The cannabis industry is experiencing a small rally which is good news for niche ancillary companies like America’s first CBD restaurant stock West Coast Ventures Corp. (OTC: WCVC)
Cannabis stocks have recently benefited from some positive news. After rather subdued quarterly figures at the beginning of the year, several important companies in the industry were able to surprise with strong results. Aphria kicked off the rally, followed a few days later by Aurora Cannabis, GW Pharma and Village Farms. And over the next few days, the next important quarterly figures are already on the horizon.
Tilray misses expectations
Tilray’s stock has dipped after disappointing second quarter figures. Analysts expected sales to rise to 41.1 million dollars and a net loss of around 25 cents per share. Instead, there was a loss of 32 cents per share. Despite this, there were some positives as the company beat revenue expectations at $45.9 million.
Tilray has had a busy year and the company acquired Manitoba Harvest, one of the largest producers of hemp food. Manitoba Harvest’s hemp products are sold in over 16,000 stores in the USA and Canada. Tilray hopes that this acquisition will make a quarterly contribution to sales of around 20 million dollars. In addition, it has created a good starting position for the US market so is likely to recover in time.
Canopy Growth to release figures
It will be very exciting again one day later. On August 14th the industry leader, Canopy Growth, will publish the figures for the past quarter (1st quarter of the business year 2019/20). Analysts expect the company to achieve a 17 percent increase in sales compared to the previous quarter. If Canopy Growth can surpass these expectations, the Canadian stock should also regain momentum. In the long term, the share remains one of the clear favorites for investors. Canopy Growth needs to break out above the short-term downward trend would be a first positive signal. The next important hurdle to overcome is the 200-day line.
West Coast Ventures Corp leads the way on CBD
While a minnow compared to Canopy Growth, WCVC represents an incredibly exciting stock. The company has married a quality fast-casual dining experience with CBD and it is beginning to produce results. WCVC’s Q1 results showed year on year revenue growth of 21.55% in what is traditionally a very slow quarter. It is expected that the company’s Q2 results will be even stronger as they can utilize outdoor patio space.
This growth has been driven by their flagship Illegal Burger restaurants. The IB CitiSet is on pace to exceed $700,000 in sales in its first full year of operations and The IB Writer Square, located in Downtown Denver, is also on pace to exceed $1 million in sales this year. In addition, the company has just opened an Illegal Pizza location which is expected to generate $750,000 in revenue this year.
The cannabis sector is experiencing a slight uptrend and if big and small players continue to perform we may see a full-blown bull market.