|Bid||25.03 x 0|
|Ask||25.07 x 0|
|Day's Range||24.96 - 25.60|
|52 Week Range||9.34 - 26.66|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.94%|
By spreading risk, funds such as Horizons Medical Marijuana Life Sciences Index ETF (TSX:HMMJ) could take over from individual pot stocks.
Eve & Co Incorporated (the “Company” or “Eve”) (EVE.V) is pleased to announce that it has been included in the Horizons Marijuana Life Sciences exchange-traded fund (HMMJ.TO). Eve, through its wholly owned subsidiary Natural MedCo Ltd., is a licensed producer and seller of dried cannabis and cannabis plants, and producer of cannabis oil under the Access to Cannabis for Medical Purposes Regulations. Natural MedCo Ltd. is Canada’s first female founded licensed producer, and received its cultivation license from Health Canada in 2016 and its sales license from Health Canada in June 2018.
The week ending September 21 was broadly positive for the cannabis sector. The Horizons Marijuana Life Sciences ETF (HMMJ) rose 11.6% from its closing on September 14 to its closing on September 21. The Emerging Marijuana Growers Index ETF (HMJR) rose 1.7%, while the ETFMG Alternative Harvest ETF (MJ) rose 10.4% during the same period.
Cannabis Legalization: Will the US Follow Canada's Lead? The cannabis sector (HMMJ) in Canada has elicited hopes that the US may also move towards legalizing cannabis at some point. Currently, cannabis is still not legal at the federal level, but some states have ruled to legalize cannabis for medical purposes, while some states have legalized recreational use as well.
On September 20, Aphria (APHQF) (APH) rose 3.5% to 19.9 Canadian dollars. The company reported that it had signed supply agreements to provide cannabis products with all ten provinces in Canada and the Yukon territory. The company’s depth of supply agreements gives further stability and diversity to the company’s revenue.
HMMJ is the world's first and largest Exchange Traded Fund (ETF) offering direct exposure to North American publicly listed life sciences companies with significant business activities in the marijuana industry.
On September 20, Tilray (TLRY) stock sank 17.6% to $176.40, tapping the brakes after the frenzy that we’ve observed over the past couple of days—at least for now. Canopy Growth (WEED)(CGC) rose ~6.2%, Cronos Group (CRON) gained 8.4%, and Aurora Cannabis (ACB)(ACBFF) gained 12.3%. Time and again, we’ve seen the market become excited about in-play events—cannabis legalization in this case.
In this article, we’ll look at the forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of nine cannabis companies (HMMJ). The median forward EV-to-EBITDA multiple was 63.2x. Tilray is the outlier again
Cannabis stocks (HMMJ) have soared in recent weeks in anticipation of October 17, the date when recreational cannabis sales are slated to begin in Canada. Some of the stocks have grown exponentially, challenging the rationality of such movement. For example, Tilray (TLRY) has soared over 1,000% as of September 19 since its IPO (initial public offer) date in July 2018.
US-listed cannabis stock Tilray (TLRY) soared to a new high of $253.80, gaining more than 60.0% on September 19. Tilray stock has risen ~1,390.0% since its IPO price of $17.00.
On September 18, cannabis stock Tilray (TLRY) popped about 27% to an all-time high of $153.8 in the mid-day session. The stock is now almost 800% up since its IPO (initial public offering) in July. Meanwhile, Canopy Growth (CGC)(WEED) was up almost 6.8%, Cronos Group (CRON) was up 16.3%, and Aurora Cannabis (ACB)(ACBFF)—which got a boost from Coca-Cola’s interest—was up 8.5%.
On September 17, BNN Bloomberg reported that Aurora Cannabis (ACB) (ACBFF) and Coca-Cola (KO) are in “serious talks” to develop cannabis-infused beverages. Coca-Cola joins alcoholic beverage makers Constellation Brands (STZ) and Molson Coors (TAP), which have already formed partnerships with major Canadian cannabis companies Canopy Growth (WEED) (CGC) and HEXO (HEXO), respectively.
