Marijuana Stocks

The U.S.-listed shares of Aphria Inc. shot up 17% in midday trading Thursday toward a more-than two-year high, after the Canada-based cannabis company reported a surprise fiscal second-quarter adjusted profit and revenue that rose above forecasts, citing strength in its global cannabis and consumer packaged goods businesses. The net loss for the quarter to Nov. 30 widened to C$122.0 million ($96.3 million), or 42 cents a share, from C$8.2 million, or 3 cents a share, in the year-ago period. Excluding non-recurring items, the company swung to EPS of 1 cent from a loss of 19 cents, beating the FactSet consensus for a per-share loss of 3 cents. Revenue rose 33% to C$160.5 million ($126.6 million), above the FactSet consensus of C$153.9 million. Adult-use cannabis revenue rose 149% to C$72.1 million. The average selling price of adult-use cannabis rose to C$4.29 per gram from C$4.15 per gram in the previous quarter, while the average retail selling price of medical cannabis fell to C$6.96 per gram from C$7.38 per gram. Shares of Tilray Inc. jumped 19.4%, as the company and Aphria agreed in December to a merger. The stock, which which is on track for the highest close since November 2018, has soared 98.6% over the past three months while the ETFMG Alternative Harvest ETF has climbed 72.4% and the S&P 500 has gained 9.4%.

The U.S.-listed shares of OrganiGram Holdings Inc. dropped 2.3% in premarket trading, as the Canada-based cannabis company reported a much wider fiscal first-quarter net loss and net revenue that fell more than forecast, while adult-use recreational cannabis revenue jumped. The net loss for the quarter to Nov. 30 increased to C$34.3 million ($26.9 million) from about C$863,000 in the same period a year ago. The FactSet consensus for net losses was C$7.1 million. Gross revenue fell 11% to C$25.3 million ($19.8 million), while net revenue, which includes excise taxes, dropped 23% to C$19.3 million. The FactSet revenue consensus was C$20.3 million. Adult-use recreational net revenue rose 30% to C$16.8 million. Gross margin swung to a negative C$16.7 million from positive C$11.2 million. "We are pleased with our double-digit sales growth in the Canadian adult-use recreational market this past quarter as it reflects the success of many of our new product launches, particularly in the dried flower value segment," said Chief Executive Greg Engel. The company said the annualized run rate for adult use cannabis sales rose to a record $3.2 billion in October, based on data from Statistics Canada. The stock has soared 42.7% over the past three months through Monday, while the ETFMG Alternative Harvest ETF has hiked up 47.3% and the S&P 500 has gained 7.5%.

GW Pharmaceuticals PLC provided an upbeat outlook for fourth-quarter sales, amid strength in sales of Epidiolex, the first cannabis-based drug to be approved by the Food and Drug Administration. The stock edged up 0.2% in premarket trading, reversing earlier losses. The company now expects total product sales of $148 million, above the FactSet consensus of $141.2 million, as Epidiolex sales are expected to be $144 million, which is above expectations of $137.4 million. The company said Epidiolex sales have increased by 70% in 2020, despite challenges associated with the COVID-19 pandemic. "Our goals in 2021 include driving further Epidiolex growth and advancing multiple US pivotal trials for nabiximols in the treatment of [multiple sclerosis] spasticity, with the first data readout expected this year," said Chief Executive Justin Grover. The stock has run up 35.4% over the past three months through Friday, while the ETFMG Alternative Harvest ETF has soared 45.6% and the S&P 500 has gained 10.0%.

While cannabis stocks soar this week after Democratic wins in Georgia's runoffs put the party in control of the U.S. Senate, one analyst warns the rally looks overdone.

With Democrats in control of the House, Senate and White House, some sectors will benefit better than others.

Wall Street closed the books on 2020 with a decidedly good year for U.S. stocks. Lagging even farther behind was the Dow Jones Industrial Average (DJIA) up only 7% on the year. The root cause lies in the fact that the Nasdaq-100 has more than 40% of its assets in tech and only about 2% in financial services.

