Shares of Canopy Growth (NYSE :), (TSX 🙂 continued their downward trajectory yesterday, caused by the company late last week, when it lost C $ 1.3 billion ($ 946.2 million) reported the fourth quarter.
If Monday's stock price drop of more than 5% could be considered a sound, it was that of the other shoe that fell after the disastrous earnings of the Smith Falls, Ontario-based company, as several analysts opened the week by downgrading the stock.
As of yesterday, Canopy reached $ 16.48 in New York and $ 22.26 in Toronto, down nearly 7%. That was in addition to the 20% slide that the stock took on Friday, as the Canadian cannabis grower announced it would try its strategy of being the first in every market.
Analysts from some of the largest banks in Canada – including the Bank of Montreal, the Royal Bank of Canada and CIBC – said the marijuana giant should work to regain its market share in Canada, while others pointed out its announced intentions to focus on its core markets in Canada, the US and Germany as healthy.
Canopy's net sales for the quarter were estimated at $ 107.9 million, up from the $ 94.1 million recorded in the same three-month period in the previous year. Last Friday, the company also renounced its goal of becoming EBITDA positive by the end of 2022, citing hurdles and uncertainties related to the COVID-19 crisis.
Markets responded immediately on Friday as the dip in Canopy's stock price dragged other industry players down, including Aphria (NYSE :), (TSX 🙂 and Aurora Cannabis (NYSE :), (TSX :), it saw decreases of 4.5% and 8.4%, respectively.
But these two shares recovered on Monday. Aphria achieved nearly 5% in New York to close at US $ 4.44 and in Toronto at C $ 6, an increase of approximately 3.25%; Aurora rose slightly to close at US $ 14.10 in New York. The upsurge in these stocks to open every other week is attributed to analysts who emphasize how Canopy's performance tends to affect the entire industry, but the latest results need to be viewed through a narrow lens and are specific to Canopy's issues is confronted.
They advised investors to take advantage of the sector reaction and buy the dip in Aphria and Aurora.
Auxly Marks 2.0 Milestone
The Auxly Cannabis Group (OTC:), (TSXV 🙂 distinguished itself Monday by publishing what is referred to as the highest cannabis 2.0 sale of a Canadian company as it reported its results.
The Toronto-based cannabis company, which trades in both Canada and the US, had sales of C $ 9.9 million ($ 7.3 million) and closed the quarter with a net loss of C $ 12, 8 million ($ 9.5 million).
The company's shares reached 4.3% in the OTC markets in New York, closing $ 0,3025. The stock reached a record high of US $ 0.8125 in August last year.
The 2.0 products Auxly specializes in are chocolate edibles and vapes.
CannTrust Saga Inches Along
Is it a glimmer of hope or just a footnote to the epic slide of CannTrust Holdings (OTC :)?
The controversial Canadian cannabis grower was notified last week that cultivation permits for his greenhouse operations in the Niagara region of Ontario will be restored. But will that make a difference?
The once prominent marijuana company, whose shares were delisted from the New York Stock Exchange on April 27, followed by their listing on the Toronto Stock Exchange on May 6, is now allowed to restart operations in those facilities. However, the company is still waiting to learn the fate of its factory in Vaughan, Ont.
The company has been under creditor protection since March, a move that followed recognition that it grew pot in unlicensed rooms last year. That was the beginning of the grower's decline, which almost wiped out the market capitalization.
