Tag Archives: ACBFF

Top 10 Heal Care Stocks For 2019

President Trump’s temporary SEC chief has already taken steps to curb the agency’s ability to go after financial crime.

Now, four top Democratic senators are raising the alarm. In a letter Wednesday, senators Elizabeth Warren, Sherrod Brown, Robert Menendez, and Brian Schatz called on the agency’s inspector general to examine whether Acting Chairman Michael Piwowar overstepped his authority by scaling back the agency’s investigative powers and moving to potentially roll back two agency rules.

Lawmakers questioned whether Piwowar’s actions “exceed his authority” as the interim head of the agency. They are concerned that his moves violated agency procedures because they were taken without a minimum number of commissioners to approve new regulations. Only three out of the five SEC’s commissioners seats are currently filled.

“We ask that you conduct an investigation into each of these decisions to determine whether they are legally permissible,” the senators wrote.

Top 10 Heal Care Stocks For 2019: Lennox International, Inc.(LII)

Advisors’ Opinion:

  • [By Lisa Levin]

    Some of the stocks that may grab investor focus today are:

    Wall Street expects Halliburton Company (NYSE: HAL) to report quarterly earnings at $0.42 per share on revenue of $5.75 billion before the opening bell. Halliburton shares fell 0.06 percent to $51.93 in after-hours trading.
    Analysts expect Alphabet Inc. (NASDAQ: GOOGL) to post quarterly earnings at $9.33 per share on revenue of $30.31 billion after the closing bell. Alphabet shares gained 0.24 percent to $1,079.88 in after-hours trading.
    Before the markets open, Lennox International Inc. (NYSE: LII) is projected to report quarterly earnings at $1.09 per share on revenue of $815.16 million. Lennox shares dropped 2.84 percent to close at $197.08 on Friday.
    HNI Corporation (NYSE: HNI) reported retirement of its CEO Stan A. Askren and appointment of Jeffrey D. Lorenger as new CEO. HNI also reported strong earnings for its first quarter. HNI shares fell 3.17 percent to $34.20 in the after-hours trading session.
    Analysts are expecting Hasbro, Inc. (NASDAQ: HAS) to have earned $0.35 per share on revenue of $822.15 million in the latest quarter. Hasbro will release earnings before the markets open. Hasbro shares fell 0.39 percent to $82.49 in after-hours trading.

    Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

  • [By Lisa Levin] Companies Reporting Before The Bell
    Kimberly-Clark Corporation (NYSE: KMB) is expected to report quarterly earnings at $1.71 per share on revenue of $4.60 billion.
    Halliburton Company (NYSE: HAL) is projected to report quarterly earnings at $0.42 per share on revenue of $5.75 billion.
    Lennox International Inc. (NYSE: LII) is estimated to report quarterly earnings at $1.09 per share on revenue of $815.16 million.
    Alaska Air Group, Inc. (NYSE: ALK) is projected to report quarterly loss at $0.12 per share on revenue of $1.82 billion.
    Hasbro, Inc. (NASDAQ: HAS) is expected to report quarterly earnings at $0.35 per share on revenue of $822.15 million.
    Lincoln Electric Holdings, Inc. (NASDAQ: LECO) is projected to report quarterly earnings at $1.08 per share on revenue of $729.83 million.
    Tennant Company (NYSE: TNC) is estimated to report quarterly earnings at $0.15 per share on revenue of $251.93 million.
    FirstEnergy Corp. (NYSE: FE) is projected to report quarterly earnings at $0.67 per share on revenue of $3.43 billion.
    Koninklijke Philips NV (ADR) (NYSE: PHG) is estimated to report earnings for its first quarter.
    Bank of Hawaii Corporation (NYSE: BOH) is expected to report quarterly earnings at $1.23 per share on revenue of $162.39 million.
    Avangrid, Inc. (NYSE: AGR) is projected to report quarterly earnings at $0.79 per share on revenue of $1.72 billion.

     

  • [By Joseph Griffin]

    Mitsubishi UFJ Kokusai Asset Management Co. Ltd. lessened its holdings in shares of Lennox International (NYSE:LII) by 12.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 4,403 shares of the construction company’s stock after selling 629 shares during the quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd.’s holdings in Lennox International were worth $900,000 at the end of the most recent reporting period.

Top 10 Heal Care Stocks For 2019: Aurora Cannabis Inc. (ACBFF)

Advisors’ Opinion:

  • [By Keith Speights]

    Aurora Cannabis (NASDAQOTH:ACBFF) and Organigram Holdings (NASDAQOTH:OGRMF) have taken investors on a roller-coaster ride so far in 2018. Both marijuana stocks have experienced multiple swings of 10% or more. Both Aurora and Organigram also appear to berebounding in recent days.

  • [By Javier Hasse]

    Here are some of the top marijuana stocks in U.S. exchanges and how the performed this week:

    22nd Century Group Inc (NYSE: XXII): up 9.4 percent
    Aphria Inc (OTC: APHQF): up 0.6 percent
    Aurora Cannabis Inc (OTC: ACBFF): up 4.6 percent
    Cannabis Sativa Inc (OTC: CBDS): up 1.7 percent
    CannTrust Holdings Inc (OTC: CNTTF): up 22.8 percent
    Canopy Growth Corp (OTC: TWMJF): up 7.6 percent
    Cronos Group Inc. (NASDAQ: CRON): down 13.5 percent
    GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH): up 3.8 percent
    Hiku Brands Company Ltd(OTC: DJACF): down 4.3 percent
    India Globalization Capital, Inc. (NYSE: IGC): up 5 percent
    MassRoots Inc (OTC: MSRT): up 12.1 percent
    MedReleaf Corp(OTC: MEDFF): up 16.8 percent
    Scotts Miracle-Gro Co (NYSE: SMG): down 3.3 percent
    THC Biomed Intl Ltd (OTC: THCBF): down 3.8 percent
    Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE): down 1.4 percent
    In The News

    A consortium of cannabis-related media professionals are conducting a Cannabis Media Survey at this link. 

  • [By Sean Williams]

    As a result, Canadian cannabis growers have been expanding their capacity as quickly as their balance sheets will allow. Arguably, none has been more aggressive than Aurora Cannabis (NASDAQOTH:ACBFF).

  • [By Keith Speights]

    Aurora Cannabis (NASDAQOTH:ACBFF) did it again. In February, the Canadian marijuana grower posted fantasticfiscal second-quarter results. On Tuesday, Aurora announced its Q3 results. And the company once again hit the ball out of the park, with CEO Terry Booth pointing to Aurora’s “exceptional performance across all functions.”

