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723400.0
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2021-06-13 00:00:00 UTC
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3 Top Dividend Stocks to Buy in June
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DEA
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https://www.nasdaq.com/articles/3-top-dividend-stocks-to-buy-in-june-2021-06-13
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If you're retired or approaching retirement, you'll definitely want to consider including high-quality dividend stocks in your portfolio. These stocks provide steady income that you can count on. Some of them even offer attractive growth prospects as well. Even if retirement isn't on the horizon for a long time to come, you might still like the security of owning solid dividend stocks.
It's possible, though, that you could experience a case of "analysis paralysis" in choosing these stocks. Nearly 4,000 stocks traded on U.S. stock exchanges pay dividends. Don't worry if you don't have time to sift through all of them. Here are three top dividend stocks that are great picks to buy in June.
Image source: Getty Images.
AbbVie
Arguably the most important thing to know about AbbVie's (NYSE: ABBV) pedigree is that it's a Dividend Aristocrat. The big drugmaker has increased its dividend for 49 consecutive years. You'll also be glad to know that AbbVie offers a juicy dividend yield of 4.5%.
But how reliable will AbbVie's dividend be going forward? After all, sales of the company's top-selling drug, Humira, are likely to plunge beginning in 2023. That's when new biosimilars to the blockbuster autoimmune disease drug hit the U.S. market.
I don't think there's any reason to be worried. AbbVie has known for years that it was only a matter of time before Humira lost U.S. exclusivity. The company has developed its own pipeline candidates as well as completed strategic acquisitions with the goal of keeping its momentum going after Humira's sales fade.
AbbVie's strategy should work pretty well. Although the company expects overall revenue will fall in 2023 as Humira faces biosimilar rivals, it projects a quick return to modest growth the following year with robust revenue growth throughout the rest of the decade. The bottom line is that AbbVie seems likely to keep its streak of dividend hikes going for a long time to come.
Brookfield Renewable
You have a couple of ways to invest in Brookfield Renewable (NYSE: BEP) (NYSE: BEPC). Both of them provide great dividends. Brookfield Renewable Partners, which trades under the ticker BEP, is a limited partnership (LP) with a dividend yield of just north of 3%. Brookfield Renewable Corporation, whose ticker is BEPC, sports a dividend yield of 2.9%.
Brookfield Renewable was originally formed as an LP but decided to create a new stock for investors to eliminate the tax headaches that can come with buying and selling LPs. There's only one underlying business -- and that business is exceptionally strong.
Investing in renewable energy stocks is a smart move right now, with Brookfield Renewable ranking among the best in the group. Brookfield Renewable operates a major renewable energy platform with hydroelectric, wind, solar, and storage facilities spread across four continents.
The demand for renewable energy is practically a slam-dunk to increase over the next decade and beyond as countries and corporations strive to reduce their carbon emissions. Brookfield Renewable appears to be in a strong position to capitalize on this rising demand with a development pipeline capacity that's significantly larger than its current installed capacity.
Easterly Government Properties
I can't think of many dividend stocks that are as rock-solid as Easterly Government Properties (NYSE: DEA). The real estate investment trust (REIT) pays a mouth-watering dividend that currently yields more than 4.8%. More importantly, the company's dividend is as dependable as they come.
Easterly's name gives away its business model. The company focuses on buying properties and leasing them to the U.S. government. As of March 31, 2021, Easterly owned 82 properties with all but two of them leased to U.S. government agencies. Since then, the REIT has acquired two additional properties that it leased to federal agencies.
Darrell Crate, chairman of Easterly's board of directors, stated in the company's Q1 update, "The fundamentals of our business are strong, our pipeline is robust, and the credit quality of our underlying tenant, with leases backed by the full faith and credit of the U.S. government, remains the best of any public REIT out there." He was right. And he provided a compelling reason why Easterly Government Properties is a top dividend stock to buy right now.
10 stocks we like better than Easterly Government Properties
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 Easterly Government Properties wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P. The Motley Fool recommends Easterly Government 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.
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Easterly Government Properties I can't think of many dividend stocks that are as rock-solid as Easterly Government Properties (NYSE: DEA). The company has developed its own pipeline candidates as well as completed strategic acquisitions with the goal of keeping its momentum going after Humira's sales fade. Brookfield Renewable Partners, which trades under the ticker BEP, is a limited partnership (LP) with a dividend yield of just north of 3%.
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Easterly Government Properties I can't think of many dividend stocks that are as rock-solid as Easterly Government Properties (NYSE: DEA). Brookfield Renewable You have a couple of ways to invest in Brookfield Renewable (NYSE: BEP) (NYSE: BEPC). Brookfield Renewable Partners, which trades under the ticker BEP, is a limited partnership (LP) with a dividend yield of just north of 3%.
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Easterly Government Properties I can't think of many dividend stocks that are as rock-solid as Easterly Government Properties (NYSE: DEA). And he provided a compelling reason why Easterly Government Properties is a top dividend stock to buy right now. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., and Brookfield Renewable Partners L.P.
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Easterly Government Properties I can't think of many dividend stocks that are as rock-solid as Easterly Government Properties (NYSE: DEA). The company focuses on buying properties and leasing them to the U.S. government. And he provided a compelling reason why Easterly Government Properties is a top dividend stock to buy right now.
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d358f982-69f7-42b0-b945-8b242677c460
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723401.0
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2021-06-02 00:00:00 UTC
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XSLV, HTLD, DEA, AWR: ETF Outflow Alert
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DEA
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https://www.nasdaq.com/articles/xslv-htld-dea-awr%3A-etf-outflow-alert-2021-06-02
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P SmallCap Low Volatility ETF (Symbol: XSLV) where we have detected an approximate $157.2 million dollar outflow -- that's a 11.5% decrease week over week (from 28,660,000 to 25,370,000). Among the largest underlying components of XSLV, in trading today Heartland Express, Inc. (Symbol: HTLD) is trading flat, Easterly Government Properties Inc (Symbol: DEA) is up about 0.6%, and American States Water Co (Symbol: AWR) is relatively unchanged. For a complete list of holdings, visit the XSLV Holdings page » The chart below shows the one year price performance of XSLV, versus its 200 day moving average:
Looking at the chart above, XSLV's low point in its 52 week range is $31.82 per share, with $47.99 as the 52 week high point — that compares with a last trade of $47.73. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 7%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of XSLV, in trading today Heartland Express, Inc. (Symbol: HTLD) is trading flat, Easterly Government Properties Inc (Symbol: DEA) is up about 0.6%, and American States Water Co (Symbol: AWR) is relatively unchanged. For a complete list of holdings, visit the XSLV Holdings page » The chart below shows the one year price performance of XSLV, versus its 200 day moving average: Looking at the chart above, XSLV's low point in its 52 week range is $31.82 per share, with $47.99 as the 52 week high point — that compares with a last trade of $47.73. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of XSLV, in trading today Heartland Express, Inc. (Symbol: HTLD) is trading flat, Easterly Government Properties Inc (Symbol: DEA) is up about 0.6%, and American States Water Co (Symbol: AWR) is relatively unchanged. For a complete list of holdings, visit the XSLV Holdings page » The chart below shows the one year price performance of XSLV, versus its 200 day moving average: Looking at the chart above, XSLV's low point in its 52 week range is $31.82 per share, with $47.99 as the 52 week high point — that compares with a last trade of $47.73. Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of XSLV, in trading today Heartland Express, Inc. (Symbol: HTLD) is trading flat, Easterly Government Properties Inc (Symbol: DEA) is up about 0.6%, and American States Water Co (Symbol: AWR) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P SmallCap Low Volatility ETF (Symbol: XSLV) where we have detected an approximate $157.2 million dollar outflow -- that's a 11.5% decrease week over week (from 28,660,000 to 25,370,000). For a complete list of holdings, visit the XSLV Holdings page » The chart below shows the one year price performance of XSLV, versus its 200 day moving average: Looking at the chart above, XSLV's low point in its 52 week range is $31.82 per share, with $47.99 as the 52 week high point — that compares with a last trade of $47.73.
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Among the largest underlying components of XSLV, in trading today Heartland Express, Inc. (Symbol: HTLD) is trading flat, Easterly Government Properties Inc (Symbol: DEA) is up about 0.6%, and American States Water Co (Symbol: AWR) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P SmallCap Low Volatility ETF (Symbol: XSLV) where we have detected an approximate $157.2 million dollar outflow -- that's a 11.5% decrease week over week (from 28,660,000 to 25,370,000). For a complete list of holdings, visit the XSLV Holdings page » The chart below shows the one year price performance of XSLV, versus its 200 day moving average: Looking at the chart above, XSLV's low point in its 52 week range is $31.82 per share, with $47.99 as the 52 week high point — that compares with a last trade of $47.73.
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0f84820e-288f-4e20-9b9e-22875221e760
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723402.0
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2021-05-28 00:00:00 UTC
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Should Weakness in Easterly Government Properties, Inc.'s (NYSE:DEA) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
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DEA
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https://www.nasdaq.com/articles/should-weakness-in-easterly-government-properties-inc.s-nyse%3Adea-stock-be-seen-as-a-sign
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nan
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nan
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Easterly Government Properties (NYSE:DEA) has had a rough three months with its share price down 6.1%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Particularly, we will be paying attention to Easterly Government Properties' ROE today.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
How Is ROE Calculated?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Easterly Government Properties is:
1.5% = US$19m ÷ US$1.3b (Based on the trailing twelve months to March 2021).
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.01 in profit.
What Has ROE Got To Do With Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
A Side By Side comparison of Easterly Government Properties' Earnings Growth And 1.5% ROE
It is hard to argue that Easterly Government Properties' ROE is much good in and of itself. Even when compared to the industry average of 5.1%, the ROE figure is pretty disappointing. Despite this, surprisingly, Easterly Government Properties saw an exceptional 33% net income growth over the past five years. We reckon that there could be other factors at play here. Such as - high earnings retention or an efficient management in place.
As a next step, we compared Easterly Government Properties' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 10.0%.
NYSE:DEA Past Earnings Growth May 28th 2021
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Is DEA fairly valued? This infographic on the company's intrinsic value has everything you need to know.
Is Easterly Government Properties Efficiently Re-investing Its Profits?
Easterly Government Properties has a very high three-year median payout ratio of 75%. This means that it has only 25% of its income left to reinvest into its business. However, it's not unusual to see a REIT with such a high payout ratio mainly due to statutory requirements. In spite of this, the company was able to grow its earnings significantly, as we saw above.
Moreover, Easterly Government Properties is determined to keep sharing its profits with shareholders which we infer from its long history of six years of paying a dividend. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 80%.
Conclusion
On the whole, we do feel that Easterly Government Properties has some positive attributes. That is, quite an impressive growth in earnings. However, the low profit retention means that the company's earnings growth could have been higher, had it been reinvesting a higher portion of its profits. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (NYSE:DEA) has had a rough three months with its share price down 6.1%. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. NYSE:DEA Past Earnings Growth May 28th 2021 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.
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Easterly Government Properties (NYSE:DEA) has had a rough three months with its share price down 6.1%. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. NYSE:DEA Past Earnings Growth May 28th 2021 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.
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We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Easterly Government Properties (NYSE:DEA) has had a rough three months with its share price down 6.1%. NYSE:DEA Past Earnings Growth May 28th 2021 The basis for attaching value to a company is, to a great extent, tied to its earnings growth.
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NYSE:DEA Past Earnings Growth May 28th 2021 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. Easterly Government Properties (NYSE:DEA) has had a rough three months with its share price down 6.1%. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company.
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a8f109cd-93e6-4a9e-8d14-5a7589b53660
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723403.0
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2021-05-20 00:00:00 UTC
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3 Dividend Stocks You Can Safely Hold for Decades
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DEA
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https://www.nasdaq.com/articles/3-dividend-stocks-you-can-safely-hold-for-decades-2021-05-20
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nan
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nan
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In a world of dizzying changes, it's nice to have at least a few constants. These are things that don't change -- at least not in a bad way. You can count on them year in and year out.
This is especially important for income-seeking investors. You don't want to have to whipsaw in and out of different stocks on a continual basis. Instead, you'll want to buy the stocks of solid companies that pay steady dividends. The good news is that such stocks do exist. Here are three dividend stocks that you can safely hold for decades.
Image source: Getty Images.
Brookfield Renewable
Do you foresee the demand for renewable energy increasing or decreasing over the next two, three, or even four decades? You don't need an uncanny ability for predicting the future to expect higher usage of renewable energy sources for a long time to come.
That's great news for Brookfield Renewable (NYSE: BEP) (NYSE: BEPC), one of the world's top providers of renewable energy. The company operates hydroelectric, wind, solar, and storage facilities across North America, South America, Asia, and Europe. It has strong growth prospects, with a development pipeline that's nearly 29% larger than its installed capacity.
Brookfield Renewable has increased its distribution (dividend) payout by a compound annual growth rate of 6% since 2000. It targets annual increases of between 5% and 9%.
You can buy Brookfield Renewable in two ways. Shares of the limited partnership (LP) Brookfield Renewable Partners trade under the BEP ticker and currently offer a dividend yield of 3.2%. Shares of Brookfield Renewable Corporation trade under the BEPC ticker with a current dividend yield of nearly 3.1%.
Both stocks reflect the same underlying business. Brookfield Renewable set up BEPC to give investors an alternative to buy without encountering some of the tax issues associated with LPs.
Easterly Government Properties
Easterly Government Properties (NYSE: DEA) board chairman Darrell Crate summed up the key thing to know about the company in just 12 words in Easterly's Q1 conference call. He stated that the real estate investment trust (REIT) has "leases backed by the full faith and credit of the U.S. government."
A REIT is only as strong as its tenants. Easterly is one of the most attractive dividend stocks around because its tenant -- Uncle Sam -- is as strong as you'll find. The company currently owns 82 properties, and 80 of them are leased to U.S. government agencies.
As a REIT, Easterly must return at least 90% of its taxable income to shareholders in the form of dividends. Its dividend currently yields nearly 5.2%.
The company should also deliver solid growth, primarily by acquiring new properties. Easterly bought three buildings in March and another in April, all of which have been leased to federal agencies.
Johnson & Johnson
There aren't many stocks that are as safe as Johnson & Johnson (NYSE: JNJ). The healthcare giant has been in business for over 130 years and has weathered plenty of storms during its history. It's not only survived, but thrived.
The two greatest strengths for Johnson & Johnson are its diversification and financial position. It sells hundreds of products across the healthcare sector, from consumer products such as Band-Aids and Listerine to medical devices to prescription drugs. J&J generated sales of $82.5 billion last year, with profits totaling $14.7 billion.
Johnson & Johnson also ranks as a Dividend King, with 59 consecutive annual dividend increases. Its dividend yield currently stands at 2.5%.
The company should deliver decent long-term growth to boot. Wall Street analysts project that J&J will grow its earnings by an average of nearly 7.5% over the next five years. Johnson & Johnson's strong financial position allows it to invest heavily in research and development, as well as make strategic acquisitions to ensure it stays at the forefront of healthcare innovation.
10 stocks we like better than Johnson & Johnson
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 Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Keith Speights owns shares of Brookfield Renewable Corporation Inc. and Brookfield Renewable Partners L.P. The Motley Fool recommends Easterly Government Properties and Johnson & Johnson. 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.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) board chairman Darrell Crate summed up the key thing to know about the company in just 12 words in Easterly's Q1 conference call. You don't need an uncanny ability for predicting the future to expect higher usage of renewable energy sources for a long time to come. Shares of the limited partnership (LP) Brookfield Renewable Partners trade under the BEP ticker and currently offer a dividend yield of 3.2%.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) board chairman Darrell Crate summed up the key thing to know about the company in just 12 words in Easterly's Q1 conference call. That's great news for Brookfield Renewable (NYSE: BEP) (NYSE: BEPC), one of the world's top providers of renewable energy. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights owns shares of Brookfield Renewable Corporation Inc. and Brookfield Renewable Partners L.P.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) board chairman Darrell Crate summed up the key thing to know about the company in just 12 words in Easterly's Q1 conference call. Johnson & Johnson There aren't many stocks that are as safe as Johnson & Johnson (NYSE: JNJ). 10 stocks we like better than Johnson & Johnson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) board chairman Darrell Crate summed up the key thing to know about the company in just 12 words in Easterly's Q1 conference call. That's great news for Brookfield Renewable (NYSE: BEP) (NYSE: BEPC), one of the world's top providers of renewable energy. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them!
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390bf736-d257-41a1-875f-b120f325e0eb
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723404.0
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2021-05-16 00:00:00 UTC
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3 High-Yield Dividend Stocks I'd Buy Right Now
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DEA
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https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-id-buy-right-now-2021-05-16
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nan
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nan
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Look up "yield" in the dictionary. One of the first definitions you'll find is something along the lines of to give up or surrender. Of course, investors have another meaning in mind when they think about yield. They're thinking about the dividends they can receive by buying stocks.
Unfortunately, the investing definition of yield sometimes comes joined at the hip with the surrender definition. Investors can at times feel like they have to give up a lot to gain a high dividend yield. That doesn't have to be the case, though. Here are three high-yield dividend stocks I'd buy right now.
Image source: Getty Images.
AbbVie
You won't have to give up much at all investing in AbbVie (NYSE: ABBV). The big drug stock offers income, value, and growth.
AbbVie's dividend yield currently stands at close to 4.5%. The company has increased its dividend by a whopping 225% since its spin-off from Abbott in 2013. It's also a Dividend Aristocrat with 49 consecutive annual dividend increases.
Many investors would also consider AbbVie a bargain. Its shares trade at a little over nine times expected earnings. That's well below the forward earnings multiple of 13.5 for the pharmaceutical companies in the S&P 500.
AbbVie should even deliver solid long-term growth. Granted, there will be a blip in 2023 when the company's top-selling drug Humira faces biosimilar rivals in the U.S. However, the company expects a quick rebound with strong revenue growth through the rest of the decade.
Easterly Government Properties
Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. It's a real estate investment trust (REIT) with a dividend yield of 5.2%. You can't count on annual dividend hikes with Easterly, but the payout is rock-solid.
As Easterly chairman Darrell Crate said in the company's Q1 conference call, "We're not a complicated story. We keep it simple. We purchase and develop the U.S. government-leased assets and pass along the stable cash flows and superior tenant credit quality to our shareholders, generating strong risk-adjusted returns."
Leasing properties to the U.S. government might not be super-exciting. However, it's super-safe. The rent always gets paid on time. If there's ever a point where Uncle Sam can't make a payment, the world has much bigger things to worry about than dividend yields.
This business model has worked really well for Easterly. The company has increased its funds from operations (FFO) at a compound annual growth rate of around 4% while paying a dividend yield that's typically close to 5%. That's the kind of boring stock that I suspect income-seeking investors will really like.
Enterprise Products Partners
Enterprise Products Partners' (NYSE: EPD) dividend yield of 7.6% is the juiciest of these three stocks. The midstream energy company has increased its distribution for 22 consecutive years, an impressive track record considering that EPD operates in a relatively volatile industry.
Volatility isn't always a negative thing, though. EPD's shares have soared more than 20% year to date with several factors driving fuel prices higher.
But does the shift to clean energy sources jeopardize EPD's prospects? Not anytime soon. The demand for fossil fuels is likely to continue increasing over the next several decades even as renewable energy gains additional traction. EPD views areas such as hydrogen and carbon capture and storage as opportunities rather than threats. The company could expand more into these technologies in the future.
I expect that the stock will remain volatile going forward. That's just the nature of the energy business. However, I also think that investors will be able to count on continued strong distributions from Enterprise Products Partners for years to come.
10 stocks we like better than Enterprise Products Partners
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 Enterprise Products Partners wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Keith Speights owns shares of AbbVie and Enterprise Products Partners. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. 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.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. We purchase and develop the U.S. government-leased assets and pass along the stable cash flows and superior tenant credit quality to our shareholders, generating strong risk-adjusted returns." The company has increased its funds from operations (FFO) at a compound annual growth rate of around 4% while paying a dividend yield that's typically close to 5%.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. Enterprise Products Partners Enterprise Products Partners' (NYSE: EPD) dividend yield of 7.6% is the juiciest of these three stocks. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. Enterprise Products Partners Enterprise Products Partners' (NYSE: EPD) dividend yield of 7.6% is the juiciest of these three stocks. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Keith Speights owns shares of AbbVie and Enterprise Products Partners.
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Easterly Government Properties Easterly Government Properties (NYSE: DEA) ranks as one of the best -- and perhaps most boring -- dividend stocks around. Its shares trade at a little over nine times expected earnings. The midstream energy company has increased its distribution for 22 consecutive years, an impressive track record considering that EPD operates in a relatively volatile industry.
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723405.0
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2021-05-12 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Ex-Dividend Date Scheduled for May 13, 2021
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc.-dea-ex-dividend-date-scheduled-for-may-13-2021-2021-05
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Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on May 13, 2021. A cash dividend payment of $0.26 per share is scheduled to be paid on May 26, 2021. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 15th quarter that DEA has paid the same dividend. At the current stock price of $20.57, the dividend yield is 5.06%.
The previous trading day's last sale of DEA was $20.57, representing a -22.26% decrease from the 52 week high of $26.46 and a 1.23% increase over the 52 week low of $20.32.
DEA is a part of the Consumer Services sector, which includes companies such as Prologis, Inc. (PLD) and Equinix, Inc. (EQIX). DEA's current earnings per share, an indicator of a company's profitability, is $.21. Zacks Investment Research reports DEA's forecasted earnings growth in 2021 as 3.17%, compared to an industry average of 6.1%.
For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DEA is a part of the Consumer Services sector, which includes companies such as Prologis, Inc. (PLD) and Equinix, Inc. (EQIX). Zacks Investment Research reports DEA's forecasted earnings growth in 2021 as 3.17%, compared to an industry average of 6.1%. For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. DEA's current earnings per share, an indicator of a company's profitability, is $.21. Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on May 13, 2021.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 15th quarter that DEA has paid the same dividend. For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on May 13, 2021. This marks the 15th quarter that DEA has paid the same dividend.
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592fa7e7-1bdb-4175-a29e-70ad69b6f967
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723406.0
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2021-05-11 00:00:00 UTC
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Ex-Dividend Reminder: Apartment Income REIT, Easterly Government Properties and Community Healthcare Trust
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-apartment-income-reit-easterly-government-properties-and-community
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Looking at the universe of stocks we cover at Dividend Channel, on 5/13/21, Apartment Income REIT Corp (Symbol: AIRC), Easterly Government Properties Inc (Symbol: DEA), and Community Healthcare Trust Inc (Symbol: CHCT) will all trade ex-dividend for their respective upcoming dividends. Apartment Income REIT Corp will pay its quarterly dividend of $0.43 on 5/28/21, Easterly Government Properties Inc will pay its quarterly dividend of $0.26 on 5/26/21, and Community Healthcare Trust Inc will pay its quarterly dividend of $0.43 on 5/28/21. As a percentage of AIRC's recent stock price of $43.88, this dividend works out to approximately 0.98%, so look for shares of Apartment Income REIT Corp to trade 0.98% lower — all else being equal — when AIRC shares open for trading on 5/13/21. Similarly, investors should look for DEA to open 1.25% lower in price and for CHCT to open 0.89% lower, all else being equal.
Below are dividend history charts for AIRC, DEA, and CHCT, showing historical dividends prior to the most recent ones declared.
Apartment Income REIT Corp (Symbol: AIRC):
Easterly Government Properties Inc (Symbol: DEA):
Community Healthcare Trust Inc (Symbol: CHCT):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 3.92% for Apartment Income REIT Corp, 4.99% for Easterly Government Properties Inc, and 3.57% for Community Healthcare Trust Inc.
In Tuesday trading, Apartment Income REIT Corp shares are currently down about 1.3%, Easterly Government Properties Inc shares are down about 1.1%, and Community Healthcare Trust Inc shares are down about 1.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/13/21, Apartment Income REIT Corp (Symbol: AIRC), Easterly Government Properties Inc (Symbol: DEA), and Community Healthcare Trust Inc (Symbol: CHCT) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DEA to open 1.25% lower in price and for CHCT to open 0.89% lower, all else being equal. Below are dividend history charts for AIRC, DEA, and CHCT, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/13/21, Apartment Income REIT Corp (Symbol: AIRC), Easterly Government Properties Inc (Symbol: DEA), and Community Healthcare Trust Inc (Symbol: CHCT) will all trade ex-dividend for their respective upcoming dividends. Apartment Income REIT Corp (Symbol: AIRC): Easterly Government Properties Inc (Symbol: DEA): Community Healthcare Trust Inc (Symbol: CHCT): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DEA to open 1.25% lower in price and for CHCT to open 0.89% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/13/21, Apartment Income REIT Corp (Symbol: AIRC), Easterly Government Properties Inc (Symbol: DEA), and Community Healthcare Trust Inc (Symbol: CHCT) will all trade ex-dividend for their respective upcoming dividends. Apartment Income REIT Corp (Symbol: AIRC): Easterly Government Properties Inc (Symbol: DEA): Community Healthcare Trust Inc (Symbol: CHCT): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for DEA to open 1.25% lower in price and for CHCT to open 0.89% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 5/13/21, Apartment Income REIT Corp (Symbol: AIRC), Easterly Government Properties Inc (Symbol: DEA), and Community Healthcare Trust Inc (Symbol: CHCT) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DEA to open 1.25% lower in price and for CHCT to open 0.89% lower, all else being equal. Below are dividend history charts for AIRC, DEA, and CHCT, showing historical dividends prior to the most recent ones declared.
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723407.0
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2021-05-04 00:00:00 UTC
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Easterly Government Properties Inc (DEA) Q1 2021 Earnings Call Transcript
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-q1-2021-earnings-call-transcript-2021-05-04
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Image source: The Motley Fool.
Easterly Government Properties Inc (NYSE: DEA)
Q1 2021 Earnings Call
May 4, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings. Welcome to the Easterly Government Properties First Quarter 2021 Earnings Conference Call. [Operator Instructions].
I will now turn the conference over to your host, Lindsay Winterhalter, Vice President, Investor Relations. You may begin.
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Lindsay Winterhalter -- Vice President, Investor Relation And Operations
Good morning. Before the call begins, please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Act Reform of 1995 and is making this statement for the purpose of complying with those Safe Harbor provisions. Although the company believes its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, it can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control; including, without limitation, those contained in Item 1A, Risk factors, of its Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 24, 2021, and in its other SEC filings; and risks and uncertainties related to the adverse impact of COVID-19 on the U.S. regional and global economies and the potential adverse impact on the financial condition and results of operation of the company. The company assumes no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations, funds from operations as adjusted, and cash available for distribution. You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package on the Investor Relations page of the company's website at ir.easterlyreit.com.
I would now like to turn the conference call over to Darrell Crate, Chairman of Easterly Government Properties.
Darrell W. Crate -- Chairman of the Board of Directors
Thank you, Lindsay. Good morning, everybody, and thank you for joining us for this first quarter conference call. Today, in addition to Lindsay, I'm also joined by Bill Trimble, the company's CEO; and Meghan Baivier, the company's CFO and COO.
Easterly continues to consistently execute on its strategy of owning class A, mission-critical facilities leased to the United States federal government. Our story is simple. We seek to own a pristine portfolio of buildings, many built-to-suit, that are occupied by some of the country's most important tenant agencies. We aspire to be the chosen partner of our tenants to maintain and enhance their facilities to aid in the execution of their missions.
We grow our FFO through acquisitions, nonspeculative development, and through the renewal of existing assets. Our acquisitions this quarter were consistent with all these objectives.
The first quarter of 2021 marks the sixth anniversary of Easterly as a public company. Looking back at the value created during those six years, we are pleased with our progress. We've scaled our platform from 29 to 82 properties through accretive acquisitions and development. We diversified the tenant base from 12.0 to 39.0 U.S. government agencies, each with enduring missions. We've grown the percentage of lease income backed by the full faith and credit of the U.S. government from 96% to 99%. We've increased our stable recurring cash flows in aggregate contractual rent due from the U.S. government from $360 million to $2.1 billion. We've increased our weighted average remaining lease term from 7.7 years to 8.6 years.
And finally, we've grown FFO at a compound rate of approximately 4% annually while also paying a dividend of 4% to 5%. This supports a 9% total return, which implies a premium of 730 basis points above treasuries. We are proud that we've delivered this attractive return profile to investors, and we're pleased that the fundamentals of our business remain materially the same, going forward, as they've been in the past.
All of this has been achieved while maintaining the same investment discipline and values we established six years ago. We're not a complicated story. We keep it simple. We purchase and develop the U.S. government-leased assets and pass along the stable cash flows and superior tenant credit quality to our shareholders, generating strong risk-adjusted returns. And with a highly actionable pipeline, we believe we'll be able to continue to execute on our original thesis for many years to come.
In closing, the fundamentals of our business are strong, our pipeline is robust, and the credit quality of our underlying tenant, with leases back by the full faith and credit of the U.S. government, remains the best of any public REIT out there. We thank you for your continued partnership and engagement as we work to grow this premier portfolio of real estate assets leased to the United States federal government.
And with that, I'll turn the call over to Bill to give you insights into the first quarter results.
William C. Trimble -- Chief Executive Officer President And Director
Thanks, Darrell, and good morning. Thank you for joining us for our first quarterearnings call The acquisitions team continued its elevated acquisition pace with the closing of a bullseye portfolio of Class A real estate leased to the United States federal government.
The three-building, approximately 177,000 square-foot portfolio is comprised of some of the government's most important tenant agencies, including the Federal Bureau of Investigation, the U.S. Attorney's Office, and the U.S. Immigration and Customs Enforcement Agency. This LEED-certified portfolio is entirely built-to-suit and operating under its first-generation lease terms.
FBI-Knoxville is a 99,000 square foot leased LEED-certified built-to-suit property completed in 2010 and leased until August of 2025 for the initial 15-year lease term. FBI-Knoxville is one of 56 field offices of the FBI, a Bureau-level federal agency within the U.S. Department of Justice, which serves a dual role as both a federal criminal investigative body and an intelligence agency. With this acquisition, Easterly now owns 12 of the FBI's field offices.
U.S. AO Louisville, a 60,000 leased square foot built-to-suit property completed in 2011, is leased through December of 2031 by the GSA on behalf of the U.S. Attorney for the Western District of Kentucky, which serves as the main U.S. attorney office for this district, located directly across the street from the Gene Snyder U.S. Federal Courthouse. U.S. AO Louisville houses the U.S. attorney's office for the Western District of Kentucky.
And finally, ICE Louisville, a LEED Silver built-to-suit office facility completed in 2011, is leased through May of 2021 to the GSA on behalf of the agency. This 17,420-foot leased square foot office facility works in close cooperation with other Customs agencies within the interior of our country and provides critical administrative support for efforts such as Customs, trade and immigration.
Further, just recently announced and subsequent to quarter-end, Easterly purchased another built-to-suit mission-critical facility for the U.S. Attorney's office in Springfield, Illinois. U.S. AO Springfield, a three story Class A facility for the Department of Justice Attorney's office for the Central District of Illinois, was constructed in 2002 and is 100% leased to the GSA on behalf of the U.S. AO for a 20-year lease, which does not expire until March of 2038.
With 40% of our targeted $200 million of acquisitions for 2021 already completed, we are, as stated on our previous call, seeing a lot of promising opportunities in our universe and will continue to drive toward adding accretive opportunities in both marketed and off-market transactions. Our acquisitions team is constantly sourcing new, high-quality opportunities that mirror our average portfolio building size and help drive FFO growth. We achieve scale and growth through a highly disciplined acquisition process that targets buildings leased to a single tenant of the U.S. federal government that are often the result of a design-build award, and they're usually over 40,000 square feet in size. As mentioned previously, in our targeted universe, we know and have already underwritten every property that fits into our bullseye for acquisition.
Another source of growth at Easterly comes from our development program. We continue to make progress with the GSA and the FDA at the 162,000 square foot FDA laboratory in Atlanta, Georgia, which we expect to deliver in the third quarter of 2023. Given the highly technical, mission-critical nature of these sophisticated laboratories, we appreciate the opportunity to work so harmoniously with our federal partners to ensure we deliver a state-of-the-art facility. In addition to FDA Atlanta, our team, led by Mike Ibe and Mark Bauer, are currently pursuing other opportunities that fit our non-specialist development pipeline.
Turning to leasing updates. Our asset management team made great strides in the first quarter of 2021 as we renewed the lease at ICE Pittsburgh for a 10-year term that will go into effect in 2022 and will not expire until 2032. We also renewed the Treasury Parkersburg facility for a new 20-year term commencing in March of 2021 and expiring in 2041. The DEA laboratory in Sterling, Virginia renewed for another 15-year term, as well as the DEA Bakersfield facility for another 17-year term. In total, this represents four renewals, approximately 270,000 square feet, or 3.1% of the total portfolio's annualized lease income that renewed in the first quarter of 2021.
Finally, we remain fully committed and focused on our ESG efforts, ensuring we deliver meaningful progress for our shareholders, employees, our Board of Directors and the communities in which we serve. We welcome those on the call today to soon visit our Corporate Responsibility website and review our commitments in what will be our newly amended environmental sustainability, social responsibility and human rights policy, as well as our inaugural Vendor Code of Conduct.
In closing, we are off to a strong start in the new year with a three building portfolio; and, subsequent to quarter-end, the acquisition of the U.S. AO Springfield facility. From here, you can expect the Easterly team will continue to execute on its disciplined strategy of acquiring the most important assets in the federal government's leased real estate portfolio. We will also continue to work hand-in-hand with the GSA and underlying tenant agencies on upcoming renewals and long-term strategic planning as it relates to nonspeculative development opportunities. We look forward to seeing you in person at upcoming conferences and investor meetings in the not-so-distant future.
With that, I thank you for your time this morning, and we'll turn the call over to Meghan to discuss the quarterly financial results.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Thank you, Bill. Good morning, everyone. It gives me a great pleasure to post another strong quarter of demonstrable growth at Easterly. As with prior quarters, COVID-19 had no material negative financial impact on the organization, as Easterly received 100% of rental income due from our tenants in the first quarter.
As of March 31, we owned 82 operating properties, totaling approximately 7.5 million square feet of commercial real estate, with one additional development project in design comprised of approximately 162,000 square feet. Through the acquisition of newer facilities, the weighted average age of our portfolio remains young at 13.4 years. Successful long-term renewals at existing properties have also allowed us to grow our weighted average remaining lease term to a historic high of 8.6 years. This represents a year-over-year lengthening of our weighted average remaining lease term of 0.9 years.
Maintaining a young portfolio age and a long weighted average remaining lease term is reflective of our strategy of owning relatively new built-to-suit assets with enduring missions. This strategy provides us with distinctive future cash flow visibility, which, in turn, allows us to prudently manage the company's balance sheet and support our highly accretive acquisition and development project pipeline.
Turning to our quarterly results. For the first quarter, net income per share on a fully diluted basis was $0.09. FFO per share on a fully diluted basis was $0.33, up nearly 8.5% year-over-year, a rate we are particularly proud of given the backdrop of a global pandemic. FFO as adjusted per share on a fully diluted basis was $0.31, and our cash available for distribution was $24.4 million.
Turning to the balance sheet. At quarter-end, the company had total indebtedness of approximately $1 billion, with $341 million available on our line of credit for future acquisitions and development-related expenses. As of March 31, Easterly's net debt to total enterprise value was 34%, and its adjusted net debt to annualized quarterly pro forma EBITDA ratio was 6.2 times. As previously mentioned, with this low leverage level, numerous sources of available debt capital, access to equity sold on a forward basis and an attractive cost of equity, we are well-poised to lean into future growth opportunities.
In the first quarter of 2021, the company issued approximately 1.56 million shares of its common stock through the company's ATM program, raising net proceeds to the company of approximately $40 million. At a net weighted average price of $25.69 per share, this highly attractive cost of capital delivers meaningful accretion to shareholders. Today, the company has approximately 2.9 million shares which are subject to unsettled forward sales transactions under the company's ATM program. Assuming these shares are physically settled in full at a net weighted average initial forward sales price of $24.43 per share, the company expects to receive net proceeds of approximately $72.1 million.
Turning to our earnings guidance. The company is maintaining its previously issued 2021 FFO per share on a fully diluted basis guidance in a range of $1.28 to $1.30. The midpoint of this guidance is predicated upon completing $200 million in acquisitions and $25 million in growth development-related investment in 2021. Easterly remains on track to deliver 2% to 3% FFO growth per share year-over-year, a percentage we are proud to provide to our shareholders through underlying U.S. government cash flows.
Finally, as Bill previously mentioned, we've had a successful quarter of releasing activity. And with nearly 550,000 square feet and 11 leases expiring through the end of 2021, we are pleased to report we are making meaningful progress with the GSA and are in active discussions regarding all properties at this time. We feel good about the long-term mission and tenancy of these upcoming expirations, and we'll continue to keep you apprised of future renewals in the coming quarters. As always, we thank you for your commitment to our thesis and continued partnership.
With that, I will turn the call back to Shamali.
Questions and Answers:
Operator
[Operator Instructions] Our first question is from Michael Carroll with RBC Capital Markets. Please proceed with your question.
Michael Carroll -- RBC Capital Markets -- Analyst
Yes. Thanks. Bill or Megan, can you talk a little bit about the renewals that you completed in the first quarter? What's the cash lease spread? And can you provide color on the base rent and how the TI build-outs kind of will roll in the numbers in the rent streams over the next few quarters?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Good morning Michael. So as Bill mentioned, there were four renewals in the quarter, the buildings we referred to as Treasury Parkersburg, DEA Bakersfield, ICE Pittsburgh and DEA Sterling. It's an interesting cross-section of the portfolio. Those four leases we are expecting. two of them do have tenant improvement allowances included in the renewals, but we are, again, expecting, because these are not completed TIs, an average of approximately 8.5% in the rent spread with an average $30 to $35 of TI. Treasury Parkersburg and ICE Pittsburgh had no TI budgeted, and so that brought down the average for the quarter.
Michael Carroll -- RBC Capital Markets -- Analyst
And can you talk to us about the TI budgeted and maybe explain how that rolls into the rent stream? I guess, once you've built out those spaces, that's going to add rents to the base rents over the next few quarters. And how long will that take to complete those TIs?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Sure. So as I said, Treasury Parkersburg and ICE Pittsburgh do not have any TI allowances, so those spreads would kick in on day 1. And we don't have a perfectly clear crystal ball, but it's our expectation that, in Bakersfield and Sterling, that we would also be able to have the tenant improvement completed prior to the commencement of those new leases. The Sterling asset will commence in the third quarter of 2022 and Bakersfield in January of 2022. So it should provide us sufficient time this year.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay. Great. And then, I guess, Bill, can you talk a little bit about your FBI field offices? I think you highlighted that there's 12 that Easterly owns today. I mean, does that provide you incremental synergies with that in the ability to really maybe to complete more deals or sign leases with them? I guess what type of advantages does that have, having full field offices?
William C. Trimble -- Chief Executive Officer President And Director
Yes, more Michael, I think it does. I think that at the point, we're now at 12, the FBI certainly knows who we are. I think we're very pleased with how we run their buildings.
And what I think we're beginning to see, as I mentioned before, is there's a number of projects that we'll do it one building, at the government expense, that we will then do at another one of our facilities. I think it also smooths out our renewals because I think they understand that we have a very good handle on what these buildings are worth, what they cost to develop. And so I think that's going to only in order to our benefit going forward.
So I'm very pleased to get to this scale. As you know, that's the best group of buildings, I think we can possibly own within the federal government. And I think we have a terrific relationship with the agency. So I'm looking forward to owning more, look forward to the next 12.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay. Great. And then I guess last question. Can you talk a little bit about the deals that Mike Ibe is pursuing with the GSA build-to-suits? I think that you highlighted in your prepared remarks that he's pursuing -- I don't know if you put a qualifier on that, though, is multiple or several. But is there an expectation on how many GSA build-to-suits you could potentially announce this year? Or how many are even out there?
William C. Trimble -- Chief Executive Officer President And Director
What I'd say, Michael, is it really hasn't changed because, as you can imagine, the federal government does move at a glacial pace when it comes to a lot of these opportunities. But I would continue to say that this FDA laboratory program, which was slowed during COVID, luckily, we got everything we needed to get done before the sort of shutdown. I think we're wide off here. Whether it starts in the fall or in the next winter, I think there's going to be some terrific opportunities there. Those are very expensive buildings, and we have a real expertise, especially Mike and Mark, on delivering for the FDA.
I think we're going to see some more FEMA projects. I think that's a very popular agency with the current administration. I think you're going to see more opportunities there.
And then, from a purchasing standpoint, as you know, we've been really terrific buying some of these brand-new VA facilities, again, not overnight stays, but the new face of the VA. And I think you're seeing a lot of other developers executing on those plans. So I think we're going to see a lot of upside certainly from them, as well.
So all in all, I think, yes, we will see some new opportunities. We look forward to announcing them. But I think we're still waiting to get out of the barn a little bit with the COVID world, but it isn't going to slow down our team. They're traveling around. They're looking at opportunities and fingers crossed, but I think that will continue to be a strong driver of FFO growth for us into the future.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay. Great. Thanks
Operator
Our next question is from Merrill Ross with Compass Point. Please proceed with your question.
Merrill Ross -- Compass Point -- Analyst
Hi, Good morning. I'm wondering, I mean, you described that you've already underwritten the assets that you're interested in the GSA inventory. So the pace of acquisition, or the fulsomeness actionability of your pipeline kind of depends on the sellers being willing to sell. Do you see anything sort of globally that makes people more willing to sell in 2021 or 2022 than you had seen in the previous six years?
William C. Trimble -- Chief Executive Officer President And Director
Good morning Merrill. That's a great question, and I think absolutely is the answer. I think you've got a number of factors. I think, first, as you know, most of our buildings are owned by individuals. And I think it's no secret out there that we're going to see some sort of change in the capital gains rate. There might be some 1031 exchange change. There might be a lot of things happening within the tax code that will make a lot of these owners make that decision sooner rather than later. So I think that's an important factor.
Obviously, we are the only group out there that really can also offer units for tax efficiency to these owners, so there's a big advantage over anybody else in our space. I think that another thing that's happening is a lot of these newer facilities were built sort of 2006, 2007. They're rolling. They've just been renewed. And a lot of these owners are in their 60s and 70s, and I think they're going to be taking advantage from estate planning, or whatever it might be, or maybe to take advantage of the world restarting to need that equity to put out some fires in their hotels, Sure. And that not literally, or to come up with some new opportunities.
So I think everything out there is putting a tailwind to us in this market, and Meghan will go into it. But I think our attractive cost of capital allows us to make accretive acquisitions. Everybody knows who we are, and I think we execute very quickly. I think our relationships to the brokers are very strong. And so I am very gratified to see what we see out there going forward for this year, and I'm very excited to exceed that $200 million as soon as possible.
Merrill Ross -- Compass Point -- Analyst
Thank you.
Operator
[Operator Instructions] Our next question is from Frank Lee with BMO. Please proceed with your question.
Frank Lee -- BMO -- Analyst
Hi. Goodmorning everyone. If we annualized the $0.33 you reported in the first quarter, and considering that you could exceed your $200 million acquisition target, you talk about the pace of activity so far. That could get you to the top end of the guidance range, and sure, even above it. Just wondering if there's anything else we should consider that could be a drag on earnings this year aside from maybe some more ATM issuances, or what prevented you from raising guidance this quarter? Thanks.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Hi, Good morning Frank. Obviously, very proud of the strong quarter we put out. I think as we look at the remainder of the year, we continue to work on the pipeline. And we've never thawed from COVID-19, a pandemic before. And so it's just the approach that I took in terms of approaching our Board and getting approvals for the guidance that we project. It's our preference at this time to stay with the current range. We look forward to the opportunity to exceed that and hopefully look to higher levels as the year progresses.
Frank Lee -- BMO -- Analyst
Okay. Great. And then just want to touch on the leases that expired in 2020. There were three of them from last quarter. It looks like two or three were renewed on a shorter-term basis. Just curious what happened with the last lease and your expectations to renew the other two on a longer-term basis?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yes. So last quarter, those three, one was DEA Vista, one was DEA Birmingham. You'll note that the GSA, if you're sort of nearing the end of a renewal process, they can oftentimes get into what's called a holdover position, where they'll just stay in a month-to-month situation while they're waiting to get paperwork signed or through their queues. And so both of those are, we believe, in that stage. We don't want to pre-announce any renewals before they happen, but that's the status of those 2. And the third was a very small deli in our Buffalo asset, 1,100 square feet.
William C. Trimble -- Chief Executive Officer President And Director
Great sandwiches.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yes. Unfortunately, we'll be able to get one in the future.
Frank Lee -- BMO -- Analyst
Okay. And then just one last one for me on your Atlanta FDA development project. It looks like the completion date got pushed back by quarter and costs were slightly up. Yes, it may be just a minor detail, but is there any additional color on what drove this?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
They're in the design phase. They're working out the final set of requirements and drawings. And so it pushed a little. Doesn't change the future trajectory.
William C. Trimble -- Chief Executive Officer President And Director
We're always happy to let the government figure out how they can spend more money with us to build a better building, so we always were patient.
Frank Lee -- BMO -- Analyst
Okay. And then still no additional clarity on timing on the lump sum, right?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
That's correct. It's still our strong desire. And we do believe we'll be successful, as we were in the past, in FDA Lenexa on receiving progress payments from the government, but no finality there yet.
Frank Lee -- BMO -- Analyst
Okay. Great. Thank you.
Operator
And we have reached the end of the question-and-answer session, and I will now turn the call over to Darrell Crate for closing remarks.
Darrell W. Crate -- Chairman of the Board of Directors
Great. Thank you, everyone, for joining the Easterly Government Properties First Quarter 2021 Conference Call. We appreciate your time this morning, and we look forward to keeping you posted on our developments as we strive to build and enhance our portfolio of pristine assets backed by the full faith and credit of the U.S. government.
Operator
[Operator Closing Remarks]
Duration: 29 minutes
Call participants:
Lindsay Winterhalter -- Vice President, Investor Relation And Operations
Darrell W. Crate -- Chairman of the Board of Directors
William C. Trimble -- Chief Executive Officer President And Director
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Michael Carroll -- RBC Capital Markets -- Analyst
Merrill Ross -- Compass Point -- Analyst
Frank Lee -- BMO -- Analyst
More DEA analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool recommends Easterly Government 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.
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Easterly Government Properties Inc (NYSE: DEA) Q1 2021 Earnings Call May 4, 2021, 10:00 a.m. The DEA laboratory in Sterling, Virginia renewed for another 15-year term, as well as the DEA Bakersfield facility for another 17-year term. So as Bill mentioned, there were four renewals in the quarter, the buildings we referred to as Treasury Parkersburg, DEA Bakersfield, ICE Pittsburgh and DEA Sterling.
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Operator [Operator Closing Remarks] Duration: 29 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relation And Operations Darrell W. Crate -- Chairman of the Board of Directors William C. Trimble -- Chief Executive Officer President And Director Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer Michael Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Compass Point -- Analyst Frank Lee -- BMO -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q1 2021 Earnings Call May 4, 2021, 10:00 a.m. The DEA laboratory in Sterling, Virginia renewed for another 15-year term, as well as the DEA Bakersfield facility for another 17-year term.
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Operator [Operator Closing Remarks] Duration: 29 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relation And Operations Darrell W. Crate -- Chairman of the Board of Directors William C. Trimble -- Chief Executive Officer President And Director Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer Michael Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Compass Point -- Analyst Frank Lee -- BMO -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q1 2021 Earnings Call May 4, 2021, 10:00 a.m. The DEA laboratory in Sterling, Virginia renewed for another 15-year term, as well as the DEA Bakersfield facility for another 17-year term.
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Operator [Operator Closing Remarks] Duration: 29 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relation And Operations Darrell W. Crate -- Chairman of the Board of Directors William C. Trimble -- Chief Executive Officer President And Director Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer Michael Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Compass Point -- Analyst Frank Lee -- BMO -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q1 2021 Earnings Call May 4, 2021, 10:00 a.m. The DEA laboratory in Sterling, Virginia renewed for another 15-year term, as well as the DEA Bakersfield facility for another 17-year term.
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2021-03-05 00:00:00 UTC
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Easterly Government Properties (DEA) Passes Through 5% Yield Mark
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-passes-through-5-yield-mark-2021-03-05
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $20.79 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.
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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.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $20.79 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $20.79 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $20.79 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $20.79 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.
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3e92e1f4-25dc-4238-bf40-fc132979cfa8
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723409.0
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2021-03-03 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Ex-Dividend Date Scheduled for March 04, 2021
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc.-dea-ex-dividend-date-scheduled-for-march-04-2021-2021
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Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on March 04, 2021. A cash dividend payment of $0.26 per share is scheduled to be paid on March 17, 2021. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 14th quarter that DEA has paid the same dividend.
The previous trading day's last sale of DEA was $21.53, representing a -27.5% decrease from the 52 week high of $29.70 and a 13.32% increase over the 52 week low of $19.
DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) (AMT) and Prologis, Inc. (PLD). DEA's current earnings per share, an indicator of a company's profitability, is $.15. Zacks Investment Research reports DEA's forecasted earnings growth in 2021 as 3.17%, compared to an industry average of 3.6%.
For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) (AMT) and Prologis, Inc. (PLD). Zacks Investment Research reports DEA's forecasted earnings growth in 2021 as 3.17%, compared to an industry average of 3.6%.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on March 04, 2021.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 14th quarter that DEA has paid the same dividend. For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DEA was $21.53, representing a -27.5% decrease from the 52 week high of $29.70 and a 13.32% increase over the 52 week low of $19. Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on March 04, 2021.
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2021-03-02 00:00:00 UTC
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Ex-Dividend Reminder: Easterly Government Properties, Blackrock and Open Text
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-easterly-government-properties-blackrock-and-open-text-2021-03-02
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Looking at the universe of stocks we cover at Dividend Channel, on 3/4/21, Easterly Government Properties Inc (Symbol: DEA), Blackrock Inc (Symbol: BLK), and Open Text Corp (Symbol: OTEX) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc will pay its quarterly dividend of $0.26 on 3/17/21, Blackrock Inc will pay its quarterly dividend of $4.13 on 3/23/21, and Open Text Corp will pay its quarterly dividend of $0.2008 on 3/26/21. As a percentage of DEA's recent stock price of $21.60, this dividend works out to approximately 1.20%, so look for shares of Easterly Government Properties Inc to trade 1.20% lower — all else being equal — when DEA shares open for trading on 3/4/21. Similarly, investors should look for BLK to open 0.57% lower in price and for OTEX to open 0.44% lower, all else being equal.
Below are dividend history charts for DEA, BLK, and OTEX, showing historical dividends prior to the most recent ones declared.
Easterly Government Properties Inc (Symbol: DEA):
Blackrock Inc (Symbol: BLK):
Open Text Corp (Symbol: OTEX):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.81% for Easterly Government Properties Inc, 2.30% for Blackrock Inc, and 1.76% for Open Text Corp.
In Tuesday trading, Easterly Government Properties Inc shares are currently off about 0.4%, Blackrock Inc shares are down about 0.1%, and Open Text Corp shares are off about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of DEA's recent stock price of $21.60, this dividend works out to approximately 1.20%, so look for shares of Easterly Government Properties Inc to trade 1.20% lower — all else being equal — when DEA shares open for trading on 3/4/21. Looking at the universe of stocks we cover at Dividend Channel, on 3/4/21, Easterly Government Properties Inc (Symbol: DEA), Blackrock Inc (Symbol: BLK), and Open Text Corp (Symbol: OTEX) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for DEA, BLK, and OTEX, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/4/21, Easterly Government Properties Inc (Symbol: DEA), Blackrock Inc (Symbol: BLK), and Open Text Corp (Symbol: OTEX) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc (Symbol: DEA): Blackrock Inc (Symbol: BLK): Open Text Corp (Symbol: OTEX): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DEA's recent stock price of $21.60, this dividend works out to approximately 1.20%, so look for shares of Easterly Government Properties Inc to trade 1.20% lower — all else being equal — when DEA shares open for trading on 3/4/21.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/4/21, Easterly Government Properties Inc (Symbol: DEA), Blackrock Inc (Symbol: BLK), and Open Text Corp (Symbol: OTEX) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc (Symbol: DEA): Blackrock Inc (Symbol: BLK): Open Text Corp (Symbol: OTEX): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DEA's recent stock price of $21.60, this dividend works out to approximately 1.20%, so look for shares of Easterly Government Properties Inc to trade 1.20% lower — all else being equal — when DEA shares open for trading on 3/4/21.
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As a percentage of DEA's recent stock price of $21.60, this dividend works out to approximately 1.20%, so look for shares of Easterly Government Properties Inc to trade 1.20% lower — all else being equal — when DEA shares open for trading on 3/4/21. Looking at the universe of stocks we cover at Dividend Channel, on 3/4/21, Easterly Government Properties Inc (Symbol: DEA), Blackrock Inc (Symbol: BLK), and Open Text Corp (Symbol: OTEX) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for DEA, BLK, and OTEX, showing historical dividends prior to the most recent ones declared.
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2021-02-27 00:00:00 UTC
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Easterly Government Properties, Inc. Just Missed EPS By 25%: Here's What Analysts Think Will Happen Next
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc.-just-missed-eps-by-25%3A-heres-what-analysts-think-will
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The annual results for Easterly Government Properties, Inc. (NYSE:DEA) were released last week, making it a good time to revisit its performance. Statutory earnings per share fell badly short of expectations, coming in at US$0.15, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$245m. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
NYSE:DEA Earnings and Revenue Growth February 27th 2021
Following the latest results, Easterly Government Properties' five analysts are now forecasting revenues of US$268.0m in 2021. This would be a meaningful 9.4% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 81% to US$0.27. Before this earnings report, the analysts had been forecasting revenues of US$266.8m and earnings per share (EPS) of US$0.27 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$26.21, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Easterly Government Properties at US$31.50 per share, while the most bearish prices it at US$24.00. This is a very narrow spread of estimates, implying either that Easterly Government Properties is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Easterly Government Properties' revenue growth is expected to slow, with forecast 9.4% increase next year well below the historical 23%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% next year. So it's pretty clear that, while Easterly Government Properties' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$26.21, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Easterly Government Properties. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Easterly Government Properties going out to 2025, and you can see them free on our platform here..
It is also worth noting that we have found 4 warning signs for Easterly Government Properties (1 can't be ignored!) that you need to take into consideration.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The annual results for Easterly Government Properties, Inc. (NYSE:DEA) were released last week, making it a good time to revisit its performance. NYSE:DEA Earnings and Revenue Growth February 27th 2021 Following the latest results, Easterly Government Properties' five analysts are now forecasting revenues of US$268.0m in 2021. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of.
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NYSE:DEA Earnings and Revenue Growth February 27th 2021 Following the latest results, Easterly Government Properties' five analysts are now forecasting revenues of US$268.0m in 2021. The annual results for Easterly Government Properties, Inc. (NYSE:DEA) were released last week, making it a good time to revisit its performance. We would highlight that Easterly Government Properties' revenue growth is expected to slow, with forecast 9.4% increase next year well below the historical 23%p.a.
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NYSE:DEA Earnings and Revenue Growth February 27th 2021 Following the latest results, Easterly Government Properties' five analysts are now forecasting revenues of US$268.0m in 2021. The annual results for Easterly Government Properties, Inc. (NYSE:DEA) were released last week, making it a good time to revisit its performance. Statutory earnings per share fell badly short of expectations, coming in at US$0.15, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$245m.
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NYSE:DEA Earnings and Revenue Growth February 27th 2021 Following the latest results, Easterly Government Properties' five analysts are now forecasting revenues of US$268.0m in 2021. The annual results for Easterly Government Properties, Inc. (NYSE:DEA) were released last week, making it a good time to revisit its performance. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of.
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2021-02-24 00:00:00 UTC
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Easterly Government Properties Inc (DEA) Q4 2020 Earnings Call Transcript
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-q4-2020-earnings-call-transcript-2021-02-24
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Image source: The Motley Fool.
Easterly Government Properties Inc (NYSE: DEA)
Q4 2020 Earnings Call
Feb 24, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the Easterly Government Properties Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] It is now my pleasure to introduce Lindsay Winterhalter, Vice President, Investor Relations. Thank you. You may begin.
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Lindsay S. Winterhalter -- Vice President, Investor Relations & Operations
Good morning. Before the call begins, please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Act reform of 1995 and is making the statement for the purpose of complying with those safe harbor provision.
Although the company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, it can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control including, without limitation, those contained in Item 1A, risk factors of its annual report on Form 10-K for the year ended December 31, 2020 to be filed with the SEC on February 24, 2021, and in its other SEC filings and risks and uncertainties related to the adverse impact of COVID-19 on the U.S. regional and global economies and the potential adverse impact on the financial condition and results of operation of the company. The company assumes no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations, funds from operations as adjusted and cash available for distribution. You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package on the Investor Relations page of the company's website at ir.easterlyreit.com.
I would now like to turn the conference call over to Darrell Crate, Chairman of Easterly Government Properties.
Darrell W. Crate -- Chairman of the Board of Directors
Thank you, Lindsay. Good morning, everyone, and thank you for joining us for this fourth quarter conference call. Today, in addition to Lindsay, I'm also joined by Bill Trimble, the company's CEO; and Meghan Baivier, the company's CFO and COO.
We're pleased with our results for 2020. We exceeded our acquisition targets, furthered our development efforts, successfully negotiated our anticipated renewals all in the face of COVID-19 and its myriad of challenges. Our portfolio has 79 properties, up approximately 13% and 7.3 million square feet, up approximately 12% as compared to last year. The team has also done an impressive job in building our acquisition and development pipelines for 2021, which will enable us to deliver the consistent stable growth that our investors have anticipate from our unique portfolio of mission critical facilities with leases backed by the full faith and credit of the United States Government.
As we look forward, we anticipate a long-term return for our investors of 7% as measured by growth in FFO and dividends paid. We continue to target 2% to 3% annual FFO growth per share coupled with a roughly 4% to 5% dividend yield. As you know, Easterly is somewhat uniquely positioned relative to other REITs to have insights into the long-term steady growth potential of our portfolio. We intend for investors to appreciate this consistency and to continue to reward us with an attractive cost of capital.
In addition to enhancing our portfolio and forward opportunities in 2020, we continue to elevate our profile as a leader in important ESG metrics. As you may recall, we founded our business in early private equity years with a portfolio of buildings, many with platinum, gold and silver LEED certification. With the new Biden administration, we will continue to work with the government to enhance the energy efficiency of our portfolio. This is good for the environment and good for shareholders. It enhances our sustainability metrics, while also encouraging investment in our facilities.
As we also continue to focus on enhancing diversity on the Board and at all levels in the organization in a way that positions our business to be facing our clients the government and investors that is constructive progressive and consistent with our times. Lastly, I want to thank our management team and our Board for their dedication and tireless effort this year to enable us to deliver consistent results for our shareholders. 2020 was a unique year and I'm proud of the way we weather the challenge and I'm particularly pleased with how we are positioned as the economy and the new administration move forward.
With that, I'll turn the call over to Bill to give you insights into the 2020 results.
William C. Trimble -- Chief Executive Officer, President and Director
Thanks, Darrell, and good morning. Thank you for joining us for our fourth quarterearnings call I hope everyone on this call is doing well as we enter year two of this pandemic in the United States. Not hindered by the impact of COVID-19, the acquisitions team was able to exceed guidance and close out another highly successful year with four great additions to the company's growing portfolio in the fourth quarter of 2020. These acquisitions were the VA's Consolidated Mail Outpatient Pharmacy located in Charleston, South Carolina, one of seven CMOPs in the country. The Health Resources and Services Administration's only facility devoted to the diagnosis, treatment and research of Hansen's Disease, also known as leprosy located in Baton Rouge, Louisiana and the Department of the Interior's regional facility located in Billings, Montana, and finally, the U.S. District Court, the western district of Tennessee, one of 94 U.S. District Courts located throughout the United States. In total, this makes nine accretive mission critical acquisitions totaling just over $250 million at a weighted average acquisition cap rate of 6.25% for the year. We surpassed our acquisition guidance, while still maintaining discipline toward our bullseye strategy.
When reflecting on our 2020 additions, several themes hold true. Each property is either build-to-suit or renovated-to-suit for the underlying tenant agency's highly specific requirements. The location of each facility is strategically located in its geographic region to help fulfill the scope of the agency's broader mission and with a weighted average lease expiration year of 2032 all of these 2020 acquisitions have long-term stability of cash flows with attractive opportunities for strong lease renewal spreads well into the future. As Easterly continues on its growth trajectory, one thing becomes abundantly clear about the portfolio it is only getting stronger. With 87% of the portfolio considered bullseye and each property becoming a smaller relative percentage of total NOI, we continued to diversify away risks that might lie with any single asset.
We have a portfolio that is stronger today than pre-pandemic, which speaks to the underlying inherent value of these mission critical government leased assets. The strength of this portfolio with its strong ability to drive organic growth coupled with an incredibly strong pipeline of actionable bullseye opportunities sets the stage for sustainable future path cash flow growth. Our tenancy and the embedded growth opportunities within our portfolio differentiate Easterly from any other office REIT or even net lease REITs. Rather than attempt to pitch whole DEA with lease -- net lease or office, we are also -- we're just who we are, unique in our tenants credit worthiness, unique in our transparency of future cash flows, a focused provider of infrastructure to enduring missions of the United States.
Turning to development, 2020 marks the third consecutive year Easterly has delivered a brand new state-of-the-art 100% lease facility for the beneficial use of the U.S. Government. Most recently, Easterly has reached completion and commenced its new 20-year lease at the FDA laboratory in Lenexa, Kansas. The FDA Lenexa laboratory is now the newest regional laboratory for this highly important agency within the U.S. Government. We continue to remain on track to deliver the 162,000 square foot FDA laboratory in Atlanta, Georgia in the first half of 2023. Our team led by Mike Ibe and Mark Bauer are busy looking for other opportunities that fit our non-speculative development pipeline that provides outsized accretion in addition to our acquisition opportunities.
Turning to leasing updates. In the fourth quarter of 2020, we renewed the DEA field office located in a secure federal compound next to our DEA lab and the FBI in Dallas, Texas with a new 20-year lease that does not expire until 2041. The asset management team was able to achieve attractive releasing spreads that reflective of a typical bullseye renewal exercise. Later in the call Meghan will go into more specifics on these lease renewals to date as well as the company's expectations with respect to upcoming lease rules.
As we close our first year of this horrible pandemic, I hope you take away that Easterly Government Properties continues to execute. We execute on our focused acquisition strategy, we execute on our non-speculative development and we execute on accretive renewals. We look ahead the worst most probably behind us and are gratified to see a robust pipeline, a team of asset managers who are second to none in keeping our buildings up to mission and bringing value and the opportunity for sustainable growth regardless of the opaque outlook that confronts so many other real estate sectors.
Thank you again for your time this morning. And with that, I will turn the call over to Meghan to discuss the quarterly and year-end financial results.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Thank you, Bill. Good morning, everyone. It gives me great pleasure to post another strong quarter and close at a highly successful year at Easterly. As with prior quarters, COVID-19 had no material negative financial impact on the organization as Easterly received 100% of rental income due from our tenants in the fourth quarter. As of December 31st, we owned 79 operating properties comprising approximately 7.3 million square feet of commercial real estate with one additional development project in design totaling approximately 162,000 square feet.
In 2020, we acquired nine properties and sold one of roughly 33,000 square feet -- square foot facility in Otay, California. While immaterial to the greater portfolio, we are pleased with the value achieved on sale. We chose to exit this border asset given the government's changing needs in this region and our focus on keeping our portfolio pristine. Through the acquisition of newer facilities and successful long-term renewals at existing properties, the weighted average age of our portfolio remains young at 13.3 years and the weighted average remaining lease term has never been higher in the history of our company at 8.2 years. Maintaining a young portfolio age and a long weighted average remaining lease term provides us with future cash flow visibility and the opportunity for healthy dividend growth, while also retaining capital to reinvest into our highly accretive acquisition and development projects.
Turning to our quarterly results for the fourth quarter. Net income per share on a fully diluted basis was $0.03, FFO per share on a fully diluted basis was $0.32, FFO as adjusted per share on a fully diluted basis was $0.30, and our cash available for distribution was $21.1 million. For the year ended December 30, 2020, net income per share on a fully diluted basis was $0.15, FFO per share on a fully diluted basis was $1.26, FFO as adjusted per share on a fully diluted basis was $1.20, and our cash available for distribution was $89.4 million. At $1.26 per share on a fully diluted basis Easterly delivered at the upper end of its increased 2020 FFO per share range and the result represents an impressive 5% growth rate year-over-year. This growth coupled with a roughly 4.5% dividend yield, we believe differentiate Easterly for the year 2020 and is indicative of how Easterly is exiting the U.S. pandemic stronger than it entered.
Turning to the balance sheet. At quarter end, the company had total indebtedness of approximately $983.4 million with $371 million available on our line of credit for future acquisitions and development-related expenses. As of December 31st, Easterly's net debt to total enterprise value was 31.8% and its adjusted net debt to annualized quarterly pro forma EBITDA ratio was at the bottom end of our stated range of 6 times. With this low leverage level, numerous sources of available debt capital, access to equity sold on a forward basis and an attractive cost of equity, we are well poised to lean into future growth opportunities.
In the fourth quarter of 2020, the company issued approximately 849,000 shares of its common stock through the company's ATM Program, raising net proceeds to the company of approximately $18.6 million. For the full year 2020, Easterly issued approximately 7 million shares of its common stock through the company's ATM Programs at a net weighted average price of $22.93 per share, raising net proceeds to the company of approximately $160.4 million. Raising equity at such an attractive cost and on just-in-time basis contributed to our ability to drive meaningful earnings growth over the year.
Today, the company has approximately 4.1 million shares which are subject to unsettled forward sales transactions under the company's ATM Program. Assuming these shares are physically settled in full at a net weighted average initial forward sales price of $25.66 per share, the company expects to receive net proceeds of approximately $105.4 million.
Turning to our earnings guidance. The company is maintaining its previously issued 2021 FFO per share on a fully diluted basis guidance in a range of a $1.28 to $1.30. The midpoint of this guidance is predicated upon completing $200 million in acquisitions and $25 million in gross development-related investments in 2021. Easterly remains on track to deliver 2% to 3% FFO growth per share year-over-year, a percentage we are proud to provide to our shareholders through underlying U.S. Government cash flows.
In closing and before I hand the call back to the operator for questions, I would like to spend some time on our releasing successes. As previously mentioned, due to the unique nature of our leases, final renewal rents cannot be ascertained until the exact amount of TI dollars required by the government at renewal is known and the TI work is complete. As such, there can be a lag in providing releasing data relative to the point at which we have signed a renewal lease. As of December 31, 2020, we had executed three renewals for which the renewal TI work was complete and accepted by the government. These include the DEA San Diego warehouse, our courthouse and El Centro and CBP Chula Vista, which I'd know we sold in May of 2019.
The average rent spread achieved on these three renewals was 19% including approximately $14 per square foot of TI utilized by the government. The average total renewal term for these three renewal leases was 13 years. I can also share that we currently expect our single-tenant bullseye properties that have renewed but for which the new lease has not yet commenced or for which it has commenced but the TI has not yet been accepted by the government to realize an average renewal rent spread of 17% to 20%, including an estimated $35 to $40 per square foot of TI to be utilized by the government. This group of assets totaled 400,000 rentable square feet and includes DEA North Highlands, DEA Riverside, FBI Richmond, FBI Albany, SSA Dallas, SSA San Diego, the courthouse in Charleston and our DEA Dallas office. These eight properties each have renewed for total lease terms of 15 to 20 years with an average of 16.9 years.
In addition to these bullseye renewal, since IPO, we have executed renewal options at VA Baton Rouge, SSA Charleston and USCIS Lincoln. We look forward to working with the GSA upon the expiration of these assets between the years 2024 and 2025. Finally, with over 900,000 square feet in 15 leases expiring through the end of 2021, we are pleased to report we are making meaningful progress with the GSA and are in active discussions regarding all properties at this time. We feel good about the long-term mission and tenancy of these upcoming expirations. As always, we thank you for your commitment to our thesis and appreciate your partnership as we continue to deliver for you. Please stay safe everyone.
And with that, I will turn the call back to the operator.
Questions and Answers:
Operator
Thank You. [Operator Instructions] Our first question is come from the line of John Kim with BMO. Please proceed with your questions.
John Kim -- BMO Capital Markets -- Analyst
Thanks, good morning. It looks like the number of leases and the rent expired in 2023 has increased from the last quarter and I'm wondering if this was due to some 2020 expirations that we're just extending into that year.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah. The primary driver of that, John, is our GSA lease displaying that lease was extended due 2023.
John Kim -- BMO Capital Markets -- Analyst
I think there were four leases in total, so I mean whether other extensions or was that part of an acquisition?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
That was in part, sorry, that's the largest driver of it. When you look at, that's OK, when you look at -- let me come back and I'll get you the itemized list of the other 2023, but it's the leases at GSA Chicago, so the SSA and the USBA.
John Kim -- BMO Capital Markets -- Analyst
Bill, in your prepared remarks you characterized the pipeline is incredibly strong as far as your acquisition pipeline. Can you compare the pipeline today versus perhaps a quarter ago? And since you acquired some recent assets, I think in the low 6% cap rate range, has that expanded your opportunities as far as acquisitions?
William C. Trimble -- Chief Executive Officer, President and Director
Yeah, sure. Good morning. The reason I said it is that we are seeing a number of opportunities, particularly in the VA space, that are coming online and these are brand new 20-year opportunities. So there is an increase over what we saw last quarter. So that's why I've mentioned that. We're also looking at some smaller portfolios that are out there. And so I would say that with the pricing right now in these assets, I think the most important thing for our investors to know is that with our terrific cost of capital, thanks to Meghan and the shareholders of our company, we don't see a great deal of competition when we're looking for some of our pristine properties. And so I think we have a better opportunity than we've ever had to go out and do accretive acquisitions. And I think it's also pointed, if you look at our most recent acquisitions with long lease terms, important missions, beautiful new buildings. And so I think from a pipeline standpoint, we've never been more gratified at what we're seeing certainly for the next year.
John Kim -- BMO Capital Markets -- Analyst
And so why the conservatism on the guidance given it's implying a lower amount this year than last year?
William C. Trimble -- Chief Executive Officer, President and Director
Well, I think what you've always seen and I've tried to get this message across is that, there is a certain amount of off market opportunities we have every year and there are certain amount of marketed opportunities. And it really is not in our interest to go out and buy billion dollars of properties one year, pay an incredibly low cap rate because we'd be that elephant in the swimming pool driving the pricing out in front of us and and setting a bar for all time, and we don't think is a good value. So I think you've seen we've been able to hit our numbers, exceed them every year. I think we're the steady-eddy people out there. When we see an opportunity, we grab it. Something gets marketed it fits in our bullseye, we're going to buy. So I think that's the important part. I'd rather give you the good news and give you that steady long-term growth rate and go out and flash around in a couple of quarters just to pump earnings or pump the size of our buildings. So I think we're going to maintain our, I think, very prudent strategy going forward.
John Kim -- BMO Capital Markets -- Analyst
Okay. Appreciate the color. Thank you.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Hey, John, just to circle back, the fourth is our new acquisition is Courthouse in Jackson that is technically 2023. It has an extension option. So I think of it as 2028.
John Kim -- BMO Capital Markets -- Analyst
Got it.
Operator
Thank you. Our next question is come from the line of Emmanuel Korchman with Citi. Please proceed with your questions.
Emmanuel Korchman -- Citi -- Analyst
Hey, everyone. Good morning.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Good morning.
William C. Trimble -- Chief Executive Officer, President and Director
Good morning, Manny.
Emmanuel Korchman -- Citi -- Analyst
Meghan question for you, why -- but maybe this is just the timing, why did you choose to allow leverage to sort of ramp up rather than pulling on some of those equity forward to sort of better match from the large acquisitions?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah. I think Manny it keeps -- at that low level, we still keep the same flexibility to put, if you will, that insurance on the balance sheet. The -- it doesn't really change the way we approach 2021 than when we expect to be able to stay well within like at the bottom end of our range. So, it's just a small shift up at the end of the quarter, but doesn't really change the outlook for next year.
Emmanuel Korchman -- Citi -- Analyst
Great. And then, Bill, going back to the acquisition market. Maybe it would be helpful to the call is if you'd discuss sort of the values that things are transpiring out that you're not buying. So -- and then also remind us what your target range is just so we have a better handle on what's going on in the market overall?
William C. Trimble -- Chief Executive Officer, President and Director
Absolutely, and good morning. So this year as I -- if you look at sort of a tale two cities we sort of came out an average at 6.25 and we really have traded in a fairly narrow range compared to other real estate since we got into this business back in 2010. So not a lot of dramatic move. I will say though that when you look at what we are -- I think some of the more pristine buildings we bought this year were brand new in some cases with 15-year leases. We were seeing pricing closer to 6 or slightly below 6 caps. But when you look back at as one of our most beautiful facilities, which is Loma Linda, the VA facility out there that was I think about a 5.82 cap when we bought that property and we didn't have the stock price we had today and it was accretive then. So I think the bigger takeaway for us is that the market is not moving faster than the attractiveness of our cost of capital. And as long as they're accretive they fit in our bullseye and I mean reasonably accretive, not to some immeasurable amount. I think you're going to see us go out and have a very strong year.
Emmanuel Korchman -- Citi -- Analyst
Maybe in a similar vein, if you think about the development environment you guys have had a few successes. But I guess the question is, are there less developments happening and you're still going to your share of the pie or somebody else gaining market share on the development side when you end up being take out capital?
William C. Trimble -- Chief Executive Officer, President and Director
Well, I think that you've, I'd say that we are seeing opportunities to continue to see opportunities, certainly the FDA laboratory space, so we've won all three. We hope 10 buildings that will be announced over the next decade. But we were here, Manny, talking to you in the first couple of years the development opportunity. So it's unique and it really to depends on the federal government to come out with an RFP, which many times are literally decades under consideration. Having said that, I think we do believe that we're going to see pretty much the same course that we've seen over the last three years with hopefully one development a year.
And to your point, we have successfully taken over a couple of other developments that other people were maybe a little over their skis and and we did some wonderful accretive transactions there and delivered some amazing properties. So we're looking at every opportunity out there. I can tell you Mike, Mark and Ark are flying around the country and looking at things as we speak. So I'm confident we will continue to be able to deliver for development in the future.
Emmanuel Korchman -- Citi -- Analyst
Thanks, Bill.
Darrell W. Crate -- Chairman of the Board of Directors
Manny, it's Darrell. One observation, right, as we're seeing all these stimulus packages come forward and ultimately an infrastructure bill, we don't want to get ahead of ourselves, but we are moving into an environment over these next -- these sort of two, three, four years where government will be building, growing, getting larger and we certainly stand to be a beneficiary of that trend.
Operator
Thank you. Our next question is come from the line of Peter Abramowitz with Jefferies. Please proceed with your questions.
Peter Abramowitz -- Jefferies -- Analyst
Yes, thank you. Good morning. So you talked about the opportunity for VA assets in the acquisition market. One thing you had talked about in the past a little bit at the beginning of the pandemic was some multi-type asset owners that you compete with potentially facing liquidity issues, financial distress. How is that kind of segment of the acquisition market shaping up? Is that something that's still materializing or are you still?
William C. Trimble -- Chief Executive Officer, President and Director
I think it, yeah, and good morning, I think that absolutely is an opportunity for us. And we're spending certainly all the time, plenty of time meeting with our friends in the brokerage community, our contacts in our lists making sure that -- people that have government properties and other more challenged properties that we are very, very attractive way to exit in a very quick and hopefully pleasant there.
Peter Abramowitz -- Jefferies -- Analyst
Okay. And has that materialized in a way that was any more or less than what you anticipated that...
William C. Trimble -- Chief Executive Officer, President and Director
No, I think it was on track. I won't go into the particular building because I don't want to -- you won't talk about the person's solicit under that scenarios. But no, I think it's been pretty much in line.
Peter Abramowitz -- Jefferies -- Analyst
Got it, got it. And then just going under the hood of the '21 FFO guidance. I know you disclosed the investment activity. Anything from either like a G&A perspective or on the expense side to make a note of either that's notable or that's changed since you first gave guidance last quarter?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Hey, Peter. No, I would say, there has been no quarter-over-quarter change in expectation, thus no quarter-over-quarter change in guidance. I think you can -- obviously, we haven't been on planes visiting assets this year. So we're going to need to consider that in our G&A as you think about this year versus next year, but we have always found operating leverage on that line as we've continued to grow NOI over time and you can expect the same in FY'21.
Peter Abramowitz -- Jefferies -- Analyst
Got it. That's helpful. Okay. That's it for me. Thank you.
Operator
Thank you. Our next question comes from the line of Michael Lewis with Truist. Please proceed with your questions.
Michael Lewis -- Truist Securities -- Analyst
Great, thank you. I have two questions about the disposition. I realize it was small, maybe I'll just ask the first one first. Could you just talk a little about what happened there? It looked like that the tenant didn't renew and then you sold. I saw you booked a loss on the income statement. Could you just talk about what happened there and then maybe a little bit about the pricing or the return or the IRR on that investment if you could.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah. So maybe in the reverse order, Mike. We're really pleased with the value that we got in that asset. That was an asset that had contributed as part of the portfolio at IPO, so it was allocated a value at that time. We're happy to be moving on and focused on maintaining this pristine portfolio and growing the rest of the portfolio.
Michael Lewis -- Truist Securities -- Analyst
Okay. The reason I asked the question is because I think in your prepared remarks when you talked about it, you mentioned the change in priorities, change in government priorities is really one of the only significant risks that you guys seems to have, is there anything else related to that? In other words, the government changing your priority that may impact other properties in your portfolio or anything you see on that topic.
William C. Trimble -- Chief Executive Officer, President and Director
Well, I mean, I think if you look at government priorities, I'd see much bigger picture is our EPA, which we have some amazing assets there and they're going to be the recipient and I think of a heck of a lot of larger hats going board over the next bunch of years and we're very excited about that. And I will say as an owner of a car that has not had a nick on it since 2010, getting one tiny scratch behind the left tire has finally relieved me to be able to drive that car faster, I'm not worry about it, but said it for many years and it's always nice when one of your ten smallest assets and one of your oldest and we moved on we've got a good price and so off we go in keeping this pristine car chugging down the highway.
Michael Lewis -- Truist Securities -- Analyst
Okay. I understand it was small. I just wanted to make sure there wasn't anything related to that thing that could be bigger picture. And then just lastly from me. This is a bigger picture question. The interest rates are still obviously very low, but the treasury has started to tick up. I was just wondering, Darrell, described this model is 2% to 3% growth, you've got a 4.5% new. If we see interest rates continue to creep up, does that seems in kind of your playbook at all the way you look at the growth rate, the view of acquisitions versus development or do you think rates would impact asset values and required development yields to maybe you described that higher, but any thoughts on that if the interest rate environment changes does explains your playbook at all?
William C. Trimble -- Chief Executive Officer, President and Director
Yeah, I mean, there's a couple of things. If interest rates are changing materially over the interim period, cap rates are also going to go up. And so these continued to be sort of the most pristine assets that have again consistent cash flow over long periods of time. I think we also benefit from just on the margin, I mean, close to 30% of our leases will be renewing in the next four years compared to a portfolio that has many, many 20-year leases, and we'll see many more. So I think keeping up with inflation. The portfolio is positioned in a nice way for that to happen. And so we find ourselves in a place where also given our cost of capital and given what we're seeing in the market and as we sort of -- we're sort of broadcasting a level of the little elevated optimism as we look forward the opportunity for us to accrete and grow the portfolio faster is well within our reach. So we're emerging from COVID-19 with I think a very good relationship with the government, a favorable environment with the government, a capital environment that works for us and a competitive position relative to other buyers that is very strong.
Michael Lewis -- Truist Securities -- Analyst
Great. Thank you.
Operator
Thank you. Our next question is come from the line of Bill Crow with Raymond James. Please proceed with your questions.
William Crow -- Raymond James -- Analyst
Yeah. Thanks, good morning. Let me just maybe more directly asking the question that was just posed. You have no known or expected move outs over the next couple of years, is that the right way to think about it?
William C. Trimble -- Chief Executive Officer, President and Director
Yes, absolutely. Hey, and say it again. This one building that we sold it was allocated a value -- a tiny building allocated a value during a formation transaction and there is a bunch of tensions, push and pulls with regard to bringing parties together,taking a company public we may have over allocated a bit because today you look at that building and this was fair value. And so there is really even though there is some -- it's running through the books in a certain way, there is nothing about that that feels surprising, different or unanticipated from our perspective.
William Crow -- Raymond James -- Analyst
Got it, OK. And then I apologize if I missed this earlier, but from the acquisition front, any prospective portfolio deals out there that we should consider?
William C. Trimble -- Chief Executive Officer, President and Director
Well, I mean they're out there, but I'm certainly not going to announce it on this phone call. But there are plenty of opportunities out there and you can rest assure that we're mining through as many as we can and are confident that we're going to end up with some wonderful opportunities over the next few years. Obviously, most of what we report on is the ones in twos belt that we've been working on which provides the most pristine assets and and we're also very excited about that so.
Darrell W. Crate -- Chairman of the Board of Directors
Bill, as you know, I mean, from early days and I think this is a conversation you and I had even before we were public, we very much want to broadcast stability consistency. Our guidance for this year is just right. Bill was alluding to our acquisitions can be lumpy. So there is no way we want our deal team to feel pressure to buy a building that we wouldn't buy because we need to make a consensus estimate that's out there. With that all said, as you step back, I mean COVID is tough to get deals done. And so as -- and I'm really proud of the team and how that they were able to execute and exceed those expectations. As you know at the beginning of 2020, we throttled those expectations back a bit understanding the environment, but it's not hard to imagine that given the context of the Biden administration, given the context of some potential sort of pent-up demand as vaccines get out there and as the world opens up, it's going to be easier for us. And so we're not going to be pigs about it, but we're going to continue to build a pristine portfolio, we are going to do it in a nice way, but it's going to -- we're going to feel a little more winded our back than we have in the past.
William Crow -- Raymond James -- Analyst
Understood. We well keep the the cart firmly behind the force...
Darrell W. Crate -- Chairman of the Board of Directors
Thank you.
William Crow -- Raymond James -- Analyst
From a modeling perspective. Thank you.
Darrell W. Crate -- Chairman of the Board of Directors
Thank you.
Operator
Thank you. [Operator Instructions] Our next question is come from the line of Michael Carroll with RBC. Please proceed with your questions.
Michael Carroll -- RBC Capital Markets -- Analyst
Yeah, thanks. I want to talk a little bit on the acquisition activity. And I think, Bill, in your comments or maybe in one of the questions you kind of said that there is some single-asset acquisitions you're looking at in smaller portfolio deals. I mean, did I hear that correctly? And if so, can you talk a little bit about those smaller portfolio deals that just two to three asset type portfolio.
William C. Trimble -- Chief Executive Officer, President and Director
You're absolutely right what you heard of, but there are only 550 buildings out there. So I -- even though we are all friends on this phone call, I don't think I'm going to tell you what I am in negotiations to do and who we're going to do them with. But I have seen more opportunities to do those negotiations and I have seen it all.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay. No, I guess those portfolio transaction, is that a smaller portfolio or larger portfolio that you don't want to talk about? I guess, just kind of is it...
William C. Trimble -- Chief Executive Officer, President and Director
I'm not going to tell you what we're going to buy. The next week as I'm sure we can drive that rate to unbelievable levels, but let's just say that we're confident that we're going to do our number of this year and just like last year, we're going to try to exceed it and it's going to be with great buildings and it's going to be any mix of bullseye portfolio mission critical facilities.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay. And then on the development side, and I know that you've won a number of at the FDA labs. I mean what's the pace of those FDA labs? I mean there you expect another one that will come out RFP here shortly that you could potentially win or what's -- what are their thinking behind us?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
We're comfortable that FDA Atlanta will be the next FDA lab delivered and they will-- they can only handle for one or two of these at a time. And so there -- we expect there to be a pipeline subsequent to that, but well we're going on Atlanta first and foremost.
Darrell W. Crate -- Chairman of the Board of Directors
I mean, taxpayers, you got to feel great about the government and how that they are -- how they are ruling this out. They have a terrific team. We've enjoyed working with them on each of these projects. I mean, when you look ahead to 2030 -- 2035, the FDA will have revamped all these labs that will happen. So is that going to happen this year or next year, I don't know, but we are very well positioned for an opportunity that could exceed everybody's expectations for our development opportunity over the next 10 years.
