire-maker days firmly in its past? In my view, this company probably doesn't have what it takes to make you rich anytime soon, but it might be a decent investment anyway if it can tackle some of its problems, so it's still worth evaluating in depth.
Image source: Getty Images.
Consumer cannabis is a problematic market for Aurora
Aurora's largest obstacle to profitability -- and the prospect of making investors rich -- is its inability to grow its revenues, which most recently shrank by 5% on a quarterly basis. In fact, Aurora's recreational cannabis revenue dropped by 9% compared with last quarter, reaching $35.3 million Canadian dollars in total. This is a major problem for the company, especially considering that it sold 36% more dried cannabis by volume in the same period.
Unfortunately, the reason Aurora was able to sell significantly more of its products by volume while still reporting declining revenues is that in general, it was selling lower-value products (think highly discounted bulk cannabis flower, for which the company has narrow margins). In contrast, products with a high degree of added value (think vaporizers) exhibited decreasing sales revenues and declining market share.
Aurora's other issue is that its overhead costs are extremely high, leading the company to announce the planned closure of several of its production facilities earlier this year. Job cuts are also in progress, with production staff being reduced by as much as 30% and administrative staff by about 25%. These cuts are unlikely to be the last, especially if management is keen on its plan to reach positive earnings by the first half of 2021.
Shareholders should be pleased that the company is taking aggressive action to move toward profitability. But it's important to remember that millionaire-maker companies are typically expanding their ranks precipitously to meet hot demand in their markets, rather than sharply shrinking to downscale production capacity to what their market will support.
SPY data by YCharts
How Aurora might make a turnaround in 2021
There are a few things that indicate Aurora is on the right track to becoming a stock worth buying. First, the company is increasing its gross margin by shifting its emphasis to high-margin medicinal cannabis products, rather than its low-margin consumer cannabis fare. It's also working to drop its production costs for each gram of dried cannabis; those costs fell by 27% last quarter. Finally, Aurora's leadership has changed, with the longtime president, the CEO, and a high-profile advisor all departing earlier this year. The company's new management team will likely be instrumental in changing its trajectory, but they still have some work to do before shareholders consider them a proven quantity.
Aurora can't be considered a millionaire-maker stock at present. Between its over-capacity production facilities and its inability to compete effectively in high-margin markets, there's no path for its stock to grow by a massive amount. If management can successfully pivot its business to medicinal markets and more value-added cannabis goods, it may be able to start bringing in more money than it spends. Once its profitability has been established, it'll be worth revisiting the question of whether it might make investors rich.
In the meantime, check back in a year to see how Aurora is progressing along its transformation plan while under its new leadership. If the company's present problems seem like they've been tackled, its stock might have a brighter future than it does right now.
10 stocks we like better than Aurora Cannabis Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aurora Cannabis Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Canadian marijuana company Aurora Cannabis (NYSE: ACB) is one of the most productive competitors in the North American cannabis marketplace, cultivating more than 35,000 kilograms of bulk flower in the third quarter of this year. With its net revenue expanding at a compound annual growth rate of 144% between the start of 2017 and the end of 2019, it's easy to see why some investors are taking an interest in the company. In my view, this company probably doesn't have what it takes to make you rich anytime soon, but it might be a decent investment anyway if it can tackle some of its problems, so it's still worth evaluating in depth. | Canadian marijuana company Aurora Cannabis (NYSE: ACB) is one of the most productive competitors in the North American cannabis marketplace, cultivating more than 35,000 kilograms of bulk flower in the third quarter of this year. Unfortunately, the reason Aurora was able to sell significantly more of its products by volume while still reporting declining revenues is that in general, it was selling lower-value products (think highly discounted bulk cannabis flower, for which the company has narrow margins). First, the company is increasing its gross margin by shifting its emphasis to high-margin medicinal cannabis products, rather than its low-margin consumer cannabis fare. | Canadian marijuana company Aurora Cannabis (NYSE: ACB) is one of the most productive competitors in the North American cannabis marketplace, cultivating more than 35,000 kilograms of bulk flower in the third quarter of this year. Consumer cannabis is a problematic market for Aurora Aurora's largest obstacle to profitability -- and the prospect of making investors rich -- is its inability to grow its revenues, which most recently shrank by 5% on a quarterly basis. Unfortunately, the reason Aurora was able to sell significantly more of its products by volume while still reporting declining revenues is that in general, it was selling lower-value products (think highly discounted bulk cannabis flower, for which the company has narrow margins). | Canadian marijuana company Aurora Cannabis (NYSE: ACB) is one of the most productive competitors in the North American cannabis marketplace, cultivating more than 35,000 kilograms of bulk flower in the third quarter of this year. But it faces serious obstacles to its future success, and it hasn't had an easy year. Consumer cannabis is a problematic market for Aurora Aurora's largest obstacle to profitability -- and the prospect of making investors rich -- is its inability to grow its revenues, which most recently shrank by 5% on a quarterly basis. |
37227.0 | 2020-10-10 00:00:00 UTC | 3 Stocks Robinhood Investors Love | ACB | https://www.nasdaq.com/articles/3-stocks-robinhood-investors-love-2020-10-10 | nan | nan | In the bizarre market conditions of 2020, it's become even more evident that Robinhood traders are a cryptic and powerful force. Between their inscrutable support of bankrupt companies and wild speculatory purchases of coronavirus vaccine stocks, it's easy to dismiss the Robinhood crowd as undisciplined investors.
Although the platform's retail traders sometimes buoy the price of a weak company's stock beyond what its fundamentals support in the long run, there's nothing inherently bad about a stock being popular on a retail trading platform. In fact, many of the most-purchased Robinhood stocks are companies with massive long-term earnings potential.
Serious investors should stay informed about what the Robinhood herd is doing at the moment, if only to wait in the wings for a buying opportunity. All three of the stocks I discuss below are among the top 100 most held by Robinhood traders. Importantly, while all three of these stocks have the potential for massive revenue growth, they haven't realized that potential yet.
Let's investigate what Robinhood traders might have found exciting in each stock so that you'll know whether it might be worth hopping on the bandwagon in the future.
Image source: Getty Images.
1. Canopy Growth
Canopy Growth (NYSE: CGC) grows and sells recreational and medicinal cannabis products in the emerging North American and European markets. Throughout 2019 and 2020, the company launched a handful of new products ranging from cannabis-infused beverages to vape pens, in an effort to tap into growing consumer demand. Canopy isn't profitable, but it is rapidly growing, reporting year-over-year quarterly revenue growth of 22%. To address its unprofitability, the company reduced its production capacity in Canada by more than 40% and shed a couple hundred jobs in an attempt to reduce its overhead.
In light of these cuts, Canopy's future is still uncertain, but it's probable that Robinhood traders love the company for its favorable revenue growth, which takes place in the context of a new and evolving global market for cannabis. The company expects to transition toward profitability through 2021 by continuing to reduce costs and increasing revenues. Profitability is no guarantee, but if Canopy's management succeeds, the stock's Robinhood holders may capture substantial gains in the long term.
2. Aurora Cannabis
Like Canopy Growth, Aurora Cannabis (NYSE: ACB) is an unprofitable cannabis cultivation company that Robinhood investors are fond of. The similarities don't end there: Aurora has also planned the closure of several of its production facilities in an attempt to achieve profitability. Along with these facility closures, the company's net revenues fell by 5% in the last quarter, suggesting that Aurora's position is slightly more precarious than Canopy's.
Despite falling revenues, Aurora increased its cannabis production volume by 23% and reduced its cost per gram of cannabis sold by 27% in the most recent quarter. These factors aren't enough to make the business a favorable investment, but they do show that it is taking the necessary steps to eventually be profitable, perhaps within the next few years. For Robinhood traders, that's probably enough to warrant a buy, but more cautious investors should probably steer clear for the time being.
^SPX data by YCharts
3. Moderna
As one among a long list of biotechnology companies that aims to produce a coronavirus vaccine, Moderna (NASDAQ: MRNA) has become a household name in 2020. Between its high-profile messenger RNA (mRNA) vaccine candidate and repeated headlines suggesting that the company is making steady progress toward helping put an end to the pandemic, it's no surprise that Robinhood traders have rushed to speculate on Moderna's stock, pushing it to wild heights several times this year.
Like many of its biotech compatriots, however, Moderna isn't profitable, and it doesn't have any products on the market. This means that buying the company's stock is much closer to gambling than most investors are comfortable with.
Aside from its coronavirus vaccine candidate, Moderna has 20 other therapies in development across a range of oncological, respiratory, and autoimmune diseases. The majority of these projects are in the early phases of clinical trials, so they won't be delivering fresh revenues for the company anytime soon. If not for its coronavirus vaccine, Robinhood traders probably wouldn't give Moderna a second look until its pipeline programs have matured.
If you're considering whether to purchase Moderna's stock, keep in mind that the market's expectations for the vaccine candidate's success may already be priced in. So, if you're a believer in the long-term value of the company, it might pay to wait until the Robinhood traders get discouraged by any stumbles in its phase 3 clinical trials or the regulatory approvals process before scooping up shares of your own.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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
Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Like Canopy Growth, Aurora Cannabis (NYSE: ACB) is an unprofitable cannabis cultivation company that Robinhood investors are fond of. In light of these cuts, Canopy's future is still uncertain, but it's probable that Robinhood traders love the company for its favorable revenue growth, which takes place in the context of a new and evolving global market for cannabis. Between its high-profile messenger RNA (mRNA) vaccine candidate and repeated headlines suggesting that the company is making steady progress toward helping put an end to the pandemic, it's no surprise that Robinhood traders have rushed to speculate on Moderna's stock, pushing it to wild heights several times this year. | Aurora Cannabis Like Canopy Growth, Aurora Cannabis (NYSE: ACB) is an unprofitable cannabis cultivation company that Robinhood investors are fond of. Canopy Growth Canopy Growth (NYSE: CGC) grows and sells recreational and medicinal cannabis products in the emerging North American and European markets. Moderna As one among a long list of biotechnology companies that aims to produce a coronavirus vaccine, Moderna (NASDAQ: MRNA) has become a household name in 2020. | Aurora Cannabis Like Canopy Growth, Aurora Cannabis (NYSE: ACB) is an unprofitable cannabis cultivation company that Robinhood investors are fond of. In light of these cuts, Canopy's future is still uncertain, but it's probable that Robinhood traders love the company for its favorable revenue growth, which takes place in the context of a new and evolving global market for cannabis. Between its high-profile messenger RNA (mRNA) vaccine candidate and repeated headlines suggesting that the company is making steady progress toward helping put an end to the pandemic, it's no surprise that Robinhood traders have rushed to speculate on Moderna's stock, pushing it to wild heights several times this year. | Aurora Cannabis Like Canopy Growth, Aurora Cannabis (NYSE: ACB) is an unprofitable cannabis cultivation company that Robinhood investors are fond of. Like many of its biotech compatriots, however, Moderna isn't profitable, and it doesn't have any products on the market. If you're considering whether to purchase Moderna's stock, keep in mind that the market's expectations for the vaccine candidate's success may already be priced in. |
37228.0 | 2020-10-10 00:00:00 UTC | Forget Aurora Cannabis: Buy These 2 Pot Stocks Instead | ACB | https://www.nasdaq.com/articles/forget-aurora-cannabis%3A-buy-these-2-pot-stocks-instead-2020-10-10 | nan | nan | Problems abound for popular pot stock Aurora Cannabis (NYSE: ACB). Poor financial results, an ugly balance sheet, and share dilution problems have chased investors away in 2020. Consequently, Aurora Cannabis's stock has plunged almost 90% over the past year.
The S&P 500 is up 20% over the same period, and on the whole, many pot stocks have taken this year's market volatility in stride. Consumer demand for cannabis is rising, and it is becoming more evident that cannabis is evolving into a staple good in licit markets. But there are few reasons to believe that Aurora Cannabis can make a comeback and turn a profit from cannabis' new normal. Fortunately, several marijuana companies present better prospects. Let's discuss two of them and discover why they are worth investor attention.
ACB data by YCharts
1. Cresco Labs is one of the largest vertically integrated pot companies in the U.S.
The U.S. federal government isn't a friend of the pot industry. Marijuana remains a Schedule 1 drug in the U.S., meaning it has no recognized medical benefits, a high potential for abuse, and a high potential for dependence, according to the Drug Enforcement Agency (DEA). Meanwhile, 33 states and the District of Columbia have legalized medical uses of marijuana, and 11 have legalized adult recreational use of the substance. The cannabis industry is booming in some parts of the U.S., and one of the best companies that's been cashing in on the market opportunity is Cresco Labs (OTC: CRLBF).
This vertically integrated cannabis company has a presence in nine states, but two in particular are worth mentioning. First, nine of 19 dispensaries Cresco Labs currently operates are located in Illinois, where the recreational use of pot has been legal only since Jan. 1, 2020. Cresco Labs currently controls a leading market share in Illinois, which boasts an annual run rate of $1 billion in cannabis sales. During the company's second-quarterearnings conference call CEO Charlie Bachtell said that "Illinois is set to issue its next 75 retail licenses, a catalyst to more consumer demand and increase opportunities for our wholesale business."
Image source: Getty Images.
Second, thanks to its Jan. 8 acquisition of Origin House in a cash and stock transaction valued at $428.2 million, Cresco Labs has a strong presence in California, the largest cannabis market in the world. The deal gave Cresco Labs access to more than 575 dispensaries in the Golden State.
Cresco Labs continues to record strong financial results. During its second quarter that ended on June 30, the company reported revenue of $94.3 million, a 42% sequential growth and a 215% year-over-year growth. The company did record a net loss of $4.7 million, which was better than the $13.4 million net loss it recorded during the first quarter, but slightly worse than the $4 million loss reported during the year-ago period. Still, with the pot industry growing fast in the U.S., expect Cresco Labs' top and bottom lines to improve as the company continues to leverage its strong position and expand its market footprints. Investors who purchase shares of this cannabis stock today probably won't regret it in a few years.
2. Aphria is a top player in the Canadian cannabis market
Here are two quick reasons why Aphria (NASDAQ: APHA) is one of the top Canadian cannabis stocks. First, the company is one of the leaders in its domestic market. Second, Aphria has a strong presence in Germany, one of the top cannabis markets outside North America. Let's unpack both of these pros.
During its latest reported quarter ended May 31 -- Aphria continued to gain market share in Canada. Among legally licensed cannabis companies in Ontario (Canada's largest province by population), Aphria's market share grew to 16.1%, up from 13% during the prior quarter in terms of total sales. Over the past nine months, Aphria's market share has doubled in this province.
Image source: Getty Images.
Of note, much of the attention following Aphria's latest quarterly update focused on its bottom line. The company recorded a net loss of 98.8 million Canadian dollars. However, this massive loss was due to non-cash charges. Aphria incurred a CA$64 million impairment charge and another separate CA$27 million non-cash expense. The impairment charge was related to Aphria's international assets, which were harmed by the pandemic. The other non-cash expense stemmed from the revaluation of convertible debentures. Meanwhile, Aphria's total revenue for the quarter was CA$152.2 million, 18.4% higher than the prior-year quarter. The company has posted positive adjusted EBITDA in five consecutive quarters, a rare feat among its Canadian peers.
Second, Aphria's Germany-based subsidiary CC Pharma continues to have a major effect on its top line. The company's revenue from CC Pharma during its fourth quarter was CA$97.1 million, a slight decrease from the CA$99.2 million it recorded during the year-ago period.
Both of Aphria's most important markets -- Canada and Germany -- will continue to grow at a good clip in the coming years, and the company is well-positioned to post profits. In Canada, Aphria's efforts in the year-old cannabis derivatives market could bear fruits. The company is focusing on the vaping segment, in which it currrently holds the top sales position. These factors will help Aphria's revenue and earnings growth in the coming years, and in my view, the company should be able to outperform the market in 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 â it is coming.
Cannabis legalization is sweeping over North America â 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
Prosper Junior Bakiny owns shares of Aurora Cannabis Inc. 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. | Problems abound for popular pot stock Aurora Cannabis (NYSE: ACB). ACB data by YCharts 1. During the company's second-quarterearnings conference call CEO Charlie Bachtell said that "Illinois is set to issue its next 75 retail licenses, a catalyst to more consumer demand and increase opportunities for our wholesale business." | Problems abound for popular pot stock Aurora Cannabis (NYSE: ACB). ACB data by YCharts 1. During its latest reported quarter ended May 31 -- Aphria continued to gain market share in Canada. | Problems abound for popular pot stock Aurora Cannabis (NYSE: ACB). ACB data by YCharts 1. The company did record a net loss of $4.7 million, which was better than the $13.4 million net loss it recorded during the first quarter, but slightly worse than the $4 million loss reported during the year-ago period. | Problems abound for popular pot stock Aurora Cannabis (NYSE: ACB). ACB data by YCharts 1. Still, with the pot industry growing fast in the U.S., expect Cresco Labs' top and bottom lines to improve as the company continues to leverage its strong position and expand its market footprints. |
37229.0 | 2020-10-09 00:00:00 UTC | CANADA STOCKS - TSX rises 0.17% to 16,562.81 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-rises-0.17-to-16562.81-2020-10-09 | nan | nan | * The Toronto Stock Exchange's TSX rises 0.17 percent to 16,562.81
* Leading the index were Eldorado Gold Corp , up 10.1%, Silvercrest Metals Inc SIL.TO, up 9.1%, and Dundee Precious Metals Inc DPM.TO, higher by 9.1%.
* Lagging shares were NFI Group Inc NFI.TO, down 4.9%, Celestica Inc CLS.TO, down 4.5%, and Air Canada AC.TO, lower by 4.0%.
* On the TSX 91 issues rose and 123 fell as a 0.7-to-1 ratio favored decliners. There were 11 new highs and no new lows, with total volume of 209.6 million shares.
* The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Aurora Cannabis Inc ACB.TO and Teck Resources Ltd TECKb.TO.
* The TSX's energy group .SPTTEN fell 0.94 points, or 1.3%, while the financials sector .SPTTFS slipped 2.08 points, or 0.8%.
* West Texas Intermediate crude futures CLc1 fell 1.63%, or $0.67, to $40.52 a barrel. Brent crude LCOc1 fell 1.38%, or $0.6, to $42.74 O/R
* The TSX is off 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 Toronto-dominion Bank TD.TO, Aurora Cannabis Inc ACB.TO and Teck Resources Ltd TECKb.TO. * Lagging shares were NFI Group Inc NFI.TO, down 4.9%, Celestica Inc CLS.TO, down 4.5%, and Air Canada AC.TO, lower by 4.0%. * On the TSX 91 issues rose and 123 fell as a 0.7-to-1 ratio favored decliners. | * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Aurora Cannabis Inc ACB.TO and Teck Resources Ltd TECKb.TO. * The TSX's energy group .SPTTEN fell 0.94 points, or 1.3%, while the financials sector .SPTTFS slipped 2.08 points, or 0.8%. Brent crude LCOc1 fell 1.38%, or $0.6, to $42.74 O/R * The TSX is off 2.9% for the year. | * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Aurora Cannabis Inc ACB.TO and Teck Resources Ltd TECKb.TO. * The Toronto Stock Exchange's TSX rises 0.17 percent to 16,562.81 * Leading the index were Eldorado Gold Corp , up 10.1%, Silvercrest Metals Inc SIL.TO, up 9.1%, and Dundee Precious Metals Inc DPM.TO, higher by 9.1%. * The TSX's energy group .SPTTEN fell 0.94 points, or 1.3%, while the financials sector .SPTTFS slipped 2.08 points, or 0.8%. | * The most heavily traded shares by volume were Toronto-dominion Bank TD.TO, Aurora Cannabis Inc ACB.TO and Teck Resources Ltd TECKb.TO. * The Toronto Stock Exchange's TSX rises 0.17 percent to 16,562.81 * Leading the index were Eldorado Gold Corp , up 10.1%, Silvercrest Metals Inc SIL.TO, up 9.1%, and Dundee Precious Metals Inc DPM.TO, higher by 9.1%. * Lagging shares were NFI Group Inc NFI.TO, down 4.9%, Celestica Inc CLS.TO, down 4.5%, and Air Canada AC.TO, lower by 4.0%. |
37230.0 | 2020-10-09 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Mallinckrodt, Ebay, VivoPower International, Just Energy, Xilinx | ACB | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-mallinckrodt-ebay-vivopower-international-just-energy-xilinx | nan | nan | Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
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Wall Street's main indexes opened higher on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more federal fiscal aid and growing expectations of a Democratic victory in next month's presidential election. .N
At 10:45 ET, the Dow Jones Industrial Average .DJI was up 0.26% at 28,500.35. The S&P 500 .SPX was up 0.36% at 3,459.23 and the Nasdaq Composite .IXIC was up 0.89% at 11,522.699. The top three S&P 500 .PG.INX percentage gainers: ** Xilinx Inc , up 11.6% ** Teradyne Inc , up 4.1% ** Ebay Inc , up 4% The top three S&P 500 .PL.INX percentage losers: ** Vontier Corp , down 13.3% ** Apache Corp , down 3.6% ** Martin Marietta Materials Inc , down 3.1% The top three NYSE .PG.N percentage gainers: ** Just Energy Group , up 45.9% ** WisdomTree Emerging Markets ESG Fund , up 38.1% ** Independence Contract Drilling Inc , up 17% The top three NYSE .PL.N percentage losers: ** Universal Security Instruments Inc, down 13.5% ** Vontier Corp , down 13.3 % ** AgeX Therapeutics Inc , down 11 % The top three Nasdaq .PG.O percentage gainers: ** VivoPower International PLC , up 46.6% ** Precigen Inc , up 29.9% ** SpartanNash Co , up 24% The top three Nasdaq .PL.O percentage losers: ** ShiftPixy Inc , down 24.5% ** Intrusion Inc , down 16.1% ** GeoVax Labs Inc , down 12.3% ** Mallinckrodt PLC MNK.N: down 20.6%
BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** VivoPower International PLC VVPR.O: up 46.6%
BUZZ-Gains on finalizing EV maker acquisition ** Xilinx Inc XLNX.O: up 11.6% ** Advanced Micro Devices Inc AMD.O: down 3.1% BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD
** Coupa Software Inc COUP.O: up 4.1%
BUZZ-Deutsche Bank starts coverage of Coupa Software with 'buy' ** Watford Holdings Ltd WTRE.O: up 6.9%
BUZZ-Rises on $622 mln buyout deal from Arch Capital ** Westwater Resources Inc WWR.O: up 3.1%
BUZZ-Gains on battery products production plan ** XpresSpa Group Inc XSPA.O: up 1.3%
BUZZ-Up on construction of COVID-19 testing facility at Boston airport ** Eli Lilly & Co LLY.N: up 1.2%
BUZZ-Up after rival Pfizer's breast cancer drug fails late-stage study ** OPKO Health Inc OPK.O: up 3.2%
BUZZ-Up on launching COVID-19 testing program for NYC schools ** Rigel Pharmaceuticals Inc RIGL.O: down 1.5%
BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 1.4%
BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** General Electric Co GE.N: up 1.7%
BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Tilray Inc TLRY.O: up 1.5% BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Extreme Networks Inc EXTR.O: up 17.0%
BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 2.6%
BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 2.3%
BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 3.5%
BUZZ-Rises as co hikes quarterly revenue forecast
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.61%
Consumer Discretionary
.SPLRCD
up 0.82%
Consumer Staples
.SPLRCS
up 0.50%
Energy
.SPNY
down 1.27%
Financial
.SPSY
down 0.37%
Health
.SPXHC
up 0.57%
Industrial
.SPLRCI
up 0.28%
Information Technology
.SPLRCT
up 0.94%
Materials
.SPLRCM
up 0.46%
Real Estate
.SPLRCR
down 0.48%
Utilities
.SPLRCU
down 0.45%
(Compiled by Shradha Singh in Bangalore)
((Shradha.singh@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 Wall Street's main indexes opened higher on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more federal fiscal aid and growing expectations of a Democratic victory in next month's presidential election. The top three S&P 500 .PG.INX percentage gainers: ** Xilinx Inc , up 11.6% ** Teradyne Inc , up 4.1% ** Ebay Inc , up 4% The top three S&P 500 .PL.INX percentage losers: ** Vontier Corp , down 13.3% ** Apache Corp , down 3.6% ** Martin Marietta Materials Inc , down 3.1% The top three NYSE .PG.N percentage gainers: ** Just Energy Group , up 45.9% ** WisdomTree Emerging Markets ESG Fund , up 38.1% ** Independence Contract Drilling Inc , up 17% The top three NYSE .PL.N percentage losers: ** Universal Security Instruments Inc, down 13.5% ** Vontier Corp , down 13.3 % ** AgeX Therapeutics Inc , down 11 % The top three Nasdaq .PG.O percentage gainers: ** VivoPower International PLC , up 46.6% ** Precigen Inc , up 29.9% ** SpartanNash Co , up 24% The top three Nasdaq .PL.O percentage losers: ** ShiftPixy Inc , down 24.5% ** Intrusion Inc , down 16.1% ** GeoVax Labs Inc , down 12.3% ** Mallinckrodt PLC MNK.N: down 20.6% BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** VivoPower International PLC VVPR.O: up 46.6% BUZZ-Gains on finalizing EV maker acquisition ** Xilinx Inc XLNX.O: up 11.6% ** Advanced Micro Devices Inc AMD.O: down 3.1% BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** Coupa Software Inc COUP.O: up 4.1% BUZZ-Deutsche Bank starts coverage of Coupa Software with 'buy' ** Watford Holdings Ltd WTRE.O: up 6.9% BUZZ-Rises on $622 mln buyout deal from Arch Capital ** Westwater Resources Inc WWR.O: up 3.1% BUZZ-Gains on battery products production plan ** XpresSpa Group Inc XSPA.O: up 1.3% BUZZ-Up on construction of COVID-19 testing facility at Boston airport ** Eli Lilly & Co LLY.N: up 1.2% BUZZ-Up after rival Pfizer's breast cancer drug fails late-stage study ** OPKO Health Inc OPK.O: up 3.2% BUZZ-Up on launching COVID-19 testing program for NYC schools ** Rigel Pharmaceuticals Inc RIGL.O: down 1.5% BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 1.4% BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** General Electric Co GE.N: up 1.7% BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Tilray Inc TLRY.O: up 1.5% BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Extreme Networks Inc EXTR.O: up 17.0% BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 2.6% BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 2.3% BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 3.5% BUZZ-Rises as co hikes quarterly revenue forecast The 11 major S&P 500 sectors: Communication Services down 0.45% (Compiled by Shradha Singh in Bangalore) ((Shradha.singh@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 Wall Street's main indexes opened higher on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more federal fiscal aid and growing expectations of a Democratic victory in next month's presidential election. .N At 10:45 ET, the Dow Jones Industrial Average .DJI was up 0.26% at 28,500.35. The top three S&P 500 .PG.INX percentage gainers: ** Xilinx Inc , up 11.6% ** Teradyne Inc , up 4.1% ** Ebay Inc , up 4% The top three S&P 500 .PL.INX percentage losers: ** Vontier Corp , down 13.3% ** Apache Corp , down 3.6% ** Martin Marietta Materials Inc , down 3.1% The top three NYSE .PG.N percentage gainers: ** Just Energy Group , up 45.9% ** WisdomTree Emerging Markets ESG Fund , up 38.1% ** Independence Contract Drilling Inc , up 17% The top three NYSE .PL.N percentage losers: ** Universal Security Instruments Inc, down 13.5% ** Vontier Corp , down 13.3 % ** AgeX Therapeutics Inc , down 11 % The top three Nasdaq .PG.O percentage gainers: ** VivoPower International PLC , up 46.6% ** Precigen Inc , up 29.9% ** SpartanNash Co , up 24% The top three Nasdaq .PL.O percentage losers: ** ShiftPixy Inc , down 24.5% ** Intrusion Inc , down 16.1% ** GeoVax Labs Inc , down 12.3% ** Mallinckrodt PLC MNK.N: down 20.6% BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** VivoPower International PLC VVPR.O: up 46.6% BUZZ-Gains on finalizing EV maker acquisition ** Xilinx Inc XLNX.O: up 11.6% ** Advanced Micro Devices Inc AMD.O: down 3.1% BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** Coupa Software Inc COUP.O: up 4.1% BUZZ-Deutsche Bank starts coverage of Coupa Software with 'buy' ** Watford Holdings Ltd WTRE.O: up 6.9% BUZZ-Rises on $622 mln buyout deal from Arch Capital ** Westwater Resources Inc WWR.O: up 3.1% BUZZ-Gains on battery products production plan ** XpresSpa Group Inc XSPA.O: up 1.3% BUZZ-Up on construction of COVID-19 testing facility at Boston airport ** Eli Lilly & Co LLY.N: up 1.2% BUZZ-Up after rival Pfizer's breast cancer drug fails late-stage study ** OPKO Health Inc OPK.O: up 3.2% BUZZ-Up on launching COVID-19 testing program for NYC schools ** Rigel Pharmaceuticals Inc RIGL.O: down 1.5% BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 1.4% BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** General Electric Co GE.N: up 1.7% BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Tilray Inc TLRY.O: up 1.5% BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Extreme Networks Inc EXTR.O: up 17.0% BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 2.6% BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 2.3% BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 3.5% BUZZ-Rises as co hikes quarterly revenue forecast The 11 major S&P 500 sectors: Communication Services | 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 Wall Street's main indexes opened higher on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more federal fiscal aid and growing expectations of a Democratic victory in next month's presidential election. The top three S&P 500 .PG.INX percentage gainers: ** Xilinx Inc , up 11.6% ** Teradyne Inc , up 4.1% ** Ebay Inc , up 4% The top three S&P 500 .PL.INX percentage losers: ** Vontier Corp , down 13.3% ** Apache Corp , down 3.6% ** Martin Marietta Materials Inc , down 3.1% The top three NYSE .PG.N percentage gainers: ** Just Energy Group , up 45.9% ** WisdomTree Emerging Markets ESG Fund , up 38.1% ** Independence Contract Drilling Inc , up 17% The top three NYSE .PL.N percentage losers: ** Universal Security Instruments Inc, down 13.5% ** Vontier Corp , down 13.3 % ** AgeX Therapeutics Inc , down 11 % The top three Nasdaq .PG.O percentage gainers: ** VivoPower International PLC , up 46.6% ** Precigen Inc , up 29.9% ** SpartanNash Co , up 24% The top three Nasdaq .PL.O percentage losers: ** ShiftPixy Inc , down 24.5% ** Intrusion Inc , down 16.1% ** GeoVax Labs Inc , down 12.3% ** Mallinckrodt PLC MNK.N: down 20.6% BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** VivoPower International PLC VVPR.O: up 46.6% BUZZ-Gains on finalizing EV maker acquisition ** Xilinx Inc XLNX.O: up 11.6% ** Advanced Micro Devices Inc AMD.O: down 3.1% BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** Coupa Software Inc COUP.O: up 4.1% BUZZ-Deutsche Bank starts coverage of Coupa Software with 'buy' ** Watford Holdings Ltd WTRE.O: up 6.9% BUZZ-Rises on $622 mln buyout deal from Arch Capital ** Westwater Resources Inc WWR.O: up 3.1% BUZZ-Gains on battery products production plan ** XpresSpa Group Inc XSPA.O: up 1.3% BUZZ-Up on construction of COVID-19 testing facility at Boston airport ** Eli Lilly & Co LLY.N: up 1.2% BUZZ-Up after rival Pfizer's breast cancer drug fails late-stage study ** OPKO Health Inc OPK.O: up 3.2% BUZZ-Up on launching COVID-19 testing program for NYC schools ** Rigel Pharmaceuticals Inc RIGL.O: down 1.5% BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 1.4% BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** General Electric Co GE.N: up 1.7% BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Tilray Inc TLRY.O: up 1.5% BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Extreme Networks Inc EXTR.O: up 17.0% BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 2.6% BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 2.3% BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 3.5% BUZZ-Rises as co hikes quarterly revenue forecast The 11 major S&P 500 sectors: Communication Services up 0.61% 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 Wall Street's main indexes opened higher on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more federal fiscal aid and growing expectations of a Democratic victory in next month's presidential election. .N At 10:45 ET, the Dow Jones Industrial Average .DJI was up 0.26% at 28,500.35. The S&P 500 .SPX was up 0.36% at 3,459.23 and the Nasdaq Composite .IXIC was up 0.89% at 11,522.699. |
37231.0 | 2020-10-09 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-GE, Mallinckrodt, Just Energy, cannabis stocks, VivoPower International | ACB | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-ge-mallinckrodt-just-energy-cannabis-stocks-vivopower | 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
Wall Street's main indexes were set to rise on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more fiscal aid and growing expectations of a Democratic victory in next month's presidential election. .N
At 9:06 a.m. ET, Dow e-minis 1YMc1 were up 0.52% at 28,456. S&P 500 e-minis ESc1 were up 0.59% at 3,457.75, while Nasdaq 100 e-minis NQc1 were up 0.63% at 11,611.75. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 15.2% ** Pacific Drilling S.A. , up 14.5% ** Aurora Cannabis Inc , up 12.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Mallinckrodt Public Ltd , down 11% ** Maui Land & Pineapple Co Inc, down 8.1% ** Par Pacific Holdings Inc , down 6.9% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 71.8% ** Vivopower International Plc , up 42.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 27.9% ** Intrusion Inc , down 26.4% ** ShiftPixy Inc , down 24.8% ** General Electric Co GE.N: up 6.2% premarket BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Mallinckrodt PLC MNK.N: down 11.0% premarket BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** Tilray TLRY.O: up 7.6% premarket ** Aurora Cannabis ACB.N: up 12.0% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** VivoPower International PLC VVPR.O: up 42.1% premarket BUZZ-Gains on finalizing EV maker acquisition ** ON Semiconductor Corp ON.O: up 1.4% premarket BUZZ-Gains as brokerages raise price targets ** OPKO Health Inc OPK.O: up 2.0% premarket BUZZ-Up on launching COVID-19 testing program for NYC schools ** Alcoa Corp AA.N: up 1.2% premarket BUZZ-Gains on curtailment of San Ciprián aluminum smelter ** Cytosorbents Corp CTSO.O: up 4.4% premarket BUZZ-Up on $1.1 mln award to develop plasma filter ** Rigel Pharmaceuticals Inc RIGL.O: up 1.9% premarket BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 3.6% premarket BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** Advanced Micro Devices Inc AMD.O: down 3.2% premarket ** Xilinx Inc XLNX.O: up 16.2% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 11.7% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.5% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.5% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza ** Extreme Networks Inc EXTR.O: up 14.4% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 5.7% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 5.5% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 6.0% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** Norfolk Southern Corp NSC.N: up 1.0% premarket BUZZ-Norfolk Southern forecasts better-than-expected Q3 results
(Compiled by Shradha Singh in Bengaluru)
((Shradha.singh@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 15.2% ** Pacific Drilling S.A. , up 14.5% ** Aurora Cannabis Inc , up 12.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Mallinckrodt Public Ltd , down 11% ** Maui Land & Pineapple Co Inc, down 8.1% ** Par Pacific Holdings Inc , down 6.9% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 71.8% ** Vivopower International Plc , up 42.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 27.9% ** Intrusion Inc , down 26.4% ** ShiftPixy Inc , down 24.8% ** General Electric Co GE.N: up 6.2% premarket BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Mallinckrodt PLC MNK.N: down 11.0% premarket BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** Tilray TLRY.O: up 7.6% premarket ** Aurora Cannabis ACB.N: up 12.0% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** VivoPower International PLC VVPR.O: up 42.1% premarket BUZZ-Gains on finalizing EV maker acquisition ** ON Semiconductor Corp ON.O: up 1.4% premarket BUZZ-Gains as brokerages raise price targets ** OPKO Health Inc OPK.O: up 2.0% premarket BUZZ-Up on launching COVID-19 testing program for NYC schools ** Alcoa Corp AA.N: up 1.2% premarket BUZZ-Gains on curtailment of San Ciprián aluminum smelter ** Cytosorbents Corp CTSO.O: up 4.4% premarket BUZZ-Up on $1.1 mln award to develop plasma filter ** Rigel Pharmaceuticals Inc RIGL.O: up 1.9% premarket BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 3.6% premarket BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** Advanced Micro Devices Inc AMD.O: down 3.2% premarket ** Xilinx Inc XLNX.O: up 16.2% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 11.7% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.5% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.5% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza ** Extreme Networks Inc EXTR.O: up 14.4% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 5.7% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 5.5% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 6.0% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** Norfolk Southern Corp NSC.N: up 1.0% premarket BUZZ-Norfolk Southern forecasts better-than-expected Q3 results (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 Wall Street's main indexes were set to rise on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more fiscal aid and growing expectations of a Democratic victory in next month's presidential election. ET, Dow e-minis 1YMc1 were up 0.52% at 28,456. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 15.2% ** Pacific Drilling S.A. , up 14.5% ** Aurora Cannabis Inc , up 12.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Mallinckrodt Public Ltd , down 11% ** Maui Land & Pineapple Co Inc, down 8.1% ** Par Pacific Holdings Inc , down 6.9% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 71.8% ** Vivopower International Plc , up 42.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 27.9% ** Intrusion Inc , down 26.4% ** ShiftPixy Inc , down 24.8% ** General Electric Co GE.N: up 6.2% premarket BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Mallinckrodt PLC MNK.N: down 11.0% premarket BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** Tilray TLRY.O: up 7.6% premarket ** Aurora Cannabis ACB.N: up 12.0% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** VivoPower International PLC VVPR.O: up 42.1% premarket BUZZ-Gains on finalizing EV maker acquisition ** ON Semiconductor Corp ON.O: up 1.4% premarket BUZZ-Gains as brokerages raise price targets ** OPKO Health Inc OPK.O: up 2.0% premarket BUZZ-Up on launching COVID-19 testing program for NYC schools ** Alcoa Corp AA.N: up 1.2% premarket BUZZ-Gains on curtailment of San Ciprián aluminum smelter ** Cytosorbents Corp CTSO.O: up 4.4% premarket BUZZ-Up on $1.1 mln award to develop plasma filter ** Rigel Pharmaceuticals Inc RIGL.O: up 1.9% premarket BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 3.6% premarket BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** Advanced Micro Devices Inc AMD.O: down 3.2% premarket ** Xilinx Inc XLNX.O: up 16.2% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 11.7% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.5% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.5% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza ** Extreme Networks Inc EXTR.O: up 14.4% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 5.7% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 5.5% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 6.0% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** Norfolk Southern Corp NSC.N: up 1.0% premarket BUZZ-Norfolk Southern forecasts better-than-expected Q3 results (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 Wall Street's main indexes were set to rise on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more fiscal aid and growing expectations of a Democratic victory in next month's presidential election. ET, Dow e-minis 1YMc1 were up 0.52% at 28,456. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 15.2% ** Pacific Drilling S.A. , up 14.5% ** Aurora Cannabis Inc , up 12.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Mallinckrodt Public Ltd , down 11% ** Maui Land & Pineapple Co Inc, down 8.1% ** Par Pacific Holdings Inc , down 6.9% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 71.8% ** Vivopower International Plc , up 42.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 27.9% ** Intrusion Inc , down 26.4% ** ShiftPixy Inc , down 24.8% ** General Electric Co GE.N: up 6.2% premarket BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Mallinckrodt PLC MNK.N: down 11.0% premarket BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** Tilray TLRY.O: up 7.6% premarket ** Aurora Cannabis ACB.N: up 12.0% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** VivoPower International PLC VVPR.O: up 42.1% premarket BUZZ-Gains on finalizing EV maker acquisition ** ON Semiconductor Corp ON.O: up 1.4% premarket BUZZ-Gains as brokerages raise price targets ** OPKO Health Inc OPK.O: up 2.0% premarket BUZZ-Up on launching COVID-19 testing program for NYC schools ** Alcoa Corp AA.N: up 1.2% premarket BUZZ-Gains on curtailment of San Ciprián aluminum smelter ** Cytosorbents Corp CTSO.O: up 4.4% premarket BUZZ-Up on $1.1 mln award to develop plasma filter ** Rigel Pharmaceuticals Inc RIGL.O: up 1.9% premarket BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 3.6% premarket BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** Advanced Micro Devices Inc AMD.O: down 3.2% premarket ** Xilinx Inc XLNX.O: up 16.2% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 11.7% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.5% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.5% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza ** Extreme Networks Inc EXTR.O: up 14.4% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 5.7% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 5.5% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 6.0% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** Norfolk Southern Corp NSC.N: up 1.0% premarket BUZZ-Norfolk Southern forecasts better-than-expected Q3 results (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 Wall Street's main indexes were set to rise on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more fiscal aid and growing expectations of a Democratic victory in next month's presidential election. S&P 500 e-minis ESc1 were up 0.59% at 3,457.75, while Nasdaq 100 e-minis NQc1 were up 0.63% at 11,611.75. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 15.2% ** Pacific Drilling S.A. , up 14.5% ** Aurora Cannabis Inc , up 12.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Mallinckrodt Public Ltd , down 11% ** Maui Land & Pineapple Co Inc, down 8.1% ** Par Pacific Holdings Inc , down 6.9% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 71.8% ** Vivopower International Plc , up 42.1% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 27.9% ** Intrusion Inc , down 26.4% ** ShiftPixy Inc , down 24.8% ** General Electric Co GE.N: up 6.2% premarket BUZZ-General Electric jumps after GS reinstates 'buy' rating - thefly.com ** Mallinckrodt PLC MNK.N: down 11.0% premarket BUZZ-: Down after report says co's bankruptcy to give control over to bondholders ** Tilray TLRY.O: up 7.6% premarket ** Aurora Cannabis ACB.N: up 12.0% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** VivoPower International PLC VVPR.O: up 42.1% premarket BUZZ-Gains on finalizing EV maker acquisition ** ON Semiconductor Corp ON.O: up 1.4% premarket BUZZ-Gains as brokerages raise price targets ** OPKO Health Inc OPK.O: up 2.0% premarket BUZZ-Up on launching COVID-19 testing program for NYC schools ** Alcoa Corp AA.N: up 1.2% premarket BUZZ-Gains on curtailment of San Ciprián aluminum smelter ** Cytosorbents Corp CTSO.O: up 4.4% premarket BUZZ-Up on $1.1 mln award to develop plasma filter ** Rigel Pharmaceuticals Inc RIGL.O: up 1.9% premarket BUZZ-Rises as mid-stage trial of COVID-19 drug begins ** Axovant Gene Therapies Ltd AXGT.O: up 3.6% premarket BUZZ-Rises on FDA's rare pediatric disease status for gene therapy ** Advanced Micro Devices Inc AMD.O: down 3.2% premarket ** Xilinx Inc XLNX.O: up 16.2% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 11.7% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.5% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.5% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza ** Extreme Networks Inc EXTR.O: up 14.4% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 5.7% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 5.5% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 6.0% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** Norfolk Southern Corp NSC.N: up 1.0% premarket BUZZ-Norfolk Southern forecasts better-than-expected Q3 results (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 Wall Street's main indexes were set to rise on Friday, setting up the S&P 500 and the Dow for their second straight weekly gain on hopes of more fiscal aid and growing expectations of a Democratic victory in next month's presidential election. ET, Dow e-minis 1YMc1 were up 0.52% at 28,456. |
37232.0 | 2020-10-09 00:00:00 UTC | Pre-Market Most Active for Oct 9, 2020 : MVIS, GE, AMD, FCEL, GME, JE, NOK, ACB, XLNX, TLRY, AAPL, NIO | ACB | https://www.nasdaq.com/articles/pre-market-most-active-for-oct-9-2020-%3A-mvis-ge-amd-fcel-gme-je-nok-acb-xlnx-tlry-aapl-nio | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 47.75 to 11,598.69. The total Pre-Market volume is currently 23,249,592 shares traded.
The following are the most active stocks for the pre-market session:
Microvision, Inc. (MVIS) is +0.53 at $2.77, with 4,292,323 shares traded. As reported in the last short interest update the days to cover for MVIS is 7.146462; this calculation is based on the average trading volume of the stock.
General Electric Company (GE) is +0.42 at $7.07, with 2,811,274 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is -2.89 at $83.62, with 2,772,109 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
FuelCell Energy, Inc. (FCEL) is +0.22 at $2.60, with 2,316,079 shares traded. FCEL's current last sale is 115.56% of the target price of $2.25.
Gamestop Corporation (GME) is -0.7 at $12.79, with 1,498,265 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2021. The consensus EPS forecast is $-0.65. , following a 52-week high recorded in prior regular session.
Just Energy Group, Inc. (JE) is +1 at $6.60, with 1,142,751 shares traded. JE's current last sale is 6.67% of the target price of $99.009.
Nokia Corporation (NOK) is +0.1 at $4.05, with 974,037 shares traded. NOK's current last sale is 78.64% of the target price of $5.15.
Aurora Cannabis Inc. (ACB) is +0.45 at $5.55, with 753,369 shares traded. ACB's current last sale is 66.05% of the target price of $8.403.
Xilinx, Inc. (XLNX) is +18.36 at $124.35, with 665,999 shares traded. XLNX's current last sale is 126.89% of the target price of $98.
Tilray, Inc. (TLRY) is +0.28 at $6.43, with 610,244 shares traded. TLRY's current last sale is 86.31% of the target price of $7.45.
Apple Inc. (AAPL) is +0.3999 at $115.37, with 511,536 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $0.76. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NIO Inc. (NIO) is +0.34 at $21.78, with 435,980 shares traded. NIO's current last sale is 155.57% of the target price of $14.
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 +0.45 at $5.55, with 753,369 shares traded. ACB's current last sale is 66.05% of the target price of $8.403. As reported in the last short interest update the days to cover for MVIS is 7.146462; this calculation is based on the average trading volume of the stock. | Aurora Cannabis Inc. (ACB) is +0.45 at $5.55, with 753,369 shares traded. ACB's current last sale is 66.05% of the target price of $8.403. The total Pre-Market volume is currently 23,249,592 shares traded. | Aurora Cannabis Inc. (ACB) is +0.45 at $5.55, with 753,369 shares traded. ACB's current last sale is 66.05% of the target price of $8.403. The total Pre-Market volume is currently 23,249,592 shares traded. | ACB's current last sale is 66.05% of the target price of $8.403. Aurora Cannabis Inc. (ACB) is +0.45 at $5.55, with 753,369 shares traded. The following are the most active stocks for the pre-market session: |
37233.0 | 2020-10-09 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Cannabis cos, Mallinckrodt, GenMark Diagnostics, NXP Semiconductors | ACB | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-cannabis-cos-mallinckrodt-genmark-diagnostics-nxp | 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
U.S. stock index futures rose on Friday, setting the S&P 500 up for its second weekly gain in a row as hopes for more fiscal aid boosted optimism against the backdrop of political uncertainty ahead of the presidential election. .N
At 7:20 ET, Dow e-minis 1YMc1 were up 0.41% at 28,427. S&P 500 e-minis ESc1 were up 0.44% at 3,452.5, while Nasdaq 100 e-minis NQc1 were up 0.32% at 11,576.25. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 22.0% ** Pacific Drilling S.A. , up 17.9% ** Aurora Cannabis Inc , up 8.4% The top two NYSE percentage losers premarket .PRPL.NQ: ** Container Store Group Inc , down 9% ** Mallinckrodt Public Ltd , down 6.4% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 145.8% ** Medigus , up 61.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** Oxbridge Re Holdings Ltd , down 25.6% ** ShiftPixy Inc , down 20.9% ** Rave Restaurant Group Inc , down 11.7% ** Tilray TLRY.O: up 9.6% premarket ** Aurora Cannabis ACB.N: up 8.4% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Xilinx Inc XLNX.O: up 16.6% premarket ** Advanced Micro Devices Inc AMD.O: down 3.9% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 13.3% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** Extreme Networks Inc EXTR.O: up 17.3% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 9.3% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 6.2% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 4.9% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.4% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.2% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza
(Compiled by Shradha Singh in Bengaluru)
((Shradha.singh@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 22.0% ** Pacific Drilling S.A. , up 17.9% ** Aurora Cannabis Inc , up 8.4% The top two NYSE percentage losers premarket .PRPL.NQ: ** Container Store Group Inc , down 9% ** Mallinckrodt Public Ltd , down 6.4% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 145.8% ** Medigus , up 61.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** Oxbridge Re Holdings Ltd , down 25.6% ** ShiftPixy Inc , down 20.9% ** Rave Restaurant Group Inc , down 11.7% ** Tilray TLRY.O: up 9.6% premarket ** Aurora Cannabis ACB.N: up 8.4% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Xilinx Inc XLNX.O: up 16.6% premarket ** Advanced Micro Devices Inc AMD.O: down 3.9% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 13.3% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** Extreme Networks Inc EXTR.O: up 17.3% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 9.3% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 6.2% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 4.9% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.4% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.2% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 U.S. stock index futures rose on Friday, setting the S&P 500 up for its second weekly gain in a row as hopes for more fiscal aid boosted optimism against the backdrop of political uncertainty ahead of the presidential election. .N At 7:20 ET, Dow e-minis 1YMc1 were up 0.41% at 28,427. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 22.0% ** Pacific Drilling S.A. , up 17.9% ** Aurora Cannabis Inc , up 8.4% The top two NYSE percentage losers premarket .PRPL.NQ: ** Container Store Group Inc , down 9% ** Mallinckrodt Public Ltd , down 6.4% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 145.8% ** Medigus , up 61.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** Oxbridge Re Holdings Ltd , down 25.6% ** ShiftPixy Inc , down 20.9% ** Rave Restaurant Group Inc , down 11.7% ** Tilray TLRY.O: up 9.6% premarket ** Aurora Cannabis ACB.N: up 8.4% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Xilinx Inc XLNX.O: up 16.6% premarket ** Advanced Micro Devices Inc AMD.O: down 3.9% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 13.3% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** Extreme Networks Inc EXTR.O: up 17.3% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 9.3% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 6.2% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 4.9% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.4% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.2% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 U.S. stock index futures rose on Friday, setting the S&P 500 up for its second weekly gain in a row as hopes for more fiscal aid boosted optimism against the backdrop of political uncertainty ahead of the presidential election. S&P 500 e-minis ESc1 were up 0.44% at 3,452.5, while Nasdaq 100 e-minis NQc1 were up 0.32% at 11,576.25. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 22.0% ** Pacific Drilling S.A. , up 17.9% ** Aurora Cannabis Inc , up 8.4% The top two NYSE percentage losers premarket .PRPL.NQ: ** Container Store Group Inc , down 9% ** Mallinckrodt Public Ltd , down 6.4% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 145.8% ** Medigus , up 61.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** Oxbridge Re Holdings Ltd , down 25.6% ** ShiftPixy Inc , down 20.9% ** Rave Restaurant Group Inc , down 11.7% ** Tilray TLRY.O: up 9.6% premarket ** Aurora Cannabis ACB.N: up 8.4% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Xilinx Inc XLNX.O: up 16.6% premarket ** Advanced Micro Devices Inc AMD.O: down 3.9% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 13.3% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** Extreme Networks Inc EXTR.O: up 17.3% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 9.3% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 6.2% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 4.9% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.4% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.2% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 U.S. stock index futures rose on Friday, setting the S&P 500 up for its second weekly gain in a row as hopes for more fiscal aid boosted optimism against the backdrop of political uncertainty ahead of the presidential election. S&P 500 e-minis ESc1 were up 0.44% at 3,452.5, while Nasdaq 100 e-minis NQc1 were up 0.32% at 11,576.25. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Just Energy Group Inc , up 22.0% ** Pacific Drilling S.A. , up 17.9% ** Aurora Cannabis Inc , up 8.4% The top two NYSE percentage losers premarket .PRPL.NQ: ** Container Store Group Inc , down 9% ** Mallinckrodt Public Ltd , down 6.4% The top two Nasdaq percentage gainers premarket .PRPG.O: ** U.S. Well Services Inc , up 145.8% ** Medigus , up 61.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** Oxbridge Re Holdings Ltd , down 25.6% ** ShiftPixy Inc , down 20.9% ** Rave Restaurant Group Inc , down 11.7% ** Tilray TLRY.O: up 9.6% premarket ** Aurora Cannabis ACB.N: up 8.4% premarket BUZZ-Cannabis stocks surge further after VP nominee Harris vows to decriminalize pot ** Xilinx Inc XLNX.O: up 16.6% premarket ** Advanced Micro Devices Inc AMD.O: down 3.9% premarket BUZZ-Xilinx soars on report of $30 bln buyout deal from AMD ** GenMark Diagnostics Inc GNMK.O: up 13.3% premarket BUZZ-Rises after forecasting Q3 revenue to more than double ** Extreme Networks Inc EXTR.O: up 17.3% premarket BUZZ-Up after raising revenue forecast ** Selecta Biosciences Inc SELB.O: up 9.3% premarket BUZZ-Rises on research agreement with IGAN Biosciences ** HCA Healthcare Inc HCA.N: up 6.2% premarket BUZZ-Rises on upbeat quarterly revenue forecast ** NXP Semiconductors NV NXPI.O: up 4.9% premarket BUZZ-Rises as co hikes quarterly revenue forecast ** International Business Machines Corp IBM.N: up 0.3% premarket BUZZ-Street View: IBM's spin-off is adding by subtracting ** McDonald's Corp MCD.N: up 0.4% premarket BUZZ-Street View: McDonald's driving through with hot sales ** Domino's Pizza Inc DPZ.N: up 0.2% premarket BUZZ-Street View: Long-term opportunities intact for Domino's Pizza (Compiled by Shradha Singh in Bengaluru) ((Shradha.singh@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 U.S. stock index futures rose on Friday, setting the S&P 500 up for its second weekly gain in a row as hopes for more fiscal aid boosted optimism against the backdrop of political uncertainty ahead of the presidential election. .N At 7:20 ET, Dow e-minis 1YMc1 were up 0.41% at 28,427. |
37234.0 | 2020-10-08 00:00:00 UTC | Weed stocks surge as Kamala Harris vows to decriminalize pot in debate | ACB | https://www.nasdaq.com/articles/weed-stocks-surge-as-kamala-harris-vows-to-decriminalize-pot-in-debate-2020-10-08 | nan | nan | By Shariq Khan
Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said marijuana would be decriminalized at a federal level in the United States under a Biden administration.
During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the criminal records of people convicted of marijuana-related offences in the past.
Cannabis stock tracker MJ ETF MJ.P rose 5.5% to mark its best session since early June, while Tilray Inc TLRY.O jumped 19.2% on the Nasdaq. U.S.-listed shares of Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher.
Even though many U.S. states have legalized marijuana use, banks and other traditional financial institutions have so far largely refused to work with the industry as cannabis is still a classified substance at the federal level.
"Access to safe banking will transform the industry, freeing up capital markets for investment and reducing the risk of operating a cannabis business," said Keith Cich, co-founder of cannabis-related products manufacturer Sunderstorm Inc.
Regulatory issues have also restricted cash availability for companies in the nascent sector at a time when they are struggling with a lack of profitability due to high costs.
"From a business perspective, (decriminalization) will level the playing field by allowing companies to expense normal operational costs instead of being taxed on gross profit," said Sam Armenia, vice president at producer C21 Investments Inc CXXI.CD.
Harris, who has supported cannabis decriminalization even before Biden picked her as his running mate, is the lead sponsor of the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act of 2019, which sought to end federal prohibition of marijuana.
Judges, fracking and a fly: Six takeaways from the U.S. vice presidential debate
(Reporting by Shariq Khan in Bengaluru; Editing by Shinjini Ganguli and Devika Syamnath)
((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. | U.S.-listed shares of Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. By Shariq Khan Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said marijuana would be decriminalized at a federal level in the United States under a Biden administration. During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the criminal records of people convicted of marijuana-related offences in the past. | U.S.-listed shares of Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. By Shariq Khan Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said marijuana would be decriminalized at a federal level in the United States under a Biden administration. During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the criminal records of people convicted of marijuana-related offences in the past. | U.S.-listed shares of Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. By Shariq Khan Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said marijuana would be decriminalized at a federal level in the United States under a Biden administration. "Access to safe banking will transform the industry, freeing up capital markets for investment and reducing the risk of operating a cannabis business," said Keith Cich, co-founder of cannabis-related products manufacturer Sunderstorm Inc. Regulatory issues have also restricted cash availability for companies in the nascent sector at a time when they are struggling with a lack of profitability due to high costs. | U.S.-listed shares of Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. By Shariq Khan Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said marijuana would be decriminalized at a federal level in the United States under a Biden administration. Cannabis stock tracker MJ ETF MJ.P rose 5.5% to mark its best session since early June, while Tilray Inc TLRY.O jumped 19.2% on the Nasdaq. |
37235.0 | 2020-10-08 00:00:00 UTC | Stock Markets Rise as Marijuana Stocks Show New Signs of Life | ACB | https://www.nasdaq.com/articles/stock-markets-rise-as-marijuana-stocks-show-new-signs-of-life-2020-10-08 | nan | nan | The stock market's advance slowed down on Thursday, but it didn't stop entirely, and that was enough to make most market participants satisfied with the outcome of the trading session. The same general themes that we've seen lead the markets higher replayed themselves today, with hopes for better times ahead. The Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite were up around 0.5% to 1%.
Today's stock market
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
+0.43%
+122
S&P 500
+0.80%
+27
Nasdaq Composite
+0.50%
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Data source: Yahoo! Finance.
It's been a while since marijuana stocks were in their heyday. Yet the sector got a nice bump on Thursday, and some investors seem to have new hope that a big change in the industry could finally come in the not-too-distant future.
A big move higher for pot stocks
Stocks across the cannabis sector moved higher, and the best-known cannabis producers got especially nice gains. Tilray (NASDAQ: TLRY) led the group upward with an 18% advance. Canopy Growth (NYSE: CGC) followed with a 14% rise. Aurora Cannabis (NYSE: ACB) picked up 11%, while Cronos Group (NASDAQ: CRON) and Aphria (NASDAQ: APHA) each posted a 10% gain.
Image source: Getty Images.
The move higher in marijuana came in the aftermath of the U.S. vice presidential debate on Wednesday evening. In explaining the Democratic platform, Sen. Kamala Harris said that a Biden-Harris administration would decriminalize marijuana possession and seek to expunge the criminal records of those convicted of marijuana-related crimes.