Isaac Boltansky, director of policy research at Compass Point Research & Trading, joins Yahoo Finance Live to discuss the winners and losers in different electoral scenarios from the Georgia Senate runoff, as well as the three areas he’s focused on from President-elect Joe Biden’s agenda.

Cannabis stocks rallied in premarket trade Wednesday, on hopes the Democrats may take the Senate after Raphael Warnock won one of two Senate runoffs in Georgia early Wednesday, according to the Associated Press, bringing Democrats a seat closer to a Senate majority. With 97% of the expected vote total reported, Democratic challenger Jon Ossoff was leading Republican Sen. David Perdue by just 0.22 percentage points, according to data aggregated by the Associated Press. Democrats are expected to pursue a more cannabis reform agenda under President-elect Joe Biden and Vice President-elect Kamala Harris, who have been more supportive of opening the banking sector and other needed services to the industry, which has been hampered by the tricky regulatory backdrop that has allowed the black market to continue to flourish. "We go from speculating what President-elect Biden could have done for cannabis reform via Executive Order (or by directives/"memos" from his incoming Attorney General) and if the Senate would have held a vote on the SAFE act (banking reform) would have even taken a vote, to a new world, in which the question is more about the timing and scope of much broader reform for the cannabis industry," Cantor Fitzgerald analyst Pablo Zuanic wrote in a note to clients.The ETFMG Alternative Harvest ETF was up about 7% premarket, while the Cannabis ETF was up 1.1%. Among individual stocks, U.S.-listed shares of Aurora Cannabis Inc. , the most widely held stock on the Robinhood trading app, were up 15%. Tilray Inc. was up 15.4%, Canopy Growth Corp.s [c: ca:weed] was up 8% and Cronos Group Inc. was up 10%. The Cannabis ETF has gained 63% in the last three months, while the S&P 500 has gained 11%.

