Aphria, Aurora Cannabis and OrganiGram among Canadian Cannabis Stocks To Ride Post COVID-19

Global equity markets have been experiencing volatility but Canadian cannabis stocks have comparatively in the safer side. The surge in demand for cannabis during the COVID-19 induced lockdowns boosted pot companies. Here are some big names poised to continue performing exceptionally.

Aphria expected to grow sales with licensing of more stores in Ontario

Aphria Inc. (NASDAQ:APHA) is one of the leading Canadian cannabis stocks currently and it is trading at a discount. With Ontario beginning to license more retail stores the company is expected to grow its sales significantly by maintaining its market share in Canada of 12.5%. Aphria will report results for the fiscal year that ended in May later this month and could double sales to CA$530 million with earnings breaking even.

Aurora Cannabis among Canadian cannabis stocks turning things around

Aurora Cannabis (NYSE:ACB) is also another Canadian cannabis stock that has not been doing well in the recent past but it seems it is turning things around. The company reported net sales of CA$75.5 million in its Q3 2020 which is a significant improvement from Q2.

Despite its struggles this past year and a weak balance sheet the stock’s transformation is on track and already it is hitting targets set in February. Aurora has moved to consolidate facilities as it seeks to transform SG&A costs. It targets SG&A of CA$42 million in the first quarter this reducing operational expenses by 50%.

OrganiGram cut its workforce amid COVID-19 pandemic

Another company that has been cutting its expenses as it charts the path to profitability is OrganiGram Holdings (NASDAQ:OGI). Early this month the company reported that it has slashed its workforce by 25% band that it expects its net revenue for Q3 to be down from Q2. Its Q2 results reported in April were uninspiring with YoY revenue dropping 14% to CA23.3 million. At the end of February, the company had CA41.1 million in cash which could be enough to enable it to weather the pandemic.

This article by Money News National is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Money News National has no position in the stocks mentioned. Thank you for reading.

__________________

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

LEAVE A REPLY

Please enter your comment!
Please enter your name here