Pot stock pennys

This pot stock was thought of as one of the top companies in the cannabis industry. Canopy Growth (WEED Stock Report) (CGC Stock Report) has recently faced some trouble in the market.  This pot stock has dropped in share price by 51.7%. The company fired its CEO Bruce Linton who is also co-founder of the company. The quarterly results out in mid-August also reported a huge loss of $1.4 billion. Currently, with no CEO, the company stands at a net worth of $8.52 billion.

With the cash and cash equivalents dropping by $1.4 billion in one quarter. The company has leftover cash and cash equivalents of $3.14 billion, which is also draining rapidly thanks to its steady expenditures. Yet, out of the huge loss reported, $826 million came from the company’s mergers and acquisition activity. The company doesn’t look like t would bounce back anytime soon. Though some anaylst say CGC is still a pot stock to watch for the future.

[Read More] Bernie Sanders Continues to Stand Behind Legal Cannabis

Canopy Growth recently announced that they have received a license from Health Canada for its KeyLeaf Life Sciences (“KeyLeaf”) facility in Saskatoon, Saskatchewan. Including the Smiths Falls site and the recently licensed BC Tweed extraction site, Canopy Growth now operates three significant extraction assets to support the throughput required for large scale value-add product development.

 Cannabis Industry Updates

The cannabis industry has seen pot stocks reporting growth in its revenue while its profitability still remains negative. One such pot stock is Canopy Growth. While this marijuana stock had reported a negative EBITDA of $22.5 million last year, this year’s figure has gotten worse reaching $92 million. This can mostly be attributed to the declining prices which Canopy Growth is charging for its product. The price of recreational marijuana went down from last quarter’s $7.28 per gram to $6.35 per gram. This comes as quite a concern considering the increase in demand for recreational marijuana. Fortunately, the pricing for the company’s medical cannabis holds strong still.

Focusing on The Cannabis Industry

Moreover, even other products aren’t doing well in the market. Though CBD oil and products have higher profit margins, the company warned against the possible oversupply in the near future. Apart from blaming the inefficient Canadian retailers, it is possible that the previous projections surrounding the CBD products might have been too bullish making companies, just like Canopy, expand into the segment and thereby facing a possibly huge financial loss.

The recovery of the company would take quite some time – some few years at the very least. The management’s effective and efficient control over the firm along with the continuous growth of the cannabis market in the US and Canada would prove to be helpful for the company out of its current mess. It provides one with a buy-and-hold option requiring enough patience.

best pot stocks to buy

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