Cannabis in California

Names to watch ahead of California marijuana legalization

Names to watch ahead of California marijuana legalization. Stockwinners.com
Names to watch ahead of California marijuana legalization

As recreational use of marijuana is set to become legal in California on the first day of the year, the space seems to be getting more and more attention, with a new marijuana ETF starting to trade this week and Constellation Brands (STZ) taking a stake in a Canadian medical marijuana producer earlier this year.

CANNABIS IN CALIFORNIA

For people residing in California, the New Year means they will able to buy recreational marijuana as it is set to become legal in the state starting January 1, a date that dispensaries and consumers have had in their sights on since Proposition 64 made it the official opening of the adult-use market in California.

In keeping with state rules, retailers will be able to sell or deliver cannabis between 6am and 10pm.

NAMES TO WATCH

Among the publicly traded names in the space is Innovative Industrial Properties (IIPR), a REIT that owns dispensary properties.

Last year, NYSE became the first major exchange to list a cannabis company with its acceptance of Innovative Industrial Properties’ initial public offering.

Constellation Brands seems to also be interested in the blossoming cannabis industry as the company bought a minority stake in a Canadian medicinal marijuana producer.

In October, Constellation announced it paid C$245M for a 9.9% interest in Canopy Growth, a Canadian provider of medicinal cannabis products.

Constellation, which is looking to develop cannabis products that don’t contain alcohol, does not expect to sell products in the U.S. before marijuana is nationally legalized but may begin to sell products in Canada, where such products are expected to be legalized by 2019.

Earlier this week, ETF Managers Group announced that MJX, the ETFMG Alternative Harvest ETF, was live and available for trading on the NYSE Arca.

This fund is one of the first of its kind available to U.S. investors and is designed to replicate the Prime Alternative Harvest Index, which tracks companies likely to benefit from the increasing global acceptance of various uses of the cannabis plant.

This includes treatments from innovative medicinal breakthroughs involving the plant’s unique properties.

PRICE ACTION

In Wednesday’s trading, shares of Constellation Brands are fractionally down to $224.95, while Innovative Industrial Properties is up nearly 5% to $27.24.


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Brigade Capital takes stake in Kindred, opposes takeover by Humana

Brigade Capital takes 5.8% stake in Kindred, opposes takeover

Kindred Health sold for $9 a share. Stockwinners
Brigade Capital takes 5.8% stake in Kindred, opposes takeover

Brigade Capital disclosed a 5.8% stake in Kindred Healthcare (KND) and expressed opposition to the company’s proposed buyout by TPG Capital, Welsh, Carson, Anderson & Stowe and Humana (HUM).

Representatives of Brigade intend to engage in discussions with Kindred’s management and board regarding, among other things, the company’s strategic alternatives and direction, and strategies to enhance shareholder value, including regarding the recently announced proposed acquisition.

On December 27, Brigade delivered a letter to the board stating its opposition to the takeover and noting the “material inadequacy of the terms of the proposed transaction.”

Brigade’s belief is that the $9.00 per share cash merger price “significantly undervalues” Kindred’s common stock. The Letter notes that from the perspective of maximizing shareholder value, Brigade believes it is premature for Kindred to engage in a sale transaction.

Over the past year, Brigade noted that the company “has overcome numerous challenges and calmed most of the headwinds against its business, positioning it for substantial stock price appreciation in 2018 and beyond.”

The activist added, “Brigade expected management to continue operating the business to enable the shareholders who have patiently supported the Issuer throughout its challenges to realize the benefits of the business improvements through their continued ownership in the going concern.

Instead, Brigade stated in the Letter, that it believes management has chosen to pursue a transaction with the Consortium that severely undervalues the Issuer and ensures that the Consortium – rather than existing shareholders – will reap the benefits of the value enhancement the improved business is expected to generate.

For these and the reasons stated in the Letter, Brigade advised the Issuer that it does not believe the proposed transaction is in the best interests of the Issuer’s shareholders and intends to actively oppose it.”

BACKGROUND

On December 19th,  Kindred Healthcare (KND) announced that its Board of Directors has approved a definitive agreement under which it will be acquired by a consortium of three companies: TPG Capital, Welsh, Carson, Anderson & Stowe and Humana (HUM) for approximately $4.1B in cash including the assumption or repayment of net debt.

