What do you need to know about marijuana stocks?
First, let’s cover some of the basics you need to know before investing in marijuana stocks: The marijuana industry is divided into three broad categories: Marijuana growers and retailers cultivate and package cannabis products and sell them to consumers. Biotechnology companies develop and market cannabis-based pharmaceutical drugs.
Will marijuana stocks ever stop falling?
The marijuana sector is a fickle one. When things are going well, stocks soar to ridiculous heights and valuations that are completely unwarranted. But when investors are down on the space, it seems as though prices can't stop falling.
Is this the next gold rush in marijuana stocks?
This could be like trading marijuana stocks in 2016! The next gold rush will get its investors higher than the pot that is creating the opportunity for profits. This new medical marijuana market could be worth upwards of $21 billion by 2020 according to some estimates. Do you have your favorite marijuana penny stocks picked out yet?
What are the best marijuana stocks to buy in July?
Here’s The Best Marijuana Stocks to Buy in July: 1 OTCMKTS: AMMJ ($.173) AMMJ Stock – American Cannabis Company Inc. is a consulting firm that provides an all-in-one shop for the budding entrepreneur. 2 OTCMKTS: IMLFF ($.1354) 3 OTCMKTS: CBWTF ($.3019) 4 OTCMKTS: FFNTF ($.2397) 5 OTCMKTS: ALEAF ($.3736) More items
Why did Aurora cannabis go down?
When announcing the decision to close the facility, Aurora chief executive officer Miguel Martin said the site was designed to produce mid-quality cannabis flower. But, he added, that type of product has been largely unsellable in the current environment because there is too much cheap cannabis on the market.
Will Aurora stock go up?
Aurora Cannabis Inc (NASDAQ:ACB) The 10 analysts offering 12-month price forecasts for Aurora Cannabis Inc have a median target of 2.34, with a high estimate of 4.00 and a low estimate of 1.44. The median estimate represents a +59.50% increase from the last price of 1.47.
Will Aurora cannabis come back?
Aurora was once considered the leading light among Canadian cannabis stocks. Perhaps after a trying 2021, it can regain some of its luster in 2022 with a nice rise in its share price.
Is Aurora a good buy?
The technical analysis of the Aurora Cannabis share price shows short-term buy signals but longer term sell signals with the following chart indicators: The RSI is currently at 33.431, which sends a strong buy signal on this stock.
How much cash does Aurora cannabis have?
Aurora has previously identified annualized cash savings of $60 million to $80 million and now expects to surpass the high end of this range with an additional $70 million to $90 million in savings by the end of H1 fiscal 2023, split evenly between costs of goods sold ("COGS") and SG&A, for a total of up to $170 ...
Is it smart to invest in medical Marijuanas?
Investing in the medical marijuana sector is relatively risky as long as cannabis remains federally illegal in the U.S. The plant's federal status also constrains the growth of the sector, and investors have no guarantee that the federal government will continue to allow states to treat cannabis as legal.
Should I sell my ACB stock?
Aurora Cannabis(ACB-T) Rating A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
What is hexo cannabis?
HEXO Corp.: HEXO is a Canada-based consumer-packaged goods cannabis company offering recreational and medical products to serve the global cannabis market. The company's recreational brands for the Canadian adult-use market include HEXO, HEXO Plus, Up, Original Stash, and Bake Sale. It serves the medical market under its HEXO medical cannabis brand. 7 HEXO's stock also trades in the U.S. on the Nasdaq under the ticker HEXO. On Oct. 18, the company announced the departure of co-founder and Chief Executive Officer ( CEO) Sebastien St-Louis in a major shakeup of the executive ranks. The company said that a special HEXO board committee was negotiating with a preferred CEO candidate and planned to make an announcement soon. The company also announced the resignation of Chief Operating Officer ( COO ), Donald Courtney, who will remain as COO until a replacement is found. 8
What is Cresco Labs?
