Marijuana Stocks

Cannabis industry leaders are launching the Council for Federal Cannabis Regulation. The goal of this independent, tax-exempt nonprofit is to help cannabis become a mainstream consumer goods product by educating federal regulators, legislators and people from outside the industry. Sheri Orlowitz, founding partner of Artemis Holdings and a Marijuana Policy Project board member, introduced the council and its team members Monday at the Benzinga Cannabis Capital Conference in Miami Beach.

In a relatively slow cannabis news week, we saw Democratic presidential candidate Mike Bloomberg issue share a criminal justice reform plan, which included proposals for the decriminalization of cannabis possession and the expungement of criminal records concerning cannabis convictions. On the other hand, Marc Lotter, President Donald Trump’s director of strategic communications said the federal government has no intention in legalizing marijuana. In Colorado, the Department of Revenue said cannabis sales were close to $1.75 billion in 2019.

Marijuana bulls have good reason to fear being duped again by the recent bounce in the sector, but there are some underlying technical signals that suggest this time, the outcome will likely be different.

Here's why cannabis stocks may have bottomed out. Gain exposure through these two leading pot companies or a marijuana-themed ETF.

Christina Stembel clearly remembers the day after California legalized recreational marijuana.

Canopy Growth Corp. reported earnings early Friday that gave investors a few reasons to cheer: In short, it wasn’t a total disaster.

MKM Partners upgraded the stock to Neutral, saying major bad news isn't likely in the short term.

Aurora Cannabis Inc. shares rose Thursday, after the company posted a set of earnings that were mostly expected, after the company last week unveiled a major overhaul of its operations.

The U.S.-listed shares of Canopy Growth Corp. rocketed 16% in premarket trading Friday, after the Canada-based cannabis company reported a narrower-than-expected fiscal third-quarter loss and revenue that rose above forecasts, amid strength in business-to-consumer sales. The company reported a net loss of C$124.2 million ($93.8 million), or 35 cents a share, after net income of C$74.9 million, or a loss of 38 cents on a per-share basis. That beat the FactSet consensus for a loss of 52 cents a share. Net revenue rose 49% to C$123.76 million ($93.46 million), above the FactSet consensus of C$105.0 million. Recreational business-to-business cannabis sales fell 11% to C$53.5 million. as a 42% increase in dry cannabis sales was offset by an 86% drop in oil and softgels. Recreational business-to-consumer cannabis sales increased 32% to C$15.2 million, as dry cannabis sales grew 24% and oil and softgels jumped 183%. Canadian medical cannabis sales fell 7% to C$14.8 million and international medical sales rose nearly 7-fold (up 593%) to C$18.7 million. Gross margin was 34% while free cash flow was negative C$359.6 million. The stock has run up 23% over the past three months through Thursday while the ETFMG Alternative Harvest ETF has lost 7.9% and the S&P 500 has gained 9.0%.

Aurora Cannabis Inc. shares fell 4% in premarket trade Thursday, after the Canadian cannabis company posted its fiscal second-quarter earnings, but declined to offer any details of its net losses. The company was expected to reveal a loss of about C$1 billion ($750 million) thanks to goodwill and asset-impairment charges that it disclosed last week. On Thursday, the company said it had net cannabis revenue excluding provisions of C$63.2 million, in line with guidance of C$62 million to C$66 million for the quarter, net of excise taxes. The guidance was part of a major overhaul of operations that included the departure of former CEO Terry Booth, cost and job cuts and the asset impairment charges. The company said average net selling prices for cannabis, including provisions, fell to C$5.54 per gram from C$5.68 in the prior quarter. Aurora produced 30,691 kilograms of cannabis in the quarter, compared to 41,436 kilograms in the prior quarter. Looking ahead, "Aurora reiterates its outlook for fiscal third quarter that cannabis revenue will be impacted by previously mentioned industry headwinds, and as such will likely show modest to no growth relative to fiscal Q2's cannabis revenue, excluding provisions, of approximately $65 million," the company said. Shares have fallen 80% in the last 12 months, while the ETFMG Alternative Harvest ETF has fallen 55% and the S&P 500 has gained 23%.

