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BenzingaEditorial

Cannabis Companies Entered 2021 With a Bang

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The Democratic win that joined the wave of state legalization is encouraging for the cannabis market. Based on their most recent quarterly filing, Canopy Growth (NASDAQ:CGC), Cronos Group (NASDAQ:CRON), GW Pharmaceuticals (NASDAQ:GWPH), Aphria (NASDAQ:APHA) that announced it will merge with Tilray (NASDAQ:TLRY) in mid-December and Trulieve Cannabis (OTC:TCNNF), entered 2021 with the most cash on their balance sheets.

But other stocks such as Curaleaf Holdings (OTC:CURLF), Cresco Labs (OTC:CRLBF), Planet 13 Holdings (OTC:PLNHF), Innovative Industrial Properties (NYSE:IIPR) and Green Thumb Industries (OTC:GTBIF) show a lot of potential as well, along with several powerful small caps.

Being cash-rich is not is as it seems

Aphria is yet to produce a net profit but it is in a great position to expand into the U.S. market as mass legalization continues. Another catalyst for growth is its announced $4 billion merger with Tilray.

Canopy Growth, the largest pot stock in the world, is once again the cannabis cash king with $1.37 billion in cash. The bulk of its cash came from multiple rounds of equity investments from spirits giant Constellation Brands (NYSE:STZ). While $1.37 billion in cash might sound fantastic, this is actually down by more than $2 billion compared to November 2018, which is when the large equity investment from Constellation Brands closed. Unfortunately, Canopy Growth is losing a lot of money, so its cash-rich position isn’t as secure.

Canadian licensed producer Cronos Group the second-most cash-rich pot stock. But like Canopy Growth, its cash of $1.3 billion is actually down from the previous year.

GW Pharmaceuticals ended the third quarter with a hearty $480 million but having plenty of cash is a must for companies that develop cannabinoid-based treatments due to the clinical, preclinical, and discovery-based costs, not to mention the success rate of trials. The good news is the company it appears ready to turn the corner to profitability in 2021 thanks to its lead drug Epidiolex.

U.S. multistate operator Trulieve Cannabis (OTC:TCNNF) entered the year with $193 million in cash on its balance sheet and it is generating the most robust cash flow of any pure-play company. Its success is owed to its willingness to stay laser-focused on the sunshine state. Out of its 75 operational dispensaries in total, 70 of which are located in Florida, allowing effectively build up its brand without overspending on marketing. As Florida is expected to legalize the use of recreational marijuana, there is significant room for growth even within its circle, not to mention if the company decides to go for the other states.

Other stocks worth watching

Curaleaf is a cannabis pure-play stock. With 93 locations across 23 states, it focuses on medical cannabis and even developed one of the first vaporizers for a medical dose.

The company is also marking its territory in the recreational pot sector with its vertically integrated business model offering a lot of potential.

Another medical marijuana stock at the top of its game is Cresco Lab. With undergoing legalization, its massive footprint across the nation provides a great opportunity for growth. Revenue in its previous quarter grew an impressive 326.6% YoY.

Planet 13 plans to expand its footprint in high-growth markets across the nation with its previous quarter sales already going up 36%, followed by EBITDA’s 84% growth.

Green Thumb Industries produces medical and recreational marijuana that is sold across the nation. Revenue growth was 131% YoY.

For all those risky-averse investors, Innovative Industrial Properties is a safe bet as it is not a traditional pot stock. As a real estate investment trust, the company rents out properties to medical cannabis producers, managing some 64 properties in 2020. Its major advantage is its unique position in the market that provides a massive opportunity for expansion, given that nearly half the states in the U.S. have legalized medical marijuana. Adding to this is its successful sales-leaseback program which has helped it keep cash levels high during the pandemic.

Small caps

There are several small caps who could end up disrupting the cannabis market. Khiron Life Sciences (OTC: KHRNF) is a pureplay health and wellbeing cannabis company from Latin America. Its unique patient focus combines a traditional pharma approach, wholly owned clinics and telehealth solutions that have the potential to bring medical cannabis to the next level.

Clever Leaves (NASDAQ: CVLR) went public through a SPAC in December. Although known for its medical cannabis presence in Colombia but it has a global cultivation footprint. It also has a supply agreement with Canopy Growth.

HempFusion Wellness Inc (TSX: CBD.U) a full spectrum CBD company that utilizes hemp plant with four brands in its portfolio just had its public debut as it is aggressively expanding into  doctor/practitioner and convenience channels.

