ETFMG Alternative Harvest ETF

The short interest position on a stock is one quick way to gauge the bullish and bearish sentiment on a stock.

Canopy Growth (WEED) (CGC) is expected to report a loss per share of ~0.15 Canadian dollars.

Jim Cramer said Altria’s acquisition of a 45% stake in Cronos Group last week was a “smart move” for Altria.

Through Cronos Group’s partnership with Ginko Bioworks, the company aims to produce cannabis through fermentation.

Analysts expect Aurora Cannabis to report a gross income of 177 million Canadian dollars in 2019 and 508 million Canadian dollars in 2020.

Cronos Group (CRON) has been on a declining trend for a while. The stock rose to a peak of ~30 Canadian dollars in February.

Aurora Cannabis (ACB) reported its Q2 earnings yesterday, which gave us a glimpse of recreational cannabis sales activity and what to expect from peers’ (MJ) upcoming earnings.

In the second half of 2018, the cannabis industry remained busy. As the cannabis sector experienced a boom, there was a lot of excitement among investors.

The Day reported that New York, New Jersey, Connecticut, and Pennsylvania’s governors met and agreed on basic guidelines for legalizing marijuana.

In this part of our cannabis valuation series, we’ll discuss the multiples of the remaining cannabis stocks and compare them to the peer (MJ) median of 24x.

Today, iAnthus Capital Holdings (ITHUF) announced it will open its first dispensary in Florida on December 19.

Jeffrey Gundlach predicted bitcoin’s (BTC) crash after the cryptocurrency’s peak in December 2017.

Many people expected the Cannabis 2.0 products, including cannabis edibles, to hit the markets by mid-December 2019. However, the products got delayed.

Senator Kamala Harris, who also announced her 2020 presidential bid, supports legalizing marijuana at a federal level.

The cannabis sector has continued to struggle on the last day of April, and it may very well end up in negative territory.

The broader US markets were relatively flat today. Weakness in the cannabis sector continued, with the ETFMG Alternative Harvest ETF down 0.4%.

Let’s now look at how capacity expansion could translate into cannabis companies’ margins.

Last week, the overall cannabis sector remained subdued. Sector ETFs, such as the Horizons Marijuana Life Sciences ETF (HMMJ), closed about 8.15% lower.

Despite the surge in May, Canopy Growth is still trading at a 54.3% discount from its 52-week high of $59.74. So, should you buy the stock?

On November 16, Curaleaf Holdings announced that the company opened Tallahassee’s largest medical marijuana dispensary.

Today, cannabis stocks are trading in the green despite the weakness in the broader market. The ETFMG Alternative Harvest ETF was up 2.5% as of 2:00 PM ET.

Cresco Labs (CRLBF) is slated to release its first-quarter earnings on May 29.

On December 9, Canopy Growth (CGC) appointed David Klein as its new CEO effective January 14. He’s the current CFO of Constellation Brands.

Cannabis ETFs traded on a largely negative note last week.

Last week, Innovative Industrial Properties (IIPR) offered $125 million in senior notes, giving initial investors the option to exercise $18.75 million in additional principal amount notes.

Aurora Cannabis (ACB) is going through a rough patch. This year, the company’s stock has lost 60.9% of its value as of December 23.

As market analysts increasingly predict an upcoming global recession, we take a look at the impact of a recession on cannabis stocks.

The FDA has issued warning letters to 15 companies involved in illegal sales of non-psychoactive CBD products. What’s the legal market’s potential?

The forecasting of future cash flows depends on the market potential for legalized medical and recreational marijuana.

With more countries now warming up to cannabis, let’s look at how Mexico is shaping up in terms of cannabis legalization.

As the cannabis space has increasingly become crowded, companies such as Cronos Group would greatly benefit from a company such as Altria.

The cannabis sector has seen a bit of a Jekyll and Hyde situation in 2019. In the first half, cannabis ETFs rose, but in the second half, they plummeted.

On December 31, 2019, Origin House (OH) announced that its shareholders had approved Cresco Labs’ (CRLBF) acquisition plan.

GW Pharmaceuticals has received a “strong buy” rating from four analysts, while eight have rated it as a “buy” or some equivalent.

On Monday, OrganiGram Holdings (NASDAQ:OGI) announced that it received a license from Health Canada to expand its Phase 5.

Aurora Cannabis (ACB) was trading at a multiple of 26.4x, which declined from 34x in October.

