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Organigram Reports Financial Results and Progress on Capacity Expansion in Advance of Legalization
Marketwired MarketwiredApril 28, 2017
MONCTON, NEW BRUNSWICK--(Marketwired - Apr 28, 2017) - Organigram Holdings Inc. (TSX VENTURE:OGI)(OGRMF) ("Organigram" or the "Company") announces the financial results for the quarter ending February 28, 2017. The Company made significant progress in the quarter toward increasing production capacity of medical marijuana, cannabis oil and related products in its preparation for the legalization of recreational use of marijuana in Canada. The Company is also providing an update regarding its voluntary recall of cannabis products, the current quantified impact to the financial statements, and some of the immediate and voluntary corrective actions and operating policies that Organigram has successfully implemented in response.
Selected highlights from the quarter include the following:
Q2 - 2017 Operating Metric Q2-2016
141,640 Grams Sold (Flower) 169,215
($581,169) Net Sales $1,425,466
n.m. Gross Margin % (excluding FV adjustment) 1 55%
($5,755,215) Net Profit $55,267
($4,714,824) Adjusted EBITDA2 (excluding FV adjustment) $64,199
($4,290,890) Cash Flow3 $116
1. Gross Margin% (excluding FV adjustment) is defined as net sales less costs of goods sold and indirect production costs, divided by net sales.
2. Adjusted EBITDA is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. It is defined as net profit before interest, income tax, depreciation and amortization, and FV adjustment to bio-assets and inventory.
3. Cash flow is calculated net profit before income tax, depreciation and amortization, share-based compensation, and FV adjustment to biological assets and inventory.
"While the product recall was obviously an unfortunate event for the Company and the patients who rely on Organigram for access to their medicine, I am pleased with the way our team has dealt with this challenge. It forced us to re-examine our quality assurance practices and implement new procedures that will help us achieve our goal of producing Canada's Safest Cannabis. I anticipate a return to growth in coming quarters and believe the outlook for our company has never been brighter," says Greg Engel, Chief Executive Officer of Organigram.
In connection with the product recalls announced in December 2016 and January 2017, Organigram recognized a $2.0 million sales credit to uninsured customers for credits issued through a client credit program, indirect production expenses of $1.3 million related to inventory destruction, and a loss of $1.7 million in the change in fair value of biological assets. The Company incurred an increase in cost per gram sold during the quarter as 59% of the dried flower grams sold were from outsourced production. As a result, the Company generated adjusted EBITDA of ($4.7) million and cash flow of ($4.3) million.
During the quarter, Organigram made significant progress with its onsite expansion initiatives. Key developments include the closing of a $40 million dollar bought deal financing which provides sufficient capital to complete the designed onsite expansion to approximately 26,000 kg per year prior to the expected launch of recreational cannabis in Canada during the summer of 2018. The company has continued with progress towards the construction and implementation of the planned 15,000 square foot commercial scale oils and extracts manufacturing facility that will be engineered and designed in collaboration with TGS International LLC ("TGS").
Finally, on April 10, 2017, Organigram signed a letter of intent to acquire all of the issued and outstanding shares of Trauma Healing Centers Incorporated ("THC"). THC specializes in medical cannabis assessment and prescribing while offering a multi-disciplinary approach to healing chronic conditions.
"The acquisition of THC will allow Organigram to accelerate its patient onboarding strategy and further vertically integrates our goal company's cannabis value chain," says Engel.
Marapharm Ventures Inc. 'Marapharm' Announces an Online News Channel for Awareness of the Sector and of Marapharm
PR Newswire PR NewswireApril 28, 2017
KELOWNA, British Columbia, April 28, 2017 /PRNewswire/ --
Marapharm Ventures Inc. (MRPHF) is pleased to announce that it will be launching http://www.marapharm.tv on or before June 15, 2017.
"Marijuana is news. I did an interview on http://www.rightedition.com that has had in excess of 250,000 views. The success of the interview prompted us to look into the viability of doing regular media programs on the industry and on Marapharm. We have a studio, technical team and several prepared scripts. Filming is scheduled to begin May 4, 2017. Our performa indicates that millions of viewers could be reached including investors, users and those who are just interested in news of the marijuana industry. They will then also become aware of Marapharm. There will be an investor's relation and market report of Marapharm's stock activity at the end of each program.
In 2016, Cowen and Company, a Multi Sector Equity Research Group stated that the legal US cannabis markets to be at $6 billion (prior to California's passage of adult use) another $25 billion is spent in the black market. The average monthly searches for 'marijuana' on Google are more than 1 million per month (Source http://www.leafly.com April 26, 2017). These statistics were a factor when researching to create an online video channel for branding and awareness of Marapharm," Linda Sampson, Marapharm CEO.
Abattis Signs Exclusive Distribution Agreement for Proprietary Extraction Technology
Accesswire AccesswireApril 26, 2017
VANCOUVER, BC / ACCESSWIRE / April 26, 2017 / Abattis Bioceuticals Corp. (CSE:ATT) (ATTBF) (the "Company" or "Abattis") is pleased to announce that it has signed an exclusive distribution agreement, effective April 20, 2017 (the "Agreement"), with Suzhou Raybot Material Tech Corp. ("Raybot"). The Agreement allows Abattis to use Raybot's proprietary extraction technology and to exclusively sell the extraction equipment and services.
Raybot has developed a proprietary technology which utilizes industrial column chromatography to extract and separate a wide range of materials, in a continuous, closed loop system. This method, which is currently used in the mass production of extracts, such as Ginkgo Biloba, Stevia, and Ginsenosides, among others, has been specifically designed for the extraction of legal cannabis derivatives, such as Cannabidiol ("CBD"), Tetrahydrocannabinol ("THC"), and Cannabigerol ("CBG"), from Marijuana or Hemp. The technology has excellent processing capacity, high extraction yield, and significant cost advantages over traditional methods.
The proprietary technology is capable of extracting CBD from Hemp to above a 99% purity level. The current methods using multi-staged CO2 extraction are significantly more expensive and limited in production scale. Raybot's extraction machines can be customized to any factory production scale. A factory with 5,000 kg per day processing rate is able to produce CBD at $0.20 per gram.
"This technology has the potential to revolutionize the extraction process for THC, CBD, CBG and other cannabis derivatives globally," stated Robert Abenante, President and CEO of Abattis. "Raybot's proprietary extraction method is currently one of the only toll processing technologies that can extract high purity CBD on an industrial scale. Furthermore, it could lead to the full separation of individual compounds and derivatives at significantly lower costs than today's widely used methods."
"We are eager to bring this technology to Abattis to verify its capabilities in our labs," says Dr. Will Panenka, Director of Abattis. Dr. Panenka, MD, is an assistant professor, neurologist, and psychiatrist with a pre-clinical and clinical academic research program focused on substance use and brain injury at the University of British Columbia.
Pursuant to the terms of the Agreement, Abattis has obtained exclusive rights to sell the machines, receive royalties, and service licensed producers by offering toll processing and extraction. The distribution is exclusively licensed to Abattis in the territories of North America and Europe.
"This is the only extraction technology capable of processing industrial scale volumes of biomass and separation of individual compounds to any target purity levels," said Dr. Shuang Xie, Director of Abattis. "With this technology, products containing phyto-cannabinoids can become more cost-effective which would enable the production of affordable natural, functional products for consumers."
Northern Vine Update
The Company is also pleased to announce that its subsidiary, Northern Vine Canada Inc. ("Northern Vine") has now been added to the Health Canada websites' list of Licensed Dealers (see below for details). This further contributes to the Company's positive momentum as Northern Vine completes the final installations and calibrations of its state of the art machinery capable of analytical testing for a variety of medicinal marijuana products.
Mr. Abenante commented, "We have taken a big step forward in becoming a full service provider to Licensed Producers and end-consumers of medicinal marijuana products. The agreement with Raybot puts the Company in a position to be the leading provider of phyto-cannabinoid extraction products and services, and the launching of our lab will enable us to immediately generate revenue through providing analytical testing services to the Canadian medical Cannabis market and the future Recreational market."
Aphria Inc. Canadian Cannabis Producer Raises C$100 Million in Capital Analyst Report
Accesswire AccesswireApril 25, 2017
NEW YORK, NY / ACCESSWIRE / April 25, 2017 / Traders News Source, a leading independent equity research and corporate access firm focused on small and micro-cap public companies is issuing a comprehensive report with no obligation on Aphria Inc. (APHQF), a Canadian company that produces, supplies, and sells medical cannabis. On April 20, 2017, the company announced that it had raised C$100 million in financing. The net proceeds will be allocated equally between Part IV of the company's expansion plan and working capital needs.
Aphria is in the midst of a multi-phase expansion program. Upon completion of Part II, the company expects that annual production capacity will reach 5,500 kilograms of dried cannabis and 9,000 litres of cannabis oil. The Canadian government recently introduced Bill C-45 to fully legalize cannabis. Although the exact timeline is uncertain, many expect legalization to occur within the first half of 2018. Medical sales by licensed producers are already legal, but it remains unclear exactly how recreational sales will be regulated.
Find out how Aphria plans to spend the new C$100 million in financing in our analyst report READ MORE
Copy and paste to your browser may be required to view the report - http://tradersnewssource.com/aphria-inc/
The proposed legislation does state that licensed producers under the ACMPR will become licensed producers under the new Cannabis Act. Therefore, existing producers with established operations and access to financing, such as Aphria, Organigram, and Canopy Growth, would be well-positioned to capitalize on new market opportunities.
On April 19, 2017, Aphria announced a joint deal with Tetra Bio-Pharma for the distribution of dried medical cannabis in Quebec and the Maritime provinces. Based on the success of the arrangement, Tetra and Aphria may expand into other provinces. Commercial operations are expected to begin in the summer of 2017, with revenue being recognized shortly thereafter.
According to data from Arcview Market Research, North American consumers spent $6.7 billion on legal cannabis products in 2016, a 34 percent increase from the prior year. By 2020, this figure could grow to $18 billion.
Find out how the newly proposed Canadian legislation could impact Aphria READ MORE
Copy and paste to your browser may be required to view the report - http://tradersnewssource.com/aphria-inc/
3 Marijuana Stocks That Will Benefit Massively If Canada Legalizes Recreational Weed
The pot stocks are expanding their growing capacity at just the right time.
