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Knight Therapeutics Inc. (GUD)
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Aurora Cannabis Inc. (ACB)
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Global X Marijuana Life Sciences Index ETF (HMMJ)
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Cronos Group Inc. (CRON)
What do you think of Knight's results? In the cannabis space, would be a good idea to start a position in Aurora and Cronos Group. Both seem to have a decent PE (based on yahoo) or is still too early given US may not legalize it. Alternatively, do you think it is best to go with HMMJ but many companies in the ETF do not have profits so am wondering best way to enter the space.. much appreciated.
GUD reported EPS of $0.11 beating estimates of $0.017 and revenues of $94.07M beat estimates of $88.37M. Sales grew 31% year-over-year, mainly driven by the growth of its key promoted products and hyperinflation in Argentina. Its gross margins were down slightly in the recent quarter compared to the same period in the prior year. The net profits were mostly due to a net gain on the revaluation of financial assets measured at fair value, whereas its operating profits were slightly negative for the quarter. We like GUD's momentum and potential turnaround here, and while we would be comfortable with a starter position, we do not feel investors need to rush in to the name here.
The cannabis space has been tough, it is not overly profitable, it is a highly saturated space, and most names have declined over the years. HMMJ continues to make new lows, and while ACB and CRON haven't made new lows since early 2024, it is tough to call a bottom for sure. Overall, we are still not big fans of the sector, and we would prefer these names to begin making higher highs to indicate a turnaround in their trends before becoming interested.