Top 10 Heal Care Stocks For 2019: Bloomin' Brands, Inc.(BLMN)

Advisors’ Opinion:

  • [By Max Byerly]

    ILLEGAL ACTIVITY NOTICE: “Bloomin’ Brands (BLMN) Receives $22.63 Consensus Price Target from Analysts” was published by Ticker Report and is the sole property of of Ticker Report. If you are accessing this piece of content on another domain, it was illegally stolen and reposted in violation of U.S. and international copyright laws. The original version of this piece of content can be viewed at https://www.tickerreport.com/banking-finance/3379609/bloomin-brands-blmn-receives-22-63-consensus-price-target-from-analysts.html.

Top 10 Heal Care Stocks For 2019: Concord Medical Services Holdings Limited(CCM)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    Genprex, Inc. (NASDAQ: GNPX) shares gained 86.76 percent to close at $11.00 on Thursday.
    Comstock Resources, Inc. (NYSE: CRK) shares climbed 47.06 percent to close at $7.00 after the company disclosed a deal with Arkoma Drilling L.P. and Williston Drilling, L.P. to buy oil & gas properties in North Dakota. Comstock announced withdrawal of tender offers for outstanding secured notes.
    Ceridian HCM Holding Inc. (NASDAQ: CDAY) gained 41.86 percent to close at $31.21.
    MarineMax, Inc. (NYSE: HZO) shares rose 26.5 percent to close at $22.20 as the company posted upbeat Q2 results and raised its FY18 outlook.
    Concord Medical Services Holdings Limited (NYSE: CCM) jumped 24.92 percent to close at $4.06.
    Mattersight Corporation (NASDAQ: MATR) shares climbed 23.26 percent to close at $2.65 after the company agreed to be purchased by NICE Ltd.
    Chipotle Mexican Grill, Inc. (NYSE: CMG) rose 24.44 percent to close at $422.50 as the company reported stronger-than-expected results for its first quarter on Wednesday.
    Ultra Clean Holdings, Inc. (NASDAQ: UCTT) gained 17.75 percent to close at $18.64 following upbeat Q1 earnings.
    PCM, Inc. (NASDAQ: PCMI) rose 16.59 percent to close at $12.30 following Q1 results.
    Zymeworks Inc. (NASDAQ: ZYME) rose 16.06 percent to close at $15.25.
    Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) shares climbed 14.5 percent to close at $121.42 as the company posted reported Q1 beat And raised FY18 outlook.
    Advanced Micro Devices, Inc. (NASDAQ: AMD) shares gained 13.7 percent to close at $11.04 as the company reported upbeat results for its first quarter.
    Axsome Therapeutics, Inc. (NASDAQ: AXSM) rose 13.21 percent to close at $3.00 after the company disclosed a positive outcome of the interim analysis of STRIDE-1 Phase 3 trial of AXS-05 in treatment resistant depression.
    O'Reilly Automotive, Inc. (NASDAQ: ORLY) jumped 13.06 percent to close at $257.40 following upbeat Q1 profit.
    BioTelemetry,
  • [By Lisa Levin] Gainers
    Comstock Resources, Inc. (NYSE: CRK) shares shot up 52 percent to $7.235 after the company disclosed a deal with Arkoma Drilling L.P. and Williston Drilling, L.P. to buy oil & gas properties in North Dakota. Comstock announced withdrawal of tender offers for outstanding secured notes.
    MarineMax, Inc. (NYSE: HZO) shares gained 24.2 percent to $21.80 as the company posted upbeat Q2 results and raised its FY18 outlook.
    Mattersight Corporation (NASDAQ: MATR) shares rose 22 percent to $2.625 after the company agreed to be purchased by NICE Ltd.
    Chipotle Mexican Grill, Inc. (NYSE: CMG) jumped 21.3 percent to $411.871 as the company reported stronger-than-expected results for its first quarter on Wednesday.
    Axsome Therapeutics, Inc. (NASDAQ: AXSM) rose 17 percent to $3.10 after the company disclosed a positive outcome of the interim analysis of STRIDE-1 Phase 3 trial of AXS-05 in treatment resistant depression.
    Ultra Clean Holdings, Inc. (NASDAQ: UCTT) rose 15.9 percent to $18.34 following upbeat Q1 earnings.
    PCM, Inc. (NASDAQ: PCMI) gained 15.6 percent to $12.20 following Q1 results.
    O'Reilly Automotive, Inc. (NASDAQ: ORLY) surged 14.4 percent to $260.3901 following upbeat Q1 profit.
    Concord Medical Services Holdings Limited (NYSE: CCM) gained 13.8 percent to $3.70.
    Penn National Gaming, Inc. (NASDAQ: PENN) rose 13.5 percent to $29.815 after reporting strong Q1 results.
    BioTelemetry, Inc. (NASDAQ: BEAT) rose 13.5 percent to $38.30 as the company reported stronger-than-expected earnings for its first quarter.
    Advanced Micro Devices, Inc. (NASDAQ: AMD) shares rose 13.1 percent to $10.985 as the company reported upbeat results for its first quarter.
    SJW Group (NYSE: SJW) shares gained 11.8 percent to $63.59 following Q1 results. California Water Service Group made an offer for SJW.
    Churchill Downs Incorporated (NASDAQ: CHDN) climbed 9.8 percent to $278.40 following Q1 results.
    CYS Investments, Inc. (NYSE: CYS)

Top 10 Heal Care Stocks For 2019: Potlatch Corporation(PCH)

Advisors’ Opinion:

  • [By Joseph Griffin]

    PotlatchDeltic (NASDAQ:PCH) was upgraded by equities researchers at Vertical Research to a “hold” rating in a research report issued on Monday, The Fly reports. The analysts noted that the move was a valuation call.

  • [By Stephan Byrd]

    Teachers Insurance & Annuity Association of America bought a new position in PotlatchDeltic (NASDAQ:PCH) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 78,505 shares of the real estate investment trust’s stock, valued at approximately $4,086,000. Teachers Insurance & Annuity Association of America owned approximately 0.19% of PotlatchDeltic at the end of the most recent reporting period.