On Friday, Canopy Growth will report its third-quarter earnings before the market opens. Investors will be watching the results closely.

Today, OrganiGram Holdings (NASDAQ:OGI) reported its third-quarter earnings. As expected, the results were disappointing.

As the demand for Cannabis 2.0 products continues to rise, Aurora Cannabis announced the appointment of Miguel Martin as its new chief commercial officer.

Curaleaf Holdings (OTCMKTS:CURLF) continued its expansion by completing the acquisition of Curaleaf NJ, which owns a medical license in New Jersey.

Today, HEXO announced that it launched its medical marijuana products in Israel. The company signed a two-year agreement with an Israeli cannabis company.

Analysts expect Aphria to report revenues of $631.8 million in the next four quarters. Management will focus on the medical and recreational sectors.

OrganiGram will likely report its third-quarter earnings before the market opens on July 21. Overall, there isn’t much hope.

Aphria (NYSE:APHA) received a bullish call from Stifel. On Monday, Stifel upgraded the stock from a “hold” to a “buy” rating.

Curaleaf (OTCMKTS:CURLF) acquired a “Select” brand in February 2020. The company received positive feedback in medical and adult-use markets.

On Monday, Cantech Letter reported that Raymond James downgraded OrganiGram from an “outperform” rating to a “market perform” rating.

On June 27, Green Thumb Industries (OTCMKTS:GTBIF) opened its fifth Essence brand store in Las Vegas and its 48th retail store in the US.

In the fourth quarter, Canopy Growth (NYSE:CGC)(TSE:WEED) lost market share due to increased competition in value products.

In April, cannabis sales came in at $180.1 million—0.6% down from the March sales. So, considering the spike in March, the sales weren’t disappointing.

The Virginia Board of Pharmacy voted not to extend MedMen’s conditional license to operate a medical marijuana dispensary in Staunton, Virginia.

Tilray hasn’t reported a positive EBITDA yet. Analysts expect the company to become profitable in the first quarter of 2021.

Amid the growing support for cannabis legalization, Canopy Growth (NYSE:CGC) CEO David Klein expects the federal government to legalize marijuana by 2022.

After underperforming the broader equity markets in the first quarter, the cannabis sector has been showing a strong recovery in the second quarter.

On Monday, Curaleaf Holdings announced that it will expand its Select brand products in Connecticut. The products will be available at medical dispensaries.

Canada, with first-mover advantage, has been exploring new territories to export its cannabis oil. Last year, the company reported to 17 counties.

Innovative Industrial Properties has continued its aggressive expansion. IIPR acquired a new property in Pennsylvania from Holistic Industries.

Illinois sold recreational cannabis worth $44.3 million in May—the highest amount since it legalized recreational sales in January this year.

On Monday, Vireo Health announced that it terminated Bruce Linton as its executive chairman immediately. He joined the company in November 2019.

The budget proposed by Governor Gavin Newsom projected a decline in California’s cannabis sales. COVID-19 induced a recession in the US economy.

On May 26, Tilray (NASDAQ:TLRY) announced that it will permanently shut down its High Park Gardens facility located in Leamington, Ontario.

Canadian cannabis companies are frustrated by the Jamaican government’s inaction. They have decided to cut their losses and exit the Jamaican market.

Earlier this week, Curaleaf (OTCMKTS:CURLF) reported its first-quarter earnings. The company missed analysts’ revenue expectations.

On Wednesday, Aurora Cannabis (NYSE:ACB) announced that it has signed an agreement to acquire Reliva—a US-based CBD company.

On Monday, Curaleaf (OTCMKTS:CURLF) reported its first-quarter earnings after the market closed. The company reported revenue of $96.5 million.

Analysts expect Curaleaf’s EBITDA to rise during the quarter. They expect the company to report an EBITDA of $15.7 million.

Today, Charlotte’s Web reported a mixed first-quarter performance. For the quarter ended on March 31, the company reported revenues of $21.7 million.

On Monday, GW Pharmaceuticals reported its first-quarter earnings. The company beat analysts’ revenue, EBITDA, and EPS expectations.

On Monday, Tilray (NASDAQ:TLRY) reported its first-quarter earnings after the market closed. For the quarter, the company posted revenues of $52.1 million.

On May 8, Aphria’s (NYSE:APHA) management announced that it agreed to repurchase its convertible senior notes from some holders outside of Canada.

