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John Legend: “Reddit traders had a new target this week: cannabis stocks.
Before falling back on Thursday, shares of Tilray rallied over 50% on Wednesday, while Aurora Cannabis jumped around 20%. Both stocks then tumbled, but remain higher since the start of the week.
The WallStreetBets Reddit thread has shone a light on a sector that analysts have been watching for some time, describing it a “big long-term opportunity.”
In a recent note, analysts from Piper Sandler said cannabis could become a $115 billion market by 2030, if recreational use is legalized at a federal level. Even if legalization is not U.S.-wide, the industry potential is still “attractive,” reaching $50 billion by 2030, the investment bank added. Recreational cannabis use has now been legalized in 15 U.S. states.
Of analysts’ top weed stocks, one in particular was popular with three of investment firms, while Goldman Sachs noted a company that has been “underestimated” by investors.”
18’s look good to me. 24 next week.
6:04a ET 2/12/2021 - MarketWatch
UPDATE: Cannabis stocks nosedive as rally driven by hopes for U.S. legal reforms comes to a screeching halt
Mentioned: APHA THCX TLRY
Ciara LinnaneTomi Kilgore
Cannabis ETF heads for biggest-ever one-day selloff
Cannabis stocks took a nosedive on Thursday with many of the sector's best performers a day earlier surrendering their gains as the relentless buying in recent weeks amid growing hopes for reforms of strict U.S. laws came to a screeching halt.
The Cannabis ETF (THCX) had tumbled 18.1% by midafternoon, putting it on track for its biggest one-day decline since it started trading in July 2019. The previous record selloff was a loss of 14% on March 12, 2020.
Tilray Inc. (TLRY) was down 40%. The stock had gained 50.9% the day before, the biggest one-day gain since it rose 56.8% on March 26, 2020, to close Wednesday at a near two-year high of $63.91. The stock had skyrocketed 148.5% amid a three-day winning streak, before Thursday's pullback. Aphria Inc. (APHA.T), with which it is merging, (https://www.marketwatch.com/story/tilray-stock-rockets-after-reverse-merger-deal-with-aphria-to-create-largest-global-cannabis-company-11608128018)was down 28%.
"Things had got too far ahead of themselves," said Korey Bauer, chief investment officer and portfolio manager of the Cannabis Growth Fund (https://www.cannabisgrowthfunds.com/) from Foothill Capital Management.
While some of the recent buying appeared to be driven by an investor group on Reddit (https://www.marketwatch.com/story/tilray-shares-soar-29-as-reddit-message-board-sets-sights-on-cannabis-sector-11612977363)that had sent the stock of videogame retailer GameStop Inc. to record heights in recent weeks, (https://www.marketwatch.com/story/gamestop-stock-has-another-volatile-trading-day-with-more-price-spikes-and-trading-halts-11611686411?mod=bnbh_mwarticle) "we've also had record flows into exchange-traded funds and mutual funds in the last few weeks," said Bauer.
"There's been a massive move, and most people are buying Canadian cannabis stocks, which are not going to be the direct beneficiaries of any reforms of laws in the U.S. It's been pretty rough with these moves," he said.
The rally was ignited by the election of President Joe Biden and Vice President Kamala Harris, both of whom are viewed as in favor of reforming the U.S.'s strict federal cannabis laws, (https://www.marketwatch.com/story/cannabis-stocks-slide-as-investors-lock-in-gains-driven-by-hopes-that-biden-will-usher-in-reforms-11611602671?mod=cannabis-watch)which, despite the progress made by proponents of medical marijuana, continue to classify it as a Schedule I drug, alongside the likes of heroin.
That has hampered the development of the legal market, which is confined to those states that have legalized cannabis for medical or recreational use, and kept companies largely out of the federally insured banking system.
With more states voting to legalize in November ballots, and New York expected to come on board this year (https://www.marketwatch.com/story/new-york-is-finally-expected-to-legalize-cannabis-in-2021-as-gov-cuomo-goes-all-in-11611348667?mod=cannabis-watch)and create a market rivaling that of California, investors are looking at the sector with renewed interest.
