Tag: Aurora Cannabis (ACB)

Mexico Ready To Unleash A $2 Billion Market

Posted on by Michael Vodicka

The United States is dominating the cannabis headlines because four states are set to vote on legalization on November 3 with the U.S. presidential election.

Cannabis investors could have easily missed a huge investment opportunity that is rapidly developing just south of the U.S. border.

Mexico is on the fast track to legalize recreational cannabis – most likely by the end of the year. Here are some more details from marijuanamoment.com.

The Mexican Senate will likely vote on a bill to legalize marijuana within the next two weeks, the chamber’s majority leader recently said.

It’s not clear if the legislation will go through the committee process or straight to the floor given that tight timeline. Zara Snapp, a legalization activist with the Instituto RIA and the coalition #RegulacionPorLaPaz, told Marijuana Moment that advocates have similarly heard from senators that the plan is to quickly pass the proposal and they’re “hopeful” that’s the case.

If the Senate passes the legal cannabis bill it will still have to go before the other house of the nation’s Congress, the Chamber of Deputies. President Andrés Manuel López Obrador said in August that marijuana reform legislation will advance in the new session. The bill was approved by several committees earlier this year, but the COVID-19 outbreak derailed negotiations.

Legalization in Mexico is important for two reasons. Continue reading "Mexico Ready To Unleash A $2 Billion Market" →

Will Canopy Growth Corp (CGC) Jump 250%?

Posted on by Michael Vodicka

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%?" →

Marlboro Maker Invests $1.7 Billion in Cannabis

Posted on by Michael Vodicka

The cannabis industry announced a groundbreaking $1.7 billion megadeal with big tobacco that has the sector on the upswing last week.

Marlboro maker Altria Group (MO), one of the largest tobacco companies in the world, announced a $1.7 billion investment in Cronos Group (CRON), one of Canada’s largest cannabis companies.

Here are some more details from Bloomberg.

Altria has agreed to take a 45 percent stake in Toronto-based marijuana producer Cronos Group Inc., marking a major tobacco company’s first foray into cannabis. It has the option to take majority control in the future.

With U.S. smoking rates falling fast, Richmond, Virginia-based Altria is under pressure to find new avenues to expand. Marijuana is now allowed in an increasing number of states but is still illegal on the federal level in the U.S. That makes Canada, which legalized recreational use in October, a large laboratory for the nascent industry.

“We believe cannabis is an excellent strategic fit for tobacco,” Jefferies analyst Owen Bennett said in a research note earlier this week. It’s a logical fit, because “big tobacco knows how to cultivate crop, knows how to deal with regulators, they are at the forefront of vaporization technology, and they also arguably have less reputational risk than other fast-moving consumer goods,” he said.

The good news gave Cronos a nice boost – shares jumped 25% and settled just shy of the 52-week high. Continue reading "Marlboro Maker Invests $1.7 Billion in Cannabis" →