Canopy Growth (NYSE:CGC) stock remains one of my top picks as a long-term winner in the cannabis space. But in the short term, Canopy and other cannabis stocks continue to struggle.Source: Shutterstock That's not terribly surprising. Recent fears of the coronavirus from China have rattled the markets. Before that, a slower-than-expected rollout of recreational products in Canada led to disappointing growth -- and a massive selloff in cannabis names.But even the recent volatility provides an opportunity. As regular readers of my Cannabis Cash Weekly know, we've been selling covered calls on CGC stock and other cannabis plays. Higher volatility means higher premiums -- and higher returns.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNimble trading can create opportunities in almost any environment. With Canopy Growth earnings due on Friday morning, investors need to stay on their toes. Two Big Days for Cannabis StocksSince stabilizing in November, cannabis stocks have tried to rally. I use the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) as a proxy for the sector. After bouncing in January, that exchange-traded fund once again is testing short-term support:Source: Provided by Finviz The ETF actually sits a few pennies below November lows. That's not enough to predict another leg down for the sector -- yet. But certainly sentiment toward the sector remains bearish. * 7 U.S. Stocks to Buy on Coronavirus Weakness Two industry leaders have a chance to reverse that sentiment this week. Aurora Cannabis (NYSE:ACB) reports earnings on Thursday morning, and Canopy the following day.It remains to be seen whether the two companies finally can drive optimism toward the sector. "Cannabis 2.0" products in Canada represent a significant growth opportunity, and should contribute modestly to fourth-quarter results. Earnings reports last month from Aphria (NYSE:APHA) and OrganiGram (NASDAQ:OGI) led the sector to bounce. There's hope for a repeat this week and next.But there are reasons for caution as well. Aurora has laid off workers. Canopy announced that its cannabis-infused beverages would be late to market. Neither move suggests blowout earnings are on the way. And so investors waiting for a big rally in cannabis names may have to wait a little longer. The Long-Term Case for CGC StockOf course, that's not a bad thing. My longer-term outlook toward cannabis is extremely bullish. But investors need to pay attention to short-term factors as well -- and capitalize on them.So we've looked to sell covered calls on CGC stock. The strategy results in either positive short-term gains if the stocks are called away, or a reduced cost basis if they're not.Covered calls allow investors to play the short-term trading we've seen in recent months while maintaining flexibility toward the long-term opportunity. And from a long-term standpoint, Canopy Growth remains the stock to own.The multi-billion dollar investment from Constellation Brands (NYSE:STZ, NYSE:STZ.B) gives Canopy a sizable war chest. It's also allowed Canopy to develop a vertically integrated model that spans everything from production to retail.Brands like Tweed and Tokyo Smoke will drive consumer sales with higher profit margins. Spectrum Therapeutics offers exposure to worldwide growth in medicinal marijuana.Simply put, Canopy Growth is the industry leader in an industry that will, over the long term, grow exponentially. Investors can't ask for anything more.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 U.S. Stocks to Buy on Coronavirus Weakness * 7 Smart Blue-Chip Stocks to Buy Now * 7 Low-Volatility Stocks to Buy In Jittery Times The post Canopy Growth Stock Remains a Long-Term Buy Ahead of Earnings appeared first on InvestorPlace.

Marijuana ETFs lagged the broader market Friday after Aurora Cannabis (NYSE: ACB) plunged on a spate of bad news from an exiting co-founder and chief executive, among others. Among the worst performing ...

Acreage Holdings Inc. said Friday it has secured financing that is non-dilutive to its planned equity deal with Canadian cannabis company Canopy Growth Corp. . The company said it has secured a $100 million credit facility with a $50 million private loan partly provided by Chief Executive Kevin Murphy to act as cash collateral, and completed a private placement of $30 million in warrants. The company can draw down an initial $49 million of the credit facility, giving it immediate funds of about $79 million. The deals "significantly improve Acreage's financial position to continue to execute on its vision while establishing paths for further additional non-dilutive and shareholder-friendly financing transactions," the company said in a statement. Canopy, the market leader thanks to a $4 billion investment from drinks giant Constellation Brands Inc. , has a deal that will allow it to take over Acreage once cannabis restrictions in the U.S. have been eased. Acreage is a multi-state operator that is headquartered in New York City with operations in 20 states. MKM analyst Bill Kirk welcomed the news. "Given the language around future financing in the release, we believe Acreage will continue to have access to capital as needed," he wrote in a note. "Where many have struggled to find any form of capital, Acreage is secure." Acreage shares were down 7% after the news, and have fallen 75% in the last 12 months, while the ETFMG Alternative Harvest ETF has fallen 55% and the S&P 500 has gained 23%.

