Will Canopy Growth Corp (CGC) Jump 250%?

Aurora Cannabis (ACB) just jumped 250% in two days after reporting third-quarter earnings that crushed expectations.

Not many people saw that huge jump coming. If you missed it – don’t worry.

I see a high probability that the same pattern will repeat itself on Friday morning when the largest cannabis company in the world reports highly anticipated fourth-quarter earnings.

Here’s what you need to know and how to play Friday’s big event.

Aurora Cannabis (ACB) is one of the largest cannabis companies in the world. Shares of ACB jumped 250% in two days last week after reporting third-quarter results that crushed expectations.

Here are some more details from Aurora.

  • Net revenue, excluding provisions, of $78.4 million in Q3 2020 was up 18% quarter over quarter. Cannabis net revenue, excluding provisions, was $72.6 million, up 15% over Q2 2020.
  • Consumer cannabis net revenue, excluding provisions, was up 24% from the prior quarter to $41.5 million, demonstrating the impact of the launch of Daily Special, Aurora’s value brand, and a full quarter of Cannabis 2.0 products. Medical cannabis net revenue, both Canadian and international, showed healthy growth of 13.5% overall.

Aurora Cannabis Announces Fiscal Third Quarter 2020 Results & Operational Reset Update

Canopy Growth Corp

These results send an important and encouraging message to investors – cannabis stocks are shifting into a bullish phase.

In 2019, pot stocks fell short of lofty expectations. Today, the sector is crushing more realistic expectations.

Canopy Growth Corp (CGC) is the largest cannabis company in the world with a market cap of $7 billion and operations on four continents.

Canopy is scheduled to report fourth-quarter results on Friday, May 29, 2020, before the opening bell. Aurora’s impressive results tell me that Canopy is also going to crush expectations.

Here’s why… Continue reading "Will Canopy Growth Corp (CGC) Jump 250%?"

Cannabis Sales Surge On Coronavirus

Coronavirus is having a devastating effect on many industries in the United States and across the globe.

For example, millions of US citizens are canceling travel plans and that is crushing US airline industry revenue. That's why the US airline industry just asked for a $50 billion financial bailout from the federal government that would be three times the size of the airline bailout after September 11.

This big drop in sales is causing a lot of pain for shareholders. Airline stocks have been getting hammered.

United Airlines Holdings Inc. (UAL) is down -60% from the 52-week high, much worse than the S&P 500’s -12% decline from the 52-week high.

UAL

However, not all industries are struggling right now. In fact – some are thriving.

Cannabis sales have been one of the few bright spots while most industries are in a tailspin. Continue reading "Cannabis Sales Surge On Coronavirus"

Can Big Tobacco Ignite This 80% Loser

There are few events that can send a cannabis stock soaring like an investment from big tobacco.

Do you remember what happened on December 7, 2018?

That’s when Altria Group (MO), one of the largest tobacco companies in the world and maker of Marlboro cigarettes, invested $1.8 billion into Cronos Group (CRON), one of the largest cannabis companies in Canada and the world. Investors loved the news, sending shares of Cronos soaring. Cronos proceeded to jump almost 148% in the eight weeks while the rest of the cannabis sector gained 24%. It looks like a similar megadeal is in the works.

Big Tobacco

Auxly Cannabis Group (XLY, CBWTF) is a mid-sized cannabis company headquartered in Canada.

It has a market cap of $380 million and annual cannabis cultivation capacity of 100K kilos.

Auxly has one of the most unique business models in the Canadian cannabis industry – it calls itself a “streaming cannabis company.” Here’s what that means. Auxly is basically a wholesaling, cultivating and selling cannabis to some of the largest retailers in the industry. In order to meet these supply needs, Auxly owns an impressive portfolio of cannabis cultivation facilities that it expects to produce more than 100,000 kilograms in the next 12 months. Continue reading "Can Big Tobacco Ignite This 80% Loser"

Former Canopy CEO Loves This Stock

CEOs have an insider’s view that is second to none. When they talk, it pays to listen closely. They drop clues that can be used to find great investments. That’s what happened last week with a rock star CEO in the cannabis industry.

Bruce Linton founded Canopy Growth Corp (CGC, WEED) in 2013. Back then, Canopy was only worth $100 million – but in the next six years, Linton grew Canopy into a $15 billion global juggernaut and the largest cannabis company in the world. That’s one of the fastest growth rates in the history of the stock market. It made early investors rich and Linton was widely considered the Pied Piper of the global cannabis industry.

If the cannabis industry had a rock star CEO – it was Bruce Linton. His insight and connections in the cannabis industry are unparalleled. That’s why it came as such a big surprise last week when Constellation Brands (STZ), which owns 38% of Canopy, fired Linton. After the news hit the wire, Linton quickly called into CNBC and dropped a hot investment tip about one of his favorite cannabis companies that cannabis investors need to know about.

Kevin O’Leary, the billionaire investor famous for his role on NBC’s Shark Tank, asked Linton if there were any cannabis companies he would consider investing in. Here’s what Linton said. Continue reading "Former Canopy CEO Loves This Stock"

2 Red Hot Cannabis Stock IPOs To Play

Stock IPOs are one of Wall Street’s most exciting events. When shares of a company begin trading on the stock exchange, investors get their first shot to invest in an exciting, young company. These early investments can also turn out to be very profitable. That is particularly true for the cannabis industry.

Although there is plenty of risk in cannabis stock IPOs, many have turned into profit gushers in the last few years.

One example is Cresco Labs (CL, CRLBF). Cresco is one of the largest cannabis companies in the U.S. This stock is a direct play on Illinois legalizing recreational cannabis. Since going public on the Canadian Securities Exchange in December, shares have almost doubled.

LLLL

New Cannabis IPOs Hitting The Street

Two new cannabis IPOs just began trading this week. That means that investors can now buy shares in these companies and do so ahead of the curve.

One is a play on California’s high-growth cannabis market. Continue reading "2 Red Hot Cannabis Stock IPOs To Play"