Canaccord Says These 8 Pot Stocks Deserve a Look Thanks to the US Farm Bill

Pot stock analysts believe that the CBD industry is about to explode. The reason? The $867 billion Farm Bill, signed into law by US President Donald Trump on December 20, officially excluded all cannabis products with 0.3% or less THC from the Controlled Substances Act. (THC is the psychoactive element in marijuana that gets users “high.”)

CBD has medicinal uses and is already legal in many states, as is its psychoactive component. As a result, farmers anywhere in the United States can freely grow “hemp” for both industrial and medical purposes.

Several Pot Stocks Set to Explode

Charlotte’s Web is one of eight pot stocks that Canaccord thinks could go higher within the near future. | Source: Shutterstock

Canaccord Genuity, a wealth management firm and investment bank with offices all over the world, believes the effects of CBD legalization will be huge. They rated the following stocks as most promising in a note today:

  • Charlotte’s Web Holdings, Inc. (CWEB-CSE)
  • Canopy Growth Corporation (WEED-TSE)
  • Curaleaf Holdings, Inc. (CURA-CSE)
  • Liberty Health Sciences Inc. (LHS-CSE)
  • 1933 Industries, Inc. (TGIF-CSE)
  • DionyMed Brands, Inc. (DYME-CSE)
  • KushCo. Holdings, Inc. (KSHB-OTC)
  • MJardin Group, Inc. (MJAR-CSE)

Of these, only Charlotte’s Web Holdings was given a firm “buy” rating. The others were categorized as “speculative buys.” The CNBC article on the subject lists the buy targets. In the case of CWEB, that price is $21 Canadian. At press time, CWEB was trading at $19.70, down from its 24-hour high of $20.73. If the advice of Canaccord is to be taken, that means there is still ample room to buy CWEB. However, do note that this article is not intended to be financial advice.

CWEB opened around $10 last August. It has now nearly doubled in value. If Canaccord is correct, it could have a lot of room for growth in the near future as American farmers begin harvest CBD.

The first-quarter report from Canaccord has a message from CEO David Davieu regarding the strategization of the firm going forward. Davieu notes that growth stocks may face a challenging environment in the coming quarters. As a hedge, the firm is moving heavily into cryptocurrency and cannabis companies.

“With signs that the economic backdrop could become more challenging for growth stocks, we anticipate that rising commodity prices will drive increased activities in the natural resource sectors, a historic area of strength for our firm. We also anticipate growing interest in non-traditional sectors where Canaccord Genuity has established a strong market position, such as cannabis and digital assets.”

Canaccord Going Heavy on Cannabis and Cryptocurrency

Canada legalized marijuana nationwide last year. Pot stocks from the United States’ neighbor to the north have been booming as a result. For example, CWEB opened in August 2018 around $10, and has in the meantime almost doubled its per-share price.

Canaccord is continuing their expansion into digital assets despite lingering doubts about a Bitcoin ETF. Their doubts were again confirmed earlier this month when a Bitcoin ETF application was summarily withdrawn.

The note acknowledges that the Food and Drug Administration has yet to get fully on board with CBD legalization, but Canaccord this is a temporary situation.

“While the FDA’s stance has added some initial caution by retailers looking to enter the CBD space, we believe this to be transient, and expect many mass market retailers to begin distributing CBD products over the course of 2019.”

Marijuana legalization has revitalized several economies in the United States, most notably Colorado, which saw a $66 million marijuana tax surplus in fiscal year 2015, the first full year of total legalization. More than 60% of Americans now support legalization of marijuana, paving the way for what may amount to a mandate for elected officials in coming years.


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Author: P.H. Madore 
Image Credit: Featured Image from Shutterstock. CWEB chart from TradingView.com.

‘Nobody’s Going to Make Money’ on Pot Stocks: Hedge Funder Jeff Vinik

Renowned hedge fund manager Jeffrey Vinik has dismissed the pot stock craze, describing cannabis investment as overrated and likely to suffer from squeezed margins. Speaking on CNBC’s Squawk Box on January 10, Vinik also revealed that bitcoin currently accounts for “zero percent” of his investment portfolio.

Returning to the hedge fund scene after a five-year hiatus, the Tampa Bay Lightning owner, who also holds minority stakes in the Boston Red Sox and Liverpool Football Club, believes that an entry rush into cannabis investments will create a situation where market demand is overserved, and margins become too small to be profitable.

In his words:

I won’t say zero, but my guess is that they’re overhyped. There’s going to be too much competition, margins are going to come down, [and] nobody’s going to make money.