Helped by Election Day results in the U.S., marijuana stocks are experiencing a renaissance of late. It’s not yet a replay of 2018, but plenty of cannabis equities and related exchange traded funds will exit 2020 with their best performances in some time. It’s not just optimism surrounding the incoming Biden Administration and how the president-elect can affect marijuana stocks for the better. On Election Day, every state that had a medicinal, recreational or both initiative on the ballot said “yes.” That includes a group of deeply conservative and swing states, indicating attitudes toward legal cannabis are changing and no longer confined to the likes of California, Colorado and Washington. 7 Undervalued Stocks That Could Soar in 2021 With that in mind, here are the 7 best ETFs for marijuana bulls to buy right now:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alternative Harvest ETF  (NYSEARCA:MJ) AdvisorShares Pure US Cannabis ETF (NYSEARCA:MSOS) AdvisorShares Pure Cannabis ETF (NYSEARCA:YOLO) Amplify Seymour Cannabis ETF (NYSEARCA:CNBS) Cannabis ETF (NYSEARCA:THCX) Global X Cannabis ETF (NASDAQ:POTX) Cambria Cannabis ETF (CBOE:TOKE) While things are looking up for the U.S. cannabis market, there are still plenty of risky equities in the space, many with small price tags and even more diminutive upside prospects. In other words, stock picking in this arena is difficult, which explains why many investors prefer exchange traded funds. Best ETFs For Marijuana Bulls: Alternative Harvest ETF (MJ) Source: Shutterstock Expense ratio: 0.75% per year, or $75 for a $10,000 investment The Alternative Harvest ETF, the original ETF dedicated to marijuana stocks, is back in style as it recently marked $1 billion in assets under management. That’s a prestigious mark for any ETF, particularly a thematic fund like MJ. Although it’s still saddled with a double-digit year-to-date loss, MJ is proving sensitive to the aforementioned political tailwinds in the U.S., as the ETF now sports a fourth-quarter gain of 40.26%. More recently, MJ got a bit of boost on news of Aphria (NASDAQ:APHA) targeting rival Tilray (NASDAQ:TLRY) for a merger. Those two stocks combine for nearly 17% of MJ’s roster. With 82.1% exposure to the U.S., according to issuer data, MJ should benefit as cannabis laws here liberalize. However investors should scrutinize this exposure because the bulk of the fund’s biggest components aren’t U.S. growers. Rather they’re Canadian firms waiting on their moment south of the border. AdvisorShares Pure US Cannabis ETF (MSOS) Source: Shutterstock Expense ratio: 0.74% per year Speaking of exposure to U.S. growers, also known as multi-state operators (MSOs), the AdvisorShares Pure US Cannabis ETF is the first ETF with an explicit focus on the U.S. weed market. With its September 1 debut MSOS was the only new cannabis ETF to come to market this year, but it has proven investors want MSO allocations, as highlighted by $183.45 million in assets under management. That makes this one of the year’s most successful rookie thematic ETFs. Beyond that superlative, the new fund has confirmed the benefits of its domestic focus, returning 44.3% since inception. Plus, as an actively managed ETF MSOS dodges index constraints, allowing it to feature exposure U.S. growers, most of which trade over-the-counter (OTC). OTC stocks are usually ignored by traditional equity indexes. 7 Undervalued Stocks That Could Soar in 2021 In addition to a 58.4% weight to MSOs, the AdvisorShares ETF features exposure to six other industries, including real estate, financial services and cannabis pharmaceuticals producers. The fund is a solid idea for investors seeking smaller marijuana stock exposure, as mid and small caps combine for 86.8% of the roster. AdvisorShares Pure Cannabis ETF (YOLO) Source: Shutterstock Expense ratio: 0.75% per year The AdvisorShares Pure Cannabis ETF is the older stablemate to the aforementioned MSOS, and like its new counterpart, YOLO is actively managed. In fact, YOLO was the first actively managed weed ETF ever. While active fund managers consistently encounter difficulty beating benchmarks to justify their high fees, YOLO proves active management can and does work in the cannabis space, up 41.77% year-to-date. That performance is good enough to make YOLO one of best-performing marijuana ETFs, and flexibility is one of the reasons behind this fund’s impressive showing. YOLO allocates 61.5% of its weight to domestic marijuana stocks, including many of the OTC names dwelling in MSOS. But YOLO’s exposure to those names is synthetic and comes by way of derivatives. Dan Ahrens manages both MSOS and YOLO and “believes today’s new era can be viewed in similar regard to post-Prohibition, commencing a growing acknowledgement and understanding of cannabis and its uses among a mainstream audience. The industries that comprise the multi-billion dollar cannabis universe represent a new frontier, where proper caution and due diligence must be exercised surrounding its regulations and risks, in seeking attractive long-term cannabis investment opportunities,” according to AdvisorShares. Amplify Seymour Cannabis ETF (CNBS) Source: Shutterstock Expense ratio: 0.75% per year The Amplify Seymour Cannabis ETF is also actively managed, run by Seymour Asset Management’s Tim Seymour, a regular on CNBC’s “Fast Money” program. One benefit of CNBS, made evident by a 34.51% year-to-date gain that far outpaces passive rivals, is an emphasis on purity. This fund doesn’t hold derivative plays or tobacco stocks, only those that derive “80% of the portfolio companies with 50% or more of their revenue from the cannabis and hemp ecosystem,” according to the issuer. The bulk of CNBS’s holdings are retail, pharmaceuticals, cultivation firms or makers of cannabis-infused products or real estate names, as well as providers of agricultural technology or companies engaged in cannabis finance, technology and manufacturers of consumption devices. 7 Undervalued Stocks That Could Soar in 2021 CNBS holds 24 stocks, with $26.78 million in assets under management. The fund debuted in July 2019. Cannabis ETF (THCX) Source: Shutterstock Expense ratio: 0.70% per year The Cannabis ETF is one of the more cost-effective cannabis ETFs and a straightforward approach to the favorable regulatory environment setting up in the U.S., Mexico and other countries. And that much is reflected by fourth-quarter gains of 48% for THCX. “To put the opportunity into perspective, the global cannabis market is estimated to reach $630 billion by 2040 up from $12 billion today,” according to the issuer. THCX holds 29 stocks across eight industries with a median market capitalization of $204.2 million, indicating the fund tilts toward the smaller side of the marijuana stock universe. The fund features some exposure to British equities, but the U.S. and Canada are the markets that will chart the course for THCX. Global X Cannabis ETF (POTX) Source: Shutterstock Expense ratio: 0.50% per year The Global X Cannabis ETF, which tracks the Cannabis Index, has at least one thing in its favor: With annual fees of just 0.50%, it’s almost the least expensive fund in this category. POTX has a concentrated lineup of 18 stocks and, like many of its passive peers in this space, is heavily allocated to Canadian marijuana stocks. That country accounts for over 78% of the fund’s geographic exposure. To that end, POTX levered to growth north of the border and in the medicinal marijuana trade because pharmaceuticals and healthcare facilities combine for 93% of the ETF’s roster. The upside of that is some POTX components do offer investors avenues to growth in the U.S. and there is plenty of growth to be had in the cannabis market. 7 Undervalued Stocks That Could Soar in 2021 “Considering only ten years ago recreational cannabis was illegal in all 50 states, these results present a nationwide push to relax cannabis’ laws,” according to Global X research. “After these initiatives, 33% of the population will have access to legalized cannabis for adult use and 70% of all states have legalized cannabis for medical use.” Cambria Cannabis ETF (TOKE) Source: Shutterstock Expense ratio: 0.42% per year Two big things to like about the Cambria Cannabis ETF. First, it’s actively managed. Second, that annual fee of 0.42% is cheap by the standards of any actively managed fund, and the lowest in the cannabis ETF category. There’s another perk to TOKE being an active fund. It’s area of focus is micro-, mid- and small-cap stocks, groups that lend themselves to benefiting from active management in the marijuana stock landscape. TOKE’s lineup, though concentrated, is diverse at the industry level. Constituents include “companies across a range of market capitalizations that derive a significant portion of revenue from the legal sale, cultivation, production, or provision of cannabis-related products, services, or research,” according to Cambria. Bottom line: TOKE offers value for active management in an asset group where stock picking can be tricky for any investor. On the date of publication, Todd Shriber did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Todd Shriber has been an InvestorPlace contributor since 2014. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post The 7 Best ETFs For Marijuana Bulls To Buy Right Now appeared first on InvestorPlace.