That's something U.S. marijuana investors have been hoping to see for a long time. Currently, marijuana remains illegal at the national level, although federal authorities have generally avoided seeking to prosecute people in states that have approved marijuana for medicinal or recreational use.
A more affirmative declaration that pot use would no longer be a federal crime would have dramatic consequences. Perhaps most importantly, U.S. companies in the cannabis business would get greater access to capital markets, as stock exchanges have been reluctant to let domestic corporations list shares due to the criminal laws on the books.
One size doesn't fit all
Just about the whole cannabis industry moved higher in lockstep on Thursday. But that doesn't mean that there won't be winners and losers regardless of what happens to U.S. law at the federal level.
Many marijuana companies have struggled amid the coronavirus pandemic as they try to adapt to a much different operating environment. Aurora Cannabis, for instance, is still spending money on expenses at such a rapid pace that analysts following the stock worry that it might have little chance at profitability within the next three years. That's a much longer wait than most cannabis investors were expecting to have to endure.
Some stocks, however, have done well. Innovative Industrial Properties (NYSE: IIPR), for instance, has seen its cannabis-related real estate business thrive, and shares have moved higher even as most cannabis cultivation companies sagged.
Even among cultivators, there are some better-run companies. Trulieve Cannabis (OTC: TCNNF) has produced amazing share-price gains, leaving many of its peers in the dust. Trulieve's Florida-centered business model has been a blockbuster. It's also taking its success to other states.
Marijuana stocks have given investors a big roller-coaster ride in recent years, and it hasn't all been fun. Today at least, though, there's hope that things will get better for the cannabis industry.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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 owns shares of and recommends Innovative Industrial Properties. 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) picked up 11%, while Cronos Group (NASDAQ: CRON) and Aphria (NASDAQ: APHA) each posted a 10% gain. In explaining the Democratic platform, Sen. Kamala Harris said that a Biden-Harris administration would decriminalize marijuana possession and seek to expunge the criminal records of those convicted of marijuana-related crimes. Perhaps most importantly, U.S. companies in the cannabis business would get greater access to capital markets, as stock exchanges have been reluctant to let domestic corporations list shares due to the criminal laws on the books. | Aurora Cannabis (NYSE: ACB) picked up 11%, while Cronos Group (NASDAQ: CRON) and Aphria (NASDAQ: APHA) each posted a 10% gain. A big move higher for pot stocks Stocks across the cannabis sector moved higher, and the best-known cannabis producers got especially nice gains. Innovative Industrial Properties (NYSE: IIPR), for instance, has seen its cannabis-related real estate business thrive, and shares have moved higher even as most cannabis cultivation companies sagged. | Aurora Cannabis (NYSE: ACB) picked up 11%, while Cronos Group (NASDAQ: CRON) and Aphria (NASDAQ: APHA) each posted a 10% gain. A big move higher for pot stocks Stocks across the cannabis sector moved higher, and the best-known cannabis producers got especially nice gains. Innovative Industrial Properties (NYSE: IIPR), for instance, has seen its cannabis-related real estate business thrive, and shares have moved higher even as most cannabis cultivation companies sagged. | Aurora Cannabis (NYSE: ACB) picked up 11%, while Cronos Group (NASDAQ: CRON) and Aphria (NASDAQ: APHA) each posted a 10% gain. Today's stock market A big move higher for pot stocks Stocks across the cannabis sector moved higher, and the best-known cannabis producers got especially nice gains. |
37236.0 | 2020-10-08 00:00:00 UTC | Why Aurora Cannabis, Canopy Growth, and Other Marijuana Stocks Surged Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-canopy-growth-and-other-marijuana-stocks-surged-today-2020-10-08 | nan | nan | What happened
Shares of Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and a host of other cannabis stocks moved sharply higher on Thursday, following comments by Democratic vice presidential candidate Sen. Kamala Harris and Republican Gov. Phil Scott of Vermont. By the close of trading, Aurora and Canopy's stocks were up 10.6% and 13.6%, respectively.
So what
Sen. Harris said during the vice presidential debate on Wednesday that if elected, former vice president Joe Biden would decriminalize marijuana. That same day, Gov. Scott announced that he would allow the legalization of marijuana to move forward in his state.
Cannabis stocks caught fire on Thursday as investors grew more hopeful that legalization in the U.S. could come sooner than expected. Image source: Getty Images.
Harris's comments and Vermont's move to legalize weed highlight an increasingly favorable outlook toward cannabis among lawmakers. That bodes well for a marijuana industry that's been beset by a host of challenges in recent years.
Now what
Aurora and Canopy have seen their stock prices sink over the past year. Regulatory delays, slower-than-expected retail store openings, and a persistently strong black market have all weighed on the cannabis industry's growth. Aurora, once a shining star, was hit particularly hard as it struggled with production overcapacity, acquisition-related writedowns, and dwindling cash reserves.
However, progress toward legalization at the state and federal level in the U.S. is seen as a huge potential growth driver for the industry. Canopy has taken steps to position itself to move quickly should the U.S. federal government legalize marijuana, and the company could deliver handsome gains to investors if that were to occur in the next few years. Aurora is in a more difficult position due to its cash crunch, but legalization could be the lifeline it needs to get its business back on solid ground.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened Shares of Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and a host of other cannabis stocks moved sharply higher on Thursday, following comments by Democratic vice presidential candidate Sen. Kamala Harris and Republican Gov. Regulatory delays, slower-than-expected retail store openings, and a persistently strong black market have all weighed on the cannabis industry's growth. Aurora, once a shining star, was hit particularly hard as it struggled with production overcapacity, acquisition-related writedowns, and dwindling cash reserves. | What happened Shares of Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and a host of other cannabis stocks moved sharply higher on Thursday, following comments by Democratic vice presidential candidate Sen. Kamala Harris and Republican Gov. Harris's comments and Vermont's move to legalize weed highlight an increasingly favorable outlook toward cannabis among lawmakers. Canopy has taken steps to position itself to move quickly should the U.S. federal government legalize marijuana, and the company could deliver handsome gains to investors if that were to occur in the next few years. | What happened Shares of Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and a host of other cannabis stocks moved sharply higher on Thursday, following comments by Democratic vice presidential candidate Sen. Kamala Harris and Republican Gov. Canopy has taken steps to position itself to move quickly should the U.S. federal government legalize marijuana, and the company could deliver handsome gains to investors if that were to occur in the next few years. Cannabis legalization is sweeping over North America â 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. | What happened Shares of Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and a host of other cannabis stocks moved sharply higher on Thursday, following comments by Democratic vice presidential candidate Sen. Kamala Harris and Republican Gov. Canopy has taken steps to position itself to move quickly should the U.S. federal government legalize marijuana, and the company could deliver handsome gains to investors if that were to occur in the next few years. Cannabis legalization is sweeping over North America â 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. |
37237.0 | 2020-10-08 00:00:00 UTC | Why Cronos Has Too Many Red Flags That Should Scare Investors Away | ACB | https://www.nasdaq.com/articles/why-cronos-has-too-many-red-flags-that-should-scare-investors-away-2020-10-08 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
2020 is not proving very kind for Cronos (NYSE:CRON). The stock is down around by over 30% as the bubble in cannabis stock peaked and faded by March 2019. Back then Cronos Group stock traded at over $20. Altria’s (NYSE:MO) $1.8 billion investment in Cronos on Dec. 7, 2018, set off the bubble.
Source: Shutterstock
Today, Cronos has vastly worse prospects than anyone imagined. As shares head toward its 52-week low, why should investors consider investing in the company at all?
Cronos Group Stock Lacks Positive Catalyst
In the second quarter, Cronos reported revenue growth by 29% to $9.88 million. And despite that, its gross margin of negative 30% is a change in the wrong direction. Last year, gross margins were 53%. Still, the revenue of under $10 million for a company with a market capitalization of nearly $2 billion (a price-to-sales ratio of around 55 times) cannot support the stock price. Since August, shares collapsed from over $7.00 to $5.50. Its short float is now around 27%. As its prospects worsen, bears will profit.
9 New-on-Robinhood Stocks You Can Buy Now
The $1.1 billion in cash and cash equivalents may set a floor on the value of Cronos. Still, the cannabis firm is burning money every quarter. Without profits in the foreseeable future, the stock lacks a positive catalyst that will send shares higher.
Related Investments
Multi-State Operators in the United States offer investors a better path for cannabis investing. For example, Trulieve Cannabis (OTCMKTS:TCNNF) continued its organic growth in Florida. It opened its latest Florida dispensary at Fort Myers on Sept. 22. Curaleaf Holdings (OTCMKTS:CURLF) opened its second dispensary in Florida. Curaleaf is a vertically integrated cannabis operator in the U.S. The firm believes that the addressable market for legal U.S. cannabis is $33.9 billion by 2025.
Potential Catalysts
Cronos has very feel potential catalysts in the near-term. Still, its cannabis extracts growth shows promise. In Q2, sales rose 25% to $1.92 million. Conversely, cannabis flower sales fell by 7%. So, if management reverses the sales decline, the stock may stop falling.
On its conference call, Chief Executive officer Mike Gorenstein pointed to Israel as an exciting market. He said, “Israel is an exciting market. And while we did originally think of it as something that we be used as an export hub, we have been and continue to be pleasantly surprised by the rapid growth in the medical market.”
Despite the strong prospects, Israel has a smaller population than Canada. But if the company has a model to compete effectively on cost and price, Israel is a prospective market. For now, Cronos must focus on the Canadian market. It needs to spend Altria’s money to advertise its business and strengthen its product uniqueness through strategic research and development spending.
Significant capital expenditures on infrastructure will drag on results in the near-term. After it has its commercial fermentation infrastructure ready, it may ramp up production. Initial costs and operating margins are unfavorable. But as Cronos builds out its downstream processing, investors will have to watch for revenue growth.
Price Target and Your Takeaway
Wall Street analysts did not issue an updated rating on Cronos stock in almost a month. The average price target is $6.38, according to Tipranks. Given that competitors like Aurora Cannabis (NYSE:ACB) reported poor quarterly results, too, the sector is risky at the moment.
Cautious investors may want to wait until tax-loss selling ends before speculating on cannabis firms. Just as the 3D-printing bubble collapsed more than five years ago, the cannabis sector is in the early phases of the same drop. Disciplined investors should invest in a basket of stocks in the sector. If it turns out that Altria’s management influence on Cronos yields results, then Cronos is attractive from here.
Anyone else who is afraid of losing more in this sector should stay away from Cronos for now.
Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Why Cronos Has Too Many Red Flags That Should Scare Investors Away 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. | Given that competitors like Aurora Cannabis (NYSE:ACB) reported poor quarterly results, too, the sector is risky at the moment. Still, the revenue of under $10 million for a company with a market capitalization of nearly $2 billion (a price-to-sales ratio of around 55 times) cannot support the stock price. And while we did originally think of it as something that we be used as an export hub, we have been and continue to be pleasantly surprised by the rapid growth in the medical market.” Despite the strong prospects, Israel has a smaller population than Canada. | Given that competitors like Aurora Cannabis (NYSE:ACB) reported poor quarterly results, too, the sector is risky at the moment. Back then Cronos Group stock traded at over $20. Altria’s (NYSE:MO) $1.8 billion investment in Cronos on Dec. 7, 2018, set off the bubble. | Given that competitors like Aurora Cannabis (NYSE:ACB) reported poor quarterly results, too, the sector is risky at the moment. InvestorPlace - Stock Market News, Stock Advice & Trading Tips 2020 is not proving very kind for Cronos (NYSE:CRON). The stock is down around by over 30% as the bubble in cannabis stock peaked and faded by March 2019. | Given that competitors like Aurora Cannabis (NYSE:ACB) reported poor quarterly results, too, the sector is risky at the moment. Altria’s (NYSE:MO) $1.8 billion investment in Cronos on Dec. 7, 2018, set off the bubble. Cronos Group Stock Lacks Positive Catalyst In the second quarter, Cronos reported revenue growth by 29% to $9.88 million. |
37238.0 | 2020-10-08 00:00:00 UTC | 3 Stocks Robinhood Investors Love That Wall Street Hates | ACB | https://www.nasdaq.com/articles/3-stocks-robinhood-investors-love-that-wall-street-hates-2020-10-08 | nan | nan | Investing in 2020 has been an adventure. In a roughly six-month span, the widely followed S&P 500 lost over a third of its value, clawed everything back, and even gained. It was the steepest 30%-plus bear market decline we've ever seen, as well as the quickest rebound to new highs from a bear market bottom in history.
Besides giving long-term investors opportunities to scoop up great companies at bargain prices, this heightened volatility has also lured millennial and/or novice investors into equities. Online investing app Robinhood, which is best known for its commission-free trades and gifts of stock shares to new members, has signed up millions of people. The average age of these new short-term-focused traders is 31.
Unfortunately, not all of the companies that Robinhood investors flock to are Wall Street favorites. Wall Street hates the following three stocks that you can find among Robinhood's top 50 holdings.
Image source: Getty Images.
Tesla
It's no secret that millennial investors are enamored with electric vehicle (EV) manufacturers, and none is more popular than Tesla (NASDAQ: TSLA). Robinhood's investors are known to chase momentum stocks. Since Tesla was recently up over 1,000% on a trailing-12-month basis at one point, it fits the profile.
Yet Tesla isn't that well-liked on Wall Street. Keeping in mind that underperform and sell ratings are rare (often because investment banks don't want to burn bridges with the companies they're rating), September featured eight strong buy or buy ratings, 15 hold ratings, and 10 underperform or sell-equivalent ratings. Put another way, fewer than 1 in 4 Wall Street analysts views Tesla as a stock to buy right now.
Why the skepticism? One reason might be Tesla's lack of a full-year generally accepted accounting principles (GAAP) profit. Tesla has often leaned on EV credit to bolster its adjusted profitability, but hasn't been able to generate a full-year GAAP profit. That's a bit worrisome for a company valued at almost $400 billion.
Tesla's valuation is also a tough pill to swallow. Putting aside its triple-digit forward price-to-earnings ratio for a moment, Tesla is on track to deliver roughly 500,000 EVs in 2020. Comparatively, other major auto stocks are producing anywhere from 3 million to 8 million vehicles annually. Tesla's valuation is nearly equal to many of the largest traditional automakers put together, yet it remains unprofitable on a full-year GAAP basis.
Tesla is a stock I wouldn't buy because I also question the sustainability of its competitive advantages. Tesla has certainly benefited from its first-mover advantage in mass-produced EVs and its battery range. But it's not going to be the only show in town. General Motors, Ford, and pretty much every major automaker is tossing billions (or tens of billions) of dollars at EVs and autonomous vehicles in the coming years. I'd say Wall Street is right to question Tesla's valuation here.
Image source: Getty Images.
Aurora Cannabis
Millennial and novice investors are also gung-ho on marijuana stocks, with Canadian licensed producer Aurora Cannabis (NYSE: ACB) once holding the title of most-held stock on the entire Robinhood platform.
However, there's been a pretty clear bifurcation on favorability when it comes to North American pot stocks. Weed companies in the U.S. are thriving, while our neighbors to the north are struggling badly. That's meant little love for Aurora Cannabis. According to Robinhood, only 17% of analysts currently have a buy rating on Aurora, with 78% at hold and 6% at the equivalent of a sell rating.
It's certainly not hard to see why Wall Street is skeptical of the company. Since mid-March 2019, Aurora Cannabis' stock has lost more than 96% of its value. Once expected to lead North America in marijuana output, Aurora has closed five of its smaller cultivation farms, halted production on its two largest projects to conserve capital, and sold its greenhouse in Exeter, Ontario, which it never retrofit for cannabis production. Though Aurora is selling more cannabis of late, its value brands are dominating those sales, which means operating margins are hurting.
Though at least some of Canada's shortcomings can be blamed on regulatory issues, problems specific to Aurora deserve a wag of the finger from investors. The company has been issuing stock in droves to raise capital for funding acquisitions and day-to-day operations. In six years, Aurora's reverse-split-adjusted share count has ballooned from 1.3 million to 115.2 million, meaning it's constantly diluting existing shareholders.
Aurora also grossly overpaid for each and every one of its acquisitions since August 2016. In fiscal 2020, the company wrote down well over $2 billion Canadian in goodwill and intangible assets tied to these deals.
Aurora Cannabis has shown little to inspire confidence and should be avoided.
Image source: Getty Images.
ExxonMobil
Robinhood investors are also fans of Big Oil. Integrated oil and gas giant ExxonMobil (NYSE: XOM) is a top-50 holding on the platform that Wall Street doesn't exactly love.
In September, 25 Wall Street analysts had a rating issued on the company, with two calling it a strong buy, 18 labeling it a hold, and five designating the company an underperform or sell. That's less than 10% of Wall Street investment banks believing ExxonMobil was worth buying as of last month.
Why no love for ExxonMobil? In the short run, the company is contending with a historic plunge in crude oil demand tied to the coronavirus disease 2019 (COVID-19) pandemic. Although economic activity is rising, there's no way for any developed economy to fully step on the gas until there's a workable vaccine. This means continued pressure and potential oversupply on crude demand for the foreseeable future.
The other problem is the continued push toward renewable energy sources in developed countries. Make no mistake, oil isn't going away anytime soon -- but the developed world's reliance on fossil fuels may begin to wane, putting ExxonMobil's future growth prospects into doubt.
For what it's worth, ExxonMobil is the only one of these three hated stocks that I believe is worth buying. As an integrated company, it's able to lean on its downstream refining and petrochemical operations when crude prices weaken. It also has ample production opportunities overseas to meet developed and emerging market demand.
This is the first time in 35 years that ExxonMobil has been so cheap relative to its book value. In my view, this makes it a compelling buy at its current price.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Millennial and novice investors are also gung-ho on marijuana stocks, with Canadian licensed producer Aurora Cannabis (NYSE: ACB) once holding the title of most-held stock on the entire Robinhood platform. Online investing app Robinhood, which is best known for its commission-free trades and gifts of stock shares to new members, has signed up millions of people. In the short run, the company is contending with a historic plunge in crude oil demand tied to the coronavirus disease 2019 (COVID-19) pandemic. | Aurora Cannabis Millennial and novice investors are also gung-ho on marijuana stocks, with Canadian licensed producer Aurora Cannabis (NYSE: ACB) once holding the title of most-held stock on the entire Robinhood platform. Keeping in mind that underperform and sell ratings are rare (often because investment banks don't want to burn bridges with the companies they're rating), September featured eight strong buy or buy ratings, 15 hold ratings, and 10 underperform or sell-equivalent ratings. Integrated oil and gas giant ExxonMobil (NYSE: XOM) is a top-50 holding on the platform that Wall Street doesn't exactly love. | Aurora Cannabis Millennial and novice investors are also gung-ho on marijuana stocks, with Canadian licensed producer Aurora Cannabis (NYSE: ACB) once holding the title of most-held stock on the entire Robinhood platform. Keeping in mind that underperform and sell ratings are rare (often because investment banks don't want to burn bridges with the companies they're rating), September featured eight strong buy or buy ratings, 15 hold ratings, and 10 underperform or sell-equivalent ratings. Put another way, fewer than 1 in 4 Wall Street analysts views Tesla as a stock to buy right now. | Aurora Cannabis Millennial and novice investors are also gung-ho on marijuana stocks, with Canadian licensed producer Aurora Cannabis (NYSE: ACB) once holding the title of most-held stock on the entire Robinhood platform. Put another way, fewer than 1 in 4 Wall Street analysts views Tesla as a stock to buy right now. That's right -- they think these 10 stocks are even better buys. |
37239.0 | 2020-10-08 00:00:00 UTC | Weed stocks surge after Kamala Harris promises to decriminalize pot | ACB | https://www.nasdaq.com/articles/weed-stocks-surge-after-kamala-harris-promises-to-decriminalize-pot-2020-10-08 | nan | nan | Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said the Biden administration would decriminalize marijuana at the federal level in the United States if they were elected.
During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the records of those that have been convicted of marijuana-related offences in the past.
Cannabis stock tracker MJ ETF MJ.P rose 5.5% in the session, its best day since early June.
Shares of Tilray Inc TLRY.O rose 19.2% on the Nasdaq, while U.S.-listed Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher.
(Reporting by Shariq Khan in Bengaluru; Editing by Shinjini Ganguli)
((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. | Shares of Tilray Inc TLRY.O rose 19.2% on the Nasdaq, while U.S.-listed Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said the Biden administration would decriminalize marijuana at the federal level in the United States if they were elected. During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the records of those that have been convicted of marijuana-related offences in the past. | Shares of Tilray Inc TLRY.O rose 19.2% on the Nasdaq, while U.S.-listed Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said the Biden administration would decriminalize marijuana at the federal level in the United States if they were elected. During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the records of those that have been convicted of marijuana-related offences in the past. | Shares of Tilray Inc TLRY.O rose 19.2% on the Nasdaq, while U.S.-listed Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said the Biden administration would decriminalize marijuana at the federal level in the United States if they were elected. During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the records of those that have been convicted of marijuana-related offences in the past. | Shares of Tilray Inc TLRY.O rose 19.2% on the Nasdaq, while U.S.-listed Canopy Growth Corp WEED.TO, Aphria Inc APHA.TO and Aurora Cannabis Inc ACB.TO closed between 10% and 13% higher. Oct 8 (Reuters) - U.S.-listed shares of major cannabis producers surged on Thursday after Democratic vice president nominee Kamala Harris said the Biden administration would decriminalize marijuana at the federal level in the United States if they were elected. During Wednesday night's debate with Vice President Mike Pence, Harris said she and Democratic presidential nominee Joe Biden would also expunge the records of those that have been convicted of marijuana-related offences in the past. |
37240.0 | 2020-10-07 00:00:00 UTC | 7 Million More Reasons to Stay Away From Aurora Cannabis Stock | ACB | https://www.nasdaq.com/articles/7-million-more-reasons-to-stay-away-from-aurora-cannabis-stock-2020-10-07 | nan | nan | You probably won't have to think for very long to come up with at least a few reasons to avoid Aurora Cannabis (NYSE: ACB) stock. Just look at the company's latest quarterly release. There was another huge loss, a major write-off of goodwill, and -- scariest of all -- a revenue decline that's projected to continue into the next quarter.
That's three reasons to include on the list. Now, after a regulatory filing from the cannabis producer last week, there are over 7 million more reasons to avoid Aurora.Â
Image source: Getty Images.
Spreading the wealth
Aurora submitted its proxy circular to the U.S. Securities and Exchange Commission on Oct. 1. This proxy circular included information for shareholders in advance of the company's annual general meeting, which will be held virtually on Nov. 12, 2020. Arguably the most intriguing details revealed in the proxy circular related to how much money Aurora handed over to its executive team in its fiscal year 2020, which ended on June 30, 2020.
Former CEO Terry Booth received total share-based and option awards during fiscal 2020 of 1.95 million in Canadian dollars. Executive chairman and interim CEO Michael Singer received share-based and option awards totaling more than CA$2.3 million.
The Canadian cannabis producer didn't just line the pockets of the men who held the top spot. CFO Glen Ibbott raked in share-based and option awards of nearly CA$1.9 million. Co-founder and former President Steve Dobler received a little under CA$1 million. Chief Operating Officer Allan Cleiren pulled in nearly CA$1.4 million. Aurora gave Chief Legal Officer Jillian Swainson share-based and option rewards totaling close to CA$1.3 million.
In total, these six Aurora executives received roughly CA$9.75 million on top of their ample six-figure salaries. That equates to around $7.4 million in U.S. dollars. Each dollar represents a reason to not invest in Aurora, in my opinion.
What happened under their watch
Don't get me wrong: I think giving executives stock and options can effectively align the interests of a company's management and its shareholders. But in Aurora's case, it's obvious that the compensation packages failed to achieve this alignment.
Just consider what happened under the watch of the executives receiving so much money. Most importantly, Aurora's share price plunged 87% during the company's fiscal 2020. When management makes out like bandits while shareholders are left holding the bag, that's a big problem.
Of course, plenty of Canadian marijuana stocks experienced severe declines during this period. However, Aurora's collapse was worse than any of its major rivals' woes. Whose fault is that? I think you'd have to start with Aurora's leadership.Â
The reality is that Aurora wasn't managed very well. Canopy Growth and Cronos Group snagged major equity partners that strengthened their financial positions. Aurora deliberately avoided seeking an equity partner and now would have a very hard time landing a deal.
Several of its peers have been buying up other companies. Aurora, though, was practically in a league of its own when it came to the frenzy of acquisitions in recent years. Now the company is paying for its exuberance.Â
A structural problem
It seems absurd to pay top executives $7.4 million in bonuses when shareholders have lost nearly 90% of their investment, but it could have been even worse. Aurora's management team only made a little under half of what their short-term bonuses could have been in fiscal 2020. How did they even make that much? It comes down to the compensation system's structure.
A full 20% of management's short-term bonuses were tied to entering the U.S. market. Aurora's executives were able to receive another 6.67% of the total potential short-term bonus by holding onto a No. 2 position in the European medical cannabis market. Add another 10% to the total for contacting around 50% more European general practitioners than targeted. Other goals met included ranking No. 1 in Canadian medical cannabis market share and No. 1 in several key Canadian provinces' adult-use recreational marijuana markets. Â
My view is that over one-fourth of Aurora's short-term executive bonuses were related to goals that pretty much anyone could have achieved. I suspect that you or I could have figured out a way to enter the U.S. market and contacted a lot of European GPs.
The company stated that its fiscal 2021 bonus plan changes include "corporate performance objectives for EBITDA [earnings before interest, taxes, depreciation, and amortization], cash flow, international revenue, and employee engagement." It didn't, however, reveal how the individual goals would be weighted -- and that's critical.Â
Aurora could have given investors at least one reason to maybe consider buying the stock by truly aligning management's financial interests with shareholders' interests. It isn't clear that the company has done so.Â
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 â it is coming.
Cannabis legalization is sweeping over North America â 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. | You probably won't have to think for very long to come up with at least a few reasons to avoid Aurora Cannabis (NYSE: ACB) stock. Arguably the most intriguing details revealed in the proxy circular related to how much money Aurora handed over to its executive team in its fiscal year 2020, which ended on June 30, 2020. What happened under their watch Don't get me wrong: I think giving executives stock and options can effectively align the interests of a company's management and its shareholders. | You probably won't have to think for very long to come up with at least a few reasons to avoid Aurora Cannabis (NYSE: ACB) stock. Former CEO Terry Booth received total share-based and option awards during fiscal 2020 of 1.95 million in Canadian dollars. Aurora gave Chief Legal Officer Jillian Swainson share-based and option rewards totaling close to CA$1.3 million. | You probably won't have to think for very long to come up with at least a few reasons to avoid Aurora Cannabis (NYSE: ACB) stock. What happened under their watch Don't get me wrong: I think giving executives stock and options can effectively align the interests of a company's management and its shareholders. It didn't, however, reveal how the individual goals would be weighted -- and that's critical. Aurora could have given investors at least one reason to maybe consider buying the stock by truly aligning management's financial interests with shareholders' interests. | You probably won't have to think for very long to come up with at least a few reasons to avoid Aurora Cannabis (NYSE: ACB) stock. Each dollar represents a reason to not invest in Aurora, in my opinion. 2 position in the European medical cannabis market. |
37241.0 | 2020-10-06 00:00:00 UTC | Will Pot Stock Aurora Cannabis Ever Be Worth Buying? | ACB | https://www.nasdaq.com/articles/will-pot-stock-aurora-cannabis-ever-be-worth-buying-2020-10-06 | nan | nan | Though all eyes have been on the fast-growing tech sector for much of 2020, don't overlook the sleeping giant in North America: Cannabis.
After turning in just shy of $11 billion in global sales in 2018, Wall Street estimates suggest that worldwide legal weed revenue could hit $50 billion to $200 billion a decade from now. This wide range is reflective of growing support and legalizations for marijuana worldwide, as well as the fact that we just don't know the market value of what's being conducted behind the scenes every year.
What is a near-certainty is that North America will be the hotbed of this marijuana growth. That's why Alberta-based Aurora Cannabis (NYSE: ACB) quickly rose the ranks to become the most popular marijuana stock.
Image source: Getty Images.
This isn't what long-term investors signed up for
At roughly the midpoint of 2019, investors were of the impression that Aurora Cannabis was going to be a runaway leader in the pot industry. It had 15 cultivation facilities that, if fully operational, would have little trouble surpassing 650,000 kilos in annual output. The company also had access to roughly two dozen countries outside of its home market of Canada, and had recently brought billionaire activist investor Nelson Peltz onboard as a strategic advisor. Following Canopy Growth and Cronos Group landing billion-dollar equity investments, Peltz was expected to be the liaison that would help Aurora snag a brand-name partner.
What could go wrong? Apparently everything.
Aurora Cannabis has since permanently closed five of its smallest production facilities, sold the 1-million-square-foot Exeter facility, which was never retrofit for cannabis growing, and halted construction on two its largest projects (Aurora Sun in Alberta and Aurora Nordic 2 in Denmark). The company's peak output has been reduced by more than 400,000 kilos a year.
Meanwhile, Aurora Cannabis' international revenue has stagnated at less than $5 million Canadian per quarter, and Nelson Peltz recently announced his resignation as senior advisor. None of the selling points that investors believed they were getting when they first bought into Aurora Cannabis hold water anymore.
That begs the question: Will Aurora Cannabis ever be worth buying?
Image source: Getty Images.
Aurora Cannabis is finally facing some of its demons
Although I've been an Aurora bear for a very... long... time... I'm also encouraged by the company finally coming to terms with its evident shortcomings. Aside from closing smaller facilities with higher growing costs and reducing output to better align with prevailing market conditions in Canada, the company finally addressed its ugly balance sheet in the fiscal fourth quarter (ended in June).
As announced by the company last month, it took a fixed asset impairment charge of CA$86.5 million tied to the closure of its smaller production facilities, and adjusted the value of its inventory via a CA$135.1 million charge. More importantly, Aurora took a massive CA$1.6 billion writedown of goodwill and intangible assets to reflect that it grossly overpaid for its many acquisitions -- especially the MedReleaf deal.Â
Is Aurora Cannabis' balance sheet perfect? Not at all. But after writing down close to CA$3 billion in value during fiscal 2020, investors have more realistic figures to wrap their hands around.
Likewise, the company's backpedaling on costs in an effort to reduce cash burn is commendable and was sorely needed. Management expects positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the fiscal second quarter of 2021 (the quarter ended Dec. 31), albeit the goalposts have been moved a couple of times before with this figure.
Image source: Getty Images.
One day, Aurora may be worth buying -- but not anytime soon
But the question, again, is, will Aurora ever be worth buying?
I believe the answer is that it can be, but there's still a multiyear transformation that needs to take place before that can happen.
For example, one of the biggest drawbacks of owning Aurora Cannabis stock is that management has continually pummeled its shareholders with common stock issuances for the past few years. Aurora has used its common stock as collateral to fund every single acquisition since Aug. 2016. It's also issued stock via at-the-market offerings to raise capital and ensure the lights stay on. As a result, Aurora's outstanding share count has skyrocketed from 1.3 million in June 2014 to 115.2 million shares, as of June 2020. Mind you, these figures take into account the 1-for-12 reverse split enacted this past May that kept Aurora Cannabis from being delisted from the New York Stock Exchange.
Until there are clearly defined sources of capital or positive cash flow, Aurora isn't going to be worthy of your hard-earned money.
Additionally, this is a company that's really geared to succeed in international markets. Canada's relatively small population will constrain what the market is ultimately capable of in terms of annual sales. This means Aurora must be successful landing medical marijuana supply deals in overseas markets for investors to have any confidence in the company. That's not going to happen overnight.
Also, don't forget that longtime CEO Terry Booth stepped down earlier this calendar year, and now Nelson Peltz has resigned. Most folks (myself included) would view these departures as a step in the right direction given the many issues Aurora Cannabis has had. Then again, it means dealing with the unknowns of a new management team.
Aurora Cannabis could be worth buying someday, but "someday" is still probably many years off.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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. | That's why Alberta-based Aurora Cannabis (NYSE: ACB) quickly rose the ranks to become the most popular marijuana stock. The company also had access to roughly two dozen countries outside of its home market of Canada, and had recently brought billionaire activist investor Nelson Peltz onboard as a strategic advisor. Following Canopy Growth and Cronos Group landing billion-dollar equity investments, Peltz was expected to be the liaison that would help Aurora snag a brand-name partner. | That's why Alberta-based Aurora Cannabis (NYSE: ACB) quickly rose the ranks to become the most popular marijuana stock. Image source: Getty Images. Meanwhile, Aurora Cannabis' international revenue has stagnated at less than $5 million Canadian per quarter, and Nelson Peltz recently announced his resignation as senior advisor. | That's why Alberta-based Aurora Cannabis (NYSE: ACB) quickly rose the ranks to become the most popular marijuana stock. Aurora Cannabis has since permanently closed five of its smallest production facilities, sold the 1-million-square-foot Exeter facility, which was never retrofit for cannabis growing, and halted construction on two its largest projects (Aurora Sun in Alberta and Aurora Nordic 2 in Denmark). More importantly, Aurora took a massive CA$1.6 billion writedown of goodwill and intangible assets to reflect that it grossly overpaid for its many acquisitions -- especially the MedReleaf deal. Is Aurora Cannabis' balance sheet perfect? | That's why Alberta-based Aurora Cannabis (NYSE: ACB) quickly rose the ranks to become the most popular marijuana stock. Meanwhile, Aurora Cannabis' international revenue has stagnated at less than $5 million Canadian per quarter, and Nelson Peltz recently announced his resignation as senior advisor. I'm also encouraged by the company finally coming to terms with its evident shortcomings. |
37242.0 | 2020-10-06 00:00:00 UTC | If Aurora Cannabis Ever Turns Profitable, It Might Be Worth C$7, Says Analyst | ACB | https://www.nasdaq.com/articles/if-aurora-cannabis-ever-turns-profitable-it-might-be-worth-c%247-says-analyst-2020-10-06 | nan | nan | Canadian cannabis company Aurora Cannabis (ACB) has never earned an operating profit, nor generated any operating cash flow, either. Instead, for every year of its existence, its losses have mounted, and its cash burn rate increased, culminating in a $356 million operating loss ($2.4 billion, net) and $509 million in cash burnt over the last 12 months.
Nevertheless, hope that Aurora Cannabis might one day be profitable springs eternal, and BMO analyst Tamy Chen set out to figure out when that day might arrive, conducting "an analysis to assess when ACB could achieve sustainable profitability."
Her findings may surprise you.
Even assuming Aurora does not cut its selling, general, and administrative (SG&A) spending in any "meaningful" way, Chen believes that Aurora Cannabis might successfully sell enough marijuana over the next three years to eventually achieve "EBITDA" profitability (which we'd remind you, is not at all the same thing as GAAP net profitability).
Still, based on her belief that Aurora Cannabis is in the midst of an "aggressive recovery," Chen is willing to rate Aurora Cannabis stock at least Market Perform (i.e. Hold), and assigns the shares a C$7 price target (US$5.25). (To watch Chen's track record, click here)
Now let's find out why she couldn't reason her way to a "buy."
In its fiscal fourth quarter 2020 financial results released September 22, Aurora Cannabis reported a 5% decline in sales to CAD$72.1 million, with consumer cannabis sales growing 36% by volume, but falling 30% in price per gram, resulting in a 9% decline in revenue from that channel. (Gross margins, however, grew by 600 basis points to 35%). Medical cannabis sales increased 4%, and gross margins on these more profitable sales leapt 700 basis points to 67%. And as regards the cost-cutting Chen mentioned, SG&A spending was down 14%.
Despite the better gross margins, Chen called these numbers "disappointing" -- and indeed, Aurora Cannabis ended up reporting a CAD$34.6 million "adjusted EBITDA" tally for the quarter. The company's actual operating and net losses were apparently too embarrassing to admit in its earnings report, and the company did not bother mentioning them. (Aurora did say, however, that its net loss for the entire year was CAD$3.3 billion).
Now, Chen believes that under new management, Aurora Cannabis is "trying to shift from value to more premium" marijuana production, which could have the effect of goosing both sales and profit margins on those sales. " If ACB is successful in this shift," argues the analyst, sales volume probably will not grow at all, but Aurora's market share could stabilize in the "low-to-mid-teens," percentagewise, and revenues will grow at least modestly. In fiscal 2021 for example, Chen is projecting sales of CAD$265 million, rising about 9% to CAD$288 in fiscal 2022.
Both these numbers, however, are below Chen's previous predictions, as is the analyst's predicted "adjusted EBITDA" profit in fiscal 2022 (2021 will be a loss in any event) -- just CAD$3 million.
And net profits, you ask? Sadly, those could still be quite a ways away. Chen predicts a GAAP loss of CAD$1.31 per share in fiscal 2021 and CAD$0.83 in fiscal 2022 -- both numbers much improved from fiscal 2020's CAD$33.84 loss to be sure. But both numbers still negative just the same.
Wall Street backs Chen’s caution here, as TipRanks analytics reveal ACB as a Hold. Based on 14 analysts polled in the last 3 months, 2 rate ACB a Buy, while 12 say Hold. However, the 12-month average price target stands at US$8.08, marking a 79.5% upside from where the stock is currently trading. (See ACB stock analysis on TipRanks)
To find good ideas for 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 analysts. 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. | Canadian cannabis company Aurora Cannabis (ACB) has never earned an operating profit, nor generated any operating cash flow, either. Nevertheless, hope that Aurora Cannabis might one day be profitable springs eternal, and BMO analyst Tamy Chen set out to figure out when that day might arrive, conducting "an analysis to assess when ACB could achieve sustainable profitability." If ACB is successful in this shift," argues the analyst, sales volume probably will not grow at all, but Aurora's market share could stabilize in the "low-to-mid-teens," percentagewise, and revenues will grow at least modestly. | Canadian cannabis company Aurora Cannabis (ACB) has never earned an operating profit, nor generated any operating cash flow, either. Nevertheless, hope that Aurora Cannabis might one day be profitable springs eternal, and BMO analyst Tamy Chen set out to figure out when that day might arrive, conducting "an analysis to assess when ACB could achieve sustainable profitability." If ACB is successful in this shift," argues the analyst, sales volume probably will not grow at all, but Aurora's market share could stabilize in the "low-to-mid-teens," percentagewise, and revenues will grow at least modestly. | Canadian cannabis company Aurora Cannabis (ACB) has never earned an operating profit, nor generated any operating cash flow, either. Nevertheless, hope that Aurora Cannabis might one day be profitable springs eternal, and BMO analyst Tamy Chen set out to figure out when that day might arrive, conducting "an analysis to assess when ACB could achieve sustainable profitability." If ACB is successful in this shift," argues the analyst, sales volume probably will not grow at all, but Aurora's market share could stabilize in the "low-to-mid-teens," percentagewise, and revenues will grow at least modestly. | Canadian cannabis company Aurora Cannabis (ACB) has never earned an operating profit, nor generated any operating cash flow, either. Nevertheless, hope that Aurora Cannabis might one day be profitable springs eternal, and BMO analyst Tamy Chen set out to figure out when that day might arrive, conducting "an analysis to assess when ACB could achieve sustainable profitability." If ACB is successful in this shift," argues the analyst, sales volume probably will not grow at all, but Aurora's market share could stabilize in the "low-to-mid-teens," percentagewise, and revenues will grow at least modestly. |
37243.0 | 2020-10-06 00:00:00 UTC | Why Aurora Cannabis Stock Lost Half of Its Value in September | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-lost-half-of-its-value-in-september-2020-10-06 | nan | nan | What happened
Shares of Aurora Cannabis (NYSE: ACB), a top Canadian marijuana company, lost a jaw-dropping 50% of their value during the month of September, according to data provided by S&P Global Market Intelligence. The pot titan's market cap tanked for four interrelated reasons:
The company announced an eye-popping 1.8 billion Canadian dollar goodwill impairment charge during its fiscal 2020 fourth-quarter earnings report last month.
As part of this latest earnings report, Aurora also rolled out a rather dire financial forecast for the first quarter of fiscal 2021. Specifically, management expects net revenue to fall by at least 5.3% sequentially.Â
Early on in the month, Aurora announced that its CBD research partnership with the UFC, a mixed martial arts promotion company, was being terminated by mutual agreement.Â
Towards the close of the month, billionaire investor Nelson Peltz abruptly resigned as a senior advisor to the company.
Image Source: Getty Images.
So what
Aurora's growth story has come apart at the seams over the past two years. Its original business plan to become a one-stop-shop for all-things cannabis has simply failed to create the cost-saving synergies -- or the key competitive advantages -- touted by the former management team. The recently revealed poor financial results and loss of two key partnerships in a single month underscore this point. Aurora, in short, is clearly headed in the wrong direction.Â
Now what
Is Aurora's stock too cheap to pass up? The company is in the midst of a fundamental rethink right now. Newly minted CEO Miguel Martin may be able to turn things around, but there are more questions than answers at this critical point in the company's life cycle. Put simply, investors may want to watch this risky pot stock from the safety of the sidelines for the time being. Â
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 â it is coming.
Cannabis legalization is sweeping over North America â 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 Shares of Aurora Cannabis (NYSE: ACB), a top Canadian marijuana company, lost a jaw-dropping 50% of their value during the month of September, according to data provided by S&P Global Market Intelligence. The pot titan's market cap tanked for four interrelated reasons: The company announced an eye-popping 1.8 billion Canadian dollar goodwill impairment charge during its fiscal 2020 fourth-quarter earnings report last month. Its original business plan to become a one-stop-shop for all-things cannabis has simply failed to create the cost-saving synergies -- or the key competitive advantages -- touted by the former management team. | What happened Shares of Aurora Cannabis (NYSE: ACB), a top Canadian marijuana company, lost a jaw-dropping 50% of their value during the month of September, according to data provided by S&P Global Market Intelligence. As part of this latest earnings report, Aurora also rolled out a rather dire financial forecast for the first quarter of fiscal 2021. Specifically, management expects net revenue to fall by at least 5.3% sequentially. Early on in the month, Aurora announced that its CBD research partnership with the UFC, a mixed martial arts promotion company, was being terminated by mutual agreement. Towards the close of the month, billionaire investor Nelson Peltz abruptly resigned as a senior advisor to the company. | What happened Shares of Aurora Cannabis (NYSE: ACB), a top Canadian marijuana company, lost a jaw-dropping 50% of their value during the month of September, according to data provided by S&P Global Market Intelligence. Specifically, management expects net revenue to fall by at least 5.3% sequentially. Early on in the month, Aurora announced that its CBD research partnership with the UFC, a mixed martial arts promotion company, was being terminated by mutual agreement. Towards the close of the month, billionaire investor Nelson Peltz abruptly resigned as a senior advisor to the company. Put simply, investors may want to watch this risky pot stock from the safety of the sidelines for the time being.  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. | What happened Shares of Aurora Cannabis (NYSE: ACB), a top Canadian marijuana company, lost a jaw-dropping 50% of their value during the month of September, according to data provided by S&P Global Market Intelligence. So what Aurora's growth story has come apart at the seams over the past two years. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. |
37244.0 | 2020-10-05 00:00:00 UTC | Millennial Investors: Buy This, Not That | ACB | https://www.nasdaq.com/articles/millennial-investors%3A-buy-this-not-that-2020-10-05 | nan | nan | This has been a year that the investment community won't soon forget. We've witnessed incredible lows, with the benchmark S&P 500 losing over a third of its value in under five weeks, and monumental highs, with the index recouping all of its losses to hit fresh new highs in less than five months.
If history has taught us anything, it's that any sizable correction in the stock market is a buying opportunity, as long as you have a long-term mindset. That's because every stock market correction in history has eventually been erased by a bull market rally. The longer your time horizon, the bigger the potential gains. That's why it's so important for millennial investors to put their money to work in the stock market.
But there's a big difference between buying quality stocks and throwing darts. While I'm encouraged to see millennials investing in equities, I'm also worried about the quality of companies that young investors are putting into their portfolios. Rather than piling into a number of popular (yet awful) companies, I'd rather see millennials put their money to work in higher-quality alternative businesses.
Consider this an edition of "Buy this, not that" for millennial investors.
Image source: Getty Images.
Drug developers
Don't buy (Inovio Pharmaceuticals): If there's one thing millennial investors love, it's chasing the next big investment. In 2020, that's been coronavirus vaccine stocks. Though there's no question that big money could await the company or companies that develop a successful vaccine, history has shown that betting on Inovio Pharmaceuticals (NASDAQ: INO) isn't a smart choice.
Last week, Inovio announced that the company's phase 2/3 trial was being placed on partial clinical hold by the U.S. Food and Drug Administration (FDA). The press release from Inovio states that the FDA is seeking additional information about investigational vaccine INO-4800, as well as the proprietary Cellectra 2000 delivery device. With time of the essence, Inovio could fall further behind a number of other deep-pocketed vaccine developers while satisfying the FDA's concerns.Â
What's more, Inovio doesn't exactly have a successful track record of drug development in its four-decade history. Aside from a solitary phase 3 trial that's ongoing for precancerous cervical dysplasia, Inovio doesn't have a single approved therapeutic to show for its research.Â
Image source: Getty Images.
Buy this (Alexion Pharmaceuticals): Instead of buying into the highly competitive coronavirus vaccine space, I believe millennials would be much better served purchasing a high-quality drug developer like Alexion Pharmaceuticals (NASDAQ: ALXN).
The beauty of Alexion Pharmaceuticals is that it targets ultra-rare disease indications. Though it's a risky approach given how small the patient pools are for certain indications, it also means well-protected cash flow and no pushback from insurers on price if a therapy is approved by the FDA. In Alexion's case, it's been able to pivot blockbuster drug Soliris to multiple indications, and in many instances faces no competition at all.
Additionally, Alexion developed Ultomiris as a long-term replacement for Soliris. With Soliris potentially facing generic competition, Ultomiris steps in as a therapy that only needs to be administered every eight weeks, as opposed to every two with Soliris. This innovation means that Alexion has protected its cash cow indications for another decade to come.
Profitability is far from a given in the biotechnology space, but that's exactly what you'll get with Alexion.
Image source: Getty Images.
Marijuana stocks
Don't buy (Aurora Cannabis): I get it -- millennials love cannabis. This isn't really a surprise given that favorability toward legalization increases as age decreases. But millennial investors would be wise to keep their nose clean of Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB).
Aurora Cannabis was supposed to be the greatest thing since sliced bread in the legalized Canadian pot industry. Instead, it's been a nightmare, with shares of the company down more than 95% since mid-March of 2019. Aurora has closed five smaller cultivation facilities, sold a 1-million-square-foot greenhouse, and halted construction on two of its largest projects in an effort to preserve cash. Despite these efforts, the company's sales are going nowhere fast, with international revenue proving especially disappointing.
Furthermore, Aurora Cannabis wrote down close to $3 billion Canadian in fiscal 2020, with the company finally coming to terms with an ugly balance sheet. Aurora grossly overpaid for its more than one dozen acquisitions since August 2016, and has been repeatedly issuing shares in order to raise cash.
Put simply, Canada is not where you want to be chasing cannabis dollars as an investor at the moment.
Image source: Getty Images.
Buy this (Cresco Labs): If you want to partake in the fast-growing cannabis industry, Cresco Labs (OTC: CRLBF) is a smart way to do it.
Cresco Labs has two core operations in the U.S., both of which are growing lightning-fast. First of all, the company's wholesale operations should be a major sales driver in the years to come. Earlier this year, Cresco closed its all-share deal to acquire Origin House. Origin House is one of the few companies to hold a cannabis distribution license in California, the biggest pot market in the world. This deal gives Cresco access to more than 575 dispensaries in the Golden State.
Cresco Labs also has 19 operational dispensaries, roughly half of which are located in Illinois. The Land of Lincoln opened its doors to recreational sales on Jan. 1, 2020. Since it's a limited license state with the potential to hit $1 billion in annual sales by 2024, Cresco should have little trouble establishing a significant presence and generating the green for shareholders.
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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. | But millennial investors would be wise to keep their nose clean of Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB). The press release from Inovio states that the FDA is seeking additional information about investigational vaccine INO-4800, as well as the proprietary Cellectra 2000 delivery device. Though it's a risky approach given how small the patient pools are for certain indications, it also means well-protected cash flow and no pushback from insurers on price if a therapy is approved by the FDA. | But millennial investors would be wise to keep their nose clean of Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB). Drug developers Don't buy (Inovio Pharmaceuticals): If there's one thing millennial investors love, it's chasing the next big investment. Buy this (Alexion Pharmaceuticals): Instead of buying into the highly competitive coronavirus vaccine space, I believe millennials would be much better served purchasing a high-quality drug developer like Alexion Pharmaceuticals (NASDAQ: ALXN). | But millennial investors would be wise to keep their nose clean of Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB). Though there's no question that big money could await the company or companies that develop a successful vaccine, history has shown that betting on Inovio Pharmaceuticals (NASDAQ: INO) isn't a smart choice. Buy this (Alexion Pharmaceuticals): Instead of buying into the highly competitive coronavirus vaccine space, I believe millennials would be much better served purchasing a high-quality drug developer like Alexion Pharmaceuticals (NASDAQ: ALXN). | But millennial investors would be wise to keep their nose clean of Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB). Drug developers Don't buy (Inovio Pharmaceuticals): If there's one thing millennial investors love, it's chasing the next big investment. Buy this (Alexion Pharmaceuticals): Instead of buying into the highly competitive coronavirus vaccine space, I believe millennials would be much better served purchasing a high-quality drug developer like Alexion Pharmaceuticals (NASDAQ: ALXN). |
37245.0 | 2020-10-04 00:00:00 UTC | Could a Cannabis Investment Be on Coke's Radar? | ACB | https://www.nasdaq.com/articles/could-a-cannabis-investment-be-on-cokes-radar-2020-10-04 | nan | nan | Coca-Cola (NYSE: KO) is a stable but evolving company that has adapted to changing consumer trends over the years. While its most popular products are its sugary drinks, its business is much more robust, with more than 500 brands around the world. In addition to soft drinks, the company also sells coffee, tea, juice, water, and plant-based drinks.
One offering that could soon be on the horizon for Coca-Cola is cannabis. Although it may seem like a risky move for a fairly conservative company like Coca-Cola, here's why a move into that industry may be inevitable.
The company is following the consumer
Coca-Cola made a big announcement this year: It's going to be offering its first alcoholic beverage in decades, a hard seltzer. Through its Topo Chico brand, it plans to launch the new products next year, and the reason is likely no mystery: During the coronavirus pandemic, hard seltzer has been selling incredibly well. Data from analytics company Nielsen shows that hard seltzer sales quadrupled over a 15-week period ending June 13. It's an incredible, and welcome, opportunity for Coca-Cola to continue growing its business. In 2019, the company reported revenue of $37.3 billion -- down 19% from five years ago, when it generated $46 billion.
Image source: Getty Images.
"We're going to follow the consumer," Coca-Cola CEO James Quincey told CNBC in a recent interview when discussing the move into hard seltzer. And if that's the motivation, it may only be a matter of time before cannabis ends up on the company's radar as another significant growth opportunity. According to data from Grand View Research, the market for cannabis beverages could reach $2.8 billion by 2025, growing at an annual rate of 17.8%.
There were rumors in the past of Coca-Cola partnering with Aurora Cannabis
In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. Nothing ended up materializing from that, but multiple sources did report it, and it's possible Coca-Cola did do some kicking of the tires.
If so, it wouldn't have been the only beverage company to do so. Constellation Brands (NYSE: STZ) , the maker of Corona beer, Svedka vodka, and more, has jumped into the cannabis market with both feet, investing $4 billion in Canadian pot producer Canopy Growth since 2017. And management at Diageo, which makes Guinness, has also said in the past that they're keeping an eye on the cannabis industry.
Quincey downplayed this possibility in 2018, saying Coke had no plans to get into the cannabis market. But he didn't outright say that it would never happen. Whether it's with Aurora or another cannabis company, investors shouldn't rule out the possibility of something happening in the future involving Coca-Cola. That's especially true as consumer attitudes on cannabis continue to change; a total of 11 states have already legalized it for recreational use, and another four could do so this year, with New Jersey, Arizona, South Dakota, and Montana voters deciding on whether to permit adult-use pot in November.
What does this mean for investors?
It's only a matter of time before another big name like Coca-Cola or Diageo joins Constellation Brands with a foray into the cannabis industry. Businesses grow and thrive by evolving and keeping up with consumer trends, and cannabis is rising in popularity. This year's been a banner year for pot sales, with several states, including Illinois, California, Colorado, and Ohio, reporting record numbers.
As pressure mounts for Coca-Cola and other companies to expand their own sales, cannabis offers an opportunity to broaden product lines and reach more customers. And while the federally illegal status of cannabis in the U.S. could be a deterrent in the short term, the Canadian market is wide open and could serve as a great testing ground.
All that said, this doesn't mean you should immediately buy shares in Coca-Cola because sooner or later it might invest in the cannabis industry. Investing in pot stocks themselves may be a better strategy. A large company -- whether or not it's Coca-Cola specifically -- getting into cannabis could energize the entire industry. The Horizons Marijuana Life Sciences ETFÂ (OTC: HMLSF) has fallen 35% this year and is badly underperforming the S&P 500, which is up 4% over the same period. Even just one big name expressing interest in cannabis could get investors bullish on the industry again.
A pot stock like Aurora Cannabis that's fallen more than 80% in 2020 could potentially double, even triple, in value on news of a big company from another industry entering the market. Amid a pandemic, it may be awhile before that happens, but investing in pot stocks today could pay off in a few years, especially if marijuana legalization continues to progress in the U.S.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake â it is coming.
Cannabis legalization is sweeping over North America â 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 recommends Diageo. 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. | There were rumors in the past of Coca-Cola partnering with Aurora Cannabis In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. Through its Topo Chico brand, it plans to launch the new products next year, and the reason is likely no mystery: During the coronavirus pandemic, hard seltzer has been selling incredibly well. Constellation Brands (NYSE: STZ) , the maker of Corona beer, Svedka vodka, and more, has jumped into the cannabis market with both feet, investing $4 billion in Canadian pot producer Canopy Growth since 2017. | There were rumors in the past of Coca-Cola partnering with Aurora Cannabis In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. According to data from Grand View Research, the market for cannabis beverages could reach $2.8 billion by 2025, growing at an annual rate of 17.8%. Constellation Brands (NYSE: STZ) , the maker of Corona beer, Svedka vodka, and more, has jumped into the cannabis market with both feet, investing $4 billion in Canadian pot producer Canopy Growth since 2017. | There were rumors in the past of Coca-Cola partnering with Aurora Cannabis In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. Whether it's with Aurora or another cannabis company, investors shouldn't rule out the possibility of something happening in the future involving Coca-Cola. A pot stock like Aurora Cannabis that's fallen more than 80% in 2020 could potentially double, even triple, in value on news of a big company from another industry entering the market. | There were rumors in the past of Coca-Cola partnering with Aurora Cannabis In 2018, it appeared that a deal involving Coke and cannabis producer Aurora Cannabis (NYSE: ACB) was right around the corner, with the soft-drink giant looking to make cannabis beverages. Whether it's with Aurora or another cannabis company, investors shouldn't rule out the possibility of something happening in the future involving Coca-Cola. It's only a matter of time before another big name like Coca-Cola or Diageo joins Constellation Brands with a foray into the cannabis industry. |
37246.0 | 2020-10-04 00:00:00 UTC | These 3 Pot Stocks Have Lost Half Their Value in 2020. Can Any of Them Recover? | ACB | https://www.nasdaq.com/articles/these-3-pot-stocks-have-lost-half-their-value-in-2020.-can-any-of-them-recover-2020-10-04 | nan | nan | Buying on the dip is one thing, but buying on an all-out collapse is quite another. Still, that's a prospect that cannabis investors face today. Many pot stocks are struggling this year after an already tough 2019, and the coronavirus pandemic is making growth an afterthought for some companies who are just trying to survive the crisis.
These three pot stocks -- Harvest Health (OTC: HRVSF), Aurora Cannabis (NYSE: ACB), and HEXO (NYSE: HEXO) -- have all lost more than half of their value already this year. Let's take a look to see whether all hope is lost or if any of these companies can turn things around anytime soon.
1. Harvest Health
It's a bit surprising that Harvest Health is on this list, because the company isn't really doing all that badly. In its most recent quarterly results, released on Aug. 11 for the period ending June 30, the company's sales of $55.7 million were more than double its prior-year tally. In addition to that, the multistate operator raised its guidance. Previously, it was forecasting $200 million in sales for 2020, but now it's expecting its top line to come in between $215 million and $220 million.
Image source: Getty Images.
The company even showed improvements on its bottom line, with a net loss of $18.3 million in the second quarter that was 28% smaller than last year's $25.5 million loss. And for cannabis investors worried about cash, Harvest Health is in a good position there, too. For the six months ending June 30, it burned through $18.2 million, compared with $46.4 million during the same period a year ago. With cash and cash equivalents of $61.7 million as of the end of June, the company looks to be in good shape right now.
Overall, there aren't any glaring reasons that Harvest Health should be doing this badly -- it's down 67% year to date. What might get this stock moving is some positive news in November if its home state of Arizona votes to legalize recreational pot. South Dakota, Montana, and New Jersey will also decide on whether to legalize adult-use marijuana this year.
2. Aurora Cannabis
Unlike with Harvest Health, the reasons behind Aurora Cannabis's current struggles are anything but a mystery. That the stock has declined this year is no surprise; the only eyebrow-raiser might be just how badly it's done, losing 82%. And the Alberta, Canada-based pot producer is already coming off a tough 2019 during which its share price fell 56%.Â
The latest reason investors are bearish on the stock is yet another disappointing quarterly report. Aurora released its fourth-quarter earnings on Sept. 22, for the period ending June 30. Its revenue of 72.1 million Canadian dollars was down 27% from the previous year, when it reported sales of CA$98.9 million -- and that was already a disappointment, given that the company had missed the guidance it issued just a month earlier. The drop in sales wasn't even that bad when you consider that Aurora reported a net loss of CA$1.9 billion, although to be fair, this was largely due to impairment charges of CA$1.8 billion.
Aurora investors are likely wondering when the stock will hit the bottom. The company already did a 12:1 reverse split earlier this year to help keep its price up so that it can stay on the NYSE. If Aurora keeps falling, it may only be a matter of time before it needs to do another reverse split. Today, its shares are trading for less than $5 after nearing $10 as recently as the end of August.