Rosy Cannabis Stock Predictions Versus Vinik’s Bearish Outlook

Tilray, the poster child of the pot stock bubble, has a price chart that looks more like it belongs to a cryptocurrency than a publicly-traded company.

If anyone has worthwhile experience in predicting stock performance, it would be Vinik whose hedge fund Vinik Asset Management returned an average of 17 percent per annum from 1996 to 2013. His prediction, however, is in stark contrast to the cannabis industry outlook put forward by Vivien Azer and Michael Lavery of Cowen and Piper Jaffray, respectively.

Both analysts have picked Canopy Growth and Tilray to lead the space in 2019 amidst a projected market surge that will see the sector achieve a valuation in the hundreds of billions of dollars over the coming decade.

Vinik, on the other hand, believes that such optimism is itself a cause for concern as it will lead to an unprecedented entry rush due to pot’s relatively low barrier to entry. Over time, as more and more investors come into the space and demand remains more or less stagnant, Vinik predicts that cannabis will thus become a stagnant-volume, low-margin space.

Vinik’s wider economic outlook is not quite so pessimistic, however. Speaking on Squawk Box, he revealed that believes that despite ongoing turbulence, stocks could embark on a multi-year uptrend across amidst good economic growth and low inflation.  In his opinion, tech stocks specifically are in the mid stages of a bull market, which means that regardless of short-term retracements, the asset values will remain bullish in the long term.

In his words:

My belief is that we’re in a secular bull market. In retrospect — I didn’t know it at the time — it started in 2009 and if I had to guess, we’re halfway through it, driven by good economic growth and low inflation.


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Author: David Hundeyin
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High Times Now Says It’s Accepting Crypto Payments For Its IPO

It turns out that the cannabis publication High Times is accepting cryptocurrency for its ongoing initial public offering (IPO) after all.

The publication announced at the beginning of August that it would accept bitcoin and ethereum for its IPO, but later walked back that announcement in an August 13 filing submitted to the U.S. Securities and Exchange Commission (SEC), as previously reported by CoinDesk.

Despite the move, however, bitcoin appears to have remained as a payment option on the company’s investment page.

When reached for comment, High Times representative Jon Cappetta confirmed that the company is, in fact, accepting bitcoin and ethereum as payment options. Cappetta told CoinDesk that the regulatory filing was made “to make the SEC happy.”

“Yes, technically we are accepting bitcoin and ethereum,” Cappetta told CoinDesk. However, High Times is not taking or holding any cryptocurrencies – rather, a third-party processor called Fund America is taking the two cryptocurrencies and converting into U.S. dollars, which the company will then receive.

“On the legal side, it’s a lot of jargon. There’s no real easy way to spell it out. They issued the release to make the SEC happy,” he said.

He explained:

“We’re accepting [cryptocurrencies] as a payment option, but technically Fund America takes the bitcoin and ethereum … It’s similar to the way if we were doing an international IPO, and we were accepting the pound or the euro, those guys aren’t accepting that money, they’re converting it to [dollars].”

The reason for the earlier walk-back was due to concerns expressed by the SEC after the company initially said it would accept bitcoin, which mainly revolved around whether High Times would directly receive cryptocurrencies, he said.

“The reason we got slapped by the SEC last time is because we were accepting it … similar to a credit card processor … [however], it gets transferred to cash and we get that, we’re not explicitly holding [cryptocurrencies],” he said.

High Times’ IPO itself is going well, Cappetta said, and the company is looking at a direct listing as a result.

“The Regulation A [fundraising] is going to close on the 12th of this month, and then from there we will begin the listing process,” he said.

Hat tip to Scott.


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Author: Nikhilesh De 
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Bad Trip: Pot Company High Times Backtracks on Accepting Bitcoin in IPO

High Times Holding Corp, a New York-based media group advocating for cannabis usage, has decided against accepting bitcoin in its initial public offering (IPO), according to a filing with the Securities and Exchange Commission (SEC) dated Aug. 13.

The SEC filing states that the initial announcement made two weeks ago, in which the company had said it would accept cryptocurrencies for its IPO, was “distributed in error.”

At the beginning of August, CCN reported that High Times was accepting cryptocurrency for its IPO — which it claimed would have made it the first stock offering ever to accept investments in digital assets.

According to the report, the offering was compliant with SEC Regulation A+ — a framework which allows small businesses raise up to $50 million of funding — and it also stated that the company had begun receiving cryptocurrency investments.