Shares of Aurora Cannabis Inc. climbed 1.8% in premarket trading after the Canada-based cannabis company announced moves to bolster terms of its credit facility. The company said it reached agreement with its lenders to extend the maturity of its credit facility to Dec. 31, 2022, and transitioned the facility to a "minimum liquidity covenant" from a minimum Ebitda (earnings before interest, taxes, depreciation and amortization) covenant, which Aurora said provides it with "greater financial flexibility to execute the business transformation plan." As part of that plan, Aurora said it has closed its Aurora Sun facility and cut production at its Aurora Sky facility by 75%. "These hard decisions are being taken to improve cashflow and provide agility to our business," said Chief Executive Miguel Martin. The company also said it was shifting to a more variable cost structure, has expanded its network of external supply. The announcement comes as rivals Tilray Inc. and Aphria Inc. announced a merger to create the largest global cannabis company. Aurora's stock has plunged 60.6% year to date through Tuesday, while the ETFMG Alternative Harvest ETF has dropped 11.2% and the S&P 500 has gained 14.4%.

Shares of Tilray Inc. soared 30.8% in premarket trading and Aphria Inc.'s U.S.-listed stock surged 9.9%, after the Canada-based cannabis companies announced a merger, which they say will create the largest global cannabis company, with a combined equity value of about $3.9 billion. After the deal closes, which the companies said was structured has a "reverse acquisition" of Tilray, Aphria shareholders will own 62% of outstanding Tilray shares. The announcement comes after reports surfaced late Tuesday that the companies were in advanced merger talks. Under terms of the merger deal, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own, while Tilray shareholders will see no adjustment to their holdings. The "reverse acquisition" of Tilray represents a 23% premium to Tilray's stock closing price of $7.87 on Tuesday. Tilray's stock has tumbled 54.1% year to date through Tuesday, while Aphria shares have rallied 55.6%, the ETFMG Alternative Harvest ETF has lost 11.2% and the S&P 500 has gained 14.4%.

