It would be an understatement to say that Canadian pot producer Aurora Cannabis (NYSE: ACB) is having a tough go. The company is coming off a disappointing fourth quarter in which its sales declined 5% from the previous period, and it is forecasting revenue to continue its fall in the next quarter. It has a new CEO, but there are no signs that the leadership switch will provide any immediate fixes. Its shares are already down more than 80% this year and could continue to fall even further. Needless to say, this is not what investors were hoping for.

When billionaire investor Nelson Peltz joined Aurora in 2019, many investors saw him as someone who could add stability and unlock growth opportunities, by using his connections to broker a deal with a company from another industry, not unlike the arrangement rival Canopy Growth (NYSE: CGC) has with Constellation Brands (NYSE: STZ). But since coming aboard, there haven’t been any hoped-for blockbuster deals. Now that he’s resigned, it’s hard not to look back on Peltz’s time with the company as a disappointment. Let’s take a look at what factors may have impacted his ability to make a deal.

Two men, one wearing a black suit and the other in a white shirt, shake hands.

Image source: Getty Images

There were deals happening in the beverage industry, but Aurora stayed on the sidelines

The bulk of the deals in the cannabis industry so far have involved beverage companies looking to tap into a new segment: cannabis beverages. Besides Constellation and Canopy Growth, other notable deals include Tilray‘s partnership with Anheuser-Busch InBev and HEXO‘s joint venture with Molson Coors. Constellation’s situation, however, is the only one in which a company actually spent billions of dollars investing directly in a cannabis producer. It’s been evident over the past few years that if you’re a cannabis company

Researchers tested a new form of medical marijuana that treats pain but doesn’t get the user high, prompting patients who need medical marijuana to declare, ‘Thank you?’ – Jimmy Fallon

When Vegas steps in, you know it will be big, loud, and flashy, and Planet 13 Holdings Inc. (OTCQX:PLNHF) exemplifies this perfectly.

Planet 13 Holdings Inc. is a vertically integrated cannabis company based in Las Vegas, Nevada. The company is probably best known for its massive cannabis superstore located just off the Vegas strip. Their flagship store recorded an impressive $63M in revenue and over one million visitors in 2019, accounting for nearly 10% of all of Nevada’s cannabis sales that year.

A store of this kind would have been unheard of only a few years ago. At 13,000 square feet, this complex is massive. Consumers have access to a coffee shop, bistro, event space, and, of course, the dispensary itself.

It’s far closer to a ‘cannabis experience.’ Something you’d expect only Las Vegas to birth. It’s a destination in and of itself for cannabis connoisseurs visiting Sin City. Not only that, but much of the product sold in this superstore is produced directly by Planet 13 Holdings Inc. Nearly 30% of all sales in the superstore were inhouse brands.

Source: Planet 13 September 2020 Corporate Presentation

Compared to its peers, PLNHF has performed remarkably well since its inception in 2018, though the last two months have seen the name fall by over 25%. However, this recent drop may offer an opportunity to obtain exposure to PLNHF at a discounted price.

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Source: YCharts

Like most businesses, Planet 13 didn’t escape the economic pain brought on by COVID. Q2 2020 revenue was down at $10.76M compared to the previous four quarters, which all surpassed $16M. Lockdowns all but closed their superstore



a hand holding a plant: The More CGC Stock Flounders, the Less Constellation Can Handle It


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The More CGC Stock Flounders, the Less Constellation Can Handle It

As this investment story concerns a cannabis company, Canopy Growth Corp. (NYSE: CGC), I’ll do all I can to avoid puns like “cannabis stock high,” “cannabis company goes to pot,” “this weed is smoking,” “seed money” – but it won’t be easy. After all, for a certain age demographic, cannabis stocks conjure images of Cheech & Chong strolling the trading floor in crummy blue jean vests, surrounded by an entourage of admiring traders and a huge honking cloud of smoke. But here are the makings of a serious appraisal: the palpable reality of CGC stock as a growth opportunity.



a hand holding a plant: The More CGC Stock Flounders, the Less Constellation Can Handle It


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The More CGC Stock Flounders, the Less Constellation Can Handle It

Uh oh, was that another pun?

