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Replies to post #716 on Cannabis Investment Club
CITRON: THIS WEED STOCK COULD SURGE 80%
Marijuana stocks APHA, ACB, and CGC are riding sector tailwinds
by Andrea Kramer
cron|ACB|CGC|APHA
Published on Dec 7, 2018 at 1:23 PM
Pot stocks are popping after Altria's CRON stake
U.S. stocks are lower again today, amid lingering concerns about U.S.-China trade and after a tame jobs report. However, one group is bucking the trend: weed stocks. Aphria Inc (NYSE:APHA) is higher on a nod from Citron Research, while fellow pot stocks Aurora Cannabis Inc (NYSE:ACB) and Canopy Growth Corp (NYSE:CGC) are enjoying a halo lift from Cronos Group (CRON), which just scored a big investor in Altria (MO). Here's a closer look at what's moving the shares of APHA, ACB, and CGC.
CITRON SEES 80% UPSIDE FOR APHA
Notable short seller Citron Research today tweeted "Congrats to CRON," after Altria said it took a $1.8 billion stake in the company. Further, the tweet said fellow cannabis concern Aphria "is compelling on all metrics," and predicted a move up to $10 -- a premium of more than 80% to yesterday's close at $5.54.
APHA shares are among the best of the New York Stock Exchange (NYSE) today, up 7.2% to trade at $5.94. Earlier this week, the equity sank to record lows on a scathing report from Hindenburg Research and Quintessential Capital Management, alleging that Aphria's Latin American acquisitions are "virtually worthless." The stock just began trading on the NYSE on Nov. 2, and still remains more than 50% below its Nov. 7 peak of $13.45.
So far today, about 12,000 APHA calls have changed hands -- 10 times the average intraday pace, and roughly double the number of puts exchanged. That's already an all-time high for the freshman weed stock. Digging deeper, however, it appears some speculators are employing calls to bet on a short-term ceiling for the security, selling to open December 7.50 calls.
ACB STOCK RIDES SECTOR TAILWINDS
Aurora Cannabis stock is enjoying sector tailwinds, last seen 8.7% higher at $5.74. The security is on pace to end atop its 10-day moving average for the first time in nearly a month, after yesterday touching its lowest price since ACB first began trading on the Big Board on Oct. 23. The shares are still down 33.5% from their record peak of $8.62 -- tagged on the day of their U.S. debut.
Despite the stock's slide, options traders have remained devotedly bullish. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open nearly 13 ACB calls for every put during the past two weeks. That trend is being echoed today, with around 8,600 calls exchanged so far -- two times the norm -- compared to fewer than 700 puts.
CGC STOCK BOUNCES OFF SUPPORT
Canopy Growth shares -- which have their own high-profile investor in Constellation Brands (STZ) -- are also enjoying a halo lift from CRON, last seen 3.1% higher to trade at $31.27. The stock has spent the past few weeks finding its footing in the $30-$32 region, and while CGC has surrendered about 47% since its Oct. 16 high of $59.25, touched just before Canada legalized recreational marijuana use, the shares have still more than doubled in the past year.
Coming into today, the pot stock was trading near oversold territory, with a 14-day Relative Strength Index (RSI) of 35. Should the equity extend today's bounce, there's plenty of fuel for a short squeeze to drive CGC higher. Short interest jumped 31% in the past two reporting periods, and now sits at a record high, with more than 10% of the stock's float sold short.
OTC DISCLOSURE & NEWS SERVICE
Sproutly Canada, Inc. Discusses Innovation and Expansion in Exclusive Audio Interview with NetworkNewsWire
NEW YORK, Dec. 11, 2018 (GLOBE NEWSWIRE) -- via NetworkNewsAudio - NetworkNewsAudio (NNA), a NetworkNewsWire (NNW) Solution that delivers clients unparalleled visibility, recognition and brand awareness in the investment community, today announces the online availability of its interview with Sproutly Canada, Inc. (OTCQB: SRUTF) (CSE: SPR) (FRA: 38G), a client of NNW focused on becoming the leading supplier to the cannabis beverage and edibles market.
The interview can be heard at
Audio Interview
NNW’s Stuart Smith introduces Sproutly president and CEO Keith Dolo in an interview that highlights the company’s strategy to pave a leading-edge in the cannabis industry.
Dolo explains Sproutly’s mission to become the leading supplier to the cannabis beverage and edibles market. The company is a Canadian licensed producer that operates a purpose-built facility in Toronto with intent to cultivate high-quality, pharmaceutical-grade cannabis utilizing a revolutionary technology gained through its recent acquisition of Infusion Biosciences.
The move allows Sproutly to combine purpose-built capabilities and premium cannabis to create what Dolo describes as, “the world’s first and only truly water-soluble cannabis solution and bio-natural oils.”
According to Dolo, these will deliver revolutionary brands and top-products to both Canadian and international markets that are distinguished among traditional oils and beverages currently available.
Sproutly’s delivery process allows consumers to control the dosing via a water-soluble cannabis solution. The technology enables the capability of bio-availability and effects within five minutes (rather than the standard 45 to 120 minutes) and output/removal of effects between 60 and 90 minutes (instead of the standard effects lasting anywhere from four to eight hours, or up to one or two days for products currently on the market).
Dolo then discusses Sproutly’s plan to market its products internationally in 2019. The company’s recent venture with Global Canna, the largest tier 3 producer in Jamaica and all of Montego Bay, will enable creation of unique Jamaican-based products from their grow facilities to be distributed throughout the Caribbean.
The company is further pursuing additional distribution agreements, with a focus on Canada, Jamaica, Israel, Australia, and the entire European Union throughout countries that allow shipping, distribution and consumption of regulated cannabis products.
With a leadership team that combines decades of in-depth experience, including expertise growing well-known Fortune 200 and 500 companies and experience in the CBD and beverage space both in North America and internationally, Dolo claims that, “As much as we right now are a cannabis company, if you will tune in in about 30 to 60 days, you’ll see our company graduate to more of a CBD beverage organization.”
For investors looking at Sproutly, Dolo notes, “As the industry determines how to solve the problems with beverages and the quick onset, the quick offset and the formulation capacity, essentially, Sproutly and our Infusion Biosciences [subsidiary] have really already solved the issues that plague the cannabis beverage and edibles industry. We’ve created a number of unique products and formulations with extremely fast onset and fast offset profiles to allow individuals to control the doses.”
This, Dolo explains, combined with the company’s unique business model and its positioning as a licensed producer and technology company create distinct advantages for Sproutly.
About Sproutly Canada, Inc.
Sproutly’s core mission is to become the leading supplier to the cannabis beverage and edibles market. The company’s Toronto based, ACMPR licensed facility was built to cultivate pharmaceutical grade cannabis to supply a technological breakthrough in producing and formulating the first natural, truly water-soluble cannabis solution. The company’s water-soluble ingredients and our bio-natural oils will deliver revolutionary brands to international markets that are clamoring for well-defined commercial products. Sproutly’s business focus is to execute on partnerships with local and globally established consumer brands to leverage their existing customer bases, further expand brand loyalty, assist with marketing, and support distribution networks to deliver this scientific breakthrough with speed and efficiency worldwide. For more information on Sproutly, visit the company’s website at www.Sproutly.ca.
