Financial results for the third quarter of 2018 in Canada\u2019s cannabis market are in and some of the country\u2019s biggest industry players missed the mark on summer expectations.<\/p>\n
At the top of the list are Canopy Growth, Aurora Cannabis, and Tilray. In what may seem like a wacky statistic, Aurora\u2019s stock dipped 15 percent to $6.15 despite the fact its sales were up 333 percent from a year ago as\u00a0Barron\u2019s noted<\/a>. Canopy and Tilray both saw their stocks dip 10 percent on the day.<\/p>\n Part of the reasons behind those numbers is buyouts and scaling up. All three of these companies are spending big money to get their hands on the biggest chunk of the pie possible. Aurora said it hopes to be up to producing 1.2 million pounds of cannabis a year by 2020 on a call with investors this week.<\/p>\n Canopy CEO Bruce Linton\u00a0appeared on CNBC<\/a>\u00a0this week where he was asked to explain the revenue decline through the quarter ending in September.<\/p>\n \u201cCanada ended prohibition on October 17th, and a lot of our patients wondered what was going to go on and if they would go to a store and buy recreationally. But also there was a little slow down on Germany<\/a>, it was more about a process of getting approvals,\u201d Linton told CNBC, he himself sold the first legal purchase in the country braving hurricane force winds to make it happen.<\/p>\n Linton took the blame for the stock dip as analysts work to build a model to say how much companies will actually sell now with prohibition over. And the actual start of that post-prohibition dataset won\u2019t likely get to the rest of us until March next year.<\/p>\n CNBC asked how things are going in the current quarter and if they were seeing more buying.<\/p>\n \u201cPeople seem to like cannabis,\u201d Linton said. \u201cAnd when it\u2019s sanctioned by the government and federally legal we are shipping a lot of cannabis. What we\u2019re having to do is not just ship dry bud, but people, we\u2019re actually trying to move them to the Canadian version of the gummy bear, which is a gelcap.\u201d<\/p>\n Next Linton was hit with Canopy\u2019s 54 percent out of stock rate and asked what was being done to scale up.<\/p>\n \u201cWe shipped product and it got bought. As the reason it got bought\u2026 they were lined up around the block and the lineup kept going. So what we\u2019ve been doing is we just keep filling more and more orders,\u201d he said.<\/p>\n Linton noted of all the product in stock in Canada, about 30 percent of it was Canopy. He wants to see that number go up. Linton said he is looking at everything in six-month sprints. The current spring is filling the market. The first half of 2019 will be developing a wide range of products, \u201cwho knows that an edible will be,\u201d he said.<\/p>\n \u201cAnd then the final six-month sprint is going to be who has the best branded most desired products and owns the market,\u201d he said.<\/p>\n Linton said the world is changing. He pointed to Malaysia\u2019s recent move to get the ball rolling on medical cannabis.<\/p>\n \u201cI fell off my chair,\u201d he said of the changes in Malaysia. \u201cBecause that means every corner of the world is changing and if we do it right in Canada we can fill it in.\u201d<\/p>\n Next Linton got hit with a question on how much more expensive Canopy products were by the gram and if it could hold up. He said it was a function of form factor. He compared it to selling raw sugar cane compared to people who put in finished goods that get sold for a premium.<\/p>\n South of the border, longtime industry expert Kris Krane of\u00a04Front Advisors<\/a>\u00a0has been keeping an eye on Canada for a while. He gave Cannabis Now his take on the dip that came on news of the earning reports.<\/p>\n \u201cI think a course correction was somewhat inevitable,\u201d Krane told Cannabis Now. \u201cThe valuations never made a lot of sense compared to the earnings, the actual performance. It\u2019s all based on hype and speculation\u00a0 and eventually, these things need to be measured more by actual execution and performance.\u201d<\/p>\n Krane isn\u2019t sure if the dip is even cannabis specific also. The problems corporate cannabis are facing could be attached to general market decline.<\/p>\n We asked Krane what he thought the rebound would look like in a few months when the first hard numbers from legalizations impact on the marketplace come in.<\/p>\n \u201cI don\u2019t know because legalization was already factored into the price [the companies were being valued at],\u201d he said. \u201cI wouldn\u2019t expect to see a massive jump because that\u2019s the reason the prices were so high, to begin with. They\u2019re already accounting for legalization. It\u2019s already baked in.\u201d<\/p>\n Krane expects somewhat of a rebound but doesn\u2019t know if we\u2019ll see a massive jump.<\/p>\n Krane closed by giving his take on whether there was another industry right now where a company like Aurora can report a 333 percent sales to jump from its year-ago quarter and still slip more than 15 percent?<\/p>\n \u201cNo, of course not, it\u2019s like the early internet.\u201d he said. \u201cPublic markets are basing this whatever they want to base it on, not actual metrics. That\u2019s going to lead to a lot of volatility. I don\u2019t think there is anything out there right now that\u2019s even remotely comparable.\u201d<\/p>\n TELL US,<\/b>\u00a0do you have any cannabis stocks?<\/p>\n The post Canada Pot Stocks Dipped After Last Quarter Before Legal Sales<\/a> appeared first on Cannabis Now<\/a>.<\/p>\n
Financial results for the third quarter of 2018 in Canada\u2019s cannabis market are in and some of the country\u2019s biggest industry players missed the mark on summer expectations. At the top of the list are Canopy Growth, Aurora Cannabis, and Tilray. In what may seem like a wacky statistic, Aurora\u2019sContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4764,630,34,50,1228,461,170,687,415,1088],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/30667"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=30667"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/30667\/revisions"}],"predecessor-version":[{"id":30668,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/30667\/revisions\/30668"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=30667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=30667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=30667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nRead More: Canada Pot Stocks Dipped After Last Quarter Before Legal Sales<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"