Shares of Canopy Growth (NYSE:CGC) were jumping 15% higher as of 11:51 a.m. EST on Wednesday, with two of its peers also enjoying nice gains. Aurora Cannabis (NYSE:ACB) shares were also up 15%, while shares of HEXO (NYSE:HEXO) rose 8.8% after vaulting as much as 14.8% higher earlier in the day.
There were several reasons for the upward moves for these Canadian marijuana stocks. Bank of America analyst Christopher Carey upgraded Canopy Growth stock to a buy rating from a neutral rating. This upgrade appears to have had a halo effect to some extent on Canopy’s peers, especially Aurora and HEXO. In addition, Aurora announced on Tuesday that 94% of the holders of its convertible debentures that mature in March 2020 have elected to accept the company’s offer to convert the debt into stock.
It’s great that Aurora won’t have to scramble to raise 230 million Canadian dollars to pay off its debt within the next few months. It’s also encouraging that a top analyst is now more positive about Canopy Growth. But the underlying reason behind these three stocks’ jumps today is that some investors now think that the sell-off from the last several months that’s affected nearly every Canadian marijuana stock finally went too far….CLICK for complete article
It’s now just over a year since Canada legalized recreational use of marijuana, and Wall Street is thoroughly disappointed.
What was supposed to have been a massive killing in one of the hottest new markets has been worse than lackluster.
A much clearer, if not dire picture emerges with the culling of cannabis stocks following Q3 earnings releases.
The disastrous results show a lineup of companies who haven’t been able to come up with a good strategy for growing, packaging and distributing. They haven’t been able to make legal weed more attractive than illegal weed. Perhaps it was a bit presumptuous to simply think that making it legal would bring all weed smokers to their doorsteps….CLICK for complete article
Like the vultures Elizabeth Warren claims they are, billionaires are now circling over the soon-to-be dead corpses of companies in the U.S. oil and gas patch, as they look to pick up assets on the cheap.
This comes at the same time that the volatility (read: decimation) of the oil and gas industry has scared off many other investors, according to Bloomberg.
Names like Sam Zell, Tom Barrack Jr., and Jerry Jones are all being tossed around as investors who are looking at distressed assets. Zell has teamed up with Barrack Jr. to look at oil assets in California, Colorado and Texas. Jones’ company, Comstock Resources, is looking to acquire natural gas assets from Chesapeake Energy.
Companies are eager to sell at cheap prices to try and get ahead of an upcoming credit crunch.
The U.S. has become the world’s largest oil producer due to the shale revolution, but the investors behind that drive have little to show for their efforts. Many companies have plowed through their cash while providing poor returns, as independent oil and gas drillers are down more than 40% since 2014.
Easy money enabled the boom, and we have noted here on Zero Hedge over the last several years how poor resource allocation, crowded wells and overly optimistic estimates have caused a turn for the worse for U.S. oil and gas investors. Now, its time to face the consequences.
With oil prices still low, the number of active drilling rigs in the U.S. has declined and some of the biggest players in the industry have lowered their growth plans… CLICK for complete article
“Despite concerns in the third quarter, bears never had a strong argument for why stocks were overvalued and the major indexes simply traded sideways for much of the last six months, wrote Robert Sluymer, technical strategist at Fundstrat Global Advisors.
“We ‘continue to view the market cycle as being a normal pause in an ongoing secular bull market similar to what developed in 2016, 2011 and the ‘cycle’ pullbacks that developed during the secular bull markets in the 50s-60s and 80s-90s.”
It is an interesting point. The current bull market certainly seems unstoppable, but the question that must be answered, fundamentally, is if this is indeed a “secular bull market,” and if so, “where are we” within that cycle.
What is a “secular market?”
“A secular market trend is a long-term trend which lasts 5 to 25 years and consists of a series of primary trends. A secular bear market consists of smaller bull markets and larger bear markets; a secular bull market consists of larger bull markets and smaller bear markets.”
In a “secular bull’ market, the prevailing trend is “bullish” or upward-moving. In a “secular bear” the market tends to trend sideways with severe drawdowns and sharp rallies…CLICK for complete article
Ousted Uber co-founder Travis Kalanick sold more than half a billion dollars’ worth of stock last week, and many expect he will be redirecting that cash windfall to his new startup.
Kalanick co-founded Uber in 2009 but was ousted as CEO in 2017 after a series of scandals rocked the company. However, he still owns 4 percent of the rideshare giant and remains a director on its board.