Under the terms of the agreement, Kindred stockholders would receive $9.00 in cash for each share of Kindred common stock they hold, representing a premium of approximately 27% to Kindred’s 90-day volume weighted average price for the period ending December 15, 2017, the last trading day prior to media reports regarding the potential transaction.

KND last traded at $9.42, two cents up on the day.


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Energous receives FCC certification for power-at-a-distance device

Energous receives FCC certification for power-at-a-distance device

Energous jumps after reporting FCC certification for power-at-a-distance device. Stockwinners.com
Energous receives FCC certification for power-at-a-distance device
Shares of Energous Corporation (WATT) are surging in pre-market trading after the company announced last night that the Federal Communications Commission has awarded certification of its first-generation WattUp Mid Field transmitter, which sends focused, RF-based power to devices at a distance.
“As the first FCC certification for power-at-a-distance wireless charging under Part 18 of the FCC’s rules, this development represents a new era of wireless charging, and opens up a tremendous opportunity for the electronics industry,”
the company stated in its press release announcing the certification.
Shares of small-cap Energous, which have frequently been volatile in the past around product announcements or reports implicating that the company may win a contract with a smartphone maker, are up $9.30, or 105%, to $18.14 in pre-market trading.


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Anika Therapeutics receives FDA clearance for bone void filler

Anika Therapeutics receives FDA 510(k) clearance for HA-based bone void filler

Anika Therapeutics says Monovisc approved in India. See Stockwinners.com Market Radar for Stock Upgrades, stock downgrades, stock earnings, stocks to watch
Anika Therapeutics receives FDA 510(k) clearance for HA-based bone void filler

Anika Therapeutics (ANIK) announced that its HA-based bone void filler received 510(k) clearance from the U.S. Food and Drug Administration and is indicated for filling bone voids or defects of the skeletal system, which are not intrinsic to the stability of the bone, created during surgery or resulting from traumatic injury.

HA-based bone  stands for therapeutics based on its proprietary hyaluronic acid (“HA”) technology. The bone void filler, which is composed of a synthetic, biocompatible bone graft substitute material, is injected into a void, hardens at body temperature, and is then resorbed and replaced by the growth of new bone during the healing process.

Over one million musculoskeletal procedures performed in the U.S. involve bone void filling, also known as bone grafting,, and such procedures are most commonly required for spinal fusion, trauma, and revision total joint replacement procedures.

While the use of autologous bone or autograft has been the gold standard of treatment for bone grafting, the increased risk of procedural complications has prompted a shift towards alternate treatments, such as synthetic, resorbable bone graft substitute materials.

The company estimates that the current market size for treating tibial plateau fractures, stress fractures around joints, and decompression of necrosed bone to be around $300M.

ANIK closed at $52.44.


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Nova Lifestyle enters blockchain frenzy

Nova Lifestyle to launch blockchain-based digital community

Nova Lifestyle enters blockchain frenzy. Stockwinners.com
Nova Lifestyle enters blockchain frenzy

Nova LifeStyle (NVFY) announced that the company has initiated design of a digital community that brings together designers and customers to deliver real time product and user experience built on Blockchain-empowered technology platform named The iDesign Blockchain Platform, which it believes to be a first in the furniture industry.

“iDesign Blockchain Technology Inc.,” a Nova LifeStyle subsidiary intends to establish a trusted digital ecosystem that links the experiences of independent product designers, customers and manufacturers with Nova-branded products on a creative global digital platform powered by Blockchain technology.

The iDesign Blockchain Technology Platform plans to target various artistic creator or designer as an innovation center, focusing on their ideation process to deliver enhanced user experience.

The company will implement these new initiatives with cash flow from existing operations.

Nova LifeStyle, Inc.  designs, manufactures, markets, and sells residential furniture for middle and upper middle-income consumers worldwide. The company develops upholstered, wood, and metal-based residential furniture for the living rooms, dining rooms, bedrooms, and home offices. It also offers sofas, chairs, dining tables, beds, entertainment consoles, cabinets, and cupboards.

CRYPTO TREND

Cryptocurrency revenues have been pointed to as reasons to be bullish on Advanced Micro Devices (AMD) and Nvidia (NVDA) in select research. Overstock (OSTK), Digital Power (DPW), Long Blockchain (LTEA), Seven Stars Cloud Group (SSC), Riot Blockchain (RIOT), Longfin (LFIN) and Social Reality (SRAX) are other stocks that have been touted, or promoted themselves, as a way to play the crypto theme.

NVFY closed at $2.51. It last traded at $2.95 in pre-market trading.


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