Marijuana Stocks

The push for legislation that would allow banks do business with cannabis companies without the risk of federal enforcement action is gaining momentum and credit unions are playing a key role.

Picking the wrong time to debut has proven difficult for Pure Cannabis.

California just made public its cannabis excise taxes numbers for the first quarter of 2019. Based on the reported figures, total adult use sales rose by 92 percent year-over-year, from $213 million in the first quarter of 2018 to $409.3 million for the first quarter of 2019. “Most of the growth is attributed to ‘preregulated’ inventory that was sold through in the first quarter of 2018 but not taxed,” Matt Karnes, founder and managing partner of GreenWave Advisors, told Benzinga.

Blair was the driving force behind the Cannabis Act during this tenure as a Member of Parliament. Among the studies that will be conducted at the university, there’s one focused on cannabinoid hyperemesis syndrome (CHS). “Experiencing Cannabinoid Hyperemesis Syndrome has been challenging physically and mentally," Alice Moon, Director of Communications for Blunt Talks and vocal advocate for CHS awareness told Benzinga.

The cannabis market is expanding so fast that keeping up with all of the different companies jumping into the business and going public is near impossible. At the same time, some of the developments under the radar of the general market provide opportunities for investors willing to take on risk.One suddenly interesting play in the Canadian cannabis sector is Zenabis Global (ZBISF) that was formed via a RTO merger in January. The company is a potential hidden giant in the making.Major PlansZenabis Global definitely talks a big game. The licensed cultivator of medical and recreational cannabis was formed in January via the combination of Bevo Agro, Inc. and Sun Pharm Investments Ltd.The combination provided a propagation business with greenhouses in North America with a large privately held cannabis producer that operates four facilities intended for cannabis cultivation. Zenabis has a stated plan to reach cannabis production capacity of 131,300 kg in Q3 with a total design capacity of 479,300 kg.The company has very lofty goals for a cannabis player that has yet to top 1,000 kg in monthly cultivation. New CEO Andrew Grieve shared the following corporate objectives along with the conditional approval of “ZENA” joining the Toronto Stock Exchange: * Becoming one of the largest licensed producers of medical and adult-use cannabis in Canada and securing competitive positions in a number of international markets. * Achieving industrial scale cultivation of top-quality cannabis at a low cost. * Rolling out a large offering of ultra premium, premium and value cannabis products to the market through our significant distribution networks.The interesting part is that the stock only has a market cap of $250 million despite all of the large-scale plans in the Canadian cannabis sector. The Sun Pharm portion of the business generated Q4 revenues of C$3.8 million primarily from the medical and recreational cannabis market in Canada while the main Bevo greenhouse is being converted to grow cannabis.Another interesting part is that Zenabis under the new leadership of Andrew Grieve has taken on the stance of providing transparent details on monthly cultivation numbers and plans. The existing licensed Zenabis facilities have the following cultivation targets:Source: Zenabis press releaseMajor UplistingThe biggest news for the stock could be the impending uplisting to the TSE. The company announced conditional approval on April 22. Such a move could lead to a listing on a major exchange in the U.S. similar to the big Canadian LPs that obtained outsized market valuations.The company might be better off pursuing business in the U.S. cannabis market, but a move to the TSE will provide substantially more liquidity for the stock and hence a much higher valuation in the short term. The major exchanges don’t allow for listings of companies with a business that is illegal on a federal level such as cannabis in the U.S.The stock is already down substantially from the highs following the news of the RTO merger. The next key catalyst along with the TSE uplisting that would provide major credibility to the new cannabis firm is Q1 earnings on May 30. The report will provide the first financials of the new company along with analyst access to the CEO and new CFO.TakeawayThe key investor takeaway is that Zenabis Global has an incredible plan to turn the greenhouse and growing expertise of Bevo Agro along with the cannabis licenses of Sun Pharm to build a cannabis industry leader.The market hasn’t taken notice of the stock yet. The current valuation near $250 million is not reflective of the potential growth of the company with one of the largest cannabis cultivation plans.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Disclosure: The author has no positions in Zenabis Global stock. More recent articles from Smarter Analyst: * Love or Hate Aurora Cannabis (ACB) Stock, That’s Where the Money Is * Micron's (MU) Tech Roadmap Highlights Flattening Cost Curve, Says Analyst; Reiterates Neutral on the Stock * Time to Cash Out on Cannabis Stock Canopy Growth (CGC) * GW Pharmaceuticals (GWPH) Stock Could Run Much Higher Over Time

