Tag Archives: Cannabis Stocks

Is Aphria Stock (TSX:APHA) (NYSE:APHA) A Solid Value Buying in May?

The cannabis sector has gone through its fair share of difficulties over the past year, but some stocks have managed to garner interest among investors all the same in recent days. The stock in question is Aphria Inc (TSX:APHA) (NYSE:APHA). There had been a lot of optimism around the sector in the past, but over the past year or so, a range of issues damage the cannabis space significantly.

Key Analysis

Oversupply, slow rollout of stores and the continued presence of the black market are some of the factors. However, over the past month, Aphria has enjoyed a rally, and it is important to figure out if it is the top cannabis stock at this point.

While the Aphria stock is down 54% this year up until April 23, it should be noted that it has gained 28% over the past month and remains one of the five major cannabis producer stocks on the TSX. Its performances in the fiscal third quarter are possibly the reason behind the rally in recent weeks.

Revenues for the quarter soared to as much as $144.4 million, and that reflected a year on year rise of 96%. The sequential rise stood at 20%. While it made a loss of $9.6 million in the prior-year period, Aphria generated a net income of $8.7 million in Q3 2020.

Last but not least, investors should also consider the fact that at the end of the third quarter, the company had $551.1 million in cash and cash equivalents. It will help Aphria in navigating the current period of uncertainty effectively and also allow it to make strategic acquisitions if the opportunity arises.

While the present state of affairs at Aphria is promising for the stock, investors might be looking for a bump in the whole sector. However, the sale of cannabis has soared since March due to the lockdowns, and that is a major positive for Aphria. Many markets in Europe are also set to open, and that is another positive for the company.

Is Cresco Labs Inc (OTCQX:CRLBF) Stock a Good Buy After The News?

Due to the overall slowdown in the cannabis space, some companies had put off construction projects, but Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF) is one of the exceptions in this regard. This past Friday it emerged that the company has completed the expansion of its facility located in Brookville in Pennsylvania.

Major Development

It is a major development for Cresco Labs considering the fact that the company will be able to cultivate marijuana and also produce associate products at the facility. Prior to the expansion, the facility only had 22000 square feet of cultivation space but now it stands at as much as 88000 square feet.

However, that is not all. It is important to keep in mind that the company has also made an effort to make the facility an effective manufacturing hub. Cresco has installed both integrated safety systems and new extraction booths in order to boost the manufacturing process. The facility has been earmarked by Cresco to produce marijuana and related products for the entirety of the Pennsylvania market. Investors ought to keep an eye on the development with regards to Cresco, since the expansion could chart a new course for the company.

While this is one of the major recent developments at Cresco, it needs to be remembered that the company had also released its financial results for the fourth quarter of 2019 back in April. The revenues for the period in question were $41.4 million, which reflected a year on year rise of 144% and a sequential rise of 14%. However, the company’s losses in the fourth quarter widened as much as 10 times year on year to hit $45.2 million.

The company did not provide a figure with regards to loss per share, but if the total outstanding shares count is taken into consideration then the loss per share could be around $0.15 per share. While the revenues recorded a considerable jump year on year, it should be noted that Cresco Labs fell short of analysts’ estimates of as much as $49.8 million for the quarter.

Is HEXO Stock A Better Long-Term Investment Option Now?

The market has rebounded somewhat in recent days in the hopes of the reopening of the economy following the coronavirus pandemic induced lockdown. However, the situation has not been great with pot stocks, which have continued to remain depressed. That being said, it is also true that it could be the perfect opportunity for investors to make clever investments in some of the notable pot stocks in the market. One of the pot stocks that stand out at this point in time is the HEXO Corp (TSX:HEXO) (NYSE:HEXO). There are some factors that make it one of the more compelling stocks in the market.

Key Drivers

Hexo may have had its difficulties in recent times, but it is a company that has the wherewithal to eventually become one of the bigger players in the cannabis industry for years. It is not an attractive proposition merely because of the current rally but for generating potentially handsome returns for many years.

Hexo boasts of the second-highest number of patents among companies in the sector, and on top of that, it recently came up with Original Stash, its premium brand. Hexo has also created a research division and a food research laboratory in order to come up with more products.

However, that is not all. The company has managed to make a move into the potentially lucrative cannabis-infused beverage space and tied up with Molson Coors for the same. Hexo is collaborating with Molson Coors to launch a THC based beverage. According to studies, the cannabis-based beverage market could eventually grow into a $1.5 billion industry by 2026. If the company plays its cards right, then it could corner a significant portion of the market.

Hexo not only has a viable product in the pipeline in collaboration with a well-known brand, but it is also making progress in other avenues. Hence, the potential for growth is there, and investors could consider the stock.

Is OrganiGram Stock A Good Buy in the CBD Industry?

The coronavirus pandemic has had a massively negative impact on a range of industries, and the cannabis industry was not completely unscathed from it either. However, things could be changing soon. In a new development, it has emerged that Organigram Holdings (TSX:OGI) (NASDAQ:OGI) has decided to bring back its employees to work.

Major Analysis

The company published an update on Thursday last week with regards to this matter. The company stated that it is going to get its employees back to work in phases in light of the fact that the coronavirus crisis has eased in New Brunswick, its native province.

According to OrganiGram, a total of 50 employees are going to return to work at its offices in Moncton. Depending on the safety and general health guidelines provided by the authorities, the company is going to take a call on the next phases. Additionally, the company’s business needs are also going to be a factor in the entire process.

However, it goes without saying that the announcement from OrganiGram has come as a positive for the industry at large. It remains to be seen if other producers in Canada take such steps.

The provincial authorities in Canada have handled the coronavirus pandemic quite effectively, and that has apparently given OrganiGram the confidence to start bringing back its employees. The company, however, added that the standard safety precautions that have now become the norm throughout the world are going to be implemented. Measures like social distancing, regular cleaning, and sanitization of surfaces are going to be followed.

Many cannabis companies, including OrganiGram, had gone through difficulties in recent months despite the fact that cannabis dispensaries had stayed open during the crisis. The industry had been in trouble even before the crisis due to a range of issues starting from oversupply to a slow rollout of stores in Canada.