Battered cannabis investors still seek bottom after Canopy plunges
Canopy Growth plunges to record low after revenue drops most since cannabis legalization
Friday, November 15, 2019
Canopy Growth Corp. led another mass selloff in the Canadian cannabis space after an earnings miss had investors once again looking for a bottom in the battered sector. Both retail and institutional investors have called the bottom on the cannabis industry multiple times through an eight-month-long bear market that has seen the North American Marijuana Index shed almost 60 per cent of its value. Finding a bottom in cannabis stocks has proven to be challenging, given the constant cycle of bad news, including a lack of profitability, significant writedowns and dwindling cash reserves and withdrawn guidance. (See also: Sliding pot prices are leaving cannabis producers vulnerable to writedowns | Canopy Growth, Aurora post steep losses, revenue declines as legal cannabis sector falters)