Tilray Inc. said its Portugal-based wholly-owned subsidiary, Tilray Portugal Unipessoal Lda. has received a Good Manufacturing Practices (GMP) certification and a standard manufacturing license, which allows Tilray Portugal to export GMP-certified dried cannabis for medicinal products. "This licensing and certification marks a critical milestone for our growth in Portugal and Europe," said Sascha Mielcarek, managing director of Europe. "We're proud to increase our international export capacity and are looking forward to exporting dried cannabis as active substances from our EU Campus to legal jurisdictions in the EU and other international markets." The stock fell 0.6% in premarket trade. It has tumbled 41.5% over the past three months, while the ETFMG Alternative Harvest ETF has slipped 6.8% and the S&P 500 has gained 2.3%.

Already one of the world's largest markets in terms of sheer number of cannabis exchange traded funds, Canada is breaking new ground as the home to the world's first inverse and leveraged marijuana ETFs. ...

Major political disputes often create unpredictable ripples in the world of cannabis. When President Donald Trump caused a government shutdown because legislators wouldn’t fund his border wall, that meant government workers were left without pay or medical services. Like, for example, when the Cato Institute discovered legalizing marijuana would do more to curb illegal drug smuggling than a wall ever could.

Why Canopy Growth Is on the Rise Today(Continued from Prior Part)Cannabis sectorThe cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half. During the first half of the

Aphria Stock Rises on Cultivation License in Germany(Continued from Prior Part)Cannabis stocks gainToday, the cannabis sector was making positive moves after last week was fraught with pessimism due to trade tensions. HEXO (HEXO) was up 1.3% while

Shares of Aurora Cannabis Inc. rallied 1.5% in premarket trade Tuesday, after the Canada-based cannabis company announced a "multi-year, multi-million dollar" exclusive partnership with UFC to advance research on the relationship between of hemp-derived cannabidiol (CBD) products and athlete wellness and recovery. The research will be conducted at the mixed martial arts organization's performance institute in Las Vegas, with clinical studies to focus on pain management, inflammation, injury/exercise recovery and mental well being. "This global partnership places focus squarely on the health and well-being of UFC's talented and highly trained athletes," said Aurora Chief Executive Terry Booth. "The Aurora-UFC research partnership creates a global platform to launch targeted educational and awareness campaigns, while creating numerous opportunities to accelerate our global CBD business." Aurora's stock has soared 71.2% year to date through Monday, while the ETFMG Alternative Harvest ETF has climbed 33.3% and the S&P 500 has gained 13.3%.

The estimates in the Brightfield Group report imply a compound annual growth rate (CAGR) of 20 percent over the next four years. The recreational market is expected to lead the charge, at least in 2019, delivering 33 percent growth, driven by a variety of factors including the stabilization of the market in California and new adult-use markets coming online. Brightfield Group’s estimates assume the number of active adult-use states (meaning those currently selling products, versus those with laws in place but no real sales) will surge from seven in 2019 to 16 by 2023.

While this provides a rare wealth-creation opportunity, the road to maturity for this emerging market is also unusually impacted by legislation, taxation, regulation and margin normalization across every investable sector. Cannabis is poised to impact every vertical in the economy, following a path similar in some ways to the one technology took when it went from being a sector to becoming an undeniable part of every sector. Lessons from previous cycles can serve as a useful guide towards better decisions for the informed investor.

The words, "Dad, you said the 'F' word!" were delivered in an authoritarian manner from the back seat. In that instant, I had an "F word" flashback. One night's vivid memory: an Ozzie and Harriet, nuclear family kitchen scene: white Formica table, yellow pleather chairs, table set perfectly.

