Average trading multiples for U.S.-focused operators were up slightly versus last week, while the average stock price remained flattish. Canada-focused operators still trade at a premium on sales compared to U.S. operators.
Cannabis stocks have been crushed with the market correction, but the long-term investment case is intact. Investor Intelligence equity research analysts Craig Benhke and Mike Regan provide a framework on how to invest now for the long term,
Average trading multiples for U.S.-focused operators were roughly flat versus last week because of a decline in estimates. Canada-focused operators still trade at a premium on sales compared to U.S. operators.
Consumers in Florida engaged in some pantry stocking of cannabis products a couple of weeks ago, but after last week’s expected decrease in total milligrams sold, demand and market shares held relatively stable this week.
It was a week of reckoning for many in the cannabis industry as the coronavirus outbreak has become the straw that broke the cash-challenged camel’s back – or the material adverse change companies are using to change plans made in different times.