For Aurora's stock to turn things around, there needs to be some earth-shattering news -- say, that it's signed on a big investor, or it has some exclusive deal that will generate tens of millions of dollars for the company.Â
3. HEXO
While it's performing the best of the three stocks listed here, HEXO is still down 59% this year. Trading below the $1 mark on the NYSE, it's where Aurora found itself earlier this year, potentially needing to do a reverse split to stay on the exchange.
The Canadian company last released its quarterly results on June 11 for the period ending April 30. In that third-quarter earnings report, HEXO's net sales of CA$22.1 million were up 70% year over year. But the company credited the increase primarily to its value brand, Original Stash, which meant that the significant jump in sales resulted in only a CA$2.4 million increase in gross margin -- still nowhere near enough to help get its financials to breakeven. Its CA$21.1 million operating loss was nearly 10 times the CA$2.2 million loss it reported in the same period last year.
One way HEXO can get investors excited about its stock is if the company reports some strong sales from its new cannabis beverages. The company has a joint venture, Truss Beverage, with Molson Coors Canada. The companies announced in August that they will be rolling out five brands over the coming months. If those new products can help deliver some strong results, that could get investors optimistic about the company's future.
Which stock is the best contrarian buy today?
Before deciding on which stock is in the best shape moving forward, let's take a quick recap of their performances thus far in 2020:
HMMJ data by YCharts
The biggest long shot today is definitely Aurora. The stock's so beaten up that a lot needs to go right for it to be a buy, as it's routinely let investors down. And between HEXO and Harvest, the edge has to go to the latter; as a U.S. pot stock, Harvest may be some exciting new markets to expand into very soon that could make it a hot buy.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake â it is coming.
Cannabis legalization is sweeping over North America â 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 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. | These three pot stocks -- Harvest Health (OTC: HRVSF), Aurora Cannabis (NYSE: ACB), and HEXO (NYSE: HEXO) -- have all lost more than half of their value already this year. And the Alberta, Canada-based pot producer is already coming off a tough 2019 during which its share price fell 56%. The latest reason investors are bearish on the stock is yet another disappointing quarterly report. For Aurora's stock to turn things around, there needs to be some earth-shattering news -- say, that it's signed on a big investor, or it has some exclusive deal that will generate tens of millions of dollars for the company. | These three pot stocks -- Harvest Health (OTC: HRVSF), Aurora Cannabis (NYSE: ACB), and HEXO (NYSE: HEXO) -- have all lost more than half of their value already this year. In its most recent quarterly results, released on Aug. 11 for the period ending June 30, the company's sales of $55.7 million were more than double its prior-year tally. In that third-quarter earnings report, HEXO's net sales of CA$22.1 million were up 70% year over year. | These three pot stocks -- Harvest Health (OTC: HRVSF), Aurora Cannabis (NYSE: ACB), and HEXO (NYSE: HEXO) -- have all lost more than half of their value already this year. The company even showed improvements on its bottom line, with a net loss of $18.3 million in the second quarter that was 28% smaller than last year's $25.5 million loss. Its revenue of 72.1 million Canadian dollars was down 27% from the previous year, when it reported sales of CA$98.9 million -- and that was already a disappointment, given that the company had missed the guidance it issued just a month earlier. | These three pot stocks -- Harvest Health (OTC: HRVSF), Aurora Cannabis (NYSE: ACB), and HEXO (NYSE: HEXO) -- have all lost more than half of their value already this year. Its revenue of 72.1 million Canadian dollars was down 27% from the previous year, when it reported sales of CA$98.9 million -- and that was already a disappointment, given that the company had missed the guidance it issued just a month earlier. One way HEXO can get investors excited about its stock is if the company reports some strong sales from its new cannabis beverages. |
37247.0 | 2020-10-03 00:00:00 UTC | Aurora Cannabis Stock: Love It or Leave It? | ACB | https://www.nasdaq.com/articles/aurora-cannabis-stock%3A-love-it-or-leave-it-2020-10-03 | nan | nan | Canadian marijuana company Aurora Cannabis (NYSE: ACB) had a dreadful 2019; its stock lost 56% of its value over the year, compared with a 36% decline in the industry benchmark Horizons Marijuana Life Sciences ETF. External headwinds in Canada, along with Aurora's own haphazard acquisitions, dragged down revenue and made profit challenging, while expenses kept piling up. All these factors led to its decline, and hopes of the company recovering anytime soon were minimal.
Hence, its third-quarter results at the end of March came as a pleasant surprise. The company reported a surge in revenue -- to be precise, a year-over-year jump of 35% to 75.5 million Canadian dollars. Aurora gave a sneak peek into its fourth-quarter results on Sept. 8 when it discussed some impairment charges and a decline in revenue. But investors hoped to get some good news from the actual results, and the stock was up 16% in anticipation on Sept. 22. When the company released results the same day after market close, though, the picture wasn't rosy. Let's see whether there was anything to like in Aurora's Q4 results.Â
Image source: Getty Images.
Revenue results were worrisome
As management stated in the preliminary results, net revenue fell within the estimated range, hitting CA$72.1 million, but declined year-over-year from CA$94.6 million. Sequentially, revenue also dropped 5% from the third quarter of 2020.
The company saw a 9% decline in consumer cannabis revenue from the prior quarter, to CA$35.3 million. However, medical cannabis revenue jumped 4% sequentially to CA$32.2 million, thanks to the company's Canadian medical business and revenue from Europe.
Though Aurora didn't discuss losses in the preliminary results, investors weren't surprised to see a Q4 net loss of CA$3.3 billion from continuing operations. In the year-ago quarter, the marijuana company recorded a net loss of just CA$300 million. Aurora hasn't hit profitability yet as its revenue growth hasn't been sufficient to turn to profits, while expenses have been rising.
Its guidance for revenue for Q1 2021 only includes cannabis sales, as it divested most of its non-core subsidiaries in fiscal 2020 as part of its "facility rationalization" plan announced in June. Aurora now expects cannabis net revenue to be in the range of CA$60 million to CA$64 million in Q1, lower than its Q4 numbers. According to the company's press release, the gross margin could be in the range of 46% to 50%, while selling, general and administrative costs (SG&A), including research and development, could be lower -- say, in the $40 million range.
Was it all bad news?
It appears the company's efforts to reduce SG&A expenses through its business-transformation plan is working. Some good news in the Q4 results included the decline in SG&A expenses to CA$67.7 million from CA$73 million in the year-ago quarter. This was the probable reason for the negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) results this quarter.
Aurora reported an adjusted EBITDA loss of CA$34.6 million, an improvement over Q3's loss of CA$50.4 million. However, this doesn't guarantee the company will be able to achieve management's target of positive EBITDA by the second quarter of fiscal 2021. Meeting that goal will depend entirely on how its cannabis products drive revenue in the coming months and whether it continues to reduce its expenses. (Investors should hope for continuing positive EBITDA, as it's a clue to management's skill at handling its operating expenses.)
The pot producer also managed to reduce its capital expenditures to CA$16.4 million from a whopping CA$74 million in Q3; that's a good sign. And it was able to improve its financial flexibility through credit-facility amendments. Its "facility rationalizations" and cost-reduction plans could help it lower costs by up to CA$10 million per quarter starting in the second half of fiscal 2021. But it has a long road ahead before it actually makes a profit.
Image source: Getty Images.
Should you hold on or give up?
As I've previously mentioned, investors shouldn't buy Aurora unless and until management provides some update on its cannabis-derivatives products, which we expected -- but largely did not receive -- in its Q4 results. CEO Miguel Martin acknowledged that the company has dropped "from its top position in [the] Canadian consumer" market, and a return to that status would represent a huge opportunity for Aurora now that cannabis derivatives are legal. (Canada legalized derivatives -- vapes, edibles, concentrates, beverages, and more -- in October 2019.)
Martin stated that Aurora will now reposition the Canadian consumer business by focusing on emerging-growth formats that include vapes, pre-rolls, concentrates, and edibles. The company disclosed no further information on any product launch. Instead, Aurora's revenue guidance looks bleak for the first quarter of fiscal 2021.
This forecast is understandable; a company that's shutting down facilities and cutting costs to reduce expenses can't be spending money on new product launches to juice revenue growth. Then again, revenue growth is the only way for Aurora to regain its position in the cannabis space. Peers like Canopy Growth (NYSE: CGC) have already launched a variety of cannabis-infused chocolates, beverages, and vape products; Canopy's offerings debuted in May and have already brought the company a sizable amount of revenue. Meanwhile, Aphria (NASDAQ: APHA) also has a number of innovative cannabis derivatives in its pipeline.Â
So far this year, shares of Aurora have sunk by 80%, worse than the 35% decline in the Horizons Marijuana Life Sciences ETF. Canopy's and Aphria's stock prices have also slumped by 33% and 19%, respectively, over the same period.
ACB data by YCharts
Investors anticipating a ray of hope were utterly disappointed with Aurora's quarterly results. For the time being, there isn't much to love about this marijuana stock, as dark clouds still loom over it. This is one to avoid.Â
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 â it is coming.
Cannabis legalization is sweeping over North America â 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. | Canadian marijuana company Aurora Cannabis (NYSE: ACB) had a dreadful 2019; its stock lost 56% of its value over the year, compared with a 36% decline in the industry benchmark Horizons Marijuana Life Sciences ETF. ACB data by YCharts Investors anticipating a ray of hope were utterly disappointed with Aurora's quarterly results. CEO Miguel Martin acknowledged that the company has dropped "from its top position in [the] Canadian consumer" market, and a return to that status would represent a huge opportunity for Aurora now that cannabis derivatives are legal. | Canadian marijuana company Aurora Cannabis (NYSE: ACB) had a dreadful 2019; its stock lost 56% of its value over the year, compared with a 36% decline in the industry benchmark Horizons Marijuana Life Sciences ETF. ACB data by YCharts Investors anticipating a ray of hope were utterly disappointed with Aurora's quarterly results. However, medical cannabis revenue jumped 4% sequentially to CA$32.2 million, thanks to the company's Canadian medical business and revenue from Europe. | Canadian marijuana company Aurora Cannabis (NYSE: ACB) had a dreadful 2019; its stock lost 56% of its value over the year, compared with a 36% decline in the industry benchmark Horizons Marijuana Life Sciences ETF. ACB data by YCharts Investors anticipating a ray of hope were utterly disappointed with Aurora's quarterly results. Revenue results were worrisome As management stated in the preliminary results, net revenue fell within the estimated range, hitting CA$72.1 million, but declined year-over-year from CA$94.6 million. | Canadian marijuana company Aurora Cannabis (NYSE: ACB) had a dreadful 2019; its stock lost 56% of its value over the year, compared with a 36% decline in the industry benchmark Horizons Marijuana Life Sciences ETF. ACB data by YCharts Investors anticipating a ray of hope were utterly disappointed with Aurora's quarterly results. The company saw a 9% decline in consumer cannabis revenue from the prior quarter, to CA$35.3 million. |
37248.0 | 2020-10-03 00:00:00 UTC | Should You Buy or Sell Aurora Cannabis Now? | ACB | https://www.nasdaq.com/articles/should-you-buy-or-sell-aurora-cannabis-now-2020-10-03 | nan | nan | Aurora Cannabis (NYSE: ACB) released its fourth-quarter results on Sept. 22 and they were yet another disappointment, with the company reporting a loss of 1.9 billion Canadian dollars for the period as impairment charges of CA$1.8 billion weighed heavily on its financials. Net revenue of CA$72.1 million also came in lower than the CA$75.5 million it reported in the third quarter. Aurora's share price is, unsurprisingly, down on the results, and is now trading around its 52-week lows.
While it would be easy to dismiss the stock as a bad buy given another poor quarterly performance, let's take a look at some of the positives and see whether it is worth taking a chance on Aurora today at its reduced price, or if it's a stock you're better off selling once and for all.
Can Aurora reverse its fortunes?
One of the reasons investors may be a bit optimistic about the company's future is that it has a new CEO in place. In September, Aurora announced that Miguel Martin would be taking over as CEO from Michael Singer. Singer, who is executive chairman, assumed the position after the resignation of Terry Booth in February. Martin has 25 years of experience in consumer packaged goods. He came over from Reliva when Aurora completed the acquisition of that hemp business on May 28.
With Martin in his new role, Aurora is already looking at a new focus: premium products, including vapes, which should help improve margins and overall profitability. The company's value brand, Daily Special, has been successful in generating sales, but Martin noted that given an increase in competition with other value products in the market, "it just becomes a diminishing return."
Image source: Getty Images.
Martin noted that in Q4, 62% of Aurora's net consumer revenue was thanks to Daily Special -- a significant change from the previous quarter, when that percentage was only 35%.
But despite the value brand accounting for more sales and Aurora reporting a dreadful loss in Q4, the company did make progress in its adjusted EBTIDA, or earnings before income, taxes, depreciation, and amortization. Aurora's adjusted EBITDA loss in Q4 totaled CA$34.6 million, compared with the CA$50.4 million loss it incurred in the third quarter. If the company can squeeze out more gross profit from a focus on premium products, there's potential there for the Alberta-based company to get even closer to reaching its goal.
As recently as June, management said Aurora was on track to achieve positive adjusted EBITDA by the first quarter of fiscal 2021. But by September, it had pushed that goal out to the second quarter of fiscal 2021.
Will reaching positive adjusted EBITDA be enough to win back investors?
It's been a rough year for Aurora: Revenue in Q4 last year was CA$98.9 million, 37% higher than in this past period. And while a positive adjusted EBITDA number would definitely get investors excited that the company is making progress, let's not forget this is primarily a growth stock. Investors buy pot stocks typically because they offer attractive growth prospects, and that's not possible without stronger sales numbers along the way.
Martin stated that Q1 2021 will be the first quarter in which Aurora is completely divested of its noncore subsidiaries, meaning its revenue will now exclusively be made up of net cannabis revenue. In Q4, net cannabis revenue was only CA$67.5 million, and Martin's not expecting a strong start to the first quarter of fiscal 2021, projecting sales to come in between CA$60 million and CA$64 million.
As sales continue to fall, Aurora will have a hard time getting investors on board and reaching a positive adjusted EBITDA.Â
Aurora still isn't a buy
Investors need to be careful about buying shares of companies in the middle of transitions. There's never any guarantee how they'll go, except that typically, they're not smooth rides. And that means there could be some tough times still ahead for Aurora investors. The worst, unfortunately, may still be to come. Even if the company hits breakeven with its adjusted EBITDA, that might not be enough to get investors excited, especially if its sales continue to struggle.
In the past year, shares of Aurora have fallen more than 90% while the Horizons Marijuana Life Sciences ETFÂ (OTC: HMLSF) is down a more modest 52% -- and even that pales next to the S&P 500's positive 13% returns.
Anytime you're investing in a stock that's cratered by more than 90%, you should have a very compelling reason to do so. Right now, there just isn't one for Aurora, which is why the stock is still a hard sell today, especially with many other great cannabis companies to invest in.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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. | Aurora Cannabis (NYSE: ACB) released its fourth-quarter results on Sept. 22 and they were yet another disappointment, with the company reporting a loss of 1.9 billion Canadian dollars for the period as impairment charges of CA$1.8 billion weighed heavily on its financials. The company's value brand, Daily Special, has been successful in generating sales, but Martin noted that given an increase in competition with other value products in the market, "it just becomes a diminishing return." But despite the value brand accounting for more sales and Aurora reporting a dreadful loss in Q4, the company did make progress in its adjusted EBTIDA, or earnings before income, taxes, depreciation, and amortization. | Aurora Cannabis (NYSE: ACB) released its fourth-quarter results on Sept. 22 and they were yet another disappointment, with the company reporting a loss of 1.9 billion Canadian dollars for the period as impairment charges of CA$1.8 billion weighed heavily on its financials. Aurora's adjusted EBITDA loss in Q4 totaled CA$34.6 million, compared with the CA$50.4 million loss it incurred in the third quarter. And while a positive adjusted EBITDA number would definitely get investors excited that the company is making progress, let's not forget this is primarily a growth stock. | Aurora Cannabis (NYSE: ACB) released its fourth-quarter results on Sept. 22 and they were yet another disappointment, with the company reporting a loss of 1.9 billion Canadian dollars for the period as impairment charges of CA$1.8 billion weighed heavily on its financials. Aurora's adjusted EBITDA loss in Q4 totaled CA$34.6 million, compared with the CA$50.4 million loss it incurred in the third quarter. In Q4, net cannabis revenue was only CA$67.5 million, and Martin's not expecting a strong start to the first quarter of fiscal 2021, projecting sales to come in between CA$60 million and CA$64 million. | Aurora Cannabis (NYSE: ACB) released its fourth-quarter results on Sept. 22 and they were yet another disappointment, with the company reporting a loss of 1.9 billion Canadian dollars for the period as impairment charges of CA$1.8 billion weighed heavily on its financials. It's been a rough year for Aurora: Revenue in Q4 last year was CA$98.9 million, 37% higher than in this past period. And while a positive adjusted EBITDA number would definitely get investors excited that the company is making progress, let's not forget this is primarily a growth stock. |
37249.0 | 2020-10-01 00:00:00 UTC | 3 of the Best Stocks to Trade for 2021 | ACB | https://www.nasdaq.com/articles/3-of-the-best-stocks-to-trade-for-2021-2020-10-01 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One thing I don’t like to do is chase trends. It is a pet peeve of mine to buy what the masses are buying. I found that more often than not we’d be doomed to trail. At best the results would be mediocre. The best outcomes usually come from diligent homework and looking ahead where others are not yet focusing. Ideally, we’d want to set a trend not follow it. Today, we discuss trading three stocks for 2021.
The point is to find opportunities now that are still hidden from the others. That gives us a head start because we would be ahead of the chase. Ideally we’d want the herd to catch on later and follow us into it. At which time the profits will materialize in droves. Taking such chances also may result in big whiffs so proper risk management is important.
I consider today’s three theses somewhat speculative. Therefore, conviction should be moderate. While the logic is viable, there is no immediate tangible trigger to go long here. Besides, logical or not, nobody accused Wall Street of being perfectly wise. They are an unpredictable bunch, especially in 2020. Since I’d rather be safe than sorry, I have to temper my enthusiasm and leave room for error. A good first step is to keep the size at levels that don’t break my bank or my heart.
7 Marijuana Stocks to Buy That Will Survive 2020
The three stocks for 2021 are in the news now and I bet they will continue to be so for months. They are:
Nikola (NASDAQ:NKLA)
Tesla (NASDAQ:TSLA)
CGC (NYSE:CGC)
Best Stocks for 2021: Nikola (NKLA)
Source: Charts by TradingView
Nikola was a special purpose acquisition company (SPAC) that burst onto the scene with massive fanfare. The rally was immense and violent. In a manner of days, the stock rallied 500%. Investors bought it with panic and FOMO, leaving a trail of bloodied bears. When I first saw the company spokesperson Trevor Milton in an interview I disliked him a bunch. My first impression was that he was more proud of his stock than his company. Then I thought I was the odd man out, so I overcame my skepticism.
I guess I should have stuck to my initial gut. He has now left the company and with a potential misconduct case against him too boot. Needless to say the stock experienced excessive hate and plummeted 70% in under two weeks. Today, my contention is that this is an opportunity to get long NKLA stock into next year.
It goes against the grain of what the so-called experts are opining in the media. Hate has hit extreme levels, so the theory here is that we have run out of incremental sellers. If that’s true, then the upside potential becomes the more likely outcome. General Motors (NYSE:GM) has recently announced an alliance with Nikola. The new CEO kept the hopes alive about that deal and others. Confirmation or updates on those fronts, especially the GM one, are potential catalysts.
From near $20 per share the target could be a double within six months. Where it bounced this week was a level that was the absolute perfect top in March. It again served as the perfect base for the mega-breakout in May. This was not a coincidence. Machines are doing most of the trading and they know which pivot levels matter most. As long as the stock is above $16 per share, then my thesis is alive. The options market allows for cheap ways of putting this strategy in action with limited risk. This is definitely a “buy and hope” trade, and every portfolio needs some of those.
Tesla (TSLA)
Source: Charts by TradingView
Although Tesla is closely related to Nikola, it is most definitely not in the same boat. Elon Musk has turned his ship around beyond most expectations. My bet today is that it will continue to raise eyebrows next year and in a good way. The situation there went from life support last year to extreme success now. The crazy part is that TSLA stock powered through the novel coronavirus pandemic. Somehow Tesla went from inches from collapse to having one of the best balance sheets on Wall Street.
The basis of the bullish thesis is that Tesla is not a car company. The fans argue that it’s either an energy or a technology company. If that’s true, then the company is overdue in starting to talk up the other points. So far all the headlines are almost entirely about car production, targets or deadlines. Therein lies the bulk of the opportunity I want to capture.
The 10 Best Mutual Funds for Your 401k
There is a real possibility that by early next year they start broaching topics on their other income streams. When that happens, the bear case takes a beating. Because finally there would be proof of the concept that it’s not just a car company. I bet that a large number of skeptics would opt to cover their positions. This year, TSLA stock has astonished investors and I expect this to continue into next year. If I am wrong, then it continues to plunk along the status quo. Being up 780% in 12 months is a good place to be. That’s an investment worth holding regardless of my thesis.
Canopy Growth (CGC)
Source: Charts by TradingView
A few years ago, pot stocks were all the rage, not EVs. Canopy Growth was the face of that bunch much like Tesla is to EVs now. Mainstream investors gobbled up the cannabis stocks like there was no tomorrow. Now it’s a different story as CGC stock is down 40% in a year and it’s a sector-wide scenario. After having extreme hopium in the beginning stages in 2018, sentiment swung to the other extreme. Pot stocks hardly get any attention in the news unless it’s disasters.
It’s almost the same thesis as NKLA … CGC stock is so bad that it’s good. But there are also technical reasons to think that. CGC has become the proxy trade on cannabis stocks. It has the best balance sheet, so it is fit to navigate the many extra hurdles that the industry has. This is still an illegal activity in many U.S. states. Yet the stocks are still trying to rally. It recently fell hard on a sympathy move with Aurora Cannabis (NYSE:ACB). If left alone, Canopy Growth will find footing and recover.
Technically, $15 per share was important to hold, so now it’s a challenge on the way back up. Regardless, the evidence on the chart suggests that CGC stock has held reasonably well through the pandemic. It has had two bounces since the lows, so I bet it holds one more time. If I’m correct, then the bulls have the opportunity to swing higher into year end. My thesis today is not only to capture that move, but also to speculate on next year’s headlines. The election might open the door for the legalization talks at the Federal level. That rhetoric alone would be a massive catalyst for the whole sector. Sometimes a little bit of hopium is what a stock needs.
In addition to our arguments today, we have to pay attention to the macroeconomic conditions. Reports show that we are in a recovery from the pandemic crash. Everything points in the right direction, but then there are the uncertainties that the U.S. elections brings. The first presidential debate this week demonstrated it will not be a quiet one. In fact, we probably won’t know the outcome of the contest until weeks after the fact. Equity investors do not like such potential trepidation, so they will be quick to sell on headlines. Luckily the companies I picked today as being among the best stocks for 2021 are speculative; therefore, they will not necessarily follow the market-wide direction.
On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nicolas Chahine is the managing director of SellSpreads.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It recently fell hard on a sympathy move with Aurora Cannabis (NYSE:ACB). The 10 Best Mutual Funds for Your 401k There is a real possibility that by early next year they start broaching topics on their other income streams. Canopy Growth (CGC) Source: Charts by TradingView A few years ago, pot stocks were all the rage, not EVs. | It recently fell hard on a sympathy move with Aurora Cannabis (NYSE:ACB). They are: Nikola (NASDAQ:NKLA) Tesla (NASDAQ:TSLA) Best Stocks for 2021: Nikola (NKLA) Source: Charts by TradingView Nikola was a special purpose acquisition company (SPAC) that burst onto the scene with massive fanfare. | It recently fell hard on a sympathy move with Aurora Cannabis (NYSE:ACB). InvestorPlace - Stock Market News, Stock Advice & Trading Tips One thing I don’t like to do is chase trends. 7 Marijuana Stocks to Buy That Will Survive 2020 The three stocks for 2021 are in the news now and I bet they will continue to be so for months. | It recently fell hard on a sympathy move with Aurora Cannabis (NYSE:ACB). 7 Marijuana Stocks to Buy That Will Survive 2020 The three stocks for 2021 are in the news now and I bet they will continue to be so for months. Today, my contention is that this is an opportunity to get long NKLA stock into next year. |
37250.0 | 2020-10-01 00:00:00 UTC | Here's 1 Area Where Aurora Cannabis Absolutely Trounces Canopy Growth | ACB | https://www.nasdaq.com/articles/heres-1-area-where-aurora-cannabis-absolutely-trounces-canopy-growth-2020-10-01 | nan | nan | Aurora Cannabis (NYSE: ACB) is a shadow of its former self. The cannabis producer has slashed its global operations. It's no longer the leader in the Canadian adult-use recreational cannabis market, and its hopes of landing a major partner from outside the cannabis industry have fizzled.
For most of the last five years, Aurora ranked behind only Canopy Growth (NYSE: CGC) among Canadian cannabis producers based on market cap. The company has now fallen to fifth place, with its share price plunging more than 90% over the last 12 months. Meanwhile, Canopy remains at the top. But there's at least one area where Aurora Cannabis outshines Canopy Growth.
Image source: Getty Images.
No contest
As a result of the shellacking that its stock has taken going back to March 2019, Aurora's valuation looks more attractive than Canopy's.Â
Neither company is profitable yet, so we can't use earnings-based valuation metrics. But we can compare the price-to-sales (P/S) multiples of the two marijuana stocks. Aurora's shares currently trade at around 2.4 times sales. That's only a fraction of Canopy's P/S multiple of 16.
In the most recent quarter, Aurora generated total net revenue that was nearly two-thirds the level of Canopy's net revenue. However, Aurora's market cap is a little over one-tenth of the size of Canopy's market cap. That represents a major disconnect between the valuations of the two companies.Â
Aurora is also much closer to delivering positive earnings before interest, taxes, depreciation, and amortization (EBITDA) than Canopy is. This gives it a more attractive valuation using the enterprise value-to-EBITDA metric. Aurora's EV/EBITDA multiple is a negative 0.27 compared to Canopy's EV/EBITDA of negative 3.22.
Cheap for a reason
Any way you look at it, Aurora Cannabis is a much cheaper stock than Canopy Growth is. Unfortunately, Aurora is cheap for a reason -- or rather, for several reasons.
Aurora continues to post huge losses each quarter. The company's write-off of 1.8 billion in Canadian dollars in goodwill impairment charges in the fourth quarter didn't reassure investors in the least. Even without that major impairment charge, though, Aurora would still have lost money in its fiscal 2020 fourth quarter ended June 30, 2020.
Perhaps the most worrisome thing in Aurora's Q4 results, however, was that the company expects its sales to decline in the next quarter. The low end of Aurora's net revenue guidance for fiscal 2021 Q1 reflects a double-digit percentage drop from the previous quarter.
Aurora's loans top CA$200 million, with another CA$327 million in convertible debentures. As of June 30, the cannabis producer's cash stockpile totaled a little over CA$162 million. Aurora's financial position and expectations of a revenue decline aren't going to give any investor warm, fuzzy feelings about the company's future.Â
An advantage Aurora would gladly lose
Aurora needs a dramatic improvement in its financial performance to turn things around. One good start would be for Aurora to generate positive adjusted EBITDA. The company now expects to achieve that goal by fiscal 2021 Q2, a quarter later than its earlier projection.Â
Another must is for Aurora to return to strong revenue growth. New CEO Miguel Martin has stated that he plans to "reposition" Aurora in the Canadian recreational cannabis market. Perhaps his efforts will pay off.Â
In the meantime, Aurora Cannabis seems likely to continue trouncing Canopy Growth in the area of valuation. But it's an advantage that the company would be more than glad to lose.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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. | Aurora Cannabis (NYSE: ACB) is a shadow of its former self. For most of the last five years, Aurora ranked behind only Canopy Growth (NYSE: CGC) among Canadian cannabis producers based on market cap. That represents a major disconnect between the valuations of the two companies. Aurora is also much closer to delivering positive earnings before interest, taxes, depreciation, and amortization (EBITDA) than Canopy is. | Aurora Cannabis (NYSE: ACB) is a shadow of its former self. For most of the last five years, Aurora ranked behind only Canopy Growth (NYSE: CGC) among Canadian cannabis producers based on market cap. In the most recent quarter, Aurora generated total net revenue that was nearly two-thirds the level of Canopy's net revenue. | Aurora Cannabis (NYSE: ACB) is a shadow of its former self. For most of the last five years, Aurora ranked behind only Canopy Growth (NYSE: CGC) among Canadian cannabis producers based on market cap. Cheap for a reason Any way you look at it, Aurora Cannabis is a much cheaper stock than Canopy Growth is. | Aurora Cannabis (NYSE: ACB) is a shadow of its former self. For most of the last five years, Aurora ranked behind only Canopy Growth (NYSE: CGC) among Canadian cannabis producers based on market cap. No contest As a result of the shellacking that its stock has taken going back to March 2019, Aurora's valuation looks more attractive than Canopy's. Neither company is profitable yet, so we can't use earnings-based valuation metrics. |
37251.0 | 2020-09-30 00:00:00 UTC | 3 Pot Stocks to Avoid Like the Plague in October | ACB | https://www.nasdaq.com/articles/3-pot-stocks-to-avoid-like-the-plague-in-october-2020-09-30 | nan | nan | Over the past 18 months, the North American marijuana industry has struggled, and a number of popular pot stocks have been pulverized. Every next-big-thing investment contends with growing pains, and that's exactly what marijuana stocks are navigating their way through at the moment.
To our north, Canada has been punished by a plethora of regulatory-based supply issues. Meanwhile, in the U.S., high tax rates in select legalized states have made it difficult for licensed producers to compete with black-market growers.
While there's little question that cannabis can be one of the fastest-growing and most-exciting industries in North America this decade, not every pot stock can be a winner. As we prepare to move headlong into October, I'd strongly encourage investors to avoid the following three pot stocks like the plague.
Image source: Getty Images.
Aurora Cannabis
Investing in Aurora Cannabis (NYSE: ACB) is like watching a train wreck happen in slow motion.
At one time, there was a lot of promise here. Aurora Cannabis was supposed to lead the world in marijuana output. It was also expected to have little issues snagging long-term supply deals given that it had a presence in two dozen overseas markets. In March 2019, the company also brought billionaire activist investor Nelson Peltz onboard, which looked like an obvious clue that Aurora was looking for a food or beverage partner.
Yet, here we are 18 months later, with more than half of Aurora's cultivation facilities closed, sold, or having had construction halted. It's also generating very little income from overseas markets, and has no brand-name partnerships or equity investments to speak of.
The most worrisome recent development is the company's reliance on value-priced pot brands in the recreational Canadian market. The June-ended quarter saw Aurora report an average net selling price per gram of just $3.60 Canadian ($2.69/gram U.S.), which was down 22% from the sequential quarter, ended in March. What this means is Aurora is having to go toe-to-toe with black market producers on price in order to lure in new users. That's a failure of Canada's regulators to stamp out illicit producers, and it's going to absolutely decimate the company's operating margins.Â
Although Aurora finally bit the bullet on its ugly balance sheet in the fiscal fourth quarter, it still has issues to contend with. Most notably, the company's cash situation remains precarious. Even with reduced selling, general, and administrative (SG&A) expenses, Aurora's board OK'd the sale of up to $350 million (that's U.S.) worth of shares via at-the-market offerings. This company has been continually diluting its shareholders, with its outstanding share count ballooning from 1.3 million to more than 115 million in six years.
There simply aren't any redeeming qualities for investors to latch onto.
Image source: Getty Images.
HEXO
Though I recall how fascinating penny stocks were in my younger days, I also remember how often they just kept heading lower. Just because Quebec-based licensed producer HEXO (NYSE: HEXO) sports a sub-$0.70 share price does not mean it can't head lower.
Similar to Aurora Cannabis, HEXO looked like it had a solid foundation in Canada's pot industry. It signed the largest multiyear wholesale supply agreement with its home provinces of Quebec in 2018, and appeared ready to tackle a supposed uptick in demand via its acquisition of Newstrike Brands. But this house of cards has come tumbling down in a big way over the past year.
First of all, we saw HEXO shutter the Niagara facility that was acquired from Newstrike, then sell this grow site for a measly CA$10.25 million. HEXO wrote down the vast majority of the value of its Newstrike acquisition.
Second, we've watched as HEXO has attempted to backpedal its way toward profitability -- or perhaps its survival, at this point. Multiple rounds of layoffs coupled with reduced output are designed to lower the company's SG&A expenses. Unfortunately, this has done little to offset a lack of significant sales growth. As a result, HEXO's quarterly losses have yet to narrow.
A third issue can be found in the company's April-ended quarterly report. In that quarter, HEXO reported an average selling price per gram of CA$3.64 per gram. Like Aurora, HEXO's value brand is completely sapping its operating margins.
But the fourth problem might be its biggest. With HEXO's share price stuck under $1, it risks delisting from the New York Stock Exchange by as soon as mid-December. The company could choose to enact a reverse split, but this is often perceived as a corporate action of weakness by the investment community.
The fact is that HEXO's long-term survival is very much in question at this point, which makes it a wholly undesirable investment in October and well beyond.
Image source: Getty Images.
Cronos Group
Let's make it a "Canada-fecta," with Canadian licensed producer Cronos Group (NASDAQ: CRON) the third marijuana stock investors would be wise to avoid in October.
The big lure to Cronos Group has been its tie-ins with tobacco giant Altria Group (NYSE: MO). In mid-March 2019, Altria closed an equity investment into Cronos Group that saw it take a 45% stake in exchange for $1.8 billion in cash. This cash alleviated Cronos' near-term capital concerns and, presumably, gave Altria a pathway to expand sales beyond just tobacco in the United States. This sounded like a match made in heaven, but excitement surrounding this investment has since gone up in smoke.
The expectation had been that Altria would assist Cronos Group in developing and marketing cannabis vape products. However, the duo has run into serious issues on this front. In Canada, Quebec and Newfoundland and Labrador have banned vape sales. Additionally, the U.S. was hit with a vape health-scare around this time last year that was eventually traced to vitamin E acetate. Though many of the products in question were purchased from the black market, a small number of troublesome vape products also derived from legal channels. Suffice it to say, there are persistent concerns about vape safety.
Another problem is that new users appear to be choosing dried cannabis flower over more expensive derivative products. A recently released report from the Brightfield Group found that derivative use in the second quarter among new users was relatively unchanged from the first quarter. By comparison, there was a marked uptick in cannabis flower use. That's bad news for a company like Cronos that has relatively minimal dried flower production capacity and is focused almost entirely on derivatives.
The reality for Cronos is that its big cash position isn't going to provide much protection if consumers aren't buying derivatives and the company keeps losing money. Investors would be wise to keep their distance in October.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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 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 Investing in Aurora Cannabis (NYSE: ACB) is like watching a train wreck happen in slow motion. That's a failure of Canada's regulators to stamp out illicit producers, and it's going to absolutely decimate the company's operating margins. Although Aurora finally bit the bullet on its ugly balance sheet in the fiscal fourth quarter, it still has issues to contend with. Even with reduced selling, general, and administrative (SG&A) expenses, Aurora's board OK'd the sale of up to $350 million (that's U.S.) worth of shares via at-the-market offerings. | Aurora Cannabis Investing in Aurora Cannabis (NYSE: ACB) is like watching a train wreck happen in slow motion. In that quarter, HEXO reported an average selling price per gram of CA$3.64 per gram. Cronos Group Let's make it a "Canada-fecta," with Canadian licensed producer Cronos Group (NASDAQ: CRON) the third marijuana stock investors would be wise to avoid in October. | Aurora Cannabis Investing in Aurora Cannabis (NYSE: ACB) is like watching a train wreck happen in slow motion. That's a failure of Canada's regulators to stamp out illicit producers, and it's going to absolutely decimate the company's operating margins. Although Aurora finally bit the bullet on its ugly balance sheet in the fiscal fourth quarter, it still has issues to contend with. Cronos Group Let's make it a "Canada-fecta," with Canadian licensed producer Cronos Group (NASDAQ: CRON) the third marijuana stock investors would be wise to avoid in October. | Aurora Cannabis Investing in Aurora Cannabis (NYSE: ACB) is like watching a train wreck happen in slow motion. Just because Quebec-based licensed producer HEXO (NYSE: HEXO) sports a sub-$0.70 share price does not mean it can't head lower. Cronos Group Let's make it a "Canada-fecta," with Canadian licensed producer Cronos Group (NASDAQ: CRON) the third marijuana stock investors would be wise to avoid in October. |
37252.0 | 2020-09-30 00:00:00 UTC | The Top Marijuana Stock to Avoid In a Market Crash | ACB | https://www.nasdaq.com/articles/the-top-marijuana-stock-to-avoid-in-a-market-crash-2020-09-30 | nan | nan | If you had invested $10,000 in Aurora Cannabis (NYSE: ACB) just a year ago, your initial investment would be worth a meager $851 as of Sep. 29. Canada's nationwide legalization of marijuana in Oct. 2018 was supposed to bring sweeping success to the country's pot companies. However, Aurora grossly overestimated the market demand for cannabis, and invested billions of dollars in production facilities that never took off.
Not only did Aurora get its market dynamics wrong, but management of its existing capital will probably cause more woes for investors in the future. Let's dig into why Aurora is the marijuana stock to avoid in the event of another market crash. Â
Image source: Getty Images.
Financial misstepsÂ
In 2019, Aurora issued more than 431 million shares in order to acquire competitors including MedReleaf, Anandia, and Agropro. The company ultimately paid inflated prices for these assets and had to write off over CA$1.6 billion in goodwill as their fair value declined. Due to severe oversupply, Aurora's dried cannabis now sells for only CA$3.6 per gram as of the fourth quarter 2020, down 22% from CA$4.64 just one quarter earlier.
Aurora had to perform a 1-12 reverse stock split in May. This split was necessary in order to get Aurora's share price back above $1 and avoid delisting from the New York Stock Exchange (NYSE). As of June 2020, the company had 115 million shares outstanding. The company's shares outstanding last year, pre-split, were about 84.8 million. In other words, Aurora diluted its shareholders by about 35% in a matter of one year. Â
That habit of issuing stock to eat up losses isn't likely to disappear anytime soon. During the fourth quarter 2020, the company's revenue decreased by 24% year over year to CA$72.1 million. Aurora's gross margins fell from 58% in fourth quarter 2019 to 50%. Its cash use during the quarter was a staggering CA$100 million, with notable expenses such as CA$67.7 million in selling, general, and administrative expenses (SG&A) and CA$16.4 million in capital expenditures.
Unfortunately, Aurora only has CA$162.2 million left in cash to offset CA$83.7 million in loans and CA$294.9 million in liabilities for convertible notes. Since it is not profitable, Aurora may have to continue sacrificing shareholders' capital in order to keep the company running. After June 30, Aurora raised $36.6 million in a new stock offering.Â
Weed market chaosÂ
Aurora is ironically having a hard time adjusting to the post-legalization operating environment. Last November, the company predicted it would produce 700,000 kilograms (kg) of cannabis by mid-2020. In its quarter ended June 30, Aurora sold just 16,750 kg of the more than 44,400 kg it harvested. At the same time last year, the company sold 36,628 kg, representing a 52% year-over-year decline in production capacity.
There are various reasons for the sector decline. The black market's sales have historically topped legal sales until this summer, the pandemic has kept consumers away from Aurora's products, and more competitors have entered the industry now that weed is legal nationwide. But the fact that Aurora was overly aggressive in conducting acquisitions is the main reason for its collapse in revenues and earnings.Â
As the price of dried cannabis declines in Canada, Aurora is simultaneously dealing with an oversupply of biological assets. The company continues to build up restructuring expenses so significant that it is difficult to see how Aurora can turn around its operations. Keep in mind, Aurora still has CA$139.2 million worth of marijuana inventory on its balance sheet. Ramping up production will only help the company once it has been unable to sell what it has already produced. In the fourth quarter alone, Aurora suffered a CA$86.5 million impairment charge due to production facility closures, and a stunning CA$135.1 million writedown to inventory it can't sell.
ACB data by YCharts
Takeaway for investors
Although the stock is trading for just 2.3 times price-to-sales (P/S) at a $570 million market cap, it is more likely to be a value trap than a hidden gem. Don't be surprised if the stock reaches as low as 0.5 times sales. Regardless of whether or not the ongoing correction turns into a market rout, cannabis investors should get out of Aurora while they still can.Â
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 â it is coming.
Cannabis legalization is sweeping over North America â 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
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. | ACB data by YCharts Takeaway for investors Although the stock is trading for just 2.3 times price-to-sales (P/S) at a $570 million market cap, it is more likely to be a value trap than a hidden gem. If you had invested $10,000 in Aurora Cannabis (NYSE: ACB) just a year ago, your initial investment would be worth a meager $851 as of Sep. 29. Financial missteps In 2019, Aurora issued more than 431 million shares in order to acquire competitors including MedReleaf, Anandia, and Agropro. | If you had invested $10,000 in Aurora Cannabis (NYSE: ACB) just a year ago, your initial investment would be worth a meager $851 as of Sep. 29. ACB data by YCharts Takeaway for investors Although the stock is trading for just 2.3 times price-to-sales (P/S) at a $570 million market cap, it is more likely to be a value trap than a hidden gem. During the fourth quarter 2020, the company's revenue decreased by 24% year over year to CA$72.1 million. | If you had invested $10,000 in Aurora Cannabis (NYSE: ACB) just a year ago, your initial investment would be worth a meager $851 as of Sep. 29. ACB data by YCharts Takeaway for investors Although the stock is trading for just 2.3 times price-to-sales (P/S) at a $570 million market cap, it is more likely to be a value trap than a hidden gem. Its cash use during the quarter was a staggering CA$100 million, with notable expenses such as CA$67.7 million in selling, general, and administrative expenses (SG&A) and CA$16.4 million in capital expenditures. | If you had invested $10,000 in Aurora Cannabis (NYSE: ACB) just a year ago, your initial investment would be worth a meager $851 as of Sep. 29. ACB data by YCharts Takeaway for investors Although the stock is trading for just 2.3 times price-to-sales (P/S) at a $570 million market cap, it is more likely to be a value trap than a hidden gem. As of June 2020, the company had 115 million shares outstanding. |
37253.0 | 2020-09-29 00:00:00 UTC | More Bad News for the Canadian Marijuana Industry | ACB | https://www.nasdaq.com/articles/more-bad-news-for-the-canadian-marijuana-industry-2020-09-29 | nan | nan | Few industries offer as much promise this decade as marijuana. After generating $10.9 billion in worldwide sales in 2018, Wall Street analysts are forecasting anywhere from $50 billion to $200 billion in global sales by 2030. While not every pot stock can be a winner, these would appear to be incredible growth figures for investors to piggyback on.
However, there's been a wild divergence to date between the U.S. and Canadian cannabis markets.
Image source: Getty Images.
Canada completely blew its chance to be a cannabis leader
Despite the U.S. federal government's failure to legalize weed, quite a few marijuana stocks have flourished. We've witnessed two-thirds of all states legalize medical cannabis, with 11 states permitting adult-use consumption and/or retail sale. According to the latest edition of the "Marijuana Business Factbook" from Marijuana Business Daily, the U.S. sold anywhere from $10.6 billion to $13 billion in legal-channel pot last year.Â
Meanwhile, Canada has been a mess that simply can't get out of its own way. Even though it's the first industrialized country to give the green light to recreational marijuana, it's failed to provide the blueprint for other countries to follow.
Many of its problems can be traced back to regulatory issues. For instance, Health Canada can be blamed for both slowing down the licensing process for cultivators and retailers, as well as delaying the launch of high-margin derivatives. A derivative is a non-dried cannabis product, such as an edible, infused beverage, topical, or vape.
But it wasn't just Health Canada that made mistakes on the regulatory front. Some provincial regulators also failed badly. Ontario, which is home to almost 40% of Canada's population, ran with a lottery system for dispensary licenses between Oct. 2018 and Dec. 2019. This lottery system saw just 24 dispensaries open in the first year in a province that could comfortably house 1,000 retail locations.
Without adequate distribution channels, the Canadian cannabis market has experienced everything from supply shortages to suffocating supply bottlenecks, depending on the province.
Image source: Getty Images.
More bad news for Canada's pot industry
Thankfully, these issues haven't stopped licensed cannabis store sales from creeping higher over the past two years (sales of adult-use weed began on Oct. 17, 2018). In July, Canadian licensed cannabis store sales hit an all-time high of $231.6 million Canadian ($173 million U.S.), which is up close to 50% from the monthly sales tallied in January 2020.Â
Things must be getting better for the Canadian pot industry and marijuana stocks, right?
Not exactly.
As we witnessed this past earnings season, one Canadian licensed producer after another reported exceptionally weak cannabis sales growth in the domestic market. It made little sense considering that the coronavirus pandemic, coupled with an increase in new dispensary openings in Ontario, led to a notable uptick in licensed cannabis store sales between March and July. But we may now have an answer as to why these figures were so weak.
Recently, cannabis-focused data and strategic insight company Brightfield Group released a report, "Canadian Cannabis Newbies," that examined the role new users are playing in the Canadian marketplace. While there were positives mixed throughout, including Canada's ability to reach medical and recreational users, there was one glaring trend that stood out.
Image source: Getty Images.
Despite the rollout of Cannabis 2.0 -- i.e., the aforementioned derivative products that were launched in Dec. 2019, and slowly made their way to retail shelves -- new users preferred cannabis flower over derivatives in the second quarter. Whereas derivative use was more or less flat from the sequential first quarter, dried flower use rates among newbies spiked to 43% in Q2 from 28% in Q1.Â
Why, you ask? For one, dried flower is far more readily available than derivative pot products, which have been constrained by supply challenges. Perhaps more importantly, Brightfield Group opines that so-called newbies have been drawn to dried flower and pre-rolls due to value pricing on these products. Value is especially important with the coronavirus hurting the income potential of workers throughout North America.
The problem is that Canadian licensed producers were counting on Cannabis 2.0 to drive their margins higher. Unfortunately, with the black market remaining resilient in the wake of ongoing supply issues, licensed producers have had to turn to exceptionally low-margin, value-priced, and highly commoditized dried cannabis flower to compete with the black market and draw new users.
In other words, Canada's cultivators are crushing their own margins in an effort to beat back the black market and secure loyal customers. This is why margins have been so awful of late, and also why revenue figures have been so poor despite licensed cannabis store sales hitting all-time highs.
Image source: Getty Images.
Canadian pot stocks remain off-limits
Given the sea of problems that Canada's licensed producers have dealt with, as well as the likelihood that they're now trying to go toe-to-toe with the black market using value-priced dried cannabis, there's simply no good reason to invest in Canadian marijuana stocks (specifically licensed producers).
Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock in North America, but it has also been one of the worst possible investments over the past 18 months. Per its recently released fiscal fourth-quarter results, Aurora's average net selling price of dried cannabis plummeted 22% to CA$3.60 per gram from the sequential third quarter (Jan. 2020 â March 2020). Even though the company sold 32% more kilograms than it did in Q3 2020, net cannabis revenue actually declined 3%.Â
It was the same story for the cash-rich Canopy Growth (NYSE: CGC) in the most recent quarter. In spite of a 22% increase in year-over-year net sales, the bulk of this revenue jump came from selling pot products in overseas markets and from its ancillary operations. Canopy's Canadian recreational revenue actually fell by 11% from the prior-year period to CA$44.2 million. This included double-digit declines in both business-to-business and business-to-consumer sales.Â
Right now, it doesn't matter whether we're talking about the most popular pot stock (Aurora Cannabis) or the largest marijuana stock by market cap (Canopy Growth) -- the story is the same. Do yourself a favor and avoid putting your hard-earned money to work in Canadian licensed producers for the time being.
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 â it is coming.
Cannabis legalization is sweeping over North America â 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) is by far the most popular marijuana stock in North America, but it has also been one of the worst possible investments over the past 18 months. It made little sense considering that the coronavirus pandemic, coupled with an increase in new dispensary openings in Ontario, led to a notable uptick in licensed cannabis store sales between March and July. Per its recently released fiscal fourth-quarter results, Aurora's average net selling price of dried cannabis plummeted 22% to CA$3.60 per gram from the sequential third quarter (Jan. 2020 â March 2020). | Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock in North America, but it has also been one of the worst possible investments over the past 18 months. More bad news for Canada's pot industry Thankfully, these issues haven't stopped licensed cannabis store sales from creeping higher over the past two years (sales of adult-use weed began on Oct. 17, 2018). In July, Canadian licensed cannabis store sales hit an all-time high of $231.6 million Canadian ($173 million U.S.), which is up close to 50% from the monthly sales tallied in January 2020. Things must be getting better for the Canadian pot industry and marijuana stocks, right? | Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock in North America, but it has also been one of the worst possible investments over the past 18 months. More bad news for Canada's pot industry Thankfully, these issues haven't stopped licensed cannabis store sales from creeping higher over the past two years (sales of adult-use weed began on Oct. 17, 2018). In July, Canadian licensed cannabis store sales hit an all-time high of $231.6 million Canadian ($173 million U.S.), which is up close to 50% from the monthly sales tallied in January 2020. Things must be getting better for the Canadian pot industry and marijuana stocks, right? | Aurora Cannabis (NYSE: ACB) is by far the most popular marijuana stock in North America, but it has also been one of the worst possible investments over the past 18 months. As we witnessed this past earnings season, one Canadian licensed producer after another reported exceptionally weak cannabis sales growth in the domestic market. Canadian pot stocks remain off-limits Given the sea of problems that Canada's licensed producers have dealt with, as well as the likelihood that they're now trying to go toe-to-toe with the black market using value-priced dried cannabis, there's simply no good reason to invest in Canadian marijuana stocks (specifically licensed producers). |
37254.0 | 2020-09-29 00:00:00 UTC | Billionaire Nelson Peltz Resigns as Aurora Cannabis Advisor | ACB | https://www.nasdaq.com/articles/billionaire-nelson-peltz-resigns-as-aurora-cannabis-advisor-2020-09-29 | nan | nan | Aurora Cannabis (NYSE: ACB) has lost a bit of corporate stardust. Buried in an update about its upcoming annual general meeting, the marijuana grower revealed that billionaire investor Nelson Peltz has resigned as a senior advisor to the company.
The press release included no details nor any specific reasons for his departure. In an email to Marijuana Business Daily, Aurora said without much elaboration that "[t]his change is a direct result of Mr. Peltz's decision to pursue other commitments."
Peltz himself has not commented on the resignation.
Image source: Getty Images.
The veteran investor's tenure with Aurora did not last long. The company brought him on board to much fanfare in March 2019, in a move that was seen at the time as lending legitimacy to the marijuana sector | Aurora Cannabis (NYSE: ACB) has lost a bit of corporate stardust. Buried in an update about its upcoming annual general meeting, the marijuana grower revealed that billionaire investor Nelson Peltz has resigned as a senior advisor to the company. In an email to Marijuana Business Daily, Aurora said without much elaboration that "[t]his change is a direct result of Mr. Peltz's decision to pursue other commitments." | Aurora Cannabis (NYSE: ACB) has lost a bit of corporate stardust. Buried in an update about its upcoming annual general meeting, the marijuana grower revealed that billionaire investor Nelson Peltz has resigned as a senior advisor to the company. In an email to Marijuana Business Daily, Aurora said without much elaboration that "[t]his change is a direct result of Mr. Peltz's decision to pursue other commitments." | Aurora Cannabis (NYSE: ACB) has lost a bit of corporate stardust. Buried in an update about its upcoming annual general meeting, the marijuana grower revealed that billionaire investor Nelson Peltz has resigned as a senior advisor to the company. In an email to Marijuana Business Daily, Aurora said without much elaboration that "[t]his change is a direct result of Mr. Peltz's decision to pursue other commitments." | Aurora Cannabis (NYSE: ACB) has lost a bit of corporate stardust. Buried in an update about its upcoming annual general meeting, the marijuana grower revealed that billionaire investor Nelson Peltz has resigned as a senior advisor to the company. The press release included no details nor any specific reasons for his departure. |
37255.0 | 2020-09-29 00:00:00 UTC | Aurora Cannabis Says Nelson Peltz Resigns As Senior Advisor | ACB | https://www.nasdaq.com/articles/aurora-cannabis-says-nelson-peltz-resigns-as-senior-advisor-2020-09-29 | nan | nan | (RTTNews) - Aurora Cannabis Inc. said Monday that activist investor Nelson Peltz has resigned as a senior advisor to the company, effective September 25, 2020.
The Canadian cannabis company disclosed Peltz's resignation while announcing details about its annual general meeting to be held on November 12, 2020.
"…280 Park ACI Holdings LLC has resigned as senior advisor to the Company, effective September 25, 2020 in order to pursue other commitments. 280 Park ACI Holdings LLC, the principal of which is Nelson Peltz, had been providing services to the Company since March 2019 with respect to its US strategic initiatives," Aurora Cannabis said in a statement.
Aurora Cannabis also said that its upcoming annual general and special meeting or AGM will be held on Thursday, November 12. Due to the global COVID-19 public health emergency, the AGM will be held for the first time in a virtual-only format, via live webcast.
While announcing the appointment of Peltz as its strategic advisor in March 2019, Aurora Cannabis had said it will work with Peltz to explore potential partnerships for the company's successful entry into each of its contemplated market segments. The company added that Peltz will advise on the company's global expansion strategy.
Peltz joined Aurora after the company's rivals Canopy Growth and Cronos Group secured big investments from brewer Constellation Brands and tobacco company Altria Group Inc. respectively.
Last Friday, Aurora Cannabis reported a wider loss for fiscal year 2020. The company' full-year net loss widened to C$3.31 billion from a restated loss of C$300.60 million in the prior year, while net revenue grew to C$278.91 million from restated C$245.54 million.
In early September, Aurora Cannabis announced the appointment of Miguel Martin as its new chief executive officer. Michael Singer, who served as interim CEO since February 2020, will remain executive chairman.
Aurora Cannabis said in June that it has initiated a plan to close five smaller production facilities over the next two quarters in order to focus production and manufacturing at the company's larger scale sites. The company added it will cut jobs at the corporate and production level as well as reduce third-party consulting and professional spending across the organization.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Aurora Cannabis Inc. said Monday that activist investor Nelson Peltz has resigned as a senior advisor to the company, effective September 25, 2020. "…280 Park ACI Holdings LLC has resigned as senior advisor to the Company, effective September 25, 2020 in order to pursue other commitments. 280 Park ACI Holdings LLC, the principal of which is Nelson Peltz, had been providing services to the Company since March 2019 with respect to its US strategic initiatives," Aurora Cannabis said in a statement. | (RTTNews) - Aurora Cannabis Inc. said Monday that activist investor Nelson Peltz has resigned as a senior advisor to the company, effective September 25, 2020. The Canadian cannabis company disclosed Peltz's resignation while announcing details about its annual general meeting to be held on November 12, 2020. "…280 Park ACI Holdings LLC has resigned as senior advisor to the Company, effective September 25, 2020 in order to pursue other commitments. | (RTTNews) - Aurora Cannabis Inc. said Monday that activist investor Nelson Peltz has resigned as a senior advisor to the company, effective September 25, 2020. 280 Park ACI Holdings LLC, the principal of which is Nelson Peltz, had been providing services to the Company since March 2019 with respect to its US strategic initiatives," Aurora Cannabis said in a statement. While announcing the appointment of Peltz as its strategic advisor in March 2019, Aurora Cannabis had said it will work with Peltz to explore potential partnerships for the company's successful entry into each of its contemplated market segments. | 280 Park ACI Holdings LLC, the principal of which is Nelson Peltz, had been providing services to the Company since March 2019 with respect to its US strategic initiatives," Aurora Cannabis said in a statement. Aurora Cannabis also said that its upcoming annual general and special meeting or AGM will be held on Thursday, November 12. While announcing the appointment of Peltz as its strategic advisor in March 2019, Aurora Cannabis had said it will work with Peltz to explore potential partnerships for the company's successful entry into each of its contemplated market segments. |
37256.0 | 2020-09-29 00:00:00 UTC | Robinhood Investors: Buy This, Not That | ACB | https://www.nasdaq.com/articles/robinhood-investors%3A-buy-this-not-that-2020-09-29 | nan | nan | There's no question that investing in 2020 has been an adventure. In roughly a six-month stretch, the benchmark S&P 500 lost more than a third of its value to investor panic and uncertainty surrounding the coronavirus disease 2019 (COVID-19) pandemic -- only to completely rebound.
Tenured investors didn't overreact to this wild period. That's because every correction and stock market crash in history has eventually been put into the rearview mirror by a bull market rally. Long-term investors simply played the odds and remained invested in businesses that offer game-changing innovation and/or sustainable competitive advantages.
But this heightened volatility has proved an irresistible lure for short-term traders and novice investors. Online investing app Robinhood, which is known for its commission-free trading and gifting of free shares of stock to new members, has seen millennials and/or novice investors flock to its platform. As a result, the company's leaderboard (i.e., the most widely held stocks on Robinhood) is filled with penny stocks and otherwise awful companies.
Interestingly, it's not that Robinhood investors are choosing poor industries to invest in. Rather, they're chasing the wrong pony within those industries. Consider this the latest edition of "buy this, not that," but for Robinhood investors.
Image source: Getty Images.
Marijuana stocks
Robinhood investors are completely missing out on the juiciest growth story in the cannabis space -- the U.S. market -- because Robinhood won't let its users invest in over-the-counter (OTC) securities. But that hasn't stopped them from making some awful purchases.
Don't buy: If there's one company I'd really steer investors away from, it's Aurora Cannabis (NYSE: ACB). If the nearly 96% decline in shares since March 2019 isn't enough of a reason to keep your distance, here are a few more:
It wrote down more than $2.8 billion Canadian in value in fiscal 2020, erasing a significant portion of its total assets.
Aurora's management team has continually moved the goalposts when it comes to reaching positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Aurora's board approved a $350 million (that's U.S.) at-the-market offering earlier this year, which continues years of ongoing share-based dilution.
What investors thought they were buying into, even as recently as the beginning of 2020, is no more.
Image source: Getty Images.