Avicanna (OTC: AVCNF), a Toronto-based vertically integrated biotech biopharmaceutical company whose cosmetics, medical and pharmaceutical products are present in present also in the US, Europe and LATAM.

Takeaway

As far as cannabis legalization in the United States goes, there are still many obstacles to overcome. Additionally, the new administration will have their hands full trying to end the pandemic and tackle the devastated economy. But, there is still a lot of optimism for the cannabis industry that could result in a green light. The above companies are well-positioned to benefit from any kind of boost.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

This Week’s Recap

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The market and the economy continue to open, which is probably a result of bottled-up demand for many products and services affected by the pandemic. Maybe the inflation or rising bond yields will trigger the selloff on the market at some moment, but the current Fed’s transitory inflation message has been accepted by many investors. Also, the best way to deal with inflation is to stay with your investments and keep your faith in the market. So, despite the jump of May’s consumer-price index, that did not affect the investors who adopted a different mindset, so all three major averages finished in a positive zone.

The Dow Jones Industrial Average managed to recover from one of the steeper declines, thanks to gains from companies like IBM (NYSE: IBM), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The Nasdaq Composite Index has also risen 49.09 points to 14,069.42. The tech-heavy index continued with the positive run, led by DocuSign (NASDAQ: DOCU), Zoom Video (NASDAQ: ZM), and CrowdStrike (NASDAQ: CRWD).

Tuesday brought us an earnings report from Oracle

Although it was a slim week for the earnings reports, Oracle (NYSE: ORCL) announced its last quarter results, as well as plans and guidance. The results are better than expected, as the achieved revenues were $11.23 billion (compared to the expected $11.04 billion) and the achieved adjusted earnings of $1.54 per share (compared to the expected $1.31). On the other hand, the company revealed its quarterly revenue guidance, which is lower than expected due to the plans to increase investments to support its cloud strategy and keep migrating existing on-premises customers to the cloud. This all led to a share fall of 5%, as many investors are skeptical if Oracle can successfully compete with major “cloud” players like Amazon (NASDAQ: AMZN), Salesforce, or Workday (NASDAQ: WDAY).

Adobe reported impressive results on Thursday

The Wall Street analysts recognized the work-from-home trend and this second digitization era as the main reasons for Adobe’s (NASDAQ: ADBE) sustained growth and therefore a monster quarter. And they were right. The company reported revenues of $3.84 billion, which is an increase of 23% compared year to year. That is also above the Wall Street estimate of $3.73 billion. The digital media business revenues, consisting of Creative Cloud and Document Cloud, grew by 25% compared to the previous year. The adjusted earnings per share were $3.03, which is higher than the estimated $2.81. For the following quarter, the company expects revenues of $3.88 billion and adjusted earnings per share of $3.00.

Conclusion

All these factors taken together, proven by positive index movements and earnings results better than anticipated, support the fact that the economic recovery is firmly underway, and those are very encouraging news.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Several new earnings reports and more management presentations this week

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We might be witnessing the lower volume of quarterly earnings reports this week, but that only means we passed last quarter’s report peak and we are getting ready for the June-quarter earnings season, which will hit us not long after the 4th of July. However, we do not lack many management presentations, which are typical after announcing earnings reports. This week brings us news for future result expectations from more than 30 companies, so let’s try and not miss any important clues. Besides earnings reports, this week is bringing us a total of 9 new IPOs like Marqeta, Inc. (NASDAQ: MQ), TaskUs, Inc. (NASDAQ: TASK), LifeStance Health Group, Inc. (NASDAQ: LFST), monday.com Ltd. (NASDAQ: MNDY), Zeta Global Holdings Corp.(NYSE: ZETA) and Jaws Hurricane Acquisition Corp (NASDAQ: HCNEU).

Monday

Yesterday we saw the first quarter report of fiscal 2022 for Marvell Technology (NASDAQ: MRVL), a Delaware-based company that develops and produces semiconductors and related technology. Marvel Technologies reported new revenues of $832 million, which is an increase of 20% year-to-year. GAAP gross profit margin was 50.2% and non-GAAP gross margin was 64.3%, while GAAP diluted loss per share was $0.13 and non-GAAP diluted income per share was $0.29.

Also, Vail Resorts, Inc. (NYSE: MTN) which owns and operates several premier mountain resorts in Colorado and California, reported fiscal 2021 third-quarter results yesterday. The report showed a net income of $274.6 million which is an increase of 80% compared to the third fiscal quarter of 2020. The reported EBITDA was $462.2 million, which is a significant increase from last year same quarter’s $304.4 million.