Sean Williams (TMFUltraLong) Apr 24, 2017 at 9:26AM
The world stands on the precipice of a potentially momentous marijuana moment.
On April 13, Canadian Prime Minister Justin Trudeau introduced legislation that would officially end the prohibition of marijuana. If this bill is approved, Canada would become the second country in the world to legalize recreational weed, behind only Uruguay.
Trudeau's cannabis legislation spelled out a number of components of the law. For example, it would let people aged 18 and over to buy recreational pot. However, it would also give Canadian provinces the right to increase the minimum age limit should they choose. Consumers would be allowed to purchase and carry roughly one ounce of cannabis, as well as grow up to four plants in their households. And, just like we see in the U.S., commercial growers would need to obtain permits from the government (in this case, the Canadian government) and stick to specific laws within their province before they'd be allowed to sell recreational weed to consumers.
A marijuana joint in front of the Canadian maple leaf.
IMAGE SOURCE: GETTY IMAGES.
There are, of course, still a number of unanswered questions. For instance, the exact nature of the tax rate has yet to be disclosed. Also, no one has any idea on the cost to regulate the industry, or the amount of marijuana that would be allowed for recreational distribution.
A Canadian "green rush" could be great news for these marijuana stocks
According to Canadian government estimates, the legalization of marijuana could generate $5 billion to $7 billion in annual sales.While that might seem like peanuts compared to the U.S., legalizing in Canada means an immediate surge in sales that could put the U.S. on the back burner in the eyes of investors. The Canadian green rush appears to be underway, and that's great news for a handful of marijuana stocks operating in our neighbor to the north.
In particular, three Canadian medical cannabis companies, which have been expanding their growth operations like crazy over the past couple of quarters, could be in line for significant sales growth if Trudeau's legislation passes. These marijuana stocks are Canopy Growth Corp. (NASDAQOTH:TWMJF), Aphria (NASDAQOTH:APHQF), and Aurora Cannabis (NASDAQOTH:ACBFF).
Organic or inorganic growth: What's your pleasure?
Canopy Growth has been primarily expanding its operations through acquisitions, while Aphria and Aurora Cannabis have chosen a more organic expansion route.
A commercial indoor cannabis grow farm.
IMAGE SOURCE: GETTY IMAGES.
Canopy Growth Corp., which is Canada's largest pot stock by market cap, announced its intent to acquire Mettrum Health for $430 million late last year. The acquisition gave Canopy Growth access to about half of Canada's medical cannabis users, and it, in aggregate, increased its production capacity to six licensed facilities and 665,000 square feet. Canopy Growth also added two more unique brands to its medical product portfolio.
As reported in the company's third-quarter results, year-to-date revenue through Q3 2017 was $25.2 million, a 230% increase from the prior-year period. This is fully indicative of the company's heavy focus on expansion, but it represents just a taste of what could be to come.
On the other side of the aisle, Aphria and Aurora Cannabis are commissioning some monster expansion projects. Aurora Cannabis announced in late November that it began construction of an 800,000-square-foot facility known as Aurora Sky. When completed, it's expected to be the most technologically advanced cannabis production farm in the world. In the interim, Aurora also acquired a 40,000-square-foot production facility in Quebec.
In January, Aphria's board announced a fully funded $137 million capital project known as its Part IV expansion that's designed to increase its square-footage capacity for cannabis growth from 300,000 to 1 million. Completion of the project is expected within the next 12 months, which would put it in line to handle a surge in demand if Canada legalizes recreational weed during the first half of 2018.
Cannabis buds inside a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
Recurring profitability is a real possibility
Both Canopy Growth and Aphria offer added intrigue because both companies are already generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA), and both will likely be profitable on a recurring basis by the end of their current fiscal year.
Canopy Growth has generated in excess of $5.8 million in EBITDA over the trailing 12 months, while Aphria is approaching nearly $2.1 million in EBITDA over the same time frame. Aurora Cannabis produced a negative EBITDA of $6.6 million over the trailing-12-month period, but that's not to be unexpected with its future riding on its substantial investment in the Aurora Sky project. Aphria is already profitable on a trailing-12-month basis, and Canopy Growth has been profitable for the past couple of quarters.
It's still important for investors to understand that as of right now these companies are exceptionally pricey. On both a price-to-sales and a price-to-EBITDA basis, these marijuana stocks would make most investors cringe in horror. But things could get better very quickly. The question at this point is whether their critical fundamentals (e.g., sales, profits, EBITDA, and margins) will catch up with their already expanded valuations. To this end, no one is really sure, which is why investing in marijuana stocks, even ones with reasonably large market caps, is very risky.
But if you're looking for a cream-of-the-crop stock to keep your eyes on, focus on Aphria, which has fully funded its projects organically, is already profitable on a trailing-12-month basis, and stands to gain substantially if Canada moves forward with its recreational legalization and if it can complete its expansion by early 2018 as forecast. Aphria is still relatively small compared to Canopy Growth, suggesting its stock may offer the most upside potential.
3 Marijuana Stocks That Will Benefit Massively If Canada Legalizes Recreational Weed
The pot stocks are expanding their growing capacity at just the right time.
Sean Williams (TMFUltraLong) Apr 24, 2017 at 9:26AM
The world stands on the precipice of a potentially momentous marijuana moment.
On April 13, Canadian Prime Minister Justin Trudeau introduced legislation that would officially end the prohibition of marijuana. If this bill is approved, Canada would become the second country in the world to legalize recreational weed, behind only Uruguay.
Trudeau's cannabis legislation spelled out a number of components of the law. For example, it would let people aged 18 and over to buy recreational pot. However, it would also give Canadian provinces the right to increase the minimum age limit should they choose. Consumers would be allowed to purchase and carry roughly one ounce of cannabis, as well as grow up to four plants in their households. And, just like we see in the U.S., commercial growers would need to obtain permits from the government (in this case, the Canadian government) and stick to specific laws within their province before they'd be allowed to sell recreational weed to consumers.
A marijuana joint in front of the Canadian maple leaf.
IMAGE SOURCE: GETTY IMAGES.
There are, of course, still a number of unanswered questions. For instance, the exact nature of the tax rate has yet to be disclosed. Also, no one has any idea on the cost to regulate the industry, or the amount of marijuana that would be allowed for recreational distribution.
A Canadian "green rush" could be great news for these marijuana stocks
According to Canadian government estimates, the legalization of marijuana could generate $5 billion to $7 billion in annual sales.While that might seem like peanuts compared to the U.S., legalizing in Canada means an immediate surge in sales that could put the U.S. on the back burner in the eyes of investors. The Canadian green rush appears to be underway, and that's great news for a handful of marijuana stocks operating in our neighbor to the north.
In particular, three Canadian medical cannabis companies, which have been expanding their growth operations like crazy over the past couple of quarters, could be in line for significant sales growth if Trudeau's legislation passes. These marijuana stocks are Canopy Growth Corp. (NASDAQOTH:TWMJF), Aphria (NASDAQOTH:APHQF), and Aurora Cannabis (NASDAQOTH:ACBFF).
Organic or inorganic growth: What's your pleasure?
Canopy Growth has been primarily expanding its operations through acquisitions, while Aphria and Aurora Cannabis have chosen a more organic expansion route.
A commercial indoor cannabis grow farm.
IMAGE SOURCE: GETTY IMAGES.
Canopy Growth Corp., which is Canada's largest pot stock by market cap, announced its intent to acquire Mettrum Health for $430 million late last year. The acquisition gave Canopy Growth access to about half of Canada's medical cannabis users, and it, in aggregate, increased its production capacity to six licensed facilities and 665,000 square feet. Canopy Growth also added two more unique brands to its medical product portfolio.
As reported in the company's third-quarter results, year-to-date revenue through Q3 2017 was $25.2 million, a 230% increase from the prior-year period. This is fully indicative of the company's heavy focus on expansion, but it represents just a taste of what could be to come.
On the other side of the aisle, Aphria and Aurora Cannabis are commissioning some monster expansion projects. Aurora Cannabis announced in late November that it began construction of an 800,000-square-foot facility known as Aurora Sky. When completed, it's expected to be the most technologically advanced cannabis production farm in the world. In the interim, Aurora also acquired a 40,000-square-foot production facility in Quebec.
In January, Aphria's board announced a fully funded $137 million capital project known as its Part IV expansion that's designed to increase its square-footage capacity for cannabis growth from 300,000 to 1 million. Completion of the project is expected within the next 12 months, which would put it in line to handle a surge in demand if Canada legalizes recreational weed during the first half of 2018.
Cannabis buds inside a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
Recurring profitability is a real possibility
Both Canopy Growth and Aphria offer added intrigue because both companies are already generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA), and both will likely be profitable on a recurring basis by the end of their current fiscal year.
Canopy Growth has generated in excess of $5.8 million in EBITDA over the trailing 12 months, while Aphria is approaching nearly $2.1 million in EBITDA over the same time frame. Aurora Cannabis produced a negative EBITDA of $6.6 million over the trailing-12-month period, but that's not to be unexpected with its future riding on its substantial investment in the Aurora Sky project. Aphria is already profitable on a trailing-12-month basis, and Canopy Growth has been profitable for the past couple of quarters.
It's still important for investors to understand that as of right now these companies are exceptionally pricey. On both a price-to-sales and a price-to-EBITDA basis, these marijuana stocks would make most investors cringe in horror. But things could get better very quickly. The question at this point is whether their critical fundamentals (e.g., sales, profits, EBITDA, and margins) will catch up with their already expanded valuations. To this end, no one is really sure, which is why investing in marijuana stocks, even ones with reasonably large market caps, is very risky.
But if you're looking for a cream-of-the-crop stock to keep your eyes on, focus on Aphria, which has fully funded its projects organically, is already profitable on a trailing-12-month basis, and stands to gain substantially if Canada moves forward with its recreational legalization and if it can complete its expansion by early 2018 as forecast. Aphria is still relatively small compared to Canopy Growth, suggesting its stock may offer the most upside potential.
3 Marijuana Stocks That Will Benefit Massively If Canada Legalizes Recreational Weed
The pot stocks are expanding their growing capacity at just the right time.