William C. Trimble -- Chief Executive Officer, President and Director
And I think it's only natural. When you see the COVID was there, it was difficult for the government to get around to a lot of these facilities. Luckily, not likely, I mean Mike and his team has done a terrific job. We're already in place in Atlanta. So we were able to do the planning and we already have the building before this happened. So it didn't particularly slow us down. But having said that, now that hopefully these folks will be getting vaccines and travel will resume for the government, didn't slow our travel down to see these, but it did for them. But they're going to get more things in order and hopefully we'll see some more activity there.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay. And then I know the FDA has been pretty active with these new builds, is there any other agency that you're looking at that's also been active, I mean, the VA similarly active out there right now?
William C. Trimble -- Chief Executive Officer, President and Director
VA is very active and we think that FEMA is going to be active and there are a few facilities with the FBI that need to be replaced. And so from that standpoint, we've probably seen more agencies out there looking to do some building that we have for quite some time.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay, great. Thank you.
William C. Trimble -- Chief Executive Officer, President and Director
Thank you.
Operator
Thank you. There are no further questions at this time. I would like to turn the call back over to Darrell Crate for any closing comments.
Darrell W. Crate -- Chairman of the Board of Directors
Well, thank you very much for joining us for this fourth quarter conference call. We very much look forward to delivering strong results in 2021 and we appreciate your interest, focus and we really look forward to the year that is ahead.
Operator
[Operator Closing Remarks]
Duration: 43 minutes
Call participants:
Lindsay S. Winterhalter -- Vice President, Investor Relations & Operations
Darrell W. Crate -- Chairman of the Board of Directors
William C. Trimble -- Chief Executive Officer, President and Director
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
John Kim -- BMO Capital Markets -- Analyst
Emmanuel Korchman -- Citi -- Analyst
Peter Abramowitz -- Jefferies -- Analyst
Michael Lewis -- Truist Securities -- Analyst
William Crow -- Raymond James -- Analyst
Michael Carroll -- RBC Capital Markets -- Analyst
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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.
Motley Fool Transcribers 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.
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Easterly Government Properties Inc (NYSE: DEA) Q4 2020 Earnings Call Feb 24, 2021, 10:00 a.m. Rather than attempt to pitch whole DEA with lease -- net lease or office, we are also -- we're just who we are, unique in our tenants credit worthiness, unique in our transparency of future cash flows, a focused provider of infrastructure to enduring missions of the United States. In the fourth quarter of 2020, we renewed the DEA field office located in a secure federal compound next to our DEA lab and the FBI in Dallas, Texas with a new 20-year lease that does not expire until 2041.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Lindsay S. Winterhalter -- Vice President, Investor Relations & Operations Darrell W. Crate -- Chairman of the Board of Directors William C. Trimble -- Chief Executive Officer, President and Director Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer John Kim -- BMO Capital Markets -- Analyst Emmanuel Korchman -- Citi -- Analyst Peter Abramowitz -- Jefferies -- Analyst Michael Lewis -- Truist Securities -- Analyst William Crow -- Raymond James -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q4 2020 Earnings Call Feb 24, 2021, 10:00 a.m. Rather than attempt to pitch whole DEA with lease -- net lease or office, we are also -- we're just who we are, unique in our tenants credit worthiness, unique in our transparency of future cash flows, a focused provider of infrastructure to enduring missions of the United States.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Lindsay S. Winterhalter -- Vice President, Investor Relations & Operations Darrell W. Crate -- Chairman of the Board of Directors William C. Trimble -- Chief Executive Officer, President and Director Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer John Kim -- BMO Capital Markets -- Analyst Emmanuel Korchman -- Citi -- Analyst Peter Abramowitz -- Jefferies -- Analyst Michael Lewis -- Truist Securities -- Analyst William Crow -- Raymond James -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q4 2020 Earnings Call Feb 24, 2021, 10:00 a.m. Rather than attempt to pitch whole DEA with lease -- net lease or office, we are also -- we're just who we are, unique in our tenants credit worthiness, unique in our transparency of future cash flows, a focused provider of infrastructure to enduring missions of the United States.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Lindsay S. Winterhalter -- Vice President, Investor Relations & Operations Darrell W. Crate -- Chairman of the Board of Directors William C. Trimble -- Chief Executive Officer, President and Director Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer John Kim -- BMO Capital Markets -- Analyst Emmanuel Korchman -- Citi -- Analyst Peter Abramowitz -- Jefferies -- Analyst Michael Lewis -- Truist Securities -- Analyst William Crow -- Raymond James -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q4 2020 Earnings Call Feb 24, 2021, 10:00 a.m. Rather than attempt to pitch whole DEA with lease -- net lease or office, we are also -- we're just who we are, unique in our tenants credit worthiness, unique in our transparency of future cash flows, a focused provider of infrastructure to enduring missions of the United States.
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7bfe6efc-1889-4591-9b2c-e54a351d097b
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723413.0
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2021-01-26 00:00:00 UTC
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DEA Makes Bullish Cross Above Critical Moving Average
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DEA
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https://www.nasdaq.com/articles/dea-makes-bullish-cross-above-critical-moving-average-2021-01-26
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nan
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nan
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In trading on Tuesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.50, changing hands as high as $23.59 per share. Easterly Government Properties Inc shares are currently trading up about 1.3% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.50, changing hands as high as $23.59 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.50, changing hands as high as $23.59 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.50, changing hands as high as $23.59 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.50, changing hands as high as $23.59 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Easterly Government Properties Inc shares are currently trading up about 1.3% on the day.
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33e2710b-0e98-48d8-81e6-764272d44c95
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723414.0
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2021-01-13 00:00:00 UTC
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RWR's Underlying Holdings Imply 10% Gain Potential
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DEA
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https://www.nasdaq.com/articles/rwrs-underlying-holdings-imply-10-gain-potential-2021-01-13
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR— Dow Jones— REIT ETF (Symbol: RWR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $92.13 per unit.
With RWR trading at a recent price near $83.75 per unit, that means that analysts see 10.01% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RWR's underlying holdings with notable upside to their analyst target prices are Easterly Government Properties Inc (Symbol: DEA), Four Corners Property Trust Inc (Symbol: FCPT), and Rexford Industrial Realty Inc (Symbol: REXR). Although DEA has traded at a recent price of $22.15/share, the average analyst target is 15.58% higher at $25.60/share. Similarly, FCPT has 14.74% upside from the recent share price of $27.54 if the average analyst target price of $31.60/share is reached, and analysts on average are expecting REXR to reach a target price of $52.43/share, which is 12.94% above the recent price of $46.42. Below is a twelve month price history chart comparing the stock performance of DEA, FCPT, and REXR:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
SPDR— Dow Jones— REIT ETF RWR $83.75 $92.13 10.01%
Easterly Government Properties Inc DEA $22.15 $25.60 15.58%
Four Corners Property Trust Inc FCPT $27.54 $31.60 14.74%
Rexford Industrial Realty Inc REXR $46.42 $52.43 12.94%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although DEA has traded at a recent price of $22.15/share, the average analyst target is 15.58% higher at $25.60/share. SPDR— Dow Jones— REIT ETF RWR $83.75 $92.13 10.01% Easterly Government Properties Inc DEA $22.15 $25.60 15.58% Four Corners Property Trust Inc FCPT $27.54 $31.60 14.74% Rexford Industrial Realty Inc REXR $46.42 $52.43 12.94% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RWR's underlying holdings with notable upside to their analyst target prices are Easterly Government Properties Inc (Symbol: DEA), Four Corners Property Trust Inc (Symbol: FCPT), and Rexford Industrial Realty Inc (Symbol: REXR).
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Three of RWR's underlying holdings with notable upside to their analyst target prices are Easterly Government Properties Inc (Symbol: DEA), Four Corners Property Trust Inc (Symbol: FCPT), and Rexford Industrial Realty Inc (Symbol: REXR). SPDR— Dow Jones— REIT ETF RWR $83.75 $92.13 10.01% Easterly Government Properties Inc DEA $22.15 $25.60 15.58% Four Corners Property Trust Inc FCPT $27.54 $31.60 14.74% Rexford Industrial Realty Inc REXR $46.42 $52.43 12.94% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although DEA has traded at a recent price of $22.15/share, the average analyst target is 15.58% higher at $25.60/share.
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Three of RWR's underlying holdings with notable upside to their analyst target prices are Easterly Government Properties Inc (Symbol: DEA), Four Corners Property Trust Inc (Symbol: FCPT), and Rexford Industrial Realty Inc (Symbol: REXR). Although DEA has traded at a recent price of $22.15/share, the average analyst target is 15.58% higher at $25.60/share. Below is a twelve month price history chart comparing the stock performance of DEA, FCPT, and REXR: Below is a summary table of the current analyst target prices discussed above:
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SPDR— Dow Jones— REIT ETF RWR $83.75 $92.13 10.01% Easterly Government Properties Inc DEA $22.15 $25.60 15.58% Four Corners Property Trust Inc FCPT $27.54 $31.60 14.74% Rexford Industrial Realty Inc REXR $46.42 $52.43 12.94% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RWR's underlying holdings with notable upside to their analyst target prices are Easterly Government Properties Inc (Symbol: DEA), Four Corners Property Trust Inc (Symbol: FCPT), and Rexford Industrial Realty Inc (Symbol: REXR). Although DEA has traded at a recent price of $22.15/share, the average analyst target is 15.58% higher at $25.60/share.
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d278a84f-d089-471b-a34e-c73585806ebd
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723415.0
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2021-01-12 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-General Motors, Tesla, Gas stocks, Plug Power
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DEA
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-general-motors-tesla-gas-stocks-plug-power-2021-01-12
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nan
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nan
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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 inched higher on Tuesday ahead of the start of corporate America's reporting season that could signal a rebound in earnings, while General Motors' shares jumped on launching an electric delivery vehicle business. .N
At 12:00 ET, the Dow Jones Industrial Average .DJI was down 0.06% at 30,989.95. The S&P 500 .SPX was down 0.11% at 3,795.5 and the Nasdaq Composite .IXIC was up 0.12% at 13,052.595. The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 13.6% ** Occidental Peteroleum , up 12.5% ** Apache Corp , up 9.8% The top three S&P 500 .PL.INX percentage losers: ** PerkinElmer Inc , down 4.2% ** Boston Scientific , down 4% ** Realty Income Corp , down 3.9% The top three NYSE .PG.N percentage gainers: ** Gannett Co Inc , up 20.1% ** Amplify Energy Corp , up 17% ** Transocean Ltd , up 16.7% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 10.7% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 10.5% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 204.2% ** Qilian International Holding Group , up 187.2% ** ArcLight Clean Transition Corp , up 89.4% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 39.4% ** Deerfield Healthcare Technology Acquisitions , down 20.4% ** LM Funding America Inc , down 18.4% ** General Motors GM.N : up 5.7%
BUZZ-Jumps on launching electric delivery-vehicle business ** Tesla TSLA.O : up 6.1%
BUZZ-Registers local unit in India ahead of planned 2021 entry ** SYNNEX Corp SNX.N : up 2.8%
BUZZ-Rises on upbeat Q4, PT hikes ** Comstock Resources CRK.N : up 6.5% ** Cabot Oil & Gas Corp COG.N : up 1.1% ** CNX Resources Corp CNX.N : up 1.9% ** EQT Corp EQT.N : up 5.0%
BUZZ-Gas-focused stocks gain as natural gas futures hit 6-week high ** Plug Power PLUG.O : up 14.3%
BUZZ-Plug Power hits record high on hydrogen LCV deal with Renault ** Las Vegas Sands LVS.N : down 0.8%
BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 21.1%
BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 14.9%
BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 40.7%
BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 16.7%
BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 6.0%
BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 0.1%
BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.8%
BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** ODP Corp ODP.O : up 0.6%
BUZZ-J.P. Morgan upgrades after Staples' offer ** Deere& Co DE.N : up 2.2% ** Caterpillar Inc CAT.N : up 2.0% ** Illinois Tool Works Inc ITW.N : up 1.2% ** Oshkosh Corp OSK.N : up 3.3%
BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.3%
BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 3.3%
BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 1.1%
BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 11.2%
BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.9%
BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 3.0%
BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 28.4%
BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** ArcLight ACTC.O : up 78.3%
BUZZ-Soars on deal to take electric-bus maker public ** Albertsons ACI.N : up 1.0%
BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 1.5%
BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.0%
BUZZ-Falls as co expects lower Q4 sales ** Vir Biotechnology VIR.O : up 2.0%
BUZZ-Jumps on GSK collaboration to test second antibody for COVID-19 treatment ** Kratos Inc KTOS.O : up 5.0%
BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 20.8%
BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 6.1% BUZZ-Hits record high on 'green trip' option, Moderna tie-up ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 1.8% ** Apache Corp APA.O : up 9.8% ** Devon Energy DVN.N : up 8.3% ** Marathon Oil MRO.N : up 8.6% ** Occidental Petroleum OXY.N : up 12.5% ** Schlumberger SLB.N : up 5.1% ** Halliburton HAL.N : up 7.9%
BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 4.7% ** Host Hotels & Resorts Inc HST.O : up 1.0% ** Ryman Hospitality Properties Inc RHP.N : up 2.6% ** Xenia Hotels & Resorts Inc XHR.N : up 3.0% ** Easterly Government Properties Inc DEA.N : up 0.5%
BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 5.7%
BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment ** Qilian International Holding Group Ltd QLI.O : up 187.2%
BUZZ-China's Qilian soars in U.S. market debut ** PolarityTE Inc PTE.O : down 10.8%
BUZZ-Falls on discounted stock offering ** Shake Shack SHAK.N : up 6.7%
BUZZ-Shake Shack hits more than one-year high after prelim results impress ** Kuke Music Holding KUKE.N : up 15.0%
BUZZ-Rises in U.S. market debut ** LendingTree TREE.O : up 13.6%
BUZZ-LendingTree climbs after releasing Q4 outlook ** Surgalign Holdings SRGA.O : up 4.8%
BUZZ-Rises on commercial launch of bone formation device ** Capricor CAPR.O : up 12.8%
BUZZ-Jumps on partnership with Lonza for COVID-19 therapy ** CytoSorbents CTSO.O : up 4.5%
BUZZ-Up on Q4 revenue beat ** IAC/InterActiveCorp IAC.O : up 3.5%
BUZZ-Gains as Vimeo monthly sales rise ** Abercrombie ANF.N : up 1.1%
BUZZ-Gains on forecast for smaller decline in holiday sales ** Four Seasons Education FEDU.N : down 10.8%
BUZZ-Down on Q3 revenue fall as student enrollments drop ** Zynex Inc ZYXI.O : up 3.5%
BUZZ-Up on upbeat revenue forecast
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 1.47%
Consumer Discretionary
.SPLRCD
up 1.23%
Consumer Staples
.SPLRCS
down 0.49%
Energy
.SPNY
up 3.30%
Financial
.SPSY
up 1.26%
Health
.SPXHC
down 1.06%
Industrial
.SPLRCI
up 0.68%
Information Technology
.SPLRCT
down 0.63%
Materials
.SPLRCM
up 0.79%
Real Estate
.SPLRCR
down 1.03%
Utilities
.SPLRCU
down 1.39%
(Compiled by Lasya Priya M in Bengaluru)
((LasyaPriya.M@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.
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 13.6% ** Occidental Peteroleum , up 12.5% ** Apache Corp , up 9.8% The top three S&P 500 .PL.INX percentage losers: ** PerkinElmer Inc , down 4.2% ** Boston Scientific , down 4% ** Realty Income Corp , down 3.9% The top three NYSE .PG.N percentage gainers: ** Gannett Co Inc , up 20.1% ** Amplify Energy Corp , up 17% ** Transocean Ltd , up 16.7% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 10.7% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 10.5% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 204.2% ** Qilian International Holding Group , up 187.2% ** ArcLight Clean Transition Corp , up 89.4% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 39.4% ** Deerfield Healthcare Technology Acquisitions , down 20.4% ** LM Funding America Inc , down 18.4% ** General Motors GM.N : up 5.7% BUZZ-Jumps on launching electric delivery-vehicle business ** Tesla TSLA.O : up 6.1% BUZZ-Registers local unit in India ahead of planned 2021 entry ** SYNNEX Corp SNX.N : up 2.8% BUZZ-Rises on upbeat Q4, PT hikes ** Comstock Resources CRK.N : up 6.5% ** Cabot Oil & Gas Corp COG.N : up 1.1% ** CNX Resources Corp CNX.N : up 1.9% ** EQT Corp EQT.N : up 5.0% BUZZ-Gas-focused stocks gain as natural gas futures hit 6-week high ** Plug Power PLUG.O : up 14.3% BUZZ-Plug Power hits record high on hydrogen LCV deal with Renault ** Las Vegas Sands LVS.N : down 0.8% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 21.1% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 14.9% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 40.7% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 16.7% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 6.0% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 0.1% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.8% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** ODP Corp ODP.O : up 0.6% BUZZ-J.P. Morgan upgrades after Staples' offer ** Deere& Co DE.N : up 2.2% ** Caterpillar Inc CAT.N : up 2.0% ** Illinois Tool Works Inc ITW.N : up 1.2% ** Oshkosh Corp OSK.N : up 3.3% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.3% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 3.3% BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 1.1% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 11.2% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.9% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 3.0% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 28.4% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** ArcLight ACTC.O : up 78.3% BUZZ-Soars on deal to take electric-bus maker public ** Albertsons ACI.N : up 1.0% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 1.5% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.0% BUZZ-Falls as co expects lower Q4 sales ** Vir Biotechnology VIR.O : up 2.0% BUZZ-Jumps on GSK collaboration to test second antibody for COVID-19 treatment ** Kratos Inc KTOS.O : up 5.0% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 20.8% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 6.1% BUZZ-Hits record high on 'green trip' option, Moderna tie-up ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 1.8% ** Apache Corp APA.O : up 9.8% ** Devon Energy DVN.N : up 8.3% ** Marathon Oil MRO.N : up 8.6% ** Occidental Petroleum OXY.N : up 12.5% ** Schlumberger SLB.N : up 5.1% ** Halliburton HAL.N : up 7.9% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 4.7% ** Host Hotels & Resorts Inc HST.O : up 1.0% ** Ryman Hospitality Properties Inc RHP.N : up 2.6% ** Xenia Hotels & Resorts Inc XHR.N : up 3.0% ** Easterly Government Properties Inc DEA.N : up 0.5% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 5.7% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment ** Qilian International Holding Group Ltd QLI.O : up 187.2% BUZZ-China's Qilian soars in U.S. market debut ** PolarityTE Inc PTE.O : down 10.8% BUZZ-Falls on discounted stock offering ** Shake Shack SHAK.N : up 6.7% BUZZ-Shake Shack hits more than one-year high after prelim results impress ** Kuke Music Holding KUKE.N : up 15.0% BUZZ-Rises in U.S. market debut ** LendingTree TREE.O : up 13.6% BUZZ-LendingTree climbs after releasing Q4 outlook ** Surgalign Holdings SRGA.O : up 4.8% BUZZ-Rises on commercial launch of bone formation device ** Capricor CAPR.O : up 12.8% BUZZ-Jumps on partnership with Lonza for COVID-19 therapy ** CytoSorbents CTSO.O : up 4.5% BUZZ-Up on Q4 revenue beat ** IAC/InterActiveCorp IAC.O : up 3.5% BUZZ-Gains as Vimeo monthly sales rise ** Abercrombie ANF.N : up 1.1% BUZZ-Gains on forecast for smaller decline in holiday sales ** Four Seasons Education FEDU.N : down 10.8% BUZZ-Down on Q3 revenue fall as student enrollments drop ** Zynex Inc ZYXI.O : up 3.5% BUZZ-Up on upbeat 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 inched higher on Tuesday ahead of the start of corporate America's reporting season that could signal a rebound in earnings, while General Motors' shares jumped on launching an electric delivery vehicle business. down 1.39% (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@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.
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 13.6% ** Occidental Peteroleum , up 12.5% ** Apache Corp , up 9.8% The top three S&P 500 .PL.INX percentage losers: ** PerkinElmer Inc , down 4.2% ** Boston Scientific , down 4% ** Realty Income Corp , down 3.9% The top three NYSE .PG.N percentage gainers: ** Gannett Co Inc , up 20.1% ** Amplify Energy Corp , up 17% ** Transocean Ltd , up 16.7% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 10.7% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 10.5% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 204.2% ** Qilian International Holding Group , up 187.2% ** ArcLight Clean Transition Corp , up 89.4% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 39.4% ** Deerfield Healthcare Technology Acquisitions , down 20.4% ** LM Funding America Inc , down 18.4% ** General Motors GM.N : up 5.7% BUZZ-Jumps on launching electric delivery-vehicle business ** Tesla TSLA.O : up 6.1% BUZZ-Registers local unit in India ahead of planned 2021 entry ** SYNNEX Corp SNX.N : up 2.8% BUZZ-Rises on upbeat Q4, PT hikes ** Comstock Resources CRK.N : up 6.5% ** Cabot Oil & Gas Corp COG.N : up 1.1% ** CNX Resources Corp CNX.N : up 1.9% ** EQT Corp EQT.N : up 5.0% BUZZ-Gas-focused stocks gain as natural gas futures hit 6-week high ** Plug Power PLUG.O : up 14.3% BUZZ-Plug Power hits record high on hydrogen LCV deal with Renault ** Las Vegas Sands LVS.N : down 0.8% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 21.1% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 14.9% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 40.7% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 16.7% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 6.0% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 0.1% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.8% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** ODP Corp ODP.O : up 0.6% BUZZ-J.P. Morgan upgrades after Staples' offer ** Deere& Co DE.N : up 2.2% ** Caterpillar Inc CAT.N : up 2.0% ** Illinois Tool Works Inc ITW.N : up 1.2% ** Oshkosh Corp OSK.N : up 3.3% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.3% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 3.3% BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 1.1% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 11.2% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.9% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 3.0% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 28.4% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** ArcLight ACTC.O : up 78.3% BUZZ-Soars on deal to take electric-bus maker public ** Albertsons ACI.N : up 1.0% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 1.5% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.0% BUZZ-Falls as co expects lower Q4 sales ** Vir Biotechnology VIR.O : up 2.0% BUZZ-Jumps on GSK collaboration to test second antibody for COVID-19 treatment ** Kratos Inc KTOS.O : up 5.0% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 20.8% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 6.1% BUZZ-Hits record high on 'green trip' option, Moderna tie-up ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 1.8% ** Apache Corp APA.O : up 9.8% ** Devon Energy DVN.N : up 8.3% ** Marathon Oil MRO.N : up 8.6% ** Occidental Petroleum OXY.N : up 12.5% ** Schlumberger SLB.N : up 5.1% ** Halliburton HAL.N : up 7.9% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 4.7% ** Host Hotels & Resorts Inc HST.O : up 1.0% ** Ryman Hospitality Properties Inc RHP.N : up 2.6% ** Xenia Hotels & Resorts Inc XHR.N : up 3.0% ** Easterly Government Properties Inc DEA.N : up 0.5% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 5.7% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment ** Qilian International Holding Group Ltd QLI.O : up 187.2% BUZZ-China's Qilian soars in U.S. market debut ** PolarityTE Inc PTE.O : down 10.8% BUZZ-Falls on discounted stock offering ** Shake Shack SHAK.N : up 6.7% BUZZ-Shake Shack hits more than one-year high after prelim results impress ** Kuke Music Holding KUKE.N : up 15.0% BUZZ-Rises in U.S. market debut ** LendingTree TREE.O : up 13.6% BUZZ-LendingTree climbs after releasing Q4 outlook ** Surgalign Holdings SRGA.O : up 4.8% BUZZ-Rises on commercial launch of bone formation device ** Capricor CAPR.O : up 12.8% BUZZ-Jumps on partnership with Lonza for COVID-19 therapy ** CytoSorbents CTSO.O : up 4.5% BUZZ-Up on Q4 revenue beat ** IAC/InterActiveCorp IAC.O : up 3.5% BUZZ-Gains as Vimeo monthly sales rise ** Abercrombie ANF.N : up 1.1% BUZZ-Gains on forecast for smaller decline in holiday sales ** Four Seasons Education FEDU.N : down 10.8% BUZZ-Down on Q3 revenue fall as student enrollments drop ** Zynex Inc ZYXI.O : up 3.5% BUZZ-Up on upbeat 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 inched higher on Tuesday ahead of the start of corporate America's reporting season that could signal a rebound in earnings, while General Motors' shares jumped on launching an electric delivery vehicle business. up 1.23% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 13.6% ** Occidental Peteroleum , up 12.5% ** Apache Corp , up 9.8% The top three S&P 500 .PL.INX percentage losers: ** PerkinElmer Inc , down 4.2% ** Boston Scientific , down 4% ** Realty Income Corp , down 3.9% The top three NYSE .PG.N percentage gainers: ** Gannett Co Inc , up 20.1% ** Amplify Energy Corp , up 17% ** Transocean Ltd , up 16.7% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 10.7% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 10.5% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 204.2% ** Qilian International Holding Group , up 187.2% ** ArcLight Clean Transition Corp , up 89.4% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 39.4% ** Deerfield Healthcare Technology Acquisitions , down 20.4% ** LM Funding America Inc , down 18.4% ** General Motors GM.N : up 5.7% BUZZ-Jumps on launching electric delivery-vehicle business ** Tesla TSLA.O : up 6.1% BUZZ-Registers local unit in India ahead of planned 2021 entry ** SYNNEX Corp SNX.N : up 2.8% BUZZ-Rises on upbeat Q4, PT hikes ** Comstock Resources CRK.N : up 6.5% ** Cabot Oil & Gas Corp COG.N : up 1.1% ** CNX Resources Corp CNX.N : up 1.9% ** EQT Corp EQT.N : up 5.0% BUZZ-Gas-focused stocks gain as natural gas futures hit 6-week high ** Plug Power PLUG.O : up 14.3% BUZZ-Plug Power hits record high on hydrogen LCV deal with Renault ** Las Vegas Sands LVS.N : down 0.8% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 21.1% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 14.9% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 40.7% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 16.7% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 6.0% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 0.1% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.8% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** ODP Corp ODP.O : up 0.6% BUZZ-J.P. Morgan upgrades after Staples' offer ** Deere& Co DE.N : up 2.2% ** Caterpillar Inc CAT.N : up 2.0% ** Illinois Tool Works Inc ITW.N : up 1.2% ** Oshkosh Corp OSK.N : up 3.3% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.3% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 3.3% BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 1.1% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 11.2% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.9% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 3.0% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 28.4% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** ArcLight ACTC.O : up 78.3% BUZZ-Soars on deal to take electric-bus maker public ** Albertsons ACI.N : up 1.0% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 1.5% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.0% BUZZ-Falls as co expects lower Q4 sales ** Vir Biotechnology VIR.O : up 2.0% BUZZ-Jumps on GSK collaboration to test second antibody for COVID-19 treatment ** Kratos Inc KTOS.O : up 5.0% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 20.8% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 6.1% BUZZ-Hits record high on 'green trip' option, Moderna tie-up ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 1.8% ** Apache Corp APA.O : up 9.8% ** Devon Energy DVN.N : up 8.3% ** Marathon Oil MRO.N : up 8.6% ** Occidental Petroleum OXY.N : up 12.5% ** Schlumberger SLB.N : up 5.1% ** Halliburton HAL.N : up 7.9% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 4.7% ** Host Hotels & Resorts Inc HST.O : up 1.0% ** Ryman Hospitality Properties Inc RHP.N : up 2.6% ** Xenia Hotels & Resorts Inc XHR.N : up 3.0% ** Easterly Government Properties Inc DEA.N : up 0.5% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 5.7% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment ** Qilian International Holding Group Ltd QLI.O : up 187.2% BUZZ-China's Qilian soars in U.S. market debut ** PolarityTE Inc PTE.O : down 10.8% BUZZ-Falls on discounted stock offering ** Shake Shack SHAK.N : up 6.7% BUZZ-Shake Shack hits more than one-year high after prelim results impress ** Kuke Music Holding KUKE.N : up 15.0% BUZZ-Rises in U.S. market debut ** LendingTree TREE.O : up 13.6% BUZZ-LendingTree climbs after releasing Q4 outlook ** Surgalign Holdings SRGA.O : up 4.8% BUZZ-Rises on commercial launch of bone formation device ** Capricor CAPR.O : up 12.8% BUZZ-Jumps on partnership with Lonza for COVID-19 therapy ** CytoSorbents CTSO.O : up 4.5% BUZZ-Up on Q4 revenue beat ** IAC/InterActiveCorp IAC.O : up 3.5% BUZZ-Gains as Vimeo monthly sales rise ** Abercrombie ANF.N : up 1.1% BUZZ-Gains on forecast for smaller decline in holiday sales ** Four Seasons Education FEDU.N : down 10.8% BUZZ-Down on Q3 revenue fall as student enrollments drop ** Zynex Inc ZYXI.O : up 3.5% BUZZ-Up on upbeat revenue forecast The 11 major S&P 500 sectors: Communication Services .N At 12:00 ET, the Dow Jones Industrial Average .DJI was down 0.06% at 30,989.95. up 0.79% Real Estate
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 13.6% ** Occidental Peteroleum , up 12.5% ** Apache Corp , up 9.8% The top three S&P 500 .PL.INX percentage losers: ** PerkinElmer Inc , down 4.2% ** Boston Scientific , down 4% ** Realty Income Corp , down 3.9% The top three NYSE .PG.N percentage gainers: ** Gannett Co Inc , up 20.1% ** Amplify Energy Corp , up 17% ** Transocean Ltd , up 16.7% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 10.7% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 10.5% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 204.2% ** Qilian International Holding Group , up 187.2% ** ArcLight Clean Transition Corp , up 89.4% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 39.4% ** Deerfield Healthcare Technology Acquisitions , down 20.4% ** LM Funding America Inc , down 18.4% ** General Motors GM.N : up 5.7% BUZZ-Jumps on launching electric delivery-vehicle business ** Tesla TSLA.O : up 6.1% BUZZ-Registers local unit in India ahead of planned 2021 entry ** SYNNEX Corp SNX.N : up 2.8% BUZZ-Rises on upbeat Q4, PT hikes ** Comstock Resources CRK.N : up 6.5% ** Cabot Oil & Gas Corp COG.N : up 1.1% ** CNX Resources Corp CNX.N : up 1.9% ** EQT Corp EQT.N : up 5.0% BUZZ-Gas-focused stocks gain as natural gas futures hit 6-week high ** Plug Power PLUG.O : up 14.3% BUZZ-Plug Power hits record high on hydrogen LCV deal with Renault ** Las Vegas Sands LVS.N : down 0.8% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 21.1% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 14.9% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 40.7% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 16.7% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 6.0% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 0.1% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.8% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** ODP Corp ODP.O : up 0.6% BUZZ-J.P. Morgan upgrades after Staples' offer ** Deere& Co DE.N : up 2.2% ** Caterpillar Inc CAT.N : up 2.0% ** Illinois Tool Works Inc ITW.N : up 1.2% ** Oshkosh Corp OSK.N : up 3.3% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.3% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Lemonade Inc LMND.N : down 3.3% BUZZ-Falls on proposed stock offering ** Plus Therapeutics PSTV.O : up 1.1% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 11.2% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.9% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 3.0% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 28.4% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** ArcLight ACTC.O : up 78.3% BUZZ-Soars on deal to take electric-bus maker public ** Albertsons ACI.N : up 1.0% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 1.5% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.0% BUZZ-Falls as co expects lower Q4 sales ** Vir Biotechnology VIR.O : up 2.0% BUZZ-Jumps on GSK collaboration to test second antibody for COVID-19 treatment ** Kratos Inc KTOS.O : up 5.0% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 20.8% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 6.1% BUZZ-Hits record high on 'green trip' option, Moderna tie-up ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 1.8% ** Apache Corp APA.O : up 9.8% ** Devon Energy DVN.N : up 8.3% ** Marathon Oil MRO.N : up 8.6% ** Occidental Petroleum OXY.N : up 12.5% ** Schlumberger SLB.N : up 5.1% ** Halliburton HAL.N : up 7.9% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 4.7% ** Host Hotels & Resorts Inc HST.O : up 1.0% ** Ryman Hospitality Properties Inc RHP.N : up 2.6% ** Xenia Hotels & Resorts Inc XHR.N : up 3.0% ** Easterly Government Properties Inc DEA.N : up 0.5% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 5.7% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment ** Qilian International Holding Group Ltd QLI.O : up 187.2% BUZZ-China's Qilian soars in U.S. market debut ** PolarityTE Inc PTE.O : down 10.8% BUZZ-Falls on discounted stock offering ** Shake Shack SHAK.N : up 6.7% BUZZ-Shake Shack hits more than one-year high after prelim results impress ** Kuke Music Holding KUKE.N : up 15.0% BUZZ-Rises in U.S. market debut ** LendingTree TREE.O : up 13.6% BUZZ-LendingTree climbs after releasing Q4 outlook ** Surgalign Holdings SRGA.O : up 4.8% BUZZ-Rises on commercial launch of bone formation device ** Capricor CAPR.O : up 12.8% BUZZ-Jumps on partnership with Lonza for COVID-19 therapy ** CytoSorbents CTSO.O : up 4.5% BUZZ-Up on Q4 revenue beat ** IAC/InterActiveCorp IAC.O : up 3.5% BUZZ-Gains as Vimeo monthly sales rise ** Abercrombie ANF.N : up 1.1% BUZZ-Gains on forecast for smaller decline in holiday sales ** Four Seasons Education FEDU.N : down 10.8% BUZZ-Down on Q3 revenue fall as student enrollments drop ** Zynex Inc ZYXI.O : up 3.5% BUZZ-Up on upbeat 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 inched higher on Tuesday ahead of the start of corporate America's reporting season that could signal a rebound in earnings, while General Motors' shares jumped on launching an electric delivery vehicle business. .N At 12:00 ET, the Dow Jones Industrial Average .DJI was down 0.06% at 30,989.95.
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c44e9b03-07ba-4e0c-80f0-f13469e8da95
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723416.0
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2021-01-12 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-fuboTV, ArcLight, Liminal BioSciences, Biomerica
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DEA
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-fubotv-arclight-liminal-biosciences-biomerica-2021-01-12
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nan
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nan
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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 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. .N
At 10:44 ET, the Dow Jones Industrial Average .DJI was up 0.13% at 31,049.78. The S&P 500 .SPX was up 0.24% at 3,808.54 and the Nasdaq Composite .IXIC was up 0.26% at 13,070.016. The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5%
BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0%
BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4%
BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3%
BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8%
BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5%
BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3%
BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8%
BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0%
BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3%
BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5%
BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2%
BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4%
BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7%
BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5%
BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5%
BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2%
BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1%
BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2%
BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8%
BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7%
BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6%
BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3%
BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0%
BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4%
BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6%
BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 1.05%
Consumer Discretionary
.SPLRCD
up 1.39%
Consumer Staples
.SPLRCS
down 0.09%
Energy
.SPNY
up 3.14%
Financial
.SPSY
up 1.22%
Health
.SPXHC
down 0.78%
Industrial
.SPLRCI
up 0.69%
Information Technology
.SPLRCT
down 0.36%
Materials
.SPLRCM
up 0.61%
Real Estate
.SPLRCR
down 0.44%
Utilities
.SPLRCU
down 0.16%
(Compiled by Lasya Priya M in Bengaluru)
((LasyaPriya.M@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 S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment 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 The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. down 0.16% (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@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 S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment 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 The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. down 0.16% (Compiled by Lasya Priya M in Bengaluru) ((LasyaPriya.M@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 S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment The 11 major S&P 500 sectors: Communication Services .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 0.13% at 31,049.78. down 1.05% Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Etsy Inc , up 14.5% ** Occidental Peteroleum , up 11% ** Marathon Oil , up 9% The top three S&P 500 .PL.INX percentage losers: ** Boston Scientific Corporation , down 4.8% ** Realty Income Corporation , down 3.5% ** Eli Lilly and Company , down 3.4% The top three NYSE .PG.N percentage gainers: ** Navios Maritime Holdings Inc , up 22.7% ** Navios Maritime Holdings Inc , up 20.5% ** fuboTV Inc , up 18.8% The top three NYSE .PL.N percentage losers: ** 3D Systems Corporation , down 9.8% ** Direxion Daily S&P Oil & Gas Exp & Prod Br 2X Shs , down 8.6% ** Bank of Montreal , down 8.5% The top three Nasdaq .PG.O percentage gainers: ** ArcLight Clean Transition Corp , up 219.7% ** ArcLight Clean Transition Corp , up 94.4% ** ArcLight Clean Transition Corp , up 82% The top three Nasdaq .PL.O percentage losers: ** Lexaria Bioscience Corp , down 30.6% ** Highpeak Energy Inc HPKEW.O, down 14.5% ** Bit Digital Inc , down 13.2% ** SYNNEX Corp SNX.N : up 3.5% BUZZ-Rises on upbeat Q4, PT hikes ** ArcLight ACTC.O : up 82.0% BUZZ-Soars on deal to take electric-bus maker public ** Las Vegas Sands LVS.N : down 0.4% BUZZ-Las Vegas Sands Chairman and CEO Sheldon Adelson dies at 87 ** Liminal BioSciences LMNL.O : up 14.3% BUZZ-Up on FDA approval for U.S. plasma collection center ** fuboTV FUBO.N : up 18.8% BUZZ-Up on deal to acquire Vigtory's sportsbook platform ** VOXX International VOXX.O : up 35.5% BUZZ-Jumps on Q3 sales growth ** Xpeng Inc XPEV.N : up 15.3% BUZZ-Rises as co secures $2 bln credit from banks ** Happiness Biotech HAPP.O : up 3.8% BUZZ-Soars on sharp growth in e-commerce business ** Spirit Aerosystems SPR.N : up 1.0% BUZZ-Baird bullish on aerospace stocks for 2021, upgrades Spirit Aerosystems ** Teladoc Health TDOC.N : up 3.3% BUZZ-BTIG raises PT on Teladoc Health; says telehealth here to stay ** Deere& Co DE.N : up 2.1% ** Caterpillar Inc CAT.N : up 1.5% ** Illinois Tool Works Inc ITW.N : up 1.0% ** Oshkosh Corp OSK.N : up 2.5% BUZZ-Credit Suisse sees solid growth for U.S. machinery firms in 2021 ** Tencent Music TME.N : up 1.2% BUZZ-China's Tencent Music seeks Hong Kong listing, U.S. shares rise ** Plus Therapeutics PSTV.O : up 1.4% BUZZ-Up on deal with Piramal for its cancer drug product ** CONSOL Energy CEIX.N : up 10.7% BUZZ-Jumps after filing shows large investment by David Einhorn ** Realty Income Corp O.N : down 3.5% BUZZ-Drops on discounted stock sale ** Cantel Medical CMD.N : up 4.5% BUZZ-Up on $3.6 bln buyout deal with Steris ** La Jolla LJPC.O : up 31.2% BUZZ-Surges on Europe deal for blood pressure, abdominal infection treatments ** Albertsons ACI.N : up 1.1% BUZZ-Albertsons gains after raising annual sales, profit forecasts ** Becton Dickinson BDX.N : up 2.2% BUZZ-Up after upbeat Q1 revenue forecast on COVID-19 test demand ** Boston Scientific BSX.N : down 4.8% BUZZ-Falls as co expects lower Q4 sales ** Kratos Inc KTOS.O : up 2.7% BUZZ-Up on $12.7 mln order to complete development of turbojet engine ** Biomerica Inc BMRA.O : up 28.6% BUZZ-Rises on European approval for COVID-19 test ** Uber Technologies Inc UBER.N : up 4.3% BUZZ-Rises on Moderna partnership for vaccine awareness ** Chevron Corp CVX.N : up 2.0% ** Exxon Mobil Corp XOM.N : up 2.0% ** Apache Corp APA.O : up 7.5% ** Devon Energy DVN.N : up 6.2% ** Marathon Oil MRO.N : up 9.0% ** Occidental Petroleum OXY.N : up 11.0% ** Schlumberger SLB.N : up 5.9% ** Halliburton HAL.N : up 6.0% BUZZ-Oil cos up on tighter supply and expectations of drop in U.S. stockpiles ** DiamondRock Hospitality Co DRH.N : up 5.4% ** Host Hotels & Resorts Inc HST.O : up 1.2% ** Ryman Hospitality Properties Inc RHP.N : up 1.1% ** Xenia Hotels & Resorts Inc XHR.N : up 3.3% ** Easterly Government Properties Inc DEA.N : up 0.4% BUZZ-REIT sector's return to normalcy to be 'very different' - Raymond James ** AzurRx BioPharma AZRX.O : up 10.6% BUZZ-Jumps on patent for COVID-19 gastrointestinal disease treatment 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 The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy. .N At 10:44 ET, the Dow Jones Industrial Average .DJI was up 0.13% at 31,049.78.
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de76c3ad-95e4-4ffd-8580-59cc6aada8fd
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723417.0
|
2020-12-28 00:00:00 UTC
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Easterly Government Properties Buys US Office Facility; Street Sees 14% Upside
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-buys-us-office-facility-street-sees-14-upside-2020-12-28
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nan
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nan
|
Easterly Government Properties on Dec. 24 announced the acquisition of a 149,110-square foot US Department of the Interior (DOI) regional office and warehouse facility in Billings, Montana.
Easterly Government Properties (DEA) said the property is a leased regional facility that accommodates several of DOI’s key units, including the Rocky Mountain Regional Office for the Bureau of Indian Affairs (BIA). Financial terms of the transaction weren't disclosed.
The property is a first-generation, single tenant US government leased facility under a 20-year non-cancellable lease that expires on Apr. 2033 end.
“It gives me great pleasure to exceed our 2020 acquisition guidance with the closing of such an important facility,” said Easterly Government Properties CEO William C. Trimble, III.
On Dec. 23, BMO Capital analyst John Kim initiated coverage on DEA stock with a Buy rating and a price target of $26 (17% upside potential).
“Given its ownership of mission-critical assets leased to the US government, DEA serves as a bond proxy trading at a wider-than-expected spread, in our view. We believe DEA has the opportunity and cost of capital to exceed its acquisition guidance, and outpace its recent lackluster growth,” Kim wrote in a note to investors. (See DEA stock analysis on TipRanks)
Overall, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys and 2 Holds. With shares, down 6.5% year-to-date, the average price target stands at $25.33 and implies upside potential of 14.2% to current levels.
Related News:
Delivery Hero Given Conditional Approval in $4B Woowa Takeover – Report
Air Canada Boeing 737-8 MAX Jet Hit By Engine Issue – Report
Voya Wins Regulatory Nod To Divest Individual Life Business; Street Is Bullish
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA) said the property is a leased regional facility that accommodates several of DOI’s key units, including the Rocky Mountain Regional Office for the Bureau of Indian Affairs (BIA). On Dec. 23, BMO Capital analyst John Kim initiated coverage on DEA stock with a Buy rating and a price target of $26 (17% upside potential). “Given its ownership of mission-critical assets leased to the US government, DEA serves as a bond proxy trading at a wider-than-expected spread, in our view.
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Easterly Government Properties (DEA) said the property is a leased regional facility that accommodates several of DOI’s key units, including the Rocky Mountain Regional Office for the Bureau of Indian Affairs (BIA). On Dec. 23, BMO Capital analyst John Kim initiated coverage on DEA stock with a Buy rating and a price target of $26 (17% upside potential). “Given its ownership of mission-critical assets leased to the US government, DEA serves as a bond proxy trading at a wider-than-expected spread, in our view.
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Easterly Government Properties (DEA) said the property is a leased regional facility that accommodates several of DOI’s key units, including the Rocky Mountain Regional Office for the Bureau of Indian Affairs (BIA). On Dec. 23, BMO Capital analyst John Kim initiated coverage on DEA stock with a Buy rating and a price target of $26 (17% upside potential). “Given its ownership of mission-critical assets leased to the US government, DEA serves as a bond proxy trading at a wider-than-expected spread, in our view.
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Easterly Government Properties (DEA) said the property is a leased regional facility that accommodates several of DOI’s key units, including the Rocky Mountain Regional Office for the Bureau of Indian Affairs (BIA). On Dec. 23, BMO Capital analyst John Kim initiated coverage on DEA stock with a Buy rating and a price target of $26 (17% upside potential). “Given its ownership of mission-critical assets leased to the US government, DEA serves as a bond proxy trading at a wider-than-expected spread, in our view.
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8a920dd2-4f31-4c6e-974e-dd29c01998ac
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723418.0
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2020-12-24 00:00:00 UTC
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Financial Sector Update for 12/24/2020: FTFT,DEA,HCAP,PTMN
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DEA
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https://www.nasdaq.com/articles/financial-sector-update-for-12-24-2020%3A-ftftdeahcapptmn-2020-12-24
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nan
|
nan
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Financial stocks were mixed in late Thursday trading, with the NYSE Financial Index dropping climbing about 0.1% while the SPDR Financial Select Sector ETF was falling 0.1%.
The Philadelphia Housing Index also was climbing 0.8%.
In company news, Future Fintech (FTFT) dropped nearly 19% after disclosing an $8 million direct offering of more than 4.2 million common shares priced at $1.90 apiece, or 16.3% under Wednesday's closing price. The unnamed group of institutional investors also received an equal number of five-year warrants exercisable at $2.15 per share, the blockchain-based e-commerce company said. Net proceeds will be used for general corporate purposes.
Easterly Government Properties (DEA) also was fractionally lower after the real estate investment trust Thursday announced its purchase of a 149,110-square-foot, fully leased US Department of the Interior regional office and warehouse facility in Billings, Mont. Financial terms were not disclosed.
To the upside, Harvest Capital Credit (HCAP) rose almost 21% after the specialty lender agreed to all-stock merger offer from Portman Ridge Finance (PTMN), with investors receiving Portman Ridge shares equal to Harvest's net asset value at closing plus $2.15 million in cash. Based on Portman Ridge's Dec. 23 closing price, the deal values Harvest at $7.71 per share, or 31.8% above its last closing price. Harvest shareholders will own 16.6% of the combined companies. Portman Ridge shares finished 2.9% lower this afternoon.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA) also was fractionally lower after the real estate investment trust Thursday announced its purchase of a 149,110-square-foot, fully leased US Department of the Interior regional office and warehouse facility in Billings, Mont. Based on Portman Ridge's Dec. 23 closing price, the deal values Harvest at $7.71 per share, or 31.8% above its last closing price. The unnamed group of institutional investors also received an equal number of five-year warrants exercisable at $2.15 per share, the blockchain-based e-commerce company said.
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Based on Portman Ridge's Dec. 23 closing price, the deal values Harvest at $7.71 per share, or 31.8% above its last closing price. Easterly Government Properties (DEA) also was fractionally lower after the real estate investment trust Thursday announced its purchase of a 149,110-square-foot, fully leased US Department of the Interior regional office and warehouse facility in Billings, Mont. Financial stocks were mixed in late Thursday trading, with the NYSE Financial Index dropping climbing about 0.1% while the SPDR Financial Select Sector ETF was falling 0.1%.
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Easterly Government Properties (DEA) also was fractionally lower after the real estate investment trust Thursday announced its purchase of a 149,110-square-foot, fully leased US Department of the Interior regional office and warehouse facility in Billings, Mont. Based on Portman Ridge's Dec. 23 closing price, the deal values Harvest at $7.71 per share, or 31.8% above its last closing price. Financial stocks were mixed in late Thursday trading, with the NYSE Financial Index dropping climbing about 0.1% while the SPDR Financial Select Sector ETF was falling 0.1%.
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Based on Portman Ridge's Dec. 23 closing price, the deal values Harvest at $7.71 per share, or 31.8% above its last closing price. Easterly Government Properties (DEA) also was fractionally lower after the real estate investment trust Thursday announced its purchase of a 149,110-square-foot, fully leased US Department of the Interior regional office and warehouse facility in Billings, Mont. Financial stocks were mixed in late Thursday trading, with the NYSE Financial Index dropping climbing about 0.1% while the SPDR Financial Select Sector ETF was falling 0.1%.
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3e31c10e-00d6-4413-91f1-fa01cf1ff506
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723419.0
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2020-11-05 00:00:00 UTC
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Ex-Dividend Reminder: American Water Works, American Electric Power and Easterly Government Properties
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-american-water-works-american-electric-power-and-easterly-government
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 11/9/20, American Water Works Co, Inc. (Symbol: AWK), American Electric Power Co Inc (Symbol: AEP), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. American Water Works Co, Inc. will pay its quarterly dividend of $0.55 on 12/2/20, American Electric Power Co Inc will pay its quarterly dividend of $0.74 on 12/10/20, and Easterly Government Properties Inc will pay its quarterly dividend of $0.26 on 12/11/20. As a percentage of AWK's recent stock price of $160.02, this dividend works out to approximately 0.34%, so look for shares of American Water Works Co, Inc. to trade 0.34% lower — all else being equal — when AWK shares open for trading on 11/9/20. Similarly, investors should look for AEP to open 0.81% lower in price and for DEA to open 1.19% lower, all else being equal.
Below are dividend history charts for AWK, AEP, and DEA, showing historical dividends prior to the most recent ones declared.
American Water Works Co, Inc. (Symbol: AWK):
American Electric Power Co Inc (Symbol: AEP):
Easterly Government Properties Inc (Symbol: DEA):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.37% for American Water Works Co, Inc., 3.24% for American Electric Power Co Inc, and 4.76% for Easterly Government Properties Inc.
In Thursday trading, American Water Works Co, Inc. shares are currently up about 3%, American Electric Power Co Inc shares are up about 1.2%, and Easterly Government Properties Inc shares are up about 0.2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/9/20, American Water Works Co, Inc. (Symbol: AWK), American Electric Power Co Inc (Symbol: AEP), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AEP to open 0.81% lower in price and for DEA to open 1.19% lower, all else being equal. Below are dividend history charts for AWK, AEP, and DEA, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/9/20, American Water Works Co, Inc. (Symbol: AWK), American Electric Power Co Inc (Symbol: AEP), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. American Water Works Co, Inc. (Symbol: AWK): American Electric Power Co Inc (Symbol: AEP): Easterly Government Properties Inc (Symbol: DEA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AEP to open 0.81% lower in price and for DEA to open 1.19% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/9/20, American Water Works Co, Inc. (Symbol: AWK), American Electric Power Co Inc (Symbol: AEP), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. American Water Works Co, Inc. (Symbol: AWK): American Electric Power Co Inc (Symbol: AEP): Easterly Government Properties Inc (Symbol: DEA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AEP to open 0.81% lower in price and for DEA to open 1.19% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 11/9/20, American Water Works Co, Inc. (Symbol: AWK), American Electric Power Co Inc (Symbol: AEP), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AEP to open 0.81% lower in price and for DEA to open 1.19% lower, all else being equal. Below are dividend history charts for AWK, AEP, and DEA, showing historical dividends prior to the most recent ones declared.
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9ee394a9-5a8d-48eb-8656-ca7207351748
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723420.0
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2020-08-20 00:00:00 UTC
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DEA Crosses Above Key Moving Average Level
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DEA
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https://www.nasdaq.com/articles/dea-crosses-above-key-moving-average-level-2020-08-20
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nan
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nan
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $24.17, changing hands as high as $24.33 per share. Easterly Government Properties Inc shares are currently trading up about 1.8% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.36.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $24.17, changing hands as high as $24.33 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.36. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $24.17, changing hands as high as $24.33 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.36. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $24.17, changing hands as high as $24.33 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.36. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $24.17, changing hands as high as $24.33 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $19 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.36. Easterly Government Properties Inc shares are currently trading up about 1.8% on the day.
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568e088e-dab2-4f04-bedf-e9e98756c17d
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723421.0
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2020-08-11 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Ex-Dividend Date Scheduled for August 12, 2020
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc.-dea-ex-dividend-date-scheduled-for-august-12-2020-2020
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nan
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nan
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Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on August 12, 2020. A cash dividend payment of $0.26 per share is scheduled to be paid on September 11, 2020. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 12th quarter that DEA has paid the same dividend. At the current stock price of $25.47, the dividend yield is 4.08%.
The previous trading day's last sale of DEA was $25.47, representing a -14.23% decrease from the 52 week high of $29.70 and a 34.05% increase over the 52 week low of $19.
DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) (AMT) and Prologis, Inc. (PLD). DEA's current earnings per share, an indicator of a company's profitability, is $.1. Zacks Investment Research reports DEA's forecasted earnings growth in 2020 as 2.92%, compared to an industry average of -3.5%.
For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) (AMT) and Prologis, Inc. (PLD). Zacks Investment Research reports DEA's forecasted earnings growth in 2020 as 2.92%, compared to an industry average of -3.5%. For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. DEA's current earnings per share, an indicator of a company's profitability, is $.1. Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on August 12, 2020.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 12th quarter that DEA has paid the same dividend. For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. Easterly Government Properties, Inc. (DEA) will begin trading ex-dividend on August 12, 2020. This marks the 12th quarter that DEA has paid the same dividend.
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0ecd4f86-15e6-4d89-ac9d-416249ef547d
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723422.0
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2020-07-29 00:00:00 UTC
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DEA Crosses Above Key Moving Average Level
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DEA
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https://www.nasdaq.com/articles/dea-crosses-above-key-moving-average-level-2020-07-29
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nan
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nan
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.96, changing hands as high as $24.14 per share. Easterly Government Properties Inc shares are currently trading up about 1% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $18.60 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.03.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.96, changing hands as high as $24.14 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.60 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.03. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.96, changing hands as high as $24.14 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.60 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.03. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.96, changing hands as high as $24.14 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.60 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.03. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $23.96, changing hands as high as $24.14 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.60 per share, with $29.695 as the 52 week high point — that compares with a last trade of $24.03. Easterly Government Properties Inc shares are currently trading up about 1% on the day.
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7270c388-474b-4995-9f5f-98e3f08f028b
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723423.0
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2020-06-19 00:00:00 UTC
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DEA Makes Notable Cross Below Critical Moving Average
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DEA
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https://www.nasdaq.com/articles/dea-makes-notable-cross-below-critical-moving-average-2020-06-19
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nan
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nan
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $23.71, changing hands as low as $23.46 per share. Easterly Government Properties Inc shares are currently trading off about 1.9% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $17.72 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $23.71, changing hands as low as $23.46 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.72 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $23.71, changing hands as low as $23.46 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.72 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $23.71, changing hands as low as $23.46 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.72 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $23.71, changing hands as low as $23.46 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.72 per share, with $29.695 as the 52 week high point — that compares with a last trade of $23.50. Easterly Government Properties Inc shares are currently trading off about 1.9% on the day.
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9da9cfc6-3780-419f-a14d-60589276870c
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723424.0
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2020-05-06 00:00:00 UTC
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7 A-Rated REITs to Buy Now
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DEA
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https://www.nasdaq.com/articles/7-a-rated-reits-to-buy-now-2020-05-06
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Real estate investment trusts (REITs) fell off a cliff in March. According to the FTSE NAREIT All REITs Index, REITs dropped more than 40% since March, when the novel coronavirus turned the world upside down.
The biggest concern was how REIT customers pay their rents and how that was going to happen moving forward. Also, for those REITs that own properties, those properties have been devalued and that means their books are going to look a lot different in the quarters moving forward.
Fortunately, the Federal Reserve and U.S. Treasury Department have stepped in to underpin the bedrock of the economy in historic fashion.
That has helped the REIT sector regain a good amount of its lost ground. Today, FNAR is only off 20% from March highs. That’s a big move in slightly more than a month.
7 Explosive Cryptocurrencies to Buy for the Bitcoin Halvening
When I make Growth Investor recommendations, I always use a healthy weighting in what I call Elite Dividend Payers, including REITs that best fit that description. I’ve selected seven, A-rated REITs to buy now:
Safehold (NYSE:SAFE)
Duke Realty (NYSE:DRE)
Easterly Government Properties (NYSE:DEA)
Digital Realty Trust (NYSE:DLR)
Prologis (NYSE:PLD)
Crown Castle International (NYSE:CCI)
American Tower (NYSE:AMT)
I chose each of these stocks using my Portfolio Grader screening tool, which can determine the best sectors that have the wherewithal to not only come back, but thrive moving forward. Without further ado, let’s take a closer look at each of these REITs to buy now.
Solid REITs to Buy Now: Safehold (SAFE)
SAFE)" width="300" height="169">
Source: Shutterstock
Safehold is a younger REIT — established in 2017 — that acquires, owns and manages ground leases on a triple net basis.
Let’s unpack this. Ground leases allow the lessees to develop an undeveloped piece of property as they see fit. You see this with say, a drug store or convenience store chain that will build their properties to their specifications to maintain a consistent brand. Or, it may be a company that is leasing property to put up a housing development or an office complex.
Triple net means that the lessee is responsible for build out, maintenance and taxes on the properties. This means SAFE doesn’t have to worry about any of these costly issues and lowers its exposure to those large expenses.
While business may slow, the economic support from the U.S. government will help keep them stable until the economy has a change to regain momentum.
SAFE stock is up 131% in the past 12 months and is positive throughout 2020. It doesn’t have a big dividend — about 1% — but that’s a result of the stock’s gains.
Duke Realty (DRE)
DRE)" width="300" height="169">
Source: Shutterstock
Duke Realty has been around since 1972, so it has seen its fair share of economic booms and busts and has managed to build a strong, reliable REIT decade after decade.
It has a broadly diversified portfolio of properties that it leases — industrial, medical and government are its three main focuses. These are all in high demand and are reliable sources of income.
Another great thing about REITs is they’re technically set up as trusts, so shareholders are owners and receive the business’ net income in the form of a dividend. This is why at Growth Investor I always say it’s smart to buy quality REITs for the long-term and reinvest the dividends or use that cash for other ambitions.
7 Stocks to Buy Benefiting From Millennial Money
DRE is built on that traditional REIT philosophy and delivers a reliable dividend — now sitting at 2.7% — for solid income during uncertain times. DRE stock is about breakeven year to date and up 11% in the past 12 months.
Easterly Government Properties (DEA)
DEA)" width="300" height="165">
Source: Shutterstock
Easterly Government Properties is a very popular REIT right now because it has one of the best customers you could ask for in a fragile market like this one — the U.S. government.
DEA leases office space to various agencies of the U.S. government through the General Services Administration. The government is a huge beast and, as with most taxpayer money, it doesn’t keep it but recirculates it back to private businesses in the form of contracts.
In this case, it leases property from DEA to house its workers. This means long-term contracts, steady income and revenue. This is one of the bedrock markets for DRE and it’s the sole market for DEA. That also gives it a significant competitive moat, since getting the federal government to lease your properties is a lengthy process. Once you’ve established yourself, it’s much easier to get more business, since the parties are familiar with each other’s expectations.
DEA stock is up 46% in the past 12 months and still has a 3.8% dividend.
Digital Realty Trust (DLR)
DLR)" width="300" height="165">
Source: Shutterstock
Digital Realty Trust is another REIT that everyone is looking at these days. That’s because its business is all about leasing data centers and colocation operations.
When you look at the how much demand there is in telework, online retail, teleconferencing and video streaming, you can understand why DLR is in such a great spot right now.
And DLR is a global business, which means, right now, demand is huge for its services, since its customers are the select few that are actually growing in this economy. Furthermore, given the long tail we may experience from Covid-19 and social distancing, this could be a long-term gamechanger that changes the way digital services are deployed moving forward.
DLR has a $38 billion market cap, which means it has the resources to meet the demand, especially from the big players.
Plus, when things turn more normal, it will be a big beneficiary of 5G technology, cloud computing, the Internet of Things and “the mother of all technologies.”
9 Online Retail Stocks Profiting From Social Distancing
DLR stock is up 22% in the past year and has a respectable 3% dividend.
Prologis (PLD)
PLD)" width="300" height="169">
Source: rafapress / Shutterstock.com
Prologis is another REIT in the right sector at the right time.
It provides industrial properties for logistics firms. That means all the shipping companies that are moving goods across the country — and 19 others — and across borders are potentially using Prologis facilities.
This is about the global supply chain. And with e-commerce, you can buy a pair of super-duty hiking pants from China and have them delivered to your house in less than a week. Or locally, you can buy a book from California and have it at your home in a day or two.
That takes a significant amount of coordination and a very intricate supply chain to pull it off. This type of business is growing quickly, and Prologis is on the front lines.
It has more than 3,800 buildings with over 800 million square feet of space on four continents. That’s why it has a market cap of $66 billion. And its growth is practically built into the market trends.
PLD stock is up 14% in the past year and it pays a solid 2.6% dividend.
The final two companies are both powerhouses in the same sector — telecom infrastructure. Both benefit from the same megatrend and both are leaders in this particular sector. They both are dominant players in the transition to mobility.
That means mobile phones, and cloud computing as well as smart cars and houses and buildings and soon, artificial intelligence, opening up a world of incredible growth opportunities. It is how we can access information on a consumer or commercial basis across the country and around the world.
Both are arguably the top firms in the space and given the expense in developing their operations and properties, low interest rates make it a great time to grow their operations for the boom that is just beginning
Crown Castle International (CCI)
Source: Shutterstock
Crown Castle International is the largest providers of shared communications infrastructure in the U.S. It has more than 40,000 cell phone towers and 70,000 miles of fiber optic cable installed.
CCI has long-term contracts with both T-Mobile (NASDAQ:TMUS) as well as AT&T (NYSE:T) for its mobile towers. And it leases its fiber to local and national internet and media providers. Both of these sectors are undergoing rapid demand growth. With 5G around the corner, working with major telecom providers is a good place to be.
10 of the Best Long-Term Stocks to Buy in This Bear Market
CCI stock is up 26% for the year and supports a 3% dividend.
American Tower (AMT)
Source: Pavel Kapysh / Shutterstock.com
American Tower is expressly focused on broadcast towers, but its market is global.
It has over 170,000 towers around the world — more than 40,000 in the U.S., 75,000-plus in Asia, 16,000-plus in Europe, the Middle East and Africa, and 37,000-plus in Latin America.
Bear in mind, in less developed countries, broadcast towers are crucial for telecommunications because terrain and equipment are expensive and the costs can get prohibitive quickly. Mobile phones and wireless connectivity are fundamental.
In developed economies, it’s all about upgrading to 5G networks that will be many orders of magnitude faster than current 4G technology and open up whole new business opportunities and efficiencies.
AMT stock is up 21% in the past year and has a 1.7% dividend.
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The post 7 A-Rated REITs to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I’ve selected seven, A-rated REITs to buy now: Safehold (NYSE:SAFE) Duke Realty (NYSE:DRE) Easterly Government Properties (NYSE:DEA) Digital Realty Trust (NYSE:DLR) Prologis (NYSE:PLD) Crown Castle International (NYSE:CCI) American Tower (NYSE:AMT) I chose each of these stocks using my Portfolio Grader screening tool, which can determine the best sectors that have the wherewithal to not only come back, but thrive moving forward. Easterly Government Properties (DEA) DEA)" width="300" height="165"> Source: Shutterstock Easterly Government Properties is a very popular REIT right now because it has one of the best customers you could ask for in a fragile market like this one — the U.S. government. DEA leases office space to various agencies of the U.S. government through the General Services Administration.
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I’ve selected seven, A-rated REITs to buy now: Safehold (NYSE:SAFE) Duke Realty (NYSE:DRE) Easterly Government Properties (NYSE:DEA) Digital Realty Trust (NYSE:DLR) Prologis (NYSE:PLD) Crown Castle International (NYSE:CCI) American Tower (NYSE:AMT) I chose each of these stocks using my Portfolio Grader screening tool, which can determine the best sectors that have the wherewithal to not only come back, but thrive moving forward. Easterly Government Properties (DEA) DEA)" width="300" height="165"> Source: Shutterstock Easterly Government Properties is a very popular REIT right now because it has one of the best customers you could ask for in a fragile market like this one — the U.S. government. DEA leases office space to various agencies of the U.S. government through the General Services Administration.
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I’ve selected seven, A-rated REITs to buy now: Safehold (NYSE:SAFE) Duke Realty (NYSE:DRE) Easterly Government Properties (NYSE:DEA) Digital Realty Trust (NYSE:DLR) Prologis (NYSE:PLD) Crown Castle International (NYSE:CCI) American Tower (NYSE:AMT) I chose each of these stocks using my Portfolio Grader screening tool, which can determine the best sectors that have the wherewithal to not only come back, but thrive moving forward. Easterly Government Properties (DEA) DEA)" width="300" height="165"> Source: Shutterstock Easterly Government Properties is a very popular REIT right now because it has one of the best customers you could ask for in a fragile market like this one — the U.S. government. DEA leases office space to various agencies of the U.S. government through the General Services Administration.
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I’ve selected seven, A-rated REITs to buy now: Safehold (NYSE:SAFE) Duke Realty (NYSE:DRE) Easterly Government Properties (NYSE:DEA) Digital Realty Trust (NYSE:DLR) Prologis (NYSE:PLD) Crown Castle International (NYSE:CCI) American Tower (NYSE:AMT) I chose each of these stocks using my Portfolio Grader screening tool, which can determine the best sectors that have the wherewithal to not only come back, but thrive moving forward. Easterly Government Properties (DEA) DEA)" width="300" height="165"> Source: Shutterstock Easterly Government Properties is a very popular REIT right now because it has one of the best customers you could ask for in a fragile market like this one — the U.S. government. DEA leases office space to various agencies of the U.S. government through the General Services Administration.
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2020-05-06 00:00:00 UTC
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Easterly Government Properties (DEA) Q1 2020 Earnings Call Transcript
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-q1-2020-earnings-call-transcript-2020-05-06
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Image source: The Motley Fool.
Easterly Government Properties (NYSE: DEA)
Q1 2020 Earnings Call
May 05, 2020, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings and welcome to the Easterly Government Properties first-quarter 2020earnings conference call [Operator instructions] I will now turn the call over to Lindsay Winterhalter, vice president investor relations. Please go ahead.
Lindsay Winterhalter -- Vice President Investor Relations
Good morning. Before the call begins, please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Act reform of 1995 and is making the statement for the purpose of complying with those safe harbor provisions.
Although the company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, it can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control including, without limitation, those contained in Item 1A, Risk factors of its annual report, on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 25, 2020, and in its other SEC filings and risks and uncertainties related to the adverse impact of COVD '19 and on the U.S. regional and global economy and the potential adverse impact on the financial condition and results of operation of the company. The company assumes no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations, funds from operations as adjusted and cash available for distribution. You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package on the investor relations page of the company's website at ir.easterlyreit.com. I would now like to turn the conference call over to Darrell Crate, chairman of Easterly Government Properties.
Darrell Crate -- Chairman of Easterly Government Properties
Thank you Lindsay. Good morning everyone, and thank you for joining us for this first-quarter conference call. Today, in addition to Lindsay, I'm also joined by Bill Trimble, the company's CEO; and Meghan Baivier, the company's CFO and COO. Before we begin, I want to extend my well wishes for the health and safety of everyone on this call.
These are unprecedented times, and we all eagerly await the day when we can meet face-to-face once again. What a quarter it has been? We've witnessed the strength of the company's defensive and differentiated strategy, the virtues of our revenue stream backed by the full faith and credit of the U.S. government are serving investors well. We spent the last five years as a public company carefully assembling the necessary tools to perform in any business environment.
And we've achieved scale in our operations, meaningfully diversified and maintained the average length of our leases. We've also maintained a disciplined investment-grade balance sheet that has provided us with the attractive cost of capital that we can then deploy accretively through the acquisition and development of Bullseye Properties. We're appreciative of the confidence our investors have placed in the company which has in turn allowed us to continue to deploy capital in an attractive and consistent manner. At a time in the future feels less transparent than before, it gives me great comfort to serve as chairman of such a no-drama REIT, continue to stay safe.
And with that, I'll turn the call over to Bill.
Bill Trimble -- Chief Executive Officer
Thanks Darrell and good morning. Thank you for joining us for our first-quarterearnings call Given this unique backdrop, I will begin with our operations at Easterly in light of the COVID-19 pandemic and then continue with my more traditional discussion of our quarterly activities. We commenced our work-from-home protocol for our employees on Friday, March 13, and thanks to our superior operations and IT staff.
We enjoyed a near seamless transition from in-office operations with efficiency remaining high and morale strong. With just 40 employees companywide, our leadership team is able to maintain our closeness structure with time to make sure the Easterly team is doing well. Their families are staying safe, and they have the support they need during these challenging times. I'm proud of how Easterly has adapted to this change, and I applaud our staff for being so ahead of the curve in terms of planning and preparing us.
We continue to monitor the effects of social distancing across the region and the country and look forward to returning to our offices soon, but only when it is safe to do so. Our proactive approach extends to our strong commitment toward and partnership with our primary tenant, the U.S. federal government. The operations of many of our tenant agencies are deemed Essential.
And our asset management team has been exceptional in deploying a structured COVID-19 response plan across the portfolio while also meeting the unique needs of certain properties as they combat suspected and confirmed COVID cases. To date, there have been 17 suspected cases in three confirmed cases of COVID-19 throughout our entire portfolio. Our team has worked quickly with the government to address these situations as they arise and we'll continue to review our response plan to ensure the health and safety of our tenants and our employees. The praise we have received from the GSA and the underlying agencies with respect to our level of service in an expeditious manner is just another example of our differentiated approach toward the U.S.
government. These are trying times and Easterly has and will continue to deliver. Turning toward our first-quarter results. The acquisitions' team started the quarter with an acquisition of a 101,000 square foot Defense Health Agency facility located in Aurora, Colorado.
DHA-Aurora, a build-to-suit properties specifically constructed for the DHA. It was originally built in 1998 and underwent a sizable renovation in 2018 upon the execution of a new 15 year lease. The facility is leased to the GSA for the beneficiary use of the DHA with a lease expiration of 2034. We then announced our second acquisition of the quarter with a purchase of a 203,000 square foot FBI and DEA Joint Federal Justice Center located in El Paso, Texas.
This facility is really the tip of the spear in terms of enduring missions for the federal government. Not only does this 3-building compound serve as one of the 56 field offices for the FDI, but it is also one of the DEA's 23 domestic division offices. Both of which are strategically located throughout the country. This 100% lease facility was constructed in phases between the years of 1998 and 2005 with a lease term that expires in July of 2028.
In April, the company announced its third acquisition of the year and the first of the second quarter with the purchase of a 79,000 square foot Department of Veterans Affairs outpatient facility in Mobile, Alabama. Like our other outpatient facilities, VA-Mobile is a recently completed build-to-suit facility that is subject to an initial 15-year noncancelable lease that expires in December of 2033. In addition, yesterday, we announced our fourth acquisition of the year with the purchase of a VA outpatient facility located in Chico, California. This 52,000 square foot build-to-suit outpatient clinic was recently completed in mid-2019.
The state of the art facility was designed to achieve a lead healthcare silver certification and is leased to the VA for an initial noncancelable lease term of 15 years that expires in June of 2034. I'm proud of our acquisitions team, our ability to execute on our pipeline of actionable opportunities is truly exceptional. This because of the strength of our team, our attractive cost of capital and our robust pipeline that we continue to feel confident in our ability to deliver on our stated goal of $200 million in acquisitions for 2020. Mike Ibe and his team continue to make exceptional progress at our FDA Lenexa facility.
Construction is progressing at a rapid pace with various trades working in shifts in response to safety measures put in place due to coronavirus. And we remain on track to deliver our brand-new state of the art laboratory facility for the FDA in the fourth quarter of 2020. We have also made significant progress with the FDA and the GSA for the Atlanta Laboratory redevelopment project. We have submitted the final design intent drawing to the government and construction drawings are ongoing.
We do not expect any delays in our original time line for FDA Atlanta, and we look forward to delivering another state of the art facility for the FDA in 2022. To summarize, Easterly continues to deliver on all fronts of the business. Our unique ability to operate during a global pandemic centers on the long arc of our business. Our acquisition pipeline, lease durations, releasing engagements with the federal government and development opportunities all take a long time to harvest.
Because of that, we have the benefit of time on our side. Further, it is this calculated and methodical pace that provides our company with the stability and dependability we are known for. And as a result, we are not feeling any material levels of disruption because of COVID-19. I thank you again for your partnership and commitment to our investment thesis.
I'll turn the call over to Meghan to discuss the company's quarterly financial results.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Thank you Bill. Good morning everyone. Easterly's unique portfolio of government-leased real estate has once again allowed us to predictably post strong expectations, meeting earnings. Like Bill, allow me a moment to discuss Easterly's operations from a financial standpoint.
We are pleased to report the financial impact from COVID-19 on the Easterly rent roll has been de minimis. In the first quarter, uncollected rental income was approximately $1,300, and we do not expect any material rent collection issues for the second quarter and beyond. Turning to our quarterly results, as you saw in our earnings release, for the first quarter, net income per share on a fully diluted basis was $0.02. FFO per share on a fully diluted basis was $0.30.
FFO as adjusted per share on a fully diluted basis was $0.29. And our cash available for distribution was $21.8 million. As of March 31, we owned 72 operating properties, comprising approximately 6.8 million square feet of commercial real estate with two additional projects totaling approximately 222,000 square feet under development or in design. The weighted average age of our portfolio was 13.1 years.
Turning to the balance sheet. At quarter end, the company had total indebtedness of approximately $943 million with $414 million available on our line of credit for future acquisitions and development related expenses. As of March 31, Easterly's net debt to total enterprise value was 30.6% and its adjusted net debt to annualized quarterly pro forma EBITDA ratio was 6.3x. In the first quarter of 2020, the company sold and issued 200,000 shares of its common stock to the company's March 2019 ATM program at a net weighted average price of $24.17 per share, raising net proceeds to the company of approximately $4.8 million.
Further, during and subsequent to the quarter, the company entered into forward sales transactions under the company's ATM programs for the sale of an additional 3.8 million shares of our common stock at a weighted average initial forward sales price of $26.75 per share that have not yet been settled. Assuming the company's total 6.7 million shares bound by forward sales transactions under the company's ATM programs are physically settled in full, utilizing a weighted average initial forward sales price of $25.06 per share, the company expects to receive net proceeds of approximately $166 million. With these forward sales, Easterly is very well poised to fund our acquisition and development pipeline at a highly attractive cost of capital with just-in-time funding. Turning to our earnings guidance for the 12 months ending December 31, 2020.
The company is maintaining its guidance for FFO per share on a fully diluted basis of $1.22 to $1.24. The midpoint of this guidance is based on the company completing $200 million of acquisitions and $40 million to $50 million of gross development related investment in the year. While COVID-19 may be a financial disruptor for many companies, we believe at this time, our business model can withstand and even grow through this storm. As previously stated, the midpoint of this 2020 guidance represents approximately two and a half percent growth from our 2019 results, in line with our long-term goal of delivering 2% to 3% annual earnings growth to investors.
Long-term steady growth is this company's objective, and we expect our performance in 2020 will meet that goal. As always, thank you for your time and partnership. We wish you all the best, and please stay safe. With that, I will turn the call back to Sashi.
Questions & Answers:
Operator
[Operator instructions] The first question is from Manny Korchman of Citi. Please go ahead.
Kathy McConnell -- Citi -- Analyst
Good morning. This is Kathy McConnell on for Manny. I was wondering if you could just provide some color on the pricing on deals completed to date and where you stand versus the $200 million guidance. For the year? And then maybe talk about how the competitive landscape has changed as you look for additional opportunities?
Darrell Crate -- Chairman of Easterly Government Properties
Absolutely. Good morning to you. So basically, DHA-Aurora, our first purchase is $14 million. Our FBI DEA El Paso joint facility was $38.7 million.
Our VA-Mobile was $39.5 million, and the VA-Chico was $33.1 million which totals to $124.7 million which we're on our way to $200 million, I'd say we're in an awfully good start since the last time I checked, we won't get to the year for a couple of half year way through the year for a couple of months. And we continue to see plenty of opportunity. I think the landscape in our market, in many ways, remains the same. I think there's an additional opportunity now in that some of the sellers, and we're familiar with absolutely every one of them.
And I tell you, hats off to our acquisitions team who are really dialing all day long and talking to our friends that own these buildings. There are a number of owners that also have other properties that are not in the government space including hotel developments and as such, and I think that we're going to see some opportunities as some of these regional developers take advantage of being able to sell those properties to us in an expeditious manner. And build cash reserves for other opportunities. So from that standpoint, I think we have a bright pipeline this year, and we will continue to execute on it.
Kathy McConnell -- Citi -- Analyst
OK, great. Thanks.
Operator
The next question is from Michael Carroll of RBC Capital Markets. Please go ahead.
Michael Carroll -- RBC Capital Markets -- Analyst
Yeah, thanks. Bill, just kind of off of that last comments, and I know it seems like there are some opportunities for some more single asset type transactions. What about the portfolios? I know those are harder to predict, but are those owners more willing to sell some of their properties and derisk during this type of environment or are they still holding pact?
Bill Trimble -- Chief Executive Officer
Hey Michael. Good morning. I think it's the same there, really, but you can be assured that we're calling the owners of the smaller portfolios and the larger portfolios. And obviously, from an M&A standpoint, we think we're in a terrific position with our cost of capital right now to move forward.
Having said that I think naturally, things are not moving quite as quickly today, and people are still triaging their own situations. So I would say, all in all, it's pretty much a steady state there, but just my message would be that I have a positive outlook on what we'll be able to accomplish in the pipeline this year.
Michael Carroll -- RBC Capital Markets -- Analyst
OK. And then on the single assets, like how much -- I mean, is that -- how much bigger is the pipeline today given these increased opportunities? Is there a way to kind of quantify that?
Bill Trimble -- Chief Executive Officer
No. I mean, I'd tell you, we've -- since 2010, have we just -- solely us, but we've stuck with $700 million out there that we think is a good number to be familiar with. And the $200 million is obviously based on what we're, pretty darn sure, we can execute on. So I will just say that we are busy trying to exceed that number, and we have in many years.
We can't guarantee that sort of thing, but that's certainly our preference. Is to put the throttle forward when we're looking to situate them with our cost of capital in this particular time.
Michael Carroll -- RBC Capital Markets -- Analyst
OK. And then on the near-term lease expirations that are coming due, is there I guess any delay in those? And is there a risk that some of those leases go into holdover or is the government still I guess, working as typically we would expect and is the activity is kind of in line of where it has been historically?
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Hey, Michael. This is Meghan. The GSA is proven to be very efficient from working from home so we are in touch with lease contracting officers and leasing activity in general is progressing and moving forward.
Michael Carroll -- RBC Capital Markets -- Analyst
OK. Great. And then I guess last question for me is, how should we think about the settlement of those forward equity commitments? I know you typically have 12 months to close those. I mean, should we kind of straight-line that? Are you going to assume that you close those as more deals kind of come through?
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Yeah. Michael, that's going to be used for, if you will, just-in-time funding around deals being closed.
Michael Carroll -- RBC Capital Markets -- Analyst
OK. Great. Thank you.
Operator
The next question is from Peter Abramowitz of Jefferies. Please go ahead.
Peter Abramowitz -- Jefferies -- Analyst
Hi. Thank you. Just wanted to get your thoughts on kind of long-term, in a recessionary environment obviously for kind of more traditional real estate assets, you would typically expect some cap rate expansion now being kind of in the niche market that you guys are in. What are your thoughts on kind of how cap rates could potentially move, just given everything that the economy is facing?
Bill Trimble -- Chief Executive Officer
Good morning. I would tell you, having done this since 2000, started looking at this in 2009, it's been really quite incredible how little cap rates have moved through various events that we've seen since over a decade ago. The scarcity of the buildings which is an advantage we have because we know all the buildings out there I think is mostly the driving factor. We've been very careful not to, as we said, become the elephant in the swimming pool and start driving pricing up too much in front of us.
And you will continue to see a really disciplined approach from us for long-term growth. Having said that, in this market today, we're really seeing the same sorts of cap rates last year. And into the first quarter, most of those cap rates have been into that sort of low to mid-6 area. Obviously, when you're looking at some of the most pristine properties, and let's take a brand-new FBI with a 15 or 20-year lease or maybe even one of our new FDA Laboratories which we were fortunate enough to build ourselves and have over a seven yield on.
Those sorts of facilities are going to be down below 6, maybe 5.9, 5.8. And I think they've always been there. Obviously, with our current cost of capital, even they could be attractive for pennies per share for our shareholders. So I think you're going to see us maintain and hold a disciplined approach, but I think you might also see us occasionally go out and get some pristine properties that not only build our average lease term, but continue to drive us toward the center of the Bullseye in quality for the portfolio.
As long obviously as it's accretive. And a lot is accretive at our current cost of capital.
Peter Abramowitz -- Jefferies -- Analyst
Sure. OK. Thanks you. That's helpful.
And then just one more. Kind of given the shifting priorities for federal spending, does that -- do you think that at all impacts kind of the concentration of different agencies that are in the portfolio? Do you see that having any impact on just the mix of tenant exposure from government agencies moving forward?
Bill Trimble -- Chief Executive Officer
No. I think as the largest employer in the world, the largest office tenant in the United States, the federal government does not seem to be pulling back on their expenditures right now. And in fact, I think we might see more opportunities going forward. Is government seems to be poised has grown substantially during this period of time? I think we can only be beneficiaries of that.
Obviously, our portfolio has really been sort of targeted at about three dozen agencies that we believe whether we have Republican or Democrat in office, we'll do just fine and weather any storm. But I mean, I think our -- if you look at our FEMA facilities, you go to the FDA laboratories that we're building, there's 10 more to go. I don't see really the federal government cutting back on the new FDA Laboratories. I don't see the federal government cutting back on the VA outpatient clinics that are providing an incredible amount of service right now to our veterans, 22 million men and women.
And so the FBI has certainly got a lot going on. So I think the federal government is going to be a good place to be, and it's certainly a certain place to be for the foreseeable future. And I think they're leaning into development projects going forward.
Peter Abramowitz -- Jefferies -- Analyst
All right. That's it for me. Thank you.
Operator
[Operator instructions] The Next question is from Bill Crow of Raymond James. Please go ahead.
Bill Crow -- Raymond James -- Analyst
Hey. Good morning everybody. Any change in the buyer pool out there that you're competing against? I'm just curious whether this period is knocking folks out or whether it's actually shifting more people into a more defensive mode and looking for this longer-term net lease like structure?
Bill Trimble -- Chief Executive Officer
Good morning Bill. It's hard to tell exactly what's happened. I will tell you that we have won every single building, and some have been obviously off-market that we've wanted to do this year. So from our standpoint, it's been clear sounding.
There were rumors at the beginning of March that others were going to think about getting into the government space because it was such a safe place to be. That has not happened. I think the daunting task of dealing with the federal government. If you don't have people that have been trained, you don't have the verticals, you don't have the government operations team.
And certainly the databases and the knowledge, we've seen that just completely. That was just a quick flash and did not occur. So I think from that standpoint, certainly from a cost of capital, our friends who are in the private area of GSA acquisitions I think do not have as strong a cost of capital right now. So from our standpoint, we've got the green light.
We're going to be prudent, and we're going to execute. But we have not seen a big change in the landscape.
Bill Crow -- Raymond James -- Analyst
I appreciate that. What are you seeing on releasing spreads?
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Bill, this is Meghan. The dynamic around how we approach releasing and what drives our releasing spreads really has not been impacted by this pandemic. And so the dynamic around the fact that the replacement cost of the asset remains the high watermark for these conversations really hasn't shifted. And our releasing, if you will, processes stay on track in line with that expectation.
Bill Crow -- Raymond James -- Analyst
All right. Thanks Meghan and one more for you, given the cost of capital today. Do you find yourself leaning more into equity on a relative basis or are you trying to maintain your debt equity balance as it has been historically? What are your thoughts there?
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Yeah. So obviously, like the way we're positioned today, but as we continue to build into the year and lean into the $200 million plus type goals in terms of acquisitions, that is absolutely an opportunity for us to continue to use equity to delever the balance sheet while still delivering on earnings expectations. So that is a dynamic you can expect us to take advantage of as we move through the year.
Bill Crow -- Raymond James -- Analyst
Yup. OK. Thank you. Appreciate it.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Thank you.
Operator
This concludes the question-and-answer session. I would like to turn the floor back over to Darrell Crate for closing comments.
Darrell Crate -- Chairman of Easterly Government Properties
Well, thank you everyon, for joining the Easterly Government first-quarter 2020 conference call. While the company will not miss a beat because of COVID, we all look forward to the end of quarantine and being together with colleagues and investors soon. We wish everybody good health.
