What's happening here. What's happening here, and in the weed sector altogether, is that the speculative mania phase has come to an end.
The market has passed the point of running up weed stocks on their intentions of building out massive capacity and wants to see the rubber hit the road.
That means these companies need to start posting revenue, and/or profits. Canopy is the LEAD DOG in the space, nothing turns around until they do. They will be the first, and they will lead the sector.
I believe the upcoming Q4 resutls will beat the street expectations of $16.92M top line, and -$0.05 EPS.
RIght now the stock is oversold, paper is just being thrown away here into the bidless days of Summer. Speculative stocks always get dumped during BBQ season.
Where's the bottom? I can't answer that, the market will remain irrational longer than I can remain solvent.
But I am a buyer here, with about a 20% postiion of what I want and will contnue buying in a pyramid,with larger blocks if it travels lower.
Revenues (and eventually, profits) are rising here as the stock price is decreasing.
At some point, revenues will support the stock price and things will reverse.
Are we there now? We will find out in 3 weeks. If not, growth will take us there sooner or later.
One day this will be a $20 stock, that I haven no doubt. Does it see $6 or even a $5 print before then? Perhaps a panic capitulation thrust downwards?
Who knows - but I feel we are close to the end of this pullback.
GLTA.