Canopy Growth (NYSE:CGC) just isn't getting as high as it used to. But CGC stock isn't alone. The marijuana stocks have lost a lot of their buzz lately. The sector fund, the Alternative Harvest ETF (NYSEARCA:MJ) has dropped roughly 15% from its recent highs in March. On top of that, its current $33 share price is well off the $45 level where marijuana stocks peaked just before Canada's legalization went into effect last fall.Source: Shutterstock CGC stock has fared better than many of its rivals. But its stock hasn't been able to hit new highs in awhile either, as the $50 price level has been key resistance. With the company making major acquisitions ahead of earnings and short sellers betting the farm against the stock, expect CGC stock to make big moves in coming weeks. CGC Stock ConsAcreage Deal Isn't A Standard Acquisition: Canopy Growth recently announced a deal to purchase Acreage Holdings (OTCMKTS:ACRGF). This deal is a rather odd one for a number of reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy that Lost 10% Last Week To start with, the deal is contingent on the U.S. legalizing marijuana federally. The deal is structured with a 90 month (7 and a half years) time limit. It will be terminated if federal legalization doesn't occur within that time frame. As it is, Canopy is taking some risk. That is because it is paying a not insubstantial $300 million upfront for the deal, along with far more than that in CGC stock once the deal closes.Given that the deal could take ages to close, Canopy could be giving up a lot of value with its shares. That will depend on where the share price is in coming years. Additionally, there's a risk that Acreage shareholders will oppose the deal, as Canopy is offering a rather modest premium for the acquisition.CGC Stock Hitting Major Resistance: From a technical analysis standpoint, Canopy Growth stock is starting to get itself into trouble. For the better part of a year now, CGC stock has stopped dead in its tracks every time it reaches near the $50 mark.Canopy Growth stock first hit the $50 level last fall. It spent the better part of September trading around that figure. Shares subsequently dumped all the way to $25. But CGC stock bounced back, hitting $50 again in January. That rally petered out, and shares declined 20%. In April, CGC stock again briefly reclaimed the $50 level but has already dropped back almost 15% since that point. $50 is turning into a major resistance point for Canopy stock. Going forward, bulls need to get the stock to close above $50 before serious trading momentum can get going again.Valuation Is Still Strained: Canopy Growth -- and most of its publicly traded rivals that focus on recreational marijuana -- have yet to deliver compelling earnings. In fact, for many firms, free cash burn has actually gotten worse. Companies keep ramping up their growth expenses without enough revenues to offset those costs just yet.Already, we're starting to see issues on the revenue side. The price of recreational marijuana keeps dropping, sales volumes are flattening out, and producers seemingly have a huge oversupply of marijuana on hand. Canopy still has time to find its way to profitability thanks to the Constellation (NYSE:STZ) cash infusion. But it's burning through that money awfully quickly.Not only are the operations losing money, but it keeps making big purchases like Acreage and the German deal announced earlier this month for close to another $250 million. CGC Stock ProsDeals Could Pay Off Big: While these latest deals certainly come with risk, they could pay off for Canopy. The German deal, acquiring the C3 Cannabinoid Compound Company looks interesting in particular. C3 has developed various products to treat pain in cancer patients, among other uses.C3 already has a healthy $30 million or so in annual revenues. This suggests that Canopy only paid about 8x annual sales for the deal. Compared to many of the deals going off in the hyped-up marijuana space, that's a defensible valuation. $30 million in (presumably fast-growing) annual revenues will be enough to move the needle for Canopy Growth more generally as well.CGC Stock Holding Up Better: Canopy Growth stock is having a mighty difficult time trying to break out above the $50/share level. But at least it is still somewhere near its recent trading highs.Other pot stocks have gotten crushed lately. Cronos (NASDAQ:CRON), Aurora (NYSE:ACB) and Aphria (NASDAQ:APHA) have all fared worse than Canopy. There's a lot of value in being the strongest performing major stock within the industry. When marijuana stocks rally as a group, it may be enough to power CGC stock past that $50 barrier and onward to new all-time highs.Short Squeeze Potential: As I sometimes warn, you generally shouldn't base a whole investment thesis on the potential for a short squeeze. That said, if you are already considering taking a long position, high short interest could be the thing that causes the stock to run in the short term.Canopy Growth's stock has an incredible 75 million shares shorted (on its U.S. listing). That makes up 35% of the float. This is among the highest short ratios you'll find out there for a large widely-traded stock today. Clearly short sellers are betting on Canopy's next earnings report being a dud. That would be in line with what other pot players have produced recently. But if they're wrong, the stock could make a violent move higher. CGC Stock VerdictI don't see this as a great time to get into CGC stock. The firm has outperformed its other marijuana peers recently. But a poor earnings report could drive CGC stock right back down with the rest of the pack. Given how strong the $50 resistance level has been, bears are logically pressing their bets here. * 3 Reasons Not to Sell Canopy Growth Stock If Canopy Growth can deliver a strong earnings report, that would change everything. But until investors see a clearer path to profits and a more stable business trajectory, odds will continue to favor the bears. I'd stick to the sidelines in Canopy stock for the time being.At the time of this writing, Ian Bezek held no positions in any of the aformentioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post Should You Buy Canopy Growth Stock? 3 Pros, 3 Cons appeared first on InvestorPlace.

