Since the new rollout began and the hype of full marijuana legalization has gradually slowed down, it seems as if legal marijuana sales in the country haven’t had the effect on stock prices that investors are hoping for, and confusion still somewhat abounds in the space.
Canada’s two largest marijuana-centric companies, CannTrust Holdings (OTCMKTS:TRST) and Aurora Cannabis (OTCMKTS:ACB) have both tumbled down at 37 and 44 percent, respectively, and now, careful shoppers are wondering where to get a much better deal.
Despite this, some are still hoping that both companies can recover, and are putting their investments in one or the other.
CannTrust Holdings
Of course, even with its stock prices tumbling down lately, the company is still doing well for itself. In fact, the company reported earlier last week that its shares are up 20 percent again after it sold as much recreational marijuana in this year’s third quarter as Aurora Cannabis. Per the company itself, the Ontario-based pot producer showed sales of CA$500,000 in recreational marijuana, putting the company alongside other notable marijuana-centric companies such as Canopy Growth.
During a conference call, CannTrust CEO Peter Aceto said, “The first month was very exciting, and we were very pleased with demand and what we experienced with brands and products.”
The company’s valuation also neared CA$1 billion as its stocks went higher, a remarkable feat for a company that only started trading on the Toronto Stock Exchange since March of this year. At present, the company currently holds an $885 million market cap, and aims to provide nine provinces in Canada with a large supply of recreational cannabis to be consumed.
Aurora Cannabis
On the other side of the fence is Aurora Cannabis, one of the largest Canadian cannabis companies in the country. Recently uplisting to a U.S. exchange, the company has definitely upped its game. In fact, thanks to a recent $290 million purchase of ICC Labs, the company can start producing an annual amount of 700,000 kilograms of cannabis.
This purchase also makes Canada a leading seller in Latin America, which will only spread to three continents when the company’s 1 million-square-foot facility in Denmark opens next year.
The company also placed a strategic investment a couple of months later in Choom, a lifestyle marijuana company based in the same country. Investing $7 million in the company, Aurora is to use Choom as one of its newest distribution channels.
Furthermore, the company also managed to generate a 260 percent year-to-year revenue growth during this year’s first quarter, with Aurora being able to record $104 million net income, thanks in part to some lucky investments.
The better choice
At the moment, CannTrust does not have any pending debts, while Aurora has 35 percent more registered patients than the former. Both definitely had a whirlwind of the year, although the last month of 2018 may still hold some surprises for both companies. Nevertheless, both stocks come with risk now more than ever, and it’s vital to first observe before spending any of your money.