Connect with us

Government

Canopy Growth (CGC) Comes Back to the Forefront as States Scramble to Find Revenue

Canopy Growth (CGC) Comes Back to the Forefront as States Scramble to Find Revenue

Published

on

Investors Alley
Canopy Growth (CGC) Comes Back to the Forefront as States Scramble to Find Revenue

Canopy Growth (CGC) recently announced earnings that could only be described as abysmal: a quarterly loss of C$1.3 billion, or C$3.72 a share. This was in comparison to a loss of C$379 million in the prior year-over-year quarter reported by CGC.

Not surprisingly, CGC stock, which had been moving substantially higher, took a major hit. The stock dropped from $22, to where it now trades, just below $17.

So, why might the cannabis stock, which reported lousy earnings, and has now dropped more than 23%, actually be a buy?

As we all know, the current health crisis caused by the coronavirus pandemic and COVID-19 infections has been a hardship on individuals and many companies. And some sectors, like the restaurant, travel, and leisure industries, have taken it on the chin harder than others. But, there is another victim of the virus, not exactly broadly represented in the stock market, we should be aware of.

States and municipalities have spent hundreds of millions of dollars to fight the pandemic, provide necessary services, and find new ways—such as new online services—to fulfill governmental responsibilities.

In order to refill governmental coffers, states will have to be creative. Raising taxes, which will likely happen, may provide a muted benefit as the unemployment rate has skyrocketed.

New Mexico’s governor, Michelle Lujan Grisham, directly addressed the possible legalization of recreational cannabis in a recent update on how the state is dealing with COVID-19. Grisham said cannabis tax revenue would mean: “…nearly $100 million of recurring revenue into the budget.”

I believe we’ll see this theme play out over and over in states that have to raise additional revenue. And the necessity of raising tax revenue should prove a boon to a number of cannabis companies.

My Readers Are Enjoying a 63% Gain From My Favorite 5G Stock: Click here for how to get access to the name and ticker today [ad]

Canopy Growth, as one of the largest cannabis producers in North America, may be a major beneficiary of this trend. The pullback after the CGC’s earnings announcement miss may turn out to be a major buying opportunity for investors to benefit from the trend.

It should also be noted that a large portion of the loss Canopy sustained in the quarter was due to a restructuring charge. In total, the company took a charge of C$743M in impairments during the quarter related to corporate restructuring.

And, as Canopy Growth CEO David Klein shared on the company’s earnings call, Canopy Growth’s new products are being well received by the market. The company’s drink brands are being very well received, and are actually rated as the number one cannabis drink in cities like Ontario.

Aurora Cannabis (ACB) is another cannabis producer that may be giving investors a buy point following a major move upward after earnings.

ACB stock jumped from $6 to $19 on a good earnings report, but has since pulled back to just over $14. Aurora reported revenue increases quarter-over-quarter in both its consumer and medical lines, with consumer growing a very respectable 24%.

Aurora is an interesting play in that it currently has an interim CEO, Michael Singer. As the company navigates choosing a permanent CEO, there has been some concern that execution may falter.

Soon after earnings, Aurora announced it would be purchasing U.S.-based CBD company, Reliva, LLC for $40 million. While some analysts fear the combination of finding a new CEO, in conjunction with integrating a new acquisition, may hamper the stock, I think it could spell opportunity.

Finally, let’s look at an indirect cannabis play based here in the U.S. Akerna (KERN) is a software provider for the cannabis industry. The company’s products are specifically designed to run a cannabis operation’s back-office functions.

KERN went public last year, just before a decline in cannabis company stocks, and has languished since then.

But what I like about Akerna is the fact that it is a picks-and-shovels play. While the cannabis industry is competitive, Akerna is one of the few business software companies focused exclusively on cannabis. And, for those concerned with federal legal issues in the U.S., this is also the better play, as the company does not handle or grow cannabis.

Have you spotted the "5G" signal on your phone yet?

I've seen it pop up a few times in my travels. That tips me off that this technology is getting closer and closer to going nationwide. Once it does, it could transform how we do everything.

That's why I immediately set out to find the number one 5G stock...

And I believe I found it.

Click here to see my #1 5G stock and to discover how 5G will affect you and your financial future.