The Department of Justice (DOJ) updated its guidance to help prosecutors to evaluate corporate compliance programs.  Prosecutors rely on this guidance when evaluating business organizations during an investigation, determining whether to bring charges or when entering into a plea agreement. Is it applied effectively so that it mitigates risk identified during a risk assessment process?

With both deaths occurring near hospitals servicing the Department of Veterans Affairs, the VA was very much in the spotlight, as the media and citizens tried to make sense of the far-too-common tragedy of veteran suicides. Veterans have a hard time getting access to the plant: the VA is a federal agency and therefore must follow federal laws.

Fintech company Promontory Interfinancial Network recently conducted a survey of bankers in the U.S. Results showed that 82 percent of respondents think the federal government should allow them to serve ...

Today after the market closes, Aurora Cannabis (ACB) is set to report FQ3 numbers for the March quarter. The numbers are crucial as they provide insight into the troubling sales of legalized cannabis in the Canadian adult-use market. With all data points suggesting weak legal sales, the company has a high hurdle to match analyst estimates for sequential revenue growth.Downside RiskAnalysts forecast Aurora to lose 50 cents per share on revenue of C$67.5 million. The company generated net revenues of C$54.2 million and net cannabis revenue of C$47.6 million in the December quarter and lost a substantial C$238 million due to investment losses.The risk here is to the downside with reported monthly sales in Canada remaining relatively flat. The only revenue growth is likely to come from recent acquisitions like Whistler Medical Marijuana Corp. that closed during the March quarter.A couple of key figures for the quarter are the gross margin and the average net selling price. In FQ1, Aurora saw the gross margin dip to 54% and the selling price for dried cannabis fell 26% sequentially to C$6.23 per gram. Any weakness here is problematic for the stock.The lack of organic growth would normally crush a pricy stock, but the stock market is likely to still latch onto high hopes for the global cannabis market.High Hopes The question Aurora needs to answer for investors is what happens with the additional supply hitting the market this quarter. The large cannabis company has long projected reaching an annual production rate of 150,000 kg by the end of March.Due to the time period for the cannabis supplies to reach the market, Aurora forecasts 25,000 kgs available for sale in the June quarter. The number is 3.5x the 6,999 kgs sold in the December quarter while demand is not growing due in large part to the illegal market.Along with the forecast for the higher production and sales level, management promoted the concept of Aurora being EBITDA positive in the June quarter. With the quarter halfway over, the risk is that management has to walk back this target due to lackluster sales and prices.Aurora raised their total projected capacity from 500K kg to 625K kg back in early April, which it expects to reach my mid calendar 2020. A big question remains the justification of increasing planned capacity by 25% without any sign that all of the existing cannabis capacity will be absorbed. Any failure to explain this corporate decision could weigh on the stock.Some potential upside comes from Ontario opening up additional retail stores after having an initial restriction of retail stores and the consumables market opening up in October. The addition of vapes, edibles and beverages will open up new revenue streams currently restricted, but the company has a lengthy period to transition to these new products.TakeawayThe key investor takeaway is that Aurora stock is in a precarious position where the company will have a difficult time maintaining previous lofty projections. With about 1.1 billion shares outstanding, the stock still has a market value of ~$9 billion despite the dip to multi-months lows at $8.The risk is to the downside, if management confirms some of the worst fears regarding pricing, mounting losses and wild capacity expansion. The likely outcome is that Aurora stock still spins a bullish market thesis due to global expansion and the further opening up of the domestic Canadian cannabis market. The market likely gives the stock a pass on weak results.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on ACB: * Aurora Cannabis (ACB) Stock Is Still a Buy, Says Analyst * M&A to Save Aurora Cannabis (ACB) Stock in the End * The Cannabis ‘Magic Bus’ Is About to Leave the Station! Next Stops? Aurora Cannabis (ACB) More recent articles from Smarter Analyst: * Love or Hate Aurora Cannabis (ACB) Stock, That’s Where the Money Is * Micron's (MU) Tech Roadmap Highlights Flattening Cost Curve, Says Analyst; Reiterates Neutral on the Stock * Love or Hate Aurora Cannabis (ACB) Stock, That’s Where the Money Is * Time to Cash Out on Cannabis Stock Canopy Growth (CGC)

I hear it, and I’m taken to a distant place and time. Snapshots of formative years play like a grainy old newsreel. Images powerful and iconic; sounds and smells palpably memorable. My personal time capsule ...