Cannabis CBD Marijuana
Click right here for The Motley Idiot’s resources on Coronavirus and the market.
Canopy Growth (NYSE:CGC) equipped Tuesday that it could maybe perchance perchance perchance be closing its corporate-owned shops in Canada till additional witness as a results of the COVID-19 pandemic. The corporate’s 23 Tweed and Tokyo Smoke places all the way in which by way of Newfoundland, Saskatchewan, and Manitoba will shut down as of the conclude of trade on Tuesday.
“Given the novel peril, it is in the correct hobby of our groups and our communities to shut these busy hubs till we’re assured we can operate our shops in the correct hobby of public health,” acknowledged CEO David Klein in a observation. No timetable used to be equipped as to when the shops can also simply reopen.
The news comes as worldwide locations all the way in which by way of the world are cracking down on mammoth public gatherings as a results of the coronavirus. Canada has extra than 400 identified cases of COVID-19 so far.
Image offer: Getty Pictures.
The spread of the coronavirus, and its extreme and forecast impacts on the economic system, hold sent the inventory market right into a tailspin — the S&P 500 index is now down extra than 25% from the assign it started the one year. The Horizons Marijuana Lifestyles Sciences (OTC: HMLSF) is down extra than 44% in 2020, whereas Canopy Growth has misplaced extra than half of of its model. And that wasn’t the starting up assign of the titillating decline for the pot producer. A one year ago, it traded at extra than $40 per fragment; this present day it be barely above $10.
But the corporate is coming off an improved quarter in which its sales hold been up 49% one year over one year. Unfortunately, profitability stays out of reach for the pot inventory, as it be posted losses in four straight quarters.
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.