On September 15, 2023, JW Asset Management, LLC (Trades, Portfolio), a prominent investment firm, added to its holdings in TerrAscend Corp (TSNDF, Financial), a leading cannabis company based in Canada. This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the potential implications for value investors.
Details of the Transaction
The firm acquired an additional 85,000 shares of TerrAscend Corp at a trade price of $2.18 per share. This transaction increased the firm's total holdings in the company to 90,120,026 shares, representing 31.40% of the guru's holdings in the traded stock. The trade had a 0.07% impact on the guru's portfolio and increased the position of the traded stock in the portfolio to 71.43%. The transaction indicates a significant confidence in the future performance of TerrAscend Corp.
Profile of the Guru
JW Asset Management, LLC (Trades, Portfolio), based in Armonk, New York, is a renowned investment firm with a focus on the healthcare and consumer defensive sectors. The firm currently holds 10 stocks in its portfolio, with a total equity of $275 million. 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 the Traded Company
TerrAscend Corp, with a market capitalization of $558.501 million, is a cannabis company that cultivates, produces, and sells cannabis products. The company, which operates in a single segment, also provides education and support programs to physicians and patients through healthcare professionals. Since its IPO on November 16, 2017, the company's stock has seen a 25.16% increase. The current stock price stands at $1.99.
Analysis of the Traded Stock
The stock's PE percentage is currently at 0.00, indicating that the company is at a loss. The GF Value of the stock is 5.88, and the price to GF Value is 0.34, suggesting that the stock may be undervalued. Since the transaction, the stock has seen a -8.72% change, while the year-to-date price change ratio stands at 79.15%. The GF Score of the stock is 55/100, indicating a poor future performance potential.
Financial Health of the Traded Company
The financial strength of TerrAscend Corp is ranked 4/10, while its profitability rank is 2/10. The company's growth rank is 0/10, indicating no significant growth. The Piotroski F-Score is 4, and the Altman Z score is -1.37, suggesting potential financial distress. The company's cash to debt ratio is 0.12, ranking 860th in the industry.
Performance of the Traded Stock in the Industry
In the Drug Manufacturers industry, TerrAscend Corp's ROE and ROA rank 921st and 929th, respectively. The company's gross margin growth and operating margin growth are both at 0.00. The 3-year revenue growth is 17.80%, while the EBITDA growth for the same period is 11.90%. The earning growth over the past three years is 4.70%.
Momentum and Predictability of the Traded Stock
The stock's RSI 5 day, RSI 9 day, and RSI 14 day are 52.01, 60.11, and 62.18, respectively. The momentum index 6 - 1 month and momentum index 12 - 1 month are 15.33 and 10.19, respectively. The stock's predictability rank is not available.
In conclusion, the recent transaction by JW Asset Management, LLC (Trades, Portfolio) in TerrAscend Corp reflects a strong belief in the company's potential despite its current financial challenges. This move could have significant implications for the stock and the guru's portfolio in the future.