Buy this: Instead of Aurora Cannabis, I'd encourage investors to open a separate brokerage account (i.e., one that'll allow them to buy OTC pot stocks) and purchase Green Thumb Industries (OTC: GTBIF). Green Thumb has opened 48 dispensaries to date, but holds enough retail licenses to double this to 96.
Green Thumb has been very methodical in where it's chosen to set up shop. This is a company with a burgeoning retail presence in Illinois, which opened its doors to adult-use cannabis on Jan. 1, 2020, and Nevada, which seems on track to lead the country in cannabis spending per capita by 2024. Both markets should reach at least $1 billion in annual legalized weed sales by 2024.
But the best aspect of all is that roughly two-thirds of the company's sales are derived from higher-margin derivatives, such as edibles and beverages. Since dried cannabis is easily commoditized, Green Thumb's focus on derivatives should see it push comfortably into recurring profitability next year.
Image source: Getty Images.
Social media
I'm all for Robinhood investors putting their money to work into the high-growth social media industry. If anything, we're spending more time than ever connecting with friends and family through social platforms these days. But Robinhood investors' social media stock of choice simply isn't that appealing.
Don't buy: Robinhood investors have been enamored with Snap (NYSE: SNAP). Though Snap prefers to be called a camera company, the vast majority of its revenue is derived from digital advertising.
The biggest problem with Snap is that the company's average revenue per user (ARPU) trends haven't been that exciting for years. ARPU growth has been decelerating notably with each passing year, and daily active user (DAU) count rose by only 17% from the prior-year period in the second quarter. Put another way, in the quarter when people were stuck home due to COVID-19, Snap saw only 17% DAU growth, and ARPU was flat on a year-over-year basis.Â
What's more, Snap doesn't appear to be particularly close to profitability. That's a concern when its ARPU growth has notably decelerated.
Image source: Pinterest.
Buy this: My suggestion would be to forget about Snap and buy the faster-growing Pinterest (NYSE: PINS) instead. Pinterest might be losing money like Snap, but its metrics aren't decelerating at a worrisome pace.
For example, Pinterest added 116 million monthly active users (MAU) since the end of June 2019, representing an increase of 39%. Additionally, even though global ARPU declined in the second quarter of 2020 as a result of reduced ad spending, Pinterest's international ARPU still jumped 21% from the prior-year period, and more than doubled on a full-year basis in 2019. Pinterest is a much faster-growing social media asset, and presumably more prized by advertisers.Â
Furthermore, Pinterest has the opportunity to become an e-commerce powerhouse this decade. With its 416 million MAU willingly posting their interests and hobbies to the platform, the company would be doing a disservice by not connecting these motivated users with small businesses that cater to their interests. Having already partnered with Shopify to aid those small businesses, and now utilizing video to improve user engagement, Pinterest looks well on its way to supplementing its growth in the years ahead.
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Sean Williams owns shares of Pinterest. The Motley Fool owns shares of and recommends Green Thumb Industries, Pinterest, and Shopify. 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 buy: If there's one company I'd really steer investors away from, it's Aurora Cannabis (NYSE: ACB). In roughly a six-month stretch, the benchmark S&P 500 lost more than a third of its value to investor panic and uncertainty surrounding the coronavirus disease 2019 (COVID-19) pandemic -- only to completely rebound. Online investing app Robinhood, which is known for its commission-free trading and gifting of free shares of stock to new members, has seen millennials and/or novice investors flock to its platform. | Don't buy: If there's one company I'd really steer investors away from, it's Aurora Cannabis (NYSE: ACB). Buy this: Instead of Aurora Cannabis, I'd encourage investors to open a separate brokerage account (i.e., one that'll allow them to buy OTC pot stocks) and purchase Green Thumb Industries (OTC: GTBIF). For example, Pinterest added 116 million monthly active users (MAU) since the end of June 2019, representing an increase of 39%. | Don't buy: If there's one company I'd really steer investors away from, it's Aurora Cannabis (NYSE: ACB). Marijuana stocks Robinhood investors are completely missing out on the juiciest growth story in the cannabis space -- the U.S. market -- because Robinhood won't let its users invest in over-the-counter (OTC) securities. Buy this: Instead of Aurora Cannabis, I'd encourage investors to open a separate brokerage account (i.e., one that'll allow them to buy OTC pot stocks) and purchase Green Thumb Industries (OTC: GTBIF). | Don't buy: If there's one company I'd really steer investors away from, it's Aurora Cannabis (NYSE: ACB). Interestingly, it's not that Robinhood investors are choosing poor industries to invest in. Buy this: Instead of Aurora Cannabis, I'd encourage investors to open a separate brokerage account (i.e., one that'll allow them to buy OTC pot stocks) and purchase Green Thumb Industries (OTC: GTBIF). |
37257.0 | 2020-09-28 00:00:00 UTC | TSX rises 1.1% to 16,242.81 | ACB | https://www.nasdaq.com/articles/tsx-rises-1.1-to-16242.81-2020-09-28 | nan | nan | * The Toronto Stock Exchange's TSX rises 1.10 percent to 16,242.81
* Leading the index were Methanex Corp , up 6.9%, Enerplus Corp ERF.TO, up 6.7%, and Vermilion Energy Inc VET.TO, higher by 6.6%.
* Lagging shares were Lundin Mining Corp LUN.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 4.1%, and BlackBerry Ltd BB.TO, lower by 3.0%.
* On the TSX 189 issues rose and 32 fell as a 5.9-to-1 ratio favored advancers. There were 8 new highs and 1 new low, with total volume of 235.7 million shares.
* The most heavily traded shares by volume were Bank Of Nova Scotia BNS.TO, Royal Bank Of Canada RY.TO and Lundin Mining Corp LUN.TO.
* The TSX's energy group .SPTTEN rose 2.40 points, or 3.6%, while the financials sector .SPTTFS climbed 5.05 points, or 1.9%.
* West Texas Intermediate crude futures CLc1 rose 0.8%, or $0.32, to $40.57 a barrel. Brent crude LCOc1 rose 1.36%, or $0.57, to $42.49 O/R
* The TSX is off 4.8% 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 Lundin Mining Corp LUN.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 4.1%, and BlackBerry Ltd BB.TO, lower by 3.0%. * On the TSX 189 issues rose and 32 fell as a 5.9-to-1 ratio favored advancers. * West Texas Intermediate crude futures CLc1 rose 0.8%, or $0.32, to $40.57 a barrel. | * Lagging shares were Lundin Mining Corp LUN.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 4.1%, and BlackBerry Ltd BB.TO, lower by 3.0%. * The most heavily traded shares by volume were Bank Of Nova Scotia BNS.TO, Royal Bank Of Canada RY.TO and Lundin Mining Corp LUN.TO. * The TSX's energy group .SPTTEN rose 2.40 points, or 3.6%, while the financials sector .SPTTFS climbed 5.05 points, or 1.9%. | * Lagging shares were Lundin Mining Corp LUN.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 4.1%, and BlackBerry Ltd BB.TO, lower by 3.0%. * The Toronto Stock Exchange's TSX rises 1.10 percent to 16,242.81 * Leading the index were Methanex Corp , up 6.9%, Enerplus Corp ERF.TO, up 6.7%, and Vermilion Energy Inc VET.TO, higher by 6.6%. * The most heavily traded shares by volume were Bank Of Nova Scotia BNS.TO, Royal Bank Of Canada RY.TO and Lundin Mining Corp LUN.TO. | * Lagging shares were Lundin Mining Corp LUN.TO, down 6.2%, Aurora Cannabis Inc ACB.TO, down 4.1%, and BlackBerry Ltd BB.TO, lower by 3.0%. * The Toronto Stock Exchange's TSX rises 1.10 percent to 16,242.81 * Leading the index were Methanex Corp , up 6.9%, Enerplus Corp ERF.TO, up 6.7%, and Vermilion Energy Inc VET.TO, higher by 6.6%. * On the TSX 189 issues rose and 32 fell as a 5.9-to-1 ratio favored advancers. |
37258.0 | 2020-09-28 00:00:00 UTC | Billionaire investor Peltz steps down as adviser at pot producer Aurora | ACB | https://www.nasdaq.com/articles/billionaire-investor-peltz-steps-down-as-adviser-at-pot-producer-aurora-2020-09-28 | nan | nan | Sept 28 (Reuters) - Aurora Cannabis Inc ACB.TO said on Monday billionaire investor Nelson Peltz has stepped down as adviser, adding to troubles at the Canadian pot producer reeling under the impact of the coronavirus pandemic.
The company tapped Peltz as a strategic adviser in March last year, betting on the consumer industry-focused investor to help the recreational marijuana maker chart its expansion into new markets. [https://reut.rs/3jbHEJS]
However, the pandemic has hit the cash-strapped cannabis industry hard and forced many companies to shut down. Aurora also laid off hundreds of employees this year, shut facilities and amended its loan agreements.
Aurora Cannabis named insider Miguel Martin its chief executive officer earlier this month, tasking him with turning around the company.
For most weed producers in Canada, which legalized recreational cannabis in October 2018, profits have proven elusive due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth.
($1 = 1.3359 Canadian dollars)
(Reporting by Shradha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Shradha.Singh@thomsonreuters.com; within U.S. +1 646 223 8780 Ext: 2804, outside U.S. +91 80 6182 2630;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 28 (Reuters) - Aurora Cannabis Inc ACB.TO said on Monday billionaire investor Nelson Peltz has stepped down as adviser, adding to troubles at the Canadian pot producer reeling under the impact of the coronavirus pandemic. The company tapped Peltz as a strategic adviser in March last year, betting on the consumer industry-focused investor to help the recreational marijuana maker chart its expansion into new markets. For most weed producers in Canada, which legalized recreational cannabis in October 2018, profits have proven elusive due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth. | Sept 28 (Reuters) - Aurora Cannabis Inc ACB.TO said on Monday billionaire investor Nelson Peltz has stepped down as adviser, adding to troubles at the Canadian pot producer reeling under the impact of the coronavirus pandemic. Aurora also laid off hundreds of employees this year, shut facilities and amended its loan agreements. Aurora Cannabis named insider Miguel Martin its chief executive officer earlier this month, tasking him with turning around the company. | Sept 28 (Reuters) - Aurora Cannabis Inc ACB.TO said on Monday billionaire investor Nelson Peltz has stepped down as adviser, adding to troubles at the Canadian pot producer reeling under the impact of the coronavirus pandemic. The company tapped Peltz as a strategic adviser in March last year, betting on the consumer industry-focused investor to help the recreational marijuana maker chart its expansion into new markets. For most weed producers in Canada, which legalized recreational cannabis in October 2018, profits have proven elusive due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth. | Sept 28 (Reuters) - Aurora Cannabis Inc ACB.TO said on Monday billionaire investor Nelson Peltz has stepped down as adviser, adding to troubles at the Canadian pot producer reeling under the impact of the coronavirus pandemic. The company tapped Peltz as a strategic adviser in March last year, betting on the consumer industry-focused investor to help the recreational marijuana maker chart its expansion into new markets. [https://reut.rs/3jbHEJS] However, the pandemic has hit the cash-strapped cannabis industry hard and forced many companies to shut down. |
37259.0 | 2020-09-28 00:00:00 UTC | Can Aurora Cannabis Stock Make a Comeback? | ACB | https://www.nasdaq.com/articles/can-aurora-cannabis-stock-make-a-comeback-2020-09-28 | nan | nan | The past year has been a tough one for Aurora Cannabis (NYSE: ACB) shareholders, and it doesn't seem to be getting any easier. The popular marijuana company saw its stock tank after reporting fiscal fourth-quarter earnings recently, and it's down by around 91% over the past 12 months.
Now that this company's market value has fallen to a fraction of its former size, Aurora Cannabis looks a lot more attractive to bargain bin shoppers. Can Aurora find a way to quit losing money and execute a comeback before its stock price tanks again? Let's weigh out some reasons to expect a comeback against reasons to avoid the stock.
Image source: Getty Images.
The bad news
During Aurora's fiscal fourth quarter, which ended on June 30, cannabis sales continued their long slide downward. The company reported CA$72 million in total net revenue, which was 5% lower than during the previous three month period and a startling 27% lower than the previous-year period.
It doesn't look as if the revenue losses are going to subside soon, either. During the present quarter, Aurora expects net revenue to land somewhere between $60 million and $64 million.
The good news
Revenue isn't the only line item that has fallen since the company's present CEO, Miguel Martin, joined the company four months ago. Costs of cannabis sold fell to just 50% of cannabis-related revenue, before fair value adjustments, from 43% during the previous quarter.
Aurora Cannabis reported increased profitability despite a big shift toward low-cost Daily Special, the company's value segment brand. The Daily Special brand produced a surprising 62% of recreational flower sales during the company's fiscal fourth quarter, up from 35% in the previous quarter.
Aurora Cannabis is also running a much leaner ship with sales, general, and administrative (SG&A) expenses that fell 14% from the previous quarter to $67.6 million. This allowed adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to improve from a loss of $50.4 million in the fiscal third quarter to a loss of just $30.7 million in the fiscal fourth quarter.
Image source: Getty Images.
Looking ahead
Aurora's value brand is popular now, but the company isn't going to chase market share at the expense of profits anymore. Instead, Aurora wants to focus on premium brands that drive higher profit margins. To this end, the company will dial back production from a rate of 44,000 kilograms reported in the fiscal fourth quarter, to an average of around 35,000 kilograms per quarter for the foreseeable future.
Aurora's long-overdue focus on profitability instead of racing competitors to the bottom to gain market share is a step in the right direction, and there's a chance we'll see modest profits from Aurora in the fiscal first quarter, which ends on Sept. 30, 2020. The company has already made good on its promise to bring quarterly SG&A expenses down to the low CAD$40 million range.
Aurora Cannabis finished fiscal 2020 with CAD$162 million in cash after losing a staggering CAD$3.3 billion during the 12-month period ended June 30. Market shares for different categories of cannabis products can change quickly, but positive cash flows ahead mean investors probably don't have to worry about another dilutive share offering down the road.
A good stock to buy now?
Now that Aurora Cannabis' market cap has plunged from a peak above $10 billion to just $568 million at recent prices, it might seem like a terrific bargain but it's probably best to wait for another quarterly report or two to be sure new cost-cutting measures can truly stop this company from bleeding 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 â it is coming.
Cannabis legalization is sweeping over North America â 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
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The past year has been a tough one for Aurora Cannabis (NYSE: ACB) shareholders, and it doesn't seem to be getting any easier. The bad news During Aurora's fiscal fourth quarter, which ended on June 30, cannabis sales continued their long slide downward. Aurora Cannabis is also running a much leaner ship with sales, general, and administrative (SG&A) expenses that fell 14% from the previous quarter to $67.6 million. | The past year has been a tough one for Aurora Cannabis (NYSE: ACB) shareholders, and it doesn't seem to be getting any easier. The popular marijuana company saw its stock tank after reporting fiscal fourth-quarter earnings recently, and it's down by around 91% over the past 12 months. The bad news During Aurora's fiscal fourth quarter, which ended on June 30, cannabis sales continued their long slide downward. | The past year has been a tough one for Aurora Cannabis (NYSE: ACB) shareholders, and it doesn't seem to be getting any easier. This allowed adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to improve from a loss of $50.4 million in the fiscal third quarter to a loss of just $30.7 million in the fiscal fourth quarter. Aurora's long-overdue focus on profitability instead of racing competitors to the bottom to gain market share is a step in the right direction, and there's a chance we'll see modest profits from Aurora in the fiscal first quarter, which ends on Sept. 30, 2020. | The past year has been a tough one for Aurora Cannabis (NYSE: ACB) shareholders, and it doesn't seem to be getting any easier. The popular marijuana company saw its stock tank after reporting fiscal fourth-quarter earnings recently, and it's down by around 91% over the past 12 months. During the present quarter, Aurora expects net revenue to land somewhere between $60 million and $64 million. |
37260.0 | 2020-09-26 00:00:00 UTC | Better Marijuana Stock to Buy: Cronos or Canopy Growth? | ACB | https://www.nasdaq.com/articles/better-marijuana-stock-to-buy%3A-cronos-or-canopy-growth-2020-09-26 | nan | nan | For a long time, Cronos Group (NASDAQ: CRON) was unable to climb higher than third place among Canadian cannabis producers based on market cap. That changed this year, though, with Cronos rising to second-place position thanks to the rapidly deteriorating share price of Aurora Cannabis. Meanwhile, Canopy Growth (NYSE: CGC) has fairly consistently held onto the top spot except for brief periods.
Neither Cronos nor Canopy has made investors happy so far in 2020, however. Both companies' shares are down more than 30% year to date. But investors need to look ahead, not backward, so the question is, which of those leading Canadian marijuana stocks is the better pick to buy now?
Image source: Getty Images.
The case for Cronos Group
One reason to favor Cronos Group right now is its Lord Jones business. Cronos acquired the luxury hemp-derived CBD product line in 2019 for $300 million. In the second quarter of this year, Lord Jones was responsible for nearly all of Cronos' revenue growth. While the COVID-19 pandemic has been a drag on CBD product sales, Cronos could be poised for accelerated growth over the next few years.
You could argue, though, that the Lord Jones acquisition might not have happened were it not for Altria's big investment. The tobacco giant bought a 45% stake in Cronos for $1.8 billion early in 2019. That deal put Cronos at the center of investors' attention like never before. It also enabled the company to expand like never before, including buying Lord Jones.
Price competition has been a major challenge for the company, and it hasn't delivered impressive results in Canada this year. However, it should be able to generate growth in that country's still-developing Cannabis 2.0 market, especially with its launch of cannabis vaporizers.
In addition, Cronos has forged several key partnerships that should pay off over the long term. It teamed up with Ginkgo Bioworks to develop a method for producing high-quality cannabinoids at scale via the use of genetically engineered yeast. Its Natuera joint venture should provide growth opportunities in Latin America. And with the recent launch of its Peace Naturals products in Israel's medical cannabis market, it's beginning to see results from its Cronos Israel joint venture.
Generally, analysts think that Cronos could be the fastest-growing pot stock over the next four years. It's uncertain how long it will take for the company to achieve profitability, but thanks to Altria, it has a hefty stockpile of more than $1.3 billion in cash, cash equivalents, and short-term investments.
The case for Canopy Growth
Canopy Growth landed a major equity partner well before Cronos Group did. Constellation Brands first invested in it in 2017 with a 9.9% position. The alcoholic beverage giant significantly upped its investment the next year, spending $4 billion to raise its ownership stake to 38%.
Here, too, the infusion of cash from a big partner allowed the cannabis company to accelerate its expansion plans. In particular, it focused on the huge U.S. market opportunity by forging a deal to acquire Acreage Holdings at whatever point it becomes federally permissible to sell cannabis in the U.S. At this point, Canopy can't operate cannabis businesses in this country and retain its listing on a major U.S. stock exchange while marijuana remains illegal at the federal level.Â
Canopy's relationship with Constellation has also made a difference in Canada. The two companies worked together to develop cannabis-infused beverages that are now on the market. Canopy more than doubled its beverage production in July and nearly doubled production in August to keep up with demand. In addition to its leading share in the cannabis beverages market, Canopy claims the second-highest market share in Canada's medical cannabis market and ranks in the top three in recreational marijuana markets in most of the country's provinces.
The company also maintains a No. 1 market share for dried flower products in Germany's medical cannabis market. Its acquisition of German vaping technology pioneer Storz & Bickel has boosted sales, as has its acquisition of German cannabinoid drugmaker C3.
Like Cronos, Canopy isn't yet profitable. However, it too has a large cash stockpile, one that totals more than $1.5 billion. It has taken steps to cut costs and is working to lift gross margins to at least 40% in its push for profitability.
Better marijuana stock?
Both of these marijuana stocks could continue to languish. Both could also be big winners in the long run. If I had to pick just one of them, though, it would be Canopy Growth. I think that Canopy stands to benefit more from the potential for cannabis to be legalized at the federal level in the U.S. While there's no guarantee that will happen soon, the upcoming election could be game-changing for this industry.Â
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 â it is coming.
Cannabis legalization is sweeping over North America â 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 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. | For a long time, Cronos Group (NASDAQ: CRON) was unable to climb higher than third place among Canadian cannabis producers based on market cap. It teamed up with Ginkgo Bioworks to develop a method for producing high-quality cannabinoids at scale via the use of genetically engineered yeast. In particular, it focused on the huge U.S. market opportunity by forging a deal to acquire Acreage Holdings at whatever point it becomes federally permissible to sell cannabis in the U.S. At this point, Canopy can't operate cannabis businesses in this country and retain its listing on a major U.S. stock exchange while marijuana remains illegal at the federal level. Canopy's relationship with Constellation has also made a difference in Canada. | While the COVID-19 pandemic has been a drag on CBD product sales, Cronos could be poised for accelerated growth over the next few years. The case for Canopy Growth Canopy Growth landed a major equity partner well before Cronos Group did. In addition to its leading share in the cannabis beverages market, Canopy claims the second-highest market share in Canada's medical cannabis market and ranks in the top three in recreational marijuana markets in most of the country's provinces. | The case for Canopy Growth Canopy Growth landed a major equity partner well before Cronos Group did. In particular, it focused on the huge U.S. market opportunity by forging a deal to acquire Acreage Holdings at whatever point it becomes federally permissible to sell cannabis in the U.S. At this point, Canopy can't operate cannabis businesses in this country and retain its listing on a major U.S. stock exchange while marijuana remains illegal at the federal level. Canopy's relationship with Constellation has also made a difference in Canada. In addition to its leading share in the cannabis beverages market, Canopy claims the second-highest market share in Canada's medical cannabis market and ranks in the top three in recreational marijuana markets in most of the country's provinces. | You could argue, though, that the Lord Jones acquisition might not have happened were it not for Altria's big investment. In addition to its leading share in the cannabis beverages market, Canopy claims the second-highest market share in Canada's medical cannabis market and ranks in the top three in recreational marijuana markets in most of the country's provinces. Better marijuana stock? |
37261.0 | 2020-09-24 00:00:00 UTC | Tilray Stock Set To Soar If Biden Wins On November 3 | ACB | https://www.nasdaq.com/articles/tilray-stock-set-to-soar-if-biden-wins-on-november-3-2020-09-24 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I’ve been waiting for this moment for years: the potential to earn 1,000x returns on Tilray (NASDAQ:TLRY) stock and the legal marijuana market. And with the 2020 election around the corner, right now could be the perfect time to buy into this beaten-down growth industry.
Source: Shutterstock
Please don’t think that I’m being glib or taking this lightly. I’m a huge skeptic of emerging growth companies when they can hurt investors.
But Tilray is different. That’s because the company’s future hinges on two competing marijuana bills making their way through the U.S. Senate. The Republican-backed option means near-certain death for the industry, while the Democrat-backed one looks a lot like the 21st Amendment, which ended alcohol prohibition.
Investors with insight into the 2020 elections should place their bets now. TLRY stock might be off to the races on November 3.
TLRY Stock Desperately Needs a Democrat Victory
Marijuana investors have had a terrible year. Tilray stock, among other Canadian cannabis companies, has dropped almost 70% since the start of the year, and that’s on top of the 89% loss from the 14 months before.
The 7 Best Semiconductor Stocks to Buy Today
For all of Donald Trump’s popularity among Republican voters, the Republican-controlled Senate has been unapologetically anti-marijuana. Today, America has a patchwork of cannabis regulations that essentially locks out Canadian companies.
The drug remains a Schedule I narcotic, so public companies can’t touch cannabis in the U.S. without fear of getting delisted. That’s why even states with legal recreational marijuana, such as California and Colorado, rely on thousands of small mom-and-pop outfits to produce and sell weed.
And Canadian marijuana companies need the U.S. market.
The Canadian Marijuana Market: Too Small for the Large Players
When Canada legalized recreational marijuana in 2016, young companies went on an expansion bonanza. Today, a handful of large companies compete in the market. Among these are:
Tilray
Canopy Growth (NYSE:CGC)
Aurora Cannabis (NYSE:ACB)
Cronos Group (NASDAQ:CRON)
Aphria (NASDAQ:APHA)
There’s just one problem: the Canadian market turned out to be far too small, particularly for Tilray. In 2019, Canadians spent only $5.9 billion on marijuana, or less than 10% of what Americans did.
At their peak, however, the five Canadian companies were worth over $40 billion combined. Tilray itself was worth $12 billion. That’s a princely sum for an industry where gross margins are even lower than in the mining industry.
Tilray’s management understood the stakes — they expanded aggressively in adjacent markets, such as medical marijuana in Europe, Canada, Australia and New Zealand. But they couldn’t gain the requisite scale. In 2019, the company lost $60 million on sales of just $388 million.
Other pot companies have only compounded the problem. In August, Aurora Cannabis closed all but four of its 18 plants on oversupply concerns. But it was too late: the expansion had already flooded the Canadian market with too much cannabis. In Q2, Tilray reported its average selling price per gram had plummeted from $4.61 to $2.64. In response, shares nosedived 35%.
The Republican Party Promises Four More Years
Between the coronavirus pandemic and the 2020 election, the U.S. Senate has largely sidelined most federal marijuana legislation efforts. Only one bill has made it anywhere: the Strengthening the Tenth Amendment Through Entrusting States Act of 2019 (STATES Act), which promises to remove the drug from the Controlled Substances Act.
But there’s a catch. Unless a state fully legalizes marijuana, the drug will remain an entirely prohibited Schedule I narcotic. In other words, the bill will delegate final authority to individual states. It’s a move Donald Trump has publicly endorsed, and won’t fundamentally change current laws.
While on the face of it, this opens some doors for publicly-traded marijuana companies, Canadian marijuana companies will still struggle to do business in the U.S. under patchwork regulation.
Democratic Legislation Would Be A Win for Tilray
That’s why Tilray’s hopes rest on a Democratic win in 2020. Specifically, they need a lesser-known bill to pass: the Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019. The bill, sponsored by Senator Kamala Harris (yes, the Vice-Presidential nominee), fully decriminalizes marijuana at the federal level and will likely allow Tilray and its Canadian counterparts to enter the U.S. market finally.
There’s just one problem. The bill will also need a Democrat-controlled Senate to pass. Republican Senate majority leader Mitch McConnell is a staunch opponent of marijuana legalization, and even has a history of voting against his fellow Republicans on decriminalization laws.
Could a Republican minority still filibuster a Democratic Senate? Certainly. Even with their current polling leads, Democrats have a low chance of reaching a 60-seat filibuster-proof majority.
But will they? Perhaps not. Republicans from Colorado to Ohio have already backed other marijuana-legalization reform laws.
Tilray: The Big Winner of Biden 2020
That’s particularly good news for Tilray. If the U.S. legalizes marijuana, Tilray will outperform for three reasons:
1. High operating leverage. The company is a higher-cost producer of marijuana, which means price increases will have an outsized effect on gross margins. In 2019, the company had $2.36 cash costs per gram of marijuana.
2. Focus on cultivation. Tilray has focused on selling dried cannabis and hemp, rather than cannabis oils and vapes. That makes its financial situation particularly sensitive to demand, since dried cannabis has a 6 to 12 month shelf-life.
3. Financial leverage. Tilray has an outsized $475 million convertible note due in 2023. With just $137 million in cash and negative cash flow, the company will need to show better health to refinance upcoming debts.
In other words, Tilray sits on the edge of either bankruptcy or massive success. There’s not much in between.
What’s TLRY Stock Worth If Biden Wins?
According to SEC filings, Tilray currently has 3.3 million square feet of production space, which can be ramped up to as much as 8.1 million square feet.
Assuming a mid-range yield of 40g per square foot and wholesale cannabis prices of $3 per gram, that means the company could produce almost $1.0 billion in gross revenues at the wholesale level. Considering Americans spend nearly $70 billion on marijuana per year, there’s a good chance Tilray could even increase cultivation.
Considering a 10-year two-stage discounted cash flow (DCF) model sheds some light on possible outcomes.
Assuming revenues of $6.0 billion by 2029 and an EBITDA margin of 40% (about the same as branded tobacco companies), fair value for Tilray comes to $93, a 1,670% upside. That’s still lower than its peak 2018 value of $148, suggesting even further potential upside.
In the worst-case legalization scenario, I assume Tilray generates $3 billion by 2029 and an EBITDA margin of 23% (midway between commoditized mining companies and branded tobacco companies).
In that case, fair value for Tilray comes to $22.50, a 326% upside. That’s still a quite good outcome.
What Should Investors Do?
This summer, investors anticipating a Democrat-controlled White House and Senate have loaded up on firearm and ammunition stocks. Gunmaker Smith & Wesson (NASDAQ:SWBI) is up 132% this year, as customers have rushed to buy firearms.
Yet as the Obama years showed, panic gun-buying only provide a temporary sales boost. Shares of Smith & Wesson dropped almost 90% in the year following Obama’s election as stockpiling demand dried up.
Investors looking for a longer-term play for a Biden win should look no further than the legal marijuana industry. Even if Biden doesn’t support the MORE Act, his running mate, Kamala Harris, will make it harder and harder for the presidential hopeful to ignore.
On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.
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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. | Among these are: Tilray Canopy Growth (NYSE:CGC) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Aphria (NASDAQ:APHA) There’s just one problem: the Canadian market turned out to be far too small, particularly for Tilray. Tilray’s management understood the stakes — they expanded aggressively in adjacent markets, such as medical marijuana in Europe, Canada, Australia and New Zealand. The Republican Party Promises Four More Years Between the coronavirus pandemic and the 2020 election, the U.S. Senate has largely sidelined most federal marijuana legislation efforts. | Among these are: Tilray Canopy Growth (NYSE:CGC) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Aphria (NASDAQ:APHA) There’s just one problem: the Canadian market turned out to be far too small, particularly for Tilray. The Canadian Marijuana Market: Too Small for the Large Players When Canada legalized recreational marijuana in 2016, young companies went on an expansion bonanza. Unless a state fully legalizes marijuana, the drug will remain an entirely prohibited Schedule I narcotic. | Among these are: Tilray Canopy Growth (NYSE:CGC) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Aphria (NASDAQ:APHA) There’s just one problem: the Canadian market turned out to be far too small, particularly for Tilray. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve been waiting for this moment for years: the potential to earn 1,000x returns on Tilray (NASDAQ:TLRY) stock and the legal marijuana market. While on the face of it, this opens some doors for publicly-traded marijuana companies, Canadian marijuana companies will still struggle to do business in the U.S. under patchwork regulation. | Among these are: Tilray Canopy Growth (NYSE:CGC) Aurora Cannabis (NYSE:ACB) Cronos Group (NASDAQ:CRON) Aphria (NASDAQ:APHA) There’s just one problem: the Canadian market turned out to be far too small, particularly for Tilray. But Tilray is different. And Canadian marijuana companies need the U.S. market. |
37262.0 | 2020-09-24 00:00:00 UTC | CANADA STOCKS-TSX drops as pandemic aid fails to offset virus worries | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-drops-as-pandemic-aid-fails-to-offset-virus-worries-2020-09-24 | nan | nan | Updates with sectors
Sept 24 (Reuters) - Canada's main stock index fell at the open on Thursday as a second wave of coronavirus infections dented optimism around an economic revival, while the government's pledge to boost public spending had little effect on investor sentiment.
* At 9:45 a.m. ET (1345 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 51.15 points, or 0.32%, at 15,765.96.
* The Canadian dollar weakened to a seven-week low against the greenback as investors worried about another global economic hit from the coronavirus pandemic and Ottawa's pledge of further economic aid failed to lift the currency.
* The energy sector .SPTTEN dropped 1.6% as U.S. crude CLc1 prices were down 0.3% a barrel, while Brent crude LCOc1 lost 0.4%. O/R
* The financials sector .SPTTFS slipped 0.3%. The industrials sector .GSPTTIN fell 0.5%.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 0.1% as gold futures GCc1 fell 0.5% to $1,851.5 an ounce. GOL/MET/L
* On the TSX, 38 issues were higher, while 180 issues declined for a 4.74-to-1 ratio to the downside, with 20.45 million shares traded.
* The largest percentage gainers on the TSX were BlackBerry Ltd BB.TO, which jumped 6.7% after it beat earnings estimates and InterRent Reit IIP_u.TO, which rose 2%.
* Aurora Cannabis ACB.TO fell 5.9%, the most on the TSX, while the second biggest decliner was Ballard Power Systems BLDP.TO, down 5.3%.
* The most heavily traded shares by volume were Just Energy Group JE.TO, BlackBerry Ltd BB.TO and Bombardier Inc >.
* The TSX posted two new 52-week highs and one new low.
* Across all Canadian issues there were five new 52-week highs and 10 new lows, with total volume of 49.36 million shares.
(Reporting by Shashank Nayar in Bengaluru; Editing by Ramakrishnan M and Shailesh Kuber)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * Aurora Cannabis ACB.TO fell 5.9%, the most on the TSX, while the second biggest decliner was Ballard Power Systems BLDP.TO, down 5.3%. Updates with sectors Sept 24 (Reuters) - Canada's main stock index fell at the open on Thursday as a second wave of coronavirus infections dented optimism around an economic revival, while the government's pledge to boost public spending had little effect on investor sentiment. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 0.1% as gold futures GCc1 fell 0.5% to $1,851.5 an ounce. | * Aurora Cannabis ACB.TO fell 5.9%, the most on the TSX, while the second biggest decliner was Ballard Power Systems BLDP.TO, down 5.3%. Updates with sectors Sept 24 (Reuters) - Canada's main stock index fell at the open on Thursday as a second wave of coronavirus infections dented optimism around an economic revival, while the government's pledge to boost public spending had little effect on investor sentiment. GOL/MET/L * On the TSX, 38 issues were higher, while 180 issues declined for a 4.74-to-1 ratio to the downside, with 20.45 million shares traded. | * Aurora Cannabis ACB.TO fell 5.9%, the most on the TSX, while the second biggest decliner was Ballard Power Systems BLDP.TO, down 5.3%. Updates with sectors Sept 24 (Reuters) - Canada's main stock index fell at the open on Thursday as a second wave of coronavirus infections dented optimism around an economic revival, while the government's pledge to boost public spending had little effect on investor sentiment. * The Canadian dollar weakened to a seven-week low against the greenback as investors worried about another global economic hit from the coronavirus pandemic and Ottawa's pledge of further economic aid failed to lift the currency. | * Aurora Cannabis ACB.TO fell 5.9%, the most on the TSX, while the second biggest decliner was Ballard Power Systems BLDP.TO, down 5.3%. The industrials sector .GSPTTIN fell 0.5%. GOL/MET/L * On the TSX, 38 issues were higher, while 180 issues declined for a 4.74-to-1 ratio to the downside, with 20.45 million shares traded. |
37263.0 | 2020-09-24 00:00:00 UTC | The High-Growth Industry Robinhood Investors Are Missing Out On | ACB | https://www.nasdaq.com/articles/the-high-growth-industry-robinhood-investors-are-missing-out-on-2020-09-24 | nan | nan | This has been an unforgettable year for Wall Street and investors. We've watched the CBOE Volatility Index climb to its highest reading of all time, observed the quickest bear market decline (of at least 30%) in history, and seen the quickest rally from a bear market bottom to fresh highs on record.
While volatility is always present in the market, the coronavirus disease 2019 (COVID-19) pandemic has created unprecedented uncertainty -- and it's this uncertainty that's led to Wall Street's wild vacillations.
For long-term investors, these crazy swings are opportunities to scoop up quality companies on the cheap. But they've also brought short-term traders and speculators out of the woodwork. Online investing app Robinhood has attracted millions of members, many of whom are young and/or novice investors.
Image source: Getty Images.
Robinhood investors are unable to invest in this huge growth opportunity
Although these young investors have shown a penchant for penny stocks and a handful of awful companies, they've also taken quite a liking to high-growth industries. Some of the most popular holdings for Robinhood members include cloud stocks and electric vehicle manufacturers. But little do Robinhood investors know that they're completely missing out on the best part of one of the fastest-growing industries on the planet: marijuana.
Over the next decade, cannabis is expected to be a premier growth industry. After registering just shy of $11 billion in global legal sales in 2018, Wall Street analysts have pegged that sales figure at anywhere from $50 billion to $200 billion by 2030. The range is so broad because there is no comparable precedent for a legalized marijuana industry, and therefore no true idea how much illicit retail is going on behind the scenes that could be moved into legalized channels.
Robinhood investors do have access to cannabis. Unfortunately, they've drawn the short end of the stick.
Image source: Getty Images.
U.S. pot stocks are a no-go for Robinhood members
You see, Robinhood places no restrictions on its members when it comes to buying and selling penny stocks (companies under $5 a share and/or with very small market caps). The one catch is that they must be listed on the New York Stock Exchange (NYSE) or Nasdaq stock exchange. Companies that are listed on the over-the-counter (OTC) exchange can't be bought on the Robinhood platform.
A quick look at Robinhood's leaderboard (i.e., the most-held stocks on the platform) shows that five Canadian licensed producers have made the top 70 holdings: Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), Cronos Group (NASDAQ: CRON), Aphria, and Tilray. Although these companies have a physical presence in the U.S. hemp or cannabidiol industry, they aren't retailing any tetrahydrocannabinol (THC)-containing pot products on U.S. soil. Therefore, they're not violating the U.S. government's Schedule I classification on marijuana and can be listed on the NYSE or Nasdaq, assuming they meet each exchange's continued listing standards.
By comparison, U.S. multistate operators (MSO) that are cultivating, processing, distributing, and retailing marijuana are doing so in violation of federal law. Although the federal government is maintaining a hands-off approach and allowing legalized states to regulate their own pot industries, all direct marijuana players in the U.S. are currently barred from uplisting to the NYSE or Nasdaq -- and will remain so, absent a change to marijuana's scheduling at the federal level. This means Robinhood investors can't buy U.S.-focused pot stocks.
Image source: Getty Images.
Robinhood investors are left with only poor choices
Given a choice between the U.S. and Canada, the U.S. is a no-brainer buy for investors. Yet, for Robinhood members, their only acceptable choice at the moment is to invest in Canadian licensed producers, which aren't particularly appealing.
Aurora Cannabis is, by far, the most popular of the group, but has lost more than 90% of its value since mid-March 2019, through this past weekend. Aurora did name a new CEO a little over two weeks ago. The company has also been willingly slashing costs in an effort to backpedal its way into profitability. However, it's written down close to $3 billion Canadian this calendar year alone. It has also frequently pushed back the goalpost for achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
As for Canopy Growth and Cronos Group, the two most cash-rich marijuana stocks in North America, the bleeding simply hasn't come close to stopping. Canopy's relatively new CEO, David Klein, has significantly reduced share-based compensation and halted acquisition activity. But losses for the biggest marijuana stock by market cap haven't come down fast enough. If not for yet another equity investment from Constellation Brands in early May, Canopy's cash pile would have eroded by CA$3 billion in under two years.
As for Cronos Group, it's had virtually no luck with its derivative-focused product lineup. The launch of these higher-margin products was delayed in Canada until mid-December, and regulatory-based supply issues have added to the problem. Further, Cronos' dreams of becoming a vape product superstar have stalled due to health concerns about vaping.
There simply aren't any smart ways for Robinhood investors to take advantage of the fast-growing marijuana industry.
Image source: Getty Images.
Solution? Consider opening a second brokerage account
While Robinhood's commission-free trades, lack of account minimum balance, and gifts of free stock for new users can be alluring, the inability to buy OTC stocks is a killer if you're trying to buy into high-quality marijuana stocks. The best solution might just be to open a separate account at another brokerage that does allow OTC transactions.
Canadian pot stocks are losing money hand over fist, and they've been constrained by the regulatory miscues of Health Canada and provincial regulators. Meanwhile, a number of U.S. MSOs are already profitable or nearing the turn to recurring profitability.
For example, why would anyone willingly invest in Aurora Cannabis when they could purchase the fast-growing Trulieve Cannabis (OTC: TCNNF)? Trulieve is the most nominally profitable marijuana stock in North America. It's opened 60 retail locations, 58 of which are in Florida. Trulieve's laser focus has allowed it to gobble up roughly half of the Sunshine State's medical marijuana market share, all while keeping its own marketing expenses relatively low. In just the first six months of 2020, Trulieve has generated almost $90 million in operating income, without fair-value adjustments or one-time benefits skewing the results.
You could also buy Green Thumb Industries (OTC: GTBIF), which is generating close to two-thirds of its revenue from high-margin derivatives (e.g., vapes, beverages, and edibles). Green Thumb has opened four dozen retail locations around the country, but has enough licenses to double its presence to 96 dispensaries in a dozen states. The company's presence in Illinois and Nevada should prove especially fruitful.
It's a shame that Robinhood's millions of members are missing out on this high-growth 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 – 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 Cboe Global Markets Inc, Constellation Brands, and Green Thumb Industries. 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. | A quick look at Robinhood's leaderboard (i.e., the most-held stocks on the platform) shows that five Canadian licensed producers have made the top 70 holdings: Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), Cronos Group (NASDAQ: CRON), Aphria, and Tilray. As for Canopy Growth and Cronos Group, the two most cash-rich marijuana stocks in North America, the bleeding simply hasn't come close to stopping. Canadian pot stocks are losing money hand over fist, and they've been constrained by the regulatory miscues of Health Canada and provincial regulators. | A quick look at Robinhood's leaderboard (i.e., the most-held stocks on the platform) shows that five Canadian licensed producers have made the top 70 holdings: Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), Cronos Group (NASDAQ: CRON), Aphria, and Tilray. This means Robinhood investors can't buy U.S.-focused pot stocks. The Motley Fool owns shares of and recommends Cboe Global Markets Inc, Constellation Brands, and Green Thumb Industries. | A quick look at Robinhood's leaderboard (i.e., the most-held stocks on the platform) shows that five Canadian licensed producers have made the top 70 holdings: Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), Cronos Group (NASDAQ: CRON), Aphria, and Tilray. Robinhood investors are unable to invest in this huge growth opportunity Although these young investors have shown a penchant for penny stocks and a handful of awful companies, they've also taken quite a liking to high-growth industries. U.S. pot stocks are a no-go for Robinhood members You see, Robinhood places no restrictions on its members when it comes to buying and selling penny stocks (companies under $5 a share and/or with very small market caps). | A quick look at Robinhood's leaderboard (i.e., the most-held stocks on the platform) shows that five Canadian licensed producers have made the top 70 holdings: Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), Cronos Group (NASDAQ: CRON), Aphria, and Tilray. U.S. pot stocks are a no-go for Robinhood members You see, Robinhood places no restrictions on its members when it comes to buying and selling penny stocks (companies under $5 a share and/or with very small market caps). This means Robinhood investors can't buy U.S.-focused pot stocks. |
37264.0 | 2020-09-23 00:00:00 UTC | TSX falls on virus worries, downbeat U.S. economic data | ACB | https://www.nasdaq.com/articles/tsx-falls-on-virus-worries-downbeat-u.s.-economic-data-2020-09-23 | nan | nan | Updates with sectors
Sept 23 (Reuters) - Canada's main stock index fell in early trade on Wednesday as a surge in domestic coronavirus cases and downbeat U.S. business activity in September dented investor sentiment.
Prime Minister Justin Trudeau will unveil later in the day what he says is a far-reaching plan to help the economy recover from the coronavirus pandemic while ensuring efforts to fight the outbreak do not falter.
* At 9:13 a.m. ET (1413 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 43.63 points, or 0.27%, at 16,099.26.
* Canada is at a "crossroads" in the fight against a second surge of COVID-19 infections, health officials said on Tuesday, when cases rose by 1,248 from the previous day.
* The Canadian dollar fell to a six-week low against its broadly stronger U.S. counterpart, as data showed euro zone business growth grinding to a halt this month and as investors awaited details of Ottawa's spending proposals.
* The energy sector .SPTTEN dropped 0.2% even as U.S. crude CLc1 prices were up 0.6% a barrel and Brent crude LCOc1 added 0.6%. O/R
* The financials .SPTTFS and industrials .GSPTTIN sectors gained 0.5% and 0.8%, respectively.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, lost 2.8% as gold futures GCc1 fell 1.2% to $1,875.5 an ounce. GOL/MET/L
* On the TSX, 70 issues were higher, while 148 issues declined for a 2.11-to-1 ratio to the downside, with 41.69 million shares traded.
* The largest percentage gainers on the TSX were Canada Goose Holdings GOOS.TO, which jumped 4.7%, and Brookfield Property Partners BPY_u.TO, which rose 2.5%.
* Aurora Cannabis ACB.TO fell 22.4%, the most on the TSX, after it forecast revenue below Street estimates, while the second biggest decliner was New Gold NGD.TO, down 9.0%
* The most heavily-traded shares by volume were Canadian Natural Resources CNQ.TO, Bombardier Inc BBDb.TO and Aurora Cannabis ACB.TO.
* The TSX posted four new 52-week highs and one new low.
* Across all Canadian issues there were eight new 52-week highs and six new lows, with total volume of 75.35 million shares.
(Reporting by Shashank Nayar in Bengaluru; Editing by Ramakrishnan M.)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * Aurora Cannabis ACB.TO fell 22.4%, the most on the TSX, after it forecast revenue below Street estimates, while the second biggest decliner was New Gold NGD.TO, down 9.0% * The most heavily-traded shares by volume were Canadian Natural Resources CNQ.TO, Bombardier Inc BBDb.TO and Aurora Cannabis ACB.TO. Updates with sectors Sept 23 (Reuters) - Canada's main stock index fell in early trade on Wednesday as a surge in domestic coronavirus cases and downbeat U.S. business activity in September dented investor sentiment. Prime Minister Justin Trudeau will unveil later in the day what he says is a far-reaching plan to help the economy recover from the coronavirus pandemic while ensuring efforts to fight the outbreak do not falter. | * Aurora Cannabis ACB.TO fell 22.4%, the most on the TSX, after it forecast revenue below Street estimates, while the second biggest decliner was New Gold NGD.TO, down 9.0% * The most heavily-traded shares by volume were Canadian Natural Resources CNQ.TO, Bombardier Inc BBDb.TO and Aurora Cannabis ACB.TO. Updates with sectors Sept 23 (Reuters) - Canada's main stock index fell in early trade on Wednesday as a surge in domestic coronavirus cases and downbeat U.S. business activity in September dented investor sentiment. GOL/MET/L * On the TSX, 70 issues were higher, while 148 issues declined for a 2.11-to-1 ratio to the downside, with 41.69 million shares traded. | * Aurora Cannabis ACB.TO fell 22.4%, the most on the TSX, after it forecast revenue below Street estimates, while the second biggest decliner was New Gold NGD.TO, down 9.0% * The most heavily-traded shares by volume were Canadian Natural Resources CNQ.TO, Bombardier Inc BBDb.TO and Aurora Cannabis ACB.TO. Updates with sectors Sept 23 (Reuters) - Canada's main stock index fell in early trade on Wednesday as a surge in domestic coronavirus cases and downbeat U.S. business activity in September dented investor sentiment. * The Canadian dollar fell to a six-week low against its broadly stronger U.S. counterpart, as data showed euro zone business growth grinding to a halt this month and as investors awaited details of Ottawa's spending proposals. | * Aurora Cannabis ACB.TO fell 22.4%, the most on the TSX, after it forecast revenue below Street estimates, while the second biggest decliner was New Gold NGD.TO, down 9.0% * The most heavily-traded shares by volume were Canadian Natural Resources CNQ.TO, Bombardier Inc BBDb.TO and Aurora Cannabis ACB.TO. Updates with sectors Sept 23 (Reuters) - Canada's main stock index fell in early trade on Wednesday as a surge in domestic coronavirus cases and downbeat U.S. business activity in September dented investor sentiment. * Canada is at a "crossroads" in the fight against a second surge of COVID-19 infections, health officials said on Tuesday, when cases rose by 1,248 from the previous day. |
37265.0 | 2020-09-23 00:00:00 UTC | Aurora Cannabis Earnings: Let’s Shed Some Light on That Pullback | ACB | https://www.nasdaq.com/articles/aurora-cannabis-earnings%3A-lets-shed-some-light-on-that-pullback-2020-09-23 | nan | nan | On Monday, shares of Aurora Cannabis (ACB) surged by 16% following an analyst upgrade and in anticipation of what investors hoped would be a positive earnings report to mark a turnaround from recent travails. However, the results followed what is by now a familiar story and on Tuesday, Aurora handed all the fresh gains back to the market with interest.
So, what happened? Although FQ4 revenue came in at C$72.11 million and beat the estimates by C$0.62 million, it still represented a year-over-year decline of 4.5% and a 5% drop from the previous quarter. Consumer revenue dropped by 9% from F3Q to F4Q. In contrast, during the same period, the Canadian adult-use market increased by 16%.
Aurora reported a net loss from continuing operations of CA$1.86 billion, far above the previous quarter’s net loss of CA$136.1 million. Overall, the company posted negative EBITDA of CA$34.6 million.
So far, so bad. But it gets worse...
Aurora’s F1Q guidance is for C$60 to C$64 million in total cannabis revenue which implies a double-digit sequential decline is on the way.
Aurora, however, has been trying to steady the leaking ship, meaningfully cutting back on SG&A expenses. Additionally, after waving farewell to two CEO’s in 2020, this was Aurora’s first earnings report since the appointment of new CEO Miguel Martin.
For Needham analyst Matt McGinley, the quarter’s good news is that the company’s restructuring is now complete. And the bad news? McGinley’s analysis indicates Martin has a lot on his plate if the company is to achieve its goal of turning EBITDA positive in F2Q21.
“The tactical plan is to refocus on premium products, extracts, and to use better data insights to drive higher gross margin dollars. The challenge is that on the cusp of F2Q21, this plan hasn’t been launched and requires a portfolio reset, all while meeting positive EBITDA covenants that start at $4mn in 2Q and rise to $17mn in 4Q (compared to a $(34)mn loss in 4Q20). Simply put, a lot needs to go right in the next few months for ACB in terms of product for its revenue and margin to meet positive EBITDA covenants in F2Q,” the 5-star commented.
As a result, McGinley stays on the sidelines with a Hold rating, without suggesting a fixed price target. (To watch McGinley’s track record, click here)
Turning now to the rest of the Street, where based on 1 Buy and 10 Holds, the analyst consensus also rates Aurora a Hold. However, the rating might as well say Buy, as the average price target clocks in at C$12.1 ($9.09) and implies shares will rise by 53% over the next 12 months. (See ACB 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. | On Monday, shares of Aurora Cannabis (ACB) surged by 16% following an analyst upgrade and in anticipation of what investors hoped would be a positive earnings report to mark a turnaround from recent travails. Simply put, a lot needs to go right in the next few months for ACB in terms of product for its revenue and margin to meet positive EBITDA covenants in F2Q,” the 5-star commented. (See ACB 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. | Simply put, a lot needs to go right in the next few months for ACB in terms of product for its revenue and margin to meet positive EBITDA covenants in F2Q,” the 5-star commented. (See ACB 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. On Monday, shares of Aurora Cannabis (ACB) surged by 16% following an analyst upgrade and in anticipation of what investors hoped would be a positive earnings report to mark a turnaround from recent travails. | (See ACB 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. On Monday, shares of Aurora Cannabis (ACB) surged by 16% following an analyst upgrade and in anticipation of what investors hoped would be a positive earnings report to mark a turnaround from recent travails. Simply put, a lot needs to go right in the next few months for ACB in terms of product for its revenue and margin to meet positive EBITDA covenants in F2Q,” the 5-star commented. | Simply put, a lot needs to go right in the next few months for ACB in terms of product for its revenue and margin to meet positive EBITDA covenants in F2Q,” the 5-star commented. On Monday, shares of Aurora Cannabis (ACB) surged by 16% following an analyst upgrade and in anticipation of what investors hoped would be a positive earnings report to mark a turnaround from recent travails. (See ACB 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. |
37266.0 | 2020-09-23 00:00:00 UTC | CANADA STOCKS - TSX falls 2.02% to 15,817.11 | ACB | https://www.nasdaq.com/articles/canada-stocks-tsx-falls-2.02-to-15817.11-2020-09-23 | nan | nan | * The Toronto Stock Exchange's TSX falls 2.02 percent to 15,817.11
* Leading the index were Canadian Tire Corporation Ltd , up 3.3%, Canada Goose Holdings Inc GOOS.TO, up 2.6%, and Magna International Inc MG.TO, higher by 2.1%.
* Lagging shares were Aurora Cannabis Inc ACB.TO, down 29.1%, Fortuna Silver Mines Inc FVI.TO, down 12.5%, and New Gold Inc NGD.TO, lower by 12.3%.
* On the TSX 16 issues rose and 205 fell as a 0.1-to-1 ratio favored decliners. There were 4 new highs and 1 new low, with total volume of 222.7 million shares.
* The most heavily traded shares by volume were Canadian Natural Resources Ltd CNQ.TO, Kinross Gold Corp K.TO and Aurora Cannabis Inc ACB.TO.
* The TSX's energy group .SPTTEN fell 1.69 points, or 2.5%, while the financials sector .SPTTFS slipped 3.16 points, or 1.2%.
* West Texas Intermediate crude futures CLc1 fell 0.53%, or $0.21, to $39.59 a barrel. Brent crude LCOc1 fell 0.6%, or $0.25, to $41.47 O/R
* The TSX is off 7.3% 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 29.1%, Fortuna Silver Mines Inc FVI.TO, down 12.5%, and New Gold Inc NGD.TO, lower by 12.3%. * The most heavily traded shares by volume were Canadian Natural Resources Ltd CNQ.TO, Kinross Gold Corp K.TO and Aurora Cannabis Inc ACB.TO. * The Toronto Stock Exchange's TSX falls 2.02 percent to 15,817.11 * Leading the index were Canadian Tire Corporation Ltd , up 3.3%, Canada Goose Holdings Inc GOOS.TO, up 2.6%, and Magna International Inc MG.TO, higher by 2.1%. | * Lagging shares were Aurora Cannabis Inc ACB.TO, down 29.1%, Fortuna Silver Mines Inc FVI.TO, down 12.5%, and New Gold Inc NGD.TO, lower by 12.3%. * The most heavily traded shares by volume were Canadian Natural Resources Ltd CNQ.TO, Kinross Gold Corp K.TO and Aurora Cannabis Inc ACB.TO. * The TSX's energy group .SPTTEN fell 1.69 points, or 2.5%, while the financials sector .SPTTFS slipped 3.16 points, or 1.2%. | * The most heavily traded shares by volume were Canadian Natural Resources Ltd CNQ.TO, Kinross Gold Corp K.TO and Aurora Cannabis Inc ACB.TO. * Lagging shares were Aurora Cannabis Inc ACB.TO, down 29.1%, Fortuna Silver Mines Inc FVI.TO, down 12.5%, and New Gold Inc NGD.TO, lower by 12.3%. * The Toronto Stock Exchange's TSX falls 2.02 percent to 15,817.11 * Leading the index were Canadian Tire Corporation Ltd , up 3.3%, Canada Goose Holdings Inc GOOS.TO, up 2.6%, and Magna International Inc MG.TO, higher by 2.1%. | * The most heavily traded shares by volume were Canadian Natural Resources Ltd CNQ.TO, Kinross Gold Corp K.TO and Aurora Cannabis Inc ACB.TO. * Lagging shares were Aurora Cannabis Inc ACB.TO, down 29.1%, Fortuna Silver Mines Inc FVI.TO, down 12.5%, and New Gold Inc NGD.TO, lower by 12.3%. * The Toronto Stock Exchange's TSX falls 2.02 percent to 15,817.11 * Leading the index were Canadian Tire Corporation Ltd , up 3.3%, Canada Goose Holdings Inc GOOS.TO, up 2.6%, and Magna International Inc MG.TO, higher by 2.1%. |
37267.0 | 2020-09-23 00:00:00 UTC | Why Canopy Growth Stock Is Sliding Today | ACB | https://www.nasdaq.com/articles/why-canopy-growth-stock-is-sliding-today-2020-09-23 | nan | nan | What happened
Shares of Canopy Growth (NYSE: CGC) were sliding 6.7% lower as of 11:27 a.m. EDT on Wednesday. The Canadian cannabis producer announced earlier in the morning that it and Acreage Holdings (OTC: ACRGF) had implemented an amended agreement to clear the way for an acquisition of Acreage when federally permissible in the U.S. However, the more likely reason behind today's decline is that investors are souring on Canadian marijuana stocks after Aurora Cannabis (NYSE: ACB) reported dismal fiscal 2020 Q4 results Tuesday evening.
So what
It doesn't seem likely that Canopy's deal with Acreage is pulling the Canadian pot stock down. The amended agreement is better for Canopy than it is for Acreage, yet Acreage's share price isn't down nearly as much as Canopy's shares are today.
Image source: Getty Images.
On the other hand, Aurora's ugly Q4 update appears to be weighing on most of the top Canadian marijuana stocks. But does Aurora's performance hint at problems for Canopy Growth? Probably not.
Aurora posted a quarter-over-quarter revenue decline, recorded a massive write-off for goodwill impairment charges, and provided disappointing guidance for fiscal 2021 Q1. Canopy, however, gave investors some reasons to be optimistic about the future in its latest quarterly update.
Investors shouldn't place too much emphasis on the volatility with Canopy's share price. What really matters is how the company executes on its strategy to deliver revenue growth and make progress toward achieving profitability.
Now what
It will be another couple of months before Canopy announces its fiscal 2021 Q2 results. But there's another potential catalyst on the way before then: the U.S. elections in November.
The outcome of those elections could be critical in how soon marijuana legalization occurs at the federal level. If Democrats regain control of the Senate and the White House, Canopy Growth's shares will almost certainly soar.