Last week, the Horizons Marijuana Life Sciences ETF (HMMJ) fell 1% from its close on September 7. During this period, the Emerging Marijuana Growers Index ETF (HMJR) gained 3.5%, while the ETFMG Alternative Harvest ETF (MJ) gained 2.8%. The overall cannabis industry was mixed after the huge rally leading up to last week.
The Scotts Miracle-Gro Company (SMG), unlike other cannabis companies (HMMJ) like Canopy Growth (CGC) (WEED) and Tilray (TLRY), has large exposure to the lawn and gardening business in the US. The number of analysts recommending a “hold” remained unchanged at one, and three analysts continued to have a “sell” recommendation on the stock.
On September 11, CannTrust Holdings (CNTTF) received a favorable report from Canaccord Genuity, which raised the company’s price target from 13 Canadian dollars to 14.5 Canadian dollars. This price target was almost 57% higher than the stock’s closing price of 9.2 Canadian dollars on the day. The overall consensus recommendation for CannTrust is a “buy,” which was unchanged from last month. In the current month, three analysts maintained a “strong buy” recommendation on the stock, while five analysts had a “buy” recommendation on the company.
Cronos Group (CRON) stock recovered well after the report from Citron Research, which had a bearish view on Cronos but had positive views on Canopy Growth (CGC) (WEED) and Tilray (TLRY). Citron Research gave the stock a price target of 3.5 Canadian dollars. However, the market (HMMJ) appears to have shrugged off the firm’s concerns. Let’s look at analysts’ recommendations and price target.
The Horizons Marijuana Life Science ETF (TSX:HMMJ-T) has grown to over $1 billion in assets under management. Here's what that means for cannabis investors.
Aurora Cannabis (ACB) (ACBFF), unlike other cannabis stocks (HMMJ) such as Canopy Growth (CGC) (WEED), Aphria (APHQF), and Cronos Group (CRON), has delivered a negative return so far this year. Aurora Cannabis closed 1% higher on September 11 at 9.09 Canadian dollars.
In this series, we’ll look at changes in ratings and price targets for some of the major cannabis stocks. August was very positive for the sector (HMMJ) with some companies delivering returns in excess of 100% YTD (year-to-date). The momentum has continued in September as well. Let’s discuss the performances of some of the cannabis stocks before we dive into analysts’ ratings and price target updates.
The cannabis sector continued to post gains last week. The Horizons Marijuana Life Sciences ETF (HMMJ) rose 5.7%, while the ETFMG Alternative Harvest ETF (MJ) rose 4%. The overall market TSE 300 Composite Index and the S&P 500 Index declined by 1% from August 31 to September 7. For more information, read our latest series on Finding the Right Cannabis Stock for Your Portfolio.
The third major market segment for cannabis companies is legal medicinal cannabis outside Canada. Canadian cannabis companies (HMMJ) have made those international markets their third key market segments in their quests to grow. Aurora Cannabis (ACB) (ACBFF), for example, has operations in Denmark, Germany, Australia, Italy, South Africa, and the Cayman Islands.
Cannabis companies plan to offer several products across various formats to access a share in several user experiences. For example, in its announcement related to 100 SKUs (stock keeping units), Canopy Growth (WEED) (CGC) said that its line of cannabis products will include multiple formats such as dried flower, pre-rolled joints, softgel capsules, and oils. Dried flower and pre-rolled joints have traditionally been the preferred format for consuming cannabis.
In the previous part of this series, we briefly looked at cannabis companies in the Porter’s generic strategy framework. In a previous article, Why You Should Look at This Strategic Roadmap of Cannabis Players, we concluded that product differentiation will largely be the strategic choice for cannabis companies (HMMJ) such as Canopy Growth (WEED) (CGC), Aurora Cannabis (ACB) (ACBFF), and Tilray (TLRY). Before we look at that, let’s see what the market segments are for cannabis players. In the above chart, you can see the width and depth of the potential market segments that will be targeted by cannabis players.