Canopy Growth Corp. said Wednesday it is ceasing operations at four of its Canadian sites and ending outdoor cannabis grow in Saskatchewan, in a move that will impact about 220 employees. "These actions will be an important step towards achieving our targeted $150-$200MM of cost savings and accelerating our path to profitability," Chief Executive David Klein said in a statement. "We are confident that our remaining sites will be able to produce the quantity and quality of cannabis required to meet current and future demand." The sites to be closed are St. John's, Newfoundland and Labrador; Fredericton, New Brunswick; Edmonton, Alberta; and Bowmanville, Ontario. The company is expecting to book pretax charges of $350 million to $400 million in the third and fourth quarters of fiscal 2021 to cover the costs of the moves. The sites are equal to about 17% of the company's indoor Canadian footprint and all of its outdoor footprint. U.S.-listed shares were down 0.7% but have gained 37% in the year to date, while the Cannabis ETF has gained 5% and the S&P 500 has gained 14%.

Leading thematic ETF issuer, ETF Managers Group LLC (ETFMG®), announced today that the ETFMG Alternative Harvest ETF, better known as MJ®, has again joined the "billion-dollar club." After less than 3 years of trading on the NYSE, MJ® achieved the impressive milestone of exceeding $1 billion assets under management (AUM) on December 4, 2020.

Cannabis stocks and the ETFs have surged lately on hopes of the legalization of marijuana at the federal level under Biden presidency.

