|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||1.0697 - 1.1900|
|52 Week Range||0.8500 - 2.0400|
|Beta (3Y Monthly)||2.89|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Cannabis Sector Extended Its Losses Last Week(Continued from Prior Part)Cannabis stocks fellLast week, most of the stocks in the cannabis sector ended lower. The Horizons Marijuana Life Sciences ETF (HMMJ) fell ~1.2%, while the ETFMG Alternative
ACB Trades Sideways ahead of Its Earnings Results(Continued from Prior Part)Sector performanceThe cannabis sector has been trading broadly flat ahead of the first-quarter earnings season. The Horizons Marijuana Life Sciences ETF (HMMJ) was up
Cannabis Sector: Analyzing the Biggest Gains Last WeekWeekly gainersThe week ending April 26 brought some relief to cannabis sector investors. The Horizons Marijuana Life Sciences ETF (HMMJ) rose as much as 5.2%, while the ETFMG Alternative Harvest
Cannabis Stocks Keep Falling(Continued from Prior Part)HEXO gainsHEXO (HEXO) has been one of the best performers so far this year in the cannabis sector. The stock has returned almost 10.1% in April alone, and it has returned more than an enviable
Biggest Gainers in the Cannabis Sector Last Week(Continued from Prior Part)Tilray fell last week Last week, Tilray (TLRY) emerged as the biggest loss. The stock lost nearly 9% of the value from the closing on March 29 to the closing on April 5. The
CannTrust Fell Last Week after Its Earnings AnnouncementCannabis sector last weekIn the week ending March 29, the cannabis sector fell. Concerns about a recession hitting the market outweighed investors’ sentiment. The Horizons Marijuana Life
How Cannabis Stocks' Valuations Stack Up amid Recent Weakness(Continued from Prior Part)Comparable multiples The cannabis sector’s median forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization)
How Cannabis Stocks' Valuations Stack Up amid Recent Weakness(Continued from Prior Part)Comparing valuation multiplesAs of March 22, the median forward EV-to-sales multiple of our select group of 12 cannabis players was 7.0x. There were a couple of
March Update: Analysts’ Ratings for TLRY, IIPR, and SPRWF(Continued from Prior Part)Supreme Cannabis Supreme Cannabis (SPRWF), unlike its peers (HMMJ) including CannTrust (CTST), HEXO (HEXO), and Cronos Group (CRON), hasn’t received much
GMP Securities Upgrades Aurora Cannabis to a 'Buy'Aurora Cannabis upgradedGMP Securities, which previously had a “hold” rating on Aurora Cannabis (ACB), upgraded the company to a “buy” on March 13. The company also gave ACB a price target of
TLRY Is Too Rich for Jefferies—What about Other Cannabis Players?(Continued from Prior Part)Cannabis sector multiplesNow, let’s look at another valuation multiple for the same 12 cannabis players: the forward EV-to-EBITDA (enterprise
Analysts' Ratings Change for APHA, ACB, and CRON in March(Continued from Prior Part)Aurora Cannabis Aurora Cannabis (ACB) came under renewed attention. On March 5, Cowen initiated coverage on Aurora Cannabis (ACB) with an “outperform” rating. The
Key for Investors: Watching Cannabis Sector Valuations(Continued from Prior Part)Five other stocksIn this part, we’ll discuss the forward EV-to-EBITDA multiple for the other five cannabis stocks that we didn’t discuss in the previous part.
Key for Investors: Watching Cannabis Sector Valuations(Continued from Prior Part)What investors are payingBy knowing what investors are paying for each unit of the forward sales estimate for Cronos Group (CRON), HEXO (HEXO), and other companies,
Seaport Global Initiated Coverage on CGC, APHA, ACB, and HEXO(Continued from Prior Part)Supreme CannabisAmong cannabis stocks (MJ), Supreme Cannabis (SPRWF) has provided an impressive return of 47% YTD (year-to-date). The company outperformed
Seaport Global Initiated Coverage on CGC, APHA, ACB, and HEXO(Continued from Prior Part)OrganiGramLast month, OrganiGram (OGRMF) reported its first-quarter earnings for the quarter ending November 30. The earnings were received well and exceeded
Canopy Growth's Bruce Linton Talks Next Steps for the Industry(Continued from Prior Part)A commodityWhen a product becomes a commodity, it means that the product offered has no significantly distinguishable characteristics from one producer to the
Why Aphria Rose 13% on January 31(Continued from Prior Part)Premium vanishedGreen Growth touted a 45% premium for Aphria shares when it made the offer in December. The offer valued Aphria (APHA) at 11 Canadian dollars. Since then, Aphria has
Cannabis Players' Valuations: Which Stocks Look Cheap in January?(Continued from Prior Part)The remaining five cannabis stocks In the previous article, we discussed the EV-to-sales (enterprise value-to-sales) multiples of four cannabis stocks and
How Cannabis Stocks Fared Last WeekCannabis sector The ETF Horizons Marijuana Life Sciences (HMMJ) rose 22 basis points between January 11 and January 16. However, the Horizons Emerging Marijuana Growers Index (HMJR) slid 3.6% over the same period.
