Canadian cannabis investors still waiting for a breakout company to emerge

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Canadian cannabis investors still waiting for a breakout company to emerge via TheGrowthOp

Canadian cannabis stocks are still mostly trading in lockstep as the sector continues to evolve, increasingly frustrating investors who are waiting for a leader to emerge from the group.

That was on display this past Thursday, after the largest producer by market capitalization, Canopy Growth Corp., reported a decline in net revenue and a $1.28 billion net loss for its most recent quarter. The drop was the latest leg in the sector’s lengthy decline, which has seen the benchmark North American Marijuana Index fall more than 30 per cent since reaching its 2019 high on March 22. In that time, six of the index’s Top Ten names have posted losses between 33 and 38 per cent.

Purpose Investments portfolio manager Greg Taylor believes licensed producers will continue to trade as a pack until some prove they can post multiple consecutive profitable quarters. One example came when Curaleaf acquired GR Companies Inc. on July 17. Its stock closed more than 17 per cent higher, when acquisitions usually result in the purchasing party trading lower on the day, Taylor said. Curaleaf was also able to make those gains on a day when the North American Marijuana Index only gained one per cent. Still, it closed more than six per cent down at $8.75 on Thursday.

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TheGrowthOp That is hemp... not Ingestible. It is also an example of an inexpensive and shoddy drying technique. No legit Canabis producer would grow this or dry like this.

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