Sean Williams (TMFUltraLong) Apr 24, 2017 at 9:26AM
The world stands on the precipice of a potentially momentous marijuana moment.
On April 13, Canadian Prime Minister Justin Trudeau introduced legislation that would officially end the prohibition of marijuana. If this bill is approved, Canada would become the second country in the world to legalize recreational weed, behind only Uruguay.
Trudeau's cannabis legislation spelled out a number of components of the law. For example, it would let people aged 18 and over to buy recreational pot. However, it would also give Canadian provinces the right to increase the minimum age limit should they choose. Consumers would be allowed to purchase and carry roughly one ounce of cannabis, as well as grow up to four plants in their households. And, just like we see in the U.S., commercial growers would need to obtain permits from the government (in this case, the Canadian government) and stick to specific laws within their province before they'd be allowed to sell recreational weed to consumers.
A marijuana joint in front of the Canadian maple leaf.
IMAGE SOURCE: GETTY IMAGES.
There are, of course, still a number of unanswered questions. For instance, the exact nature of the tax rate has yet to be disclosed. Also, no one has any idea on the cost to regulate the industry, or the amount of marijuana that would be allowed for recreational distribution.
A Canadian "green rush" could be great news for these marijuana stocks
According to Canadian government estimates, the legalization of marijuana could generate $5 billion to $7 billion in annual sales.While that might seem like peanuts compared to the U.S., legalizing in Canada means an immediate surge in sales that could put the U.S. on the back burner in the eyes of investors. The Canadian green rush appears to be underway, and that's great news for a handful of marijuana stocks operating in our neighbor to the north.
In particular, three Canadian medical cannabis companies, which have been expanding their growth operations like crazy over the past couple of quarters, could be in line for significant sales growth if Trudeau's legislation passes. These marijuana stocks are Canopy Growth Corp. (NASDAQOTH:TWMJF), Aphria (NASDAQOTH:APHQF), and Aurora Cannabis (NASDAQOTH:ACBFF).
Organic or inorganic growth: What's your pleasure?
Canopy Growth has been primarily expanding its operations through acquisitions, while Aphria and Aurora Cannabis have chosen a more organic expansion route.
A commercial indoor cannabis grow farm.
IMAGE SOURCE: GETTY IMAGES.
Canopy Growth Corp., which is Canada's largest pot stock by market cap, announced its intent to acquire Mettrum Health for $430 million late last year. The acquisition gave Canopy Growth access to about half of Canada's medical cannabis users, and it, in aggregate, increased its production capacity to six licensed facilities and 665,000 square feet. Canopy Growth also added two more unique brands to its medical product portfolio.
As reported in the company's third-quarter results, year-to-date revenue through Q3 2017 was $25.2 million, a 230% increase from the prior-year period. This is fully indicative of the company's heavy focus on expansion, but it represents just a taste of what could be to come.
On the other side of the aisle, Aphria and Aurora Cannabis are commissioning some monster expansion projects. Aurora Cannabis announced in late November that it began construction of an 800,000-square-foot facility known as Aurora Sky. When completed, it's expected to be the most technologically advanced cannabis production farm in the world. In the interim, Aurora also acquired a 40,000-square-foot production facility in Quebec.
In January, Aphria's board announced a fully funded $137 million capital project known as its Part IV expansion that's designed to increase its square-footage capacity for cannabis growth from 300,000 to 1 million. Completion of the project is expected within the next 12 months, which would put it in line to handle a surge in demand if Canada legalizes recreational weed during the first half of 2018.
Cannabis buds inside a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
Recurring profitability is a real possibility
Both Canopy Growth and Aphria offer added intrigue because both companies are already generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA), and both will likely be profitable on a recurring basis by the end of their current fiscal year.
Canopy Growth has generated in excess of $5.8 million in EBITDA over the trailing 12 months, while Aphria is approaching nearly $2.1 million in EBITDA over the same time frame. Aurora Cannabis produced a negative EBITDA of $6.6 million over the trailing-12-month period, but that's not to be unexpected with its future riding on its substantial investment in the Aurora Sky project. Aphria is already profitable on a trailing-12-month basis, and Canopy Growth has been profitable for the past couple of quarters.
It's still important for investors to understand that as of right now these companies are exceptionally pricey. On both a price-to-sales and a price-to-EBITDA basis, these marijuana stocks would make most investors cringe in horror. But things could get better very quickly. The question at this point is whether their critical fundamentals (e.g., sales, profits, EBITDA, and margins) will catch up with their already expanded valuations. To this end, no one is really sure, which is why investing in marijuana stocks, even ones with reasonably large market caps, is very risky.
But if you're looking for a cream-of-the-crop stock to keep your eyes on, focus on Aphria, which has fully funded its projects organically, is already profitable on a trailing-12-month basis, and stands to gain substantially if Canada moves forward with its recreational legalization and if it can complete its expansion by early 2018 as forecast. Aphria is still relatively small compared to Canopy Growth, suggesting its stock may offer the most upside potential.
Marapharm to Present at Planet Microcap Showcase in Las Vegas; Update on Nevada
PR Newswire PR NewswireApril 24, 2017
KELOWNA, British Columbia, April 24, 2017 /PRNewswire/ --
Marapharm Ventures Inc. ("Marapharm") (MRPHF) (MDM) (2M0.F) is pleased to announce that Marapharm has been invited by the CSE to attend the Planet Microcap Showcase 2017, in Las Vegas on April 26-28. Linda Sampson and Yari Nieken, directors, will represent Marapharm. As an emerging company, Marapharm will participate in one-on-one meetings, networking and will do a presentation to financial professionals, industry leaders, investors and executives. "We are honored to have been invited to participate in this event, it will give us the opportunity to share the Marapharm story alongside other keynote speakers in this sector," Linda Sampson CEO.
Nevada update
All ground preparation and construction grading is complete at the site. We have altered the plans to accommodate our advanced vertical growing technology and as a result we have experienced some permitting delays. All permits are now ready to go, and construction will be expedited.
In the interim, the Company has brought two modular buildings onsite, which will be modified to meet Nevada State requirements for cultivation and processing. Upon Nevada State approval, the Company will be positioned to apply for recreational licensing, within the time frame of the new schedule as brought forward by the State of Nevada (July 2017). "We would like to thank the mayor of North Las Vegas, John Lee, and Nevada state officials, for their assistance in helping us move our project forward. We invite shareholders to visit the construction site when in Las Vegas," Linda Sampson CEO.
This Landmark Cannabis Bill Is Great News for Marijuana Stocks
Colorado is putting an end to recreational grow cooperatives, and that's great news for legitimate pot businesses.
Sean Williams (TMFUltraLong) Apr 23, 2017 at 7:57AM
Investors would probably struggle to find an industry that's growing at a faster and more consistent pace than legal marijuana.
Last year alone, according to cannabis research firm ArcView, North American legal pot sales jumped 34% to $6.9 billion. ArcView estimates that legal sales could top $22 billion by 2021, with investment firm Cowen & Co. expecting legal sales to hit $50 billion by 2026. Regardless of what estimate you choose to believe, the legal marijuana industry is growing by between 20% and 30% a year. That type of consistent long-term growth is certainly appealing to investors.
Cannabis plant with a partly cloudy sky in the background.
IMAGE SOURCE: PIXABAY.
The sky could be the limit -- if not for these issues
Of course, the marijuana industry continues to face a laundry list of risks.
For instance, the U.S. federal government continues to categorize cannabis as a Schedule I substance, thus denying marijuana companies the ability to take normal corporate tax deductions, and in many cases ensuring they have little to no access to basic banking services. Since financial institutions report to the Federal Deposit Insurance Corporation (FDIC), and the FDIC is a federally created entity, dealing with cannabis businesses could be construed as money laundering.
There are also a number of political risks. In February, White House press secretary Sean Spicer announced that the Trump administration would depart from the lax policies of the preceding administration and step up enforcement on federal laws on recreational pot. It's unclear just how rigorous this federal enforcement might be, but newly appointed Attorney General Jeff Sessions might arguably be the most ardent opponent of marijuana's expansion in the country, so you can imagine the concern within the industry.
The lack of a clear line in the sand between federal and state laws, and even legal cannabis laws within some states, can also create issues and lead to business uncertainty. While the sky could be the limit for marijuana stocks, they've been largely held back by a number of adverse factors.
A judge's gavel next to a book that lays out the difference between federal and state laws.
IMAGE SOURCE: GETTY IMAGES.
This landmark Colorado bill could be big for marijuana stocks
However, a benchmark bill that was passed in the Colorado Senate last week by a landslide 35-0 vote looks to put an end to one of the industry's greatest recreational pot uncertainties (at least within Colorado).
The bill (HB17-1221), known as the Grey and Black Market Marijuana Enforcement Efforts, will make it illegal for marijuana growing cooperatives to exist in Colorado. In co-ops, one individual is designated as the farmer while users share in the costs of electricity, water, and fertilizer needed to grow marijuana. This is allowed in Colorado, as the law's language allows adults over the age of 21 to assist someone else in growing pot.
Growing recreational cannabis as a cooperative makes it far less costly since only the individual farmer designated to grow pays tax, allowing some Coloradans to avoid up to a 30% retail tax on pot, depending on the jurisdiction. Lawmakers viewed this loophole as just another way for the black market to thrive, and believe this bill to outlaw co-ops will close that loophole.
This bill also provides nearly $6 million a year of marijuana tax revenue to law enforcement agencies, which will be used to investigate illegal growing operations within the state.
A marijuana grower standing next to his crop.
IMAGE SOURCE: GETTY IMAGES.
Additionally, Gov. John Hickenlooper has plans to pass a separate bill limiting the number of medical cannabis plants that can be grown in a resident's home to 12. This would require medical users who are authorized to grow more than 12 plants to do so in a commercial or agricultural setting, or to buy from a medical marijuana dispensary. In other words, the tax-free ride is ending at 12 plants for medical patients.
Though a tougher regulatory environment might not seem like a good thing for the industry, it's actually great news for legal businesses and marijuana stocks. By more precisely defining the legality of who can grow recreational pot, Colorado is laying the groundwork for its legal businesses to thrive. Since Colorado is such a marijuana pioneer, other states may soon follow its lead.
U.S. pot stocks still need a federal "push"
While Colorado's bill is a great step in the right direction for marijuana stocks in the U.S., they still need some help from the federal government to be a viable investment opportunity, and it's unclear when that might happen.
