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NEW 52 week high today $3.28 HOD ... so far
This company is going to be a monster. unlimited growth. should break to new highs today and tomorrow I hope.
I wish they would change their symbol - LABSF
It's going to be a really good sector day today .... Canopy Growth (NYSE:CGC) will replace Goldcorp (NYSE:GG) in the S&P/TSX 60 Index effective April 18, before open.
• Shares are up 3% premarket.
It's going to be a really good sector day today .... Canopy Growth (NYSE:CGC) will replace Goldcorp (NYSE:GG) in the S&P/TSX 60 Index effective April 18, before open.
• Shares are up 3% premarket.
“However, for companies such as MediPharm Labs, producing CBD-rich products from existing stockpiles of dried flower is something that could be accomplished in short order if the demand for product is there.”
https://mjbizdaily.com/cbd-imports-canada-fail-fill-supply-gap/?utm_medium=email&utm_source=mjbiz_daily&utm_campaign=MJD_20190409_NEWS_Daily_04092019
https://www.potnetwork.com/news/village-farms-or-emerald-health-which-better-value
Village Farms or Emerald Health: Which Is The Better Value
So the question remains: who benefits most from the Pure Sunfarms joint venture? Since it is a 50/50 joint venture, it is easy to assume both companies benefit equally. This is where we think shareholders of Emerald could end up getting the better of the deal.
If you allow some fantasy figures, it is easier to understand. It starts with the potential of Pure Sunfarm production. Assuming that annual production reached 150,000 kilos within the next 24 months and that operating profits of $2 per gram are realized, that translates into EBIT of $350 million. Emerald would be entitled to $175 million. Then allowing for non operating costs, each company could net out around $135-$140 million.
Our example is far from perfect, but I feel comfortable applying it equally to both partners in the JV. For VFF and its 47.6 million outstanding shares, it means about $2.85 in annual per share or just a little more than 5.3 times based on the recent price of $15. This indeed is cheap and helps explain in part why the stock has enjoyed a 53 percent move so far this year.
Emerald stats are even more impressive. Their share of Pure Sunfarms works out to $1.00 for each of the 139 million shares outstanding. That is a mere 3.4 times the recent $3.20 per share price. For the record, when comparing price to book value, VFF comes in at 7.1 times, whereas Emerald is only 3.36.
And Ellixinol
Wrong. CWEB at ATH
Good info on explosive CBD market metrics compared to THC
https://grizzle.com/the-untapped-potential-of-cannabidiol-cbd/?ck_subscriber_id=295616597
The THC Market will Ultimately be Less Than Half the Size of the CBD Market
The THC market may be the first target for licensed producers because demand is more easily defined, but longer term the CBD market is where the real money is.
According to Canadian government estimates, recreational and medical cannabis demand could reach $10 billion in the first year of legalization.
But according to cannabis industry analysts The Brightfield Group, the hemp CBD market could be generating $22 billion a year by 2022.
Grizzle thinks this number is conservative.
In only four years the medically driven CBD market will be at least twice the size of the market for recreational cannabis.
CBD Pricing Compares Favourably to THC
To truly understand the economics of cannabis vs. hemp we have to compare the pure active ingredients only and exclude the parts of the flower that have no health or psychoactive qualities.
Consumption of cannabis flower is decreasing rapidly in favour of oils and vapes and the industry will soon be pricing cannabis products based on weight of active ingredient only, excluding the rest of the cannabis plant.
For example, when you’re quoted $10 per gram for flower at a legal dispensary, the flower by weight only contains 20% pure THC, so you are actually paying $50 per gram of THC.
Growing Costs /gram Wholesale /Gram Retail /Gram
Pure CBD Concentrate $0.08 $6.50 $97
Pure THC Concentrate $16.00 $40.00 $100
Dried CBD Flower $0.002 $0.16 $1.40
Dried THC Flower $2.00 $4.00 $7.50
Retail
Medically licensed cannabis oil from the 6 largest licensed producers sells for $100 per gram of THC on average.
CBD oil sells for a very similar price at $97 per gram of pure CBD.
In the US, Charlotte’s Web, a Colorado-based hemp grower, cultivates their own proprietary strain of hemp from which they extract, process, and distribute CBD-based products.
Their isolates sell for as high as $220 per gram of CBD but most products range from $32-$111, slightly lower than prices in Canada.