Cresco Labs Inc.: Cresco Labs is involved in growing, manufacturing, distribution, and packaging of cannabis products. The company operates in 10 states, including production facilities and dispensaries. 15 Its brands include Cresco, Reserve, Remedi, High Supply, Wonder Wellness Co., Mindy's, Good News, Sunnyside, and FloraCal Farms. 16 Cresco Labs' stock also trades OTC in the U.S. under the ticker CRLBF. The company recently announced that it has agreed to acquire 100% of the outstanding equity interests in Laurel Harvest Labs LLC, a Pennsylvania-based vertically integrated operator, for $80 million. The transaction is expected to close by the end of 2021. 17
What is Hydrofarm Holdings?
Hydrofarm Holdings Group Inc.: Hydrofarm Holdings Group is a holding company that, through its subsidiaries, makes and distributes hydroponic products to customers throughout the U.S. and Canada. The company offers hundreds of brands. 9 It has a total of eight distribution centers, offering a product line of more than 5,000 items. 10 Hydrofarm announced in early August that it acquired Greenstar Plant Products Inc., a Canada-based nutrient company, for approximately $83 million. Greenstar manufactures the Grotek and Gaia Green brands, and is Hydrofarm's latest acquisition of a plant nutrient manufacturer. In July, the company acquired Aurora Innovations Inc., Aurora International Inc., and Gotham Properties LLC, which are collectively called Aurora. 11
How many distribution locations does Hydrofarm have?
The company has 6 distribution locations in the U.S., offering a product line of over 5,000 items. 13 Hydrofarm announced on June 17 that it had agreed to acquire Aurora, which includes Aurora Innovations, Inc., Aurora International, Inc, and Gotham Properties LLC.
What are the biggest companies in the marijuana industry?
Some of the biggest companies in the marijuana industry include Canopy Growth Corp. ( CGC ), Cronos Group Inc. ( CRON ), and Tilray Inc. ( TLRY ). Many big marijuana companies have continued to post sizable net losses as they focus on investing in equipment to speed up revenue growth.
What is Ayr Wellness?
Ayr Wellness Inc.: Ayr Wellness is a cannabis company involved in the cultivation, manufacturing, and dispensing of cannabis and cannabis-derived products. The company's product portfolio includes flowers, tinctures, edibles, and vape products under brands including Kynd, Sira Naturals, Entourage, Highly Edible, Cannapunch, and Lit Cartridges. 20 Ayr Wellness also trades OTC in the U.S. under the ticker AYRWF. The company announced in early October that it has closed its acquisition of PA Natural Medicine LLC, a Pennsylvania-based operator of three licensed retail dispensaries. The terms of the transaction included an upfront consideration of $80 million as well as an earnout payable in the first quarter of 2022. 21
What is high tide cannabis?
High Tide Inc.: High Tide is a Canada-based company engaged in the manufacture and retail of cannabis accessories. 2 The company operates a cannabis retail chain in Canada, three accessories e-commerce platforms, and also is a global manufacturer and distributor of consumption accessories. 3 Its brands include Canna Cabana, Meta Cannabis, NewLeaf Cannabis, Grasscity, Smoke Cartel, Daily High Club, DankStop, CBDcity, FAB CBD, Valiant Distribution, and Famous Brandz. High Tide's online platforms had nearly 100 million site visits in 2020. 4 The company's stock also trades in the U.S. on the Nasdaq under the ticker HITI. The company recently announced that it completed its acquisition of an 80% interest in Enigmaa Ltd., a U.K.-based cannabis company operating as Blessed CBD, for approximately 9.1 million pounds ($12.6 million). 5 High Tide has a three-year option to acquire the remaining 20% of Blessed CBD at any time. The transaction marked High Tide's fifth acquisition within the global e-commerce industry in 2021. 6
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The Rest: SPACs and More
Are there other ways to invest in cannabis? Sure. However, the rewards might fail to outweigh the risks with these options.
The Bottom Line on Cannabis Stocks
Depending on your personal preference and portfolio needs, there are a wide variety of ways to test cannabis-related holdings in your portfolio. With all emerging industries, investors should be aware of the risks and have an asset allocation and diversification strategy to help absorb inevitable sector volatility.
Did one rogue Senate candidate just blow up prospects for marijuana legalization in 2022?