Cannabis stocks have been on fire ever since Election Day 2020, with the ETFMG Alternative Harvest ETF (NASDAQ:MJ) rallying 45% since early November on the idea that a Joe Biden Presidency will pave the path for federal decriminalization and legalization of cannabis in the all important U.S. market. Leading this rally, of course, has been the cannabis industry’s biggest producer, Canopy Growth (NYSE:CGC). CGC stock has surged more than 50% since early November. Source: Shutterstock This optimism is not misplaced. It increasingly appears that the federal legalization of cannabis in the U.S. is a matter of “when”, not “if”. It also increasingly appears that with the right laws in place, legal markets across the globe can and will eventually attract demand away from the black market — and that this legal channel demand will inevitably be rather larger.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Connecting those dots, the global stage is set for the long overdue pot stock boom to finally come to life over the next few years. As it does, CGC stock will stay in rally mode. Here’s a deeper look. Canada Turning a Corner For the last several years, cannabis stocks (right on down to Canopy Growth) have been crushed under the weight of lofty expectations. But now? The tide is turning, and cannabis is about to break through in a big way. 7 Hot Stocks Only Getting Hotter As Winter Approaches Just look to Canada, a country where cannabis market restrictions were eased to form an improved legal framework. That framework is finally pulling demand away from the black market and into the legal market. So what is Canada implementing differently? For starters, they’ve moved retail store openings from a “lottery system” to an “open licensing” model; brought cannabis derivatives, such as edibles and beverages, into the market to meet consumer demand; and slashed the price of legal pot beneath black market street prices. As a result, in the second quarter of 2020, Canada’s legal pot market has now bested its spending in the black market. U.S. Legalization on the Horizon At the same time, U.S. legalization efforts are starting to gain serious momentum. Of the five states with cannabis legalization on the ballot, all five passed it. Even conservative states such as Montana and Arizona have gotten in on the cannabis craze. What’s more, President-elect Joe Biden has signaled that his administration would federally decriminalize cannabis. That’s a significant step towards eventual nationwide legalization. If you’re keeping score, that means Canada’s legal cannabis market is on the cusp of finally coming into its own and the U.S. legal cannabis market is ready to come to life. The stage is set for this struggling industry to shift into hypergrowth, which bodes very well for Canopy Growth stock. Canopy Growth Is an Attractively Positioned Leader Canopy Growth is already the unrivaled leader in the global cannabis market, in terms of market value, sales, product distribution, and production volume. By itself, this early leadership position puts Canopy Growth is a great place to benefit from the rising cannabis tide over the next few years. But Canopy Growth is more than just big. The company also more resources than any other cannabis producer in the world to further extend its dominance. Early on, Canopy Growth leveraged its leadership position to score a huge investment from global alcoholic beverage giant Constellation Brands (NYSE:STZ). Thanks to that big investment, Canopy Growth has more than $1.3 billion in cash and short-term investments on its balance sheet. By comparison, most of Canopy’s peers as so cash strapped that they have major liquidity risks. Thus, Canopy’s big resource advantage means that as the global cannabis market booms over the next few years, Canopy will be able to invest in various emerging growth opportunities while its peers simply try to stay afloat. The result, of course, is that Canopy will be even more dominant player in the cannabis market in five years than the company is today. At the same time, Canopy Growth has taken big steps over the past few years in order to streamline operations, reduce its cost basis, and improve cash flows. This sets the stage for Canopy to be a more profitable producer going forward, meaning that big revenue growth in coming years will flow into big profits, too. Net net, Canopy Growth — and by extension, CGC stock — is attractively positioned to benefit from the coming pot stock boom. Canopy Growth Stock Has Upside Potential The last thing to address here is valuation. My numbers imply that CGC stock is fairly valued around $30 per today. Those numbers assume that the global cannabis market surges to be worth more than $50 billion by the end of the decade, Canopy Growth controls about 10% of that market, and operating margins rise to around 20% (which is roughly where they hover in the alcoholic beverage industry). Those are reasonable assumptions. Indeed, I’d say they are fairly conservative. The global cannabis market could march to $100+ billion in size by 2030. Canopy could control closer to 20% share. Operating margins could pan out around 30%. In other words, my $30 price target on CGC stock should be seen as a conservative price target. If a few things go right for this company, the stock is worth much more than $30. Bottom Line on CGC Stock For years, CGC stock has been a disappointment. That disappointment phase is now coming to a close. What comes next is the hypergrowth phase. During that phase, CGC stock will be a big winner. On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.  The New Daily 10X Stock Report: 98.7% Accuracy – Gains Up to 466.78%.  InvestorPlace’s brand-new and highly controversial newsletter is rocking the industry, delivering one breakthrough stock recommendation each and every trading day delivered straight to your inbox. 98.7% Accuracy to Date – Gains Up to 466.78%. Now, for a limited time, you can get in for just $19. Click here to find out how. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Stick With Canopy Growth Stock Below $30 appeared first on InvestorPlace.

Yahoo Finance's Jessica Smith joins Kristin Myers to discuss the House's historic vote to decriminalize marijuana at a federal level.

Marijuana stocks popped on Wednesday after a United Nations commission voted to remove cannabis from Schedule IV of the 1961 Single Convention on Narcotic Drugs, a list that includes heroin and fentanyl.

The U.S. House of Representatives is set to vote for the first time on ending the federal prohibition of cannabis. Yahoo Finance's Jessica Smith joins Kristin Myers to discuss.

The broader stock markets rose Monday to kick off the month of November, but without much help from tech and tech-esque mega-caps.

Shares of cannabis companies rallied Tuesday, after the Trump administration made its first move late Monday to accept Joe Biden as president-elect by saying it was ready to begin the formal transition process. The ETFMG Alternative Harvest ETF surged 6.1% in premarket trading. It had shot up nearly 20% in the days following the election, on expectations Joe Biden will push for cannabis reform, then pulled back as President Trump continued to dispute the results. Among the more-active cannabis stocks in the premarket, the U.S.-listed shares of Aurora Cannabis Inc. soared 29.5%, Tilray Inc. shot up 19.2%, Canopy Growth Corp. climbed 7.6% and Cronos Group Inc. ran up 10.4%. The MJ ETF has rallied 26.5% so far this month through Monday, while the S&P 500 has advanced 9.4%.