 

Canopy Growth (CGC) Comes Back to the Forefront as States Scramble to Find Revenue
Eddy Elfenbein

Read More

Continue Reading

Government

Fauci Net Worth Soared 66% During Pandemic

Fauci Net Worth Soared 66% During Pandemic

The net worth of Dr. Anthony Fauci’s household soared a whopping 66% over the course of the pandemic,…

Published

on

Fauci Net Worth Soared 66% During Pandemic

The net worth of Dr. Anthony Fauci's household soared a whopping 66% over the course of the pandemic, according to new financial disclosures obtained by OpenTheBooks.com. Fauci reported a Jan 1, 2019 net worth of $7,523,634. By Jan 1, 2022, it had grown to $12,677,513.  

Values are as of Jan 1 each year. Chart via OpenTheBooks.com

As director of the National Institute of Allergy and Infectious Diseases, Fauci was paid a 2021 salary of $456,028, making him the highest-paid employee in the entire federal government. His wife, Christine Grady, is chief bio-ethicist for the National Institutes of Health, does very well too, raking in a $238,970 salary last year.

Fauci is famously paid more than the president, and his wife collects more than the vice president. However, those hefty federal salaries aren't the only driver of the Fauci household's pandemic-era enrichment.

In 2021, Fauci was awarded the Tel Aviv University-affiliated Dan David Prize, which came with a $1 million check. The prize committee said Fauci "has been widely praised for his courage in speaking truth to power" during the Covid-19 pandemic.

The committee was apparently oblivious that Fauci was the power and routinely spoke falsehoods about everything from the usefulness of masking to herd immunity, the efficacy of vaccines, and NIH funding of gain of function research at the Wuhan Institute. 

As is customary, Fauci donated some of his prize money back to be awarded as student scholarships, but still pocketed $901,400, according to the financial statements reviewed by OpenTheBooks.com. 

Though it's chump change compared to the Dan David Prize, Fauci also scored $12,500 from both the Elliot Richardson Prize in Public Service and the Abelson Prize from the American Association for the Advancement of Science, and got $5,198 when he was named Federal Employee of the Year at the 2020 Samuel J. Heyman Service to America Medals ceremony.  

Fauci even did some moonlighting as an editor for McGraw Hill, taking home $100,000 for his work in 2021. 

There's no indication Fauci made any "shrewd" investments a la Nancy and Paul Pelosi. According to the financial disclosures, Fauci's portfolio comprises broad mutual funds with no individual stocks: 

"These funds were held in a mix of trust, retirement, and college education accounts. Fauci has an IRA worth $706,219 (up $67,700); a defined benefit brokerage account totaling $2,551,210 (up $147,688); and a revocable trust worth $7,014,197 (up $1,718,299). His wife’s revocable trust is worth $2,269,225 (up $306,406) and an IRA totaling $136,662 (up $16,385)," reports OpenTheBooks.com. 

OpenTheBooks.com has filed four federal lawsuits against NIH to pry loose additional details not only about Fauci but also about royalties received by other NIH employees.  

Though Fauci has announced he'll retire by the end of the year, the wheelbarrows full of taxpayer money will keep on rolling his way. When you're the highest-paid employee in federal government history and you've been on the federal payroll for more than 55 years, that'll make for an astounding pension of some $375,000 a year. 

It's emblematic of the whole miserable Covid-19 spectacle: Bureaucrats wallow in government money while ordinary people suffer the ever-mushrooming destruction caused by public health's catastrophic lockdown and mandate regime.  

Tyler Durden Thu, 09/29/2022 - 23:20

Read More

Continue Reading

Spread & Containment

This Thanksgiving, Supplies Of Turkey, Eggs, & Butter Will Be Extremely Tight In The US

This Thanksgiving, Supplies Of Turkey, Eggs, & Butter Will Be Extremely Tight In The US

Authored by Michael Snyder via The Economic Collapse…

Published

on

This Thanksgiving, Supplies Of Turkey, Eggs, & Butter Will Be Extremely Tight In The US

Authored by Michael Snyder via The Economic Collapse blog,

If you love to cook, this upcoming Thanksgiving may be a real challenge for you.  Thanks to a resurgence of the bird flu, supplies of turkey are getting tighter and tighter.  Sadly, the same thing is true for eggs.  And as you will see below, reduced milk production is sending the price of butter into the stratosphere.  Thanks to soaring prices, a traditional Thanksgiving dinner will be out of reach for millions of American families this year, and that is extremely unfortunate.  Of course all of this is happening in the context of a horrific global food crisis that is getting worse with each passing day.  Yes, things are bad now, but they will be significantly worse this time next year.

