10 Canadian Marijuana Stocks For Your Portfolio

Unlike its southern neighbor, Canada legalized medical marijuana back in 2001. That means that the industry has evolved a lot more and is not plagued with restrictions across state lines, as is the case in the United States, where there are about 28 states where pot is allowed for medical use. Further, a task force commissioned by the Canadian government came out with a report in November 2016 with recommendations for changing the current regulations and paving the way for legalization of pot for recreational purposes as well. In the United States, currently only 8 states have legalized marijuana for recreational use.

(Read Also: Legal Weed Market To Triple In 5 Years)

While uncertainty prevails in the United States, investors could get a piece of the pot action by investing in Canadian stocks traded in the country in the over-the-counter (OTC) markets. Most of these stocks can be labeled as penny stocks, so any investment may carry a significantly higher risk component. Here's a look at some of those companies.

Market Cap: $1.2 billion1. Canopy Growth Corp.

With its market cap exceeding a billion dollars, Canopy (OTC: TWMJF) is touted as Canada’s first unicorn in the pot market. While the company sells its produce under various brand names, the brand ‘Tweed’ has had the most recognition, thanks to its affiliation with rapper Snoop Dogg. The 1-year return for the stock in the OTC market has been 316% as of February 2, 2017.

2. Aurora Cannabis

Market Cap: $514 million

Aurora Cannabis (OTC: ACBFF) debuted on the Canadian venture stock exchange (TSX) in October 2016. In addition to producing dry cannabis, Aurora received a license to sell cannabis oil in January 2017. It has been around longer in the OTC market, returning 345% over a 1-year period as of February 2, 2017.

3. Aphria Inc.

Market Cap: $474 million

The company calls itself one of the lowest cost producers of marijuana. Aphria (OTC: APHQF) produces dry cannabis as well as cannabis oil of varying qualities and strength. In its last reported financial statement, it sold nearly 639 kgs equivalent of product in three months up to November 2016. The stock put up an extremely robust performance, giving 386% return for the 1-year period as of February 2, 2017.

4. SupremePharma

Market Cap: $164 million

The company produces marijuana under the banner of its wholly-owned subsidiary 7Acres. In December, SupremePharma (OTC:SPRWF) announced a private placement financing deal worth CAD 55 million or close to $42 million USD to expand its Hybrid Greenhouse facility and other working capital requirements. The stock’s 1-year return is 334%

5. OrganiGram Holdings

Market Cap: $215 million

This company's portfolio includes dry cannabis and cannabis oil, along with accessories like vaporizers that can be purchased on its website. Although it promises organic produce, OrganiPharma (OTC: OGRMF) issued a product recall in December 2016 because the products contained pesticides not approved for marijuana growing. The stock has still managed to return almost 270% for a 1 year period as of February 2, 2017.

6. Emblem Corp.

Market Cap: $182 million

Emblem (OTC: EMMBF) is another newly-listed company on the Canadian exchange. A few days after listing, the company announced that it was sitting on a cash pile of CAD 27 million that it was looking to deploy in expansion. Soon after, it got a go-ahead from Health Canada to begin production of cannabis oil.

7. PharmaCan Capital/The Cronos Group

Market Cap: $169 million

This company is in the business of investing in pot growers and companies in the marijuana business. PharmaCan’s (OTC: PRMCF) portfolio currently consists of 6 companies. It owns 2 of these companies completely—the rest it holds a minority stake in. The stock has had a rocky year, and has still returned 592% for the one year period as of February 2, 2017.

8. Emerald Health Therapeutics

Market Cap: $70 million

Emerald Health Therapeutics (OTC: TBQBF) is also a producer of dry cannabis and cannabis oils for medical use based out of British Columbia. New Cannabis Ventures reports that the company raised CAD 10 million in equity from Dundee Capital. The stock has been on an upward trend with a whopping 629% return for a 1 year period as of February 2, 2017.

9. THC BioMed International

Market Cap: $51 million

This is primarily a bio-tech company engaging in research & development on marijuana also dabbling in providing training and solutions to licensed growers. A big boost for THC BioMed (OTC:THCBF) came in December 2016, when it got the green light from the authorities to start shipping marijuana plants for licensed growers across the country. But the upside was short-lived as the company announced in January 2017 that it will be restating its financials, causing the stock to take a hit. Even so, the 1-year return as of February 2, 2017 is an impressive 747%

10. iAnthus Capital

Market Cap: $38 million

This company is scooped cannabis based businesses south of the border in 4 states across the United States. Last December iAnthus (OTC:ITHUF) announced its first complete cannabis related acquisition with the $4.375 million purchase of Colorado based Organix, a medical and recreational pot dispensary. iAnthus’ other investments also include financing and management deals with 3 other companies, totaling potentially 8 licenses for marijuana businesses, 9 dispensaries and 4 cultivation facilities. The 1-year return on the stock is close to 16%

Source: http://www.investopedia.com/investing/10-canadian-marijuana-stocks/

4 Reasons Century Casinos Shares Are A Buy

David Bain of Aegis Capital starts coverage of Century Casinos, Inc. CNTY 4.3% with a Buy rating and $9.30 price target, saying the company is underfollowed and underappreciated as a mid-market casino developer and operator with both near-term and long-term catalysts.