Operator
[Operator signoff]
Duration: 34 minutes
Call participants:
Lindsay Winterhalter -- Vice President Investor Relations
Darrell Crate -- Chairman of Easterly Government Properties
Bill Trimble -- Chief Executive Officer
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Kathy McConnell -- Citi -- Analyst
Michael Carroll -- RBC Capital Markets -- Analyst
Peter Abramowitz -- Jefferies -- Analyst
Bill Crow -- Raymond James -- Analyst
More DEA 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.
Motley Fool Transcribing 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.
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Easterly Government Properties (NYSE: DEA) Q1 2020 Earnings Call May 05, 2020, 10:00 a.m. We then announced our second acquisition of the quarter with a purchase of a 203,000 square foot FBI and DEA Joint Federal Justice Center located in El Paso, Texas. Not only does this 3-building compound serve as one of the 56 field offices for the FDI, but it is also one of the DEA's 23 domestic division offices.
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Operator [Operator signoff] Duration: 34 minutes Call participants: Lindsay Winterhalter -- Vice President Investor Relations Darrell Crate -- Chairman of Easterly Government Properties Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Kathy McConnell -- Citi -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst Peter Abramowitz -- Jefferies -- Analyst Bill Crow -- Raymond James -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q1 2020 Earnings Call May 05, 2020, 10:00 a.m. We then announced our second acquisition of the quarter with a purchase of a 203,000 square foot FBI and DEA Joint Federal Justice Center located in El Paso, Texas.
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Operator [Operator signoff] Duration: 34 minutes Call participants: Lindsay Winterhalter -- Vice President Investor Relations Darrell Crate -- Chairman of Easterly Government Properties Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Kathy McConnell -- Citi -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst Peter Abramowitz -- Jefferies -- Analyst Bill Crow -- Raymond James -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q1 2020 Earnings Call May 05, 2020, 10:00 a.m. We then announced our second acquisition of the quarter with a purchase of a 203,000 square foot FBI and DEA Joint Federal Justice Center located in El Paso, Texas.
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Operator [Operator signoff] Duration: 34 minutes Call participants: Lindsay Winterhalter -- Vice President Investor Relations Darrell Crate -- Chairman of Easterly Government Properties Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Kathy McConnell -- Citi -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst Peter Abramowitz -- Jefferies -- Analyst Bill Crow -- Raymond James -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q1 2020 Earnings Call May 05, 2020, 10:00 a.m. We then announced our second acquisition of the quarter with a purchase of a 203,000 square foot FBI and DEA Joint Federal Justice Center located in El Paso, Texas.
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2020-05-01 00:00:00 UTC
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7 Fundamentally Solid Dividend Stocks to Buy
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DEA
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https://www.nasdaq.com/articles/7-fundamentally-solid-dividend-stocks-to-buy-2020-05-01
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Yes, the markets are roaring back and even first-quarter earnings are looking better than expected.
But even as businesses open up and the novel coronavirus fades, we’re not headed back to normalcy quickly. It’s going to take a while.
Also, all measures of performance are in an odd spot. How do you calculate what good earnings are after a complete economic shutdown? It’s all going to be guesswork. And that means volatility.
What you want to have in your portfolio are solid stocks that will be there come what may and pay you a little for owning them. These are long-term positions that offer total returns — dividends and capital gains — not sexy stocks that will rally 6% in a day, then fall 10% and then rally 5%.
9 Healthcare Stocks to Buy Even After the Coronavirus Fades
The seven fundamentally solid dividend stocks to buy now are screened by my Portfolio Grader I use to find Growth Investor plays and represent some of the best long-term buys in the markets today.
Easterly Government Properties (NYSE:DEA)
Frontline (NYSE:FRO)
Carlyle Group (NYSE:CG)
Unum Group (NYSE:UNM)
Huntsman (NYSE:HUN)
Dominion Energy (NYSE:D)
Xerox (NYSE:XRX)
Dividend Stocks: Easterly Government Properties (DEA)
Source: Shutterstock
Dividend Yield: 3.9%
Easterly Government Properties is a shining example of the kind of stock I’m talking about today.
It’s a real estate investment trust (REIT) that has one of the most reliable tenants in the world — the U.S. government.
It’s based in Washington, D.C. and leases Class A properties to government agencies. DEA operates 72 properties for 32 agencies with nearly 7 million square feet of space.
DEA has been around since 2011, so it’s relatively new in the REIT space. But this is a very unique niche with a serious competitive moat.
Currently it has a solid 3.9% dividend, which shouldn’t be affected by any of the economic issues visited upon the broader economy. The stock is up 50% in the past 12 months, so there’s some significant growth there as well.
Frontline (FRO)
Source: VladSV / Shutterstock.com
Dividend Yield: 17.1%
Frontline is a commodity shipping company that ships dry and wet cargo. That basically means it has ships that will carry iron ore or coal (dry cargo) as well as oil and liquified natural gas (wet cargo). It carries a variety of other products as well.
Shipping is a very cyclical business and that tends to be reflected in its dividend as well.
When the economy is going strong, shipping firms are in demand and the stock rises as the dividend falls. When it gets seasonally slow — usually summer — the dividend rises as the stock falls.
But that cycle has been affected by Covid-19. That’s why FRO stock has a 17.1% dividend right now. But as the global economy comes back online, that dividend will shrink as the stock rises.
7 of the Best Large-Cap Stocks to Buy Now
This is a seasonally volatile industry, but there’s a lot of upside at this point, and FRO has become a “strong buy” in my stock-picking system in this market. And that huge dividend should keep you happy as growth picks up.
Carlyle Group (CG)
Source: Casimiro PT / Shutterstock.com
Dividend Yield: 3.9%
Carlyle Group is an asset management company. That means it uses private investors’ money to run its investment operations. Those include private equity, real estate, global credit and investments.
It has been around since 1987 and has a very blue-chip client list of global leaders and royal families that want a solid place to park their money and get a consistent long-term return.
For the rest of us, we can ride their coattails by owning the company at large.
It has grown from a boutique private firm into a powerful global company with a $9 billion market capitalization. And the entire time it has kept investors’ money safe and productive.
It delivers a healthy 3.9% dividend and the stock is up 24% in the past year.
Unum Group (UNM)
Source: Casimiro PT / Shutterstock.com
Dividend Yield: 6.7%
Unum Group specializes in supplemental insurance benefits. Basically, it offers long-term and short-term disability insurance, as well as group life and accidental death and dismemberment policies. It also owns Colonial Life, which is a health insurance provider.
Insurance is always a corner of the market I like to monitor for Growth Investor plays. This particular company has been operating since 1848, so it has seen global and national events over that time, including some of the biggest market dislocations before the Great Depression.
Currently, it operates mainly in the U.S. and the United Kingdom.
While the job market has shrunk during this period, UNM sits on piles of cash since many of its policies don’t pay out as regularly as broader health insurance companies do. This protects it from some the damage in the markets right now.
The stock has been hammered in recent months, off 35% in the past 3 months, and 53% over the past 12 months. But its dividend is now sitting at a rich 6.7% and given its long track record, there’s little chance it will cut that dividend.
And as the market recovers, the stock will recover as well, making up lost ground quickly.
Huntsman (HUN)
Source: Casimiro PT / Shutterstock.com
Dividend Yield: 3.9%
Huntsman is a chemical manufacturer in Texas that focuses on the plastics, automotive and construction industries.
And earlier this month is made 50 tons of hand sanitizer and distributed it to hospitals and pharmacies for free.
It was founded in 1970 by Jon Huntsman and remains a family-run company in its second generation.
The company’s client list reads as a “Who’s Who” of industrial blue-chip players across various industries. And it has made solid in-roads to China and other nations beyond U.S. shores over the years.
30 Consumer Stocks to Buy Once the Coronavirus Pandemic Passes
This is a cyclical business, so it has suffered in the current environment. It’s off 22% in the past 12 months. But in the past month the stock is up 16%, which shows there are buyers moving in while it’s on sale. It delivers a solid 3.9% dividend.
Dominion Energy (D)
Source: ying / Shutterstock.com
Dividend Yield: 4.8%
Dominion Energy is a big electric utility that has service operations in Virginia, West Virginia, the Carolinas and Ohio. It also has some operations as far away as Wyoming and Utah.
Dominion also has an unregulated natural gas business, with one of the few liquefied natural gas export terminals in the country, at Cove Point, Maryland. This has enormous potential, not just for Dominion’s own natural gas supplies but collecting fees from other suppliers looking to export their LNG.
It is also investing heavily in renewable energy resources. Its balance between regulated and unregulated businesses allows it to maintain a solid growth rate and dividend, with a growth kicker when times are good.
Right now, it’s a flight-to-safety stock for many, so it isn’t cheap here. But it still delivers a generous 4.8% dividend and is up slightly in the past 12 months. And I’ve got even better growth and income plays for you now.
Xerox (XRX)
Source: BalkansCat / Shutterstock.com
Dividend Yield: 5.6%
Xerox was once so popular and ubiquitous that its name was synonymous with making a copy — as both a noun and a verb. You Xeroxed the report and handed out Xeroxes of that report.
But those days are long behind it. From running the Palo Alto Research Center (PARC) where Steve Jobs got the ideas for a mouse and the graphical user interface for Apple (NASDAQ:AAPL), it failed to keep up with the times and couldn’t take advantage of its own research.
And while it made some efforts to regain its vaulted position, the world of copiers and digital printing wasn’t where the big money was headed.
In 2018, the company was going to allow itself to be sold to Fujifilm (OTCMKTS:FUJIY), but investor Carl Icahn and others stepped in and fought the sale. Late last year it tried a hostile takeover of HP (NYSE:HPQ), but Covid-19 brought an end to that effort.
It still sports a $3.9 billion market cap and has sold off more than 50% in the past year. But with a revived board and management — and Icahn’s backing — there’s still hope it can build a solid company through acquisitions.
The stock has a 5.6% dividend, which is far better than a money market account.
Legacy tech is tricky, though, if what you’re looking for is growth. That’s why I’m looking in a completely different group, where my favorite stock offers both dividends and huge growth opportunities.
The AI Master Key
If artificial intelligence (AI) sounds futuristic, even far-fetched — well, keep in mind, you’re already using it every day. If you’ve ever used Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Assistant or Apple’s (NASDAQ:AAPL) Siri … if you’ve had Netflix (NASDAQ:NFLX) recommend a movie or Zillow (NASDAQ:Z) recommend a house … even an email spam filter … then you’ve used artificial intelligence.
In this new world of AI everywhere, data becomes a hot commodity.
As scientists find even more applications for artificial intelligence — from hospitals to retail to self-driving cars — it’s incredible to imagine how much data will be involved.
To create AI programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every AI system. As one AI researcher from the University of South Florida puts it, “data is the new oil.”
To cash in, you’ll want the company that makes the “brain” that all AI software needs to function, spot patterns and interpret data.
It’s known as the “Volta Chip” — and it’s what makes the AI revolution possible.
You don’t need to be an AI expert to take part. I’ll tell you everything you need to know, as well as my buy recommendation, in my special report for Growth Investor, The A.I. Master Key. The stock is still under my buy limit price — so you’ll want to sign up now. That way, you can get in while you can still do so cheaply.
Click here for a free briefing on this groundbreaking innovation.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
The post 7 Fundamentally Solid Dividend Stocks to Buy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (NYSE:DEA) Frontline (NYSE:FRO) Carlyle Group (NYSE:CG) Unum Group (NYSE:UNM) Huntsman (NYSE:HUN) Dominion Energy (NYSE:D) Xerox (NYSE:XRX) Dividend Stocks: Easterly Government Properties (DEA) Source: Shutterstock Dividend Yield: 3.9% Easterly Government Properties is a shining example of the kind of stock I’m talking about today. DEA operates 72 properties for 32 agencies with nearly 7 million square feet of space. DEA has been around since 2011, so it’s relatively new in the REIT space.
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Easterly Government Properties (NYSE:DEA) Frontline (NYSE:FRO) Carlyle Group (NYSE:CG) Unum Group (NYSE:UNM) Huntsman (NYSE:HUN) Dominion Energy (NYSE:D) Xerox (NYSE:XRX) Dividend Stocks: Easterly Government Properties (DEA) Source: Shutterstock Dividend Yield: 3.9% Easterly Government Properties is a shining example of the kind of stock I’m talking about today. DEA operates 72 properties for 32 agencies with nearly 7 million square feet of space. DEA has been around since 2011, so it’s relatively new in the REIT space.
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Easterly Government Properties (NYSE:DEA) Frontline (NYSE:FRO) Carlyle Group (NYSE:CG) Unum Group (NYSE:UNM) Huntsman (NYSE:HUN) Dominion Energy (NYSE:D) Xerox (NYSE:XRX) Dividend Stocks: Easterly Government Properties (DEA) Source: Shutterstock Dividend Yield: 3.9% Easterly Government Properties is a shining example of the kind of stock I’m talking about today. DEA operates 72 properties for 32 agencies with nearly 7 million square feet of space. DEA has been around since 2011, so it’s relatively new in the REIT space.
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Easterly Government Properties (NYSE:DEA) Frontline (NYSE:FRO) Carlyle Group (NYSE:CG) Unum Group (NYSE:UNM) Huntsman (NYSE:HUN) Dominion Energy (NYSE:D) Xerox (NYSE:XRX) Dividend Stocks: Easterly Government Properties (DEA) Source: Shutterstock Dividend Yield: 3.9% Easterly Government Properties is a shining example of the kind of stock I’m talking about today. DEA operates 72 properties for 32 agencies with nearly 7 million square feet of space. DEA has been around since 2011, so it’s relatively new in the REIT space.
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2020-04-23 00:00:00 UTC
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11 Stocks and Funds Perfect for Crisis Investing Now
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DEA
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https://www.nasdaq.com/articles/11-stocks-and-funds-perfect-for-crisis-investing-now-2020-04-23
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors need to ask how their portfolios will fare during times of crisis. When the S&P 500 takes a dive, will their investments dive along with it or hold up and even rally?
My approach in my Profitable Investing is to present an allocation to both stocks and fixed income. This combination provides growth and income, and helps portfolios absorb the shock that comes from the stock market’s gyrations.
This comes with lots of dividend income from my recommended stocks as well as the heavy income from coupons and interest paid by bonds, preferred stocks and related funds.
But it’s important to gain further perspective on what investments work better during selloffs. It only takes a few bits of financial history to see what worked when the S&P 500 wasn’t your friend.
Crisis Investing in the Fourth Quarter of 2018
The fourth quarter of 2018 was very bad for the general stock market. The S&P 500 lost 19.3% in price through Dec. 24 of the quarter. What set the selling off was the concern that sales and earnings growth of the underlying companies were less likely to rise. And in turn, everyone started selling.
This was exacerbated by the erroneous actions by the Federal Reserve and its Open Market Committee (FMOC) to tighten money conditions. But inflation — as measured by the core Personal Consumption Expenditure (PCE) index — was not sustainably above the FOMC’s target of 2%.
The benchmark Fed Funds rate went from 1.4% to 2.4%. And the reversal of some quantitative easing (QE) from the financial crisis added to credit market concerns. It also made things more expensive for S&P 500 member companies.
Source: Chart by Bloomberg
S&P 500 Fourth Quarter 2018
But some alternative investments fared much better. U.S. utilities — as tracked by S&P 500 — returned a positive return for the full quarter by 1.4%. And real estate investment trusts (REITs) returned a minor loss of 3.8%. The U.S. bond market — as tracked by the Bloomberg Barclays US Aggregate Index –returned 1.6%.
Source: Chart by Bloomberg
S&P 500, S&P Utilities, S&P Real Estate and Bloomberg Barclays US Aggregate Index Total Return
And another asset sector stood out. Gold — as tracked by the London morning fixing price — gained 8.3%. That’s interesting as U.S. short-term interest rates were on the rise and the U.S. dollar was gaining. The dollar did begin to retreat in December.
The fourth quarter was more of a normal correction or selloff. It was based on expectations for fundamentals, including sales and earnings. The selling that occurred in the first quarter of this year was in a totally different market.
First Quarter 2020
The first quarter of 2020 was brutal. The S&P 500 went from a high of 3,386.15 on Feb. 19 to a low of 2,237.40 on March 23. That’s a loss in price of 33.9%.
Source: Chart by Bloomberg
S&P 500 First Quarter 2020
The novel coronavirus was just entering the U.S. with companies that had exposure to China and Europe seeing the initial impacts on their businesses. But the ensuing lockdowns did something that has never happened in the U.S. economy — they brought a nearly full shutdown of business.
The result was that everyone only wanted to own U.S. dollars in cash. The U.S. dollar soared from March 9 through to March 23 from 1,190.98 to 1,297.08 amounting to a gain of 8.9%.
Source: Chart by Bloomberg
Bloomberg U.S. Dollar Index
The Federal Reserve jumped in to this mess, working even in the fourth quarter of 2019 to ease credit troubles in the repurchase agreement market.
And the Fed expanded into lending in the commercial paper market where corporations borrow and invest for overnight and short-term periods. But with necessary credit guarantees from the U.S. Department of Treasury, the Fed began to buy all sorts of bonds and credit securities.
The S&P 500 has been reflecting the forward-looking optimism that lockdowns will end and that there will be some sort of recovery.
Source: Chart by Bloomberg
S&P 500, S&P Utilities, S&P Real Estate, Bloomberg Barclays US Aggregate and London Gold Fixing Total Year-to-Date Return
And the S&P 500 has regained some of the heavy losses. As just noted, during the heavy selling and the drive for cash, investors sold everything.
But on a year-to-date total return, utilities, REITs, U.S. bonds and gold have all outperformed the S&P 500 with lower losses, or in the case of bonds and gold, gains in return.
This shows the power of dividends as well as the current fundamental attraction of gold given the huge drop in U.S. short-term interest rates and the pullback and drop in the U.S. dollar.
Crisis Investing with Utilities
U.S. utilities provide some of the most secure and predictable revenue. Most traditional utilities have monopolies in essential services, which means they come with oversight from public utilities commissions (PUCs).
The PUCs not only set rates, but also provide assurance in operating margins, capital spending allowances and a return on capital investments. This assures utilities can operate profitably while providing essential services such as electric power.
And it means that utilities will be able to invest in the equipment they need to sustain and expand their businesses.
The regulated business then has secured expectations of revenues and profits, which is ideal for investors during both the good and very challenging times. And many utilities also have unregulated businesses that operate outside of PUCs.
The unregulated side of utilities provides additional revenue and growth, which is particularly helpful during economic expansion.
NextEra Energy (NEE) and Eversource Energy (ES)
There are two utilities with positive performances year to date that operate in both the regulated and unregulated markets.
Source: Chart by Bloomberg
NextEra Energy and Eversource Energy Total Return
The first of my crisis investing picks is NextEra Energy (NYSE:NEE). It has been a favorite in my Profitable Investing since 2008 and has returned 534.3% since then for an average annual equivalent return of 17.2%.
The company provides regulated power to markets in Florida, which remains a dependable region. But its major strength comes from its massive unregulated businesses throughout the U.S. It specializes in renewable energy from wind and solar operations, making it one of the globe’s biggest clean energy companies.
NEE stock yields 2.4% and has returned 1.95% year-to-date.
My second pick is Eversource Energy (NYSE:ES) which has both regulated and unregulated businesses in local markets throughout New England. It provides power, natural gas and water to residential and business customers. It also has transmission facilities throughout the region that allows other generator companies to access for fee income.
And like for NextEra, Eversource has been ramping up its clean energy production capabilities including through newer wind turbine facilities.
Eversource has fared a bit better than NextEra with a return of 4.6%. And since it was added to my model portfolios in October 2018, it has returned 43.9% which is more than 3.1 times the return for the S&P Utilities Index and 5.8 times the return of the general S&P 500.
REITs
REITs tend to be more reliable investments. They offer tangible assets of land and buildings, which generate ample rent and lease income. And under tax code, they avoid corporate income taxes by paying out the majority of profits to shareholders.
Now, in the current lockdown mess, not all REITs are the same. Retail REITs are not in good shape, nor are hospitality REITs — both for good reason. But there are many, many other sectors and individual REITs which are doing very well this year.
Two such REITs are Digital Realty Trust (NYSE:DLR) and Easterly Government Properties (NYSE:DEA). Year to date, Digital Realty has returned 25.7%, while Easterly Government Properties has returned 15.4%.
Source: Chart by Bloomberg
Digital Realty and Easterly Government Properties Total Return
Digital Realty is benefitting from current remote work trends. The company has data centers all around the nation. And those centers are what power and sustain cloud computing and data storage along with processing of all of those Zoom (NASDAQ:ZM) video chats.
The stock has not only done well in 2020 — but since being added to my model portfolios in February 2018. It has returned 58.3%, more than 2.9 times the REIT market and 4.99 times the S&P 500. And it also yields 3%.
Easterly Government Properties has the U.S. government as its primary tenant. This brings a certainty for revenue during good and very bad times.
DEA stock yields 3.8%, and since I added it to my model portfolios in April 2018, it has returned 48.7%. That’s 3.1 times better than the REIT market and 6.3 times better than the S&P 500.
Is Now the Right Time to Buy Bonds?
Earlier I discussed the expanding bond buying by the Federal Reserve. Through the special vehicles with credit guarantees from the Treasury, the Fed is making massive buys of U.S. corporate and municipal bonds. It is doing this to both stabilize the bond and credit markets now, as well as working to drive down yields and credit costs for corporations, municipalities and other debt issuers.
From the end of 2008 through the end of 2019, corporate and municipal bonds generated returns of 103.6% and 72.7% respectively.
Source: Chart by Bloomberg
Municipal (White) and Corporate (Red) Bond Total Return
So now, like in the last decade, corporate and municipal bonds are great buys for income and gains over time. You’re investing right along with the Fed.
Corporate Buys
Two bond funds in my model portfolios are the BlackRock Credit Allocation Income Trust (NYSE:BTZ) and the Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT). Both have impressive collections of U.S. corporate bonds. BlackRock actively manages the bonds, while Vanguard does it synthetically following the BlackRock & Barclays Index.
Over the trailing four weeks, both have impressive performance. Vanguard is at 6.7% and BlackRock at 21.6%.
Vanguard yields 3.4% and is a buy in a tax-free account. BlackRock as a closed-end fund is at a discount to net asset value (NAV) by 5.3% making for an even bigger bargain. Yielding 7.6% it is a buy in a tax-free account.
Municipal Buys
In my model portfolios, I have one taxable municipal bond fund, the BlackRock Taxable Municipal Bond Trust (NYSE:BBN). It is at a discount to NAV of 0.9% yielding 5.8% and is a buy in a tax-free account.
Then there are three tax-free municipal bond funds all at discounts to NAV. These include the BlackRock Municipal Income Trust II (NYSE:BLE), Nuveen AMT-Free Municipal Credit Income Fund (NYSE:NVG) and Nuveen Municipal Credit Income Fund (NYSE:NZF). They yield a taxable equivalent yield of 7.8%, 8.2% and 8.1% respectively. All are buys in taxable accounts.
Gold
There are many reasons that gold is gaining — like the plunge in U.S. short-term interest rates. With the Fed dropping its target rate for Fed Funds to zero, yields have plunged.
This make gold all the cheaper to own — and desirable as a parking place over cash.
My recommended way to own gold is to do so in a gold investment that pays a dividend. Gold in and of itself pays nothing. And in addition, it costs to store gold — even for gold ETFs like the SPDR Gold Shares ETF (NYSEARCA:GLD) that charges 0.4% annually to service its synthetic gold holdings.
Franco-Nevada (NYSE:FNV), which I first recommended to my Profitable Investing subscribers in June 2019, is a company that doesn’t mine gold, nor does the company own or store it. Instead, it has acquired and continues to acquire interests including royalties in gold and some other precious resource production. So, as gold is brought to the market, it gets its cut as the gold is sold. And it does this week after week, month after month — year in and year out.
And it cuts its shareholders into its revenues with dividend checks. The checks are running at 25 cents per share and should rise next month to 26 cents which equates to a yield of 0.8%. That’s not much — but it beats getting charged to own gold or a gold ETF.
The shares including the dividends continue to deliver better returns. Year-to-date alone, Franco-Nevada has returned 27.5% compared to the GLD ETF at only 13%.
Source: Chart by Bloomberg
FNV (White) & GLD (Red) Total Return
And over the trailing year FNV has outperformed GLD with a return of 89.1% to GLD’s 34.2%.
Gold is worth owning right now. Buy Franco-Nevada and get paid a dividend to own it along the way.
Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps — and into safe, top-performing income investments. Neil’s new income program is a cash-generating machine … one that can help you collect $208 every day the market’s open. Neil does not have any holdings in the securities mentioned above.
The post 11 Stocks and Funds Perfect for Crisis Investing Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The regulated business then has secured expectations of revenues and profits, which is ideal for investors during both the good and very challenging times. Two such REITs are Digital Realty Trust (NYSE:DLR) and Easterly Government Properties (NYSE:DEA). DEA stock yields 3.8%, and since I added it to my model portfolios in April 2018, it has returned 48.7%.
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The regulated business then has secured expectations of revenues and profits, which is ideal for investors during both the good and very challenging times. Two such REITs are Digital Realty Trust (NYSE:DLR) and Easterly Government Properties (NYSE:DEA). DEA stock yields 3.8%, and since I added it to my model portfolios in April 2018, it has returned 48.7%.
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The regulated business then has secured expectations of revenues and profits, which is ideal for investors during both the good and very challenging times. Two such REITs are Digital Realty Trust (NYSE:DLR) and Easterly Government Properties (NYSE:DEA). DEA stock yields 3.8%, and since I added it to my model portfolios in April 2018, it has returned 48.7%.
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The regulated business then has secured expectations of revenues and profits, which is ideal for investors during both the good and very challenging times. Two such REITs are Digital Realty Trust (NYSE:DLR) and Easterly Government Properties (NYSE:DEA). DEA stock yields 3.8%, and since I added it to my model portfolios in April 2018, it has returned 48.7%.
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2020-04-22 00:00:00 UTC
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First Week of December 18th Options Trading For Easterly Government Properties (DEA)
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DEA
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https://www.nasdaq.com/articles/first-week-of-december-18th-options-trading-for-easterly-government-properties-dea-2020-04
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nan
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Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the December 18th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 240 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new December 18th contracts and identified one put and one call contract of particular interest.
The put contract at the $20.00 strike price has a current bid of 5 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.00, but will also collect the premium, putting the cost basis of the shares at $19.95 (before broker commissions). To an investor already interested in purchasing shares of DEA, that could represent an attractive alternative to paying $27.33/share today.
Because the $20.00 strike represents an approximate 27% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 88%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.25% return on the cash commitment, or 0.38% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Easterly Government Properties Inc, and highlighting in green where the $20.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $30.00 strike price has a current bid of 10 cents. If an investor was to purchase shares of DEA stock at the current price level of $27.33/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $30.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.14% if the stock gets called away at the December 18th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DEA shares really soar, which is why looking at the trailing twelve month trading history for Easterly Government Properties Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DEA's trailing twelve month trading history, with the $30.00 strike highlighted in red:
Considering the fact that the $30.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.37% boost of extra return to the investor, or 0.56% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 196%, while the implied volatility in the call contract example is 120%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $27.33) to be 36%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the REITs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DEA shares really soar, which is why looking at the trailing twelve month trading history for Easterly Government Properties Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DEA's trailing twelve month trading history, with the $30.00 strike highlighted in red: Considering the fact that the $30.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the December 18th expiration.
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Below is a chart showing DEA's trailing twelve month trading history, with the $30.00 strike highlighted in red: Considering the fact that the $30.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the December 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new December 18th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing DEA's trailing twelve month trading history, with the $30.00 strike highlighted in red: Considering the fact that the $30.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the December 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new December 18th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new December 18th contracts and identified one put and one call contract of particular interest. Below is a chart showing DEA's trailing twelve month trading history, with the $30.00 strike highlighted in red: Considering the fact that the $30.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options become available this week, for the December 18th expiration.
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cd1301d8-d575-418e-9162-662460dc33a7
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723429.0
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2020-04-17 00:00:00 UTC
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5 Ideal Dividend Stocks for New Investors
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DEA
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https://www.nasdaq.com/articles/5-ideal-dividend-stocks-for-new-investors-2020-04-17
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It is never too early or too late, and no one is too young to begin investing. I know this, as I began to learn as a small child. I started by learning the basics of how companies issue stock, and how stocks are then bought and sold on the exchanges. And my learning commenced with building a model portfolio that I would paper trade. Each day I would check the stock prices — which way back when were listed in the daily newspapers.
I would go on to open a small brokerage account and work with my own money — all supporting my learning experience. Of course, I would gain and lose along the way.
Back then, commissions were a lot steeper than the discounted — and even free — rates of today. So, my choices were more about what to buy and own. I had to have a high level of confidence to overcome the costs of buying and selling, which meant I had more “buy and own” in my portfolio.
I would later learn and appreciate the power of dividends, which bolstered my portfolio as they were credited to my account. And this appreciation has continued through to today. I remain firmly in favor of focusing on stocks that pay you well through good and rising dividend distributions.
Why Dividends Matter
This is an important lesson. Dividends continue to be one of the biggest sources of overall total return in the stock market. Take for example the performance of the S&P 500 over the trailing 20 years.
The index gained in price by 104%, but with dividends the return swells to 201.4% which is nearly double the price movement alone.
Source: Chart from Bloomberg
S&P 500 Total Return
That’s a big premium over just investing for price growth. And those dividends worked to cushion returns during bear markets over those same 20 years.
9 Asian Stocks to Buy for a Post-Coronavirus Recovery
For beginner investors, it’s not just about dividends. Investing should also contribute to learning more about the underlying companies behind the stocks. by investing in the right dividend stocks that are in distinct industries and markets, beginner investors will learn more about how business works.
Compass Diversified Holdings (NYSE:CODI)
Hercules Capital (NYSE:HTGC)
Kinder Morgan (NYSE:KMI)
NextEra Energy (NYSE:NEE)
Easterly Government Properties (NYSE:DEA)
I’ve put together a small collection of five stocks that pay dividends that range from close to the average of the S&P 500 to many multiples more. And they are in varied segments ranging from industrial and consumer products, technology, utilities, real estate investment trusts (REITs) and the energy market.
Dividend Stocks: Compass Diversified Holdings (CODI)
Source: Chart from Bloomberg
Compass Diversified Holdings Total Return
Dividend Yield: 9.5%
I start with Compass Diversified Holdings. This is a holding company which owns a collection of industrial and consumer products companies which it buys, owns and sometimes sells. And along the way, the company collects lots of cash flows from its underlying companies.
In turn, it pays a lion’s share of the profits in the form of a big dividend. It currently yields 9.5%.
And yes, the stock did selloff in March with the dash for cash. But still — over the trailing five years with that ample dividend it has returned 34.4% for an average annual equivalent return of 6.1%.
Hercules Capital (HTGC)
Source: Chart from Bloomberg
Hercules Capital Total Return
Dividend Yield: 14.2%
Next is Hercules Capital. This is a Silicon Valley-headquartered firm which seeks out new and developing technology companies in its neighborhood and beyond. It works to finance their developments and takes equity participation. Then, Hercules provides guidance in their development, including eventual exit strategies through company sales and initial public offerings (IPOs). It too pays a bigger dividend which currently yields 14.2%.
Hercules is viewed as a financial business lender, not an equity investor. But it’s involved in promising tech companies, including those in biotech, giving it a particular value.
9 Robust Stocks to Buy to Survive a Bear Market
And despite the fall in price in March, it is still positive in return including that dividend income.
Kinder Morgan (KMI)
Source: Chart from Bloomberg
Kinder Morgan Total Return
Dividend Yield: 7%
Then, we move on to the energy market in the reliable dividend-paying segment of oil and gas pipelines. My pick here is Kinder Morgan. Kinder Morgan owns and operates a massive network of pipeline and related oil and gas infrastructure that is crucial to the petroleum industry in the U.S.
And while oil prices have plunged with skirmishes between OPEC and its allies, petroleum isn’t going away. It’s a must-have for the U.S. and global economies. It generates an increasing amount of revenues and profits which in turn it pays a portion of in a dividend yielding 7%.
Kinder Morgan’s stock got sold off with the general S&P 500 in March, which makes it a particular bargain right now. You can buy the stock right now at a 5% discount to its intrinsic value (book value) which would be very difficult to replicate in its vast pipeline network.
NextEra Energy (NEE)
Source: Chart from Bloomberg
NextEra Energy Total Return
Dividend Yield: 2.4%
Next is one of the most impressive of U.S. power utility provides — NextEra Energy. This company provides regulated power to customers in Florida. And it also provides unregulated wind and solar-generated power throughout North America and beyond.
This combination of reliable cash flows from its regulated business and growth from the unregulated business has been generating ample gains in the stock price along with a modest dividend yielding 2.4%.
7 Bank Stocks to Watch as Earnings Season Heats Up
The total return of this defensive utility is impressive over the past five years, running at 159.9% for an average annual equivalent return of 21%.
Easterly Government Properties (DEA)
Source: Chart from Bloomberg
Easterly Government Properties Total Return
Dividend Yield: 3.9%
Last up is a favorite REIT that is perhaps the most defensive property landlord in the U.S. market. Easterly Government Properties leases properties to the U.S. government.
And while other tenants of REITs are indeed in jeopardy with the current economic lockdowns, the U.S. Department of Treasury will keep cutting rent checks to Easterly. This ensures that the dividends will be paid. And yielding 3.9%, the stock is a good payer in the current market.
Easterly is a good and reliable dividend payer. But it has also generated steady gains over the past five years alone with a total return of 109.9% for an average annual equivalent return running at 16%. And it is a good value. The stock is only valued at 1.9 times its underlying book value of all of those dependable government-leased properties.
Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps — and into safe, top-performing income investments. Neil’s new income program is a cash-generating machine … one that can help you collect $208 every day the market’s open. Neil does not have any holdings in the securities mentioned above.
The post 5 Ideal Dividend Stocks for New Investors 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.
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Compass Diversified Holdings (NYSE:CODI) Hercules Capital (NYSE:HTGC) Kinder Morgan (NYSE:KMI) NextEra Energy (NYSE:NEE) Easterly Government Properties (NYSE:DEA) I’ve put together a small collection of five stocks that pay dividends that range from close to the average of the S&P 500 to many multiples more. Easterly Government Properties (DEA) Source: Chart from Bloomberg Easterly Government Properties Total Return Dividend Yield: 3.9% Last up is a favorite REIT that is perhaps the most defensive property landlord in the U.S. market. The post 5 Ideal Dividend Stocks for New Investors appeared first on InvestorPlace.
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Compass Diversified Holdings (NYSE:CODI) Hercules Capital (NYSE:HTGC) Kinder Morgan (NYSE:KMI) NextEra Energy (NYSE:NEE) Easterly Government Properties (NYSE:DEA) I’ve put together a small collection of five stocks that pay dividends that range from close to the average of the S&P 500 to many multiples more. Easterly Government Properties (DEA) Source: Chart from Bloomberg Easterly Government Properties Total Return Dividend Yield: 3.9% Last up is a favorite REIT that is perhaps the most defensive property landlord in the U.S. market. The post 5 Ideal Dividend Stocks for New Investors appeared first on InvestorPlace.
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Compass Diversified Holdings (NYSE:CODI) Hercules Capital (NYSE:HTGC) Kinder Morgan (NYSE:KMI) NextEra Energy (NYSE:NEE) Easterly Government Properties (NYSE:DEA) I’ve put together a small collection of five stocks that pay dividends that range from close to the average of the S&P 500 to many multiples more. Easterly Government Properties (DEA) Source: Chart from Bloomberg Easterly Government Properties Total Return Dividend Yield: 3.9% Last up is a favorite REIT that is perhaps the most defensive property landlord in the U.S. market. The post 5 Ideal Dividend Stocks for New Investors appeared first on InvestorPlace.
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Compass Diversified Holdings (NYSE:CODI) Hercules Capital (NYSE:HTGC) Kinder Morgan (NYSE:KMI) NextEra Energy (NYSE:NEE) Easterly Government Properties (NYSE:DEA) I’ve put together a small collection of five stocks that pay dividends that range from close to the average of the S&P 500 to many multiples more. Easterly Government Properties (DEA) Source: Chart from Bloomberg Easterly Government Properties Total Return Dividend Yield: 3.9% Last up is a favorite REIT that is perhaps the most defensive property landlord in the U.S. market. The post 5 Ideal Dividend Stocks for New Investors appeared first on InvestorPlace.
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3aea47bb-69f0-469f-b5d3-901497919c3d
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723430.0
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2020-04-02 00:00:00 UTC
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Easterly Government Properties Reaches Analyst Target Price
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-reaches-analyst-target-price-2020-04-02
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nan
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nan
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In recent trading, shares of Easterly Government Properties Inc (Symbol: DEA) have crossed above the average analyst 12-month target price of $25.00, changing hands for $25.06/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets contributing to that average for Easterly Government Properties Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $22.00. And then on the other side of the spectrum one analyst has a target as high as $28.00. The standard deviation is $3.0.
But the whole reason to look at the average DEA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DEA crossing above that average target price of $25.00/share, investors in DEA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $25.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Easterly Government Properties Inc:
RECENT DEA ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 2 2 2 3
Buy ratings: 0 0 0 1
Hold ratings: 2 3 3 1
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 2.0 2.2 2.2 1.6
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DEA — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of Easterly Government Properties Inc (Symbol: DEA) have crossed above the average analyst 12-month target price of $25.00, changing hands for $25.06/share. And so with DEA crossing above that average target price of $25.00/share, investors in DEA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $25.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average DEA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Easterly Government Properties Inc (Symbol: DEA) have crossed above the average analyst 12-month target price of $25.00, changing hands for $25.06/share. But the whole reason to look at the average DEA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DEA crossing above that average target price of $25.00/share, investors in DEA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $25.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with DEA crossing above that average target price of $25.00/share, investors in DEA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $25.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Easterly Government Properties Inc (Symbol: DEA) have crossed above the average analyst 12-month target price of $25.00, changing hands for $25.06/share. But the whole reason to look at the average DEA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Easterly Government Properties Inc (Symbol: DEA) have crossed above the average analyst 12-month target price of $25.00, changing hands for $25.06/share. But the whole reason to look at the average DEA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DEA crossing above that average target price of $25.00/share, investors in DEA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $25.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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8d86080c-d92f-4f2e-a668-bb3640b41f63
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723431.0
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2020-03-12 00:00:00 UTC
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DEA Makes Notable Cross Below Critical Moving Average
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DEA
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https://www.nasdaq.com/articles/dea-makes-notable-cross-below-critical-moving-average-2020-03-12
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nan
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nan
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $21.61, changing hands as low as $19.50 per share. Easterly Government Properties Inc shares are currently trading off about 3.9% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $17.205 per share, with $26.02 as the 52 week high point — that compares with a last trade of $21.86.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $21.61, changing hands as low as $19.50 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.205 per share, with $26.02 as the 52 week high point — that compares with a last trade of $21.86. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $21.61, changing hands as low as $19.50 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.205 per share, with $26.02 as the 52 week high point — that compares with a last trade of $21.86. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $21.61, changing hands as low as $19.50 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.205 per share, with $26.02 as the 52 week high point — that compares with a last trade of $21.86. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $21.61, changing hands as low as $19.50 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $17.205 per share, with $26.02 as the 52 week high point — that compares with a last trade of $21.86. Easterly Government Properties Inc shares are currently trading off about 3.9% on the day.
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9f0aa931-2b24-43b1-bbe1-851698759c05
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723432.0
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2020-03-02 00:00:00 UTC
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Ex-Dividend Reminder: Easterly Government Properties, Hancock Whitney and Blackrock
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-easterly-government-properties-hancock-whitney-and-blackrock-2020-03
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 3/4/20, Easterly Government Properties Inc (Symbol: DEA), Hancock Whitney Corp (Symbol: HWC), and Blackrock Inc (Symbol: BLK) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc will pay its quarterly dividend of $0.26 on 3/26/20, Hancock Whitney Corp will pay its quarterly dividend of $0.27 on 3/16/20, and Blackrock Inc will pay its quarterly dividend of $3.63 on 3/23/20. As a percentage of DEA's recent stock price of $24.06, this dividend works out to approximately 1.08%, so look for shares of Easterly Government Properties Inc to trade 1.08% lower — all else being equal — when DEA shares open for trading on 3/4/20. Similarly, investors should look for HWC to open 0.81% lower in price and for BLK to open 0.78% lower, all else being equal.
Below are dividend history charts for DEA, HWC, and BLK, showing historical dividends prior to the most recent ones declared.
Easterly Government Properties Inc (Symbol: DEA):
Hancock Whitney Corp (Symbol: HWC):
Blackrock Inc (Symbol: BLK):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.32% for Easterly Government Properties Inc, 3.24% for Hancock Whitney Corp, and 3.11% for Blackrock Inc.
In Monday trading, Easterly Government Properties Inc shares are currently up about 1.2%, Hancock Whitney Corp shares are down about 0.6%, and Blackrock Inc shares are up about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of DEA's recent stock price of $24.06, this dividend works out to approximately 1.08%, so look for shares of Easterly Government Properties Inc to trade 1.08% lower — all else being equal — when DEA shares open for trading on 3/4/20. Looking at the universe of stocks we cover at Dividend Channel, on 3/4/20, Easterly Government Properties Inc (Symbol: DEA), Hancock Whitney Corp (Symbol: HWC), and Blackrock Inc (Symbol: BLK) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for DEA, HWC, and BLK, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/4/20, Easterly Government Properties Inc (Symbol: DEA), Hancock Whitney Corp (Symbol: HWC), and Blackrock Inc (Symbol: BLK) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc (Symbol: DEA): Hancock Whitney Corp (Symbol: HWC): Blackrock Inc (Symbol: BLK): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DEA's recent stock price of $24.06, this dividend works out to approximately 1.08%, so look for shares of Easterly Government Properties Inc to trade 1.08% lower — all else being equal — when DEA shares open for trading on 3/4/20.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/4/20, Easterly Government Properties Inc (Symbol: DEA), Hancock Whitney Corp (Symbol: HWC), and Blackrock Inc (Symbol: BLK) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc (Symbol: DEA): Hancock Whitney Corp (Symbol: HWC): Blackrock Inc (Symbol: BLK): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DEA's recent stock price of $24.06, this dividend works out to approximately 1.08%, so look for shares of Easterly Government Properties Inc to trade 1.08% lower — all else being equal — when DEA shares open for trading on 3/4/20.
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As a percentage of DEA's recent stock price of $24.06, this dividend works out to approximately 1.08%, so look for shares of Easterly Government Properties Inc to trade 1.08% lower — all else being equal — when DEA shares open for trading on 3/4/20. Looking at the universe of stocks we cover at Dividend Channel, on 3/4/20, Easterly Government Properties Inc (Symbol: DEA), Hancock Whitney Corp (Symbol: HWC), and Blackrock Inc (Symbol: BLK) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for DEA, HWC, and BLK, showing historical dividends prior to the most recent ones declared.
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fb8f253c-d286-4fd0-9c6c-7fa0120f6e3d
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723433.0
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2019-12-05 00:00:00 UTC
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2 Overlooked Income-Generating Assets for the Smart Investor
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DEA
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https://www.nasdaq.com/articles/2-overlooked-income-generating-assets-for-the-smart-investor-2019-12-05
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nan
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nan
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When it comes to investing for income, there are plenty of dividend-paying stocks and an even larger and more varied assortment of bonds paying all sorts of coupon and interest payments.
Source: Shutterstock
But beyond the basic dividend stocks and interest-paying bonds there are plenty of assets out there that any individual investor can buy into for higher-income streams. I’m going to present two of them, which I have been following and recommending for years. I have also been showcasing these assets in my Profitable Investing, which is about to celebrate 31 years of publication.
So, read on for two great overlooked sources for more income for the smarter investor.
U.S. Government Cash
Americans paid the federal government some in fiscal 2018. But now there’s a way to get Uncle Sam to cut you monthly checks for a great stream of income.
How? By owning shares in properties leased by federal, state and local governments.
This arrangement was first allowed under the . In addition, the structure was further reformed under the Tax Reform Act of October 1986 passed by Congress and signed into law by President Ronald Reagan.
Behind these arrangements are real estate investment trusts that own properties and in turn lease them to governments. These REITs pass through the majority of profits to you in the form of quarterly distribution checks or credits to your brokerage account.
And with Uncle Sam as a tenant, you’ll be all the more secure as his checks are as good as the U.S. Treasury. If you’re leasing property assets to the U.S. government, I have a very good REIT for you to buy for more income.
Income-Generating Assets: Easterly Government Properties (DEA)
Source: Chart by Bloomberg Finance
Easterly Government Properties (NYSE:) was founded back in 2011 as a private company by a collection of folks with considerable experience in the government leasing market. One of those experts was the former commissioner of the General Services Administration’s Public Buildings Service, which oversees all building facilities for the federal government.
The real estate company went public in 2015 as a REIT. And since then, shareholders have enjoyed a total return of 94.7% which equates to an average annual return of 14.8%.
It has a wide swath of properties that are nearly full. Most are in longer-term lease agreements. This provides a great deal of stability, not just with government officials as its tenants — but with the certainty of low turnover for many years to come.
Funds from operations have been expanding over the trailing four quarters by 6.8%. This figure measures revenues generated from its actual business of leasing properties and excludes other ancillary profits. Its operating profits based on FFO are currently running at 9.3% making its leases very attractive for investors. And with strong and expanding cost controls, I would project that the profitability of the portfolio will improve even further.
The dividend is sitting at 4.5% which is above the average for the overall U.S. REIT market as tracked by the Bloomberg U.S. REIT Index. And its dividend should see some further growth. Its property leases and cost controls have risen over the past trailing three years by 4.9% on an average annual basis.
Income From Idle Real Estate
While the old adage about real estate — that it always has value — still holds, there are plenty of parcels and buildings that just sit idle. And idle real estate is really just dead money.
But it doesn’t have to remain dead money. It can be revived to generate plenty of income flowing into your pockets — even if you don’t own the land or the buildings.
One of the best ways to make idle real estate generate cash is to use it for temporary storage facilities.
The process is one of the simplest in the real estate market. For owners of suburban or rural land, this is a great intermediate step before developing or selling because storage facilities are easy to construct and easy to take down.
Simply grade the land. Bring in very basic utilities and pour some concrete. Then add modular storage units and set up fencing. When all that’s done, the facility is pretty much ready to generate revenue. And if and when the property is needed for a higher purpose, reversing the facility is relatively straightforward.
In urban settings, many buildings can be retrofitted for storage. Stripping out drywall and turning a building into a shell is the first step. And like for rural land, the reversal of removing modular units can be done with relative ease.
This can be done if you’re the owner of the properties. Or if not, there are a collection of REITs that are in this market that take more of an active role in property development. And in turn, these plots of land provide the owner with plenty of income.
Americans and Self-Storage Facilities
One of the reasons self-storage companies are booming is because Americans are in love with having more stuff. Retail sales in the U.S. .
From the recent lows of 2015-2016 when consumers were only adding some 2% or less, 2018-2019 has seen sales gains running more than double at an average rate of 4.2%.
And with consumers remaining comfortable, more stuff will be finding its way into U.S. households.
But U.S. households only have so much space for more stuff. This brings in the self-storage market that provides the extra space. Materialism has created an industry that’s topping $38 billion with revenue gains running at an average of 7.7% from 2012 to date.
Right now, . And it isn’t just about stuff crowding out homes. More than 40 million people in the U.S. move each year. That’s about 14% of the population on the move annually. That means that besides the hoarders, movers are also contributing to the market for self-storage.
And self-storage facilities have additional benefits. They often allow automatic monthly payments off a credit or debit card.
Many customers sign up and forget, allowing fees to just keep flowing. And many self-storage companies set up accounts so that the longer the units are rented, the higher the rental rates rise. This keeps customers focused on their contracts.
A Fractured Industry
On the other hand, the ease of developing storage units has led to a very fractured business. With so few barriers to entry, there are many mom-and-pop operations offering storage space facilities on their idle land or in vacant buildings.
In fact, right now the majority of all storage companies are locally owned and managed. This proves that idle property can be transformed into income-generating investments.
But there is a movement to make this even more profitable as larger companies are moving to change and improve the patchwork of locally run storage facilities.
Self-storage facilities are going through a massive consolidation. Recognizing an opportunity, bigger companies are buying up the mom-and-pop facilities. And they are also rolling up smaller companies to gain scale. When independent operators or smaller companies want to keep their land and facilities, publicly listed storage companies offer them the ability to outsource management and marketing with national branding. That’s where this next REIT comes in.
Life Storage (LSI)
Source: Chart by Bloomberg Finance
Life Storage (NYSE:) has been in the self-storage market since 1985 when it was known as Uncle Bob’s Self Storage. It has facilities that span 29 states and operates over 800 properties.
It continues to acquire properties from the fractured market that I note above. And it also provides management and branding services to local mom-and-pop facilities.
This REIT also has led the way in customer accessibility. It built out an online and app-based platform that is touchless. This means that customers can find and sign contracts without any brokers or salespeople. This has led to great customer approval, particularly with younger customers.
Life Storage has generated a return for investors of 386.6% over the trailing ten years, which equates to an average annual return of 17.1%. Its FFO return is running at 12.6% and has been generally climbing each quarter since 2016.
The dividend distribution is running currently at $1.00 per share and has been rising over the trailing five years by an average rate of 8%.
Life Storage is an attractive play on the growing trend to transform idle land into income producing properties.
Now that I have shared some of my ideas for income-generating assets, you might take a look at the rest of my research and recommendations in my . In addition, you can also sign up for my free weekly ezine — the Income Investors Digest. And for a series of income ideas, take a look at my recently published book, Income for Life, which covers 65 income streams in nearly 400 pages that anyone can get. And I’ve written them all up in a simple and engaging way.
Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps — and into . Neil’s new income program is a cash-generating machine … one that can help you collect $208 every day the market’s open. Neil does not have any holdings in the securities mentioned above.
The post 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.
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Income-Generating Assets: Easterly Government Properties (DEA) Source: Chart by Bloomberg Finance Easterly Government Properties (NYSE:) was founded back in 2011 as a private company by a collection of folks with considerable experience in the government leasing market. This provides a great deal of stability, not just with government officials as its tenants — but with the certainty of low turnover for many years to come. And idle real estate is really just dead money.
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Income-Generating Assets: Easterly Government Properties (DEA) Source: Chart by Bloomberg Finance Easterly Government Properties (NYSE:) was founded back in 2011 as a private company by a collection of folks with considerable experience in the government leasing market. This provides a great deal of stability, not just with government officials as its tenants — but with the certainty of low turnover for many years to come. And idle real estate is really just dead money.
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Income-Generating Assets: Easterly Government Properties (DEA) Source: Chart by Bloomberg Finance Easterly Government Properties (NYSE:) was founded back in 2011 as a private company by a collection of folks with considerable experience in the government leasing market. This provides a great deal of stability, not just with government officials as its tenants — but with the certainty of low turnover for many years to come. And idle real estate is really just dead money.
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Income-Generating Assets: Easterly Government Properties (DEA) Source: Chart by Bloomberg Finance Easterly Government Properties (NYSE:) was founded back in 2011 as a private company by a collection of folks with considerable experience in the government leasing market. This provides a great deal of stability, not just with government officials as its tenants — but with the certainty of low turnover for many years to come. And idle real estate is really just dead money.
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2019-11-07 00:00:00 UTC
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Easterly Government Properties (DEA) Q3 2019 Earnings Call Transcript
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https://www.nasdaq.com/articles/easterly-government-properties-dea-q3-2019-earnings-call-transcript-2019-11-07
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Image source: The Motley Fool.
Easterly Government Properties (NYSE: DEA)
Q3 2019 Earnings Call
Nov 06, 2019, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the Easterly Government Properties third-quarter 2019earnings call [Operator instructions] Please note this conference is being recorded. I would now like to turn the conference over to your host, Lindsay Winterhalter, vice president, investor relations. Please go ahead.
Lindsay Winterhalter -- Vice President, Investor Relations
Good morning. Before the call begins, please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is making this statement for the purpose of complying with the safe harbor provisions.
Although the company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, they can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those items contained in Item 1A, Risk Factors of its annual report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019, and in its other SEC filings. The company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations, funds from operations as adjusted and cash available for distribution.
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You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package on the Investor Relations page of the company's website at ir.easterlyreit.com. I would now like to turn the conference call over to Darrell Crate, chairman of Easterly Government Properties.
Darrell Crate -- Chairman of Easterly Government Properties
Thank you, Lindsay. Good morning, everyone, and thank you for joining us for this third-quarter conference call. Today, in addition to Lindsay, I'm also joined by Bill Trimble, the company's CEO; and Meghan Baivier, the company's CFO and COO. It was a strong quarter.
Each area of our business performed well. We made progress on milestones that we expect will deliver solid performance over the long term. Our bull's-eye properties performed well. The acquisition pipeline is robust, which we expect will allow us to deliver on our $200 million plus target for the next several years, while being selective.
Our development effort progresses well with the delivery of FDA-Alameda and our two additional FDA laboratories under development and on schedule. And our balance sheet is well-positioned to support all these growth initiatives. It is our goal to deliver 2% to 3% annual FFO growth over the long term to shareholders, along with the dividend, which today is approximately 5%. We believe this provides an attractive opportunity, especially given that we have the highest quality tenants with our rents backed by the full facing credit of the United States government.
As our long-term shareholders know, our predecessors founding almost 10 years ago, our mission is to be the partner of choice to the federal government, especially in mission-critical assets. All of our people understand that our enabling the U.S. government to achieve its mission with facilities that support its workforce is the pathway to being the best partner. We strive to be our best for the FBI, the DEA and the VA, along with 32 other agencies each and every day.
In doing so, we serve our tenant and build value for our shareholders. With that, I thank you for your time this morning and will turn the call over to Bill to share more detail on the developments in the quarter.
Bill Trimble -- Chief Executive Officer
Thanks, Darrell, and good morning. Thank you for joining us for our third-quarterearnings call This is another great quarter for the acquisitions team here at Easterly. We continue to deliver on our pipeline of actionable opportunities with the acquisition of nearly 170,000 square foot Environmental Protection Agency regional headquarters in Lenexa, Kansas.
This single tenant GSA-leased office building was originally constructed in 2007 and underwent a large-scale renovation to suit for the specific use of the EPA in 2012. At that point, the facility received a lead goal for new construction and a lead platinum certification for existing buildings. This facility was also awarded the ENERGY STAR with an impressive score of 94. The building is 100% occupied by the EPA through October of 2027 under its original 15-year lease, which has a five-year renewal option, thus potentially carrying the term through October of 2032.
An acquisition like this is the perfect marriage of our bull's-eye strategy and our commitment to good environmental stewardship through the ownership and management of a green real estate portfolio. Further, subsequent to quarter-end, Easterly acquired the U.S. Citizenship and Immigration Services facility in Tustin, California located in Orange County. This recently LEED-certified, fully renovated to suit 67,000 square foot facility is 100% leased under a brand-new 15-year lease, which will expire in 2034.
The extensive renovations ensure the tenant is receiving an optimal working space for their highly important mission. Through these two accretive acquisitions, we have not only extended our average remaining lease term, but we have also reduced the average age of the company's overall portfolio. In addition, the Easterly team is nearing its stated acquisition goal of $200 million for 2019. And I think you can expect to see us continue to deliver on this goal for the remainder of the calendar year.
This was also an exciting quarter for the development side of the house, led by our vice chairman, Mike Ibe. We were pleased to deliver the brand-new state-of-the-art FDA laboratory in Alameda, California this August. FDA-Alameda is now the newest of the 13 regional FDA laboratories located strategically throughout the country. Now that we've completed the work at FDA-Alameda, the government has reimbursed us for our outstanding lump sum expenses and has commenced a brand-new 20-year lease, which carries the term to August of 2039.
This project completed on schedule and on budget is another major success for our team. The laboratories at FDA-Alameda are extremely sophisticated, even compared to private sector, requiring a top-tier developer, architect and general contractor in order to construct and deliver. Our decades of experience and our strong partnerships with the government and our builders allowed us to provide a state-of-the-art facility to the U.S. government so that they can fulfill an absolutely critical mission for the safety and security of the American public.
Continuing with development, this quarter marks the closing on our existing property for the future redevelopment of the FDA-Atlanta regional laboratory. As mentioned, this is a wonderful opportunity for us, and we are honored, once again, to serve as the partner of choice to the U.S. government. FDA-Atlanta at 162,000 square feet will be over twice the size of the FDA-Alameda project.
The state-of-the-art facility is expected to have both laboratory and office space for the Atlanta District Office as well as the Southeast Food and Feed Laboratory and the Southeast Tobacco Laboratory. The Atlanta District Office oversees the regulatory operations within the Atlanta region, while the Southeast Food and Feed Laboratory provides laboratory testing and regulation for the region as well as research into new methodologies and regulatory areas within the FDA. The facility is expected to house 4 separate laboratories for nutritional analysis, chemistry, microbiology and tobacco. Once this project is delivered, the GSA will commence its noncancelable 20-year lease for the beneficial use of the FDA.
Starting with the delivery of FEMA-Tracy in 2018, followed by FDA-Alameda in 2019 and then the anticipated deliveries of FDA-Lenexa in 2020 and FDA-Atlanta in 2021 or '22, Easterly has started to establish a pattern of delivering a project a year, a pattern we hope to continue for years to come. We are taking advantage of these opportunities at attractive yields with long-term lease duration starting on day one. So we are well-positioned to provide long-term predictable financial results for our shareholders. And finally, turning to lease renewals.
We are pleased to report we have signed a new lease with the GSA for the FBI field office located in Richmond, Virginia. This new lease, which will go into effect on January of 2021, will be for 20 years, 15 years firm, which carries the term through 2041. This is a center of the bull's-eye property, and we were able to earn highly attractive releasing spreads in this location. The bull's-eye renewal thesis was unequivocally demonstrated through this lease renewal exercise with the federal government, and it is our pleasure to continue to serve as the government's landlord at this mission-critical facility.
The success is also reflective of our asset management team demonstrating their differentiated skills and abilities to work hand-in-hand with the U.S. government to continue to provide an asset that meets the everyday needs of these important agencies. To summarize, growth at Easterly continues. The square footage of our portfolio has tripled since the time of IPO.
Our company's market cap has grown by nearly 4 times and our float by over 6.5 times over that same time frame, thus offering greater liquidity to our new and existing investors. Prudent management of our balance sheet has increased the capacity to accretively acquire and develop assets. Our growth and scale has allowed us to diversify the portfolio with no single asset of a near-term expiration representing more than 2.4% of the total portfolio. And we continue to grow the overall NAV of the portfolio as the asset management team works with the U.S.
government on tenant-funded improvements. Further, with the stability of tenant occupancy superior to that of our net lease peers, we believe this vehicle for growth will only continue over time. There's a lot to be proud of at Easterly, and I thank you again for your partnership and commitment to our investment thesis. I'll turn the call over to Meghan to discuss the company's quarterly financial results.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Thank you, Bill. Good morning, everyone. Easterly's unique portfolio and business strategy allowed us in the third quarter to once again consistently post strong earnings this time against the backdrop of increasing market uncertainty and volatility. As you saw in our earnings release for the third quarter, net income per share on a fully diluted basis was $0.01.
FFO per share on a fully diluted basis was $0.29. FFO as adjusted per share on a fully diluted basis was $0.29. And our cash available for distribution was $20.7 million. As of September 30, we owned 68 operating properties comprising approximately 6.3 million square feet of commercial real estate with two additional projects totaling 220,000 square feet under development or in design.
The weighted average age of our portfolio was 12.7 years. It is through the acquisition of young, mission-critical bull's-eye properties and the delivery of our latest state-of-the-art FDA laboratory project in Alameda, California, that we were able to reduce the age of our portfolio again quarter over quarter. Looking back to our IPO, while 4.5 years has passed, our portfolio has only aged on a weighted average basis by 1.8 years. For these same reasons, and even with time working against us, we were also able to lengthen the weighted average remaining lease term quarter over quarter from 7.4 to 7.6 years.
Our portfolio has grown from 56 to 68 properties since this time last year, representing approximately 30% growth in the overall size of the company's portfolio based on square footage. By achieving our stated goal to meaningfully scale the portfolio, we have created a more diversified stream of cash flows supporting the company's operations, earnings predictability and, ultimately, its dividend. Given the superior credit quality of our primary tenant, the duration of the government's enduring missions within our facilities and the prolonged nature of the average remaining lease term, we believe these factors give us unique visibility toward the future cash flows of this portfolio. Turning to the balance sheet.
At quarter end, the company had total indebtedness of $908.6 million with a fully available $450 million line of credit for future acquisitions and development-related expenses. As of September 30, Easterly's net debt to total enterprise value was 32.3% and its adjusted net debt to annualized quarterly EBITDA ratio was six times. Meaningful progress on our development projects will bring higher levels of reported leverage as we near project completion. Adjusted leverage, in part, neutralizes this leverage drag and at six times demonstrates the strength of the balance sheet and available dry powder as we continue to pursue our target of $200 million of acquisitions this year and next.
As part of our goal to purchase properties through just-in-time funding, the company was active on its ATM program throughout the third quarter and subsequent to quarter end. Since June 30 of this year, the company has issued 4.3 million shares of common stock, raising approximately $86.3 million in total gross proceeds at a weighted average price of $20.05. During the third quarter, the company closed and funded the previously announced private placement of $275 million principal amount of unregistered fixed rate senior unsecured notes. The second trip to the unsecured debt private placement market solidified existing partnerships and initiated strong relationships with new lenders.
The weighted average maturity of the notes was 12.4 years at the time of closing, and the weighted average interest rate is an impressive 3.85%. Extending the company's liabilities at such an attractive fixed rate positions the company for future growth by deploying capital accretively into acquisitions and development opportunities. As Darrell mentioned earlier, we achieved the majority of our growth externally through accretive acquisitions and opportunistic nonspeculative development projects. As such, efficient management of the company's balance sheet is among our top priorities, and I am pleased to have at quarter end six times adjusted leverage with a weighted average interest rate of 3.8% and a weighted average maturity of 8.3 years.
I will remind you, this compares favorably to our weighted average remaining lease term of 7.6 years. Turning to our earnings guidance. For the 12 months ending December 31, 2019, the company is maintaining its guidance for FFO per share on a fully diluted basis of $1.18 to $1.20. This guidance is based on the company completing $200 million of acquisitions, separate and apart from the January 2019 closing of the final three properties in the 14-property portfolio and $75 million to $100 million of gross development-related investment in the year.
The company is also introducing guidance for FFO per share on a fully diluted basis for the 12 months ending December 31, 2020, of $1.22 to $1.24. The midpoint of this guidance is based on the company completing $200 million of acquisitions and $40 million to $50 million of gross development-related investment in the year. From midpoint to midpoint, this 2020 guidance represents approximately 3% growth from our 2019 guidance, in line with our long-term goal of delivering 2% to 3% annual earnings growth to investors. We believe that long-term steady growth paired with a secure, sector-leading dividend is a recipe for consistently improving our cost of capital, and we strive to achieve this combination again in 2020.
With that, I will turn the call back to Stacy.
Questions & Answers:
Operator
[Operator instructions] Our first question comes from Michael Carroll with RBC Capital Markets.
Mike Carroll -- RBC Capital Markets -- Analyst
Bill, can you talk a little bit about what you're seeing in the acquisition market today? I know that you previously said that there has been more broker transactions coming in kind of looking within this space. I mean how does that impact your volume and your pricing on these types of deals?
Bill Trimble -- Chief Executive Officer
Thanks for the question. I think I will say that we are seeing more brokerage opportunities. But I think recently, we've also seen some more off-market opportunities as well. And stepping back and looking at our pricing, I think the supply is very strong.
So Michael, I feel really good about that. I'd say that we've probably seen 10 to 15 basis point change in the market over the last nine to 10 months. And so what we were seeing 650s, I think we're seeing sort of in the 630, 635 category, but I'd also say that the properties that we've been purchasing, as you've noted, have been brand-new, state-of-the-art facilities that have very long lease terms. So that might be shading it a little bit.
But our pipeline remains robust, and we are seeing some more off-market opportunities now as well.
Mike Carroll -- RBC Capital Markets -- Analyst
Great. And then if you're looking about some of your assets that are within your portfolio that are more of the plain vanilla, I guess, what are you kind of thinking about in terms of asset sales. Is that something that you want to pursue right now? Or are you happy holding those properties here in the near term?
Bill Trimble -- Chief Executive Officer
Well, I think as you've seen, we've renewed, certainly, the largest of our plain vanilla assets with very long lease terms going forward. So we have a number of years, the management team can decide what we're going to do there. I think we're pleased with everything we have in the portfolio. But as I've mentioned before, obviously, we are always trying to refresh the portfolio, add new bull's-eye properties was because we believe in the long term they're going to be the most valuable.
So I think no surprises there. As we see opportunities, we'll certainly take advantage of.
Mike Carroll -- RBC Capital Markets -- Analyst
OK. Great. And last one for me. Can you talk a little bit about the GSA build-to-suit opportunities? And then I guess, Meghan, does your guidance range assume any other new starts this year? Or does it just assume that you complete the projects that are in your pipeline and start the project Atlanta?
Bill Trimble -- Chief Executive Officer
Well, I think from the build-to-suit opportunities, we are in a unique space in that the government decides when they want something to be built. We're not going out and doing speculative development. So there's two sides to that coin. I think we have mentioned that the FDA has 13 of these facilities throughout the country.
The laboratories, through Mike Ibe and team's hard work, we've been awarded the first three of them. I would not be surprised to see us get awarded more of those in the future. I don't think I can guarantee we're going to get every single one of them. As we've mentioned before, there are some FBI opportunities.
There's some FEMA opportunities. There's some stuff out there. So we will be certainly attuned to what's happening there. And right now, I think we're on a terrific run rate of coming up and delivering one of these new projects every year, and we hope to stay in that way for quite some time.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
And Mike, our guidance contemplates the completion of Lenexa and a very small level of initial investment in Atlanta, but nothing further.
Operator
Our next question comes from Merrill Ross with Compass Point.
Merrill Ross -- Compass Point -- Analyst
You know I got asked on the lease renewal enrichment, what was the spread
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Merrill, this is Meghan. We're really excited about the outcome at Richmond. First of all, that renewal has been completed over a year in advance of expiration. So we're going to have good time to complete the TI work before the commencement of that lease.
And while that TI work is not yet fully determined by the government, we are expecting that lease on a net effective basis to roll up in the area of 25%.
Merrill Ross -- Compass Point -- Analyst
You have the other property, and I know it's small, DEA in OK and on the border in San Diego. And it looks like they're going to be leaving that building at the end of the lease, maybe they outgrew it, I suspect. Are there any prospects to relet that? It's clearly suited for a federal agency.
Bill Trimble -- Chief Executive Officer
I couldn't agree more. I've stood on that property. We've got two facilities there. And you are literally looking at the Mexican border from one end of the spectrum to the other, a mile away.
There are all sorts of opportunities for that building, we believe. And also, it is really the only office space along with our others located in that position. Most of it is warehouse and industrial. So we are sanguine about the prospects for that property.
And I'm sure, in our current situation with Mexico, there'll be plenty of opportunities.
Merrill Ross -- Compass Point -- Analyst
Yes, it would seem that way. I just would like to know if you can circle, Meghan, the lump sum expense reimbursement from Alameda.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
I'm sorry, if we can circle...
Merrill Ross -- Compass Point -- Analyst
A rough ballpark of what that's added.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
We did receive the lump sum, $52 million. We're not waiting on the government for that.
Merrill Ross -- Compass Point -- Analyst
So was how much, I'm sorry?
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
$52 million.
Operator
[Operator instructions] Our next question comes from Jon Petersen with Jefferies.
Peter Abramowitz -- Jefferies -- Analyst
This is Peter on for Jon. Just looking at some of your lease expirations through the rest of this year in 2020. I guess, just from a higher level, what are you seeing in terms of where those leases are rolling kind of directionally, whether it'd be positive or negative spreads?
Bill Trimble -- Chief Executive Officer
Well, I think the first thing is certainly where we anticipate them rolling is reflected in our guidance for next year, which I'd be very happy to deliver today. I'd also say that I think that we're certainly not worried about the leases going over the next year, in fact, very positive in that we have sort of transitioned in the last two years where we had some plain vanilla. These are, as evidenced by our FBI-Richmond, bull's-eye properties and you know where they renew very favorably for the most part. I will tell you that we are not going to begin a trend of discussing during negotiations with the federal government where we think the leases are going to turn out, but I think they will be as anticipated, and we're very pleased to see how it's going.
Operator
Thank you. I would like to turn the floor over to Darrell for closing remarks.
Darrell Crate -- Chairman of Easterly Government Properties
Thanks, Stacy. So thank you, everyone, for joining the Easterly Government Properties third-quarter 2019 conference call. We appreciate your time. We look forward to keeping you posted on all of our work as we strive to build a portfolio of pristine assets backed by the full faith and credit of the U.S.
government.
Operator
[Operator signoff]
Duration: 30 minutes
Call participants:
Lindsay Winterhalter -- Vice President, Investor Relations
Darrell Crate -- Chairman of Easterly Government Properties
Bill Trimble -- Chief Executive Officer
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Mike Carroll -- RBC Capital Markets -- Analyst
Merrill Ross -- Compass Point -- Analyst
Peter Abramowitz -- Jefferies -- Analyst
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Easterly Government Properties (NYSE: DEA) Q3 2019 Earnings Call Nov 06, 2019, 10:00 a.m. We strive to be our best for the FBI, the DEA and the VA, along with 32 other agencies each and every day. I mean how does that impact your volume and your pricing on these types of deals?
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Operator [Operator signoff] Duration: 30 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relations Darrell Crate -- Chairman of Easterly Government Properties Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Mike Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Compass Point -- Analyst Peter Abramowitz -- Jefferies -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q3 2019 Earnings Call Nov 06, 2019, 10:00 a.m. We strive to be our best for the FBI, the DEA and the VA, along with 32 other agencies each and every day.
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Operator [Operator signoff] Duration: 30 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relations Darrell Crate -- Chairman of Easterly Government Properties Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Mike Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Compass Point -- Analyst Peter Abramowitz -- Jefferies -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q3 2019 Earnings Call Nov 06, 2019, 10:00 a.m. We strive to be our best for the FBI, the DEA and the VA, along with 32 other agencies each and every day.
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Operator [Operator signoff] Duration: 30 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relations Darrell Crate -- Chairman of Easterly Government Properties Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Mike Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Compass Point -- Analyst Peter Abramowitz -- Jefferies -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q3 2019 Earnings Call Nov 06, 2019, 10:00 a.m. We strive to be our best for the FBI, the DEA and the VA, along with 32 other agencies each and every day.
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2019-10-21 00:00:00 UTC
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7 Office REITs to Buy That Would Outperform a WeWork Stock
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DEA
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https://www.nasdaq.com/articles/7-office-reits-to-buy-that-would-outperform-a-wework-stock-2019-10-21
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One of the more curious IPOs proposed this year was WeWork. Although growth in the co-working spaces that the company markets should continue, management turmoil and an uncertain financial position led to the cancellation of the proposed stock offering.
But here’s the strange thing—WeWork was never marketed as one of the REITs to buy. In fact, WeWork billed itself as a “.” Huh?
This seems like a misleading description when the company’s primary offering is office real estate. In 2019, I do not know of anyone else who would describe offering electricity and a wi-fi connection as “tech.” The fact that it did not bill itself as a REIT was the biggest reason I planned to not recommend WeWork to stock investors.
Thankfully, investors have numerous choices in office and data center REITs to buy that not only earn a profit, but also pay a dividend. Here are a few that probably would have outperformed a prospective WeWork stock:
Boston Properties (BXP)
Source: Shutterstock
Boston Properties (NYSE:) is one of the REITs to buy due to its size. It has become one of the largest owners of Class A office space in the U.S. It holds property in five key markets: Boston, Los Angeles, New York, San Francisco, and Washington, D.C.
The company manages 48.4 million square feet across 164 office properties. Though most consider it an office REIT, it also owns a few residential and retail properties as well as a hotel.
Like most REITs, the company cut the dividend during the financial crisis. Since then, the payout has steadily risen. Current holders of BXP stock receive an annual dividend of $3.80 per share. This brings a cash return of just under 3% at current prices.
At a forward price-to-earnings (PE) ratio of just over 40, BXP stock is not cheap. The five-year average annual earnings growth rate of 7% makes it seem pricier.
Boston Properties stock has risen about 265% since the height of the financial crisis. Still, even if the multiple caused it to pause for a time, investors should see stock and dividend growth over the long haul. This, along with holdings in some of the strongest real estate markets in the country, should make BXP stock one of the more solid REITs to buy.
City Office REIT (CIO)
Source: Shutterstock
City Office REIT (NYSE:) acquires and manages office properties, primarily in the southern and western United States. Their holdings consist of 64 office buildings in eight metro areas. They currently have about 5.7 million square feet of net rentable space.
CIO stock opened trading in April 2014 at $12.50 per share. More than five years later, it trades at around $13.50 per share. As the stock gained traction this fall, the company announced an offering of an additional 6 million shares.
Fortunately for investors, CIO’s status as one of the REITs to buy lacks hinges on its payouts. City Office has paid an annual dividend of 94 cents per share since inception. At today’s prices, that amounts to a yield of about 7%. This dramatically exceeds the of 3.54%. Due to this high payout, investors will likely struggle to find a cash return higher than the one provided by CIO stock.
CoreSite Realty Corporation (COR)
Source: Shutterstock
CoreSite Realty (NYSE:) operates in a subsection of office REITs sometimes called “data center REITs.” While this does not make them a tech company, CoreSite provides spaces ideally-suited for the servers that run data center facilities. They facilitate tech by offering space for colocation, interconnection, and cloud services. The buildings themselves also feature backup power sources, as well as physical spaces that are cooled and physically secured.
Analysts expect the demand for data centers to see massive growth for years to come. This may explain why COR stock trades at a forward PE ratio of 54.7. Although expensive for this type of stock, few REITs will match the 14.95% average annual growth forecasted for the next five years.
Also, few other REITs to buy can match the historical dividend growth rate. COR stock paid 52 cents per share when it first began trading in 2010. Today, CoreSite shareholders receive $4.88 per share in annual cash payouts. This yields about 4% now and will likely rise as it increases its data center real estate holdings.
For shareholders who want a REIT with both income and comparable growth to many tech stocks, COR stock should serve them well long-term.
Digital Realty Trust (DLR)
Digital Realty Trust (NYSE:), like Coresite Realty, specializes in data center properties. These properties continue to see demand rise on many fronts. The cloud industry continues to see massive growth. Moreover, as 5G begins to come online, the importance of the data center spaces it provides will only rise for the foreseeable future.
At a forward PE ratio of 90, DLR stock is expensive, particularly for a REIT. However, it exhibits something rarely seen in REITs to buy—fast growth. Profits saw little increase this year. Still, analysts project that the company will see its earnings grow by 21.3% next year. Profit growth should also remain in the double-digits for the foreseeable future.
This has also shown up in the price of DLR stock. Digital Realty traded in the $47 per share range as late as 2013. Today, Digital Realty stock sells for about $133 per share.
Dividends have shown a steady pattern of growth over the years. The 14th consecutive annual payout hike took this dividend to $4.32 per share annually. That amounts to a yield of about 3.30%. Despite the high cost of the stock, cloud and data center growth should keep DLR stock moving higher for years to come.
Easterly Government Properties (DEA)
Source: Shutterstock
Easterly Government Properties (NYSE:) acquires, manages, and owns office properties that it leases to the U.S. government. Due to its main client, the Washington-based REIT owns numerous properties in the Washington, D.C. metro area, though it has holdings across the U.S.
Since the Federal Government has seen a continual growth trajectory for decades, its need for office space has naturally increased. This keeps occupancy rates for Easterly Properties at 100%.
Investors currently earn a return of 4.79% on the $1.04 per share annual dividend. This has remained stable, and it exceeds the average for equity REITs.
However, DEA stock has become expensive by just about any measure. The minuscule profits send its PE ratio to outlandish highs. Also, its price-to-sales (PS) ratio of almost 8.2 dramatically exceeds that of most REITs. At close to $22 per share, DEA stock has again marched toward record highs. If the stock forms a double top here, investors who buy now could face some pain.
Hence, investors should treat DEA stock as an income play. With a higher-than-average payout, and a stable client that continuously needs more space, few REITs to buy have a more reliable book of business than DEA stock.
Highwoods Properties (HIW)
Source: Shutterstock
Highwoods Properties (NYSE:) acquires and manages office properties across nine markets located mainly in the southeastern U.S. The company began operations in Raleigh in 1978 and has expanded across its region. Today it owns over 30 million square feet of space.
Stability makes this one of the REITs to buy. The company boasts and credits that with maintaining its payout during the financial crisis. It has increased its dividend for three consecutive years. Today its annual dividend of $1.90 per share yields just over 4.3%.
HIW stock has also shown slow but steady growth since the financial crisis. Falling below $19 per share in 2009, it has steadily climbed over the last ten years. Today, HIW sells for about $44 per share.
Currently, HIW stock trades at a forward PE ratio of around 32.8. That may seem expensive for an equity expected to grow by an average of 8% per year over the next five years. However, the higher-than-average, growing dividend may mitigate any potential losses.
Moreover, the company has an additional 1.3 million square feet in the . It also holds the potential to develop another 5.12 million square feet. This should bolster continued dividend growth and make the higher cost of HIW stock pay off for investors long term.
Hudson Pacific Properties (HPP)
Source: Shutterstock
Hudson Pacific Properties (NYSE:) owns more than 20 million square feet of office space along the West Coast of North America. Based in Los Angeles, many of the highest-profile companies in the tech industry occupy its office space, especially in Silicon Valley and Seattle. Holding these tech tenants has helped keep occupancy rates high and rental prices rising.
HPP stock pays a dividend of $1 per share. This takes the yield to just under 3%. That may lag other office REITs, however, it benefits from a gradually-rising dividend.
Still, HPP stock has tripled in value since 2011. Consequently, the forward PE has risen to 56. With a forecasted growth rate of 9% per year over the next five years, HPP has become one of the pricier REITs to buy. Moreover, the company’s increased focus on core assets led to some divestments which have temporarily hurt profits.
Despite the high costs, the company should thrive regardless of the economy. The advent of technologies such as 5G, artificial intelligence, and the Internet of Things should keep tech clients in Hudson Properties spaces for years to come. This stability by itself could keep HPP stock an attractive investment despite its valuation.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can at @HealyWriting.
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The post 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.
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With a higher-than-average payout, and a stable client that continuously needs more space, few REITs to buy have a more reliable book of business than DEA stock. CoreSite Realty Corporation (COR) Source: Shutterstock CoreSite Realty (NYSE:) operates in a subsection of office REITs sometimes called “data center REITs.” While this does not make them a tech company, CoreSite provides spaces ideally-suited for the servers that run data center facilities. Easterly Government Properties (DEA) Source: Shutterstock Easterly Government Properties (NYSE:) acquires, manages, and owns office properties that it leases to the U.S. government.
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Easterly Government Properties (DEA) Source: Shutterstock Easterly Government Properties (NYSE:) acquires, manages, and owns office properties that it leases to the U.S. government. CoreSite Realty Corporation (COR) Source: Shutterstock CoreSite Realty (NYSE:) operates in a subsection of office REITs sometimes called “data center REITs.” While this does not make them a tech company, CoreSite provides spaces ideally-suited for the servers that run data center facilities. However, DEA stock has become expensive by just about any measure.
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CoreSite Realty Corporation (COR) Source: Shutterstock CoreSite Realty (NYSE:) operates in a subsection of office REITs sometimes called “data center REITs.” While this does not make them a tech company, CoreSite provides spaces ideally-suited for the servers that run data center facilities. Easterly Government Properties (DEA) Source: Shutterstock Easterly Government Properties (NYSE:) acquires, manages, and owns office properties that it leases to the U.S. government. However, DEA stock has become expensive by just about any measure.
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CoreSite Realty Corporation (COR) Source: Shutterstock CoreSite Realty (NYSE:) operates in a subsection of office REITs sometimes called “data center REITs.” While this does not make them a tech company, CoreSite provides spaces ideally-suited for the servers that run data center facilities. Easterly Government Properties (DEA) Source: Shutterstock Easterly Government Properties (NYSE:) acquires, manages, and owns office properties that it leases to the U.S. government. However, DEA stock has become expensive by just about any measure.
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2019-08-02 00:00:00 UTC
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Easterly Government Properties (DEA) Q2 2019 Earnings Call Transcript
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-q2-2019-earnings-call-transcript-2019-08-02
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Image source: The Motley Fool.
Easterly Government Properties (NYSE: DEA)
Q2 2019 Earnings Call
Aug 01, 2019, 11:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the Easterly Government Properties second-quarter 2019earnings conference call [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lindsay Winterhalter, vice president of investor relations. Thank you, Ms.
Winterhalter. You may begin.
Lindsay Winterhalter -- Vice President of Investor Relations
Good morning. Before the call begins, please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Act Reform of 1995 and is making the statements for the purpose of complying with those safe harbor provisions.
Although the company believes that its plans, intentions, expectations, strategies and prospects, as reflected in or suggested by those forward-looking statements, are reasonable, they can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risk factors -- risks and factors that are beyond the company's control, including, without limitation, those contained in Item 1A, Risk Factors, of its annual report on Form 10-K for the year ended December 31st, 2018 filed with the SEC on February 28th, 2019, and in its other SEC filings. The company assumes no obligations to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations, funds from operations as adjusted, and cash available for distribution.
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You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package on the investor relations page of the company's website at ir.easterlyreit.com. I would now like to turn the conference call over to Darrell Crate, chairman of Easterly Government Properties.
Darrell Crate -- Chairman
Thank you, Lindsay. Good morning, everyone, and thank you for joining us on this second-quarter conference call. Today, in addition to Lindsay, I'm also joined by Bill Trimble, the company's CEO; and Meghan Baivier, the company's CFO and COO. Half way through the year, we are pleased with the direction of our results.
Our new acquisition effort is generating bull's-eye properties and long-dated leases, and facilities that are early in their useful life. Our releasing efforts are being executed in partnership with the government by our seasoned team. Our balance sheet is very well-positioned with long-dated obligations and plenty of available capacity under our revolver for future growth. Our strategy of enhancing portfolio of value through development continues to grow, with the recent win of our third FDA laboratory in Atlanta.
We have a ribbon-cutting at the Alameda lab next month. We delivered the Lenexa lab at the end of 2020, and this new award in Atlanta is targeted for delivery in 2021-2022. In our space, deploying capital into development is the most accretive use of our capital. It is a privilege to win these projects and our team is executing admirably.
We continue to be well-positioned over the medium term to acquire the few portfolios that match the quality of our existing portfolio. Today, our weighted average cost of capital enables us to grow accretively without needing to stretch our underwriting criteria and risk profile. With 66 properties under our ownership, 2 in development and 1 in design, we're pleased with the quality and diversification of our assets, all with leases backed by the full faith and credit of the United States government. We're pleased to be on track to deliver on expectations and look forward to furthering our strategic objectives to enhance value for our shareholders.
Now I'll turn the call over to Bill to share more detail on the developments in the quarter.
Bill Trimble -- Chief Executive Officer
Thanks, Darrell, and good morning. Thank you for joining us for our second-quarterearnings call What a quarter it has been. I'm excited to share the company's achievements in this second quarter of 2019, starting with the acquisition of the 400,000 square foot U.S.
Joint Staff Command facility located in Suffolk, Virginia. This facility is comprised of two modern Class A buildings that are 100% leased to the GSA and occupied by the Department of Defense's U.S. Joint Staff Command division. The JSC is the division responsible for the unified strategic direction of U.S.
combat forces. The government is heavily invested in this highly secured facility, as was demonstrated in their recent lease renewal for 10 years with an additional five-year option. This is just a wonderful facility, truly a center of the bull's-eye acquisition, and a meaningful addition to Easterly's growing portfolio. This quarter also marked the acquisition of FBI New Orleans, the company's ninth FBI field office.
Just like the other 8, this facility houses some of the most important missions of the FBI and serves as a headquarter for its regional operations. Specifically, FBI New Orleans oversees all of Louisiana, including six satellite offices in Baton Rouge, Alexandria, Lafayette, Lake Charles, Monroe, and Shreveport. It is important to note that this site was specifically selected by the U.S. government as the optimal location and wished to conduct its mission.