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Cannabis stocks are behaving rather oddly on Tuesday -- a day when news for the marijuana sector is by and large bullish.
So what
And yet as I said, the news today isn't obviously bad for marijuana stocks at all. Over the weekend, Rep.
Now what
And yet, getting the bill through the U.S. Senate -- even with a Democratic majority and even with broad support from the Republicans -- continues to prove problematic. As MarijuanaMoment.com explains, despite apparent support for the law from President Joe Biden, "Senate Majority Leader Chuck Schumer (D-NY) has effectively blocked ...
Valuations will remain depressed
Cannabis stocks are cheap on 2021 and 2022 projected results and may get cheaper next year, said Viridian
Longer-term upside potential for investors
Viridian's conservative forecast for 2023 and 2024 assumes revenues will grow 25% both years with flat margins. The firm estimates U.S. cannabis stocks will trade at EV/EBITDA multiples of 5.7x for 2023 and 4.6x for 2024.
Here are Viridian's other predictions for 2022
1. The largest multi-state operators (MSOs) will lose share to smaller operators.
How much money did the Tilray merger save?
The merger is critical to the survival of both firms. It will save the firms 100 million CAD ($79 million) in pre-tax annual cost synergies. With competition heating up due to years of excess production, Tilray may have a chance of survival.
How much did Aphria trade in 2021?
Aphria traded as high as almost $27 at its peak on Feb. 10 before slumping. In Q2 2021, the company beat expectations as revenue grew. It lost money again in the period.
How much did Cronos lose in the third quarter?
In the third quarter, Cronos posted operating losses of $40.2 million. If revenue nearly doubled from $5.78 million to $11.36 million, why is it still losing money? The company benefited from an increase in net revenue and the gross profit contribution of its U.S. business. But the cost of sales grew because of higher volumes in adult-use sales and purchased flower. Wholesale sales fell.
How long does CGC stock last?
CGC stock is only for investors with a time frame of at least three years. Anyone speculating on the stock with a shorter holding period will end up disappointed.
What is the gross margin for Q4 2020?
The weak sequential growth in revenue and the inability to reduce the cost of sales should concern shareholders. One bright spot is that gross margin improved to 35% from 30% in Q4 2020.
Is Aphria a cash deal?
In December, Aphria and Tilray announced a merger that will create a $4 billion market capitalization cannabis firm. The deal involves no cash. APHA shareholders will get 0.8381 shares of Tilray for each Aphria to each share owned. When completed, Aphriria will own 62% of the combined firm.
When did Hexo stock split?
The decline in HEXO stock’s price reached a point where the company announced a reverse split of shares on Dec. 18, 2020. So, for every four shares owned, investors get one new share. At the time, the stock traded at below $5. To avoid the danger of falling to a stock price below the minimum, management proactively consolidated shares.
Who owns cannabis stores?
1. Green Thumb Industries. Green Thumb Industries ( OTC:GTBIF) owns retail cannabis stores in 12 states across the U.S. and operates 13 manufacturing facilities. Green Thumb holds licenses for 96 retail cannabis locations but has opened only a little over half that many stores.
What is an ancillary marijuana business?
Ancillary marijuana businesses provide products and services to cannabis companies without touching the plant. Cannabis can be medical or recreational: Medical cannabis patients use cannabis or cannabis extracts to treat health conditions and have recommendations or cannabis prescriptions from physicians.
What are the different types of marijuana?
The marijuana industry is divided into three broad categories: Marijuana growers and retailers cultivate and package cannabis products and sell them to consumers. Biotechnology companies develop and market cannabis-based pharmaceutical drugs.
How old do you have to be to buy marijuana?
Recreational cannabis users purchase marijuana or cannabis extracts purely for enjoyment and must be age 18 and older and living in a jurisdiction where recreational use of the plant is legal. Geography matters: Medical cannabis is legal in many more countries than recreational cannabis.
Is IIP a REIT?
Because the company is organized as a real estate investment trust (REIT), IIP returns at least 90% of its taxable income to shareholders.
When will Illinois legalize marijuana?