"There is reason for optimism, and clearly these micro and macro factors, combined with reasonable valuations, have grabbed the attention of many investors," said Jason Wilson, banking and cannabis expert at ETFMG, the issuer of the MJ ETF (MJ). "But while the cannabis industry is clearly growing globally, and many cannabis companies are on a path to profitability, the recent rally in cannabis stock prices appears to be becoming overly exuberant."
Even amid Thursday's 40% decline, Tilray, for example, remains up 129% in the last 12 months, in spite of its continued loss making and struggle to grow revenue (https://www.marketwatch.com/story/cannabis-stocks-rally-anew-as-canopy-and-aurora-post-results-with-tilray-still-to-come-2020-11-09?mod=cannabis-watch).
Tilray is the most shorted stock in the cannabis sector, with short interest representing 23.1% of the public float through Wednesday, according to S3 Partners LLC. But despite this big short position, the recent rally wasn't a result of a short squeeze.
Data:The most shorted stocks in the U.S. as of the end of January (https://www.marketwatch.com/tools/screener/short-interest?)
Ihor Dusaniwsky, managing director of predictive analytics at S3, said bearish bets on Tilray have actually increased this year. The value of shares shorted was $1.33 billion, up more than $1 billion since the company announced its merger with Aphria in December.
Despite the head start that Canadian companies enjoy in cannabis -- Canada fully legalized the plant for adult recreational use in October of 2018 -- companies have struggled to achieve profitability as the rollout lagged expectations and red tape hampered the opening of retail stores. That allowed the black market to thrive and compete with the legal sector, where prices are higher.
"There's major oversupply in Canada and definitely some risk in Canadian names," said Bauer. "We still think some of the U.S. multistate operators are attractive, but because they're not listed on major exchanges, there's a disconnect between U.S. and Canadian valuations."
Because of the federal ban, U.S. cannabis companies trade over-the-counter or on Canadian exchanges, although there is growing optimism that will change soon.
Senate Majority Leader Chuck Schumer and two of his Democratic colleagues have pledged to bring cannabis legislation before the current Congress. That has raised hopes for at least safe-harbor banking language, which would grant companies access to banks and crack open the capital markets.
Read now: Cannabis stocks rally after Chuck Schumer leads drive for reforms that may end federal prohibition (https://www.marketwatch.com/story/cannabis-stocks-rally-after-chuck-schumer-leads-drive-for-reforms-that-will-end-federal-prohibition-11612292635?mod=cannabis-watch)
"Anything that would allow U.S. companies to uplist would be extremely beneficial," said Bauer.
In the meantime, investors should fasten their seat belts.
"Given the very strong price gains over the last few days, I would expect to see volatility in cannabis stock prices as we start to see downward pressure relating to profit taking and potential short selling," said Wilson.
Smoke Wallin, chief executive of Vertical Wellness, a maker of CBD-based wellness products, agreed but said individual investors getting into the space right now are making the right move in anticipation of a flood of institutional money once rules are relaxed.
"That's not to say that any individual trading of stocks up and down makes sense at today's valuations," he said. "But any holders who believe the fundamental shift to a broad-based national legal cannabis market are going be highly rewarded."
With a large crop of private companies prepping to enter the market in the next 12 to 18 months, there will be more targets for acquisitions, he said.
"So there's going be a lot of M&A over the next 12 months, there's going be a lot of capital flowing in, and I think the individual tickers, they're going to go up and down, with volatility," said Wallin.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
Tilray shares soar 39% as Reddit message board sets sights on cannabis sector
Last Updated: Feb. 10, 2021 at 2:22 p.m. ET
First Published: Feb. 10, 2021 at 12:16 p.m. ET
By Ciara Linnane
19
WallStreetBets subgroup were encouraging each other to make Tilray the next GameStop on Wednesday
https://www.marketwatch.com/story/tilray-shares-soar-29-as-reddit-message-board-sets-sights-on-cannabis-sector-11612977363
So isn’t that a 34% premium?
I think TLRY has shorts and the reddits may now be targeting it. No ones shorting APHA. On 4/20 it won’t matter.