In fact, the government attempted to purchase this property from the prior owner, but was unable to do so due to budgetary constraints. As previously mentioned, Easterly is the largest private owner of these facilities, and the FBI field offices are the exact type of property we wish to own. They're highly specialized to the underlying tenants use which aids the tenants in fulfilling the most important of missions for the U.S. government.
As demonstrated in this quarter, the Easterly pipeline remains strong. With no dedicated public competitors, a highly fragmented market drives further opportunity for growth. And while we have mentioned that we believe that our portfolio acquisition opportunities totaling approximately $2 billion, we still expect 2019 will be a year of incremental growth through the acquisition of one or two bull's-eye facilities at a time. This was also a rewarding quarter for Easterly on the development side of the house.
Several weeks ago, we were pleased to share the news that Easterly has been selected by the GSA to redevelop a brand-new, build-to-suit Class A laboratory for the Food and Drug Administration in Atlanta, Georgia. This is a tremendous opportunity for us, and we are honored once again to serve as the partner of choice to the U.S. government. FDA Atlanta will be our largest laboratory to date, with an anticipated size of approximately 162,000 square feet.
The state-of-the-art facility is expected to have both laboratory and office space for the Atlantic District Office, as well as, the Southeast Food and Feed Laboratory and the Southeast Tobacco Laboratory. The Atlantic District Office oversees the regulatory operations within the Atlanta region, while the Southeast Food and Feed Laboratory provides laboratory testing and regulation for the region, as well as, research into new methodologies and regulatory areas within the FDA. The facility is expected to have four separate laboratories for nutritional analysis, chemistry, microbiology and tobacco. Once this project is delivered, the GSA will commence its non-cancelable 20-year lease for the beneficial use of the FDA.
With FDA Atlanta, Easterly is on track to deliver a build-to-suit project in 2018, 2019, 2020 and now potentially 2021 or '22. FDA Alameda is preparing for the government's acceptance to space in August of 2019, while FDA Lenexa is on track for a fourth quarter of 2020 delivery. These projects are among the best uses of capital for the company. As mentioned, the non-speculative nature of the lease award, the minimal building expenses incurred prior to lease award, the risk-free option we placed on the land or building and the designed build contract with the GC to prevent cost overruns, all contribute to the company's ability to earn attractive yields, while minimizing risk.
Further, at the end of the project, Easterly will own a brand-new, state-of-the-art building with an initial 20-year non-cancelable lease with the U.S. government. To put these opportunities into context, if we were to attempt to purchase that same exact facility, rather than develop it ourselves, we would expect to pay a much tighter cap rate than the one we are building at two. That spread between development versus acquisition is extremely compelling.
Turning to asset management. The team continues to work with the GSA and the underlying tenant agencies to constantly improve upon the existing portfolio. Tenant-funded projects are wonderful opportunities to keep our facilities up to latest standards, while also achieving a modest management fee. Further, these improvements only increase the overall NAV of the company's existing portfolio.
These improvement projects also add to the clarity and visibility of a government agency's tendency in our facility. It is this clarity that helps us better understand and appreciate our future lease income, which we then apply toward a quarterly dividend for our shareholders. To conclude, this is a great quarter for Easterly. We continue grow through bull's-eye acquisitions and non-speculative development opportunities, with over 98% of our 100% occupied portfolio generating cash flows back at a full faith and credit of the U.S.
government. The stability of those cash flows, we believe, distinguishes us from any other public REIT. With that, I thank you for your time this morning and for your continued support and partnership. And I'll turn the call over to Meghan to discuss the company's quarterly financial results.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Thank you, Bill. As of June 30th, we owned 66 operating properties comprising approximately 6.1 million square feet of commercial real estate with three additional projects totaling 291,000 square feet under development or in design. The weighted average remaining lease term for our portfolio was 7.4 years. Remarkably, the portfolio has exactly the same weighted average remaining lease term as it did in the first quarter of 2015, when the company IPO-ed.
This time-defining statistic has been achieved by continuing to acquire young, mission-critical facilities of scale year over year, and through the renewal of our leases, which speaks to the enduring visibility of our cash flow. The average age of our portfolio has also defied the passage of time and remained young at 13 years. Portfolio occupancy remains at 100% and finally, 98% of our annualized lease income continues to be backed by the full faith and credit of the United States government. For the second quarter, net income per share on a fully diluted basis was $0.08.
FFO per share on a fully diluted basis was $0.30. FFO as adjusted per share on a fully diluted basis was $0.29, and our cash available for distribution was $19.8 million. Our portfolio has grown from 47 to 66 properties since just this time last year. And with this scale, also comes a more diversified stream of cash flow supporting the company's dividend.
Turning to the balance sheet. At quarter-end, the company had total indebtedness of $896.5 million, including $262 million outstanding on its unsecured revolving credit facility. With $450 million of total capacity, availability on our revolving line of credit stood at a healthy $188 million. As of June 30th, Easterly's net debt to total enterprise value was 38.1% and its adjusted net debt to annualized quarterly EBITDA ratio was 6.3 times.
As you've heard me mention previously, meaningful progress on our development projects will bring higher levels of recorded leverage as we near project completion. Adjusted leverage, in part, neutralizes this leverage drag and at 6.3 times demonstrates the strength of the balance sheet and available dry powder as we continue to pursue our target of $200 million in acquisitions this year. As part of our goal to purchase properties through just-in-time funding, the company has been active on its ATM program, throughout the second quarter, and subsequent to quarter-end. During the second quarter, in addition to settling the remaining 300,000 forward shares outstanding, from the June 2018 equity offering, the company issued just over 1.2 million shares of common stock through its ATM raising approximately $27.1 million in total gross proceeds to fund recently announced acquisitions.
Subsequent to quarter end, the company has issued just over 1.6 million shares of common stock for growth proceeds of approximately $29.5 million. Subsequent to quarter-end, the company announced the execution of a private placement of $275 million principal amount of unregistered fixed rate senior unsecured notes. The company expects the notes to close and fund on September 12th, 2019. This marks the company's second entry into the unsecured debt private placement market, which solidified existing partnerships and also initiated strong relationships with new lenders.
These fixed rate, interest-only notes will be issued in 3 tranches. $85 million in 10-year notes with an interest rate of 3.73%, $100 million in 12-year notes with an interest rate of 3.83% and $90 million in 15-year notes with an interest rate of 3.98%. The weighted average maturity of the notes is 12.4 years, and the weighted average interest rate is an impressive 3.85%. This execution is clearly the market validating our portfolio strategy and balance sheet, which profiles investment grade.
Achieving such as an attractive fixed rate for that duration presents the company with a superior opportunity to deploy capital accretively and support in evolving acquisition and development pipeline. Pro forma for the closing of the notes. Our balance sheet fully looks stronger. The execution of this deal takes our weighted average debt maturity from 5.7 years to 8.6 years, which well surpasses our weighted average remaining lease term of 7.4 years.
The deal also takes our weighted average interest rate up by only 10 basis points from 3.7% to 3.8%. Quite frankly, to gain 2.9 years in duration for only 10 basis points is remarkable. The superior credit quality of our primary tenant, once again, resonated in the unsecured debt private placement market and through this execution, we enhanced the company's balance sheet by extending the duration of its liabilities in an attractive interest rate environment. Turning to earnings guidance.
For the 12 months ending December 31st, 2019, the company is updating its guidance for FFO per share on a fully diluted basis to $1.18 to $1.20. This guidance, which is forward-looking and reflects management's view of current and future market conditions, is based on the company completing $200 million of acquisitions separate and apart from the January 2019 closing of the final three properties in the 14-property portfolio, and $75 million to $100 million of gross development-related investment in the year. Additionally, as previously mentioned, expected growth in FFO per share due to accounting adjustments is masking growth in FFO as adjusted per share, a metric which we believe is more indicative of operating cash flow growth. The company's guidance for 2019 FFO per share on a fully diluted basis represents expected FFO as adjusted per share on a fully diluted basis growth of approximately 8% to 11%.
We've also an incredibly strong portfolio of assets. In 2019, 8% to 11% expected growth in FFO as adjusted per share, we believe, is indicative of an exceptional year of value creation for our investors. With that, I will turn the call back to Doug.
Questions & Answers:
Operator
[Operator instructions] Our first question comes from the line of Manny Korchman from Citigroup. Please proceed with your question.
Manny Korchman -- Citi -- Analyst
Hey, good morning, everyone. I don't know who this one's to, but I'll just throw it out there. The most recent development projects, was that a full-on RSP and just sort of what do you think made you win that, if it was? And secondly, how many other large development projects like that are you working on right now and could become reality over the next six to 12 months?
Bill Trimble -- Chief Executive Officer
Good morning, Manny, it's Bill. Yes, absolutely, it was a full-blown competition. There were a number of very, very strong national competitors involved in that project. As you know, this lab is extremely important to the FDA.
There are 13 out there. We have been awarded the first three. We cannot guarantee that we're going to win everyone, but I think we've proven that we're a terrific partner with the federal government. So I think that we're looking at a program that could be lasting at least a decade within the FDA going forward.
And I think our expertise, certainly in Alameda, I was out there two weeks ago, we're about 99.5% finished there. And I was with Mike Ibe, our head of development, going through the building from stem to stern. And when you see what we've done and how we've worked with the FDA in partnership and the GSA and then doing this again in Lenexa, I think that for the FDA, it is a really great solution for achieving their goals because they -- we've all been working together since the beginning on these projects. So this one in Atlanta has taken, I think, almost 20 months to come to fruition.
So we've put a lot of work into it.
Manny Korchman -- Citi -- Analyst
Thanks. And then in terms of disposition, is there anything else you're thinking about right now?
Bill Trimble -- Chief Executive Officer
I -- you know, we're very pleased with our portfolio and what I've said in the past is when there's an opportunity to call or harvest the property that might be older and put that money and redeploy it into -- for instance, in new development project, we'll take advantage of that. But we have a very young portfolio, and we're very pleased with what we have.
Manny Korchman -- Citi -- Analyst
Thanks.
Operator
Our next question comes from the line of Jason Idoine with RBC Capital Markets. Please proceed with your question.
Jason Idoine -- RBC Capital Markets -- Analyst
Hey, thanks for taking my question. I'm touching on the dispositions. You'd previously discussed that you're interested in maybe disposing some assets. And then obviously, I know you had smaller sales during the quarter.
But I'm wondering how we should be thinking about that through to the end of 2019 and then for 2020? And then also has that strategy changed at all and what impact did that have on guidance?
Bill Trimble -- Chief Executive Officer
I'd say that -- just what I've just said to Manny. I think, that obviously as we -- our buildings do get a year older when we're in market -- every year when we're in market, but we've actually kept -- as Meghan mentioned, we've kept the age of our portfolio fairly consistent through purchasing, and building some incredible new properties. However, it's a property that we sold in California, which by the way, we just renewed with a brand-new 10-year lease. We think it's terrific, it's Customs and Border Protection, an important mission.
But you're looking at one of our oldest buildings built, even though hard to believe, in the 1990s. I know it was just a great time to maximize value. So I'd say that, you know, dispositions to us are taken when we think that there is another or better opportunity for the money going forward.
Jason Idoine -- RBC Capital Markets -- Analyst
Gotcha. Thank you.
Bill Trimble -- Chief Executive Officer
And none of that had any effect on the guidance.
Jason Idoine -- RBC Capital Markets -- Analyst
And then could you also touch on the current competitive landscape that you're seeing in the market today?
Bill Trimble -- Chief Executive Officer
I would say that the landscape is fairly consistent. We have no public market competitors. When we get to very large projects, we'll see sovereign wealth funds, large insurance companies, even South Korean insurance companies involved. We have several private equity funds that we've enjoyed competing with over the years.
We see them on a regular basis. There was a public market competitor that was in the market last year for a property in Baltimore that, I think, is probably no longer participating in that market. So it's been very consistent.
Jason Idoine -- RBC Capital Markets -- Analyst
Gotcha. Thank you.
Operator
[Operator instructions] Our next question comes from the line of Jon Petersen with Jefferies. Please proceed with your question.
Peter Abramowitz -- Jefferies -- Analyst
Hi, this is Peter on for Jon. Just on the acquisition front, how high would be willing to take your leverage if you are seeing more deals that are sort of bull's-eye acquisitions in your sweet spot at attractive cap rates?
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Yeah. I think we have the range that guides us development is going to be the best use of capital that will push leverage to the higher end of that range. But we feel confident in our ability to call our pipeline and continue to generate growth, while keeping the strong balance sheet.
Peter Abramowitz -- Jefferies -- Analyst
Gotcha. And on lease maturities. Do you have any update on sort of near-term maturities? I know there's not a lot of huge ones, but things that are coming up, sort of where you're expecting rents to trend directionally.
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Sure. So as you look at the next remainder of this year and the next two years, and you look at sort of the cross-section of properties that are coming up for renewal, there's a vast majority of those that fall into the bull's eye and so every day, we're working to get those replacement, cost-driven renewal bumps that we speak about.
Peter Abramowitz -- Jefferies -- Analyst
Got it. That's it for me. Thank you.
Operator
There are no further questions in the queue. I'd like to hand the call back over to Darrell Crate for closing remarks.
Darrell Crate -- Chairman
Thank you, everyone, for joining the Easterly Government Properties second quarter 2019 conference call. We appreciate your time, and we look forward to getting back to you in November.
Operator
[Operator signoff]
Duration: 28 minutes
Call participants:
Lindsay Winterhalter -- Vice President of Investor Relations
Darrell Crate -- Chairman
Bill Trimble -- Chief Executive Officer
Meghan Baivier -- Chief Financial Officer and Chief Operating Officer
Manny Korchman -- Citi -- Analyst
Jason Idoine -- RBC Capital Markets -- Analyst
Peter Abramowitz -- Jefferies -- Analyst
More DEA 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.
Motley Fool Transcribing 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.
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Easterly Government Properties (NYSE: DEA) Q2 2019 Earnings Call Aug 01, 2019, 11:00 a.m. The execution of this deal takes our weighted average debt maturity from 5.7 years to 8.6 years, which well surpasses our weighted average remaining lease term of 7.4 years. The deal also takes our weighted average interest rate up by only 10 basis points from 3.7% to 3.8%.
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Operator [Operator signoff] Duration: 28 minutes Call participants: Lindsay Winterhalter -- Vice President of Investor Relations Darrell Crate -- Chairman Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Manny Korchman -- Citi -- Analyst Jason Idoine -- RBC Capital Markets -- Analyst Peter Abramowitz -- Jefferies -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q2 2019 Earnings Call Aug 01, 2019, 11:00 a.m. The execution of this deal takes our weighted average debt maturity from 5.7 years to 8.6 years, which well surpasses our weighted average remaining lease term of 7.4 years.
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Operator [Operator signoff] Duration: 28 minutes Call participants: Lindsay Winterhalter -- Vice President of Investor Relations Darrell Crate -- Chairman Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Manny Korchman -- Citi -- Analyst Jason Idoine -- RBC Capital Markets -- Analyst Peter Abramowitz -- Jefferies -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q2 2019 Earnings Call Aug 01, 2019, 11:00 a.m. The execution of this deal takes our weighted average debt maturity from 5.7 years to 8.6 years, which well surpasses our weighted average remaining lease term of 7.4 years.
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Operator [Operator signoff] Duration: 28 minutes Call participants: Lindsay Winterhalter -- Vice President of Investor Relations Darrell Crate -- Chairman Bill Trimble -- Chief Executive Officer Meghan Baivier -- Chief Financial Officer and Chief Operating Officer Manny Korchman -- Citi -- Analyst Jason Idoine -- RBC Capital Markets -- Analyst Peter Abramowitz -- Jefferies -- Analyst More DEA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties (NYSE: DEA) Q2 2019 Earnings Call Aug 01, 2019, 11:00 a.m. The execution of this deal takes our weighted average debt maturity from 5.7 years to 8.6 years, which well surpasses our weighted average remaining lease term of 7.4 years.
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723437.0
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2019-06-26 00:00:00 UTC
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Easterly Government Properties Breaks Below 200-Day Moving Average - Notable for DEA
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-breaks-below-200-day-moving-average-notable-for-dea-2019-06
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nan
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nan
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $18.00, changing hands as low as $17.80 per share. Easterly Government Properties Inc shares are currently trading off about 1.3% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $20.56 as the 52 week high point — that compares with a last trade of $17.98.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $18.00, changing hands as low as $17.80 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $20.56 as the 52 week high point — that compares with a last trade of $17.98. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $18.00, changing hands as low as $17.80 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $20.56 as the 52 week high point — that compares with a last trade of $17.98. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $18.00, changing hands as low as $17.80 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $20.56 as the 52 week high point — that compares with a last trade of $17.98. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed below their 200 day moving average of $18.00, changing hands as low as $17.80 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $20.56 as the 52 week high point — that compares with a last trade of $17.98. Easterly Government Properties Inc shares are currently trading off about 1.3% on the day.
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477f3448-8301-471d-ab8c-d1229b4ee7d5
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723438.0
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2019-06-25 00:00:00 UTC
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First Week of August 16th Options Trading For Easterly Government Properties (DEA)
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DEA
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https://www.nasdaq.com/articles/first-week-of-august-16th-options-trading-for-easterly-government-properties-dea-2019-06
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nan
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nan
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Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options begin trading this week, for the August 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new August 16th contracts and identified the following put contract of particular interest.
The put contract at the $17.50 strike price has a current bid of 10 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $17.50, but will also collect the premium, putting the cost basis of the shares at $17.40 (before broker commissions). To an investor already interested in purchasing shares of DEA, that could represent an attractive alternative to paying $18.45/share today.
Because the $17.50 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 77%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.57% return on the cash commitment, or 4.01% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Easterly Government Properties Inc, and highlighting in green where the $17.50 strike is located relative to that history:
The implied volatility in the put contract example above is 23%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $18.45) to be 19%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Puts of the REITs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options begin trading this week, for the August 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new August 16th contracts and identified the following put contract of particular interest. To an investor already interested in purchasing shares of DEA, that could represent an attractive alternative to paying $18.45/share today.
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Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options begin trading this week, for the August 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new August 16th contracts and identified the following put contract of particular interest. To an investor already interested in purchasing shares of DEA, that could represent an attractive alternative to paying $18.45/share today.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new August 16th contracts and identified the following put contract of particular interest. Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options begin trading this week, for the August 16th expiration. To an investor already interested in purchasing shares of DEA, that could represent an attractive alternative to paying $18.45/share today.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DEA options chain for the new August 16th contracts and identified the following put contract of particular interest. Investors in Easterly Government Properties Inc (Symbol: DEA) saw new options begin trading this week, for the August 16th expiration. To an investor already interested in purchasing shares of DEA, that could represent an attractive alternative to paying $18.45/share today.
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b2008865-e9f9-4be1-8ac3-f11518984e92
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723439.0
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2019-05-03 00:00:00 UTC
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Easterly Government Properties Breaks Above 200-Day Moving Average - Bullish for DEA
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-breaks-above-200-day-moving-average-bullish-dea-2019-05-03
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nan
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nan
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $18.23, changing hands as high as $18.36 per share. Easterly Government Properties Inc shares are currently trading up about 1.8% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $21.485 as the 52 week high point — that compares with a last trade of $18.34.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $18.23, changing hands as high as $18.36 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $21.485 as the 52 week high point — that compares with a last trade of $18.34. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $18.23, changing hands as high as $18.36 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $21.485 as the 52 week high point — that compares with a last trade of $18.34. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $18.23, changing hands as high as $18.36 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $21.485 as the 52 week high point — that compares with a last trade of $18.34. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $18.23, changing hands as high as $18.36 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $15.1638 per share, with $21.485 as the 52 week high point — that compares with a last trade of $18.34. Easterly Government Properties Inc shares are currently trading up about 1.8% on the day.
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d456e993-a64a-488f-9840-512760d7467f
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723440.0
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2019-04-08 00:00:00 UTC
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A “Landmark” Bill on Marijuana Legalization
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DEA
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https://www.nasdaq.com/articles/a-landmark-bill-on-marijuana-legalization-2019-04-08
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Where we stand with federal marijuana reform initiatives, and what that means for your marijuana investments today
With last Friday's "landmark" bill, Congress is closer than ever to long-awaited reform measures that would, in effect, legalize marijuana.
"Landmark" is how Rep. Earl Blumenauer (D-OR) described the legislation introduced this past Friday. If passed, it would end the federal prohibition on marijuana.
The legislation is called the STATES Act (Strengthening the Tenth Amendment Through Entrusting States). In practical terms, it would allow each state or territory to decide its own policy on marijuana, without federal intervention.
It will still be a while before the bill gets a full House vote. Regardless, the momentum and growing support from an increasing number of politicians is what's important for now. It's part of a new wave of legalization that has already created massive stock winners. At this point, it's undeniable - legal marijuana is one of the biggest investment opportunities of this generation.
So, given this federal milestone, in today's Digest , let's review federal marijuana reform efforts that have taken place over the last few months. Then, in light of where we stand today, let's discuss which investments are likely to thrive in this environment.
***Major federal reform began with the passing of the 2018 Farm Bill this past December
The Farm Bill was major news for marijuana investors. To understand why, I'm going to turn to our resident marijuana expert, Matt McCall. Matt is one of the most respected, and successful, marijuana analysts in the business.
CBD) oil hits the mainstream, we're looking at an industry with the potential to be 55 times larger in just five years … it has game-changing ramifications on the hemp industry …Prior to that, hemp was classified as a Schedule 1 drug according to the Drug Enforcement Administration (DEA), and federal laws prohibited growing or selling it. A previous Farm Bill from 2014 allowed a few states to give out limited permits to grow hemp for specific uses, but it mostly remained illegal.The DEA's classification made no sense. Schedule 1 drugs are the most addictive and dangerous in the world and have zero medical benefits. We know that isn't true with hemp. Can you believe that the DEA viewed hemp as more dangerous than cocaine, which is a Schedule 2 drug?" data-size="pullquote--half-width" data-underline-color="pullquote--blue">
Given this hemp legalization, we're now seeing CBD-infused products being sold in traditional outlets including Walgreens and CVS . Beyond that, CBD has already become so popular it's making its way into products you may never have suspected - for instance, CBD dog treats .
This CBD-popularity dovetails into a second area of federal reform - the FDA.
***While the conversation is evolving, real reform from the FDA appears slow … but moving
While CBD made from hemp is now legal thanks to the 2018 Farm Bill, CBD made from marijuana is still illegal. That's because marijuana remains a controlled substance.
The lack of formal guidance from the FDA has led to lots of confusion as to which CBD products are legal versus illegal, as well as marketing claims and general advertising. This has slowed CBD's growth (even though its current growth is staggering despite these challenges).
During one of his last days as FDA commissioner, Scott Gottlieb appeared before a House appropriations subcommittee and explained the challenge. In essence, regulating CBD will require a unique model that may take years to complete.
"That's the conundrum here," he said . "We don't have a really modern proxy for where this has happened."
That's why Gottlieb suggested that congressional action on CBD could lead to a faster resolution than paths through the FDA.
But in an effort to push the ball forward, the FDA will hold its first public hearings on whether to allow CBD to be legally used as a food-and-drink ingredient on May 31.
If you want to be a part of this conversation, the agency is asking for public comment. If you'd like to learn more and have your voice heard, click here for more information .
***Another key piece of federal reform is happening with the SAFE Banking Act
On March 28th, a congressional committee approved the Secure and Fair Enforcement (SAFE) Banking Act. The legislation is intended to increase marijuana businesses' access to banks.
This is big, because with marijuana still illegal under federal law, getting banks to accept deposits from marijuana-related companies is extremely difficult. That's because any bank that does business with marijuana companies could be charged with "aiding and abetting" - which is a federal crime.
In order for the marijuana industry to make its next quantum leap, banks need to be in on the game. And last Thursday's vote from the House Financial Services Committee is evidence that's happening.
The vote is also significant since it was approved despite some resistance from Republicans. You see, when Republicans held the House majority, they blocked marijuana amendments from even being considered.
Even last week, top Republicans on the Financial Services Committee requested to delay the vote, given some unanswered questions. The vote went ahead and was passed despite this request, which is a reflection of the chamber's new Democratic majority.
When the legislation will reach the floor is unclear. But if passed, federal banking regulators will not be able to punish financial institutions just because they service marijuana businesses that enjoy legal status under state or local law. That will be a watershed moment for the legalized marijuana industry.
***Coming full circle, given the status of these various federal reform efforts, where do we see the most impact on investments?
Marijuana is still illegal on the federal level. So, as you would expect, the investments seeing the biggest gains are those that have less risk of federal prosecution. CBD falls into this area, despite the current murkiness surrounding its FDA approval. Given this, many CBD stocks are exploding.
Matt's own Elixinol is one example. Elixinol makes and distributes CBD supplements and skincare products. At the time of this writing, Matt's subscribers are up over 175% since December.
So, CBD companies should be on your radar if you're looking to begin a portfolio of marijuana investments.
A second marijuana investment area that has some insulation from federal repercussions is found in "picks and shovels" companies - in other words, companies that provide services to the marijuana industry, but don't directly participate. For instance, a company that provides fertilizer and production equipment to a grower.
The example from Matt's portfolio is Innovative Industrial Properties. It's a REIT which buys properties from medical marijuana growers, then leases the buildings back to the growers. At the time of this writing, Matt's subscribers are up over 150% since August.
As to pure-play marijuana companies, such as those that sell marijuana directly to consumers, we expect they'll thrive in the coming years after full federal legalization. But until that happens, we anticipate outperformance from these "safer" marijuana plays.
That said, if you're looking for huge investment returns, the time to invest is usually before the crowd piles in. That means an investment in more direct marijuana companies today could pay off huge tomorrow.
If you're looking for help identifying marijuana investments, Matt will be hosting his first-ever Cannabis Stock Summit where he will explain the area he's most excited about right now. It's based on a strategy that targets a specific type of marijuana company positioned to benefit from a unique market event. Click here to learn more .
In the meantime, we'll continue to keep you up to speed as to the status of federal reform as 2019 unfolds.
Have a good evening,
Jeff Remsburg
Compare Brokers
The post A "Landmark" Bill on Marijuana Legalization appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A previous Farm Bill from 2014 allowed a few states to give out limited permits to grow hemp for specific uses, but it mostly remained illegal.The DEA's classification made no sense. CBD) oil hits the mainstream, we're looking at an industry with the potential to be 55 times larger in just five years … it has game-changing ramifications on the hemp industry …Prior to that, hemp was classified as a Schedule 1 drug according to the Drug Enforcement Administration (DEA), and federal laws prohibited growing or selling it. Can you believe that the DEA viewed hemp as more dangerous than cocaine, which is a Schedule 2 drug?"
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CBD) oil hits the mainstream, we're looking at an industry with the potential to be 55 times larger in just five years … it has game-changing ramifications on the hemp industry …Prior to that, hemp was classified as a Schedule 1 drug according to the Drug Enforcement Administration (DEA), and federal laws prohibited growing or selling it. A previous Farm Bill from 2014 allowed a few states to give out limited permits to grow hemp for specific uses, but it mostly remained illegal.The DEA's classification made no sense. Can you believe that the DEA viewed hemp as more dangerous than cocaine, which is a Schedule 2 drug?"
|
CBD) oil hits the mainstream, we're looking at an industry with the potential to be 55 times larger in just five years … it has game-changing ramifications on the hemp industry …Prior to that, hemp was classified as a Schedule 1 drug according to the Drug Enforcement Administration (DEA), and federal laws prohibited growing or selling it. A previous Farm Bill from 2014 allowed a few states to give out limited permits to grow hemp for specific uses, but it mostly remained illegal.The DEA's classification made no sense. Can you believe that the DEA viewed hemp as more dangerous than cocaine, which is a Schedule 2 drug?"
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CBD) oil hits the mainstream, we're looking at an industry with the potential to be 55 times larger in just five years … it has game-changing ramifications on the hemp industry …Prior to that, hemp was classified as a Schedule 1 drug according to the Drug Enforcement Administration (DEA), and federal laws prohibited growing or selling it. A previous Farm Bill from 2014 allowed a few states to give out limited permits to grow hemp for specific uses, but it mostly remained illegal.The DEA's classification made no sense. Can you believe that the DEA viewed hemp as more dangerous than cocaine, which is a Schedule 2 drug?"
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723441.0
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2019-03-12 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Ex-Dividend Date Scheduled for March 13, 2019
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-ex-dividend-date-scheduled-march-13-2019-2019-03-12
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nan
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Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on March 13, 2019. A cash dividend payment of $0.26 per share is scheduled to be paid on March 28, 2019. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 6th quarter that DEA has paid the same dividend.
The previous trading day's last sale of DEA was $17.96, representing a -16.41% decrease from the 52 week high of $21.49 and a 18.44% increase over the 52 week low of $15.16.
DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). DEA's current earnings per share, an indicator of a company's profitability, is $.09.
For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on March 13, 2019. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DEA was $17.96, representing a -16.41% decrease from the 52 week high of $21.49 and a 18.44% increase over the 52 week low of $15.16. Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on March 13, 2019.
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723442.0
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2019-03-11 00:00:00 UTC
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Ex-Dividend Reminder: Federal Realty Investment Trust, Medical Properties Trust and Easterly Government Properties
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder-federal-realty-investment-trust-medical-properties-trust-and-easterly
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Looking at the universe of stocks we cover at Dividend Channel , on 3/13/19, Federal Realty Investment Trust (Symbol: FRT), Medical Properties Trust Inc (Symbol: MPW), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Federal Realty Investment Trust will pay its quarterly dividend of $1.02 on 4/15/19, Medical Properties Trust Inc will pay its quarterly dividend of $0.25 on 4/11/19, and Easterly Government Properties Inc will pay its quarterly dividend of $0.26 on 3/28/19. As a percentage of FRT's recent stock price of $132.31, this dividend works out to approximately 0.77%, so look for shares of Federal Realty Investment Trust to trade 0.77% lower - all else being equal - when FRT shares open for trading on 3/13/19. Similarly, investors should look for MPW to open 1.37% lower in price and for DEA to open 1.45% lower, all else being equal.
Below are dividend history charts for FRT, MPW, and DEA, showing historical dividends prior to the most recent ones declared.
Federal Realty Investment Trust (Symbol: FRT) :
Medical Properties Trust Inc (Symbol: MPW) :
Easterly Government Properties Inc (Symbol: DEA) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recen t dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 3.08% for Federal Realty Investment Trust , 5.48% for Medical Properties Trust Inc, and 5.81% for Easterly Government Properties Inc.
In Monday trading, Federal Realty Investment Trust shares are currently up about 0.4%, Medical Properties Trust Inc shares are up about 1.2%, and Easterly Government Properties Inc shares are up about 0.6% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , on 3/13/19, Federal Realty Investment Trust (Symbol: FRT), Medical Properties Trust Inc (Symbol: MPW), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for MPW to open 1.37% lower in price and for DEA to open 1.45% lower, all else being equal. Below are dividend history charts for FRT, MPW, and DEA, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel , on 3/13/19, Federal Realty Investment Trust (Symbol: FRT), Medical Properties Trust Inc (Symbol: MPW), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Federal Realty Investment Trust (Symbol: FRT) : Medical Properties Trust Inc (Symbol: MPW) : Easterly Government Properties Inc (Symbol: DEA) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for MPW to open 1.37% lower in price and for DEA to open 1.45% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 3/13/19, Federal Realty Investment Trust (Symbol: FRT), Medical Properties Trust Inc (Symbol: MPW), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Federal Realty Investment Trust (Symbol: FRT) : Medical Properties Trust Inc (Symbol: MPW) : Easterly Government Properties Inc (Symbol: DEA) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for MPW to open 1.37% lower in price and for DEA to open 1.45% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 3/13/19, Federal Realty Investment Trust (Symbol: FRT), Medical Properties Trust Inc (Symbol: MPW), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for MPW to open 1.37% lower in price and for DEA to open 1.45% lower, all else being equal. Below are dividend history charts for FRT, MPW, and DEA, showing historical dividends prior to the most recent ones declared.
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2019-02-28 00:00:00 UTC
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Easterly Government Properties Inc (DEA) Q4 2018 Earnings Conference Call Transcript
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-q4-2018-earnings-conference-call-transcript-2019-02
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Easterly Government Properties Inc (NYSE: DEA)
Q4 2018 Earnings Conference Call
Feb. 28, 2019 , 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the Easterly Government Properties Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instruction) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Lindsay Winterhalter, Vice President, Investor Relations. Thank you. You may begin.
Lindsay Winterhalter -- Vice President, Investor Relations & Operations
Good morning. Before the call begins, please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Act Reform of 1995 and is making the statement for the purposes of complying with the Safe Harbor provisions. Although the company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by this forward-looking statements are reasonable, they can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those contained in Item 1A, Risk Factors, of this Annual Report on Form 10-K for the year ended December 31, 2018, which will be filed with the SEC on February 28, 2019 and its other SEC filings. The company assumes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise.
Additionally, on this conference call, the company may refer to certain non-GAAP financial measures, such as funds from operations and cash available for distribution. You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package under the Investor Relations page of the company's website at ir.easterlyreit.com.
I would now like to turn the conference call over to Darrell Crate, Chairman of Easterly Government Properties.
Darrell Crate -- Chairman
Thank you, Lindsay. Good morning, everyone, and thank you for joining us for this fourth quarter conference call. Today, in addition to Lindsay, I'm joined by Bill Trimble, the company's CEO; and Meghan Baivier, the company's CFO and COO.
We're very pleased with the accomplishments of 2018. While we delivered a strong dividend to shareholders, we also materially advanced many of our long-term strategic goals. As we shared at the beginning of the year, our goal is to scale the portfolio while adhering to our discipline of all deals being accretive. While much of our work was realized at the end of the year, run rate NOI increased by 32%. We're now in a position operationally where we can achieve significant growth without a commensurate increase to overhead costs. As you would expect from a REIT, that is a chief scale.
As you recall, scale is important, because it gave us the platform to bid credibly on the pipeline of development projects that are forecast over the next decade. We are pleased to have developed the cadence of delivering a project a year, the FEMA-Tracy in 2018, FDA-Alameda in 2019, FDA-Lenexa in 2020. Development is the most accretive way to deploy our capital. Through development, we have the greatest opportunity to add value to the government in assisting them through facility designed to accomplish their missions. This partnership with the government continues to grow as we work together and develop even greater insights into their needs.
Further, our acquisition engine continues to deliver. As we grow the number of high quality buildings, we can source and acquire remains reasonably constant. We're very intentional about not lowering the quality bar to increase acquisition volume. However, our scale has positioned us to be able to acquire larger portfolios without derailing our everyday activities.
We also made progress on both sides of the balance sheet. Despite a year going by, we increased the duration of our leases and maintained our cost of debt in a rising rate environment. The duration of our liabilities continues to be in line with the average remaining lease term, reducing the effect of rising treasuries on the NAV of the portfolio.
As everyone on this call is aware, at the end of 2018 and the beginning of 2019, the country experienced the longest shutdown in US history. Even in times of political impasse, we are happy to report we received every single rent check owed to us by the federal government during this prolonged partial government shutdown. Easterly strategy continues to be singularly focused on the strength and security of long-term stable cash flows.
The strength and stability were proven during this government shutdown as the primary tenant continues to have never defaulted on a single lease payment in its long history of rental obligations. Hence, we can say that we have the highest quality credit revenue stream in the REIT universe.
With that, we're very proud of the work accomplished in 2018 and we remain excited about the opportunities to continue to grow the portfolio and deliver strong economic results in 2019 and beyond.
And, in closing, I want to take a moment to thank the Easterly team, the Board, our vendors and bankers for their effort and support to move us forward materially this year. I would also like to thank our shareholders for their partnership and engagement as we continue to build the premier portfolio of real estate assets leased to the United States federal government.
And, now, with that, I'll turn it over to Bill.
William Trimble -- President and Chief Executive Officer
Thanks, Darrell, and good morning. Thank you for joining us for our fourth quarter earnings call . As Darrell mentioned, 2018 was a year of significant growth for Easterly. In 2018, we successfully closed on 15 properties, 11 of which came from the 14 property portfolio, accretively growing our portfolio by nearly 40%, while maintaining true to our bull's eye acquisition strategy. Subsequent to year-end, we also closed on the remaining three portfolio properties. As a reminder, this portfolio had a combined acquisition value of $430 million and is comprised of high-quality assets that closely mirror the profile of our existing portfolio.
We acquired portfolio consists of approximately 1.5 million square feet of rental space, 99% of which is leased with a weighted average lease expiration year of 2022. Additionally, 79% of the assets are build-to-suit construction, meaning the design and functionality of the building was constructed to meet the specific needs of the underlying tenants. In total, we completed 15 acquisitions for a combined value of $410 million, encompassing 1.4 million square feet of space. We expanded our tenant base to welcome important mission-critical agencies, such as the US Department of the Treasury and the Federal Emergency Management Agency, or FEMA.
Further, we increased our weighted average remaining lease term over the course of 2018. Our acquisition volume and remaining pipeline has never been more robust. We are constantly vetting opportunities to ensure the overall quality of our portfolio remains strong. Similarly, acquisitions like VA-Golden, DEA-Upper Marlboro and Treasury Birmingham highlights the company's continued ability to source and execute on accretive marketed as well as unmarketed one-off transactions.
Turning to development. Our team continues to make meaningful progress at our two active development sites, FDA-Alameda and FDA-Lenexa. Mike Ibe, Vice Chairman and Head of Acquisitions & Development and his seasoned development team have had their decades of experience in federally leased assets to meet the real estate needs of this important agency within the US government. This expertise was recently demonstrated with the delivery of the FEMA-Tracy facility in Tracy, California. We are happy to report that FEMA-Tracy is fully operational and meeting the everyday needs of its employees.
FDA-Alameda is now on track to deliver in the third quarter of 2019 and FDA-Lenexa is still expected to deliver in the second quarter of 2020. As a reminder, these non-speculative development projects provides a great opportunities to see increased yields on brand new facilities with long-term lease expirations. On the development pipeline, we continue to monitor projects of all sizes that could provide us with an opportunity to grow the portfolio, while still adhering to our strict underwriting criteria.
Turning to the current portfolio, 2018 was another great year for our asset management team. Our team worked hand in hand with the federal government to deliver important mission fulfilling reimbursable tenant projects, totaling over $4.9 million in government investment in our buildings. There are also active and ongoing projects continuing for the beginning of 2019. Opportunities to work with the government to improve our buildings for tenant funded projects are most welcome by Easterly. This provides us with the occasion to ensure our buildings are still assisting in the fulfillment of important government missions. It also serves as another touch point with the tenant agency and the GSA to make sure we are doing our best to be strong partners to the federal government. Because, in reality, we are partners with the US government and we worked diligently to strategize with and accommodate our tenants and the unique requirements associated with our occupancy.
Finally, it is important to note that since our founding as a private company, environmental awareness has been one of the pillars of our firm. Our tenants, the United States federal government is at the forefront of requirements for LEED certification for new construction. From our earliest days, we have viewed green buildings as an important positive for underwriting purchases. As of today, we have 16 LEED certifications for our facilities, which we believe to be the largest number of single-tenant build-to-suit properties leased by any owners of the government. The company has long been a strong supporter of green initiatives through programs like LED lighting upgrades, LEED-certified buildings, LEED-certified staff, solar power upgrades, geothermal heating and cooling, and ENERGY STAR participations.
While we are proud of our dedication to these green initiatives, it is not just environmental responsibility that drives us, it's our corporate goals to promote the health and well-being of our tenants and employees, support the community in which we live, work and play, provide safe and supportive working accommodations and learn from the wealth of diversity experience our team and our Board can offer as we seek to grow our corporate fully responsible company and act as a good stewards to our investors and the community at large.
Team building through volunteerism and philanthropy is also extremely important to Easterly. Please visit Easterly's recent undertakings on the company's website at www.easterlyreit.com under the Corporate Responsibility. While ESG has been an important component of our firm since its founding, we look forward to getting better in every way when it comes to this important mission. Our internal ESG team, which includes members of the executive team, asset management team, legal team and investor relations will meet on recurring basis to seek opportunities to continue executing on this commitment.
To conclude, we are really pleased with the opportunities presented in 2018 and we look forward to executing in 2019 and beyond. This marks a meaningful point in the company's trajectory and we thank you for joining us on this journey.
I thank you for your time this morning and for your continued support and partnership. With that, I will turn the call over to Meghan to discuss the company's quarterly and year-end financial results.
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
Thank you, Bill. Today I will review our current portfolio, discuss our fourth quarter and year-end results, provide an update on our balance sheet and capital markets activities and discuss our 2019 guidance. Additional details regarding our fourth quarter and year-end results can be found in the company's fourth quarter earnings release and supplemental information package. GAAP measures and reconciliations of non-GAAP measures discussed on this call to GAAP measures have been provided in our supplemental information package.
As of December 31st, we own 62 operating properties comprising approximately 5.3 million square feet of commercial real estate with two additional properties totaling 129,000 square feet under development. The weighted average remaining lease term for our portfolio was 7.6 years. Despite a whole year having packed, that is longer by more than half of the year from where we stood at year-end 2018, impressive.
In addition to growing the duration of our assets, the average age of our portfolio has defied the passage of time and remained young at 12.5 years. Our portfolio occupancy remained at a 100% and finally 99% of our annualized lease income continues to be backed by the full faith and credit of the United States government.
For the fourth quarter, net income per share on a fully diluted basis was $0.01. FFO per share on a fully diluted basis was $0.31. FFO as adjusted per share on a fully diluted basis was $0.29, and our cash available for distribution was $17.1 million.
For the year-ended December 31, 2018, net income per share on a fully diluted basis was $0.11. FFO per share on a fully diluted basis was $1.17. FFO as adjusted per share on a fully diluted basis was $1.03, and our cash available for distribution was $54.9 million.
Underlying these financial results was tremendous scaling of our portfolio paired with disciplined growth of G&A and strong management of the balance sheet in the face of rising rates. In 2019, we grew NOI by 22% year-over-year, EBITDA by 24%, and FFO by 21%. This FFO growth was generated in part by maintaining a duration of our liabilities that is in line with our assets and a weighted average cost of debt within 10 basis points of this time a year ago, while the 10-year treasury rose approximately 30 basis points and throughout the year widened out as much as 85 basis points.
Turning on more detail to the balance sheet, at quarter end, the company had total indebtedness of $771 million, which is comprised of $135 million outstanding on its unsecured revolving credit facility, $150 million outstanding on its 2018 term loan facility, $100 million outstanding on its 2016 term loan facility, $175 million of senior unsecured notes and $221 million of mortgage debt. Availability on our revolving line of credit stood at $315 million.
As of December 31st, Easterly's net debt to total enterprise value was 41.1% and its net debt-to-annualized quarterly EBITDA ratio was 6.7 times. Pro forma for our full quarter of operations from the five properties acquired in the fourth quarter, Easterly's net debt-to-annualized quarterly EBITDA ratio was 6.6 times.
In 2018, the company pursued a number of capital markets transactions, which have ensured that our balance sheet remains conservative and that the company has access to capital and capacity to pursue accretive acquisitions and development, which we believe will drive earnings and distributable cash flows into 2019 and 2020.
In June, the company replaced its existing senior unsecured revolving credit facility with an amended and upsized credit facility consisting of a $450 million revolver and a $150 million senior unsecured term loan. The revolver includes an accordion feature that may provide the company with additional capacity of up to $250 million for a total amended credit facility capacity of up to $850 million. This is $200 million higher than the company's prior facility.
With growth in our owned portfolio and prospective pipeline of acquisitions and development over the course of 2018, we have grown our suite of lending relationships, ensuring growth in total borrowing capacity, while managing incremental availability. We've also remain conscious of managing our weighted average borrowing cost. And in the fourth quarter, we swapped the base floating rate of our new $150 million 2018 term loan to a rate of 2.71% for five years.
On October 2018 -- in October 2018, we amended our 2016 term loan facility to reduce the interest rate margin applicable to borrowings by 40 to 45 basis points depending on our leverage and extended the maturity date by six months to March 2024. In June 2018, the company completed an equity offering of 20.7 million shares in conjunction with the announcement of the 14 property portfolio acquisition. The offering consisted of 13.7 million shares offered directly by the company and 7 million shares offered on a forward basis at a price to the public of $19.25 per share.
The company expects to physically settle the forward sales agreements to no later than June 21, 2019, and the offering is expected to result in approximately $379 million of total net proceeds to the company, including amounts previously received. We believe these four activities; the credit facility upsizing, the 2018 term loan swaps, the 2016 term loan amendment and the equity offerings; put the company in a very strong competitive position going forward.
We have increased our borrowing capacity from our banking relationships by $200 million and at year-end had $315 million of available capacity. We have maintained a healthy duration on our liabilities, in line with our weighted average remaining lease term. Additionally, we have maintained a predominantly fixed rate structure with a weighted average interest rate of 3.7%.
Finally, the June 2018 equity offering increased liquidity in the stock and put the company in a position of strength with dry powder to execute on future acquisitions and development.
Turning to earnings guidance. For the 12 months ending December 31, 2019, the company is maintaining its guidance for FFO per share on a fully diluted basis of $1.16 to $1.20. This guidance, which is forward-looking and reflects management's view of current and future market conditions, is based on the company completing $200 million of acquisitions, separate and apart, from the January 2019 closing of the final three properties in the 14-property portfolio and completing $75 million to $100 million of gross development related investment in the year.
Additionally, this guidance includes two factors, which in combination diminish the company's FFO per share results relative to the company's 2018 performance by approximately $0.045 per share on a fully diluted basis. First, positive non-cash adjustments to rental income from the amortization of above and below market leases are expected to decline by approximately $2.5 million in 2019. Second, the company's weighted average shares on a fully diluted basis in 2019 will include approximately 1 million units that are the result of long-term incentive plan grants that were made at the time of IPO. Performance for these two factors, the midpoint of 2019 guidance represents year-over-year FFO per share on a fully diluted basis growth of approximately 4.5%.
Finally, the company's guidance for 2019 FFO per share on a fully diluted basis represents expected FFO as adjusted per share on a fully diluted basis growth of approximately 6% to 11%. This is due in part to an anticipated year-over-year change in straight-line rent and above and below market lease amortization adjustments of approximately $4.5 million. More simply, expected growth in FFO per shares due to accounting adjustments is masking growth in FFO's adjusted per share, a metric which is more indicative of expected operating cash flow growth.
We've built an incredibly strong portfolio of assets and in 2019 6% to 11% of expected growth in FFO as adjusted per share, we believe, is indicative of a remarkable year of value creation for investors.
Thank you. And, with that, I'll turn it back to Jerry.
Darrell Crate -- Chairman
Great. Thank you, everyone,
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
Jerry, I'll turn it back to you.
Questions and Answers:
Operator
Thank you. We'll now begin the question-and-answer session. (Operator Instructions) The first question is from Manny Korchman, Citigroup. Please go ahead, sir.
Jill Sawyer -- Citigroup -- Analyst
Hey. Good morning, everyone. It's Jill Sawyer here with Manny. Well, going back to the 2019 robust pipeline, could you give us more color on the pipeline, maybe split into single acquisitions, portfolios and development?
William Trimble -- President and Chief Executive Officer
Yeah. I think that -- first of all, we've always -- I think, almost since our founding, have had about $700 million in, what I call our, active pipeline and then we try to keep a couple of hundred million dollars much more near term and that's been fairly consistent. We saw it begin to turn up last year and I think that was a factor due to interest rates and actually a lot of the initial 15-year lease terms on these buildings, because there was a huge boom in federal build-to-suit construction prior to the market turn down in 2008, so those properties are beginning to roll.
Our guidance is based on single acquisitions, not on large portfolios. There are a number of wonderful opportunities, billions of dollars in a large portfolio universe, but they do take a long time. There are a number of factors that have to come into play in order to execute on those. So from our standpoint, I think it's fairly constant and we've got a terrific pipeline for this year and, hopefully, are already filling up in some ways for next year as well.
Jill Sawyer -- Citigroup -- Analyst
Great. And on the similar subject, do you think the government shutdown poster a potential shut down in the future has any impact on the transaction markets, for example maybe scares away some of the buyers?
William Trimble -- President and Chief Executive Officer
I would say, no. I think that we've seen a pretty strong market. I don't think that either party probably is too interested in doing another shut down here in the near future, but we can, as Darrell mentioned, we consistently got checks through the whole period of time and obviously there are some minor inconveniences, but we really didn't see any impact from the sales or situation -- an operating situation in those properties.
Jill Sawyer -- Citigroup -- Analyst
Okay. Great. That's it for me. Thank you.
Operator
The next question is from Michael Carroll, RBC Capital Markets. Please go ahead, sir.
Michael Carroll -- RBC Capital Markets -- Analyst
Yeah. Thanks. Bill, can you talk a little bit about those large portfolio transactions? I know that you've previously highlighted that there are a number that are in the market, do these portfolios typically trade? Do you think that they will trade in 2019? And if they do, I guess, what type of valuation are you looking at? Is this something that you could potentially pursue or is that something that is going to come out to have valuation that you'll probably be on the sidelines for now?
William Trimble -- President and Chief Executive Officer
Well, first of all, good morning, Michael. Second of all, I'm not going to comment on what we're going to do this year specifically of portfolios. But I think that we have proven certainly with our last acquisition of the 14-building portfolio that was right in our bull's eye and very attractive on almost every metric we could think of. There are not so many portfolios I'd like to describe them. We probably have many friends on the phone today, but they are known by us and we are in active discussions with them. But I think that you can view the $200 million that we put out there is pretty much the bread and butter concentrated (technical difficulty) for the bull's eye ones and twos that we've executed on the past. If something comes along that is accretive and fits our bull's eye, of course we'll take a look at.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay, great. And then I guess, Darrell made some comments about developments, on how those generate some pretty attractive returns for you. And can you talk a little bit about what you're seeing out there? Is there any new development projects that you think you can start pursuing in 2019 or should we still expect that you're just going to be completing the stuff that you've already -- pretty broken ground on.
Darrell Crate -- Chairman
Yeah. I mean, as I said in my comments, we really -- we've created this cadence of a project a year. That's indicative of the government sort of loosening the rents on facility -- on a new facility development. We are very well positioned to win our fair share of those developments and that's what we're anticipating going forward. Again, why we scaled the company so that we could be in a position to take on some of the larger projects that are coming down the pipeline and we will report to you if we have some good news.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay, great. And then I guess, finally, Meghan, could you talk a little bit about how we should be modeling G&A? I know that you've added a lot of properties and you scaled up G&A recently, has that pretty much done? I mean, when you pursue these $200 million of acquisition, should we be expecting a bigger G&A increase in 2019 too?
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
Yeah. So Mike, you're right, we did scale up for the digestion of the 14-property portfolio, so when I look to 2019, implicit in our view of guidance is organizational growth that is far more restrained than NOI growth.
Michael Carroll -- RBC Capital Markets -- Analyst
Okay, great. Thank you.
Operator
(Operator Instruction) We have a question from Merrill Ross, Boenning, Inc. Please go ahead.
Merrill Ross -- Boenning and Scattergood, Inc. -- Analyst
Hi. Good morning, and thank you. In the lease expiry in 2019, will there be examples of renewals on bull's eye properties that can provide further evidence of the value of the future organic growth implied in leasing spreads?
William Trimble -- President and Chief Executive Officer
Good morning. Absolutely will be my answer. Yes.
Merrill Ross -- Boenning and Scattergood, Inc. -- Analyst
Great. It's helpful to have these indicators of the future value, I think.
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
Yeah. Merrill, as we work with the government to finalize the terms, particularly around tenant improvements associated with regionals, we look forward to sharing with you details on the outcome.
Merrill Ross -- Boenning and Scattergood, Inc. -- Analyst
Thank You.
Operator
The next question is from Jon Petersen, Jefferies. Please go ahead, sir.
Jonathan Petersen -- Jefferies -- Analyst
Great, thanks. Can you remind us on the equity offering you did last year, there were 7 million shares on a forward basis. Have you settled any of those so far? And kind of what's the timing on what we should expect there? And then maybe more high level, how should we think about leverage on a debt-to-EBITDA basis trending throughout 2019?
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
Yeah. Hi, Jon. No. As of today, we have not settled that forward contract. We are looking to sort of tying that to ensure that our balance sheet maintains in check in that 6 to 7 times range and would certainly be at the low-end of that upon settlement of the equity. And as we go through the year, the tool is in our tool kit, if you will, to help match fund acquisitions should allow us to continue to maintain consistent leverage in the midpoint of that range with a potential slight uptick as we near the end of the Alameda development and we await for those long term reimbursement.
Jonathan Petersen -- Jefferies -- Analyst
What's the end date upon which you have to draw down those 7 million shares?
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
We have until June 21st of this year.
Jonathan Petersen -- Jefferies -- Analyst
Okay. And then just looking at AFFO adjustment, I mean, do you have any large CapEx needs, tenant improvements or leasing commissions or anything that we should be thinking about with some of your renewals this year?
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
Yeah. So as we look out to the portfolio on the maintenance capital perspective, we're still expecting this in that range of our previously stated kind of $1 to $1.50 per square foot range.
Jonathan Petersen -- Jefferies -- Analyst
All right. Thank you.
Operator
There are no further questions, at this time. I'd like to turn the floor back over to Mr. Darrell Crate for closing comments. Please go ahead, sir.
Darrell Crate -- Chairman
We appreciate you joining the Easterly Government Properties' fourth quarter 2018 conference call. The company is growing in a foundation of premier assets backed by the full faith and credit of the US government and we appreciate your continued partnership and look forward to speaking with you all again soon.
Operator
This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.
Duration: 30 minutes
Call participants:
Lindsay Winterhalter -- Vice President, Investor Relations & Operations
Darrell Crate -- Chairman
William Trimble -- President and Chief Executive Officer
Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer
Jill Sawyer -- Citigroup -- Analyst
Michael Carroll -- RBC Capital Markets -- Analyst
Merrill Ross -- Boenning and Scattergood, Inc. -- Analyst
Jonathan Petersen -- Jefferies -- Analyst
More DEA analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Similarly, acquisitions like VA-Golden, DEA-Upper Marlboro and Treasury Birmingham highlights the company's continued ability to source and execute on accretive marketed as well as unmarketed one-off transactions. Easterly Government Properties Inc (NYSE: DEA) Q4 2018 Earnings Conference Call Feb. 28, 2019 , 10:00 a.m. As we shared at the beginning of the year, our goal is to scale the portfolio while adhering to our discipline of all deals being accretive.
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Duration: 30 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relations & Operations Darrell Crate -- Chairman William Trimble -- President and Chief Executive Officer Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer Jill Sawyer -- Citigroup -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Boenning and Scattergood, Inc. -- Analyst Jonathan Petersen -- Jefferies -- Analyst More DEA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q4 2018 Earnings Conference Call Feb. 28, 2019 , 10:00 a.m. As we shared at the beginning of the year, our goal is to scale the portfolio while adhering to our discipline of all deals being accretive.
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Duration: 30 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relations & Operations Darrell Crate -- Chairman William Trimble -- President and Chief Executive Officer Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer Jill Sawyer -- Citigroup -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Boenning and Scattergood, Inc. -- Analyst Jonathan Petersen -- Jefferies -- Analyst More DEA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q4 2018 Earnings Conference Call Feb. 28, 2019 , 10:00 a.m. As we shared at the beginning of the year, our goal is to scale the portfolio while adhering to our discipline of all deals being accretive.
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Duration: 30 minutes Call participants: Lindsay Winterhalter -- Vice President, Investor Relations & Operations Darrell Crate -- Chairman William Trimble -- President and Chief Executive Officer Meghan Baivier -- Executive Vice President, Chief Financial Officer and Chief Operating Officer Jill Sawyer -- Citigroup -- Analyst Michael Carroll -- RBC Capital Markets -- Analyst Merrill Ross -- Boenning and Scattergood, Inc. -- Analyst Jonathan Petersen -- Jefferies -- Analyst More DEA analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties Inc (NYSE: DEA) Q4 2018 Earnings Conference Call Feb. 28, 2019 , 10:00 a.m. As we shared at the beginning of the year, our goal is to scale the portfolio while adhering to our discipline of all deals being accretive.
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2019-02-27 00:00:00 UTC
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3 Arguments For and Against Buying GW Pharmaceuticals
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https://www.nasdaq.com/articles/3-arguments-and-against-buying-gw-pharmaceuticals-2019-02-27
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The marijuana industry has truly blossomed before our eyes in a relatively short period of time. As recently as 2005, just a third of people polled by Gallup wanted to see cannabis legalized in the United States. But as of October 2018, 2 out of 3 people now feel that legalization is the appropriate path for marijuana.
And it's not just that two-thirds of all U.S. states have given the green light to pot. We've also witnessed Canada end nine decades of recreational weed prohibition . In October, it became the first industrialized country in the world, and only the second overall behind Uruguay, to have legalized adult-use marijuana. This followed Mexico, which, in June 2017, gave the OK for legal sales of medical pot. Our southern neighbor is also considering legislation in 2019 that could make it the third country worldwide to have legalized adult-use cannabis.
No longer is the marijuana industry considered taboo. Now, it's a legitimate business model and a potentially intriguing investment opportunity. This big question is: What stocks to buy?
While direct players -- i.e., companies that come in direct contact with the cannabis plant -- are often touted as the most attractive, there are a number of ancillary and indirect players that are equally, if not more, exciting. One such stock that continues to captivate investors' attention is cannabinoid-focused drugmaker GW Pharmaceuticals (NASDAQ: GWPH) .
However, the stock market isn't a popularity contest, and valid arguments can be made from both sides of the aisle that GW Pharmaceuticals may or may not be worth buying. Let's take a closer look at a handful of compelling arguments from each side.
GW Pharmaceuticals has the tools to make you a rich person
The most obvious reason investors should consider GW Pharmaceuticals as a solid investment opportunity is that the company earned the first-ever cannabis-derived drug approval from the U.S. Food and Drug Administration (FDA) this past June for Epidiolex. To be clear, it had gained approval in the EU for Sativex, a cannabinoid-based medicine for the treatment of spasticity associated with multiple sclerosis, years earlier, but Sativex was never approved in the United States.
Epidiolex, a cannabidiol (CBD)-based oral solution, handily ran circles around the placebo in multiple late-stage trials for two rare types of childhood-onset epilepsy, Dravet syndrome and Lennox-Gastaut syndrome. In studies, Epidiolex led to seizure frequency reductions of roughly 30% to 40% from baseline, which was significantly better than the placebo arm. Epidiolex launched in early November , with Wall Street calling for revenue to soar from close to $15 million in 2019 to $118 million by 2020.
Secondly, investors are going to be pleased with the momentum behind medical cannabis in the U.S., as well as Epidiolex's scheduling from the U.S. Drug Enforcement Agency (DEA). An April 2018 survey from the independent Quinnipiac University found that 93% of surveyed adults favored the idea of a physician being able to prescribe medical marijuana. Also, when the DEA scheduled Epidiolex -- as it's required to since it contains a federally regulated substance (CBD) -- it gave the drug the lowest possible classification (Schedule V). This should create little-to-no restrictions when attempting to prescribe the drug and should help Epidiolex's sales shoot out of the gate.
Third and finally, GW Pharmaceuticals is the hands-down leading developer of cannabinoid-based therapies. While there are other drugmakers dabbling in synthetic cannabinoids, or dealing with one or two cannabinoid-based products, GW Pharmaceuticals has two approved products, as well as eight ongoing mid-stage or late-stage trials to expand existing label indications or test brand-new compounds (GWP42006). There's certainly a premium that could be paid for the uniqueness that GW Pharmaceuticals brings to the table.
Three arguments that'll send you running away from GW Pharmaceuticals
Then again, there are plenty of reasons that investors should be leery of GW Pharmaceuticals. Arguably the top reason is that the company's first-mover advantage in Dravet syndrome, where no other drug is currently approved to treat the disorder, isn't a guarantee of success.
Case in point: Vertex Pharmaceuticals (NASDAQ: VRTX) . Today, Vertex is a powerhouse drugmaker best known for its line of cystic fibrosis medicines. But back in 2011, it was all the talk when it brought a brand-new medicine to market known as Incivek to treat hepatitis C. In less than four months following the launch of Incivek, it had brought in almost $500 million in sales, with the drug delivering $1.16 billion in revenue for 2012. But more intriguing hepatitis C medicines from Gilead Sciences and AbbVie hit pharmacy shelves and pushed Vertex's Incivek to the wayside . By August 2014, just a year and a half removed from reporting $1.16 billion in sales for its then-lead drug, Vertex discontinued sales of Incivek. It's possible that Epidiolex could have its own sputtering-out moment if other, more intriguing medicines were to find their way onto pharmacy shelves.
A second point that should raise concern among investors is the strong likelihood that GW Pharmaceuticals will soon face competition in Dravet syndrome. Zogenix (NASDAQ: ZGNX) shocked Wall Street in September 2017 when i t report ed stellar data for ZX008, which is now known as Fintepla, as a treatment for Dravet syndrome. Then, in July 2018, Zogenix again dazzled with late-stage data, showing that its drug had met the primary endpoint of a statistically significant reduction in seizure frequency for Dravet syndrome patients when compared to the placebo. More specifically, it led to a nearly 55% reduction in seizure frequency from baseline. Assuming the FDA likes what it sees from a safety standpoint, Zogenix's lead therapy could hit pharmacy shelves near the end of this year, ending GW Pharmaceuticals' run as the only choice for Dravet syndrome patients.
Lastly, pessimists could easily harp on GW Pharmaceuticals' valuation. This is a company that's not expected to be profitable on a recurring basis until 2022, and may see sales for its lead drug peak between $500 million and $700 million, especially with competition from Zogenix on the horizon. That means investors are willingly paying for a $4.6 billion market-cap stock that could be trading for seven to nine times peak sales, and won't be profitable for at least three more years. Even with the arbitrariness of biotech and pharmaceutical stock valuations, seven times peak sales is pricey.
Now that you've heard both arguments, the only question left to ask is what side of the aisle do you find yourself on?
10 stocks we like better than GW Pharmaceuticals
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*Stock Advisor returns as of January 31, 2019
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Vertex Pharmaceuticals. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Secondly, investors are going to be pleased with the momentum behind medical cannabis in the U.S., as well as Epidiolex's scheduling from the U.S. Drug Enforcement Agency (DEA). An April 2018 survey from the independent Quinnipiac University found that 93% of surveyed adults favored the idea of a physician being able to prescribe medical marijuana. Also, when the DEA scheduled Epidiolex -- as it's required to since it contains a federally regulated substance (CBD) -- it gave the drug the lowest possible classification (Schedule V).
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Secondly, investors are going to be pleased with the momentum behind medical cannabis in the U.S., as well as Epidiolex's scheduling from the U.S. Drug Enforcement Agency (DEA). An April 2018 survey from the independent Quinnipiac University found that 93% of surveyed adults favored the idea of a physician being able to prescribe medical marijuana. Also, when the DEA scheduled Epidiolex -- as it's required to since it contains a federally regulated substance (CBD) -- it gave the drug the lowest possible classification (Schedule V).
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Secondly, investors are going to be pleased with the momentum behind medical cannabis in the U.S., as well as Epidiolex's scheduling from the U.S. Drug Enforcement Agency (DEA). An April 2018 survey from the independent Quinnipiac University found that 93% of surveyed adults favored the idea of a physician being able to prescribe medical marijuana. Also, when the DEA scheduled Epidiolex -- as it's required to since it contains a federally regulated substance (CBD) -- it gave the drug the lowest possible classification (Schedule V).
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Secondly, investors are going to be pleased with the momentum behind medical cannabis in the U.S., as well as Epidiolex's scheduling from the U.S. Drug Enforcement Agency (DEA). An April 2018 survey from the independent Quinnipiac University found that 93% of surveyed adults favored the idea of a physician being able to prescribe medical marijuana. Also, when the DEA scheduled Epidiolex -- as it's required to since it contains a federally regulated substance (CBD) -- it gave the drug the lowest possible classification (Schedule V).
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2019-02-16 00:00:00 UTC
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Could Mexico Soon Be Exporting Marijuana to the U.S.?
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DEA
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https://www.nasdaq.com/articles/could-mexico-soon-be-exporting-marijuana-us-2019-02-16
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If you think the marijuana industry is delivering incredible growth now, then you haven't seen anything yet. According to a report from Arcview Market Research and BDS Analytics, worldwide weed sales are slated to grow by 38% in 2019 to $12.8 billion, with investment firm Cowen Group projecting an even more aggressive surge in global sales to $75 billion by 2030 .
Some of this growth is expected to be organic, with Canada's recreational weed industry in the early stages of ramping up. Within a few years, once growers are producing near their peak capacity and regulatory red tape issues have been resolved, Canada could very well be on its way to nearly $6 billion in annual pot sales.
But a good portion of this future revenue to come is going to be the result of new legalizations. The U.S. federal government changing its tune on cannabis would certainly roll out the red carpet to the largest cannabis market by projected annual sales in the world. Unfortunately, there's no telling if or when Capitol Hill will change its mind, despite the American public being overwhelmingly in favor of legalizing marijuana , according to an October 2018 Gallup poll.
Rather, investors may have to look beyond the borders of the United States to find the next great cannabis growth story. And where might that be, you ask? According to a recent Forbes interview with this country's former president, Mexico could be a sleeping marijuana giant that's about to waken.
America's other neighbor could be a cannabis powerhouse
Although former Mexican President Vicente Fox has his differences with current president Andres Manuel Lopez Obrador, the legalization of cannabis is an area in which the two leaders agree. And that's interesting, because during Fox's term as president between 2000 and 2006, he voiced strict opposition to cannabis legalization.
But understand that President Obrador and former President Fox aren't alone in their desire to see recreational marijuana legalized. Mexico's majority political party is also in favor of legalization as a means to generate revenue and "put the hurt," so to speak, on drug cartels operating out of Mexico and Central America. Plus, Mexico's Supreme Court has ruled five times since 2015 that the imposition of a ban on recreational marijuana is unconstitutional. Under Mexican law, if the Supreme Court reaches five similar decisions on an issue, it becomes the court standard and is applied throughout the country .
As the icing on the cake, Mexico gave the green light to medical marijuana back in June 2017, so the infrastructure and regulatory oversight have already been laid for the cannabis industry. It would simply be a matter of expanding them to suit Mexico's adult-use industry.
What would make Mexico particularly attractive to investors is its population of around 132 million, which is more than triple the population of Canada. Even taking into account Canada's higher annual GDP and individual wages, Mexico's sheer population advantage could lead to a market that Fox believes will outpace California, which is itself the fifth-largest economic entity by GDP. Some estimates call for California to hit $11 billion in annual pot sales by 2030, which gives you some idea of what Mexico might be capable of in terms of weed sales.
Say what? Legal marijuana exports to the U.S. from Mexico?
However, it wasn't Fox's support for legal cannabis, or even the progress that's being made in Mexico to push toward adult-use legalization, that really stood out from his interview. Rather, it was the former president's candid discussion that, for a NAFTA (North American Free Trade Agreement) partner, cannabis would become a globally exported commodity like other products. Or, to dig beneath the surface, Vicente Fox foresees a future in which his home country of Mexico becomes an exporter of cannabis to the United States.
Yet to date, we've seen very little in the way of acceptance from the U.S. in allowing marijuana from outside sources to enter the country. Israel had been planning to become an exporter of cannabis to the U.S., but when Israeli officials learned that President Trump had soured on the idea , it was abandoned.
Rather, the only recorded cannabis exports to the U.S. to date include Tilray 's cannabinoid formulation in September that contained cannabidiol and tetrahydrocannabinol for a clinical study at the University of California, San Diego, and Canopy Growth 's (NYSE: CGC) export of medical cannabis to a U.S. research partner in October.
The U.S. federal government has agreed to take a hands-off approach to state-level legalizations, but it's still exceptionally strict with the idea that marijuana be grown and stay within a legal state's borders. Essentially, the ability to track the product from seed to sale is important to the U.S. Drug Enforcement Agency (DEA) and federal government, and that can't always be done with product that's being grown in foreign countries and imported into the United States.
But if there is a cannabis grower with an inside track to U.S. exports, it'd be Canopy Growth. Having completed the first-ever dried cannabis export following an OK from the DEA, Canopy already has its foot in the door. Plus, with the company being awarded a hemp growing and processing license in New York State, Canopy is entrenching itself in the U.S. market.
In other words, despite Fox's commentary, I wouldn't be counting on Mexico shipping marijuana to the U.S. anytime soon. I would, however, look for our southern neighbor to possibly become the third country worldwide, aside from Canada and Uruguay, to legalize recreational pot sometime this year.
10 stocks we like better than Canopy Growth Corp.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Canopy Growth Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of January 31, 2019
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some estimates call for California to hit $11 billion in annual pot sales by 2030, which gives you some idea of what Mexico might be capable of in terms of weed sales. Israel had been planning to become an exporter of cannabis to the U.S., but when Israeli officials learned that President Trump had soured on the idea , it was abandoned. The U.S. federal government has agreed to take a hands-off approach to state-level legalizations, but it's still exceptionally strict with the idea that marijuana be grown and stay within a legal state's borders.
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Some estimates call for California to hit $11 billion in annual pot sales by 2030, which gives you some idea of what Mexico might be capable of in terms of weed sales. Israel had been planning to become an exporter of cannabis to the U.S., but when Israeli officials learned that President Trump had soured on the idea , it was abandoned. The U.S. federal government has agreed to take a hands-off approach to state-level legalizations, but it's still exceptionally strict with the idea that marijuana be grown and stay within a legal state's borders.
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Some estimates call for California to hit $11 billion in annual pot sales by 2030, which gives you some idea of what Mexico might be capable of in terms of weed sales. Israel had been planning to become an exporter of cannabis to the U.S., but when Israeli officials learned that President Trump had soured on the idea , it was abandoned. The U.S. federal government has agreed to take a hands-off approach to state-level legalizations, but it's still exceptionally strict with the idea that marijuana be grown and stay within a legal state's borders.
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Some estimates call for California to hit $11 billion in annual pot sales by 2030, which gives you some idea of what Mexico might be capable of in terms of weed sales. Israel had been planning to become an exporter of cannabis to the U.S., but when Israeli officials learned that President Trump had soured on the idea , it was abandoned. The U.S. federal government has agreed to take a hands-off approach to state-level legalizations, but it's still exceptionally strict with the idea that marijuana be grown and stay within a legal state's borders.
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2019-02-01 00:00:00 UTC
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3 Top Marijuana Stocks to Avoid Like the Plague in February
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https://www.nasdaq.com/articles/3-top-marijuana-stocks-avoid-plague-february-2019-02-01
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Following a rather ugly 2018 for marijuana stocks that saw 10 prominent cannabis companies lose at least half of their value, the industry has come roaring out of the gate in 2019. And it's not hard to understand why Wall Street and investors are so bullish.
This quarter we're getting our first glimpse of post-legalization recreational marijuana sales. Earlier this week, Atlantic-based grower OrganiGram Holdings (NASDAQOTH: OGRMF) announced that its sales more than quintupled from the prior-year quarter, and that its sequential second-quarter sales would be around double what it jus t report ed for the fiscal first quarter. To boot, the company reported its first-ever quarter of positive free cash flow. This is why the investment world is so excited.
On a broader basis, a co-authored report from Arcview Market Research and BDS Analytics calls for global weed sales growth of 38% in 2019 to $16.9 billion . Mind you, worldwide sales are expected to nearly double again to over $31 billion by 2022. There's clearly plenty of money being thrown at this industry, and the thesis is that it has to end up somewhere. This is a big reason why pot stocks as a whole have been unstoppable in recent weeks.
Avoid these very popular pot stocks in February
But as we enter February, I'm reminded of every next-big-thing investment that's come before cannabis and how every surefire company has struggled at some point to meet lofty expectations set by Wall Street and investors. Currently being priced for perfection, the pot industry is nowhere near perfect. This makes three of the most popular marijuana stocks highly avoidable this month.
Cronos Group
As I made pretty clear recently , the one marijuana stock valuation that I understand the least is Cronos Group (NASDAQ: CRON) .
Cronos has been riding high since tobacco giant Altria (NYSE: MO) announced in early December that it would take a $1.8 billion equity investment in the company, which, when closed, would equate to a 45% stake. Factoring in the warrants that Altria also receives and it could bring its equity investment in Cronos Group up to 55%. Aside from the possibility of the duo creating cannabis vape products or Altria simply buying Cronos Group down the road, I struggle to find any reason to be bullish on Cronos Group with its market cap approaching $3 billion ($4.8 billion if we assume the Altria investment goes through).
Aside from Cronos GrowCo, the company's flagship joint venture grow farm which will span 850,000 square feet and yield 70,000 kilograms annually at peak capacity, and Peace Naturals, which can produce up to 40,000 kilograms a year, Cronos Group has just scraps left over. With perhaps 120,000 kilograms in peak yield, a nearly $3 billion valuation is insane. You could get nearly the same amount of yearly production from HEXO , CannTrust Holdings , or OrganiGram, which have market caps of $1.1 billion, $750 million, and $690 million, respectively.
Not to mention, HEXO, CannTrust, and OrganiGram are all expected to be substantially more profitable on a per-share basis in 2019 and 2020 than Cronos Group. Rife with cash when the Altria deal closes, Cronos will be busy spending on product differentiation and international expansion -- the latter on which it's lagged its larger peers. Cronos' forward price-to-earnings ratio of 409 (not a typo) is what nightmares are made of. This is absolutely a stock to avoid in February.
Canopy Growth
Canopy Growth (NYSE: CGC) might be a marijuana darling -- shares are up nearly 90% year to date through Jan. 28 -- but the largest pot stock in the world and its $17 billion market cap are no longer appealing to this investor.
Let's get one thing straight: Canopy Growth has done a lot of things right. It's secured a mammoth $4 billion equity investment from Constellation Brands that'll give it plenty of capital to expand internationally, make acquisitions, build and market its brands, and diversify its product portfolio. It also has some of the most well-recognized weed brands in its product portfolio and clearly defined sales channels. It very much deserves to be the world's most valuable pot stock.
What doesn't make sense is a $17 billion valuation for a company with virtually no chance of being profitable in 2019 or 2020. Canopy's expenses to lay its massive foundation in international markets pretty much ensures that it'll be losing money for the next couple of years. Through the first six months of fiscal 2019, the company has lost almost 422 million Canadian dollars, CA$245 million of which is its operating loss.
This valuation also assumes that every aspect of Canopy's ramp-up will go perfectly, and that's rarely an astute assessment. The company is nowhere near its peak production potential of 500,000-plus kilograms; it still needs more than 20% of its growing capacity to be licensed by Health Canada, which happens to be drowning in cultivation license applications; and it will be contending with a very crowded field of growers that could adversely impact margins. Long story short, I'd seriously consider taking profits into this recent rally.
GW Pharmaceuticals
Lastly, I'd suggest that keeping away from GW Pharmaceuticals (NASDAQ: GWPH) , arguably the most popular ancillary company, would be a smart idea.
GW Pharmaceuticals' stock is up more than 40% year to date through Jan. 28 on the idea that its lead drug, Epidiolex, a cannabidiol-based oral solution that the Food and Drug Administration (FDA) approved to treat two rare types of childhood-onset epilepsy, would roar out of the gate. Although it was approved by the FDA in June, it took a few months for the U.S. Drug Enforcement Agency (DEA) to schedule Epidiolex, so it wasn't launched until early November. Also noteworthy is the fact that Epidiolex was given a Schedule V classification, which is the least restrictive of any classification the DEA could have doled out.
While there are positives here, there's also plenty of uncertainty surrounding the first cannabis-derived drug to get the thumbs-up from the FDA. For instance, even though its $32,500 annual list price is in line with other seizure-reducing epilepsy treatments, it's a pretty penny to pay for a cannabis-based therapy. Gaining insurance coverage and ensuring that patients can pay for this medicine aren't assured.
We've also seen synthetic cannabis therapies flop big time. Insys Therapeutics ' oral dronabinol solution Syndros (dronabinol is a synthetic form of THC, the cannabinoid that gets a user high) was initially expected to generate $200 million or more in peak annual sales. For 2018, it might be lucky to hit $3.5 million in sales. It's been a monumental disappointment and has shown that "cannabis medicines" aren't going to be given a free pass to success.
Finally, GW Pharmaceuticals could soon face competition from Zogenix in Dravet syndrome. Supporting a market cap that might be eight to nine times Epidiolex's peak sales doesn't make sense.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends CannTrust Holdings Inc, Constellation Brands, and OrganiGram Holdings. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rife with cash when the Altria deal closes, Cronos will be busy spending on product differentiation and international expansion -- the latter on which it's lagged its larger peers. GW Pharmaceuticals Lastly, I'd suggest that keeping away from GW Pharmaceuticals (NASDAQ: GWPH) , arguably the most popular ancillary company, would be a smart idea. GW Pharmaceuticals' stock is up more than 40% year to date through Jan. 28 on the idea that its lead drug, Epidiolex, a cannabidiol-based oral solution that the Food and Drug Administration (FDA) approved to treat two rare types of childhood-onset epilepsy, would roar out of the gate.
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Rife with cash when the Altria deal closes, Cronos will be busy spending on product differentiation and international expansion -- the latter on which it's lagged its larger peers. GW Pharmaceuticals Lastly, I'd suggest that keeping away from GW Pharmaceuticals (NASDAQ: GWPH) , arguably the most popular ancillary company, would be a smart idea. GW Pharmaceuticals' stock is up more than 40% year to date through Jan. 28 on the idea that its lead drug, Epidiolex, a cannabidiol-based oral solution that the Food and Drug Administration (FDA) approved to treat two rare types of childhood-onset epilepsy, would roar out of the gate.
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Rife with cash when the Altria deal closes, Cronos will be busy spending on product differentiation and international expansion -- the latter on which it's lagged its larger peers. GW Pharmaceuticals Lastly, I'd suggest that keeping away from GW Pharmaceuticals (NASDAQ: GWPH) , arguably the most popular ancillary company, would be a smart idea. GW Pharmaceuticals' stock is up more than 40% year to date through Jan. 28 on the idea that its lead drug, Epidiolex, a cannabidiol-based oral solution that the Food and Drug Administration (FDA) approved to treat two rare types of childhood-onset epilepsy, would roar out of the gate.
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Rife with cash when the Altria deal closes, Cronos will be busy spending on product differentiation and international expansion -- the latter on which it's lagged its larger peers. GW Pharmaceuticals Lastly, I'd suggest that keeping away from GW Pharmaceuticals (NASDAQ: GWPH) , arguably the most popular ancillary company, would be a smart idea. GW Pharmaceuticals' stock is up more than 40% year to date through Jan. 28 on the idea that its lead drug, Epidiolex, a cannabidiol-based oral solution that the Food and Drug Administration (FDA) approved to treat two rare types of childhood-onset epilepsy, would roar out of the gate.
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723447.0
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2018-12-25 00:00:00 UTC
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Merry Christmas: Hemp and Hemp-Based CBD Are Now Legal
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DEA
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https://www.nasdaq.com/articles/merry-christmas-hemp-and-hemp-based-cbd-are-now-legal-2018-12-25
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This has been a transformational year for the cannabis industry, one that investors will possibly never forget. Although it's been a bit rough on the investment front , with the Horizons Marijuana Life Sciences ETF , a basket of more than four dozen pot stocks, losing approximately 40% of its value, 2018 has been a year of gained validity for the cannabis industry.
A year of legitimacy
To our north, Canada ended nine decades of recreational marijuana prohibition with the passage of the Cannabis Act in June, and the official legalization of adult-use weed on Oct. 17. Once the industry has had some time to ramp up production, it wouldn't be surprising if Canadian legal weed companies were generating up to $5 billion in added annual sales by the early part of the next decade.
Within the U.S., despite the federal government holding firm on its belief that marijuana is a Schedule I drug, and therefore treated as an illicit substance, plenty of major advancements were made. Two new states (Utah and Missouri) voted to legalize medical pot, while Vermont and Michigan gave the green light to recreational weed. That's now 32 states that have approved medical cannabis in some capacity, 10 of which also allow adult consumption.
We also witnessed the Food and Drug Administration approve the very first cannabis-derived drug in June. Following a review by the Drug Enforcement Agency (DEA), GW Pharmaceuticals ' Epidiolex was given the least restrictive classification possible (Schedule V).
Hemp! Hemp! Hooray!
But the biggest victory in U.S. cannabis history might just be the signing of the Farm Bill by President Trump this past Thursday, Dec. 20. The Farm Bill, interestingly enough, was championed by Sen. Mitch McConnell, a Republican from Kentucky, who last week rejected an amendment that would have allowed financial institutions to offer basic banking services to weed companies in the U.S. without the fear of criminal and/or financial penalties from the federal government.
The $867 billion Farm Bill is designed to provide billions of dollars in aid to farmers who've been hurt by the trade war between the U.S. and China. It notably legalizes the production and sales of industrial hemp and cannabidiol (CBD) derived from the hemp plant. CBD is the nonpsychoactive cannabinoid best known for its perceived medical benefits.
Hemp currently has a number of industrial uses in clothing, paper, paint, insulation, and animal feed. But it's the fact that the hemp plant has very little tetrahydrocannabinol (THC) -- the cannabinoid responsible for getting a user high -- and a high content of CBD that's so exciting. According to the Brightfield Group, the CBD market (this includes all types of CBD, not just from the hemp plant) is projected to grow by 147% per annum between 2018 and 2022, leading to a $22 billion market in a few short years. This, therefore, allows cannabis businesses to get their foot in the door nationally by producing and selling hemp-based CBD products.
To be clear, CBD from the cannabis plant is still classified as a regulated substance by the DEA. However, hemp is no longer to be associated with marijuana, and therefore hemp-based CBD isn't a controlled substance.
CBD glee
The legalization of hemp and hemp-based CBD is expected create substantial opportunities for a handful of publicly traded companies. Arguably at the top of that list is Canopy Growth (NYSE: CGC) , the largest marijuana stock by market cap.
Although Canopy Growth CEO Bruce Linton has been very clear that the company has no intention of entering the U.S. cannabis market until there are changes made at the federal level, the company is in the process of buying ebbu for about $315 million (425 million Canadian dollars). Colorado-based ebbu is a hemp-research company that possesses intellectual property (IP) designed to help hemp farmers lower their growing costs and improve yields. With a major barrier to growth now gone, it would be logical to assume that ebbu's IP could become a hot commodity in the States. Canopy Growth is already planning to use this IP to cut costs and improve yields for its hemp grow farm in Saskatchewan.
There's also the chance that Charlotte's Web Holdings (NASDAQOTH: CWBHF) receives a boost. Charlotte's Web currently sells CBD-based products (not limited to hemp-based CBD) in more than 3,000 retailers across the country. The legalization of hemp-based CBD should help normalize the product and could easily expand the company's hemp-based offerings into more retailers. Considering that Charlotte's Web is already profitable on a recurring basis , shareholders have to be pleased with the Farm Bill's passage into law.
Florida-based vertically integrated dispensary Liberty Health Sciences (NASDAQOTH: LHSIF) also plans to get in on the act. The company announced on Thursday, Dec. 20, that it plans to launch a line of hemp-derived CBD products, known as Zentient Labs. Liberty Health Sciences has about a dozen locations open or planned in Florida, with the expectation of 225,000 square feet of aggregate grow space by early 2019. Given that Florida could be one of America's billion-dollar medical cannabis markets, the move makes sense for Liberty Health.
There's a possible downside for investors, too
However, the legalization of hemp in the U.S. may not be as welcome to the marijuana industry as you might think.
Vertically integrated dispensaries have gone through the arduous process of being licensed for retail and cultivation in order to be the exclusive suppliers of cannabis-based products, including CBD products, in states where they are legal. With the passage of the Farm Bill, it now becomes possible for virtually any business to cultivate and distribute hemp-based CBD products, which could draw away both foot traffic and revenue for licensed dispensaries. To be clear, vertically integrated dispensaries will still offer a broader line of products, including cannabis-derived CBD in select states. But their perceived exclusivity on CBD products has now been compromised, and it may show as an adverse impact in their sales or profit potential.
It'll certainly be interesting to see how the U.S. and Canadian cannabis industries respond to the Farm Bill becoming law.
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Following a review by the Drug Enforcement Agency (DEA), GW Pharmaceuticals ' Epidiolex was given the least restrictive classification possible (Schedule V). To be clear, CBD from the cannabis plant is still classified as a regulated substance by the DEA. Although it's been a bit rough on the investment front , with the Horizons Marijuana Life Sciences ETF , a basket of more than four dozen pot stocks, losing approximately 40% of its value, 2018 has been a year of gained validity for the cannabis industry.
