Constellation Bra (STZ) Offering Possible 13.64% Return Over the Next 5 Calendar Days

Constellation Bra’s most recent trend suggests a bullish bias. One trading opportunity on Constellation Bra is a Bull Put Spread using a strike $187.50 short put and a strike $182.50 long put offers a potential 13.64% return on risk over the next 5 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $187.50 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $4.40 would be incurred if the stock dropped below the $182.50 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Constellation Bra is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Constellation Bra is bullish.

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Constellation Bra

Final Trades: Keysight, JPMorgan, Constellation Brands & FedEx
Thu, 11 Apr 2019 17:38:04 +0000
The “Halftime Report” traders give their top stocks to watch for the second half.

Cannabis Stocks to Watch Ahead of the States Bill
Thu, 11 Apr 2019 13:46:34 +0000
Cannabis stocks are in a holding pattern right now — consider that the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) has barely budged in the last month. Markets are waiting on the bipartisan legislation proposed in both the House and Senate to create protections for the states legalizing cannabis to play out. If the sector wins a favorable decision, it could start rallying again as it did for much of 2019. That is due to a boost in liquidity, as banks become permitted to offer services to companies in the sector.Source: Shutterstock What are the cannabis stocks that investors should watch, ahead of the government’s review?Aurora Cannabis (NYSE:ACB) announced on Apr. 4 that it appointed Carey Squires as its executive vice president of Corporate Development and Strategy. Carey’s experience in capital markets signals that Aurora will seek global growth and partnerships with other firms. ACB shares are up over 70% year-to-date already. The stock could see profit-taking if markets weaken overall. But with such an event impossible to predict, investors are hoping for a favorable vote on the States bill to facilitate the financing of any big deals.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOn Apr. 2, Aurora filed a preliminary prospectus that will allow the company to raise $750 million over a 25-month period.On Apr. 5, the CEO of Constellation Brands (NYSE:STZ) told CNBC that Canopy Growth (NYSEQ:CGC) could make more than $1 billion in revenue by the end of its fiscal year. Constellation reasoned that Canopy can sell $5 billion to $6 billion worth of goods in Canada alone. Beverages and other edibles would add to the company’s addressable market potential. * 10 Dow Jones Stocks Holding the Blue Chip Index Back Marijuana is illegal federally, but state governments have legalized it in some form in 33 states across the U.S. If more states legalize the substance, then Canopy, Constellation Brands and Aurora Cannabis could all, in turn, reward shareholders with good results.On Mar. 25, Health Canada granted Canopy Growth a cultivation license for its facility in Fredericton, New Brunswick. The facility will start production of over 5,000kg of cannabis annually. Such positive benefits to the economy and job market are something for states to look forward to from cannabis legalization.CannTrust (NYSE:CTST) could trade in a wide range after the company reported weak fourth-quarter results in the end of March. Revenue grew to 132% from last year to CAD $16.17 million. The company lost CAD $0.26 a share.CannTrust is optimistic that its revenue growth will continue in 2019, thanks to additional capacity coming online. Its Phase 2 expansion, crop yield optimization and staff training will all drive output higher. By 2020, it estimates it will add between 100,000 kg to 200,000 kg of production. Looking ahead, the company will continue developing innovative products in anticipation of the expected legalization of the edibles market in Canada in late 2019.Cronos Group (NASDAQ:CRON) has been one of the stocks to add to the “avoid list” due to its weak quarterly report. The company benefited from a CAD $2.4 billion Altria (NYSE:MO) investment, which closed in March 2019. The bad news is that the company’s average selling price fell from $6.43 in full-year 2017 to $5.74 for 2018. It blamed the falling ASP on an excise task. Operating expenses also ballooned from $9.3 million in full-year 2017 to $29.4 million.Cronos has research and development activities that will take time before they pay off. Its big focus is on making sure that it has the technologies for leveraging on the rare cannabinoids and formulations to tailor them to devices. This requires the company collecting data to share with regulators so they are comfortable with it.In the end, cannabis stocks have already staged a nice rally in 2019, which increases the risk of a pull-back if investors decide to book profits. Yet any positive developments on the legalization side of the equation could re-ignite another rally in the sector.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post Cannabis Stocks to Watch Ahead of the States Bill appeared first on InvestorPlace.

Edited Transcript of STZ earnings conference call or presentation 4-Apr-19 2:30pm GMT
Thu, 11 Apr 2019 12:52:16 +0000
Q4 2019 Constellation Brands Inc Earnings Call

Cannabis Retail Giants: 5 Companies Making Big Moves
Thu, 11 Apr 2019 12:30:00 +0000
The cannabis industry is evolving rapidly, and we’ve seen some big moves happening lately that are going to have a significant impact on the retail environment both locally and internationally. New Age Beverages is one of the first-movers in the segment, and on Monday it made huge progress when it announced a deal with Walmart Inc (WMT). It’s a big move for New Age as it puts its energy drinks in a big national retailer that will help The Company gain exposure.

