Canadian cannabis company Canopy Growth (CGC 0.07%) saw its shares rise 22.4% so far this week, according to data from S&P Global Intelligence. The stock is still down more than 56% this year. Its 52-week low is $2.13 and its 52-week high is $18.
Canopy's shares got a ride when Tilray, another cannabis company, said it had received approval to sell its medical marijuana in Poland. While the news only applies to Tilray, positive news for one Canadian marijuana company often affects the shares of others, as Tilray, Aurora Cannabis, and Canopy all saw big gains on Wednesday.
Some of the bounce was short-lived as investors are still wary after Canopy reported its fiscal first-quarter of 2023 on Aug. 5. In the report, net revenue was down 19% year over year, and the company reported its worst quarter in net income ever with a loss of $2.1 million Canadian dollars ($1.6 million), citing goodwill impairments of CA $1.7 million for the decline.
It's been a tough year for marijuana stocks, as even the companies that aren't losing money have seen their share prices fall. The AdvisorShares Pure Cannabis ETF is down more than 56% this year, and the ETFMG Alternative Harvest ETF has dropped more than 43% this year.
There are some positive signs for Canopy. It trimmed its debt by $263 million last month, and its shares are trading for only 1.4 times book value, so they aren't as overpriced as they were at one time.
But until Canopy begins turning a profit -- or at least appears to be headed in that direction -- it's hard to see investors taking a gamble on the stock. The company has also been quick to sell additional shares when the stock has risen, so that dilution has turned investors off.