The bird flu pandemic that has killed tens of millions of our chickens and turkeys was supposed to go away during the hot summer months, but that didn’t happen.  And now that the weather is starting to get colder again, there has been a resurgence of the bird flu and this is “devastating egg and turkey operations in the heartland of the country”

Turkeys are selling for record high prices ahead of the Thanksgiving holiday as a resurgence of bird flu wipes out supplies across the US.

Avian influenza is devastating egg and turkey operations in the heartland of the country. If just one bird gets it, the entire flock is culled in order to stop the spread. Millions of hens and turkeys have been killed in recent weeks. As a result, prices for turkey hens are nearly 30% higher than a year ago and 80% above pre-pandemic costs. Just as concerning are inventories of whole turkeys, which are the lowest going into the US winter holiday season since 2006. That means there will be little relief from inflation for Thanksgiving dinner.

In the months ahead, we could see tens of millions more chickens and turkeys get wiped out.

Egg prices have already tripled in 2022 and the price of turkey meat is up 60 percent.  Unfortunately, this is likely just the beginning

Turkey hens are $1.82 a pound this week, according to Urner Barry, compared to $1.42 last year and $1.01 before the pandemic. Meanwhile, wholesale egg prices are at $3.62 a dozen as of Wednesday, the highest ever, up from a previous record of $3.45 a dozen set earlier this year, said John Brunnquell, chief executive officer of Egg Innovations, one of the biggest US producers of free-range eggs. Consumers have seen prices for eggs at grocery stores triple this year, while turkey meat rose a record-setting 60%, according to a Cobank report.

Meanwhile, supplies of butter are steadily getting tighter as well

Lower milk production on U.S. dairy farms and labor shortages for processing plants have weighed on butter output for months, leaving the amount of butter in U.S. cold storage facilities at the end of July the lowest since 2017, according to the Agriculture Department.

Tight supplies have sent butter prices soaring at U.S. supermarkets, surpassing most other foods in the past year. U.S. grocery prices in August rose 13.5% during the past 12 months, the largest annual increase since 1979, according to the Labor Department. Butter outstripped those gains, rising 24.6% over the same period.

The trends that are driving up the price of butter aren’t going away any time soon, and so we are being warned to brace ourselves for “elevated” prices for the foreseeable future…

The forces at work in butter highlight the challenge of curtailing inflation. Economic pressures fueling high prices for livestock feed, labor shortages and other factors could persist, keeping prices for the kitchen staple elevated longer term.

To me, slathering a piece of warm bread with a huge chunk of butter is one of the best things about Thanksgiving.

And most of us will continue to buy butter no matter how high it goes.

But the truth is that rapidly rising food prices are forcing vast numbers of Americans to adjust their shopping habits.  Here is one example

For Carol Ehrman, cooking is a joyful experience.

“I love to cook, it’s my favorite thing to do,” she said. She especially likes to cook Indian and Thai food, but stocking the spices and ingredients she needs for those dishes is no longer feasible. “When every ingredient has gone up, that adds up on the total bill,” she said.

“What used to cost us $250 to $300 … is now $400.” Ehrman, 60, and her husband, 65, rely on his social security income, and the increase was stretching their budget. “We just couldn’t do that.”

The global food crisis is starting to hit home for many ordinary Americans, and we need to understand that this crisis is still only in the very early chapters.

David Beasley is the head of the UN World Food Program, and he is actually using the word “hell” to describe what is potentially coming in 2023

“It’s a perfect storm on top of a perfect storm,” Beasley said. “And with the fertilizer crisis we’re facing right now, with droughts, we’re facing a food pricing problem in 2022. This created havoc around the world.”

“If we don’t get on top of this quickly — and I don’t mean next year, I mean this year — you will have a food availability problem in 2023,” he said. “And that’s gonna be hell.”

The World Food Program keeps sounding the alarm, but very few of us in the western world seem to be taking those warnings very seriously.

