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Aleafia Health (ALEAF) Fundamental AnalysisGood Afternoon Everyone, Over the past 2-3 years, I have been keeping a close eye on a list of cannabis stocks (medicinal and recreational) to see how they react to different market conditions. One company that has really peaked my interest lately is Aleafia Health (ALEAF). This is a company I have been watching since 2018 and has steadily moved downward since which may be worrisome. Many other Cannabis companies have seen their stock prices rebound in 2020. A further look into Aleafia Health's financials and mission shows this may not be the case for long. ALEAF seems to be lagging behind for no other reason than lack of volume/traction. Below are a few of the reasons Aleafia Health may be a viable add to any portfolio in the upcoming months. 1. International Expansion- ALEAF has successfully entered multiple international markers including Israel which is one of the largest cannabis markets in the world. ALEAF also has a presence in South America, Australia, and the EU. Their greenhouse operation was recently awarded EU compliance. ALEAF expects to begin international deliveries of their cannabis products in Q1 2021. 2. Branded Products- One of the main things I look for in a Cannabis Company is a branded product. Many of the large companies we saw collapse in 2019 were focused solely on growing and wholesaling dried marijuana flowers. An over-supply quickly formed and many of these companies struggled to sell their products for viable margins or at all. ALEAF, through Emblem and Symbl, has a portfolio of branded products to sell. ALEAF also has recently introduced fast acting sublingual strips and a high potency cannabis oil. They show no signs of slowing down their releases of in-house products. Consumers WILL learn to trust these cannabis brands the same way as other any other house hold name (Charmin, Bounty, Clorox, etc.). Cresco Labs (formerly Origin House and CannaRoyalty before that) was one of my first ventures into the market. CannaRoyaly was focused on building a brand in California. This led to their eventual acquisition by Cresco Labs. Cresco Labs now is the largest wholesaler of branded Marijuana products in the world. Cresco Labs has been on a tear this year. I really like that ALEAF is focusing on branding their products rather than just wholesaling them. Does anybody know the name of a company that produces bananas to wholesale without a name? Probably not, but I am sure you have heard of Chaquita Brands. Brands like Aurora will end up selling unbranded flowers (for low margins) to companies with established brands. These brands will slap a name on the dried product and create larger margins than wholesaling ever will. 3. Focus on Outdoor Grow Facilities- Aleafia Health was one of the first companies to realize the benefits of growing products outdoors. Many of ALEAF's products are derivatives (oils, capsules, etc.). Anyone that knows Marijuana Business knows that you DO NOT take high quality flowers and turn them into derivative products. You take the by-product (poor quality parts) of the plants to produce these derivatives. ALEAF is able to grow low-cost flowers outdoors to turn into these derivative products which they can sell for a premium price. Other companies have recently followed suit but ALEAF is far ahead in this territory as they have already harvested an outdoor grow at their Port Perry facility. The abundance of outdoor flowers from this facility has allowed ALEAF to expand their product portfolio faster than anticipated (see above). 4. Book Value per Share- Here is the big surprise with Aleafia Health. Aleafia's book price per share calculates to whopping $0.92. They are currently trading around the $0.40 range. This seems totally outrageous to me: for a company to have a shareholders equity of over $270M and have a market value of $122M. They are significantly undervalued based on this metric. Undervalued is a weird term to hear in 2020..... 5. On a small technical note, the price has recently moved above the 50, 100, and 240 averages. It appears price has formed a small resistance above these averages. Price has moved above the average before but quickly retreated. There is no fundamental reason for Aleafia Health to be trading where it is. I believe with the upcoming exports to international markets, ALEAF will see the catalysts it needs to gain some traction. This is a company that is expected to break even in 2021 and I believe they are well on track to do so with their rapid expansion into international markets. 2021 is shaping up to be an incredible year for the small company in my opinion and I look forward to following along. Thank you for reading. I have performed personal analysis on many Cannabis stocks over the past 3 years. If anyone finds interest in this write-up and would like to see more, I would be happy to share. *This is not trading advice but simply my analysis of Aleafia Health* *Please do your due diligence before trading*