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. | However, the more likely reason behind today's decline is that investors are souring on Canadian marijuana stocks after Aurora Cannabis (NYSE: ACB) reported dismal fiscal 2020 Q4 results Tuesday evening. Aurora posted a quarter-over-quarter revenue decline, recorded a massive write-off for goodwill impairment charges, and provided disappointing guidance for fiscal 2021 Q1. 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. | However, the more likely reason behind today's decline is that investors are souring on Canadian marijuana stocks after Aurora Cannabis (NYSE: ACB) reported dismal fiscal 2020 Q4 results Tuesday evening. So what It doesn't seem likely that Canopy's deal with Acreage is pulling the Canadian pot stock down. The amended agreement is better for Canopy than it is for Acreage, yet Acreage's share price isn't down nearly as much as Canopy's shares are today. | However, the more likely reason behind today's decline is that investors are souring on Canadian marijuana stocks after Aurora Cannabis (NYSE: ACB) reported dismal fiscal 2020 Q4 results Tuesday evening. The amended agreement is better for Canopy than it is for Acreage, yet Acreage's share price isn't down nearly as much as Canopy's shares 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. | However, the more likely reason behind today's decline is that investors are souring on Canadian marijuana stocks after Aurora Cannabis (NYSE: ACB) reported dismal fiscal 2020 Q4 results Tuesday evening. The amended agreement is better for Canopy than it is for Acreage, yet Acreage's share price isn't down nearly as much as Canopy's shares 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. |
37268.0 | 2020-09-23 00:00:00 UTC | Why Aurora Cannabis Stock Is Sinking Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-is-sinking-today-2020-09-23 | nan | nan | What happened
Shares of the Canadian pot company Aurora Cannabis (NYSE: ACB) are poised for a rough day. The company's shares dropped by as much as 18% in pre-market trading Wednesday morning in response to its disappointing fiscal 2020 fourth-quarter results released after the closing bell yesterday.
Aurora's stock is thus set to give back all of its hefty gains from Tuesday's trading session. Speculators poured into this small-cap pot stock yesterday with the hope that the company would report better-than-expected Q4 results. That optimistic scenario failed to materialize, triggering today's double-digit decline ahead of the opening bell.
Image source: Getty Images.
So what
While Aurora's Q4 report contained a number of problematic areas such as a 1.8 billion Canadian dollar goodwill impairment charge, the key figure that appears to be hurting its stock the most this morning is the company's underwhelming outlook for the fiscal first quarter of 2021.
Specifically, Aurora is projecting Q1 cannabis revenue of between CA$60 million and CA$64 million. This dismal quarterly revenue forecast -- if it comes true -- would represent a sequential decline in total cannabis net revenue of between 5.3% and 11.2%. Negative revenue growth obviously isn't what investors signed up for when they bought Aurora's stock.
Now what
Should bargain hunters take advantage of this latest dip in Aurora's shares? Unfortunately, the answer seems to be a solid no. The pot company's growth story hasn't gone according to plan, to put it mildly. What's more, the lucrative U.S. cannabis market is likely to remain off-limits -- for the most part -- for the better part of the current decade. Neither the Democratic presidential nominee Joe Biden nor President Donald Trump appear eager to end the federal ban on cannabis, after all.
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 Shares of the Canadian pot company Aurora Cannabis (NYSE: ACB) are poised for a rough day. The company's shares dropped by as much as 18% in pre-market trading Wednesday morning in response to its disappointing fiscal 2020 fourth-quarter results released after the closing bell yesterday. So what While Aurora's Q4 report contained a number of problematic areas such as a 1.8 billion Canadian dollar goodwill impairment charge, the key figure that appears to be hurting its stock the most this morning is the company's underwhelming outlook for the fiscal first quarter of 2021. | What happened Shares of the Canadian pot company Aurora Cannabis (NYSE: ACB) are poised for a rough day. Specifically, Aurora is projecting Q1 cannabis revenue of between CA$60 million and CA$64 million. The pot company's growth story hasn't gone according to plan, to put it mildly. | What happened Shares of the Canadian pot company Aurora Cannabis (NYSE: ACB) are poised for a rough day. So what While Aurora's Q4 report contained a number of problematic areas such as a 1.8 billion Canadian dollar goodwill impairment charge, the key figure that appears to be hurting its stock the most this morning is the company's underwhelming outlook for the fiscal first quarter of 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. | What happened Shares of the Canadian pot company Aurora Cannabis (NYSE: ACB) are poised for a rough day. The company's shares dropped by as much as 18% in pre-market trading Wednesday morning in response to its disappointing fiscal 2020 fourth-quarter results released after the closing bell yesterday. The pot company's growth story hasn't gone according to plan, to put it mildly. |
37269.0 | 2020-09-23 00:00:00 UTC | The Scariest Number in Aurora Cannabis' Q4 Results | ACB | https://www.nasdaq.com/articles/the-scariest-number-in-aurora-cannabis-q4-results-2020-09-23 | nan | nan | Some investors apparently thought that Aurora Cannabis (NYSE: ACB) would report some good news in its results for the fourth quarter of fiscal 2020 ended June 30, 2020. Shares of the Canadian cannabis producer jumped nearly 16% on Tuesday ahead of the company's Q4 update.
But there wasn't any good news. On the contrary, Aurora's results were chock-full of negatives from the top line to the bottom line. There was one number in the company's update that was the scariest of them all.
Image source: Getty Images.
The bad -- but not the worst -- news
Aurora provided a sneak peek at its ugly Q4 results earlier this month. Investors were therefore already bracing for the company to write off 1.8 billion in Canadian dollars in goodwill impairment charges, which is exactly what Aurora did.
It also came as no surprise that Aurora Q4 net revenue and cannabis net revenue declined from the previous quarter. The company reported total net revenue in the fourth quarter of CA$72.1 million, down nearly 5% from Q3. Aurora recorded cannabis revenue in Q4 of CA$67.5 million, a 3% quarter-over-quarter drop.
The company didn't release its net loss in the business update a few weeks ago. However, investors anticipated a whopper -- and that's what they got. Aurora posted a Q4 net loss from continuing operations of nearly CA$1.9 billion. In the previous quarter, the cannabis producer recorded a net loss of "only" CA$136.1 million.
Aurora generated negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of CA$34.6 million. The company has a long way to go to achieve positive adjusted EBITDA as it has committed to do by fiscal 2021 Q2. However, there was a sliver of good news: Aurora's Q4 result wasn't as bad as its negative adjusted EBITDA of CA$50.4 million in the third quarter.
Aurora's scariest number
So what was the scariest number in Aurora's Q4 results if it wasn't a CA$1.9 billion loss? It came in the company's guidance.
Aurora projects cannabis net revenue in fiscal 2021 Q1 will be between CA$60 million and CA$64 million. The range is generally bad, but the lower figure is especially frightening. Why? Because the low end of Aurora's guidance reflects a sequential double-digit percentage of revenue decline.
Even if Aurora hits the upper end of its projected cannabis revenue range, it will be the second quarter in a row of decreasing sales. That's problematic, to say the least, particularly because after divesting its noncore subsidiaries earlier this year, all of Aurora's revenue will stem from its cannabis sales.
What's going on? Aurora Cannabis' new CEO, Miguel Martin, acknowledged that "Aurora has slipped from its top position in Canadian consumer," a reference to the Canadian recreational marijuana market. While the company does generate revenue in the medical cannabis markets in its home country and internationally, the recreational market in Canada remains Aurora's biggest opportunity.
Aurora has slashed its expenses significantly in an effort to reduce cash burn, but it counted on rising sales along the way to move toward profitability. The company's cost-cutting can only go so far before it becomes detrimental. Aurora's best hope of achieving success is to generate growth. It's failing miserably on that goal.
Repositioning
Martin stated that his top priority now is to "reposition the Canadian consumer business immediately." He outlined several steps to accomplish this, including expanding beyond the company's value flower brands by prioritizing its premium brands. Martin also said these efforts "will be shortly followed by strategic marketing and innovation efforts in concentrates and edibles."
All of that sounds good, but repositioning Aurora could be easier said than done. In the meantime, a dark cloud continues to hover over this marijuana stock. Investors hoping for a light at the end of the tunnel for Aurora didn't see much of a flicker in the company's latest quarterly update.
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. | Some investors apparently thought that Aurora Cannabis (NYSE: ACB) would report some good news in its results for the fourth quarter of fiscal 2020 ended June 30, 2020. However, there was a sliver of good news: Aurora's Q4 result wasn't as bad as its negative adjusted EBITDA of CA$50.4 million in the third quarter. Aurora has slashed its expenses significantly in an effort to reduce cash burn, but it counted on rising sales along the way to move toward profitability. | Some investors apparently thought that Aurora Cannabis (NYSE: ACB) would report some good news in its results for the fourth quarter of fiscal 2020 ended June 30, 2020. It also came as no surprise that Aurora Q4 net revenue and cannabis net revenue declined from the previous quarter. However, there was a sliver of good news: Aurora's Q4 result wasn't as bad as its negative adjusted EBITDA of CA$50.4 million in the third quarter. | Some investors apparently thought that Aurora Cannabis (NYSE: ACB) would report some good news in its results for the fourth quarter of fiscal 2020 ended June 30, 2020. Aurora's scariest number So what was the scariest number in Aurora's Q4 results if it wasn't a CA$1.9 billion loss? Aurora projects cannabis net revenue in fiscal 2021 Q1 will be between CA$60 million and CA$64 million. | Some investors apparently thought that Aurora Cannabis (NYSE: ACB) would report some good news in its results for the fourth quarter of fiscal 2020 ended June 30, 2020. The company didn't release its net loss in the business update a few weeks ago. However, there was a sliver of good news: Aurora's Q4 result wasn't as bad as its negative adjusted EBITDA of CA$50.4 million in the third quarter. |
37270.0 | 2020-09-23 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Predictive Oncology, Adicet Bio, Tesla, ZoomInfo Technologies | ACB | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-predictive-oncology-adicet-bio-tesla-zoominfo-technologies | 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
U.S. stock index futures rose on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N
At 7:03 ET, Dow e-minis 1YMc1 were up 0.88% at 27,383. S&P 500 e-minis ESc1 were up 0.56% at 3,317.75, while Nasdaq 100 e-minis NQc1 were up 0.43% at 11,197. The top three NYSE percentage gainers premarket .PRPG.N: ** ION Geophysical Corp , up 20.0% ** Tsakos Energy Navigation Ltd , up 18.2% ** Verso Corp , up 14.4% The top three NYSE percentage losers premarket .PRPL.N: ** Aurora Cannabis Inc , down 16% ** Precision Drilling Corp , down 11.6% ** Steelcase Inc , down 6.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Gores Holdings IV Inc , up 52.3% ** Predictive Oncology Inc , up 32.4% ** Adicet Bio Inc , up 25.9% The top three Nasdaq percentage losers premarket .PRPL.O: ** Wave Life Sciences Ltd , down 28% ** Usio Inc , down 19.8% ** Stitch Fix Inc , down 16.2% ** Predictive Oncology Inc POAI.O: up 32.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines
** Tesla Inc TSLA.O: down 5.8% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress
** Nike Inc NKE.N: up 12.6% premarket BUZZ-Street View: Sprinting faster than ever
** Adicet Bio Inc ACET.O: up 25.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering
L3N2GK2LY
** Aurora Cannabis Inc ACB.N: down 16.0% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH
** ZoomInfo Technologies Inc ZI.O: up 4.2% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects
L3N2GK2M5
** Wave Life Sciences Ltd WVE.O: down 28.0% premarket BUZZ-Plunges on equity offering
** Nanovibronix Inc NAOV.O: down 13.3% premarket BUZZ-Falls on $1.5 mln bought deal offering
** MediciNova Inc MNOV.O: up 15.3% premarket BUZZ-Up after potential COVID-19 vaccine shows promise in animal study
** Gores Holdings IV Inc GHIV.O: up 16.6% premarket BUZZ-Surges on deal to take United Wholesale public
(Compiled by Niket Nishant in Bengaluru)
((Niket.Nishant@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ** Aurora Cannabis Inc ACB.N: down 16.0% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.2% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects 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 U.S. stock index futures rose on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 7:03 ET, Dow e-minis 1YMc1 were up 0.88% at 27,383. The top three NYSE percentage gainers premarket .PRPG.N: ** ION Geophysical Corp , up 20.0% ** Tsakos Energy Navigation Ltd , up 18.2% ** Verso Corp , up 14.4% The top three NYSE percentage losers premarket .PRPL.N: ** Aurora Cannabis Inc , down 16% ** Precision Drilling Corp , down 11.6% ** Steelcase Inc , down 6.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Gores Holdings IV Inc , up 52.3% ** Predictive Oncology Inc , up 32.4% ** Adicet Bio Inc , up 25.9% The top three Nasdaq percentage losers premarket .PRPL.O: ** Wave Life Sciences Ltd , down 28% ** Usio Inc , down 19.8% ** Stitch Fix Inc , down 16.2% ** Predictive Oncology Inc POAI.O: up 32.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines ** Tesla Inc TSLA.O: down 5.8% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress ** Nike Inc NKE.N: up 12.6% premarket BUZZ-Street View: Sprinting faster than ever ** Adicet Bio Inc ACET.O: up 25.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering | ** Aurora Cannabis Inc ACB.N: down 16.0% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.2% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects 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 U.S. stock index futures rose on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 7:03 ET, Dow e-minis 1YMc1 were up 0.88% at 27,383. The top three NYSE percentage gainers premarket .PRPG.N: ** ION Geophysical Corp , up 20.0% ** Tsakos Energy Navigation Ltd , up 18.2% ** Verso Corp , up 14.4% The top three NYSE percentage losers premarket .PRPL.N: ** Aurora Cannabis Inc , down 16% ** Precision Drilling Corp , down 11.6% ** Steelcase Inc , down 6.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Gores Holdings IV Inc , up 52.3% ** Predictive Oncology Inc , up 32.4% ** Adicet Bio Inc , up 25.9% The top three Nasdaq percentage losers premarket .PRPL.O: ** Wave Life Sciences Ltd , down 28% ** Usio Inc , down 19.8% ** Stitch Fix Inc , down 16.2% ** Predictive Oncology Inc POAI.O: up 32.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines ** Tesla Inc TSLA.O: down 5.8% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress ** Nike Inc NKE.N: up 12.6% premarket BUZZ-Street View: Sprinting faster than ever ** Adicet Bio Inc ACET.O: up 25.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering | ** Aurora Cannabis Inc ACB.N: down 16.0% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.2% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects 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 U.S. stock index futures rose on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 7:03 ET, Dow e-minis 1YMc1 were up 0.88% at 27,383. The top three NYSE percentage gainers premarket .PRPG.N: ** ION Geophysical Corp , up 20.0% ** Tsakos Energy Navigation Ltd , up 18.2% ** Verso Corp , up 14.4% The top three NYSE percentage losers premarket .PRPL.N: ** Aurora Cannabis Inc , down 16% ** Precision Drilling Corp , down 11.6% ** Steelcase Inc , down 6.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Gores Holdings IV Inc , up 52.3% ** Predictive Oncology Inc , up 32.4% ** Adicet Bio Inc , up 25.9% The top three Nasdaq percentage losers premarket .PRPL.O: ** Wave Life Sciences Ltd , down 28% ** Usio Inc , down 19.8% ** Stitch Fix Inc , down 16.2% ** Predictive Oncology Inc POAI.O: up 32.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines ** Tesla Inc TSLA.O: down 5.8% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress ** Nike Inc NKE.N: up 12.6% premarket BUZZ-Street View: Sprinting faster than ever ** Adicet Bio Inc ACET.O: up 25.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering | ** Aurora Cannabis Inc ACB.N: down 16.0% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.2% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects 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 U.S. stock index futures rose on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 7:03 ET, Dow e-minis 1YMc1 were up 0.88% at 27,383. S&P 500 e-minis ESc1 were up 0.56% at 3,317.75, while Nasdaq 100 e-minis NQc1 were up 0.43% at 11,197. |
37271.0 | 2020-09-23 00:00:00 UTC | Is the U.S. Getting on Board With Marijuana Legalization? | ACB | https://www.nasdaq.com/articles/is-the-u.s.-getting-on-board-with-marijuana-legalization-2020-09-23 | nan | nan | With companies like Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) catching the attention of investors and consumers alike, it's no surprise that marijuana legalization is a hot issue in the U.S. According to a report by Grandview Research, the U.S. market for cannabis was worth $11.3 billion in 2018, with an expected growth rate of 14.5% per year through 2025 -- but that might be contingent on further loosening of prohibition laws. As of 2018, 21 states have debated legislation that would legalize recreational use of marijuana, and 33 states have already legalized some forms of cannabis for either recreational or medicinal use.
Presently, marijuana is fully legal for recreational use in only 11 of those states. With the exception of Vermont, jurisdictions with legalized recreational cannabis also provision for the commercialization of cannabis products for adults. Fully legalized marijuana remains uncommon in the United States, even if it's significantly more common than it was 10 years ago.
Image source: Getty Images.
2020 may see pivotal victories for legalization
In 2020, a handful of states will vote on full or partial legalization via referendum, including Arizona, Mississippi, Montana, Nebraska, New Jersey, and South Dakota. It's reasonable to suspect that at least a couple of these political efforts will fall short, but legalization proponents shouldn't despair. Many of the states that eventually legalized recreational cannabis via referendum had to try more than once before succeeding, as is typified by California's failed ballot initiative in 2010. But cannabis investors will be pleased to learn that no state that decriminalized or legalized recreational use has repealed it, despite several different attempts via ballot measures. Thus, the country looks like it's on track for legalization to make progress this election cycle, even if there's still a long way to go.
Even as states move to reform their cannabis laws, federal regulatory bodies like the Food and Drug Administration (FDA) are prohibited by federal law from participating in quality control or consumer safety efforts. This means that as legalization advances, state governments need to build new infrastructure to make sure that their cannabis regulations are locally enforceable, thereby introducing a large amount of overhead to the legalization process. It may also make it harder for international cannabis companies to compete in the U.S. because they'll need to deal with many different sets of regulations rather than just one.
Medicinal use and decriminalization aren't the same as legalization
Full nationwide cannabis legalization is still a distant goal, and there are many cases where progress has been incremental rather than transformational. Sixteen states have decriminalized recreational marijuana use without implementing full legalization for recreational purposes. In these states, cannabis products are only sold for medicinal use, which is strictly controlled. In places like Idaho and Indiana, medicinal use is so tightly regulated that medicinal products from jurisdictions like California might not be legal. This is a concern for cannabis investors because it means businesses would need to make different products for these jurisdictions if they wanted to compete.
Similarly, many states haven't committed to full decriminalization despite allowing for limited medicinal use. In Alabama, non-medical marijuana possession is a misdemeanor for first-time offenders and a felony for subsequent violations, so its "decriminalized" status is a bit of a misnomer. In contrast, Georgia's laws tightly control the THC content of medicinal marijuana while formally forbidding any recreational use, but cities including Atlanta and Savannah have proceeded to decriminalize it anyway, creating precarious pockets of opportunity that businesses are hesitant to exploit.
Finally, there's the issue of the federal government's approach to cannabis policy. Right now, there's no way to reconcile the fact that at the federal level, recreational cannabis is still fully illegal, even if state governments like New Hampshire's claim to have nullified the federal prohibition. State-level initiatives aside, Congress was initially scheduled to vote on a legalization bill called the MORE Act this week, but with an upcoming battle over Supreme Court nominees looming, the vote will likely be delayed until after the 2020 election.
So, while it does look like there is nationwide momentum building behind legalization for recreational use, there's still a long way to go, and there may be difficult legal battles ahead.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming.
Cannabis legalization is sweeping over North America – 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
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. | With companies like Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) catching the attention of investors and consumers alike, it's no surprise that marijuana legalization is a hot issue in the U.S. According to a report by Grandview Research, the U.S. market for cannabis was worth $11.3 billion in 2018, with an expected growth rate of 14.5% per year through 2025 -- but that might be contingent on further loosening of prohibition laws. In Alabama, non-medical marijuana possession is a misdemeanor for first-time offenders and a felony for subsequent violations, so its "decriminalized" status is a bit of a misnomer. | With companies like Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) catching the attention of investors and consumers alike, it's no surprise that marijuana legalization is a hot issue in the U.S. Medicinal use and decriminalization aren't the same as legalization Full nationwide cannabis legalization is still a distant goal, and there are many cases where progress has been incremental rather than transformational. Sixteen states have decriminalized recreational marijuana use without implementing full legalization for recreational purposes. | With companies like Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) catching the attention of investors and consumers alike, it's no surprise that marijuana legalization is a hot issue in the U.S. As of 2018, 21 states have debated legislation that would legalize recreational use of marijuana, and 33 states have already legalized some forms of cannabis for either recreational or medicinal use. This means that as legalization advances, state governments need to build new infrastructure to make sure that their cannabis regulations are locally enforceable, thereby introducing a large amount of overhead to the legalization process. | With companies like Aurora Cannabis (NYSE: ACB), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) catching the attention of investors and consumers alike, it's no surprise that marijuana legalization is a hot issue in the U.S. As of 2018, 21 states have debated legislation that would legalize recreational use of marijuana, and 33 states have already legalized some forms of cannabis for either recreational or medicinal use. In places like Idaho and Indiana, medicinal use is so tightly regulated that medicinal products from jurisdictions like California might not be legal. |
37272.0 | 2020-09-23 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Comcast, Johnson & Johnson, Stich Fix, American Express | ACB | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-comcast-johnson-johnson-stich-fix-american-express-2020-09-23 | 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 were set for a higher open on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N
At 8:55 a.m. ET, Dow e-minis 1YMc1 were up 0.66% at 27,323. S&P 500 e-minis ESc1 were up 0.26% at 3,307.75, while Nasdaq 100 e-minis NQc1 were up 0.01% at 11,150.25. The top three NYSE percentage gainers premarket .PRPG.N: ** Nike Inc , up 12.1% ** Hilltop Holdings Inc , up 11.3% ** Western Asset Mortgage Capital Corp , up 8.3% The top three NYSE percentage losers premarket .PRPL.N: ** Legacy Acquisition Corp , down 23.3% ** Aurora Cannabis Inc , down 16.7% ** Precision Drilling Corp , down 11.6% The top three Nasdaq percentage gainers premarket .PRPG.O: ** SPI Energy Co Ltd , up 207.4% ** Trident Acquisitions Corp , up 50.2% ** Gores Holdings IV Inc , up 43.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** AC Immune SA , down 42.8% ** Wave Life Sciences Ltd , down 28.6% ** Rockwell Medical Inc , down 22% ** Comcast Corp CMCSA.O: up 0.2% premarket BUZZ-CS raises PT on hopes of economic rebound
** Johnson & Johnson: JNJ.N: up 2.3% premarket BUZZ-Up on starting final-stage study of COVID-19 vaccine
** Twitter Inc TWTR.N: up 2.3% premarket BUZZ-Rises as brokerage upgrades rating to "buy"
** National Storage Affiliates Trust NSA.N: down 4.7% premarket BUZZ-Slips on share offering
** Stich Fix Inc SFIX.O: down 15.0% premarket BUZZ-Drops on bigger Q4 loss
** Yandex NV YNDX.O: up 3.8% premarket BUZZ-Rises on talks to buy TCS Group's online bank Tinkoff
** Athersys Inc ATHX.O: up 13.7% premarket BUZZ-Up on FDA designation for faster review of ARDS therapy
** JinkoSolar Holding Co Ltd JKS.N: up 4.2% premarket BUZZ-Gains on Q2 earnings beat, robust outlook
** General Mills Inc GIS.N: up 1.7% premarket BUZZ-Gains on upbeat results, dividend raise
** RedHill Biopharma Ltd RDHL.O: up 3.8% premarket BUZZ-Rises on tie-up for COVID-19 treatment study
** Selecta Biosciences Inc SELB.O: up 3.1% premarket BUZZ-Up on commencement of late-stage gout treatment studies
** American Express Co AXP.N: down 1.9% premarket BUZZ-Drops on report of BofA downgrade
** AC Immune SA: ACIU.O: down 42.8% premarket BUZZ-Down as Alzheimer's disease therapy trial fails to meet efficacy goal
** ViacomCBS Inc VIAC.O: up 1.1% premarket BUZZ-JPMorgan raises PT on potential streaming opportunity
** Western Digital Corp WDC.O: up 4.7% premarket BUZZ-Craig-Hallum sees 70% upside on unit separation
** Peloton Interactive Inc PTON.O: up 0.8% premarket BUZZ-Rebounds after Amazon denies partnership with Echelon on fitness bike
** 3M Co MMM.N: up 0.4% premarket BUZZ-Up on report of co exploring sale of food safety unit
** Predictive Oncology Inc POAI.O: up 17.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines
** Tesla Inc TSLA.O: down 3.0% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress
** Nike Inc NKE.N: up 12.1% premarket BUZZ-Street View: Sprinting faster than ever
** Adicet Bio Inc ACET.O: up 24.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering L3N2GK2LY
** Aurora Cannabis Inc ACB.N: down 16.7% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH
** ZoomInfo Technologies Inc ZI.O: up 4.7% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects L3N2GK2M5
** Wave Life Sciences WVE.O: down 28.6% premarket BUZZ-Plunges on equity offering
** Nanovibronix Inc NAOV.O: down 18.9% premarket BUZZ-Falls on $1.5 mln bought deal offering
** MediciNova Inc MNOV.O: up 22.7% premarket BUZZ-Up after potential COVID-19 vaccine shows promise in animal study
** Gores Holdings IV Inc GHIV.O: up 5.6% premarket BUZZ-Surges on deal to take United Wholesale public
(Compiled by Niket Nishant in Bengaluru)
((Niket.Nishant@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three NYSE percentage gainers premarket .PRPG.N: ** Nike Inc , up 12.1% ** Hilltop Holdings Inc , up 11.3% ** Western Asset Mortgage Capital Corp , up 8.3% The top three NYSE percentage losers premarket .PRPL.N: ** Legacy Acquisition Corp , down 23.3% ** Aurora Cannabis Inc , down 16.7% ** Precision Drilling Corp , down 11.6% The top three Nasdaq percentage gainers premarket .PRPG.O: ** SPI Energy Co Ltd , up 207.4% ** Trident Acquisitions Corp , up 50.2% ** Gores Holdings IV Inc , up 43.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** AC Immune SA , down 42.8% ** Wave Life Sciences Ltd , down 28.6% ** Rockwell Medical Inc , down 22% ** Comcast Corp CMCSA.O: up 0.2% premarket BUZZ-CS raises PT on hopes of economic rebound ** Johnson & Johnson: JNJ.N: up 2.3% premarket BUZZ-Up on starting final-stage study of COVID-19 vaccine ** Twitter Inc TWTR.N: up 2.3% premarket BUZZ-Rises as brokerage upgrades rating to "buy" ** National Storage Affiliates Trust NSA.N: down 4.7% premarket BUZZ-Slips on share offering ** Stich Fix Inc SFIX.O: down 15.0% premarket BUZZ-Drops on bigger Q4 loss ** Yandex NV YNDX.O: up 3.8% premarket BUZZ-Rises on talks to buy TCS Group's online bank Tinkoff ** Athersys Inc ATHX.O: up 13.7% premarket BUZZ-Up on FDA designation for faster review of ARDS therapy ** JinkoSolar Holding Co Ltd JKS.N: up 4.2% premarket BUZZ-Gains on Q2 earnings beat, robust outlook ** General Mills Inc GIS.N: up 1.7% premarket BUZZ-Gains on upbeat results, dividend raise ** RedHill Biopharma Ltd RDHL.O: up 3.8% premarket BUZZ-Rises on tie-up for COVID-19 treatment study ** Selecta Biosciences Inc SELB.O: up 3.1% premarket BUZZ-Up on commencement of late-stage gout treatment studies ** American Express Co AXP.N: down 1.9% premarket BUZZ-Drops on report of BofA downgrade ** AC Immune SA: ACIU.O: down 42.8% premarket BUZZ-Down as Alzheimer's disease therapy trial fails to meet efficacy goal ** ViacomCBS Inc VIAC.O: up 1.1% premarket BUZZ-JPMorgan raises PT on potential streaming opportunity ** Western Digital Corp WDC.O: up 4.7% premarket BUZZ-Craig-Hallum sees 70% upside on unit separation ** Peloton Interactive Inc PTON.O: up 0.8% premarket BUZZ-Rebounds after Amazon denies partnership with Echelon on fitness bike ** 3M Co MMM.N: up 0.4% premarket BUZZ-Up on report of co exploring sale of food safety unit ** Predictive Oncology Inc POAI.O: up 17.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines ** Tesla Inc TSLA.O: down 3.0% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress ** Nike Inc NKE.N: up 12.1% premarket BUZZ-Street View: Sprinting faster than ever ** Adicet Bio Inc ACET.O: up 24.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering L3N2GK2LY ** Aurora Cannabis Inc ACB.N: down 16.7% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.7% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects L3N2GK2M5 ** Wave Life Sciences WVE.O: down 28.6% premarket BUZZ-Plunges on equity offering ** Nanovibronix Inc NAOV.O: down 18.9% premarket BUZZ-Falls on $1.5 mln bought deal offering ** MediciNova Inc MNOV.O: up 22.7% premarket BUZZ-Up after potential COVID-19 vaccine shows promise in animal study ** Gores Holdings IV Inc GHIV.O: up 5.6% premarket BUZZ-Surges on deal to take United Wholesale public (Compiled by Niket Nishant in Bengaluru) ((Niket.Nishant@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 were set for a higher open on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 8:55 a.m. ET, Dow e-minis 1YMc1 were up 0.66% at 27,323. | The top three NYSE percentage gainers premarket .PRPG.N: ** Nike Inc , up 12.1% ** Hilltop Holdings Inc , up 11.3% ** Western Asset Mortgage Capital Corp , up 8.3% The top three NYSE percentage losers premarket .PRPL.N: ** Legacy Acquisition Corp , down 23.3% ** Aurora Cannabis Inc , down 16.7% ** Precision Drilling Corp , down 11.6% The top three Nasdaq percentage gainers premarket .PRPG.O: ** SPI Energy Co Ltd , up 207.4% ** Trident Acquisitions Corp , up 50.2% ** Gores Holdings IV Inc , up 43.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** AC Immune SA , down 42.8% ** Wave Life Sciences Ltd , down 28.6% ** Rockwell Medical Inc , down 22% ** Comcast Corp CMCSA.O: up 0.2% premarket BUZZ-CS raises PT on hopes of economic rebound ** Johnson & Johnson: JNJ.N: up 2.3% premarket BUZZ-Up on starting final-stage study of COVID-19 vaccine ** Twitter Inc TWTR.N: up 2.3% premarket BUZZ-Rises as brokerage upgrades rating to "buy" ** National Storage Affiliates Trust NSA.N: down 4.7% premarket BUZZ-Slips on share offering ** Stich Fix Inc SFIX.O: down 15.0% premarket BUZZ-Drops on bigger Q4 loss ** Yandex NV YNDX.O: up 3.8% premarket BUZZ-Rises on talks to buy TCS Group's online bank Tinkoff ** Athersys Inc ATHX.O: up 13.7% premarket BUZZ-Up on FDA designation for faster review of ARDS therapy ** JinkoSolar Holding Co Ltd JKS.N: up 4.2% premarket BUZZ-Gains on Q2 earnings beat, robust outlook ** General Mills Inc GIS.N: up 1.7% premarket BUZZ-Gains on upbeat results, dividend raise ** RedHill Biopharma Ltd RDHL.O: up 3.8% premarket BUZZ-Rises on tie-up for COVID-19 treatment study ** Selecta Biosciences Inc SELB.O: up 3.1% premarket BUZZ-Up on commencement of late-stage gout treatment studies ** American Express Co AXP.N: down 1.9% premarket BUZZ-Drops on report of BofA downgrade ** AC Immune SA: ACIU.O: down 42.8% premarket BUZZ-Down as Alzheimer's disease therapy trial fails to meet efficacy goal ** ViacomCBS Inc VIAC.O: up 1.1% premarket BUZZ-JPMorgan raises PT on potential streaming opportunity ** Western Digital Corp WDC.O: up 4.7% premarket BUZZ-Craig-Hallum sees 70% upside on unit separation ** Peloton Interactive Inc PTON.O: up 0.8% premarket BUZZ-Rebounds after Amazon denies partnership with Echelon on fitness bike ** 3M Co MMM.N: up 0.4% premarket BUZZ-Up on report of co exploring sale of food safety unit ** Predictive Oncology Inc POAI.O: up 17.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines ** Tesla Inc TSLA.O: down 3.0% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress ** Nike Inc NKE.N: up 12.1% premarket BUZZ-Street View: Sprinting faster than ever ** Adicet Bio Inc ACET.O: up 24.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering L3N2GK2LY ** Aurora Cannabis Inc ACB.N: down 16.7% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.7% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects L3N2GK2M5 ** Wave Life Sciences WVE.O: down 28.6% premarket BUZZ-Plunges on equity offering ** Nanovibronix Inc NAOV.O: down 18.9% premarket BUZZ-Falls on $1.5 mln bought deal offering ** MediciNova Inc MNOV.O: up 22.7% premarket BUZZ-Up after potential COVID-19 vaccine shows promise in animal study ** Gores Holdings IV Inc GHIV.O: up 5.6% premarket BUZZ-Surges on deal to take United Wholesale public (Compiled by Niket Nishant in Bengaluru) ((Niket.Nishant@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 were set for a higher open on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 8:55 a.m. ET, Dow e-minis 1YMc1 were up 0.66% at 27,323. | The top three NYSE percentage gainers premarket .PRPG.N: ** Nike Inc , up 12.1% ** Hilltop Holdings Inc , up 11.3% ** Western Asset Mortgage Capital Corp , up 8.3% The top three NYSE percentage losers premarket .PRPL.N: ** Legacy Acquisition Corp , down 23.3% ** Aurora Cannabis Inc , down 16.7% ** Precision Drilling Corp , down 11.6% The top three Nasdaq percentage gainers premarket .PRPG.O: ** SPI Energy Co Ltd , up 207.4% ** Trident Acquisitions Corp , up 50.2% ** Gores Holdings IV Inc , up 43.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** AC Immune SA , down 42.8% ** Wave Life Sciences Ltd , down 28.6% ** Rockwell Medical Inc , down 22% ** Comcast Corp CMCSA.O: up 0.2% premarket BUZZ-CS raises PT on hopes of economic rebound ** Johnson & Johnson: JNJ.N: up 2.3% premarket BUZZ-Up on starting final-stage study of COVID-19 vaccine ** Twitter Inc TWTR.N: up 2.3% premarket BUZZ-Rises as brokerage upgrades rating to "buy" ** National Storage Affiliates Trust NSA.N: down 4.7% premarket BUZZ-Slips on share offering ** Stich Fix Inc SFIX.O: down 15.0% premarket BUZZ-Drops on bigger Q4 loss ** Yandex NV YNDX.O: up 3.8% premarket BUZZ-Rises on talks to buy TCS Group's online bank Tinkoff ** Athersys Inc ATHX.O: up 13.7% premarket BUZZ-Up on FDA designation for faster review of ARDS therapy ** JinkoSolar Holding Co Ltd JKS.N: up 4.2% premarket BUZZ-Gains on Q2 earnings beat, robust outlook ** General Mills Inc GIS.N: up 1.7% premarket BUZZ-Gains on upbeat results, dividend raise ** RedHill Biopharma Ltd RDHL.O: up 3.8% premarket BUZZ-Rises on tie-up for COVID-19 treatment study ** Selecta Biosciences Inc SELB.O: up 3.1% premarket BUZZ-Up on commencement of late-stage gout treatment studies ** American Express Co AXP.N: down 1.9% premarket BUZZ-Drops on report of BofA downgrade ** AC Immune SA: ACIU.O: down 42.8% premarket BUZZ-Down as Alzheimer's disease therapy trial fails to meet efficacy goal ** ViacomCBS Inc VIAC.O: up 1.1% premarket BUZZ-JPMorgan raises PT on potential streaming opportunity ** Western Digital Corp WDC.O: up 4.7% premarket BUZZ-Craig-Hallum sees 70% upside on unit separation ** Peloton Interactive Inc PTON.O: up 0.8% premarket BUZZ-Rebounds after Amazon denies partnership with Echelon on fitness bike ** 3M Co MMM.N: up 0.4% premarket BUZZ-Up on report of co exploring sale of food safety unit ** Predictive Oncology Inc POAI.O: up 17.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines ** Tesla Inc TSLA.O: down 3.0% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress ** Nike Inc NKE.N: up 12.1% premarket BUZZ-Street View: Sprinting faster than ever ** Adicet Bio Inc ACET.O: up 24.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering L3N2GK2LY ** Aurora Cannabis Inc ACB.N: down 16.7% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.7% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects L3N2GK2M5 ** Wave Life Sciences WVE.O: down 28.6% premarket BUZZ-Plunges on equity offering ** Nanovibronix Inc NAOV.O: down 18.9% premarket BUZZ-Falls on $1.5 mln bought deal offering ** MediciNova Inc MNOV.O: up 22.7% premarket BUZZ-Up after potential COVID-19 vaccine shows promise in animal study ** Gores Holdings IV Inc GHIV.O: up 5.6% premarket BUZZ-Surges on deal to take United Wholesale public (Compiled by Niket Nishant in Bengaluru) ((Niket.Nishant@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 were set for a higher open on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 8:55 a.m. S&P 500 e-minis ESc1 were up 0.26% at 3,307.75, while Nasdaq 100 e-minis NQc1 were up 0.01% at 11,150.25. | The top three NYSE percentage gainers premarket .PRPG.N: ** Nike Inc , up 12.1% ** Hilltop Holdings Inc , up 11.3% ** Western Asset Mortgage Capital Corp , up 8.3% The top three NYSE percentage losers premarket .PRPL.N: ** Legacy Acquisition Corp , down 23.3% ** Aurora Cannabis Inc , down 16.7% ** Precision Drilling Corp , down 11.6% The top three Nasdaq percentage gainers premarket .PRPG.O: ** SPI Energy Co Ltd , up 207.4% ** Trident Acquisitions Corp , up 50.2% ** Gores Holdings IV Inc , up 43.2% The top three Nasdaq percentage losers premarket .PRPL.O: ** AC Immune SA , down 42.8% ** Wave Life Sciences Ltd , down 28.6% ** Rockwell Medical Inc , down 22% ** Comcast Corp CMCSA.O: up 0.2% premarket BUZZ-CS raises PT on hopes of economic rebound ** Johnson & Johnson: JNJ.N: up 2.3% premarket BUZZ-Up on starting final-stage study of COVID-19 vaccine ** Twitter Inc TWTR.N: up 2.3% premarket BUZZ-Rises as brokerage upgrades rating to "buy" ** National Storage Affiliates Trust NSA.N: down 4.7% premarket BUZZ-Slips on share offering ** Stich Fix Inc SFIX.O: down 15.0% premarket BUZZ-Drops on bigger Q4 loss ** Yandex NV YNDX.O: up 3.8% premarket BUZZ-Rises on talks to buy TCS Group's online bank Tinkoff ** Athersys Inc ATHX.O: up 13.7% premarket BUZZ-Up on FDA designation for faster review of ARDS therapy ** JinkoSolar Holding Co Ltd JKS.N: up 4.2% premarket BUZZ-Gains on Q2 earnings beat, robust outlook ** General Mills Inc GIS.N: up 1.7% premarket BUZZ-Gains on upbeat results, dividend raise ** RedHill Biopharma Ltd RDHL.O: up 3.8% premarket BUZZ-Rises on tie-up for COVID-19 treatment study ** Selecta Biosciences Inc SELB.O: up 3.1% premarket BUZZ-Up on commencement of late-stage gout treatment studies ** American Express Co AXP.N: down 1.9% premarket BUZZ-Drops on report of BofA downgrade ** AC Immune SA: ACIU.O: down 42.8% premarket BUZZ-Down as Alzheimer's disease therapy trial fails to meet efficacy goal ** ViacomCBS Inc VIAC.O: up 1.1% premarket BUZZ-JPMorgan raises PT on potential streaming opportunity ** Western Digital Corp WDC.O: up 4.7% premarket BUZZ-Craig-Hallum sees 70% upside on unit separation ** Peloton Interactive Inc PTON.O: up 0.8% premarket BUZZ-Rebounds after Amazon denies partnership with Echelon on fitness bike ** 3M Co MMM.N: up 0.4% premarket BUZZ-Up on report of co exploring sale of food safety unit ** Predictive Oncology Inc POAI.O: up 17.4% premarket BUZZ-Soars on securing additional 71 ovarian cancer cell lines ** Tesla Inc TSLA.O: down 3.0% premarket BUZZ-Street View: Much-promised 'Battery Day' fails to impress ** Nike Inc NKE.N: up 12.1% premarket BUZZ-Street View: Sprinting faster than ever ** Adicet Bio Inc ACET.O: up 24.9% premarket BUZZ-Rises after co to not proceed with proposed stock offering L3N2GK2LY ** Aurora Cannabis Inc ACB.N: down 16.7% premarket BUZZ-Drops on grim quarterly outlookL3N2GK2LH ** ZoomInfo Technologies Inc ZI.O: up 4.7% premarket BUZZ-Rises as Wells Fargo upgrades to 'overweight' on growth prospects L3N2GK2M5 ** Wave Life Sciences WVE.O: down 28.6% premarket BUZZ-Plunges on equity offering ** Nanovibronix Inc NAOV.O: down 18.9% premarket BUZZ-Falls on $1.5 mln bought deal offering ** MediciNova Inc MNOV.O: up 22.7% premarket BUZZ-Up after potential COVID-19 vaccine shows promise in animal study ** Gores Holdings IV Inc GHIV.O: up 5.6% premarket BUZZ-Surges on deal to take United Wholesale public (Compiled by Niket Nishant in Bengaluru) ((Niket.Nishant@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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 were set for a higher open on Wednesday ahead of data that would throw light on the pace of an economic recovery from a coronavirus-driven recession, while Nike was set for a record open after a stunning quarterly earnings report..N At 8:55 a.m. ET, Dow e-minis 1YMc1 were up 0.66% at 27,323. |
37273.0 | 2020-09-23 00:00:00 UTC | Aurora Cannabis Inc. (ACB) Q4 2020 Earnings Call Transcript | ACB | https://www.nasdaq.com/articles/aurora-cannabis-inc.-acb-q4-2020-earnings-call-transcript-2020-09-23 | nan | nan | Image source: The Motley Fool.
Aurora Cannabis Inc. (NYSE: ACB)
Q4 2020 Earnings Call
Sep 22, 2020, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon, everyone, and welcome to the Aurora Cannabis fourth quarter fiscal 2020 conference call for the three months ending June 30, 2020. This is being recorded today, Tuesday, September 22, 2020. Listeners are reminded that certain matters discussed in today's conference call or answers that may be given to questions asked could constitute forward-looking statements that are subject to the risks and uncertainties relating to Aurora's future financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements.
The risk factors that may affect results are detailed in Aurora's annual information form and other periodic filings and registration statements. The company expects to file these documents before the end of this week and they may be assessed via the SEDAR or EDGAR databases. Since we are conducting today's call from our respective remote locations, there may be brief delays, crosstalk or other minor technical issues during this call. We thank you in advance for your patience and understanding.
I would now like to introduce Mr. Miguel Martin, chief executive officer for Aurora Cannabis. Please go ahead, Mr. Martin.
Miguel Martin -- Chief Executive Officer
Thank you, operator, and good afternoon, everyone, and thank you for giving us your time. First off, let me say that I very much appreciate the board's confidence in appointing me to the CEO role. I'm pleased to be working with the team on tactical plans to establish Aurora as a profitable, growth-oriented leader in the global cannabinoid market. I take my fiduciary responsibilities to our investors very seriously and I'm determined to do everything that I can to enhance shareholder value.
This begins with managing business with a high degree of fiscal discipline, especially in the midst of a global pandemic. Over the last several days, I've had an opportunity to speak to a few of you in the investment community, but for the broader audience, perhaps it would be helpful to provide a bit of my background. I spent my entire career in sales, marketing and leadership roles within the regulated CPG product industry. I started my career with Altria and spent about 18 years there, ultimately leading their sales group.
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I then went to become the president, one of the largest electronic cigarette companies, Logic, which was then sold to Japan Tobacco, the third largest tobacco company in the world. After that, I went to a start-up and became CEO of Reliva CBD, currently ranked the No. 1 CBD company in Nielsen, which was just recently acquired by Aurora. So I spent a lot of time working in fast paced, constantly evolving, highly regulated and fluid environments where adherence to compliance and testing is essential to success.
I accepted the CEO job because I see an opportunity to quickly leverage my skill set in a regulated CPG product development here at Aurora. I'm fortunate to step into a company built with a dedication to science and the compliance first approach. With strong execution, I expect to build a profitable business in Canada that we believe can be portable to other larger global cannabinoid markets. Having spent four months now at Aurora, I've seen the talent and the industry knowledge that makes this company innovative and agile.
Aurora will be a global leader in cannabinoids, when the largest markets open up, and my job is to make sure that Aurora executes on that plan. With that, I'd like to turn the call over to Glen Ibbott, our chief financial officer, to walk you through the financial results for Q4 2020, and then I'll be back to discuss some of our business plans going forward. Glen?
Glen Ibbott -- Chief Financial Officer
Yes. Thanks, Miguel. My pleasure to take our firstearnings calltogether. I'm very excited about the vision you have for Aurora and the opportunity for Aurora to realize its full potential as we remain focused on becoming a profitable growth-oriented leader in the global cannabinoid market.
So good afternoon, everyone, and thank you for joining us on today's call. As you know, on September 8, we provided a business update, including certain unaudited preliminary fourth-quarter 2020 results. Therefore, I can be a bit brief in my review of our financial results for the quarter. The figures I'll be going over today can be found in the press release we issued after market closed today and are all in Canadian dollars.
For our fourth quarter fiscal 2020, the period from April 1 to June 30, 2020, our net revenue came in at $72.1 million, while our total cannabis net revenue came in at $67.6 million. Our sales mix remains evenly split with the consumer cannabis segment delivering $35.3 million in net revenue and our medical cannabis segment delivering $32.2 million in net revenue. Total kilograms of dried consumer cannabis oil increased by 36% as compared to the prior quarter, but this was offset by an approximate 30% decrease in the average selling price per gram of dry cannabis flower. For Daily Special, our value brand accounted for 62% of total net consumer revenue from flower in the quarter as compared to 35% in the third quarter.
This is the primary factor impacting the decline in our average selling price per gram of dried cannabis flower. Consumer cannabis extract net revenue decreased by $1.5 million as compared to the prior quarter, driven primarily by a decrease in sales of our vape products. During the fourth quarter, the increase in our medical cannabis net revenue was comprised of an increase in Canadian medical sales of $0.7 million and an increase in our international medical cannabis business by 14% or $0.6 million. Pricing in both markets stayed strong and steady.
We have produced over 44,000 kilograms of cannabis in Q4 as compared to approximately 36,000 kilograms in the prior quarter. However, as we continue this aspect of our business reset, which consists of rationalizing our production footprint and closing a number of our smaller facilities, we expect our total production going forward to average about 35,000 kilograms per quarter. And of this production, 65% or more is expected to meet our top-quality flower standard. We expect our facility rationalization to be accretive to our gross margins over time, while we continue to work on maximizing yields, potency and other quality characteristics of our cultivation.
Our forecast for inventory drawdown suggests that our flower production versus sale will reach a steady cadence over the next several quarters. While trim will also reach a steady state drawdown given our renewed focus on vape and other derivative categories. Our cash cost to produce per gram of dried cannabis sold improved to $0.89, down 27% from the previous quarter. This is a slightly modified metric from previous quarters that reflects changes to our inventory costing methodology, which places a heavier weighting on our top-quality flower and less on byproducts.
Our low-cost of per unit production is another lever that allows us to build brands across multiple pricing tiers while maintaining strong, healthy and sustainable margins. Our adjusted gross margin before fair value adjustments on cannabis net revenue was 50% in Q4 versus 43% in the prior quarter. As you are well aware, we have been focused on prudently managing SG&A cost down to our targeted run rate of $40 million to $45 million per quarter over the course of the second half of fiscal 2020. We are pleased to have successfully reduced SG&A costs, which includes R&D spending from over $100 million in Q2 2020 down to $64.6 million in Q4.
Excluding approximately $3 million of nonrecurring costs related to the business redesign. I'm further encouraged to tell you that we are now operating at our targeted quarterly SG&A run rate in the low $40 million range as of Q1. Clearly, reducing the run rate to the low $40 million range was very important as we described to deliver positive EBITDA. We also believe this level of SG&A [Inaudible] and is quite sustainable and very capable of supporting a much higher revenue line.
Our progress in continuing to reduce both overall and per unit production costs as well as the significant decrease in SG&A demonstrates our commitment to manage Aurora to positive EBITDA for Q2 2021. These efforts while certainly necessary, have clearly been disruptive to the organization. So while there is still more work to do, we are now in a position where most of the Aurora team can focus their attention on delivering Miguel's plan for growth. So pulling all of this together, adjusted EBITDA in Q4 2020 was a loss of $34.6 million, a $30.7 million if we exclude severance and nonrecurring costs related to our business transformation.
This is obviously a substantial improvement over the prior quarter adjusted EBITDA loss of $50.4 million, and it is the second consecutive quarter of improvement in our adjusted EBITDA. We expect this trend to continue through our first half of fiscal 2021 as we remain dedicated to achieving positive EBITDA in Q2. Turning to our balance sheet. As of June 30, 2020, our consolidated cash position was $162 million compared to $230 million as of March 31, 2020.
Cash used in Q4 was similar to that in Q3 and however, the mix within cash used shows our significant positive progress. We used $53.3 million in cash to reduce our term debt and lease obligations, and we've made additional debt payments subsequent to quarter end. As of today, our outstanding term debt balance stands at about $110 million. In the quarter, we used cash to pay capital expenditure invoices of $32.8 million, which includes, of course, work done in previous quarters.
This is a $51.3 million reduction in capex quarter over quarter cash spend. Finally, cash used in operations for Q4 was $63.9 million. In the fourth quarter, we raised approximately $48 million under our at-the-market financing program and also financed a new prospective supplement to enable us to raise an additional USD 250 million under the ATM program. So as at the June quarter end, we had approximately USD 220 million available under our current ATM program.
And this provides us with additional balance sheet support if required as we drive toward achieving adjusted EBITDA profitability in the near term. So in this environment, we believe that access to capital is of paramount importance. However, we are focused on getting to cash flow positive as quickly as possible to alleviate the need for additional equity capital as much as possible. We have multiple levers to pull to achieve this milestone, including cost and efficiency opportunities in production and SG&A that we've identified that should continue to drive costs lower over time.
And of course, the successful execution of our tactical plans to improve market share in the Canadian consumer market. As we have demonstrated with our progress on the operational reset, we will continue to prudently manage our liquidity as we strive for positive EBITDA in the second quarter of fiscal 2021. The material run rate reduction in our capex and SG&A costs should provide comfort to our investors that the health of our income statement and balance sheet is of primary importance to us. We expect that our current cash position should be sufficient to fund the operations to the point where positive EBITDA and free cash flow are achieved and sustainable.
The remaining capital available under our [Inaudible] prospectus protects the company and our shareholders as a backstop in an uncertain environment. We'll use it judiciously for opportunities that deliver near-term payback and have, in fact, used it subsequent to our June quarter end to fund the announced termination payment to the UFC. Since we are closing in on the end of Q1 2021, we thought it would be helpful to provide some forward-looking commentary on how the quarter is shaping up. Following the divestiture of noncore subsidiaries during fiscal 2020 our net revenue in Q1 2021 should be comprised exclusively of cannabis net revenue, which is expected to be between $60 million and $64 million compared to the $67.5 million of Q4.
We expect adjusted gross margin before fair value adjustment on cannabis net revenue to be within a range of 46% to 50%. So while growth in the consumer cannabis revenue was not expected in Q1 2021, our medical business is expected to remain steady, and we expect traction from our execution of consumer market share tactical plan as Miguel will outline for you shortly to show results beginning in Q2. However, in terms of progress to positive EBITDA, the Q1 consumer revenue level is more than offset by adjusted gross margin that continued to stay strong due to a favorable sales mix and a significant reductions in SG&A levels to below $40 million range. So two housekeeping notes before turning the call back to Miguel.
But first, as we announced in our business update on September 8, Aurora and the UFC have agreed to mutually terminate the partnership. We will, therefore, be making a onetime payment of USD 30 million to terminate contract in Q1. This is expected to allow us to reallocate more than $150 million to our core markets that would have otherwise been spent in fees, research costs and marketing activation expenses over the next five years. Second, now we reached an agreement with our syndicate of banks, which regarding amendments for secured credit agreement.
These amendments provided us with additional flexibility, including a reduction in adjusted EBITDA milestone and including shifting the attainment of positive adjusted EBITDA into Q2 2021. And finally, a reduction in the size of the revolver facility to better align with our average receivables balance and thereby reduced standby fees. So to conclude, we have made many difficult decisions over the past few quarters and have leaned heavily on the talented and hard-working people in our organization. While it's been disruptive, it was also absolutely necessary.
And now we feel that the company is unencumbered from distraction and can execute on the vision and strategy being developed by Miguel. So with that, I'd like to turn the call back over to Miguel and have him share some of his thoughts.
Miguel Martin -- Chief Executive Officer
Thanks for the financial summary, Glen. I strongly believe that the long-term outlook for cannabinoids is very exciting, both in THC and a non-THC variance. And I think Aurora is uniquely positioned to realize opportunities in both segments. We're seeing the level of interest globally in medical systems grow, and Canada's consumer market is returning to a nice pace of growth.
So there continues to be positive momentum in the industry, and our job now is to prove to investors that we can achieve profitability in our core markets, building a base of free cash flow in our core business, today, will also allow us to invest globally for the multiyear investment horizon we see in cannabinoids. The history of global CPG brands is rooted in building capabilities and core competencies in their home markets that are then portable globally, and that is what we intend to continue to build here at Aurora. Having been with the company for about four months, I believe, I have a reasonably firm grasp on what we need to accomplish across four main focus markets. First, the Canadian medical; second, European and Select International Medical; third, Canadian Consumer and four, U.S.
CBD to be successful. Our domestic and international medical businesses are operating well and continue to track the plan. We will continue to invest in these areas to maintain and grow our leading share in these markets. However, given the recent lack of growth we've been experiencing within the Canadian consumer markets, let me lay out our initial tactical plans within this core market before taking your questions.
First, leveraging traditional CPG models of consumer insights and data sets, including feedback from more mature markets such as the United States to identify consumer product opportunities. Second, reinvigorating Whistler, San Raf and Aurora, our super premium and premium brands; third, continuing to innovate and launch new offerings in key, known margin accretive consumer categories, such as vapor, edibles, and concentrates. And fourth, tactical sales execution, including addressing product availability, visibility, packaging and a focus on higher-margin product sizes and formats. On the first part, we've made investments in both syndicated and proprietary data sets.
This includes monthly information for more mature markets in the U.S. that assist us in modeling future ROI opportunities. These insights are expected to guide us in decision-making and effective execution. Second, I want to dispel the current thinking that the whole cannabis category will be commoditized.
The data from Canada and other mature markets indicate that premium and super premium brands have been and will continue to be successful in all formats. We expect to refocus our dried flower business toward gross profit dollar pools and away from total revenue. One of the first steps we expect to take is building a more balanced portfolio, offering across multiple pricing tiers. We already have a collection of great premium brands, Aurora, San Raf and then Whistler as our super premium offering.
So we need to emphasize all of our strong premium brands to balance out the total offering to our consumers. We also intend to better position these three premium brands across various formats to foster greater brand visibility and provide greater choices to the consumers. For example, San Raf pre-rolls or higher quality Whistler vape. Third, we note the important part of growth in such a new category, and this is a direct experience that I've had from my days at Logic and then at Reliva is that project innovation and leveraging technology needs to be a core competency.
Thankfully, we have a history of product development here at Aurora, and you should expect us to see us leverage that internal expertise into new segments of the market, particularly expanding our market-leading edible offerings into concentrates. Gummies represent a good example of where Aurora already has a leading market position, and we expect to allocate additional resources in the coming quarters to solidify and enhance our leading position and grow that format. These opportunities represent sources of strong gross dollar contribution and where we have technical know how, that gives us an advantage over our competitors. And finally, we'll be focusing on driving profitable growth.
That means making sure that we're improving our execution with classic CPG sales, marketing, trade marketing and customer engagement systems. This will improve in stock conditions, visibility of key brands, customer relationships and that has historically resulted in increased market share. Furthermore, we'll explore aligning our packaging, sizing with that regional demand to enhance our profitability, and where applicable, consider more flexible packaging options to reduce cost. These are just a few of the low-hanging initiatives we'll be executing in the coming months that should continue to build strong brand awareness and affinity with consumers.
While I've outlined just a few of the tactical plans we're putting to work for now in our Canadian consumer business, my focus is on ensuring that the entire Aurora team is executing to their respective plan. This includes continuously looking for more effective ways to connect with our consumers and opportunities to extract efficiencies from our operations. Throughout my career, I've implemented multiple examples of simple, well-executed plans, resulting in outside gains in CPG categories. We operate in a category where market share is moving 500 basis points in a few months.
So I feel strongly that our plan, executed correctly, should return us back to our leadership position in the Canadian consumer market. Glen has already provided an overview of Q4 financials, including our focus on achieving EBITDA profitability in Q2. And I can certainly appreciate that key stakeholders are skeptical of forward-looking statements from Aurora. So all I can say is look to the data in the coming months to see the trajectory of our success in the Canadian consumer market.
If you see progress in our premium brands and adjacent key categories like vape and pre-rolls, you know the plan is on the right track. Thank you for your time. I'd now like to ask the operator to open the call for questions.
Questions & Answers:
Operator
[Operator instructions] Our first question comes from the line of Vivien Azer with Cowen. You may proceed with your question.
Vivien Azer -- Cowen and Company -- Analyst
Thank you. Good afternoon. My question has to do, Miguel, with some of the portfolio initiatives that you just laid out. Given the increasingly large role that value is playing both in your portfolio as well as the category as a whole.
As you look to improve your positioning and market share on Whistler, San Raf and/or Aurora, do you see the need for any pricing adjustments up or down to create a little bit more differentiation throughout your portfolio? Thanks.
Miguel Martin -- Chief Executive Officer
Vivien, good afternoon. Thanks for your question. I believe, having the experience of 20 years in the tobacco, vapor and other regulated product experience, that there really is an opportunity to have a more articulated portfolio. The focus on low-cost flower, I think, has created a lot of pressures.
The reality is the Canadian consumer and other consumers really value the differentiation that this product can bring in some ways more so than other categories that I've worked in, whether it's potency, terpenes, packaging or background, I just think there's a greater opportunity, and there is evidence when you look at more mature markets like Colorado or California, that consumers are willing to pay more. And so yes, adjustments do need to be made in order to make sure we take advantage of that so that we do get a premium and premium margins. The other thing I will talk a little bit about that you're quite familiar with, is the ecosystem of a brand and its equity. So Whistler, as an example, I believe, it's been underserved.