Top 10 Heal Care Stocks For 2019: International Game Technology(IGT)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    Acacia Communications, Inc. (NASDAQ: ACIA) shares rose 18.3 percent to $37.25 in pre-market trading after gaining 1.74 percent on Friday.
    Kitov Pharma Ltd (NASDAQ: KTOV) rose 12.1 percent to $2.69 in pre-market trading after surging 4.80 percent on Friday.
    NXP Semiconductors N.V. (NASDAQ: NXPI) rose 10.9 percent to $109.75 in pre-market trading after Bloomberg reported that the China’s Commerce Ministry has restarted its review of QUALCOMM Incorporated’s (NASDAQ: QCOM) proposed takeover of NXP Semiconductors.
    Renewable Energy Group, Inc. (NASDAQ: REGI) rose 10.6 percent to $15.20 in pre-market trading. Renewable Energy will replace Synchronoss Technologies Inc. (NASDAQ: SNCR) in the S&P SmallCap 600 on Tuesday, May 15.
    NeoPhotonics Corporation (NYSE: NPTN) rose 10 percent to $6.40 in pre-market trading.
    Vaxart, Inc. (NASDAQ: VXRT) shares rose 8 percent to $5.54 in pre-market trading after gaining 2.19 percent on Friday.
    Profire Energy, Inc. (NASDAQ: PFIE) rose 7.3 percent to $4.58 in pre-market trading after gaining 6.22 percent on Friday.
    Marvell Technology Group Ltd. (NASDAQ: MRVL) rose 7 percent to $22.49 in pre-market trading after falling 1.96 percent on Friday.
    Oclaro, Inc. (NASDAQ: OCLR) shares rose 6.9 percent to $9.16 in pre-market trading.
    TransEnterix, Inc. (NYSE: TRXC) rose 5.7 percent to $2.24 in pre-market trading after gaining 3.92 percent on Friday.
    CVR Refining, LP (NYSE: CVRR) rose 5.4 percent to $19.70 in pre-market trading.
    Federal Agricultural Mortgage Corporation (NYSE: AGM) rose 5.2 percent to $92.95 in pre-market trading.
    International Game Technology PLC (NYSE: IGT) rose 5.2 percent to $29.94 in pre-market trading.
    Lumentum Holdings Inc. (NASDAQ: LITE) shares rose 5.1 percent to $66.30 in the pre-market trading session.
    Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) shares rose 5 percent to $10.70 in pre-market trading after climbing 15.66 percent on Friday.
    Finisar
  • [By Travis Hoium]

    One of the reason suppliers like IGT (NYSE:IGT) and Scientific Games are reacting positively is because they’ll likely provide the betting infrastructure casinos use. IGT powers MGM’s playMGM app that takes sports bets in Nevada today. It could easily scale that technology nationwide. Scientific Games sees its OpenBet product suite providing similar solutions to its customers.

  • [By Lee Jackson]

    This stock has been hit over the past month and is offering a nice entry point for investors. International Game Technology PLC (NYSE: IGT) is the global leader in gaming. The company enables players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming.

Top 10 Heal Care Stocks For 2019: American Eagle Outfitters, Inc.(AEO)

Advisors’ Opinion:

  • [By Shane Hupp]

    American Eagle Outfitters (NYSE:AEO) shares gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $23.63, but opened at $23.10. American Eagle Outfitters shares last traded at $22.77, with a volume of 5083198 shares traded.

  • [By Chris Lange]

    American Eagle Outfitters Inc. (NYSE: AEO) also is scheduled to release its most recent quarterly results Thursday. The consensus forecast calls for $0.44 in EPS and $1.21 billion in revenue. Shares closed at $20.27. The consensus price target is $19.31, and the 52-week range is $10.23 to $20.46.

  • [By Leo Sun]

    In the fall 2017 survey, Hollister was listed as the fifth favorite brand for upper income teens. But in the spring 2018 survey, Hollister had dropped off the list — which was led by Nike (NYSE:NKE), American Eagle Outfitters (NYSE:AEO), and Adidas, in that order.

  • [By Leo Sun]

    Over time, several of these secondary brands have become core growth drivers for their parent companies, offsetting the weaker results of the rest of the business. Let’s look at three rising stars that fit that description — American Eagles’ (NYSE:AEO) Aerie, Abercrombie & Fitch’s (NYSE:ANF) Hollister, and Gap’s (NYSE:GPS) Athleta.

Top 10 Heal Care Stocks For 2019: NiSource, Inc(NI)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Wedbush Securities Inc. raised its holdings in NiSource (NYSE:NI) by 25.3% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 13,858 shares of the utilities provider’s stock after acquiring an additional 2,800 shares during the period. Wedbush Securities Inc.’s holdings in NiSource were worth $331,000 at the end of the most recent reporting period.

  • [By Lisa Levin]

    Breaking news

    Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH) disclosed that it received the FDA approval for Calcium Chloride injection.
    Rapid7, Inc. (NASDAQ: RPD) reported a proposed offering of 3 million shares.
    Yuma Energy Inc (NYSE: YUMA) reported a Q1 loss of $0.16 per share on sales of $5.646 million. The company also disclosed that it is actively seeking strategic alternatives.
    NiSource Inc. (NYSE: NI) disclosed a 24.96 million share common stock offering via selling holders.

  • [By Lisa Levin]

    Some of the stocks that may grab investor focus today are:

    Wall Street expects Agilent Technologies, Inc. (NYSE: A) to post quarterly earnings at $0.64 per share on revenue of $1.21 billion after the closing bell. Agilent shares rose 0.86 percent to close at $69.45 on Friday.
    Analysts expect Hanwha Q CELLS Co., Ltd. (NASDAQ: HQCL) to report quarterly earnings at $0.14 per share on revenue of $438.40 million before the opening bell. Hanwha Q CELLS shares fell 0.29 percent to close at $6.92 on Friday.
    NiSource Inc. (NYSE: NI) disclosed a 24.96 million share common stock offering via selling holders. NiSource shares rose 0.08 percent to close at $24.93 on Friday.
    Analysts are expecting Vipshop Holdings Limited (NYSE: VIPS) to have earned $0.18 per share on revenue of $3.10 billion in the latest quarter. Vipshop will release earnings after the markets close. Vipshop shares rose 0.20 percent to $15.14 in after-hours trading.

    Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

Top 10 Heal Care Stocks For 2019: Magyar Bancorp Inc.(MGYR)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Media headlines about Magyar Bancorp (NASDAQ:MGYR) have been trending somewhat positive on Friday, according to Accern. Accern rates the sentiment of news coverage by analyzing more than 20 million blog and news sources in real time. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores closest to one being the most favorable. Magyar Bancorp earned a media sentiment score of 0.16 on Accern’s scale. Accern also assigned media headlines about the bank an impact score of 48.0770691063571 out of 100, meaning that recent news coverage is somewhat unlikely to have an effect on the company’s share price in the immediate future.

Top 10 Heal Care Stocks For 2019: j2 Global, Inc.(JCOM)

Advisors’ Opinion:

  • [By Ethan Ryder]

    J2 Global (NASDAQ:JCOM) Director W Brian Kretzmer sold 5,942 shares of the stock in a transaction on Wednesday, May 9th. The stock was sold at an average price of $87.25, for a total value of $518,439.50. Following the transaction, the director now owns 6,764 shares of the company’s stock, valued at $590,159. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.

Best Clean Energy Stocks To Invest In 2019

Related GOOGL Battery Capacity Over The Years: How Will Goodenough's New Invention Stack Up? Amazon May Be Unable To Achieve The Same Dominance In Cloud It Enjoys In Retail As Easy As ABC – Alphabet Is A Buy! (Seeking Alpha)

Alphabet Inc (NASDAQ: GOOGL)'s Google is betting heavily on sunshine with its Project Sunroof. As environmental issues take the center stage, alternative clean energy sources such as solar energy are gaining traction. And Google isn't one to pass off a promising opportunity.

