Shares of Canopy Growth (NYSE :), (TSX 🙂 got a welcome boost yesterday, rising more than 7% at the close in both New York and Toronto after reporting first quarter results earlier in the day .
The Ontario-based cannabis grower – the largest company of its kind by market capitalization – posted sales of C $ 110.4 million (US $ 82.81 million), an increase of 22% compared to the same quarter last year.
The increase in profits is mainly due to increases in Canopy's medical marijuana sales, mainly in Canada, but also internationally, despite an 11% decline from recreational cannabis activities.
Even with rising revenues and a series of cost-cutting measures begun before the pandemic, including the reduction of 18% of the workforce since January, Canopy still posted a net loss of C $ 128.3 million (US $ 96, 31). For those looking for good news, this figure was significantly better than the corresponding quarter of the previous year, when the loss was 34% higher.
It was also less than what analysts expected, which could explain the market reaction.
Canopy Growth Monthly Chart
But with stock prices still down about 45% over the past year, half a decent quarter may not be enough to convince investors that the weed giant has turned a corner.
So what's the company's strategy now? That depends on which side of the border it is approaching.
The main focus on the US market: the planned launch next month of a line of CBD products under the Martha Stewart brand.
Meanwhile, in Canada, where Canopy has lost some ground in the dried cannabis market, pressure will be on the launch of CBD-infused beverages.
Tilray: Loses More Than Double Consensus Expectations
Tilray's stock (NASDAQ 🙂 meanwhile closed 6.8% yesterday, but fell in trading after hours, as the Seattle-based cannabis grower reported his second-quarter earnings. the bell.
And there was no mystery as to why the stock left after trading hours. The company posted a loss of C $ 81.7 (US $ 61.33) million – more than. The losses resulted from a combination of lower than expected sales, which amounted to $ 50.4 million, and some impairment charges.
But in highlighting the positive, CEO Brendan Kennedy pointed to the company's growth area and said, "We are particularly encouraged by the second quarter sales growth of our international medical operations."
"International Medical revenues are now higher than our Canadian Medical business and we expect growth in this segment to outpace our other segments in the coming quarters."
Tilray's stock continues to suffer, down more than 80% in the past year.
Green Thumb Bets On Vegas
Shares of Green Thumb Industries (OTC :), (CSE 🙂 have turned since they hit all-time low in March, with an increase of about 260% since March 18. And now the Chicago-based cannabis packaging manufacturer and retailer wants to continue to fuel the comeback, announcing a new partnership with Berner's Cookies – a top-selling US cannabis brand – to launch a Cookies store on the Las Vegas Strip in early 2021. to launch.
Founder and CEO of Green Thumb Ben Kovler commented on the deal:
"This is a unique opportunity to collaborate with Berner and his visionary team in one of the most popular tourist spots in the world."
After exceeding sales expectations last quarter, Green Thumb will report its second quarter earnings on August 12, after the closing clock. Last week, a research analyst with Cantor Fitzgerald predicted Green Thumb for the quarter. Cantor updated the stock target price price to $ 21 from $ 15.
Cancer Treatment: The Next Frontier?
Other Important Developments in the Cannabis Market: Researchers at the University of Newcastle in Australia have found that marijuana can be a viable treatment for certain types of cancer.
A three-year study has shown that a modified cannabis strain can fight certain types of cancer cells without harming the human body's own cells. The strain used, called "Eve," does not contain much THC, but has a very high amount of CBD, which has been shown to be effective in treating leukemia cells, the researchers said.
Peer-reviewed studies and further research must be completed to determine exactly how effective the strain is and how it performs against other types of cancer cells.