4 Reasons For Buy Rating

Bain’s bullish thesis on the stock is based on the following:

1. “We believe shares have not appropriately priced its Century Mile Casino development (final approval likely in 30 – 45 days), which we believe is worth ~$1.30 per share.”
2. “We value existing operations (pre-Century Mile) at ~$8 per share based on a blended 7.3x CY18 EV/EBITDA. This represents a 5+ percent discount to the average current trading value of domestic regional casinos.”
3. “CY18 forecasted net leverage (less cage capital) is ~1.3x and even with its Century Mile development, forecasted CY18 net leverage would only rise to ~2.6x. We anticipate 1 to 2 accretive acquisition or development announcements this year, offering additional potential upside to our price target.”
4. “We view management as prudent and capable of identifying and executing on lesser known gaming opportunities both in North America and Internationally.”

The key near-term catalyst is the potential approval to build and operate Century Mile, a one-mile race-track with casino entertainment on Edmonton International Airport land and adjacent to a 415,000 square foot premium outlet mall scheduled to open later this year.

Bain expects the $40 million project could show a capital return of over 25 percent and he assumes 20 percent as his base-case return for valuation purposes.

At last check, shares of Century Casinos rose 5.73 percent to $7.38. The $9.30 price target implies a a 33 percent gain from March 9 close.

Manikandan Raman 

Source:https://www.benzinga.com/analyst-ratings/analyst-color/17/03/9159133/4-reasons-century-casinos-shares-are-a-buy

What's behind the billion-dollar move into Canadian stocks?

Whether or not you're an American planning a move to Canada after the election, there's good reason to embrace the northern neighbor of the United States right now: Its stock market is soaring.

Since January the S&P/TSX Composite Index has climbed 14 percent, according to S&P Global Market Intelligence, more than double the S&P 500's 6 percent year-to-date gain. That's made the country a favorite destination for investors. With near-$1 billion in net inflows, the iShares MSCI Canada ETF (EWC) has received the most new money of any non-U.S. country fund so far this year. 

Some might hope these gains are thanks to Justin Trudeau, Canada's recently installed easy-on-the-eyes prime minister, but domestic issues don't tend to drive the Canadian market. Those caught up in the U.S. presidential election may wonder if it's a "what if Trump wins" preemptive move. But there's a more obvious, nonpolitical explanation.

Don't blame — or credit — Trump

Ups and downs in the Canadian stock market and economy are typically caused by the price of oil and other commodities.

When China's slowdown started and demand for commodities decreased, the country's mining and minerals sector, which make up about 13 percent of its stock market, tanked. When crude oil prices crashed, so did Canada's energy sector, which makes up about 20 percent of the market. Since July 2014 the S&P/TSX Capped Energy Index has plummeted 40 percent in local currency terms, while last year the entire market was down by nearly 12 percent. 

Now that oil prices have stabilized and have even climbed about 30 percent year-to-date, according to S&P, the Canadian stock market has rebounded. Gold, another big industry in Canada, has also seen a 24 percent gain in its price. "Canada is very tied to commodities, and this year is one of the better environments for those sectors," said Stephen Lingard, a portfolio manager with Franklin Templeton Solutions.

Top Canadian equity funds

Name	YTD return (%)	1-yr return (%)	3-yr return (%)
RBC Canadian Mid-Cap Equity Class Adv	26.7	24	7
DFA Canadian Vector Equity Class A	23.5	24	3.2
Galileo High Income Plus Class A	23	17.6	1
PH&N Small Float	22.8	23.3	14.4
Fidelity Canadian Opportunities Sr A	22	17	9.6
Marquest Small Companies	20	11.5	-0.95
DFA Canadian Core Equity A	20	19.1	5.1

(Source: Morningstar, 9/26/16)

A similar stock rebound has been taking place in other hard-hit commodity economies, including Brazil and Russia, which have posted year-to-date returns ever greater than Canada. Peru, a base-metals economy, is second to Brazil this year in country stock market performance.

Last week the news of an OPEC deal to cut production — the first notable agreement since the oil price collapse of 2014 and first production cut since 2008 — buoyed crude prices. But doubts remain about follow-through on the deal from OPEC members, as well as the extent to which a production cut would propel further oil price gains.Goldman Sachs said it was making no change to its oil price forecast through 2017 — $43 through the end of this year and $53 a barrel in 2017.

Rising oil prices also impact Canada's currency, which after a couple years of declines has strengthened considerably against the U.S. dollar. Since the start of the year, the greenback has fallen by more than 5 percent against the loonie, which means that even if the Canadian market was flat, you'd still make money off that currency movement. "The Canadian dollar has bounced off the bottom," Lingard said. It's a currency move that has benefited a broad Canadian stock fund like EWC, which is up 19 percent this year — its total return without the currency move is roughly 13 percent.

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As good as these gains have been, why would an American want to invest in Canadian stocks? One reason is that, as commodity-driven economies go, Canada is a much safer place to invest in than other commodity-rich countries, such as Brazil and Russia. While both of those nations have seen bigger market gains this year, they're much more volatile than Canada. And while Canada is, of course, not an emerging market, people do lump the country in with these developing countries because of its oil and materials exposure. If you do want that commodity exposure, it makes a lot of sense to buy Canadian.

"If you're investing in a commodity-heavy index, downside risk is very important," said Risteard Hogan, lead manager on the Fidelity Canada Fund. "In Canada there's a rule of law; there's corporate governance. In emerging markets there's not an immaterial chance of getting an asset appropriated. Investing in Canada is a much higher-quality way of owning these businesses."

Hogan understands why people compare Canada to emerging markets, stating that the country has a lot more to offer than oil. There are a number of high-quality companies, similar to what you might find in the United States, but structurally may be even more attractive. The telecom space, for instance, is an oligopoly, where three big players generate most of the revenue. Canada also has century-old rail companies — Canadian Pacific and Canadian National — both of which are reliable and well-run operations that do a lot of business in the states, too.