Having started the project in August 2015, Google sees this avenue as providing it with the leeway to leverage its expansive data in mapping and computing resources to help calculate the best solar plan for consumers. Founded by Google engineer Carl Elkin, the project's stated purpose is "mapping the planet's solar potential, one roof at a time."

Best Clean Energy Stocks To Invest In 2019: Waste Management, Inc.(WM)

Advisors’ Opinion:

  • [By Max Byerly]

    Becker Capital Management Inc. purchased a new stake in shares of Waste Management (NYSE:WM) during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 10,320 shares of the business services provider’s stock, valued at approximately $868,000.

  • [By ]

    Waste Management (WM) : “This is a high quality stock so I’m not going to bet against it.”

    The Blackstone Group (BX) : “I think this is a terrific buy.”

  • [By ]

    For his “Executive Decision” segment, Cramer spoke with Jim Fish, president and CEO of Waste Management (WM) , which just posted an eight-cents-a-share earnings beat, but saw shares decline as investors worry over the impact of trade wars with China on the company’s recycling business.

  • [By Tyler Crowe, Reuben Gregg Brewer, and Travis Hoium]

    Finding investments that can reward you over such long periods can do miracles for your portfolio — as long as you can find the right ones. So we asked three Motley Fool investors to highlight a stock they see as a great investment with solid growth prospects over the next 25 years. Here’s why they picked W.W. Grainger (NYSE:GWW), Wynn Resorts (NASDAQ:WYNN), and Waste Management (NYSE:WM).

  • [By ]

    In the Lightning Round, Cramer was bullish on The Blackstone Group (BX) , Nvidia  (NVDA) , Amgen (AMGN) , Regeneron Pharmaceuticals (REGN) , Hasbro (HAS) and Waste Management (WM) .

  • [By ]

    For his “Executive Decision” segment, Cramer spoke with Jim Fish, president and CEO of Waste Management (WM) , which just posted an eight-cents-a-share earnings beat, but saw shares decline as investors worry over the impact of trade wars with China on the company’s recycling business.

Best Clean Energy Stocks To Invest In 2019: Balchem Corporation(BCPC)

Advisors’ Opinion:

  • [By Travis Hoium]

    Nearly every business Balchem(NASDAQ:BCPC) is in has seen strong growth in 2018, and that’s driving the company’s financial results higher. Fracking is seeing the biggest growth, but human and animal health continue to be great businesses for the company.

Best Clean Energy Stocks To Invest In 2019: Costco Wholesale Corporation(COST)

Advisors’ Opinion:

  • [By Leo Sun]

    Blue Apron plans to counter bigger challengers like Amazonand Walmartby signing more retail partnerships with brick-and-mortar players that want to sell meal kits. Costco (NASDAQ: COST) is notably Blue Apron’s first major partner.

  • [By Demitrios Kalogeropoulos]

    Target’s (NYSE:TGT) recent operating trends fail to impress when stacked against Costco’s (NASDAQ:COST). That performance gap isn’t unique, though. Costco’s growth puts it in a category all by itself, and so Target is just one of many retailers that trail the warehouse giant in key metrics like customer traffic and operating margin.

  • [By Garrett Baldwin]

    WTI crude oil prices added 1.2% to hit $69.31 per barrel, while Brent crude added 1.4% to hit $74.50. The uptick came after Saudi Arabia hinted that it would like to see oil prices hit the top end of the $80 to $100 range. The key oil supplier has been working with other OPEC producers and Russia to support crude prices to reduce excessive global production. The nations’ agreement is expected to extend well into 2019 and potentially beyond that time frame.
    This morning, as it topped earnings expectations, Procter & Gamble Co. (NYSE: PG) announced it will purchase the consumer health business of German pharma giant Merck KGaA (OTCMKTS: MKGAF) for nearly $4.2 billion. The deal will expand on P&G’s vitamins and health supplement business. This is the first deal made by P&G since activist investor Nelson Peltz won a board seat last year.
    Four Stocks to Watch Today: PM, AXP, AMZN, COST
    Shares of Phillip Morris International Inc.(NYSE: PM) dropped 3.6% in pre-market hours after the company fell short of revenue expectations. Despite reporting earnings per share (EPS) of $1.00, a figure that topped estimates by $0.12, the firm fell short of the $7.02 billion in revenue forecasted by analysts.
    American Express Co.(NYSE: AXP) popped nearly 4% after the company easily topped Wall Street earnings after the bell Wednesday. The firm’s strategy to spend $2.35 billion on customer rewards promotions wooed a large amount of accounts and upgrades during the first three months of 2018. AXP reported EPS of $1.86 on top of $9.72 billion in revenue. Wall Street forecasted $1.71 per share on $9.20 billion.
    Amazon.com Inc.(Nasdaq: AMZN) is in focus after two stunning revelations emerged from the company on Wednesday. CEO Jeff Bezos announced that the company has more subscribers to its Prime service than Costco Corp.(Nasdaq: COST), while the average Amazon employee earned under $30,000 in 2017.
    Look for additional earnings reports from Skechers USA In

  • [By Logan Wallace]

    FDx Advisors Inc. raised its holdings in Costco (NASDAQ:COST) by 28.7% in the 1st quarter, HoldingsChannel.com reports. The fund owned 15,361 shares of the retailer’s stock after acquiring an additional 3,429 shares during the period. FDx Advisors Inc.’s holdings in Costco were worth $2,894,000 at the end of the most recent quarter.

  • [By Logan Wallace]

    Media coverage about Costco (NASDAQ:COST) has trended somewhat positive this week, Accern reports. The research firm rates the sentiment of news coverage by monitoring more than twenty million blog and news sources in real time. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores closest to one being the most favorable. Costco earned a daily sentiment score of 0.16 on Accern’s scale. Accern also assigned media stories about the retailer an impact score of 47.1055334204751 out of 100, meaning that recent news coverage is somewhat unlikely to have an impact on the company’s share price in the next several days.

Best Clean Energy Stocks To Invest In 2019: CVS Health Corporation(CVS)

Advisors’ Opinion:

  • [By ]

    CVS Health (NYSE: CVS) has, indeed, been good to its shareholders. That’s because, in an extremely challenging retail and health-care environment, this company has never stopped innovating and transforming itself.

  • [By ]

    CVS Health (NYSE: CVS) is quickly becoming a behemoth in the health care distribution market and its planned acquisition of managed-care insurer Aetna would complete its control. CVS has been able to avoid regulatory problems by looking to integrate companies vertically along the healthcare distribution chain. This breadth may allow it to deliver services at a lower cost and keep customers within its network.

