|Bid||46.30 x 0|
|Ask||46.38 x 0|
|Day's Range||45.45 - 47.60|
|52 Week Range||17.16 - 76.68|
|Beta (3Y Monthly)||2.53|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
After a week of earnings reports from some of the largest cannabis producers in Canada and a month of legal marijuana, a clear picture has emerged: the shortages the country experienced on the first day of recreational legalization occurred, in large part, because the heavyweights didn’t ship very much pot.
Trulieve Cannabis Corp (TCNNF) is a licensed medical cannabis company set to release its Q3 2018 earnings on November 19 at 10:00 AM ET. Analysts expect Trulieve to report revenues of 35.1 million Canadian dollars for the third quarter of 2018. Trulieve is a vertically integrated cannabis company involved in the cultivation, production, and commercialization of cannabis products in the State of Florida.
MedMen’s (MMNFF) reported revenues are generated from direct sales through its retail stores. The company has reported no material revenues from cultivation or production wholesale operations in the fiscal year ended June 30.
Cannabis stocks have made several investors wary because of their high level of volatility. Earlier this week, some of the companies that reported earnings such as Canopy Growth (WEED), Tilray (TLRY), and Aurora Cannabis (ACB) (ACBFF) missed analysts’ estimates by a large margin, and the stocks got hammered. In an interview with CNBC, Andrew Left of Citron Research was largely pessimistic on the Canadian cannabis industry and expects that cannabis stocks will fall in the near term.
On November 15, the widely followed host of Mad Money on CNBC, Jim Cramer, gave his opinions on the cannabis industry. Cramer pointed investors to Canopy Growth (WEED) (CGC), the Canadian cannabis (HMMJ) giant, because of its backing from Constellation Brands as a result of the latter’s $4 billion investment.
There was a flurry of earnings releases this week from leaders of the Canadian cannabis industry. Here are the winners and losers.
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.
Canada-based pot producer Canopy Growth Corp. posted a sequential decline in quarterly revenue Wednesday, mounting losses and said it hadn’t received a material order of recreational cannabis during the quarter.
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.
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.