These Canadian LP's Are Looking Very Attractive On A Pullback

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Canadian cannabis stocks have been under pressure and investors are closely monitoring the recent pullback.

These stocks have been trading lower on lighter-than-normal volume and we are monitoring this trend as earnings season gets underway. When it comes to Canadian Licensed Producers (LPs), we expect to see these companies report strong earnings and are favorable on this trend.

Although earnings are expected to be strong, Canadian LPs have been trending lower and this is something to watch. Today, we have highlighted 3 Canadian LPs that investors should be monitoring closely.

Aphria Trades Lower After Reporting Earnings

Last week, leading Canadian LP Aphria (APH.TO) (APHQF) released third quarter financial results for the period that ended on February 28th and the shares have been trending lower following this release.

During the quarter, Aphria recorded $12.9 million in net income on $10.2 million in revenue. When compared to the same period last year, revenue and net income increased by more than 100%. The Canadian marijuana producer reported $8.5 million of gross profit (77.1% margin) and $2.9 million in adjusted EBITDA (10th consecutive quarter of positive adjusted EBITDA and a 238% increase from the prior year).

Aphria has been laser focused on increasing domestic production capacity and improving its international exposure. We are very favorable on these two business initiatives and continue to view Aphria as a long-term opportunity. During the last week, the shares have fallen more than 17% and momentum is trading near oversold levels.

We are monitoring the recent pullback and will keep an eye on how Aphria trades from here. Yesterday, the shares traded lower after announcing a significant development pertaining to its Broken Coast Cannabis subsidiary and investors should keep an eye on how Aphria continues to execute.

1 2 3
View single page >> |

Disclosure: This report was authored by and is property of Technical420. All information and data relied upon in drafting this report is publicly available. The author believes and considers its ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.