  • [By ]

    The heightened activity could boost shares of clinics like CVS Health Corp (NYSE: CVS) and Walgreens Boots Alliance (Nasdaq: WBA) through sales of vaccines, services, and other remedies.

Best Clean Energy Stocks To Invest In 2019: Aurora Cannabis Inc. (ACBFF)

Advisors’ Opinion:

  • [By ]

    Canopy Growth Corporation (TWMJF) is another popular option, a Canadian company that not only produces but researches and studies cannabis. The Motley Fool recently valued it at around $4.35 billion, a massive number, and noted that it has something most cannabis companies are unable to acquire: bank capital. Bank of Montreal helps finance it, giving it a leg up on the competition. One of its main competitors, Aurora Cannabis (ACBFF) , is expanding its number of growth facilities and purchased competitor CanniMed Therapeutics.

  • [By Keith Speights]

    Aurora Cannabis (NASDAQOTH:ACBFF) and Organigram Holdings (NASDAQOTH:OGRMF) have taken investors on a roller-coaster ride so far in 2018. Both marijuana stocks have experienced multiple swings of 10% or more. Both Aurora and Organigram also appear to berebounding in recent days.

  • [By Javier Hasse]

    Here are some of the top marijuana stocks in U.S. exchanges and how the performed this week:

    22nd Century Group Inc (NYSE: XXII): down 9 percent
    Aphria Inc (OTC: APHQF): down 8.6 percent
    Aurora Cannabis Inc (OTC: ACBFF): down 11.4 percent
    Cannabis Sativa Inc (OTC: CBDS): down 10.4 percent
    CannTrust Holdings Inc (OTC: CNTTF): down 2.8 percent
    Canopy Growth Corp (OTC: TWMJF): down 7.8 percent
    Cronos Group Inc. (NASDAQ: CRON): down 7.7 percent
    GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH): up 2.5 percent
    Hiku Brands Company Ltd(OTC: DJACF): down 10.8 percent
    India Globalization Capital, Inc. (NYSE: IGC): down 6.2 percent
    MassRoots Inc (OTC: MSRT): down 6.2 percent
    MedReleaf Corp(OTC: MEDFF): up 0.5 percent
    Scotts Miracle-Gro Co (NYSE: SMG): up 2 percent
    THC Biomed Intl Ltd (OTC: THCBF): down 3.8 percent
    Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE): down 1.7 percent
    In The News

    A consortium of cannabis-related media professionals are conducting a Cannabis Media Survey. You can answer following this link.

Top Medical Stocks To Own For 2018

Most people fill Medicares coverage gaps by buying a Medicare supplement (medigap) plan and a Part D prescription-drug plan, or they get both medical and drug coverage from a private insurer with a Medicare Advantage plan. You have from October 15 to December 7 each year to pick a Medicare Part D prescription-drug plan or a Medicare Advantage plan for the year ahead. You can switch from one Part D plan to another, or from one Medicare Advantage plan to another. You can also switch into a Medicare Advantage plan. However, if you have Medicare Advantage and want to switch to a medigap plan plus a Part D plan, you may have limited medigap options depending on your healthalthough you can choose any Part D plan during open enrollment. (For more information about how to choose between Medicare Advantage or medigap and Part D, see How to Fill Medicare Coverage Gaps).

Top Medical Stocks To Own For 2018: Aurora Cannabis Inc. (ACBFF)

Advisors’ Opinion:

  • [By Keith Speights]

    There have already been several big mergers and acquisitions among Canadian marijuana growers over the last couple of years. The biggest deal so far was Aurora Cannabis’ (NASDAQOTH:ACBFF) once-hostile but laterfriendly takeover of CanniMed Therapeutics. Now it seems that Aurora might be itching for an even bigger deal.

  • [By Keith Speights]

    Aurora Cannabis (NASDAQOTH:ACBFF) and Organigram Holdings (NASDAQOTH:OGRMF) have taken investors on a roller-coaster ride so far in 2018. Both marijuana stocks have experienced multiple swings of 10% or more. Both Aurora and Organigram also appear to berebounding in recent days.

  • [By ]

    Canopy Growth Corporation (TWMJF) is another popular option, a Canadian company that not only produces but researches and studies cannabis. The Motley Fool recently valued it at around $4.35 billion, a massive number, and noted that it has something most cannabis companies are unable to acquire: bank capital. Bank of Montreal helps finance it, giving it a leg up on the competition. One of its main competitors, Aurora Cannabis (ACBFF) , is expanding its number of growth facilities and purchased competitor CanniMed Therapeutics.

  • [By Sean Williams]

    Smaller pot growers don’t have the same access to capital as large players like Aurora Cannabis (NASDAQOTH:ACBFF) or Canopy Growth Corp. (NASDAQOTH:TWMJF). Aurora and Canopy Growth have a respective $333 million and $311 million in cash and cash equivalents on hand and are expected to produce in the neighborhood of 430,000 kilograms and 500,000 kilograms of cannabis annually when at full capacity. Virtually nothing is stopping them from ramping up capacity, burying Canada in supply, driving down margins, and putting smaller players that won’t benefit from economies of scale out of business. If this all sounds somewhat familiar, it’s because this is pretty much what Walmarthas been doing to mom-and-pop stores for decades.

Top Medical Stocks To Own For 2018: Madison Square Garden Inc.(MSG)

Advisors’ Opinion:

  • [By WWW.GURUFOCUS.COM]

    For the details of Silver Lake Group, L.L.C.’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Silver+Lake+Group%2C+L.L.C.

    These are the top 5 holdings of Silver Lake Group, L.L.C.GoDaddy Inc (GDDY) – 15,868,908 shares, 21.3% of the total portfolio. Alibaba Group Holding Ltd (BABA) – 3,587,218 shares, 16.52% of the total portfolio. Sabre Corp (SABR) – 30,019,094 shares, 16.43% of the total portfolio. Broadcom Ltd (AVGO) – 1,618,567 shares, 11.1% of the total portfolio. BlackLine Inc (BL) – 12,543,873 shares, 10.99% of the total portfolio. Share

  • [By WWW.GURUFOCUS.COM]

    For the details of Silver Lake Group, L.L.C.’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Silver+Lake+Group%2C+L.L.C.

