December 2nd, 2021 | 11:02 CET
Bayer, Ayurcann, JinkoSolar - Excellent prospects
"Release the hemp!" cult presenter Stefan Raab called for the legalization of cannabis years ago in a song he produced himself. But not Jamaica, but the traffic light coalition with SPD, FDP and the Greens caused jubilation in the various communities. The release of the drug opens up great opportunities for young companies as well as investors. In contrast to Germany, other countries have already made more progress. Currently, the cannabis sector is in correction mode on the stock market, but the long-term prospects are excellent.
time to read: 3 minutes
|
Author:
Stefan Feulner
ISIN:
BAYER AG NA O.N. | DE000BAY0017 , AYURCANN HOLDINGS CORP | CA05476A1012 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007
Table of contents:
"[...] We are a producer and distributor of medicinal products and thus cover a crucial step in the value chain, especially within the cannabis industry. [...]" Philip Schetter, CEO, Cantourage Group SE
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
Tag cloud
Shares cloud
Ayurcann - Growth confirmed
The legalization of cannabis could become a billion-dollar business and bring enormous additional revenue into the state coffers. The "German Cannabis Report" by the British analysis firm Prohibition Partners calculates a market volume for medical cannabis in Germany of EUR 350 million in 2021 and EUR 7.7 billion by 2028. Germany is therefore already in the top one-third but still far from the global leaders. According to Stats Canada and Equity Research, the legal Canadian cannabis market volume of USD 3.1 billion in 2020 puts the North American country in second place, with only the market in the United States being significantly more powerful. Cannabis has already been legal in Canada since 2018.
Analysts calculate a tripling of the market to about USD 10.1 billion due to the cannabis 3.0 wave, which includes the production of health and wellness products. The business with ointments, lotions, oils, and creams is expected to boost the cannabis industry significantly. The production of such products is handled by one of the leading B2B post-harvest solution providers, Ayurcann. The Company focuses on providing scalable custom processes and pharmaceutical-grade products to Canada's recreational and medical cannabis industries. In doing so, customers can choose from 40 products ranging from creams to vape pens to balms developed by Ayurcann and bring them to market under their respective brands. Customers include global brands such as Green Bee, Her Highness from the USA and Innocan Pharma from Israel.
The third-quarter figures, the third consecutive quarter with positive operating results, confirm the emerging trend. Ayurcann reported net sales of CAD1.9 million for the three months ended Sept. 30, 2021, compared with CAD0.8 million for the three months ended Sept. 30, 2020 - a 137% year-over-year increase. Operating income was CAD931,000, up more than six-fold from the same period last year, with a gross margin at a strong 49%. Operationally, the Phase 2 expansion of the Pickering facility was completed, increasing extraction capacity to up to 300,000 kg of input biomass and 2 to 3 million cannabis 2.0 and 3.0 products filled and packaged.
Igal Sudman, CEO of Ayurcann, said, "This quarter has once again proven Ayurcann's ability to achieve profitability and expand its market share. Ayurcann continues to serve its customers and grow its revenues without losing sight of net profit, and acts responsibly to its shareholders and other stakeholders." The Ayurcann share, which also trades in Frankfurt, is worth a closer look ahead of another cannabis hype.
JinkoSolar - Share turns
Solar module manufacturer JinkoSolar exited trading with a 6% loss after announcing its third-quarter numbers. With sales of USD 1.33 billion, the Company achieved its internally set targets but remained below the consensus of analysts' estimates. For the period, total solar module shipments were 4671 megawatts, along with 322 megawatts of cells and wafers. Net income was USD 30.1 million, up +193.2% from the second quarter. Earnings were USD 0.16 per share.
The outlook for the full year caused disappointment. The solar producer expects total shipments, including solar modules, solar cells and solar wafers of 22.8 to 24.3 gigawatts. Previously, 25 to 30 GW had been forecast by the Company. Revenue is expected to be between USD 1.8 million and USD 2.2 million. Again, analysts were expecting higher revenues of around USD 2.29 billion. Of note yesterday was the stock's rebound after testing support at USD 52.50. If this remains in place, there is an interesting trading opportunity despite the rather sobering figures.
Bayer - Investing in the future
The share chart of the chemical and agricultural Company indeed looks anything but promising. A further break of the EUR 45.00 mark could result in a test of the ten-year low at EUR 39.91. If the share price also slips below this level, the saying applies: "Save yourself, if you can!". As long as the glyphosate issue still hovers over everything, a sustained recovery is unlikely to be possible.
Nevertheless, the Leverkusen-based Company continues to prepare for the future and is investing around EUR 100 million in sustainable health products. The Company aims to further promote innovation, production and consumption of its consumer health products, which include global brands such as Aspirin, Bepanthen, Claritin and Elevit. The investment represents 2% of the Consumer Health division's sales, a company statement said.
The legalization of cannabis opens the door to a billion-dollar market. Canadian company Ayurcann makes products for international partners and has shown relentless growth in recent quarters. In contrast, JinkoSolar disappointed with their results, and extreme caution is advised for Bayer.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.
The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.