Article by BNN Bloomberg
Pot stocks among biggest market losers in second quarter
Cannabis investors must have a pretty strong stomach after what the sector went through in the past quarter. Canadian pot stocks were among the biggest laggards in the second quarter of 2019 for a myriad of reasons, ranging from softer-than-expected sales to supply chain issues that continue to punish the sector. The biggest decliner was CannTrust Holdings, but it was also a rough quarter for Aphria, Hexo Corp, Aurora Cannabis, Cronos Group and Canopy Growth. Even U.S. cannabis companies weren’t immune to bearishness in the second quarter with Curaleaf, Harvest Health and Recreation, and Acreage Holdings all trading in the red over the past three months.
Constellation Brands ‘not pleased’ with Canopy Growth’s recent financial results
U.S. beverage company Constellation Brands, which also has a minority stake in Canopy Growth, is writing down the fair value of its Canadian cannabis investment by a sizeable amount after it reported its fiscal first quarter results on Friday. Constellation reported a US$828 million decrease in the fair value of its 45-per-cent stake in Canopy Growth investment, for which it spent $5 billion last August. Constellation’s CEO Bill Newlands said he remains “happy” with its investment in Canopy and the long-term prospects of the business, but the company was “not pleased” with its recent financial results. Still, Newlands will continue to support Canopy long-term in its strategy to win markets and achieve profitability.
Legal pot here to stay in Canada: Conservative’s Andrew Scheer
Legalized cannabis in Canada is here to stay, even if the Conservative Party is victorious in the country’s federal elections this October. Andrew Scheer told CTV’s Power Play that a Conservative government would not only keep cannabis legal but would also stay the course with its support of pardons for Canadians convicted of pot possession. “We will maintain…the fact that cannabis is legal, we are not going to change that and we do support the idea of people having those records pardoned,” Scheer said. Scheer’s comments clarify remarks he made back in October where he did not provide a firm answer on whether a Conservative government would re-criminalize cannabis.