People are literally dropping dead from starvation in some areas of the globe right now, and a new report that the WFP just released says that there are 19 “hotspots” where we could see a “huge loss of life” between October and January…

World Food Programme (WFP) and the Food and Agriculture Organization of the United Nations (FAO) are out with a new report outlining countries that “are either already starving or on the brink of disaster.”

WFP and FAO found 19 hunger hotspots worldwide, with most countries in Africa, the Middle East, and even some in Central America. They call for urgent humanitarian action between October 2022 and January 2023 to avoid “huge loss of life.”

Afghanistan, Ethiopia, South Sudan, Somalia, Nigeria, Yemen, and Haiti are labeled “hotspots of highest concern,” facing catastrophic hunger levels.

The sort of famines that we were warned about are already starting to happen right in front of our eyes, but most people simply will not care as long as they are not going hungry themselves.

What those people do not realize is that this global food crisis is going to continue to spread.

As supplies of food get tighter and tighter, prices will continue to soar and shortages will become more common.

We truly are in unprecedented territory, and the pain that is ahead will greatly shock all of the lemmings that just kept assuming that everything would work out just fine somehow.

*  *  *

It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.

Tyler Durden Thu, 09/29/2022 - 21:40

Read More

Continue Reading

Government

“Historic Levels Of Fraud”: US Watchdog Estimates $45.6 Billion Bilked From Pandemic Unemployment Program

"Historic Levels Of Fraud": US Watchdog Estimates $45.6 Billion Bilked From Pandemic Unemployment Program

A federal watchdog has found that…

Published

on

"Historic Levels Of Fraud": US Watchdog Estimates $45.6 Billion Bilked From Pandemic Unemployment Program

A federal watchdog has found that $45.6 billion may have been scammed out of the nation's unemployment program during the pandemic, as fraudsters used a variety of methods to commit fraud - including using the Social Security numbers of dead people, hard-to-trace emails, and the identities of prisoners who were ineligible for aid.

According to the Washington Post, a Thursday report by the inspector general for the Labor Department reveals that the program - which helped some 57 million families in the first five months of the crisis - became an easy target for criminals.

To siphon away funds, scammers allegedly filed billions of dollars in unemployment claims in multiple states simultaneously and relied on suspicious, hard-to-trace emails. In some cases, they used more than 205,000 Social Security numbers that belonged to dead people. Other suspected criminals obtained benefits using the identities of prisoners who were ineligible for aid.

But officials at the watchdog office warned their accounting still may be incomplete: They said they were not able to access more updated federal prisoner data from the Justice Department, and acknowledged that they only focused their report on “high risk” areas for fraud. The two factors raised the prospect that they could uncover billions of dollars in additional theft in the months to come. -WaPo

At least 1,000 individuals have been charged with unemployment fraud and related crimes, according to a Thursday announcement. DOJ director of covid-related enforcement, Kevin Chambers, described the situation as "unprecedented fraud," while the IG's office says it's opened roughly 190,000 related investigative matters since the beginning of the pandemic.

The new report highlights challenges faced by government watchdogs and regulators, two years after what became roughly $5 trillion in (inflationary) pandemic aid was printed in response to the worst economic crisis since the Great Depression.

Last week, federal prosecutors  charged 47 individuals from the Minnesota Somali community for allegedly bilking $250 million in Covid-19 federal funds meant for a child nutrition program, in what the DOJ described as the largest single fraud case related to pandemic aid to date.

Twitter via @LouRaguse

Meanwhile, federal investigators are looking into roughly $1 trillion in loans an grants designed to help small businesses.

"Hundreds of billions in pandemic funds attracted fraudsters seeking to exploit the UI program — resulting in historic levels of fraud and other improper payments," said Labor Department inspector general, Larry Turner.

Turner's office found that between March and October 2020, there were roughly $16 billion in potential fraud in key high-risk areas.

One lawmaker actually who's actually pursuing the fraud is Sen. Ron Wyden (D-OR), who chairs the Senate Finance Committee. Wyden praised the "strong effort to identify criminals," but stressed the need to overhaul the jobless benefits system.

"I’ve long said we need a national set of technology and security standards for state systems to better prevent this kind of fraud, and we’re going to keep working to get our reforms passed," he added.

Tyler Durden Thu, 09/29/2022 - 18:00

Read More

Continue Reading

Trending