Saturday , December 7 2019
Home / canada / The Surprising Pot Stock Forecast to Lead the 2020 Sales Industry

The Surprising Pot Stock Forecast to Lead the 2020 Sales Industry



For many years, much of Wall Street believes that legalized marijuana is the biggest investment opportunity since sliced ​​bread. Investors are fully aware of the huge black market and understand that ongoing legalizations around the world can move tens of billions of dollars into legal channels over the next few years. This could allow cannabis stocks – and investors – to see very green.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But the nascent legal marijuana industry has also been hit with a problems in the initial stage. large accumulation of licensing applications with Health Canada has significantly restricted how much marijuana growers can produce or harvest. Likewise, the lack of compatible packaging solutions left unfinished cannabis on the fringes of waiting to be processed. But the nascent legal marijuana industry has also been hit by a flood of early problems.The number of licensing applications with Health Canada has significantly restricted the number of marijuana growers who can produce or harvest, as well as the lack of proper packaging solutions left the unfinished cannabis on the sidelines waiting to be processed.

Cannabis sprouts lying on a messy pile of money.

Image Source: Getty Images.

<p class = "canvas-atam canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We also witnessed supply problems and taxes your head in the United States , the first year of recreational sales in California came well below expectations in terms of sales revenue and taxes. Slower-than-expected approval of state dispensing licenses, oversupply of producers, and high tax rates that led to the persistence of the black market played a role in the Golden State, generating disappointing marijuana revenues. "34"> We also witnessed supply and tax problems in the United States. California's first year of recreational pot sales was well below expectations in terms of sales and tax revenue. A dispensation approval slower than expected state licenses, oversupply of producers and high tax rates that led to the persistence of the black market played a role in the Golden State, generating disappointing marijuana revenues.

As a result, while sales of publicly traded pot stocks are still expected to rise in 2020, revenue estimates are much better than, say, six months ago. In fact, out of the 60 pot stocks I regularly follow, only six are expected to generate more than $ 500 million in sales in fiscal year 2020.

These five well-known marijuana stocks are expected to exceed $ 500 million in sales by 2020

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Five of the six names are companies you probably expect to find as the main revenue producers. three largest marijuana growers per annual production peak – & nbsp;Aurora Cannabis (NYSE: ACB), Canopy growth (NYSE: CGC)and Aphria (NYSE: APHA)& nbsp; – ranks fourth, second and third respectively in fiscal year 2020 sales, based on the Wall Street consensus. The Aurora Cannabis is expected to be producing 625,000 kilos annually by the end of fiscal year 2020 (June 30, 2020), with Canopy Growth probably reaching 500,000 kilos a year north, and Aphria reaching its maximum annual output of 255,000 kilograms . average point of 2020. "Five of the six names are companies you'd probably expect to find as the top revenue producers.For example, the top three marijuana growers by peak annual production – Aurora Cannabis (NYSE: ACB), Canopy growth (NYSE: CGC)and Aphria (NYSE: APHA) – ranks fourth, second and third respectively in fiscal year 2020 sales, based on the Wall Street consensus. The Aurora Cannabis is expected to be producing 625,000 kilos annually by the end of fiscal year 2020 (June 30, 2020), with Canopy Growth probably reaching 500,000 kilos a year north, and Aphria reaching its maximum annual output of 255,000 kilograms . average point of 2020.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The canopy growth is expected to generate about $ 580 million sales in 2020, although the company still going to be losing some money as it expands to international markets and builds its infrastructure. Aphria, with a consensus estimate of $ 552 million in revenue, should be profitable, according to Wall Street. The big question mark is when the company's main facility, Aphria Diamond, will receive its cultivation license from Health Canada. And then there's the Aurora Cannabis, which despite $ 552 million in expected sales, could end up losing money as it also expands its infrastructure. "The canopy growth is expected to generate about $ 580 million in sales in 2020, although The company is still losing a bit of money as it expands to international markets and builds its infrastructure.Aphria, with a consensus estimate of US $ 552 million in revenue, is expected to be profitable, according to Wall Street. The company's flagship Aphria Diamond will receive its cultivation license from Health Canada and Aurora Cannabis, which despite US $ 552 million in expected sales, you may end up losing money because it also expands your infrastructure.

One Epidiolex bottle next to its packaging and two droppers.