At the time, High Times CEO Adam Levin had said the company was “taking another step into the future” by making it possible for investors who own cryptocurrencies such as bitcoin and ethereum to be part of the “public capital raise.” Levin went further to describe cryptocurrency as the currency of the future that has “created a new investor base across the world.”

The Aug. 13 filing with the SEC runs contrary to the announcement made two weeks ago. The company has now rescinded its statement about accepting bitcoin as a form of payment from investors for stock in the company.

The new filing reads, “This press release was distributed in error as the Company will not be accepting bitcoin as payment for shares. As provided in the Company’s subscription agreement related to the offering, the Company will only be accepting check, credit card, ACH or wire transfer as payment for subscription to shares.”

While the recent filing doesn’t reference ethereum, which was mentioned in the initial announcement, it is safe to assume they won’t be accepting that asset either.

Cryptocurrencies are seen by many as an alternative to cannabis-related payment issues that makes it difficult for customers to make purchases with their credit or debit cards. The industry suffers from hostility from the banks and has become a target for thieves due to the large amount of cash kept on site.


IZX

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Jimmy Aki
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Weed’s Biggest Wedding Announcement Just Happened And Cryptocurrency Is The Bride

Their unlikeliness makes them likely companions because both cannabis and blockchain have the strongest industry force fueling them: Passion. Most notably, both cannabis and cryptocurrency aim to make life just a little bit easier for those who chose to use them.

LIONBIT

In 1974, the first edition of monthly magazine High Times featured an article headlined “Marijuana: Wonder Drug.” Forty-two years later, an article in cannabis publication Herb asked, “Is Cannabis The New Wonder Drug?”

High Times is forward-looking once again by announcing the first-ever initial public offering that can be funded by cryptocurrency in addition to fiat currency. The authoritative publication is using a handy law called Regulation A+ crowdfunding, designed to allow small companies like the media brand to crowdsource $50 million in a public offering from everyone including non-accredited, everyday investors. If you’ve got $11 or some Bitcoin, you’re in.

The bold move may be a lasting one, as this veteran cannabis icon is reaching out to embrace the latest in technology and finance in a way that may reverberate across both industries. The decision to accept cryptocurrency was a strategic one intended to demonstrate inclusiveness. Adam Levin, Chief Executive Officer of High Times, said the brand is on an organizational mission to be “at the forefront of popular culture… not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow Bitcoin and Ethereum as part of our public capital raise.”

This new brand mission involves a whole lot of outreach as High Times sets itself to transform into a video and media powerhouse, diversified events host, and more driven merchandising company.

For nearly a half-century, the progressive magazine has ushered readers to and through a better understanding of cannabis, its culture, opportunities, restrictions, and evolution. High Times has attracted audiences eager to learn everything weed.

High Times is credited by a Florida lawyer for being the educational foundation to later help him convince a jury of his client’s need for cannabis. “Growing up I read High Times and they exposed a lot of the hypocrisy of the government and the lies about cannabis,” Michael Minardi explained to Vice about his historical court win for his client’s permission to grow his own medicine.

Samir Husni, director of the Magazine Innovation Institute at the University of Mississippi, said of High Times, “They have top brand power. When you think marijuana, you think High Times.” Adding, “If they can use it effectively, they will be a powerful company.”

If High Times goes the direction of marketing its IPO directly to cryptocurrency holders, a powerful bridge can be built between two social outliers. High Times has the industry force cannabis and cryptocurrency can use in truly forming a relationship. Something the two arguably haven’t had success doing to date.

The cannabis industry has had its share of celebrity-endorsed and unimaginatively named cannabis coins. Many of which fail to gain the critical mass to elicit sizable industry adoption. The industry’s most illustrious, Paragon Coin (traded as PRG), while advancing cannabis-friendly working environments, is mired in a lawsuit and suffers from historically low coin value leading some to accuse it of being a pump and dump.

The potential for deep cross-industry collaboration hasn’t yet been realized, and it shouldn’t be that hard to bring these two disparate cultures together. In many ways, cannabis and cryptocurrency are a lot alike.

TIP

They’re both misunderstood.

Popular investment speculators are standoffish to both cannabis and cryptocurrency. In part because of volatility, but because both markets wade in the secluded part of a gymnasium pool that’s a little murky and hard to gauge the depth of.

They’re both discriminated against.

Twitter tolerates them both. One is Instagram-famous. One of them can’t assuredly publish an event notification on Evite without it suddenly disappearing, and one was just recently welcomed back to advertise on Facebook. One’s never been able to advertise on Google’s network and the other just got banned on June 1st, 2018.

They hang out at different tables in the school cafeteria.