Tuesday

Besides earnings reports from Navistar International (NYSE: NAV) and Calavo Growers (NASDAQ: CVGW) on Tuesday, we are also expecting reports from Thor Industries (NYSE: THO), Casey’s General Stores (NASDAQ: CASY), and ABM Industries (NYSE: ABM).

Wednesday

Wednesday is reserved for earnings reports from Brown Forman (NYSE: BF-B), United Natural Foods (NYSE: UNFI), and Restoration Hardware (NYSE: RH). RH, the California-based furnishing company is expected to report earnings of $3.99 per share, which is growth of over 214% compared to the same period last year. Also, GameStop Corp (NYSE: GME), one of the world’s largest video game retailer’s earnings report is expected on Wednesday. The expected loss for the first quarter is $0.68 per share, which is an improvement from the same period last year (-%1.61 per share). In order to accelerate its transformation, the company decided to restructure its board, so it can keep up with industry growth and company expansion in the digital arena.

Thursday

On Thursday, we expect to see reports from National Beverage (NASDAQ: FIZZ), Chewy (NYSE: CHWY), and Dave & Buster’s (NASDAQ: PLAY). Chewy, the Florida-based pet store retailer, is expected to report a quarterly revenue growth of over 125%, compared year over year.

Friday

We are not expecting any major earnings reports on Friday.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

The week may be starting slowly but do not let that mislead you

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The celebration of Memorial Day in the U.S. caused the slower start, but the rest of the week will bring us plenty of news, updates, and earnings reports from companies like Zoom Video Communications (NASDAQ: ZM), Hewlett-Packard Enterprise (NYSE: HPE), Advanced Auto Parts (NYSE: AAP) and Slack Technologies, Inc. (NYSE: WORK). This week will also bring us news from the EV and the IPO worlds, as well as the 2021 Bitcoin conference, one of the biggest cryptocurrency events this year. Before we move to the day-to-day highlights, if you are a small business owner, do not miss today’s deadline to apply for the latest round of the Paycheck Protection Program funding.

Tuesday

This week’s earnings reports will be led by Kirkland’s Inc (NASDAQ: KIRK), and that is due before the market opens. It will be followed by HP’s and Zoom’s earnings reports, after the bell. SoFi Technologies (NYSE: SOFI) is a fintech startup IPO joining the trading world after its SPAC merger on Friday.

 

Wednesday

Before the market opens on Wednesday, we are expecting the earnings reports from Advance Auto Parts and Lands’ End Inc (NASDAQ: LE). The reports will keep coming after the bell as well, so we are keen to see how NetApp Inc (NASDAQ: NTAP), Endeavor Group Holdings (NYSE: EDR), Splunk Inc (NASDAQ: SPLK), and PVH Corp (NYSE: PVH) did in the previous period. Wednesday is also the day when we are expecting the Beige Book, which will give us the latest analysis of the economic conditions in the U.S. as the COVID-19 restrictions reduce.

Thursday

Thursday is expected to be the busiest of the week, when we expect earnings reports from Express Inc (NYSE: EXPR), Asana Inc (NYSE: ASAN), Duluth Holdings Inc (NASDAQ: DLTH), Broadcom Inc (NASDAQ: AVGO), The Toro Company (NYSE: TTC), The Cooper Companies (NYSE: COO), Science Applications International Corporation (NYSE: SAIC), Lululemon Athletica (NASDAQ: LULU), as well as Slack Technologies.

Thursday is a big day for NVIDIA Corporation (NASDAQ: NVDA) also. After reporting the record profits and earnings, highly affected by the company’s revenues from graphic cards for crypto mining, the shareholders will vote on a 4-for-1 stock split. That will increase the number of authorized shares of common stock, and if approved, each shareholder will receive an additional dividend of three additional shares.

Thursday will be also interesting in the automotive world. Kia will start taking reservations for its new EV6 crossover, while Nio Inc (NYSE: NIO), the Chinese automaker, will hold a general meeting so it can increase the diversity of its board.

This day will also be dominated by cryptocurrencies, as the 2021 Bitcoin conference, taking place in Miami, will kick-off.

Friday

The week’s end is reserved for the earnings report from Hooker Furniture Corporation (NASDAQ: HOFT), and that is expected before the opening bell. During the rest of Friday, we will focus on the latest unemployment rates and data.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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