Last summer, the U.S. Drug Enforcement Agency (DEA) had the opportunity to consider rescheduling or descheduling pot and it chose to do neither despite two petitions. The DEA claimed that there wasn't enough benefit-versus-risk data available to change its scheduling, nor the proper oversight to allow a drug like cannabis to be prescribed by physicians. Given how long it takes for petitions of this nature to make their way to the DEA, we could be looking at years before the U.S. government considers rescheduling once again.
On the other hand, our neighbors to the north (Canada) could be on the precipice of legalizing recreational cannabis. If new legislation is passed and Canada does indeed allow adults to purchase pot legally, then some of its largest grow farms could become instant winners. A few names that come to mind are Canopy Growth Corp. (NASDAQOTH:TWMJF), Aphria (NASDAQOTH:APHQF), and Aurora Cannabis (NASDAQOTH:ACBFF).
An indoor commercial marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Perhaps what's most interesting is that if the U.S. government ever did change its tune on marijuana, these three Canadian pot stocks would likely be the biggest beneficiaries of all, since they're all busy expanding their grow operations to meet heightened demand.
For example, Aurora Cannabis is currently in the process of constructing its Aurora Sky project, which is a technologically advanced 800,000-square-foot growing space that could easily be used meet recreational weed demand for Canada and/or the United States. Inclusive of a recent acquisition of a 40,000-square-foot facility, Aurora's grow capacity will soon jump from less than 100,000 square feet to nearly 900,000!
Aphria has also been expanding organically, while Canopy Growth's acquisition of Mettrum has allowed its growing capacity to expand quickly.
As U.S. states work out the kinks with their marijuana laws, we may begin to see these more developed and centralized Canadian marijuana stocks benefit. Of course, we really need to see a change of heart on Capitol Hill if real progress is to be made within the pot industry and with marijuana stocks as a whole.
This Landmark Cannabis Bill Is Great News for Marijuana Stocks
Colorado is putting an end to recreational grow cooperatives, and that's great news for legitimate pot businesses.
Sean Williams (TMFUltraLong) Apr 23, 2017 at 7:57AM
Investors would probably struggle to find an industry that's growing at a faster and more consistent pace than legal marijuana.
Last year alone, according to cannabis research firm ArcView, North American legal pot sales jumped 34% to $6.9 billion. ArcView estimates that legal sales could top $22 billion by 2021, with investment firm Cowen & Co. expecting legal sales to hit $50 billion by 2026. Regardless of what estimate you choose to believe, the legal marijuana industry is growing by between 20% and 30% a year. That type of consistent long-term growth is certainly appealing to investors.
Cannabis plant with a partly cloudy sky in the background.
IMAGE SOURCE: PIXABAY.
The sky could be the limit -- if not for these issues
Of course, the marijuana industry continues to face a laundry list of risks.
For instance, the U.S. federal government continues to categorize cannabis as a Schedule I substance, thus denying marijuana companies the ability to take normal corporate tax deductions, and in many cases ensuring they have little to no access to basic banking services. Since financial institutions report to the Federal Deposit Insurance Corporation (FDIC), and the FDIC is a federally created entity, dealing with cannabis businesses could be construed as money laundering.
There are also a number of political risks. In February, White House press secretary Sean Spicer announced that the Trump administration would depart from the lax policies of the preceding administration and step up enforcement on federal laws on recreational pot. It's unclear just how rigorous this federal enforcement might be, but newly appointed Attorney General Jeff Sessions might arguably be the most ardent opponent of marijuana's expansion in the country, so you can imagine the concern within the industry.
The lack of a clear line in the sand between federal and state laws, and even legal cannabis laws within some states, can also create issues and lead to business uncertainty. While the sky could be the limit for marijuana stocks, they've been largely held back by a number of adverse factors.
A judge's gavel next to a book that lays out the difference between federal and state laws.
IMAGE SOURCE: GETTY IMAGES.
This landmark Colorado bill could be big for marijuana stocks
However, a benchmark bill that was passed in the Colorado Senate last week by a landslide 35-0 vote looks to put an end to one of the industry's greatest recreational pot uncertainties (at least within Colorado).
The bill (HB17-1221), known as the Grey and Black Market Marijuana Enforcement Efforts, will make it illegal for marijuana growing cooperatives to exist in Colorado. In co-ops, one individual is designated as the farmer while users share in the costs of electricity, water, and fertilizer needed to grow marijuana. This is allowed in Colorado, as the law's language allows adults over the age of 21 to assist someone else in growing pot.
Growing recreational cannabis as a cooperative makes it far less costly since only the individual farmer designated to grow pays tax, allowing some Coloradans to avoid up to a 30% retail tax on pot, depending on the jurisdiction. Lawmakers viewed this loophole as just another way for the black market to thrive, and believe this bill to outlaw co-ops will close that loophole.
This bill also provides nearly $6 million a year of marijuana tax revenue to law enforcement agencies, which will be used to investigate illegal growing operations within the state.
A marijuana grower standing next to his crop.
IMAGE SOURCE: GETTY IMAGES.
Additionally, Gov. John Hickenlooper has plans to pass a separate bill limiting the number of medical cannabis plants that can be grown in a resident's home to 12. This would require medical users who are authorized to grow more than 12 plants to do so in a commercial or agricultural setting, or to buy from a medical marijuana dispensary. In other words, the tax-free ride is ending at 12 plants for medical patients.
Though a tougher regulatory environment might not seem like a good thing for the industry, it's actually great news for legal businesses and marijuana stocks. By more precisely defining the legality of who can grow recreational pot, Colorado is laying the groundwork for its legal businesses to thrive. Since Colorado is such a marijuana pioneer, other states may soon follow its lead.
U.S. pot stocks still need a federal "push"
While Colorado's bill is a great step in the right direction for marijuana stocks in the U.S., they still need some help from the federal government to be a viable investment opportunity, and it's unclear when that might happen.
Last summer, the U.S. Drug Enforcement Agency (DEA) had the opportunity to consider rescheduling or descheduling pot and it chose to do neither despite two petitions. The DEA claimed that there wasn't enough benefit-versus-risk data available to change its scheduling, nor the proper oversight to allow a drug like cannabis to be prescribed by physicians. Given how long it takes for petitions of this nature to make their way to the DEA, we could be looking at years before the U.S. government considers rescheduling once again.
On the other hand, our neighbors to the north (Canada) could be on the precipice of legalizing recreational cannabis. If new legislation is passed and Canada does indeed allow adults to purchase pot legally, then some of its largest grow farms could become instant winners. A few names that come to mind are Canopy Growth Corp. (NASDAQOTH:TWMJF), Aphria (NASDAQOTH:APHQF), and Aurora Cannabis (NASDAQOTH:ACBFF).
An indoor commercial marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Perhaps what's most interesting is that if the U.S. government ever did change its tune on marijuana, these three Canadian pot stocks would likely be the biggest beneficiaries of all, since they're all busy expanding their grow operations to meet heightened demand.
For example, Aurora Cannabis is currently in the process of constructing its Aurora Sky project, which is a technologically advanced 800,000-square-foot growing space that could easily be used meet recreational weed demand for Canada and/or the United States. Inclusive of a recent acquisition of a 40,000-square-foot facility, Aurora's grow capacity will soon jump from less than 100,000 square feet to nearly 900,000!
Aphria has also been expanding organically, while Canopy Growth's acquisition of Mettrum has allowed its growing capacity to expand quickly.
As U.S. states work out the kinks with their marijuana laws, we may begin to see these more developed and centralized Canadian marijuana stocks benefit. Of course, we really need to see a change of heart on Capitol Hill if real progress is to be made within the pot industry and with marijuana stocks as a whole.
This Landmark Cannabis Bill Is Great News for Marijuana Stocks
Colorado is putting an end to recreational grow cooperatives, and that's great news for legitimate pot businesses.
Sean Williams (TMFUltraLong) Apr 23, 2017 at 7:57AM
Investors would probably struggle to find an industry that's growing at a faster and more consistent pace than legal marijuana.
Last year alone, according to cannabis research firm ArcView, North American legal pot sales jumped 34% to $6.9 billion. ArcView estimates that legal sales could top $22 billion by 2021, with investment firm Cowen & Co. expecting legal sales to hit $50 billion by 2026. Regardless of what estimate you choose to believe, the legal marijuana industry is growing by between 20% and 30% a year. That type of consistent long-term growth is certainly appealing to investors.
Cannabis plant with a partly cloudy sky in the background.
IMAGE SOURCE: PIXABAY.
The sky could be the limit -- if not for these issues
Of course, the marijuana industry continues to face a laundry list of risks.
For instance, the U.S. federal government continues to categorize cannabis as a Schedule I substance, thus denying marijuana companies the ability to take normal corporate tax deductions, and in many cases ensuring they have little to no access to basic banking services. Since financial institutions report to the Federal Deposit Insurance Corporation (FDIC), and the FDIC is a federally created entity, dealing with cannabis businesses could be construed as money laundering.
There are also a number of political risks. In February, White House press secretary Sean Spicer announced that the Trump administration would depart from the lax policies of the preceding administration and step up enforcement on federal laws on recreational pot. It's unclear just how rigorous this federal enforcement might be, but newly appointed Attorney General Jeff Sessions might arguably be the most ardent opponent of marijuana's expansion in the country, so you can imagine the concern within the industry.
The lack of a clear line in the sand between federal and state laws, and even legal cannabis laws within some states, can also create issues and lead to business uncertainty. While the sky could be the limit for marijuana stocks, they've been largely held back by a number of adverse factors.
A judge's gavel next to a book that lays out the difference between federal and state laws.
IMAGE SOURCE: GETTY IMAGES.
This landmark Colorado bill could be big for marijuana stocks
However, a benchmark bill that was passed in the Colorado Senate last week by a landslide 35-0 vote looks to put an end to one of the industry's greatest recreational pot uncertainties (at least within Colorado).
The bill (HB17-1221), known as the Grey and Black Market Marijuana Enforcement Efforts, will make it illegal for marijuana growing cooperatives to exist in Colorado. In co-ops, one individual is designated as the farmer while users share in the costs of electricity, water, and fertilizer needed to grow marijuana. This is allowed in Colorado, as the law's language allows adults over the age of 21 to assist someone else in growing pot.