    These are the top 5 holdings of Silver Lake Group, L.L.C.GoDaddy Inc (GDDY) – 15,868,908 shares, 21.3% of the total portfolio. Alibaba Group Holding Ltd (BABA) – 3,587,218 shares, 16.52% of the total portfolio. Sabre Corp (SABR) – 30,019,094 shares, 16.43% of the total portfolio. Broadcom Ltd (AVGO) – 1,618,567 shares, 11.1% of the total portfolio. BlackLine Inc (BL) – 12,543,873 shares, 10.99% of the total portfolio. Share

Top Medical Stocks To Own For 2018: Five9, Inc.(FIVN)

Advisors’ Opinion:

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on Five9 (FIVN)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top Medical Stocks To Own For 2018: Prudential Public Limited Company(PUK)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Prudential (NYSE: PUK) and Reinsurance Group of America (NYSE:RGA) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

  • [By Stephan Byrd]

    Here are some of the news headlines that may have effected Accern’s rankings:

    Get Prudential alerts:

    Zacks Investment Research Lowers Prudential (PUK) to Hold (americanbankingnews.com) Financial wellness program popularity rises among employers, up 63 percentage points in two years (markets.financialcontent.com) FY2018 EPS Estimates for Prudential (PUK) Reduced by Jefferies Group (americanbankingnews.com) Jefferies Group Weighs in on Prudential’s FY2020 Earnings (PUK) (americanbankingnews.com) ValuEngine Downgrades Prudential (PUK) to Hold (americanbankingnews.com)

    Shares of PUK stock traded down $0.02 during trading on Tuesday, hitting $51.56. 141,455 shares of the stock traded hands, compared to its average volume of 198,097. The firm has a market cap of $66.49 billion, a PE ratio of 13.79, a PEG ratio of 1.34 and a beta of 1.55. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.03 and a current ratio of 0.03. Prudential has a 52-week low of $44.49 and a 52-week high of $55.36.

  • [By Ethan Ryder]

    ValuEngine lowered shares of Prudential (NYSE:PUK) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

    Several other analysts have also recently issued reports on the stock. Zacks Investment Research upgraded shares of Prudential from a hold rating to a buy rating and set a $57.00 target price on the stock in a research note on Tuesday, March 27th. Berenberg Bank cut shares of Prudential from a hold rating to a sell rating in a research note on Thursday, March 29th. Finally, Citigroup cut shares of Prudential from a buy rating to a neutral rating in a research note on Wednesday, April 25th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the company. The stock currently has an average rating of Hold and an average price target of $57.00.

Top Medical Stocks To Own For 2018: Haverty Furniture Companies, Inc.(HVT)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Havertys (NYSE:HVT) – Stock analysts at KeyCorp dropped their Q2 2018 earnings per share estimates for Havertys in a research report issued on Wednesday, May 2nd. KeyCorp analyst B. Thomas now anticipates that the company will post earnings per share of $0.29 for the quarter, down from their previous forecast of $0.31. KeyCorp also issued estimates for Havertys’ Q3 2018 earnings at $0.39 EPS and Q4 2018 earnings at $0.45 EPS.

Top Medical Stocks To Own For 2018: Leggett & Platt, Incorporated(LEG)

Advisors’ Opinion:

  • [By Joseph Griffin]

    Leggett & Platt (NYSE: LEG) and Hooker Furniture (NASDAQ:HOFT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

3 Reasons the Market Yawned at the Biggest Marijuana Stock Deal in History

Up until this week, the biggest marijuana stock deal of all time was Aurora Cannabis’ (NASDAQOTH:ACBFF) acquisition of CanniMed Therapeutics earlier this year for $852 million. Now, though, another Aurora transaction is taking the No. 1 spot.

On Monday, Aurora announced it is acquiring MedReleaf (NASDAQOTH:MEDFF) in a deal valued at close to $2.5 billion (around 3.2 billion in Canadian dollars). The news came a little over a week after the two marijuana growers announced that they were in discussions about what MedReleaf referred to in a press release as “various alternatives.”

What was the market’s reaction to the biggest marijuana stock merger in history? A big yawn. While MedReleaf stock understandably enjoyed a nice bump, Aurora Cannabis’ share price didn’t change very much on news of a deal that could make it the biggest marijuana stock on the planet. Here are three reasons the market’s response to the Aurora acquisition of MedReleaf was so subdued.

Miniature human figures pushing green jigsaw puzzle pieces together

Image source: Getty Images.

1. Investors know what’s coming

With the deal, MedReleaf shareholders will receive 3.575 shares of Aurora Cannabis for every share of MedReleaf that they own. When all is said and done, current Aurora shareholders will own roughly 61% of the combined company, with current MedReleaf shareholders owning 39%.

One key reason investors didn’t bid up the share price of Aurora is that they know what’s coming. This will be an all-stock transaction. And all the stock for the deal will come from issuing more Aurora Cannabis shares — a lot of them.

There’s good news and there’s bad news with a deal like this one. The good news is that Aurora will hold on to its cash. The bad news is that current Aurora shareholders will pay the price through dilution. With more Aurora shares issued to give to MedReleaf shareholders, the value of existing Aurora shares will decrease in value.

2. Concerns about the price tag

If investors thought Aurora Cannabis was getting a great bargain in buying MedReleaf, we probably would have seen Aurora stock move higher. That didn’t happen. I suspect it’s at least in part due to concerns about the price tag of the transaction.

Aurora is paying a premium of 34% above MedReleaf’s20-day volume-weighted average price. This level of premium isn’t ridiculously high, though. Aurora ended up paying a premium of 181% above the closing price of CanniMed prior to the announcement of its unsolicited bid for the smaller company. But MedReleaf isn’t a bargain for Aurora.

MedReleaf is on track to have an annual production capacity of 140,000 kilograms. Aurora is paying over $17,700 (or around CA$22,850) per kilogram. That’s not a cheap way to build capacity.

3. Uncertainties about the marijuana market

There’s no way to know for sure how much uncertainties about the marijuana market weighed on investors’ minds in the wake of the news about Aurora buying MedReleaf. My guess, though, is that this had some impact in the muted reaction to the deal.

Canada is on the verge of potentially legalizing recreational marijuana, opening up a big new market for Aurora Cannabis and its peers. Medical marijuana markets are also expanding across the world, particularly in Germany. So, why would investors be nervous?

One factor is that valuations of marijuana stocks already price in expectations of tremendous growth. However, it’s quite clear that the rapid expansion of production capacity by marijuana growers will far exceed even the rosiest projections of demand in the Canadian market.

Aurora Cannabis has expanded its capacity very aggressively. The company was already making a huge bet that supply won’t outstrip demand with international markets added to the domestic Canadian market. An acquisition of MedReleaf makes that bet even bigger.

A good deal?

Is the acquisition of MedReleaf a good deal for Aurora? I think the market’s reaction is probably the right one.

When news first broke about the two companies talking about a potential transaction, my thought was that it made sense in concept. A combination of Aurora and MedReleaf will provide greater economies of scale. Assuming projections for the Canadian recreational marijuana market and for international medical marijuana markets aren’t too far off, companies with greater capacity should benefit tremendously.

On the other hand, the hard math of this particular deal is that more dilution is on the way for Aurora shareholders. The price for the acquisition isn’t cheap.There’s one thing you can say for Aurora Cannabis’ executives, though: They’re not afraid to go big.

