On September 11, 2023, JW Asset Management, LLC made a notable addition to its portfolio by acquiring 100,000 shares of TerrAscend Corp (TSNDF, Financial). The transaction was executed at a trade price of $2.22 per share, bringing the firm's total holdings in TerrAscend Corp to 90,015,026 shares. This acquisition represents a significant 72.65% of JW Asset Management's portfolio and accounts for 31.36% of TerrAscend Corp's total shares. The transaction had a 0.08% impact on the firm's portfolio and resulted in a 0.11% change in its holdings.
About JW Asset Management, LLC
JW Asset Management, LLC, based in Armonk, New York, is a renowned investment firm with a portfolio equity of $275 million. The firm holds a diversified portfolio of 10 stocks, with a significant focus on the healthcare and consumer defensive sectors. Its top holdings include Catalyst Pharmaceuticals Inc (CPRX, Financial), Eli Lilly and Co (LLY, Financial), Novo Nordisk A/S (NVO, Financial), Celsius Holdings Inc (CELH, Financial), and Establishment Labs Holdings Inc (ESTA, Financial).
Overview of TerrAscend Corp
Founded in Canada, TerrAscend Corp (TSNDF, Financial) is a leading player in the drug manufacturers industry. The company, which went public on November 16, 2017, is committed to creating and delivering high-quality cannabis products and services that cater to the evolving needs of patients. It also provides education and support programs to physicians and patients through healthcare professionals. The company operates in a single segment, focusing on the cultivation, production, and sale of cannabis products. As of September 13, 2023, the company has a market capitalization of $600.208 million and a stock price of $2.12.
Financial Health and Performance of TerrAscend Corp
Despite its promising business model, TerrAscend Corp's financial health and performance metrics present a mixed picture. The company's Piotroski F-Score is 4, indicating average financial health. Its Altman Z score of -1.34 suggests potential financial distress. The company's cash to debt ratio is 0.12, ranking it 857th in the industry. TerrAscend Corp's return on equity (ROE) and return on assets (ROA) stand at -99.14% and -44.13% respectively, ranking it 910th and 917th in the industry. The company's gross margin and operating margin growth are both at 0.00%, indicating no growth in profitability.
Stock Analysis of TerrAscend Corp
As of the transaction date, TerrAscend Corp's stock price has declined by 4.5% since the transaction and has increased by 33.33% since its IPO. The year-to-date price change ratio stands at 90.85%. The company's GF Score is 54/100, suggesting poor future performance potential. Its balance sheet, profitability, growth, GF value, and momentum ranks are 4/10, 2/10, 0/10, 4/10, and 7/10 respectively. The company's GF Value is $5.67, indicating that the stock is potentially undervalued with a price to GF Value ratio of 0.37.
Momentum Analysis of TerrAscend Corp's Stock
The stock's RSI 5-day, 9-day, and 14-day values are 55.30, 63.82, and 64.68 respectively. The momentum index for 6 - 1 month and 12 - 1 month are 9.14 and -3.70 respectively. The stock's RSI 14-day rank is 1093, and its momentum index 6 - 1 month rank is 374.
Conclusion
In conclusion, JW Asset Management, LLC's acquisition of TerrAscend Corp shares represents a significant addition to its portfolio. Despite TerrAscend Corp's mixed financial health and performance metrics, the company's stock appears to be undervalued, suggesting potential for future growth. However, investors should exercise caution due to the company's poor GF Score and potential financial distress. This transaction is likely to have a significant impact on both JW Asset Management, LLC's portfolio and TerrAscend Corp's stock performance.
