Alcanna (TSX:CLIQ) is an Edmonton-based retailer of adult beverages. It recently leaped into the legal cannabis retail sector. Shares of Alcanna fell 1.49% on March 20. The stock has increased 25.6% in 2019 so far.
Alcanna has benefited from a broad rally in the cannabis sector, but its stock is still trading at the lower end of its 52-week range. The company released its fourth-quarter and full-year results for 2018 on March 14.
Liquor sales climbed to $182 million compared to $170 million in the prior year. Alcanna reported same-store sales growth of 7.4% in Canada and 6% in the United States. This was the best quarter of same-store sales growth in six years. Alcanna hit on some key targets in 2018 and launched its Nova Cannabis brand in conjunction with the legalization of recreational cannabis on October 17, 2018.
Cannabis sales hit $7.9 million in the fourth quarter of fiscal 2019. This was the first quarter that Alcanna reported sales in this fledgling sector. Total sales in all products rose to $658 million for the full-year compared to $637 million in 2017. Alcanna will get to report a full-year of sales with the boon from this new sector in fiscal 2019.
Alcanna stock currently boasts an RSI of 56 as of close on March 20. This puts it in neutral territory in late March. The cannabis sector has enjoyed a big rally to kick off 2019, and investors should be cautious right now.
