With Canadian-based marijuana companies expanding their global footprint as the sector continues to expand, here are three stocks now trading on U.S. indices that you might want to keep an eye on. One reported quarterly earnings last week, and two are set to report this week.
Tilray
Tilray Inc (NASDAQ:TLRY)’s fourth quarter results released March 18 reported a 110-percent uptick in revenues in 2018, reaching $43.1 million (C$56.4 million). Revenues for the fourth quarter reached $15.5 million (C$20.9 million), a 203.8-percent increased compare with fourth-quarter results in 2017. The improvement is said to have been driven by bulk sales, the legalization of recreational use in Canada and accelerated distribution to export markets.
Net loss for the year was $67.7 million, or $0.82 per share, compared with $7.8 million, or $0.10 per share, in 2017. Net loss for the quarter was $31.0 million, or $0.33 per share, compared with $3.0 million, or $0.04 per share, for the fourth quarter of 2017.
Considered a global leader in cannabis research, cultivation and distribution, the British Columbia-based firm had a busy year. Among its expansion and strategic partnership deals in the year, it signed a deal with Sandoz, a division of Novartis, to increase access to medical cannabis to patients in need across the globe. It also inked a research and development partnership with Anheuser-Busch InBev, the world’s largest brewer, to develop non-alcoholic THC and CBD beverages. THC is the element in pot that produces the so-called ‘high,’ while CBD is purported to contain medicinal benefits.
Tilray also announced a long-term revenue-sharing deal with Authentic Brands Group, a New York-based brand development company, to leverage its portfolio of brands to develop, market and distribute consumer cannabis products around the world. Authentic Brands’ stable of brands includes Nine West, Juicy Couture and TapOut. The partnership will focus on CBD products in the United States and THC/CBD products in Canada, and other markets where they are legal.
Tilray also made headlines when it bought Manitoba Harvest, a hemp and natural food producer, for $317 million (C$419 million). Manitoba Harvest, the maker of the enormously popular brand of Hemp Hearts, distributes its products in more than 16,000 retail outlets in the U.S. and Canada.
Since reporting, Tilray stocks on the Nasdaq have dropped from $73.20 to $67.16 before today’s open.
Stocks hit an all-time high of $214.06 in September 2018, about a month before marijuana was legalized in Canada.
Cronos Group
Cronos Group Inc (NASDAQ:CRON) Inc (TO:CRON) will report its fourth quarter results March 26, but some analysts have predicted there will be little to stimulate excitement, despite the company generating headlines with a $1.8-billion cash infusion from Altria Group (NYSE:MO) – the second largest deal in the Canadian marijuana sector.
Analysts will be looking to see how much space it takes in the recreational cannabis market, including shipments to wholesalers, and how quickly its costs are rising.
Cronos stock closed Friday at $20.54 on the Nasdaq and C$27.47 on the S&P/TSX Composite. The stock price has almost doubled in the last three months on news of the Altria investment.
In Q3 earnings, it reported revenues of $3.8 million, compared with $1.3 million in the same period the previous year.
CannTrust Holdings
The third stock in this sector to watch this week is CannTrust Holdings Inc (NYSE:CTST) (TO:TRST), which is set to report March 28 before the market opens. The results will cover the period ending on Dec. 31, 2018.
Although it only traded in Canada in 2018, investors in the U.S. might want to take a closer look, as this cannabis producer began trading on the New York Stock Exchange on Feb. 20, 2019. The company is heavily focused on research and is developing nanotechnology to be used in the development of new products in the medical, beauty, wellness and pet markets, as well as in the recreational space.
CannTrust stocks closed Friday at $13.31 on the Toronto market, and at US$9.63 on New York Stock Exchange. It has a market cap of $1.02 billion.