Oil Market Risks For 2018: Upside Then Downside

Robert Boslego - INO.com Contributor - Energies - Oil Market Risks 2018


Fears of potential shortages from the implosion of Venezuela’s production, and the imposition of sanctions on Iran, have catapulted the Brent oil price marker to $80. However, there are great uncertainties about how much oil supplies will be disrupted over the balance of 2018, and what the supply response will be from OPEC and other producers, such as Russia and the United States.

Venezuela’s production fell by 45,000 b/d in April from March, averaging 1.47 million barrels per day. The April decline was equal to the average monthly drop thus far in 2018. Whether the rate of decline will increase, or stay the same, is unknown, but what is known is that oil workers have been leaving the country, unpaid.

The May 20th presidential election has been called a sham. And President Trump is considering sanctioning Venezuela's oil or prohibiting the crude to be sold in the U.S. If he does, Venezuela’s economy is expected to collapse because it is totally dependent on oil revenues. Continue reading "Oil Market Risks For 2018: Upside Then Downside"

Canopy Growth Corp Jumped On NYSE Application

Analysis originally distributed on May 16, 2018 By: Michael Vodicka of Cannabis Stock Trades

Canadian cannabis stocks got a big jolt this week after an early industry leader announced it has applied for a listing on the New York Stock Exchange. This looks like the beginning of a new trend in the cannabis sector – and today I am going to reveal three strategies to potentially profit.

Canopy Growth Corp (TWMJF) announced on Monday that it has applied to be the first Canadian cannabis company to trade on the New York Stock Exchange.

Here are some more details from Bloomberg.

“Canada’s biggest marijuana company has applied to become the first pot producer to list on the New York Stock Exchange.

Canopy Growth Corp., which already trades on the Toronto Stock Exchange under the ticker symbol WEED, said Monday it expects its shares to begin trading in New York under the symbol CGC before the end of May.

Chief Executive Officer Bruce Linton said earlier this year that he was one day away from filing to list on the Nasdaq Stock Market but pulled back to focus on closing a deal with alcohol giant Constellation Brands Inc. He said Monday that he chose the NYSE over the Nasdaq because of the additional credibility it lends his company.”

Read the article, Canopy Applies to Become First Pot Producer Listed on the NYSE.

This is big news and another big-time win for the fast-growing cannabis industry.

Canopy is in position to be the first Canadian cannabis company listed on the New York Stock Exchange (NYSE). That should increase interest in Canopy and the broader cannabis sector.

Canopy’s potential uplisting to the NYSE also shows that the cannabis industry is quickly gaining a lot of credibility. The uplisting should trigger more capital inflows into the sector.

The good news sent the entire Canadian cannabis sector jumping higher. The Canadian cannabis index jumped more than 4%.

Canopy did even better – shares were up as much as 10% on the day.

Canopy is back within striking distance of a new 2018 high. Take a look.

Canopy Growth Corp

Looking forward – I am expecting more Canadian stocks to follow Canopy’s lead and pursuit listings on the NYSE.

Below I reveal three Canadian cannabis companies that I expect to apply for listings on large US stock exchanges such as the NYSE and the NASDAQ.

If that happens, just like Canopy, I am expecting shares to get a nice short-term jolt and gain long-term credibility.

Aurora Cannabis (ACBFF) is the second largest Canadian cannabis company and one of the largest in the world. Aurora has been on a buyout binge lately, buying multiple companies to help Aurora grow production as quickly as possible ahead of recreational going legal. Aurora is also building a massive cannabis greenhouse Called Aurora Sky. When completed Aurora Sky is set to be more than 1 million square feet.

Aphria Corp (OTC: APHQF) is also one of the largest Canadian cannabis companies. Aphria is making big moves to cash in on Canada’s high-growth recreational cannabis market. Aphria is building a 1 million square foot cannabis greenhouse that positions Aphria as a low-cost producer. Aphria continues to report excellent progress.

  • Aphria One – 700,000 square foot Part IV expansion project remains on-time, first sale continues to be expected in January 2019.
  • Aphria Diamond – 1,300,000 square foot retrofit project remains on-time, first sale continues to be expected in January 2019.
  • Broken Coast – Phase III expansion complete and awaiting Health Canada. Phase IV expansion project modified to increase capacity but moves first sale expectations to Fall 2019.

Organigram Holdings, Inc. (OGRMF) is a mid-sized Canadian cannabis company with a niche in organic cannabis. Organigram is already delivering impressive sales growth. The company reported awesome second-quarter results in late April. Sales jumped 123% from last year to $3.2 million. Net income increased to $1.1 million from a loss of $5 million last year. Phase 3 expansion of its new greenhouse is expected to be complete for the start of filling of rooms with first cannabis plants by June 1, 2018, bringing Organigram’s pro-forma run-rate capacity to 36,000 kg per year. Organigram plans to launch its adult-recreational brand strategy on or about May 15, 2018. And finally, Organigram expects to announce one or more strategic or international investments in the upcoming quarter.

Risks to Consider

The Canadian cannabis industry faces a key vote on June 7 to finalize plans to legalize recreational cannabis. The bill is expected to pass – and set the stage for legalization – but the pending vote is driving some caution.