Wholesale
If we look at wholesale prices there is more of a difference. 100% pure THC cannabis oil sells for $40,000 per kg while CBD hemp oil only sells for $6,500 per kg.
The difference in market prices are at least partially explained by the big differences in growing costs which we explore below.
Growing Costs for CBD from Hemp are Far Lower than for THC
Based on extensive data from farms in Alberta, the cost of growing hemp is $400-$500 per acre or less than a cent per gram of hemp.
The cost of producing 100% pure CBD oil, which is much more concentrated, only increases growing costs to $0.07 per gram.
In contrast, licensed producers grow THC-rich flower for $1.00-$3.00 per dry gram with the extra flower required to produce a gram of pure THC pushing the cost up to $16.00, 200x more costly than growing hemp.
Hemp Growing Costs per Acre
Source: Alberta Agriculture and Forestry
CBD Demand Per Person Could be 3x-10x Higher Than THC
In the future, the average CBD user could be spending double or triple what the average Canadian spends on THC-rich cannabis today.
A powerful driver of CBD profitability is the increased consumption per person compared to psychoactive THC.
CBD lacks the intoxicating effects of THC allowing a much higher dose to be taken with no serious side effects.
According to Yasmin Hurd, an experienced CBD researcher, doses of 200mg of CBD or more are needed to achieve real health benefits, compared to 5mg to achieve a satisfactory effect for THC.
Product labels and online medical marijuana resources such as Greenrelief.ca and CanniMed Therapeutics confirm the difference in dosing, with a starting dose for CBD at 10-25 milligrams while a starting dose of THC is only 1-5 milligrams.
The average medical marijuana user in Canada spends $3-$6 a day on cannabis flower or oil according to Health Canada data, which means the average CBD user could be spending 3x-7x more, or up to $10,000 a year at current prices.
CBD oil could be a very lucrative new segment for the legal market.
Potential Revenue Opportunity 7x Higher with CBD
THC Oil CBD Oil
mg Consumed per Day 56 200
Grams per Year 20 73
Retail Price per Gram $50 $97
Yearly Revenue Per Person $1,018 $7,060
Good info on explosive CBD market metrics compared to THC
https://grizzle.com/the-untapped-potential-of-cannabidiol-cbd/?ck_subscriber_id=295616597
The THC Market will Ultimately be Less Than Half the Size of the CBD Market
The THC market may be the first target for licensed producers because demand is more easily defined, but longer term the CBD market is where the real money is.
According to Canadian government estimates, recreational and medical cannabis demand could reach $10 billion in the first year of legalization.
But according to cannabis industry analysts The Brightfield Group, the hemp CBD market could be generating $22 billion a year by 2022.
Grizzle thinks this number is conservative.
In only four years the medically driven CBD market will be at least twice the size of the market for recreational cannabis.
CBD Pricing Compares Favourably to THC
To truly understand the economics of cannabis vs. hemp we have to compare the pure active ingredients only and exclude the parts of the flower that have no health or psychoactive qualities.
Consumption of cannabis flower is decreasing rapidly in favour of oils and vapes and the industry will soon be pricing cannabis products based on weight of active ingredient only, excluding the rest of the cannabis plant.
For example, when you’re quoted $10 per gram for flower at a legal dispensary, the flower by weight only contains 20% pure THC, so you are actually paying $50 per gram of THC.
Growing Costs /gram Wholesale /Gram Retail /Gram
Pure CBD Concentrate $0.08 $6.50 $97
Pure THC Concentrate $16.00 $40.00 $100
Dried CBD Flower $0.002 $0.16 $1.40
Dried THC Flower $2.00 $4.00 $7.50
Retail
Medically licensed cannabis oil from the 6 largest licensed producers sells for $100 per gram of THC on average.
CBD oil sells for a very similar price at $97 per gram of pure CBD.
In the US, Charlotte’s Web, a Colorado-based hemp grower, cultivates their own proprietary strain of hemp from which they extract, process, and distribute CBD-based products.
Their isolates sell for as high as $220 per gram of CBD but most products range from $32-$111, slightly lower than prices in Canada.
Wholesale
If we look at wholesale prices there is more of a difference. 100% pure THC cannabis oil sells for $40,000 per kg while CBD hemp oil only sells for $6,500 per kg.
The difference in market prices are at least partially explained by the big differences in growing costs which we explore below.
Growing Costs for CBD from Hemp are Far Lower than for THC
Based on extensive data from farms in Alberta, the cost of growing hemp is $400-$500 per acre or less than a cent per gram of hemp.
