Will Canntrust (CTST) pull off a miraculous recovery this week?

From Aaron Missere:

Right now Canntrust is down, but are they out?

There is no denying that Canntrust's value has been decimated in a matter of days after the news that health Canada would be putting the company under investigation for growing cannabis in rooms prior to obtaining their license to grow. In a short week the stock declined consecutively every single day since the announcement to close the week down almost 50%. Its astonishing how fast a company who carried a strong reputation in the high growth cannabis sector can be demolished and have their reputation tarnished overnight. Now as serious as the news really is, there are always two sides to a story, and most of the time someone's loss is another one's fortune. The question remains on many of our minds, will this be the case for canntrust once the dust settles. This week is going to be a very crucial week for canntrust and their shareholders for a few reasons.

The Fate Lies in Health Canada's Hands

This is going to be a big week for Canntrust and I can see the stock having more volatility than last week. More than likely a large amount of short interest has accumulated on Canntrust after last week's news, and I wouldn't be surprised if we see a short squeeze in the trading sessions to come. There is a perfect catalyst coming up this week that could cause a massive bounce in shares of Canntrust. The company has until July 18th to respond to health Canada'sregulator'ss report. At that point Health Canada will determine if the company receives a fine of up to a million dollars Canadian or a suspension/cancellation of their federal license. In my opinion if health Canada eases back at all hinting at a possible fine and allows Canntrust to pick up the pieces of their broken reputation, shares will rally immensely. Often times when things look like they could not get any worse and there is no hope are the times that you need to think logically, weigh the pros and cons and see through the darkness. Its human nature to join the crowd and rain down negativity on Canntrust as many investors within the community have done so. I truly believe "this too shall pass" but let's talk about the worst-case scenario. If Canntrust was to lose their federal license than the company would indeed be in big trouble, at that point I think they would have to be bought out, rebranded and dismantled. Brands and reputation definitely carry value especially in the cannabis sector so Canntrust has taken a big hit.

How Far Will Health Canada take it?

In my opinion Health Canada is making an example of Canntrust and they came in guns blazing. On Friday we felt the waves of fear ripple through the cannabis sector with a broad selloff from large caps to small caps. Selling quality cannabis grown in licensed facilities should be on the top of their list, but completely destroying a company for breaking the rules once is another story. It would make more sense to even increase the size of fines for non-compliance in the future to deter companies from breaking the rules, but a suspension or complete withdrawal of one's license seems a little overboard. This would also look bad for the Canadian government allowing the destruction of so many jobs. We will be waiting on the edges of our seat this week to see the final verdict from health Canada but I wouldn't be surprised if we see more volatility than last week. At this point buying the dip in shares of Canntrust is very risky business but for a high-risk investor, there is lots of potential for returns. Buckle your seatbelts if you are on the Canntrust coaster, we could be in for a wild ride!


About the Author  Aaron Missere is the CEO and founder of financial media company Departures Capital Inc.  He is an avid and experienced investor, with a primary focus on the cannabis industry.  In addition to being a featured contributor to StockNews.com and ETFDailyNews.com, he is an author for SmarterAnalyst.com.  Aaron also currently hosts a weekly show on YouTube that recaps and explains the movement in the stock market, with a heavy emphasis on marijuana stocks. 
CannTrust Holdings Inc. (CTST) was trading at $2.81 per share on Wednesday morning, up $0.06 (+2.18%). Year-to-date, CTST has declined %, versus a 12.77% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of StockNews.
NYSE:MJ July 17, 2019 10:00am

Is Aphria (APHA) the ‘hidden gem’ that everyone forgot about?


What is going on?


For many that follow us and know our investment strategy in the cannabis sector post legalization has been heavily focused on holding our largest positions within the large cap cannabis stocks. We feel that these companies carry the least amount of risk as opposed to so many of the small cap stocks that have sold off immensely. The large cap stocks have seen their fair share of shakeups and volatility but we still feel that investing in large caps, especially when the market pulls back like it has, is going to be the key to maximizing returns within the cannabis sector. With many cannabis stocks feeling the growing pains of any new industry, experiencing wild price swings, there are so many stocks right now sitting close to their yearly lows. Knowing when to start buying these stocks is crucial to success with it comes to investing and even more so, knowing how to determine if you are buying a great company at a good price or a value trap.


Aphria should not be forgotten


One company that comes to mind is Aphria. This stock has seen its fair share of volatility due to a short seller attack over their latin american assets this year that shaved off over 50% of their market cap within days only to bounce right back up after the dust settled. We saw the stock go on to more than triple off of its lows after the attack and has now been steadily declining after hitting $14 per share in April. At current levels the company still has a market cap of over 2 billion dollars (cad) and a 52 week high of $22 (cad).


Aphria is not to be forgotten for many reasons and it starts with the canadian cannabis market. The company has supply agreements with all of the canadian provinces and the yukon territories. After digesting Aphria’s latest earnings report we were very pleased to see that the company grew revenues over 600% year over year and over 200% from the previous quarter. We highly value increasing revenue numbers as a key driver to success in the short term, and as the company matures, then we will focus on the bottom line more closely including profitability. Compared to its counterparts and other large cap cannabis stocks, aphria lost just over $100,000 last quarter which is very minimal compared to a company like canopy which lost over $300,000,000, yes 300 Million. We feel that aphria is very close to profitability, and despite the lackluster numbers coming out of the canadian cannabis market, aphria has a secret weapon that will propel them back up to new highs in the coming months.

Aphria’s Secret Weapon

Aphria is already thinking like an industry leader, setting up operations globally in latin america, south africa and more importantly europe. Aphria has put a lot of emphasis on germany which is most likely going to be the largest cannabis market outside of north america. The company is one of three companies to hold a german cannabis license, the other two being aurora and ICC International Cannabis/Wayland. This is a huge advantage next to over cannabis companies in our opinion as the market in europe grows, aphria will have first mover advantage compared to other companies. On top of this Aphria acquired CC Pharma which serves over 13,000 pharmacies across germany.