Action to Take

These three companies are early leaders in Canada’s high-growth cannabis industry. Each of them are great candidates to follow in Canopy’s footsteps and apply for an uplisting onto a major US stock exchange such as the NYSE or NASDAQ. If that happens, I expect shares to jump higher in the short run and get a long-term boost.

Enjoy,

Michael Vodicka
Editor, Cannabis Stock Trades

The information contained in this post is for informational and educational purposes only. The trading ideas and stock selections represented on the Cannabis Stock Trades website are not tailored to your individual investment needs. Readers and members are advised to consult with their financial advisor before entering into any trade. Cannabis stocks carry a certain level of risk and we accept no responsibility for any potential losses. All trades, patterns, charts, systems, etc. discussed are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher.

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Weekly Futures Recap With Mike Seery

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Crude Oil Futures

Crude oil futures in the June contract is currently trading lower by $0.15 at 71.35 a barrel after hitting a fresh 4-year high earlier in the week at 72.30 as profit-taking has come about. However, this market remains bullish in my opinion. If you are long a futures contract continue to place the stop loss under the 2-week low standing at 67.63 as you will have to roll over into the July contract in the next couple of days as the stop loss will be changed, but I do think higher prices are ahead. One of the main reasons why this market has turned bullish is the fact that Venezuela has turned into a complete nightmare as that socialist country has utterly imploded over the last several months as they are not producing near as much oil as they used to, therefore, supply concerns in the short term are at hand. If you take a look at heating oil and unleaded gasoline they are both hitting multi-year highs in today's trade as the whole sector is extremely bullish so continue to play this to the upside & if you're not involved in the market wait for some profit-taking before entering into a bullish position, therefore, lowering the monetary risk. Oil prices have probably been the strongest trend in 2018 as we are trading far above their 20 and 100-day moving average as the volatility remains relatively low except for last week when President Trump revoked the Iranian deal as the fundamental and technical picture remains bullish in my opinion so stay long & continue to place the proper stop loss.
TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: LOW

Continue reading "Weekly Futures Recap With Mike Seery"

Facebook Posts Revenue Growth Despite Public Relations Fiasco

Noah Kiedrowski - INO.com Contributor - Biotech - Facebook Posts Revenue Growth


Introduction

Public relations fiasco is putting it lightly in the wake of the Cambridge Analytica data misuse scandal. Once the news broke that Facebook Inc. (FB) was behind the mishandling of user data that was shared with a politically connected firm during the 2016 presidential race, Facebook’s stock tumbled from $195 to $152 or a 22% slide. Mark Zuckerburg went into damage control mode via rolling out transparency tools, metrics, impacted user details and testifying before Congress. The border questions of potential regulation, public backlash, additional data misuse cases and whether or not any material impact to revenue, as a result, remain in question. Over the past few quarters, Facebook has ramped up spending on initiatives to combat fake news, ensure data integrity, implementing stringent guidelines on third-party data sharing and overall transparency within its platform. Thus far, the early fallout from the Cambridge Analytica scandal has been immaterial to revenue albeit the recent quarterly numbers only reflect roughly two weeks of post-scandal numbers. Facebook had already moved to overhaul its news feed in favor of “meaningful social interactions” versus “relevant content” to improve its user experience.

Despite all the headlines regarding the privacy scandal, Facebook posted a monster blowout for its Q1 2018 numbers. Daily active users rose 13% to 1.45B for March, and monthly active users also rose 13%, to 2.2B as of March 31, 2018. Ad revenues grew by 50% to $11.8 billion from a year-ago $7.9 billion. As a result, many Wall Street firms have increased their target prices as a result of Facebook’s monster growth. Wedbush raised its target to $275, Mizuho to $255; SunTrust to $230; Goldman Sachs to $225, Deutsche Bank to $205 and Stifel Nicolaus to $175. Facebook remains incredibly cheap considering its phenomenal growth with a P/E of 28.7 and PEG of 1.08 at a stock price of $174. I maintain my long thesis with a price target of $220 by the end of 2018. Continue reading "Facebook Posts Revenue Growth Despite Public Relations Fiasco"

Stocks Struggle For Traction Posting Weekly Loss

Hello traders everywhere. One week after we saw the stock market make gains we've retreated into negative territory. All three indexes are posting weekly losses and continuing to be bound in a sideways trading range. This weeks weakness is due to a rally in crude oil prices, a pickup in government bond yields as inflation rises and geo-political uneasiness around the globe.

The 10-Year Treasury yield hit a fresh seven-year high settling on Tuesday at 3.082%, compared with 2.995% Monday, marking its biggest one-day advance since March 2017. It will end the week above the 3% level at 3.069%

Stocks Struggle

The U.S. Dollar continues to gain strength with a gain of +1.21% on the week. This weeks gain erases last weeks small loss as the dollar looks to heading higher. With green Trade Triangles on the board keep your eye on the $91.28, a move below that level will trigger a red weekly Trade Triangle indicating a move to a sidelines position. Continue reading "Stocks Struggle For Traction Posting Weekly Loss"