First, the reality: Cannabis stocks are fraught with uncertainty and CGC is no exception. This is definitely, definitely not to say that they’re risky or hands-off investments; more that the sector is relatively new, putting it on par with electric vehicles, space tourism and ride hailing services. We don’t have much data to leverage and can only say that right now, EVs are soaring and the likes of Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) are stumbling. Come back in a few years and it’s possible the sectors will pull up even or even swap places. There’s just not enough sector-wide share price and revenue history to meaningfully extrapolate.

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But beyond this, cannabis itself is complicated by conflicting legalities. As of January, 11 states have legalized marijuana for adults 21 and over while 33 states allow it for medical use. Yet on a national level, marijuana remains illegal and this creates a sort of double jeopardy. No matter whether your state

(Reuters) – Bruce Linton-led Gage Cannabis Co plans to list on the Canadian stock market in the first quarter of 2021, its president told Reuters, as the U.S.-based dispensary operator looks to capitalize on strong demand for weed during lockdowns.

Linton joined Gage as executive chairman in 2019, months after being ousted from the board of Canopy Growth Corp

– a business he founded in 2013, took public the next year and transformed into the most valued cannabis company through a string of deals. (https://reut.rs/30rhknz)

Gage, which currently focuses solely on the Michigan market, is expecting sales of around $13.2 million in the third quarter, up 11% from the previous three months.

“We have seen tremendous growth in the Michigan market in 2020 and Gage has been diligent in capturing that growth through its operating assets,” said Fabian Monaco, president of Gage Cannabis.

Weed companies in the United States have reaped the benefits of cannabis businesses being allowed to stay open as essential services during the COVID-19 restrictions.

The company outlined plans to open eight to ten new stores by the end of this year and will consider expanding to markets beyond Michigan next year, according to a presentation to investors reviewed by Reuters.

Gage has already filed an offering circular with the U.S. Securities and Exchange Commission, indicating it could launch a “regulation A+” offering in the country before the Canada debut.

A regulation A+ offering, also called a mini-IPO, allows companies to raise capital without actually listing the shares on a stock exchange.

Companies whose businesses involve marijuana cultivation are not yet allowed to list in the United States as the plant remains illegal at the federal level.

Gage-branded products are also sold in Canada by Radicle Cannabis, which is backed by Canopy Rivers.

Canopy Growth holds a

Trulieve Cannabis (OTC: TCNNF) is sizzling hot. So far this year, its share price has soared nearly 60%. That’s a far better performance than any other major U.S. or Canadian cannabis producer, and it comes on the heels of Trulieve’s 47% gain last year. 

But such tremendous momentum raises the question of whether the company can keep the good times rolling. Is it too late to buy Trulieve Cannabis? Or is the marijuana stock poised to deliver more fantastic gains in the future?

"Now Entering Florida" road sign with a cannabis leaf painted on it.

Image source: Getty Images.

A growth machine

Perhaps the best argument for why it’s not too late to buy Trulieve is that the company continues to be a growth machine. Trulieve reported sales of $120.8 million in the second quarter, a 26% jump from the previous quarter and a record high for the company. 

This growth seems likely to continue, at least in the near term. Trulieve raised its full-year 2020 revenue guidance to between $465 million and $485 million. The midpoint of that range is nearly 22% higher than the midpoint of the company’s previous full-year revenue outlook. It’s also an 88% increase from Trulieve’s total revenue last year. 

Trulieve continues to dominate Florida’s medical cannabis market with a market share of close to 50%. It’s adding new stores in the Sunshine State, which could further cement its lead. At the same time, Trulieve is expanding outside of its home state. The company now has operations in four other states: California, Connecticut, Massachusetts, and Pennsylvania. 

Unlike many of its peers, Trulieve is already consistently profitable. It posted net income of $6.6 million in Q2. The company’s Q2 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $60.5 million, marking the tenth consecutive quarter of positive results. Trulieve even ranks as the second most profitable pot