Short seller Andrew Left has his doubts about Canadian pot stocks, says he’s betting against Canopy
Citron Research’s Andrew left reiterated his bet against the Canadian cannabis industry Wendesday, telling CNBC that he’s short Canopy Growth and Cronos Group in addition to his already disclosed wager against Tilray .
Fielding a question from " Halftime Report " host Scott Wapner, Left said his doubts on the space aren’t confined to just one company.
"I’m also short Cronos, I’m short Canopy, I’m short Tilray. So I’m short a basket of the names," he said. "Once the U.S. licensed producers come on — the faster it becomes legal in the U.S., the quicker the Canada names go lower."
"They won’t get the exposure in the U.S., they’re not players internationally," Left added. "I don’t care how many press releases they put out, they’re not going to be shipping cannabis from Canada to Australia. Not happening."
Shares of the three Canada-based marijuana producers sank Wednesday between Left’s comments and Canopy Growth’s earnings results. Tilray shed 11 percent and Canopy fell 15 percent in the U.S., while Cronos dropped 5.4 percent in Toronto.
Left’s midday remarks came hours after Canopy Growth’s second-quarter revenues results missed even the most conservative Wall Street estimate.
The company’s total revenue of 23.3 million Canadian dollars fell well short of the average analyst expectation of CA$60 million despite growing 33 percent from the prior year’s second quarter. The results represent Canopy’s first sequential top-line decline.To be sure, only a few analysts cover Canopy, a fact that makes any consensus projection less precise."With business opportunities expanding globally, we continue to make […]