OTC:ALEAFLong
by pofseur
2
Cronos Group Long Idea / Buy Toronto-based Cronos Group has always played it safe by not aggressively going after acquisitions, instead using cash to focus on research and development with its products. With steady revenue numbers, it has kept its balance sheet strong enough to at least survive the COVID-19 storm. At the moment, Cronos's business is predominantly in Canada, though its American and Israeli segments are growing quickly. While its Canadian segment hasn't expanded much this year, its total quarterly revenue is growing at a rate of 29.1% year over year, which is a bit faster than Canopy. But this growth doesn't change the profitability problem. That said, Cronos may not need to take dramatic action to reach profitability, thanks to a powerful new ally. In March of last year, Altria Group agreed to invest $1.8 billion in Cronos in exchange for a 45% share of the company. Altria is one of the world's largest tobacco product manufacturers, and its holdings include everything from major cigarette brands to newly famous e-cigarette and vaporizer companies like JUUL. So it's reasonable to expect that Altria will empower Cronos with its considerable strength in product development, brand-building, and supply chain management. As long as Altria continues to invest in improving its vaporizers, Cronos will benefit, and it will have a long-lasting competitive advantage as a result. From all this i am expecting the stock to outperform canopy growth in the long term +4years . And seeing the price reaching 100$ or even more by 2030 . Buy and Hold. Good Luck
NASDAQ:CRONLong
by MassineFariss
2
SNDL / Sundial Growers / Technical/fundamental analysis 30/11/20Long @ 0.399 / 2k shares Fundamental aspect of trade CALGARY, AB, Nov. 30, 2020 /PRNewswire/ - Sundial Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company") provides an update on the elimination of its senior secured second lien convertible notes and further improvements to its balance sheet. Yesterday the company announced update of eliminating its debt and the chart has reacted positively. Its debt has been reduced significantly over past year. Company has decent amount of cash (60M CAD) and has succesfully pursued transition from wholesale into branded sales. Long term outlook for profitability after recent ER is bullish for me. Focus on shareholder value and improving price. Techical aspect of the trade The price has been climbing premarket and then dropped into .48 - .49 before market opening. We saw a bear trap formed and then a big ascend to .70 - .85, then consolidating on .70. Price in German stock market traded on early Tuesday morning, 1.12.2020 indicates .79 to .85 price range after converted to USD. The price reacts to upcoming legalization bill vote in US House of Representatives, then by Senate. Other cannabis stocks are showing similiar moves. Chart is witnessing extreme volume - over 2 billion shares were traded intraday on 30th of November. Liquidity on pennystocks is the main driver for my trades. Fintel shows some very interesting names among institutional holders.
NASDAQ:SNDLLong
by JGenkov
Which cannabis should I own now Biden is the president? part 2Technical overview: VFF all time high was 17.45$ in March 21 2019. After COVID-19 our highest high is today’s 10.82$. Before we start analyzing the wave we are seeing in VFF we must mention a valuable fact ! the resistance level from March 2018 was just broken !! that is big ! it was broken by an igniting bar with a lot of volume and momentum behind it meaning investors belief in the mentioned stock is back and its high !now lets start analyzing the prediction: If we look at the FIB levels from the Highest high drop of march 2019 we can understand that VFF stock is on the 50% FIB line at the moment – that is very important, which makes me think about correction coming ,ill explain : So we are looking at an impulse wave in its 3rd stage (tends to be the strongest stage), and once the third stage will end we will go into a minor correction in the fourth stage –the end of the current stage can take us all the way to 13.5$ - 14$ and the correction is expected to be about 618 FIB level which will bring VFF stock to the 10.00$ line once again and prove that number to be a strong support level – remember psychological