3 Reasons Canadian Marijuana Prices May Plunge

The big day is now less than four weeks away. On June 7, Canada’s Senate will vote on bill C-45, which is better known as the Cannabis Act. This bill aims to make recreational marijuana legal for purchase by adults 18 years of age and over. If approved by the Senate, the Cannabis Act likely will move swiftly through Canada’s federal government, allowing it to become the first developed country in the world to legalize adult-use pot.

With conservatives in the minority at the moment and a two-year tax-sharing agreement in place with all but one Canadian province, everything appears to be in place for C-45 to soon become law. Recreational sales are expected to commence roughly eight to 12 weeks following approval, meaning sometime in August or September.

Most importantly, the legalization of recreational weed is expected to result in around $5 billion in added annual sales for Canadian growers, processors, distributors, and retailers. This comes on top of what’s already being generated from medical weed sales and exports. The expectation from investors — given the stratospheric valuations most pot stocks currently possess — is that this legalization will lead to big profits for Canadian marijuana stocks.

Cannabis buds next to a piece of paper that says yes, and lying atop miniature Canadian flags.

Image source: Getty Images.

Yes, cannabis prices could decline significantly in Canada

But what if that turned out not to be the case? What if operating margins for cannabis growers come in significantly lower than expected as a result of falling per-gram marijuana prices? Don’t think it could happen given the expectation of strong demand? Think again!

Here are three good reasons why cannabis prices might plunge in Canada shortly after recreational sales commence.

1. Big growers are purposefully trying to drive out smaller players

The first reason marijuana prices might plunge is because the industry’s largest players are purposefully overproducing cannabis in an effort to drive down per-gram prices and margins. Why would a large grower overproduce cannabis on purpose? Simple: to drive out competitors that don’t have the financial means to survive in a lower-margin environment.

Smaller pot growers don’t have the same access to capital as large players like Aurora Cannabis (NASDAQOTH:ACBFF) or Canopy Growth Corp. (NASDAQOTH:TWMJF). Aurora and Canopy Growth have a respective $333 million and $311 million in cash and cash equivalents on hand and are expected to produce in the neighborhood of 430,000 kilograms and 500,000 kilograms of cannabis annually when at full capacity. Virtually nothing is stopping them from ramping up capacity, burying Canada in supply, driving down margins, and putting smaller players that won’t benefit from economies of scale out of business. If this all sounds somewhat familiar, it’s because this is pretty much what Walmarthas been doing to mom-and-pop stores for decades.

A bottle of dried cannabis tipped over onto a small pile of cash.

Image source: Getty Images.

2. No one has any clue how much consumer demand to expect

Secondly, since no other developed country has ever legalized recreational marijuana before, it’s difficult for growers to get an idea of what consumer demand might look like when the proverbial green flag waves this summer. In plain English, they’re flying blind, producing as much as they can, crossing their fingers, and hoping everything works out.

In some ways, this approach has its merits. For example, growers with a lot of upfront production by this coming summer probably have the greatest chance of securing lucrative long-term supply deals with provinces and retailers, as well as forming emotional attachments with consumers. Growers that won’t complete their ramp ups until next year or 2020 could miss out on these easy-money opportunities. Therefore, blindly pumping out as much production as possible from the get-go appears to be a good idea on the surface.

The issue is that, without understanding underlying demand trends, the industry runs the risk of dramatically oversupplying the domestic market. Most reports have suggested that Canadians will demand around 800,000 kilograms a year by 2020. However, with giants like Aurora Cannabis and Canopy Growth probably producing more than 900,000 kilograms between them, it’s not hard to see how aggregate production across the industry could top 2 million kilograms by 2020 with ease.

While exports may resolve some of this excess supply, there’s no guarantee that they will offset all of it. This ignorance to demand could cause per-gram cannabis prices to plunge.

A man smelling the leaves of a potted cannabis plant.

Image source: Getty Images.

3. Euphoria wears off, leading to a lull in demand

Finally, it’s not uncommon for consumer demand, vis-a-vis euphoria and tourism, to taper off a few months after legalization, resulting in oversupply that drives down cannabis prices.

When Colorado and Washington state legalized recreational marijuana in November 2012 and began selling to adults in 2014, cannabis prices on a per-gram basis were very high. Not long thereafter, though, prices fell dramatically. In Washington state, per-gram prices fell from nearly $25 in August 2014, the month after adult-use sales commenced in the state, to just $6 per gram by October 2016.

Understandably, Colorado and Washington don’t offer a market the size of Canada, so things could go differently for our neighbor to the north. However, in practically every instance of recreational legalization in U.S. states, we’ve witnessed a subsequent drop-off in per-gram prices within a matter of a few months to a year following legalization. The odds would seem to favor a drop in cannabis prices shortly following legalization.

What does all this mean? Ultimately, I think it serves as a warning that Canadian pot stock profits and margins could disappoint investors. With this industry already commanding quite the premium, investors can ill afford any surprises.

Top Low Price Stocks To Buy For 2018

Peyto (OTCPK:PEYUF) is a Canadian E&P company whose production profile is dominated by dry gas (92%). With the low price of natural gas, it has been a tough couple of years for Peyto’s shareholders. That said, the company has maintained its dividend payout through the commodity price downturn. Recently natural gas prices have recovered from their lows, but Peyto’s stock has not kept pace. In fact, it’s gone the other direction:

Click to enlarge

As the chart above show, the stock is down ~13% over the past three months as natural gas – as measure by both the Henry Hub and AECO indexes – has rallied sharply with significant winter withdrawals and forecasts that additional cold weather is on the way:

Top Low Price Stocks To Buy For 2018: Independent Bank Corporation(IBCP)

Advisors’ Opinion:

  • [By Max Byerly]

    BidaskClub lowered shares of Independent Bank (NASDAQ:IBCP) from a buy rating to a hold rating in a research note issued to investors on Friday.

    IBCP has been the topic of several other reports. Zacks Investment Research lowered Independent Bank from a buy rating to a hold rating in a report on Wednesday, February 28th. ValuEngine raised Independent Bank from a hold rating to a buy rating in a report on Tuesday, April 24th. Boenning Scattergood reissued a hold rating on shares of Independent Bank in a report on Tuesday, April 24th. Finally, Hovde Group set a $26.00 price objective on Independent Bank and gave the company a hold rating in a report on Tuesday, April 24th. Five analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Independent Bank presently has a consensus rating of Hold and a consensus target price of $25.25.

Top Low Price Stocks To Buy For 2018: Aurora Cannabis Inc. (ACBFF)

Advisors’ Opinion:

  • [By Sean Williams]

    As a result, Canadian cannabis growers have been expanding their capacity as quickly as their balance sheets will allow. Arguably, none has been more aggressive than Aurora Cannabis (NASDAQOTH:ACBFF).