Charlotte’s Web Holdings (OTCMKTS:CWBHF)(NYSEARCA:CWEB) will likely report its first-quarter earnings before the market opens on May 14.

The meltdown in global financial markets amid COVID-19 dragged Tilray stock down to $2.43 on March 18. Since then, the stock has recovered.

On May 6, Innovative Industrial Properties reported its first-quarter results after the market closed. The company posted an adjusted EPS of $0.72.

Today, Aphria (NYSE:APHA) announced that ASG Pharma has received EU GMP certification to produce cannabis for medical and research purposes.

Aphria reported an adjusted EBITDA of $5.7 million in the third quarter. The company has reported a positive EBITDA for four consecutive quarters.

IIPR will likely report its first-quarter earnings, which ended on March 31, after the market closes on May 6. So, should you buy the stock?

Analysts expect Cresco Labs to report revenue of $43.7 million in the fourth quarter—YoY growth of 157.9% from $17.0 million in the fourth quarter of 2018.

Canopy Growth (NYSE:CGC)(TSE:WEED) stock rose to a high of 22.66 Canadian dollars before closing at 21.46 Canadian dollars on Monday.

Canopy Growth announced another set of global operational changes to optimize its production, improve efficiency, and align its supply with the demand.

On April 14, Aphria (NYSE:APHA) reported its third-quarter earnings. For the quarter, the company reported revenues of 144.4 million Canadian dollars.

Canopy Growth and Aurora Cannabis are two prominent players in the cannabis sector. So far in 2020, Canopy Growth has outperformed cannabis ETFs.

Analysts expect Aphria to report revenue of 130.6 million Canadian dollars in the third quarter—growth of 77.5% YoY and a sequential increase of 8.3%.

OrganiGram has joined the list of cannabis companies, like Canopy Growth and Aurora Cannabis, that will reduce their workforce.

On April 6, Bruce Linton said that Canopy Growth (TSE:WEED) and Cronos Group (NASDAQ:CRON) are better equipped to withstand the COVID-19 storm.

So far this year, OrganiGram Holdings (NASDAQ:OGI) and Aphria (NYSE:APHA) have lost 11.0% and 36.7% of their stock price.

As the markets start to rebound, three cannabis stocks could deliver strong returns. Cannabis sales have increased amid the coronavirus outbreak.

On Tuesday, Curaleaf (OTCMKTS:CURLF) reported its fourth-quarter earnings after the market closed. The company reported revenue of $75.46 million.

Last week was the worst week since October 2008. However, the cannabis sector fared better than the broader equity markets.

On March 19, Bank of America upgraded Aphria (NYSE:APHA) and OrganiGram Holdings (NASDAQ:OGI) due to the increased demand for cannabis.

Curaleaf Holdings (OTCMKTS:CURLF) will report its fourth-quarter earnings after the market closes on March 24. Analysts are bullish on Curaleaf.

Charlotte’s Web Holdings (NYSEARCA:CWEB) will report its earnings for the fourth quarter of 2019 before the market opens on March 24.

On March 16, Roth Capital initiated coverage on Innovative Industrial Properties (NYSE:IIPR) with a “buy” rating and a stock price of $110.

The marijuana sector saw a sharp decline last week amid the global sell-off. The S&P 500 fell by 8.8% in the week ending on March 13.

As of Thursday, nine analysts covered Curaleaf. Among the analysts, eight recommend a “buy,” while one recommends a “hold.”

On Thursday, WBRC reported that the Alabama Senate cleared Senate Bill 165. The bill will create the Compassion Act, which legalizes medical marijuana.

As of March 11, Innovative Industrial Properties (NYSE:IIPR) was trading at $76.96—a rise of 1.4% since the beginning of this year.

On Tuesday, MarketWatch reported that Stifel initiated its coverage on Aphria and HEXO. Stifel gave Aphria a “hold” and HEXO a “sell” rating.

Yesterday, Canopy Growth (NYSE:CGC)(TSE:WEED) announced that it’s optimizing its operations to align its supply based on demand.

On Wednesday, Charlotte’s Web Holdings (NYSEARCA:CWEB) announced that the audit of its 2019 hemp harvest is complete.

On Monday, Curaleaf (OTCMKTS:CURLF) announced that it will acquire BlueKudu—a company that produces premium cannabis chocolates and gummies.

As of February 28, Canopy Growth (NYSE:CGC)(TSE:WEED) was trading at 25.17 Canadian dollars. So far, the company has lost 7.8% of its stock value YTD.