Shares of Canopy Growth Corp. (TSX:WEED) were down 3.19% at the bottom of the noon hour on November 14th. The company released its fiscal 2018 second-quarter results on the same day.
Second-quarter revenue jumped 107% to $17.6 million and revenue more than doubled for the first six months of the 2018 fiscal period. The company still reported a net loss of $1.6 million or $0.01 per share compared to net earnings of $5.4 million or $0.05 per share in the previous year. Canopy Growth reported $108.2 million in cash and cash equivalents at the end of the quarter, this before a cash infusion of $245 million is set to arrive from Constellation Brands, Inc.
Canopy Growth stock has climbed 116% in 2017 and 76% year over year. Cannabis stocks have surged across the board due to a rise in investor sentiment in anticipation of July 2018 recreational legalization. Canopy Growth boasts the largest market cap of any cannabis producer on the Canadian market.
It also avoided turbulence after the announcement that TMX Group Limited would undergo a review of cannabis stock listed on the TSX that had stakes in the United States. Companies found to be in violation of U.S. federal law, which prohibits cannabis use, could be threatened with delisting if said companies do not divest of U.S. interests.
Fortunately, Canopy Growth has made forays into Europe but has not yet looked south of the border. Canopy Growth remains an extremely attractive option in anticipation of legalization in 2018.
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