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  These 8 ?Pot? Stocks Trade On Both Major U.S. & Cdn. Exchanges ? Check Them Out  
  Lorimer Wilson on 2019-07-18 13:15:24.0
 
 

Of the 135 medical cannabis/recreational marijuana companies I have research only 8 are listed on both the TSX, Canada's major stock exchange, and America's NYSE, Nasdaq or Amex stock exchanges. As such, this offers them the potential for sizeable investments from major institutional investors who, more often than not, won't invest in companies listed on the more ambiguous OTC markets and the lesser known TSXVenture, CME or NEO exchanges.

Written by Lorimer Wilson, editor of munKNEE.com - Your KEY to Making Money!

Below is a description and analysis of each of those 8 intriguing companies compiled from raw data as found here and here.

1. HEXO Corp. (TSX:HEXO; NYSE:HEXO) www.hexo.com

Business Description:

A consumer packaged goods cannabis company that serves the recreational market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand. The company currently operates with 2.4 million sq. ft. of facilities in Ontario and Quebec and offers dried cannabis; Elixir, a cannabis oil sublingual mist product line; and Decarb, an activated fine-milled cannabis powder product.

Latest News: HEXO stock had risen by as much as 60% in 2019 but it fell by 19% in June as a result of disappointing 3Q results and failing to meet analyst revenue estimates as a result. Despite the recent sell-off, however, HEXO stock is still up 35% so far in 2019.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $1.65B
  • 52-week H/L Price: $11.29/$3.98
  • 52-week H/L Price Spread: 2.8x
  • Beta: 4.0 (i.e. level of systematic and unsystematic risk based on prior performance)
  • Current Price: $6.74 (down 40% from 52-wk high)
  • Revenue (LTM): $40.15M
  • 3-yr Revenue Growth: 186.6%
  • EPS: -0.19
  • P/B Ratio: 3.9
  • P/S Ratio: 45.3
  • # Analysts Following: 11
  • Analysts Recommendations: Strong Buy: 6; Moderate Buy: 3; Hold: 1; Moderate Sell: 1
  • Target Price: High @ $15.00; Median @ $10.68; Low @ $7.70
  • Institutional Holdings: 15.6%
  • Insider Holdings: 12.86M shares
  • Related Article

2. Aphria Inc. (TSX:APHA; NYSE:APHA) www.aphria.ca

Business Description:

Aphria Inc. and its subsidiaries produce and sell medical marijuana and its derivatives through retail sales and wholesale channels. Its products include capsules, oral solutions vaporizers.

Latest News: Aphria is still repairing the damage from a controversial acquisition of Latin American assets. Concerns were raised about the value paid out for the purchase against the actual worth of the assets in question. The accusations suggested that management had a vested interest in the assets and were lining their own pockets by over-paying for them. The controversy caused its stock price to decline over 75% in the 3 months following the event and led to the departure of APHA's founder and then-CEO, Vic Neufeld. Aphria's recent move away from dried cannabis sales and into vapes and concentrates should increase its margins and help move its stock higher though it will take some time to do so.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $2.3B
  • 52-week H/L Price: $22.00/$4.76
  • 52-week H/L Price Spread: 4.6x
  • Beta: 2.7
  • Current Price: $8.67 (down 60% from its 52-wk high)
  • Revenue (LTM): $36.9M
  • 3-yr Revenue Growth: 110.3%
  • EPS: -0.17
  • P/B Ratio: 1.34
  • P/S Ratio: 20.85
  • # Analysts Following: 6
  • Analysts Recommendations: Strong Buy: 4; Moderate Buy: 2
  • Target Price: High @ $24.75; Median @ $15.22; Low @ $12.00
  • Institutional Holdings: 15.0%
  • Insider Holdings: 69.0M shares
  • Related Article

3. Aurora Cannabis Inc. (TSX:ACB; NYSE:ACB) www.auroramj.com

Business Description:

Aurora is engaged in the production and distribution of medical cannabis and is one of the largest and fastest-growing cannabis companies in the world, with a funded production capacity of over 500,000 kilograms per year.