numbers are very important in the world of stocks. Meaning when the stock starts correcting most investors will put a limit order on the 10$ line to re-buy the stock at that value – which matches our 50% FIB line showing there is big demand for the stock to be at that price level. ALWAYS REMEMBER support levels are created as demand rises every time an asset reaches that level and the market thinks the asset is valued more -that’s why they are support level -if you use volume indicators you will usually find high volume around support areas. Back to VFF -so we are looking at a stock that on its 3rd stage expected to reach 13.5$ at least and we still have the 5th stage to go through – in my eyes from technical only this stock is expected to reach the 17$ mark before end of current year and that is without the bill passing, if the bill passes then this is well beyond its 20$ mark. Lets talk Fundamental : So the house was suppose to vote on a legalization bill in sept but because of covid it was postponed to after the elections, and the vote is scheduled for mid-December -if that bill passes then you should check your cannabis stock portfolio – we are looking at prices of the cannabis craze a year and half ago. Worth mentioning that in the beginning of Nov we had voters from Arizona, New Jersey, Montana approve ballot measures to legalize recreational marijuana, while south Dakota approved both recreational and pharmaceutical so legalization is here in my opinion it’s a matter of time till its marijuana being illegal days are behind us. I should mention other countries are following this as well, Israel for example is working on passing a legalization bill as we speak and there are many other countries coming next. VFF is a Canada based agricultural producer and except many vegetables they also grow a lot of cannabis. VFF acquired Pure Sunfarm Corp and owns 100% of its cannabis producing shares, which should not be taken lightly as they exist for over 25 years and sell various products from vapes, CBD oil, seeds and over 15 different kinds of marijuana species. Village farms has 9 million square miles of farms delivering produce under exclusive contract with these farmers. Their business model is financing part of the expenses to farmers in order to get them started with the initial capital needed, truly a great vision. VFF at the moment is the most valuable marijuana stock on the NASDAQ with a TTM P/S ratio of 2.9! To sum up : Although a lot think the bill will not be approved this December and may take more time till it does we are still sitting on a cash cow here – with VFF current growth rate and cheap stock price that in my eyes expected to cross 20$ Compare to other cannabis stocks:
NASDAQ:VFFLong
by FDGT_academy
5
[ACB] One for the Road... Gettin Back to My Roots B)-~I was caught up way too deep in my SPX/Volatility modeling and need a refresh! That we won't see the fruits of until next month. ACB FOMO spikes are what popped my bubble haha. Cannabis is way more interesting than volatility because it is at a 95%+ discount right now will be worth 10-50x within five years and shit just had a massive 4x swing in a few days, these stocks are cray cray and gonna be a wild ride up to Federal Legalization when we can all retire in our golden hammocks while blazin up ACB. This is just the start! B) I'm lovin this more simple modeling, it worked out fantastically well for assessing my SPCE and JMIA plays... SPCE: JMIA:
ALong
by ProfitHarvest
6
$TLRY - NR Picks Nov 22Tilray Inc (TLRY) es una compañía que se dedica al cultivo y distribución de cannabis medicinal, altamente beneficiada con la victoria de Joe Biden, lo que generó un upside en el precio de sus acciones de 110%, sin embargo, las marihuaneras después de una esperada corrección podrían presentar oportunidades interesantes, nosotros pudimos reconocer un canal entre los US$ 8.25 y US$6.90 donde podríamos percibir un retorno de aproximadamente 14% en las próximas semanas debido a que consideramos que el rally puede reactivarse, finalmente establecimos un stop loss prudente de 5% en caso el soporte se venza y la caída continúe.
NASDAQ:TLRYLong
by NewroadTrader
SNDL Sundial Fibonacci retracement completedAfter the Tech bubble and the EV bubble now it`s the time for the Cannabis market to shine! :) Sundial Growers engages in the production and distribution of flower, pre-rolls and vapes. It operates through the following segments: Cannabis, Ornamental Flowers, and Corporate. If you are interested to test some amazing BUY and SELL INDICATORS, which give the signal at the beginning of the candle, not at the end of it, just leave me a message.
NASDAQ:SNDLLong
by TopgOptions
12