It's always been a super premium flower product, organic in its very nature and finite, there are no reason that the cues you see with the Whistler or Aurora or San Raf can't find its way to other formats, such as vapor, such as pre rolls, such as concentrates. And as long as those key notes of premiumness validate the economics, I think, you can have a really strong ecosystem where you're always going to have a certain amount of value, that the consumer has given proper opportunities to work up that value chain. And given the economics of the difference in margin contribution between a super premium and the value product, given my background with brands such as Small Broke, Copenhagen, Skol, Logic and even parts of the Reliva portfolio, I think, I have a pretty strong background in finding a place for multiple brands throughout that portfolio. So we're excited about it.
I will say it's one of the things that really attracted me to the job. I am blessed with really great premium and super premium assets. And now we have to bring them to the consumers in the marketplace.
Vivien Azer -- Cowen and Company -- Analyst
Perfect. And just a quick follow-up for me. As you've indicated, we should keep an eye on just month to month revenues and development there as benchmarks of success. But as you think about market share, what is the charge for your team? Is it to improve Aurora's overall market share? Or are you more focused on market share by price segment?
Miguel Martin -- Chief Executive Officer
No, I'm absolutely — it's the latter. So I've lived in worlds and you've seen worlds where overall market share is not a true indicator of a company's profitability. We will be much more interested in the market share of our premium and super premium categories. Much more interested in the market share of categories such as vapor and pre-rolls and concentrates that are margin accretive.
And if others want to play in that deep discount flower business, that really has compressed margins in order to boost their overall company market share, so be it, but this really is an effort to achieve profitability to higher margins. And so it will be the latter part of your example. That will be a clear focus to us. And it's our target around EBITDA, profitability and being margin accretive that is much more the focus of the company than an overall company market share.
Vivien Azer -- Cowen and Company -- Analyst
Very helpful. Thank you very much.
Miguel Martin -- Chief Executive Officer
Thank you, Vivien.
Operator
Our next question comes from the line of Pablo Zuanic with Cantor Fitzgerald. You may proceed with your question.
Pablo Zuanic -- Cantor Fitzgerald -- Analyst
Thank you. And congratulations on your appointment, Miguel. Can we do just a quick recap in terms of what's happened over the last six months? And the reason why I asked that, you are guiding for Reg sales to be down 10% to 20% in the September quarter, right? If I do the math, medical is staying around $32 million. So regular September quarter is falling 10% to 20%.
It fell about 10% in the June quarter, right? And you talked about 60% of sales or more coming from your value brand, Daily Special. So just what happened there? Was it that the value segment lost share? It doesn't seem to be the case? Why did the Daily Special not work? And that's one question. And then the second one, when I look forward, yes, you're going to be focusing on the premium side and given your background and the know-how you've talked about, I'm sure that, that can materialize, but you're going to have 60% of sales or more that I suppose is going to be declining, right, because of the trend that we are seeing there are value. So this transition could take place for a while.
I mean, we would be looking at flat sales for more than just one quarter, if you can highlight that. Thank you.
Miguel Martin -- Chief Executive Officer
Sure. So thank you, Pablo, and I appreciate your kind comments. My opinion is the company had a tremendous success with Daily Special. And if you look at the February, say, through April time period, there was a massive amount of market share that was taken, and they were a first mover into that value segment.
However, others quickly followed. And when you're just playing on price, it just becomes a diminishing return. And so I think the company got a bit distracted by the success that they saw with that discount offering, which was Daily Special, which sort of delayed other inputs such as vapor and pre-rolls, when there is a lot of growth in the category. And then everyone else kept piling in.
And because there was such a reliance upon that discount business in a lot of different ways, both on the growth side, on the sales side, on the trade marketing side. When that was just completely pressed against by competitive pricing pressure, it became hard to pivot. Now in terms of your point on timing, I guess, I would raise sort of three points. First is the category is growing.
Aurora has not participated in that category growth in a way that, I think, is respective of what I would expect of the company. And so the good news is the consumers continue to command, stores continue to open, particularly in Ontario and Aurora needs to participate. Second thing is we are see brand shares moving very quickly. The consumer is in a very dynamic situation, unlike, say, domestic tobacco or other categories I've been in where 20 to 30 share points or basis points of share have moved in a month, you're seeing 200, 300 basis points of share moving a month.
So you can do it with the right products with the right execution. And so in terms of timing, we are going to be launching a stronger portfolio of vapor products. You're going to see a greater effort from us on pre-rolls, and you're going to see a deeper focus on our premium flower products. That, plus a stronger focus on sales execution and engagement with the provinces and trade marketing should allow for a quick move.
I'm not here to debate exact timing, and I don't think it's fair to predict exactly when you're going to see X amount of market share by category. But through headset data and other data that clearly is available to you, I would keep going back to this. If you see progress from Aurora on its premium brands in the upcoming weeks and months. And if you see progress in those categories with a margin accretive, versus just overall market share led by low-cost flower, then we're on the right track.
And everything I'm going to do and everything in my background, I think, puts me in a good place to drive that type of execution.
Pablo Zuanic -- Cantor Fitzgerald -- Analyst
Thank you. That's very helpful. And just a quick follow-up for Glen. So Glen, I mean, a that you have to use part of the ATM to settle the UFC, but I suppose we all understand that.
But looking forward, how do you think about the convertible bonds, right? That you had about a 50% discount. Is there an opportunity? Will it make any sense, financial sense and strategically also to use part to ATM, to buy some of those bonds? I think on my math, that would be accretive. If you can touch on that, please. Thanks.
Glen Ibbott -- Chief Financial Officer
Yes. Thanks, Miguel. So listen, I mean, there is an awful lot going on at Aurora. I mean, you talked about the business transformation and a significant effort and focus backed up from the organization.
Now we're pivoting to much more of a focus on delivering on the commercial success that Miguel has just outlined for you. So I'd suggest this. I mean, we've said before that one of the mindset changes we've made within the organization is much more financial discipline and prudence. And one that's a kind of sophistication, if you will.
So it's not the immediate concern. I recognize exactly what you're talking about, but it's not an immediate concern. But we will look at all opportunities because if they make positive sense for the company and our shareholders, and we will certainly consider them. But I mean, you should know that we're certainly most of the organization is focused on delivering what Miguel has just outlined for you.
Pablo Zuanic -- Cantor Fitzgerald -- Analyst
Got it. Thank you.
Operator
Our next question comes from the line of Michael Lavery with Piper Sandler. You may proceed with your question.
Michael Lavery -- Piper Sandler -- Analyst
Good afternoon. Thank you. Can you talk about some of the thinking around the profitability target and what some of the key hurdles are and things to watch? And specifically, coming close already to the end of the first quarter, what's in place already? How much is there some things that you still need to achieve? Just kind of a sense of progress along that and what the key variables are.
Glen Ibbott -- Chief Financial Officer
Miguel, would you like to get it?
Miguel Martin -- Chief Executive Officer
Yes. Why don't you start, Glen, and then I'll talk a little bit forward-looking, please.
Glen Ibbott -- Chief Financial Officer
Yes, absolutely. Yes. Listen, I mean, we've done a lot of heavy work over the last few quarters. And as you know, with SG&A and continuing to main — some healthy margins in place.
We fixed a number of pieces of the business that drive the EBITDA, but we do have the consumer piece of the business that needs to be corrected, and Miguel has told you a little bit about that, and I'm happy to tell you more, sure. But if you look at what we delivered in terms of EBITDA in Q4, it was just over negative $30 million, taking out the severance costs. But that was why we were still carrying $64 million of SG&A costs. So as we stand in Q1, we're now running in the $40 million range.
So you could see the medium improvement in EBITDA of $20 million, just simply from our SG&A reset. We do expect continued strong performance in the Canadian and European medical markets. So really, the root deposit of the EBITDA is exactly as Miguel's outlined. You can watch that in the data over the coming months.
And our continued focus on fiscal prudence. I mean we have done a lot of hard work on our cost structure, but we'll continue to focus on incremental opportunities we got the whole company in a different mindset now. And I know they're all looking for places we can save costs, and it adds up. So it's a different company.
We're positioned, I think, well. And the — as I say, the route forward to deliver on some of these premium categories and even within the flower market and ship that product mix up to something that delivers more dollars to the gross profit line as opposed to simply just delivering revenue?
Miguel Martin -- Chief Executive Officer
Yes. I mean, Michael, I guess, the other thing I would say is when I look at those companies that have been successful of our competitors, they've executed a pretty thoughtful plan, but the execution level was tremendous. And it looks a lot like CPG and I'm sure you can imagine who I'm talking about. So I don't think that the approach has to be particularly advanced or take a long time, and simplistic is not the right word because I have deep respect for our competitors as much as I want to be an aggressive competitor against them.
But to Glen's point, the company really was distracted, I think, in a lot of ways by the reset both on the people side and on the production side, I think, there was a lot of credence put together around overall flower share but there were some investments made that with the right direction and with the right accountabilities and focus, and you're going to hear me say this over and over again, pushing the company into focusing on its premium assets in flower, vapor and pre-rolls and implementing classic CPG, sales, trade marketing, consumer engagement methodology. That's what's worked for others and the rewards have been outsized. So I think we have the assets. I believe we have the right people and with the right plan and accountabilities.
And to Glen's point, we have enough resources we don't need capex. We don't need additional accountability. Because at the end of the day, Michael, as you know, there's only roughly 1,000 stores in Canada. So if you can execute this plan successfully, you can move quickly with the right products in the right availability, and I could rattle off the 5Ps and on and on, but that's really going to be about execution.
But I'm confident that we have the product availability, the product quality and the plan. Now is it ever going to be quick enough for everybody? No, but I think you'll find our steps to be thoughtful. And if you look at what our competitors have done successfully, there's nothing sort of in our portfolio or in our capability set that gives me pause that we don't have what they have.
Michael Lavery -- Piper Sandler -- Analyst
That's helpful color. Just on the portfolio mix, you've mentioned the 62% value in 4Q. What does that look like 1Q to date? And then do you have a target range for where that should be going forward?
Miguel Martin -- Chief Executive Officer
I don't have a specific target. I know some might say, well, that's helpful. I can tell you that there'll be a significant amount of focus put on Whistler, San Raf and Aurora, and that will be across the board. And as you know, with the most great brands, particularly in a market where there's dark marketing or dark marketing provisions, having the sales force, having the provinces, having the product distribution and availability and potency, be focused on that does a lot of it.
So you're going to see progress. You're definitely going to see a more balanced portfolio and you're also going to start to see the development of this ecosystem. Whistler will stand for things in the core categories, both in flower and adjacency. San Raf will stand for things in those other categories and so will Aurora in ways that maybe Daily Special does in all those articulations.
So my goal is to make progress and to have a defensible articulated portfolio. And you're obviously well aware, as we all are of Marlboro Friday, creating a scenario where you so advantaged the discount business, that it creates structural advantages over the premium and super premium business is really not a great place to be. And so we're going to start to reverse that. And those percentages and allocations will definitely advantage the high end of those purchases in those three or four primary categories.
And I guess the only other thing I will say is when you look at things like vapor concentrates and pre-rolls, there's a lot of opportunity to bring some classic CPG elements in packaging and alignment and on vapor, many of the things that you're seeing in other categories on heat-not-burn into consumer connectivity that allows the consumer to see value and therefore, pay higher margins. In a way that maybe traditional flower doesn't lend itself. So I'm pretty bullish on those opportunities. And I believe some of the experiences that I've had on combustibles and smokeless and vapor and other categories lend itself well to this regulated market.
Michael Lavery -- Piper Sandler -- Analyst
OK. Great. Thank you very much.
Miguel Martin -- Chief Executive Officer
You're very welcome, Michael.
Operator
Our next question comes from the line of David Kideckel with ATB Capital Markets. You may proceed with your question.
David Kideckel -- ATB Capital Markets -- Analyst
Hi. [Inaudible] Actually came in for days. So congrats on the quarter, guys. So just to start, I mean, what you've seen in the market so far, how should we think about derivatives in terms of overall revenue mix that you're targeting as well as in terms of margin potential compared to flower, maybe over the next fiscal year and also longer term?
Miguel Martin -- Chief Executive Officer
Glen, do you want to start that, and I'll pick up the backside of it? Or would you like me to start?
Glen Ibbott -- Chief Financial Officer
Yes, Miguel, start, and I'll add in some parts, but [Inaudible]
Miguel Martin -- Chief Executive Officer
So I think if I understand your mix and how we should think about adjacent categories. So from a mix standpoint, due to the fact that so much production and capacity was brought online, you clearly were going to see a glut of flower, and particularly what we would call lower quality flower. And that would be lower potency and terpenes and then the higher gram sizes. And that's always going to have a lower margin profile.
And there'll be a place for that. But as we think about higher-margin offerings. It's not just Whistler, San Raf and Aurora, but also those packing sizes like 3.5 and seven-gram that when done right, give the consumer additional value. And so we've laid out the historic margins and obviously, talked about our medical margins.
I think, as you think about adjacent margins, there's two things really to consider it. And I'm not going to give you the precision of the answer that you may want, but I'll give you a sense of it. When you look at pre-rolls, vapor and edibles, they are margin accretive, particularly as you offer premium items. The second aspect of it is excellence around extraction or in other ways to use the byproduct of your flower production facility also creates economic value or margin accretive opportunities.
So that environment, when you can be having a strongly articulated flower portfolio as well as also being in a situation where the by-product can find its way into margin accretive products. And you can have a fully articulated portfolio where you're doing a decent amount of your business in super premium, a strong amount of your business in the premium, and you have a necessary amount in the discount, that clearly should have a significant margin impact as well as the impact of selling higher-margin items such as premium, vape, pre-rolls and concentrates. And if you look at the U.S., you see a wonderful opportunity, and that's not a national framework. We see brands developing in California and Colorado in some tough markets.
And so clearly, if they can do what they are, it definitely demonstrates that we can do it in Canada, and we feel good about our opportunity. And if you look at the equity scores and you look at sort of the awareness of those premium brands with Westwood, I'm bullish that we can move up the margin chain in flower and in those other adjacent categories.
Glen Ibbott -- Chief Financial Officer
Yes, I'll just add a little bit of maybe an example for a little bit of flavor. You've heard Miguel talk about margin accretive and premium assets. If we used like a 3.5 gram pack of our Whistler flower and compared that to a 3.5 gram of the typical discount flower from what we see in the market. That package of Whistler will deliver 10 times or more, the gross profit dollars that the discount flower would.
So when we say we're blessed with some premium assets, and we already are focused on the margin accretive, it doesn't mean that we have to replace all the Daily Special's revenue with an equal amount of Whistler revenue, although I'd be delighted if we did, but we're really trying to be more sophisticated and bring [Inaudible] at more of a CPG oriented company that is really focused on delivering EBITDA. That means gross profit dollars. So that margin accretive and premium across the brand, but also within flower, I mean, incredibly important in our execution here over the next number of quarters. And so the mix, I think, if I can direct you to anything, please pay attention to the mix, as Miguel's outlined, in those categories rather than just pure sort of revenue market share allocation.
That will be the indicator of our success.
David Kideckel -- ATB Capital Markets -- Analyst
OK. Thank you. That's helpful. And just a follow-up for me.
More of a broader question here. In terms of international markets. I mean, you've talked a lot about the Canadian market. How does the international markets fit into your strategy right now?
Miguel Martin -- Chief Executive Officer
So from an international standpoint, the international revenue today continues to be largely from the German market. And that has been a consistent performer for the past few quarters. And we expect it to show growth into the future. We've had success in the German market.
We're actually No. 1 provider of flower, and we continue to see opportunities in the oil market. And we're close to achieving some really important regulatory milestones, including GMP certification in our operations in Denmark. Now that facility in Denmark will allow us to ship from Denmark to Germany and the rest of the EU and other parts of the world, particularly those parts of the world that really look for GMP products.
So we're bullish on the international market. We're not going to play everywhere. I think you're going to find us to be opportunistic. But the one thing I will say about the international market that also, I think, speaks to other opportunities, is it takes a lot of investment and it takes a lot of compliance experience, and it takes a lot of thought to be successful to the high standards that these international markets have.
Once you build those capabilities, which we continue to do in the Canadian market, in Germany and other markets, it becomes very portable. And I know everybody wants to talk about the high potential of the U.S. and these other markets. But clearly, as these larger markets come online, those companies, particularly the successful Canadian LPs that have demonstrated expertise in the Canadian market, interacting with Health Canada.
And in these other markets that are highly compliant and require a lot of infrastructure and thought puts us in a great position. So we'll continue to be opportunistic, we feel good about the international business. We feel that medical, in many cases, leads to rack opportunities. And that muscle memory that we're developing there can be portable in a way that it's definitely advantageous to us as these markets continue to open.
David Kideckel -- ATB Capital Markets -- Analyst
OK.
Operator
Our next question comes from the line of Andrew Carter with Stifel. You may proceed with your question.
Andrew Carter -- Stifel Financial Corp. -- Analyst
Hey. Thanks Good afternoon. My question is just kind of going back to what was implied in the consumer performance. You've got a stable medical business.
And perhaps you might want to comment on Reliva as well as to how that's trending, it's in line with acquisition. It's pretty significant step down. And the step down is well ahead of kind of what we're seeing in the consumption data. So a couple of questions to that.
Are you seeing anything? Is there any disruption in the orders from the provinces that Ontario would be picking up with stores? Are you missing orders because you talked a lot about execution on pre-rolls concentrates, etc. Could you help us with any more clarity kind of what's going on beyond that?
Miguel Martin -- Chief Executive Officer
Sure, Andrew. I'll be happy to. So I mean you can see it in the headset data the company made a big push in the discount in that February to April time period, built a lot of share. Everybody piled in.
It became sort of a bit of a race, who would have the lowest priced product. The company did not have other products, whether it's in the premium flower business or vapor or pre-rolled. And because those categories also grew at exceptional rate Aurora did not keep pace with category growth, lost share, and therefore, the step down. So I'm not trying to be defensive.
I think you can see what the opportunities were. You can see one competitor, in particular, that did really well. He had a fully articulated portfolio, high levels of availability and visibility. They did well in a finite number of those adjacent categories, particularly vapor and pre-rolls.
And that's the model we're going to follow. So it's going to be — I know I'm going to sound repetitive, but it has worked. It will work. I think the benefit we have now is we had a bit of a distraction with the reset and the factory stuff going on.
We do have great brands. We do have the products coming online. And at the same time that you see on tearing others. So when you look at the provinces, the provinces operate like any other wholesaler in the U.S.
They don't play favorites. They want to make money. They want to have a certain amount of days on hand, and they want to service their retailers. So as brands in this dynamic category, they've done pretty good job, particularly Ontario and others.
And so when you don't have the offerings and your brand is declining share, it's less about the execution. I'm not worried about that. If we have the right offerings and the right product categories, particularly in premium and super premium, which they were also incentivized to push because they make more money on it, then we'll be there. So I'm not worried about that.
If we can take care of what we need to take care of, and I feel good we will, we'll have the support of the provinces who operate as wholesalers and we'll have the support of the retailers. And again, I just highlight the finite number of retailers. I mean I've worked in systems where you're talking about hundreds of thousands of retailers. This is about 1,000.
And so with proper sales execution, which I have a long history of and engagement, I don't think there's anything systemic or systematic in the provinces and the retailers that holds us back. We just did not participate. We lost share because we didn't have the right premium offerings in flower, and we weren't there on vapor and pre-rolls. Those things will be fixed.
As for Reliva — sorry, go ahead.
Andrew Carter -- Stifel Financial Corp. -- Analyst
No. That was it. I was going to Reliva next, but you go ahead.
Miguel Martin -- Chief Executive Officer
OK. As far [Inaudible] about Reliva. Reliva, 99-plus percent of its sales are brick-and-mortar, and you might ask during a COVID environment, why? Two reasons. One is because the retailers that we partner with, and we're exclusive with some of the largest retailers in the country.
We own over 23,000 stores, which I think may be the most. They've taken a really dim view at those that have pivoted to online sales. And so we decided to place a long ball and not do that. Secondly, we're very bullish on what we've heard out of the FDA and I don't think that hinges on the November political decision.
You have Senator McConnell on the Republican side, he's the biggest cheerleader of industrial hemp. And obviously, it's been a good issue for the Democrats. But the reality is, as a retail driven company, COVID really hurts Reliva. Now given its variable nature and not a lot of fixed costs, it's not losing money, but it's not making a material amount of money.
Now the deal, as was announced, contemplated a performance-based metric so if Reliva doesn't perform that back-end of the payment to the shareholders, obviously, will not be there. But it's a wonderful optionality. And I will remind people that to this day, Reliva is the No. 1 ranked Nielsen companies and No.
2 in IRI. And so it's a wonderful optionality. And when the FDA goes forward, those companies with a history of compliance and in brick-and-mortar will win, and I think will be a wonderful asset and even at its most conservative estimate, CBD represents over $1.8 billion or $2 billion in retail revenue. So the real hidden gem in this whole thing, and when we talk about global cannabinoids, is leveraging Aurora's science and innovation on the non-THC parts of the portfolio, which could be bigger than the THC parts of the portfolio, particularly with positive FDA action in the U.S.
Andrew Carter -- Stifel Financial Corp. -- Analyst
Fair enough. And some of this quarter, obviously, was some cuts and the focus on cost savings. So in terms of — as you're trying to get back in the game, I guess, you've got another round of restructuring. Kind of what comfort can you give — that you have the right investments in place and perhaps investments don't even need to go higher from here and that you can successfully execute these restructuring and grow market share here, and I'll pass it on.
Miguel Martin -- Chief Executive Officer
We don't — there's not — if you look at capex or other investments, I mean what I've described can be handled by the production facilities, the marketing and sales organization and everything that we have. So we're going to be nimble and more agile. But from an infrastructure standpoint, I don't see an added investment required. And as the category continues to move, I think you'll find us to be pretty agile around it.
My background has been lower fixed and higher variable. Obviously, this category and this company is a little bit different, but we'll do what it takes to be competitive in the marketplace. But the simple answer to your question is there's no big investments we need to make to be competitive in premium flower, vapor, pre-rolls or concentrates.
Glen Ibbott -- Chief Financial Officer
I'll just add to that. I mean it's been a massive change from where we were a number of quarters ago, and so we call in the question or we had a sustainable level. We absolutely believe that current level is sustainable. I'm certainly capable of supporting a much bigger revenue business.
What happened, I think, is that we had to strip it down to the core market. There was a whole lot of noncore assets and distraction. So stripping away, as you said, we've divested a number of noncore businesses taking complexity of the business. rationalizing our production footprint to gain taking complexity out of the business and really focusing on something that should be fairly straightforward.
We produce and deliver a number of brands across the category. So the better, best of Miguel's world. And we sustain a number of different categories that all derive from cannabis and extract. So it's a fairly simple conceptual business, and we have made it very complicated because of all the optionality we've given ourselves over the years.
So with time to take all that out, we're down at a nice level right now, I think, is very sustainable over the next number of quarters.
Andrew Carter -- Stifel Financial Corp. -- Analyst
Thanks.
Operator
Our next question comes from the line of Tamy Chen with BMO Capital Markets. You may proceed with your question.
Tamy Chen -- BMO Capital Markets -- Analyst
Thanks for the question. First, I just want to ask, can you elaborate a bit more on some of the material weaknesses in certain internal controls that was referenced in an earlier press release and how you will remedy these?
Glen Ibbott -- Chief Financial Officer
Yes. Absolutely, Tamy. This was our first year as the Sox recorder. And quite frankly, with the company such as ours has been built through acquisition, it was a monumental challenge.
And then you throw the COVID pandemic in on top of that where everybody then had to scatter and start working remotely. It was incredibly complex. The material weaknesses, and you'll see them in our MD&A that we'll file in a couple of days, for the most part, revolve around the number of IT systems that we have, many of them scheduled for decommissioning but that were slowed down as part of business transformation and quite frankly COVID and things like that. So we ended up at the year-end, still using some systems we hadn't expected to use.
So there are some issues, like minor issues and should be minor, but issues of segregation in the duties within the system. So there was nothing in there that causes us pause. We're actually, I say, somewhat comforted that a lot of it's been remediated already and the remediation plan for the remainder, for the most part, revolves around finishing the full implementation of the ERP system that's been under way for a while now. It did not result in any material errors or [Inaudible] restatement.
So I'd have to say the outcome of this, given the environment, given the first year of [Inaudible] and incredibly complicated the company behind the scenes at that time was a pretty good outcome. So again, no errors, no restatements and a clear path forward during the [Inaudible] of this year.
Tamy Chen -- BMO Capital Markets -- Analyst
OK. Got it. Thank you. And my follow-up is just going back to the premium strategy, Miguel, that you're talking about.
I'm just wondering, when you talk about this, what is it specifically that you have your eye on that consumers are willing to pay up for? And what are your data analysts telling you because every company or licensed producer sort of says a similar thing that it's the high THC, a lot of terpenes on the vapes, good quality hardware, no leakage. I mean, surely you won't be the only one that can potentially succeed on this. So I'm just trying to understand going forward, when you're trying to push this premium strategy, I mean, is there something more to it that sets up a more proprietary or defensible moat for you in this segment?
Miguel Martin -- Chief Executive Officer
Yes. I mean I think — well, first and foremost, it's being done today, right? Not everyone is just selling discount products. So the environment, the consumer, the trade all have had an aptitude for premium products. Now the trade is an important one, and it's when I've spent most of my career on.
If you talk to the retailers in the provinces, they want to sell more premium products. So there's finite space in the retail stores, there's finite delivery windows. So everyone sort of wants that. In terms of what we're going to do different, Aurora has a long history in strong cooperation.
And a variety of other things they bring there. So when you look at the consumer cues of what they're willing to pay more for, higher potency, higher terpenes, consistency, brand quality, strains some of that IP and genetics that we see that has been positive with other companies and us in past innovations. So Whistler, for a long time, has been a super premium brand, where the company has been able to sell everything that it's been able to make because of that strong organic nature. And so we're going to do more with that and bring those cues into vapor.
Now I'll be more than happy to spend a lot of time on all the reasons why someone is more willing to pay more for our super premium, premium vapor experience. You can see it in packs. You can see the non THC products. Whether it's the technology, the materials, the ecosystem, the software, those are all things that I have a long history with.
On pre-rolls, you see in California and Colorado, the premiumness of the input, the paper, the packaging, the branding. I mean, these are all sort of things you can do but it's being done today. I mean so if you look across the environment in Canada, there are companies being successful, both big and small with premium offerings in all the core categories. I think the sort of stable brands we have and the quality and the consistency we're going to be able to put out a really laser focused on the trade, which I spent a lot of time on in a finite number of stores.
Given where we were, which was not a focus on those items, and a real push on Daily Special as a discount proposition and the results we had, I think, you're going to see a big delta. And we'll see. I mean, take a look at the headset data, and I think you'll know quickly how we're doing.
Tamy Chen -- BMO Capital Markets -- Analyst
OK. Thank you.
Operator
Our next question comes from the line of Matt McGinley with Needham. You may proceed with your question.
Matt McGinley -- Needham and Company -- Analyst
Thank you. You took $135 million in inventory impairments in the fourth quarter, but you produced 44,000 kilograms in that quarter. And you alluded to the fact that you expect inventory to continue to build for a number of quarters. I think, you said at around 35,000 kilograms per quarter, but you're selling it in the fourth quarter under 17,000 kilograms.
So I guess there still seems to be a disconnect between the inventory build and what the sales levels would be, especially given the shift to premium product, which presumably would mean would be siphoning on fewer kilograms. So I guess what causes you to reach equilibrium on the inventory? And do you feel like you're at any risk of taking additional impairments in the future, given there's such a disconnect between what you're producing versus what you're selling?
Glen Ibbott -- Chief Financial Officer
A couple of things will impact that as we look forward. One, there's a note that we may add in our press release, and I alluded to it in my remarks, there'd be more, of course, in the MD&A and financials. But we took a look at — we continue to understand the market better and better, and we exclude products that are in demand, which meet how much we need on hand. So a lot of the write-off in June 30 was there was some older, slower moving product from a number of quarters ago, but there's a lot of it was trim.
And so we took that down and then we also took a look at the way we allocate our costs within our inventory. So we've changed the methodology to put a much heavier weighting on flower and much reduced weighting on trim. I mean, that makes probably a lot of sense. And I know one or two of our peers have taken that step, and I expect everybody will have to at some point.
But what that does for us is a couple of things. In terms of volume, we do expect that with some of the execution and operational improvements that we're in the midst of making, that we should see traction across the categories that use flower. And don't misread the remarks, I think, it's not that we don't expect to continue to ship volumes into a discount market. It's we just need a much more balanced portfolio, and, I think, as Miguel said, it's even maybe take a look at which pack size is delivering the most profit and things like that.
But it's not that we exit that. We just need a balance in our portfolio. So we still expect that to consumed volume. And quite honestly, Miguel said we didn't participate in category growth.
I don't say that this market is starting to get — it's getting plenty big enough. And our expectation and certainly, what we see from market expectations is that it should continue to grow. So we think by simply just stepping up, executing better, participating in market growth and maybe over participating in those categories we want to be, we should see an increase in the volumes consumed. But the other just subtle point is that we won't be building up much in terms of dollar value on our balance sheet related to trim because it's got a very low-cost allocation now.
Matt McGinley -- Needham and Company -- Analyst
Got it. And the EBITDA guidance for the second quarter, you expect that to be positive. And I assume the SG&A doesn't have any big variance there, but what gives you the confidence that the revenue or the gross margin is going to increase given that both have declined in the prior quarters. Did you see trends improve in September? Or is this kind of all on the covenants that portfolio is repositioned into your fiscal second quarter?
Glen Ibbott -- Chief Financial Officer
Yes. Well, let me start, and then Miguel will, I'm sure, add some support to this. So Miguel arrived in the CCO chair beginning of July and then was promoted to CEO shortly thereafter. He's the right guy with the right experience and certainly a track record of executing in exactly this situation.
So we have to, and we are in the process of kind of just make — arresting the decline that we saw over the last few months and getting back in to even keel there. And then there's a number of initiatives, specific initiatives that are focused more on the higher-margin dollars. So let me call it — I'll use the term you'll probably hear, Martin, more from you in the future, quality revenue. So as opposed to this revenue, quality revenue for me, that's what delivered a healthy gross profit dollar as opposed to simply just a gross margin percentage.
I used the example of Whistler. And that's an extreme example where it delivers 10x the gross profit dollars at the discount brand might. But that our route forward in putting dollars on the bottom line is not to sell more of a large pack discount brand, which delivers some dollars, but not a ton, is to play in the category to deliver real dollars to the gross profit line. So the initiatives that we have under way are those.
They're the ones that deliver real gross profit dollars not just percentage. So that means quality, healthy revenue, and that's the focus, and that's the piece that needs to be — we need traction there. And as Miguel said, you can watch the headset data or other markets data that you get, and you should see us performing in those categories. And that's a different revenue dollar than the stuff the discount category delivers.
All revenue dollars are not created equally, and that's an important part of our reset and refocus going forward.
Miguel Martin -- Chief Executive Officer
Yes. I mean, I guess the only thing I'd add is you see where the SG&A is going. You've heard what the plans are. I mean, I will still say, I mean, even with the amount of discount business, the company did in the previous quarter to have the margins land where they landed, is a good indicator that there is upside there.
And so the math isn't too complicated. I think, our indication are that we actually get the premium plan with these adjacent products. We should get what we need on that side of it.
Matt McGinley -- Needham and Company -- Analyst
Great. Thank you.
Miguel Martin -- Chief Executive Officer -- Analyst
You're very welcome.
Operator
Ladies and gentlemen, we have reached the end of today's question-and-answer session. I would like to turn your call back over to Mr. Miguel Martin for closing remarks.
Miguel Martin -- Chief Executive Officer
Thank you so much, and I want to thank everybody for joining today's call. I'm honored to be a part of this team, and I really look forward to leading Aurora to success. And I hope you and all your families are safe in this world. We wish you all the best.
Be good.
Operator
[Operator signoff]
Duration: 66 minutes
Call participants:
Miguel Martin -- Chief Executive Officer
Glen Ibbott -- Chief Financial Officer
Vivien Azer -- Cowen and Company -- Analyst
Pablo Zuanic -- Cantor Fitzgerald -- Analyst
Michael Lavery -- Piper Sandler -- Analyst
David Kideckel -- ATB Capital Markets -- Analyst
Andrew Carter -- Stifel Financial Corp. -- Analyst
Tamy Chen -- BMO Capital Markets -- Analyst
Matt McGinley -- Needham and Company -- Analyst
More ACB analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Inc. (NYSE: ACB) Q4 2020 Earnings Call Sep 22, 2020, 5:00 p.m. Operator [Operator signoff] Duration: 66 minutes Call participants: Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Pablo Zuanic -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst David Kideckel -- ATB Capital Markets -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Matt McGinley -- Needham and Company -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Listeners are reminded that certain matters discussed in today's conference call or answers that may be given to questions asked could constitute forward-looking statements that are subject to the risks and uncertainties relating to Aurora's future financial or business performance. | Operator [Operator signoff] Duration: 66 minutes Call participants: Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Pablo Zuanic -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst David Kideckel -- ATB Capital Markets -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Matt McGinley -- Needham and Company -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis Inc. (NYSE: ACB) Q4 2020 Earnings Call Sep 22, 2020, 5:00 p.m. So while growth in the consumer cannabis revenue was not expected in Q1 2021, our medical business is expected to remain steady, and we expect traction from our execution of consumer market share tactical plan as Miguel will outline for you shortly to show results beginning in Q2. | Operator [Operator signoff] Duration: 66 minutes Call participants: Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Pablo Zuanic -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst David Kideckel -- ATB Capital Markets -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Matt McGinley -- Needham and Company -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aurora Cannabis Inc. (NYSE: ACB) Q4 2020 Earnings Call Sep 22, 2020, 5:00 p.m. So while growth in the consumer cannabis revenue was not expected in Q1 2021, our medical business is expected to remain steady, and we expect traction from our execution of consumer market share tactical plan as Miguel will outline for you shortly to show results beginning in Q2. | Aurora Cannabis Inc. (NYSE: ACB) Q4 2020 Earnings Call Sep 22, 2020, 5:00 p.m. Operator [Operator signoff] Duration: 66 minutes Call participants: Miguel Martin -- Chief Executive Officer Glen Ibbott -- Chief Financial Officer Vivien Azer -- Cowen and Company -- Analyst Pablo Zuanic -- Cantor Fitzgerald -- Analyst Michael Lavery -- Piper Sandler -- Analyst David Kideckel -- ATB Capital Markets -- Analyst Andrew Carter -- Stifel Financial Corp. -- Analyst Tamy Chen -- BMO Capital Markets -- Analyst Matt McGinley -- Needham and Company -- Analyst More ACB analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. And it's our target around EBITDA, profitability and being margin accretive that is much more the focus of the company than an overall company market share. |
37274.0 | 2020-09-22 00:00:00 UTC | Stock Markets Rebound as Amazon Chases Peloton; High Hopes for Aurora Cannabis | ACB | https://www.nasdaq.com/articles/stock-markets-rebound-as-amazon-chases-peloton-high-hopes-for-aurora-cannabis-2020-09-22 | nan | nan | Tuesday finally gave investors the rally that they'd been looking for. After a gloomy September that's featured several significant pullbacks, market participants finally seemed to feel a bit more confident about the prospects for stocks surviving the often-challenging early fall season. Gains came across the board for major benchmarks, although as we've seen a lot lately, the Dow Jones Industrial Average (DJINDICES: ^DJI) lagged behind the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC).
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow Jones Industrials
+0.52%
+140
S&P 500
+1.05%
+35
Nasdaq Composite
+1.71%
+185
Data source: Yahoo! Finance.
Among noteworthy stocks, Amazon.com (NASDAQ: AMZN) made headlines with yet another bold move to try to muscle its way into a niche that a smaller company has already pioneered. Meanwhile, Aurora Cannabis (NYSE: ACB) had marijuana investors excited going into its quarterly earnings report after the bell, with many hoping that the long-suffering cannabis sector might finally bounce back.
Breaking away
Shares of Amazon rose almost 6%. Some of that gain was probably due more to the overall market rebound than company-specific news. However, what got the most attention was the e-commerce giant's announcement regarding connected fitness equipment, as it signaled a direct assault on bike and treadmill pioneer Peloton Interactive (NASDAQ: PTON).
Peloton rival Echelon launched a connected stationary bike that will be sold exclusively on Amazon. The EX-Prime Smart Connect Bike, or the Prime Bike for short, seeks to offer a similar connected experience to Peloton's products at a lower cost. The Prime Bike will retail for $499, a fraction of what Peloton bikes cost.
Echelon said that it developed the bike "in collaboration with Amazon," signaling a more active role from the tech titan than just giving Echelon a place to sell its equipment. Echelon intends to offer a lineup of interactive fitness classes that's similar to what Peloton subscribers get. What's missing is Peloton's connected screen, but Echelon says that people can connect their own mobile devices to the bike.
Shares of Peloton largely held their own, moving lower by just a fraction of a percent. What's remains to be seen is whether Peloton will retain the cachet of a high-end premium brand while Echelon and Amazon end up duking it out with other low-priced equipment makers.
Image source: Getty Images.
Aurora stirs the pot
Meanwhile, Aurora Cannabis shares gained 16% in the regular session, but they were extremely volatile in after-hours trading. The marijuana company released its fiscal fourth-quarter results, and in contrast to what some analysts on Wall Street had hoped, the numbers weren't entirely satisfying.
Coming into the report, investors had hoped that the views of analysts at Jefferies would prove to be prescient. Jefferies had praised Aurora for making progress in cutting operating costs. Even though analysts remained concerned about the company having enough cash to cover needed investments, the stock price had already fallen enough to warrant that risk.
Yet Aurora's results were still lackluster. Revenue for the quarter was down 5% from fiscal Q3, with a larger drop in consumer sales. Even though sales volumes of dried cannabis jumped 36%, declines in pricing power offset the higher volume. Increased production contributed to pressure on prices as well. Significant impairment charges also weighed on results, including a $1.6 billion writedown on goodwill and intangible assets.
In response, the stock was down 9% in after-hours trading about 45 minutes after the release. That still left the share price higher than where it started the day, but Aurora has work to do before it will convince investors that the marijuana stock is in a sustainable recovery mode.
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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. | Meanwhile, Aurora Cannabis (NYSE: ACB) had marijuana investors excited going into its quarterly earnings report after the bell, with many hoping that the long-suffering cannabis sector might finally bounce back. After a gloomy September that's featured several significant pullbacks, market participants finally seemed to feel a bit more confident about the prospects for stocks surviving the often-challenging early fall season. However, what got the most attention was the e-commerce giant's announcement regarding connected fitness equipment, as it signaled a direct assault on bike and treadmill pioneer Peloton Interactive (NASDAQ: PTON). | Meanwhile, Aurora Cannabis (NYSE: ACB) had marijuana investors excited going into its quarterly earnings report after the bell, with many hoping that the long-suffering cannabis sector might finally bounce back. The EX-Prime Smart Connect Bike, or the Prime Bike for short, seeks to offer a similar connected experience to Peloton's products at a lower cost. Aurora stirs the pot Meanwhile, Aurora Cannabis shares gained 16% in the regular session, but they were extremely volatile in after-hours trading. | Meanwhile, Aurora Cannabis (NYSE: ACB) had marijuana investors excited going into its quarterly earnings report after the bell, with many hoping that the long-suffering cannabis sector might finally bounce back. That still left the share price higher than where it started the day, but Aurora has work to do before it will convince investors that the marijuana stock is in a sustainable recovery mode. The Motley Fool owns shares of and recommends Amazon, Jefferies Financial Group Inc., and Peloton Interactive and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. | Meanwhile, Aurora Cannabis (NYSE: ACB) had marijuana investors excited going into its quarterly earnings report after the bell, with many hoping that the long-suffering cannabis sector might finally bounce back. The EX-Prime Smart Connect Bike, or the Prime Bike for short, seeks to offer a similar connected experience to Peloton's products at a lower cost. Aurora stirs the pot Meanwhile, Aurora Cannabis shares gained 16% in the regular session, but they were extremely volatile in after-hours trading. |
37275.0 | 2020-09-22 00:00:00 UTC | Aurora Cannabis sees Q1 revenue below estimates, shares fall | ACB | https://www.nasdaq.com/articles/aurora-cannabis-sees-q1-revenue-below-estimates-shares-fall-2020-09-22 | nan | nan | Adds share move
Sept 22 (Reuters) - Canadian pot producer Aurora Cannabis Inc ACB.TO, ACB.N on Tuesday forecast first-quarter revenue below analysts' estimates, sending its U.S-listed shares tumbling 15%.
The coronavirus outbreak has made it harder for the cash-strapped cannabis industry to get investor dollars and has forced companies to shut their stores.
To survive the challenging times, Aurora has laid off hundreds of employees this year, shut five facilities and amended its loan agreements.
However, the pot producer on Tuesday reiterated its expectation to post an adjusted profit for the first time in the second quarter, as it attempts to turn its fortunes around.
For most weed producers in Canada, which legalized recreational cannabis in October 2018, profits have proven to be elusive due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth.
Aurora forecast first-quarter cannabis net revenue to be between C$60 million ($45.11 million) and C$64 million, below estimates of C$79.62 million, according to Refinitiv IBES data.
The company also posted fourth-quarter revenue of C$72.11 million, compared with analysts' estimates of C$72.08 million.
($1 = 1.3302 Canadian dollars)
(Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren Daniel)
((Arunima.Kumar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds share move Sept 22 (Reuters) - Canadian pot producer Aurora Cannabis Inc ACB.TO, ACB.N on Tuesday forecast first-quarter revenue below analysts' estimates, sending its U.S-listed shares tumbling 15%. To survive the challenging times, Aurora has laid off hundreds of employees this year, shut five facilities and amended its loan agreements. However, the pot producer on Tuesday reiterated its expectation to post an adjusted profit for the first time in the second quarter, as it attempts to turn its fortunes around. | Adds share move Sept 22 (Reuters) - Canadian pot producer Aurora Cannabis Inc ACB.TO, ACB.N on Tuesday forecast first-quarter revenue below analysts' estimates, sending its U.S-listed shares tumbling 15%. Aurora forecast first-quarter cannabis net revenue to be between C$60 million ($45.11 million) and C$64 million, below estimates of C$79.62 million, according to Refinitiv IBES data. The company also posted fourth-quarter revenue of C$72.11 million, compared with analysts' estimates of C$72.08 million. | Adds share move Sept 22 (Reuters) - Canadian pot producer Aurora Cannabis Inc ACB.TO, ACB.N on Tuesday forecast first-quarter revenue below analysts' estimates, sending its U.S-listed shares tumbling 15%. Aurora forecast first-quarter cannabis net revenue to be between C$60 million ($45.11 million) and C$64 million, below estimates of C$79.62 million, according to Refinitiv IBES data. The company also posted fourth-quarter revenue of C$72.11 million, compared with analysts' estimates of C$72.08 million. | Adds share move Sept 22 (Reuters) - Canadian pot producer Aurora Cannabis Inc ACB.TO, ACB.N on Tuesday forecast first-quarter revenue below analysts' estimates, sending its U.S-listed shares tumbling 15%. The coronavirus outbreak has made it harder for the cash-strapped cannabis industry to get investor dollars and has forced companies to shut their stores. To survive the challenging times, Aurora has laid off hundreds of employees this year, shut five facilities and amended its loan agreements. |
37276.0 | 2020-09-22 00:00:00 UTC | After Hours Most Active for Sep 22, 2020 : TSLA, GPRO, AAPL, BAC, NKE, RCM, QQQ, ACB, PINS, SWN, BABA, SFIX | ACB | https://www.nasdaq.com/articles/after-hours-most-active-for-sep-22-2020-%3A-tsla-gpro-aapl-bac-nke-rcm-qqq-acb-pins-swn-baba | nan | nan | The NASDAQ 100 After Hours Indicator is up 7.25 to 10,840.58. The total After hours volume is currently 114,065,294 shares traded.
The following are the most active stocks for the after hours session:
Tesla, Inc. (TSLA) is -29.15 at $395.08, with 11,076,155 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $0.17. TSLA's current last sale is 133.93% of the target price of $295.
GoPro, Inc. (GPRO) is +0.04 at $4.19, with 9,320,679 shares traded. GPRO's current last sale is 95.23% of the target price of $4.4.
Apple Inc. (AAPL) is -1.21 at $110.60, with 5,213,994 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. The consensus EPS forecast is $0.69. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $23.94, with 5,122,524 shares traded. BAC's current last sale is 88.67% of the target price of $27.
Nike, Inc. (NKE) is +15.28 at $132.15, with 4,323,102 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Nov 2020. The consensus EPS forecast is $0.55. , following a 52-week high recorded in today's regular session.
R1 RCM Inc. (RCM) is unchanged at $15.41, with 4,223,755 shares traded. As reported in the last short interest update the days to cover for RCM is 9.629775; this calculation is based on the average trading volume of the stock.
Invesco QQQ Trust, Series 1 (QQQ) is -1.08 at $271.40, with 3,528,013 shares traded. This represents a 64.55% increase from its 52 Week Low.
Aurora Cannabis Inc. (ACB) is -1.32 at $6.00, with 3,523,237 shares traded. Reuters Reports: BUZZ-U.S. STOCKS ON THE MOVE-VTv Therapeutics Inc, SPI Energy Co Ltd, Carvana Co, Stitch Fix Inc
Pinterest, Inc. (PINS) is -0.15 at $40.40, with 2,530,316 shares traded. PINS's current last sale is 115.43% of the target price of $35.
Southwestern Energy Company (SWN) is -0.01 at $2.50, with 2,220,112 shares traded. SWN's current last sale is 83.33% of the target price of $3.
Alibaba Group Holding Limited (BABA) is -0.99 at $274.30, with 2,147,516 shares traded. BABA's current last sale is 94.59% of the target price of $290.
Stitch Fix, Inc. (SFIX) is -5.15 at $26.23, with 2,053,006 shares traded. As reported in the last short interest update the days to cover for SFIX is 14.290717; this calculation is based on the average trading volume of the stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Inc. (ACB) is -1.32 at $6.00, with 3,523,237 shares traded. As reported in the last short interest update the days to cover for RCM is 9.629775; this calculation is based on the average trading volume of the stock. Reuters Reports: BUZZ-U.S. STOCKS ON THE MOVE-VTv Therapeutics Inc, SPI Energy Co Ltd, Carvana Co, Stitch Fix Inc | Aurora Cannabis Inc. (ACB) is -1.32 at $6.00, with 3,523,237 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. As reported in the last short interest update the days to cover for RCM is 9.629775; this calculation is based on the average trading volume of the stock. | Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2020. Aurora Cannabis Inc. (ACB) is -1.32 at $6.00, with 3,523,237 shares traded. The total After hours volume is currently 114,065,294 shares traded. | Aurora Cannabis Inc. (ACB) is -1.32 at $6.00, with 3,523,237 shares traded. TSLA's current last sale is 133.93% of the target price of $295. GPRO's current last sale is 95.23% of the target price of $4.4. |
37277.0 | 2020-09-22 00:00:00 UTC | Why Aurora Cannabis Stock Is Flying High Today | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-stock-is-flying-high-today-2020-09-22 | nan | nan | What happened
Shares of Aurora Cannabis (NYSE: ACB) were flying 18.5% higher as of 1:26 p.m. EDT on Tuesday. There were two likely factors behind the big gain. Jefferies analyst Owen Bennett upgraded Aurora to hold from underperform on Monday. Also, investors could be hoping for some good news with the company's fiscal 2020 Q4 update later today.
So what
It's probably best to not make too much out of Aurora's jump today. Both of the reasons behind the gain come with asterisks.
Image source: Getty Images.
While Jefferies' Bennett upgraded the marijuana stock, he also slashed his price target by nearly 38% to $6.53. Aurora's shares currently trade well above that target. In addition, Bennett noted that the company continues to face liquidity challenges and will probably have to raise more cash.
What about the potential for good news from Aurora in its Q4 update? The company already provided a sneak peek at some of its results. And they weren't pretty. Aurora expects revenue to slip from Q3. Also, it's taking a staggering goodwill write-off of 1.8 billion Canadian dollars ($1.35 billion).
The company also pushed back its timeline for achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to fiscal 2021 Q2. Aurora previously predicted that it would do so a quarter before that.
Now what
It's possible that Aurora's new CEO, Miguel Martin, could have some positive news to share in the quarterly update later today (at 5 p.m.). However, it's also possible that today's big gain could evaporate tomorrow. Aurora Cannabis remains a very risky bet.
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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 flying 18.5% higher as of 1:26 p.m. EDT on Tuesday. The company also pushed back its timeline for achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to fiscal 2021 Q2. 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 Shares of Aurora Cannabis (NYSE: ACB) were flying 18.5% higher as of 1:26 p.m. EDT on Tuesday. Also, investors could be hoping for some good news with the company's fiscal 2020 Q4 update later today. While Jefferies' Bennett upgraded the marijuana stock, he also slashed his price target by nearly 38% to $6.53. | What happened Shares of Aurora Cannabis (NYSE: ACB) were flying 18.5% higher as of 1:26 p.m. EDT on Tuesday. Now what It's possible that Aurora's new CEO, Miguel Martin, could have some positive news to share in the quarterly update later today (at 5 p.m.). 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. | What happened Shares of Aurora Cannabis (NYSE: ACB) were flying 18.5% higher as of 1:26 p.m. EDT on Tuesday. Also, investors could be hoping for some good news with the company's fiscal 2020 Q4 update later today. Now what It's possible that Aurora's new CEO, Miguel Martin, could have some positive news to share in the quarterly update later today (at 5 p.m.). |
37278.0 | 2020-09-22 00:00:00 UTC | Is Aurora Cannabis a Buy Ahead of Earnings Today? Analyst Weighs In | ACB | https://www.nasdaq.com/articles/is-aurora-cannabis-a-buy-ahead-of-earnings-today-analyst-weighs-in-2020-09-22 | nan | nan | It has been a bleak year so far for Canadian cannabis producer Aurora Cannabis (ACB), with shares crashing by a hefty 70%. The company will have an opportunity to reverse course when it releases second-quarter results after the market closes today.
Ahead of the print, Jefferies analyst Owen Bennett has an idea what to expect.
Two weeks ago, Aurora released an update on the quarter’s events and guided for a sequential drop in cannabis net sales and at the same time pushed back its target to be EBITDA positive from 1Q21 to 2Q21. However, the company also reduced its SG&A (selling, general and administrative) expense, of which Bennett notes the “progress on costs has been impressive.” Yet the analyst also argues Aurora is not out of the woods just yet with its liquidity problems, which in the near-term remain a risk “especially if the company is to continue to invest behind its top line strength like it should.”
“The problem for ACB has been its sizeable cost base, and not only the liquidity issues that come with this, but also communication around this which has damaged its credibility,” Bennett said. “To this, we don't think anyone can dispute its progress in bringing costs in to more sustainable levels has not been impressive (the current quarterly run rate of cC$40mn compares over C$100mn in Q2 FY20). If it can maintain the top line strength, then it should not be long until bottom line contribution starts to match.”
So, with “liquidity risk now much better reflected in the valuation” Bennett upgraded his rating on ACB from Underperform (i.e. Sell) to Hold. That said, Bennett also expects the company to make full use of its ATM and believes additional equity raises are a possibility. Therefore, the price target is slashed from C$14 ($10.53) to C$8.7 ($6.54), implying an 11% downside from current levels. (To watch Bennett’s track record, click here)
Rating wise, it is a similar story amongst Bennett’s colleagues. The stock has a Hold consensus rating based on 2 Buys and 8 Holds. However, the $10.92 average price target implies shares will rise by a hefty 50% over the next 12 months. (See ACB 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. | However, the company also reduced its SG&A (selling, general and administrative) expense, of which Bennett notes the “progress on costs has been impressive.” Yet the analyst also argues Aurora is not out of the woods just yet with its liquidity problems, which in the near-term remain a risk “especially if the company is to continue to invest behind its top line strength like it should.” “The problem for ACB has been its sizeable cost base, and not only the liquidity issues that come with this, but also communication around this which has damaged its credibility,” Bennett said. It has been a bleak year so far for Canadian cannabis producer Aurora Cannabis (ACB), with shares crashing by a hefty 70%. If it can maintain the top line strength, then it should not be long until bottom line contribution starts to match.” So, with “liquidity risk now much better reflected in the valuation” Bennett upgraded his rating on ACB from Underperform (i.e. Sell) to Hold. | If it can maintain the top line strength, then it should not be long until bottom line contribution starts to match.” So, with “liquidity risk now much better reflected in the valuation” Bennett upgraded his rating on ACB from Underperform (i.e. Sell) to Hold. (See ACB 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. It has been a bleak year so far for Canadian cannabis producer Aurora Cannabis (ACB), with shares crashing by a hefty 70%. | However, the company also reduced its SG&A (selling, general and administrative) expense, of which Bennett notes the “progress on costs has been impressive.” Yet the analyst also argues Aurora is not out of the woods just yet with its liquidity problems, which in the near-term remain a risk “especially if the company is to continue to invest behind its top line strength like it should.” “The problem for ACB has been its sizeable cost base, and not only the liquidity issues that come with this, but also communication around this which has damaged its credibility,” Bennett said. If it can maintain the top line strength, then it should not be long until bottom line contribution starts to match.” So, with “liquidity risk now much better reflected in the valuation” Bennett upgraded his rating on ACB from Underperform (i.e. Sell) to Hold. (See ACB 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. | It has been a bleak year so far for Canadian cannabis producer Aurora Cannabis (ACB), with shares crashing by a hefty 70%. If it can maintain the top line strength, then it should not be long until bottom line contribution starts to match.” So, with “liquidity risk now much better reflected in the valuation” Bennett upgraded his rating on ACB from Underperform (i.e. Sell) to Hold. However, the company also reduced its SG&A (selling, general and administrative) expense, of which Bennett notes the “progress on costs has been impressive.” Yet the analyst also argues Aurora is not out of the woods just yet with its liquidity problems, which in the near-term remain a risk “especially if the company is to continue to invest behind its top line strength like it should.” “The problem for ACB has been its sizeable cost base, and not only the liquidity issues that come with this, but also communication around this which has damaged its credibility,” Bennett said. |
37279.0 | 2020-09-22 00:00:00 UTC | Aurora Cannabis (ACB) 4th Quarter Earnings: What to Expect | ACB | https://www.nasdaq.com/articles/aurora-cannabis-acb-4th-quarter-earnings%3A-what-to-expect-2020-09-22 | nan | nan | A
urora Cannabis (ACB) is set to report fourth quarter fiscal 2020 earnings results after the closing bell Tuesday. Marijuana stocks have largely underperformed the market over the past year, evidenced by the 53% twelve-month decline of the ETFMG Alternative Harvest ETF (MJ), compared to the 10% rise for the S&P 500 index during that span.
Aurora stock is down 73% year to date, including a loss of 32% just in the past thirty days. It has been one of the hardest hit names. When expanding that horizon over the past one year and three years, its shares are down 90% and 74%, respectively. Investors want to know whether pot can be profitable, particularly for Aurora which, due to its bold expansion strategy, was once a favorite among pot investors?
Vivien Azer, analyst at Cowen and Company believes political roadblocks are the biggest factor impacting the cannabis industry. "We believe 2020 will be remembered more for symbolic votes on cannabis than for any substantive change in the law,” Azer noted last week. “Despite broad House support for various cannabis bills, Senate Majority Leader Mitch McConnell is an obstacle that we do not believe can be overcome in the next several weeks.”
This would seem to be an ominous sign for the entire pot industry which has suffered through gross margins weakness, along with high operating costs as the battle over legalization persists. In the case of Aurora, which has faced various pandemic-induced headwinds such as store closures, it is also dealing with profitability issues related to what now appears as “questionable timing” related to its acquisition spending spree and the adverse effect of those decisions.
In the three months that ended August, Wall Street expect the Edmonton, Alberta-based company to report a per-share loss of $7.44 on revenue of $54.41 million. This compares to the year-ago quarter of 0 cents per share on revenue of $74.98 million. For the full year, the loss is expected to be $17.31 per share, while full-year revenue is expected to rise 11.18% year over year to $208.89 million.
In the third quarter the company beat on both the top and bottom lines, reporting a smaller-than- expected loss as customers in the United States and Canada stockpiled cannabis ahead of lockdowns. Cannabis was deemed an essential service in several provinces and states across Canada and the Unites States. The third-quarter adjusted third quarter loss fell to $36.18 million. Third quarter revenue, excluding provisions of $2.9 million, rose 18% sequentially to $78.4 million.
This was the company’s first full quarter that included results from its “cannabis 2.0 portfolio,” which includes vapes, edible gummies, chocolates and beverages. The company sold 12,729 kilograms of cannabis during the quarter, which was up 39% year over year. The company said it was on track to be profitable in the next fiscal year and doubled down on its plans to keep capital expenditure below $100 million in the second half of the year.
