Industries across the board continue to suffer thanks to the COVID-19 pandemic. It seems no industry immune to the financial devastation it can cause, including the cannabis industry. Despite the increase in demand and sales of cannabis while people stay home, that hasn’t fixed the problem cannabis suppliers like Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) continue to have: a means of supplying that…
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This recent market turmoil has resulted in what I can only describe as a tectonic shift in the Canadian cannabis sector. Investors have moved from a growth-at-any-cost, risk-seeking base of retail investors to a much more conservative, long-term group of investors. Stock prices tell this story. In this article, I’m going to discuss why, despite more downside likely on the…
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Cannabis investors punished Canopy Growth (TSX:WEED)(NYSE:CGC) after a worse-than-expected earnings report revealing deep cracks in the industry. Canopy plunged as a result. For once, though, the drop looks less like a value opportunity than a wake-up call. But what’s the outlook for this cannabis stock, and why are investors so divided on its outlook? Let’s take a look. Is Canopy…
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You may have seen the recent news about Constellation (NYSE:STZ) exercising warrants to acquire additional shares in Canopy (TSX:WEED)(NYSE:CGC). This announcement was easy to overlook, partly because of its timing (the announcement came out after markets closed on a Friday), partly because Constellation is already Canopy’s largest shareholder, and mostly because of everything else happening in the world right now.…
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No business is truly crash-proof. However, there is one quality that can predict which TSX cannabis stocks are most resilient to market forces. This single, overriding quality is cash-richness. But which Canadian cannabis stocks are the most cash-rich? Let’s take a look at four big names to add to a watch list of Canadian marijuana producers. Go big, but take…
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If there’s one industry that has been incredibly frustrating for investors of late, it’s the cannabis industry. Canopy Growth (TSX:WEED)(NYSE:CGC) in particular used to be the darling of the industry, but that has all changed. WEED stock plummeted from all-time highs back in October 2018 after legalization. Since then, WEED stock has struggled to get anywhere near those highs again. Then, the…
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Canopy Growth’s (TSX:WEED)(NYSE:CGC) stock price lagged behind in March by 5.7%. This was followed by the company laying off 500 workers, as it was deemed a “non-essential” business in major provinces of the country. The layoff was a result of the marijuana giant having to shut down 23 of its stores in Manitoba, Saskatchewan, and Newfoundland and Labrador, along with…
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Some headlines are now saying that a significant recession could cause a demand surge for recreational cannabis in Canada. These headlines have caused some optimism in the sector for the first time in a while. I, however, don’t see how spending a higher percentage of one’s EI cheque on pot rather than rent makes sense. But perhaps folks prioritize needs…
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Canopy Growth (TSX:WEED)(NYSE:CGC) stock price was already in the throes of despair before the coronavirus crisis. The stock had already fallen dramatically from late 2018/early 2019 highs as the cannabis bubble burst. In March, Canopy Growth stock price continued to underperform the TSX, lagging it by 5.7%. During the month of March, all eyes were on developments related to the…
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Speculations on whether the cannabis industry is a defensive, non-cyclical consumer staple producer with resilient sales that remain strong during economic recessions will settle when financial results for the first calendar quarter of 2020 start creeping in. Until then, should cannabis investors consider industry leader Canopy Growth’s (TSX:WEED)(NYSE:CGC) stock a defensive play during the ongoing coronavirus-induced economic meltdown? Canopy Growth…
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