  • [By Keith Speights]

    Even Canadian marijuana stocks that don’t have significant U.S. ties received a boost. The share prices of the two largest Canadian marijuana growers by market cap, Canopy Growth (NASDAQOTH:TWMJF) and Aurora Cannabis (NASDAQOTH:ACBFF), rose 7% and 8%, respectively.

  • [By SEEKINGALPHA.COM]

    This is good news for many companies in the indusry, including Aurora Cannabis (OTCQX:ACBFF), which will complete its Aurora Sky project around the time marijuana is legalized in Canada.

  • [By Sean Williams]

    There are currently more than 90 licensed cultivators in Canada, and this figure is only expected to grow. Many of these growers have been using every ounce of capital available, as well as utilizing bought-deal offerings to raise additional capital to expand their growing capacity. Six of the largest projected producers –Canopy Growth Corp (NASDAQOTH:TWMJF), Aurora Cannabis (NASDAQOTH:ACBFF), Aphria, MedReleaf, OrganiGram Holdings, and Hydropthecary Corp.– are expected to generate around 1.17 million kilograms per year by 2020.

Top Low Price Stocks To Buy For 2018: Potash Corporation of Saskatchewan Inc.(POT)

Advisors’ Opinion:

  • [By Joseph Griffin]

    PotCoin (CURRENCY:POT) traded 0.6% higher against the US dollar during the 24 hour period ending at 23:00 PM E.T. on May 12th. PotCoin has a total market capitalization of $23.95 million and approximately $62,522.00 worth of PotCoin was traded on exchanges in the last 24 hours. During the last seven days, PotCoin has traded 17.8% lower against the US dollar. One PotCoin coin can now be purchased for approximately $0.11 or 0.00001293 BTC on popular cryptocurrency exchanges including Cryptopia, CoinExchange, Trade By Trade and Tux Exchange.

3 Reasons Canadian Marijuana Prices May Plunge

The big day is now less than four weeks away. On June 7, Canada’s Senate will vote on bill C-45, which is better known as the Cannabis Act. This bill aims to make recreational marijuana legal for purchase by adults 18 years of age and over. If approved by the Senate, the Cannabis Act likely will move swiftly through Canada’s federal government, allowing it to become the first developed country in the world to legalize adult-use pot.

With conservatives in the minority at the moment and a two-year tax-sharing agreement in place with all but one Canadian province, everything appears to be in place for C-45 to soon become law. Recreational sales are expected to commence roughly eight to 12 weeks following approval, meaning sometime in August or September.

Most importantly, the legalization of recreational weed is expected to result in around $5 billion in added annual sales for Canadian growers, processors, distributors, and retailers. This comes on top of what’s already being generated from medical weed sales and exports. The expectation from investors — given the stratospheric valuations most pot stocks currently possess — is that this legalization will lead to big profits for Canadian marijuana stocks.

Cannabis buds next to a piece of paper that says yes, and lying atop miniature Canadian flags.

Image source: Getty Images.

Yes, cannabis prices could decline significantly in Canada

But what if that turned out not to be the case? What if operating margins for cannabis growers come in significantly lower than expected as a result of falling per-gram marijuana prices? Don’t think it could happen given the expectation of strong demand? Think again!

Here are three good reasons why cannabis prices might plunge in Canada shortly after recreational sales commence.

1. Big growers are purposefully trying to drive out smaller players

The first reason marijuana prices might plunge is because the industry’s largest players are purposefully overproducing cannabis in an effort to drive down per-gram prices and margins. Why would a large grower overproduce cannabis on purpose? Simple: to drive out competitors that don’t have the financial means to survive in a lower-margin environment.

Smaller pot growers don’t have the same access to capital as large players like Aurora Cannabis (NASDAQOTH:ACBFF) or Canopy Growth Corp. (NASDAQOTH:TWMJF). Aurora and Canopy Growth have a respective $333 million and $311 million in cash and cash equivalents on hand and are expected to produce in the neighborhood of 430,000 kilograms and 500,000 kilograms of cannabis annually when at full capacity. Virtually nothing is stopping them from ramping up capacity, burying Canada in supply, driving down margins, and putting smaller players that won’t benefit from economies of scale out of business. If this all sounds somewhat familiar, it’s because this is pretty much what Walmarthas been doing to mom-and-pop stores for decades.

A bottle of dried cannabis tipped over onto a small pile of cash.

Image source: Getty Images.

2. No one has any clue how much consumer demand to expect

Secondly, since no other developed country has ever legalized recreational marijuana before, it’s difficult for growers to get an idea of what consumer demand might look like when the proverbial green flag waves this summer. In plain English, they’re flying blind, producing as much as they can, crossing their fingers, and hoping everything works out.

In some ways, this approach has its merits. For example, growers with a lot of upfront production by this coming summer probably have the greatest chance of securing lucrative long-term supply deals with provinces and retailers, as well as forming emotional attachments with consumers. Growers that won’t complete their ramp ups until next year or 2020 could miss out on these easy-money opportunities. Therefore, blindly pumping out as much production as possible from the get-go appears to be a good idea on the surface.

The issue is that, without understanding underlying demand trends, the industry runs the risk of dramatically oversupplying the domestic market. Most reports have suggested that Canadians will demand around 800,000 kilograms a year by 2020. However, with giants like Aurora Cannabis and Canopy Growth probably producing more than 900,000 kilograms between them, it’s not hard to see how aggregate production across the industry could top 2 million kilograms by 2020 with ease.

While exports may resolve some of this excess supply, there’s no guarantee that they will offset all of it. This ignorance to demand could cause per-gram cannabis prices to plunge.

A man smelling the leaves of a potted cannabis plant.

Image source: Getty Images.

3. Euphoria wears off, leading to a lull in demand

Finally, it’s not uncommon for consumer demand, vis-a-vis euphoria and tourism, to taper off a few months after legalization, resulting in oversupply that drives down cannabis prices.

When Colorado and Washington state legalized recreational marijuana in November 2012 and began selling to adults in 2014, cannabis prices on a per-gram basis were very high. Not long thereafter, though, prices fell dramatically. In Washington state, per-gram prices fell from nearly $25 in August 2014, the month after adult-use sales commenced in the state, to just $6 per gram by October 2016.

Understandably, Colorado and Washington don’t offer a market the size of Canada, so things could go differently for our neighbor to the north. However, in practically every instance of recreational legalization in U.S. states, we’ve witnessed a subsequent drop-off in per-gram prices within a matter of a few months to a year following legalization. The odds would seem to favor a drop in cannabis prices shortly following legalization.

What does all this mean? Ultimately, I think it serves as a warning that Canadian pot stock profits and margins could disappoint investors. With this industry already commanding quite the premium, investors can ill afford any surprises.