Latest News: After enjoying a strong run for months, Aurora stock declined, and since February, ACB stock has only gained 6% as many investors are of the opinion that, due to rising competition, it might be difficult for the company to maintain its dominant market share.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $10.14B
  • 52-week H/L Price: $16.24/$5.29
  • 52-week H/L Price Spread: 3.1x
  • Beta: 1.57
  • Current Price: $9.60 (down 41% from its 52-wk high)
  • Revenue (LTM): $166.9M
  • 3-yr Revenue Growth: 428%
  • EPS: -0.13
  • P/B Ratio: 2.27
  • P/S Ratio: 60.7
  • # Analysts Following: 6
  • Analysts Recommendations: Strong Buy: 3; Moderate Buy: 2; Hold: 1
  • Target Price: High @ $16.50; Median @ $13.92; Low @ $10.00
  • Institutional Holdings: 12.8%
  • Insider Holdings: 51.34M shares
  • Related Article

4. Canopy Growth Corp. (TSX:WEED; NYSE:CGC) www.canopygrowth.com

Business Description

The company grows, produces and sells medical marijuana supported by over half million square feet of indoor and greenhouse marijuana production selling its products under the brand names Tweed, Bedrocan, and Mettrum.

Latest News: This past Wednesday (July 3) announced that it had terminated its co-founder and co-CEO, Bruce Linton, as a result of the company's recently very disappointing year-end results. Canopy's other co-CEO, Mark Zekulin, assumed sole possession as leading executive until the transition period is completed and a replacement is found.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $18.51B
  • 52-week H/L Price: $76.68/$50.41
  • 52-week H/L Price Spread: 1.5x
  • Beta: 4.1
  • Current Price: $50.41 (down 34% from its 52-wk high)
  • Revenue (LTM): $253.43M
  • 3-yr Revenue Growth: 162%
  • EPS: -2.81
  • P/B Ratio: 2.66
  • P/S Ratio: 79.8
  • # Analysts Following: 12
  • Analysts Recommendations: Strong Buy: 7 ; Moderate Buy: 4 ; Hold: 3
  • Target Price: High @ $100.00; Median @ $73.29; Low @ $62.00
  • Institutional Holdings: 11.7%
  • Insider Holdings: 344.67M shares
  • Related Article

5. IMV Inc. (TSX:IMV: Nasdaq:IMV) www.imv-inc.com

Business Description:

IMV Inc is a clinical-stage biopharmaceutical company engaged in making immunotherapies more effective, more broadly applicable, and more widely available to people facing cancer and other serious diseases. Its proprietary drug development platform provides a patented delivery formulation that enables controlled and prolonged exposure of antigens to the immune system.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $198.3M
  • 52-week H/L Price: $8.49/$3.58
  • 52-week H/L Price Spread: 2.4x
  • Beta: 1.41
  • Current Price: $3.80 (down 55% from its 52-wk high)
  • Revenue (LTM): $152.00K
  • 3-yr Revenue Growth: N/A%
  • EPS: -0.65
  • P/B Ratio: 43.56
  • P/S Ratio: 5,333
  • # Analysts Following: 6
  • Analysts Recommendations: Strong Buy: 3; Moderate Buy: 2; Hold: 1
  • Target Price: High @ $15.29; Median @ $11.81; Low @ $7.95
  • Institutional Holdings: 26.7%
  • Insider Holdings: 24.87M shares
  • Related Article

6. Village Farms International Inc. (TSX:VFF; Nasdaq:VFF) villagefarms.com

Business Description:

Village Farms International Inc, along with its subsidiaries owns and operates agricultural greenhouse facilities. and, In the past couple of years, has made moves into the cannabis space by forming joint ventures with Emerald Health Therapeutics and Nature Crisp LLC to form ?Pure Sunfarms Corporation? and ?Village Fields Hemp USA LLC.

Latest News: As the supply of cannabis increases over time, the selling price of cannabis is expected to diminish, decreasing margins on the product and this gives Village Farms International an advantage, as its extensive experience in cultivation should provide them with an edge over their competitors.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $727.7M
  • 52-week H/L Price: $24.25/$3.98
  • 52-week H/L Price Spread: 6.1x
  • Beta: 3.84
  • Current Price (LTM): $13.86 (down 51% from its 52-wk high)
  • Revenue: $109.48M
  • 3-yr Revenue Growth: -0.44%
  • EPS: -0.15
  • P/B Ratio: 5.49
  • P/S Ratio: 6.42
  • # Analysts Following: 3
  • Analysts Recommendations: Strong Buy: 2; Moderate Buy: 1; Hold: 0
  • Target Price: High @ $60.00; Median @ $39.49; Low @ $25.50
  • Institutional Holdings: 10.5%
  • Insider Holdings: 29.25M shares
  • Related Article

