Why Tilray Inc. Shares Soared While Canopy Growth and Cronos Group Sank Today - Canadanewsmedia
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Why Tilray Inc. Shares Soared While Canopy Growth and Cronos Group Sank Today

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What happened

Shares of Tilray Inc. (NASDAQ:TLRY) were up 13.9%, while Canopy Growth (NYSE:CGC) was down 11.6% and Cronos Group (NASDAQ:CRON) slipped 10.3% as of 3:05 p.m. EDT on Thursday. Tilray reported earlier in the day that it had received regulatory permits to export medical cannabis flower to Germany.

With this approval, Tilray becomes the first — and, for now, the only — marijuana producer to export both cannabis oil and cannabis flower products to Germany. Canopy Growth and Cronos Group currently supply cannabis flower products to the German market.

Image source: Getty Images.

So what

It’s certainly a big deal for Tilray to get the green light for exporting cannabis flower products to Germany. The country is the largest marijuana market outside North America. Arcview Market Research and BDS Analytics project that total cannabis sales in Germany will increase to $1.6 billion by 2022.

There are also some bragging rights for Tilray in becoming the first company to gain approval for providing both cannabis oil and flower products to Germany. You can bet that Canopy Growth and Cronos Group would have loved to claim first-mover status in the important European market.

Tilray also now has even greater bragging rights. With today’s stock-price moves, it has replaced Canopy Growth as the biggest marijuana stock in the world in terms of market cap. Canopy stood at the top of cannabis industry valuation for most of the last two years.

However, I think that Tilray’s big jump in share price and the declines for Canopy Growth and Cronos Group were overdone. The cumulative swing in market caps of more than $2 billion on today’s news simply isn’t warranted for what is likely only a temporary advantage for Tilray.

Canopy and Cronos are both angling to supply cannabis oil products to Germany as well. And while Tilray reported that around 5% of its total Q2 revenue of $9.7 million came from international sales (primarily in Germany), Canopy announced that the German market accounted for 14% of its product revenue: 25.9 million Canadian dollars. You don’t have to do currency conversions to know that Canopy has an advantage over Tilray in the important European market where it counts: in cold, hard dollars.  

Now what

Everything is going gangbusters for Tilray right now. But I think it’s hard to make a solid case that the company now really merits a market cap of over $11 billion.

It’s also a real stretch to argue that Tilray should be worth more than Canopy Growth. After all, Canopy claims higher sales and greater production capacity. It also has a lot more cash, thanks to the recent $4 billion investment from Constellation Brands, not to mention the advantages of partnering with that leading alcoholic beverage company.

I have said for several weeks that Tilray’s share price could keep climbing, but that its current rate of momentum is destined to come to an end. That’s still my view. What about Canopy and Cronos? Both were due for a pullback, but I don’t think that today’s news is really a good reason for the stocks to drop significantly.

Over the long run, I remain optimistic about the prospects for large marijuana growers like Canopy, Cronos, and Tilray. But investors looking to jump aboard the Canadian marijuana-stock train should be very careful. This locomotive is already headed down the tracks at breakneck speed — and the train could be derailed at some point in the not-too-distant future. I suspect that Tilray will be the first railcar off the tracks.

Editor’s note: A previous version of this article incorrectly stated that Canopy Growth and Cronos Group are seeking to supply cannabis flower to the German market rather than cannabis oils. The Fool regrets the error.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Tesla testing out new Autopilot features like roundabout navigation – MobileSyrup

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Tesla CEO Elon Musk has tweeted that new features are already being tested for the next stage of Autopilot, including traffic light stops, roundabout navigation and more.

Musk initially shared a tweet encouraging drivers that own a Tesla manufactured within the last two years to test out the recently released ‘Navigate on Autopilot’ feature.

The version of Navigate on Autopilot available now is a step above the regular Autopilot since it now passes slower vehicles on the highway and can also navigate highway on-ramps and off-ramps.

The next update doesn’t bring full autonomous driving to the EVs, but take things a step closer.

The tests that Musk mentions are preparing to make Tesla’s understand stop signs and traffic lights, as well as roundabouts.

He even says that Tesla cars will soon be able to drive from the user’s home to, for example, a parking lot at work, without any driver input at all.

Source: Twitter

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Ford's F-350 is the top choice for Canada's thieves: Report – BNNBloomberg.ca

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Do you know where your truck is?

You might want to double check where your car is parked following a study released Tuesday by the Insurance Bureau of Canada found that high-end trucks and sport-utility vehicles were the most-stolen vehicles in Canada in 2017.

The most-stolen vehicle was the 2015 Lexus GX460 SUV, but eight of the 10 most-stolen were different versions of the Ford F-350.

“Automobile theft is much more than an insurance problem; it’s an expensive social menace,” IBC wrote in its report. “Each year, automobile theft costs Canadians close to $1 billion, including $542 million for insurers to fix or replace stolen vehicles, $250 million in police, health care and court system costs and millions more for correctional services.”

