|Bid||32.90 x 0|
|Ask||33.33 x 0|
|Day's Range||32.77 - 34.25|
|52 Week Range||6.58 - 44.00|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
HORIZNS MARIJUNA LF CL A UNT ETF (TSX:HMMJ) is up an impressive 95% since the start of November. But several cannabis stocks have fared even better. Find out which ones.
In this part of the series, we’ll discuss how Aphria’s (APHQF) production costs have evolved in the last four quarters, just as we did for MedReleaf (MEDFF), Aurora Cannabis (ACB), and Canopy Growth (WEED) earlier. In the chart above, we can see that though Aphria’s costs per gram have seen a falling trend sequentially, its fiscal 2Q18, which ended in November 2017, saw a spike. Its cost per gram in this quarter rose to 2.13 Canadian dollars from 1.61 Canadian dollars a quarter ago.
Last week, Aphria (APHQF) announced that it received approval for its additional planned 200,000-square-foot production facility. The company stated that the current approval was more than three times its production capacity. In our series How Cannabis Companies Are Rushing to Expand Operations, we saw that Aphria also has a Part IV expansion plan that’s even bigger than Part III at 700,000 square feet.
Excluding its fiscal 3Q18, which ended in December 2017, MedReleaf (MEDFF) experienced a fall in its average cost of production on a per-gram basis. This performance was unlike that of producers (HMLSF) Canopy Growth (WEED) and Aurora Cannabis (ACB) (ACBFF), both of which experienced YoY (year-over-year) and sequential falls in their production costs. In fiscal 3Q18, the company’s total cash cost per gram sold increased to 1.83 Canadian dollars from 1.55 Canadian dollars in fiscal 3Q17.
Last week, which ended March 16, 2018, NAC (National Access Cannabis) signed a binding term sheet with CannaRoyalty (CRZ) (CNNRF) to carry the latter’s products in NAC’s stores across Canada. National Access Cannabis has locations in most of the key provinces of Canada. Given the anticipation of high demand for adult use of recreational cannabis, companies (HMMJ) including Canopy Growth (WEED), Aurora Cannabis (ACB) (ACBFF), and MedReleaf (MEDFF) could engage in arrangements with retailers as well as other companies to gain a piece of the lucrative cannabis market share.
In preparation for meeting the demand for recreational cannabis in Manitoba, Delta 9 entered into a supply agreement with Sundial Growers. Based in Alberta, Sundial Growers will supply up to 5,000 kilograms of cannabis and related products annually to Delta 9. The arrangement between the two companies, which hasn’t been formalized yet, will take place in the near future, according to Delta 9.
MedReleaf’s (MEDFF) selling price has seen its ups and downs over the last five quarters, unlike Aurora Cannabis (ACB) (ACBFF) and Canopy Growth (WEED), which have seen upward trends quarter-over-quarter. During its fiscal 3Q18, which ended in December 2017, MedReleaf’s average selling price per gram stood at 8.98 Canadian dollars. Compared to a year earlier, its prices fell as much as 14%.
The trend reflects what we saw for Canopy Growth (WEED) earlier in this series. The above chart shows the cash cost evolution for Aurora Cannabis’s dried cannabis sold on a per-gram basis. In its fiscal 2Q18, which ended in December 2017, the company’s cash cost of sales per gram stood at 1.74 Canadian dollars.
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Increasing growth spending takes a toll on Canopy Growth Corp.'s (TSX:WEED) EBITDA, and investors can expect more of the same going forward as the company's growth plans come into focus.
Aurora Cannabis Inc. (TSX:ACB) may have run out of steam, and investors might be better off jumping ship to this newly listed pot stock.
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