Upcoming American Cannabis Earnings Reports Should Reinforce Strong Industry Fundamentals – New Cannabis Ventures


You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news.

Friends,

We are on the cusp of earnings season for cannabis companies, with some of the largest ones beginning to report financials on August 4th. It will be a very busy month! For an updated list of scheduled calls, you can refer to the New Cannabis Ventures Cannabis Investor Earnings Conference Call Calendar.

Before we get to the financial reports for the June quarter, the market will likely face some negative news when Tilray reports its Q4 ending in May next week. This is a complicated financial report, as the company completed the merger and renamed itself from Aphria to Tilray at the end of April. Only one month of legacy Tilray operations will be included. Further, the company is converting from Canadian dollars to U.S. dollars. Finally, the numbers aren’t likely to look too good based on data from Hifyre, which indicates a loss of share during the quarter at retail level. We have seen some services reporting a consensus that appears way too high at $193 million for the revenue during the quarter.

We are optimistic that the reports out of the U.S. will be strong and could attract investor attention. Here is how some of the largest MSOs are expected to report:

While we are limiting the number of companies included in this table, the smaller MSOs are expected to show robust growth as well. Additionally, ancillary companies are forecast to post strong results. The largest, Scotts Miracle-Gro, boosted guidance for its Hawthorne Gardening division in early June, suggesting that it expects full year growth in revenue to be 40-45%, up from previous guidance for 30-40% growth. Large ancillary companies Hydrofarm and GrowGeneration are expected to see annual revenue growth of 45% and 157%, respectively.

As we discussed last week, MSOs are doing just fine despite operating with the challenges of cannabis being federally illegal. Over the next month, we expect them to provide tangible evidence that this remains the case. The MSO stocks remain attractively valued. Hopefully the earnings reports serve as a catalyst for investors to take advantage of what we see as a good opportunity.


Plus has been building a leading branded cannabis product manufacturing operation in the largest and most competitive cannabis market, California. The company is steadfast in the branded product space by leveraging data to grow the company’s portfolio both organically and through acquisitions. Plus has released a number of new products over the past year, including strain-specific gummies, hash gummies in partnership with Biscotti Brands and a product line focused on sleep. Through its partnership with TFF Pharmaceuticals, Plus is developing new powder inhalation technology. This form factor could be a healthier and faster alternative to vaping, according to the company.

Get up to speed by visiting the PLUS Investor Dashboard that we maintain on their behalf as a client of New Cannabis Ventures. Click the blue Follow Company button in order to stay up to date with their progress.


New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:


To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Get ahead of the crowd! If you are a cannabis investor and find value in our Sunday newsletters, subscribe to 420 Investor, Alan’s comprehensive stock due diligence platform since 2013. Gain immediate access to real-time and in-depth information and market intelligence about the publicly traded cannabis sector, including daily videos, weekly chats, model portfolios, a community forum and much more.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers as well as the American Cannabis Operator Index and the Ancillary Cannabis Index.

View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks that generate industry sales of more than US$12.5M per quarter.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Sincerely,

Alan & Joel

Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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