|Bid||46.40 x 0|
|Ask||46.60 x 0|
|Day's Range||43.85 - 48.78|
|52 Week Range||16.62 - 76.68|
|Beta (3Y Monthly)||2.53|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||66.83|
Data shows that many traders are short pot stocks like Canopy Growth Corp (TSX:WEED)(NYSE:CGC). Are they right?
CORAL GABLES, FL / ACCESSWIRE / November 15, 2018 / Marijuana stocks saw a trend reversal on Thursday. Shares of many cannabis stocks that were hit hard over the last few weeks have managed to turn around in price. Since Canada's legalization, a number of new industry events have happened.
Aurora Cannabis Inc (TSX:ACB)(NYSE:ACB) is a high-profile pot stock that could be looking for a beverage maker to partner with.
Canopy Growth Corp (TSX:WEED)(NYSE:CGC) just released earnings for the quarter ended just before legalization. Here's what you need to know.
During the second quarter, Canopy Growth’s (WEED) (CGC) operating losses widened from ~$1 million to almost $214 million. The company reported a net loss of $330 million, which widened from losses of $1.6 million a year ago in 2017.
During the second quarter, Canopy Growth’s (WEED) (CGC) registered patients grew almost 34% YoY (year-over-year) to 84,400 patients from 63,000 patients. During the same period, the company’s average selling price per gram increased 24% to $9.87 from $7.99 a year ago. The company stated that the average selling prices increased due to a change in the product mix, which had higher prices. Higher priced products sold in Germany at $13.58 per gram also lifted the average selling prices YoY.
On November 14, Canopy Growth (WEED) (CGC) reported its second-quarter earnings, which largely disappointed the market. As a result, the stock took a beating with an 11% decline to $34.3. The company reported revenues of 23.3 million Canadian dollars, which missed analysts’ estimate of 61.7 million Canadian dollars.
In its earnings call, Tilray (TLRY) stated that its Canadian entity will serve as a production hub to meet global cannabis demand and that its Portugal entity will primarily serve as a distribution hub for global markets, specifically focusing on the European Union. The company hopes to create a strong presence in Latin America with its medical cannabis products in Chile and Brazil.
Disappointing quarterly results and a broader market pullback hurt the big Canadian marijuana stocks -- at least temporarily.
Canopy Growth Corp.'s shares fell more than 10 per cent after the cannabis producer reported a wider quarterly loss and revenue slowdown as operating expenses soared ahead of Canada's legalization of recreational pot, which also served as a "distraction" for medical patients. The slowdown in revenues during the quarter ended Sept. 30 stemmed from "hiccups" in shipping medical cannabis to Germany and the "hubbub" around the legalization of adult use pot on Oct. 17 distracting its medical patient base, said Canopy's co-chief executive Bruce Linton.
Canada's marijuana-stocks bubble will pop or at least deflate next year, as soaring valuations hit financial realities, said Chris Walsh, founding editor of Marijuana Business Daily.
Canopy Growth reported deeper losses for fiscal Q2 despite a jump in average sales prices, rounding out a busy earnings week for marijuana stocks.
Tech stocks led an early rally Wednesday as tame inflation data drove opening trade, and earnings sent Canada Goose well beyond a buy point.
The Dow Jones industrial average jumped 200 points early on tame inflation, but slashed gains as Apple hit new recent lows. Canada Goose flew and Tesla outperformed.
WeedMD (WMD) is a Canada-based licensed producer of medical marijuana. On November 13, the company announced that Health Canada approved its cannabis sales license for cannabis cultivated at its greenhouse in Ontario. The below chart lists some key highlights of WeedMD’s greenhouse. According to the company’s press release, the original license, which was issued under the Access to Cannabis for Medical Purposes regulations, was migrated to the license issued under the Cannabis Act regulations.
During its 3Q earnings call, Tilray (TLRY) stated that the recreational cannabis market will play a meaningful role for the company as it ramps up supply through increased production capacity. The company updated investors that it recently signed a supply agreement with the province of Prince Edward Island and that its products are currently available in eight provinces. The company is scaling production capacity in anticipation of strong recreational demand.
“It is the first time in our history that I’m aware of where we actually had a slowdown, but I think it was more of a distraction than a pattern,” Bruce Linton, head of the No. 2 pot producer by market value said on the company’s earnings call Wednesday. Canopy spent much of the fiscal second quarter, which ended two and a half weeks before Canada legalized recreational pot on Oct. 17, “stress-testing” the provinces’ sales systems at their request. Canopy shares were down 7.7 percent to C$46.49 at 10:38 a.m.
On November 14, Canopy Growth (WEED) reported its second-quarter earnings. The company reported revenues of 23 million Canadian dollars, which grew nearly 33% YoY (year-over-year) from 17.6 million Canadian dollars. Other cannabis companies (MJ) reported their earnings earlier this week. Aurora Cannabis (ACB) (ACBFF) reported sales growth of 258%. Tilray (TLRY) reported revenue growth of 60% YoY, while Cronos Group (CRON) reported revenue growth of 187% YoY.
In its third quarter, Tilray (TLRY) recorded sales growth of 86% year-over-year to $10 million from $5.4 million. The company’s wholesale distribution to international markets also aided in its third-quarter sales growth. What drove sales growth?