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Globe says Canopy, rivals not living up to expectations

2022-06-02 07:58 ET - In the News

See In the News (C-WEED) Canopy Growth Corp

The Globe and Mail reports in its Thursday, June 2, edition that marijuana sector is saddled with an unfortunate problem: Sales are not living up to expectations. The Globe's David Berman writes that regardless of which pot stock you look at, prices are down a lot. Canopy Growth, once embraced as a leading marijuana producer, is down 91 per cent over the past three years. Tilray, which surged to $300 (U.S.) a share in 2018, is now trading below $4.50 (U.S.). If diversification across the sector looked like a safer approach, the Horizons Marijuana Life Sciences ETF, an exchange traded fund that tracks 40 stocks, is down 35 per cent this year alone and carving out new lows. Trading volume has also declined, suggesting that there is less appeal to retail investors hoping to score big gains from the market for legal marijuana. The number of Canopy shares trading hands most days this year is about a quarter of what it was during the stock's more popular -- and financially rewarding -- days in 2018. Canopy's quarterly financial results last week merely underscored the negative outlook, and offered a compelling reason to avoid the company's peers as well: Sales in this era of legalized marijuana are struggling.

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