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Following a review by the Drug Enforcement Agency (DEA), GW Pharmaceuticals ' Epidiolex was given the least restrictive classification possible (Schedule V). To be clear, CBD from the cannabis plant is still classified as a regulated substance by the DEA. Although Canopy Growth CEO Bruce Linton has been very clear that the company has no intention of entering the U.S. cannabis market until there are changes made at the federal level, the company is in the process of buying ebbu for about $315 million (425 million Canadian dollars).
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Following a review by the Drug Enforcement Agency (DEA), GW Pharmaceuticals ' Epidiolex was given the least restrictive classification possible (Schedule V). To be clear, CBD from the cannabis plant is still classified as a regulated substance by the DEA. It notably legalizes the production and sales of industrial hemp and cannabidiol (CBD) derived from the hemp plant.
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Following a review by the Drug Enforcement Agency (DEA), GW Pharmaceuticals ' Epidiolex was given the least restrictive classification possible (Schedule V). To be clear, CBD from the cannabis plant is still classified as a regulated substance by the DEA. It notably legalizes the production and sales of industrial hemp and cannabidiol (CBD) derived from the hemp plant.
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What Are the Best Marijuana Stocks?
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Marijuana is much more than just a commodity. In fact, despite all the hype surrounding the cannabis industry, the profit potential of this plant is still oft underestimated.
Cannabis companies can of course profit from growing and selling dried marijuana flower, but consumer goods products that use marijuana as an ingredient may be an even bigger opportunity. Marijuana foods, beverages, and cosmetics could expand the total addressable marijuana market significantly beyond its current $150 billion value. Further, the pricing power for these value-added products could provide companies with the best profit margins. Do you know which stocks are best positioned for marijuana going Main Street?
What is marijuana?
Marijuana is the dried flower of the female cannabis sativa plant. It contains over 100 chemical cannabinoids, but the most common cannabinoids are tetrahydrocannabinol (THC), a psychoactive chemical that's found in the resin -- a gooey sap-like substance -- produced by the leaves and buds of the female cannabis plant, and cannabidiol (CBD), a nonpsychoactive chemical.
Marijuana's psychoactive and non-psychoactive effects are caused by cannabinoids interacting with our body's natural endocannabinoid system, which regulates various physiological and cognitive functions including appetite, pain, and mood. There are two primary receptors in this system: CB1 and CB2. CB1 is found primarily in the central nervous system and CB2 is expressed mostly in the immune system. THC's interaction with CB1 is behind marijuana's "high" while CBD is thought to indirectly block CB1, CB2, as well as other receptors in the body.
CBD's mechanism of action isn't fully understood, but its interaction with receptors in the endocannabinoid system can counteract some of THC's effects, depending on the type of marijuana, or marijuana strain, and the actual percentage of CBD and THC present.
The plant Cannabis Sativa has a long history of cultivation and use. Marijuana consumption stretches back at least 1,000 years and the use of hemp, a variety with lower THC amount, has been used for industrial purposes, such as making rope, as far back as 10,000 B.C. in China, based on archaeological discoveries. In addition to rope, hemp was also commonly used to make clothing, sail, and paper. In fact, wood was the only material used more in shipbuilding than hemp during the colonial era and the Chinese used hemp to make the first paper in approximately 150 B.C. Hemp's industrial importance is evidenced by the fact that colonists arrived in North America with cannabis seeds in tow, and the English crown mandated that every farmer use part of their land to grow hemp.
In the Middle East, a purified form of cannabis called hashish has been smoked in the since at least 800 A.D. and in India, where it's called ganja (a Hindi word from Sanskrit meaning hemp or hemp resin). It appears in the Hindu texts, Vedas, as one of five sacred plants. In the middle ages, Sikh warriors would drink a marijuana-beverage called bhang before going into battle because of it's ability to elicit joy and reduce fear.
Medicinal use of cannabis stretches far back in time, as well. There's evidence of its popularity in ancient China, India, Greece, the Middle East, and elsewhere for various maladies, including insomnia, headaches, gastrointestinal disorders, and pain. In the West, it was used to relieve stomach pain until the 1800s.
Outside of medicinal use, marijuana has a recreational use in which ingesting it can help a person attain a high, or euphoric feeling. Recreational use is the new frontier for marijuana, as more countries like Canada are legalizing adult recreational use.
How did marijuana become illegal?
During the early 20th century, the U.S. was suffering a drug epidemic because of widespread use of opium, a highly addictive drug from the juice of the opium poppy. Opium was often prescribed as a pain reliever by doctors in the 1800's, particularly during and after the Civil War and its recreational use expanded significantly alongside immigration from China, where it was grown and recreational use was more common.
Opium addiction affected an estimated 1 in 200 Americans by 1895, prompting regulations to limit its use, including the passage of the Harrison Narcotics Tax Act, which criminalized opium and cocaine use in 1914.
Momentum to curb marijuana use was building concurrently. While hemp was widely cultivated in the U.S. for industrial and medicinal purposes, marijuana's recreational use didn't increase significantly until the early 1900s, when the Mexican revolution resulted in a boom of immigration from Mexico, where recreational marijuana use was more common.
Concerns that marijuana use would turn into an epidemic rivaling that of opium abuse, individual states began passing marijuana prohibition laws and by 1931, 29 states had outlawed marijuana. In 1937, marijuana became federally illegal in the U.S. when Congress passed the Marijuana Tax Act.
Marijuana's prohibition expanded globally after 73 countries got together in 1961 to create the Single Convention on Narcotic Drugs, a United Nations treaty that included the requirement that participating countries restrict marijuana production, possession and distribution of marijuana.
In 1970, the U.S. passed the Controlled Substances Act, creating a ranking system that classifies drugs into one of five tiers, called a schedule, depending on their potential for risk and their medical use. Marijuana was determined not to have any scientifically proven medical use at the time, so it was placed in the Act's most stringent tier, schedule 1, alongside heroin, a highly addictive drug derived from morphine, an opium-based drug
Shortly thereafter, President Nixon waged "war on drugs", a major policy initiative that included the formation of the Drug Enforcement Administration (DEA) in 1973. Since then, the DEA has led enforcement of marijuana prohibition and overseen the licensing of growers for medical research. More than 7 million Americans were arrested for pot possession from 2001 to 2010, according to the ACLU, and the DEA has licensed only one grower, the University of Mississippi, despite requests to access more marijuana for medical research.
Marijuana legalization efforts grow
In the U.S., the reemergence of public support for marijuana began in earnest in 1996 when California created a medical marijuana market. As California's market has matured, more states have followed its lead and today, 33 states, plus the District of Columbia, have legalized medical marijuana and 10 states have legalized marijuana for recreational purposes, or adult-use. Overall, legal retail marijuana sales in the U.S. totaled over $8 billion in 2017, up from $6.5 billion in 2016, according to Matt Karnes of GreenWave Advisors.
So far, marijuana legalization has increased tax revenue and decreased incarceration rates in states that have adopted pro-pot laws. It may also be reducing the use of opiates. For instance, Colorado became one of the first states to pass recreational laws in 2012 and sales of about $1.5 billion there generate over $250 million in annual tax revenue for the state. Colorado saw an 80% decline in marijuana-related drug charges and a 23% decline in all-drug charges between 2010 and 2014, and in 2018, a University of Georgia study found that opiate use rates were lower in states like Colorado with pro-marijuana laws.
Federal laws still prohibit marijuana in the U.S, but that's not the case in Canada. A vibrant medical marijuana market has been up-and-running nationwide there since rule changes in 2014 created a licensing system. In 2018, Canada became the first of the G7 countries to break from the Single Convention on Narcotic Drugs treaty when it opened a national, regulated, recreational marijuana market .
It remains to be seen if other countries, including the U.S., will follow Canada's lead, but polls suggest efforts would be supported by the population. A record 66% of Americans favor legalization, up from about 50% in 2012 and 12% in 1969, according to Gallup. The groundswell of voter support for legalization suggests most, if not all, of the $50 billion spent in the U.S. on marijuana will eventually make its way out of the shadows and into regulated marketplaces, providing a boon for marijuana stocks.
How to invest in marijuana stocks
U.S. investors interested in cannabis stocks had limited options until 2018 because federal prohibition forced U.S. marijuana stocks to list their shares on the lightly regulated over-the-counter market (OTC) and Canadian marijuana stocks only traded on Canada's stock exchanges, not major U.S. exchanges.
Because OTC stocks don't trade on a physical exchange, stock prices that are quoted bet.ween OTC participants vary significantly, creating transparency risks. A buyer might not know the exact price they're signing up to pay. The difference between quotes prices by buyers and sellers of OTC stocks, or the spread, are usually wider than they are on the major exchanges too, increasing costs. Additionally, since OTC stocks don't have to meet minimum listing requirements, including per share price levels and filing financials according to Securities and Exchange Commission (SEC) rules, stocks trading on OTC markets have a higher risk of being fraudulent.
Some investors avoided the risks associated with OTC stocks by buying stocks listed on foreign exchanges, such as Canada's Toronto Stock Exchange, but many institutional investors, including mutual funds, weren't able to do the same, because mandates prevent them from owning foreign issues.
Fortunately, investing in marijuana stocks became easier when five of Canada's biggest cannabis companies won the OK to list shares on the NYSE and NASDAQ exchanges in 2018.
Cronos Group (NASDAQ: CRON) began trading on the NASDAQ in February.
Canopy Growth (NYSE: CGC) began trading on the NYSE in May.
Tilray (NASDAQ: TLRY) held its initial public offering on the NASDAQ exchange in July.
Aurora Cannabis (NYSE: ABC) listed on the NYSE in October.
And, Aphria Inc. (NYSE: APHA) listed on the NYSE in November.
Buying shares in those cannabis companies is now as simple as opening a brokerage account with a discount brokerage firm, such as E*Trade . However, Canadian listed companies are still prevented from doing business in countries where marijuana remains illegal federally, so investing in them doesn't give investors exposure to growing demand for marijuana and its ancillary products in America.
What kinds of marijuana stocks are there?
Before we discuss the best cannabis-related stocks, it's important to know all the different kinds of companies operating within the marijuana sector.
Growers:
Companies that cultivate cannabis as a commodity, like wheat, on farms, indoors, or in greenhouses. For example, Canopy Growth, Aurora Cannabis, and Aphria are three of Canada's largest cannabis cultivation companies.
Extraction:
Companies, including growers, that further process the dried cannabis they cultivate to create value-added products such as cannabis oils. Extracted marijuana products can command higher prices and thus, they offer better margins than dried marijuana flower.
Packagers:
Companies that sell packing products or provide packaging services to the industry, including KushCo Holdings (NASDAQOTH: KSHB) , a maker of tamper proof packaging for the cannabis industry.
Dispensaries:
Companies retail marijuana products directly to consumers online or in physical stores, including MedMen (NASDAQOTH: MMNFF) , an operator of 16 marijuana retail stores.
Distribution:
Companies that facilitate the movement of products through the supply chain to end. For instance, Great North Distributors, a Canadian subsidiary of Southern Glazer's Wine & Spirits provides distribution services to Aphria in Canada.
eCommerce:
Companies help marijuana companies market products using the Internet. For instance, Shopify (NYSE: SHOP) , a cloud-based provider of marketing and payment solutions to cannabis retailers.
Financing:
Companies providing services to marijuana market participants, including Bank of Montreal (NYSE: BMO) , which issued a $200 million debt facility to Aurora Cannabis in 2018.
Food & Beverages:
Companies incorporating marijuana as an ingredient into consumer goods, like Molson Coors Brewing (NYSE: TAP) , which has a licensing deal with HEXO Corp to create cannabis-infused beverages in Canada.
Pharmaceuticals:
Companies developing marijuana products for use as medicine, including GW Pharmaceuticals (NASDAQ: GWPH) , which recently won FDA-approval of Epidiolex, a purified CBD for use in patients with rare forms of epilepsy.
Best medical marijuana stocks
If a crackdown in recreational marijuana by the U.S. Government has you nervous, then investing in companies developing FDA-approved medications based on marijuana's cannabinoids or Canadian cannabis companies with a medical focus may be the best bet.
Of the various companies working on medical marijuana drugs that can pass regulatory muster, GW Pharmaceuticals, CannTrust , and Novartis , via a collaboration with Tilray, are among the leaders.
TTM = Trailing 12 months. Data source: Yahoo!Finance as of 12/14/2018. Author's table.
In June 2018, the U.S. Food and Drug Administration (FDA) approved GW Pharmaceuticals' purified CBD medicine Epidiolex after trials proved it can reduce seizures in patients with rare types of treatment-resistant epilepsy. In September, the company got a second win when the DEA scheduled Epidiolex as a schedule V drug, which is it's least-restrictive classification. As a result, doctor's can prescribe and refill Epidiolex as easily as they do cough medicines containing codeine, such as Robitussin AC.
Epidiolex reduced seizures from baseline in trials by between 40% to 50% per month in patients with Dravet syndrome and Lennox-Gastaut syndrome, two rare and debilitating forms of childhood-onset epilepsy. Patients with those forms of epilepsy fail to respond to existing antiepileptic medications, so Epidiolex could become a top-selling medication; especially since it's available by prescription throughout the U.S. regardless of whether marijuana is legal in the patient's state.
GW Pharmaceuticals is the only marijuana company to secure an FDA green light for purified CBD, but CannTrust and Tilray, with Novartis' help, could win regulatory approvals for marijuana medications in the U.S. and elsewhere, too.
In August, Canadian medical marijuana company CannTrust announced it's conducting clinical-stage trials of marijuana for the treatment of pain in collaboration with Hamilton Health Sciences and McMaster University. A randomized trial evaluating cannabis oil for chronic non-cancer pain was targeted to begin in 2018 and additional studies are under consideration. CannTrust also has a venture with Apotex, a global generic drug maker, to develop marijuana medicine for use in up to 85 countries where Apotex already operates. If these efforts succeed, it could not only validate medical marijuana's use in a variety of indications, but drive CannTrust's revenue significantly higher. CannTrust sells marijuana to over 50,000 Canadian medical marijuana patients and sales to those patients totaled CA$12.6 million as of the quarter ending September 2018.
Tilray, a CannTrust competitor, is also conducting trials to prove medical marijuana's safe and effective.
In March, 2018, it signed an agreement with Novartis' Canadian generic drug subsidiary, Sandoz Canada, to leverage Sandoz existing relationships with pharmacists and physicians to market Tilray's medical marijuana products, develop "new and innovative medical cannabis products that offer an alternative to smokable/ combustible products", and "subject to future regulatory changes, Sandoz Canada, known for its supply reliability, will wholesale and distribute non-smokable/non-combustible Tilray products to Canadian hospitals and pharmacies."
In December 2018, that agreement was expanded into a worldwide deal with Sandoz AG, Novartis' global generic drug business.
Best marijuana growers
If you want to invest in companies that are the biggest growers and distributors of marijuana, you'll want to focus your attention on the biggest Canadian cannabis companies. Because of favorable laws, they've been able to build the scale and experience necessary to serve not only Canada, but also other countries that create marijuana markets, like Germany, where medical marijuana was legalized in 2017.
TTM = Trailing 12 months. Data source: Yahoo!Finance as of 12/14/2018. Author's table.
Canada's leading market-share grower, distributor, and retailer is Canopy Growth Corporation . Its Canadian medical marijuana market share exceeds 30% and investments that are boosting its grow capacity position it to capture a similarly large share of the Canada's adult-use market, particularly following drink maker Constellation Brandsdecision to pay $4 billion for a 38% equity ownership stake in the company in 2018.
Canopy Growth can't participate in the U.S. recreational market until marijuana's legal federally, but it has shipped medical marijuana for use in medical research to the U.S. and it's actively pursuing sales in other countries, including Australia and Germany.
In Australia, Canopy's Spectrum Australia subsidiary is working with the Victoria State Government to cultivate marijuana domestically for medical use. The company and the Victorian State Government's plans include programs focusing on cannabis as medicine, including the development of new types of marijuana. Australia's government legalized medical marijuana in 2016, but only about 350 people had been given the green light to use it as of February 2018, so this market isn't moving the needle yet.
The situation is different in Germany, where the medical marijuana market has grown more quickly. Canopy Growth's Spektrum Cannabis GmbH is approved to import medical marijuana in Germany and it's distributing it to over 1,200 pharmacies. As a result, Germany accounts for 10% of Canopy Growth's sales as of Q3, 2018, up from 1% the prior year. Since Germany's population is double that of Canada, the opportunity there could be much bigger than Canada over time.
Canopy Growth's top competitor is Aurora Cannabis, a company that's been actively issuing shares to acquire competitors, including MedReleaf.
Like Canopy Growth, Aurora Cannabis wants to operate globally. It's targeting Australia and Germany and in 2018, it acquired ICC Labs, a South American marijuana company with a 70% market share in Uruguay. ICC Labs annualized quarterly sales in Uruguay -- the only country besides Canada where recreational marijuana is legal -- totaled less than a half million dollars in early 2018, but the deal is still important to investors because it gives Aurora Cannabis production capacity and expertise in the region and that could be valuable if South American countries pass pro-pot laws.
Eventually, Aurora Cannabis thinks it will be able to produce marijuana at below $1 per gram and if so, then it could become one of the industry's lowest cost producers. However, it remains to be seen how quickly falling costs can translate into meaningful profits per share because Aurora's share-based acquisitions have substantially increased its share count.
Two other top growers to consider are Aphria and Cronos Group. They're smaller than Canopy Growth and Aurora Cannabis, but their sales should still benefit from Canada's recreational market and global legalization.
The third-largest Canadian marijuana grower, Aphria started to expand internationally in 2018, but it drew criticism from short sellers who argue it overpaid for assets in Jamaica, Europe, Columbia, and Argentina. The short-sellers imply their may have been self-dealing, but Aprhia claims executives with ties to the acquired companies, including its CEO, recused themselves from the acquisition decision. Aphria's Board of Directors has launched an independent investigation into the acquisition process to confirm there wasn't any wrong doing, so investors will want to keep tabs on how that proceeds.
Nevertheless, Aphria's large-scale greenhouses and historically, low-cost production still puts it in contention as a top-grower to consider, particularly if those international purchases help it establish a global footprint.
Cronos Group is the smallest of these growers, but it may not be for too much longer because it secured a major investment from tobacco-giant Altria Group (NYSE: MO) in December 2018 that gives it the financial flexibility to invest in production, products, distribution, and international expansion.
Specifically, Altria paid Cronos Group $1.8 billion for a 45% equity stake and an option to increase its ownership by an additional 10% within four years. In addition to the cash, Cronos Group gets valuable regulatory, distribution, and marketing expertise from Altria that could come in handy in the U.S. if marijuana eventually becomes legal federally.
Since Canopy Growth and Cronos Group have already secured investments from global consumer goods companies, investors may want to keep an eye out to see if anyone comes knocking on the door of Aurora Cannabis and Aphria.
Top marijuana dispensary stocks
There's a lot of overlap between marijuana growers and marijuana retailers because most of the big growers, including Aurora Cannabis and Canopy Growth, are investing in physical and online retail stores to market their marijuana in Canada.
TTM = Trailing 12 months. Data source: Yahoo! Finance as of 12/14/2018. Liberty's sales are year-to-date 2018. Author's table.
Those players, however, aren't involved in the U.S. market yet, so the U.S. market is highly fragmented with many small operators. One exception is MedMen, a 16-store marijuana company that went public via a reverse merger in 2018. A reverse merger is when a private company acquires a public company to become public more quickly. MedMen operates 8 locations in California , and California accounted for 92% of the company's $20.6 million in fiscal fourth-quarter 2018 revenue.
California's likely to be a big driver of MedMen's revenue in the future, but it's also expanding into new states, like Florida. It operates a medical marijuana delivery service in Florida and it plans to open four dispensaries, including one in Miami, soon if regulators OK them. Over time, MedMen's targeting 66 stores in 12 states that will serve about half of U.S. residents and if it delivers on that goal, its revenue may increase dramatically because it estimates the retail marijuana opportunity could reach $75 billion someday.
Green Thumb Industries and Liberty Health Sciences are smaller dispensary operators than MedMen, but they're also intriguing investment options.
Green Thumb operates 13 dispensaries in eight states that limit the number of dispensary licenses they issue, which should limit competition. Its plans include opening 36 more stores that sell marijuana and cannabis products it grows and manufacturers.
Liberty Health is a 7-dispensary Florida operator that was previously intertwined with Aphria. Aphria sold its stake in the company this year, however, because of rules preventing Canadian listed stocks from investing in marijuana businesses where it's illegal federally. If licensing goes its way, Liberty hopes to have 14 stores by early 2019 and it plans to open a store in Ohio with a venture partner in 2019, too.
How to invest in marijuana without buying pure pot stocks
There's an old Wall Street maxim that those who made the most money during the Gold rush weren't the gold miners, but the vendors who sold them their picks and shovels. If you prefer this approach to investing in the marijuana Green Rush, then Shopify, Scott's Miracle-Gro and KushCo Holdings should be top of mind.
These companies could make sense because overly optimistic growers could wind up planting too much cannabis, causing prices to drop and some growers to fail. Furthermore, these companies are more insulated against the risk of marijuana's novelty wearing off and demand faltering, steps backward toward prohibition, or the failure of any one marijuana company.
TTM= trailing 12 months. Data source: Yahoo!Finance as of 12/14/2018. Author's table.
An e-commerce cloud-platform that sells solutions to retailers that help them manage their digital and physical footprints, Shopify's sales come from recurring monthly subscription fees and transaction-based fees. Marijuana represents a tiny fraction of its revenue, but it could become a more meaningful contributor to this company's success in the future.
For instance, Canada's biggest marijuana market is Ontario and when the adult-use market went live there in October, Shopify's platform was the one that was managing the behind-the-scenes sales and inventory tracking. Shopify also has a deal to manage e-commerce sales for HEXO in Canada and The Green Organic Dutchman (TSX: TGOD) worldwide. As more dispensaries open in Ontario and e-commerce marijuana sales increase elsewhere, it could provide a nice boost to Shopify's financial performance.
Scott's Miracle-Gro is best known for grass seed and fertilizer, but it's been actively acquiring companies that sell products to marijuana growers, such as hydroponics. It's notable acquisitions include the greenhouse ventilation company Can-Filters, the hydroponics plant nutrients supplier, Botanicare, and the greenhouse lighting company, Gavita. These acquistiions have helped turn the company's Hawthorne division into one of the largest marijuana equipment and supplies vendors. Hawthorne isn't immune to the risk of individual growers failing, but annual revenue exceeding $250 million per year only accounts for less than 10% of Scott's Miracle-Gro's companywide revenue.
Unlike Scott's Miracle-Gro, KushCo Holdings trades on the over-the-counter market and it gets all of its revenue from the marijuana industry. KushCo sells marijuana packaging, including childproof bottles and tubes for rolled products, to over 5,000 marijuana growers, distributors, and retailers worldwide. Because of rising demand for packaging that adheres to regulatory guidelines and acquisitions, KushCo's revenue more than doubled in fiscal 2018 and sales are expected to double again in fiscal 2019.
To capitalize on recreational sales in Canada, KushCo's created a Canadian subsidiary and to capture sales in new markets on the East Coast, it opened a new facility in Massachusetts, where dispensaries opened for the first time in November 2018. KushCo has also moved into new markets including vaporizers and gas and solvents used to extract cannabis oils for concentrates. It also acquired a marijuana marketing company in 2018.
What is a marijuana ETF?
If individual stocks aren't right for your portfolio, there are also exchange-traded funds (ETF) that investors can buy to gain exposure to the emerging industry.
ETFs are pooled-investment funds that combine small investments from many individual investors together to gain broader exposure to a sector, industry, or specific investment theme. In this way, they're similar in this way to mutual funds, however, unlike mutual funds, ETFs can be bought or sold throughout the day like individual stocks.
The two largest marijuana ETFs are the Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ) and the ETFMG Alternative Harvest ETF (NYSEMKT: MJ) .
Horizon's ETF tracks Arcview's North American Marijuana Index and it trades on the Toronto Stock Exchange and on the over-the-counter market in the U.S. ETFMG's Alternative Harvest ETF tracks the Prime Alternative Harvest Index and it trades on the NYSE. A word of caution, though. The expense ratios for these funds are higher than many other ETFs and their holdings change regularly, so investors will want to research them carefully .
A risky market full of pops and drops
Make no mistake: Marijuana stock investing is risky. It's only early innings for this emerging market and valuations for many of these market participants have skyrocketed in recent years to levels where many industry watchers think they already reflect a lot of the industry's potential. As this market matures, many companies are likely that fall shy of forecasts or fail, resulting in big losses for investors.
Nevertheless, the potential for widespread adoption of pro-pot laws in the U.S., Europe, and elsewhere makes marijuana stocks compelling long-haul investments for risk-tolerant investors. In 15 years, Constellation Brands estimates legal marijuana sales could total more than $200 billion globally and if that forecast is anywhere near correct, it will mean some of these companies have a shot a valuations in excess of $100 billion. Picking the winners won't be easy, though, so investors are probably best off diversifying their exposure to the industry across several of these top marijuana stocks.
10 stocks we like better than Canopy Growth Corp.
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*Stock Advisor returns as of November 14, 2018
Todd Campbell owns shares of KushCo Holdings and Shopify. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool owns shares of Molson Coors Brewing. The Motley Fool recommends CannTrust Holdings Inc, Constellation Brands, Hexo., and KushCo Holdings. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Marijuana was determined not to have any scientifically proven medical use at the time, so it was placed in the Act's most stringent tier, schedule 1, alongside heroin, a highly addictive drug derived from morphine, an opium-based drug Shortly thereafter, President Nixon waged "war on drugs", a major policy initiative that included the formation of the Drug Enforcement Administration (DEA) in 1973. Since then, the DEA has led enforcement of marijuana prohibition and overseen the licensing of growers for medical research. More than 7 million Americans were arrested for pot possession from 2001 to 2010, according to the ACLU, and the DEA has licensed only one grower, the University of Mississippi, despite requests to access more marijuana for medical research.
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Marijuana was determined not to have any scientifically proven medical use at the time, so it was placed in the Act's most stringent tier, schedule 1, alongside heroin, a highly addictive drug derived from morphine, an opium-based drug Shortly thereafter, President Nixon waged "war on drugs", a major policy initiative that included the formation of the Drug Enforcement Administration (DEA) in 1973. Since then, the DEA has led enforcement of marijuana prohibition and overseen the licensing of growers for medical research. More than 7 million Americans were arrested for pot possession from 2001 to 2010, according to the ACLU, and the DEA has licensed only one grower, the University of Mississippi, despite requests to access more marijuana for medical research.
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Marijuana was determined not to have any scientifically proven medical use at the time, so it was placed in the Act's most stringent tier, schedule 1, alongside heroin, a highly addictive drug derived from morphine, an opium-based drug Shortly thereafter, President Nixon waged "war on drugs", a major policy initiative that included the formation of the Drug Enforcement Administration (DEA) in 1973. Since then, the DEA has led enforcement of marijuana prohibition and overseen the licensing of growers for medical research. More than 7 million Americans were arrested for pot possession from 2001 to 2010, according to the ACLU, and the DEA has licensed only one grower, the University of Mississippi, despite requests to access more marijuana for medical research.
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Marijuana was determined not to have any scientifically proven medical use at the time, so it was placed in the Act's most stringent tier, schedule 1, alongside heroin, a highly addictive drug derived from morphine, an opium-based drug Shortly thereafter, President Nixon waged "war on drugs", a major policy initiative that included the formation of the Drug Enforcement Administration (DEA) in 1973. Since then, the DEA has led enforcement of marijuana prohibition and overseen the licensing of growers for medical research. More than 7 million Americans were arrested for pot possession from 2001 to 2010, according to the ACLU, and the DEA has licensed only one grower, the University of Mississippi, despite requests to access more marijuana for medical research.
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8b497045-1f68-4e26-8013-cec9e79a48e2
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723449.0
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2018-12-17 00:00:00 UTC
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Easterly Government Properties (DEA) Passes Through 6% Yield Mark
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-dea-passes-through-6-yield-mark-2018-12-17
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 6% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $16.90 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF ( IWV ) back on 5/31/2000 - you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 6% would appear considerably attractive if that yield is sustainable. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 6% annual yield.
Click here to find out which 9 other dividend stocks just recently went on sale »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 6% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $16.90 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 6% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 6% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $16.90 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 6% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 6% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $16.90 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 6% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel , in trading on Monday, shares of Easterly Government Properties Inc (Symbol: DEA) were yielding above the 6% mark based on its quarterly dividend (annualized to $1.04), with the stock changing hands as low as $16.90 on the day. Easterly Government Properties Inc (Symbol: DEA) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets. In the case of Easterly Government Properties Inc, looking at the history chart for DEA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 6% annual yield.
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d07815d4-95c9-4305-9c1e-0419d8f7f904
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723450.0
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2018-12-16 00:00:00 UTC
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Surprise! The Largest U.S. Pension Fund Just Bought These 2 Marijuana Stocks
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DEA
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https://www.nasdaq.com/articles/surprise-largest-us-pension-fund-just-bought-these-2-marijuana-stocks-2018-12-16
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nan
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nan
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When big institutional investors pour money into marijuana stocks, you know the cannabis industry has hit the big time. And that's what has happened.
The California Public Employees' Retirement System (CalPERS) filed its report of holdings with the U.S. Securities and Exchange Commission (SEC) a few weeks ago. It takes a while to scroll through all the stocks that CalPERS owns in its massive portfolio, but there were a couple of surprising new additions on the latest filing.
For the first time ever, CalPERS bought stakes in marijuana stocks. What were the two new positions? Believe it or not, CalPERS scooped up shares of beaten-down cannabis-focused biotech Insys Therapeutics (NASDAQ: INSY) and highly volatile Canadian marijuana producer Tilray (NASDAQ: TLRY) . What were the investment managers at CalPERS thinking?
What's not surprising
It actually makes sense that CalPERS would invest in marijuana stocks now. And not just because California claims the largest legal marijuana market in the world.
CalPERS has more than $350 billion to invest to fund the pensions of California's growing number of retired former public employees. The pension fund's investment managers have to look at all sources they can to generate solid returns. The reality is that the cannabis industry is rapidly expanding and presents an attractive investing opportunity.
Just look around the U.S. Thirty-one U.S. states have legalized medical marijuana. Ten states allow the legal use of recreational marijuana. Cannabis is projected to be at least a $22 billion industry in the U.S. by 2022 -- double the estimated size of the market this year.
Look around the world, too. Canada recently legalized recreational marijuana. Mexico's Supreme Court overturned the country's ban on recreational marijuana . Thirty-one countries allow the legal use of marijuana in some form, including major economic powers Germany, South Korea, and the United Kingdom.
Acceptance of the medical benefits of marijuana has definitely grown. For example, the U.S. Food and Drug Administration (FDA) approved the first drug derived from the cannabis plant -- GW Pharmaceuticals ' Epidiolex -- in June 2018. The U.S. Drug Enforcement Administration (DEA) even gave Epidiolex the least-restrictive controlled substance schedule allowed under current federal law.
But Insys and Tilray?
While CalPERS investing in marijuana stocks isn't surprising, the huge pension fund's choices of where to park its money are shockers. Insys Therapeutics and Tilray are perhaps two of the most unlikely picks.
Insys has lost nearly half of its market cap so far in 2018. Sales of the biotech's opioid drug Subsys continue to fall. New cannabinoid drug Syndros isn't generating anywhere close to impressive revenue yet. About the only good news for Insys is that the company reached a settlement with the U.S. Department of Justice over allegations of improper sales and marketing practices related to Subsys.
Many investors would probably conclude that Insys is a lost cause . So why would CalPERS buy this troubled stock? Perhaps because the fund's managers like that Insys plans to sell off its opioid products and focus solely on cannabinoids. Still, there's no guarantee that Insys will get a good price with the ongoing opioid epidemic in the U.S. CalPERS' bet certainly seems to be a risky one.
Then there's Tilray -- perhaps the most dangerous big marijuana stock on the market . The Canadian marijuana producer has enjoyed a great year so far with its share price soaring close to 250%. But that doesn't tell the whole story for Tilray. Just a few months ago, the stock was up over 600% year to date.
Tilray should benefit from the expansion of the global cannabis industry. However, an awful lot of that growth is already baked into Tilray's share price. Tilray appears to be overvalued compared to several of its peers -- and they're not cheap.
In addition, Tilray's shares have been even more volatile than many of the other leading Canadian marijuana stocks. That's because Tilray's stock float is very low and has attracted a lot of short-sellers.
Another reason to question CalPERS' purchase of Tilray stock is that the company's initial public offering (IPO) lock-up period expires on Jan. 15, 2019. Tilray insiders can sell their shares after the end of the lock-up period. It won't be surprising if the stock drops significantly as insiders cash in at least some of their nice gains.
Follow the leader -- sort of
Should investors follow the lead of the largest pension fund in the U.S? Yes. Sort of.
Don't go out and buy Insys and Tilray because CalPERS did. It's highly debatable whether the giant fund made the best choices in going with these two stocks. But there are some lessons from CalPERS that can benefit regular investors.
Like CalPERS, don't be afraid to invest in potentially high-growth opportunities like the cannabis industry. Marijuana already is a sizable market and will become much larger in the coming years.
Don't bet the farm on any stock, especially highly speculative ones. CalPERS bought relatively small positions in Insys and Tilray. Its portfolio is very diversified with the biggest holdings in established companies that generate strong cash flow year in and year out.
Finally, you can invest in marijuana without directly buying a marijuana stock. CalPERS already owned more than $126 million worth of shares in Constellation Brands . The big alcoholic beverage company purchased a 9.9% stake in top Canadian marijuana producer Canopy Growth last year and upped its ownership of Canopy to 38% a few months ago.
If you're looking for ways to profit from the booming cannabis industry with a lower risk of scary surprises, following CalPERS' lead in buying Constellation Brands could be a good move.
10 stocks we like better than Tilray, Inc.
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tilray, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of November 14, 2018
Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. Drug Enforcement Administration (DEA) even gave Epidiolex the least-restrictive controlled substance schedule allowed under current federal law. The California Public Employees' Retirement System (CalPERS) filed its report of holdings with the U.S. Securities and Exchange Commission (SEC) a few weeks ago. Thirty-one countries allow the legal use of marijuana in some form, including major economic powers Germany, South Korea, and the United Kingdom.
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The U.S. Drug Enforcement Administration (DEA) even gave Epidiolex the least-restrictive controlled substance schedule allowed under current federal law. Believe it or not, CalPERS scooped up shares of beaten-down cannabis-focused biotech Insys Therapeutics (NASDAQ: INSY) and highly volatile Canadian marijuana producer Tilray (NASDAQ: TLRY) . While CalPERS investing in marijuana stocks isn't surprising, the huge pension fund's choices of where to park its money are shockers.
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The U.S. Drug Enforcement Administration (DEA) even gave Epidiolex the least-restrictive controlled substance schedule allowed under current federal law. Believe it or not, CalPERS scooped up shares of beaten-down cannabis-focused biotech Insys Therapeutics (NASDAQ: INSY) and highly volatile Canadian marijuana producer Tilray (NASDAQ: TLRY) . While CalPERS investing in marijuana stocks isn't surprising, the huge pension fund's choices of where to park its money are shockers.
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The U.S. Drug Enforcement Administration (DEA) even gave Epidiolex the least-restrictive controlled substance schedule allowed under current federal law. But Insys and Tilray? Don't go out and buy Insys and Tilray because CalPERS did.
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4e3a734b-8bb1-49eb-b9be-829f9e4237ff
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723451.0
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2018-12-14 00:00:00 UTC
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Best Stocks for 2019: Charlotte’s Web Is the No. 1 Pot Stock to Watch
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DEA
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https://www.nasdaq.com/articles/best-stocks-2019-charlottes-web-no-1-pot-stock-watch-2018-12-14
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
History is about to be made. On Dec. 11, the Senate passed the 2018 Farm Bill by a vote of 83-17. The House of Representatives passed it by a vote of 369-47 on Dec. 12, and now it is off to President Trump for a signature.
The bill will legalize hemp for the first time in nearly a century, swinging the door to massive growth wide open. As hemp-derived cannabidiol (CBD) oil hits the mainstream, we're looking at an industry with the potential to be 55 times larger in just five years.
CBD oil is derived from marijuana and hemp plants, and it has been used by wellness and medical professionals for years as an alternative to traditional pharmaceuticals to treat everything from anxiety and depression to chronic pain, inflammation and childhood epilepsy. If it were a drug, we would call it a wonder drug.
CBD is considered one of the most beneficial compounds available to humans, and it does not have the nasty side effects that many drugs do.
That's why my pick for the Best Stocks for 2019 contest is Charlotte's Web (OTCMKTS: CWBHF ) stock. In order for you to fully understand this company, let me begin by telling you a story …
CWBHF Stock and the Miracle Cure
Charlotte Figi was just three months old when she had her first seizure. It was a grand mal seizure, the most serious kind and it lasted 30 minutes. That was only the beginning.
The number of seizures kept increasing. By the time she was three, Charlotte needed a wheelchair.
At one point, she took up to seven medications to control the seizures, but they didn't help. By age five, Charlotte was having up to 300 grand mal seizures per week .
10 Best Stocks to Buy That Represent the Future
That's more than 40 a day… almost two every hour.
At one point, doctors put Charlotte into a coma to give her body a break from the constant wear and tear caused by the seizures.
It was around this time that Charlotte's grandfather discovered that cannabis oil had helped another child who also had Dravet Syndrome. Desperate for help, the family tried the oil.
They were stunned at the immediate change.
After Charlotte's first dose, she lived the whole next week of her life without a single seizure!
Her seizures didn't go away completely, but the number fell dramatically - from 300 per week to just two to three per month . Charlotte's life was completely changed.
There are many similar stories to Charlotte's about both children and adults who have greatly benefitted from cannabis oil. The government and medical industry have been slow to embrace the evidence, but Charlotte has become one of the reasons the legalization of medical marijuana is sweeping the globe.
The tide is shifting and a tidal wave is coming, which is why I'm so excited about the huge potential in cannabis oil, even as many investors are looking past it.
CWBHF Is Best Positioned to Benefit
It is because of Charlotte's grandfather that the company Charlotte's Web ever came to exist. The Figi family reached out to medical marijuana growers and eventually the company was born.
On Aug. 30, the company announced that it had closed its IPO in Canada and raised $100 million through a secondary offering. On that same day, the company began trading as a public company on the Canadian Securities Exchange (CSE) under the symbol CWEB. In September, it started trading on the U.S. OTC market under the symbol CWBHF.
Charlotte's Web is the absolute best positioned stock in the CBD oil market. It stands out from its peers for its ability to be the leader in this high-growth industry.
Revenue is on the upswing, and looking ahead, there are several catalysts that will drive growth. The first, as I already mentioned, is the passing of the Farm Bill. Until that happens, hemp is a Schedule 1 drug as determined by the U.S. Drug Enforcement Administration (DEA).
7 Stocks With the Strongest Balance Sheets
That's laughable. Schedule 1 drugs are considered to have a "high potential for abuse" and "no currently accepted medical use." We're talking about heroin, cocaine, ecstasy and the like. CBD has many medical uses and little potential for abuse because it doesn't get you high. The Farm Bill is a multibillion-dollar game changer for the CBD industry because legalizing hemp also removes it from Schedule 1.
And that will lead to increased production. In 2017, CWBHF produced 63,000 pounds of hemp. That number is expected to increase significantly this year to between 250,000 and 350,000 pounds. When the Farm Bill gets passed, it will lead to an even greater opportunity for the company to ramp up production around the country.
The second catalyst is more distribution outlets as chain retailers start to become the largest sellers of CBD. If you are a major retailer and need instant inventory, it is natural to turn to the market leader, which in this case is Charlotte's Web.
I expect to see the number of retail outlets almost double from 2,700 to closer to 5,000, if not more, in the next two years. As the mass adoption of CBD grows, it will lead to increased demand from the market leaders.
The Time to Act Is Now
According to Brightfield Group, the hemp CBD market will reach $591 million this year. And by 2022, it will soar to $22 billion. That is a five-year compound annual growth rate of 132% and a 40-bagger!
Charlotte's Web stands to capture a lot of that growth. It is the No. 1 hemp grower in the United States. And with CBD on the verge of going mainstream, the company's profit potential is about to increase dramatically.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the "next" generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on.Click here for more information on the "NexGen" Experience .
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The post Best Stocks for 2019: Charlotte's Web Is the No. 1 Pot Stock to Watch appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Until that happens, hemp is a Schedule 1 drug as determined by the U.S. Drug Enforcement Administration (DEA). CBD oil is derived from marijuana and hemp plants, and it has been used by wellness and medical professionals for years as an alternative to traditional pharmaceuticals to treat everything from anxiety and depression to chronic pain, inflammation and childhood epilepsy. In order for you to fully understand this company, let me begin by telling you a story … CWBHF Stock and the Miracle Cure Charlotte Figi was just three months old when she had her first seizure.
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Until that happens, hemp is a Schedule 1 drug as determined by the U.S. Drug Enforcement Administration (DEA). The Figi family reached out to medical marijuana growers and eventually the company was born. The Time to Act Is Now According to Brightfield Group, the hemp CBD market will reach $591 million this year.
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Until that happens, hemp is a Schedule 1 drug as determined by the U.S. Drug Enforcement Administration (DEA). In order for you to fully understand this company, let me begin by telling you a story … CWBHF Stock and the Miracle Cure Charlotte Figi was just three months old when she had her first seizure. Charlotte's Web is the absolute best positioned stock in the CBD oil market.
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Until that happens, hemp is a Schedule 1 drug as determined by the U.S. Drug Enforcement Administration (DEA). That's why my pick for the Best Stocks for 2019 contest is Charlotte's Web (OTCMKTS: CWBHF ) stock. The number of seizures kept increasing.
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a822c691-87c4-4f0d-821a-255deedd85be
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723452.0
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2018-12-11 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Ex-Dividend Date Scheduled for December 12, 2018
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-ex-dividend-date-scheduled-december-12-2018-2018-12
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nan
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nan
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Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on December 12, 2018. A cash dividend payment of $0.26 per share is scheduled to be paid on December 27, 2018. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 5th quarter that DEA has paid the same dividend. At the current stock price of $18.31, the dividend yield is 5.68%.
The previous trading day's last sale of DEA was $18.31, representing a -17.97% decrease from the 52 week high of $22.32 and a 5.29% increase over the 52 week low of $17.39.
DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). DEA's current earnings per share, an indicator of a company's profitability, is $.11. Zacks Investment Research reports DEA's forecasted earnings growth in 2018 as -6.35%, compared to an industry average of .8%.
For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DEA through an Exchange Traded Fund [ETF]?
The following ETF(s) have DEA as a top-10 holding:
Invesco S&P SmallCap Low Volatility ETF ( XSLV )
SPDR SSGA US Small Cap Low Volatility Index ETF ( SMLV ).
The top-performing ETF of this group is XSLV with an decrease of -7.42% over the last 100 days. It also has the highest percent weighting of DEA at 1.08%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). Zacks Investment Research reports DEA's forecasted earnings growth in 2018 as -6.35%, compared to an industry average of .8%.
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The following ETF(s) have DEA as a top-10 holding: Invesco S&P SmallCap Low Volatility ETF ( XSLV ) SPDR SSGA US Small Cap Low Volatility Index ETF ( SMLV ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on December 12, 2018.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DEA Dividend History page. The following ETF(s) have DEA as a top-10 holding: Invesco S&P SmallCap Low Volatility ETF ( XSLV ) SPDR SSGA US Small Cap Low Volatility Index ETF ( SMLV ).
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DEA's current earnings per share, an indicator of a company's profitability, is $.11. The following ETF(s) have DEA as a top-10 holding: Invesco S&P SmallCap Low Volatility ETF ( XSLV ) SPDR SSGA US Small Cap Low Volatility Index ETF ( SMLV ). Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on December 12, 2018.
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b1cc4bed-8019-46a4-b3b6-2f476f26d9f1
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723453.0
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2018-12-07 00:00:00 UTC
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Where Is Marijuana Legal?
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DEA
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https://www.nasdaq.com/articles/where-marijuana-legal-2018-12-07
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nan
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nan
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Marijuana has been used for thousands of years, primarily for treating medical conditions. It was used in ancient China as an anesthetic. It was one of five herbs taken to help relieve anxiety during India's Iron Age. Cannabis seeds have been found in Viking ships, possibly for use in alleviating pain.
And for most of human history, marijuana use was legal. That began to change in the early 20th century, though. Between 1916 and 1931, 29 U.S. states banned the use of marijuana. The Marihuana Tax Act of 1937 essentially made cannabis illegal across the U.S. Many other countries outlawed marijuana during the first half of the century, with more nations added to the list in subsequent decades.
But the tide is turning. Several countries and many U.S. states have legalized the use and sale of medical marijuana. A couple of countries and a growing number of U.S. states allow the use and sale of recreational marijuana. Where is marijuana legal now? Here's what you need to know.
Global overview
Following are the countries that have broadly legalized the use and sale of marijuana as of Nov. 30, 2018:
Data source: Wikipedia. THC is the primary psychoactive component in cannabis.
Canada claims the largest overall market where marijuana use of any kind is legal at the federal level. Medical cannabis has been legal in the country since 2001, although initially patients had to grow their own marijuana plants. New regulations in 2013, subsequently replaced in 2016, opened the door for licensed producers to supply medical marijuana to patients across the country.
Justin Trudeau ran for the office of prime minister in 2015. He pledged to legalize recreational marijuana if elected. Trudeau won the election -- and began working to advance legislation through the Canadian parliament to fulfill his campaign promise. Those efforts succeeded, with the Canadian senate voting a final time to legalize recreational marijuana on June 19, 2018. Under the Cannabis Act (also known as bill C-45), recreational marijuana became available for purchase by adults on Oct. 17, 2018.
The Canadian marijuana market in 2017 totaled around $600,000. Arcview Market Research and BDS Analytics project this figure will soar to $5.5 billion by 2022.
However, Germany is likely to become the top international market for medical marijuana where use is legal at the federal level. The country's medical marijuana market is expected to increase to $1.6 billion by 2022 from around $260 million in 2018. Germany claims the largest population in the European Union, and its laws make medical cannabis easily available, which makes rapid growth for the German medical market likely.
Current status of legalization in the U.S.
Both medical and recreational marijuana use remain illegal at the federal level in the U.S. The Controlled Substances Act of 1970 placed cannabis in the most restricted category, Schedule I, which includes drugs that the U.S. government deemed had no accepted medical use and a high potential for abuse.
But individual states began to push back against federal marijuana policy , beginning with a ballot initiative in California, passed in 1996, that legalized medical marijuana in the state. Other states soon followed California's lead. In 2012, Colorado and Washington state approved ballot initiatives that legalized recreational marijuana.
Following are the U.S. states, districts, and territories that have broadly legalized either medical marijuana or recreational marijuana as of Nov. 30, 2018:
Data source: National Conference of State Legislators.
This list changed as a result of the November 2018 U.S. elections . Residents of Michigan voted to legalize recreational marijuana, while Missouri and Utah citizens voted to legalize medical marijuana. The only setback for marijuana legalization was in North Dakota, where a ballot initiative to legalize recreational marijuana was defeated.
California is by far the largest marijuana market in the U.S. -- and in the world. The state's marijuana sales were close to $3 billion in 2017. The state's total marijuana market is projected to soar to $7.7 billion by 2022.
Of the U.S. states where only medical marijuana is legal, Michigan currently ranks as the largest market, with estimated 2017 sales of $811 million. However, Florida could be on track to jump past Michigan within the next four years, with estimated medical marijuana sales of more than $1.7 billion.
In addition, 15 other states have cannabidiol (CBD) laws that permit the legal use of the nonpsychoactive cannabis component for medical purposes. Several of these states also allow the use of medical marijuana with low levels of tetrahydrocannabinol (THC), the primary psychoactive component in cannabis. Four states -- Idaho, Kansas, Nebraska, and South Dakota -- have no statutes permitting the legal use of marijuana.
Sen. Cory Gardner (R.-Colo) and Sen. Elizabeth Warren (D.-Mass.) are promoting bipartisan legislation that would result in the U.S. federal government's recognizing state laws that have legalized either medical or recreational marijuana. Both Gardner and Warren represent states that have legalized both medical and recreational marijuana. In April, President Trump signaled his support for Sen. Gardner's effort to keep the federal government out of the way of states that have legalized marijuana. The bill introduced by Sen. Gardner and Sen. Warren has not been brought up for a vote in the full Senate yet, though.
Dynamics behind the push to legalize marijuana
Even before significant efforts began to legalize marijuana, several countries and U.S. states moved to decriminalize the drug through the relaxation of criminal penalties associated with personal marijuana use. In 1973, Oregon became the first U.S. state to decriminalize marijuana, establishing a relatively low fine of $100 for possession of up to one ounce of the drug.
The biggest factor behind the push to legalize marijuana has been growing public support for legalization. A survey conducted by the Center for American Progress (CAP) and GBA Strategies in June 2018 found that 68% of respondents supported legalizing marijuana -- a record high level. Of those in favor of legalization, 40% indicated that they "strongly support" marijuana's being legalized.
Some might question a survey sponsored by CAP because of its left-leaning political views. However, other surveys have also indicated increasing levels of support among Americans for marijuana legalization.
For example, results announced in October 2018 from a Pew Research Center survey found that 62% of Americans think that marijuana should be legalized. That level of support is nearly double the 31% of respondents favoring legalization in 2000.
One major reason marijuana legalization has picked up overall support among U.S. citizens is that millennials are heavily in favor of legalization. Millennials are expected to overtake baby boomers as the largest living adult generation in 2019. The Pew Research Center survey reported that an overwhelming majority -- 74% -- of millennials support legalization of marijuana. However, majorities of all other generation groups except the Silent Generation -- Americans born between 1925 and 1945 -- also support the legalization of marijuana.
But why has public opinion shifted toward support for marijuana legalization? A CBS News poll taken in April found that only 9% of Americans felt that marijuana was more dangerous than alcohol. Slightly more than half of Americans think that alcohol is more dangerous than marijuana.
There are also more reasons now for people to believe that the use of marijuana can be beneficial for some medical conditions. A report released by the National Academies of Sciences, Engineering, and Medicine in 2017 found "conclusive or substantial" evidence for marijuana's efficacy in treating chronic pain, chemotherapy-induced nausea and vomiting, and multiple sclerosis spasticity. In addition, the report cited moderate evidence supporting the efficacy of cannabis in treating short-term sleep issues, fibromyalgia, chronic pain, and multiple sclerosis.
The most important wins for medical marijuana came in 2018. In June the U.S. Food and Drug Administration (FDA) approved CBD drug Epidiolex for treating Dravet syndrome and Lennox-Gastaut syndrome (LGS), both of which are rare forms of childhood-onset epilepsy. In September the U.S. Drug Enforcement Administration (DEA) classified Epidiolex as a Schedule V drug -- the least restrictive category available.
Impact following marijuana legalization
What has happened in countries and states following marijuana legalization? It's still early for most areas, but some effects have been seen.
In Uruguay, which legalized recreational marijuana in 2017, illegal drug trafficking of marijuana has plummeted. Cannabis hasn't become a huge industry in the South American country yet, however. This is due in large part to banks pressuring pharmacies in Uruguay not to sell marijuana.
Canada's legalization of medical and recreational marijuana created a rapidly expanding industry. The country's top licensed producers sport multibillion-dollar market caps and have attracted attention from major companies outside of the cannabis industry.
The U.S. states that were among the first to legalize recreational marijuana probably provide the best information about the impact of legalization. Colorado's total marijuana sales topped $1.5 billion in 2017 and more than $1 billion as of August 2018. Since 2014 the state has collected more than $840 million in tax revenue from marijuana sales.
Washington saw sales of legal marijuana totaling $1.3 billion in its fiscal year 2017, which ended on June 30, 2017. The state collected $319 million of that amount in taxes and license fees. Half of the total collected revenue went to help fund the state's Basic Health Plan Trust Account, which provides healthcare services to those in the state who lack coverage. Another 31% of the total went to the state's general fund, with the remaining amount distributed among substance abuse programs and other public services.
Studies have also indicated that opioid use is lower in states that have legalized medical marijuana than in states that haven't. Data from Medicare's drug database showed a 14% reduction in opioid prescriptions in states with laws allowing relatively easy access to medical marijuana than in other states. It should be noted, however, that this analysis showed only a correlation between lower opioid use and states' medical marijuana policies, not firm grounds for concluding that the medical marijuana access caused the lower opioid use.
Marijuana-related arrests have generally fallen in states with legal recreational marijuana. Concerns about legalized marijuana's effect on such problems as teen marijuana use and traffic fatalities have so far not been borne out, with rates remaining relatively steady in states that have legalized recreational marijuana.
On the other hand, some negative impacts have followed marijuana legalization. There have been more traffic-related insurance claims in states that have legalized recreational marijuana. And in Colorado, overall crime rates have gone up since recreational marijuana legalization, while the trend has been downward for the U.S. as a whole. However, it's not certain whether Colorado's increasing crime rate is a result of marijuana legalization or other factors.
Stocks to watch
The genie is out of the bottle with respect to marijuana legalization. This means plenty of investing opportunities. Below are key marijuana stocks to watch that are well positioned to profit from the expansion of marijuana legalization.
Data source: YCharts. Market caps as of Nov. 30, 2018.
Canopy Growth: This company ranks as one of the top Canadian licensed producers of marijuana. Canopy claims 4.3 million square feet of growing space currently licensed for production, with another 1.3 million square feet planned. It has supply agreements in place with all the Canadian provinces that have finalized plans for the recreational marijuana market. Canopy also has a solid presence in key international markets, including Germany. Alcoholic beverage giant Constellation Brands (NYSE: STZ) has invested $4 billion in Canopy and owns a 38% stake in the company.
Innovative Industrial Properties: Organized as a real estate investment trust (REIT) -- a company that owns and leases income-generating real estate -- Innovative Industrial Properties focuses on the U.S. medical marijuana industry. It currently owns nine properties in Arizona, Maryland, Massachusetts, Michigan, New York, and Pennsylvania, all of which have legalized medical marijuana.
Organigram Holdings: Like Canopy Growth, Organigram is a Canadian licensed cannabis producer. Although smaller than Canopy, Organigram still ranks among the 10 largest marijuana growers in terms of annual production capacity . The company has secured supply agreements with seven Canadian provinces for the recreational marijuana market. Organigram also has partnerships in the Australian and German medical marijuana markets.
Origin House: Formerly known as CannaRoyalty, Origin House is the largest distributor of marijuana in California , with more than 50 brand partners. The company also markets several of its own recreational marijuana brands. Origin House's acquisition of 180 Smoke, a leading vape retailer with 26 stores, will give it a retail presence in the Canadian market.
Scotts Miracle-Gro: Perhaps best known for its consumer lawn and garden products, Scotts Miracle-Gro has made several acquisitions to become the top supplier to the U.S. cannabis industry. The company's Hawthorne Gardening subsidiary supplies fertilizers, hydroponics, lighting systems, pumps, ventilation systems, and other products to marijuana growers. Scotts ranks as the largest U.S.-based marijuana stock in terms of market cap.
What's next for marijuana legalization?
More countries are likely to legalize medical marijuana in the coming years. More U.S. states are likely to do so as well. It's hard to argue that marijuana doesn't have at least some medical benefits in the face of studies indicating otherwise.
It wouldn't be surprising for more countries and U.S. states to legalize recreational marijuana also. Public support for doing so is growing. And the tax revenue being generated in states and countries that have already legalized recreational marijuana could prove tempting to those that haven't.
The big question is whether or not the U.S. will legalize marijuana. Rep. Dana Rohrabacher (R.-Calif.), a staunch supporter of President Trump, stated in October 2018 that the president will work to legalize medical marijuana at the federal level and ensure that the federal government will leave recreational marijuana legalization to the states. Rohrabacher was defeated in the November 2018 elections, but the results of those elections could improve the chances that federal marijuana laws will change in the near future.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands, Innovative Industrial Properties, OrganiGram Holdings, and Origin House. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Justin Trudeau ran for the office of prime minister in 2015. Trudeau won the election -- and began working to advance legislation through the Canadian parliament to fulfill his campaign promise. In September the U.S. Drug Enforcement Administration (DEA) classified Epidiolex as a Schedule V drug -- the least restrictive category available.
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Justin Trudeau ran for the office of prime minister in 2015. Trudeau won the election -- and began working to advance legislation through the Canadian parliament to fulfill his campaign promise. In September the U.S. Drug Enforcement Administration (DEA) classified Epidiolex as a Schedule V drug -- the least restrictive category available.
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Justin Trudeau ran for the office of prime minister in 2015. Trudeau won the election -- and began working to advance legislation through the Canadian parliament to fulfill his campaign promise. In September the U.S. Drug Enforcement Administration (DEA) classified Epidiolex as a Schedule V drug -- the least restrictive category available.
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Justin Trudeau ran for the office of prime minister in 2015. Trudeau won the election -- and began working to advance legislation through the Canadian parliament to fulfill his campaign promise. In September the U.S. Drug Enforcement Administration (DEA) classified Epidiolex as a Schedule V drug -- the least restrictive category available.
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2018-11-09 00:00:00 UTC
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Ding Dong, Jeff Sessions Is Gone -- but That's Not the Big News for Canadian Marijuana Stocks
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https://www.nasdaq.com/articles/ding-dong-jeff-sessions-gone-thats-not-big-news-canadian-marijuana-stocks-2018-11-09
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Well, that didn't take long. Many expected that President Trump would replace Jeff Sessions as U.S. Attorney General after the U.S. elections on Nov. 6. But for Sessions to be booted out the very next day after the elections was a quicker move than anticipated.
Sessions became the public face of opposition to marijuana legalization as a result of his history of critical comments about the drug and his overturning of Obama-era policies that kept the U.S. Department of Justice (DOJ) from intervening in states that had legalized marijuana. Almost immediately after his ouster, the cannabis industry began to celebrate.
The replacement of Sessions could turn out to be good news for cannabis-related businesses operating in the U.S. Hold the champagne for Canadian marijuana stocks, though. There's some big news that could be great for these stocks -- but it has nothing to do with Jeff Sessions' departure.
Overrated impact
Some observers were quick to attribute Wednesday's gains for Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB) , Canopy Growth (NYSE: CGC) , and Tilray (NASDAQ: TLRY) to Jeff Sessions' ouster. And it's true that these stocks did jump after reports surfaced about Sessions being replaced as U.S. Attorney General. But the reality is that marijuana stocks had already moved much higher on Wednesday, even before the Sessions news broke.
More important, though, is the fact that the exit of Jeff Sessions has little to do with most Canadian marijuana stocks. That's certainly the case for Aurora, Canopy Growth, and Tilray. None of these companies have significant operations in the U.S.
The only notable interactions between Jeff Sessions' DOJ and Canadian marijuana companies were positive ones. In September, the U.S. Drug Enforcement Administration (DEA), which falls under the DOJ, granted approval for Tilray to provide a cannabinoid drug to the University of California San Diego Center for Medicinal Cannabis Research to use in a clinical trial. In October, the DEA allowed Canopy Growth to export medical cannabis to the U.S. for a clinical study, also.
For the U.S. cannabis industry, the departure of Jeff Sessions indeed is good news. But for now, at least, the leader of the U.S. DOJ is about as relevant to Aurora, Canopy Growth, and Tilray as the person who serves as the U.S. Secretary of Energy. (It's former Texas governor Rick Perry, by the way.)
The truly big news
There was news this week, however, that truly could be important to the major Canadian marijuana stocks. And this news was the primary reason stocks like Aurora, Canopy Growth, and Tilray generated nice gains on Wednesday, well before the Jeff Sessions story hit the wires.
The truly big news was related to the potential ramifications of the U.S. elections. It wasn't that Michigan voted to legalize recreational marijuana, although that was certainly a major development. It wasn't that Missouri and Utah voted to legalize medical marijuana, which also were important stories in their own right. No, the key outcome from the U.S. elections for Canadian marijuana stocks was that the odds of changes being made to U.S. federal laws prohibiting marijuana just improved significantly.
Come January 2019, Democrats will claim a majority in the U.S. House of Representatives. Nearly 70% of Democratic voters support marijuana legalization, according to a recent Pew Research Center survey. That's a lot higher than the 45% of Republicans who support marijuana legalization. It stands to reason that a Democrat-controlled House is much more likely to pass marijuana-reform legislation than a GOP-controlled House.
Does this mean that changes to U.S. federal laws on marijuana will be a shoo-in? Not at all. Even if legislation passes the House, it also has to be approved by the Senate and signed by the president. However, the chances of three hurdles being jumped increase when the probability that the first hurdle will be cleared increases.
No overrating of this impact
What would happen if the U.S. changes its federal laws to either legalize marijuana nationally or at least leave the issue to the states (which is more likely)? The impact on Canadian marijuana stocks would be enormous.
Consider that the total Canadian marijuana market should be around $5.5 billion by 2022, according to Arcview Market Research and BDS Analytics. The marijuana market in the rest of the world outside of Canada and the U.S. should add another $3.1 billion. But the U.S. is likely to claim marijuana sales of $23.4 billion within the next four years.
The current valuations of Aurora Cannabis, Canopy Growth, and Tilray are ridiculously high if the companies can't compete in the U.S. But they don't look nearly as absurd if the U.S. market opened up for business for them.
Jeff Sessions is gone, but that really doesn't matter for the top Canadian marijuana growers. The yellow brick road leading to opening the lucrative U.S. market for these companies starts in the U.S. Congress. To mix metaphors between The Wizard of Oz and the Beatles, it could be a long and winding road.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In September, the U.S. Drug Enforcement Administration (DEA), which falls under the DOJ, granted approval for Tilray to provide a cannabinoid drug to the University of California San Diego Center for Medicinal Cannabis Research to use in a clinical trial. In October, the DEA allowed Canopy Growth to export medical cannabis to the U.S. for a clinical study, also. And this news was the primary reason stocks like Aurora, Canopy Growth, and Tilray generated nice gains on Wednesday, well before the Jeff Sessions story hit the wires.
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In September, the U.S. Drug Enforcement Administration (DEA), which falls under the DOJ, granted approval for Tilray to provide a cannabinoid drug to the University of California San Diego Center for Medicinal Cannabis Research to use in a clinical trial. In October, the DEA allowed Canopy Growth to export medical cannabis to the U.S. for a clinical study, also. Overrated impact Some observers were quick to attribute Wednesday's gains for Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB) , Canopy Growth (NYSE: CGC) , and Tilray (NASDAQ: TLRY) to Jeff Sessions' ouster.
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In September, the U.S. Drug Enforcement Administration (DEA), which falls under the DOJ, granted approval for Tilray to provide a cannabinoid drug to the University of California San Diego Center for Medicinal Cannabis Research to use in a clinical trial. In October, the DEA allowed Canopy Growth to export medical cannabis to the U.S. for a clinical study, also. Overrated impact Some observers were quick to attribute Wednesday's gains for Canadian marijuana stocks like Aurora Cannabis (NYSE: ACB) , Canopy Growth (NYSE: CGC) , and Tilray (NASDAQ: TLRY) to Jeff Sessions' ouster.
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In September, the U.S. Drug Enforcement Administration (DEA), which falls under the DOJ, granted approval for Tilray to provide a cannabinoid drug to the University of California San Diego Center for Medicinal Cannabis Research to use in a clinical trial. In October, the DEA allowed Canopy Growth to export medical cannabis to the U.S. for a clinical study, also. Many expected that President Trump would replace Jeff Sessions as U.S. Attorney General after the U.S. elections on Nov. 6.
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2018-11-08 00:00:00 UTC
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A Key Marijuana Opponent Is Gone: Jeff Sessions Resigns
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https://www.nasdaq.com/articles/key-marijuana-opponent-gone-jeff-sessions-resigns-2018-11-08
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One day after the midterm elections, U.S. Attorney General Jeff Sessions resigned at the request of President Trump. Sessions' exit could help propel pro-pot policy in Washington, D.C., as he was one of marijuana supporters' most vocal adversaries.
An obstacle to reversing marijuana prohibition
There are 33 U.S. states that have passed laws legalizing cannabis in one form or another, including three states in which voters cast ballots in favor of legalization on Nov. 6.
Even though a majority of U.S. states now have laws on the books that OK marijuana for medical use and 10 states have laws allowing marijuana's recreational use, marijuana is still a Schedule I controlled substance that's illegal at the federal level. As a result, the U.S. marijuana market is crimped by inadequate access to banking services and onerous tax treatment.
Sessions isn't the only reason there's been little progress toward marijuana legalization in Washington, D.C., but he's certainty an been an important one since Trump appointed him in 2016. As attorney general, Sessions, who has a long history of making anti-marijuana comments, controlled the Department of Justice, the Federal Bureau of Investigation, and the Drug Enforcement Agency (DEA) -- agencies tasked with enforcing marijuana's prohibition.
In 2016, the DEA considered changing marijuana's drug scheduling, but following discussions with the Food and Drug Administration, the DEA decided to leave marijuana's scheduling unchanged, citing a lack of scientific proof backing up claims of marijuana's medicinal benefits. Because marijuana's Schedule I status remained, the door has been left open for the federal government to enforce federal anti-marijuana rules even in states that have passed pro-pot laws.
The risk of federal action on marijuana nationwide has, until now, been heightened by Sessions' role in the administration. He had applauded President Reagan's War on Drugs. He had said that "we need grownups in Washington to say marijuana is not the kind of thing that ought to be legalized," and that "good people don't smoke marijuana."
Last year, he lobbied against policies preventing the Justice Department from going after cannabis companies that are operating legally in states that have passed marijuana laws. Specifically, he took aim at the Rohrabacher-Blumenauer amendment prohibiting the use of federal funds to interfere with states' implementation of their own marijuana laws.
As part of that effort, he sent a letter to senior members of the Senate and House condemning a Ninth Circuit court ruling prohibiting his department from enforcing the Controlled Substances Act in cases where marijuana businesses are operating in compliance with state law. His letter said the ruling was "unwise" in a period of a "historic drug epidemic and potentially long-term uptick in violent crime." He also said studies show marijuana poses a significant health risk and that its use can reduce a person's IQ.
His anti-marijuana stance was further evidenced by his decision in January to abandon the Cole memorandum , issued under President Obama. The memorandum had directed U.S. attorneys to focus on eight areas of enforcement, including distribution to minors and interstate trafficking, rather than individual possession by adults in states that have passed marijuana laws.
The all-important question
Trump isn't marijuana's biggest advocate, but his comments during the 2016 campaign suggest he supports states' rights and medical marijuana. The big question following Sessions' departure is, whom will Trump appoint next? On Wednesday, he announced the interim appointment of Matthew G. Whitaker, who was formerly Sessions' chief of staff. As for a permanent replacement, Trump simply tweeted that "A permanent replacement will be nominated at a later date."
If he installs a more marijuana-friendly person in the top spot, that could provide an easier path toward changes in Washington that, at a minimum, might make it easier to do business in pro-pot states and, at a maximum, allow for meaningful change in how marijuana is viewed at the federal level.
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The author(s) may have a position in any 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As attorney general, Sessions, who has a long history of making anti-marijuana comments, controlled the Department of Justice, the Federal Bureau of Investigation, and the Drug Enforcement Agency (DEA) -- agencies tasked with enforcing marijuana's prohibition. In 2016, the DEA considered changing marijuana's drug scheduling, but following discussions with the Food and Drug Administration, the DEA decided to leave marijuana's scheduling unchanged, citing a lack of scientific proof backing up claims of marijuana's medicinal benefits. Last year, he lobbied against policies preventing the Justice Department from going after cannabis companies that are operating legally in states that have passed marijuana laws.
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As attorney general, Sessions, who has a long history of making anti-marijuana comments, controlled the Department of Justice, the Federal Bureau of Investigation, and the Drug Enforcement Agency (DEA) -- agencies tasked with enforcing marijuana's prohibition. In 2016, the DEA considered changing marijuana's drug scheduling, but following discussions with the Food and Drug Administration, the DEA decided to leave marijuana's scheduling unchanged, citing a lack of scientific proof backing up claims of marijuana's medicinal benefits. Because marijuana's Schedule I status remained, the door has been left open for the federal government to enforce federal anti-marijuana rules even in states that have passed pro-pot laws.
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As attorney general, Sessions, who has a long history of making anti-marijuana comments, controlled the Department of Justice, the Federal Bureau of Investigation, and the Drug Enforcement Agency (DEA) -- agencies tasked with enforcing marijuana's prohibition. In 2016, the DEA considered changing marijuana's drug scheduling, but following discussions with the Food and Drug Administration, the DEA decided to leave marijuana's scheduling unchanged, citing a lack of scientific proof backing up claims of marijuana's medicinal benefits. Even though a majority of U.S. states now have laws on the books that OK marijuana for medical use and 10 states have laws allowing marijuana's recreational use, marijuana is still a Schedule I controlled substance that's illegal at the federal level.
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As attorney general, Sessions, who has a long history of making anti-marijuana comments, controlled the Department of Justice, the Federal Bureau of Investigation, and the Drug Enforcement Agency (DEA) -- agencies tasked with enforcing marijuana's prohibition. In 2016, the DEA considered changing marijuana's drug scheduling, but following discussions with the Food and Drug Administration, the DEA decided to leave marijuana's scheduling unchanged, citing a lack of scientific proof backing up claims of marijuana's medicinal benefits. Even though a majority of U.S. states now have laws on the books that OK marijuana for medical use and 10 states have laws allowing marijuana's recreational use, marijuana is still a Schedule I controlled substance that's illegal at the federal level.
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2018-11-07 00:00:00 UTC
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Jeff Sessions' Resignation Means Little to the Marijuana Legalization Movement
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https://www.nasdaq.com/articles/jeff-sessions-resignation-means-little-marijuana-legalization-movement-2018-11-07
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This has been a game-changing week for U.S. politics . On Tuesday night, Nov. 6, Americans across the country went to the polls to determine the make-up of the 116th Congress. When the dust settled, Democrats had picked up more than enough seats in the House of Representatives to claim a majority for the first time in eight years. Meanwhile, Republicans not only held on to what had been a slim majority in the Senate -- they expanded their number of seats. In other words, we're looking at a split Congress for the first time in four years.
However, not all of the big news stories ended with election night. On Wednesday, Nov. 7, less than a day after the midterm elections ended, Attorney General Jeff Sessions announced that he was resigning, pursuant to a request from President Trump.
Former U.S. Attorney General Jeff Sessions (center), his wife, and President Trump signing documents. Image source: Official White House Photo by Benjamin D. Applebaum.
Sessions' departure creates a buzz with pot stocks
Sessions' resignation shouldn't come as anything of a shock, given how much Trump and Sessions butted heads on key issues, including the ongoing investigation into Russia's involvement in the 2016 presidential election. But his stepping aside has been viewed by many as a necessary step to push the marijuana legalization movement forward in the United States.
That's because Sessions has been perhaps the most ardent opponent of cannabis on Capitol Hill. This is a lawmaker who said "Good people don't smoke marijuana." He also sent a letter to a handful of his congressional allies in 2017 in the hope of repealing the Rohrabacher-Farr Amendment , which protects medical marijuana businesses from federal prosecution. In effect, Sessions made it very clear that federal cannabis wouldn't be legalized under his watch.
When news hit the wires that Sessions was stepping aside, pot stocks notably surged. Tilray (NASDAQ: TLRY) was perhaps the biggest winner, with its shares surging 31% and pushing the company back above a $13 billon market cap. Tilray has already been given the OK from the U.S. Drug Enforcement Agency (DEA) to import an investigational drug containing the cannabinoids tetrahydrocannabinol (THC) and cannabidiol (CBD) for a study on essential tremor at the University of California, San Diego. The company's focus on medical patients -- there are now 32 medically legal states following the midterm elections -- and its push into international markets have investors hopeful that a change in tune is on tap for the U.S. federal government.
Other solid winners following news of Sessions' departure included Aurora Cannabis (NYSE: ACB) , Cronos Group , and Canopy Growth Corp. (NYSE: CGC) , which rose by 9%, 8%, and 8%, respectively.
Resistance to legalization goes well beyond Jeff Sessions
The reality, however, is that Sessions' resignation is unlikely to affect the outlook for legalization in the United States . Despite being the figurehead for the anti-legalization movement, and perhaps even encouraging cannabis enthusiasts to take action, there's much more to legalization resistance than just one person.
First, there are the other 535 lawmakers in Washington -- 100 in the Senate and 435 in the House. Even though the newest Gallup poll finds that an all-time record 66% of Americans want to legalize marijuana, lawmakers from both sides of the aisle have had little interest in bringing cannabis legalization to the docket in Congress. Frankly, there are far more pressing issues, such as healthcare and the debt ceiling, for them to consider putting cannabis legalization on the table.
Second, even if lawmakers were to consider legalization, they wouldn't introduce a bill for vote until clinical studies clearly found that the benefits of cannabis use outweigh its risks. Lawmakers and the president have called for increased medical and clinical research for years, but the red tape surrounding the drug's Schedule I classification has made this research almost impossible to run. This Catch-22 has held cannabis back at the federal level for some time and will probably continue to do so.
Third, and arguably most important, legalization would be a net negative for the federal government . Currently, marijuana-based businesses in legalized states are subject to Section 280E of the U.S. tax code. Introduced in the early 1980s, this tax code disallows businesses that sell a federally illicit substance from taking normal corporate income tax deductions, save for cost of goods sold. This can lead to effective income tax rates of as much as 70% to 90%. If marijuana were to be legalized, weed businesses would no longer be subject to 280E, thereby reducing tax revenue collection by billions of dollars over the next decade. With the federal budget deficit hitting a six-year high in 2018, further reducing revenue wouldn't sit well with Congress.
An argument could even be made that Sessions' departure will lessen the fire that cannabis enthusiasts have to legalize marijuana. Without a genuine figurehead for the anti-legalization movement in Washington, the push to green-light pot could go up in smoke .
Gains in pot stocks make little sense
Given all the variables working against legalization, the gains that marijuana stocks saw on Wednesday would appear to make little sense. Although wide share-price vacillations are commonplace in the industry, nothing has fundamentally changed with any of the big cannabis companies following Sessions' resignation.
Sure, Tilray gained nearly $33 a share on Wednesday, but Sessions' departure doesn't provide any guarantees that it'll see a dime in extra revenue or profit anytime soon. In fact, it would probably take a miracle for Tilray to hold its $13 billion market cap, considering how many obstacles it's yet to face. In just a little over two months, Tilray will face the end of its lock-up period, which will free insiders to bail on some or all of their initial positions.
Tilray is also in the midst of expanding its production capacity to compete with its peers. With around 850,000 square feet of capacity on track to be completed by the end of this calendar year, Tilray is miles behind Canopy Growth and Aurora Cannabis. When at peak production capacity, Canopy and Aurora Cannabis should hit approximately 500,000 kilograms and more than 600,000 kilograms per year. I'd peg Tilray at just 75,000 to 85,000 kilograms at the moment, with room to perhaps triple its yield over the next three years. Still, building out its growing capacity and pushing into international markets is going to be pricey, more or less locking Tilray into losses for the next couple of years.
Even Canopy Growth and Aurora Cannabis, which are much further along in their production capacity expansion and licensing than Tilray, are no locks to turn a recurring profit anytime soon, without the assistance of fair-value adjustments to their biological assets. The capacity expansion, marketing, and brand-building phase the marijuana industry is currently undergoing is very costly, and it'll probably mean losses in the intermediate term .
In other words, Sessions' resignation is really much ado about nothing for marijuana stocks and the legalization movement.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tilray has already been given the OK from the U.S. Drug Enforcement Agency (DEA) to import an investigational drug containing the cannabinoids tetrahydrocannabinol (THC) and cannabidiol (CBD) for a study on essential tremor at the University of California, San Diego. On Wednesday, Nov. 7, less than a day after the midterm elections ended, Attorney General Jeff Sessions announced that he was resigning, pursuant to a request from President Trump. Sure, Tilray gained nearly $33 a share on Wednesday, but Sessions' departure doesn't provide any guarantees that it'll see a dime in extra revenue or profit anytime soon.
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Tilray has already been given the OK from the U.S. Drug Enforcement Agency (DEA) to import an investigational drug containing the cannabinoids tetrahydrocannabinol (THC) and cannabidiol (CBD) for a study on essential tremor at the University of California, San Diego. On Wednesday, Nov. 7, less than a day after the midterm elections ended, Attorney General Jeff Sessions announced that he was resigning, pursuant to a request from President Trump. The company's focus on medical patients -- there are now 32 medically legal states following the midterm elections -- and its push into international markets have investors hopeful that a change in tune is on tap for the U.S. federal government.
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Tilray has already been given the OK from the U.S. Drug Enforcement Agency (DEA) to import an investigational drug containing the cannabinoids tetrahydrocannabinol (THC) and cannabidiol (CBD) for a study on essential tremor at the University of California, San Diego. Sessions' departure creates a buzz with pot stocks Sessions' resignation shouldn't come as anything of a shock, given how much Trump and Sessions butted heads on key issues, including the ongoing investigation into Russia's involvement in the 2016 presidential election. Resistance to legalization goes well beyond Jeff Sessions The reality, however, is that Sessions' resignation is unlikely to affect the outlook for legalization in the United States .
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Tilray has already been given the OK from the U.S. Drug Enforcement Agency (DEA) to import an investigational drug containing the cannabinoids tetrahydrocannabinol (THC) and cannabidiol (CBD) for a study on essential tremor at the University of California, San Diego. In effect, Sessions made it very clear that federal cannabis wouldn't be legalized under his watch. In other words, Sessions' resignation is really much ado about nothing for marijuana stocks and the legalization movement.
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2018-11-05 00:00:00 UTC
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Easterly Government Properties (DEA) Matches Q3 FFO Estimates
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https://www.nasdaq.com/articles/easterly-government-properties-dea-matches-q3-ffo-estimates-2018-11-05
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.27 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.32 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this property management company would post FFO of $0.30 per share when it actually produced FFO of $0.29, delivering a surprise of -3.33%.
Over the last four quarters, the company has not been able to surpass consensus FFO estimates.
Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $39.44 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 1.07%. This compares to year-ago revenues of $33.86 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Easterly Government Properties shares have lost about 15.6% since the beginning of the year versus the S&P 500's gain of 1.9%.
What's Next for Easterly Government Properties?
While Easterly Government Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Easterly Government Properties was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.30 on $46.23 million in revenues for the coming quarter and $1.17 on $159.02 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.27 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
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Click to get this free report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.27 per share, in line with the Zacks Consensus Estimate. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $39.44 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 1.07%.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.27 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $39.44 million for the quarter ended September 2018, missing the Zacks Consensus Estimate by 1.07%.
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Easterly Government Properties (DEA) came out with quarterly funds from operations (FFO) of $0.27 per share, in line with the Zacks Consensus Estimate. Click to get this free report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. While Easterly Government Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
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2018-11-05 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Q3 Earnings Conference Call Transcript
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-q3-earnings-conference-call-transcript-2018-11-05
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Easterly Government Properties, Inc. (NYSE: DEA)
Q3 2018 Earnings Conference Call
Nov. 5, 2018, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the Easterly Government Properties third quarter 2018 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. As a reminder, this conference is being recorded.
I would now like to turn the conference over to Lindsay Winterhalter, Vice President, Investor Relations. Thank you. Please go ahead.
Lindsay Winterhalter --Vice President, Investor Relations
Good morning. Before the call begins, please note the use of forward-looking statements by the Company on this conference call. Statements made on this call may include statements which are not historical facts and are considered forward-looking. The Company intends these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Act Reform of 1995 and is making this statement for the purpose of complying with those Safe Harbor provisions. Although the Company believes that its plans, intentions, expectations, strategies, and prospects as reflected in or suggested by those forward-looking statements are reasonable, it can give no assurance that these plans, intentions, expectations, or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described in the forward-looking statements, and will be affected by a variety of risks and factors that are beyond the Company's control, including without limitation, those contained in Item 1A, Risk Factors, of its Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018, and in its other SEC filings. The Company assumes no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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Additionally, on this conference call, the Company may refer to certain non-GAAP financial measures, such as funds from operations and cash available for distribution. You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the Company's earnings release and separate supplemental information package on the Investor Relations page of the Company's website at ir.easterlyreit.com
I would now like to turn the conference over to Darrell Crate, Chairman of Easterly Government Properties.
Darrell W. Crate -- Chairman
Thank you, Lindsay. Good morning, everyone, and thank you for joining us for third quarter conference call. Today, in addition to Lindsay, I am also joined by Bill Trimble, the Company's CEO, and Meghan Baivier, the Company's CFO and COO.
Through the third quarter of 2018, Easterly remains focused on its strategic goals, to first achieve long-term distributable cash flow growth backed by the full faith and credit of the U.S. government, along with value creation through the releasing, acquisition, and development of mission-critical facilities leased to the United States government; and second, to scale the business through the acquisition and development of high-quality, accretive assets, which enables us to reduce risk through diversification and also achieving the lowest cost of capital for our investors.
The third quarter of 2018 has been the single largest quarter of acquisition activity for the Company since IPO. In September, we closed on 8 of the 14 properties in the previously announced bond portfolio, and subsequent to quarter end, we closed on another 3 of these properties. This brings our 2018 closed acquisition volume to $362 million, and we expect to complete the year at a total of $540 million in accretive deals. The acquisition team has demonstrated a definable edge in the ability to source and execute on accretive, mission-critical facilities that match our strict investment criteria.
We are firmly focused on accretive growth and scaling the Easterly platform, and look to achieve both without diluting the pristine nature of our portfolio. The acquisition of the Saban portfolio this year introduced the Company to several new, important, mission-critical agencies within the United States federal government. To date in 2018, primarily through the Saban acquisition, we have materially scaled the Company, growing the Company's enterprise value by nearly 20%, and increasing the Company's float by nearly one-third, while remaining true to our stated bullseye acquisition strategy.
During a time of rising interest rates, we believe our fixed rate debt structure and our 7 years of debt maturity, which exceeds 6.8 years of the portfolio's average remaining lease terms helps insulate us from future earnings volatility and preserves equity value. This protection, coupled with 99% of our annualized lease income, backed by the full faith and credit of the U.S. government, we believe makes Easterly a safe haven for investors in times of potential uncertainty.
As we look ahead, we're going to continue to curate our portfolio by placing incremental and potentially recycled capital into the agencies where we have the most insight and where we can become an even stronger private partner to the United States government.
In closing, I'd like to thank our team for their hard work and thank our shareholders for their partnership as we work to complete 2018 and start generating value in 2019. With that, I will turn the call over to bill to provide color on the initiatives at Easterly that are driving shareholder return.
William C. Trimble -- Chief Executive Officer and President
Thanks, Darrell, and good morning. Thank you for joining us for our third quarter earnings call. As Darrell mentioned, the third quarter of 2018 was a quarter of significant growth for Easterly. In this quarter, we successfully closed on 8 of the 14 properties previously announced as part of the Saban portfolio acquisition. As a reminder, this portfolio has a combined acquisition value of $430 million, and is comprised of high-quality assets that closely mirror the profile of our existing portfolio. This acquisition equates to approximately 1.5 million square feet of rentable space, 99% of which is leased with a weighted average lease expiration year of 2022.
Additionally, 79% of the assets are build-to-suit construction, meaning the design and functionality of the building was constructed to meet the specific needs of the underlying tenants. Further, these assets significantly scale the portfolio in an accretive manner and increase Easterly's already strong relationship with the U.S. federal government. With this portfolio, Easterly will not meet the lease real estate needs of 31 different U.S. government tenants. As mentioned, we have closed on 11 of the 14 properties to date, and we still expect to complete the acquisition of the remaining 3 assets prior to the end of 2018.
You may recall the portfolio acquisition is one we have been watching and anticipating since prior to IPO. We feel we were the natural buyers for this portfolio, given our distinct ability to underwrite these assets and monitor the mission being fulfilled in each asset. We have been pleased with our ability to seamlessly integrate these new assets into our portfolio, and materially scale the Company while remaining efficient in our staffing needs.
We believe that years from now, when we look back at 2018, we will see this as the year that materially scaled the Company and really demonstrated our ability to drive long-term growth through accretive acquisitions. While 2018 may be marked by the acquisition of this 14-property portfolio. This is by no means the only acquisition activity of this year.
