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Summary
- A Statistics Canada study has revealed that the country’s legal recreational pot market saw sales worth C$ 2.62 billion in the pandemic-ridden year of 2020.
- The surge came as a large mass of consumers switched from illicit to legal markets last year due to reduced prices, points a Brightfield Group report.
- As coronavirus cases are on the rise, pot companies are expected to see a spike in demand once again.
A Statistics Canada study has revealed that the country’s legal recreational pot market saw sales worth C$ 2.62 billion in the pandemic-ridden year of 2020, which was a 120 per cent year-over-year (YoY) climb. The surge came as a large mass of consumers switched from illicit to legal markets last year due to reduced prices, points a Brightfield Group report.
As coronavirus cases are on the rise, pot companies are expected to see a spike in demand once again. On that note, let’s delve into some Canadian pot stocks under one-dollar value, such as GTEC Holdings Ltd (TSXV:GTEC), Indiva Limited (TSXV:NDVA) and Supreme Cannabis Company Inc (TSXV:FIRE).
GTEC Holdings Ltd (TSXV:GTEC)
Current Price: C$ 0.76
Pot cultivator GTEC Holdings recently eliminated its debt after repaying a C$ 6 million loan. In March, the company entered the global cannabis market and signed an export agreement with Israel.
In the last six months, GTEC stock soared by about 744 per cent. Its year-to-date (YTD) growth stands at 624 per cent.
1-year chart of stock performance of GTEC Holdings (Source: EODHD/Others/Thomson Reuters)
GTEX Holdings posted a 267 per cent YoY increase in its gross revenue of C$ 8.8 million in the fiscal year ending November 30, 2020. Its production for the same period was up by 269 per cent YoY to 2,685 kilograms.
GTEX also recorded a net income of C$ 282,000 in fiscal 2020 against a net loss of C$ 8.3 million in fiscal 2019.
Indiva Limited (TSXV:NDVA)
Current Price: C$ 0.47
Cannabis company Indiva Limited (TSXV:NDVA) announced in February that it has increased its market share in Canada's three largest markets -Alberta, British Columbia and Ontario.
In Alberta, Indiva’s market share climbed to 49 per cent, while in Ontario and British Columbia, it increased to 45 per cent and 47 per cent, respectively.
1-year chart of stock performance of Indiva (Source: EODHD/Others/Thomson Reuters)
Indiva stock’s one-year growth stands at 65 per cent, while its YTD growth is nearly 71 per cent.
In Q3 2020, the company’s gross revenue increased to C$ 3,422,198, up against C$ 211,386 in Q3 2019.
Supreme Cannabis Company Inc (TSXV:FIRE)
Current Price: C$ 0.37
The medicinal and recreational cannabis producer was recently acquired by Canopy Growth. Supreme Cannabis Company Inc has a market cap of C$ 282.2 million and its price-to-book (P/B) ratio is 1.48, as per TMX website.
Supreme stock grew by 164 per cent in the last six months. It swelled by about 139 per cent this year.
1-year chart of stock performance of Supreme Cannabis (Source: EODHD/Others/Thomson Reuters)
In second-quarter fiscal 2021 results (ended December 31, 2020), the company increased its net revenue to C$ 18.3 million from that of C$ 9.1 million in Q2 FY20. Supreme Cannabis also reduced its net loss to C$ 7.9 million in Q2 FY21.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
