AUS
NZ
UK
CA
USA
IND
_07_12_2023_11_05_52_936360.jpg)
Summary
- Stocks of Canopy Rivers Inc (TSX:RIV) shot up by nearly 15 per cent on Wednesday.
- The Canadian company published its latest financial results earlier in the day.
- Canopy Rivers is currently ranked high among the trending health care stocks on the TMX platform, posting a 10-day trading average volume of 1.04 million.
Stocks of Canopy Rivers Inc (TSX:RIV) shot up by nearly 15 per cent on Wednesday, February 10, after the Canadian company released its latest financials earlier in the day.
The stocks had initially reflected a decline as trading began on Wednesday morning (11AM EST). But the scrips eventually picked up pace during the span of the day and even recorded a new 52-week high of C$ 3.48.
Let’s take a closer look at Canopy Rivers’ latest financials.
Canopy Rivers Inc Q3 FY21 Financials
A venture capital firm focused in the cannabis sector, Canopy Rivers reported an operating income of about C$ 3 million for Q3 FY21, which was significantly lower from that of C$ 5 million in Q3 FY20. Its net operating loss for the latest quarter had expanded to C$ 9.56 million from C$ 2.04 million in the same period last year.
The company, however, posted a net income of C$ 1.4 million for the third fiscal quarter ending 31 December 2020, as compared to a net loss of C$ 2.6 million in Q3 FY20.
©Kalkine Group 2021
Canopy Rivers President and CEO Narbé Alexandrian pointed that the latest third quarter was highlighted by the “milestone transaction” with cannabis producer Canopy Growth (TSX:WEED). Canopy Growth had announced in December last year that it is selling off its stake in Canopy Rivers for a value of C$ 115 million in cash and 3.75 million shares in the pot company.
Mr Alexandrian also expressed confidence regarding the potential decriminalization of recreational cannabis in the US on a federal level, which will help the company trench into the American market “at an ideal point in time”.
Canopy Rivers Inc (TSX:RIV): Should You Buy or Hold This Stock?
Canopy Rivers is currently ranked high among the trending health care stocks on the TMX platform, posting a 10-day trading average volume of 1.04 million.
The stock has been climbing steadily over the past three months, reflecting a growth of over 284 per cent. In this year so far, Canopy Rivers shares have expanded by nearly 196 per cent.
The scrips have also grown by about 86 per cent in February to date and by over 166 per cent over the past year.
Canopy Rivers stocks’ 14 and 9-day relative strength index (RSI) is hovering in a steep overbought zone above 85, which suggests that a potential price consolidation can take place in next few trading sessions.
From the moving average standpoint, however, Canopy Rivers stock continues to trade in a steep bullish territory. Therefore, based on momentum indicator RSI, investors should take a watch stance on this stock in the near term.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
