Out Fox The $treet

  Canopy Growth Corporation remains in a downward spiral as revenues plunge causing the Canadian cannabis company to start another restructuring. The company reported another horrible adjusted EBITDA loss. The stock is expensive compared to the cannabis space and should be sold at all price levels. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   The Canadian cannabis space continues to destroy shareholder wealth with the horrible results from industry leader  Canopy Growth Corporation  ( NASDAQ: CGC ). The company appears to have completely abandoned past plans and embarked on a  full restructuring with the Canadian business after years of destroying shareholder wealth. My  investment thesis  remains ultra Bearish on CGC stock until all restructurings end and the business returns to growth. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Plea...

HEXO has seen a massive rally this year following the stock price collapsing in December during a reverse split. The Canadian cannabis company has cut the adjusted EBITDA losses, but the company faces deteriorating sales due to the reduced spending levels. The stock has a minimal market value of $70 million, but the large convertible debt level makes the stock a Sell into the rally. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   HEXO  ( NASDAQ: HEXO ) has been on a hot streak since the stock collapsed following a reverse split in December. The Canadian cannabis company has substantially cut costs leading to a major dip in revenues in the last few quarters. My  investment thesis  is Bearish on the stock with a questionable path forward following a major restructuring. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for mor...

Tilray Brands fell after reporting another weak quarter for the period ending in August. The Canadian cannabis stock had rallied on hopes the U.S. would finally legalized weed. The stock isn't the best way to play U.S. legalization with a whole host of smaller U.S. MSOs the ones likely to see the biggest gains. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »     Tilray Brands  ( NASDAQ: TLRY ) has been one of the most loved cannabis stocks, yet the company hasn't produced any results warranting the love. The Canadian LP reported another weak quarter following a rally on the  marijuana reforms announced by President Biden. My  investment thesis  remains Bearish on the stock, as investors continue to rush into the stock on unwarranted hype on U.S. legalization hopes. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer pa...

Tilray formed a strategic alliance with HEXO in an odd move to help keep a top Canadian cannabis competitor alive. HEXO just reported another weak quarter where revenues missed expectations, but the company did cut the EBITDA losses. The stock remains far too expensive trading at over 10x actual cannabis sales while the competition in Canada remains fierce. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » The biggest issue with the Canadian cannabis market has been too much cultivation leading to oversupply. The new  Tilray Brands  ( NASDAQ: TLRY ) has attempted to consolidate the industry with the acquisition of Aphria, but the sector continues to struggle as much as prior. The  new deal  to help keep  HEXO  ( HEXO ) in business keeps our  investment thesis  Bearish on Tilray Brands. Read the full article on Seeking Alpha.  Disclosure: No position m...

  Tilray reported another quarter of highly disappointing results, yet the stock again rallied initially on the numbers. The Canadian cannabis company missed analyst revenue targets by ~10%. The stock remains far too expensive at over 12x key cannabis and beverage revenues. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » Tilray  ( TLRY ) jumped on FQ2'22 results that somehow impressed the market. The cannabis L.P. actually reported declining cannabis revenues and a meager EBITDA profit after ignoring certain costs that are starting to recur. My  investment thesis  remains negative on the Canadian cannabis stock, as the company fails to grow cannabis revenues. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

  HEXO reported weak FQ1 results for the period ending Oct. 31. The addition of the businesses of Redecan and 48North didn't improve the financials or move the company any closer to being cash flow positive. The stock isn't touchable with the senior debt overhang and another restructuring in the works. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.    Learn More » As with most consolidations in the Canadian cannabis space, the HEXO ( HEXO ) plan failed miserably. The LP acquired three separate businesses and cratered their stock in the process. My  investment thesis  remains Neutral on the stock following the collapse below $1 and too much uncertainty surrounding the business. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

  Canopy Growth makes another investment to enter the U.S. THC market when federally permissible. Wana Brands doesn't have a dominant market position in edibles to justify an aggressive move. The Canadian cannabis company will no longer have a net cash position following this deal and another quarter of operating losses. Even down at the lows, the stock still trades at a very expensive P/S multiple of 10x FY22 sales targets. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » The Canadian cannabis LPs have consistently overspent on acquisitions and facilities to build empires. The latest deal by  Canopy Growth  ( CGC ) repeats on this history of aggressively attempting to buy growth when patience is needed. My  investment thesis  remains Bearish on the stock as the company makes another upfront payment to enter the U.S. market. Read the full article on Seeking Alpha. ...