Growing recreational cannabis as a cooperative makes it far less costly since only the individual farmer designated to grow pays tax, allowing some Coloradans to avoid up to a 30% retail tax on pot, depending on the jurisdiction. Lawmakers viewed this loophole as just another way for the black market to thrive, and believe this bill to outlaw co-ops will close that loophole.
This bill also provides nearly $6 million a year of marijuana tax revenue to law enforcement agencies, which will be used to investigate illegal growing operations within the state.
A marijuana grower standing next to his crop.
IMAGE SOURCE: GETTY IMAGES.
Additionally, Gov. John Hickenlooper has plans to pass a separate bill limiting the number of medical cannabis plants that can be grown in a resident's home to 12. This would require medical users who are authorized to grow more than 12 plants to do so in a commercial or agricultural setting, or to buy from a medical marijuana dispensary. In other words, the tax-free ride is ending at 12 plants for medical patients.
Though a tougher regulatory environment might not seem like a good thing for the industry, it's actually great news for legal businesses and marijuana stocks. By more precisely defining the legality of who can grow recreational pot, Colorado is laying the groundwork for its legal businesses to thrive. Since Colorado is such a marijuana pioneer, other states may soon follow its lead.
U.S. pot stocks still need a federal "push"
While Colorado's bill is a great step in the right direction for marijuana stocks in the U.S., they still need some help from the federal government to be a viable investment opportunity, and it's unclear when that might happen.
Last summer, the U.S. Drug Enforcement Agency (DEA) had the opportunity to consider rescheduling or descheduling pot and it chose to do neither despite two petitions. The DEA claimed that there wasn't enough benefit-versus-risk data available to change its scheduling, nor the proper oversight to allow a drug like cannabis to be prescribed by physicians. Given how long it takes for petitions of this nature to make their way to the DEA, we could be looking at years before the U.S. government considers rescheduling once again.
On the other hand, our neighbors to the north (Canada) could be on the precipice of legalizing recreational cannabis. If new legislation is passed and Canada does indeed allow adults to purchase pot legally, then some of its largest grow farms could become instant winners. A few names that come to mind are Canopy Growth Corp. (NASDAQOTH:TWMJF), Aphria (NASDAQOTH:APHQF), and Aurora Cannabis (NASDAQOTH:ACBFF).
An indoor commercial marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Perhaps what's most interesting is that if the U.S. government ever did change its tune on marijuana, these three Canadian pot stocks would likely be the biggest beneficiaries of all, since they're all busy expanding their grow operations to meet heightened demand.
For example, Aurora Cannabis is currently in the process of constructing its Aurora Sky project, which is a technologically advanced 800,000-square-foot growing space that could easily be used meet recreational weed demand for Canada and/or the United States. Inclusive of a recent acquisition of a 40,000-square-foot facility, Aurora's grow capacity will soon jump from less than 100,000 square feet to nearly 900,000!
Aphria has also been expanding organically, while Canopy Growth's acquisition of Mettrum has allowed its growing capacity to expand quickly.
As U.S. states work out the kinks with their marijuana laws, we may begin to see these more developed and centralized Canadian marijuana stocks benefit. Of course, we really need to see a change of heart on Capitol Hill if real progress is to be made within the pot industry and with marijuana stocks as a whole.
Aphria, Inc. breached its 50 day moving average in a Bearish Manner : APHQF-US : April 21, 2017
April 21, 2017 by CapitalCube
Click here to see latest analysis
*Disclaimer : This is as of previous day’s closing price.
Technical Indicators
Below is a quick look at 5 technical indicators for Aphria, Inc.. More studies are available on the Technical Chart.
Indicator Signal
Closing Price above/below 50 Day Moving Average Bearish
Closing Price above/below 200 Day Moving Average Bullish
50 Day Moving Average above/below 200 Day Moving Average Bullish
RSI Reading Level (<30 or >70) Fair Value
MACD Compared to 9D EMA Signal Line Bearish
View these and more technical studies for Aphria, Inc.
2 New Ways To Invest In Marijuana Stocks: Cannabis ETFs
Benzinga
Javier Hasse
BenzingaApril 20, 2017
Back in December, Benzinga and Viridian Capital Advisors’ president Scott Greiper and vice president Harrison Phillips discussed the possibility of the firm launching a cannabis-focused ETF. At the time, they pointed out their interest in turning their Cannabis Stock Index into an exchange-traded fund but were waiting for the right moment: underlying liquidity of the component companies was not enough at the time.
“If the underlying companies don’t have sufficient liquidity, and you are either selling out of a position or adding a position, you are going to affect the value of the stock. So, the challenge in creating a cannabis index is that, up until the last three months, particularly the three months leading into the November elections and the state voting on cannabis legalization [...] we didn’t have the underlying liquidity that was sufficient to support a cannabis ETF,” Greiper explicated.
Two New Marijuana ETFs
Despite the fact that liquidity in the cannabis industry is rising consistently, levels still seem far from high. Nonetheless, a couple investment firms beg to differ.
About two months ago, Managers Group LLC and Horizons ETFs Management announced they had started the process to launch their cannabis ETFs. In early April, one of them debuted in the Toronto Stock Exchange, or TSX.
The Emerging AgroSphere ETF
Back in February, ETF Managers Group LLC (ETFMG) announced its intention to launch a cannabis-focused ETF: the Emerging AgroSphere ETF. The fund would not track weed per se, but instead, legal medical marijuana companies and other businesses in the medical cannabis supply chain.
“The Fund will not invest in any companies that are focused on serving the non-medical marijuana market in the United States, Canada or any other country unless and until such time as the production and sale of non-medical marijuana becomes legal in the United States, Canada or such other country, respectively,” the SEC filing read.
“This is the first public filing that we've seen of a cannabis ETF,” Viridian’s Harrison Phillips commented. “Having said this, it should be noted that this filing is far from being completed; there are still many spots where data need to be filled in. So, we don't expect this to be filed and approved any time soon.”
Some of the companies included in Solactive AG’s North American Medical Marijuana Index, the ETF’s underlying index, are:
APHRIA INC COM NPV (OTC: APHQF)
AURORA CANNABIS IN COM NPV (OTC: ACBFF)
CANNAROYALTY CORP COM NPV (OTC: CNNRF)
CANNIMED THERAPEUT COM NPV (OTC: CMMDF)
CANOPY GROWTH CORP COM NPV (OTC: TWMJF)
CRONOS GROUP INC COM NPV (OTC: PRMCF)
EMBLEM CORP COM NPV (OTC: EMMBF)
EMERALD HEALTH THE COM NPV (OTC: TBQBF)
GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH)
ICC INTL CANNABIS COM NPV (OTC: ICCLF)
Insys Therapeutics Inc (NASDAQ: INSY)
MAPLE LEAF GREEN W COM NPV (OTC: MGWFF)
ORGANIGRAM HLDGS I COM NPV (OTC: OGRMF)
Scotts Miracle-Gro Co (NYSE: SMG)
SUPREME PHARMACEUT COM NPV (OTC: SPRWF)
Zynerba Pharmaceuticals Inc (NASDAQ: ZYNE)
The Horizons Medical Marijuana Life Sciences ETF
Although the first comer, ETFMG was not the only one that filed for a marijuana ETF. A few days later, Horizons ETFs Management filed a preliminary prospectus to list a medical marijuana ETF on the Toronto Stock Exchange (TSX). And, in the end, it was the first to actually go live, trading as the HORIZONS MEDICAL MARIJUANA LIFE SCI ETF (TSE: HMMJ).
“While listing in Canada, the ETF will be concentrated in all of the North American market, like the Emerging AgroSphere ETF. In addition, both these ETFs will focus on the medical side of cannabis,” Phillips clarified.
Also notable is the fact that the fund has some minimum asset and liquidity thresholds set for companies to be eligible for inclusion.
Just like the Emerging AgroSphere ETF, the Horizons Medical Marijuana Life Sciences ETF will track Solactive AG’s North American Medical Marijuana Index.
Companies in the Horizons ETF as of April 12 were:
APHRIA INC.
AURORA CANNABIS INC.
CANNIMED THERAPEUTICS INC.
CANOPY GROWTH CORPORATION
CRONOS GROUP INC.
EMBLEM CORP
EMERALD HEALTH THERAPEUTICS INC.
GW PHARMACEUTICALS PLC
HYDROPOTHECARY COR COM NPV (OTC: HYYDF)
ICC INTERNATIONAL CANNABIS CORPORATION
INSYS THERAPEUTICS INC.
ORGANIGRAM HOLDINGS INC
SCOTTS MIRACLE-GRO COMPANY
SUPREME PHARMACEUTICALS INC
ZYNERBA PHARMACEUTICALS INC.
What To Do
Even though a cannabis ETF has already debuted, Viridian Capital Advisors still believes it’s too early for a publicly-traded marijuana fund, particularly if it has holdings concentrated in the U.S. “We still are of the school of thought that the liquidity in the U.S. publicly traded cannabis market isn't there yet,” Phillips concluded.
ETFs with exposure to Canopy Growth Corp. : April 20, 2017
April 20, 2017 by CapitalCube
Click here to see latest analysis
ETFs with exposure to Canopy Growth Corp.
Here are 5 ETFs with the largest exposure to TWMJF-US. Comparing the performance and risk of Canopy Growth Corp. with the ETFs that have exposure to it gives us some ETF choices that could give us similar returns with lower volatility.
Ticker Fund Name TWMJF-US Exposure (%) 1 Year Price Performance (%) 1 Year Volatility (%) Net Expense Ratio (%) Number of Holdings
XFC-CN iShares Edge MSCI Multifactor Canada Index ETF 1.05 15.84 9.08 0.45 81
CNDA-US IQ Canada Small Cap ETF 0.78 18.96 23.77 0.69 101
COW-CN iShares Global Agriculture Index Fund 0.43 22.26 10.96 0.72 36
XMD-CN iShares S&P/TSX Completion Index Fund 0.27 13.02 10.67 0.6 192
XIC-CN iShares S&P/TSX Capped Composite Index Fund 0.07 13.57 9.24 0.05 252
TWMJF-US Canopy Growth Corp. 100 274.38 2.45 0 1
Use our ETF screener to find ETFs that hold TWMJF-US along with other stocks
Cannabis Adoption Getting Higher; Analyst Sees It Killing Alcohol Stocks' Buzz
Benzinga
Wayne Duggan
BenzingaApril 20, 2017
America’s self-medication preferences may be making a major long-term shift. In celebration of 4/20, Cowen analyst Vivien Azer took a look at what could be a coming cyclical upswing for marijuana and a cyclical downswing for alcohol. According to Azer, what’s good for the marijuana business is bad for the alcohol business.
