On September 18, 2023, JW Asset Management, LLC (Trades, Portfolio), a prominent investment firm, increased its holdings in TerrAscend Corp (TSNDF, Financial), a leading cannabis company based in Canada. The firm added 25,000 shares to its portfolio, bringing its total holdings to 90,145,026 shares. This article provides an in-depth analysis of the transaction, the guru's profile, and the traded stock's performance and valuation.
About JW Asset Management, LLC (Trades, Portfolio)
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's 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). With an equity of $275 million, the firm currently holds ten stocks in its portfolio. 
Transaction Details
The recent transaction saw JW Asset Management, LLC (Trades, Portfolio) add 25,000 shares of TerrAscend Corp at a trade price of $2.06 per share. This move increased the firm's stake in TerrAscend Corp by 0.03%, making it 67.55% of the firm's portfolio. The firm now holds 31.41% of TerrAscend Corp's total shares.
Overview of TerrAscend Corp
TerrAscend Corp (TSNDF, Financial), a single-segment company, is focused on creating and delivering quality cannabis products and services that meet the evolving needs of patients. The company, which went public on November 16, 2017, also provides education and support programs to physicians and patients through healthcare professionals. As of September 20, 2023, the company has a market cap of $574.495 million and a stock price of $2.02. However, the company's PE percentage is currently at 0, indicating a loss. 
Stock Valuation and Performance
According to GuruFocus, TerrAscend Corp's GF Value is $5.88, with a Price to GF Value ratio of 0.34. This suggests that the stock may be a possible value trap, and investors should think twice before investing. Since its IPO, the stock has gained 27.04%, and its year-to-date gain stands at 81.85%. However, the stock's GF Score is 55/100, indicating poor future performance potential.
Financial Health and Profitability
TerrAscend Corp's financial strength is ranked 4/10, while its profitability rank is 2/10. The company's growth rank is currently not applicable. The company's Piotroski F-Score is 4, and its Altman Z score is -1.37, indicating potential financial distress. The company's cash to debt ratio is 0.12, ranking it 860th in the industry.
Industry and Performance Metrics
Operating in the Drug Manufacturers industry, TerrAscend Corp has a return on equity (ROE) of -99.14 and a return on assets (ROA) of -44.13. The company's gross margin growth and operating margin growth are currently not applicable. However, the company has seen a 17.80% growth in revenue over the past three years, with its EBITDA and earnings growing by 11.90% and 4.70%, respectively.
Momentum and Predictability
TerrAscend Corp's 14-day RSI is 53.96, ranking it 993rd in the industry. The company's 6 - 1 month momentum index is 15.33, ranking it 370th. However, the company's predictability rank is currently not available.
In conclusion, JW Asset Management, LLC (Trades, Portfolio)'s recent acquisition of TerrAscend Corp shares could potentially influence the stock's performance and the firm's portfolio. However, given TerrAscend Corp's current financial health and performance metrics, investors should exercise caution.