While the cannabis clique swats nearest to the rear exit, the crypto crew sits within an ear’s shout from the Wall Street jocks who’ve taken over the middle of the dining hall. Neither is cool enough to be invited to the mainstream banquet, but both are edging closer and closer.

Their unlikeliness makes them likely companions because both cannabis and blockchain have the strongest industry force fueling them: Passion.

Blockchain and cryptocurrency advocates are pushing for mainstream acceptance with the same fervor as cannabis advocates. One wants to be taken seriously by legacy institutions and investors, while the other wants the government to treat it with softer restrictions the same way it treats a killer elixir.

Most notably, both cannabis and cryptocurrency aim to make life just a little bit easier for those who chose to use them.

High Times is one of few household names in the cannabis industry and it’s also uniquely positioning itself to become somewhat of a cannabis industry blockchain authority as well. It’s one thing to study blockchain and cryptocurrency and an entirely different thing to work with them in terms of a project.

Given the company’s recent $7 million acquisition of Green Rush Daily (GRD), a publication of 9.5 million monthly views, and another pickup of cannabis lifestyle magazine, Culture, High Times is looking to spread its reach. GRD “guides” section would be a great place to publish a “What you need to know about cannabis cryptocurrency” series.

With a facelift and the addition of a “crypto corner” to join the ranks of “legal corner” in the “features” subcategory, Culture Magazine might be just the right place to invite casual lifestyle readers a place to grow their blockchain and cryptocurrency knowledge under a familiar context.

If High Times gets a high grasp of this, lush fields of cross-pollinating interests can be forged together.

So, while it’s a union that doesn’t quite match up to Royal Family status, the marriage of High Times to cryptocurrency is very much America’s established culture embracing the new. A global, powerhouse cannabis brand welcoming cryptocurrency with the potential to drive growth expansion and acceptance of both into everyday, mainstream conversation.

Indeed, a wedding worth watching.


Here at Dollar Destruction, we endeavor to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Andre Bourque
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Europe’s Cannabis Company, Royal Queen, Adopts Verge (XVG)

The rate at which Verge (XVG) is winning this time when other cryptocurrencies are staggering precariously is surprising. The Verge team seems not to be relenting at all especially this period that the crypto space has witnessed massive downturn.

One may think it is over, but in its latest partnership, the Verge team proves the pessimists wrong. Today, the Verge community woke up to another euphoric move by the team, when it announced a world renowned cannabis company, Royal Queen, is now accepting Verge.



Verge tweeted: “A world known cannabis seeds producer @royalqueenseeds is now accepting @vergecurrency payments via @CoinPaymentsNET. $XVG is the future and we are happy to have you by our side. Thank you for the support and welcome to #VergeFam! https://www.royalqueenseeds.com #XVG #Verge”

The company, which is situated in Europe is amongst the fastest growing cannabis seed companies in Europe, it has built years of experience growing cannabis seeds in the Netherlands. Royal Queen recently decided to launch its own line of cannabis seeds with quality feminized, autoflowering and medical seeds at a very cheap price.

Not long, Verge partnered with Panchanko, a company that designs and produces high-end audio cables. The company is known in the music industry for its efforts in producing well-refined audio cables.

In the same line, Bamb-U has indicated that it is now accepting Verge, favouring TokenPay as well. To add to the news, the company made known that it has put a 50% discount on every transaction made with Verge and TokenPay.

On the side of Verge, even though it is faced with different attacks, at the same time it is trying to proffer lasting solution to it. The Cryptocurrency sees partnership as one major way to shred off the bad talks it has been labelled with. If noticed, after every hack, the altcoin comes up with a partnership, appealing to its lovers and users in the crypto sphere and surely, the partnership may likely spring it up in the community.

Even though this huge development is not coming after an attack, there has been cases where Verge’s collaboration is succeeded with a spell.

After hackers took over the secured Cryptocurrency twitter account asking for fund, Verge requested for crowd fund worth 75,000,000 XVG from lovers to initiate a mystery partnership with traffic giant website, Pornhub.

Not the end, after Pornhub-Verge partnership, collaboration with other companies like Brazzers, TrafficJunky and a listing from Abra exchange surfaced.

Up till this end, Verge has been able to coast several sector of the world industries with its real world use cases. Verge is seen as a viable tool for payment in areas like health and construction sector as the altcoin partnered with DIOXYME and Heightcare.