Analyst Commentary
“Of the 5 long-term alcohol cycles that we have seen in terms of per capita alcohol consumption since alcohol prohibition was lifted (and cannabis prohibition was implemented), the latter 3, since 1980, show a notable inverse correlation with cannabis trial and use,” Azer explained.
Recent data suggests the United States may be entering a sixth cycle in which marijuana becomes the preferred option for many Americans.
Azer said cycles in vice markets are often lead by younger Americans. In the past seven years, alcohol use among Americans aged 18–25 is down 2.5 percent, while marijuana use in the same age group is up 4.6 percent.
For traders who want to trade the shift from booze to weed, Cowen’s preferred marijuana plays are Kush Bottles Inc (OTC: KSHB), CANOPY GROWTH CORP COM NPV (OTC: TWMJF) and Turning Point Brands Inc (NYSE: TPB).
In addition, Cowen remains bullish on best-in-class beer stock Constellation Brands, Inc. (NYSE: STZ) but has downgraded rival Molson Coors Brewing Co (NYSE: TAP) to Market Perform.
This New Survey Highlights America's Changing View on Marijuana and Marijuana Stocks
A brand-new Yahoo News-Marist poll finds a softening stance toward pot and a growing acceptance of investing in the "green rush."
Sean Williams (TMFUltraLong) Apr 20, 2017 at 9:12AM
The marijuana industry is growing like a weed and seemingly nothing has been able to slow it down in recent years – not even federal law. Remember, cannabis is still categorized as a Schedule 1 drug, and is therefore illicit at the federal level and deemed to have no medical benefits.
Despite this hurdle, the legal marijuana industry generated $6.9 billion in sales in North America last year, according to cannabis research firm ArcView, up 34% from 2015. This comes on the heels of residents in four states passing ballot measures to legalize recreational pot in November, as well as five states in total giving the nod to medical weed in 2016 (two of which were done entirely through the legislative process).
A marijuana joint sitting atop a cannabis leaf.
IMAGE SOURCE: GETTY IMAGES.
America's opinion of pot is rapidly evolving
This rapid ascent of legal weed sales can somewhat be placed on the desire of state governments to generate new channels of revenue. For example, Colorado brought in nearly $200 million in tax and licensing revenue from the more than $1.3 billion in legal marijuana sold in 2016. This money is funneled to the state's education system, law enforcement, and drug-abuse programs. Likewise, the passage of Prop. 64 in California this past November, which will make recreational pot legal, is expected to generate $1 billion in annual tax revenue for the state.
However, it can be easily argued that the rapidly changing opinion of the public has had a far bigger impact on the industry's recent success. Gallup, which has regularly conducted polls on the public's opinion of cannabis for nearly 50 years, found that support for legalizing the drug nationally was 60% in 2016, which represents an all-time high. That's up 35 percentage points since 1995, the year before California became the first state to legalize medical marijuana for compassionate use.
And it's not just that people want to see weed legalized. Their view of the drug is rapidly evolving.
A person holding cannabis leaves in their cupped hands.
IMAGE SOURCE: GETTY IMAGES.
A brand-new study conducted by Yahoo News and Marist entitled "Weed and the American Family" demonstrates just how far the pendulum has swung in recent years. Here are some of the most standout findings on America's evolving opinion of marijuana from the study:
52% of the more than 1,100 people surveyed have previously tried marijuana.
83% support the legalization of medical cannabis compared to just 14% who opposed the idea.
49% support legalizing recreational weed, compared to 47% who are opposed.
56% view using pot as a socially acceptable practice.
76% of the public views regular tobacco use as more dangerous than pot use when compared head-to-head, while 72% view alcohol as more dangerous than cannabis when compared side by side.
30% of respondents believe the most significant concern about using marijuana is that it's illegal (the most popular answer among the nine answers offered).
47% of respondents believe medical cannabis, if legal, should be allowed to be prescribed to children. Some 46% opposed the idea.
The mean age for people who tried marijuana was 17.9 years.
Only 28% of parents haven't talked to their children about marijuana.
81% of respondents believe it's "the right thing" to tell your children if you've tried marijuana.
As you can see by the responses above, it's not a perfect landslide victory for the pot industry, but we've witnessed a pretty abrupt about-face in thinking about marijuana in a few short decades. Parents' openness about weed with their children is pretty striking based on the survey results, of which the above data is really just a snippet of the encompassing questions asked of the public.
A cannabis bud sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
America's opinion of marijuana stocks is shifting, too
What's arguably even more notable about the Yahoo! News-Marist poll is that we're seeing a definitive softening in the view of Americans toward investing in pot businesses and marijuana stocks (in case the huge run-up in most marijuana stocks didn't already give that away). Here were a few of the more intriguing questions and their responses:
Do you approve or disapprove of your bank investing in marijuana farms of businesses?
Approve: 52%
Disapprove: 43%
Unsure: 5%
Do you approve or disapprove of your retirement fund having investments in marijuana farms of businesses?
Approve: 51%
Disapprove: 45%
Unsure: 4%
The first question is of particular interest because marijuana businesses are facing a number of inherent disadvantages due to their Schedule 1 categorization. Chief among them is the lack of basic banking service options. Since most financial institutions report to the Federal Deposit Insurance Corporation (FDIC), which is a federally created entity, helping out a pot business with a loan, line of credit, or even checking account could be construed as money laundering. The implication here is the American public would like to see these restrictions lifted.
It's also noteworthy that a small majority of respondents would be OK with their retirement fund investing in marijuana stocks. This answer comes at an interesting time, with the very first marijuana stock exchange-traded fund (ETF) debuting on the Toronto Stock Exchange earlier this month. The Horizons Medical Marijuana Life Sciences ETF owns 14 marijuana stocks, 11 of which are based in our neighbor to the north, Canada.
An indoor cannabis grow farm.
IMAGE SOURCE: GETTY IMAGES.
It's also becoming less of a stretch for investors to consider pot stocks as viable investments. For example, Canada appears to be on track to legalizing recreational weed, which would open the door for $5 billion or more in annual recreational sales. An additional $5 billion in sales for Canada's already well-developed medical businesses could lead to a number of highly profitable companies.
A good example is Canopy Growth Corp. (NASDAQOTH:TWMJF), which completed the acquisition of Mettrum Health earlier this year and boosted its growing capacity to 665,000 square feet and six licensed facilities. If Canada legalizes recreational weed, Canopy Growth should be able to continue meeting consistent medical demand, while at the same time expanding its operations to meet an expected surge from the approval of recreational pot.
It's not hard to like high-growth, profitable companies, and it's quite possible that Canopy Growth, after consecutive quarters of positive earnings per share, could be geared up to pile on the profits for investors.
As the public's opinion of marijuana continues to evolve, we could very well see more marijuana stocks like Canopy Growth readying to turn the corner.
Aurora Cannabis, Inc. breached its 50 day moving average in a Bullish Manner : ACBFF-US : April 20, 2017
April 20, 2017 by CapitalCube
Click here to see latest analysis
*Disclaimer : This is as of previous day’s closing price.
Technical Indicators
Below is a quick look at 5 technical indicators for Aurora Cannabis, Inc.. More studies are available on the Technical Chart.
Indicator Signal
Closing Price above/below 50 Day Moving Average Bullish
Closing Price above/below 200 Day Moving Average Bullish
50 Day Moving Average above/below 200 Day Moving Average Bullish
RSI Reading Level (<30 or >70) Fair Value
MACD Compared to 9D EMA Signal Line Bearish
View these and more technical studies for Aurora Cannabis, Inc.
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Share Price Performance Relative to Peers
From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
While ACBFF-US‘s change in share price of 401.21% for the last 12 months is in line with its peer median, its more recent 30-day share price performance of 18.26% is above the peer median. This suggests the
Aurora Commences Sales of Cannabis Oils
CNW Group CNW GroupApril 20, 2017
TSXV: ACB
VANCOUVER , April 20, 2017 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (ACB.V) (ACBFF) ( Frankfurt : 21P; WKN: A1C4WM) today announced that the Company has commenced sales of a new product line of ingestible cannabis oils called Aurora Drops.
The Company's newest offerings include three distinct product types all priced equally at a standard flat rate of $115 per bottle, or $80 per bottle for clients approved for Aurora's compassionate pricing program:
THC Drops (Sativa) – a high potency THC oil extracted from Cannabis Sativa flowers
THC Drops (Indica) – a high potency THC oil extracted from Cannabis Indica flowers
CBD Drops – a high potency oil extracted from Aurora's flagship CBD strain Temple (Cannatonic)
The Company's ingestible cannabis oils come in 30 ml glass bottles with a child resistant certified cap and dropper to allow for the easy and accurate dosing of small amounts of the high potency fluids, and are produced using CGMP compliant supercritical CO2 extraction technology, as well as using an MCT carrier oil sourced from coconut oil.
As with all of Aurora's cannabis products, the test results from the independent third-party lab for each batch of ingestible oil are publicly available. Test results can be accessed online at auroramj.com/strains, or through the Aurora Mobile app, a feature rich mobile experience for iOs and Android that displays inventory tracking and restocking events, and sends push notifications for new product releases.
"The launch of our first ingestible oil products represents a major milestone, which promises to add significantly to Aurora's top and bottom line results," said Neil Belot , Chief Global Business Development Officer. "We have produced a sizeable inventory of Aurora Drops for our domestic medical client base, and will be continuing to ramp up production in order to address the strong demand we anticipate for high-quality, high-margin derivative products, manufactured under the rigorous Aurora Standards regarding processes, testing, and transparency."
The Company recently signed a Memorandum of Understanding with Radient Technologies Inc. ("RTI") with regards to the joint development and commercialization in Canada of superior and standardized cannabinoid extracts produced using RTI's high-throughput, terpene-preserving, proprietary extraction technology.