With that, I'm excited to announce the upcoming acquisition of a modern, Class A laboratory, 100% leased to the GSA, and occupied by the DEA, located in Upper Marlboro, Maryland. This 50,978 square foot laboratory serves as the DEA's Mid-Atlantic regional laboratory, one of the DEA's 7 regional and 2 specialized laboratories located strategically throughout the country.
This laboratory provides scientific, technical, and administrative support to various law enforcement and intelligence communities. The start-of-the-art, mission-critical facility was constructed in 2002, and is still in its initial 20-year lease term, which expires in 2022. With this acquisition and the pending acquisition of the DEA's drone laboratory, the Company will now have 5 highly technical laboratories occupied by the DEA. Having both developed and acquired laboratories leased to the DEA in the past, we believe we are well poised to become even stronger partners with this extremely important agency within the federal government.
Acquisitions like DEA Upper Marlboro are what we like to refer to as the Company's bread-and-butter acquisitions. These are single targeted properties that fit squarely within the Company's bullseye acquisition strategy. Properties like these fulfill mission-critical functions for extremely important bureaus, departments, or agencies within the U.S. federal government. In this situation, short-term lease roll provides an excellent potential to capture significant releasing spreads.
Our pipeline remains robust, as Easterly continues to evaluate opportunities and pursue our pipeline of actionable deals. We continue to see ample opportunity to grow in this highly fragmented market, and acquisitions like DEA Upper Marlboro highlight the continued ability to source and execute on accretive transactions.
Turning to development, I'm pleased to report we have substantially completed the work at our FEMA Tracy site and have started receiving rent checks from the U.S. government as of October 1st. Mike Ibe, Vice Chairman and Head of Acquisitions and Development, is a seasoned developer with decades of experience in federally leased assets, and his skill in this unique business was really well demonstrated in this project. Recall we took over the project from another developer, who had won the lease award from the GSA. Our understanding of this requirement for completion of this project allowed us to relieve the developer and apply our skillset to ultimately deliver this project on time and on budget.
We also continued to make meaningful progress at our two other development sites -- FDA Alameda is still expected to deliver in the fourth quarter of 2019, and FDA Lenexa is still expected to deliver in the second quarter of 2020. As a reminder, these non-speculative development projects provide for great opportunities to see increased yield on brand-new facilities with long-term lease expirations. And we continue to monitor potential development opportunities that would closely mirror the strict set of underwriting requirements we maintain for our select portfolio.
Turning to lease renewals, we were pleased to report that subsequent to quarter end, Easterly successfully renewed the lease at the Patent and Trademark Office located in Arlington, Virginia. The renewal bidding process was highly competitive. Easterly was successful in executing the lease with the federal government for a new 15-year, firm term that runs through January 2035.
The larger of our two existing leases with the PTO will be extended to January of 2020, making it co-terminus with the existing, smaller lease, and one new lease for the entire PTO occupancy will then commence. The PTO will continue to occupy the same footprint in the building, and continues to make investments in the facility at the tenant's expense. I would like to thank our asset management team for their tireless effort in successfully navigating the releasing process with the GSA. We are very excited to remain partners to such an important agency within the federal government.
2018 has seen the renewal of two of our larger assets -- IRS Fresno and PTO Arlington, which equates to a combined total of just over 370,000 square feet of rentable space, or 8.4% of the total annualized lease income as of September 30. While these assets are extremely valuable to the underlying tenants, they fall on the plain vanilla office end of the spectrum. Because of this designation, local office market leasing conditions matter much more to the outcome of a renewal than for what we call our bullseye properties.
Due to the location of these two plain vanilla facilities, Fresno, California and Northern Virginia, we were not in a position to command bullseye-like renewal spreads. While have not yet finalized the government's usage of it's TI allowance on these renewals, you can expect to see a potential rent reduction of approximately 5% in the case of IRS Fresno, and 25% in the case of PTO Arlington. We are very happy to keep these tenants and maintain our 100% leased portfolio. Both of these buildings have emphasized to us the value of adhering to the bullseye acquisition strategy, as we have done so since IPO.
Owning highly specialized, build-to-suit facilities allows us to negotiate renewals based upon replacement costs at the time of lease renewal, rather than local market rents. With these two renewals completed, we have maintained our tenant occupancy under the new 15-year leases in both cases, and we will continue to adhere to this market knowledge going forward as we pursue future assets down the road.
Further, you have heard me address the short-term leasing activity for the 14-property Saban portfolio in the prior quarter call, and I'm pleased to report we have only received good news with regard to leasing thus far. The GSA has reaffirmed its commitment to its Clarksburg location and exercised its pre-negotiated 5-year renewal option for the 63,750 square foot fully occupied facility, thus extending the lease to January of 2024. This is an anticipated event by our team, and we look forward to continuing to develop our relationship with the federal government in Clarksburg.
With that, let me reiterate just how comfortable we are with this portfolio. When bidding, the team underwrote each of these properties party, with a very strong understanding of the strength of their tenancies. You will continue to see us focus on the portfolio's renewals, and work to drive additional value through extended lease terms and increased U.S. government cash flows.
Finally, on the subject of recycling capital. When the time is right, we will be selling assets. I will say we are always assessing that optionality, as we strive to cultivate a portfolio of assets that meet our bullseye investment criteria. If we see an opportunity, we will not hesitate to pursue that prospect and further refine our portfolio to center around our strict investment criteria.
In conclusion, our company is successfully enhancing value through long-term lease renewals, growing through accretive acquisitions, and beginning to generate cash flows at attractive yields from our completed development projects. Furthermore, our pipeline of future growth opportunities remains robust. With that, I thank you for your continued support and partnership, and your time on this call today. With that, I will also turn the call over to Meghan to discuss the company's quarterly financial results.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Thank you, Bill. Today I will review our current portfolio, discuss our third quarter results, provide an update on our balance sheet, discuss our 2018 guidance, and introduce our 2019 guidance. Additional details regarding our third quarter results can be found on the company's third quarter earnings release and supplemental information package.
As of September 30th, we owned 56 operating properties comprising approximately 4.8 million square feet of commercial real estate, with an additional 340,000 square feet under development. The weighted average remaining lease term of our portfolio was 6.8 years. The average age of our portfolio was 15.8 years, and our portfolio occupancy remained at 100%. In addition, 99% of our annualized lease income was backed by the full faith and credit of the United States government.
Pro forma for the recently substantially completed FEMA Tracy development project, for the announced future acquisition of DEA Upper Marlboro, and for the closing of the remaining 3 Saban portfolio properties, Easterly will own 64 operating properties comprising approximately 5.5 million square feet. The pro forma weighted average remaining lease term for our portfolio would be 7.1 years, and the average age of our portfolio would be 13.3 years.
For the third quarter, net income per share on a fully diluted basis was $0.04. FFO per share on a fully diluted basis was $0.27, and FFO as adjusted per share on a fully diluted basis was $0.24, and our cash available for distribution was $13.7 million. GAAP measures and reconciliations of these non-GAAP measures to GAAP measures have been provided in our supplemental information package.
Turning to the balance sheet, at quarter end, the Company had total indebtedness of $670 million, which was comprised of $33 million outstanding on its unsecured revolving credit facility, $250 million outstanding on its 2018 and 2016 senior unsecured term loan facility, $175 million of senior unsecured notes, and $212 million of mortgage debt. Availability on our revolving line of credit stood at $417 million.
As of September 30th, Easterly's net debts to total enterprise value was 33%, and its net debt to annualized quarterly EBITDA ratio was 7x. Net debt to annualized quarterly EBITDA on a pro forma basis for a full quarter of operations from the 9 acquisitions completed in the third quarter was 6x.
For the 12 months ending December 30, 2018, the Company is narrowing its range of guidance for FFO per share on a fully diluted basis to $1.17 to $1.20. This guidance is based on the Company completing the approximately $540 million of acquisitions announced to date this year. With respect to the Saban portfolio, the Company closed on $244 million of acquisition volume in the third quarter of 2018, another $33 million of acquisition volume in October, and anticipates the remaining $153 million in the final quarter of 2018. The Company's guidance further assumes $50 to $75 million of development-related investment during 2018.
The Company is also introducing it's 2019 guidance of FFO per share on a fully diluted basis in a range of $1.16 to $1.20. This 2019 guidance assumes $200 million of acquisitions and $75 to $100 million of gross development-related investment during 2019. The Company's 2018 and 2019 FFO guidance is forward-looking and reflects management's view of current and future market conditions.
As I touched on last quarter, the year-over-year comparison between our 2019 and 2018 guidance for FFO per share on a fully diluted basis may confuse some investors regarding the economic strength and cash-generating power of our business. With the expiration of significant, in-place leases at IRS Fresno and PTO Arlington, in 2019 there are positive, non-cash adjustments to revenue which will cease.
In 2019 specifically, revenue and thus FFO per share on a fully diluted basis faces a non-cash headwind of $2.5 million related to the cessation or completion of the amortization of lease-related assets and liabilities. This $2.5 million will negatively impact our year-over-year FFO comparison, yet has no bearing on the Company's distributable cash flow, the metric upon which, as management we are most highly focused.
Additionally, weighed average shares outstanding on a fully diluted basis in 2019 will include a approximately 1 million units that are the result of long-term incentive plan grants that were made at the time of IPO. In combination, these two factors diminish our 2019 FFO guidance by approximately $0.045 per share. Pro forma for these factors, the midpoint of 2019 guidance, represents year-over-year FFO per share growth from the midpoint of our 2018 guidance of 3.5%. Recall as well that FFO per share on a fully diluted basis also understates our distributable cash flow, as our VA Loma Linda property will experience an approximately 40% increase in shell rent in May of 2019, which will positively contribute to distributable cash flow by approximately $3.5 million.
Our objective is to deliver a growing cash dividend based by the full faith and credit of the U.S. government, and we believe the Company's current portfolio and in-process development will allow us to deliver on this goal. I previously announced last week our Board of Directors declared a dividend relating to our third quarter of operations of $0.26 per share. The dividend will be paid on December 27, 2018 to shareholders of record on December 13, 2018.
Finally, before turning the call over to the operator for quarter, allow me to step back and look at how far we have come since this time last year. Since the third quarter of 2017, we have maintained a conservative balance sheet which sits in a position where we can deploy capital accretively, thus allowing for future growth that remains consistent with our acquisition and develop fundamentals. We increased liquidity from the June 2018 equity offering, which puts the Company in a position of strength and allows us the dry powder to execute on future acquisitions and remain No. 1 in the market. We have maintained a healthy duration on our liabilities, which continues to exceed our weighted average remaining lease terms.
Additionally, we have maintained a predominantly fixed rate structure with a weighted average interest rate of 3.7%. This is in line with the rate seen this time last year, when the 10-year Treasury was 72 basis points lower. Using the strength of our growing portfolio, we've bene active in the capital markets to term out our debt with the completion of an amended and upside senior unsecured credit facility. We've also raised equity accretively in connection with the announcement of the Saban portfolio acquisition, thus increasing the liquidity in our stock, and we remained active in our ATM offering program.
With that, we would like to thank our capital providers on both the debt and equity side for their ongoing partnerships and confidence in Easterly. We look toward the future with excitement as we continue to pursue opportunities which we believe will drive earnings and distributable cash flow into 2019 and beyond. I will now turn the call back to the operator for questions.
Questions and Answers:
Operator
Thank you. If you'd like to ask a question at this time, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. Again, that is *1 to ask a question at this time. Our first question comes from the line of Michael Lewis with SunTrust.
Michael Lewis -- SunTrust Robinson Humphrey -- Analyst
Good morning. Thank you. Meghan, you guys gave the 2019 FFO guide, and you did a good job there I think of explaining some of those differences between the FFO and the cash. So we can do some math ourselves, but is there anything you could say to be more specific about what you expect the cash flow growth to be in 2019?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
I think if that was my intention, sharing that 3.5% pro forma FFO growth, obviously some of those factors flow through to FFO as adjusted in CAD, but I think that's a great place to be in terms of 2019 as a starting point.
Michael Lewis -- SunTrust Robinson Humphrey -- Analyst
Okay. And the acquisition you announced this morning, I was wondering if you could be more specific on some of the details around cost, cap rate, financing, and then also what you think that mark-to-market in 2022, what that spread might be today?
William C. Trimble -- Chief Executive Officer and President
Good morning. It's Bill. I think first of all, we're very familiar with these DEA labs. We develop them, we own them. Especially this model, which a large number were built in the 2002 timeframe. I would say that we acquired it right in our bullseye from a cap rate. So just where you think we would, in that 6.4-6.5 for the range. I think from a standpoint of renewal rents on these, we have been I think very pleased with how the government has been using this building. I think you're going to see that in the high teens to the low 20s upon renewal. So we're very pleased with the shorter-term lease, obviously running a whole pile of their sister labs throughout the company, we have a very good idea how they fit in with the mission of the DEA, and we look forward to renewing it in 2022.
Michael Lewis -- SunTrust Robinson Humphrey -- Analyst
Great. And then just one more from me. You had Fresno and Virginia renewals. You called them kind of more plain vanilla than your bullseye properties. How much of the portfolio would you say is this plain vanilla versus bullseye? Then deals like this where you signed the lease, do you think about putting those properties on the market, or do you think you'll always have a portion of the portfolio that's more of this what you called plain vanilla?
William C. Trimble -- Chief Executive Officer and President
Well, first of all, these two properties, certainly one of them with PTO Arlington we were in a very different world when we purchased that building a number of years ago. In fact, we purchased it way under local market rent. But I think the good news is we do have a wonderful asset in a good location, and as the Northern Virginia market comes back, if we're all together 15 years from now, I think we will see a lot of growth and value there. But I will also say that the super-majority of our properties are bullseye, and these two properties are the super-majority of the plain vanilla assets going forward. So this is very much the exception to the rule on what we own. We certainly understand that the problem is when you mark a lease, you don't always know what the local market is doing on a plain vanilla asset, and that's why you see us not particularly buying them. They really don't have a very large portion of our portfolio. Meghan, what's the percentage do you think? Probably 13 --
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah, no. Inclusive, closer to 10.
William C. Trimble -- Chief Executive Officer and President
So, we've pretty much taken all of the plain vanilla lease renewal risk out of our portfolio with these two renewals.
Michael Lewis -- SunTrust Robinson Humphrey -- Analyst
Okay, got it. Thank you.
Operator
Thank you. Once again, as a reminder, you may press *1 to ask a question at this time. Our next questions are from the line of Manny Korchman with Citi.
Emmanuel Korchman -- Citigroup Capital Markets-- Analyst
Good morning, everyone. I believe this is the first time you've spent any amount of time talking about recycling and selling assets. Just sort of curious, what's the potential spread that you think you could see between a sale and a recycling of those assets into something newer or something different?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah, so, Manny, very perceptive there. We are always looking at that. Especially in 2019, we'll continue to look at that. I think there are a couple factors that could go into that spread, but obviously in terms of primarily lease term, if it were to be a U.S. government asset, I think we could certainly look to break even, if not to pick up 25 basis points plus. And then also, the private centers are always on the list as potential [inaudible] capital. Is that on your end?
Emmanuel Korchman -- Citigroup Capital Markets-- Analyst
I guess the question then if it is one of those private assets you're selling given Darrell's comments on them pricing at local market rates versus replacement costs, you recycling that capital into a U.S. government lease, does that mean that would be a dilutive use of capital, but improvement in your portfolio quality? Is that the right way for us to think about it?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah, I think we're going to be opportunistic. We're not going to look to do anything. Those assets are good assets, and so we're not going to look to do anything that would be dilutive from that nature, but you're correct that if it was neutral to accretive, it would also enhance our portfolio quality.
Emmanuel Korchman -- Citigroup Capital Markets-- Analyst
And then, Meghan, as you think about your 2019 guidance, the $200 million of acquisitions, how much of that is just a placeholder, that's sort of the number you put in when you give guidance versus you're looking at a billion and you think you'll close 20% of it?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah, it's obviously informed from our knowledge of the market volumes and our competitiveness, but also what we have firmly circled in our pipeline. So it's a combination of both of those, but it's not purely from the first source.
Emmanuel Korchman -- Citigroup Capital Markets-- Analyst
And then are you looking at any larger deals similar to Saban that you're just not including in guidance because the likelihood of them happening is just lower?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
I'm sorry. Say that again? Renew?
William C. Trimble -- Chief Executive Officer and President
I think that's fair, Manny. We are looking at a number of large portfolios and they would not be in that number. I think we've heard it loud and clear that people like to see the plain vanilla, not plain vanilla. There's a Freudian slip. Actually, the bullseye properties. The ones and two-offs. We have a large $700 million pipeline of those opportunities going forward, and that's what we put forward for next year. But at the same time, we're doing a lot of work to identify the existing portfolios. Obviously, we've talked to the folks that own them and at some point we'll be looking forward to getting them in as well, but that's based just on the plain, regular business that we do.
Emmanuel Korchman -- Citigroup Capital Markets-- Analyst
That's it for my end. Thanks, guys.
Operator
Thank you. Our next question comes from the line of Michael Bilerman with Citi.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
Hey, it's Michael. Question just on guidance as you think about -- and Meghan, you went over some of the FFO versus AFFO numbers. Do you want to give, going forward a little bit more specific AFFO guidance and reporting to be able to highlight the differences? I mean, what you're running now is probably close to your cash dividend. We went over this a lot last quarter. Street estimate has come down, I think $0.06 or $0.07 already for 2019 since then. Do you want to start giving, if you're going to focus on cash flow, starting reporting guidance and giving some of the guidance metrics and details on that basis?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Good morning, Michael. At this stage, rather than introduce multiple additional non-GAAP measures, as I know you yourself are not in support of, we are going to ensure that investors have a clear understanding of the major drivers that may be influencing FFO or things that come below FFO as our bridge to distributable cash flow. So that's what you can expect from us. Very transparent on the drivers, but sticking with [inaudible] guidance metrics.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
Well, if your focus is going to be on AFFO and given there are a number of adjustments that are impacting your reported earnings, given that you have the burn-off of FAS 141, 142, you do have the CapEx numbers, why not just report and give AFFO guidance, rather than FFO guidance?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
We hear from investors, analysts that we are being very clear about the drivers in the business, and so just to repeat what I said before. We're going to stick with the one number for now and make sure that people have the tools they need for their models.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
All right. So then, as we think about 2019, can you break out straight line in totality '19 versus '18, FAS 141 '18 versus '19 aggregate number, so we understand the difference between '18 and '19 for those two non-cash items, please?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah, so with regard to the in-place portfolio, those are obviously impacts from our purchase price accounting that we have visibility into. The acquisition portfolio is a place where I am not able to opine on that, as you can understand, Michael. But in terms of those two numbers, you're looking at in excess of $4 million of incremental cash flow generation.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
So straight line and FAS should come down in totality by $4 million off of the current run rate on an annualized basis?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
No, that's on a year-over-year basis.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
Right. And then in terms of the acquisition, what's the spread between GAAP versus cash from an FFO and AFFO basis for the deals that you did? Because I would assume that it's got a much higher GAAP as you mark-to-market a lot of those leases that you bought.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Yeah, so I'll take the Saban portfolio as a representative example. There's typically -- there's some exceptions, as you know, with the Loma Linda, where the rent profile is particularly different, but most GSA leases are flat or with minimal contractual rent sums, so there was nothing material in that portfolio from a straight-line adjustment. And then the above-and-below market lease adjustment is going to depend on an asset-by-asset basis with regard to primarily lease term. So I'm trying to be helpful with my -- you know, in excess of $4 million number, but the above-and-below is very asset-by-asset dependent.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
And then G&A for next year is estimated at what in your guidance relative to 2018?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
We obviously don't give specific guidance on G&A, but we are fully ramped now for the Saban acquisition integration. And in support of that, we will be growing our G&A in 2019. We added two asset managers and a property accountant.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
Do you have any plans of any financings ore refinancings for next year that would be impacting 2019?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
With the current plans in terms of deployment of $200 million of acquisition capital and the development range that I mentioned, it may be prudent at some point for us to look to term out our revolver. There's obviously nothing specific that I can outline at this point today.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
Then just lastly in terms of CapEx and spend, anything in 2019 that would look different from your run rate that you've been handling in 2018?
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
No. We've outlined that we anticipate maintenance capital and contractual capital on the assets to run between $1.00 and $1.50 per square foot and that is anticipated on 2019 as well.
Michael Bilerman -- Citigroup Capital Markets-- Analyst
Okay. Thank you.
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
You're welcome.
Operator
Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back to Darrell Crate for closing comments.
Darrell W. Crate -- Chairman
Thank you, everybody, for joining the Easterly Government Properties third quarter of 2018 conference call. We hope you found this call to be informative and meaningful as you view today's attractive pricing of the platform for potential to achieve future, strong, risk-adjusted returns. The Company is growing on a foundation of premier assets based by the full faith and credit of the U.S. government. We appreciate your continued partnership and look forward to speaking with you again soon.
Operator
This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.
Duration: 37 minutes
Call participants:
Darrell W. Crate -- Chairman
William C. Trimble -- Chief Executive Officer and President
Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer
Lindsay Winterhalter -- Vice President, Investor Relations
Michael Lewis -- SunTrust Robinson Humphrey -- Analyst
Emmanuel Korchman -- Citigroup Capital Markets-- Analyst
Michael Bilerman -- Citigroup Capital Markets-- Analyst
More DEA analysis
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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Motley Fool Transcription 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties, Inc. (NYSE: DEA) Q3 2018 Earnings Conference Call Nov. 5, 2018, 10:00 a.m. This brings our 2018 closed acquisition volume to $362 million, and we expect to complete the year at a total of $540 million in accretive deals. With that, I'm excited to announce the upcoming acquisition of a modern, Class A laboratory, 100% leased to the GSA, and occupied by the DEA, located in Upper Marlboro, Maryland.
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Pro forma for the recently substantially completed FEMA Tracy development project, for the announced future acquisition of DEA Upper Marlboro, and for the closing of the remaining 3 Saban portfolio properties, Easterly will own 64 operating properties comprising approximately 5.5 million square feet. Duration: 37 minutes Call participants: Darrell W. Crate -- Chairman William C. Trimble -- Chief Executive Officer and President Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer Lindsay Winterhalter -- Vice President, Investor Relations Michael Lewis -- SunTrust Robinson Humphrey -- Analyst Emmanuel Korchman -- Citigroup Capital Markets-- Analyst Michael Bilerman -- Citigroup Capital Markets-- Analyst More DEA analysis This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties, Inc. (NYSE: DEA) Q3 2018 Earnings Conference Call Nov. 5, 2018, 10:00 a.m.
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Duration: 37 minutes Call participants: Darrell W. Crate -- Chairman William C. Trimble -- Chief Executive Officer and President Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer Lindsay Winterhalter -- Vice President, Investor Relations Michael Lewis -- SunTrust Robinson Humphrey -- Analyst Emmanuel Korchman -- Citigroup Capital Markets-- Analyst Michael Bilerman -- Citigroup Capital Markets-- Analyst More DEA analysis This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties, Inc. (NYSE: DEA) Q3 2018 Earnings Conference Call Nov. 5, 2018, 10:00 a.m. This brings our 2018 closed acquisition volume to $362 million, and we expect to complete the year at a total of $540 million in accretive deals.
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Duration: 37 minutes Call participants: Darrell W. Crate -- Chairman William C. Trimble -- Chief Executive Officer and President Meghan Baivier -- Executive Vice President, Chief Financial and Operating Officer Lindsay Winterhalter -- Vice President, Investor Relations Michael Lewis -- SunTrust Robinson Humphrey -- Analyst Emmanuel Korchman -- Citigroup Capital Markets-- Analyst Michael Bilerman -- Citigroup Capital Markets-- Analyst More DEA analysis This article is a transcript of this conference call produced for The Motley Fool. Easterly Government Properties, Inc. (NYSE: DEA) Q3 2018 Earnings Conference Call Nov. 5, 2018, 10:00 a.m. This brings our 2018 closed acquisition volume to $362 million, and we expect to complete the year at a total of $540 million in accretive deals.
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0f7289e3-9b2e-476e-b012-9862449d263e
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723459.0
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2018-11-04 00:00:00 UTC
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The First Cannabis-Derived Drug Is Now on Pharmacy Shelves
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DEA
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https://www.nasdaq.com/articles/first-cannabis-derived-drug-now-pharmacy-shelves-2018-11-04
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nan
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Rather than simply moving forward, the cannabis industry has leapt ahead in 2018. Arguably the biggest achievement for the industry is the legalization of recreation marijuana in Canada. Long discussed as an option, lawmakers and Prime Minister Justin Trudeau turned the idea into reality on Oct. 17, 2018. Once initial supply shortages are dealt with, and pending the capacity ramp-up of dozens of growers, we could be looking at a multibillion-dollar industry.
In case you missed it: The FDA made history
However, flying under the radar of this major event is the fact that the U.S. Food and Drug Administration (FDA) made history as well. On June 25, the regulatory agency approved the very first cannabis-derived drug . Mind you, synthetic versions of tetrahydrocannabinol (THC) have previously been approved by the FDA, but never a drug that was entirely derived from natural cannabinoids.
The drug in question that received the historic green light was GW Pharmaceuticals ' (NASDAQ: GWPH) Epidiolex, a treatment for two rare types of childhood-onset epilepsy -- Dravet syndrome and Lennox-Gastaut syndrome (LGS). This oral, cannabidiol (CBD)-based drug shined in multiple late-stage studies. CBD is the nonpsychoactive cannabinoid best known for its perceived medical benefits.
In one of the company's pivotal studies involving Dravet syndrome patients, those receiving Epidiolex were three times likelier to see a statistically significant reduction in seizure frequency from baseline relative to the placebo (39% vs. 13%).
Meanwhile, study results published in the New England Journal of Medicine for LGS patients showed a 37.2% reduction in drop-seizure frequency from baseline in the low-dose Epidiolex arm and a 41.9% decline in in the high-dose arm . Comparatively, only a 17.2% drop-seizure frequency decline was noted in the placebo group. It's these trial results that allowed GW Pharmaceuticals' to receive a unanimous recommendation of approval from the FDA's advisory panel (note, the FDA isn't required to follow the recommendation of its panel but often does), and to subsequently get the thumbs-up from the FDA.
GW Pharmaceuticals did, however, have some waiting to do following its approval. That's because cannabidiol is a controlled substance at the federal level and, therefore, Epidiolex would need to be scheduled by the U.S. Drug Enforcement Agency (DEA). In September, the DEA made its ruling, judging Epidiolex to be a Schedule V substance , the least restrictive of all controlled classifications.
GW Pharmaceuticals' cannabis-derived drug is now available, but investors should be wary
The only thing left for GW Pharmaceuticals was to actually launch Epidiolex in the U.S., which is exactly what it did on Thursday, Nov. 1. Although GW Pharmaceuticals fully expects insurers to cover the tab on Epidiolex, it'll come with a list price of $32,500 a year. According to the company, that's in line with the cost of other anti-epileptic drugs within the space.
While Epidiolex's prescription availability sounds like great news -- GW Pharmaceuticals' stock rose more than $7 per share following the announcement -- there's more to this story than meets the eye.
For starters, we've seen similar stories like GW's Epidiolex play out before. Practically all drug developers are confident that insurers will pay a premium list price for a unique drug, but that doesn't always prove true. In recent years, GlaxoSmithKline faced pressure from insurers for the pricing of its new line of long-lasting COPD and asthma products. Even though Glaxo eventually saw sales of Breo Ellipta and Anoro Ellipta soar, it took much longer than anyone anticipated for insurer coverage to be sufficient.
Biotech blue-chip Amgen has faced similar issues with next-generation cholesterol medicine Repatha, which it recently had to lower in price by almost 60% a year. The point being, there's no guarantee that insurers will be on board with GW Pharmaceuticals' $32,500 list price, even if they're getting substantial discounts. And if Epidiolex doesn't have adequate insurance coverage, you can expect it to negatively impact GW Pharmaceuticals' share price.
The other concern here is that even though Epidiolex is the only approved medicine for Dravet syndrome, and a new choice for LGS patients, it's unlikely to hold this distinction for long. Rival Zogenix (NASDAQ: ZGNX) has delivered surprisingly strong results from experimental drug ZX008. In mid-July, Zogenix announced a second pivotal-stage study involving ZX008 as a treatment for Dravet syndrome and, like the first late-stage study, it easily met its primary endpoint. Patients taking ZX008 achieved a nearly 55% greater reduction in mean monthly convulsive seizures relative to the placebo group.
At the moment, all signs would appear to point to Zogenix's lead drug gaining approval in the not-so-distant future. That would certainly reduce the sales outlook for GW Pharmaceuticals' Epidiolex.
As I've opined previously, GW Pharmaceuticals could very well be responsible for making history , but there's no guarantee it'll translate into big profits for the company or gains for its shareholders.
10 stocks we like better than GW Pharmaceuticals
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*Stock Advisor returns as of August 6, 2018
Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends Amgen. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Long discussed as an option, lawmakers and Prime Minister Justin Trudeau turned the idea into reality on Oct. 17, 2018. Once initial supply shortages are dealt with, and pending the capacity ramp-up of dozens of growers, we could be looking at a multibillion-dollar industry. That's because cannabidiol is a controlled substance at the federal level and, therefore, Epidiolex would need to be scheduled by the U.S. Drug Enforcement Agency (DEA).
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Long discussed as an option, lawmakers and Prime Minister Justin Trudeau turned the idea into reality on Oct. 17, 2018. Once initial supply shortages are dealt with, and pending the capacity ramp-up of dozens of growers, we could be looking at a multibillion-dollar industry. That's because cannabidiol is a controlled substance at the federal level and, therefore, Epidiolex would need to be scheduled by the U.S. Drug Enforcement Agency (DEA).
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Long discussed as an option, lawmakers and Prime Minister Justin Trudeau turned the idea into reality on Oct. 17, 2018. Once initial supply shortages are dealt with, and pending the capacity ramp-up of dozens of growers, we could be looking at a multibillion-dollar industry. That's because cannabidiol is a controlled substance at the federal level and, therefore, Epidiolex would need to be scheduled by the U.S. Drug Enforcement Agency (DEA).
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Long discussed as an option, lawmakers and Prime Minister Justin Trudeau turned the idea into reality on Oct. 17, 2018. Once initial supply shortages are dealt with, and pending the capacity ramp-up of dozens of growers, we could be looking at a multibillion-dollar industry. That's because cannabidiol is a controlled substance at the federal level and, therefore, Epidiolex would need to be scheduled by the U.S. Drug Enforcement Agency (DEA).
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1668c503-c391-4b55-b076-43299ea32409
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723460.0
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2018-10-24 00:00:00 UTC
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These 2 Marijuana Stocks Are Now Legally Exporting Cannabis to the U.S.
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DEA
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https://www.nasdaq.com/articles/these-2-marijuana-stocks-are-now-legally-exporting-cannabis-us-2018-10-24
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nan
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nan
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This has been a big year for " marijuana firsts ." We've witnessed a number of cannabis stocks move to reputable U.S. exchanges; stood back and watched the first cannabis-derived drug get approved by the U.S. Food and Drug Administration (FDA); and, of course, eagerly observed as Canada lifted the curtain on nine decades of recreational marijuana prohibition last week.
Perhaps the best thing of all about the legal pot industry is that the history-making never ceases. In fact, with adult-use weed now legal in our neighbor to the north, and numerous other countries considering legalization, it's arguable that history could be made on a regular basis moving forward.
Take, for example, the history that's being made by shipping marijuana from Canada into the United States. And yes, you did just read that correctly.
These two pot stocks were given the OK to ship cannabis to the U.S.
Despite 30 states having passed sweeping usage laws on medical cannabis in the U.S., the federal government continues to hold the drug as a Schedule I substance . This means it's entirely illegal, is prone to abuse, and has no recognized medical benefits. As such, interstate transport of cannabis and cross-border transport, including imports and exports, are strictly forbidden. That's why niche retailers like MedMen Enterprises have had to operate grow farms in each state they have retail operations, since out-of-state transport isn't a legal possibility in the United States.
But over the past five weeks, the federal government -- or should I say, the U.S. Drug Enforcement Administration (DEA) -- has softened its stance a bit and permitted two Canadian marijuana growers the ability to import cannabis or cannabinoids for medical research studies.
On Sept. 18, Tilray (NASDAQ: TLRY) announced that it had received approval from the U.S. government to import a cannabinoid formulation containing cannabidiol and tetrahydrocannabinol (the psychoactive component that gets you high) for a clinical trial focused on essential tremor at the University of California, San Diego. Tilray is predominantly focused on providing products to the medical community, so it's expected to be reliant on exports to foreign markets (perhaps even the U.S. on a regular basis) moving forward. Since the U.S. government has just one federally approved grow facility , supply of medical cannabis can constrain research. This move by the DEA to permit the import of cannabinoids could be the first step to removing some of the red tape surrounding medical research.
Then, on Oct. 9, Canopy Growth Corp. (NYSE: CGC) announced that the DEA had permitted it to make what it believed to be the first legal medical cannabis export to an as-of-yet unnamed research partner in the United States. Said Canopy Growth's president, Mark Zekulin, "The United States presents a unique market opportunity and as the most established cannabis business in the world we, in turn, offer a unique ability to advantage standardization, IP development, and clinical research that can improve the understanding and legal application of cannabis and cannabinoids."
Is this just the beginning?
The real question investors should be asking at this point is whether this is a one-time exception to the rule from the DEA, or if we're on the cusp of real change in the United States.
Prior to Tilray and Canopy Growth making history, GW Pharmaceuticals (NASDAQ: GWPH) broke ground of its own , which was alluded to earlier. GW Pharmaceuticals' cannabidiol-based oral solution known as Epidiolex, which dazzled in multiple late-stage clinical trials, became the first cannabis-derived drug to get the OK from the FDA in June. Not only that, but GW found out recently that Epidiolex was classified as a Schedule V drug by the FDA, which is the least-restrictive tier it could be placed in. In theory, this could lead the way to less-restrictive scheduling for other cannabidiol-based products. Cannabidiol is the non-psychoactive component of the cannabis plant best known for its perceived medical benefits.
As noted, 30 states have legalized medical marijuana in some capacity -- and that may increase by two following midterm elections . If nearly two-thirds of the country has passed sweeping medical pot laws, it seems only logical that lawmakers on Capitol Hill would at least consider rescheduling or de-scheduling cannabis for medical purposes.
What's certain, though, is that Canopy Growth and Tilray would eagerly jump into the U.S. market if the federal government changed its tune. In its press release, Canopy alludes to the importance of operating in federally legal markets on a few occasions, but not without mentioning the massive potential size of the U.S. market.
Meanwhile, with Tilray having listed its shares on the Nasdaq in the U.S., and the company looking abroad for expansion opportunities, a legal push into the U.S. would make a lot of sense.
Now we simply wait and see if this was a one-time thing from the DEA or a genuine change in perception.
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*Stock Advisor returns as of August 6, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But over the past five weeks, the federal government -- or should I say, the U.S. Drug Enforcement Administration (DEA) -- has softened its stance a bit and permitted two Canadian marijuana growers the ability to import cannabis or cannabinoids for medical research studies. Then, on Oct. 9, Canopy Growth Corp. (NYSE: CGC) announced that the DEA had permitted it to make what it believed to be the first legal medical cannabis export to an as-of-yet unnamed research partner in the United States. This move by the DEA to permit the import of cannabinoids could be the first step to removing some of the red tape surrounding medical research.
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But over the past five weeks, the federal government -- or should I say, the U.S. Drug Enforcement Administration (DEA) -- has softened its stance a bit and permitted two Canadian marijuana growers the ability to import cannabis or cannabinoids for medical research studies. This move by the DEA to permit the import of cannabinoids could be the first step to removing some of the red tape surrounding medical research. Then, on Oct. 9, Canopy Growth Corp. (NYSE: CGC) announced that the DEA had permitted it to make what it believed to be the first legal medical cannabis export to an as-of-yet unnamed research partner in the United States.
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But over the past five weeks, the federal government -- or should I say, the U.S. Drug Enforcement Administration (DEA) -- has softened its stance a bit and permitted two Canadian marijuana growers the ability to import cannabis or cannabinoids for medical research studies. Then, on Oct. 9, Canopy Growth Corp. (NYSE: CGC) announced that the DEA had permitted it to make what it believed to be the first legal medical cannabis export to an as-of-yet unnamed research partner in the United States. This move by the DEA to permit the import of cannabinoids could be the first step to removing some of the red tape surrounding medical research.
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But over the past five weeks, the federal government -- or should I say, the U.S. Drug Enforcement Administration (DEA) -- has softened its stance a bit and permitted two Canadian marijuana growers the ability to import cannabis or cannabinoids for medical research studies. This move by the DEA to permit the import of cannabinoids could be the first step to removing some of the red tape surrounding medical research. Then, on Oct. 9, Canopy Growth Corp. (NYSE: CGC) announced that the DEA had permitted it to make what it believed to be the first legal medical cannabis export to an as-of-yet unnamed research partner in the United States.
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994ecb1a-a6c7-4ada-8e80-4ad380b23550
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723461.0
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2018-10-14 00:00:00 UTC
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The Worst Mistake Tilray Investors Can Make Right Now
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DEA
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https://www.nasdaq.com/articles/worst-mistake-tilray-investors-can-make-right-now-2018-10-14
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nan
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Let's face it. There are lots of mistakes that you can make with investing. It's a lot easier to do something wrong than to do it right.
Tilray (NASDAQ: TLRY) investors have certainly seen plenty of opportunities to mess up lately, especially with the stock experiencing huge swings both up and down on a frequent basis. But there's one mistake that Tilray investors can make right now that's the worst of all: believing the hype surrounding the stock.
AC/DC was right
AC/DC had it right when they sang, "It's a long way to the top if you wanna rock and roll." It's also a long way to the top if you want the world's premier cannabis business. At least it should be.
When Tilray conducted its initial public offering (IPO) back in July 2018 , the company immediately became the third-largest Canadian marijuana stock in terms of market cap. That's not particularly shocking, considering that Tilray was already a leader in the medical cannabis market in Canada and had a solid presence in international markets.
But by early September, Tilray had leapfrogged over Aurora Cannabis to take the No. 2 spot. And only a few weeks later, it stole the top spot away from Canopy Growth (NYSE: CGC) . Although Canopy briefly regained its mantle as the marijuana stock with the greatest market cap, Tilray is again on top.
Did Tilray open new facilities that gave it a higher production capacity than all of its rivals? Nope. Tilray will probably rank behind three other Canadian marijuana growers in terms of annual capacity through 2020. Did Tilray land a huge deal with a major company outside of the cannabis industry? No again. That honor goes to Canopy.
So what fantastic business advances did Tilray make to climb to the top in such a short time? Hmmm, let's see... Tilray exported CBD oil to the United Kingdom -- to one patient. It received a green light from the U.S. Drug Enforcement Administration (DEA) to ship medical cannabis to the U.S. -- for one clinical study. Tilray exported CBD to Australia -- to three hospitals. All of these were positive developments, but they weren't add-billions-in-market-cap developments.
Neither was arguably the most important news for Tilray over the last several weeks: The company won approval to ship medical cannabis flower to Germany . This achievement made Tilray the first to be able to supply both cannabis flower and oils to the lucrative German market. As nice a feather in its cap as this is for Tilray, though, it wasn't really big enough to cause its market cap to vault to the top of the entire cannabis industry.
Tilray's CEO might be right -- years from now
Then-senator (and later U.S. president) John F. Kennedy won a Pulitzer Prize for his book Profiles in Courage . Tilray CEO Brendan Kennedy might deserve a "profiles in confidence" prize for his statements on CNBC in September . Some might argue the more fitting prize would be for "profiles in cockiness."
Brendan Kennedy told CNBC's Mad Money host Jim Cramer that Tilray's "intent is to build a company that dominates part of this $150 billion industry." He added that he thinks there will be "multiple hundred-billion-dollar companies" in the cannabis industry.
What's more, Kennedy was asked about the possibility of partnering with a major alcoholic beverage maker like Anheuser-Busch InBev (ABI). His response: "We don't want to partner with ABI. We want to build ABI."
It's true that some estimate that roughly $150 billion (or even more) is spent annually on marijuana. However, most of those sales are in the black market for recreational use of marijuana. So far, only two countries have legalized recreational use of marijuana at the federal level -- Uruguay and Canada.
More countries could legalize recreational marijuana, of course. But it could take years, maybe even decades, before there's a legal global marijuana market anywhere close to the $150 billion level mentioned by Brendan Kennedy. Arcview Market Research and BDS Analytics project that the global legal marijuana market will total around $32 billion by 2022. More than $23 billion of that amount will be made in the U.S. -- a market in which Tilray can't currently do significant business.
Kennedy's reference to a $150 billion marijuana market and multiple companies worth $100 billion or more, for now at least, is only hype. He also showed a bit of hubris, too. If Anheuser-Busch InBev approaches Tilray with a partnership deal along the lines of the one Canopy and Constellation Brands have, Kennedy would be crazy to snub the opportunity.
Reality vs. hype
Tilray investors, don't make a huge mistake. Ignore the hype. This stock doesn't deserve to have the top market cap in the cannabis industry. And the industry isn't going to be as big as Tilray's CEO says it will be for many years to come, if ever.
The reality for Tilray is that it is a leader in the global cannabis industry. Canada's recreational marijuana market presents a terrific opportunity for growth. So do international medical marijuana markets, especially in Germany and the U.K. There's a possibility that U.S. federal laws will change in a way that allows Tilray to expand into its southern neighbor.
But while the business prospects for Tilray are indeed very good, the stock has skyrocketed well above the company's realistic growth potential over the next five years (at least). Tilray's share price has soared primarily because of a high short interest and a low stock float . Those conditions won't be in place forever. And Tilray won't enjoy such a lofty valuation forever, either. Don't make the mistake of believing that it will.
10 stocks we like better than Tilray, 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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tilray, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Anheuser-Busch InBev NV. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If Anheuser-Busch InBev approaches Tilray with a partnership deal along the lines of the one Canopy and Constellation Brands have, Kennedy would be crazy to snub the opportunity. Did Tilray land a huge deal with a major company outside of the cannabis industry? It received a green light from the U.S. Drug Enforcement Administration (DEA) to ship medical cannabis to the U.S. -- for one clinical study.
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Did Tilray land a huge deal with a major company outside of the cannabis industry? It received a green light from the U.S. Drug Enforcement Administration (DEA) to ship medical cannabis to the U.S. -- for one clinical study. If Anheuser-Busch InBev approaches Tilray with a partnership deal along the lines of the one Canopy and Constellation Brands have, Kennedy would be crazy to snub the opportunity.
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Did Tilray land a huge deal with a major company outside of the cannabis industry? It received a green light from the U.S. Drug Enforcement Administration (DEA) to ship medical cannabis to the U.S. -- for one clinical study. If Anheuser-Busch InBev approaches Tilray with a partnership deal along the lines of the one Canopy and Constellation Brands have, Kennedy would be crazy to snub the opportunity.
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Did Tilray land a huge deal with a major company outside of the cannabis industry? It received a green light from the U.S. Drug Enforcement Administration (DEA) to ship medical cannabis to the U.S. -- for one clinical study. If Anheuser-Busch InBev approaches Tilray with a partnership deal along the lines of the one Canopy and Constellation Brands have, Kennedy would be crazy to snub the opportunity.
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723462.0
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2018-10-12 00:00:00 UTC
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How to Invest in Marijuana Stocks
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DEA
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https://www.nasdaq.com/articles/how-invest-marijuana-stocks-2018-10-12
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nan
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nan
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Global marijuana markets are, pardon the pun, growing like a weed. Worldwide spending on cannabis reached $9.5 billion in 2017, according to ArcView Market Research and BDS Analytics. The total is projected to increase to $32 billion by 2022, a compound annual growth rate (CAGR) of 27.5%.
With this type of impressive growth, it's no wonder that many investors are interested in investing in publicly traded cannabis stocks . What's the best approach for marijuana investing? There are seven key steps:
Understand the types of marijuana products
Know the different types of marijuana stocks
Understand the risks of investing in marijuana stocks
Know what to look for in a marijuana stock
Evaluate the top marijuana stocks and exchange-traded funds (ETFs)
Invest carefully
Monitor changing industry dynamics closely
Here's all you need to know about this seven-step process for investing in the fast-growing marijuana industry.
1. Understand the types of marijuana products
There are two broad categories of cannabis products: medical marijuana and recreational marijuana. Within these two categories are several specific types of products.
Medical marijuana currently is broadly legal in 30 U.S. states and in several countries across the world, including Canada and Germany. A prescription from an authorized healthcare provider typically is required for patients to obtain medical marijuana. It's frequently prescribed for anxiety, depression, pain, and stress.
Medical marijuana, also referred to as medical cannabis, can be inhaled by smoking either dried flower or vaping concentrates. It can be consumed via edible products that contain marijuana or cannabis-infused beverages. There are even topical creams and lotions containing marijuana or chemical ingredients from cannabis.
One of the most commonly used medical marijuana products is cannabidiol (CBD). CBD is one of many chemicals in the cannabis plant known as cannabinoids. It doesn't have the psychoactive properties of another important cannabinoid, delta-9 tetrahydrocannabinol (THC) , but appears to claim several potential health benefits. In June 2018, the U.S. Food and Drug Administration (FDA) approved the first CBD-based drug , Epidiolex, for treating two rare forms of epilepsy, Dravet syndrome and Lennox-Gastaut syndrome (LGS).
The FDA has has approved three THC-based drugs -- Marinol, Cesamet, and Syndros -- for the treatment of chemotherapy-induced nausea and vomiting. Marinol and Syndros also received approval for treating AIDS-related anorexia. However, all three drugs are manufactured using synthetic THC rather than compounds from marijuana plants.
Recreational marijuana is currently approved for adult use in nine U.S. states and the District of Columbia. Uruguay legalized weed at the national level in 2013. The Canadian parliament voted to legalize recreational marijuana and now, the Canadian marijuana market is scheduled to open in October 2018 .
As you might expect, users of recreational marijuana products tend to prefer the psychoactive attributes of THC. Smoking cannabis flower is the most common method of use in key U.S. states that have legalized recreational marijuana. However, vaping concentrates and consuming cannabis edibles has grown in popularity.
2. Know the different types of marijuana stocks
Just as there are different types of marijuana products, there are also different types of marijuana stocks . The three primary types of pot stocks are:
Marijuana growers -- These companies, which include Canopy Growth and many others, cultivate marijuana (often in indoor facilities and greenhouses), harvest the crops, and distribute the end products to customers.
Cannabis-focused biotechs -- These are biotechs (such as GW Pharmaceuticals ) that focus heavily on developing cannabinoid drugs.
Providers of ancillary products and services -- These companies support marijuana growers by providing products and services such as hydroponics products and lighting systems -- a key area of focus for Scotts Miracle-Gro , packaging solutions, and management services.
3. Understand the risks of investing in marijuana stocks
Investing in any type of asset comes with some degree of risk. However, investing in marijuana stocks has several risks that you should understand.
Legal and political
Probably the most important risk to note is that the sale of marijuana remains illegal at the federal level in the U.S. This means that there's a threat that the U.S. Department of Justice could clamp down at any time on cannabis businesses operating in states that have legalized marijuana for either medical or recreational purposes.
This risk was underscored in January 2018 when U.S. Attorney General Jeff Sessions rescinded Obama administration policies that largely restrained the federal government from intervening in states that had legalized marijuana. These Obama-era policies included the Cole memo, which instructed federal attorneys to defer to state and local authorities in most cases when it came to prosecuting marijuana-related activities.
Since then, President Trump has publicly stated that he would support legislative efforts spearheaded by Sen. Cory Gardner (R.-Colo), whose state allows legal recreational and medical marijuana, to allow states to enforce their own marijuana laws without fear of federal intervention. However, there's no guarantee at this point that this legislation will become law.
In addition, current U.S. federal law places severe restrictions on banks and financial institutions that deal with marijuana-related businesses. As a result, it can be difficult for many U.S. marijuana businesses to raise capital through borrowing, or even have checking accounts.
Supply/demand imbalances
Many pot stocks have sky-high valuations (what the market thinks the company is worth) based on expectations of tremendous growth over the next few years. But there's a clear-and-present danger to achieving those growth expectations: the likelihood of a big supply glut , particularly in Canada.
Most, if not all, of the licensed marijuana growers in Canada have undertaken major expansion initiatives to increase production capacity. While demand should be greater than supply in Canada in the first year or two after recreational marijuana is legalized, the situation won't last indefinitely. A supply glut is almost inevitably on the way in the country.
What would a supply glut mean for marijuana growers? When supply outstrips demand, prices usually fall. Marijuana growers could find their revenue and earnings decrease in this scenario. These decreases would likely result in the stock prices of these companies falling, as well.
The good news is that the global demand for marijuana is expected to increase significantly. Germany's medical marijuana market is a key source of this growth because the country legalized medical cannabis last year and has the largest population in the European Union. Other countries with large populations that have legalized medical cannabis, such as the United Kingdom (which recently approved cannabis for medical use), could also drive higher demand.
The bad news, though, is that it's quite possible that the increase in global cannabis demand won't happen quickly enough to absorb the ramp up in capacity among marijuana growers. That would mean that Canadian pot growers would still face the supply-glut scenario, which would likely cause their stock prices to drop.
Over-the-counter (OTC) stocks
Investors also should be especially aware of the risks associated with buying over-the-counter (OTC) marijuana stocks. Companies that are listed on major stock exchanges, which in the U.S. are the New York Stock Exchange (NYSE) and the Nasdaq, must adhere to rules that require them to file regular financial statements and maintain minimum market caps (the total value of outstanding shares). These reporting requirements help investors better assess the risks of buying the stocks, while the market-cap requirement helps ensure an acceptable level of liquidity -- which refers to how easily the stock can be bought or sold without impacting its price. OTC stocks don't have to meet these requirements.
The problem is that many marijuana stocks are only available through OTC trading rather than through major stock exchanges. It should be noted, however, that several Canadian stocks are only available over the counter in the U.S. but do trade on Canadian stock exchanges that have financial reporting and minimum market-cap requirements.
4. Know what to look for in a marijuana stock
Treat marijuana stocks like any other stock you'd consider buying. Research the management team, examine the company's growth strategy and competitive position, and check out the company's financial status. If the business isn't profitable yet, you'll want to make sure the company's cash position, which includes cash, cash equivalents, and short-term investments, is enough to fund operations well into the future. If it isn't, the company could have to raise additional cash through a stock offering -- those additional shares will make the value of existing shares decline -- or borrowing (higher interest costs could place a financial strain on the business).
There are unique factors for the marijuana industry that you also should look into for certain stocks. For stocks of marijuana growers, find out about their "all in" cost of sales per gram and their cash cost per gram for producing cannabis. The "all in" cost of sales per gram includes costs of producing cannabis, while the cash cost per gram excludes amortization, packaging costs, and inventory adjustments. Companies with lower costs will be in better shape to compete in times when supply exceeds demand.
Because a supply glut is very likely to impact Canada in the not-too-distant future, checking out the international operations of Canadian marijuana growers is also a prudent move. Companies that already have distribution agreements and operations in place in Germany and other high-population countries are likely to experience more growth than those companies that don't.
In addition, research how many warrants and convertible securities have been issued by the company. Warrants give investors an option to buy shares in the future. Convertible securities can be converted in the future into shares of common stock. For example, convertible debentures start off as loans but can later be converted into stock. A high number of warrants or convertible securities could mean that the stock will be diluted in the future, potentially causing the share price to drop. Some Canadian marijuana growers have used these methods of raising cash extensively.
5. Evaluate the top marijuana stocks and ETFs
Now for the fun part: digging into the top marijuana stocks. You might also want to check out marijuana-focused exchanged-traded funds (ETFs) . Below is a list of top marijuana stocks and ETFs to consider. Note that this list isn't comprehensive and only includes marijuana stocks with a market cap of at least $200 million.
*Reflects net assets. All data as of Aug. 6, 2018. Data source: Yahoo! Finance.
I'll highlight one stock (or ETF) from each category that I think warrants special consideration.
Canopy Growth
My view is that there are several good reasons why Canopy Growth is the biggest marijuana grower in terms of market cap. The company has an experienced management team and a huge production capacity, with 10 facilities together claiming more than 2.4 million square feet of growing space. Although Canopy no longer reports its costs per gram, they were very competitive the last time it reported, and the company says that these costs "have been trending lower" as it increases its scale.
Canopy already has recreational marijuana supply agreements lined up with six Canadian provinces and one territory. It's also one of the best-positioned marijuana growers in international markets . In particular, the company has a strong foothold in the German medical marijuana market. Canopy currently has operations in nine countries, including Canada, spanning five continents.
What really separates Canopy Growth from its peers is the company's relationship with major alcoholic beverage maker Constellation Brands . Constellation recently invested $4 billion in Canopy and named the company as its exclusive global cannabis partner.
Canopy Growth isn't profitable yet because it's investing heavily in expansion efforts. The big investment by Constellation gives Canopy a huge cash stockpile to expand even more into new markets.
GW Pharmaceuticals
GW Pharmaceuticals is the first biotech to win FDA approval for a marijuana plant-based drug -- Epidiolex. The company awaits scheduling of the drug by the U.S. Drug Enforcement Administration (DEA) under federally controlled substance regulations. GW expects to launch Epidiolex in the U.S. by early fall.
Market-research firm EvaluatePharma predicts that Epidiolex will become one of the top 10 new drug launches of 2018 . Opinions vary about just how successful the cannabinoid drug will actually be, but I think peak sales in the ballpark of $1 billion are possible.
Most of the company's executives have at least two decades of experience in the pharmaceutical industry. They're familiar with launching new products, including GW's multiple sclerosis drug Sativex, which is approved in more than 25 countries outside the U.S.
GW Pharmaceuticals isn't profitable at this point. However, the company reported cash and cash equivalents totaling more than $440 million as of the end of June 2018. That's enough to fund operations at least through 2020 while Epidiolex sales grow.
Scotts Miracle-Gro
My favorite among the ancillary providers to the marijuana industry is Scotts Miracle-Gro. The company is the leading provider of hydroponics products to cannabis growers. Although the stock has struggled in 2018, I think brighter days are ahead for Scotts as California recreational marijuana picks up momentum and more U.S. states legalize medical and/or recreational marijuana.
Scotts is led by a veteran team including Jim Hagedorn, who has been CEO since 2001. The company is not only profitable, it pays a dividend currently yielding 2.9%. Scotts' debt of nearly $2.3 billion is higher than I'd like. However, the company borrowed primarily to fund its expansion efforts -- a good thing, in my view -- and is committed to reducing its debt.
It's also important to know that Scotts Miracle-Gro isn't just focused on the marijuana market. Over 90% of the company's revenue comes from sales of consumer lawn and garden products. I think there's a solid long-term market in that area for Scotts, as well.
Horizons Marijuana Life Sciences ETF
Between the two marijuana ETFs included on the table, my preference is the Horizons Marijuana Life Sciences ETF . It's the larger of the two ETFs, and all three of my marijuana stock picks are in the top 10 holdings of this ETF and combine to make up nearly 30% of the fund's total assets.
One knock against the Horizons marijuana ETF, however, is that its expense ratio of 0.94% is really high compared to many other index ETFs. It's even higher than the 0.79% expense ratio of the ETFMG Alternative Harvest ETF. Also, because of the risks discussed earlier, I think investors are better off choosing the strongest individual stocks rather than buying a marijuana ETF that also holds weaker stocks.
6. Invest carefully
What exactly does "invest carefully" in marijuana stocks mean? For some investors, the best approach will be to avoid marijuana stocks entirely. These stocks simply aren't a good fit for conservative investors. Only the most aggressive investors who can tolerate high levels of risk should jump in.
Even aggressive investors should only buy a marijuana stock after completing the five previous steps. Marijuana stocks are both risky and highly volatile. Putting too much of your investment portfolio into any marijuana stock or ETF isn't wise.
You might want to consider starting off only with a small position in a marijuana stock. As the cannabis market grows and a company's increasing revenue and earnings confirm your decision to buy the stock, you could then add to your position. If the growth you were counting on doesn't materialize, you should re-evaluate your assumptions.
Also, some marijuana stocks are arguably safer than others. For example, Scotts Miracle-Gro makes most of its revenue outside of the cannabis industry. The company has been selling lawn and garden products for a long time and doesn't face some of the risks associated with cannabis products in that market. Less-aggressive investors might prefer a stock like Scotts to a more pure-play marijuana stock like Canopy Growth.
7. Monitor changing industry dynamics closely
Investors are better off taking a long-term view when buying stocks. That being said, the dynamics in the marijuana industry are rapidly changing. The criteria used in making a buying decision now could be dramatically different just a few months in the future.
Because of this, I recommend that investors monitor any marijuana stocks or ETFs that they buy, along with the overall industry itself, very closely and frequently. Some changes could be beneficial -- for example, potential relaxation of U.S. federal marijuana laws . Other changes, however, could be bad news, such as the possibility that Germany places restrictions on its medical marijuana market.
Tremendous growth should be in store for the global marijuana industry . That growth might not come as evenly as investors would prefer, though. Following these seven steps can help you navigate this exciting and challenging opportunity.
10 stocks we like better than Scotts Miracle-Gro
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Scotts Miracle-Gro wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Keith Speights 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, current U.S. federal law places severe restrictions on banks and financial institutions that deal with marijuana-related businesses. The company awaits scheduling of the drug by the U.S. Drug Enforcement Administration (DEA) under federally controlled substance regulations. This risk was underscored in January 2018 when U.S. Attorney General Jeff Sessions rescinded Obama administration policies that largely restrained the federal government from intervening in states that had legalized marijuana.
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In addition, current U.S. federal law places severe restrictions on banks and financial institutions that deal with marijuana-related businesses. The company awaits scheduling of the drug by the U.S. Drug Enforcement Administration (DEA) under federally controlled substance regulations. There are seven key steps: Understand the types of marijuana products Know the different types of marijuana stocks Understand the risks of investing in marijuana stocks Know what to look for in a marijuana stock Evaluate the top marijuana stocks and exchange-traded funds (ETFs) Invest carefully Monitor changing industry dynamics closely Here's all you need to know about this seven-step process for investing in the fast-growing marijuana industry.
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In addition, current U.S. federal law places severe restrictions on banks and financial institutions that deal with marijuana-related businesses. The company awaits scheduling of the drug by the U.S. Drug Enforcement Administration (DEA) under federally controlled substance regulations. There are seven key steps: Understand the types of marijuana products Know the different types of marijuana stocks Understand the risks of investing in marijuana stocks Know what to look for in a marijuana stock Evaluate the top marijuana stocks and exchange-traded funds (ETFs) Invest carefully Monitor changing industry dynamics closely Here's all you need to know about this seven-step process for investing in the fast-growing marijuana industry.
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In addition, current U.S. federal law places severe restrictions on banks and financial institutions that deal with marijuana-related businesses. The company awaits scheduling of the drug by the U.S. Drug Enforcement Administration (DEA) under federally controlled substance regulations. Understand the types of marijuana products There are two broad categories of cannabis products: medical marijuana and recreational marijuana.
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723463.0
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2018-10-11 00:00:00 UTC
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New Age Beverages Is Already a Marijuana Stock Winner
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DEA
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https://www.nasdaq.com/articles/new-age-beverages-already-marijuana-stock-winner-2018-10-11
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nan
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The two big events that could've shaped the direction of New Age Beverages Corp. (NASDAQ: NBEV) in the near term are now fading in the rearview mirror. The market didn't have a problem with last Thursday's presentation at the 4th Annual B. Riley FBR Consumer & Media Conference, sending the shares 5% higher for the day. Unfortunately for those long the stock, a nearly 30% slide through the four subsequent trading days suggests that the unveiling of its new product line at a big industry trade show didn't go so well.
The four-day North American Convenience Store expo closed on Wednesday, and as promised, New Age Beverages did unveil its new line of ready-to-drink teas, shots, and sparkling water infused with cannabidiol (CBD), a cannabis component. The stock's sharp downturn over the past week isn't pretty, but it doesn't mean that the volatile investment failed. New Age Beverages is already a winner in this speculative age of marijuana stock trading.
Up in smoke
It's been more than three weeks since New Age Beverages announced that it would be unveiling its new CBD products at the North American Convenience Store show. The stock has more than doubled since that press release came out and nearly quadrupled since Northland initiated coverage of the stock a few days earlier, pointing out that the beverage distributor had been testing CBD products in Colorado for months ahead of the trade show debut. In short, starting lines matter.
New Age Beverages has been one of the market's more volatile stocks over the past few weeks, but it's also been one of its biggest winners. The "sell on the news" trader reaction this week isn't a death sentence. It happens, and investors are well served to stretch out the trading activity to get the bigger picture.
It's also important to remember that New Age Beverages already has a wide portfolio of functional and natural drink products outside of the CBD-infused mania that's swirling up Wall Street these days -- and those beverages will benefit from the media attention and consumer interest in the company. New Age Beverages has functional ready-to-drink teas, coffees, coconut sparkling water, and shots that generated $51.2 million in sales over the past year. Don't you think those products will benefit from New Age Beverages' increased visibility with investors and interest with retailers?
The new CBD product line is what has turned New Age Beverages into a household name among cannabis stock traders. The beverage company expects to roll out its new CBD-infused products once the 2018 Farm Bill is enacted, but it's a little more complicated than that. The House and Senate are still negotiating the differences in their bills, including hemp farming components . The bigger hurdle could be the Drug Enforcement Administration (DEA) and the Food and Drug Administration (FDA) that have yet to give CBD their blessing.
Things would naturally be pretty catastrophic for New Age Beverages if it couldn't sell CBD-infused products. Investors have been bidding up the stock in anticipation of this event and the market's thirsty reception. However, this could be a win-win for New Age Beverages.
Finding gold in silver linings
The dream scenario is that the roadblocks are cleared for New Age Beverages and others to get their CBD products on the shelves, but even then, it's not a slam dunk. There will be a glut of new product on the market, and a lot of it will come with companies that have greater financial resources. New Age Beverages believes that it will stand out in this niche with the right dosage and long shelf life of its products, but everyone probably feels that they are the ones with the killer CBD silver bullet. In the end, it will still be incremental to New Age Beverages' sales and possibly in a highly lucrative manner.
The nightmare scenario is that all of this hype comes to nothing and all of the time and energy spent on developing a CBD line gets nixed under legal if not efficacy concerns. It would be bad, but let's not assume that New Age Beverages will be the same as it was before. All of the attention that New Age Beverages is generating from retailers, distribution partners, consumers, and investors is already paying off.
New Age Beverages claims to have a presence in 40 of North America's 50 largest retailers. A good chunk of that shelf space is in the third-party brands that it distributes, but its proprietary lines are also hiding in plain sight. It wouldn't be a surprise if traders or consumers are now more aware of the brands. You are probably more likely to buy Coco Libre coconut water, Xing energy tea drink, or bucha live kombucha fermented tea beverage than before. The next time you see one of its Bob Marley-licensed canned tea or coffee drinks -- and how perfect is it that New Age Beverages was already teamed up with an icon in the cannabis community? -- aren't you more likely to buy it now?
Nearly a billion shares of New Age Beverages have been traded since the beginning of last month. We'll have to wait another quarter or two to see if the elevated exposure is lifting sales of its existing brands higher, but it should be enough to reverse the slight decline in revenue that New Age Beverages was serving up through the first half of this year. Even in the nightmare scenario, the CBD exploration still pays off.
10 stocks we like better than New Age Beverages Corporation
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and New Age Beverages Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Rick Munarriz 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The "sell on the news" trader reaction this week isn't a death sentence. The bigger hurdle could be the Drug Enforcement Administration (DEA) and the Food and Drug Administration (FDA) that have yet to give CBD their blessing. The four-day North American Convenience Store expo closed on Wednesday, and as promised, New Age Beverages did unveil its new line of ready-to-drink teas, shots, and sparkling water infused with cannabidiol (CBD), a cannabis component.
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The "sell on the news" trader reaction this week isn't a death sentence. The bigger hurdle could be the Drug Enforcement Administration (DEA) and the Food and Drug Administration (FDA) that have yet to give CBD their blessing. The four-day North American Convenience Store expo closed on Wednesday, and as promised, New Age Beverages did unveil its new line of ready-to-drink teas, shots, and sparkling water infused with cannabidiol (CBD), a cannabis component.
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The "sell on the news" trader reaction this week isn't a death sentence. The bigger hurdle could be the Drug Enforcement Administration (DEA) and the Food and Drug Administration (FDA) that have yet to give CBD their blessing. New Age Beverages is already a winner in this speculative age of marijuana stock trading.
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The "sell on the news" trader reaction this week isn't a death sentence. The bigger hurdle could be the Drug Enforcement Administration (DEA) and the Food and Drug Administration (FDA) that have yet to give CBD their blessing. Unfortunately for those long the stock, a nearly 30% slide through the four subsequent trading days suggests that the unveiling of its new product line at a big industry trade show didn't go so well.
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2018-10-01 00:00:00 UTC
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2 Marijuana Biotechs to Watch
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https://www.nasdaq.com/articles/2-marijuana-biotechs-watch-2018-10-01
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On Sept. 27, the United States Drug Enforcement Agency (DEA) made official a long-awaited decision on a cannabidiol (CBD)-based drug. GW Pharmaceuticals' (NASDAQ: GWPH ) drug Epidiolex was reclassified from Schedule 1 to Schedule 5.
According to the DEA, Schedule I drugs are highly addictive and have zero medical benefits, such as heroin and cocaine. Clearly marijuana and hemp do not fit this definition; however, because both are still classified as Schedule 1 substances, Epidiolex had to receive the same scheduling when it became the first cannabis-based drug to be approved the Federal Drug Administration (FDA) in June.
GWPH has been waiting for this moment, as sales of Epidiolex could not begin until the DEA changed its classification. While the news was expected, it was still unprecedented, and as a result the company's shares shot up to a new all-time high. They are now up more than 30% this year.
Getting in Position With Marijuana Stocks
Marijuana and hemp remain Schedule 1 drugs, but I am confident we will see a rescheduling at some point in the relatively near future. And in the meantime, I expect to see more cannabis-derived drugs receive FDA and DEA approval.
10 Triple-A Stocks to Buy for the Rest of 2018
There are plenty of companies out there working on cannabis-based treatment plans, but two in particular stand out to me as names worth watching right now.
The first is INSYS Therapeutics (NASDAQ: INSY ), a specialty pharmaceutical company that develops supportive care products. One of its products, SYNDROS, uses a synthetic version of tetrahydrocannabinol, and it has already been approved by the FDA. Tetrahydrocannabinol typically gets users high when it is smoked in the plant form, but in its liquid form it can be used as a treatment for chemotherapy-based nausea and vomiting.
In addition, INSY is also studying the administration of the synthetic version of tetrahydrocannabinol via inhalation, and results so far have been solid. If things go as planned, it could have new drugs in front of the FDA in no time.
I'm also keeping an eye on Zynerba Pharmaceuticals (NASDAQ: ZYNE ), a cannabinoid therapeutics company that focuses on rare neuropsychiatric conditions. One of the many drugs in its pipeline is ZYN002, and it is the only cannabidiol gel currently undergoing FDA trials - it has three Phase II studies underway.
Approval is still a year or two away for ZYNE's pipeline, and the stock will be a wild ride along the way. But over the long term, I believe there is a lot of upside potential here.
The race to be a leader in the marijuana biotech space is on, and these are just a couple of the companies that I think could be the biggest winners in the years ahead.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the "next" generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on.Click here for more information on the "NexGen" Experience .
More From InvestorPlace
10 Stocks to Buy in October
10 Stocks to Sell in October
7 Stocks to Sell as the Fed Hike Hits Stocks
7 Cities That Won't Win the Second Amazon Headquarters
Compare Brokers
The post 2 Marijuana Biotechs to Watch appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Sept. 27, the United States Drug Enforcement Agency (DEA) made official a long-awaited decision on a cannabidiol (CBD)-based drug. According to the DEA, Schedule I drugs are highly addictive and have zero medical benefits, such as heroin and cocaine. GWPH has been waiting for this moment, as sales of Epidiolex could not begin until the DEA changed its classification.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Sept. 27, the United States Drug Enforcement Agency (DEA) made official a long-awaited decision on a cannabidiol (CBD)-based drug. According to the DEA, Schedule I drugs are highly addictive and have zero medical benefits, such as heroin and cocaine. GWPH has been waiting for this moment, as sales of Epidiolex could not begin until the DEA changed its classification.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Sept. 27, the United States Drug Enforcement Agency (DEA) made official a long-awaited decision on a cannabidiol (CBD)-based drug. According to the DEA, Schedule I drugs are highly addictive and have zero medical benefits, such as heroin and cocaine. GWPH has been waiting for this moment, as sales of Epidiolex could not begin until the DEA changed its classification.
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And in the meantime, I expect to see more cannabis-derived drugs receive FDA and DEA approval. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Sept. 27, the United States Drug Enforcement Agency (DEA) made official a long-awaited decision on a cannabidiol (CBD)-based drug. According to the DEA, Schedule I drugs are highly addictive and have zero medical benefits, such as heroin and cocaine.
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2c3ca63d-a8f4-4bfe-8c7b-02433cb7d26e
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723465.0
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2018-09-28 00:00:00 UTC
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Take the Long View on Canopy Growth’s Potential
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DEA
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https://www.nasdaq.com/articles/take-long-view-canopy-growths-potential-2018-09-28
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The marijuana market is smoking. Puns aside, there is quite a bit of money to be made from pot stocks, though picking the right one can be daunting. Recent legalization measures have turned companies like Tilray (NASDAQ: TLRY ) into household names. Amid all the hype, however, my favorite investment remains Canopy Growth Corporation (NYSE: CGC ).
There isn't a lot that hasn't already been said about cannabis stocks, or even CGC stock for that matter. Some analysts love the sector and Canopy Growth , and see significant opportunities for growth. Other, meanwhile, have likened the recent boom to the dotcom bubble .
There is certainly a degree of euphoria in the cannabis market right now. Companies across the board are rushing to invest in pot stocks to get a piece of the estimated $200 billion global market .
As proof of the market's growth potential, even stateside, cannabis stocks had a breakthrough this week. The Drug Enforcement Agency (DEA) announced that it has moved some drugs with cannabidiol (CBD) to schedule V . This means that the U.S. government now believes those products have the lowest potential for abuse.
That opens the door for a number of pharmaceutical companies with cannabinoid products all ready to go. GW Pharmaceuticals' (NASDAQ: GWPH ) Epidiolex treatment for pediatric epilepsy comes to mind. But it also loosens the government's grip on the cannabis market as a whole. The end result is inevitable at this point.
But, not everyone is happy. For instance, Constellation Brands' (NYSE: STZ ) investors panning the stock for the company's $4 billion stake in CGC stock .
4 Medical Marijuana Stocks to Buy as the U.S. Chills Out
But these naysayers are missing the long game by focusing on the short-term cost. A common theme in today's stock-buyback-driven market . Are some pot stocks like Tilray overvalued? Probably. But Canopy stock has had time to digest the Constellation Brands investment. The shares have leveled out and are now beginning to behave more rationally in an irrational market.
Click to Enlarge Technically, CGC stock is up nearly 100% in the past two months. The shares surged following Constellation's investment, hitting a high of $56.60 in early September. Canopy stock has since entered a volatile consolidation pattern, driven by cannabis market speculation.
That said, support appears to be firming up in the $47.50 area, as you can see from the chart. What's more, CGC's 14-day relative strength index has fallen amid this volatility. In other words, the shares are now far from overbought and have plenty of room for additional buying before momentum becomes a concern again.
Outside of the financial headlines, sentiment on Wall Street remains thin on CGC stock. Specifically, Zacks reports that only five analysts currently follow Canopy, doling out four "buys" and one "hold."
The average consensus price target rests at $40.18. With the bullish bandwagon far from full, there is room for both initiations and price-target increases. More development's like the DEA's announcement this week should bring more bulls to the table.
Finally, CGC's options backdrop is also quite cautious. Currently, the October put/call open interest ratio comes in at 0.98. In other words, bearish puts are practically as popular as bullish calls on Canopy stock.
So, there is room for sentiment to grow more bullish (despite the gushing in the financial headlines), and there is room for CGC stock to rally. But just how high can Canopy rise over the short-term?
CGC options traders can provide some insight on that … and the results are just as volatile as you'd expect. At last check, October implied volatility was pricing in a potential move of roughly 40% for Canopy stock! That puts the potential upside near $57.87 and the potential downside at $40.97.
2 Trades for CGC Stock
Call Spread: Not only is the expected move big, but CGC options are expensive right now. As such, traders looking to jump into an options position on Canopy stock will want to proceed with caution .
If you're still with me, then the Oct $50/$55 bull call spread has potential if you can stomach the risk. At last check, this spread was offered at $1.60, or $160 per pair of contracts. Breakeven lies at $51.60, while a maximum profit of $4.31, or $431 per pair of contracts - a potential return of about 100% - is possible if CGC stock closes at or above $55 when October options expire.
Put Sell: For those Canopy stock bulls looking to snap up the stock on a pullback, a put sell position can accomplish that and get you paid while you wait. Given market volatility, the Oct $41 put looks like a good place to start.
At last check, this put was bid at 96 cents, or $96 per contract. If CGC falls below $41 by expiration, you could be assigned 100 shares of Canopy stock for $41 each for every put sold. This is the end goal of this trade - buying CGC at a significant discount. And, remember, you were paid $96 per contract just to wait for the pullback.
On the other hand, if CGC does not trade below $41, you still keep the $96 premium and can try again next month. Repeat as needed to collect income or snap up Canopy at prices we probably won't see for a long time as the cannabis market expands rapidly.
As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.
More From InvestorPlace
10 Stocks to Buy in October
10 Stocks to Sell in October
7 Stocks to Sell as the Fed Hike Hits Stocks
7 Cities That Won't Win the Second Amazon Headquarters
Compare Brokers
The post Take the Long View on Canopy Growth's Potential appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Drug Enforcement Agency (DEA) announced that it has moved some drugs with cannabidiol (CBD) to schedule V . More development's like the DEA's announcement this week should bring more bulls to the table. 4 Medical Marijuana Stocks to Buy as the U.S. Chills Out But these naysayers are missing the long game by focusing on the short-term cost.
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The Drug Enforcement Agency (DEA) announced that it has moved some drugs with cannabidiol (CBD) to schedule V . More development's like the DEA's announcement this week should bring more bulls to the table. Amid all the hype, however, my favorite investment remains Canopy Growth Corporation (NYSE: CGC ).
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The Drug Enforcement Agency (DEA) announced that it has moved some drugs with cannabidiol (CBD) to schedule V . More development's like the DEA's announcement this week should bring more bulls to the table. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The marijuana market is smoking.
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The Drug Enforcement Agency (DEA) announced that it has moved some drugs with cannabidiol (CBD) to schedule V . More development's like the DEA's announcement this week should bring more bulls to the table. As proof of the market's growth potential, even stateside, cannabis stocks had a breakthrough this week.
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2018-09-27 00:00:00 UTC
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Is This the Biggest Threat to GW Pharmaceuticals' Marijuana Drug?
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DEA
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https://www.nasdaq.com/articles/biggest-threat-gw-pharmaceuticals-marijuana-drug-2018-09-27
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After securing Food and Drug Administration (FDA) and Drug Enforcement Agency (DEA) OKs, GW Pharmaceuticals (NASDAQ: GWPH) plans to launch its marijuana-derived epilepsy medication, Epidiolex, in six weeks. There's a huge unmet need for new treatment options for epilepsy patients who fail to respond to anti-epileptic medications, so optimism is high that Epidiolex could be a top seller. The drug's commercial success, however, could depend on whether regulators approve a rival drug from Zogenix (NASDAQ: ZGNX) .
A win for marijuana in epilepsy
For years, marijuana strains that are high in cannabidiol, a chemical cannabinoid found in marijuana and hemp, have been used by patients to control epilepsy, but there weren't any scientifically controlled studies proving CBD's efficacy in epilepsy until GW Pharmaceuticals came along.
To secure an FDA OK for Epidiolex, GW Pharmaceuticals conducted four separate late-stage studies that proved Epidiolex can safely reduce seizures in patients with Dravet syndrome and Lennox-Gastaut syndrome, two rare types of childhood-onset epilepsy that respond poorly to existing treatment options.
In its trials, Epidiolex reduced monthly seizures by between 40% and 50%, which is remarkable because these patients typically suffer dozens of drop seizures every month, despite using existing anti-epileptic medications. For instance, the median Lennox-Gastaut patient in Epidiolex's trials had 71 drop seizures per month at baseline and was taking three anti-epileptic treatments.
The trial data and significant need for new treatment alternatives for these patients resulted in an FDA approval of Epidiolex in June and the DEA awarding Epidiolex with Schedule V classification, its least-restrictive prescribing category.
A looming threat
The approaching launch of Epidiolex is a significant milestone for GW Pharmaceuticals because Epidiolex will be its first commercial-stage product available in the United States. There are an estimated 30,000 patients with Dravet syndrome and Lennox-Gastaut syndrome, and Epidiolex is expected to cost $32,500 annually, so investors are modeling for it to produce hundreds of millions of dollars in sales per year.
Epidiolex's commercial success, however, might depend significantly on what happens with Zogenix's ZX008, a low-dose formulation of fenfluramine.
On July 12, Zogenix reported data from the second of two late-stage trials showing ZX008 reduced convulsive seizures by a median 62.7% in Dravet syndrome patients. The trial also showed a significant proportion of ZX008 patients achieved even larger-percentage reductions in seizures. Specifically, nearly 36% of patients saw their number of seizures fall by 75% or more.
Then results from a phase 2, long-term extension study of ZX008 in Lennox-Gastaut syndrome patients were published in an industry journal in September. In that trial, the median reduction in convulsive seizures was 58%, and 33% of patients saw a 75% or greater reduction in seizures.
Safety could be the difference
It's bad science to compare data from separate trials to determine if one drug is better than another, but it does appear that ZX008 matches up favorably to Epidiolex in these indications.
Zogenix's plan is to file for FDA approval in Dravet syndrome in Q4. If the FDA signs off on it, it could challenge Epidiolex for market share in 2019. A phase 3 study of ZX008 is ongoing, and if results back up phase 2 findings, then an application for approval in that indication will be filed too.
It remains to be seen which of these drugs captures the most share in the market for treatment-resistant seizures, but the winner could depend on safety data.
In Epidiolex's case, there was enough concern about elevated liver enzymes in its studies for the FDA to include a warning about the risk of liver damage in Epidiolex's label. As a result, Epidiolex patients will have to be tested for liver enzyme levels prior to using Epidiolex and then evaluated regularly during treatment to make sure levels don't spike. In its trials, alanine aminotransferase (ALT) and/or aspartate aminotransferase (AST) elevations that were three times the upper limit of normal happened in 13% of Epidiolex patients but in just 1% of placebo patients. Some Epidiolex patients were hospitalized for treatment because of those elevations.
ZX008's safety profile isn't necessarily pristine either, though. Fenfluramine is the "fen" part of the 1990s obesity drug fen-phen, which was shelved following the discovery it could cause cardiac problems in patients.
So far, there haven't been any cardiovascular problems witnessed with ZX008's use, though, and that could suggest Zogenix's low-dose approach found the sweet spot between safety and efficacy. In the Dravet syndrome trial, the "incidence of serious adverse events was similar in both the treatment and placebo groups."
Nevertheless, it wouldn't seem surprising if a potential FDA approval was contingent on cardiac monitoring.
What to watch for next
The Dravet syndrome patient population numbers in the thousands, so the Lennox-Gastaut indication is more commercially important to these companies. Therefore, investors will want to look closely at phase 3 Lennox-Gastaut data when it becomes available from Zogenix. If the percentage reductions don't decline meaningfully from phase 2 and safety remains solid, then it could present the biggest challenge to GW Pharmaceuticals' future sales in these indications.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After securing Food and Drug Administration (FDA) and Drug Enforcement Agency (DEA) OKs, GW Pharmaceuticals (NASDAQ: GWPH) plans to launch its marijuana-derived epilepsy medication, Epidiolex, in six weeks. The trial data and significant need for new treatment alternatives for these patients resulted in an FDA approval of Epidiolex in June and the DEA awarding Epidiolex with Schedule V classification, its least-restrictive prescribing category. There's a huge unmet need for new treatment options for epilepsy patients who fail to respond to anti-epileptic medications, so optimism is high that Epidiolex could be a top seller.
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After securing Food and Drug Administration (FDA) and Drug Enforcement Agency (DEA) OKs, GW Pharmaceuticals (NASDAQ: GWPH) plans to launch its marijuana-derived epilepsy medication, Epidiolex, in six weeks. The trial data and significant need for new treatment alternatives for these patients resulted in an FDA approval of Epidiolex in June and the DEA awarding Epidiolex with Schedule V classification, its least-restrictive prescribing category. To secure an FDA OK for Epidiolex, GW Pharmaceuticals conducted four separate late-stage studies that proved Epidiolex can safely reduce seizures in patients with Dravet syndrome and Lennox-Gastaut syndrome, two rare types of childhood-onset epilepsy that respond poorly to existing treatment options.
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The trial data and significant need for new treatment alternatives for these patients resulted in an FDA approval of Epidiolex in June and the DEA awarding Epidiolex with Schedule V classification, its least-restrictive prescribing category. After securing Food and Drug Administration (FDA) and Drug Enforcement Agency (DEA) OKs, GW Pharmaceuticals (NASDAQ: GWPH) plans to launch its marijuana-derived epilepsy medication, Epidiolex, in six weeks. To secure an FDA OK for Epidiolex, GW Pharmaceuticals conducted four separate late-stage studies that proved Epidiolex can safely reduce seizures in patients with Dravet syndrome and Lennox-Gastaut syndrome, two rare types of childhood-onset epilepsy that respond poorly to existing treatment options.
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After securing Food and Drug Administration (FDA) and Drug Enforcement Agency (DEA) OKs, GW Pharmaceuticals (NASDAQ: GWPH) plans to launch its marijuana-derived epilepsy medication, Epidiolex, in six weeks. The trial data and significant need for new treatment alternatives for these patients resulted in an FDA approval of Epidiolex in June and the DEA awarding Epidiolex with Schedule V classification, its least-restrictive prescribing category. To secure an FDA OK for Epidiolex, GW Pharmaceuticals conducted four separate late-stage studies that proved Epidiolex can safely reduce seizures in patients with Dravet syndrome and Lennox-Gastaut syndrome, two rare types of childhood-onset epilepsy that respond poorly to existing treatment options.
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2018-09-27 00:00:00 UTC
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Marijuana Stock GW Pharmaceuticals Nabs DEA Schedule V
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DEA
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https://www.nasdaq.com/articles/marijuana-stock-gw-pharmaceuticals-nabs-dea-schedule-v-2018-09-27
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The Drug Enforcement Agency (DEA) has awardedGW Pharmaceuticals ' (NASDAQ: GWPH) epilepsy drug, Epidiolex, Schedule V status, its least restrictive classification. The decision clears the way for GW Pharmaceuticals to begin offering the only CBD oil that's cleared by the DEA for use nationwide, and it puts the company on a path to disrupt how doctors treat patients who fail to respond to existing anti-epilepsy medications.
A DEA first
Marijuana has been a DEA Schedule I controlled substance since Congress passed the Controlled Substance Act in 1970, and the DEA's Epidiolex decision doesn't change that. It does, however, mark the first time the DEA has recognized that marijuana's chemical cannabinoid, cannabidiol (CBD), offers health benefits.
The most common nonpsychoactive cannabinoid found in cannabis sativa plants, CBD oil has been used by patients in states that allow it for years because of anecdotal evidence of its ability to reduce seizures. However, it wasn't until today that a CBD oil derived from marijuana has been acknowledged by both the DEA and the Food and Drug Administration (FDA) to benefit epilepsy patients.
The DEA's scheduling decision on Epidiolex is based on scientifically controlled studies conducted by GW Pharmaceuticals demonstrating that Epidiolex can reduce monthly seizures in patients diagnosed with Dravet syndrome and Lennox-Gastaut syndrome, two tough-to-treat forms of childhood-onset epilepsy, by about 40% .
Why scheduling matters
After reviewing GW Pharmaceuticals' clinical trial data, the FDA approved the use of Epidiolex in Dravet syndrome and Lennox-Gastaut syndrome patients in June , but because it's a marijuana-derived medicine, GW Pharmaceuticals couldn't begin selling it to patients until the DEA weighed in with a scheduling decision.
