Reports show that the shortest month of the year promises to have a lot packed for the cannabis investors. Many quarterly updates are coming up with several other vital developments lined up. Since the month is a leap year, February has an extra day for the investors.
The top stocks that investors should look out for this February include Canopy Growth (NYSE: CGC), Aurora Cannabis (NYSE: ACB), and Charlotte’s Web Holdings (OTC: CWBHF).
The company is yet to announce when exactly its fiscal 2020 Q2 results will be released. However, since the Canadian cannabis producer released the Q1 results on Nov. 14, it is expected that its next quarterly updates will come in mid-February.
Several reasons point to another dismal performance for Aurora Cannabis. In its Q2 conference call, Cam Battley, now-departed Chief Corporate Officer, could not say whether the company expected revenue growth in the second quarter.
However, Glen Ibbott, the CFO, said that capital expenditures would replicate those of Q1 although the company is suspending construction at its Aurora Sun and Aurora Nordic 2 facilities.
A significant area that is expected to look worse for Aurora is its international sales sector. Germany put Aurora’s medical cannabis license on hold in December 2019. The license was suspended since Aurora did not have an essential permit to distribute irradiated medical cannabis products. The license was reinstated earlier this month, but the company had already lost two months of sales in Germany.
Analysts think that the company will replace CEO Terry Booth and then look into getting a significant consumer packaged goods partner. All these efforts can be fruitful with the help of billionaire investor Nelson Peltz and investors will be keen to see any signs that either of these developments is possible.
The company already named a new CEO in December 2019. After serving for several years as the CFO for the company’s biggest shareholder, Constellation Brands, David Klein was entrusted with the growth of Canopy into the future as its chief executive. He has also served as a member of the company’s board of directors.
Canopy Growth has also not said when it will release its next quarterly reports, but it may also do that in mid-February. This being the first quarterly conference call for Klein as Canopy’s CEO, it will be essential to hear what he has to say about the direction the company aims to take in the future.
Canopy Growth has been spending a lot of money for long, and investors hope that the new CEO has a plan to enable the company to achieve profitability. Klein’s appointment boosted optimism that the company would gradually become more fiscally disciplined going into the future.
Investors also hope that the company will announce when it plans to launch its cannabis-infused beverages. Canopy said that it wanted to introduce new beverage products last month. Still, it later announced that the launches were being delayed since more work was necessary to complete the scaling-up process to attain commercial production levels.
Charlotte’s Web Holdings
This company could also announce its results for Q4 2019 later this month, but it has not specified the date for that. Those results could be good due to various factors. First, Charlotte’s Web mostly experiences its best sales in the last quarter of the year. The reason behind this is that Q4 seems to have higher direct-to-consumer sales of the company’s CBD products.
Also, the biggest number of retail locations in the company’s history carried its products in the fourth quarter. At the end of Q3, over 9,000 stores stocked Charlotte’s Web CBD products, increasing from 3,680 at the end of 2018.
However, it is possible that Charlotte’s Web’s Q4 update could wait until March like it was the case last year. Even if that delay arises, there is still a major important development to watch with the company.
A variety of legislations have been introduced in the U.S. House of Representatives. One such legislation aims to make CBD foods and dietary supplements fully legalized in the United States. Hence, it will get rid of the need to wait a long time for the FDA to take action. Any positive progress on this bill would be great news for Charlotte’s Web