With the legal recreational marijuana market in Illinois opening for business at the beginning of 2020, this company is benefiting from tremendous growth in its home state. Along with the opportunity to expand into additional states such as New York and New Jersey, the company has significant growth potential.
When is the OGI earnings call 2021?
OGI earnings call for the period ending September 30, 2021.
How much will the marijuana market grow in the next 10 years?
35% per year is an incredible projection, but this doesn’t come close to some other market analysts who are projecting that the market could climb higher than $50 billion in the next 10 years provided that marijuana is legalized on a federal level.
How much is the marijuana market worth in 2020?
This new medical marijuana market could be worth upwards of $21 billion by 2020 according to some estimates. Do you have your favorite marijuana penny stocks picked out yet?
What is Auxly cannabis?
CBWTF Stock – Auxly Cannabis Group, was a cannabis royalty company provides growers with up-front capital to expand their capacity in exchange for a percentage of their yield at a well-below-market rate. However, with the declining price of marijuana due to the legalization of recreational weed, Auxly had to evolve to stay alive in the industry. Therefore, on top of the royalty streams established, they have expanded into wholly-owned grow farms (which is expected to produce 170,000 kilograms of cannabis in 2019 and 2020), value-added services and products, and downstream retail-focused operations.
How many Cannex dispensaries are there?
which operates in 4 states on the Eastern side of the United States. 4Front currently has 5 dispensaries and plans to open 5 more in the first half of 2019.
How much did FFNTF raise?
FFNTF raised $32 million from Gotham Green in November of 2018, and we think this growth capital along with the promising opportunity to expand across the US with the 4Front partnership makes this an attractive way to play the marijuana stock market.
What is AMMJ stock?
AMMJ Stock – American Cannabis Company Inc. is a consulting firm that provides an all-in-one shop for the budding entrepreneur. They have multiple years experience in helping marijuana companies grow from the ground up. On top of the setup phase marijuana companies go through, American Cannabis also provides marketing, branding, and staffing solutions for their customers.
Is Aleafia Health a stock?
They have applied to be listed on the NASDAQ, but due to its size and ongoing acquisition, it is unclear if they will be let into the major stock exchange. One thing that makes Aleafia Health attractive is they are in the midst of acquiring Emblem (NASDAQOTH:EMMBF), which is a marijuana company that focuses on clinics and grow facilities. If the acquisition gets approved, the combo would have 60,000 patients spread across 40 medical clinics and would be capable of producing 138,000 kilograms annually.
What are some examples of pot stocks?
Jushi and Curaleaf are just a couple of examples of pot stocks that could be big winners next year. But they aren't the only options for cannabis investors. And if you can't decide, one option may be to buy shares of an exchange-traded fund like the AdvisorShares Pure US Cannabis ETF that holds positions in many MSOs.
Is Curaleaf a MSO?
Curaleaf is the top MSO in the country , with $985 million in revenue over the trailing 12 months. At about $11 a share, the stock hasn't traded this low since November. And with management looking to expand its operations in New Jersey and New York -- two states that passed recreational marijuana reform earlier this year -- you can bet that Curaleaf will clear well over $1 billion in revenue next year. That, combined with any kind of progress on the marijuana legalization front, could make the stock a scorching-hot buy in 2022.
Is marijuana a fickle market?
The marijuana sector is a fickle one. When things are going well, stocks soar to ridiculous heights and valuations that are completely unwarranted. But when investors are down on the space, it seems as though prices can't stop falling. Right now, we're seeing the latter -- and for investors who can see past the recent bearishness, that means some exciting opportunities to scoop up quality cannabis stocks at prices we haven't seen for several months.
Will marijuana stocks surge?
Once there's discernible progress on federal marijuana reform, shares of pot stocks will undoubtedly surge. And given the high probability of that happening, now may be a prime time to start adding them to your portfolio.
Who is David Jagielski?
David Jagielski is a designated accountant and has spent 10+ years working in finance for small and large businesses in many different sectors. He has been writing for The Fool since 2017. When he's not out hunting for cheap stocks or writing articles, odds are he's writing macros in Excel or reading history books.