The DEA can choose to schedule drugs in five categories. The most restrictive classification, Schedule I, includes drugs with no "currently accepted medical use in the United States, a lack of accepted safety for use under medical supervision, and a high potential for abuse." Marijuana remains scheduled in this category alongside heroin, LSD, and ecstasy.
Schedule II through Schedule V drugs have an accepted medical use. However, obstacles to prescribing and refilling prescriptions for drugs in these categories get progressively smaller, with Schedule V being the least restrictive scheduling category.
The FDA's Epidiolex approval sparked debate over which category it would wind up in.
Marinol, a medication long used to reduce chemotherapy-induced vomiting and nausea and to restore appetite in patients with HIV, is a Schedule III drug, while a more recently approved liquid formulation of marinol, Insys Therapeutics ' (NASDAQ: INSY) Syndros, is a Schedule II drug .
The worst-case scenario for Epidiolex would have been Schedule II, because that classification requires written, not faxed, prescriptions by doctors, and it prohibits refills without a new separate prescription. Most believed Epidiolex would wind up in Schedule III or IV. Schedule III and IV allow for oral, written, or faxed prescriptions and up to five refills within six months from the original prescription date.
Instead, Epidiolex has nabbed Schedule V, the least-restrictive classification, which means that there aren't any barriers to prescribing it and refilling it beyond doctor's orders. This places Epidiolex in the same category as cough medicines containing codeine like Robitussin AC.
What to watch now for this medical marijuana stock
The schedule V classification only applies to Epidiolex, not to other CBD oils or products like those made by Tilray (NASDAQ: TLRY) . Therefore, Epidiolex is the only CBD formulation that's available nationwide by prescription.
GW Pharmaceuticals plans to launch Epidiolex in the next few weeks, and there's good reason to think that demand for it will be significant within its approved indications. Most Dravet syndrome and Lennox-Gastaut syndrome patients fail to respond to other medications, and as a result, they suffer significantly and are in need of new treatment options like Epidiolex.
Initially, Epidiolex's list price at launch is expected to be $32,500. However, insurers are likely to bear most of that burden. There are only about 30,000 patients in the U.S. with these two types of epilepsy, so the addressable market is relatively small. Nevertheless, depending on the size of the rebates on it that insurers negotiate from GW Pharmaceuticals, it appears Epidiolex has a good shot at generating hundreds of millions of dollars in annual sales.
Over time, Epidiolex's revenue could be higher than that, though, if doctors prescribe it off label for patients with hard-to-treat seizures outside of Dravet syndrome and Lennox-Gastaut syndrome. Roughly one-third of the 2.2 million patients with epilepsy are inadequately controlled by existing medications.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Drug Enforcement Agency (DEA) has awardedGW Pharmaceuticals ' (NASDAQ: GWPH) epilepsy drug, Epidiolex, Schedule V status, its least restrictive classification. The decision clears the way for GW Pharmaceuticals to begin offering the only CBD oil that's cleared by the DEA for use nationwide, and it puts the company on a path to disrupt how doctors treat patients who fail to respond to existing anti-epilepsy medications. A DEA first Marijuana has been a DEA Schedule I controlled substance since Congress passed the Controlled Substance Act in 1970, and the DEA's Epidiolex decision doesn't change that.
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The decision clears the way for GW Pharmaceuticals to begin offering the only CBD oil that's cleared by the DEA for use nationwide, and it puts the company on a path to disrupt how doctors treat patients who fail to respond to existing anti-epilepsy medications. The DEA's scheduling decision on Epidiolex is based on scientifically controlled studies conducted by GW Pharmaceuticals demonstrating that Epidiolex can reduce monthly seizures in patients diagnosed with Dravet syndrome and Lennox-Gastaut syndrome, two tough-to-treat forms of childhood-onset epilepsy, by about 40% . The Drug Enforcement Agency (DEA) has awardedGW Pharmaceuticals ' (NASDAQ: GWPH) epilepsy drug, Epidiolex, Schedule V status, its least restrictive classification.
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The DEA's scheduling decision on Epidiolex is based on scientifically controlled studies conducted by GW Pharmaceuticals demonstrating that Epidiolex can reduce monthly seizures in patients diagnosed with Dravet syndrome and Lennox-Gastaut syndrome, two tough-to-treat forms of childhood-onset epilepsy, by about 40% . Why scheduling matters After reviewing GW Pharmaceuticals' clinical trial data, the FDA approved the use of Epidiolex in Dravet syndrome and Lennox-Gastaut syndrome patients in June , but because it's a marijuana-derived medicine, GW Pharmaceuticals couldn't begin selling it to patients until the DEA weighed in with a scheduling decision. The Drug Enforcement Agency (DEA) has awardedGW Pharmaceuticals ' (NASDAQ: GWPH) epilepsy drug, Epidiolex, Schedule V status, its least restrictive classification.
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Why scheduling matters After reviewing GW Pharmaceuticals' clinical trial data, the FDA approved the use of Epidiolex in Dravet syndrome and Lennox-Gastaut syndrome patients in June , but because it's a marijuana-derived medicine, GW Pharmaceuticals couldn't begin selling it to patients until the DEA weighed in with a scheduling decision. The DEA can choose to schedule drugs in five categories. The Drug Enforcement Agency (DEA) has awardedGW Pharmaceuticals ' (NASDAQ: GWPH) epilepsy drug, Epidiolex, Schedule V status, its least restrictive classification.
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2018-09-20 00:00:00 UTC
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Why GW Pharmaceuticals Stock Is Jumping Again Today
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DEA
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https://www.nasdaq.com/articles/why-gw-pharmaceuticals-stock-jumping-again-today-2018-09-20
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What happened
Shares of GW Pharmaceuticals (NASDAQ: GWPH) were up 10% as of 2:50 p.m. EDT Thursday after rising as much as 13.6% earlier in the day. The biotech continued to enjoy momentum that started yesterday spurred by Morgan Stanley analyst David Lebowitz's report that the U.S. Drug Enforcement Administration (DEA) plans to reclassify GW's cannabidiol (CBD) drug Epidiolex as a Schedule IV controlled substance.
So what
GW Pharmaceuticals won U.S. Food and Drug Administration (FDA) approval in June for Epidiolex as a treatment for Dravet syndrome and Lennox-Gastaut syndrome (LGS), both of which are rare forms of epilepsy. However, that was only the first regulatory hurdle for the drug. Because Epidiolex is a cannabinoid, it also must be classified by the DEA under one of five schedules for controlled substances.
Currently, all marijuana-related products are grouped into the Schedule I classification by default. Drugs in this schedule are illegal at the federal level, with the U.S. government declaring them to have "no currently accepted medical use and a high potential for abuse." Obviously, since GW Pharmaceuticals secured FDA approval for Epidiolex after achieving success in several late-stage clinical studies, the drug clearly has an "accepted medical use." It was clear that the drug would be reclassified into another schedule, but which one it would be assigned to was up in the air.
GW Pharmaceuticals CEO Justin Gover predicted even before the FDA approval for Epidiolex that the drug would receive no worse than a Schedule IV classification. Schedule IV drugs are defined by the DEA as having "a low potential for abuse and low risk of dependence." Based on the Morgan Stanley report, that's the category it appears that Epidiolex will indeed receive. This is good news for GW because it means that there won't be stringent limitations placed on distributing the product.
Now what
The DEA still has yet to announce its scheduling decision for Epidiolex. However, there's no reason to doubt the Morgan Stanley report that the agency will classify Epidiolex as a Schedule IV drug.
What's even more important for GW Pharmaceuticals now is how well the commercial launch for Epidiolex goes. Some believe that the drug won't gain a lot of traction while others think Epidiolex could become a blockbuster over the next few years. Which view proves to be more accurate will determine whether or not GW Pharmaceuticals stock keeps its momentum going.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The biotech continued to enjoy momentum that started yesterday spurred by Morgan Stanley analyst David Lebowitz's report that the U.S. Drug Enforcement Administration (DEA) plans to reclassify GW's cannabidiol (CBD) drug Epidiolex as a Schedule IV controlled substance. Because Epidiolex is a cannabinoid, it also must be classified by the DEA under one of five schedules for controlled substances. Schedule IV drugs are defined by the DEA as having "a low potential for abuse and low risk of dependence."
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The biotech continued to enjoy momentum that started yesterday spurred by Morgan Stanley analyst David Lebowitz's report that the U.S. Drug Enforcement Administration (DEA) plans to reclassify GW's cannabidiol (CBD) drug Epidiolex as a Schedule IV controlled substance. Because Epidiolex is a cannabinoid, it also must be classified by the DEA under one of five schedules for controlled substances. Schedule IV drugs are defined by the DEA as having "a low potential for abuse and low risk of dependence."
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The biotech continued to enjoy momentum that started yesterday spurred by Morgan Stanley analyst David Lebowitz's report that the U.S. Drug Enforcement Administration (DEA) plans to reclassify GW's cannabidiol (CBD) drug Epidiolex as a Schedule IV controlled substance. Because Epidiolex is a cannabinoid, it also must be classified by the DEA under one of five schedules for controlled substances. Schedule IV drugs are defined by the DEA as having "a low potential for abuse and low risk of dependence."
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The biotech continued to enjoy momentum that started yesterday spurred by Morgan Stanley analyst David Lebowitz's report that the U.S. Drug Enforcement Administration (DEA) plans to reclassify GW's cannabidiol (CBD) drug Epidiolex as a Schedule IV controlled substance. Because Epidiolex is a cannabinoid, it also must be classified by the DEA under one of five schedules for controlled substances. Schedule IV drugs are defined by the DEA as having "a low potential for abuse and low risk of dependence."
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723469.0
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2018-09-19 00:00:00 UTC
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GWPH Stock Surges on Reclassification of Epidiolex
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DEA
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https://www.nasdaq.com/articles/gwph-stock-surges-reclassification-epidiolex-2018-09-19
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
GW Pharmaceuticals (NASDAQ: GWPH ) shares were surging on Wednesday as the U.S. Drug and Enforcement Administration (DEA) has plans to reclassify one of its medications.
The company's shares were on the rise , while trading volume was also soaring by more than four times the company's daily average following a report from Morgan Stanley's David Lebowitz. The report claimed that the agency has plans to reclassify the company's Epidiolex (cannabidiol), which will now be allowed for medicinal use.
The medication was approved by the FDA about two months ago to help treat multiple severe forms of epilepsy. However, due to the fact that it is a medication that comes from marijuana, it is currently considered to be a Schedule I substance along with the likes of heroin and cocaine.
The new classification will make the substance more widely accepted and less criminal than the aforementioned substances. The move is slated to take place over the next few days as Epidiolex from GW Pharmaceuticals will soon be placed as Schedule IV, along with the likes of Xanax, Ambien and Tramadol.
The decision comes as the medicinal uses of cannabis have become more widely accepted by the country as it sometimes offers a safer alternative to pharmaceuticals.
GWPH stock was up about 2.7% during regular trading hours on Thursday.
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The post GWPH Stock Surges on Reclassification of Epidiolex appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips GW Pharmaceuticals (NASDAQ: GWPH ) shares were surging on Wednesday as the U.S. Drug and Enforcement Administration (DEA) has plans to reclassify one of its medications. The report claimed that the agency has plans to reclassify the company's Epidiolex (cannabidiol), which will now be allowed for medicinal use. The medication was approved by the FDA about two months ago to help treat multiple severe forms of epilepsy.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips GW Pharmaceuticals (NASDAQ: GWPH ) shares were surging on Wednesday as the U.S. Drug and Enforcement Administration (DEA) has plans to reclassify one of its medications. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips GW Pharmaceuticals (NASDAQ: GWPH ) shares were surging on Wednesday as the U.S. Drug and Enforcement Administration (DEA) has plans to reclassify one of its medications. More From InvestorPlace 7 Blue-Chip Stocks to Sell Now 10 Oil Stocks That Are Worth a Second Look Trump Supreme Court Creates Legal Sports Betting Investment Bonanza 5 Hot Stocks to Buy for the Longest Bull Run Ever Compare Brokers The post GWPH Stock Surges on Reclassification of Epidiolex 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.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips GW Pharmaceuticals (NASDAQ: GWPH ) shares were surging on Wednesday as the U.S. Drug and Enforcement Administration (DEA) has plans to reclassify one of its medications. However, due to the fact that it is a medication that comes from marijuana, it is currently considered to be a Schedule I substance along with the likes of heroin and cocaine. The new classification will make the substance more widely accepted and less criminal than the aforementioned substances.
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c0a74f15-f548-46ff-b395-3b811fe87bb4
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723470.0
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2018-09-18 00:00:00 UTC
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Why Tilray, Inc. Vaulted Higher Again Today
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DEA
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https://www.nasdaq.com/articles/why-tilray-inc-vaulted-higher-again-today-2018-09-18
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nan
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nan
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What happened
Shares of Tilray, Inc. (NASDAQ: TLRY) were 23.1% higher as of 11:15 a.m. EDT on Tuesday. The Canadian marijuana grower announced earlier in the day that it had received approval from the U.S. government to provide a cannabinoid drug to the University of California San Diego Center for Medicinal Cannabis Research to use in a clinical trial.
The University of California San Diego plans to evaluate a cannabinoid capsule containing two ingredients from marijuana -- cannabidiol (CBD) and tetrahydrocannabinol (THC) -- in a clinical study targeting the treatment of essential tremor, a nervous disorder that causes involuntary rhythmic shaking. Tilray and the International Essential Tremor Foundation are funding the study, which is expected to begin in early 2019.
So what
This isn't a big deal for Tilray from a financial standpoint. Supplying medical cannabis in limited quantities for one clinical trial that the company itself is helping support financially won't add anything to Tilray's bottom line. However, the news is important symbolically.
For one thing, the U.S. Drug Enforcement Administration (DEA) is quite picky about how cannabis is used in the country for medical research. Winning the DEA's approval is an achievement that Tilray's rivals can't claim.
The clinical study also points to the potential for medical cannabis in treating more conditions. If the study is successful, it could open additional opportunities for Tilray in developing cannabinoid drugs.
Tilray's green light from the DEA also quietly underscored the hope that the U.S. could change federal marijuana laws in the way that allowed Canadian marijuana growers to expand into the U.S. market. Legislative efforts are currently underway to revise U.S. marijuana laws, with President Trump expressing support for these efforts earlier this year.
This marked the second consecutive day of double-digit percentage gains for Tilray. Yesterday, the stock soared on reports that Coca-Cola was in talks with Aurora Cannabis about a potential deal. The report spurred investors' anticipation that Tilray could be next to land a partnership with a major partner outside the cannabis industry.
Now what
Tilray appears to be in a strange zone where even a relatively minor positive story serves as a huge catalyst for the stock. However, that could also set up the stock to fall hard on any negative news.
For investors rooting for Tilray's success, there could be reasons to cheer in the near future. Tilray is likely among the top candidates for major beverage companies, and possibly tobacco companies, looking for a cannabis partner. The excitement over the opening of the recreational marijuana market in Canada could cause Tilray's shares to rise even more.
On the other hand, Tilray's valuation is now beyond defending even using the most optimistic near-term growth prospects. Tilray stock just might be a bubble waiting to pop.
10 stocks we like better than Tilray, Inc.
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*Stock Advisor returns as of August 6, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So what This isn't a big deal for Tilray from a financial standpoint. For one thing, the U.S. Drug Enforcement Administration (DEA) is quite picky about how cannabis is used in the country for medical research. Winning the DEA's approval is an achievement that Tilray's rivals can't claim.
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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. So what This isn't a big deal for Tilray from a financial standpoint. For one thing, the U.S. Drug Enforcement Administration (DEA) is quite picky about how cannabis is used in the country for medical research.
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So what This isn't a big deal for Tilray from a financial standpoint. For one thing, the U.S. Drug Enforcement Administration (DEA) is quite picky about how cannabis is used in the country for medical research. Winning the DEA's approval is an achievement that Tilray's rivals can't claim.
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So what This isn't a big deal for Tilray from a financial standpoint. For one thing, the U.S. Drug Enforcement Administration (DEA) is quite picky about how cannabis is used in the country for medical research. Winning the DEA's approval is an achievement that Tilray's rivals can't claim.
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b63b50c7-ae02-4f39-a2fb-503348651cfd
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723471.0
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2018-09-18 00:00:00 UTC
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Is Now a Good Time to Buy Tilray Inc.?
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DEA
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https://www.nasdaq.com/articles/now-good-time-buy-tilray-inc-2018-09-18
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nan
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nan
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Momentum is building for marijuana stocks ahead of the opening of Canada's recreational cannabis market in October, and Tilray Inc. (NASDAQ: TLRY) is among the industry's biggest recent winners. Tilray's shares have almost doubled this month because of growing optimism that it will be the next marijuana stock to strike a deal with a major consumer products company. Can this stock continue to climb?
Tilray's business
Tilray has four facilities with a combined 912,000 square feet of space that can be used to grow cannabis, extract chemical cannabinoids found in marijuana, and package cannabinoids for sale as medicine and as consumer products.
Unlike some marijuana growers, Tilray is less interested in profiting from pot itself and far more interested in making its name selling nutraceuticals (foods with medical benefits) to help patients with unmet medical needs.
It's trying to prove the value of marijuana as medicine (and drive demand for its marijuana products, including edibles). Tilray is studying cannabinoids' effectiveness in patients with severe epilepsy in Canada, and it's evaluating cannabinoids as a treatment for chemotherapy-induced nausea and vomiting in Australia.
It also supplies cannabis to pharmaceutical distributors in 12 countries, and it's working with Novartis ' (NYSE: NVS) generic drug arm, Sandoz Canada, to create medicinal marijuana products that can be sold in pharmacies and used in hospitals.
Why Tilray's shares are skyrocketing
Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario.
The Ontario distribution deal expands the reach of its consumer products beyond Quebec and Manitoba, where Tilray previously announced distribution agreements, and the institutional ownership helps validate marijuana's market potential.
Investor optimism has accelerated even more in September after the company reported that sales surged 95% year over year to $9.7 million in the second quarter and rumors began that beverage companies were approaching marijuana producers following Constellation Brands ' (NYSE: STZ) investment in Canopy Growth.
Tilray's annualized sales of $38.8 million exiting the second quarter is a big improvement over its sales of $20.5 million in 2017 and $12.6 million in 2016. And the potential to cozy up to a deep-pocketed partner could add billions of dollars in sales, plus crucial marketing and distribution experience. A deal with a partner hasn't been announced, but Bloomberg's report on Sept. 17 that Coca-Cola (NYSE: KO) is discussing a deal with Tilray competitor Aurora Cannabis (NASDAQOTH: ACBFF) further fueled investor hopes that companies are also knocking on Tilray's door.
Furthermore, Tilray shares got a boost yesterday when the U.S. Drug Enforcement Agency (DEA) cleared it to export capsules containing the cannabinoids THC and cannabidiol to the University of California San Diego Center for Medicinal Cannabis Research (CMCR) for use in a study of patients with essential tremor, a movement disorder common in people over age 65.
TLRY data by YCharts.
Is it a buy?
Tilray is in a very good position to capture sales when Canada's recreational market opens. That's great news, because Deloitte estimates Canada's adult recreational market could exceed 1.8 billion in Canadian dollars ($1.38 billion) in 2019.
It's also in a good position to benefit from the global rise in medical marijuana. Its existing pharmaceutical distribution network could help it in important markets, such as Germany, where medical marijuana was approved last year. Tilray's partnership with Noweda, one of Germany's biggest pharmaceutical distributors, might allow it to win a meaningful share of Germany's medical marijuana market. And since Germany's market is much bigger than Canada's, Germany could contribute meaningfully to Tilray's revenue in the future.
Overall, the global marijuana business, including the black market, is worth $150 billion, according to the United Nations. That alone makes Tilray an intriguing stock. But there are reasons to approach the company's shares cautiously.
Because of its skyrocketing share price, its $10.2 billion market cap is 263 times greater than its annualized second-quarter revenue. Also, 93% of Tilray's voting power is held by Privateer Holdings, the venture fund that created Tilray, and a lockup period that prohibits insiders from selling Tilray shares expires in January 2019. If insiders sell a lot of shares once the lockup expires, then it could pressure shares lower. It's also possible that Privateer Holdings' goals won't always align with those of individual investors.
Nevertheless, I think that if shares drop due to the lockup expiration or because of worries over valuation, then aggressive investors should consider buying some shares. The worldwide marijuana market opportunity is massive, which could eventually resolve any concerns over its valuation.
10 stocks we like better than Tilray, Inc.
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tilray, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, Tilray shares got a boost yesterday when the U.S. Drug Enforcement Agency (DEA) cleared it to export capsules containing the cannabinoids THC and cannabidiol to the University of California San Diego Center for Medicinal Cannabis Research (CMCR) for use in a study of patients with essential tremor, a movement disorder common in people over age 65. Tilray's shares have almost doubled this month because of growing optimism that it will be the next marijuana stock to strike a deal with a major consumer products company. Why Tilray's shares are skyrocketing Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario.
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Why Tilray's shares are skyrocketing Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario. Tilray's shares have almost doubled this month because of growing optimism that it will be the next marijuana stock to strike a deal with a major consumer products company. The Ontario distribution deal expands the reach of its consumer products beyond Quebec and Manitoba, where Tilray previously announced distribution agreements, and the institutional ownership helps validate marijuana's market potential.
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Why Tilray's shares are skyrocketing Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario. Tilray's shares have almost doubled this month because of growing optimism that it will be the next marijuana stock to strike a deal with a major consumer products company. The Ontario distribution deal expands the reach of its consumer products beyond Quebec and Manitoba, where Tilray previously announced distribution agreements, and the institutional ownership helps validate marijuana's market potential.
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Tilray's shares have almost doubled this month because of growing optimism that it will be the next marijuana stock to strike a deal with a major consumer products company. Why Tilray's shares are skyrocketing Tilray began trading on the Nasdaq exchange in July, but its share price really began to take off in mid-August when CEO Brendan Kennedy said that top institutional investors were among those participating in its IPO, and the company announced a deal to supply marijuana products, including Marley Naturals (the official brand of legendary musician Bob Marley), to recreational marijuana customers in Ontario. The Ontario distribution deal expands the reach of its consumer products beyond Quebec and Manitoba, where Tilray previously announced distribution agreements, and the institutional ownership helps validate marijuana's market potential.
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832a6809-1e57-4941-a240-4f4cd1addd3f
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723472.0
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2018-09-11 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Ex-Dividend Date Scheduled for September 12, 2018
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-ex-dividend-date-scheduled-september-12-2018-2018
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nan
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nan
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Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on September 12, 2018. A cash dividend payment of $0.26 per share is scheduled to be paid on September 27, 2018. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that DEA has paid the same dividend. At the current stock price of $19.95, the dividend yield is 5.21%.
The previous trading day's last sale of DEA was $19.95, representing a -10.62% decrease from the 52 week high of $22.32 and a 6.51% increase over the 52 week low of $18.73.
DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). DEA's current earnings per share, an indicator of a company's profitability, is $.1. Zacks Investment Research reports DEA's forecasted earnings growth in 2018 as -6.88%, compared to an industry average of 1.2%.
For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DEA through an Exchange Traded Fund [ETF]?
The following ETF(s) have DEA as a top-10 holding:
SPDR SSGA US Small Cap Low Volatility Index ETF ( SMLV ).
The top-performing ETF of this group is SMLV with an increase of 9.04% over the last 100 days. It also has the highest percent weighting of DEA at 0.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). Zacks Investment Research reports DEA's forecasted earnings growth in 2018 as -6.88%, compared to an industry average of 1.2%. For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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DEA's current earnings per share, an indicator of a company's profitability, is $.1. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on September 12, 2018.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DEA Dividend History page. The following ETF(s) have DEA as a top-10 holding: SPDR SSGA US Small Cap Low Volatility Index ETF ( SMLV ).
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DEA's current earnings per share, an indicator of a company's profitability, is $.1. The following ETF(s) have DEA as a top-10 holding: SPDR SSGA US Small Cap Low Volatility Index ETF ( SMLV ). Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on September 12, 2018.
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9c5bd4a9-c276-456b-b8f9-248aae2d0d30
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723473.0
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2018-09-10 00:00:00 UTC
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Ex-Dividend Reminder: Ross Stores, MDU Resources Group and Easterly Government Properties
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder-ross-stores-mdu-resources-group-and-easterly-government-properties
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 9/12/18, Ross Stores, Inc. (Symbol: ROST), MDU Resources Group Inc (Symbol: MDU), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Ross Stores, Inc. will pay its quarterly dividend of $0.225 on 9/28/18, MDU Resources Group Inc will pay its quarterly dividend of $0.1975 on 10/1/18, and Easterly Government Properties Inc will pay its quarterly dividend of $0.26 on 9/27/18. As a percentage of ROST's recent stock price of $97.26, this dividend works out to approximately 0.23%, so look for shares of Ross Stores, Inc. to trade 0.23% lower - all else being equal - when ROST shares open for trading on 9/12/18. Similarly, investors should look for MDU to open 0.71% lower in price and for DEA to open 1.30% lower, all else being equal.
Below are dividend history charts for ROST, MDU, and DEA, showing historical dividends prior to the most recent ones declared.
Ross Stores, Inc. (Symbol: ROST) :
MDU Resources Group Inc (Symbol: MDU) :
Easterly Government Properties Inc (Symbol: DEA) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.93% for Ross Stores, Inc., 2.85% for MDU Resources Group Inc, and 5.21% for Easterly Government Properties Inc.
In Monday trading, Ross Stores, Inc. shares are currently up about 0.7%, MDU Resources Group Inc shares are trading flat, and Easterly Government Properties Inc shares are up about 0.6% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/12/18, Ross Stores, Inc. (Symbol: ROST), MDU Resources Group Inc (Symbol: MDU), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for MDU to open 0.71% lower in price and for DEA to open 1.30% lower, all else being equal. Below are dividend history charts for ROST, MDU, and DEA, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/12/18, Ross Stores, Inc. (Symbol: ROST), MDU Resources Group Inc (Symbol: MDU), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Ross Stores, Inc. (Symbol: ROST) : MDU Resources Group Inc (Symbol: MDU) : Easterly Government Properties Inc (Symbol: DEA) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for MDU to open 0.71% lower in price and for DEA to open 1.30% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/12/18, Ross Stores, Inc. (Symbol: ROST), MDU Resources Group Inc (Symbol: MDU), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Ross Stores, Inc. (Symbol: ROST) : MDU Resources Group Inc (Symbol: MDU) : Easterly Government Properties Inc (Symbol: DEA) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for MDU to open 0.71% lower in price and for DEA to open 1.30% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 9/12/18, Ross Stores, Inc. (Symbol: ROST), MDU Resources Group Inc (Symbol: MDU), and Easterly Government Properties Inc (Symbol: DEA) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for MDU to open 0.71% lower in price and for DEA to open 1.30% lower, all else being equal. Below are dividend history charts for ROST, MDU, and DEA, showing historical dividends prior to the most recent ones declared.
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0b4ed2f9-4e8e-41be-b443-c77e143937db
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723474.0
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2018-09-02 00:00:00 UTC
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Is GW Pharmaceuticals PLC a Buy?
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DEA
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https://www.nasdaq.com/articles/gw-pharmaceuticals-plc-buy-2018-09-02
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nan
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nan
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GW Pharmaceuticals PLC (NASDAQ: GWPH) made history in June when it won FDA approval for Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS). No other drug made from the marijuana plant has ever won FDA approval. The three cannabinoid drugs that have secured U.S. regulatory approval in the past are all made synthetically.
Epidiolex hasn't made it to market yet. GW is waiting on scheduling by the U.S. Drug Enforcement Administration (DEA). The biotech expects to launch Epidiolex sometime in September. Should investors seriously consider buying the stock now? There are several factors to consider first.
Predicting isn't easy
GW Pharmaceuticals' market cap currently stands at close to $4.2 billion. Investors are clearly counting on Epidiolex to deliver because the company has only generated revenue of $17 million over the last 12 months. But predicting how high sales for the drug can go isn't easy.
Peak sales estimates for Epidiolex are all over the map. Goldman Sachs analyst Salveen Richter thinks the drug will make $2.2 billion by 2025. If she's right, GW stock is a bargain right now.
Market research firm EvaluatePharma projects that Epidiolex will generate sales of around $1 billion by 2022. That would mean GW could have a blockbuster on its hands. I think this scenario would give the biotech stock more room to run from where it trades now.
Then there's the pessimistic view. My colleague, Fool contributor Cory Renauer, for example, thinks that Epidiolex will be lucky to even reach $300 million in annual sales. Cory's view is that patients will opt to go with cannabidiol (CBD) products that are readily available throughout much of the U.S. He also doesn't think that insurers will want to pay the hefty $32,500-per-year price tag for Epidiolex.
Why is there such a wide range of predictions? No one knows for sure whether or not payers will balk at Epidiolex's price. No one knows how competition from CBD oils will impact Epidiolex's sales. It's still uncertain how much the drug will be used for off-label indications other than Dravet syndrome and LGS. There are also questions about how much Zogenix 's ZX008, which looked very good in phase 3 testing for the treatment of Dravet syndrome, could impact Epidiolex, assuming Zogenix wins approval for its drug.
A best guess
Let me say out of the gate that I don't think Epidiolex will reach sales of more than $2 billion like Goldman Sachs projects. I agree with Cory that insurers will balk at covering the drug for off-label use. The markets for Dravet syndrome and LGS simply won't be enough to get to the $2 billion sales level.
However, I'm not nearly as pessimistic as Cory is. I do expect that insurers and pharmacy benefits managers (PBMs) will pay for Epidiolex for its approved indications. GW Pharmaceuticals' team has been talking to major payers for a while now. Julian Gangolli, president of GW's North American operations, said earlier this year that he thinks that payers "understand the value" of Epidiolex. I suspect he's right.
Remember, Banzel, a currently approved treatment for LGS, costs around $32,000 per year -- and insurers cover it. I don't think the price tag for Epidiolex will throw payers for a loop. I also don't see insurers refusing to cover an FDA-approved drug because patients can get the same active ingredient through non-FDA-approved alternatives. Medicare and Medicaid, which cover over half of the patients likely to take Epidiolex, certainly won't walk away from reimbursement for the drug.
But will patients go with other CBD products instead of Epidiolex? My take is that they won't if insurers cover the drug. I expect that the co-pays for Epidiolex will be much more affordable than buying other CBD oils.
I also think that GW Pharmaceuticals will win regulatory approval in Europe early next year. The biotech is already building up its sales infrastructure in Europe in anticipation of approval. While GW won't be able to command a premium price for Epidiolex overseas, Europe represents a significant opportunity.
Putting all this together, my best guess is that Epidiolex could get close to the $1 billion peak sales level within a few years. I think that GW's first-mover advantage over Zogenix should help as patients who respond well to Epidiolex opt to stay with what works rather than try a different therapy.
To buy or not to buy?
In my opinion, GW Pharmaceuticals stock remains an OK stock to buy. A strong commercial launch for Epidiolex in the U.S. and a thumbs-up in Europe could serve as nice catalysts. GW also has other pipeline candidates in phase 2 clinical studies that could add even more value down the road.
I'm not overly bullish on GW Pharmaceuticals, though. Solid sales for Epidiolex are already largely baked into the biotech's share price. GW still faces risks that the drug won't perform as well as expected. While I think GW Pharmaceuticals is a buy, I also believe that there are several stocks on the market that are even better picks right now.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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GW is waiting on scheduling by the U.S. Drug Enforcement Administration (DEA). Julian Gangolli, president of GW's North American operations, said earlier this year that he thinks that payers "understand the value" of Epidiolex. While GW won't be able to command a premium price for Epidiolex overseas, Europe represents a significant opportunity.
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GW is waiting on scheduling by the U.S. Drug Enforcement Administration (DEA). Predicting isn't easy GW Pharmaceuticals' market cap currently stands at close to $4.2 billion. There are also questions about how much Zogenix 's ZX008, which looked very good in phase 3 testing for the treatment of Dravet syndrome, could impact Epidiolex, assuming Zogenix wins approval for its drug.
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GW is waiting on scheduling by the U.S. Drug Enforcement Administration (DEA). GW Pharmaceuticals PLC (NASDAQ: GWPH) made history in June when it won FDA approval for Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS). In my opinion, GW Pharmaceuticals stock remains an OK stock to buy.
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GW is waiting on scheduling by the U.S. Drug Enforcement Administration (DEA). The markets for Dravet syndrome and LGS simply won't be enough to get to the $2 billion sales level. In my opinion, GW Pharmaceuticals stock remains an OK stock to buy.
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4bcf6a90-9e33-42ec-9f19-3af680b649c9
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723475.0
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2018-08-19 00:00:00 UTC
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Don't Fall Over, but the DEA Just Changed Its Tune on Marijuana
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DEA
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https://www.nasdaq.com/articles/dont-fall-over-dea-just-changed-its-tune-marijuana-2018-08-19
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nan
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nan
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Big changes are under way right now in our neighbor to the north. Beginning Oct. 17, recreational marijuana will officially go on sale in Canada, making it the first industrialized country in the world to give adult-use weed the green light.
The legalization of marijuana in Canada is expected to generate up to $5 billion in annual sales once the industry is fully up to speed. Though some of this revenue will come from domestic markets, Canadian growers are angling to reap significant rewards from exports since roughly 30 countries having legalized medical cannabis to some degree. However, the United States won't be one of those countries.
The U.S. federal government stymies cannabis progress
Whereas most of the developed world appears to be progressing on their view of cannabis, the U.S. has remained stuck in neutral. Even though Oklahoma recently became the 30th state to have legalized medical marijuana in some capacity, the federal government has held firm on its stance that cannabis is a Schedule I substance. According to the Controlled Substances Act, that means marijuana is entirely illegal, prone to abuse, and devoid of any recognized medical benefits.
As you can imagine, businesses that deal with marijuana in the U.S. face quite a few disadvantages with this Schedule I classification. For instance, businesses that sell a Schedule I or II substance are unable to take normal corporate income tax deductions, aside from cost of goods. For pot companies, this can lead to an effective corporate income tax rate of between 70% and 90%.
In addition, weed's Schedule I classification has made it virtually impossible for marijuana-based businesses to access basic banking services like a normal company. That means little or no access to loans, lines of credit, and even checking accounts.
But the biggest slap of all might be what the Schedule I classification does to the medical side of the equation. Though researchers would like to conduct tests into the benefits and risks of cannabis, the drug's current scheduling makes getting regulatory approval for those tests difficult. Plus, with just one grow facility in the U.S. at the University of Mississippi, supply is also a serious concern.
Having previously broken its promise, the DEA appears to have changed its tune
The interesting thing here is that changes the Obama administration made in 2016 were designed to rectify researchers' inability to get their hands on federally approved medical cannabis. The Obama administration set a path by which the National Institute on Drug Abuse would license additional cultivators, ending the University of Mississippi's monopoly on federally grown cannabis, which it's held since 1968. In doing so, the supply for researchers to conduct laboratory and clinical studies should increase.
But that hasn't happened. Despite receiving roughly 25 applications for federal cannabis grow farms last year, the U.S. Drug Enforcement Agency (DEA) and Attorney General Jeff Sessions have sat on these applications without approving a single one. In fact, the amount of cannabis the DEA requested be grown in 2018, 443,680 grams, is actually a modest decline from what the drug regulatory agency requested be grown in 2017.
The good news is that it appears the DEA is done breaking promises to researchers and the American public. According to a new register filing from the DEA, as reported by Forbes , the regulatory agency is calling for 2,450,000 grams of cannabis next year "to meet the country's medical, scientific, research, industrial, and export needs for the year and for the establishment of reserve stocks." For those of you keeping score at home, that's a 452% year-over-year increase in requested production.
What we don't as of yet know is where this new production will come from. It's possible it could come entirely from the University of Mississippi in order to replace reduced reserves. It's also just as likely that this proposed 2.45 million grams of production implies that Sessions and the DEA plan to approve some of the grow farm applications they've received. Though Sessions hasn't tipped his hand one way or the other, he's certainly received bipartisan pressure from lawmakers in Washington to boost federally approved output.
The big picture: Marijuana remains stuck in neutral
But when looking at the bigger picture, the U.S. cannabis industry is unlikely to see much in the way of change, even with the DEA requesting additional production for research purposes. That's because Republicans are still in control of the legislative branch of the federal government, and the GOP has a markedly more negative view of cannabis than Democrats or independents. That makes any chance of a rescheduling or de-scheduling unlikely.
However, there is a wild card that has the potential to incite change at the federal level.
Back on June 25, the U.S. Food and Drug Administration (FDA) approved GW Pharmaceuticals ' (NASDAQ: GWPH) Epidiolex to treat two rare types of childhood-onset epilepsy known as Dravet syndrome and Lennox-Gastaut syndrome. What makes this approval so different from just any other drug approval is that it marked the first time that the FDA OK'd a cannabis-derived drug. Synthetic versions of tetrahydrocannabinol (THC), the psychoactive component of the cannabis plant that gets you "high," have been approved before. But this was the first time a cannabidiol (CBD)-based medicine directly from the cannabis plant was given the green light. CBD is the non-psychoactive cannabinoid best known for its perceived medical benefits.
This is significant because the FDA approval of a cannabis-derived drug contradicts the definition of a Schedule I substance. In essence, a Schedule I substance has no recognized medical benefits -- yet here's this newly approved drug from GW Pharmaceuticals that shows otherwise. This cannabis conundrum may spark a rescheduling of cannabidiol, or perhaps lead to increased discussion of marijuana reform on Capitol Hill.
But make no mistake about it: The hill to climb is steep. Even though the public's opinion has shifted dramatically over the past two decades, the federal government has little reason to consider changing its classification of marijuana.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can imagine, businesses that deal with marijuana in the U.S. face quite a few disadvantages with this Schedule I classification. Having previously broken its promise, the DEA appears to have changed its tune The interesting thing here is that changes the Obama administration made in 2016 were designed to rectify researchers' inability to get their hands on federally approved medical cannabis. Despite receiving roughly 25 applications for federal cannabis grow farms last year, the U.S. Drug Enforcement Agency (DEA) and Attorney General Jeff Sessions have sat on these applications without approving a single one.
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Despite receiving roughly 25 applications for federal cannabis grow farms last year, the U.S. Drug Enforcement Agency (DEA) and Attorney General Jeff Sessions have sat on these applications without approving a single one. The big picture: Marijuana remains stuck in neutral But when looking at the bigger picture, the U.S. cannabis industry is unlikely to see much in the way of change, even with the DEA requesting additional production for research purposes. As you can imagine, businesses that deal with marijuana in the U.S. face quite a few disadvantages with this Schedule I classification.
|
Having previously broken its promise, the DEA appears to have changed its tune The interesting thing here is that changes the Obama administration made in 2016 were designed to rectify researchers' inability to get their hands on federally approved medical cannabis. Despite receiving roughly 25 applications for federal cannabis grow farms last year, the U.S. Drug Enforcement Agency (DEA) and Attorney General Jeff Sessions have sat on these applications without approving a single one. According to a new register filing from the DEA, as reported by Forbes , the regulatory agency is calling for 2,450,000 grams of cannabis next year "to meet the country's medical, scientific, research, industrial, and export needs for the year and for the establishment of reserve stocks."
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As you can imagine, businesses that deal with marijuana in the U.S. face quite a few disadvantages with this Schedule I classification. Having previously broken its promise, the DEA appears to have changed its tune The interesting thing here is that changes the Obama administration made in 2016 were designed to rectify researchers' inability to get their hands on federally approved medical cannabis. Despite receiving roughly 25 applications for federal cannabis grow farms last year, the U.S. Drug Enforcement Agency (DEA) and Attorney General Jeff Sessions have sat on these applications without approving a single one.
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e8230342-62b6-421a-aeb0-549bda03422c
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723476.0
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2018-08-17 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - DEA
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DEA
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-dea-2018-08-17
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nan
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nan
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $20.24, changing hands as high as $20.32 per share. Easterly Government Properties Inc shares are currently trading up about 1.4% on the day. The chart below shows the one year performance of DEA shares, versus its 200 day moving average:
Looking at the chart above, DEA's low point in its 52 week range is $18.73 per share, with $22.32 as the 52 week high point - that compares with a last trade of $20.32.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $20.24, changing hands as high as $20.32 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.73 per share, with $22.32 as the 52 week high point - that compares with a last trade of $20.32. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $20.24, changing hands as high as $20.32 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.73 per share, with $22.32 as the 52 week high point - that compares with a last trade of $20.32. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $20.24, changing hands as high as $20.32 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.73 per share, with $22.32 as the 52 week high point - that compares with a last trade of $20.32. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Easterly Government Properties Inc (Symbol: DEA) crossed above their 200 day moving average of $20.24, changing hands as high as $20.32 per share. The chart below shows the one year performance of DEA shares, versus its 200 day moving average: Looking at the chart above, DEA's low point in its 52 week range is $18.73 per share, with $22.32 as the 52 week high point - that compares with a last trade of $20.32. Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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d322faeb-cf01-409a-8be8-8fbaf748579c
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723477.0
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2018-08-07 00:00:00 UTC
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Financial Exchange Stock Talk: Mark Hibben On Qualcomm And Intel
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DEA
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https://www.nasdaq.com/articles/financial-exchange-stock-talk-mark-hibben-qualcomm-and-intel-2018-08-07
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nan
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nan
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By Mark Hibben :
See Mark's most recent article on Intel ( INTC )here.
See also Easterly Government Properties, Inc. ( DEA ) CEO Bill Trimble on Q2 2018 Results - Earnings Call Transcript on seekingalpha.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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See also Easterly Government Properties, Inc. ( DEA ) CEO Bill Trimble on Q2 2018 Results - Earnings Call Transcript on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. By Mark Hibben : See Mark's most recent article on Intel ( INTC )here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See also Easterly Government Properties, Inc. ( DEA ) CEO Bill Trimble on Q2 2018 Results - Earnings Call Transcript on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. By Mark Hibben : See Mark's most recent article on Intel ( INTC )here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See also Easterly Government Properties, Inc. ( DEA ) CEO Bill Trimble on Q2 2018 Results - Earnings Call Transcript on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. By Mark Hibben : See Mark's most recent article on Intel ( INTC )here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See also Easterly Government Properties, Inc. ( DEA ) CEO Bill Trimble on Q2 2018 Results - Earnings Call Transcript on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. By Mark Hibben : See Mark's most recent article on Intel ( INTC )here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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9381ac5c-19b5-4e12-9204-85a4ce13ea48
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723478.0
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2018-07-26 00:00:00 UTC
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New Strong Sell Stocks for July 26th
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DEA
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-july-26th-2018-07-26
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nan
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nan
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
Allegiant Travel CompanyALGT is a provider of travel services and related products to residents of under-served cities in the United States. The Zacks Consensus Estimate for its current year earnings has been revised 4.3% downward over the last 60 days.
AmeriGas Partners, L.P.APU is a distributor of propane and related equipment and supplies. The Zacks Consensus Estimate for its current year earnings has been revised 2% downward over the last 60 days.
CymaBay Therapeutics, Inc.CBAY is the owner and operator of a clinical-stage biopharmaceutical company. The Zacks Consensus Estimate for its current year earnings has been revised 0.9% downward over the last 60 days.
Easterly Government Properties, Inc.DEA is the acquirer and developer of Class A commercial properties that are leased to the U.S. Government. The Zacks Consensus Estimate for its current year earnings has been revised 5.4% downward over the last 60 days.
Horizon Global CorporationHZN is a designer and manufacturer of towing, trailering and cargo management products. The Zacks Consensus Estimate for its current year earnings has been revised 96.3% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
AmeriGas Partners, L.P. (APU): Free Stock Analysis Report
Horizon Global Corporation (HZN): Free Stock Analysis Report
CymaBay Therapeutics Inc. (CBAY): Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties, Inc.DEA is the acquirer and developer of Class A commercial properties that are leased to the U.S. Government. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report AmeriGas Partners, L.P. (APU): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report CymaBay Therapeutics Inc. (CBAY): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for its current year earnings has been revised 2% downward over the last 60 days.
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Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report AmeriGas Partners, L.P. (APU): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report CymaBay Therapeutics Inc. (CBAY): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, Inc.DEA is the acquirer and developer of Class A commercial properties that are leased to the U.S. Government. The Zacks Consensus Estimate for its current year earnings has been revised 4.3% downward over the last 60 days.
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Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report AmeriGas Partners, L.P. (APU): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report CymaBay Therapeutics Inc. (CBAY): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, Inc.DEA is the acquirer and developer of Class A commercial properties that are leased to the U.S. Government. The Zacks Consensus Estimate for its current year earnings has been revised 4.3% downward over the last 60 days.
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Easterly Government Properties, Inc.DEA is the acquirer and developer of Class A commercial properties that are leased to the U.S. Government. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report AmeriGas Partners, L.P. (APU): Free Stock Analysis Report Horizon Global Corporation (HZN): Free Stock Analysis Report CymaBay Therapeutics Inc. (CBAY): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for its current year earnings has been revised 4.3% downward over the last 60 days.
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eb738f7e-f08f-4a75-9e91-93c5731293b4
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723479.0
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2018-07-15 00:00:00 UTC
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The 3 Biggest Problems With Marijuana's Schedule I Classification
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DEA
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https://www.nasdaq.com/articles/3-biggest-problems-marijuanas-schedule-i-classification-2018-07-15
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nan
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nan
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Practically everywhere you look, legal cannabis is expanding at a breakneck pace. For instance, Canada passed the Cannabis Act (officially bill C-45) on June 19, setting up Oct. 17 to be the first day that adults can legally purchase recreational weed. Canada is also the first industrialized country in the world to have given the green light to adult-use cannabis.
South of the border, Mexico wound up legalizing medical cannabis in June 2017. It's worth pointing out that Mexico is among more than two dozen foreign countries to have legalized medical marijuana -- and many of these markets will be counting on Canada to supply their product needs.
As a Schedule I drug, marijuana businesses and medical patients face a number of hurdles
But when it comes to the United States, we're going nowhere fast, at least at the federal level. Despite 30 states having passed broad-sweeping medical cannabis laws since 1996, including nine states that also allow adults to consume recreational pot, the federal government has stood firm on its view of marijuana as a Schedule I substance.
According to the U.S. Drug Enforcement Agency (DEA), Schedule I substances are "defined as drugs with no currently accepted medical use and a high potential for abuse." Its website lists marijuana, heroin, LSD, peyote, ecstasy, and Quaalude, as Schedule I substances, while drugs like cocaine and methamphetamine are actually found in the slightly less-restrictive Schedule II classification.
Though the federal government has thus far been willing to take a hands-off approach with regard to the expansion of cannabis at the state-level (with the exception of Attorney General Jeff Sessions, who's attempted to wage war on the weed industry), its scheduling has nonetheless created major headaches for the industry. There are, in particular, three major issues that arise for marijuana companies and medical patients as a result of its Schedule I classification.
1. Little or no access to basic banking services
The first problem created by the DEA's scheduling of marijuana is that businesses involved in the space are often unable to obtain basic banking services , which includes everything from loans and lines of credit, to some as simple as a checking or savings account. Having to deal solely in cash is an inhibitor of growth and a natural safety hazard since it increases the risk of theft.
The issue is this: financial institutions report to the Federal Deposit Insurance Corporation (FDIC), and the FDIC is a federally created entity, which is bound by federal law. Under a strict interpretation of federal law, banks that offer any scope of financial services to medical or recreational cannabis companies could be construed as laundering money. Ultimately, that could subject banks to monetary and/or criminal penalties.
Now, the good news is the federal government hasn't really cared all that much about whether or not banks are offering their services to cannabis companies. But that could change with Jeff Sessions leading the crusade against cannabis. Since Sessions has been defeated in every attempt to repeal the Rohrabacher-Farr Amendment (also known as Rohrabacher-Blumenauer), which protects medical marijuana businesses in legal states from federal prosecution, he may turn his attention to other areas, such as industry financing.
It's also worth pointing out that while some lawmakers have attempted to open access to financial institutions for cannabis companies in legal states, the Senate Appropriations Committee recently blocked a vote (21 to 10) on a cannabis banking measure.
2. Unfair federal tax treatment because of an archaic law
Secondly, U.S. cannabis businesses that happen to be profitable are plagued by an archaic tax law that was developed more than 35 years ago to disrupt businesses that might have been trafficking Schedule I or II substances. Known as Section 280E (officially, Expenditures in connection with the illegal sale of drugs):
In plainer English, pot-based businesses are unable to take many of the corporate deductions that normal businesses are. This leaves profitable cannabis companies to pay effective tax rates that could be as high as 70% to 90%. So, essentially, the federal government won't allow the legal weed industry to thrive, but it has no qualms about taxing corporate cannabis income at an exceptionally high rate, thanks to 280E.
Between a lack of access to basic banking services and exorbitant tax rates, it's amazing the U.S. pot industry has the capital to expand or hire at all.
3. Red tape impeding medical marijuana research
A final problem is what the DEA's scheduling does to those patients who having aspirations of being treated by medical cannabis or its cannabinoids. Since marijuana is illegal at the federal level, there is no shortage of red tape involved when it comes to running clinical trials that would examine the benefits and risks of cannabis. This red tape means that some studies wait a lot time to get started, or that they may not even be conducted at all.
Beyond red tape, there are genuine supply concerns. There's only one approved federal grow facility in the U.S., located at the University of Mississippi. This single grow site simply doesn't produce enough cannabis to satiate the desire of researchers to run clinical testing.
In 2016, under the Obama administration, it looked as if progress was finally going to be made on the medical front. The administration announced that new grow sites would be added in the future to accommodate additional medical research. However, this expansion hasn't taken shape during the Trump presidency . Despite receiving 25 applications for new federal grow sites last year, Sessions hasn't approved any of them.
All hope isn't lost
If there is a silver lining to all of this (or perhaps I should say "green shoot"), it's that there are two catalysts that could lead to a rescheduling of marijuana at the federal level.
First, there's the fact that Americans of all ages and party affiliations strongly favor the idea of legalizing medical marijuana. In April, the independent Quinnipiac University released a poll showing that 93% of respondents were in favor of physicians prescribing medical cannabis to patients. This included 91% of seniors aged 65 and over, as well as 86% of all self-identified Republicans. Seniors and the GOP are traditionally the strongest opponents toward the expansion of weed.
Second, there's the recent approval of cannabinoid-based drug Epidiolex, which was developed by GW Pharmaceuticals (NASDAQ: GWPH) . Utilizing the cannabinoid CBD (cannabidiol), GW Pharmaceuticals' lead drug dazzled in clinical trials by reducing seizure frequency from baseline, and relative to the placebo, in two rare forms of childhood-onset epilepsy - Dravet syndrome and Lennox-Gastaut syndrome. The mere fact that GW Pharmaceuticals was able to take cannabinoids from the cannabis plant and turn it into a workable therapeutic puts the Food and Drug Administration's decision to approve this drug in direct conflict with the DEA's definition of a Schedule I drug .
In other words, public opinion and the approval of Epidiolex could incite reform, or at least a more thorough review of medical marijuana, in the very near future.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to the U.S. Drug Enforcement Agency (DEA), Schedule I substances are "defined as drugs with no currently accepted medical use and a high potential for abuse." Little or no access to basic banking services The first problem created by the DEA's scheduling of marijuana is that businesses involved in the space are often unable to obtain basic banking services , which includes everything from loans and lines of credit, to some as simple as a checking or savings account. Having to deal solely in cash is an inhibitor of growth and a natural safety hazard since it increases the risk of theft.
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Little or no access to basic banking services The first problem created by the DEA's scheduling of marijuana is that businesses involved in the space are often unable to obtain basic banking services , which includes everything from loans and lines of credit, to some as simple as a checking or savings account. According to the U.S. Drug Enforcement Agency (DEA), Schedule I substances are "defined as drugs with no currently accepted medical use and a high potential for abuse." Having to deal solely in cash is an inhibitor of growth and a natural safety hazard since it increases the risk of theft.
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Red tape impeding medical marijuana research A final problem is what the DEA's scheduling does to those patients who having aspirations of being treated by medical cannabis or its cannabinoids. The mere fact that GW Pharmaceuticals was able to take cannabinoids from the cannabis plant and turn it into a workable therapeutic puts the Food and Drug Administration's decision to approve this drug in direct conflict with the DEA's definition of a Schedule I drug . According to the U.S. Drug Enforcement Agency (DEA), Schedule I substances are "defined as drugs with no currently accepted medical use and a high potential for abuse."
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Red tape impeding medical marijuana research A final problem is what the DEA's scheduling does to those patients who having aspirations of being treated by medical cannabis or its cannabinoids. According to the U.S. Drug Enforcement Agency (DEA), Schedule I substances are "defined as drugs with no currently accepted medical use and a high potential for abuse." Little or no access to basic banking services The first problem created by the DEA's scheduling of marijuana is that businesses involved in the space are often unable to obtain basic banking services , which includes everything from loans and lines of credit, to some as simple as a checking or savings account.
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2018-07-14 00:00:00 UTC
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Better Marijuana Stock: Aphria vs. GW Pharmaceuticals
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https://www.nasdaq.com/articles/better-marijuana-stock-aphria-vs-gw-pharmaceuticals-2018-07-14
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Aphria (NASDAQOTH: APHQF) and GW Pharmaceuticals (NASDAQ: GWPH) are both in the medical marijuana industry. However, the companies have very different business models. Aphria ranks among the largest cannabis growers in Canada, while GW Pharmaceuticals is a cannabinoid-focused biotech.
GW Pharmaceuticals has been the much bigger winner for investors so far this year. Its share price is up more than 10%, while Aphria stock is down nearly 40%. But which of these two marijuana stocks is the better pick now? Here's how Aphria and GW compare.
The case for Aphria
If you're looking for the stock of a company that should soon post astronomical revenue growth, Aphria should be an excellent candidate. When Aphria reported its Q3 results in April, its sales totaled 10.3 million Canadian dollars ($8.2 million). That was an all-time high for Aphria, but it will probably be only chump change compared to what the company could make later this year.
Canada's market for adult use of recreational marijuana opens nationwide in October 2018. Aphria appears to be poised to capture a significant share of that market. The company is ready to target what could be a large retail customer base thanks to its partnership with Southern Glazer's, the largest wine and spirits distributor in North America.
Aphria also has cranked up its production capacity in anticipation of tremendous demand for both medical and recreational marijuana. The company expects to be able to deliver 225,000 kilograms per year by early 2019.
There are even more opportunities for Aphria outside of its home country. Germany legalized medical marijuana last year. Aphria's acquisition of another Canadian marijuana grower, Nuuvera, provided an entree into the German market. And while Aphria dialed back its initial plans to expand in the U.S. due to the threat of its stock being delisted from the Toronto Stock Exchange, the company should be able to quickly jump back into the U.S. market should federal marijuana laws change.
It's possible that Aphria could find a major partner in the not-too-distant future. Large alcoholic beverage company Molson Coors Brewingreportedly has been in talks with a few Canadian marijuana growers about making an investment and developing cannabis-infused beverages. Aphria is said to be among the top candidates if Molson Coors moves forward with its plans.
The case for GW Pharmaceuticals
GW Pharmaceuticals hasn't made a ton of money off of its first cannabis-based product, Sativex. The drug is sold in several countries -- but not the U.S. -- as a treatment for multiple sclerosis (MS) spasticity. However, GW could be rolling in the dough relatively soon.
The biotech won U.S. Food and Drug Administration (FDA) approval in June for Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS), both of which are rare forms of epilepsy. Epidiolex became the first plant-based cannabinoid drug to be approved in the U.S. One additional hurdle remains before Epidiolex reaches the market, though. The Drug Enforcement Administration (DEA) must classify the drug into one of five schedules for narcotics.
It's possible that Epidiolex could rake in peak annual sales of around $1 billion. Some analysts are even more optimistic about the drug's prospects. Market research firm EvaluatePharma ranked Epidiolex as one of the top 10 biggest new drug launches of 2018 , with sales approaching $1 billion by 2022.
GW Pharmaceuticals also hopes to win approval for Epidiolex in Europe for treating Dravet syndrome and LGS. A decision from the European Medicines Agency is expected in early 2019. In addition, the biotech is evaluating Epidiolex in a phase 3 clinical study for the treatment of tuberous sclerosis, a genetic disorder where benign tumors grow on various parts of the body.
More cannabinoid drugs could also be on the way. GW is conducting a phase 3 clinical trial of Sativex in hopes of bringing the drug to the U.S. market as a treatment for MS spasticity. The company is studying cannabinoids in treating autism spectrum disorders, epilepsy, glioblastoma, neonatal hypoxic-ischemic encephalopathy (HIE), and schizophrenia as well.
Better marijuana stock
There are some negatives for each of these marijuana stocks. Aphria could be at risk if supply outstrips global demand for marijuana within the next two or three years. GW Pharmaceuticals might run into challenges obtaining reimbursement for Epidiolex.
My view is that GW Pharmaceuticals is probably in a better position to meet expectations. There's no guarantee that will happen, of course. However, I think GW's risks aren't as great as Aphria's are. The biotech definitely doesn't face the amount of competition that Aphria does. While it's possible that Aphria stock could soar if it lands a partnership with Molson Coors, I see GW Pharmaceuticals as the better pick between these two marijuana stocks over the long run.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018
Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of TAP. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Drug Enforcement Administration (DEA) must classify the drug into one of five schedules for narcotics. The company is ready to target what could be a large retail customer base thanks to its partnership with Southern Glazer's, the largest wine and spirits distributor in North America. In addition, the biotech is evaluating Epidiolex in a phase 3 clinical study for the treatment of tuberous sclerosis, a genetic disorder where benign tumors grow on various parts of the body.
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The Drug Enforcement Administration (DEA) must classify the drug into one of five schedules for narcotics. The case for GW Pharmaceuticals GW Pharmaceuticals hasn't made a ton of money off of its first cannabis-based product, Sativex. The biotech won U.S. Food and Drug Administration (FDA) approval in June for Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS), both of which are rare forms of epilepsy.
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The Drug Enforcement Administration (DEA) must classify the drug into one of five schedules for narcotics. The case for Aphria If you're looking for the stock of a company that should soon post astronomical revenue growth, Aphria should be an excellent candidate. And while Aphria dialed back its initial plans to expand in the U.S. due to the threat of its stock being delisted from the Toronto Stock Exchange, the company should be able to quickly jump back into the U.S. market should federal marijuana laws change.
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The Drug Enforcement Administration (DEA) must classify the drug into one of five schedules for narcotics. Better marijuana stock There are some negatives for each of these marijuana stocks. My view is that GW Pharmaceuticals is probably in a better position to meet expectations.
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2018-07-09 00:00:00 UTC
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New Strong Sell Stocks for July 9th
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-july-9th-2018-07-09
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
ASV Holdings, Inc.ASV is a provider of integrated facility solutions across the globe. The Zacks Consensus Estimate for its current year earnings has been revised 12.5% downward over the last 60 days.
Green Plains Partners LPGPP is a provider of fuel storage and transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 4.3% downward over the last 60 days.
Azul S.A.AZUL is a provider of passenger and cargo air transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 37% downward over the last 60 days.
Heska CorporationHSKA is a provider of veterinary diagnostic and specialty products. The Zacks Consensus Estimate for its current year earnings has been revised 13% downward over the last 60 days.
Easterly Government Properties, Inc.DEA is a developer and manager of Class A commercial properties leased to the U.S. government. The Zacks Consensus Estimate for its current year earnings has been revised 3% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Green Plains Partners LP (GPP): Free Stock Analysis Report
Heska Corporation (HSKA): Free Stock Analysis Report
Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report
AZUL SA (AZUL): Free Stock Analysis Report
ASV Holdings, Inc. (ASV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Easterly Government Properties, Inc.DEA is a developer and manager of Class A commercial properties leased to the U.S. government. Click to get this free report Green Plains Partners LP (GPP): Free Stock Analysis Report Heska Corporation (HSKA): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report ASV Holdings, Inc. (ASV): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: ASV Holdings, Inc.ASV is a provider of integrated facility solutions across the globe.
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Click to get this free report Green Plains Partners LP (GPP): Free Stock Analysis Report Heska Corporation (HSKA): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report ASV Holdings, Inc. (ASV): Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, Inc.DEA is a developer and manager of Class A commercial properties leased to the U.S. government. The Zacks Consensus Estimate for its current year earnings has been revised 12.5% downward over the last 60 days.
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Click to get this free report Green Plains Partners LP (GPP): Free Stock Analysis Report Heska Corporation (HSKA): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report ASV Holdings, Inc. (ASV): Free Stock Analysis Report To read this article on Zacks.com click here. Easterly Government Properties, Inc.DEA is a developer and manager of Class A commercial properties leased to the U.S. government. The Zacks Consensus Estimate for its current year earnings has been revised 12.5% downward over the last 60 days.
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Easterly Government Properties, Inc.DEA is a developer and manager of Class A commercial properties leased to the U.S. government. Click to get this free report Green Plains Partners LP (GPP): Free Stock Analysis Report Heska Corporation (HSKA): Free Stock Analysis Report Easterly Government Properties, Inc. (DEA): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report ASV Holdings, Inc. (ASV): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: ASV Holdings, Inc.ASV is a provider of integrated facility solutions across the globe.
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2018-07-02 00:00:00 UTC
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Best ETFs for 2018: ALPS Medical Breakthroughs ETF Keeps Rolling Along
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https://www.nasdaq.com/articles/best-etfs-for-2018%3A-alps-medical-breakthroughs-etf-keeps-rolling-along
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is a part of InvestorPlace's Best ETFs for 2018 contest. Todd Shriber's pick for the contest is the ALPS Medical Breakthroughs ETF (NYSEARCA:SBIO).
It has been eventful first half of 2018 for broader domestic and international equity indexes. Rising Treasury yields and fears of trade wars with the likes of China are hampering U.S. stocks.
Underscoring that point, as of Jun. 28, the S&P 500 is up less than 2% year-to-date. Also just four of the 11 sectors tracked in the benchmark U.S. equity gauge are positive on the year. Albeit modestly, healthcare is one of the four sectors higher YTD, and biotechnology stocks are a big reason.
Enter the ALPS Medical Breakthroughs ETF, my pick for the InvestorPlaceBest ETF of 2018 competition .
A Nice Second Quarter
Through Jun. 28, SBIO is sporting a second quarter gain of 11.9%, more than double the 5.4% returned by the large-cap-heavy Nasdaq Biotechnology Index over the same period. Taking a broad view, one of the reasons SBIO is outperforming large-cap biotech indexes and the broader market is its tilt toward mid- and small-cap stocks .
My Top 8 Growth Stocks for the Next Decade
SBIO only holds companies with market values ranging from $200 million to $5 billion, an obvious advantage at a time when small caps are rallying. Among the reasons that small caps are hot are lack of sensitivity to rising interest rates, lack of vulnerability to the stronger dollar and a focus on the domestic economy.
All of those points are relevant to SBIO, particularly when acknowledging that the fund's underlying index only includes companies with enough cash to survive at least 24 months at current burn rates. That says SBIO member firms, in many cases, do not need to tap corporate debt markets at a time when financing costs are increasing because of Federal Reserve tightening.
More Importantly…
None of SBIO's 115 holdings account for more than 3.45% of the exchange traded fund (ETF). That helps limit single stock risk without sacrificing responsiveness to positive biotech headlines. During the second quarter, SBIO benefited from positive headlines.
Although the stock slid late in June, GW Pharmaceuticals (NASDAQ: GWPH ) impressed for most of the quarter. In late June, the Food & Drug Administration (FDA) approved GW's anti-seizure drug Epidiolex.
InvestorPlacereported last month that "the government approval for Epidiolex, which aims at treating seizure disorders called Lennox-Gastaut syndrome and Dravet syndrome, is a net positive." But because the treatment includes cannabidiol (CBD), the Drug Enforcement Agency (DEA) has to approve sales.
Shares of GW now trade well below the average analyst price target, indicating there could be upside. The stock is 2.34% of SBIO's weight as of Jun. 28.
Another example of a second quarter SBIO star is Madrigal Pharmaceuticals (NASDAQ: MDGL ). The stock saw some profit-taking in late June, but that is to be expected when a stock enters the final trading day of a month with an intra-month gain of over 150%.
In a single trading day in early June, Madrigal cobbled together the bulk of its monthly gains, more than doubling after revealing positive Phase II clinical trial results for its treatment of nonalcoholic steatohepatitis, or NASH.
The stock rallied later in the month on news Madrigal may be exploring a sale , a logical move given the potentially lucrative nature of the NASH market and the desire for large-cap biotechnology and pharmaceuticals companies to gain easy access to that arena.
Madrigal is 2.65% of SBIO's weight as of Jun. 28.
Best ETFs for 2018: Break Through With the ALPS Medical Breakthroughs ETF
GW and Madrigal are just two examples of SBIO's potency, but they highlight the fund's leverage to FDA approvals and mergers and acquisitions news, two themes that should continue in the second half of 2018.
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The post Best ETFs for 2018: ALPS Medical Breakthroughs ETF Keeps Rolling Along appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But because the treatment includes cannabidiol (CBD), the Drug Enforcement Agency (DEA) has to approve sales. My Top 8 Growth Stocks for the Next Decade SBIO only holds companies with market values ranging from $200 million to $5 billion, an obvious advantage at a time when small caps are rallying. In a single trading day in early June, Madrigal cobbled together the bulk of its monthly gains, more than doubling after revealing positive Phase II clinical trial results for its treatment of nonalcoholic steatohepatitis, or NASH.
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But because the treatment includes cannabidiol (CBD), the Drug Enforcement Agency (DEA) has to approve sales. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This article is a part of InvestorPlace's Best ETFs for 2018 contest. In late June, the Food & Drug Administration (FDA) approved GW's anti-seizure drug Epidiolex.
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But because the treatment includes cannabidiol (CBD), the Drug Enforcement Agency (DEA) has to approve sales. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This article is a part of InvestorPlace's Best ETFs for 2018 contest. Best ETFs for 2018: Break Through With the ALPS Medical Breakthroughs ETF GW and Madrigal are just two examples of SBIO's potency, but they highlight the fund's leverage to FDA approvals and mergers and acquisitions news, two themes that should continue in the second half of 2018.
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But because the treatment includes cannabidiol (CBD), the Drug Enforcement Agency (DEA) has to approve sales. A Nice Second Quarter Through Jun. More Importantly… None of SBIO's 115 holdings account for more than 3.45% of the exchange traded fund (ETF).
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2018-06-30 00:00:00 UTC
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The FDA Finally Weighs In on Marijuana, and It's a Go
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https://www.nasdaq.com/articles/fda-finally-weighs-marijuana-and-its-go-2018-06-30
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There's been debate over the use of marijuana in epilepsy patients since the use of a special marijuana strain crafted by the Stanley Brothers won widespread media attention in 2013 for helping control seizures in Charlotte, a Colorado child with Dravet syndrome, a rare form of epilepsy.
Until now, the Food and Drug Administration (FDA), the regulator in charge of reviewing scientific data and approving or rejecting drugs based on their merits, had stayed mum on the use of marijuana in epilepsy patients. That changed this week when it gave a thumbs-up to GW Pharmaceuticals ' (NASDAQ: GWPH) Epidiolex, a purified oral formulation of cannabidiol (CBD).
Big marijuana news
Because the FDA is a science-based organization that approves drugs based on their proven ability to be safe and effective in well-controlled trials, its OK is a big validation of the fact that CBD can help epilepsy patients.
The FDA didn't approve the use of CBD purchased in medical-marijuana dispensaries, but its nod does allows doctors to prescribe and patients to take Epidiolex nationwide, without fear of reprisal, even in states where marijuana is still illegal.
One of 60 cannabinoids found within the marijuana plant, CBD is the same chemical the Stanley Brothers focused on when crafting Charlotte's Web from hemp. It's also the main cannabinoid found in other marijuana strains that have been designed for medical use, including Katelyn Faith, Harlequin, and Remedy.
Unlike tetrahydrocannabinol (THC), CBD isn't psychoactive, so it doesn't cause euphoric highs. Instead, CBD appears to control seizures by interacting with multiple neurotransmitters and neuromodulators.
It's not fully understood why CBD treats epilepsy so effectively, but GW Pharmaceuticals' research suggests CBD's benefits are the result of "a cumulative anti-convulsant effect, modulating a number of endogenous systems including, but not limited to neuronal inhibition (synaptic and extrasynaptic GABA channels), modulation of intracellular calcium (TRPV, VDAC, GPR55), and possible anti-inflammatory effects (adenosine)."
Regardless of its mechanism of action, Epidiolex's ability to reduce seizures in epileptics is remarkable. In clinical trials involving hundreds of patients with Dravet syndrome and Lennox-Gastaut syndrome, two types of child-onset epilepsy, patients saw about a 40% decline in seizures.
Delivering on promise
GW Pharmaceuticals has been researching marijuana as medicine since the 1990s, but up to now its attempts to prove the efficacy of marijuana-derived medications have been mixed.
The company won European approval of a THC-based drug, Sativex, for controlling muscle spasms in patients with multiple sclerosis. However, large, placebo-controlled trials in cancer pain failed to prove Sativex effective in 2015.
Because Sativex isn't approved for use in the United States yet, Epidiolex will be the company's first marijuana medicine that's available in America. It remains to be seen how widespread the use of Epidiolex will be, but an argument can be made that it will be a top-seller.
Epidiolex is initially only approved for Dravet syndrome and Lennox-Gastaut syndrome; however, doctors can prescribe FDA-approved medications off-label, so Epdiolex could win more widespread use in epilepsy. If so, that could translate into a bonanza for GW Pharmaceuticals and its investors.
There are 2.2 million Americans suffering from epilepsy, including 470,000 children, and seizures are inadequately controlled in about one-third of patients, despite widespread use of existing antiepileptics.
What to watch now
The Drug Enforcement Agency (DEA) still lists marijuana as a Schedule I drug. But following this approval, Epidiolex could secure more favorable scheduling, and if it does, that could reduce barriers to access. The DEA has 90 days to issue an interim final rule regarding Epidiolex's scheduling; while there's no telling what the agency will do, GW Pharmaceuticals would consider a Schedule IV ruling a big win. A Schedule II decision would be a loss, because Schedule II drugs can't be as easily refilled.
Overall, Epidiolex's approval is a big advance for the medical marijuana movement. It's likely to win support among doctors and patients in this tough-to-treat patient population, and it helps pave the way for more companies to conduct their own clinical trials in other indications. Just how big of a commercial hit Epidiolex may be won't be known for a while, though. Investors may want to approach this marijuana stock with cautious optimism.
10 stocks we like better than GW Pharmaceuticals
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What to watch now The Drug Enforcement Agency (DEA) still lists marijuana as a Schedule I drug. The DEA has 90 days to issue an interim final rule regarding Epidiolex's scheduling; while there's no telling what the agency will do, GW Pharmaceuticals would consider a Schedule IV ruling a big win. That changed this week when it gave a thumbs-up to GW Pharmaceuticals ' (NASDAQ: GWPH) Epidiolex, a purified oral formulation of cannabidiol (CBD).
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What to watch now The Drug Enforcement Agency (DEA) still lists marijuana as a Schedule I drug. The DEA has 90 days to issue an interim final rule regarding Epidiolex's scheduling; while there's no telling what the agency will do, GW Pharmaceuticals would consider a Schedule IV ruling a big win. There's been debate over the use of marijuana in epilepsy patients since the use of a special marijuana strain crafted by the Stanley Brothers won widespread media attention in 2013 for helping control seizures in Charlotte, a Colorado child with Dravet syndrome, a rare form of epilepsy.
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What to watch now The Drug Enforcement Agency (DEA) still lists marijuana as a Schedule I drug. The DEA has 90 days to issue an interim final rule regarding Epidiolex's scheduling; while there's no telling what the agency will do, GW Pharmaceuticals would consider a Schedule IV ruling a big win. There's been debate over the use of marijuana in epilepsy patients since the use of a special marijuana strain crafted by the Stanley Brothers won widespread media attention in 2013 for helping control seizures in Charlotte, a Colorado child with Dravet syndrome, a rare form of epilepsy.
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What to watch now The Drug Enforcement Agency (DEA) still lists marijuana as a Schedule I drug. The DEA has 90 days to issue an interim final rule regarding Epidiolex's scheduling; while there's no telling what the agency will do, GW Pharmaceuticals would consider a Schedule IV ruling a big win. Big marijuana news Because the FDA is a science-based organization that approves drugs based on their proven ability to be safe and effective in well-controlled trials, its OK is a big validation of the fact that CBD can help epilepsy patients.
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2018-06-29 00:00:00 UTC
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Bitcoin Magazine’s Week in Review: Charity Funds and Dark Web Run-Ins
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https://www.nasdaq.com/articles/bitcoin-magazines-week-in-review%3A-charity-funds-and-dark-web-run-ins-2018-06-29
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This week, the U.S. Department of Justice and other law enforcement agencies banded together to bring down some bad actors on the dark web. EOS is undergoing some growing pains with the launch of its network, exposing the trials and tribulations of an all-too-centralized governance model.
It wasn't all unsavory news, though. A new $300 million crypto fund was launched by Andreessen Horowitz to help grow the ecosystem, and Coinbase's CEO started a cryptocurrency charity fund that already has $1 million to work with.
We witnessed some notable technological advancements this week as well with the announcement of the ERC-1155 token standard for Ethereum. The new standard will build on and enhance ERC-721's functionality, the same standard used to tokenize non-fungible assets like CryptoKitties.
Featured stories by Jimmy Aki, Colin Harper, Erik Kuebler and Nick Marinoff.
Stay on top of the best stories in the bitcoin, blockchain and cryptocurrency industry. Subscribe to our newsletter here .
DOJ, U.S. Agencies Seize Over $12M Bitcoin in a Slew of Dark Web Busts
The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. In the nation's first inter-agency crackdown on dark web operators, the sweep ended in the confiscation of military-grade weapons, drugs and drug manufacturing equipment, $3.6 million in hard cash and gold bars and over 2,000 bitcoin, valued at around $12 million.
Andreessen Horowitz Has Launched a $300M Crypto Fund
Financial firm Andreessen Horowitz has established a new $300 million crypto fund that is dedicated to investing in cryptocurrencies and other blockchain-related projects. Named a16z crypto , the new fund has the firm delving deeper into the cryptocurrency space to grow its existing portfolio, which includes digital currency exchange Coinbase. In a statement posted on the company's blog , general partner Chris Dixon states that the a16z crypto fund provides the firm with the flexibility to invest in any area of its choosing, from traditional equities to digital tokens. As a result, the firm will be able to invest in both companies and the tokens those companies create.
Enjin Coin CTO Creates ERC-1155, a New Token Standard for Ethereum
Co-founder and CTO of Enjin Coin Witek Radomski has developed the ERC-1155 token, a new standard for defining video game tokens on the Ethereum blockchain. Radomski was responsible for the development of the ERC-721 non-fungible token standard that was used in the development of CryptoKitties. The new protocol allows for an infinite number of both fungible and non-fungible items to be deployed through a single contract, a breakthrough that has ramifications for tokenized asset management for the gaming industry and beyond.
EOS Founder Wants to Scrap the Platform's Constitution, Start Anew
The long awaited EOS launch occurred earlier this month, but it has not been without its difficulties. Daniel Larmier, the founder and technical architect of EOS, has confirmed that he wants to scrap the platform's current constitution and build a new one. Speaking on the EOSIO Gov Telegram Channel, Larmier revealed that he has doubts about the company's current on-chain governance model and called the existing constitution "unwise." While Larmier has a proposal to change the problems, those for the change would have to outnumber those against it by 10 percent. They would then have to hold this position for 30 consecutive days within a 120-day period, so even if Larmier does get his way, we're not likely to see the emergence of a new constitution for a minimum of four months.
Coinbase CEO Brian Armstrong Launches Cryptocurrency Charity Fund
On June 27, 2018, Coinbase CEO Brian Armstrong announced his new cryptocurrency charity fund, GiveCrypto. Armstrong established the philanthropic venture to financially empower people with direct cryptocurrency distributions. The charity has already raised $1 million from prominent cryptocurrency community members, and it plans to raise $10 million by the end of 2018 and $1 billion over a two-year time frame. The nonprofit's mission is to give 100 percent of its cryptocurrency contributions to impoverished people, an altruistic goal that simultaneously drives cryptocurrency's real-world utility.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Agencies Seize Over $12M Bitcoin in a Slew of Dark Web Busts The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. In a statement posted on the company's blog , general partner Chris Dixon states that the a16z crypto fund provides the firm with the flexibility to invest in any area of its choosing, from traditional equities to digital tokens. The new protocol allows for an infinite number of both fungible and non-fungible items to be deployed through a single contract, a breakthrough that has ramifications for tokenized asset management for the gaming industry and beyond.
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Agencies Seize Over $12M Bitcoin in a Slew of Dark Web Busts The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. Andreessen Horowitz Has Launched a $300M Crypto Fund Financial firm Andreessen Horowitz has established a new $300 million crypto fund that is dedicated to investing in cryptocurrencies and other blockchain-related projects. Enjin Coin CTO Creates ERC-1155, a New Token Standard for Ethereum Co-founder and CTO of Enjin Coin Witek Radomski has developed the ERC-1155 token, a new standard for defining video game tokens on the Ethereum blockchain.
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Agencies Seize Over $12M Bitcoin in a Slew of Dark Web Busts The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. A new $300 million crypto fund was launched by Andreessen Horowitz to help grow the ecosystem, and Coinbase's CEO started a cryptocurrency charity fund that already has $1 million to work with. Enjin Coin CTO Creates ERC-1155, a New Token Standard for Ethereum Co-founder and CTO of Enjin Coin Witek Radomski has developed the ERC-1155 token, a new standard for defining video game tokens on the Ethereum blockchain.
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Agencies Seize Over $12M Bitcoin in a Slew of Dark Web Busts The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. The new standard will build on and enhance ERC-721's functionality, the same standard used to tokenize non-fungible assets like CryptoKitties. Andreessen Horowitz Has Launched a $300M Crypto Fund Financial firm Andreessen Horowitz has established a new $300 million crypto fund that is dedicated to investing in cryptocurrencies and other blockchain-related projects.
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723485.0
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2018-06-28 00:00:00 UTC
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6 Marijuana Stocks to Invest In for 1,000%+ Gains
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DEA
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https://www.nasdaq.com/articles/6-marijuana-stocks-to-invest-in-for-1000-gains-2018-06-28
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor's note : Below, you'll find the third essay in Matt McCall's multi-part series on making a fortune in the coming marijuana boom.
I've spent the past few days making the overwhelming case for investing in the legal marijuana business. In case you missed them, here's the first part and second part of my case.
I believe the incredible tailwinds blowing at legal marijuana's back make it so the opportunity here is much like the one internet stocks offered in 1994 … or the one bitcoin offered in 2015.
If you missed the opportunity to make 50 times your money in internet stocks … or if you missed out on the opportunity to make 50 times your money in bitcoin, you're going to want to know how to play weed.
Like any industry, there are a variety of ways to invest in marijuana, each with their own potential risks and rewards. Here's a quick overview of your options, including specific companies you may want to keep on your radar…
Producers
As is the case in any commodity, the obvious way to play marijuana is by owning businesses that produce it. Right now, the landscape is full of small-time growers. But some larger growers are looking to consolidate production and increase their pricing power.
An Investment That Returns $50 for Every $1
The largest marijuana stock in the world - Canopy Growth (NYSE: CGC ) - became the first of its kind to trade on the coveted New York Stock Exchange. Canopy is a giant grower of marijuana for all types of consumption. Canopy made big news last year when alcoholic beverage giant Constellation Brands bought a 9.9% stake in the company.
When a leading alcohol company invests $245 million into a new industry, it cannot be ignored. It's another step in giving the marijuana industry credibility.
Just behind Canopy is Aurora Cannabis (OTCMKTS: ACBFF ). The company initiated the largest acquisition in the history of the marijuana industry earlier this year with the purchase of CanniMed. The combination will take a leader in Aurora and join its forces with the first-ever approved cannabis producer in Canada. For 13 of the last 18 years, they were the only producers north of the border.
Picks and Shovels
Most investors are familiar with the "picks and shovels" approach to investing in a commodity boom for good reason. The right picks and shovels investment offers big upside, yet limited downside.
The most famous example of someone getting rich with the picks and shovels approach comes from the 1850s California gold rush. After gold was discovered at Sutter's Mill, thousands and thousands of people from all over the world rushed to California. They risked everything trying to strike it rich. Most of these people found no gold and lost everything.
Instead of taking the risky "all or nothing" approach of looking for a big strike, a smart German named Levi Strauss sold basic goods to the miners. It was a much safer, surer way to acquire wealth than trying to hit the motherlode.
Eventually, Strauss started producing a new kind of durable pants for the miners. They became a huge hit and Strauss got rich. Again, Strauss didn't risk it all on trying to find a big strike; he simply sold goods to everyone who was looking for the big strike.
This business model - selling picks and shovels instead of trying to find or produce a commodity - is very powerful. Any time I invest in a sector, I look around for good "picks and shovels" plays.
In the legal marijuana business, there are several ancillary companies that will profit as the addressable market increases. Once such company is Canada-based Namaste Technologies (OTCMKTS: NXTTF ). The $310 million company manufactures and distributes vaporizers, pipes, papers, and other paraphernalia that is used in the ingestion of marijuana.
The company's top product is called Guru. It's used for vaporizing liquids, concentrates and dry herbs. I am sure you have noticed the growth of vape stores in your area - I sure have.
Along with the picks and shovels are the owners of real estate used to grow the marijuana. Innovative Industrial Properties (NYSE: IIPR ) is a $263 million company that is trading at a historic high. Its business model is focused on acquiring specialized properties that are built for marijuana production. The company then leases these properties to state-licensed marijuana producers. Due to the specialization that is needed to outfit a property to correctly grow marijuana, IIPR is able to do the hard work for the producers - at a cost.
Medical Marijuana
Health professionals have used marijuana for its medical benefits for hundreds of years. The compounds in marijuana can be a great help as pain relievers, glaucoma treatments, seizure treatments and in dozens of other situations.
The big name here is GW Pharmaceuticals (NASDAQ: GWPH ), which I have been a fan of for many years. The U.K.-based biotech found out on June 25 that its drug, Epidiolex, became the first cannabis-based FDA-approved drug. The drug will treat epilepsy, and more specifically people who suffer from Dravet and Lennox-Gastaut Syndrome. This news is important for several reasons and is another huge step toward legalization of medical marijuana at the federal level.
I believe the number one outcome of this is that the Drug Enforcement Administration (DEA) will be forced to change marijuana's current status as a level 1 drug. According to the DEA, a level 1 drug has no medicinal purpose, and that clearly is not true. The European Medicines Agency is expected to give its decision regarding approval on Epidiolex by early 2019.
I believe there will be a string of cannabis-related drugs approved for everything from seizures to pain to anxiety in the coming decade. These drugs will produce tens of billions in sales.
Zynerba Pharmaceuticals (NASDAQ: ZYNE ) is also researching the effect of cannabis in several rare disorders that cause seizures. Its pipeline is also going after Tourette's Syndrome and the genetic condition, Fragile X Syndrome. The company is further away from approval, however, a green light for GWPH will boost the entire sector.
Branded Consumer Goods
If you look at the list of the all-time most successful businesses and the all-time best stocks to own, you'll notice that many of them sold - or continue to sell - addictive or habit-forming products.
The list of Hall of Fame stocks that made shareholders rich includes McDonald's (NYSE: MCD ) (addictive fast food), Hershey's (NYSE: HSY ) (addictive chocolate), Starbucks (NASDAQ: SBUX ) (addictive caffeine), Coke (NYSE: KO ) (addictive sugar and caffeine), and Phillip Morris (NYSE: PM ) (addictive cigarettes). Then you have makers of addictive drugs and treatments like Pfizer, Merck, Abbott Labs, and Schering-Plough, all huge stock market winners.
After all, when people form a habit around or become addicted to a product, it goes a long way toward ensuring repeat business. People get used to their favorite brands. They grow resistant to switching. When people get used to a certain brand, they are more likely to continue buying the product even if the price increases a little.
Both of these habits help companies sustain sales growth and healthy profit margins. That's good for shareholders. By the way, sellers of branded, habit-forming consumer goods are the kinds of companies Warren Buffett, the greatest investor in history, is famous for buying.
Unfortunately, public stock investors will have to wait for a high-quality branded marijuana stock. We don't have one yet. But keep an eye out for the company that begins to emerge as a producer of high-quality products that carry the brand power that KIND bars carries in the healthy snacks space … that Stoneyfield carries in organic yogurt … that Annie's has in organic packaged food … or that Kashi has in cereals. I'm confident that any company that achieves this sort of success will produce big gains for its shareholders.
