Connect with us

Best cannabis stock: Canopy Growth or Aurora Cannabis?

 


After a disastrous 2019, Aurora Cannabis(NYSE: ACB) rises from the ashes in 2020. In a news series this year, Aurora has surprised investors with the efforts it is making to recover. Management is focused on achieving positive profitability, and all eyes are now on this business.

Meanwhile,Canopy growth(NYSE: CGC) does not neglect its efforts to reduce costs and profitability. It could see exciting growth in its new cannabis derivatives, which have already received positive reviews from customers. Cannabis derivatives are part of the October “cannabis 2.0” legalization in Canada, which legalized other recreational products (think cannabis-infused edibles, drinks, chocolates, vapers, and concentrates). “Cannabis 1.0” in 2018 made cannabis flowers, oils, plants and seeds legal in Canada.

Both companies are working hard to recover from difficult years in 2019. Is either or both likely to be successful this year?

Marijuana stocks are making money.

Image source: Getty Images.

Aurora Cannabis is all-in

The unrest of the past year caused Aurora’s shares to fall so far that its shares were on the verge of delisting from the New York Stock Exchange (NYSE). However, quick action using the only option available (dilution of the stock) saved the business. Shares must trade at more than $ 1 per share to be included on the NYSE; If a stock falls below this level during the duration of a 30-day trading period, it receives a warning notification allowing it to raise its share price.

Aurora surprised investors with its third quarter results in May, posting revenue up 16% year over year to C $ 75.5 million. That said, it also reported another quarter of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which reached C $ 45.9 million.

It is imperative now that Aurora becomes profitable. In the third quarter results, management assured investors that it will achieve positive EBITDA by the first quarter of fiscal 2021, which ends in September of this year. The company made many operational changes to reduce costs and reduce expenses in order to meet the target. Management expects that a downsizing and restructuring changes at the executive management level, as well as the closure of five of its small facilities over the next two quarters, will help it focus on productive efforts.

Canopy Growth has the upper hand

While Canopy Growth isn’t profitable either, its involvement in the cannabis drink category gives it an edge over Aurora. Canopy, with its partner Constellation marks, plans to launch innovative cannabis-infused drinks, which the company says will attract a whole new consumer base.

Recently, Canopy announced that it has received positive responses from consumers to its ready-to-drink THC-infused cannabis drinks, namely Tweed Houndstooth & Soda and Tweed Bakerstreet & Ginger, launched in March and April. It has also launched two other drinks, Houseplant Grapefruit and Deep Space, in the past two months. Canopy believes cannabis drinks could be a game-changer for the industry and is ready to take advantage of the market. During this time, Aurora never hinted at an interest in drinks.

The accounting and professional services association Deloitte noted that the Canadian cannabis drink market could generate nearly C $ 529 million per year. If these estimates turn out to be correct, Canopy might have the upper hand on the drinks, while Aurora Cannabis might not.

So far, Canopy has increased its revenue 15% year over year to C $ 107.9 million for its fourth quarter; this measure is up 76% for fiscal 2020. The Company’s EBITDA losses amounted to C $ 102 million for the quarter and C $ 442 million for the full year.

Canopy has also attempted several measures to cut costs under the leadership of CEO David Klein. The closure of operations in South Africa and Lesotho and the closure of some facilities in Canada, Colombia and New York will help the company operate with an asset-based approach.

The choice

Aurora has repeatedly failed to live up to expectations, so it’s still too early to know if he’s repeating his mistakes this year. Its fourth quarter results, due on September 25, should give us a better idea of ​​whether any or all of its strategies are working.

Opportunities may continue this year in the Canadian cannabis market, with the opening of more legal stores in Ontario; the total number of authorized retail outlets in the province reached 100 last month. That said, actual store openings could take some time due to the regulatory process.

Both companies could benefit from these new locations, as they were both struggling last year in part due to the lack of legal stores. Demand and production have never been a problem for any of these players as they have each created a brand for their innovative products. But in Canada, fewer legal retail outlets than expected have boosted the black market, straining the earnings of producers like Aurora and Canopy.

Although revenues appear to be increasing this year, achieving positive EBITDA remains a task for these two. Overall, however, Canopy remains in a better financial position and has a better chance of making a profit, given the advancement of its cannabis derivatives this year.

ACB Chart

ACB given by YCharts

In July, Aurora’s stock fell 16.9%, while Canopy and the Horizons Marijuana Life Sciences ETF gained 10.9% and 4.8% respectively. The market as monitored by the ETF SPDR S&P 500 is up 5.1% over the same period.

If you are interested in other marijuana stocks besides the popular players, there are at least three other cannabis stocks to consider for 2020. Between these two big names, however, Canopy Growth would be my choice.



What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]