Close menu




November 19th, 2021 | 13:13 CET

Sativa Wellness Group, Aurora Cannabis, TUI - Rising consumer spending on wellness and travel

  • Cannabis
Photo credits: pixabay.com

According to Statista, the health and wellness market is worth around EUR 105 billion. More than USD 900 billion is spent annually worldwide on beauty and antiaging alone. Spending on travel is also increasing significantly after a sharp drop in the wake of the Corona pandemic. Reason enough to take a look at three stocks of industry representatives. Who is making the running?

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: SATIVA WELLNESS GROUP INC | CA80403E1043 , AURORA CANNABIS | CA05156X8843 , TUI AG NA O.N. | DE000TUAG000

Table of contents:


    Sativa Wellness Group - Another step closer to its lofty goals

    The legalization of cannabis has created an industry worth billions. Sativa Wellness wants to cut itself a piece of this pie and set itself very lofty goals in the process. The Company intends to become one of the leading manufacturers and high-quality distributors of CBD and wellness products and services in Europe. Elemental to this is the implementation of full vertical integration of supply chains and the expansion of the distribution network.

    Currently, Sativa is focused on the UK, operating in three business areas. CBD products for consumers are offered under the Goodbody Botanicals brand. With its subsidiary PhytoVista, the Group operates CBD and hemp testing laboratories. Goodbody Wellness clinics provide testing services - including COVID testing - for clinics, as well as direct-to-consumer and direct-to-business services via a telemedicine consultation service. Sativa now has more than 80 clinics in operation. Most recently, it announced a distribution partnership in Germany.

    Recently, the Company announced a partnership with Superdrug Stores to offer a full range of blood testing services. The agreement includes 40 Superdrug locations where trained nurses draw blood for a range of tests. Customers order the test they want on the Goodbody Clinic website. They can then choose to have a personal blood test, select a Superdrug clinic or use one of the participating Goodbody stores to collect the blood. Commenting on the new developments, Geremy Thomas, Executive Chairman, said, "Our Goodbody clinics' partnership with Superdrug for wellness blood testing expands the options for customers. It allows them to have the test they want at a location that is convenient for them and allows them to take control of their wellness."

    The Company continues to exceed the goals it has set for itself, reflected in its most recently released quarterly data. Over the same quarter last year, third-quarter revenue was up 977% to CAD 8.6 million, nearly a tenfold increase. Gross profit increased to CAD 4.59 million, with an even slightly higher rate of growth. The gross profit margin was reported at the previous year's level of 53%. After a loss of CAD 1.19 million, the Company managed to be in the black with a net profit of CAD 14,000 in Q3. The Company has a moderate valuation level with a stock market value of around CAD 26 million.

    TUI - The USA opens its doors again for travelers

    For a few days now, it has been possible for EU citizens to enter the USA again, provided they have been fully vaccinated and have tested negative for the coronavirus. The German Lufthansa stated that there is great demand, and it expects a load factor on the pre-crisis level in the coming weeks.

    Christmas shopping in New York or a beach vacation in Florida attracts many tourists to the United States. "We see a significant catch-up effect in travel, both in short-term bookings, especially by couples and small groups for November and December, and in long-term trips by families during the Easter and summer vacations," explained newly appointed TUI Germany CEO, Stefan Baumert.

    This news has completely bypassed the share. In the first quarter, the share certificates still cost around EUR 4.50 at times, and now EUR 2 less is being called on the stock exchange. That means that the Group is still valued at EUR 2.8 billion. The average analyst estimates for 2021 are sales of EUR 5.6 billion and a loss of EUR 2.2 billion. The turnaround is expected to occur in 2022, when experts anticipate sales of EUR 16 billion and a return to the black, with profits of EUR 234 million. Overall, analysts currently rate the stock as "hold".

    Aurora Cannabis Inc - Can the world's number two finally take off thanks to a reduced quarterly loss?

    Canadian Company Aurora Cannabis, based in Edmonton, Alberta, is the world's second-largest cannabis producer. With a market capitalization of around CAD 1.9 billion, the Company has an 8.74% stake in the Prime Alternative Harvest Index, just behind market leader Tilray (8.96%). The producer of medical and consumer cannabis products, which has been in the red for years, has recently come under pressure on the stock market, like other cannabis stocks. But there is light at the end of the tunnel.

    Aurora managed to narrow its loss to CAD -0.06 in the past quarter, down from CAD -0.90 in the corresponding quarter last year. Analysts had forecast a loss of CAD -0.256. After the announcement of the figures, the share price increased by up to 7%. One reason for the friendly attitude of investors is likely to be rooted in the expectation that there could soon be federal marijuana legislation in the US, which could allow companies like Aurora Cannabis to access regular services, especially in the banking sector.

    In anticipation of an imminent solution in the US, Aurora had already acquired Reliva LLC. in 2020, one of the largest US producers of CBD products. It is also in line with the strategy of the new CEO Miguel Martin, in office since September last year, to focus on profitable markets and niches in the future. This focus definitely makes sense.


    All three of the stocks mentioned above are benefiting from rising consumer spending in the fields of wellness, health and travel. TUI is an attractive turnaround story at the current share price level. Sativa Wellness Group offers an exciting investment story at a moderate valuation. If Aurora manages to reduce its loss further, the stock is also worth a look.


    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.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Nico Popp on February 2nd, 2023 | 18:04 CET

    Bulging pipeline at BioNTech, Cardiol Therapeutics - what is the problem at Aurora Cannabis?

    • Biotechnology
    • Cannabis
    • Cancer

    He who heals is right. It is not quite that simple with active ingredients that are about to be approved. Drugs and vaccines must undergo extensive studies and, last but not least, have to prevail against the existing competition. We look at the pipelines of three hot stocks and venture a forecast: Where is the greatest potential for investors?

    Read

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on November 28th, 2022 | 10:41 CET

    SynBiotic SE, Cardiol Therapeutics, Canopy Growth - Like hitting the jackpot

    • Cannabis
    • Investments

    The final draft of the German government's key issues paper on the legalization of cannabis in Germany is ready, and final approval is likely to be a mere formality. For the companies concerned, this is equivalent to winning the lottery. The global cannabis market is expected to grow by 13.9% annually to USD 64.91 billion between 2022 and 2027. However, these profit increases have yet to reach the stock market. Some companies, for example, are trading below cash, while others lost more than 90% of their value in the correction that has been underway since 2019.

    Read