  Tilray continues to urge shareholders to approve Proposal 1 to lift the authorized share count to 990 million shares. The Canadian cannabis company has proposed a plan to boost FY24 (June) revenue to $4 billion while current analyst estimates are only $1.37 billion. Investors are rightfully balking at the company boosting the authorized shares by ~250 million when organic growth is preferred. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » Tilray  ( TLRY ) had a huge day back in July following earnings as the Canadian cannabis company promoted a $4 billion revenue future in a just a few years. The enormous growth potential propelled the stock higher, but Tilray has to obtain these revenues via major acquisitions causing some heartburn amongst shareholders. My  investment thesis  remains Bearish on the stock due to the rich valuation and major M&A plans ahead. Read the ...

  HEXO announced a surprisingly large equity offering causing the stock to collapse. The company sold at least 47.5 million units at just $2.95 per share while the stock traded above $7 as recently as June. The stock is cheap here, but shareholders face massive integration risk. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » While cannabis stocks have traded weak since the February peak,  HEXO  ( HEXO ) tops the list with a massive 27.5% loss on just Friday alone. The company has turned a promising acquisition of private Canadian firm Redecan into a horribly timed fund raising. My  investment thesis  remains Bullish on the stock after this massive dip, though my view remains concerned about integration risks of the three acquisitions. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details....

  Tilray reported misleading revenue growth in FQ4 due to not comparing pro-forma revenue from the merger for the quarter. The Canadian cannabis company is still struggling to grow due to lockdowns in Canada and Germany. The stock trades at substantial premium P/S multiple while risks exist on a U.S. acquisition plan. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » Before the market open,  Tilray  ( TLRY )  reported FQ4 results  to provide the first quarterly results of the combined Aphria and Tilray operations. Unfortunately, the Canadian cannabis company failed to provide pro-forma numbers for the combination. My  investment thesis  remains Bearish on the stock after the 20% rally in early trading. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Jul...

Aurora Cannabis was in talks with Aphria on a merger of equals. The deal was estimated to generate C$200 million in synergies. The stocks could have had up to 50% upside on a merger. Over the last week,  Aurora Cannabis  ( ACB ) and  Aphria  ( APHA ) apparently discussed a  merger  with talks falling apart. A merger would've made the new entity into a global giant in the cannabis space after the Canadians have lost a ton of market leadership to U.S. firms in the last year. The synergies alone could make this a no brainer deal as Aurora Cannabis already had made an impressive transformation on costs making the  long-term investment thesis  on the stock more bullish. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Canopy Growth remains locked out of the major cannabis opportunities in the U.S. The Acreage deal is failing due to a lack of funding for the MSO. The company is still aggressively spending chasing smaller global opportunities in competitive markets. The stock is far overvalued here with a $6.5 billion valuation, over 16x FY21 sales estimates. On June 22,  Canopy Growth  ( CGC ) hosted a virtual investor meeting where the company discussed the future of cannabis in great detail. Whether intentional or not, the large Canadian cannabis company highlighted how the business model continues to waste too much money chasing the wrong markets. My  investment thesis  remains highly negative on the stock here with a market cap of nearly $6.5 billion and a long road to profits ahead. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details. Update 6/25 Canopy Growth just modified the deal...

Aurora Cannabis should benefit from expanded Canadian cannabis retail store openings in 2020. The Canadian market remains very inefficient with key provinces of Ontario and Quebec lacking retail stores. Even based on planned store expansions in 2020, the company would only see a 25% boost to consumer cannabis revenues. The stock has a $2 billion valuation with analysts only forecasting sales reaching $356 million in FY21. As  Aurora Cannabis  ( ACB ) flounders around $1.50, the negatives surrounding the stock shouldn't completely overshadow the opportunities for the Canadian cannabis market in 2020. The company has substantial catalysts in 2020 including additional retail stores in Canada, the rollout of Cannabis 2.0 products and global expansion including the U.S. CBD market. This article is the first in a series of articles discussing the 2020 catalysts for Aurora Cannabis with a focus on the opportunity for more retail stores in Canada. Read the full ...