TLRY UP 47% us 12?
Why does TLRY trade so much higher if they are merging?
Phantom...
Tilray® Announces Agreement with Grow Pharma to Import and Distribute Medical Cannabis Products in the United Kingdom
Tue, February 9, 2021, 6:00 AM·4 min read
TLRY
+16.99%
Grow Pharma will distribute Tilray’s GMP-certified medical cannabis products across the UK
New UK agreement gives doctors and patients access to a sustainable supply of Tilray’s pharmaceutical-grade medical cannabis products
Tilray Inc. (NASDAQ: TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, today announced it has established an agreement with Grow Pharma to import and distribute Tilray’s medical cannabis products into the United Kingdom (UK). This agreement allows Tilray to provide
apha/TLRY going after CGC’s PPS. (Which is down in pre market by the way) IMO
This should drive APHA/TLRY tomorrow?
UPDATE: U.S., not Canada, should be driver of value in Canopy Growth shares, analyst says
Mentioned: CGC THCX
MKM analyst Bill Kirk says Canopy has a crucial advantage over Canadian cannabis company rivals
The recent broad rally in the shares of Canadian cannabis companies on excitement about the possibility of a lifting of the U.S. federal ban looks 'misplaced,' given only Canopy Growth Corp. will be able to immediately operate in the U.S. if the law is changed.
That's the view of MKM analyst Bill Kirk, who wrote Monday that Canopy's (WEED.T) agreement with U.S. multi-stage operator Acreage Holdings Inc. -- Canopy has an option to merge with Acreage that will be triggered if the U.S. law changes -- gives it an instant foothold in what is expected to be the biggest cannabis market in the world.
"Canadian operators would have to bid/build assets in the U.S.," Kirk wrote. "[N]o other Canadian name has an immediate U.S. opportunity when permissibility arrives."
Canopy is the exception and he believes the U.S. market could be pried open as early as this year, "but it is clear that U.S. opportunity (and not Canadian) deserves to drive the value of Canopy shares," he wrote.
Hopes for an end to the U.S. federal ban on cannabis have grown since the election of President Joe Biden and Vice President Kamala Harris, both of whom are viewed as being pro reform. The U.S.'s strict stance on the plant, which classifies it as a Schedule I drug along with heroin, has hampered the development of the sector, which is confined to those states that have legalized for medical or recreational use and kept companies out of the federally insured banking system.
Hopes were boosted last week after three Democratic senators led by Majority Leader Chuck Schumer said they would make reform legislation a key priority in the current Congress, (https://www.marketwatch.com/story/cannabis-stocks-rally-after-chuck-schumer-leads-drive-for-reforms-that-will-end-federal-prohibition-11612292635) bolstering hopes for an end to federal prohibition.
Experts are optimistic that at the very least, the current administration will introduce safe-harbor language for banking, enable companies to uplist to established U.S. exchanges and crack open the capital markets to institutional funding, all factors that current legislation has prevented.
See:Cannabis stocks rally anew as $7 billion GW Pharma deal spurs interest in weed and its medical benefits (https://www.marketwatch.com/story/cannabis-stocks-rally-anew-as-7-billion-gw-pharma-deal-spurs-interest-in-weed-and-its-medical-benefits-11612376529?mod=cannabis-watch)
Kirk, who rates Canopy as neutral, also wrote that the company's recent closure of facilities have brought it closer to growing quantities that better match demand. In December, the company announced it would shut operations at four indoor sites and cut 220 jobs, (https://www.marketwatch.com/story/canopy-to-close-four-indoor-canadian-cannabis-grow-sites-plus-outdoor-grow-in-saskatchewan-cut-220-jobs-2020-12-09) to better align its business with the Canadian market.
" While disclosures around kilograms produced have changed, Canopy and the industry are becoming more rational," he wrote. "That said, industry inventory balances, which are already 2 years of demand, continue to grow. We believe pricing pressure will continue and margin progress will be dependent on product consistency and brand building. Canopy is expected to post a third-quarter loss per share of 32 cents early Tuesday on revenue of C$149.8 million ($117.5 million), according to analysts polled by FactSet. Kirk said he is slightly below on topline estimates at C$144.9 million.
