The cannabis industry has been the hot topic for investors for over a year now but the current lull in stock prices and the far away July 2018 legalization timeline has investors wary. Additionally, valuation prices are high and the companies have much to prove. Despite that, it is not too early to invest.
This article is for those who are hopeful of the long-term view and want to get in ahead of time. This article will compare the three front-runners of the Canadian cannabis industry, Canopy Growth Corp. (OTCPK:TWMJF), Aphria (NYSE:APH), and Aurora (OTCQX:ACBFF). Although these companies will soon have to prove themselves in a new environment, there is plenty to study right now. We will be comparing revenue growth, production capacity, valuations, and then making financial projections. The result will be a recommendation of Aurora followed by Canopy. Again this article is meant to compare competitors. The industry has the potential to be a 22.6B industry but the thesis for investing in Canadian cannabis is a separate topic and I encourage you to consider the risks.
Top 5 Canadian Stocks For 2018: Thor Industries Inc.(THO)
- [By Peter Graham]
A long term performance chart shows shares of Winnebago Industriesalong withmid cap peers Thor Industries, Inc (NYSE: THO) and LCI Industries (NYSE: LCII) all giving a very similar performance and largely taking off starting in 2016:
- [By Elizabeth Balboa]
Supply could come from any number of industry players, including Winnebago Industries, Inc. (NYSE: WGO), Thor Industries, Inc. (NYSE: THO), Polaris Industries Inc. (NYSE: PII) and Camping World Holdings Inc (NYSE: CWH). However, whether it comes from existing inventory and whether suppliers can meet the demand are yet to be seen.
- [By Dan Caplinger]
Finally, shares of Winnebago Industries dropped 6%. The maker of recreational vehicles has been under pressure ever since rival Thor Industries (NYSE:THO) reported its most recent quarterly results earlier this week, and Thor’s story led shareholders to sell off that stock. Yet although Winnebago is in the same business as Thor, some investors think that it could succeed where Thor failed, especially because the Winnebago brand name is much more valuable and has greater customer recognition that many of its competitors’ offerings. Winnebago will have its own chance to report its financial results later this month, and although many investors seem to be betting against the RV maker, others believe that Winnebago could easily make its competitive advantage against Thor and other manufacturers clear with a solid performance this quarter.
- [By WWW.MONEYSHOW.COM]
Thor Industries (THO) expects 2017 to be one of the strongest years for the RV industry since the 1970s.
The prospect of higher gasoline prices seems unlikely to derail the RV rebound, given that growth is being driven by smaller and more fuel-efficient motorized RVs and towable trailers.
Top 5 Canadian Stocks For 2018: Credit Suisse Group(CS)
- [By Money Morning News Team]
That’s why Krauth predicts the price of gold will hit $1,400 by the end of the year. Many analysts from banks likeCredit SuisseGroup AG (NYSE ADR: CS) even see gold going as high as $1,500.
- [By Paul R. La Monica]
European banks worse off than 2008? Lamensdorf is concerned about the exposure to bad loans (especially energy company debt) held by big banks such as Royal Bank of Scotland (RBS), Credit Suisse (CS) and Deutsche Bank (DB). He’s shorting all three.
- [By David Zeiler]
The federal government’s largesse isn’t restricted to U.S.-based companies, either. Foreign companies, including foreign banks, are also welcome. Credit Suisse Group AG (NYSE ADR: CS) got $225.1 billion, and UBS Group AG (NYSE: UBS) got $249.1 billion.
- [By Wayne Duggan] Related DB Deutsche Bank In The Tank Mike Khouw Sees Unusual Options Activity In Deutsche Bank 33 Large Banks On The Federal Reserve's Radar In 2016 (Seeking Alpha)
Related CS Earnings Scheduled For February 4, 2016 Blockchain Moves Forward In The Financial Industry Credit Suisse Group AG (CS) Tidjane Thiam on Q4 2015 Results – Earnings Call Transcript (Seeking Alpha)
The latest credit default swap (CDS) data from BMO Capital Markets indicate a number of investors are growing increasingly concerned about the one-year outlook for capital markets. In a new report, analyst Mark Steele discussed the recent surge in one-year CDS activity, and what it means for the market.
- [By Diane Alter]
The head underwriters for the ZTO IPO are Morgan Stanley (NYSE: MS) and Goldman Sachs Group Inc. (NYSE: GS). Also working on the deal are China Renaissance, Citigroup Inc. (NYSE: C), Credit Suisse Group AG (NYSE ADR: CS), and JPMorgan Chase & Co. (NYSE: JPM).
Top 5 Canadian Stocks For 2018: Wells Fargo & Company(WFC)
- [By Ben Levisohn]
Bank stocks have had quite a run since Donald Trump’s 2016 presidential election victory–such a run, in fact that Baird’s David George and team worry that most of the benefits of “potential improvement in macro growth, regulatory relief, and corporate tax reform” seem priced into their stocks. They recommend investors “selectively reduce bank exposure” but still like Wells Fargo (WFC), which they call a “top buy idea.” They explain why:
- [By Jon C. Ogg]
Wells Fargo & Co. (NYSE: WFC) was listed as 479.704 million shares in September, the same as in June and March. This was 470.29 million shares last September. As a reminder, it was documented that Buffett has filed to be allowed to increase his stake north of the 10% threshold with the SEC. Hejust recently confirmed that he did not sell Wells Fargo shares after the account opening scandal.
- [By Chris Lange]
Wells Fargo & Co. (NYSE: WFC) also is expected to report its most recently quarter results on Thursday. The consensus analyst estimates call for $0.97 in EPS and revenue of $22.3 billion. Shares of Wells Fargo closedat $54.84on Friday. The consensus price target is $59.07. The 52-week trading range is $43.55 to $59.99.
Top 5 Canadian Stocks For 2018: Silver Wheaton Corp(SLW)
- [By Rich Duprey]
Silver Wheaton (NYSE:SLW), of course, is a streamer like Sandstorm and Franco, but it is the largest in the precious-metals industry, and arguably the best-known, because its business model came to define what streaming is. Although it is known primarily for its silver contracts, Silver Wheaton also has sizable gold production that makes it worth your attention.
Top 5 Canadian Stocks For 2018: Encana Corporation(ECA)
- [By Paul Ausick]
Encana Corp. (NYSE: ECA) is rated Buy with an unchanged price target of $16. The EPS estimate for 2017 was lowered from $0.42 to $0.34, and the 2018 estimate was also lowered, from $1.47 to $1.28. The shares ended the weekat $11.44, in a 52-week range of $4.90 to $13.85. The consensus 12-month price target is $14.95.
- [By Money Morning News Team]
Canada-based Encana Corp. (NYSE: ECA) was the eighth top oil company stock in 2016, with a 131% gain over the year. ECA and its subsidiaries focus on developing, exploring, producing, and marketing natural gas, liquefied natural gas, and oil in North America.
- [By WWW.THESTREET.COM]
In the Lightning Round, Cramer was bullish on Vodafone Group (VOD) , Schlumberger (SLB) , Encana (ECA) , Arconic (ARNC) and AdvanSix (ASIX) .
Cramer was bearish on U.S. Silica Holdings (SLCA) .