Canopy Growth Corp (Weed) reported on Wednesday 14 November for the second quarter a profit that is lower than expected and a turnover that is below the forecast. The stock is moving in all directions and has an erratic course. One of the apparent reasons for this erratic price trend would be the shortage of marijuana.
Canada legalized the cultivation, sale and recreational use of cannabis in October. From one day to the next, a market rose from 5 to 7 billion a year. However, producers cannot meet the enormous demand that has arisen. Since then, the marijuana shares are in decline. Producers see their sales increase, but they also have to invest a huge amount to expand their capacity. The big question is: will the shares fall further in the coming period?
Canopy Growth reports earnings per share of C $ 0,89 with a turnover of C $ 23,33M. Analysts consulted by Investing.com expected earnings per share of C $ 0,11 with sales of C $ 61,44M.
The results can be compared with those of the same period a year ago: the profit at that time was C $ -0,06 and the turnover was C $ 33,44M. In the past quarter, the company reported earnings per share of C $ 0,40 and sales of C $ 25,9M.
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