Available Cannabis Stock to Buy Once Coronavirus Fear fades
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2nd November 2020

Available Cannabis Stock to Buy Once Coronavirus Fear fades

Clara Gibson
The weed stock is currently under low turn out but the fundamentals supporting the industry are continuing to improve. In Canada, the demand trends were set to improve as new products, and retail store openings were launched. The supply trends were also set to improve as the production expansion was reduced by companies. It was stipulated that the earning would be higher in 2020 as the 2019 sales were consequently positioned higher.

Since the coronavirus pandemic hit the world, the global economy has been in a halt as stocks have fallen off the cliff everywhere. This is because marijuana stocks are heavily indebted and richly valued. Fortunately, when consumers, government, public and private institutions take the necessary steps and social distancing. The COVID-19 pandemic may end up before June and the marijuana stock will be at a top-notch again. Revenue trends will highly improve in all stores when opened with new products.

Aurora Cannabis- It is the most

The margin trends will improve greatly with reduced production cost and cost-cutting measures. This margin expansion will be narrowing losses and at times bring bigger profits in the industry. All these will pave way for other bigger gains in the other half of the year once COVID-19 saga clears up. This article explains the best marijuana stocks to consider buying for the potential 2020 second-half.

Aurora Cannabis- It is the most important player within the Canadian market coming with huge volumes, excessive production capability and convenient phrases of sales. Many traders have expressed worries within the hashish zone company's liquidity and stability sheet. Currently, Aurora is going through the worst stability sheet in the cannabis industry, but it is set to enhance with time. These worries are to undertake at a steady slope amid the coronavirus outbreak.

Cronos- It is the best marijuana

The company's management is trying hard to fix these problems with certain changes like reduced production capacity, tons of layoffs and restructuring of the balance sheet. These changes are great news as it will lead to lower capital and operating expenses. The great problem with this industry is the COVID-19 whereas, the company has no resources available to withstand the demand market. Though, the company is at a big risk since it has paid $220 million in cash at the market offering program to increase its stock.

Cronos- It is the best marijuana stock to buy after the second-half rebound with its thesis set down to two things. First, the company has a balance sheet of $1.4 billion in cash and investments giving them the needed resources to withstand the demand impact. Hence, the company's insolvency is not will not be at risk any time soon. Secondly, the company has other huge resources giving them ample power to invest in growth opportunities once the virus fades away. This power will enable the company to focus on enlarging the Canadian cannabis demand in the second half of 2020.

Available Cannabis Stock to Buy Once Coronavirus Fear fades

Canopy Growth- It is the biggest and most important company in the marijuana industry, looking on ways to ripe in the second-half rebound for three main reasons. First, the company has enough cash to withstand the demand impact of the virus. Its balance sheet of $1.6 billion in cash and investments is able to absorb the demand impact. Secondly, the company has already reported numbers implying that it has a lot of energies to fight this crisis. It was able to reverse It's declining volumes, narrow the adjusted losses, and gross margin expansion.

Third, once the virus pandemic fades, the company will open more retail stores to meet the demand of the aggressive market. In Canada, the constant cannabis supply is expected to reduce due to the cut production cost and the sudden surge in buying weed. The company will for sure report strong numbers in the second half of 2020. These numbers have the potential of covering up the canopy growth stock price.

Aphria- Since the beginning of this year, the company's share of cannabis production has struggled greatly to meet the available market. The revenue earned missed some estimates as well as profits, and the management did cut the full-year guide. In early 2020, the revenue and volume growth had accelerated, profits rose steady and gross margins moved much higher. Once the virus pandemic is over, the company is set to get back on track with revenue accelerating and adjusted profits moving higher.

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