Summing Up
As you can see, you have a variety of ways to invest in marijuana in the coming years. My recommendation is to compile a list of the leaders in each field - the highest quality businesses with strong balance sheets - and look to buy them when they sell at compelling prices.
One last thing…
I didn't mention the absolute best way to play a commodity boom in this essay on purpose. This business model is so brilliant, its profit margins are so high, and it rewards its shareholders so much (in some cases returns on investment are over 20,000%), that it merits an entire essay.
I'll tell you all about this brilliant way to invest tomorrow.
Regards,
Matt McCall
P.S. My team and I recently produced a detailed presentation on what I believe is the absolute best way to invest in legal marijuana right now. It's by investing in a small, sub $1 per share company that is using a totally unique business model. This stock has none of the risks associated with ordinary pot stocks … yet it could make you 10-fold returns over the coming years. Click here to view my presentation.
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The post 6 Marijuana Stocks to Invest In for 1,000%+ Gains appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I believe the number one outcome of this is that the Drug Enforcement Administration (DEA) will be forced to change marijuana's current status as a level 1 drug. According to the DEA, a level 1 drug has no medicinal purpose, and that clearly is not true. By the way, sellers of branded, habit-forming consumer goods are the kinds of companies Warren Buffett, the greatest investor in history, is famous for buying.
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I believe the number one outcome of this is that the Drug Enforcement Administration (DEA) will be forced to change marijuana's current status as a level 1 drug. According to the DEA, a level 1 drug has no medicinal purpose, and that clearly is not true. If you missed the opportunity to make 50 times your money in internet stocks … or if you missed out on the opportunity to make 50 times your money in bitcoin, you're going to want to know how to play weed.
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I believe the number one outcome of this is that the Drug Enforcement Administration (DEA) will be forced to change marijuana's current status as a level 1 drug. According to the DEA, a level 1 drug has no medicinal purpose, and that clearly is not true. Here's a quick overview of your options, including specific companies you may want to keep on your radar… Producers As is the case in any commodity, the obvious way to play marijuana is by owning businesses that produce it.
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I believe the number one outcome of this is that the Drug Enforcement Administration (DEA) will be forced to change marijuana's current status as a level 1 drug. According to the DEA, a level 1 drug has no medicinal purpose, and that clearly is not true. This business model - selling picks and shovels instead of trying to find or produce a commodity - is very powerful.
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723486.0
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2018-06-27 00:00:00 UTC
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DOJ, U.S. Agencies Seize Over $12M Bitcoin in a Slew of Dark Web Busts
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DEA
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https://www.nasdaq.com/articles/doj-u.s.-agencies-seize-over-%2412m-bitcoin-in-a-slew-of-dark-web-busts-2018-06-27
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The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust.
Per the arrests, the agencies confiscated such illicit items as military-grade weapons, drugs and drug manufacturing equipment. They also seized some $3.6 million in hard cash and gold bars, as well as at least 2,000 bitcoin (valued at just over $12 million) and related mining hardware.
According to the Department of Justice's press release , the bust is the culmination of "a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet." Kick-starting the investigation, special agents for the HSI's New York Field Division acted as money launderers on dark web marketplaces like the Silk Road , AlphaBay, Hansa and Dream, among others, exchanging cryptocurrencies for cash.
With these leads, the coalition of federal agencies rooted out an extensive network of black market dealers.
"Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice's Criminal Division, working with more than 40 U.S. Attorney's Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors," the press release states.
In sum, the investigation and subsequent seizures yielded upward of 100 firearms, 15 pill presses, more than 25 kilograms of illegal narcotics and synthetic pharmaceuticals, a few hundred kilograms of marijuana, and nearly $30 million worth of physical and digital assets.
Of the investigation's most notably indicted, nearly all the charged individuals used bitcoin or other cryptocurrencies to some degree in their operations. In one case, the federal officials are seeking the forfeiture of an additional 4,000 bitcoin that they suspect to be tied to online drug sales. If seized, the supplementary stash will put the government's cryptocurrency requisitions just south of $40 million.
"The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit," HSI Acting Executive Associate Director Derek Benner states in the official press release. "The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm's reach of the law."
Announced on Tuesday, June 26, 2018, the investigation's findings coincide with Congress' own efforts to police illicit online trafficking and the use of cryptocurrencies therein. The findings went public just a day after the House of Representatives passed the Fight Illicit Networks and Detect ( FIND ) Trafficking Act of 2018 (H.R. 6069), a bipartisan bill that seeks "to study how virtual currencies and online marketplaces are used to facilitate sex or drug trafficking and propose regulatory and legislative actions to put an end to these illicit activities."
The bill's proposer, Rep. Juan Vargas, expresses in a press release that the House's approval is "an important first step in helping Congress understand the full extent of how virtual currencies are being used to facilitate drug and sex trafficking and will help us propose effective legislative solutions to fight these crimes." As the bill moves up to Congress' upper house, he "[hopes] to see the same level of support for this legislation in the Senate."
In a 2017 National Drug Assessment, the U.S. Drug Enforcement Administration found that cryptocurrencies like Bitcoin, Dash, ZCash and Monero - the last three of which have built-in anonymity protocols - have become increasingly popular payment options for dark web trade. Along with fueling a harrowing human trafficking market, they are also funding marketplaces that are contributing to America's growing opioid crisis, the administration claims.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. With these leads, the coalition of federal agencies rooted out an extensive network of black market dealers. Kick-starting the investigation, special agents for the HSI's New York Field Division acted as money launderers on dark web marketplaces like the Silk Road , AlphaBay, Hansa and Dream, among others, exchanging cryptocurrencies for cash.
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The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. With these leads, the coalition of federal agencies rooted out an extensive network of black market dealers. Kick-starting the investigation, special agents for the HSI's New York Field Division acted as money launderers on dark web marketplaces like the Silk Road , AlphaBay, Hansa and Dream, among others, exchanging cryptocurrencies for cash.
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The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. With these leads, the coalition of federal agencies rooted out an extensive network of black market dealers. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit," HSI Acting Executive Associate Director Derek Benner states in the official press release.
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The U.S. Department of Justice, in cooperation with the Immigration and Customs Enforcement's Homeland Security Investigations (HSI), the Secret Service (USSS), the Postal Inspection Service (USPIS) and the Drug Enforcement Administration ( DEA ), have apprehended more than 35 dark web drugs and arms dealers in a nation-wide bust. With these leads, the coalition of federal agencies rooted out an extensive network of black market dealers. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice's Criminal Division, working with more than 40 U.S. Attorney's Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors," the press release states.
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723487.0
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2018-06-26 00:00:00 UTC
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Why GW Pharmaceuticals Stock Sank After Its Marijuana Drug Won a Historic FDA Approval
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DEA
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https://www.nasdaq.com/articles/why-gw-pharmaceuticals-stock-sank-after-its-marijuana-drug-won-historic-fda-approval-2018
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Here's how it's supposed to work. A biotech wins FDA approval for a promising new drug. The biotech stock then goes up. But that's not what happened for GW Pharmaceuticals (NASDAQ: GWPH) on Monday.
GW Pharmaceuticals got the first part right. The biotech announced FDA approval for cannabidiol drug Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS), both of which are rare forms of epilepsy. However, GW stock didn't go up. Instead, it dropped more than 4%.
Why didn't the stock jump on the great news? Here are three reasons behind GW Pharmaceuticals' drop.
1. Overall market drag
There's an old saying that a rising tide lifts all boats. However, a falling tide also brings all boats down.
I think this was a big factor for GW Pharmaceuticals stock on Monday. Most stocks fell on reports that the Trump administration planned to impose new trade restrictions on China, and potentially other countries.
What do these trade restrictions have to do with Epidiolex? Nothing. The FDA approval allows marketing of the drug only in the U.S., but the market doesn't care about such details. Many simply see that stocks are selling off, so they think they should sell off nearly every stock. It doesn't make sense, but it's what sometimes happens.
2. Approval wasn't a surprise
Would GW Pharmaceuticals stock have gone up if the market wasn't having a down day? Probably, but not necessarily by a large amount.
The approval of Epdiolex was fully expected. In April, an FDA advisory committee voted unanimously to recommend approval for the drug. This vote was based on stellar results from three late-stage clinical studies. The advisory committee couldn't find much not to like about Epidiolex.
While the FDA doesn't have to follow the recommendations of advisory committees, it usually does. An analysis conducted by McKinsey found that the FDA approved a drug in 88% of the cases where an advisory committee had recommended approval.
The actual approval of Epidiolex on Monday removed the sliver of a doubt that might have been in some investors' minds. However, I think that anticipation of an approval was already largely baked into GW Pharmaceuticals' stock price.
3. Now comes the hard part
Another likely reason GW Pharmaceuticals stock didn't enjoy a solid bounce on Monday is that the biotech now faces the hard part -- achieving commercial success for Epidiolex. Actually, there's a hurdle before commercialization that GW must clear first: Epidiolex must be scheduled by the U.S. Drug Enforcement Administration (DEA), a process that can take up to 90 days.
GW Pharmaceuticals will probably begin marketing Epidiolex in the U.S. in early fall. There are three keys to achieving commercial success. First, payers must cover Epidiolex. Second, physicians must prescribe the drug. Third, patients must want to take Epidiolex rather than use medical marijuana instead.
I thought GW Pharmaceuticals executives made some good points at the Bank of America Merrill Lynch 2018 Health Care Conference in May. The company's president of North American operations, Julian Gangolli, stated that payers "get the science" and "understand the value" of Epidiolex. That's key to winning them over to cover the drug. I suspect that if payers cover Epidiolex, physicians will definitely prescribe it because of the unmet medical need in treating epilepsy.
As for patients potentially taking medical marijuana instead of Epidiolex, GW Pharmaceuticals CEO Justin Gover pointed out that the costs of using cannibidiol (CBD) oils at the therapeutic dosages provided with Epidiolex are really high. He thought that patient out-of-pocket costs would be manageable -- and much lower than buying CBD products. I suspect this view is right.
Will GW Pharmaceuticals stock go up?
I think whether or not GW Pharmaceuticals stock does move higher depends entirely on what happens later this year and in 2019. A better-than-expected launch of Epidiolex would likely send shares soaring.
Estimates for peak sales of Epidiolex are all over the map. Pessimists think the figure could be around $300 million. Market research firm EvaluatePharma projects peak sales close to $1 billion. The most optimistic analysts think the drug could make $2 billion or more.
GW Pharmaceuticals' market cap currently stands at close to $4 billion. If the early launch of the drug hints that the optimists could be right, the stock has a lot of room to run even without additional pipeline victories. But anything short of a significant commercial success could cause GW Pharmaceuticals' stock price to sink a lot more than it did on Monday.
10 stocks we like better than GW Pharmaceuticals
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*Stock Advisor returns as of June 4, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Actually, there's a hurdle before commercialization that GW must clear first: Epidiolex must be scheduled by the U.S. Drug Enforcement Administration (DEA), a process that can take up to 90 days. I thought GW Pharmaceuticals executives made some good points at the Bank of America Merrill Lynch 2018 Health Care Conference in May. The company's president of North American operations, Julian Gangolli, stated that payers "get the science" and "understand the value" of Epidiolex.
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Actually, there's a hurdle before commercialization that GW must clear first: Epidiolex must be scheduled by the U.S. Drug Enforcement Administration (DEA), a process that can take up to 90 days. In April, an FDA advisory committee voted unanimously to recommend approval for the drug. Now comes the hard part Another likely reason GW Pharmaceuticals stock didn't enjoy a solid bounce on Monday is that the biotech now faces the hard part -- achieving commercial success for Epidiolex.
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Actually, there's a hurdle before commercialization that GW must clear first: Epidiolex must be scheduled by the U.S. Drug Enforcement Administration (DEA), a process that can take up to 90 days. Approval wasn't a surprise Would GW Pharmaceuticals stock have gone up if the market wasn't having a down day? Now comes the hard part Another likely reason GW Pharmaceuticals stock didn't enjoy a solid bounce on Monday is that the biotech now faces the hard part -- achieving commercial success for Epidiolex.
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Actually, there's a hurdle before commercialization that GW must clear first: Epidiolex must be scheduled by the U.S. Drug Enforcement Administration (DEA), a process that can take up to 90 days. However, GW stock didn't go up. The FDA approval allows marketing of the drug only in the U.S., but the market doesn't care about such details.
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2018-06-18 00:00:00 UTC
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GW Pharmaceuticals’ New Drug Is a Step Toward Marijuana Legalization
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https://www.nasdaq.com/articles/gw-pharmaceuticals-new-drug-is-a-step-toward-marijuana-legalization-2018-06-18
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The news that GW Pharmaceuticals PLC (ADR) (NASDAQ: GWPH ) will soon see Epidiolex, the company's experimental drug that treats epilepsy, is fantastic in and of itself. However, I also believe that the expected approval of the GW Pharma CBD drug by the FDA later this month is another big step in the outright legalization of marijuana by the federal government.
Here's why Epidiolex's approval should matter to everyone participating in the burgeoning cannabis industry and not just GWPH shareholders.
Level the Playing Field
The biggest problem facing the cannabis industry at the moment as it pertains to Cannabidiol (CBD), the main ingredient of Epidiolex, is that hemp-derived CBD is technically considered legal throughout the U.S. as a result of the Agricultural Act of 2014 and exempted from Drug Enforcement Administration (DEA) regulation under a 2006 law, while marijuana-derived CBD is only legal in 30 states and Washington, D.C.
3 Retail Stocks With Red-Hot Setups
So, while hemp-based CBD products are busy rolling out across the country, marijuana-based CBD would still be illegal in a number of states.
"Products and materials that are made from the cannabis plant and which fall outside the CSA definition of marijuana (such as sterilized seeds, oil or cake made from the seeds, and mature stalks) are not controlled under the Controlled Substances Act," stated the June 14 press release from Medical Marijuana Inc (OTCMKTS: MJNA ). "Such products may accordingly be sold and otherwise distributed throughout the United States without restriction under the CSA or its implementing regulations."
The problem with hemp-based CBD avoiding regulatory oversight is that it results in questionable operating practices from some manufacturers.
"I've seen a lot of dirty CBD manufacturing facilities," said Kelvin Harrylall , the CEO of a company called CBD Palace that audits CBD companies. "It's tough to know what you're getting."
GW Pharma CBD Paves Way
Once Epidiolex is approved by the FDA, the Drug Enforcement Administration (DEA) has 90 days to shift CBD from a Schedule 1 drug to a Schedule 2 or 3 drug.
At that point, all CBD manufacturers would have to be registered with the DEA. As a result, it's likely CBD legality at the federal level would happen sooner rather than later.
"I do think CBD will be legalized on the federal level within the next 12 to 18 months," said Cristina Buccola, a New York-based attorney who advises cannabis-related businesses. "There's too much momentum behind it now. You have people with real power and bipartisan support that are in favor of this."
And yet, as it stands now, marijuana and marijuana-based CBDs remain illegal at the federal level.
I believe President Trump will do the right thing and support a new bill that proposes returning decision-making on marijuana to the states while ultimately pushing for the federal legalization of marijuana.
It just makes too much sense because right now, despite the progress made at the state level, the playing field is anything but fair.
3 REITs to Buy in Times of Uncertainty
If the president's goal is to create jobs in America, legalizing the recreational use of marijuana at the federal level, would do just that.
In the meantime, if you own GWPH stock, you've got a lot to look forward to in the second half of the year.
As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
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The post GW Pharmaceuticals' New Drug Is a Step Toward Marijuana Legalization appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Level the Playing Field The biggest problem facing the cannabis industry at the moment as it pertains to Cannabidiol (CBD), the main ingredient of Epidiolex, is that hemp-derived CBD is technically considered legal throughout the U.S. as a result of the Agricultural Act of 2014 and exempted from Drug Enforcement Administration (DEA) regulation under a 2006 law, while marijuana-derived CBD is only legal in 30 states and Washington, D.C. 3 Retail Stocks With Red-Hot Setups So, while hemp-based CBD products are busy rolling out across the country, marijuana-based CBD would still be illegal in a number of states. GW Pharma CBD Paves Way Once Epidiolex is approved by the FDA, the Drug Enforcement Administration (DEA) has 90 days to shift CBD from a Schedule 1 drug to a Schedule 2 or 3 drug. At that point, all CBD manufacturers would have to be registered with the DEA.
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Level the Playing Field The biggest problem facing the cannabis industry at the moment as it pertains to Cannabidiol (CBD), the main ingredient of Epidiolex, is that hemp-derived CBD is technically considered legal throughout the U.S. as a result of the Agricultural Act of 2014 and exempted from Drug Enforcement Administration (DEA) regulation under a 2006 law, while marijuana-derived CBD is only legal in 30 states and Washington, D.C. 3 Retail Stocks With Red-Hot Setups So, while hemp-based CBD products are busy rolling out across the country, marijuana-based CBD would still be illegal in a number of states. GW Pharma CBD Paves Way Once Epidiolex is approved by the FDA, the Drug Enforcement Administration (DEA) has 90 days to shift CBD from a Schedule 1 drug to a Schedule 2 or 3 drug. At that point, all CBD manufacturers would have to be registered with the DEA.
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Level the Playing Field The biggest problem facing the cannabis industry at the moment as it pertains to Cannabidiol (CBD), the main ingredient of Epidiolex, is that hemp-derived CBD is technically considered legal throughout the U.S. as a result of the Agricultural Act of 2014 and exempted from Drug Enforcement Administration (DEA) regulation under a 2006 law, while marijuana-derived CBD is only legal in 30 states and Washington, D.C. 3 Retail Stocks With Red-Hot Setups So, while hemp-based CBD products are busy rolling out across the country, marijuana-based CBD would still be illegal in a number of states. GW Pharma CBD Paves Way Once Epidiolex is approved by the FDA, the Drug Enforcement Administration (DEA) has 90 days to shift CBD from a Schedule 1 drug to a Schedule 2 or 3 drug. At that point, all CBD manufacturers would have to be registered with the DEA.
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Level the Playing Field The biggest problem facing the cannabis industry at the moment as it pertains to Cannabidiol (CBD), the main ingredient of Epidiolex, is that hemp-derived CBD is technically considered legal throughout the U.S. as a result of the Agricultural Act of 2014 and exempted from Drug Enforcement Administration (DEA) regulation under a 2006 law, while marijuana-derived CBD is only legal in 30 states and Washington, D.C. 3 Retail Stocks With Red-Hot Setups So, while hemp-based CBD products are busy rolling out across the country, marijuana-based CBD would still be illegal in a number of states. GW Pharma CBD Paves Way Once Epidiolex is approved by the FDA, the Drug Enforcement Administration (DEA) has 90 days to shift CBD from a Schedule 1 drug to a Schedule 2 or 3 drug. At that point, all CBD manufacturers would have to be registered with the DEA.
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34b9c629-a769-4145-b859-507ecb84e796
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723489.0
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2018-06-06 00:00:00 UTC
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Ex-Dividend Reminder: Easterly Government Properties, Rogers Communications and Kansas City Southern
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DEA
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https://www.nasdaq.com/articles/ex-dividend-reminder-easterly-government-properties-rogers-communications-and-kansas-city
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Easterly Government Properties Inc (Symbol: DEA), Rogers Communications Inc (Symbol: RCI), and Kansas City Southern (Symbol: KSU) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc will pay its quarterly dividend of $0.26 on 6/28/18, Rogers Communications Inc will pay its quarterly dividend of $0.48 on 7/3/18, and Kansas City Southern will pay its quarterly dividend of $0.36 on 7/5/18. As a percentage of DEA's recent stock price of $20.32, this dividend works out to approximately 1.28%, so look for shares of Easterly Government Properties Inc to trade 1.28% lower - all else being equal - when DEA shares open for trading on 6/8/18. Similarly, investors should look for RCI to open 1.01% lower in price and for KSU to open 0.34% lower, all else being equal.
Below are dividend history charts for DEA, RCI, and KSU, showing historical dividends prior to the most recent ones declared.
Easterly Government Properties Inc (Symbol: DEA) :
Rogers Communications Inc (Symbol: RCI) :
Kansas City Southern (Symbol: KSU) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 5.12% for Easterly Government Properties Inc, 4.04% for Rogers Communications Inc, and 1.35% for Kansas City Southern.
In Wednesday trading, Easterly Government Properties Inc shares are currently up about 0.1%, Rogers Communications Inc shares are up about 0.1%, and Kansas City Southern shares are up about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of DEA's recent stock price of $20.32, this dividend works out to approximately 1.28%, so look for shares of Easterly Government Properties Inc to trade 1.28% lower - all else being equal - when DEA shares open for trading on 6/8/18. Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Easterly Government Properties Inc (Symbol: DEA), Rogers Communications Inc (Symbol: RCI), and Kansas City Southern (Symbol: KSU) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for DEA, RCI, and KSU, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Easterly Government Properties Inc (Symbol: DEA), Rogers Communications Inc (Symbol: RCI), and Kansas City Southern (Symbol: KSU) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc (Symbol: DEA) : Rogers Communications Inc (Symbol: RCI) : Kansas City Southern (Symbol: KSU) : In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DEA's recent stock price of $20.32, this dividend works out to approximately 1.28%, so look for shares of Easterly Government Properties Inc to trade 1.28% lower - all else being equal - when DEA shares open for trading on 6/8/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Easterly Government Properties Inc (Symbol: DEA), Rogers Communications Inc (Symbol: RCI), and Kansas City Southern (Symbol: KSU) will all trade ex-dividend for their respective upcoming dividends. Easterly Government Properties Inc (Symbol: DEA) : Rogers Communications Inc (Symbol: RCI) : Kansas City Southern (Symbol: KSU) : In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of DEA's recent stock price of $20.32, this dividend works out to approximately 1.28%, so look for shares of Easterly Government Properties Inc to trade 1.28% lower - all else being equal - when DEA shares open for trading on 6/8/18.
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Looking at the universe of stocks we cover at Dividend Channel , on 6/8/18, Easterly Government Properties Inc (Symbol: DEA), Rogers Communications Inc (Symbol: RCI), and Kansas City Southern (Symbol: KSU) will all trade ex-dividend for their respective upcoming dividends. As a percentage of DEA's recent stock price of $20.32, this dividend works out to approximately 1.28%, so look for shares of Easterly Government Properties Inc to trade 1.28% lower - all else being equal - when DEA shares open for trading on 6/8/18. Below are dividend history charts for DEA, RCI, and KSU, showing historical dividends prior to the most recent ones declared.
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efaf8b90-8b40-4150-b908-abd81f6b2926
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723490.0
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2018-05-17 00:00:00 UTC
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5 Things You'll Want to Know About What Could Be the Biggest Medical Marijuana Drug Ever
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DEA
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https://www.nasdaq.com/articles/5-things-youll-want-know-about-what-could-be-biggest-medical-marijuana-drug-ever-2018-05
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nan
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nan
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Only three drugs based on marijuana have ever been approved by the U.S. Food and Drug Administration (FDA). None of those drugs were actually made from marijuana plants but were instead created using synthetic versions of cannabinoids. None of them have been huge commercial successes either. But a cannabinoid drug that's actually made from marijuana plants and has blockbuster sales potential could soon win approval.
The FDA is scheduled to make a decision by June 27, 2018, on GW Pharmaceuticals ' (NASDAQ: GWPH) cannabidiol (CBD) drug Epidiolex as a treatment for Dravet syndrome and Lennox-Gastaut syndrome (LGS). An FDA advisory committee already unanimously recommended approval for the cannabinoid drug.
Epidiolex is widely expected to be a big seller. Market research firm Evaluate Pharma projects that it will be one of the 10 biggest new drugs launched in 2018 , with sales around $1 billion by 2022.
With the countdown on for the anticipated approval and commercial launch of Epidiolex, GW Pharmaceuticals executives fielded questions on Wednesday at the Bank of America Merrill Lynch 2018 Health Care Conference. Here are five things you'll want to know about what could be the biggest medical marijuana drug ever.
1. When could Epidiolex be available to patients?
There's no guarantee that the FDA will approve Epidiolex. The agency doesn't have to go along with the recommendation of the advisory committee. But the odds of approval appear to be really good. In most cases, the FDA does approve a drug when it's been recommended by an advisory committee.
While an approval decision should be made within the next month or so, GW Pharmaceuticals CEO Justin Gover said that Epidiolex won't be launched in the U.S. until early fall. That's because the drug must be scheduled by the Drug Enforcement Administration (DEA) after it's approved by the FDA. This process can take up to 90 days.
Gover stated that GW continues to believe that Epidiolex will receive no worse than a schedule IV. Drugs under this schedule have a low potential for abuse and low risk of dependence. He mentioned that the FDA advisory committee examined the clinical data for Epidiolex in detail and concluded, like GW's team did, that CBD has a low potential for abuse.
2. What are payers saying?
FDA approval and DEA scheduling are just the first hurdles for GW Pharmaceuticals. The company must also secure payer coverage for Epidiolex. Julian Gangolli, president of GW's North American operations, said that there has been "a lot of discussion with payers going back to 2017."
Gangolli thinks that payers understand the unmet medical need in treating epilepsy. How do they feel about Epidiolex, though? His view is that payers "get the science" and "understand the value" of the drug.
He noted that the three well-controlled phase 3 clinical studies supporting Epidiolex are different than what payers are accustomed to in the orphan drug market. (Orphan drugs treat diseases that affect fewer than 200,000 people in the U.S., or that affect more than 200,000 persons but aren't expected to recover the costs of developing and marketing the drug.) Other orphan drug studies are usually smaller and "not quite as well controlled" as the ones that GW conducted, according to Gangolli.
3. Will GW be able to keep up with demand?
There aren't any FDA-approved treatments for Dravet syndrome. And while there are approved drugs for treating LGS, many patients develop resistance to these drugs. Epidiolex could enjoy strong demand right out of the gate if it's approved, especially if physicians also prescribe the drug for other types of epilepsy that aren't on the product label.
Justin Gover was clear about GW Pharmaceuticals' intention to promote Epidiolex only for the two approved indications. However, he added that the company "is mindful of the level of unmet need." Gover said that GW should be in good shape to meet projected demand for the first two years with its current production facilities, which have already been inspected by the FDA. After the second year following anticipated approval, the company will have added capacity.
4. How much will patients have to pay out of pocket?
GW Pharmaceuticals hasn't announced the pricing for Epidiolex. However, Gangolli noted the price tags for two current LGS drugs on the market. Onfi costs roughly $21,000 to $22,000 per year on a weighted average basis, while Banzel costs around $32,000 per year. It seems likely that GW will price Epidiolex competitively with these two other products.
What about how much patients will have to pay out of pocket? That depends on the type of coverage. Gangolli stated that around 55% of Epidiolex patients would likely be on Medicaid or Medicare. These patients usually have drug copays between $5 and $10. Gangolli acknowledged that Medicaid and Medicare copays can sometimes be more, but that they should "be affordable."
As for the patients on private insurance, the out-of-pocket costs will be specific to each plan. Gangolli mentioned, though, that copays for Banzel and Onfi could be as high as the $180-$200 range, but that many were between $50 and $80.
5. Could many patients choose medical marijuana instead of Epidiolex?
Is it possible that medical marijuana could be more popular with patients than Epidiolex? Justin Gover's immediate response was that "first and foremost, this [epilepsy] is not a trivial disease" and that patients "should be under appropriate medical care."
Perhaps the most important reason why Epidiolex shouldn't be threatened by medical marijuana too much, though, is the financial consideration. Gover noted that non-FDA-approved CBD oils aren't cheap. He also stressed that the "therapeutic dosage required is pretty sizable." The costs to patients to try to replicate the dosage of Epidiolex with other CBD oils would be very high.
At the same time, GW Pharmaceuticals fully expects to secure payer coverage for Epidiolex. Patients would only need to pay copays for the drug, which would make it much more cost-effective than buying CBD products that insurers don't cover.
Looking ahead
GW Pharmaceuticals stock will likely enjoy a boost if the FDA approves Epidiolex as expected. The key thing to watch immediately following this anticipated approval is the DEA classification of the drug. Should Epidiolex win a less restrictive classification than schedule IV, GW would probably have another positive catalyst.
The most important thing for investors, though, is how well the expected commercial launch of Epidiolex goes. GW Pharmaceuticals appears to be in good position to quickly hire and train a sales team. The big question will be how favorably payers view Epidiolex. Their reactions will have a significant impact on Epidiolex sales -- and on GW Pharmaceuticals stock.
10 stocks we like better than GW Pharmaceuticals
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's because the drug must be scheduled by the Drug Enforcement Administration (DEA) after it's approved by the FDA. FDA approval and DEA scheduling are just the first hurdles for GW Pharmaceuticals. The key thing to watch immediately following this anticipated approval is the DEA classification of the drug.
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That's because the drug must be scheduled by the Drug Enforcement Administration (DEA) after it's approved by the FDA. FDA approval and DEA scheduling are just the first hurdles for GW Pharmaceuticals. The key thing to watch immediately following this anticipated approval is the DEA classification of the drug.
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That's because the drug must be scheduled by the Drug Enforcement Administration (DEA) after it's approved by the FDA. FDA approval and DEA scheduling are just the first hurdles for GW Pharmaceuticals. The key thing to watch immediately following this anticipated approval is the DEA classification of the drug.
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FDA approval and DEA scheduling are just the first hurdles for GW Pharmaceuticals. That's because the drug must be scheduled by the Drug Enforcement Administration (DEA) after it's approved by the FDA. The key thing to watch immediately following this anticipated approval is the DEA classification of the drug.
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4d5f5ead-ab47-4eff-89f1-a39506343647
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723491.0
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2018-05-12 00:00:00 UTC
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4 Must-Read Quotes on Marijuana From DEA Head Robert Patterson
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DEA
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https://www.nasdaq.com/articles/4-must-read-quotes-marijuana-dea-head-robert-patterson-2018-05-12
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nan
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nan
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The marijuana industry is growing by leaps and bounds in North America. Cannabis research firm ArcView, in partnership with BDS Analytics, found that legal pot sales soared 33% in 2017 to $9.7 billion. A decade from now, ArcView sees North American sales topping an estimated $47 billion.
This impressive growth is due to a combination of state- and country-level expansion, as well as a general shift in the way people perceive cannabis.
Regarding the former, Mexico legalized medical marijuana in June 2017, 29 U.S. states have legalized cannabis in some capacity since 1996, and Canada appears to be on the verge of passing the Cannabis Act, which would make it the first developed country in the world to have legalized adult-use marijuana. As expansion continues, sales for growers and ancillary pot industry businesses are expected to soar.
Meanwhile, national pollster Gallup found that nearly two-thirds of the American public favored the idea of legalizing marijuana in its October 2017 survey. That's up from just 25% in 1995, the year before California became the first state to legalize medical cannabis for compassionate-use patients.
Cannabis is stuck in the mud in the U.S.
But despite this growth and the apparent shift in the public's opinion, marijuana remains a Schedule I drug at the federal level in the United States. As a Schedule I substance, cannabis is wholly illegal, considered to be highly prone to abuse, and has no recognized medical benefits.
This classification also comes with some pretty serious disadvantages for marijuana businesses operating in one of the 29 states that have legalized the drug in some capacity. For instance, pot-based businesses usually have little or no access to basic banking services. This is because financial institutions fear the monetary or legal repercussions of aiding a business that sells a federally illegal substance.
Also, should marijuana companies be profitable, U.S. tax code 280E disallows them the ability to take normal corporate income-tax deductions. This can lead to an effective tax rate of as high as 90%!
Make no mistake about it, the U.S. Drug Enforcement Agency (DEA) had its opportunity to reschedule or deschedule cannabis in the summer of 2016 after two petitions worked their way up the ranks, but the drug-regulatory agency chose to stand pat on its policy . The DEA wound up citing insufficient benefit data from clinical trials, and the fear of abuse, as reasons to keep marijuana listed next to heroin and LSD.
Here's what the head of the DEA just said about marijuana
If marijuana is still be decriminalized at the federal level, change is going to have to come either from lawmakers or the DEA.
This past week, DEA Acting Administrator Robert Patterson answered a barrage of questions regarding the opioid epidemic in America from the House Judiciary Committee. For those unaware, opioids are claiming approximately 115 lives a day in the U.S. as a result of overdose-related deaths. In numerous instances, these questions were pivoted to discussions about marijuana, which is viewed by some folks as a solution to lessen the severity of the opioid crisis. Here are the four most notable things Patterson had to say about cannabis when questioned by lawmakers, courtesy of Marijuana Moment .
"The reason why it remains in Schedule I is the science."
This comment from Patterson, in response to a line of questioning from Rep. Steve Cohen (D-Tenn.), reinforces the agency's stance that it took nearly two years ago in keeping cannabis wholly illegal. Though the DEA head did suggest that he and the agency are all for additional clinical trials and research being run with regard to medical marijuana, efforts to do so have been bogged down by the U.S. Justice Department.
Despite pledging to increase the number of federally approved grow facilities, the Justice Department, headed by staunch cannabis opponent Jeff Sessions, hasn't approved any of the more than two dozen proposals for new grow sites. Given that there's only one approved federal grow facility in the country -- the University of Mississippi -- it makes gaining access to cannabis to run clinical trials exceptionally challenging. And, without this clinical data, the DEA is unwilling to budge on its Schedule I classification.
"At what point did we determine that revenue was more important than our kids?"
Also while speaking with Rep. Cohen, Patterson uttered the phrase above. Among skeptics and opponents of expansion, it's a somewhat common belief that dollar signs are driving progressivism in the industry. Considering that a number of states have budgets that are running in the red, and most cannabis tax revenue is being used to fund school and law enforcement budgets, these skeptics would seem to have a point.
Then again, a modest majority of the American public believes that legalizing marijuana in order to boost tax revenue would be a good idea , according to an April 2018 poll from the independent Quinnipiac University. When questioned, 54% of respondents suggested that legalizing marijuana with the purpose of increasing tax revenue in their state would be a good idea, compared to just 42% who disagreed.
Marijuana and opioids are "not comparable."
Interestingly enough, when questioned by Rep. Hank Johnson (D-Ga.), Patterson made quite the important admission. Johnson, in an attempt to elicit a response from the DEA head on the number of deaths brought about annually by cannabis-related overdoses, was able to get Patterson to admit that marijuana and opioids aren't comparable drugs.
According to published data over the past couple of years, there hasn't been a recorded overdose-related death tied to cannabis. Meanwhile, as noted above, roughly 115 Americans are dying daily due to opioid-related overdose deaths. Though the DEA chief isn't exactly saying that cannabis should be used in place of opioids -- in fact, Patterson denied having read a number of recent reports suggesting that cannabis may be an opioid substitute -- he does recognize that the end result of abuse for opioids appears to be much worse relative to cannabis misuse.
He wouldn't "say [marijuana is] a gateway [drug]."
Finally, for those of you who would prefer to see cannabis legalized nationally, when questioned by Rep. Eric Swalwell (D-Calif.), Patterson did comment that he doesn't view marijuana as a gateway drug. This admission would appear to leave open the possibility for a rescheduling or descheduling at some point in the future.
Furthermore, when Quinnipiac's April 2018 poll asked respondents whether they felt marijuana was a gateway drug, 61% said no. This shows that the DEA head and the American public do actually align on one core cannabis topic.
Of course, the key takeaway remains that change at the federal level is probably a long ways off. The decision to keep cannabis as a Schedule I drug will likely stymie growth in the U.S. market and make U.S.-focused pot stocks dangerous investments.
10 stocks we like better than Walmart
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The author(s) may have a position in any 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This past week, DEA Acting Administrator Robert Patterson answered a barrage of questions regarding the opioid epidemic in America from the House Judiciary Committee. Then again, a modest majority of the American public believes that legalizing marijuana in order to boost tax revenue would be a good idea , according to an April 2018 poll from the independent Quinnipiac University. Johnson, in an attempt to elicit a response from the DEA head on the number of deaths brought about annually by cannabis-related overdoses, was able to get Patterson to admit that marijuana and opioids aren't comparable drugs.
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Meanwhile, national pollster Gallup found that nearly two-thirds of the American public favored the idea of legalizing marijuana in its October 2017 survey. Make no mistake about it, the U.S. Drug Enforcement Agency (DEA) had its opportunity to reschedule or deschedule cannabis in the summer of 2016 after two petitions worked their way up the ranks, but the drug-regulatory agency chose to stand pat on its policy . The DEA wound up citing insufficient benefit data from clinical trials, and the fear of abuse, as reasons to keep marijuana listed next to heroin and LSD.
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Though the DEA chief isn't exactly saying that cannabis should be used in place of opioids -- in fact, Patterson denied having read a number of recent reports suggesting that cannabis may be an opioid substitute -- he does recognize that the end result of abuse for opioids appears to be much worse relative to cannabis misuse. Meanwhile, national pollster Gallup found that nearly two-thirds of the American public favored the idea of legalizing marijuana in its October 2017 survey. Make no mistake about it, the U.S. Drug Enforcement Agency (DEA) had its opportunity to reschedule or deschedule cannabis in the summer of 2016 after two petitions worked their way up the ranks, but the drug-regulatory agency chose to stand pat on its policy .
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Meanwhile, national pollster Gallup found that nearly two-thirds of the American public favored the idea of legalizing marijuana in its October 2017 survey. Make no mistake about it, the U.S. Drug Enforcement Agency (DEA) had its opportunity to reschedule or deschedule cannabis in the summer of 2016 after two petitions worked their way up the ranks, but the drug-regulatory agency chose to stand pat on its policy . The DEA wound up citing insufficient benefit data from clinical trials, and the fear of abuse, as reasons to keep marijuana listed next to heroin and LSD.
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262b4257-e508-4105-9587-f8025a5e5afb
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723492.0
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2018-05-09 00:00:00 UTC
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I Was Flat-Out Wrong About This Marijuana Stock
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DEA
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https://www.nasdaq.com/articles/i-was-flat-out-wrong-about-marijuana-stock-2018-05-09
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nan
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nan
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It's mea culpa time.
In October 2017, I predicted that Insys Therapeutics (NASDAQ: INSY) could be the biggest comeback story of 2018 . For a while, it looked like I was on the right track. Insys stock soared in the fourth quarter of 2017. By early January, it was one of the hottest marijuana stocks on the market. Then the momentum evaporated.
Insys announced its first-quarter earnings results after the market closed on Tuesday. After looking at where things now stand for the biotech, I must admit that I was flat-out wrong about this marijuana stock. To put it bluntly, a comeback probably ain't gonna happen for Insys this year. There are three key reasons why.
1. Still no light at the end of the tunnel for Subsys
I thought that sales could stabilize in 2018 for Insys' transmucosal immediate-release fentanyl (TIRF) product Subsys. TIRF drugs are opioids, which have come under heavy fire due to the opioid epidemic in the U.S. To say that it's been a bad couple of years for drugmakers selling opioids is an understatement.
However, Insys CEO Saeed Motahari noted late last year that the rate of decline for Subsys sales appeared to be slowing down. That, combined with the inclusion of Subsys as the preferred TIRF product on the formularies of two of the largest pharmacy benefits managers in the country and one of the top health insurers beginning in January, made me think that sales could stabilize in 2018.
But Insys just reported that its Q1 revenue dropped nearly 26% year over year to $38.5 million. Net revenue, which includes the impact of product returns, plunged nearly 34% below the prior-year period to $23.9 million. This net revenue total also reflected a 24% decline from 2017 Q4. Since most of Insys' revenue still comes from Subsys, it's clear that the drug's sales aren't stabilizing yet.
2. Syndros isn't gaining momentum
Insys won Food and Drug Administration approval for its first cannabinoid drug, Syndros, in July 2016. However, the company didn't actually launch the drug until a year later after waiting on the U.S. Drug Enforcement Agency (DEA) and a final label for Syndros from the FDA.
When Insys reported its Q4 results , sales for Syndros were around $800,000. I expected that it would take a while for Syndros to pick up sales momentum. But I did expect some momentum. Based on Insys' Q1 update, though, there is little if any momentum. Motahari stated that "prescriptions of Syndros remained relatively flat in the first quarter."
The drug is the only liquid form of dronabinol approved for treating anorexia associated with weight loss in AIDS patients and nausea and vomiting associated with chemotherapy in cancer patients. As a liquid, Syndros allows for fast absorption, flexible dosing, and is a good option for patients who have difficulty swallowing tablets or capsules.
So why hasn't the drug enjoyed greater success? The problem appears to be that payers don't want to pick up the tab. Dronabinol is available in generic form at around one-fourth the cost of Syndros. While Motahari said that Insys continues "to have discussions with managed care providers," it doesn't seem like those discussions are bearing much fruit yet.
3. Investigation concerns still linger
Motahari listed resolving government investigations into past marketing practices for Subsys and rebuilding Insys' reputation as the company's No. 1 priority. He said the same thing in November 2017. So far, though, the investigations continue to be a dark cloud hanging over Insys.
I don't fault Insys' current management for these issues. The executives that led the company during the days when Insys allegedly engaged in illegal marketing practices are long gone now. So are most of the sales representatives who were with the company during that period. Motahari seems to have done a pretty good job of implementing processes to prevent these kinds of issues from recurring.
Still, there's no way to know how much Insys will have to pay to reach a settlement or how long it will take. The company set aside $150 million in the third quarter as a minimum liability in connection with the U.S. Department of Justice investigation. That might not be nearly enough to cover the actual cost of settling, though.
Throwing in the towel?
I no longer think that Insys will make a significant comeback in 2018. The biotech still faces too many challenges.
That being said, I'm not completely throwing in the towel on Insys. With new products on the way, Insys could eventually turn things around. And with more than 40% of its outstanding shares sold short, it would only take a little bit of good news to create a short squeeze scenario for the stock.
However, I wouldn't hold my breath waiting for Insys to report good news that could provide a catalyst -- at least not this year. For now, there are better stocks for investors to buy with far fewer headwinds.
10 stocks we like better than Insys Therapeutics
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, the company didn't actually launch the drug until a year later after waiting on the U.S. Drug Enforcement Agency (DEA) and a final label for Syndros from the FDA. However, Insys CEO Saeed Motahari noted late last year that the rate of decline for Subsys sales appeared to be slowing down. That, combined with the inclusion of Subsys as the preferred TIRF product on the formularies of two of the largest pharmacy benefits managers in the country and one of the top health insurers beginning in January, made me think that sales could stabilize in 2018.
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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. However, the company didn't actually launch the drug until a year later after waiting on the U.S. Drug Enforcement Agency (DEA) and a final label for Syndros from the FDA. In October 2017, I predicted that Insys Therapeutics (NASDAQ: INSY) could be the biggest comeback story of 2018 .
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However, the company didn't actually launch the drug until a year later after waiting on the U.S. Drug Enforcement Agency (DEA) and a final label for Syndros from the FDA. Since most of Insys' revenue still comes from Subsys, it's clear that the drug's sales aren't stabilizing yet. Syndros isn't gaining momentum Insys won Food and Drug Administration approval for its first cannabinoid drug, Syndros, in July 2016.
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However, the company didn't actually launch the drug until a year later after waiting on the U.S. Drug Enforcement Agency (DEA) and a final label for Syndros from the FDA. Since most of Insys' revenue still comes from Subsys, it's clear that the drug's sales aren't stabilizing yet. When Insys reported its Q4 results , sales for Syndros were around $800,000.
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b765e25f-d515-441b-9680-fb499c349284
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723493.0
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2018-05-09 00:00:00 UTC
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The Only 2 Numbers in This Top Marijuana Stock's Q2 Results That Matter
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https://www.nasdaq.com/articles/only-2-numbers-top-marijuana-stocks-q2-results-matter-2018-05-09
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nan
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nan
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Normally, when a company reports its quarterly results, investors are eager to find out how much revenue and earnings growth was achieved. But for GW Pharmaceuticals (NASDAQ: GWPH) , those metrics are pretty much irrelevant.
The cannabinoid-focused biotech announced its second-quarter results after the market closed on Tuesday. For what it's worth, GW Pharmaceuticals posted revenue totaling $3.35 million, a 47% jump over the prior-year period. And the company reported a net loss of $88 million, much worse than the net loss announced in 2017 Q2.
Again, though, GW's top- and bottom-line figures really aren't important. There are only two numbers in the company's Q2 results that matter.
6-27-2018
By far, the most important number in GW Pharmaceuticals' Q2 update was a date. The U.S. Food and Drug Administration (FDA) is scheduled to announce an approval decision on cannabidiol (CBD) epilepsy drug Epidiolex on June 27, 2018.
It would be stretching the truth a bit to say that Epidiolex is a slam dunk for FDA approval. However, the drug's prospects look really good. Just a couple of weeks ago, an FDA advisory committee voted unanimously in support of recommending Epidiolex for approval in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS), both rare forms of childhood-onset epilepsy. The FDA isn't bound by this recommendation, but the agency does usually follow the lead of its advisory committees.
The upcoming FDA decision will be a milestone for medical marijuana. Only three cannabinoid drugs have won FDA approval -- ever. All three of them, though, are based on synthetic forms of chemicals contained in marijuana. If approved, Epidiolex would be the first prescription drug in the U.S. actually derived from marijuana plants.
Epidiolex could also be first in another category. So far, no drug has been approved by the FDA for treating Dravet syndrome. On the other hand, there are approved treatments for LGS. However, many patients develop resistance to these drugs, so there should be a significant opportunity for Epidiolex in the indication if it wins FDA approval.
$487.2 million
The other key number for GW Pharmaceuticals in its Q2 earnings release was its cash position. As of March 31, 2018, the biotech had $487.2 million in cash and cash equivalents.
Why is this cash stockpile so important? GW Pharmaceuticals is still losing a lot of money. The company's accumulated cash should enable GW to fund operations at least into the first half of 2019 at current levels of spending. However, it seems likely that spending will increase as GW Pharmaceuticals launches Epidiolex, assuming it wins FDA approval as expected.
Whether or not GW Pharmaceuticals has to generate more cash through a stock offering hinges on how quickly Epidiolex gains traction. The company appears to be in pretty good shape for the drug to get off to a good start. GW already has its U.S. sales leadership team in place and is preparing for a launch. The biotech has also actively engaged with U.S. payers in anticipation of approval for Epidiolex.
However, GW Pharmaceuticals won't be able to begin selling Epidiolex immediately after approval by the FDA. The company must first wait for the U.S. Drug Enforcement Administration (DEA) to schedule the drug under current federal controlled substance regulations. That process should be completed within 90 days of FDA approval. GW hopes to launch Epidiolex in the U.S. by October.
Another number should soon be very important
GW Pharmaceuticals' revenue and earnings figures won't matter too much in the third and fourth quarters of its fiscal year, either. But it should be a much different story when the quarter ending Dec. 31, 2018, rolls around.
Market research firm EvaluatePharma predicts that Epidiolex will be one of the top 10 biggest new drugs launched this year . The firm projects that the drug will generate sales of close to $1 billion by 2022. However, other sales projections for Epidiolex are all over the map. The most pessimistic analyst thinks the drug will make only $300 million per year at its peak, while others peg peak sales at more than $2 billion.
Like many investors, I think Epidiolex will win FDA approval. Also like many investors, I look forward to seeing the early sales figures for Epidiolex later this year. My take is that the drug should become a blockbuster within the next few years. If so, GW Pharmaceuticals stock still has room to move higher. But if the optimistic views of Epidiolex's potential are on target, GW is a marijuana stock that could be a really big winner in the future.
10 stocks we like better than GW Pharmaceuticals
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*Stock Advisor returns as of May 8, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company must first wait for the U.S. Drug Enforcement Administration (DEA) to schedule the drug under current federal controlled substance regulations. Normally, when a company reports its quarterly results, investors are eager to find out how much revenue and earnings growth was achieved. The company's accumulated cash should enable GW to fund operations at least into the first half of 2019 at current levels of spending.
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The company must first wait for the U.S. Drug Enforcement Administration (DEA) to schedule the drug under current federal controlled substance regulations. The U.S. Food and Drug Administration (FDA) is scheduled to announce an approval decision on cannabidiol (CBD) epilepsy drug Epidiolex on June 27, 2018. Just a couple of weeks ago, an FDA advisory committee voted unanimously in support of recommending Epidiolex for approval in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS), both rare forms of childhood-onset epilepsy.
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The company must first wait for the U.S. Drug Enforcement Administration (DEA) to schedule the drug under current federal controlled substance regulations. The U.S. Food and Drug Administration (FDA) is scheduled to announce an approval decision on cannabidiol (CBD) epilepsy drug Epidiolex on June 27, 2018. However, it seems likely that spending will increase as GW Pharmaceuticals launches Epidiolex, assuming it wins FDA approval as expected.
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The company must first wait for the U.S. Drug Enforcement Administration (DEA) to schedule the drug under current federal controlled substance regulations. $487.2 million The other key number for GW Pharmaceuticals in its Q2 earnings release was its cash position. Another number should soon be very important GW Pharmaceuticals' revenue and earnings figures won't matter too much in the third and fourth quarters of its fiscal year, either.
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76de3984-a777-4cb4-a8b8-a66220fa96ad
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723494.0
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2018-05-06 00:00:00 UTC
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Better Marijuana Stock: Canopy Growth vs. GW Pharmaceuticals
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https://www.nasdaq.com/articles/better-marijuana-stock-canopy-growth-vs-gw-pharmaceuticals-2018-05-06
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nan
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nan
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They're the giants among marijuana stocks. But they're as different as night and day.
Canopy Growth (NASDAQOTH: TWMJF) ranks as the biggest pure-play marijuana stock on the planet right now, with a market cap of $4.6 billion. GW Pharmaceuticals (NASDAQ: GWPH) comes in second with a market cap of $3.8 billion. The former is the largest Canadian supplier of medical marijuana, while the latter is a cannabinoid-focused biotech.
Which of these two is the better marijuana stock? Here's how Canopy Growth and GW Pharmaceuticals compare.
The case for Canopy Growth
Investors have flocked to Canopy Growth for three primary reasons. One is that the medical marijuana market in the company's home country of Canada is growing like a weed (pardon the pun). Canopy Growth's sales soared more than 120% year over year in its latest quarter, with most of its revenue stemming from domestic medical cannabis sales. The Canadian medical marijuana market should continue to be a strong source of growth for Canopy, with total annual sales in the industry projected to more than triple by 2024.
But an even bigger opportunity for Canopy Growth could be just around the corner. Canada appears to be on track to legalize recreational use of marijuana later this year. Estimates vary on just how big the market might be , but $6 billion annually isn't unrealistic. Canopy Growth should be well-positioned to capture a significant chunk of that market.
The company doesn't only have its targets focused on its home front. Canopy Growth already has a nice foothold in the German medical marijuana market, thanks to its 2016 acquisition of MedCann. With a population more than twice the size of Canada, Germany presents a huge opportunity for the company. Canopy has also expanded operations through partnerships and joint ventures into several other countries, including Australia, Brazil, Chile, Denmark, Jamaica, and Spain.
Canopy Growth's success hasn't gone unnoticed by even bigger companies. S&P 500 member Constellation Brands , which distributes Corona Beer and a long list of other alcoholic beverages, bought a 9.9% stake in Canopy for $245 million last year. The two companies plan to partner on launching a cannabis-infused beer.
One area where Canopy Growth doesn't have its sights set for now, though, is the U.S. Canopy stock is listed on the Toronto Stock Exchange, which has listing regulations prohibiting marijuana growers from having significant operations in the U.S. because of federal laws prohibiting the sale and use of the drug. Should those U.S. laws change, it would present yet another major opportunity for Canopy to grow.
The case for GW Pharmaceuticals
GW Pharmaceuticals developed the world's first plant-derived cannabinoid prescription drug Sativex. The drug is approved in multiple countries for treating spasticity associated with multiple sclerosis, although the U.S. isn't one of those countries. But Sativex isn't the primary attraction for investors.
Within the next two months, GW Pharmaceuticals could win FDA approval for the drug that is the primary reason investors like the stock -- Epidiolex. The cannabinoid targets treatment of two rare forms of childhood-onset epilepsy -- Dravet syndrome and Lennox-Gastaut syndrome (LGS).
A few weeks ago, an FDA advisory committee voted unanimously to recommend that Epidiolex be approved for both targeted indications. While the FDA doesn't have to abide by that recommendation, it certainly appears likely that the drug will receive a thumbs-up.
GW Pharmaceuticals' next step would be to secure scheduling of Epidiolex by the U.S. Drug Enforcement Administration (DEA), which should take no longer than 90 days after FDA approval. The biotech hopes to launch Epidiolex by September of this year.
Market research firm EvaluatePharma thinks that Epidiolex will be one of the 10 biggest new drug launches of 2018 . The firm projects that the drug will generate annual sales of close to $1 billion by 2022.
GW is also evaluating Epidiolex in clinical studies targeting two other indications -- tuberous sclerosis and infantile spasms. In addition, the company's pipeline includes cannabinoid candidates for the treatment of autism spectrum disorders, glioblastoma, and schizophrenia.
Better marijuana stock
There's no question in my mind that sales will soar for both Canopy Growth and GW Pharmaceuticals. Both which is the better growth stock? It comes down to the potential market sizes for each company.
I suspect that GW Pharmaceuticals could achieve the $1 billion annual sales level with Epidiolex. If the biotech wins more approvals beyond the first two indications for the drug, GW's sales could go even higher.
But I think that the potential market for Canopy Growth is even greater. If the company can claim 20% or more market share of the recreational marijuana market in Canada, the company's sales should increase to at least $1.5 billion annually. The international medical marijuana market opportunities should be much larger than Canopy's domestic marijuana market, including both medical and recreational use.
Canopy's market cap is currently around 20% higher than GW's market cap. However, my view is that Canopy's potential annual market is at least double the size of GW's market. The math is straightforward: I think Canopy Growth is the better marijuana stock.
Keep in mind, though, that both of these stocks have significant risks. For GW Pharmaceuticals, there's the possibility that the commercial launch of Epidiolex doesn't go as well as hoped or that rival drugs win approval. For Canopy, there's the potential of delays or roadblocks in the legalization of recreational marijuana and the possibility of supply demand imbalances. While I view Canopy Growth as the better marijuana stock of the two, it probably isn't the best choice for risk-averse investors.
10 stocks we like better than Canopy Growth Corporation
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now...and Canopy Growth Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 2, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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GW Pharmaceuticals' next step would be to secure scheduling of Epidiolex by the U.S. Drug Enforcement Administration (DEA), which should take no longer than 90 days after FDA approval. The Canadian medical marijuana market should continue to be a strong source of growth for Canopy, with total annual sales in the industry projected to more than triple by 2024. Canopy has also expanded operations through partnerships and joint ventures into several other countries, including Australia, Brazil, Chile, Denmark, Jamaica, and Spain.
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GW Pharmaceuticals' next step would be to secure scheduling of Epidiolex by the U.S. Drug Enforcement Administration (DEA), which should take no longer than 90 days after FDA approval. One is that the medical marijuana market in the company's home country of Canada is growing like a weed (pardon the pun). Within the next two months, GW Pharmaceuticals could win FDA approval for the drug that is the primary reason investors like the stock -- Epidiolex.
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GW Pharmaceuticals' next step would be to secure scheduling of Epidiolex by the U.S. Drug Enforcement Administration (DEA), which should take no longer than 90 days after FDA approval. One area where Canopy Growth doesn't have its sights set for now, though, is the U.S. Canopy stock is listed on the Toronto Stock Exchange, which has listing regulations prohibiting marijuana growers from having significant operations in the U.S. because of federal laws prohibiting the sale and use of the drug. Better marijuana stock There's no question in my mind that sales will soar for both Canopy Growth and GW Pharmaceuticals.
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GW Pharmaceuticals' next step would be to secure scheduling of Epidiolex by the U.S. Drug Enforcement Administration (DEA), which should take no longer than 90 days after FDA approval. Which of these two is the better marijuana stock? Both which is the better growth stock?
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65ac43a4-760d-406c-b06d-86b6ed293945
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723495.0
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2018-04-09 00:00:00 UTC
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New “Know-Your-Transaction” Tool Enables Enhanced Blockchain Investigation
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https://www.nasdaq.com/articles/new-know-your-transaction-tool-enables-enhanced-blockchain-investigation-2018-04-09
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nan
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Cryptocurrency investigation enterprise Chainalysis is releasing a product called Know Your Transaction (KYT) designed to help businesses track customers that may be involved in illicit cryptocurrency-related activity. The company's clientele includes the Federal Bureau of Investigation (FBI) , the Drug Enforcement Administration ( DEA ) and Europol .
Per a recent blog post , Chainalysis stated that it holds a lot of faith in both cryptocurrencies and blockchain technology:
"Blockchains create new ways for people to build trust among themselves and transact using cryptocurrencies. Cryptocurrencies have, in turn, inspired people to reimagine the financial machinery that powers world commerce. People are collecting land in virtual realities, conducting real-time payments for computation services, and buying collectible cats on the internet. This is just the beginning of worldwide access to financial instruments."
The venture's primary goal is to get banks involved in the cryptocurrency scene and to create a world where financial institutions can offer their services to digital currency exchanges and ventures, but alleged fears of money-laundering make this somewhat tricky, which explains the reasoning behind the product's release.
Chainalysis' KYT provides "real-time feedback" on transactions and fuels relevant information into what the company calls exchanges' "transaction processing engines," so executives can raise alerts regarding risky customers and monitor suspicious activity. The product has been in a testing phase amongst a small group of select customers, who reported seeing a "20X improvement in the speed of account reviews." KYT will now be released to global cryptocurrency exchanges and financial institutions.
In addition, the company is also introducing multi-currency support. Chainalysis will start with bitcoin cash for its law enforcement customers and is looking to expand to 10 cryptocurrencies by the end of 2018.
Chainalysis recently landed approximately $16 million in series A funding from venture firm Benchmark, whose only other cryptocurrency-related investments include Pantera Capital and Xapo back in 2014.
General partner Sarah Tavel, who led the deal with Chainalysis, explained that the move was a smart choice, and called Chainalysis a "meat and potatoes" company:
"All these regulated institutions want to participate [in cryptocurrency transactions], but they need to understand with whom they are transacting and where their funds are originating. We'd solved these traditional compliance requirements in the fiat world."
Chainalysis was founded in 2014 by Oxford economist Jonathan Levin and Michael Granger, the former COO of San Francisco-based bitcoin exchange Kraken. The company employs over 75 people and boasts offices in New York, Washington D.C. and Copenhagen.
Chainalysis rose to fame after it was selected to investigate Japan's Mt. Gox debacle, which saw roughly half a billion dollars worth of cryptocurrency disappear practically overnight. The reported mastermind is an alleged Russian cybercrime suspect who was arrested in Greece last summer .
Chainalysis isn't alone in this space. London-based Elliptic, which also runs investigations relating to cryptocurrencies, has garnered over $7 million in funding from institutions like Banco Santander bank and Octopus Ventures to further expand its operations and product development team.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's clientele includes the Federal Bureau of Investigation (FBI) , the Drug Enforcement Administration ( DEA ) and Europol . General partner Sarah Tavel, who led the deal with Chainalysis, explained that the move was a smart choice, and called Chainalysis a "meat and potatoes" company: "All these regulated institutions want to participate [in cryptocurrency transactions], but they need to understand with whom they are transacting and where their funds are originating. Cryptocurrency investigation enterprise Chainalysis is releasing a product called Know Your Transaction (KYT) designed to help businesses track customers that may be involved in illicit cryptocurrency-related activity.
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The company's clientele includes the Federal Bureau of Investigation (FBI) , the Drug Enforcement Administration ( DEA ) and Europol . General partner Sarah Tavel, who led the deal with Chainalysis, explained that the move was a smart choice, and called Chainalysis a "meat and potatoes" company: "All these regulated institutions want to participate [in cryptocurrency transactions], but they need to understand with whom they are transacting and where their funds are originating. Cryptocurrency investigation enterprise Chainalysis is releasing a product called Know Your Transaction (KYT) designed to help businesses track customers that may be involved in illicit cryptocurrency-related activity.
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General partner Sarah Tavel, who led the deal with Chainalysis, explained that the move was a smart choice, and called Chainalysis a "meat and potatoes" company: "All these regulated institutions want to participate [in cryptocurrency transactions], but they need to understand with whom they are transacting and where their funds are originating. The company's clientele includes the Federal Bureau of Investigation (FBI) , the Drug Enforcement Administration ( DEA ) and Europol . Cryptocurrency investigation enterprise Chainalysis is releasing a product called Know Your Transaction (KYT) designed to help businesses track customers that may be involved in illicit cryptocurrency-related activity.
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The company's clientele includes the Federal Bureau of Investigation (FBI) , the Drug Enforcement Administration ( DEA ) and Europol . General partner Sarah Tavel, who led the deal with Chainalysis, explained that the move was a smart choice, and called Chainalysis a "meat and potatoes" company: "All these regulated institutions want to participate [in cryptocurrency transactions], but they need to understand with whom they are transacting and where their funds are originating. Cryptocurrency investigation enterprise Chainalysis is releasing a product called Know Your Transaction (KYT) designed to help businesses track customers that may be involved in illicit cryptocurrency-related activity.
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44a8d96a-032d-41d2-97d8-dc9127c85618
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723496.0
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2018-03-25 00:00:00 UTC
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Sorry, Jeff Sessions: Congress Aims to Extend Medical Marijuana Protections
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DEA
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https://www.nasdaq.com/articles/sorry-jeff-sessions-congress-aims-extend-medical-marijuana-protections-2018-03-25
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nan
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nan
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In our neighbor to the north, the cannabis industry is budding at an incredible pace. Canada legalized medicinal marijuana all the way back in 2001, and Health Canada, its version of the U.S. Department of Health and Human Services, has been overseeing licensing and production ever since.
Today, Canada stands on the verge of legalizing recreational cannabis. A bill introduced in April 2017 has made its rounds in the federal government and is set for a June 7 Senate vote that should lead to legalization shortly thereafter, assuming passage in the Senate. According to regulators, adults over 18 in Canada should be able to legally purchase cannabis beginning in August or September, leading to $5 billion or more in annual sales, if approved.
The U.S. cannabis industry is stuck in neutral
Comparably, the United States is stuck in the marijuana "Stone Age." Not only is there little hope of recreational legalization on the horizon, but there's virtually no chance that the federal government with alter its Schedule I classification on pot, which makes it entirely illegal and categorizes it as highly prone to abuse and having no recognized medical benefits.
This Schedule I classification makes life very difficult for medical patients, investors , and marijuana businesses alike. For example, businesses have limited or no access to basic banking services, including lines of credit or something as simple as a checking account. Since U.S. financial institutions report to the Federal Deposit Insurance Corporation, a federally created entity, and pot is illegal at the federal level, any assistance provided by banks to marijuana companies could be construed as money laundering, under a strict interpretation of the Controlled Substances Act (CSA).
Similarly, pot-based businesses are forced to pay a ridiculously high effective tax rate that can approach 70% to 90% as a result of tax code 280E. Put simply, since cannabis is illegal, businesses that primarily generate their sales and income from an illegal substance under the CSA are unable to take normal corporate income-tax deductions.
As for patients, they're left out in the cold because of bureaucratic red tape. With only one legal growing facility in the U.S. at the University of Mississippi, researchers' hands are tied in validating the scientific risks and benefits of medical cannabis.
Jeff Sessions declares war on the U.S. pot industry
And at the heart of this opposition is Attorney General Jeff Sessions, who has made clear on a number of occasions how he feels about weed. He's suggested that "good people don't smoke marijuana," as well as intimated in speeches that marijuana is one of the drugs to have caused the opioid epidemic, rather than being a solution for it.
Last May, Sessions sent a letter to a handful of his congressional colleagues requesting that they repeal the Rohrabacher-Farr Amendment, also known as Rohrabacher-Blumenauer. This amendment is attached to federal spending bills, and ii's what currently disallows the Department of Justice from using federal dollars to go after medical marijuana businesses in legal states. Sessions hasn't been successful in getting this amendment tossed out.
But Sessions was able to successfully rescind the Cole memo on Jan. 4. The Cole memo, written by former Deputy Attorney General James Cole under the Obama administration, outlined a set of guidelines that states would have to follow if they wanted to keep the federal government from interfering with their weed industry. Among these guidelines were provisions to keep marijuana away from adolescents, as well as ensuring that pot grown within a state stayed in that state. The rescinding of this memo by Sessions, who claimed it overstepped its bounds when implemented, now allows state prosecutors to use their discretion in bringing charges against businesses and individuals that violate the CSA -- even in states that have legalized.
Congress strikes back
However, Sessions' views aren't in the majority. A Gallup poll released in October showed that an all-time high 64% of respondents favors the idea of legalizing marijuana nationally. What's more, four other national polls since April 2017 have shown similar support for legalization.
Therefore, it should come as no surprise that a federal spending bill designed to fund the government through Sept. 30, the end of the current fiscal year, contains a rider designed to protect medical marijuana businesses from the Justice Department and Jeff Sessions. Under Section 538 of the new law, the Justice Department won't be allowed to use federal dollars to go after medical marijuana businesses. It also continues existing protections for industrial hemp research. The law will limit the scope of what Sessions can do to slow the expansion of cannabis at the state level.
Of course, that's not all. Last week, a group of nearly five dozen bipartisan lawmakers wrote a letter to the House Appropriations Committee requesting that new, broader provisions be included in the 2019 federal budget that protect all marijuana businesses, not just medical ones, from federal prosecution as long as they're complying with state-passed cannabis laws. As noted in the letter:
Thirty states have legalized medical cannabis in the U.S. -- Virginia became the 30th very recently -- and nine others have OK'd recreational weed. The stakes are high, and Congress appears to finally be siding with the majority view of the public, at least in this rare instance.
Don't expect marijuana's scheduling to change anytime soon
But it's also pretty clear that as long as Jeff Sessions is the attorney general, and President Trump remains in the Oval Office, there's virtually no chance marijuana's scheduling will be altered.
Back in 2016, the U.S. Drug Enforcement Agency (DEA) had an opportunity to reschedule or de-schedule pot following two petitions to do so, but following the recommendation of the Food and Drug Administration it decided to let things be . In particular, the DEA found a lack of medical benefit evidence, as well as a high probability for misuse, as reasoning to leave its Schedule I classification in place. Considering how long petitions can take to work their way up the chain of command at the DEA, it's unlikely marijuana will get another look from the regulatory agency anytime soon.
Meanwhile, Trump, who was supposedly "100 percent" behind the idea of medical marijuana during his campaign, has seemingly cooled on the topic of legalization . For example, Israel recently shuttered plans to export dried cannabis for medical purposes to the United States to satisfy Trump, according to reports.
There simply isn't a pathway to legalization at the federal level right now, which leaves what could be the most lucrative marijuana market in the world stuck in limbo. That's bad news for patients who might benefit from medical cannabis, as well as for investors.
10 stocks we like better than Walmart
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, the Motley Fool Stock Advisor, has tripled the market.*
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*Stock Advisor returns as of March 5, 2018
The author(s) may have a position in any 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Gallup poll released in October showed that an all-time high 64% of respondents favors the idea of legalizing marijuana nationally. Back in 2016, the U.S. Drug Enforcement Agency (DEA) had an opportunity to reschedule or de-schedule pot following two petitions to do so, but following the recommendation of the Food and Drug Administration it decided to let things be . In particular, the DEA found a lack of medical benefit evidence, as well as a high probability for misuse, as reasoning to leave its Schedule I classification in place.
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A Gallup poll released in October showed that an all-time high 64% of respondents favors the idea of legalizing marijuana nationally. Back in 2016, the U.S. Drug Enforcement Agency (DEA) had an opportunity to reschedule or de-schedule pot following two petitions to do so, but following the recommendation of the Food and Drug Administration it decided to let things be . In particular, the DEA found a lack of medical benefit evidence, as well as a high probability for misuse, as reasoning to leave its Schedule I classification in place.
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A Gallup poll released in October showed that an all-time high 64% of respondents favors the idea of legalizing marijuana nationally. Back in 2016, the U.S. Drug Enforcement Agency (DEA) had an opportunity to reschedule or de-schedule pot following two petitions to do so, but following the recommendation of the Food and Drug Administration it decided to let things be . In particular, the DEA found a lack of medical benefit evidence, as well as a high probability for misuse, as reasoning to leave its Schedule I classification in place.
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A Gallup poll released in October showed that an all-time high 64% of respondents favors the idea of legalizing marijuana nationally. Back in 2016, the U.S. Drug Enforcement Agency (DEA) had an opportunity to reschedule or de-schedule pot following two petitions to do so, but following the recommendation of the Food and Drug Administration it decided to let things be . In particular, the DEA found a lack of medical benefit evidence, as well as a high probability for misuse, as reasoning to leave its Schedule I classification in place.
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f5549539-ef10-47c5-b35f-48821446398e
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723497.0
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2018-03-17 00:00:00 UTC
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Legalizing Marijuana Would Create 1.1 Million Jobs in the U.S. by 2025, Report Shows
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DEA
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https://www.nasdaq.com/articles/legalizing-marijuana-would-create-11-million-jobs-us-2025-report-shows-2018-03-17
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nan
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nan
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The marijuana industry is budding before investors' eyes, with the North American market slated to grow by an average of 28% through 2021, hitting approximately $24.5 billion in annual sales within a few years, according to cannabis research firm ArcView.
Furthermore, the public's opinion about cannabis has taken a dramatic turn in recent years. In the U.S., numerous polls have found strong support for the idea of legalizing recreational cannabis, with even more overwhelming support for the legalization of medicinal marijuana. Combined, rapidly growing sales and shifting opinions have produced the perfect environment for marijuana stocks to thrive. Many are in fact up more than 1,000% over the trailing-two-year period.
To boot, Mexico legalized medical weed in June 2017, and Canada appears to be on the doorstep of becoming the first developed country to legalize recreational cannabis by this summer. Doing so is forecast to lead to $5 billion or more in annual sales.
What legalization could mean for the United States in terms of tax revenue and jobs
Yet, when examining the global cannabis market, no country offers more potential than the United States. If the U.S. were to legalize cannabis at the federal level, it could reap a king's ransom in tax revenue over the next decade, as well as spur plenty of direct and ancillary industry job growth, according to a new report from cannabis data analytics firm New Frontier Data.
The report suggests that if the U.S. were to do away with its extremely strict Schedule I classification -- which means the drug is entirely illegal and highly prone to abuse -- and legalize it for all 50 states, it could generate $131.8 billion in federal tax revenue between 2017 and 2025.
New Frontier came up with this figure by assuming a 15% retail sales tax, payroll tax deductions, and business tax revenue (calculated at 35%). When all is said and done, an estimated $51.7 billion in tax revenue from the sale of legal pot would be collected by the federal government. Admittedly, $51.7 billion over nine years isn't much when we're talking about a roughly $4 trillion annual budget, but any new source of revenue becomes valuable when we're also dealing with annual federal deficits in the hundreds of billions of dollars.
Additionally, legalizing cannabis nationally would be a major boon to the jobs market. Aside from the vertical chain of production, from growers, to processors, and then retailers, there are dozens of ancillary businesses that would benefit. These include banks, consulting services, logistics companies, marketing companies, accounting firms, and so on. If legalized today, some 782,000 jobs would be created, per New Frontier. But by 2025, this figure will have grown to 1.1 million jobs. In effect, the legal marijuana could be the fastest-growing industry in the U.S. under such a scenario over the next decade.
Interestingly enough, the 1.1 million new jobs, as well as the $51.7 billion in aggregate tax revenue, still assumes that 25% of all cannabis sales will remain in illegal channels. As of 2016, per ArcView, $46.4 billion of $53.3 billion in estimated North American cannabis sales were being conducted on the black market.
For now, this is a pipe dream
But in spite of 29 states having legalized cannabis in some capacity, including nine that have given the green light for adult use, there's virtually no chance of marijuana being legalized anytime soon under the Trump administration.
To begin with, Attorney General Jeff Sessions is waging a veritable war against the pot industry. After unsuccessfully requesting the repeal of the Rohrabacher-Farr Amendment in 2017 -- this is what protects medical marijuana businesses from federal prosecution -- Sessions succeeded in rescinding the Cole memo on Jan. 4, 2018. The Cole memo had outlined a set of loose "rules" that legalized states would follow in order to keep the federal government off their backs, such as ensuring that weed grown within a state stayed in that state. Its rescinding opens the door for state-level prosecutors to bring charges in violation of the Controlled Substances Act against businesses and/or individuals, with discretion.
President Trump speaking to an audience. Image source: U.S. Department of Homeland Security via Flickr.
Secondly, it appears that President Trump is taking a harder line on cannabis than once believed. During his campaign, Trump cited that he was "100 percent" behind the idea of medical marijuana, but that recreational pot is something that would need to be examined further. Recently, though, Trump put the kibosh on Israel's plans to export cannabis to the U.S. -- the United States would have been Israel's biggest market -- suggesting that the president has little interest in seeing the reach of medical marijuana expand.
Lastly, the powers that be had their opportunity to consider rescheduling or de-scheduling cannabis in 2016, and they chose to do nothing . The U.S. Drug Enforcement Agency (DEA) reviewed two petitions that called for the rescheduling of cannabis and, following the recommendation of the Food and Drug Administration, chose not to alter its current scheduling. The DEA cited abuse concerns and the current lack of clinical evidence of the medicinal impacts of cannabis as reasons to keep its scheduling unchanged.
Canada is where the actions is
Instead of the United States leading the cannabis market forward, it's Canada that's taken charge. Investors have been predominantly focusing their attention on our neighbor to the north, which should benefit from a surge in demand, sales, and jobs growth. In fact, most Canadian pot stocks are expanding their capacity, either organically or through partnerships and acquisitions, as quickly as their wallets will allow.
Aphria (NASDAQOTH: APHQF) , which is slated to be one of the top-three producers in Canada, has suggested that it can deliver upwards of 230,000 kilograms a year by 2019. It has a four-phase build-out that'll be capable of 100,000 kilograms annually, and Aphria recently partnered with Double Diamond Farms for another 120,000 kilograms of yearly production.
What's notable in Aphria's case, along with a number of other Canadian cannabis growers, is they're putting their U.S. expansion ambitions to bed for the time being. Just last month, Aphria announced the sale of its minority stake in Arizona-based Copperstate Farms for about $15 million. It and other growers simply don't want to risk the legal ramifications of operating in markets deemed illegal by federal governments.
In short, while the pie-in-the-sky numbers for legalizing weed in the U.S. look great, it's simply not a realistic pathway as long as Trump is at the helm and Sessions is in charge of the Justice Department.
10 stocks we like better than Aphria 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 10 best stocks for investors to buy right now... and Aphria Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of March 5, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the U.S., numerous polls have found strong support for the idea of legalizing recreational cannabis, with even more overwhelming support for the legalization of medicinal marijuana. Admittedly, $51.7 billion over nine years isn't much when we're talking about a roughly $4 trillion annual budget, but any new source of revenue becomes valuable when we're also dealing with annual federal deficits in the hundreds of billions of dollars. During his campaign, Trump cited that he was "100 percent" behind the idea of medical marijuana, but that recreational pot is something that would need to be examined further.
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In the U.S., numerous polls have found strong support for the idea of legalizing recreational cannabis, with even more overwhelming support for the legalization of medicinal marijuana. Admittedly, $51.7 billion over nine years isn't much when we're talking about a roughly $4 trillion annual budget, but any new source of revenue becomes valuable when we're also dealing with annual federal deficits in the hundreds of billions of dollars. During his campaign, Trump cited that he was "100 percent" behind the idea of medical marijuana, but that recreational pot is something that would need to be examined further.
|
In the U.S., numerous polls have found strong support for the idea of legalizing recreational cannabis, with even more overwhelming support for the legalization of medicinal marijuana. Admittedly, $51.7 billion over nine years isn't much when we're talking about a roughly $4 trillion annual budget, but any new source of revenue becomes valuable when we're also dealing with annual federal deficits in the hundreds of billions of dollars. During his campaign, Trump cited that he was "100 percent" behind the idea of medical marijuana, but that recreational pot is something that would need to be examined further.
|
In the U.S., numerous polls have found strong support for the idea of legalizing recreational cannabis, with even more overwhelming support for the legalization of medicinal marijuana. Admittedly, $51.7 billion over nine years isn't much when we're talking about a roughly $4 trillion annual budget, but any new source of revenue becomes valuable when we're also dealing with annual federal deficits in the hundreds of billions of dollars. During his campaign, Trump cited that he was "100 percent" behind the idea of medical marijuana, but that recreational pot is something that would need to be examined further.
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5b940d5e-49e3-47e1-af1e-1b24f5b433d9
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723498.0
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2018-03-09 00:00:00 UTC
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Easterly Government Properties, Inc. (DEA) Ex-Dividend Date Scheduled for March 12, 2018
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DEA
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https://www.nasdaq.com/articles/easterly-government-properties-inc-dea-ex-dividend-date-scheduled-march-12-2018-2018-03-09
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nan
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nan
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Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on March 12, 2018. A cash dividend payment of $0.26 per share is scheduled to be paid on March 28, 2018. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 8.33% increase over prior dividend payment.
The previous trading day's last sale of DEA was $19.83, representing a -11.16% decrease from the 52 week high of $22.32 and a 4.2% increase over the 52 week low of $19.03.
DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). DEA's current earnings per share, an indicator of a company's profitability, is $.1. Zacks Investment Research reports DEA's forecasted earnings growth in 2018 as 5.56%, compared to an industry average of 2%.
For more information on the declaration, record and payment dates, visit the DEA Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DEA through an Exchange Traded Fund [ETF]?
The following ETF(s) have DEA as a top-10 holding:
IQ US Real Estate Small Cap ETF ( ROOF ).
The top-performing ETF of this group is ROOF with an decrease of -14.92% over the last 100 days. It also has the highest percent weighting of DEA at 0.85%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. DEA is a part of the Consumer Services sector, which includes companies such as American Tower Corporation (REIT) ( AMT ) and Simon Property Group, Inc. ( SPG ). Zacks Investment Research reports DEA's forecasted earnings growth in 2018 as 5.56%, compared to an industry average of 2%.
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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. Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on March 12, 2018. Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of DEA was $19.83, representing a -11.16% decrease from the 52 week high of $22.32 and a 4.2% increase over the 52 week low of $19.03. For more information on the declaration, record and payment dates, visit the DEA Dividend History page.
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Shareholders who purchased DEA prior to the ex-dividend date are eligible for the cash dividend payment. Easterly Government Properties, Inc. ( DEA ) will begin trading ex-dividend on March 12, 2018. The previous trading day's last sale of DEA was $19.83, representing a -11.16% decrease from the 52 week high of $22.32 and a 4.2% increase over the 52 week low of $19.03.
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7474f69e-fb6b-4fc1-a9bf-041760dc42ab
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723499.0
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2018-02-23 00:00:00 UTC
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Is This Marijuana Biotech Stock a Buy After Its Big Clinical Flop?
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DEA
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https://www.nasdaq.com/articles/marijuana-biotech-stock-buy-after-its-big-clinical-flop-2018-02-23
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nan
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nan
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Seven words shaved more than $200 million off GW Pharmaceuticals ' (NASDAQ: GWPH) market cap in early trading on Thursday. The marijuana-focused biotech announced the preliminary results of a phase 2a clinical study of GWP42006, a compound that features cannabidivarin (CBDV) as the primary cannabinoid molecule in treating focal seizures. At the top of the press release were seven words: "Study did not meet its primary endpoint."
GW Pharmaceuticals stock plunged more than 5% on the news of the CBDV clinical setback. But does the pullback present a buying opportunity for investors?
About that study
Patients taking GWP42006 in the phase 2a clinical study showed reduction in focal seizures of around 40%. That's good, right? Yes, but the problem was that roughly the same reduction was achieved in the group of patients on placebo.
GW Pharmaceuticals Chief Medical Officer Volker Knappertz hinted at this result when he spoke during the company's fiscal 2018 first-quarter earnings conference call a few weeks ago. Knappertz warned that statistical significance for some of the biotech's CBDV studies won't be as critical. He specifically pointed out the relatively small size of the studies. More importantly, he noted that the placebo response rate for patients in clinical studies has increased in recent years.
Knappertz's comments were echoed in GW's announcement of the phase 2a clinical-study failure. The biotech stated that, "the extent of this placebo response is substantially greater than that seen in published studies of other treatments in similar patient populations." And GW was right. The reality is that a rise in placebo response rates is causing problems across the biopharmaceutical industry, especially in clinical trials of drugs targeting treatment of pain and psychiatric diseases.
GW Pharmaceuticals said that it's trying to figure out why the placebo response was higher than expected in the phase 2a study. That's easier said than done.
The company isn't throwing in the towel on GWP42006, however. GW is continuing to evaluate the cannabinoid compound in treating autism spectrum disorders and exploring additional opportunities in treating epilepsy. That makes sense considering the anti-epileptic properties that CBDV has demonstrated in earlier pre-clinical and clinical studies.
The main attraction
While the clinical flop for GWP42006 is disappointing, investors should keep their focus on the main attraction for GW Pharmaceuticals -- the company's cannabidiol (CBD) drug Epidiolex.
The U.S. Food and Drug Administration (FDA) should make an approval decision by June 27, 2018 on Epidiolex in treating Dravet syndrome and Lennox-Gastaut syndrome (LGS). Prior to that decision, an FDA advisory committee will meet to review the filing for the drug. This advisory committee will make a recommendation about whether or not Epidiolex should be approved, but the FDA isn't obligated to follow this recommendation.
If Epidiolex is approved, the next step will be for the drug to be rescheduled by the U.S. Drug Enforcement Administration (DEA). That process should take no longer than 90 days. If all goes well, GW could launch Epidiolex by sometime in September of this year.
And that launch could be a big one. Market research firm EvaluatePharma reviewed all new drugs expected to launch in 2018 by projected 2022 sales. Epidiolex ranked No. 10 on the firm's list , with estimated 2022 sales of close to $1 billion.
GW Pharmaceuticals is also evaluating Epidiolex in a late-stage study for treating tuberous sclerosis, a rare genetic disease that causes benign tumors to grow in the brain and other organs. In addition, the biotech has a phase 2 study in progress evaluating Epidiolex in treating infantile spasms.
Buy on the dip?
Should investors consider buying GW Pharmaceuticals stock on the dip? I think so.
It would have been great if the phase 2a study for GWP42006 had been an unqualified success. While that didn't happen, I wouldn't automatically assume that the CBDV compound won't be effective in other studies.
The critical key to GW Pharmaceuticals' fortunes is Epidiolex. If the CBD drug can generate the level of sales that many expect, the biotech stock has plenty of room to move higher. Although anything can happen with the regulatory-approval process, I think Epidiolex will win FDA approval this summer. I also think that GW Pharmaceuticals is taking the right steps now to improve the chances for a successful commercial launch later this year.
In my opinion, the pullback for GW stock on the CBDV clinical failure is in line with what should be expected. But I also view it as a good opportunity for investors to buy the stock for a cheaper price. With a major catalyst on the way, buying now could pay off later this year.
10 stocks we like better than GW Pharmaceuticals
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 10 best stocks for investors to buy right now... and GW Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 5, 2018
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
If Epidiolex is approved, the next step will be for the drug to be rescheduled by the U.S. Drug Enforcement Administration (DEA). The marijuana-focused biotech announced the preliminary results of a phase 2a clinical study of GWP42006, a compound that features cannabidivarin (CBDV) as the primary cannabinoid molecule in treating focal seizures. GW Pharmaceuticals Chief Medical Officer Volker Knappertz hinted at this result when he spoke during the company's fiscal 2018 first-quarter earnings conference call a few weeks ago.
|
If Epidiolex is approved, the next step will be for the drug to be rescheduled by the U.S. Drug Enforcement Administration (DEA). The marijuana-focused biotech announced the preliminary results of a phase 2a clinical study of GWP42006, a compound that features cannabidivarin (CBDV) as the primary cannabinoid molecule in treating focal seizures. About that study Patients taking GWP42006 in the phase 2a clinical study showed reduction in focal seizures of around 40%.
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If Epidiolex is approved, the next step will be for the drug to be rescheduled by the U.S. Drug Enforcement Administration (DEA). The main attraction While the clinical flop for GWP42006 is disappointing, investors should keep their focus on the main attraction for GW Pharmaceuticals -- the company's cannabidiol (CBD) drug Epidiolex. Should investors consider buying GW Pharmaceuticals stock on the dip?
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If Epidiolex is approved, the next step will be for the drug to be rescheduled by the U.S. Drug Enforcement Administration (DEA). And GW was right. Should investors consider buying GW Pharmaceuticals stock on the dip?
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2035ec1d-6220-465e-90f2-9c792200455d
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