The New Hampshire Senate approved the passage of a bill that could make it legal for medical cannabis patients and their caregivers to grow cannabis at home. What Is SB 420? The state already runs a medical cannabis program that went live in 2013 and has over 8,000 participants. If the Bill is signed by the Governor, it will allow each patient to possess three mature plants, three immature plants, and 12 seedlings.

Aurora Cannabis Inc. shares were halted for news pending in afternoon trading Thursday, amid reports the company is planing job cuts. Aurora is planning to lay off 10% of its staff, BNN Bloomberg reported. The company did not immediately respond to a request for comment. The stock fell 5.6% before the halt, and is down 74% in the last 12 months, while the ETFMG Alternative Harvest ETF has fallen 52% and the S&P 500 has gained 22%.

Shares of Aurora Cannabis Inc. surged 4.3% in active trading Monday, after the Canada-based cannabis company said that it has received all necessary approvals from local regulators in Germany to sell medical cannabis products. The approvals follow a temporary sales suspension on certain products in December. The company said it will fulfill existing sales orders from inventory currently held in Germany. Separately, Aurora said it's production facility in Bradford, Ontario received European Union Good Manufacturing Practice (EU GMP) certification. The EU GMP certification is required to export medical cannabis products into most European markets. Aurora's stock has tumbled 44.9% over the past three months, while the ETFMG Alternative Harvest ETF has dropped 14.7%.

GW Pharmaceuticals PLC said Monday it has submitted a supplemental New Drug Application (NDA) to expand the label for Epidiolex cannabidiol oral solution, CV, to include the treatment of seizures associated with Tuberous Sclerosis Complex (TSC). Epidiolex is currently indicated for the treatment of seizures associated with Lennox-Gastaut syndrome (LGS). "The submission of this sNDA for Epidiolex is an important step towards the prospect of offering a new treatment option for those patients with TSC who battle difficult-to-treat seizures," said Chief Executive Justin Gover. GW's stock, which is still inactive in premarket trading, has tumbled 15.3% over the past three months, while the ETFMG Altnerative Harvest ETF has dropped 15.6% and the S&P 500 has gained 5.2%.

Cannabis retailer MedMen Enterprises Inc. said Friday that Chief Executive and co-Founder Adam Bierman is stepping down from his role on Feb. 1. The company said it will consider internal and external candidates in seeking a CEO replacement. Bierman will remain on the board, including as part of the board to be elected at the company's coming shareholder meeting. But he has agreed to surrender all of his class A super voting shares back to the company. Co-Founder Andrew Modlin granted a proxy for all of his super voting shares to the company's Executive Chairman Ben Rose until December 2020, after which he will give them back to the company. That will leave the Los Angeles-based company with just one class of shares, the class B subordinate voting shares which give the holder one vote. Shares rose more than 12% on the news but are down 87% in the last 12 months, while the ETFMG Alternative Harvest ETF has fallen 52% and the S&P 500 has gained 21%.

Sundial Growers Inc. shares slid 19% in premarket trade Thursday, after the Canadian cannabis company announced a series of executive changes, including the departure of its CEO and COO, and launched a cost-cutting program. Calgary-based Sundial said Chief Executive Torsten Kuenzlen has resigned as CEO and will step down as a director with immediate effect. Zach George, currently a board member, will take over as CEO. Ted Hellard, executive chairman, will resign from that role but remain on the board and continue to head the M&A committee. Brian Harriman, COO, will be leaving the company and his portfolio will be transitioned to Andrew Stordeur, currently president of Canadian operations, who will become COO. Responding to slower-than-expected approvals of new stores in Canada, the company is launching a cost-cutting program aimed at realigning product lines and improving efficiency. It expects measures to generate cost cuts of about C$10 million ($7.5 million) to C$15 million in fiscal 2020. Shares have fallen 14% in 2020 to date, while the ETFMG Alternative Harvest ETF is flat and the S&P 500 has gained 1.3%.

If you ask any stoner who the OG’s of cannabis culture are, they’ll likely say Snoop Dogg, B Real or Cheech and Chong. At 80 years of age, the Canadian actor, who rose to fame as part of the Grammy-winning comedy duo Cheech and Chong, is more active than ever. While advocating for cannabis use on and off the screen and running his pot business Chong’s Choice like a well-oiled machine, he also managed to beat cancer and win a Willie Nelson Lifetime Achievement Award.