" We expect Canada to remain a difficult, largely commoditized market," he wrote.
See also:New York is finally expected to legalize cannabis in 2021 as Gov. Cuomo goes all in (https://www.marketwatch.com/story/new-york-is-finally-expected-to-legalize-cannabis-in-2021-as-gov-cuomo-goes-all-in-11611348667)
Canopy shares were up 3% Monday, and have gained 125% in the last 12 months, while the Cannabis ETF (THCX) has gained 91% the past year and the S&P 500 has gained 17%.
-; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 08, 2021 15:00 ET (20:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Pot stocks perk up premarket; Aphria beefs up leadership position in Germany
Feb. 8, 2021 9:19 AMAphria Inc. (APHA)ACB, HEXO, TLRYBy: Mamta Mayani, SA News Editor
Aphria (NASDAQ:APHA) announces that Chief Strategy Officer, Denise Faltischek, will also assume the role of Managing Director of Aphria Germany, effective January 23, 2021.
She will report to Irwin D. Simon, Aphria's Chairman and CEO. Ms. Faltischek joined Aphria in September 2019 with extensive consumer-packaged goods experience and expertise leading over 50 acquisitions.
Pot stocks are higher this morning: Aurora Cannabis (NYSE:ACB) +3.4%, CIBC raised its price target on Aurora Cannabis to C$17 from C$15; Hexo (NYSE:HEXO) +3.3%; Tilray (NASDAQ:TLRY) +3.3%; Canopy Growth (NYSE:CGC) +0.6%; Cronos Group (NASDAQ:CRON) +1.6%; OrganiGram Holdings (NASDAQ:OGI) +8.1%.
Cannabis stocks have rallied over the past week as $7B GW Pharma deal spurs interest in weed and its medical benefits.
Cannabis companies have stronger fundamentals that will drive the sector higher over the next five years, says Ted Waller in his SA article, The New Dawn In Cannabis Has Arrived.
Interesting. This article comes out on CGC
Now They are down the amount APHA is up? Hmm...
https://www.google.com/amp/s/www.marketbeat.com/instant-alerts/nasdaq-cgc-a-buy-or-sell-right-now-2021-02/amp/
But what if it’s three weeks to $300 again?
APHA percentage gaIN finally Equalizing With TLRY
Re:notheface April/may
Oh boy R’s got it? Re:valueswinger .89 I think?
And Tlry nearly $25!
14.51
NEW: According to Sitfel/Headset data, Aphria (@aphriainc) is the top Canadian cannabis producer in Q4 2020 with 12.2% market share, followed by Canopy Growth (10.1%), Redecan (9%), Village Farms (7.2%) and Aurora Cannabis (7.1%) $APHA $CGC $ACB $VFF
NEW: According to Sitfel/Headset data, Aphria (@aphriainc) is the top Canadian cannabis producer in Q4 2020 with 12.2% market share, followed by Canopy Growth (10.1%), Redecan (9%), Village Farms (7.2%) and Aurora Cannabis (7.1%) $APHA $CGC $ACB $VFF pic.twitter.com/jwhMxGWZll
— David George-Cosh (@itsdgc) February 2, 2021
Democratic Senate Leaders Announce Steps To Federally Legalize Marijuana In 2021
https://www.marijuanamoment.net/democratic-senate-leaders-announce-steps-to-federally-legalize-marijuana-in-2021/
Tilray® Receives the First and Only Market Authorization to Offer Medical Cannabis Products in Portugal
https://www.businesswire.com/news/home/20210201005184/en/Tilray%C2%AE-Receives-the-First-and-Only-Market-Authorization-to-Offer-Medical-Cannabis-Products-in-Portugal
POLITICSChuck Schumer Says Marijuana Reform Bills Are Being Merged As Congress Moves To Legalize
https://www.marijuanamoment.net/chuck-schumer-says-marijuana-reform-bills-are-being-merged-as-congress-moves-to-legalize/
The Aphria/Tilray Merger Will Make The Combined Entity A Major European Cannabis Market Participant
https://www.technical420.com/cannabis-article/the-aphria-tilray-merger-will-make-the-combined-entity-a-major-european-cannabis-market-participant/
Aphria’s subsidiary CC Pharma GmbH enters into Strategic Co-Promotion Agreement for the Sale of Medical Cannabis in Germany