Here’s the Real Problem with Altria Overpaying for CRON Stock
Thu, 11 Apr 2019 10:45:56 +0000
Canadian-based marijuana company Cronos (NASDAQ:CRON) soared earlier this year, but Cronos stock is falling back to earth as the frenzy dies down.Source: Shutterstock The rise in CRON stock mostly is attributable to interest from Altria (NYSE:MO). The owner of veteran cigarette brands Marlboro, Parliament, and Virginia Slims got into the game with a $1.8 billion investment in Cronos.At the time of transaction, Altria’s $1.8 billion investment translated roughly to a 45% ownership of Cronos with warrants to own up to 55% of the company, which Altria has the option to exercise anytime in the next four years.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 8 Risky Stocks to Watch as Earnings Season Kicks Off Altria’s controlling interest in Cronos takes place on the heels of two high-profile investments in marijuana stocks in 2018. Constellation Brands (NYSE:STZ), the maker of Corona and Modelo beer, was arguably the first-mover in sealing a deal for a 38% stake in Canopy Growth (NYSE:CGC).Late in the year, it was Switzerland-based Big Pharma company, Novartis (NYSE:NVS) that threw its hat in the cannabis ring, announcing a partnership with Tilray (NASDAQ:TLRY).As the above transactions show, suitors interested in investing in the cannabis sector run the gamut. From alcoholic beverage companies to large pharmaceutical companies and now to Big Tobacco. Many industries are already feeling the initial wave of marijuana legalization across certain states within the U.S. impact sales.Amidst declining sales, Altria was left then, with no choice but to get on the bandwagon. CRON Stock Hits the Big TimeLooking closer at the data though, in Altria’s case there seems to have been a case of FOMO (fear of missing out). To begin with, publicly-traded cannabis companies on major U.S. are a recent novelty. Before, Canadian-listed marijuana stocks that wanted to appeal to the broader U.S. investor base were relegated to over-the-counter exchanges. This change has made these cannabis investments more palatable for shareholders.Because U.S. exchanges like the New York Stock Exchange and tech-focused NASDAQ will not list companies that break U.S. federal law, U.S.-based cannabis companies find themselves at a disadvantage in raising capital compared to their northern counterparts. Marijuana is legal in Canada, so as long as these Canadian-based marijuana companies stick to operating there, they aren’t violating any laws in the jurisdictions they operate in. While U.S. companies salivate over the kinds of money and high valuations that Canadian companies have gotten, the fact is that I can see a future in which U.S. competitors in the space no longer have to go to the Canadian TSX to raise money. Once they are able to list on U.S. Exchanges, companies interested in the cannabis space will have a larger pool of partners to choose from.Potentially, these partners will generate more synergies as well given their knowledge and scale within the domestic market.Before that future comes to pass, however, Altria may have felt that it was a do or die situation. MO seemed like to would be willing to pay any amount to get a toehold in the rapidly-growing cannabis sector. Altria Overpays for CRON StockWith CGC and TLRY already off the market, Altria jumped for CRON.There are certainly synergies across Altria’s core business with cannabis than with beer. Still it is hard to justify paying a price to sales multiple of 267x (compare that to CGC’s 86x).If we look at a less conventional metric: market capitalization to kilograms of cannabis sold, it gives an idea of the comparatively stratospheric valuation that Altria paid.Last fiscal year, CRON sold 2,737 kilograms of dry cannabis. Using an estimated price of $15 per share from when Altria announced the deal late last year and March of this year when they closed the deal and outstanding shares of 333 million, a market cap figure emerges of $5 billion. Do the division and Altria paid an estimated $1.8 million per kilogram of cannabis sold. Sound high?Doing the same exercise with CGC while adjusting for an earlier timeframe since the acquisition closed last year, I use trailing twelve months kilograms sold of 9,750 and 177 million outstanding shares. The result is $545,000 market capitalization/kilogram, less than a third of what Altria paid for CRON. The Final Word on CRON StockRight now, there are a lot of projects underway that will decide if the CRON investment is ultimately accretive. There is the much-touted supply agreement with Cura Cannabis Solutions, for example.Remember though, this five year take-or-pay supply agreement to purchase a minimum of 20,000 kilograms of cannabis per annum from Cronos can only take place after Cura receives all necessary licenses from Health Canada.There’s also the potential 120-acre facility in Australia that is under review. If completed, the expected annual production capacity is 2,000 kilograms. And let’s not forget the 850,000 sq. ft. Ontario-based greenhouse that is expected to have a 70,000 kilograms capacity.Overall, this is probably still a net positive for Altria shareholders as they’ll benefit from the growth profile and exposure to cannabis. The price tag, however, will be hard to justify if CRON stock doesn’t deliver on its growth projections.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post Here’s the Real Problem with Altria Overpaying for CRON Stock appeared first on InvestorPlace.

Be Sociable, Share!

Related Posts