According to IBC, most of the vehicles being stolen are being flipped into the used car market.

“Stolen vehicles may be sold to consumers who don’t know they are buying a stolen car, scrapped for parts or used to commit another crime,” IBC wrote in the report. “Often, stolen vehicles are smuggled out of the country.”

New Brunswick saw the highest increase in vehicle theft among Canada’s provinces, with a 28 per cent increase last year. Ontario followed with a 15 per cent jump.

IBC also noted that this is the time of year that vehicle-owners need to be most vigilant about keeping an eye on their wheels.

“New Year’s Day is the most common time for vehicles to be stolen,” IBC wrote in the report. “Since people tend to travel over the holidays in cars filled with gifts, it is important to be vigilant and keep a close watch on your vehicle over the festive season.”

The Top 10:

  1. 2015 Lexus GX460
  2. 2007 Ford F-350
  3. 2006 Ford F-350
  4. 2005 Ford F-350
  5. 2001 Ford F-350
  6. 2003 Ford F-350
  7. 2004 Ford F-350
  8. 2016 Toyota 4Runner
  9. 2002 Ford F-350
  10. 2006 Ford F-250

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Who is Meng Wanzhou, the Chinese exec wanted by the US? – CNN

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The 46-year-old executive was arrested December 1 in Canada, and faces extradition to the United States. After news of her arrest broke late December 5, Meng’s face was splashed across the internet.
Meng is the daughter of Huawei’s billionaire founder, Ren Zhangfei, and her case threatens to ramp up tensions between Washington and Beijing.
“The fact that this is Ren’s daughter and a very senior official in the company sends a very strong message to China: no one is above US law and we will reach out anywhere in the world and arrest you if you break the law,” said Paul Triolo, the head of global tech policy at risk consultancy Eurasia Group.

Tipped for the top?

Despite her position as a senior executive at Huawei, China’s largest smartphone and telecommunications equipment maker, little is known about Meng and her rise through the ranks at the company. It’s not traded on a stock exchange, and its executives are notoriously media shy.
Huawei exec's arrest opens a new front in the US-China trade war
Aside from a brief stint at state-run China Construction Bank after graduating from college in 1992, Meng has spent her entire career at her father’s company.
Her brother, who is known as both Meng Ping and Ren Ping, works at a Huawei subsidiary. The siblings’ roles at the company have fueled speculation that they are being groomed to take over from their father.
In March, Huawei shook up its top ranks, making the founder’s daughter one of four vice chairs of the board. The promotion supported the idea she could one day lead the company.
But Huawei’s founder has repeatedly denied the existence of a succession plan built around his children.
Asked about it in 2010, Ren told Chinese business news site Caixin: “This plan doesn’t exist. It’s too ridiculous to respond to.” In a letter to employees in 2013, he reportedly said his children lacked the vision, character and ambition to lead Huawei.
According to its most recent annual report, Huawei is a private company with Ren holding 1.4% of its shares, and the rest owned by more than 80,000 company employees. Ren, 74, is worth $3.4 billion, according to Forbes.
Meng Wanzhou speaking at a conference in 2014. She has been CFO of Huawei since at least 2011.Meng Wanzhou speaking at a conference in 2014. She has been CFO of Huawei since at least 2011.

From answering phones to finance chief

Until recently Meng, like her father, rarely spoke to the media.
But in 2013, she gave an interview to 21st Century Business Herald, a Chinese newspaper. She said she was married with two young children and noted that her husband does not work in the telecommunications industry.
Huawei's no good, very bad year just got even worseHuawei's no good, very bad year just got even worse
Meng also answered questions regarding her last name, saying she changed it when she was 16, taking her mother’s surname.
She started working at Huawei in 1993, a year after graduating from college. Her first job, she said, was answering phones.
Meng went back to university in 1997, graduating with a master’s degree in accounting. When she returned to Huawei the following year, she joined the finance department and that, she said, was when her career took off.
Meng held positions at director and executive level in the accounting and finance departments before becoming CFO.
She spent the 2000s revamping Huawei’s organizational structure and financial systems as the company expanded its business around the world.

Presiding over Huawei’s riches

It is unclear exactly when Meng was promoted to the C-Suite.
Founded in 1987, Huawei only began publishing the names and biographies of the people who run the company in 2011, according to Reuters. The inaugural list already identified Meng as CFO.
Over the past seven years, she has presided over a period of extraordinary financial success at Huawei. The company more than quadrupled its net profit between 2011 and 2017, when it reported 47.5 billion yuan ($6.9 billion).
It now sells more smartphones than Apple (AAPL) and is the world’s biggest maker of telecommunications equipment ahead of Sweden’s Ericsson (ERIC).
The company’s global rise has brought it increasing scrutiny from the US government over the same period. And Meng has now become its focal point.

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