"The strategic partnership with RTI has the potential to be a game changer in this high-margin, high-growth segment of the cannabis market, "said Terry Booth , CEO. "If the technology works as we anticipate, Aurora will be able to produce high volumes of terpene-rich cannabis derivatives at lower costs and much shorter harvest-to-market times than any company using current industry benchmark technologies. This would give us an even stronger competitive advantage in what may well become the dominant market segment. The launch of sales is the first step in establishing our brand in the derivatives market, and we are very pleased that we are able to expand our offering to a customer base looking for alternative methods to consume cannabis."
The companies' technical feasibility and commercial opportunities study currently underway is proceeding well, and is expected to be completed soon.
About Aurora
Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed
Could Canadian Legalization of Recreational Marijuana Help U.S. Marijuana Stocks?
Canada is on track to legalize recreational marijuana. Could U.S. marijuana stocks benefit at all?
Keith Speights (TMFFishBiz) Apr 20, 2017 at 6:42AM
The maple leaf could soon be joined by a marijuana leaf.
Prime Minister Justin Trudeau recently introduced legislation to legalize use of recreational marijuana in Canada. The bill is expected to pass, and if it does, recreational marijuana should be allowed in the country by mid-2018. While legalization should help Canadian marijuana providers, could it also provide a boost to U.S. marijuana stocks?
Group of people with Canadian flags
IMAGE SOURCE: GETTY IMAGES.
No direct benefits
There don't appear to be any direct benefits from Canadian legalization of marijuana for U.S. companies in the marijuana business. The bill unveiled by Prime Minister Trudeau doesn't allow importing of marijuana without a special permit. Also, any company selling recreational marijuana must be licensed similarly to how medical marijuana growers in country are currently licensed.
That means companies such as Canopy Growth Corporation (NASDAQOTH:TWMJF) should be in the driver's seat. Canopy Growth is already one of a relatively small group of companies licensed to sell medical marijuana in Canada. Its stock has soared in recent months as investors anticipate the company's expansion into the recreational marijuana market, pending legalization in Canada.
It's possible that a U.S. company could acquire a Canadian operation that obtains a license, though. The current licensing requirements for medical marijuana state that corporations that either have a "head office or a branch office in Canada" can become a licensed provider.
The largest U.S. marijuana company (that isn't a biotech) in terms of market cap is Medical Marijuana, Inc. (NASDAQOTH:MJNA). The company already operates in Brazil and has plans to expand into Spain, Mexico, the Dominican Republic, and the U.K. However, expanding into Canada hasn't been a stated goal for Medical Marijuana -- at least not yet.
Indirect aid
Although U.S. stocks won't benefit directly from Canadian legalization of recreational marijuana, it's possible that they could see indirect benefits over the long run. How? The most likely way is through strengthening support for marijuana legalization in the U.S.
A Pew Research Center survey conducted in August and September of 2016 found a huge shift in support for marijuana legalization among Americans. Ten years ago, only 32% of Americans favored legalization. Now, 57% support legalization of marijuana.
Those results were similar to findings from Gallup. A 2016 Gallup survey found that 60% of Americans thought marijuana should be legalized. In 2005, only 35% of American adults polled by Gallup supported marijuana legalization.
Public support has resulted in a growing number of states legalizing medical marijuana and some allowing recreational marijuana use. However, this has not yet led to changing federal marijuana laws. Canadian legalization of marijuana could further bolster American support for legalization, especially if the people of Canada experience more benefits than drawbacks in the years following the bill's adoption.
Sooner or later, politicians in Washington seem likely to yield to the will of their constituents. The more the public supports marijuana legalization in the U.S., the easier it will be for the U.S. Congress to make changes without fear of political repercussions.
In the meantime
Canadian marijuana stocks will probably outperform their peers in the U.S. in the near term. The stock performances of Canada-based Canopy Growth and U.S.-based Medical Marijuana are similar over the last 12 months. However, Canopy Growth's share price is up so far in 2017, while Medical Marijuana's stock price is down more than 30% year to date.
The difference comes down to expectations. Canadians expect legalization of recreational marijuana will be just around the corner. Americans don't know what to expect: Legalization is seeing increasing support in the states, but the U.S. attorney general is an avowed opponent.
Over the long run, Canadian legalization of marijuana could be a good thing for American marijuana stocks. For now, though, it's highly uncertain whether the U.S. government will turn a new leaf in its views on marijuana.
Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Marapharm Ventures Inc. 'Marapharm' Announces it's Been Added to the United States Marijuana Index
PR Newswire PR NewswireApril 19, 2017
KELOWNA, British Columbia, April 19, 2017 /PRNewswire/ --
Marapharm (MRPHF) has been added (source: forbes.com) to the United States Marijuana Index (marijuanaindex.com). The North American Marijuana Index, composed from the United States Marijuana Index and the Canadian Marijuana Index, tracks the leading cannabis stocks listed on North American stock exchanges. The North American Marijuana Index level in April 2016 was 50 and in April 2017 the index level is 150, an increase of approximately 200%. In order for a company to be in the Index the criteria includes having a weighted average minimum market daily trading volume of $600,000.
A stock market index is a measurement of the value of a section of the stock market. It is computed from the prices of selected stocks. It is a tool used by investors and financial managers to describe the market and to compare the return of specific investments.
"Marapharm is pleased to be part of this important index which is the voice of credibility for the rapid development of the marijuana sector. We are executing on our plans, by bringing the Nevada facility into production, capitalizing on the real estate acquisition in Washington, have property and permits in California and will continue to look for additional opportunities for cultivation and production licenses and facilities in the United States. In addition, our investment in Veritas Pharma continues to provide synergy and our investment has more than doubled in value within 3 months," Linda Sampson, Marapharm CEO.
this stock will hit 2.00 shortly. you have to test every bud.
this is common sense...testing is the truth.
MUST READ...Canada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
Health Care
STOCKS
APHRIA INC NPV Stock Quote
APHRIA INC NPV
NASDAQOTH:APHQF
$5.91 up $0.31 (5.49%)
TWEED MARIJUANA Stock Quote
TWEED MARIJUANA
NASDAQOTH:TWMJF
$7.64 down $0.02 (-0.25%)
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Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment.
MUST READ..Canada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
Health Care
STOCKS
APHRIA INC NPV Stock Quote
APHRIA INC NPV
NASDAQOTH:APHQF
$5.91 up $0.31 (5.49%)
TWEED MARIJUANA Stock Quote
TWEED MARIJUANA
NASDAQOTH:TWMJF
$7.64 down $0.02 (-0.25%)
READ MORE
U.S. Bancorp’s Unique Approach to Balancing Its Stakeholders
Refinancing a Mortgage: Essential Tips You Need to Know
Are Capital Gains Taxed at a Lower Rate?
The Best Dividend Stock in E-Commerce
Does My State Tax Social Security Benefits?
Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment.
MUSTCanada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
Health Care
STOCKS
APHRIA INC NPV Stock Quote
APHRIA INC NPV
NASDAQOTH:APHQF
$5.91 up $0.31 (5.49%)
TWEED MARIJUANA Stock Quote
TWEED MARIJUANA
NASDAQOTH:TWMJF
$7.64 down $0.02 (-0.25%)
READ MORE
U.S. Bancorp’s Unique Approach to Balancing Its Stakeholders
Refinancing a Mortgage: Essential Tips You Need to Know
Are Capital Gains Taxed at a Lower Rate?
The Best Dividend Stock in E-Commerce
Does My State Tax Social Security Benefits?
Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment. READ..
MUST READ.Canada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
Health Care
STOCKS
APHRIA INC NPV Stock Quote
APHRIA INC NPV
NASDAQOTH:APHQF
$5.91 up $0.31 (5.49%)
TWEED MARIJUANA Stock Quote
TWEED MARIJUANA
NASDAQOTH:TWMJF
$7.64 down $0.02 (-0.25%)
READ MORE
U.S. Bancorp’s Unique Approach to Balancing Its Stakeholders
Refinancing a Mortgage: Essential Tips You Need to Know
Are Capital Gains Taxed at a Lower Rate?
The Best Dividend Stock in E-Commerce
Does My State Tax Social Security Benefits?
Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment...
MUST READ...Canada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
Health Care
STOCKS
APHRIA INC NPV Stock Quote
APHRIA INC NPV
NASDAQOTH:APHQF
$5.91 up $0.31 (5.49%)
TWEED MARIJUANA Stock Quote
TWEED MARIJUANA
NASDAQOTH:TWMJF
$7.64 down $0.02 (-0.25%)
READ MORE
U.S. Bancorp’s Unique Approach to Balancing Its Stakeholders
Refinancing a Mortgage: Essential Tips You Need to Know
Are Capital Gains Taxed at a Lower Rate?
The Best Dividend Stock in E-Commerce
Does My State Tax Social Security Benefits?
Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment.
Canada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
Health Care
STOCKS
APHRIA INC NPV Stock Quote
APHRIA INC NPV
NASDAQOTH:APHQF
$5.91 up $0.31 (5.49%)
TWEED MARIJUANA Stock Quote
TWEED MARIJUANA
NASDAQOTH:TWMJF
$7.64 down $0.02 (-0.25%)
READ MORE
U.S. Bancorp’s Unique Approach to Balancing Its Stakeholders
Refinancing a Mortgage: Essential Tips You Need to Know
Are Capital Gains Taxed at a Lower Rate?
The Best Dividend Stock in E-Commerce
Does My State Tax Social Security Benefits?
Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment.
MUST READ>>>
MUST READ Canada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
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Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment.
MUST READ...Canada Aims to Become the First Developed Country to Legalize Marijuana
Is this too good to be Trudeau?
Sean Williams (TMFUltraLong) Apr 8, 2017 at 9:12AM
The U.S. marijuana industry has seen incredible growth for the past couple of years. Last year alone, residents in four states voted to legalize recreational marijuana, doubling the number of states that allow the sale of adult-use pot, while five new states legalized medical cannabis (two of which did so entirely through the legislative process).
According to cannabis research firm ArcView, North American sales of cannabis grew by 34% in 2016 to $6.9 billion, though this still pales in comparison to the estimated $46.4 billion in illicit marijuana sales conducted on the black market.
