Earlier this week, Supreme Cannabis provided guidance for the upcoming fourth quarter as well as fiscal 2020. The company expects to report 19 million Canadian dollars in revenue for the fourth quarter. Notably, the company also guided that it expects to report a positive adjusted EBITDA figure.
For fiscal 2020, the company expects to report about 150 million–180 million Canadian dollars in revenue. The company also expects to report positive EBITDA for 2020 as well.
The expectations of positive EBITDA could have driven Supreme Cannabis’s increase. Since the company reported its guidance on August 13, it has gained about 20%. Today alone, the stock was up nearly 10.2%.
Aurora also rises
Following the trend for the day, Aurora Cannabis (ACB) was also in positive territory as the general market sentiment for the sector was positive. Aurora Cannabis released its guidance on August 6. In that guidance, the company reiterated its previous guidance of revenue of 100 million–107 million Canadian dollars for the fourth quarter.
Aurora Cannabis also stated that it’s moving toward reporting positive EBITDA. While Aurora Cannabis popped on the guidance released on August 6, its stock dropped in the following days. The fear of recession gripped the overall market, leading to selling pressure. ACB also faced selling pressure after it announced an upsizing of its credit facility.
Canopy Growth also moved higher among cannabis stocks
Canopy Growth (WEED)(CGC) was trading higher today by 4%. The stock saw a significant drop of 14% after it released its earnings on August 14. While the company’s top line failed to meet expectations, it reported negative EBITDA of 92 million Canadian dollars.
However, despite the decline in the company’s shares, Bruce Linton, Canopy Growth’s former CEO, was purchasing more of the company’s shares. He believed that the company has a lot of potential, and this dip made the stock more attractive. Confidence in Canopy Growth stock increases when someone like Linton, who is familiar with the company’s internal operations, picks up more of the stock.