Cannabis Stock GW Pharmaceuticals Growing Steadily in January ## Stock performance On January 9, GW Pharmaceuticals (GWPH) stock rose ~1.81% to reach $119.54 from its prior day close of $117.41 on January 8. On January 7, the company’s stock price grew ~5.31% to reach $114.66 from its prior day close of $108.66 on January 4, 2019. On January 4, the company’s stock grew ~9.22% to reach $108.88 from its prior day close of $99.69 on January 3, 2019. GW Pharmaceuticals’ price of $119.54 on January 9 represents ~23% growth in the first six trading days of January 2, and this price is 33% below its 52-week high of $179.65 on September 27, 2018. On December 27, 2018, the company hit its 52-week low of $90.14. ## About GW Pharmaceuticals GW Pharmaceuticals is focused on the innovation, development, and commercialization of therapies from the company’s proprietary cannabinoid products. GW Pharmaceuticals’ Epidiolex oral solution has already received the FDA (Food and Drug Administration) approval for the treatment of individuals aged above two years with seizures related to Lennox-Gastaut syndrome or Dravet Syndrome. ## Analysts’ recommendations Of 13 analysts tracking GW Pharmaceuticals (GWPH) in January 2019, three of them recommended a “strong buy,” while eight analysts recommended a “buy” rating. One analyst recommended a “hold” rating, while one analyst recommended a “strong sell” for GW Pharmaceuticals in January. On January 10, GW Pharmaceuticals had a consensus 12-month target price of $173.17, which represents a ~44.86% return on investment over the next 12 months of this year. ## Peer ratings Of the five analysts tracking Supreme Cannabis Company (SPRWF) in January 2019, two of them recommended a “strong buy,” while three analysts recommended a “buy” rating. In January 2019, of the 11 analysts tracking Canopy Growth (CGC), two of them recommended a “strong buy,” seven recommended a “buy,” one recommended a “hold,” and one recommended a “sell” rating. Continue to Next Part Browse this series on Market Realist: * Part 2 - A Look into GW Pharmaceuticals’ Revenue Trends * Part 3 - How GW Pharmaceuticals’ Earnings Are Trending * Part 4 - Here Are Some of GW Pharmaceuticals’ Key Growth Drivers
Tilray Gets Licence to Innovate on January 7 ## Tilray gets more capacity On January 7, High Park, Tilray’s (TLRY) wholly owned subsidiary, received a processing license to make cannabis into finished products in London, Ontario. The license will also enable the company to research and innovate new form factors for the consumption of cannabis. ## Key points Currently, the form factors available for consumers are limited. They include dried cannabis, soft gels, and oils. The form factors were primarily limited because medical patients were the primary users until recreational cannabis became legal last October. The need to innovate for recreational users has increased for cannabis companies (MJ) including Canopy Growth (WEED), Supreme Cannabis (SPRWF), and Cronos Group (CRON). In the press release, High Park said it will work to develop innovative new products such as edibles like beverages and confectionaries, concentrates, and topicals with the receipt of the license. Tilray’s CEO, Brendan Kennedy, said, “This license marks another step forward as High Park increases its capacity to supply differentiated form factors of branded cannabis products for adult-use consumers in Canada.” This trend is not new to the industry. In its recent management discussion and analysis, Canopy Growth said it’s actively pursuing a value-added market cannabis product for the recreational market, which will include edibles, beverages, and higher concentrated vaping oils. To learn more, read New Formats Canopy Growth Plans to Introduce.
The Latest from Aphria: Green Growth, Irwin Simon, and More ## Last week On Monday, December 31, Aphria (APHA) stock opened at 8.12 Canadian dollars. But throughout the week, it fell slightly to close at 8.07 Canadian dollars on Friday, January 4, a decline of about 60 basis points. So, there was little market movement (HMMJ) in the stock. However, there was a lot going on with Aphria last week, which we’ll discuss in this series. ## Green Growth reaffirms takeover bid First on the list of developments was the commitment from Green Growth on its takeover bid for Aphria. Last week, Aphria stockholders got a reaffirmation from Green Growth Brands on its commitment to take over Aphria. In its press release, Green Growth Brands indicated that it received early interest from “frustrated” shareholders looking to exit their investments. Green Growth further affirmed that Aphria’s shareholders will continue to hold control with a 60% ownership of the new entity. Green Growth also provided reasons for why it is the right company to take over Aphria. According to Green Growth, its establishment in the US market, its vertically integrated operations, and Green Growth’s experience in the retail business make it the right company to have synergies with Aphria. Over the last week, HEXO (HEXO), Supreme Cannabis (SPRWF), and Cronos Group (CRON) all emerged with big gains. Next, we’ll discuss why Green Growth is indicating that Aphria is valuable. Continue to Next Part Browse this series on Market Realist: * Part 2 - Is Aphria Really a ‘Failed Investment’ as Green Growth Indicated * Part 3 - What Makes Aphria Valuable? * Part 4 - Did Green Growth Just Take a Swipe at Aphria’s Short Sellers?
In the above chart, you can see that Cronos Group’s (CRON) EV-to-EBITDA multiple rose to 62.3x from 60.5x in November. Compared to the last two-year average of 54.2x, Cronos Group was trading at a premium. Cronos Group’s premium might have been due to the value addition from Altria acquiring a stake in the company.
Cronos Group’s (CRON) forward EV-to-sales multiple in December rose to 19.9x from 19.7x on November 30. The increase in the valuation multiple was mainly driven by the catalyst of Altria’s 45% stake in the company. Cronos Group has traded at an average of 15.5x over the past two years. To learn more, read It’s Official: Altria Acquires a Stake in Cronos Group.