Cannabis buds in a jar sitting atop a pile of cash.
IMAGE SOURCE: GETTY IMAGES.
In legal states, the sales growth is too big to ignore. After generating $996.2 million in sales in 2015, along with approximately $135 million in tax and licensing revenue, Colorado's legal pot sales topped $1.3 billion in 2016, with tax and licensing revenue approaching $200 million. About two-thirds of Colorado's legal marijuana revenue came from the recreational side of the equation.
Washington takes the wind out of marijuana's sails
Yet for all of the momentum behind the U.S. marijuana industry, the federal government stands in the way of its success. On Capitol Hill, marijuana is still a Schedule 1 substance, meaning it's illegal and has no medically beneficial qualities. With this designation, pot-based companies face a number of challenges, such as the inability to take normal business tax deductions and the difficultly accessing basic banking services, like checking accounts. Being listed as a Schedule 1 drug also makes it exceptionally difficult for researchers to run much-needed clinical trials on cannabis that lawmakers have effectively demanded before they'd consider any type of rescheduling or de-scheduling of the drug.
Making matters even worse, White House press secretary Sean Spicer in February commented that the Trump administration would be changing course from the extremely lax policies of the Obama administration with regard to its hands-off agenda on state-level regulation. Though Trump has remained fully supportive of medical cannabis, and it doesn't appear as if the federal government will halt the ability of states to legalize medical marijuana, Spicer has intimated that tougher enforcement of federal laws with regard to recreational pot could be on the way. The appointment of ardent marijuana opponent Jeff Sessions as U.S. attorney general only adds fuel to the fire.
In other words, the U.S. marijuana market is sort of stuck in a proverbial limbo.
A person holding a cannabis joint in front of Canada's maple leaf.
IMAGE SOURCE: GETTY IMAGES.
This maple leaf could turn green in July 2018
However, according to senior Canadian government officials speaking on the condition of anonymity, Prime Minister Justin Trudeau and his progressive government are aiming to pass a countrywide legalization of recreational marijuana soon, such that by July 1, 2018, it would be legal for adults to smoke pot.
This news shouldn't come as a complete shock given that Trudeau has campaigned for the legalization of marijuana in the past. The question marks had always been whether Trudeau had the support of the Canadian government, and what the final bill would look like.
Per the various sources reporting on the matter, adults ages 21 and up would be allowed to buy recreational cannabis, users would be allowed to possess up to 30 grams (more than one ounce), and households could grow up to four plants at a time. Though some pundits have suggested a higher minimum age limit since brain development continues until age 25, the marijuana task force, which is offering advice to the Canadian government, believes a higher minimum age requirement would preserve black market sales.
The marijuana task force also suggested that marijuana strains should be taxed based on their potency. Thus, higher potency strains should come with a higher tax rate than weaker strains.
Lastly, the task force recommends that recreational marijuana not be sold in the same locations as tobacco and/or alcohol. Therefore, cannabis lounges could be set up in Canada, but they would have to be alcohol-free establishments.
A commercial indoor marijuana grow farm.
IMAGE SOURCE: GETTY IMAGES.
Opportunity up north
While there's still no guarantee that Canada will pass legislation to legalize recreational marijuana, this latest news suggests the highest confidence in doing so in months. Should Canada pass a bill legalizing recreational pot, it's not out of the question that we could see a "green rush" out of the U.S. and into Canada by some marijuana businesses.
Though the U.S. is believed to have a substantially larger market for recreational marijuana, two already established companies in Canada could stand to benefit: Canopy Growth Corp. (NASDAQOTH:TWMJF) and Aphria (NASDAQOTH:APHQF). Both Canopy Growth and Aphria are producers of marijuana in Canada for medical purposes. They both sell a good chunk of their production online. Assuming Canada regulates its cannabis industry in a similar fashion to Colorado, Washington, and Oregon -- by issuing licenses -- there's no reason why Canopy Growth and Aphria couldn't add recreational cannabis to complement their existing medical businesses.
What would make this all too perfect for Canopy Growth and Aphria is that both companies have been recently expanding their growing capacity. Canopy Growth recently acquired Mettrum Health, boosting its capacity to six licensed facilities and 665,000 square feet, while Aphria has been increasing its growing space organically through expansion phases. It recently implemented part three of its expansion, which will ultimately triple its production capacity. Not surprisingly, these also happen to be the only two marijuana stocks that are currently generating positive earnings before interest, taxes, depreciation, and amortization, implying a sustainable business model.
While this Fool remains highly skeptical of marijuana stocks because of their high valuations relative to their minimal current profit potential, these two remain the ones to watch for the time being.
Sean Williams has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AUTHOR
Sean Williams Sean Williams (TMFUltraLong) A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and investment planning. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest.
ARTICLE INFO
Apr 8, 2017 at 9:12AM
Health Care
STOCKS
APHRIA INC NPV Stock Quote
APHRIA INC NPV
NASDAQOTH:APHQF
$5.91 up $0.31 (5.49%)
TWEED MARIJUANA Stock Quote
TWEED MARIJUANA
NASDAQOTH:TWMJF
$7.64 down $0.02 (-0.25%)
READ MORE
U.S. Bancorp’s Unique Approach to Balancing Its Stakeholders
Refinancing a Mortgage: Essential Tips You Need to Know
Are Capital Gains Taxed at a Lower Rate?
The Best Dividend Stock in E-Commerce
Does My State Tax Social Security Benefits?
Why Clovis Oncology's Stock Edged Higher in March
Investors are clearly excited about Clovis' new ovarian cancer drug, but this enthusiasm may be overdone at this point.
George Budwell (TMFGBudwell) Apr 7, 2017 at 4:53PM
What happened
According to data from S&P Global Market Intelligence, shares of Clovis Oncology (NASDAQ:CLVS) gained 7.42% in March. The drugmaker's shares are now up almost 28% so far this year due to the Food and Drug Administration's (FDA) approval of its advanced BRCA-mutant ovarian-cancer drug Rubraca last December.
This approval marked the second for a PARP inhibitor for advanced ovarian cancer, with AstraZeneca's (NYSE:AZN) Lynparza hitting the market first in 2014. PARP inhibitors function by interfering with a cell's ability to repair its DNA, leading to genomic instability and cell death.
Doctor examining an x-ray.
IMAGE SOURCE: GETTY IMAGES.
So what
From a fundamental perspective, Rubraca should go a long way toward improving Clovis' outlook. With a high-end 2018 sales estimate of $462 million, for instance, Clovis could become a cash-flow-positive operation as early as next year.
Now what
The next shoe to drop is Rubraca's mid-year data release for its ongoing maintenance therapy study, dubbed "ARIEL 3."
Unfortunately for Clovis and its shareholders, though, Astra's Lynparza is currently under priority review with the FDA as a maintenance therapy in ovarian cancer, and Tesaro's (NASDAQ:TSRO) rival PARP inhibitor Zejula gained an early approval -- along with a far broader label than Rubraca -- just this week.
The point is that the advanced ovarian-cancer market is starting to get a tad crowded, and it's not altogether clear which drug will emerge as the market-share leader. Tesaro's drug, nonetheless, appears to have the best chance at grabbing the lion's share of the market based on its particularly strong clinical profile that prompted the FDA to approve it three months ahead of schedule.
Clovis' run-up following Rubraca's approval may not be entirely warranted. Rubraca, after all, will have to overcome some stiff competition to justify the company's present valuation.
Trump's potential $1.6 trillion investment
We aren't politicos here at The Motley Fool. But we know a great investing opportunity when we see one.
Our analysts spotted what could be a $1.6 trillion opportunity lurking in Donald Trump's infrastructure plans. And given this team's superb track record (more than tripling the market over the past decade*), you don't want to miss what they found.
They've picked 11 stocks poised to profit from Trump's first 100 days as president. History has shown that getting in early on a good idea can often pay big bucks – so don't miss out on this moment.
Will see .25 4/10.
1, that's cause your a little boy...Listen to Dire Straits.."Money for Nothing"
This is better than sex.
Yes and the Vine is still growing...
Abattis Bioceuticals Gets Added to the Marijuana Index by MJIC
Accesswire AccesswireApril 6, 2017
VANCOUVER, BC / ACCESSWIRE / April 6, 2017 / Abattis Bioceuticals Corp. (ATTBF) (CSE:ATT) (the "Company" or "Abattis"), is pleased to announce it has officially been added to The Marijuana Index, within the Biotechnology sector.
The North American Marijuana Index tracks the leading public cannabis companies operating in the United States and Canada and gives investors up to date, centralized news on the securities deemed to be well positioned within the multi-billion dollar cannabis industry. Selected companies must meet stringent trading guidelines including having a minimum market capitalization of $30 million and daily trading volumes of above $400K.
"We are delighted to have Abattis added to the The Marijuana Index and look forward to sharing our story with investors closely tracking this exciting sector," stated Abattis CFO, Rene David. "As we approach sector legalization, we'll start to see markets broaden their reach from the closely covered cultivation and growing players to those advancing the technology and biosciences side of the cannabis industry," added Mr. David.
Abattis' subsidiary Northern Vine Labs is set to open its doors this month and will legally be able to test dried plant products, extracts, derivatives and edibles for licensed producers and patients under the ACMPR regulatory framework. Management will continue to provide timely updates on these developments in the coming weeks.
About Abattis Bioceuticals Corp.
Abattis is a specialty agricultural technology and biotechnology company which aggregates, integrates, and invests in agricultural technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biologics, nutraceutical, bioceutical, and cosmetic markets. The Company is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. The Company follows strict standard operating protocols, and adheres to the applicable laws of Canada and foreign jurisdictions. For more information, visit the Company's website at: www.abattis.com.
About Northern Vine Canada Inc.
Northern Vine Labs™ is licensed by Health Canada (Dealers License) for the possession of Cannabis and related active ingredients, as well as the production of extracts for the purpose of analysis. Northern Vine Labs™ product certification and quality assurances programs incorporate global best practices and procedures for application in the legal Canadian Cannabis market.
888... why would sell...you jumped in to late...
Think about it...Testing is a given... Random by the HC...
I starting thinking, Bio will be fastest developing solution to the
need. This will be a $100.00 stock. To many complications in organic...
but a wonderful alternative....
Great Day.