Despite the shake up in the stock earlier this year, the company still holds licenses in Jamaica, Colombia and Argentina, which we feel will be a high growth sector as well. These markets have a long way to go, but should prove to be more and more profitable as the global push for legalization continues and the world opens up to cannabis.


The opportunity lies ahead 

At current levels we feel that aphria is not only undervalued compared to some of its competitors, but we feel that you are getting a lot of bang for your buck if you are betting on international expansion. We really like that the company is growing revenues at such a fast pace, while minimizing losses, as we feel that is going to be crucial over the next few years. What we would like to see from the company is a solid mix of diversified revenue coming from the canadian market and international market to reinforce aphria as a play on international growth. Aphria is on the top of our watchlist and should probably be on yours as well.

(Disclosure : We do not own Aphria) ________________________________________________________________________________________________
About the Author  Aaron Missere is the CEO and founder of financial media company Departures Capital Inc.  He is an avid and experienced investor, with a primary focus on the cannabis industry.  In addition to being a featured contributor to StockNews.com and ETFDailyNews.com, he is an author for SmarterAnalyst.com.  Aaron also currently hosts a weekly show on YouTube that recaps and explains the movement in the stock market, with a heavy emphasis on marijuana stocks.
NYSE:MJ July 15, 2019 5:35pm

Here are the main industries investing in marijuana

From Scott McGovern: Some of the biggest companies in the world are poised to profit from legalization. Meet the biggest non-weed companies investing in cannabis.
NYSE:MJ June 28, 2019 6:33pm

This marijuana ETF just announced it will begin issuing a quarterly dividend

From Business Wire:

MJ, The ETFMG Alternative Harvest ETF (NYSE Arca:MJ) has declared an approximate $6.5 million quarterly dividend which equates to $0.18 per share. The dividend will be paid July 3, 2019 to shareholders of record as of the close of business, July 1, 2019.


Why the CBD industry could be facing a steep uphill battle

From Sean Williams: You'd be hard-pressed right now to find a faster-growing industry than legal cannabis. Between 2018 and 2024, the newest report from Arcview Market Research and BDS Analytics, "State of the Legal Cannabis Markets," predicts a near quadrupling in worldwide licensed-store sales to north of $40 billion. This better than 24% compound annual growth rate through 2024 is a big reason behind the rapid rise in marijuana stocks in recent years.

Why this could be the safest way for marijuana investors take advantage of the rise of CBD

From Sean Williams: You likely don't need the reminder, but there aren't many industries expected to deliver a faster or more consistent growth rate over the next five to 10 years than legal marijuana. A newly released report from Arcview Market Research and BDS Analytics calls for more than $40 billion in global licensed-store sales by 2024, which is almost quadruple what was generated in 2018. Then, by the end of the next decade, cannabis cheerleader Cowen Group has called for $75 billion in annual worldwide sales.
NYSE:MJ June 27, 2019 11:38am

These five marijuana stocks are winning the licensing race

From Sean Williams: In case you haven't been paying attention, North America is "going green" at a rapid pace -- and I'm not talking about solar energy. The legal cannabis movement is quickly picking up steam, and legal weed sales are expected to soar in the years that lie ahead.
NYSE:MJ June 26, 2019 11:02am

Illinois becomes the 11th state to legalize recreational marijuana

From German Lopez:

Illinois just became the 11th state to legalize marijuana -- and the first where the legislature legalized selling the drug.

NYSE:MJ June 25, 2019 6:02pm

These 5 well-known marijuana stocks should top $500 million in 2020 sales

From Sean Williams : For years now, much of Wall Street has believed that legal marijuana is the greatest investment opportunity since sliced bread. Investors are fully aware of the massive black market and understand that ongoing legalizations around the world could move tens of billions of dollars into legal channels in the years to come. That could allow cannabis stocks -- and investors -- to see plenty of green.

Why marijuana stocks could see a lot of growth ahead

From Sean Williams :
NYSE:MJ June 24, 2019 1:19pm

Why marijuana investors are banking on pot ATMs to revolutionize the industry

From Keith Speights: Automated teller machines (ATMs) revolutionized the banking industry. Customers were able to withdraw or deposit money anytime they wanted. Waiting times in lines inside the bank were cut drastically. And banks made more money as their operational efficiencies increased.
NYSE:MJ June 21, 2019 2:27pm

Key questions marijuana investors need answers to in the second half of 2019

From Sean Williams: Over the past couple of years, marijuana has been a significant moneymaker for investors. Although not every pot stock has moved higher, buying a handful of the most popular growers and ancillary players would likely have yielded a return that ran circles around the broader market.
NYSE:MJ June 20, 2019 2:13pm

Wall Street’s expectations for marijuana stocks continues to plummet

From Sean Williams: Legal marijuana projects as one of the fastest-growing industries for the next couple of years. It generated $12.2 billion in global sales in 2018, and the team of Arcview Market Research and BDS Analytics have forecast worldwide revenue of $31.3 billion by 2022. This works out to a compound annual growth rate of 26.6% over the next four years.
NYSE:MJ June 19, 2019 3:32pm

Why Horizons Marijuana Life Sciences Index ETF (MJ) will continue to push higher

mariguanand money
From Matthew Carr: The end of prohibition is here - You can literally smell it in the air. Year-to-date, the Horizons Marijuana Life Sciences Index ETF HMLSF 0.94% is up 38 percent. That's more than double the return of the Nasdaq, S&P 500 or the small caps on the Russell 2000.
NYSE:MJ June 18, 2019 7:08pm

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