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Fly News Breaks for August 13, 2019
Aug 13, 2019 | 06:05 EDT
Piper Jaffray analyst Michael Lavery last night initiated coverage of Cronos Group (CRON) with an Overweight rating and $18 price target. The analyst expects "strong" sales growth from Cronos, driven by "sustainable category momentum." The company's partnership with Altria (MO) provides important capital and access into 230,000 US retail outlets, as well as regulatory and vapor product expertise, Lavery tells investors in a research note. He expects Cronos to have "modest" near-term revenues from Canadian cannabis production, but believes it has "significant" potential growth opportunities with CBD products in the U.S.
News For CRON;MO From the Last 2 Days
Sep 20, 2019 | 13:19 EDT
British American Tobacco issued a statement "highlighting the need for robust and effective regulation of vapour products, following the recent tragic consumer cases reported in the media." Dr David O'Reilly, Director of Scientific Research at British American Tobacco, said: "As the world's second largest vapour company, providing high quality products to more than 9 million consumers worldwide, we take consumer safety very seriously. Quality and safety testing are a crucial part of the way we develop and manufacture our products and we scrutinise the ingredients we use in them. We are fully supportive of the efforts of the various government agencies in the US, Canada and around the world who are working to understand the exact cause of the recent tragic consumer cases. To the best of our knowledge, no product developed or manufactured by BAT has been involved in these cases. However, these cases clearly demonstrate the need for robust and effective regulation which ensures high product standards, particularly with regard to the testing and reporting of the ingredients used in vaping liquids. Governments also need to ensure relevant authorities enforce manufacturer compliance with these regulations." Other names in the tobacco space include Altria Group (MO), Imperial Brands (IMBBY) and Philip Morris (PM). Reference Link
Sep 19, 2019 | 16:29 EDT
Stocks spent the morning in the green with the S&P back in striking distance of its prior record high following yesterday's widely anticipated quarter point rate cut from the Federal Reserve. However, the averages... To see the rest of the story go to See Story Here
Sep 19, 2019 | 16:28 EDT
MKM Partners analyst Bill Kirk initiated Cronos Group with a Neutral and C$14 price target.
Sep 19, 2019 | 12:33 EDT
The CDC said in a statement on its website: "There are 530 cases of lung injury reported from 38 states and 1 U.S. territory. Seven deaths have been confirmed in 6 states. CDC has received complete sex and age data on 373 of 530 cases. Nearly three fourths (72%) of cases are male Two thirds (67%) of cases are 18 to 34 years old. 16% of cases are under 18 years and 17% are 35 years or older. All reported cases have a history of e-cigarette product use or vaping. Based on initial data from certain states we know: Most patients have reported a history of using e-cigarette products containing THC. Many patients have reported using THC and nicotine. Some have reported the use of e-cigarette products containing only nicotine. We do not yet know the specific cause of these lung injuries. The investigation has not identified any specific e-cigarette or vaping product (devices, liquids, refill pods, and/or cartridges) or substance that is linked to all cases." Juul, in which Altria Group (MO) has a 35% stake, is the dominant e-cigarette maker in the U.S. Altria and Philip Morris (PM) are currently in merger talks. Reference Link
Sep 19, 2019 | 07:44 EDT
MediPharm Labs (MEDIF) announced that it has signed a multi-year contract manufacturing agreement for the filling and packaging of vaporizer devices, subject to approval by Health Canada, for Cronos Group's adult-use brand, COVE. MediPharm Labs, a wholly-owned subsidiary of the Company, and a wholly-owned subsidiary of Cronos Group, entered into a CMA where MediPharm, utilizing its proprietary expertise and equipment, will provide filling of high-quality formulated concentrate, labelling and packaging services to exacting specifications at scale for Cronos Group. The initial term of the agreement is two years with an option for renewal.
Sep 18, 2019 | 19:04 EDT
CBS (CBS), AT&T's (T) WarnerMedia, and Viacom (VIAB) have said that they will start pulling e-cigarette advertising from their airways, CNBC's Megan Graham reports. A spokesman for CBS said the company has stopped taking future e-cigarette advertising, while a spokeswoman for WarnerMedia said that it is dropping e-cigarette advertising from its networks, including CNN, TNT, and TBS, Graham says. "After reviewing the recent reports regarding the potentially serious health threats posed by e-cigarettes, Viacom has revised its policies regarding e-cigarette advertising, and will no longer air ads in this category effective immediately," a spokesperson for the company said. Publicly traded companies in the tobacco space include Altria Group (MO), British American Tobacco (BTI), Imperial Brands (IMBBY) and Philip Morris (PM). Juul, one of the most popular e-cigarette brands, is 35% owned by Altria. Reference Link
Sep 18, 2019 | 08:13 EDT
The House subcommittee that oversees consumer product investigations is threatening to subpoena Juul, saying the e-cigarette maker is not cooperating with a congressional probe looking at whether the company intentionally targeted kids, CNBC's Angelica LaVito reports. Subcommittee Chairman Raja Krishnamoorthi says Juul has not fully complied with the panel's request and that the company has until October 1 to respond. Lawmakers have made several requests to Juul co-founder James Monsees and Chief Administrative Officer Ashley Gould, including the list of schools that received funding from Juul for anti-vaping curriculum and the contract Altria signed with Juul when it took a 35% stake in the company late last year. Reference Link
Sep 18, 2019 | 07:08 EDT
Citi analyst Adam Spielman believes a merger between Philip Morris (PM) and Altria Group (MO) is getting more probable. If shareholder pressure was going to cause the managements to cancel the deal talks, we probably would have heard by now, Spielman tells investors in a research note. Juul is unlikely to be a big part of the merger, so the crackdown on e-vapor flavors will not make much of a difference to the merger, adds the analyst. He believes that if there's a "plain vanilla merger," the emphasis will be on the potential profit from new products in the U.S. However, there are "significant weaknesses to this argument," says Spielman.