7. Cronos Group Inc. (TSX:CRON; Nasdaq: CRON) thecronosgroup.com

Business Description:

The company cultivates and sells medicinal and recreational cannabis through its medicinal brand, Peace Naturals, and its two recreational brands, COVE and Spinach. Although it primarily operates in Canada, Cronos exports medical cannabis to Poland and Germany. In addition, it has entered joint ventures in Israel, Colombia, and Australia to drive further international cultivation and distribution growth. In March 2019, Cronos closed a C$2.4 billion strategic investment from Altria Group. This investment will help the Company to expand its product development and commercialization capabilities.

Latest News: Despite the company posting improved revenue and net loss for the fiscal first quarter on July 3rd, CRON stock has tumbled as its results fell short of analysts' forecast.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $6.69B
  • 52-week H/L Price: $32.95/$7.33
  • 52-week H/L Price Spread: 4.5x
  • Beta: 4.05
  • Current Price: $20.07 (down 39% from its 52-wk high)
  • Revenue (LTM): $17.79M
  • 3-yr Revenue Growth: 254.5%
  • EPS: 1.84
  • Beta: 4.05
  • P/E Ratio: 10.8
  • P/B Ratio: 6.9
  • P/S Ratio: 376.7
  • # Analysts Following: 9
  • Analysts Recommendations: Strong Buy: 2; Moderate Buy: 0; Hold: 5; Moderate Sell: 1; Strong Sell: 1
  • Target Price: High @ $26.00; Median @ $20.25; Low @ $15.00
  • Institutional Holdings: 11.1%
  • Insider Holdings: 163.7M shares
  • Related Article

8. CannTrust Holdings Inc. (TSE:TRST; NYSE:CTST) canntrust.ca

Business Description: The company is engaged in the business of producing and distributing medical cannabis in Canada. Its facility is located at Vaughan, Ontario in Canada. Its brands include LIIV, ESCAPE, SYNR.G and Peak Leaf.

Latest News: CannTrust told the public on Monday, July 8th that it was found to be illegally growing weed in its facility and could face severe legal and financial consequences after Health Canada seized its inventory. The new leadership team at CannTrust has destroyed a massive amount of shareholder value since last October and the company could face more headwinds after Monday's events.

(All dollar figures below are Canadian; stock prices are as of July 10th/19)

  • Market Cap: $755.3M
  • 52-week H/L Price: $15.50/$3.88
  • 52-week H/L Price Spread: 4.0x
  • Beta: 4.5
  • Current Price: $3.99 (down 74% from its 52-wk high)
  • Revenue (LTM): $31.5M
  • 3-yr Revenue Growth: 130.6%
  • EPS: -0.13
  • P/B Ratio: 4.35
  • P/S Ratio: 28.96
  • # Analysts Following: N/A
  • Analysts Recommendations: N/A
  • Target Price: N/A
  • Institutional Holdings: N/A
  • Insider Holdings: N/A
  • Related Articles

It is interesting to note that the above 8 stocks consist of:

  • 2 Large Caps,
  • 2 Mid Caps,
  • 3 Small Caps and
  • 1 Micro Cap

which provides diversification among companies of different sizes.

Also of interest is that the above 8 stocks, in spite of being listed on major exchanges in Canada and the U. S.:

  • are DOWN a whopping 60%, on average, from their previous 52-week highs and
  • have a 3.3 beta average ranging from a low of 1.41 to a high of 4.5. A beta that is greater than 1.0 indicates that the security's price is theoretically more volatile than the market. For example, if a stock's beta is 1.2, it is assumed to be 20% more volatile than the market. This indicates that adding the stock to a portfolio will increase the portfolio's risk, but also increase its expected return.

As mentioned in the introduction, the above 8 stocks, by the fact that they are listed on major stock exchanges in both Canada and the U.S., are well placed to attract major institutional attention and the potential for major price appreciation as more investors get on board. It might serve new investors well to seriously consider these stocks instead of venturing into the even more volatile juniors in the space.

Editor's Note: A hyperlink to this article must be included in any re-posting to avoid copyright infringement.

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The post These 8 "Pot" Stocks Trade On Both Major U.S. & Cdn. Exchanges - Check Them Out appeared first on munKNEE.com.

 
 
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