Here at Dollar Destruction, we endeavor to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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3 Top Marijuana Stocks to Buy After Canada’s Legalization of Recreational Marijuana

Canada now stands as the first major economic power to legalize the use of recreational marijuana. On Tuesday, the Canadian Senate overwhelmingly passed bill C-45, also known as the Cannabis Act. Although it will take provinces and territories another eight to 12 weeks to prepare, a sizable new cannabis market will soon open in the country.



Most Canadian marijuana stocks moved higher after the legislative milestone, but which stocks are the best picks for investors looking to profit from the anticipated marijuana market boom? Here’s why Canopy Growth Corporation (NYSE: CGC) , Aphria (NASDAQOTH: APHQF) , and Aurora Cannabis (NASDAQOTH: ACBFF) look like top marijuana stocks to buy after Canada’s historic vote.

Canopy Growth Corporation

Capitalizing on the coming recreational marijuana market requires two key ingredients: plenty of production capacity and a strong retail presence. Canopy Growth has both.

Canopy currently operates facilities with over 2.4 million square feet of growing space. However, the company is expanding its operations to include more than 5 million square feet of growing space by next year. Based on some back-of-the-envelope calculations, Canopy Growth should be able to produce more than 780,000 kilograms of cannabis each year at its projected full capacity.

There are 10 provinces in Canada and three territories. Canopy Growth already has supply agreements for recreational marijuana with three of them and has announced retail sites in Saskatchewan and Newfoundland and Labrador.

Although Canopy Growth claims the highest market cap of any marijuana stock, it actually ranks as one of the best bargains in terms of cost per kilogram of production capacity. In addition, the company’s partnership with large alcoholic-beverage maker Constellation Brands  gives it access to resources that other marijuana companies don’t have.

Aphria

Aphria appears to be in good shape to compete in the recreational market, as well. Although the company currently can grow only around 35,000 kilograms of cannabis per year, Aphria is on target to have an annual production capacity of 255,000 kilograms by early 2019.

The company also has solidified its retail strategy by forging a key distribution partnership. In May, Aphria selected Southern Glazer as its exclusive distribution partner for recreational marijuana. Southern Glazer is the largest wine and spirits distributor in North America and has operations in all of Canada’s provinces.

Another plus for Aphria is its low cost structure. The company already is able to produce cannabis at less than 1 Canadian dollar per gram. Aphria CEO Vic Neufield has predicted that the ability to operate at low costs could be tremendously important by late 2019 as supply catches up with demand in the Canadian recreational marijuana market.

 

Aurora Cannabis

Aurora Cannabis has been more aggressive than any other marijuana grower in Canada at rapidly expanding capacity through acquisitions. The company has bought CanniMed Therapeutics and MedReleaf  — the third-largest Canadian marijuana grower — over the last few months.

Although some have criticized Aurora’s acquisition strategy, the company’s Chief Corporate Officer Cam Battley recently defended the approach of rapidly scooping up other players. Battley stated that Aurora was in the middle of a “land grab” to establish integrated operations as quickly as it could to compete more effectively.

Thanks in large part to the MedReleaf deal, Aurora will be on course to fund annual production capacity of more than 570,000 kilograms. The company also has secured agreements with smaller marijuana growers to lock in additional capacity.

Aurora’s efforts to prepare for the retail marijuana market include partnering with and buying a stake in Alcanna , which operates 229 liquor stores in Alberta. The company also has signed distribution agreements with leading Canadian pharmacy chains Pharmasave and Shoppers Drug Mart.

But aren’t these stocks too expensive?

Canopy Growth’s market cap stands at nearly $7 billion. Aphria and Aurora Cannabis claim market caps of around $2 billion and $4.3 billion, respectively. Are these marijuana stocks simply too expensive to buy? Not necessarily.

The Canadian annual recreational marijuana market is likely to be in the ballpark of CA$7 billion. Adding the potential for the medical marijuana market in the country brings the total market size to more than CA$8 billion. That’s not enough to justify the market caps of these top marijuana stocks — but the global opportunity is.

Currently, 22 countries other than Canada have active medical marijuana laws. Global demand for medical marijuana could create a market as much as eight times greater than the Canadian cannabis market. And that’s not including the possibility that other countries legalize medical marijuana or that the U.S. could change federal laws to allow states to legalize medical or recreational marijuana without fear of interference.

Granted, it could take longer than expected for these global markets to develop. Even top marijuana stocks could suffer if the delays are too long. Over the long run, though, I think that Canopy Growth, Aphria, and Aurora Cannabis should prosper from the loosening of restrictions on marijuana use.


Here at Dollar Destruction, we endeavor to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!
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Author: Keith Speights
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