On September 19, 2023, JW Asset Management, LLC (Trades, Portfolio), a prominent investment firm, increased its holdings in TerrAscend Corp (TSNDF, Financial), a leading cannabis products and services provider. This article delves into the details of the transaction, the profiles of the guru and the traded company, and the potential implications of the trade.
Details of the Transaction
The firm added 15,000 shares of TerrAscend Corp to its portfolio at a trade price of $2.02 per share. This transaction increased the firm's total holdings in the company to 90,160,026 shares, representing 66.26% of its portfolio and 31.41% of TerrAscend Corp's total shares. The trade had a minor impact of 0.01% on the guru's portfolio and resulted in a slight 0.02% change in the traded company's stock.
Profile of the Guru: JW Asset Management, LLC (Trades, Portfolio)
JW Asset Management, LLC (Trades, Portfolio), based in Armonk, NY, is a renowned investment firm with a portfolio of 10 stocks, primarily in 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). The firm's equity stands at $275 million. 
Overview of TerrAscend Corp
Founded in Canada, TerrAscend Corp (TSNDF, Financial) is a single-segment company focused on the cultivation, production, and sale of cannabis products. The company, which went public on November 16, 2017, has a market capitalization of $578.529 million. Since its IPO, the company's stock has appreciated by 26.92%, with a year-to-date price change of 81.67%. The company's GF Score stands at 55/100, indicating a poor future performance potential. 
Analysis of TerrAscend Corp's Financials
Despite a PE percentage of 0.00, indicating a loss, TerrAscend Corp's GF Valuation suggests a possible value trap, with a GF Value of 5.78 and a price to GF Value of 0.35. The company's Financial Strength rank is 4/10, while its Profitability Rank and Growth Rank stand at 2/10 and 0/10, respectively. The company's Piotroski F-Score is 4, and its Altman Z score is -1.44, indicating potential financial distress. The company's cash to debt ratio is 0.12, ranking it 860th in the industry.
TerrAscend Corp's Industry Position
In the Drug Manufacturers industry, TerrAscend Corp has a ROE of -99.14 and a ROA of -44.13, ranking it 921st and 929th, respectively. The company's gross margin growth and operating margin growth are both at 0.00, while its 3-year revenue growth stands at 17.80. The company's EBITDA growth over the same period is 11.90, and its earning growth is 4.70.
TerrAscend Corp's Stock Performance
The company's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 33.67, 47.93, and 53.83, respectively. The company's Momentum Index 6 - 1 Month is 20.98, ranking it 274th, and its Momentum Index 12 - 1 Month is 9.49.
Conclusion
In conclusion, JW Asset Management, LLC (Trades, Portfolio)'s recent acquisition of TerrAscend Corp shares is a strategic move that further strengthens its position in the healthcare sector. Despite TerrAscend Corp's financial challenges, the firm's investment could potentially yield significant returns in the long run, given the growing cannabis market. However, investors should exercise caution due to the company's poor financial health and growth prospects.