Image Source: GW Pharmaceuticals.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Developer of cannabinoid drugs GW Pharmaceuticals (NASDAQ: GWPH) is the consensus on No. 6 pot stock with expected sales of $ 511 million. GW Pharmaceuticals launched Epidiolex, the first cannabis-derived drug approved by the FDA in early November, and appears to have a clear clue to sales in one of two indications where it was approved. In clinical trials, the leading drug from GW Pharmaceuticals reduced the frequency of baseline seizures by 30% to 40%, making it easier for the FDA give this innovative medicine a green light. "data-reactid =" 64 "> Cannabinoid drug developer GW Pharmaceuticals (NASDAQ: GWPH) is the consensus on No. 6 pot stock with expected sales of $ 511 million. GW Pharmaceuticals launched Epidiolex, the first cannabis-derived drug approved by the FDA in early November, and appears to have a clear clue to sales in one of two indications where it was approved. In clinical trials, the leading drug from GW Pharmaceuticals reduced the frequency of seizures by 30% to 40%, making it easier for the FDA to give the green light to this innovative drug.

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "US Multistandard Dispensary Operator Participation in cultivated areas (NASDAQ: ACRGF) It also makes the list in No. 5, with sales forecast in 2020 at $ 542 million. The acreage, which has retail, processing or manufacturing licenses in 20 states (on a pro forma basis), has agreed to be acquired by Canopy Growth on a contingent entitlement basis. The condition of the acquisition of Acreage is that the US government legalizes marijuana at the federal level. "Data-reactid =" 65 "> US Multi-Station Dispensary Operator Participation in cultivated areas (NASDAQ: ACRGF) It also makes the list in No. 5, with sales forecast in 2020 at $ 542 million. The acreage, which has retail, processing or manufacturing licenses in 20 states (on a pro forma basis), has agreed to be acquired by Canopy Growth based on contingent entitlement. The condition of the acquisition of Acreage is that the US government legalizes marijuana at the federal level.

This amazing marijuana stock can carry all marijuana stocks in 2020 sales

None of the above-mentioned five marijuana stocks with projected sales of at least $ 500 million by 2020 should surprise investors. But what may really shock him is knowing what Wall Street consensus estimates currently stand as the top revenue producer in the fiscal year 2020.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Drumroll, please: & nbsp;Cresco Labs (NASDAQ: CRLBF)"data-reactid =" 68 "> Drumroll, please: Cresco Labs (NASDAQ: CRLBF).

Cresco Labs is not only at the top of sales in 2020, according to forecasts, but is also not close. While No. 2 Canopy Growth and No. 6 GW Pharmaceuticals will generate $ 580 million and $ 511 million in sales, respectively, Cresco is in another CEP, with $ 738 million in revenue projected for 2020. And do not think for a moment that number is the result of a dishonest analyst getting off the rails. The four blocked sales estimates for 2020 range from $ 670 million to $ 775 million.

A gloved processor holding a freshly trimmed cannabis in his left hand extended.

Image Source: Getty Images.

So why do Cresco Labs and not, let's say, canopy growth at the top of the sales hierarchy? One big reason could be the attack on two Cresco fronts.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "First, Cresco is in the process of acquiring House of origin (NASDAQ: ORHOF) because what was a $ 823 million in share purchase agreement when first announced in early April. Origin House has the distinction of being one of the few owners of cannabis distribution licenses in California. Being in that niche position will allow Cresco to benefit from distribution revenue in the largest marijuana market in the US, and bring its own branded products to more than 500 dispensaries in California. The agreement has already been approved by the shareholders of Origin House and now awaits the OK of the US Department of Justice. "Data-reactid =" 92 "> First, Cresco is in the process of being acquired. House of origin (NASDAQ: ORHOF) so it was a $ 823 million stock deal when first announced in early April. Origin House has the distinction of being one of the few owners of cannabis distribution licenses in California. Being in that niche position will allow Cresco to benefit from distribution revenue in the largest marijuana market in the US, and bring its own branded products to more than 500 dispensaries in California. The agreement has already been approved by the shareholders of Origin House and now awaits the OK of the US Department of Justice.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Second, California, Cresco Labs holds 56 retail licenses and 23 farm licenses covering 11 states. some of the largest markets in the United StatesCresco Labs holds 56 retail licenses and, secondly, in addition to benefiting from Origin House's main distribution position in California, Cresco Labs has 56 23 increase farm licenses spanning 11 states As a dispensary operator of several states in some of the largest markets in the United States, one should note a significant increase in sales, which aggressively presses to open new retail stores.

It is not yet known if Wall Street forecasts are accurate, but for now it is Cresco Labs – not Canopy, Aurora or Aphria – which is the king of the cannabis hill in 2020.

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More of the heterogeneous fool "data-reactid =" 95 "> More of the heterogeneous fool

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sean Williams has no position in any of the aforementioned actions. Motley Fool recommends Origin House. The Motley Fool has a disclosure policy."data-reactid =" 100 ">Sean Williams has no position on any of the aforementioned actions. Motley Fool recommends Origin House. Motley Fool has a disclosure policy.


Source link