Constellation Bra's most recent trend suggests a bullish bias. One trading opportunity on Constellation Bra is a Bull Put Spread using a strike $207.50 short put and a strike $202.50 long put offers a potential 19.05% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $207.50 by expiration. The full premium credit of $0.80 would be kept by the premium seller. The risk of $4.20 would be incurred if the stock dropped below the $202.50 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Constellation Bra is bullish and the probability of a rise 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
Canopy Growth Stock Will Fall Off as Marijuana Investors Realize Their Mistake
Tue, 30 Apr 2019 15:55:30 +0000
Canopy Growth (NYSE:CGC) is arguably the premier name among marijuana stocks. Not only did it validate the entire marijuana movement in August of last year when Constellation Brands (NYSE:STZ) became a major shareholder, CGC stock is the top-performing cannabis name in recent months. Canopy Growth stock is rallying again too, on the verge of rivaling last year's peak level.Source: Shutterstock Be wary of jumping on board this rising rocket, though. Even if CGC stock is currently advancing, the euphoria is wearing off … and the same thing that's made Canopy Growth stock so compelling may end up being the very thing that upending it.Of course, the industry-wide undertow isn't helping to bolster the bullish argument either.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Rocky StartThe concept is simple enough. The legalization of marijuana in Canada and certain parts of the United States has created an instant market for outfits that can supply it. Investors plugged in, putting names like Cronos Group (NASDAQ:CRON), Tilray (NASDAQ:TLRY) and Canopy Growth under a spotlight so intense, no one could have expected it just a couple of years ago. * 7 Stocks to Buy That Ought to Buy Back Shares As was the case with the dot-com companies in the late-90s, housing in 2007, gold in 2011, oil in 2014 — and the many more manias that have come and gone in the past couple of decades — excited investors looked past the fact that these businesses eventually have to turn a profit.Most pot stocks aren't profitable, and Canopy Growth most definitely isn't. CGC logged an operating loss of $157 million on net revenues of $83 million in its most recently reported quarter. The top line nearly quadrupled, but gross margins fell by a quarter. Operating expenses almost quadrupled as well.CGC stock backers will argue — and correctly so — that an organization has to spend money to make money. To that end, Canopy Growth has made nine major purchases within the past several months; gross margins and operating profits generally don't fully reflect the cost of acquisitions.More than that, it's spending big at a time when the legal pot market is already running into a headwind. Costs Rising, Prices and Demand FallingThe string of operating losses in the midst of what's largely been seen as a marijuana revolution is illuminating. It highlights a stark reality that many investors refused to consider … that is, while the cost of growing cannabis varies, so does the market price. The law of supply and demand dictates the greater the supply, the lower the price.This is precisely, albeit modestly, what we've seen take shape in recent months, with more of the same on the way. Canopy Growth's average selling price per gram $7.33 per gram (Canadian) was down 12% year-over-year. Cannabis Benchmarks forecasts that cannabis prices will continue to dwindle, losing roughly another 8% of its current value by October.Once a black-market plant that couldn't be grown in bulk, marijuana is now a commodity, and given time will decline in value to its lowest sustainable price that will be dictated by major farming operations.At the same time the price of cannabis is being commoditized, Canopy Growth faces a steep cost-cutting hill.Cowen analyst Vivien Azer explained following February's Q3 earnings report:"While industry disclosure around gross margin can vary from company to company, for Canopy, cash cost of goods sold per gram of $5.11 looks to be meaningfully higher than its peers, having climbed 15 percent sequentially."Underscoring Canopy Growth's cost red flags is Tilray's similar rise in costs a quarter ago. The kicker: While all the rage in October of last year when Canada legalized recreational marijuana, cannabis sales in Canada fell — sequentially — in January and then again in February.The buzz, no pun intended, appears to be wearing off as cannabis becomes 'just another business.' Bottom Line for CGC Stock, OthersLast year was a splashy one for marijuana stocks. Investors may not remain as stoked this year, as reality starts to set in. That's not inherently a clarion call to shed any and all positions in CGC stock and never return to it (although Canopy Growth stock is overbought and ripe for profit-taking).Marijuana is a real product with real demand, and legalization in the United States is almost an inevitability. Canopy Growth can find a place in the future of the business, even if only as a subsidiary of a bigger, industrialized ag player.Between now and then though, these companies face a challenge they've not faced before … they're going to have to prove that all the heavy spending will bear fruit and that they didn't overstate the profit potential of cannabis. This is especially true of Canopy.Given the current pricing and cost trends, that's not going to be easy to do.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 3 Scorching Hot Bank Stocks to Consider Now * 10 Stocks to Sell Before They Give Back 2019 Gains * 7 Stocks to Buy That Ought to Buy Back Shares Compare Brokers The post Canopy Growth Stock Will Fall Off as Marijuana Investors Realize Their Mistake appeared first on InvestorPlace.
Canopy Growth’s Quiet Co-CEO on the Marijuana Company’s U.S. Plans and More
Tue, 30 Apr 2019 01:40:00 +0000
In rare interview, Mark Zekulin discusses how Canopy’s deal with Constellation Brands helped in its recent purchase of Acreage Holdings warrants.
Top Wine Stocks for 2019
Mon, 29 Apr 2019 21:08:01 +0000
As more wine companies go public and millennials replace aging generations, the market could see significant upside despite a lackluster 2018.
Corona is Bringing the Tropics with New Corona Refresca®
Mon, 29 Apr 2019 13:00:00 +0000
The maker of the No. 1 import beer brand family in the U.S.1 is bringing its tropical and carefree attitude to a new category – Flavored Malt Beverages (FMB) – with the launch of Corona Refresca, a premium alcohol-spiked refresher. “The strong brand equity of Corona allows us to keep the iconic lifestyle at the heart of everything we do. Research shows that consumers are seeking a flavor-forward, alternative malt beverage experience2 and in one year, the brand has significantly expanded to proactively meet the diverse and changing needs of beer drinkers – with Corona Refresca as well as Corona Premier that launched nationally in 2018.
3 Reasons Aurora Cannabis Is a Better Pot Stock Than Canopy Growth, and 1 Big Reason It Isn't
Sun, 28 Apr 2019 18:00:00 +0000
They're the two biggest Canadian pot stocks. But is Aurora now the better pick over Canopy? Yes. And no.
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