On Tuesday if Aurora can show profit improvements, low cash burn rate, improved return on investments, the stock may yet rebound. While some estimates still suggest that the pot industry can grow between $50 billion and $75 billion in annual revenue in the next ten years, it’s all predicated on the battle over legalization.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | urora Cannabis (ACB) is set to report fourth quarter fiscal 2020 earnings results after the closing bell Tuesday. Marijuana stocks have largely underperformed the market over the past year, evidenced by the 53% twelve-month decline of the ETFMG Alternative Harvest ETF (MJ), compared to the 10% rise for the S&P 500 index during that span. “Despite broad House support for various cannabis bills, Senate Majority Leader Mitch McConnell is an obstacle that we do not believe can be overcome in the next several weeks.” This would seem to be an ominous sign for the entire pot industry which has suffered through gross margins weakness, along with high operating costs as the battle over legalization persists. | urora Cannabis (ACB) is set to report fourth quarter fiscal 2020 earnings results after the closing bell Tuesday. For the full year, the loss is expected to be $17.31 per share, while full-year revenue is expected to rise 11.18% year over year to $208.89 million. This was the company’s first full quarter that included results from its “cannabis 2.0 portfolio,” which includes vapes, edible gummies, chocolates and beverages. | urora Cannabis (ACB) is set to report fourth quarter fiscal 2020 earnings results after the closing bell Tuesday. For the full year, the loss is expected to be $17.31 per share, while full-year revenue is expected to rise 11.18% year over year to $208.89 million. The company sold 12,729 kilograms of cannabis during the quarter, which was up 39% year over year. | urora Cannabis (ACB) is set to report fourth quarter fiscal 2020 earnings results after the closing bell Tuesday. Aurora stock is down 73% year to date, including a loss of 32% just in the past thirty days. When expanding that horizon over the past one year and three years, its shares are down 90% and 74%, respectively. |
37280.0 | 2020-09-21 00:00:00 UTC | 4 Top Stock Trades for Tuesday: ROKU, GLD, ACB, AZO | ACB | https://www.nasdaq.com/articles/4-top-stock-trades-for-tuesday%3A-roku-gld-acb-azo-2020-09-21 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks started off with a painful drop in Monday morning’s trading session and investors are still trying to figure out the depth of this decline. In the meantime, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Roku (ROKU)
Click to Enlarge
Source: Chart courtesy of StockCharts.com
Roku (NASDAQ:ROKU) came to a distribution agreement with Comcast’s (NASDAQ:CMCSA) Peacock platform, but the modest open did not quite suggest such a strong move was coming.
The stock opened higher by 3.5% on the day, which was solid given the selling pressure engulfing the broader market. However, not many investors realized that would soon translate to 17% burst a few | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks started off with a painful drop in Monday morning’s trading session and investors are still trying to figure out the depth of this decline. Click to Enlarge Source: Chart courtesy of StockCharts.com Roku (NASDAQ:ROKU) came to a distribution agreement with Comcast’s (NASDAQ:CMCSA) Peacock platform, but the modest open did not quite suggest such a strong move was coming. The stock opened higher by 3.5% on the day, which was solid given the selling pressure engulfing the broader market. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks started off with a painful drop in Monday morning’s trading session and investors are still trying to figure out the depth of this decline. In the meantime, let’s look at a few top stock trades. Top Stock Trades for Tomorrow No. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks started off with a painful drop in Monday morning’s trading session and investors are still trying to figure out the depth of this decline. 1: Roku (ROKU) Click to Enlarge Source: Chart courtesy of StockCharts.com Roku (NASDAQ:ROKU) came to a distribution agreement with Comcast’s (NASDAQ:CMCSA) Peacock platform, but the modest open did not quite suggest such a strong move was coming. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks started off with a painful drop in Monday morning’s trading session and investors are still trying to figure out the depth of this decline. In the meantime, let’s look at a few top stock trades. Top Stock Trades for Tomorrow No. |
37281.0 | 2020-09-21 00:00:00 UTC | Why Marijuana Stocks Dropped Today | ACB | https://www.nasdaq.com/articles/why-marijuana-stocks-dropped-today-2020-09-21 | nan | nan | What happened
Canadian marijuana stock Aurora Cannabis (NYSE: ACB) won an upgrade from investment banker Jefferies Group this morning -- and the stock promptly tanked, falling 2.9% through 1:30 p.m. EDT. Larger marijuana producing rivals Canopy Growth (NYSE: CGC) and Aphria (NASDAQ: APHA) are down as well, 3.9% and 5.2%, respectively.
Suffice it to say, this is not how upgrades usually work.
Image source: Getty Images.
So what
Then again, this was kind of an unusual upgrade that Jefferies made.
Far from a full-throated endorsement of Aurora Cannabis stock, Jefferies only upgraded the shares from underperform to hold -- basically just removing its sell rating from the stock, and not actually recommending that anyone buy it. Moreover, even as Jefferies upgraded the shares, it downgraded its price target on Aurora Cannabis.
Instead of the 14 Canadian dollar-a-share target it previously assigned to the stock, Jefferies now says Aurora Cannabis stock is only worth CA$8.70 -- about $6.58, or just a few pennies more than what Aurora Cannabis was selling for before Jefferies made its "upgrade."
Essentially, therefore, Jefferies told investors that it didn't see much chance of Aurora Cannabis shares climbing any higher for the next 12 months -- which probably explains why investors aren't too enthusiastic about it today.
Now what
So much for Aurora Cannabis. Now why are Aurora's rivals' stocks also falling?
The answer to that question may lie in what Jefferies predicted for Aurora. The company faces "near-term liquidity risks" reports TheFly.com, and in order to continue investing in building out production it will probably need to raise more capital by selling shares. Presumably, other marijuana producers will have to keep on spending to match Aurora's investments, exacerbating the cash drain at Canopy Growth and Aphria as well. (None of these three companies are profitable or generating cash, by the way. All three are burning cash.)
That doesn't mean all three are in precisely the same boat, however, or explain why Canopy and Aphria stocks are going down more than Aurora Cannabis today. After all, in contrast to Aurora Cannabis, which carries $263 million more debt on its books than it has cash on hand, Aphria actually has $60 million more cash on its books than debt, and Canopy Growth has a cash surplus of more than $1 billion.
Granted, until these companies begin generating positive free cash flow, even these sizable cash reserves will remain at risk -- but the way I see it, the risk is greater at Aurora Cannabis than at Canopy Growth or Aphria.
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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 Canadian marijuana stock Aurora Cannabis (NYSE: ACB) won an upgrade from investment banker Jefferies Group this morning -- and the stock promptly tanked, falling 2.9% through 1:30 p.m. EDT. Larger marijuana producing rivals Canopy Growth (NYSE: CGC) and Aphria (NASDAQ: APHA) are down as well, 3.9% and 5.2%, respectively. The company faces "near-term liquidity risks" reports TheFly.com, and in order to continue investing in building out production it will probably need to raise more capital by selling shares. | What happened Canadian marijuana stock Aurora Cannabis (NYSE: ACB) won an upgrade from investment banker Jefferies Group this morning -- and the stock promptly tanked, falling 2.9% through 1:30 p.m. EDT. Larger marijuana producing rivals Canopy Growth (NYSE: CGC) and Aphria (NASDAQ: APHA) are down as well, 3.9% and 5.2%, respectively. After all, in contrast to Aurora Cannabis, which carries $263 million more debt on its books than it has cash on hand, Aphria actually has $60 million more cash on its books than debt, and Canopy Growth has a cash surplus of more than $1 billion. | What happened Canadian marijuana stock Aurora Cannabis (NYSE: ACB) won an upgrade from investment banker Jefferies Group this morning -- and the stock promptly tanked, falling 2.9% through 1:30 p.m. EDT. Far from a full-throated endorsement of Aurora Cannabis stock, Jefferies only upgraded the shares from underperform to hold -- basically just removing its sell rating from the stock, and not actually recommending that anyone buy it. Instead of the 14 Canadian dollar-a-share target it previously assigned to the stock, Jefferies now says Aurora Cannabis stock is only worth CA$8.70 -- about $6.58, or just a few pennies more than what Aurora Cannabis was selling for before Jefferies made its "upgrade." | What happened Canadian marijuana stock Aurora Cannabis (NYSE: ACB) won an upgrade from investment banker Jefferies Group this morning -- and the stock promptly tanked, falling 2.9% through 1:30 p.m. EDT. Now what So much for Aurora Cannabis. Granted, until these companies begin generating positive free cash flow, even these sizable cash reserves will remain at risk -- but the way I see it, the risk is greater at Aurora Cannabis than at Canopy Growth or Aphria. |
37282.0 | 2020-09-20 00:00:00 UTC | Weekly Preview: Stocks to Watch (ACB, ACN, COST, SFIX) | ACB | https://www.nasdaq.com/articles/weekly-preview%3A-stocks-to-watch-acb-acn-cost-sfix-2020-09-20 | nan | nan | S
tocks didn’t close at their intraday troughs on Friday, but “lower lows” is anything but an encouraging sign, particularly as the economy attempts to recover from a pandemic that has caused tens of millions of Americans to be out of work.
Over the past few weeks I’ve talked about the massive disconnect that exists between the real economy and the stock market. With the stock market falling some 5% over the past month, it now appears — at least to some observers — that an alignment forming. And this suggests that both the economy and the stock market are waiting for more fiscal stimulus before both can march higher. This puts Congress at the center of the debate, where Democrats and Republicans have shown little-to-no progress on the next stimulus package, which has frustrated investors.
Stocks closed lower Friday, extending their third-straight week of declines. The Dow Jones Industrial Average lost 244.56 points or 0.9% to close at 27,657.42. The S&P 500 index was down by 1.1%, or 37.54 points, to close at 3,319.47, while the Nasdaq Composite Index fell 116.99 points, 1.1%, to close at 10,793.28. As it stands, the Dow is now down about 3% month-to-date, while the S&P500 index — which closed below its 50-day moving average — was down 5%. The Nasdaq has suffered the most, losing 8.34% since its peak earlier this month.
Obviously, investors are getting impatient. The question is, when will the government step up? And given the modest economic recovery seen over the past three months, what is (or will be) the catalyst that will force government intervention? There was a point when many believed the market had shot up too fast and attributed (rightly so) much of the gains to actions by the Federal Reserve and the Treasury. With still limited clarity on a vaccine and uncertainty surrounding the presidential election, there are a tons of unknowns that can drive stocks in either direction.
In the meantime, here are this week’s names to keep an eye on.
Aurora Cannabis (ACB) - Reports after the close, Tuesday, Sept 22
Wall Street expects Aurora to report a per-share loss of $6.70 on revenue of $54.41 million. This compares to the year-ago quarter of 0 cents per share on revenue of $74.98 million.
What to watch: Aurora stock is down 73% year to date, including a loss of 32% just in the past thirty days. And when expanding that horizon over the past one year and three years, the shares are down 90% and 74%, respectively. Investors want to know whether pot can be profitable. Vivien Azer, analyst at Cowen and Company believes political roadblocks are the biggest factor impacting the industry. "We believe 2020 will be remembered more for symbolic votes on cannabis than for any substantive change in the law,” Azer noted last week. “Despite broad House support for various cannabis bills, Senate Majority Leader Mitch McConnell is an obstacle that we do not believe can be overcome in the next several weeks.” This would seem an ominous sign for Aurora and the entire industry which has suffered through gross margins weakness, along with high operating costs as the battle over legalization persists.
Stitch Fix (SFIX) - Reports after the close, Tuesday, Sept 22
Wall Street expects Stitch Fix to lose 16 cents per share on revenue of $414.54 million. This compares to the year-ago quarter when earnings came to 7 cents per share on revenue of $432.15 million.
What to watch: Shares of Stitch Fix have rebounded sharply, surging 110% in the past six months, suggesting investors are not as worried about the company’s ability to survive the weakened economy. The company’s Stitch Fix’s direct-buy concept is now seen as a significant competitive advantage amid the stay-at-home restrictions. What’s more, its data-centric business strategy is seen capable of driving an acceleration in revenue growth over the next several quarters. For the stock to keep rising, analysts on Tuesday will want to see revenue growth acceleration, along with improved profit margins. Investors will closely monitor the company’s international expansion efforts to assess long-term growth prospects and profitability.
Accenture (ACN) - Reports before the open, Thursday, Sept. 24
Wall Street expects Accenture to earn $1.73 per share on revenue of $10.89 billion. This compares to the year-ago quarter when earnings came to $1.74 per share on revenue of $11.06 billion.
What to watch: After a slow start to the year, Accenture shares have come roaring back over the past six months, surging some 50%, outperforming the 32% rise of the S&P 500 index in that span. Questions were raised about the prospect of discretionary IT spending, which some analysts believed would take more than a year to sort out. But Accenture seems to believe the recovery has already begun, or at least, is aiming to get ahead of it. The company recently announced the formation of Accenture Cloud First, spending some $3 billion over three years. The company says the initiative aims to help clients across all industries rapidly become “cloud first” businesses and accelerate their digital transformation. Analysts will want to know how to factor this $3 billion investment into their earnings projections.
Costco (COST) - Reports after the close, Thursday, Sept. 24
Wall Street expects Costco to earn $2.81 per share on revenue of $52.03 billion. This compares to the year-ago quarter when earnings came to $2.69 per share on revenue of $47.5 billion.
What to watch: Expectations are high heading into Costco’s earnings report as many analysts project sustained market share gains for the nation’s largest warehouse retailer. Notably, this is despite what has been weak consumer data, showing a double-digit percentage decline in retail sales. Costco’s “buy in bulk” business profile has made it a standout during the pandemic as consumers rushed to stockpile on household products such as toilet paper. Its membership business model continues to receive praise. Not only is Costco still finding ways not to grow its membership total, the company also getting its club members to spend more. But can this continue with so many Americans out of work?
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) - Reports after the close, Tuesday, Sept 22 Wall Street expects Aurora to report a per-share loss of $6.70 on revenue of $54.41 million. tocks didn’t close at their intraday troughs on Friday, but “lower lows” is anything but an encouraging sign, particularly as the economy attempts to recover from a pandemic that has caused tens of millions of Americans to be out of work. “Despite broad House support for various cannabis bills, Senate Majority Leader Mitch McConnell is an obstacle that we do not believe can be overcome in the next several weeks.” This would seem an ominous sign for Aurora and the entire industry which has suffered through gross margins weakness, along with high operating costs as the battle over legalization persists. | Aurora Cannabis (ACB) - Reports after the close, Tuesday, Sept 22 Wall Street expects Aurora to report a per-share loss of $6.70 on revenue of $54.41 million. Stitch Fix (SFIX) - Reports after the close, Tuesday, Sept 22 Wall Street expects Stitch Fix to lose 16 cents per share on revenue of $414.54 million. Costco (COST) - Reports after the close, Thursday, Sept. 24 Wall Street expects Costco to earn $2.81 per share on revenue of $52.03 billion. | Aurora Cannabis (ACB) - Reports after the close, Tuesday, Sept 22 Wall Street expects Aurora to report a per-share loss of $6.70 on revenue of $54.41 million. Stitch Fix (SFIX) - Reports after the close, Tuesday, Sept 22 Wall Street expects Stitch Fix to lose 16 cents per share on revenue of $414.54 million. What to watch: Shares of Stitch Fix have rebounded sharply, surging 110% in the past six months, suggesting investors are not as worried about the company’s ability to survive the weakened economy. | Aurora Cannabis (ACB) - Reports after the close, Tuesday, Sept 22 Wall Street expects Aurora to report a per-share loss of $6.70 on revenue of $54.41 million. Stocks closed lower Friday, extending their third-straight week of declines. Costco (COST) - Reports after the close, Thursday, Sept. 24 Wall Street expects Costco to earn $2.81 per share on revenue of $52.03 billion. |
37283.0 | 2020-09-20 00:00:00 UTC | What's Wrong With Charlotte's Web? | ACB | https://www.nasdaq.com/articles/whats-wrong-with-charlottes-web-2020-09-20 | nan | nan | Charlotte's Web (OTC: CWBHF) was supposed to be a safe bet. Its hemp-based products are federally legal (unlike their cousin, marijuana), and consumers can buy them at more than 21,000 retail locations across the country. Charlotte's Web also sells products directly to consumers through its website. However, the company's share price is down more than 60% this year, nowhere near the Horizons Marijuana Life Sciences ETF (OTC: HMLSF), which is down 8.5%, or the S&P 500, up about 3%.
Investors are trying to figure out what's going wrong for this once-profitable company. It was a stock that -- once upon a time -- I saw as one of the safer plays in cannabis. But after the company posted a fourth straight loss in the recent quarter, it's become clear that this is no longer the case. Let's take a closer look at the company's results to see what's happening with the business and whether you should consider buying shares of Charlotte's Web during its dive.
Online sales are not strong enough to generate top-line growth
One of the reasons I was optimistic about the company's recent quarterly report was Charlotte's Web's strong direct-to-consumer (DTC) segment. The business segment seemed set to thrive as people turned to online shopping in the face of stay-at-home orders and lockdowns when the coronavirus pandemic hit. After all, many retailers have benefitted because they offer robust online options for customers. In their most recent quarterly earnings results, Walmart reported 97% e-commerce growth, Target's online sales were up by 195%, and Lowe's reported online revenue which rose 135% from the prior-year period.
However, when Charlotte's Web released its second-quarter results on Sept. 14 for the period ending June 30, sales of $21.6 million were down 13.6% year over year. DTC sales accounted for 71.8% of revenue and rose by 33.6% year over year. Unfortunately, that just wasn't nearly enough to offset lower in-store sales and less foot traffic at retail locations.
Image source: Getty Images.
While lockdowns are a legitimate reason for a decline in sales, it's not a reason to invest that stock pickers should readily act on. Despite shutdowns, the cannabis industry has fared well, with many states posting record sales numbers in recent months. Colorado sales came in over $200 million in July, the first time it's hit that mark in the summer month. Illinois set a new record in August with almost $64 million in revenue, and Ohio set a record in July with $21 million in medical marijuana sales.
Charlotte's Web's poor numbers could be a sign that people are turning from hemp to marijuana for its higher potency. Hemp is limited to 0.3% tetrahydrocannabinol (THC) content. If the material is comprised of more than 0.3%, it's considered marijuana, and therefore, illegal. THC is the psychoactive component in cannabis. Customers who use Charlotte's Web's hemp-based products do so for medicinal purposes, but plenty of cannabis-users continue to seek products with higher THC levels.
This is a concerning sign for investors. And even before the pandemic, there were growth problems for Charlotte's Web. Although more stores are carrying its products, increased product exposure hasn't translated into revenue growth. Investors noted the issue when the company released its fourth-quarter results, and it still remains a problem. In June, the company announced that it closed the acquisition of hemp company Abacus Health, which would allow it to distribute products in over 21,000 locations. That's up from over 8,000 retail locations as of the end of Q2 last year, when Charlotte's Web's sales topped $25 million.
Did the company make a big mistake in expanding too soon?
Charlotte's Web incurred a loss of $14.4 million in Q2, down from a profit of $2.2 million in the prior-year period. The glaring difference: A sharp increase in general and administrative costs. At $21.1 million, Charlotte's Web's expenditures in this category alone were nearly as much as its total revenue. Its personnel costs of $9 million are now more than triple the $2.9 million it spent a year ago. Legal and professional services cost $7 million and rose by 122% year over year.
When the company released its third-quarter earnings on Nov. 13, 2019, one of the key announcements was its move into a new 136,610 square feet facility, which would increase capacity by 10 times and result in cost savings by the third quarter of 2020. As of this past quarter, Charlotte's Web stated that it has moved its warehousing and fulfillment operations to the new location but it won't be fully operational until early 2021.
But with all of that expected growth and expansion comes more staff. This past quarter, Charlotte's Web reported a headcount of 318 -- up 42.6% from the 223 people it employed in the same period last year.
In its earnings release, the company did say that management was "initiating an expense optimization program targeting a 10% reduction in consolidated expense run rate by the end of 2020." However, that may not be nearly enough to get the company back to breakeven -- certainly not if sales continue to struggle.
In retrospect, the company's rapid expansion and focus on growth may prove to be its undoing, as its losses are undoubtedly keeping many investors away.
Why you shouldn't invest in Charlotte's Web today
If a company isn't generating sales growth amid the pandemic, it should be tearing down costs wherever it can. With the company's bloated headcount, a 10% reduction in costs isn't going to accomplish much. The company's general and admin costs shouldn't be anywhere near its total revenue. Until Charlotte's Web makes some serious, deep cuts, investors should stay far away from this stock.
More and more companies are getting into the U.S. hemp market, with Canopy Growth, Tilray, and Aurora Cannabis among some of the big-name competition that Charlotte's Web will have to fend off -- and that's just from Canada. The field is going to get even more crowded, making market capture even more difficult in the future. If Charlotte's Web can no longer turn a profit at around $20 million in revenue, then there's little hope that future periods will be any better.
Unfortunately, this once safe cannabis stock is no longer a conservative bet. Until the company gets its expenses significantly down, investors should expect shares of Charlotte's Web to continue declining.
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 recommends Charlotte's Web. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The business segment seemed set to thrive as people turned to online shopping in the face of stay-at-home orders and lockdowns when the coronavirus pandemic hit. When the company released its third-quarter earnings on Nov. 13, 2019, one of the key announcements was its move into a new 136,610 square feet facility, which would increase capacity by 10 times and result in cost savings by the third quarter of 2020. More and more companies are getting into the U.S. hemp market, with Canopy Growth, Tilray, and Aurora Cannabis among some of the big-name competition that Charlotte's Web will have to fend off -- and that's just from Canada. | Online sales are not strong enough to generate top-line growth One of the reasons I was optimistic about the company's recent quarterly report was Charlotte's Web's strong direct-to-consumer (DTC) segment. In their most recent quarterly earnings results, Walmart reported 97% e-commerce growth, Target's online sales were up by 195%, and Lowe's reported online revenue which rose 135% from the prior-year period. Why you shouldn't invest in Charlotte's Web today If a company isn't generating sales growth amid the pandemic, it should be tearing down costs wherever it can. | Online sales are not strong enough to generate top-line growth One of the reasons I was optimistic about the company's recent quarterly report was Charlotte's Web's strong direct-to-consumer (DTC) segment. However, when Charlotte's Web released its second-quarter results on Sept. 14 for the period ending June 30, sales of $21.6 million were down 13.6% year over year. Why you shouldn't invest in Charlotte's Web today If a company isn't generating sales growth amid the pandemic, it should be tearing down costs wherever it can. | However, when Charlotte's Web released its second-quarter results on Sept. 14 for the period ending June 30, sales of $21.6 million were down 13.6% year over year. That's up from over 8,000 retail locations as of the end of Q2 last year, when Charlotte's Web's sales topped $25 million. Until the company gets its expenses significantly down, investors should expect shares of Charlotte's Web to continue declining. |
37284.0 | 2020-09-20 00:00:00 UTC | 3 Things to Watch For Before You Buy Aurora Cannabis Stock | ACB | https://www.nasdaq.com/articles/3-things-to-watch-for-before-you-buy-aurora-cannabis-stock-2020-09-20 | nan | nan | Aurora Cannabis (NYSE: ACB), once a favorite among pot investors because of its bold expansion strategy, lost steam in 2019. Aurora's shares declined 56% last year, compared to a 36% decline of the industry benchmark, the Horizons Marijuana Life Sciences Index ETF. Various external headwinds in Canada affected revenue, and some of management's rash decisions -- including an acquisition spending spree -- made it impossible for the company to achieve profitability.
Marijuana sales have been rising in 2020, particularly because of the coronavirus pandemic, which has amplified consumer demand. Aurora is seeing revenue growth this year, but it hasn't been enough to turn into a profit. The company has made strides to reduce expenses in order to achieve positive EBITDA (earnings before income, tax, depreciation, and amortization) by fiscal year 2021. But to what extent those strategies have played out will be clear when it announces its fourth-quarter results on Sept. 22. Before you decide whether to buy this pot stock, watch out for these three updates in its reports.
Image source: Getty Images.
1. Cost-reduction efforts
To regain investors' confidence, Aurora presented business transformation plans in June called "facility rationalizations" that were intended to help reduce costs. The company had decided to close five of its small-scale facilities over the next two quarters and consolidate a few of its Canadian production and manufacturing units. Meanwhile, it planned to ramp up production at its Nordic facility in Europe.
In its recent business update, dated Sept. 8, the company finally addressed the issues in its balance sheet. The press release stated a list of impairment charges the company expects in the fourth quarter. They are:
Fixed asset impairment charges up to 90 million Canadian dollars associated with its facility rationalization
An approximate charge of $140 million linked to the carrying value of certain inventory
A non-cash writedown of goodwill and intangible assets (the company did not specify the details of the charges) that could come in between $1.6 to $1.8 billion
Aurora has also improved its financial flexibility through credit facility amendments and stated that it expects cost reductions of up to CA$10 million per quarter starting in the second half of fiscal 2021.
2. Update on cannabis derivatives products
Canada made cannabis derivatives products legal in October 2019 as part of "cannabis 2.0 " legalization, an extension of the recreational adult-use legalization that happened in October 2018. Derivative products include edibles, vapes, chocolates, concentrates, beverages, and more.
Aurora announced its variety of derivatives products in December 2019, including CBD (cannabidiol) and THC (tetrahydrocannabinol) vapes, concentrates, and edibles (gummies, chocolates, baked goods, and mints). But since then, the company hasn't given updates on any new products. It hasn't shown much interest in cannabis beverages, either, a decision that may not prove wise.
Peer Canopy Growth (NYSE: CGC) has been very busy launching its new cannabis derivatives products, which include beverages. It released these and a variety of cannabis-infused chocolates and vape products in May. Canopy is already enjoying good sales and positive feedback for its beverage offerings. It has shipped close to $1.2 million cans to the Canadian province since the launch. The U.S cannabis beverages market alone could be worth $2.8 billion by 2025, according to Grand View Research.
The entire cannabis derivatives market could be worth CA$2.7 billion annually, with cannabis-infused beverages alone generating close to CA$529 million, according to Deloitte research.
If the estimates for beverages prove right, Aurora could lose out while peers enjoy the revenue gains from these new products.
3. Growth strategy
Aurora has focused on growing its markets internationally, targeting a few countries where cannabis hasn't obtained its full market potential. Its business is spread over 25 countries across five continents, which now seems like a bold and hasty decision. Perhaps Aurora's focus should have been to solidify its position in its home country before turning to opportunities abroad. Look at how Aphria (NASDAQ: APHA) CEO Irwin Simon's strategy of focusing core operations in Canada has worked out for business. Aphria is the only profitable cannabis company with five consecutive quarters of positive EBITDA.
Aurora could also use some help from closer-to-home U.S. markets. U.S. cannabis companies have seen some impressive revenue growth this year even with a limited (and legally confusing) marijuana market. Although cannabis is still an illegal drug under federal law, 33 states and the District of Colombia have made medical cannabis legal, while recreational cannabis is allowed in 11 states and D.C.
Image source: Getty Images.
Aurora's baby steps in this direction include its acquisition of hemp-derived CBD company Reliva, for $40 million of its common stock. The buy could absolutely help Aurora make a mark in the U.S. Reliva boasts around 20,000 retail stores and has successfully produced positive EBITDA over the past 12 months, for the period ended March 31.
Adding to Aurora's competitive advantage is the hiring of Miguel Martin as CEO, which the company announced in its recent business update. Martin served as CEO of Reliva before moving over to serve as Aurora's chief commercial officer this July.
Keep an eye on its efforts to recover
Investors should pay attention to what Aurora's management chooses to focus on in the fourth-quarterearnings call especially regarding the three points stated above. Shares of Aurora have fallen the furthest in the industry, almost 75% so far this year, compared to Canopy and Aphria's respective declines of 22% and 10%. The Horizons Marijuana Life Sciences Index ETF has fallen 8.6% over the same period.
ACB data by YCharts
But not all hope is lost for Aurora. It can still turn things around if it religiously follows its cost strategies and continues to reduce expenses. The Canadian market is slowly advancing, after being held up with regulatory delays and oversupply, just a few reasons for the drop in sales last year. Ontario authorized its 100th retail store in June.
A few more U.S. states have marijuana legalization on the ballot this year, which could spell more opportunities for Aurora. The company also can use its new CEO's expertise in consumer goods and cannabis sectors to its advantage.
The only tweak in Aurora's recent update was the company postponing achieving positive EBITDA again to the second quarter of fiscal 2021. Aurora has time and again missed its deadlines and targets, which has made investors skeptical. Unless the company provides firm assurance and evidence on Sept. 22, this marijuana stock is one 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 – 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), once a favorite among pot investors because of its bold expansion strategy, lost steam in 2019. ACB data by YCharts But not all hope is lost for Aurora. Cost-reduction efforts To regain investors' confidence, Aurora presented business transformation plans in June called "facility rationalizations" that were intended to help reduce costs. | Aurora Cannabis (NYSE: ACB), once a favorite among pot investors because of its bold expansion strategy, lost steam in 2019. ACB data by YCharts But not all hope is lost for Aurora. Aurora's shares declined 56% last year, compared to a 36% decline of the industry benchmark, the Horizons Marijuana Life Sciences Index ETF. | Aurora Cannabis (NYSE: ACB), once a favorite among pot investors because of its bold expansion strategy, lost steam in 2019. ACB data by YCharts But not all hope is lost for Aurora. They are: Fixed asset impairment charges up to 90 million Canadian dollars associated with its facility rationalization An approximate charge of $140 million linked to the carrying value of certain inventory A non-cash writedown of goodwill and intangible assets (the company did not specify the details of the charges) that could come in between $1.6 to $1.8 billion Aurora has also improved its financial flexibility through credit facility amendments and stated that it expects cost reductions of up to CA$10 million per quarter starting in the second half of fiscal 2021. | Aurora Cannabis (NYSE: ACB), once a favorite among pot investors because of its bold expansion strategy, lost steam in 2019. ACB data by YCharts But not all hope is lost for Aurora. But since then, the company hasn't given updates on any new products. |
37285.0 | 2020-09-19 00:00:00 UTC | Is Cresco Labs Stock a Buy? | ACB | https://www.nasdaq.com/articles/is-cresco-labs-stock-a-buy-2020-09-19 | nan | nan | When you think about marijuana stocks, popular Canadian cannabis companies including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) likely come to mind. But there are several U.S. marijuana companies that are thriving amid the coronavirus pandemic -- yet are being overlooked.
Most U.S. cannabis companies have outperformed their Canadian counterparts this year. Illinois-based Cresco Labs (OTC: CRLBF) had an impressive start to the year with its first-quarter results, and it continued to shine with its stunning second-quarter results, reported on Aug. 20.
Shares of Cresco are down 20% so far this year, while Aurora's and Canopy's shares have lost 73% and 22%, respectively. Meanwhile, the industry benchmark, the Horizons Marijuana Life Sciences Index ETF, is down by 6.3% over the same period. Let's take a look at what was good in Cresco's second quarter.
CRLBF data by YCharts
Another quarter of staggering revenue growth
The COVID-19 pandemic has helped marijuana sales to soar, and more and more people are accepting the drug as a consumer staple. Demand for cannabis, which is known to help with anxiety, climbed in the U.S. amid the pandemic. Demand is high in Canada as well, but regulatory holdups there have resulted in fewer legal stores than expected, affecting sales. Meanwhile, U.S. cannabis companies saw triple-digit revenue gains this year.
Cresco Labs manufactures and sells medical and recreational marijuana under the brand names Cresco, Reserve, Remedi, Good News, and High Supply via its retail and wholesale segments. Its retail segment sells medical and adult-use cannabis in the U.S. along with nicotine vape products in Canada. Its line of marijuana-infused edibles is created by James Beard award-winning pastry chef Mindy Segal. Its vertical integration allowed Cresco Labs to control its supply chain during the pandemic, and it didn't face any supply issues amid the crisis.
Image source: Getty Images.
Cresco saw a whopping 216% year-over-year jump in revenue to $94.2 million for its second quarter, ended June 30. It marked 30% sequential growth in all the U.S. markets where it operates, except for Massachusetts, which halted recreational cannabis sales for part of the second quarter.
Most of the revenue increase was driven by an uptick in wholesale cannabis, which made up 59% of total revenue, while retail cannabis contributed the remaining 41% in the quarter.
Cresco Labs is consistent in generating profits
Cresco's adjusted EBITDA jumped from $2.2 million in the year-ago period to $16.4 million in Q2. Management attributes the increase to higher revenue and a rise in "operational gross profit in Illinois and Pennsylvania."
What gives me confidence in this pot stock is its strategy of targeting key U.S. markets. It has a solid foundation in its home state of Illinois, with nine retail stores. Illinois has seen surging cannabis sales since recreational use was legalized in January, with $40 million worth of marijuana sold that month and a record-breaking $63 million in August. Illinois will issue 75 cannabis dispensary licenses to recreational pot retailers in the coming weeks, opening more doors for Cresco.
Another strong market for Cresco is Pennsylvania, where close to 390,000 people are registered in the medical marijuana program. In the Q2earnings call management also stated they see potential in Ohio and Maryland. The company ended the quarter with $71 million in cash and cash equivalents and $24 million in short-term and current long-term debt.
Image source: Getty Images.
How does 2020 look for the company?
Most U.S. cannabis companies are expanding at rocket speed with hopes of federal legalization by 2022. And several states-- including New Jersey, Mississippi, South Dakota, Arizona, and Montana -- have cannabis legalization initiatives on the 2020 ballot, allowing for more expansion opportunities. Management at Cresco expects recreational legalization in New York and Arizona (if and when it happens) to make their products available to a particularly large consumer base.
Cresco Labs is already targeting the key U.S. markets, and with more states making cannabis legal, this pot stock could soon be unstoppable. Triple-digit revenue, consistent profits, a good cash position, and a carefully planned strategy for the future make this stock a good cannabis pick.
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. | When you think about marijuana stocks, popular Canadian cannabis companies including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) likely come to mind. CRLBF data by YCharts Another quarter of staggering revenue growth The COVID-19 pandemic has helped marijuana sales to soar, and more and more people are accepting the drug as a consumer staple. And several states-- including New Jersey, Mississippi, South Dakota, Arizona, and Montana -- have cannabis legalization initiatives on the 2020 ballot, allowing for more expansion opportunities. | When you think about marijuana stocks, popular Canadian cannabis companies including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) likely come to mind. Cresco Labs is already targeting the key U.S. markets, and with more states making cannabis legal, this pot stock could soon be unstoppable. Triple-digit revenue, consistent profits, a good cash position, and a carefully planned strategy for the future make this stock a good cannabis pick. | When you think about marijuana stocks, popular Canadian cannabis companies including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) likely come to mind. Cresco Labs is already targeting the key U.S. markets, and with more states making cannabis legal, this pot stock could soon be unstoppable. 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. | When you think about marijuana stocks, popular Canadian cannabis companies including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) likely come to mind. How does 2020 look for the company? Cresco Labs is already targeting the key U.S. markets, and with more states making cannabis legal, this pot stock could soon be unstoppable. |
37286.0 | 2020-09-19 00:00:00 UTC | Is Aurora Cannabis Stock a Buy? | ACB | https://www.nasdaq.com/articles/is-aurora-cannabis-stock-a-buy-2020-09-19 | nan | nan | Aurora Cannabis (NYSE: ACB) has earned investor attention this year for one tough reason -- it's desperately trying to recover from a disastrous 2019. The stock dropped 56% last year, compared to the industry benchmark Horizons Marijuana Life Sciences ETF's decline of 36%. There were various external headwinds in Canada, such as regulatory delays that led to fewer legal stores, which allowed the black market to thrive. Furthermore, Aurora made rather haphazard spending decisions in a series of acquisitions and expansions, which have increased the company's debt burden. As of March, the company was toting a total debt of CA$593 million.
Cannabis sales have increased this year amid the pandemic, as the product continues to behave more like a consumer staple. Although revenue numbers look promising, profitability is still in question for many marijuana companies, including Aurora Cannabis. Aurora made some operational changes in June, which it calls "facility rationalizations," to reduce costs and improve its overall financial health. To what extent these measures have helped will be clearer when the company reports its fourth-quarter results on Sept. 22.
The company gave a sneak peek of where it is heading with its preliminary Q4 results and some other business updates on Sept. 8. And unfortunately, they weren't exactly appealing. Aurora's market cap has slipped from $812.7 million at the start of the year to $793 million as of Sept. 16. Let's take a look at the company's early updates before deciding whether the stock is a buy during its dip, or if savvy investors should stay far, far away.
Image Source: Getty Images.
Aurora's preliminary Q4 results don't look good
Aurora expects that its net revenue for Q4 will fall in the range of 70 million Canadian dollars to CA$72 million, slightly lower than third-quarter revenue of CA$75.5 million. Aurora also expects adjusted gross margin to ring in between 46% and 50%.
The recent press release also noted Aurora's efforts to reduce its selling, general, and administrative (SG&A) costs in Q4. Management expects SG&A costs to come in between CA$60 and CA$65 million, which is an improvement from CA$100 million in Q2. The company shut down some facilities in June as part of its facility rationalization plans, from which it expects operational cost reductions of up to CA$10 million per quarter starting in the second half of fiscal 2021.
Considering its measures to reduce costs, achieving profitability should, in theory, be easier. But that's not the case for Aurora. In its June business update, Aurora committed to achieving positive EBITDA by Q1 2021. However, now the company says that it will only be able to achieve positive EBITDA by the second quarter of fiscal 2021. EBITDA is a measure of profitability that determines how well the company is handling its operating expenses. The company also estimates it could record a whopping CA$1.8 billion in goodwill impairment charges in the fourth quarter, however, it didn't provide any further details about these charges.
A new CEO is in charge -- what's next?
In a separate press release on the same day, Aurora announced the appointment of Miguel Martin as its new CEO. Martin served as the company's chief commercial officer since July, before which he served as CEO of U.S. cannabidiol (CBD) company Reliva. Aurora acquired the hemp-derived company in March for $40 million of its common stock. Aurora hopes to expand its CBD market in the U.S. through the acquisition.
C-suite leadership changes are nothing new to the marijuana industry. Aurora's CEO Terry Booth stepped down in February, and last year, Canopy Growth (NYSE: CGC) CEO Bruce Linton's termination came after Constellation Brands (NYSE: STZ) made an initial investment of CA$245 million in October 2017. Constellation Brands wasn't happy with Canopy's recurring losses and believed a leadership change was essential. Constellation's CFO David Klein took over the role of Canopy's CEO effective Jan. 14.
Image Source: Getty Images.
Similar to Canopy, hopes are that Aurora's new CEO's experience in consumer goods will be advantageous for the company. There's other industry evidence of success from such a shift. Irwin Simon, who has 25 years of experience in the consumer packaging industry, turned Aphria (NASDAQ: APHA) around after he took the reigns as CEO. Aphria is currently the only profitable Canadian cannabis company -- it reported a consolidated adjusted-EBITDA of CA$8.6 million in its recent fourth quarter, which ended May 31.
It's still important to keep in mind that every CEO is different, and it could take some time for Miguel Martin to help Aurora turn things around.
Is it a buy?
In short -- not yet. First, Aurora pushed its deadline to hit positive EBITDA again, a move which feels eerily familiar. A similar thing happened in May 2019, when management assured investors in its Q3 2019earnings callthat it would report positive EBITDA by Q4 of fiscal 2019. However, it failed to achieve that goal and instead reported an adjusted EBITDA loss of CA$11.7 million in Q4 2019. Losses kept rising afterward. That history makes it difficult for investors to trust the company's guidance again.
Revenue is rising, no doubt, but unless it achieves profitability, Aurora could opt to dilute its stock in order to survive as it did in May. Aurora's stock price dropped below $1, which is against the New York Stock Exchange trading compliance. Once a stock trades below $1, NYSE sends out a listing notification to allow the company some time to get its stock price up. Aurora consolidated its shares in a 1-for-12 reverse stock split to save its stock from getting delisted.
A similar move would be tragic for the stock price, which is already deteriorating. Shares of Aurora are down 73% so far this year, while Canopy and Aphria have also declined by 22% and 11%, respectively. Meanwhile, the Horizons Marijuana Life Sciences ETF is down 6%. Marijuana stock pickers probably shouldn't hold their breath in wait of this company's Q4 results.
ACB data by YCharts
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 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. | Aurora Cannabis (NYSE: ACB) has earned investor attention this year for one tough reason -- it's desperately trying to recover from a disastrous 2019. ACB data by YCharts 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 made some operational changes in June, which it calls "facility rationalizations," to reduce costs and improve its overall financial health. | Aurora Cannabis (NYSE: ACB) has earned investor attention this year for one tough reason -- it's desperately trying to recover from a disastrous 2019. ACB data by YCharts 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. The stock dropped 56% last year, compared to the industry benchmark Horizons Marijuana Life Sciences ETF's decline of 36%. | Aurora Cannabis (NYSE: ACB) has earned investor attention this year for one tough reason -- it's desperately trying to recover from a disastrous 2019. ACB data by YCharts 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's preliminary Q4 results don't look good Aurora expects that its net revenue for Q4 will fall in the range of 70 million Canadian dollars to CA$72 million, slightly lower than third-quarter revenue of CA$75.5 million. | Aurora Cannabis (NYSE: ACB) has earned investor attention this year for one tough reason -- it's desperately trying to recover from a disastrous 2019. ACB data by YCharts 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. However, now the company says that it will only be able to achieve positive EBITDA by the second quarter of fiscal 2021. |
37287.0 | 2020-09-19 00:00:00 UTC | Better Marijuana Stock: Aphria vs. Aurora Cannabis | ACB | https://www.nasdaq.com/articles/better-marijuana-stock%3A-aphria-vs.-aurora-cannabis-2020-09-19 | nan | nan | Canadian cannabis sales are continuing to balloon amidst the coronavirus pandemic. The latest data from Statistics Canada show that in June, retail sales topped 201 million Canadian dollars and were up 8% from May's total sales. And during the second quarter, which ended June 30, revenue from the nationwide legal market finally finished ahead of the black market: That's the first time the licit market has come out on top since the Canadian government legalized marijuana in October 2018.
The Canadian pot market is showing more promise than ever, and two popular cannabis companies stand to benefit. Despite their historic difficulties in generating cash, paying off debts, and avoiding massive writedowns, Aphria (NASDAQ: APHA) and Aurora Cannabis (NYSE: ACB) could be poised to claim shares of the rapidly expanding marketplace. Today, I'll look at which stock is the better-positioned pick.
Will Aurora disappoint investors again this month?
Aurora will release its results for the fourth quarter ended June 30 on Sept. 22 -- and it will be a pivotal moment for the company.
Aurora has struggled in previous periods to grow its revenues and stay out of the red. Convincing investors to buy up this struggling stock, which is down more than 70% this year, will require the company to post stronger numbers ahead of a new fiscal year.
Image source: Getty Images.
Net revenue in its most recent quarter, ended March 30, totaled CA$75.5 million. While that was up from second-quarter revenue of CA$56 million, it was barely above first-quarter sales of CA$75.2 million. A year ago, in the fourth quarter, Aurora recorded net revenue of CA$98.9 million. Investors may recall this period as one of embarrassment. Aurora was left red-faced after missing its own forecast and sales projections, which it had released only a month earlier.
Unfortunately, all signs point to this being another underwhelming quarter. In a Sept. 8 update, Aurora announced that it expects Q4 net revenue to come in between CA$70 million and CA$72 -- well below Q3 numbers. And if that wasn't bad enough, it will record an impairment charge of up to CA$1.8 billion on goodwill. In addition, the company has decided to postpone its goal of reaching positive adjusted earnings before income taxes depreciation and amortization (EBITDA) to the second quarter of fiscal year 2021. That's a sharp change of course from June, when the Alberta-based company reported that it was on track for positive adjusted-EBITDA in Q1 2021.
Given all this negativity and the challenges ahead for Aurora in terms of both sales growth and profitability, it may not be surprising that Michael Singer is "delighted to now be transitioning the CEO responsibilities" to the company's new CEO, Miguel Martin. Martin has been Aurora's chief commercial officer since July, when he transferred over from Reliva, a company that makes hemp-based cannabidiol (CBD) products with a strong presence in the U.S. Reliva was acquired by Aurora in May.
Unless Aurora is purposely setting the bar low for the upcoming quarter, it looks like it'll be another disappointing period for the Canadian pot producer.
Aphria is coming off a tough quarter of its own
Ontario-based Aphria is normally more consistent than Aurora, and has been less of a disappointment to investors overall. In three of the last five quarters, Aphria has finished in the black, achieving positive earnings and profitability. Aurora has turned a profit just once in its past five quarters, which only happened because external income gave its bottom line a boost.
When Aphria released its fourth-quarter results on July 29 for the period ending in May, it reported a loss of CA$98.8 million. Impairment charges of CA$64 million weighed down its results, as did non-operating losses of CA$23 million. Despite a disappointing bottom line, Aphria still achieved positive adjusted-EBITDA for the fifth consecutive period, totaling CA$8.6 million in Q4.
One of the strengths of Aphria's business is its diversified distribution structure. In its most recent fiscal year, CA$369.2 million of its CA$543.3 million in net revenue came from distribution revenue. Most can be attributed to CC Pharma, a German importer and distributor it acquired in 2019. The acquisition of CC Pharma allowed Aphria to stand its products on a pre-established platform across over 13,000 pharmacies in Germany. The deal will also help the company penetrate the broader European market for cannabis in the future.
Aphria is the better buy, by a mile
Although Aphria comes with its own question marks, there isn't much of competition between it and Aurora. Aphria is indeed coming off a bad quarter, but poor performances just aren't as common for the company as they are for Aurora. Investors are more likely to get burned by Aurora, which has fallen short of its estimates in the past and is already pushing back projections for adjusted-EBITDA and profitability. The pot company has a lot to prove. That's why it's no surprise that year to date, Aphria's stock has dwarfed Aurora's and it's not far behind the Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF).
APHA data by YCharts
Whether you're a long-term investor or just risk-averse, Aphria is the better overall buy with stronger financials, a better track record, and worldwide hopes for its future.
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. | Despite their historic difficulties in generating cash, paying off debts, and avoiding massive writedowns, Aphria (NASDAQ: APHA) and Aurora Cannabis (NYSE: ACB) could be poised to claim shares of the rapidly expanding marketplace. In addition, the company has decided to postpone its goal of reaching positive adjusted earnings before income taxes depreciation and amortization (EBITDA) to the second quarter of fiscal year 2021. That's why it's no surprise that year to date, Aphria's stock has dwarfed Aurora's and it's not far behind the Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF). | Despite their historic difficulties in generating cash, paying off debts, and avoiding massive writedowns, Aphria (NASDAQ: APHA) and Aurora Cannabis (NYSE: ACB) could be poised to claim shares of the rapidly expanding marketplace. A year ago, in the fourth quarter, Aurora recorded net revenue of CA$98.9 million. Despite a disappointing bottom line, Aphria still achieved positive adjusted-EBITDA for the fifth consecutive period, totaling CA$8.6 million in Q4. | Despite their historic difficulties in generating cash, paying off debts, and avoiding massive writedowns, Aphria (NASDAQ: APHA) and Aurora Cannabis (NYSE: ACB) could be poised to claim shares of the rapidly expanding marketplace. A year ago, in the fourth quarter, Aurora recorded net revenue of CA$98.9 million. Aphria is coming off a tough quarter of its own Ontario-based Aphria is normally more consistent than Aurora, and has been less of a disappointment to investors overall. | Despite their historic difficulties in generating cash, paying off debts, and avoiding massive writedowns, Aphria (NASDAQ: APHA) and Aurora Cannabis (NYSE: ACB) could be poised to claim shares of the rapidly expanding marketplace. Despite a disappointing bottom line, Aphria still achieved positive adjusted-EBITDA for the fifth consecutive period, totaling CA$8.6 million in Q4. In its most recent fiscal year, CA$369.2 million of its CA$543.3 million in net revenue came from distribution revenue. |
37288.0 | 2020-09-18 00:00:00 UTC | 2 Bad Stocks Robinhood Investors Are Still Buying | ACB | https://www.nasdaq.com/articles/2-bad-stocks-robinhood-investors-are-still-buying-2020-09-18 | nan | nan | Robinhood investors are known to be a bit more risk-taking than an average investor. The platform appeals to millennials, and its commission-free trading service entices people to invest even small amounts of money easily. When there's less money at stake, it can be easier to take on risks. Some researchers also believe the app encourages frequent trading (for example, it displays confetti when trades are made).
Unfortunately, high-frequency trading doesn't leave much room for thoughtful analysis of stocks, and it can lead people to buy risky investments. Two of the riskiest among the top stocks on Robinhood today are Cronos Group (NASDAQ: CRON) and American Airlines (NASDAQ: AAL). These are stocks that were among the most popular even back in March, before the market crash, and they're still making the list today. Here's why they are bad investments that you should steer clear of.
Cronos Group
Cannabis company Cronos is a bad buy for numerous reasons. For one, it's just not worth its current $2 billion valuation. That's richer than Aphria ($1.4 billion) and considerably higher than Aurora Cannabis ($809 million). And yet, Cronos's total revenue for the past four quarters was just more than $31 million. By comparison, Aurora has generated sales of 305.7 million Canadian dollars in the trailing-12-month period ($232.4 million), and Aphria has brought in revenue of CA$369.2 million ($280.6 million) in the same time frame. Cronos is just not generating enough market share to make it a better buy than other Canadian pot stocks.
Image source: Getty Images.
In its second-quarter earnings for the period ending June 30, reported Aug. 6, net revenue of $9.9 million was up 29% year over year. However, in the Canadian market, its sales were up by just 1%. It was its new U.S. segment that contributed much of the growth, reporting $2.2 million in revenue that wasn't there in the same period last year. It was about a year ago, on Aug. 2, 2019, that Cronos announced the acquisition of Redwood Holding Group, LLC, for $300 million, which expanded its presence south of the Canadian border. The company makes hemp-derived cannabidiol products and owns the Lord Jones brand. But in a crowded hemp market in the U.S., it may not be a slam-dunk that this U.S. acquisition will continue to drive growth for Cronos in the future.
With a high valuation and little organic growth, there's just not a reason to buy Cronos today. The stock is down 28% year to date, well below even the Horizons Marijuana Life Sciences ETF (OTC: HMLSF), which has declined just 6% over the same time frame.
American Airlines
American Airlines isn't a risky buy because it's expensive; at a price-to-earnings multiple of less than 3, it could make for an attractive value buy. The problem is that there are serious long-term issues surrounding the airline industry. Even after the COVID-19 pandemic subsides, it'll be years before travel numbers get back to their previous levels. According to the International Air Transportation Association (IATA), a full recovery won't happen until 2024.
However, given the unpredictability of COVID-19 and how long it'll be around, there's certainly no guarantee that IATA won't push back that estimate. A possible second wave of COVID-19 this fall could throw any and all projections out the window.
That paints a bleak picture for any airline company, including American. The company needs help (funding) from the government, and if it doesn't get it, it'll need to lay off 19,000 workers by as early as October. American had more than 133,000 employees when the year began but is looking to shed a minimum of 40,000 people. Some workers agreed to leave voluntarily and take early retirement buyout packages, but that hasn't been enough to meet the company's goal.
In the meantime, the Texas-based company remains in survival mode to do what it can to keep operating. On July 23, American released its second-quarter results for the period ending June 30, and sales of $1.6 billion were down 86% from the $12 billion it generated in the same period last year. Its net loss of $2.1 billion was down drastically from a profit of $662 million in the prior-year period. The good news for American is that this was a particularly bad quarter for the economy -- nearly every business was hampered by shutdowns, especially during the months of April and May. The third quarter should be better, as cities started opening back up in June.
Management stated in the earnings release that they are trying to preserve cash. American's operating and capital expenses will decline by at least $15 billion in 2020, largely because of fewer flights this year. In 2019, the company spent $42.7 billion on operating expenses, and its capital expenditures totaled $4.3 billion.
Although American's keeping its head above water right now, this is an extremely risky stock to be holding. As long as COVID-19 is weighing down the economy, it puts the company at risk. Shares of American Airlines are down more than 51% this year, while the S&P 500 has climbed more than 5%. And there's little reason to be optimistic that the stock will recover anytime soon.
These stocks aren't worth gambling on
While Robinhood investors may see these underperforming stocks as opportunities to score some great returns if they recover, that's just not a likely outcome for the foreseeable future. Cronos may turn things around, and American may rally if all the stars align and there isn't a second wave of COVID-19, but a lot would need to go right for either of those things to happen. Investors -- at Robinhood and elsewhere -- are better off investing in other growth stocks that have brighter futures and that are more resilient to COVID-19.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Unfortunately, high-frequency trading doesn't leave much room for thoughtful analysis of stocks, and it can lead people to buy risky investments. It was about a year ago, on Aug. 2, 2019, that Cronos announced the acquisition of Redwood Holding Group, LLC, for $300 million, which expanded its presence south of the Canadian border. The stock is down 28% year to date, well below even the Horizons Marijuana Life Sciences ETF (OTC: HMLSF), which has declined just 6% over the same time frame. | Two of the riskiest among the top stocks on Robinhood today are Cronos Group (NASDAQ: CRON) and American Airlines (NASDAQ: AAL). By comparison, Aurora has generated sales of 305.7 million Canadian dollars in the trailing-12-month period ($232.4 million), and Aphria has brought in revenue of CA$369.2 million ($280.6 million) in the same time frame. In its second-quarter earnings for the period ending June 30, reported Aug. 6, net revenue of $9.9 million was up 29% year over year. | Two of the riskiest among the top stocks on Robinhood today are Cronos Group (NASDAQ: CRON) and American Airlines (NASDAQ: AAL). American Airlines American Airlines isn't a risky buy because it's expensive; at a price-to-earnings multiple of less than 3, it could make for an attractive value buy. See the 10 stocks *Stock Advisor returns as of August 1, 2020 David Jagielski has no position in any of the stocks mentioned. | With a high valuation and little organic growth, there's just not a reason to buy Cronos today. American Airlines American Airlines isn't a risky buy because it's expensive; at a price-to-earnings multiple of less than 3, it could make for an attractive value buy. Shares of American Airlines are down more than 51% this year, while the S&P 500 has climbed more than 5%. |
37289.0 | 2020-09-16 00:00:00 UTC | Why Aurora Cannabis’ New CEO Ought to Be Good for Shareholders | ACB | https://www.nasdaq.com/articles/why-aurora-cannabis-new-ceo-ought-to-be-good-for-shareholders-2020-09-16 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On Sep. 8, Aurora Cannabis (NYSE:ACB) announced that it was promoting chief commercial officer Miguel Martin to chief executive officer effective immediately. The move ought to be very good for owners of ACB stock.
Source: Shutterstock
Here’s why I feel this way.
An Executive with the Right Mixture of Experiences
Martin joined Aurora Cannabis in July. Before Aurora, he was the CEO of Reliva, a Massachusetts-based manufacturer of premium cannabidiol (CBD) retail products. Before that, he was president of Logic Technology, a maker of electronic cigarettes.
20 Election Stocks to Buy if Donald Trump Wins in 2020
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.
In Martin’s role as SVP of Sales at Altria, he oversaw a field sales force of more than 2,700 people across the U.S.
“Given my 25 years of executing against regulated product opportunities, including serving as President of one of the largest electronic cigarette companies, I believe we will be successful both with the current portfolio and emerging margin accretive formats,” Martin stated in the company’s press release announcing his promotion.
With Aurora at a critical juncture in its historical development, the fact it could promote someone internally who is ready to lead the company out of the doldrums saves it a considerable amount of time that an external candidate would require to get up to speed on its operations.
“In his short time at Aurora, Miguel has demonstrated decisive leadership. Miguel is a highly experienced executive with an exceptional track record of performance in a number of consumer products categories,” stated executive chairman Michael Singer.
“After an extensive search which included evaluation of many highly-respected candidates, Miguel stood apart with both strong commercial and cannabinoid sector expertise, as well as his passion for Aurora’s success.”
Night and Day Difference from Terry Booth
In January, I discussed why it made sense to move then CEO Terry Booth out of the chief executive role to chairman. I got the idea from Cantor Fitzgerald analyst Pablo Zuanic, who had suggested in a Jan. 2 note to clients that the company needed to bring in someone who was better equipped to operate a growth business.
If not for Booth, Aurora likely doesn’t exist today. As a serial entrepreneur, he provided Aurora with $3 million in capital in 2013 so that it could build a state-of-the-art cannabis production facility between Calgary and Red Deer, Alberta. In December 2014, Booth jumped into the CEO chair and took it as far as his entrepreneurial skills could take it.
Booth stepped down as CEO in February, acknowledging that Aurora needed someone different to run a scaled-down, profit-driven business.
“It’s time for more of a button-up CEO, not a growth CEO,” Booth stated in February a day after stepping down. “You want a capital market guy or gal. You really need to have someone with their eye on the ball for positive EBITDA.”
Well, as it turns out, Aurora went for somebody with both sales and executive management experience within regulated businesses. Martin is far more corporate than Terry Booth could ever be.
I believe, like the board, that Martin can bring stability to a cannabis business that’s been reeling since at least November.
What It Means for ACB Stock
The last time I wrote about Aurora in early June, it was trading around $14. They had just done a 12-for-1 reverse stock split to meet New York Stock Exchange compliance rules. Today, it’s about half that value.
“Once upon a time, I was a believer. No longer,” I wrote on June 3.
“Despite the split, Aurora Cannabis still has major holes in its business plan. There are definitely better cannabis buys at this point in the game.”
Most of InvestorPlace’s contributors who’ve written about Aurora in recent weeks have been less than complimentary about its chances. However, David Moadel had some optimism in a recent article.
“Even with the company’s challenges, it’s perfectly OK to keep ACB stock on your watch list. Timing is essential, though. Before buying the shares, investors should wait until Aurora and the cannabis industry in general show signs of improvement,” Moadel wrote on Aug. 26.
As part of Aurora’s Sep. 8 announcement of Martin as its CEO, it also provided an update to its business.
It expects to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second quarter of 2021. However, it also plans to report a $1.8 billion goodwill impairment when it releases its fourth-quarter results on Sep. 22.
“The Company is now operating at its quarterly SG&A run-rate in the low $40 million range, and expects operational cost reductions from facility closures up to $10 million per quarter starting in the second half of fiscal 2021,” Aurora’s Sep. 8 press release stated.
“With a tailwind of growth in the Canadian recreational market, the Company is better positioned for its next phase focused on profitability.”
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.
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.
Aurora is far from a sure thing.
