Investors searching for a bandage to stanch the bleeding in pot stocks aren’t going to find it in third-quarter earnings.
Bank of Montreal analyst Tamy Chen expects industrywide sales to Canada’s provincial wholesalers to decline 20 per cent quarter-over-quarter amid a slow rollout of retail storefronts that has left them sitting on too much inventory from licensed producers, or LPs. “This performance comes while the industry has faced multiple headwinds,” Azer wrote. “We look for indications on whether category headwinds are beginning to abate.”
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