The cost of producing 100% pure CBD oil, which is much more concentrated, only increases growing costs to $0.07 per gram.
In contrast, licensed producers grow THC-rich flower for $1.00-$3.00 per dry gram with the extra flower required to produce a gram of pure THC pushing the cost up to $16.00, 200x more costly than growing hemp.
Hemp Growing Costs per Acre
Source: Alberta Agriculture and Forestry
CBD Demand Per Person Could be 3x-10x Higher Than THC
In the future, the average CBD user could be spending double or triple what the average Canadian spends on THC-rich cannabis today.
A powerful driver of CBD profitability is the increased consumption per person compared to psychoactive THC.
CBD lacks the intoxicating effects of THC allowing a much higher dose to be taken with no serious side effects.
According to Yasmin Hurd, an experienced CBD researcher, doses of 200mg of CBD or more are needed to achieve real health benefits, compared to 5mg to achieve a satisfactory effect for THC.
Product labels and online medical marijuana resources such as Greenrelief.ca and CanniMed Therapeutics confirm the difference in dosing, with a starting dose for CBD at 10-25 milligrams while a starting dose of THC is only 1-5 milligrams.
The average medical marijuana user in Canada spends $3-$6 a day on cannabis flower or oil according to Health Canada data, which means the average CBD user could be spending 3x-7x more, or up to $10,000 a year at current prices.
CBD oil could be a very lucrative new segment for the legal market.
Potential Revenue Opportunity 7x Higher with CBD
THC Oil CBD Oil
mg Consumed per Day 56 200
Grams per Year 20 73
Retail Price per Gram $50 $97
Yearly Revenue Per Person $1,018 $7,060
Khiron Expands Kuida® Retail Presence, Securing Partnerships With Fedco, Colombia's Top Specialist Beauty Retailer And Linio, Latin America's Largest Online E-Retailer
Retail distribution with Fedco, the first and most established specialized beauty retailer in Colombia, with 22 stores expanding reach to 50% of Colombia's territory
Online distribution secured with Colombian e-retailer Linio, controlled by Grupo SACI Falabella, the largest retailer in Latin America with approximately US$15 billion in revenue in 2017
Increases Kuida® brand retail exposure to 78 store locations and approximately 600,000 monthly e-commerce visitors
New agreements demonstrate continued first-mover advantage following successful initial Farmatodo product launch
https://investors.khiron.ca/press-releases/detail/71/khiron-expands-kuida-retail-presence-securing
Maybe we are saved
https://www.barchart.com/stocks/quotes/KHRNF/opinion
Overall Average:
8% Buy
Overall Average Signal calculated from all 13 indicators. Signal Strength is a long-term measurement of the historical strength of the Signal, while Signal Direction is a short-term (3-Day) measurement of the movement of the Signal.
Short Term Indicators Average: 40% Sell
Medium Term Indicators Average: 25% Buy
Your funeral ... The price action sucks for now ... can always get back in if I'm wrong but unless a PR turn it around its going lower.
US 20 day is broken. Next stop is the 50 day at $2.39. If that breaks we could see a plunge to the 100 day at $1.75 which would be UGLY. I sold 3/5 of my 50K share position already. Might sell some more.
Its going lower first - $2.25
We hit $24 before any pause IMO
*** BlackJack *** Winner Winner Chicken Dinner *** Let's roll ...
It might take a couple more days to sink in before the fireworks.
CW should be receiving their GREEN card around lunch time. Eod BLACKJACK would win the POT.
Well I called this one exactly right to the penny ...
"With a sigh of relief the good news is our bottom should be $18.50. But we should quickly stretch to mid twenties with unlimited upside."
$21 gun salute coming
And more fuel ... Stock Futures Climb, China Markets Rally; Dow Jones Reaches For Q1 Record
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ALAN R. ELLIOTT 8:17 AM ET
Stock futures swung sharply higher Friday as China trade talks and a promised broadening of China's financial markets boosted investor optimism.
My 20,000 shares at $13 are saying
Giddy Up!!!!!
I think they've started that is a two year supply
With a sigh of relief the good news is our bottom should be $18.50. But i
we should quickly stretch to mid twenties with unlimited upside.
Revenue was a little light but we have the best EBITA in the industry by far. Hopefully we get more color on opportunities developing and some 2019 guidance that ignites liftoff.
4:30 MJ standard Time
Just a call or Web too??