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. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
The post Why Aurora Cannabis’ New CEO Ought to Be Good for Shareholders 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 On Sep. 8, Aurora Cannabis (NYSE:ACB) announced that it was promoting chief commercial officer Miguel Martin to chief executive officer effective immediately. The move ought to be very good for owners of ACB stock. What It Means for ACB Stock The last time I wrote about Aurora in early June, it was trading around $14. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Sep. 8, Aurora Cannabis (NYSE:ACB) announced that it was promoting chief commercial officer Miguel Martin to chief executive officer effective immediately. The move ought to be very good for owners of ACB stock. What It Means for ACB Stock The last time I wrote about Aurora in early June, it was trading around $14. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Sep. 8, Aurora Cannabis (NYSE:ACB) announced that it was promoting chief commercial officer Miguel Martin to chief executive officer effective immediately. The move ought to be very good for owners of ACB stock. What It Means for ACB Stock The last time I wrote about Aurora in early June, it was trading around $14. | The move ought to be very good for owners of ACB stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Sep. 8, Aurora Cannabis (NYSE:ACB) announced that it was promoting chief commercial officer Miguel Martin to chief executive officer effective immediately. What It Means for ACB Stock The last time I wrote about Aurora in early June, it was trading around $14. |
37290.0 | 2020-09-16 00:00:00 UTC | 2 Top Cannabis Stocks to Watch in September | ACB | https://www.nasdaq.com/articles/2-top-cannabis-stocks-to-watch-in-september-2020-09-16 | nan | nan | Although marijuana was legalized nationwide in Canada in October 2018, Canadian cannabis companies have yet to reap the potential benefits of the newly licit market. Lagging profitability is partly due to companies' initial overestimates of consumer demand for marijuana. Many entities now find themselves with millions of capital invested in lavish hemp production facilities, only to be met with low sales numbers. As a result, facility closures and inventory write-offs have forced many businesses to endure consistent and devastating blows to their profitability.
The sector is definitely taking a lot of heat, but the subsequent stock market sell-off has created new opportunities for investors to buy value stocks at a discount and growth stocks at a reasonable price. After all, the legal cannabis market in Canada is valued at CA$2.4 billion this year, and household spending on legal marijuana overtook household spending on illicit marijuana for the first time ever. A few companies are especially well-poised to capitalize from the uptick in demand, demonstrated by the nation's year-over-year overall sales increase of 75% in Q2 2020.
That's not all. While the Canadian marijuana market has seen its share of woes, cannabis companies across the U.S. are jumping onto the bandwagon in anticipation of federal legalization in the states. Let's take a look at two marijuana stocks you should add to your watchlist in September that are based in U.S. and Canada.
Image source: Getty Images.
1. Aurora Cannabis
Once a giant in the cannabis industry, Aurora Cannabis (NYSE: ACB) has fallen on hard times after acquiring its competitors, such as MedReleaf, at inflated prices to boost its production volume. The company must now pay for its mistakes by recording multi-billion dollar non-cash losses in goodwill and intangibles from oversupply.
Back in June, Aurora closed down five of its smaller production facilities and laid off more than 700 employees, accounting for 25% to 30% of its overall staff. The closures were largely due to excess inventory and demand being much lower than predicted. Recently, the company announced it would write down about CA$1.8 billion in goodwill and intangible assets. Adding insult to injury, the company is already posting an operating loss before this writedown.
If the bad news sounds too overwhelming, potential investors can rest assured knowing that it is mostly reflected in the stock price. Currently, the company's market cap stands at just $815 million, and may be ready for a turnaround.
The company will be hosting its fourth-quarter 2020 conference call on Sept. 22; it has already announced preliminary revenue figures of between CA$70 million to CA$72 million, a small sequential decrease from the $75.5 million it generated in Q3 2020.
Meanwhile, the company is taking dramatic measures to reduce its cash loss. Within two quarters, Aurora has reduced its selling, general, and administrative (SG&A) expenses from more than CA$100 million to about CA$62.5 million. The company has also suggested it will reduce its SG&A spending to CA$40 million per quarter by the first quarter of 2021. By the second quarter of 2021, Aurora expects it can generate positive earnings before interest, taxes, depreciation, and amortization (EBITDA).
In terms of financial health, Aurora is working toward a positive cash position. The company's debt-to-equity ratio of 0.28 is more than manageable, and it has about CA$160 million in cash on hand. A debt-to-equity ratio under one indicates a company's obligations do not exceed its net assets. If the ratio was over one, then the company's financial future would look more fraught.
With the stock price this low, any amount of good news could reverse the sell-off. Investors should keep an eye out for Aurora's earnings release in the coming weeks and consider the company's long-term potential within a growing legal Canadian market.
2. Green Thumb Industries
Green Thumb Industries (OTC: GTBIF) has decisively avoided the woes in the Canadian marijuana industry because its operations are located in the U.S., where entities have been more conservative in their supply and demand projections. The company runs 48 retail stores in 10 states selling medical cannabis, CBD, and recreational marijuana, with nine new stores having opened year-to-date.
In its quarter ended June 30, Green Thumb's revenue grew by a stunning 167.5%, up from $119.6 million in last year's quarter. The company's operations became more efficient as it grew its gross margins from the prior quarter's 51.6% to 53.6%. Green Thumb's adjusted EBITDA margin is now 29.6%, with EBITDA ringing in at $35.4 million.
The company is closer to reaching profitability, having lost just $0.06 per share in the past quarter. Meanwhile, Green Thumb has ample capital on its balance sheet to cushion any unexpected business risks, including $152.6 million in cash to offset its $95.2 million in debt.
At a market cap of $2.82 billion and a forward price-to-sales (P/S) ratio of 7.6, the stock is not as cheap as Aurora, with a ratio of about 2.5. In context, however, 5.6 times price-to-sales is still a discounted price for a company that's more than doubling its revenue year over year. With negligible exposure to the Canadian marijuana sector, substantial growth in the U.S. market, and a great valuation, this is an outstanding cannabis stock for new and seasoned pot stock pickers.
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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Zhiyuan Sun 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. | Aurora Cannabis Once a giant in the cannabis industry, Aurora Cannabis (NYSE: ACB) has fallen on hard times after acquiring its competitors, such as MedReleaf, at inflated prices to boost its production volume. Although marijuana was legalized nationwide in Canada in October 2018, Canadian cannabis companies have yet to reap the potential benefits of the newly licit market. While the Canadian marijuana market has seen its share of woes, cannabis companies across the U.S. are jumping onto the bandwagon in anticipation of federal legalization in the states. | Aurora Cannabis Once a giant in the cannabis industry, Aurora Cannabis (NYSE: ACB) has fallen on hard times after acquiring its competitors, such as MedReleaf, at inflated prices to boost its production volume. After all, the legal cannabis market in Canada is valued at CA$2.4 billion this year, and household spending on legal marijuana overtook household spending on illicit marijuana for the first time ever. Green Thumb Industries Green Thumb Industries (OTC: GTBIF) has decisively avoided the woes in the Canadian marijuana industry because its operations are located in the U.S., where entities have been more conservative in their supply and demand projections. | Aurora Cannabis Once a giant in the cannabis industry, Aurora Cannabis (NYSE: ACB) has fallen on hard times after acquiring its competitors, such as MedReleaf, at inflated prices to boost its production volume. After all, the legal cannabis market in Canada is valued at CA$2.4 billion this year, and household spending on legal marijuana overtook household spending on illicit marijuana for the first time ever. The company will be hosting its fourth-quarter 2020 conference call on Sept. 22; it has already announced preliminary revenue figures of between CA$70 million to CA$72 million, a small sequential decrease from the $75.5 million it generated in Q3 2020. | Aurora Cannabis Once a giant in the cannabis industry, Aurora Cannabis (NYSE: ACB) has fallen on hard times after acquiring its competitors, such as MedReleaf, at inflated prices to boost its production volume. The company has also suggested it will reduce its SG&A spending to CA$40 million per quarter by the first quarter of 2021. Investors should keep an eye out for Aurora's earnings release in the coming weeks and consider the company's long-term potential within a growing legal Canadian market. |
37291.0 | 2020-09-16 00:00:00 UTC | Aurora Cannabis Stock Is Under the Hammer; Here’s What You Need to Know | ACB | https://www.nasdaq.com/articles/aurora-cannabis-stock-is-under-the-hammer-heres-what-you-need-to-know-2020-09-16 | nan | nan | If anyone is looking for a successful cannabis story in 2020... look away now. Aurora Cannabis (ACB) continues its relentless search for the bottom as the long-awaited shift in sentiment has failed to materialize. Shares are once again under pressure and lost close to 70% year-to-date.
The latest setback can probably be blamed on several pieces of underwhelming news. Last week, the Canadian cannabis producer provided investors with a business update and it is safe to say the news did not give long-term suffering ACB holders any cheer.
In tandem with now expecting fourth-quarter net revenue to be down from the C$78.4 million reported in Q3 to between C$70 million and C$72 million (also below the Street’s C$77 million estimate), the company also said it expects a record asset impairment charge of up to C$2.0 billion. Add into the mix the termination of a UFC partnership, which will include a one-off payment of US$30 million in 1Q21, and it all paints a familiar dispiriting picture.
For Jefferies analyst Owen Bennett, the disappointing update is further exacerbated by the choice of new CEO. The position has finally been filled with the appointment of Miguel Martin.
“One,” the analyst said, “Mr Martin was only just promoted to Chief Commercial Officer in July. The fact that he was given the CEO role so soon after would suggest limited availability of suitable (or indeed interested) parties externally. To this, there were arguably more expectations with ACB given the role of Nelson Peltz as a strategic advisor. Two, while we don't assume Mr Martin is not capable, and he should be judged on results, it is easy to pick holes in his experience with regard to building international brands across a variety of distribution channels.”
To this end, Bennett rates ACB shares an Underperform (i.e. Sell). But Bennett might as well have said Buy — because he thinks the stock, currently at C$9.29 (US$7.01), could zoom ahead to C$14.00 (US$10.62) within a year, delivering 51% profits to new investors. (To watch Bennett’s track record, click here)
Aurora might not have the Street’s full confidence, but overall, Bennett’s colleagues are more positive. ACB's Hold consensus rating is based on 2 Buys, 7 Holds and 1 Sell. At C$16.82 (US$12.76), the average price target suggest shares will appreciate by a strong 81% over the next 12 months. (See Aurora price targets and analyst ratings 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. | Last week, the Canadian cannabis producer provided investors with a business update and it is safe to say the news did not give long-term suffering ACB holders any cheer. Two, while we don't assume Mr Martin is not capable, and he should be judged on results, it is easy to pick holes in his experience with regard to building international brands across a variety of distribution channels.” To this end, Bennett rates ACB shares an Underperform (i.e. Sell). Aurora Cannabis (ACB) continues its relentless search for the bottom as the long-awaited shift in sentiment has failed to materialize. | Two, while we don't assume Mr Martin is not capable, and he should be judged on results, it is easy to pick holes in his experience with regard to building international brands across a variety of distribution channels.” To this end, Bennett rates ACB shares an Underperform (i.e. Sell). Aurora Cannabis (ACB) continues its relentless search for the bottom as the long-awaited shift in sentiment has failed to materialize. Last week, the Canadian cannabis producer provided investors with a business update and it is safe to say the news did not give long-term suffering ACB holders any cheer. | Two, while we don't assume Mr Martin is not capable, and he should be judged on results, it is easy to pick holes in his experience with regard to building international brands across a variety of distribution channels.” To this end, Bennett rates ACB shares an Underperform (i.e. Sell). Aurora Cannabis (ACB) continues its relentless search for the bottom as the long-awaited shift in sentiment has failed to materialize. Last week, the Canadian cannabis producer provided investors with a business update and it is safe to say the news did not give long-term suffering ACB holders any cheer. | Two, while we don't assume Mr Martin is not capable, and he should be judged on results, it is easy to pick holes in his experience with regard to building international brands across a variety of distribution channels.” To this end, Bennett rates ACB shares an Underperform (i.e. Sell). Aurora Cannabis (ACB) continues its relentless search for the bottom as the long-awaited shift in sentiment has failed to materialize. Last week, the Canadian cannabis producer provided investors with a business update and it is safe to say the news did not give long-term suffering ACB holders any cheer. |
37292.0 | 2020-09-16 00:00:00 UTC | Aurora Cannabis Is a Worthwhile Speculative Trade | ACB | https://www.nasdaq.com/articles/aurora-cannabis-is-a-worthwhile-speculative-trade-2020-09-16 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Marijuana legalization has been a bumpy ride, at least for investors. The cannabis market has taken longer to develop than expected, retail distribution networks in places such as Ontario have lagged, and competition has driven down profitability. Aurora Cannabis (NYSE:ACB) has not avoided these problems. In fact, ACB stock has lost the substantial majority of its value in recent years.
Source: Shutterstock
With the stock trending downward for an extended period, many investors have given up on Aurora. That’s an understandable reaction. But at some point, if the company still has the cash to carry on, the risk/reward starts to swing. And we’re nearing that point on Aurora. After years of pain, shareholders could finally see some relief.
While I’m turning more bullish on Aurora, don’t mistake this for a low-risk investment. Our Thomas Yueng recently made the case for why ACB stock is on a “death march to $0.” Yeung could very well end up being right. Aurora’s business model up until now hasn’t worked, and the company has piled up mountains of red ink historically. If things don’t change, the company will end up in critical condition. However, here’s why you shouldn’t give up on the company just yet.
Putting Aurora’s Losses in Context
Aurora has had a terrible September so far. The stock has lost a quarter of its value in recent weeks due to two primary factors: Bad earnings, and uncertainty around the company’s strategy. The shocker was the write-down; Aurora plans to write off almost 2 billion Canadian dollars of goodwill and intangible assets.
20 Election Stocks to Buy if Donald Trump Wins in 2020
This will cause Aurora to report a massive earnings loss for the quarter and full-year 2020. Anyone looking at P/E ratios or net income is going to see a huge negative number for ACB stock as a result. The important thing to keep in mind is that these write-downs are an acknowledgment of past mistakes. Aurora expanded aggressively around the world, boldly taking the initiative in building a global footprint.
Regrettably, many of these moves ended up being a mistake in retrospect. However, that’s the sort of thing that happens in a new and emerging industry like cannabis. It’s hard to play your cards perfectly. Aurora made mistakes – big mistakes – but that was in a different environment. The company is retooling now and has dramatically cut its overhead. Aurora’s huge ambitions could have paid off if things had gone differently. They didn’t, hence the massive write-offs. But those are non-cash expenses, and the real question is whether Aurora’s current assets will begin to bare fruit.
New CEO Can Bring Aurora Needed Expertise
One interesting development is that Aurora has a new chief executive officer. You may recall that Terry Booth served as Aurora’s CEO from 2014 onward. However, Booth decided to retire earlier this year. Booth deserves a lot of credit for building Aurora into a major international player. Back in 2014, the idea of a global cannabis powerhouse was still hard to imagine. Booth went early, before most people caught on, and started developing Aurora’s business around the world.
Not all of these moves paid off. In fact, there were many misses within the global footprint. But he was a charismatic leader for that stage in Aurora’s history. Now, the company is wisely moving from a visionary to a person more focused on execution.
Aurora’s new CEO Miguel Martin has a long career primarily working in the tobacco industry. There are some obvious ways in which those skills can be helpful in the cannabis market. Aurora is already producing more than $50 million per quarter in revenue. It no longer needs an empire-builder CEO, but rather someone who can work a budget and bring much-needed discipline and efficiency to the business.
Martin will also have enough financial resources to have a good shot at turning things around. As of last quarter, Aurora had 160 million CAD of cash on hand, and had more than 200 million CAD left in its stock sale program as well. This, combined with cost-cutting efforts, should give Aurora long-term staying power.
ACB Stock Verdict
We’re a long way from the marijuana market being settled. However, we’re also out of the first innings. A ton of early competitors have already gone bankrupt or had to sell out. The market is starting to consolidate.
At the same time, valuations continue to plunge. This sets up a favorable dynamic where Aurora has fewer competitors to deal with, and the share price also is less and less demanding.
Aurora is a risky stock, don’t get confused there. However, the risk declines as the share price heads south. Meanwhile, the competitive landscape is improving. Aurora is still a viable company in what should eventually be a highly profitable industry. There’s no guarantees that ACB stock is ever going to be a big winner, but the odds for new money have improved versus where they were a year ago.
On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
The post Aurora Cannabis Is a Worthwhile Speculative Trade 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) has not avoided these problems. In fact, ACB stock has lost the substantial majority of its value in recent years. Our Thomas Yueng recently made the case for why ACB stock is on a “death march to $0.” Yeung could very well end up being right. | Aurora Cannabis (NYSE:ACB) has not avoided these problems. In fact, ACB stock has lost the substantial majority of its value in recent years. Our Thomas Yueng recently made the case for why ACB stock is on a “death march to $0.” Yeung could very well end up being right. | Aurora Cannabis (NYSE:ACB) has not avoided these problems. In fact, ACB stock has lost the substantial majority of its value in recent years. Our Thomas Yueng recently made the case for why ACB stock is on a “death march to $0.” Yeung could very well end up being right. | In fact, ACB stock has lost the substantial majority of its value in recent years. Aurora Cannabis (NYSE:ACB) has not avoided these problems. Our Thomas Yueng recently made the case for why ACB stock is on a “death march to $0.” Yeung could very well end up being right. |
37293.0 | 2020-09-15 00:00:00 UTC | Canopy Growth Is Headed to $0 Without a Biden Victory | ACB | https://www.nasdaq.com/articles/canopy-growth-is-headed-to-%240-without-a-biden-victory-2020-09-15 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors in Canopy Growth (NYSE:CGC) stock and other legal marijuana companies have long focused on company financials: profitability, growth and margins. That’s usually the responsible way to valuing companies in any industry. But there’s one problem with that approach when it comes to marijuana: None of it matters.
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Source: Jarretera / Shutterstock.com
That’s because even if it’s the strongest of them, Canopy Growth, will need U.S. federal legalization to survive. Without it, the marijuana company’s negative cash flow will eventually bankrupt it.
Investors need to stop focusing on company profitability (or rather, the lack of profits), and set their eyes on the far bigger prize for CGC stock: will Biden beat Trump in 2020 and legalize marijuana?
State-By-State Legalization Has Failed
As a growth-based investor, I’ve long eyed the legal marijuana industry. According to the Rand Corporation, a centrist think tank, Americans spend almost $70 billion on marijuana. Pretty close to the $94 billion spent on cigarettes.
But the timing has always been wrong.
Since 2018, broad-based marijuana exchange-traded funds have lost 75% of their value. Years of political and legal wrangling has left America with a patchwork of marijuana laws. Some create laughable confusion: it’s illegal to buy recreational marijuana in Washington, D.C. But thanks to Initiative 71, it’s technically acceptable to buy a keychain for $80 and receive a free marijuana “gift.”
20 Election Stocks to Buy if Donald Trump Wins in 2020
Other restrictions, however, create deadly consequences. In 2019, illicit THC cartridges sickened at least 800 people and killed 12 when an illegal manufacturer accidentally added Vitamin E acetate to its mixture. The lack of national laws meant it took the Centers for Disease Control and Prevention months to track and identify the cause of the deaths, sending THC and tobacco vape demand into a freefall.
These patchwork laws mean that companies fail to reach profitability even in jurisdictions with legal marijuana.
CGC Stock Needs U.S. Legalization
Canopy Growth hasn’t escaped this harsh reality. Since its founding, the company has lost 4.3 billion CAD ($3.3 billion) of investor money. In fiscal 2020 alone, the firm burned through 1.4 billion CAD.
Why? The Canadian market just isn’t large enough for a significant player like Canopy Growth.
In 2019, Canadians spent just $5.9 billion on marijuana. That’s less than 10% of what Americans did; the billions that CGC has spent on product development and farming have mostly gone to waste. In 2020, CGC recorded a negative 8% gross margin after disposing excess hemp, oils and soft gel products.
Why Can’t Canopy Sell in the U.S.?
New York Stock Exchange (NYSE) laws still prohibit Canopy from expanding in America, even in states with legal marijuana.
“You can list here [in the US] if you’re not breaking any of the rules in any of the jurisdictions that you operate,” said Bruce Linton, former CEO of Canopy. “I don’t operate in any jurisdictions where it’s federally illegal, which unfortunately includes the U.S.”
These rules have forced Canopy to get creative. The company now owns a convertible stake in Acreage Holdings, a U.S. marijuana grower listed in Toronto. Its ownership will automatically kick in once the U.S. legalizes marijuana. In the meantime, however, CGC can’t touch a dime of its counterpart’s profits.
Will the U.S. Federally Legalize Marijuana?
Under Trump’s presidency, the U.S. government has pushed marijuana decision-making up to individual states. The most prominent marijuana bill under consideration, Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2019, will only remove cannabis from the Controlled Substances Act.
But that isn’t full legalization.
Instead, the STATES Act will cede legislative authority to individual states. And unless a state fully legalizes marijuana, the drug will remain an entirely prohibited Schedule I narcotic.
That’s bad news for companies like Canopy Growth, which the law will still bar from entering the U.S. market.
Trump Will Unintentionally Kill Canopy Growth
Under the Republican president’s watch, there’s been little appetite for significant changes in marijuana laws. And the STATES Act essentially kicks the can further down the road, a move Donald Trump appears to wholeheartedly support.
That could spell the end for Canopy Growth. The company already has 477 million CAD long-term debt on its balance sheet, and an Altman-Z score (a measure of bankruptcy probability) of 2.23. That’s still higher than the “danger-zone” score of 1.8, but lower than a healthy 3.0 score.
Four more years of a Trump presidency, however, would push CGC over the edge. If nothing changes, Canopy Growth will lose 3 billion CAD or more over the next four years, entirely depleting its 1.9 billion CAD cash pile. With parent company Constellation Brands (NYSE:STZ) already impatient for profits, CGC will likely close its doors before the 2024 election comes around.
In other words, whether you’re a fan of the Republican president or not, a company like Canopy won’t survive under another four years of such losses.
Is Biden the Marijuana Industry’s Savior?
In a surprising twist, Biden may unwittingly save Canopy Growth. That’s because of a little-known bill known as the Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019.
Last July, Senator Kamala Harris (now the Vice-Presidential nominee), introduced the Democrat-championed bill that would essentially legalize marijuana on the federal level:
Remove cannabis from the Controlled Substance Act
Introduce a 5% federal tax on marijuana products
Remove marijuana-related penalties and convictions
The MORE Act would act much like the 21st amendment that ended prohibition. Although federal laws won’t force local legalization (the reason why dry counties still exist), the Act lays clear groundwork for broad national recognition. That would essentially put Canopy Growth on the fast track to profits in the U.S. market.
There’s just one downside: the MORE Act will need a Democratic-controlled White House and Senate to pass. Republican Majority Leader Mitch McConnell opposes the bill, so the future of CGC stock rests on voters this November.
What’s CGC Stock Worth?
Investors looking for the best marijuana company should consider Canopy Growth. Its experienced management and focus on the lucrative marketing side (rather than low-margin cultivation) puts the company far ahead of companies like Aurora (NYSE:ACB) or Aphria (NASDAQ:APHA).
Yet, the company’s value hinges entirely on U.S. politics. A Trump presidency will likely send shares to $0, while a Biden presidency could make CGC the next $120 billion company.
So like it or not, Biden remains the best chance for legal marijuana companies to succeed. And as Canopy’s cash burn shows, the clock is ticking.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing. On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Canopy Growth Is Headed to $0 Without a Biden Victory 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. | Its experienced management and focus on the lucrative marketing side (rather than low-margin cultivation) puts the company far ahead of companies like Aurora (NYSE:ACB) or Aphria (NASDAQ:APHA). In 2019, illicit THC cartridges sickened at least 800 people and killed 12 when an illegal manufacturer accidentally added Vitamin E acetate to its mixture. The lack of national laws meant it took the Centers for Disease Control and Prevention months to track and identify the cause of the deaths, sending THC and tobacco vape demand into a freefall. | Its experienced management and focus on the lucrative marketing side (rather than low-margin cultivation) puts the company far ahead of companies like Aurora (NYSE:ACB) or Aphria (NASDAQ:APHA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors in Canopy Growth (NYSE:CGC) stock and other legal marijuana companies have long focused on company financials: profitability, growth and margins. The most prominent marijuana bill under consideration, Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2019, will only remove cannabis from the Controlled Substances Act. | Its experienced management and focus on the lucrative marketing side (rather than low-margin cultivation) puts the company far ahead of companies like Aurora (NYSE:ACB) or Aphria (NASDAQ:APHA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors in Canopy Growth (NYSE:CGC) stock and other legal marijuana companies have long focused on company financials: profitability, growth and margins. Investors need to stop focusing on company profitability (or rather, the lack of profits), and set their eyes on the far bigger prize for CGC stock: will Biden beat Trump in 2020 and legalize marijuana? | Its experienced management and focus on the lucrative marketing side (rather than low-margin cultivation) puts the company far ahead of companies like Aurora (NYSE:ACB) or Aphria (NASDAQ:APHA). CGC Stock Needs U.S. Federally Legalize Marijuana? |
37294.0 | 2020-09-15 00:00:00 UTC | It’s Time To Start Buying Aurora Cannabis Stock | ACB | https://www.nasdaq.com/articles/its-time-to-start-buying-aurora-cannabis-stock-2020-09-15 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Back in May, I wrote about how much the fundamental picture of Aurora Cannabis (NYSE:ACB) stock had improved. However, I said investors should patiently wait for a better entry point. At the time, the stock had tripled in a matter of days.
Source: Shutterstock
Roughly three and a half months later, ACB stock is down 50% from those levels. At this point, I think it’s time for long-term investors to start dipping their toes into the shares. The company has demonstrated that it is on the right track. And the stock’s risk-reward balance is definitely positive now that it’s trading under $8 again.
An Update on ACB Stock
Earlier this month, Aurora announced that its chief commercial officer, Miguel Martin, was taking over as the company’s new CEO.
In addition to the management reshuffle, Aurora also updated its guidance. The company said it now expects to reach positive earnings before interest, taxes, depreciation and amortization in its fiscal second quarter. That profitability target was previously set for Q1. Aurora is due to report its Q4 earnings on Sept. 22.
In addition, Aurora announced that it would take a non-cash writedown of goodwill and intangible assets of between C$1.6 billion ($1.21 billion) and C$1.8 billion ($1.37 billion).
Looking ahead, Aurora’s Q4 revenue guidance was roughly in-line with analysts’ average estimates.
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The owners of ACB stock are hoping the writedowns and new leadership will provide the company with a fresh start. Cantor Fitzgerald analyst Pablo Zuanic says Aurora is well-positioned for the long-term.
“Because of the company’s domestic scale in [recreational and medicinal marijuana], and [its] relevant, though budding, overseas presence, we continue to think ACB shareholders will benefit from a future cycle of mergers among Canadian [legal producers],” Zuanic stated.
In the meantime, the company’s biggest challenge will be reversing its recent market-share losses and beefing up its product portfolio in a highly competitive market.
“A strengthened line of vapes and pre-rolls, and increased focus on premium/better flower should address these issues, according to newly appointed CEO Miguel Martin, and should also contain gross margin pressures,” according to Zuanic.
Cantor Fitzgerald has an “overweight” rating and a C$17.50 ($13.28) price target on ACB stock.
Balance-Sheet Issues
The plunge of ACB stock in the wake of news of the large writedown was understandable. Further, management said that the company had just $160 million in cash as of the end of June, and last quarter, Aurora burned $154 million of cash.
There’s no question that Aurora’s balance sheet remains a concern for anybody buying the stock. The company will need to continue to cut its cash burn and reduce its expenses. It will also need to actually become profitable at some point.
I’ve previously called ACB stock a “lottery ticket” that could pay off big for investors.
Like me, Morningstar analyst Kristoffer Inton is bullish on Aurora. But he says the stock is not for the faint of heart.
“While shares look undervalued, we reiterate our extreme uncertainty rating,” Inton stated.
He says one of the biggest risks for Aurora’s investors in the near-term is that its cash burn will necessitate more dilutive equity offerings. Dilution has been a major thorn in the side of Aurora’s investors for years.
How To Play It
The updated Q4 guidance has set expectations extremely low. If Aurora can continue to cut its costs, grow its revenue and reduce its cash burn, the stock is a great long-term bet. But investors should know that those are big “ifs.”
“There is always uncertainty when investing in startups, but we consider Aurora among the riskier across the already risky cannabis industry,” Inton says.
Despite his caution, Morningstar has a “buy” rating and a $30 fair value estimate on ACB stock.
I think Inton’s take on Aurora is accurate. He repeatedly warns of risk, dilution and uncertainty. Yet his fair value estimate is about 300% above the stock’s current levels.
If you’re willing to stomach the volatility and risk, I say Aurora can climb a great deal. But bet on other marijuana stocks, too.
I recommend that cannabis investors diversify into a basket of several high-quality stocks. In addition to Aurora, consider buying Canadian names Canopy Growth (NYSE:CGC) and Aphria (NASDAQ:APHA). Add a couple of US multi-state operators as well, such as Cresco Labs (OTC:CRLBF), Curaleaf (OTC:CURLF) and Green Thumb Industries (OTC:GTBIF).
On the date of publication, Wayne Duggan held a long position in ACB.
Wayne Duggan has been a U.S. News & World Report Investing contributor since 2016 and is a staff writer at Benzinga, where he has written more than 7,000 articles. Mr. Duggan is the author of the book Beating Wall Street With Common Sense, which focuses on investing psychology and practical strategies to outperform the stock market.
The post It’s Time To Start Buying Aurora Cannabis Stock 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. | “Because of the company’s domestic scale in [recreational and medicinal marijuana], and [its] relevant, though budding, overseas presence, we continue to think ACB shareholders will benefit from a future cycle of mergers among Canadian [legal producers],” Zuanic stated. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in May, I wrote about how much the fundamental picture of Aurora Cannabis (NYSE:ACB) stock had improved. Source: Shutterstock Roughly three and a half months later, ACB stock is down 50% from those levels. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in May, I wrote about how much the fundamental picture of Aurora Cannabis (NYSE:ACB) stock had improved. Source: Shutterstock Roughly three and a half months later, ACB stock is down 50% from those levels. An Update on ACB Stock Earlier this month, Aurora announced that its chief commercial officer, Miguel Martin, was taking over as the company’s new CEO. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in May, I wrote about how much the fundamental picture of Aurora Cannabis (NYSE:ACB) stock had improved. An Update on ACB Stock Earlier this month, Aurora announced that its chief commercial officer, Miguel Martin, was taking over as the company’s new CEO. 20 Election Stocks to Buy if Donald Trump Wins in 2020 The owners of ACB stock are hoping the writedowns and new leadership will provide the company with a fresh start. | Despite his caution, Morningstar has a “buy” rating and a $30 fair value estimate on ACB stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in May, I wrote about how much the fundamental picture of Aurora Cannabis (NYSE:ACB) stock had improved. Source: Shutterstock Roughly three and a half months later, ACB stock is down 50% from those levels. |
37295.0 | 2020-09-15 00:00:00 UTC | Pot Stock Aurora Cannabis Finally Faces the Music | ACB | https://www.nasdaq.com/articles/pot-stock-aurora-cannabis-finally-faces-the-music-2020-09-15 | nan | nan | Despite all eyes being on high-growth tech stocks, it's marijuana that could be one of the fastest-growing industries over the next decade. We already know that tens of billions of dollars are sold annually in the North American black market each year, so it's only logical that legalizations should steadily move consumers toward legal channels.
Perhaps no cannabis stock has been more popular among the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB).
Image source: Getty Images.
Aurora Cannabis was supposed to be the greatest thing since sliced bread
Why Aurora? At this time last year, Aurora Cannabis was projected to be the world's leading marijuana producer. It had 15 production facilities that, if fully operational, could yield well over 600,000 kilos per year. Given the size of Aurora's numerous grow farms, it was expected that the company would be a leader in low-cost production.
Additionally, Aurora Cannabis had a production, export, partnership, or research presence in two dozen countries. Being able to produce so much cannabis, the company looked like a solid bet to land numerous supply agreements.
The investment community was also pretty excited about the onboarding of billionaire activist investor Nelson Peltz as a strategic advisor in March 2019. Peltz's expertise is in the consumer-packaged foods and beverage space, so it's long been assumed that he would act as the bridge between Aurora and a brand-name food and beverage company.
Unfortunately, Aurora Cannabis has been a disaster of an investment, and its balance sheet a monumental eyesore. Last week, Aurora's management team decided it was finally time to face the music and address its balance sheet.
Image source: Getty Images.
Aurora Cannabis (finally) confronts its ugly balance sheet
In a press release last Tuesday, Sept. 8, where Aurora Cannabis named its new CEO and pre-announced its fiscal fourth-quarter sales guidance, the company also unveiled a laundry list of impairments that it would be taking. These include:
An up to $90 million Canadian impairment tied to the closure of five of the company's smaller production facilities.
An approximate CA$140 million charge related to the carrying value of certain inventory.
A non-cash writedown of goodwill and intangible assets (the company didn't provide a breakdown of each category) that could total between CA$1.6 billion and CA$1.8 billion.
In other words, investors could be looking at Aurora Cannabis taking a writedown of close to CA$2 billion, or twice the company's current market cap.
These writedowns should not come as a surprise to anyone who's followed Aurora Cannabis over the past couple of years. I've warned time, and time, and time again that Aurora's acquisitions were grossly overvalued, that the company's property, plant, and equipment values were far too high given current market conditions, and that inventory would likely face writedowns. All told, the company will have written down around CA$3 billion in total assets this calendar year.
The fact is that this needed to be done, I applaud Aurora's management team for finally facing the music. The balance sheet isn't going to be perfect when the June-ended quarter is made official, but Wall Street and investors will be able to wrap their hands around figures that might be in some way tangible.
Image source: Getty Images.
Aurora addresses a big concern, but it's still not worth buying
Back in June, I'd stated that three things needed to happen for Aurora Cannabis to rebuild trust with investors. Cleaning up the company's balance sheet was one of those three things. Unfortunately, the other two "musts" on that list haven't yet been dealt with -- and for that reason, the company is still worth avoiding.
One factor that still hasn't been addressed is the company's rampant share-based dilution, which has been ongoing for what seems like four years and counting. Aurora has made a habit of using its stock as collateral when making acquisitions.
Management has also leaned on selling stock as a means of raising capital. Earlier this year, its board gave the OK for the company to issue up to $350 million (that's in U.S. dollars) in stock over a 25-month span to raise capital. In a six-year stretch, including the company's 1-for-12 reverse split enacted in May, which is what kept it from being delisted from the New York Stock Exchange, Aurora's share count has ballooned from 1.3 million to well over 110 million. Until this share-based dilution slows considerably and the company improves its cash position, it's not worth investors' hard-earned money.
Likewise, Aurora needs to find a way to ignite growth in international markets. Though the purchase of cannabidiol-focused company Reliva in the U.S. should somewhat help, the company has got to find a way to generate significant revenue from burgeoning European countries where medical marijuana growth looms strong.
Even with aggressive cost-cutting efforts, it doesn't look as if Aurora Cannabis is on track to reach recurring profitability in fiscal 2021 (the company's fiscal year ends June 30). With numerous U.S. multistate operators nearing that turn to profitability, and supply roadblocks still prevalent throughout Canada, Aurora Cannabis should remain out of investors' portfolios.
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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. | Perhaps no cannabis stock has been more popular among the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). The balance sheet isn't going to be perfect when the June-ended quarter is made official, but Wall Street and investors will be able to wrap their hands around figures that might be in some way tangible. With numerous U.S. multistate operators nearing that turn to profitability, and supply roadblocks still prevalent throughout Canada, Aurora Cannabis should remain out of investors' portfolios. | Perhaps no cannabis stock has been more popular among the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). Last week, Aurora's management team decided it was finally time to face the music and address its balance sheet. In other words, investors could be looking at Aurora Cannabis taking a writedown of close to CA$2 billion, or twice the company's current market cap. | Perhaps no cannabis stock has been more popular among the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). Aurora Cannabis (finally) confronts its ugly balance sheet In a press release last Tuesday, Sept. 8, where Aurora Cannabis named its new CEO and pre-announced its fiscal fourth-quarter sales guidance, the company also unveiled a laundry list of impairments that it would be taking. In other words, investors could be looking at Aurora Cannabis taking a writedown of close to CA$2 billion, or twice the company's current market cap. | Perhaps no cannabis stock has been more popular among the investment community than Canadian licensed producer Aurora Cannabis (NYSE: ACB). At this time last year, Aurora Cannabis was projected to be the world's leading marijuana producer. In other words, investors could be looking at Aurora Cannabis taking a writedown of close to CA$2 billion, or twice the company's current market cap. |
37296.0 | 2020-09-14 00:00:00 UTC | The Bullish Case for Aurora Cannabis Is so Close Yet so Far Away | ACB | https://www.nasdaq.com/articles/the-bullish-case-for-aurora-cannabis-is-so-close-yet-so-far-away-2020-09-14 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It only takes a little research to understand why investors might get excited about investing in Aurora Cannabis (NYSE:ACB). The bullish case for ACB stock really starts and ends with two simple words: addressable market.
Source: Shutterstock
According to Grand View Research, the medical marijuana market alone was valued at $11.4 billion in 2015. The firm projects a compound annual growth rate (CAGR) of 17.1% between through 2025. In a separate report, the firm projects the global market size for legal marijuana to reach $73.6 billion by 2027 and growing at CAGR of 18.1%.
This corresponds neatly with a Pew Research study from 2019 that showed opinions toward legalization of marijuana have essentially inverted in the last 10 years. Around 2009 approximately 60% of Americans disapproved of legalizing marijuana as opposed to about 32% that supported legalization. But last year those numbers were essentially reversed.
Unfortunately, the reality of legalization is very different from consumer opinions. And that’s why ACB stock remains a very troubled stock.
Another Bump In the Road
Aurora is in the middle of a restructuring effort. The company is calling it a right-sizing effort. But essentially it boils down to the company trying to find a way to manage its supply glut. Back in May, Aurora conducted a reverse stock split. They also delivered an earnings report that sufficiently pleased investors.
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At that time, I questioned the rally. In doing so, I asked investors to ask themselves if one earnings report made Aurora Cannabis lucky or good? Sadly, it’s appearing like more of the former.
After a three-day spike, the stock has been on a slow, steady decline. And it’s getting dangerously close to its early May levels on news that its quarterly revenue (whenever the company reports) will be lower than the prior quarter. And the company will be recording a $1.8 billion goodwill impairment charge.
Will Robinhood Come to Rescue ACB Stock?
It’s impossible to ignore the impact that the trading app Robinhood has in moving certain stocks. In the case of ACB stock, Robinhood seems particularly relevant. Call it serendipity, but Robinhood investors are (in general) part of a generation that is more likely to advocate for the legalization of marijuana for all purposes. These are the true believers.
Last month, Ian Bezek wrote about how Aurora Cannabis dropped from first to 11th on the Robinhood dashboard after its reverse 12-for-1 stock split. As Bezek theorizes, about half of Robinhood investors didn’t own at least 12 shares of ACB stock. As a result on the first trading day after the split, the number of Robinhood users that owned shares of the stock was cut in half.
And it appears that these investors are not flooding back to the stock. Perhaps it’s because they’re taking fliers on any of the dozen or so companies that are getting close to a potential vaccine for the novel coronavirus. However, this is an area to watch.
Simply put, if Robinhood investors take renewed interest in Aurora Cannabis it could provide a floor for the stock.
The Long-Term Case Remains
The long-term bullish case for cannabis exists, and I believe that’s particularly true for medicinal marijuana. But as much as cannabis may be an irresistible force, it faces a hard-to-move object in the United States regulators and the legislative process. This may get a huge boost depending on the result of the November election. But progress is still likely to be measured in years rather than months.
Normally I would be steering investors away from Aurora Cannabis as hard as I could. And I still can’t tell you that it’s a great use of your investment dollars. But if you have some speculative money, it may be a better option than investing in the vaccine stock-of-the-month club. But understand that an investment in ACB stock is a long-term bet on a company that for the moment has very limited options to deliver the profit it is promising by next year.
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 five years. He has been writing for Investor Place since 2019.
The post The Bullish Case for Aurora Cannabis Is so Close Yet so Far Away 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. | But understand that an investment in ACB stock is a long-term bet on a company that for the moment has very limited options to deliver the profit it is promising by next year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It only takes a little research to understand why investors might get excited about investing in Aurora Cannabis (NYSE:ACB). The bullish case for ACB stock really starts and ends with two simple words: addressable market. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It only takes a little research to understand why investors might get excited about investing in Aurora Cannabis (NYSE:ACB). The bullish case for ACB stock really starts and ends with two simple words: addressable market. And that’s why ACB stock remains a very troubled stock. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It only takes a little research to understand why investors might get excited about investing in Aurora Cannabis (NYSE:ACB). But understand that an investment in ACB stock is a long-term bet on a company that for the moment has very limited options to deliver the profit it is promising by next year. The bullish case for ACB stock really starts and ends with two simple words: addressable market. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It only takes a little research to understand why investors might get excited about investing in Aurora Cannabis (NYSE:ACB). The bullish case for ACB stock really starts and ends with two simple words: addressable market. And that’s why ACB stock remains a very troubled stock. |
37297.0 | 2020-09-12 00:00:00 UTC | The 5 Worst Stocks Robinhood Investors Love | ACB | https://www.nasdaq.com/articles/the-5-worst-stocks-robinhood-investors-love-2020-09-12 | nan | nan | Investing in 2020 should really come with a set of instructions. We've watched the benchmark S&P 500 get throttled to the tune of a 34% loss in less than five weeks, then subsequently regain everything back in under five months. In a six-month stretch, Wall Street has crammed in about a decade's worth of volatility.
For long-term investors, this volatility is actually welcome. That's because it's allowed patient investors to buy into high-quality stocks at a perceived bargain.
But these wild vacillations in the market have also encouraged short-term traders and get-rich-quick enthusiasts to come out of the woodwork. This trend has been especially noticeable with online investing app Robinhood. The average age of the platform's millions of members is only 31, and a significant number of its members appear to be new to investing.
These young and novice investors have filled Robinhood's leaderboard (i.e., the most widely held companies on the platform) with penny stocks and downright awful companies. Here are what I believe to be the five absolute worst stocks that Robinhood investors love.
Image source: Getty Images.
Aurora Cannabis
Millennials love marijuana as an investment, and there's no pot stock they pile into more than Aurora Cannabis (NYSE: ACB). There's just one problem: It's a terrible company.
Once the most-held stock on Robinhood, Aurora was expected to lead the world in legalized cannabis production and exports. But over the past year, Aurora has halted construction on two of its largest projects (Aurora Nordic 2 in Denmark and Aurora Sun in Alberta) to conserve cash, sold a 1-million-square-foot greenhouse (Exeter) that was never retrofit for pot production, and closed five of its smaller production facilities.
Today, the company is simply trying to backpedal its way toward positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). If Aurora doesn't reach positive adjusted EBITDA by the September-ended quarter, it'll default on its already reworked debt covenants.
The icing on the cake here is the balance sheet, which is a nightmare. Aurora Cannabis continues to dilute its shareholders into oblivion by selling stock to raise cash, and slightly over half of its total assets are classified as goodwill -- that is, it overpaid for all of its acquisitions. I'm not entirely sure what Robinhood investors see in this stock.
Image source: Uber.
Uber Technologies
Another head-scratcher of a stock that Robinhood investors love is ride-hailing and food delivery company Uber Technologies (NYSE: UBER). While I get that it's a relatable service millennials probably frequently use, that doesn't make Uber worthy of your investment dollars.
With regard to ridesharing, Uber has seen Lyft and other competitors chip away at its once-dominant market share. In particular, Uber's share of first-time app downloads relative to Lyft has tightened considerably since the beginning of 2017. The coronavirus disease 2019 (COVID-19) pandemic certainly isn't helping, either, with revenue falling off a cliff in its most recent quarter. To make matters worse, Uber is in the fight of its life in certain markets that aim to reclassify its drivers as employees instead of independent contractors.
Then there's Uber Eats, which has been a cash-sucking segment since day one. Over the past two quarters, Uber Eats has generated EBITDA losses of $313 million and $232 million, and yet Uber is throwing $2.65 billion at Postmates in an all-stock deal to further entrench itself in this cash-draining venture.
At this point, I'm not sure if Uber has proven it's a viable entity that can reach recurring profitability.
Image source: American Airlines.
American Airlines
Why millennial investors buy airline stocks, I will never understand. Why they value American Airlines Group (NASDAQ: AAL) above all other airlines is the biggest question mark of them all.
Yes, the COVID-19 pandemic deserves a lot of the blame for American Airlines' recent struggles. But the pandemic doesn't account for all of its woes. You see, American Airlines chose to modernize its fleet a few years back, which meant retiring planes well before their useful period was up. The end result was the company taking on a boatload of debt just a few years before the pandemic hit. Now, American Airlines is lugging around more than $30 billion in net debt, and its hands will be tied with interest payments on that debt for many years to come.
It's also worth mentioning that it's unclear if or when we'll see air travel return to normal following COVID-19. These answers will depend on the efficacy rate of vaccines and passengers' willingness to travel. We may well have witnessed the future of air travel changed forever.
If this still isn't enough reason to stay away from American Airlines, consider that the company suspended its share buyback program and dividends as part of its coronavirus bailout from the federal government. Those might have been the only reasons to ever consider buying American Airlines stock in the first place.
Image source: Getty Images.
Cronos Group
Have I mentioned that millennials really love marijuana stocks? You might think Cronos Group's (NASDAQ: CRON) $1.32 billion in cash, cash equivalents, and marketable securities is a smart investment idea, but you'd be wrong.
Nearly all of this cash derives from a $1.8 billion equity investment Cronos received from tobacco giant Altria Group (NYSE: MO) in March 2019. The deal gave Altria a 45% stake in Cronos, and it was widely believed that Altria would help Cronos develop and market cannabis vape products. However, last year vape health concerns cropped up in the U.S., and the launch of high-margin cannabis derivatives -- a category that includes vapes -- was delayed by two months in Canada. In short, vape products haven't sold very well in Canada.
That's a pretty big problem for Cronos Group because it doesn't have much going on besides its derivatives focus. Whereas most licensed producers focused on producing 80,000 kilos or more of peak annual output, Cronos has just 40,000 kilos of peak potential from its flagship Peace Naturals cultivation farm. Currently, Cronos isn't even producing $10 million in net sales a quarter, and it's continuing to burn through its cash on hand.
A Tesla Model S plugged in for charging. Image source: Tesla.
Tesla
Last but not least, there's the mighty electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA). Admittedly, my definition of "worst stock" might differ from that of other investors, and Tesla has been one of Wall Street's hottest stocks over the trailing 12-month period. But a deeper dive into what's driving the company's stock finds a breakdown is merited.
Tesla CEO Elon Musk deserves credit for taking Tesla from a start-up to a mass-market automaker. However, Musk's company has historically relied on EV credits to drive adjusted profitability. When focusing solely on generally accepted accounting principles (GAAP), Tesla has yet to turn a full-year tangible profit that Wall Street can grasp.
While Musk might be a visionary, investing in Tesla also means putting up with his numerous faults. Musk has a history of overpromising when it comes to release dates, new technology, or production goals, and often fails to meet those timelines. Tesla's acquisition of solar panel lease company SolarCity has also been a complete dud.
Tesla may once have had a first-mover advantage in the EV space, but it won't moving forward with virtually every automaker investing in EVs and autonomous vehicles. With driving range advantages and amenities also narrowing, Tesla's competitive edge simply isn't worth its nosebleed valuation.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aurora Cannabis Millennials love marijuana as an investment, and there's no pot stock they pile into more than Aurora Cannabis (NYSE: ACB). Aurora Cannabis continues to dilute its shareholders into oblivion by selling stock to raise cash, and slightly over half of its total assets are classified as goodwill -- that is, it overpaid for all of its acquisitions. If this still isn't enough reason to stay away from American Airlines, consider that the company suspended its share buyback program and dividends as part of its coronavirus bailout from the federal government. | Aurora Cannabis Millennials love marijuana as an investment, and there's no pot stock they pile into more than Aurora Cannabis (NYSE: ACB). Uber Technologies Another head-scratcher of a stock that Robinhood investors love is ride-hailing and food delivery company Uber Technologies (NYSE: UBER). Over the past two quarters, Uber Eats has generated EBITDA losses of $313 million and $232 million, and yet Uber is throwing $2.65 billion at Postmates in an all-stock deal to further entrench itself in this cash-draining venture. | Aurora Cannabis Millennials love marijuana as an investment, and there's no pot stock they pile into more than Aurora Cannabis (NYSE: ACB). Uber Technologies Another head-scratcher of a stock that Robinhood investors love is ride-hailing and food delivery company Uber Technologies (NYSE: UBER). Admittedly, my definition of "worst stock" might differ from that of other investors, and Tesla has been one of Wall Street's hottest stocks over the trailing 12-month period. | Aurora Cannabis Millennials love marijuana as an investment, and there's no pot stock they pile into more than Aurora Cannabis (NYSE: ACB). I'm not entirely sure what Robinhood investors see in this stock. American Airlines Why millennial investors buy airline stocks, I will never understand. |
37298.0 | 2020-09-11 00:00:00 UTC | Want to Lose $1.8 Billion? Invest in Aurora Cannabis Stock | ACB | https://www.nasdaq.com/articles/want-to-lose-%241.8-billion-invest-in-aurora-cannabis-stock-2020-09-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On Tuesday, Aurora Cannabis (NYSE:ACB) announced a potentially massive 1.8 billion CAD ($1.37 billion) write-down for Q4. Simultaneously, the Canadian marijuana company announced it has chosen a new CEO, its Chief Commercial Officer Miguel Martin. The market reacted with shock, sending ACB stock down 12% before recovering.
Source: Shutterstock
But it’s a trick that other companies have long used.
When struggling companies need to offload past bad decisions, they throw the old CEO under the bus. Hewlett Packard (NYSE:HPQ) famously did that in 2012 when they fired CEO Leo Apotheker while writing off $8.8 billion on its failed Autonomy acquisition. It cleans the slate for the new CEO.
Aurora Cannabis, however, will need far more than blame-shifting to survive. Here’s what Aurora stock investors need from the next CEO.
ACB Stock: The Weakest Link in the Promising Cannabis Industry
Readers will know that I have long eyed the legal cannabis industry. Americans spend almost as much on marijuana as they do on tobacco products, and federal legalization will open the floodgates to legitimate profits.
10 Buyout Stocks With Long-Term Potential
But Aurora Cannabis remains a terrible company.
For years, the company has overinvested in cultivation while ignoring marketing and sales. There was an implicit assumption that “street” weed had terrible quality; once Aurora created better-quality strains, users would immediately switch over.
They were totally wrong.
ACB management clearly underestimated the illegal market. Not only were “legacy growers” competitive in quality. Their multi-level distribution network also kept costs relatively low. Legacy growers, after all, had competed against each other for decades.
Today, Aurora now produces three times more weed than it can sell and burns through almost 800 million CAD a year. Its 1.8 billion CAD write-off simply represents the legally required recognition of past failed investments. Read more about Aurora’s troubles here.
Source: Data courtesy of WSJ Markets
I’ve warned of such poor business planning in the past — just because you’re in a growth industry doesn’t guarantee success.
So how can the new CEO turn Aurora Cannabis around?
ACB Needs to Look like Juul to Succeed …
… and that’s not a good thing.
Controversial vaping company Juul took the U.S. by storm in 2016. Targeting teens and young adults with colorful ads, the firm grew U.S. sales 640% that year and 800% the next. Nicotine pods in hundreds of flavors popped up from grocery stores to gas stations almost overnight. And young smokers started to get hooked.
At its peak, Juul sold nearly $1 billion of vapes and pods annually, reaching a $38 billion valuation. And by 2019, 27.5% of all high school students reported vaping to some extent.
If Aurora wants to regain its $15.7 billion enterprise value, CEO Martin will have to follow a similar path: marketing cheap, mass-market THC products for a new generation of smokers.
Aurora Stock Needs a Cheaper High
As unethical as Juul’s marketing campaigns may have been, they contained the same elements of other successful “vice” companies: a cheap-to-produce product surrounded by powerful marketing. Alcohol companies also routinely target youth to inspire a new generation of devotees, running ads even during college sports games.
And the worst offenders? Big tobacco. Cigarette companies often gave away free cigarettes in the 70s through the 90s to promote their brand (and get new smokers addicted).
In other words, the value of “vice” companies isn’t in production or taking market share. It’s in marketing to a new audience.
Can ACB’s New CEO Navigate the Cannabis Minefield?
Successful “vice” companies need to live with massive public scrutiny.
Juul’s success, for instance, horrified parents and regulators alike. By early 2020, the FDA had banned most flavored nicotine pods, sending Juul’s market value tumbling to $12 billion.
Yet, if CEO Martin wants to turn ACB into a multi-billion-dollar business, his best bet would be this:
Firstly, develop a cheap THC vape cartridge like Canopy Growth’s 510 thread format devices. There’s no need to fight legacy growers in traditional cultivation when you can leverage your size to create an entirely different product.
Secondly, create an aggressive two-pronged marketing plan aimed at 1) converting existing joint smokers and 2) ethically acquiring new users looking for a safe way to experiment.
Finally, take a more active stance in ensuring the safety and responsibility of its users. “Smoking wet,” or consuming tainted marijuana, has long been a problem in the illegal cannabis industry — legal makers need to prove they can do better for society.
What’s Next for ACB Stock?
If Miguel Martin can achieve these three mileposts, ACB will reward stock holders with 10x-30x returns. Few companies have ACB’s massive potential.
But if Martin fails at any of the three mileposts … then what better way to lose another $1.8 billion?
On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.
The post Want to Lose $1.8 Billion? Invest in Aurora Cannabis Stock 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. | Yet, if CEO Martin wants to turn ACB into a multi-billion-dollar business, his best bet would be this: Firstly, develop a cheap THC vape cartridge like Canopy Growth’s 510 thread format devices. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Tuesday, Aurora Cannabis (NYSE:ACB) announced a potentially massive 1.8 billion CAD ($1.37 billion) write-down for Q4. The market reacted with shock, sending ACB stock down 12% before recovering. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Tuesday, Aurora Cannabis (NYSE:ACB) announced a potentially massive 1.8 billion CAD ($1.37 billion) write-down for Q4. The market reacted with shock, sending ACB stock down 12% before recovering. ACB Stock: The Weakest Link in the Promising Cannabis Industry Readers will know that I have long eyed the legal cannabis industry. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Tuesday, Aurora Cannabis (NYSE:ACB) announced a potentially massive 1.8 billion CAD ($1.37 billion) write-down for Q4. The market reacted with shock, sending ACB stock down 12% before recovering. ACB Stock: The Weakest Link in the Promising Cannabis Industry Readers will know that I have long eyed the legal cannabis industry. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Tuesday, Aurora Cannabis (NYSE:ACB) announced a potentially massive 1.8 billion CAD ($1.37 billion) write-down for Q4. What’s Next for ACB Stock? The market reacted with shock, sending ACB stock down 12% before recovering. |
37299.0 | 2020-09-11 00:00:00 UTC | TSX rises as U.S. tech stock rout cools | ACB | https://www.nasdaq.com/articles/tsx-rises-as-u.s.-tech-stock-rout-cools-2020-09-11-0 | nan | nan | Adds details on sectors
Sept 11 (Reuters) - Canada's main stock index rose on Friday, taking cues from Wall Street, as heavyweight U.S. tech stocks gained following a plunge in the previous session that was sparked by a sell-off.
* At 9:50 a.m. ET (13:50 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 100.68 points, or 0.62%, at 16,286.
* A wave of consolidation is underway in Canada's Montney oil and gas region as small companies struggling to weather the impact of coronavirus on the energy industry sell their holdings in what just a few years ago was a booming patch.
* The energy sector .SPTTEN climbed 0.5% even as U.S. crude CLc1 prices were down 0.2% a barrel, while Brent crude LCOc1 lost 0.8%. O/R
* The financials sector .SPTTFS gained 0.5%, while the industrials sector .GSPTTIN rose 0.7%.
* The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, was up 1.6% even as gold futures GCc1 fell 0.2% to $1,949.5 an ounce. GOL/MET/L
* On the TSX, 156 issues were higher, while 55 issues declined for a 2.84-to-1 ratio favouring gainers, with 16.03 million shares traded.
* The largest percentage gainers on the TSX were Teck Resources TECKb.TO, which jumped 8.2% while Empire Company EMPa.TO rose 6.3%.
* Pot producer Aurora Cannabis ACB.TO fell 2.8%, the most on the TSX, while the second biggest decliner was Pason Systems PSI.TO, down 1.5%.
* The most heavily traded shares by volume were Teck Resources TECKb.TO, Freegold Ventures FVL.TO and Air Canada AC.TO.
* The TSX posted one new 52-week high and no new lows.
* Across all Canadian issues, there were five new 52-week highs and one new low, with total volume of 30.92 million shares.
(Reporting by Shashank Nayar in Bengaluru; Editing by Ramakrishnan M.)
((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))
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 2.8%, the most on the TSX, while the second biggest decliner was Pason Systems PSI.TO, down 1.5%. * A wave of consolidation is underway in Canada's Montney oil and gas region as small companies struggling to weather the impact of coronavirus on the energy industry sell their holdings in what just a few years ago was a booming patch. * The materials sector .GSPTTMT, which includes precious and base metals miners and fertilizer companies, was up 1.6% even as gold futures GCc1 fell 0.2% to $1,949.5 an ounce. | * Pot producer Aurora Cannabis ACB.TO fell 2.8%, the most on the TSX, while the second biggest decliner was Pason Systems PSI.TO, down 1.5%. O/R * The financials sector .SPTTFS gained 0.5%, while the industrials sector .GSPTTIN rose 0.7%. GOL/MET/L * On the TSX, 156 issues were higher, while 55 issues declined for a 2.84-to-1 ratio favouring gainers, with 16.03 million shares traded. | * Pot producer Aurora Cannabis ACB.TO fell 2.8%, the most on the TSX, while the second biggest decliner was Pason Systems PSI.TO, down 1.5%. Adds details on sectors Sept 11 (Reuters) - Canada's main stock index rose on Friday, taking cues from Wall Street, as heavyweight U.S. tech stocks gained following a plunge in the previous session that was sparked by a sell-off. * A wave of consolidation is underway in Canada's Montney oil and gas region as small companies struggling to weather the impact of coronavirus on the energy industry sell their holdings in what just a few years ago was a booming patch. | * Pot producer Aurora Cannabis ACB.TO fell 2.8%, the most on the TSX, while the second biggest decliner was Pason Systems PSI.TO, down 1.5%. Adds details on sectors Sept 11 (Reuters) - Canada's main stock index rose on Friday, taking cues from Wall Street, as heavyweight U.S. tech stocks gained following a plunge in the previous session that was sparked by a sell-off. GOL/MET/L * On the TSX, 156 issues were higher, while 55 issues declined for a 2.84-to-1 ratio favouring gainers, with 16.03 million shares traded. |
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