https://www.technical420.com/cannabis-article/aphrias-subsidiary-cc-pharma-gmbh-enters-into-strategic-co-promotion-agreement-for-the-sale-of-medical-cannabis-in-germany/#
SweetWater Brewing Company ( “SweetWater” ), based in Atlanta, GA and founded in 1997, today announced the launch of its brand in Colorado, bringing the company into its furthest western market to date. SweetWater’s tasty West Coast style brews, including flagship 420 Extra Pale Ale and a newly launched year-rounder H.A.Z.Y IPA, will flow into the state via bars, restaurants and select retail establishments starting February 1, 2021.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210121005247/en/
420 Extra Pale Ale, H.A.Z.Y. IPA, G13 IPA and High Light Lo-Cal Easy IPA Available Throughout Colorado (Photo: Business Wire)420 Extra Pale Ale, H.A.Z.Y. IPA, G13 IPA and High Light Lo-Cal Easy IPA Available Throughout Colorado (Photo: Business Wire)
SweetWater’s expansion into the first U.S. state to legalize recreational marijuana comes shortly after its November 2020 acquisition by Aphria Inc. (TSX: APHA and Nasdaq: APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their very best life.
Biden Taps Marijuana Legalization Supporter To Lead Democratic National CommitteePublished 22 hours ago on January 18, 2021 By Kyle Jaeger
https://www.marijuanamoment.net/biden-taps-marijuana-legalization-supporter-to-lead-democratic-national-committee/
12:41p ET 1/11/2021 - Benzinga
*Shares of several cannabis companies are trading higher. NY Gov. Cuomo tweeted about legalizing adult-use recreational cannabis and is expected to touch on the topic today at the annual State Of The State.
Mentioned: ACB APHA CGC CRON GRWG TLRY
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Maine marijuana shops report brisk business despite pandemic
By PATRICK WHITTLE
2 hours ago
PORTLAND, Maine (AP) — Maine’s rollout of legal marijuana sales has been muted compared with other states because of the coronavirus pandemic, but shops are reporting brisk business nonetheless.
Maine wasn’t able to replicate the grand opening scenes that have followed the first sales in other states. But regulators reported more than $1 million in sales in October, more than $1.2 million in November and nearly $2 million in December. The number of retail businesses also continues to grow.
“Despite all the market challenges, everything from COVID to supply chains and beyond, Maine has done a really good job getting this market up and running,” said Thomas Winstanley, vice president of marketing for Theory Wellness, which has locations in South Portland and Waterville. “Cannabis is becoming part of the social fabric.”
https://apnews.com/article/us-news-coronavirus-pandemic-marijuana-portland-maine-a84c19799a42bd4217a4dc65902d0657
Aphria Inc. to Announce Second Quarter Fiscal 2021 Financial Results on January 14, 2021
https://finance.yahoo.com/amphtml/news/aphria-inc-announce-second-quarter-130000621.html
Chuck Schumer Says Marijuana Legalization Will Be Prioritized If Democrats Retake Senate
https://www.marijuanamoment.net/chuck-schumer-says-marijuana-legalization-will-be-prioritized-if-democrats-retake-senate/
Aphria spoke with several potential partners earlier in the year. In the end, a deal with Tilray made the most sense, Mr. Simon said, because there isn’t a significant overlap in assets. Tilray buys most of its cannabis wholesale rather than growing it, while Aphria has underused capacity at its massive greenhouses in Leamington. Tilray’s brands are strong in Quebec, while Aphria’s products sell well in Ontario.
“We’re not closing down assets and mothballing all this [capital expenditure] ... Tilray has about 35,000 kilos that can be moved into our facilities and there’s a lot of absorption that takes up in our current facilities,” Mr. Simon said.
each share we have, gives us 0.8381 of one of theirs
4pm est