Cannabis company Canopy Growth announced that it would buy Supreme Cannabis for C$435 million (US$346 million) in a stock-and-cash deal.
Under the terms of the deal, Canopy Growth will pay 0.01165872 share and C$0.0001 cash for each share of Supreme. The deal is expected to close in June, conditional upon regulatory and court approvals, and a vote of Supreme Cannabis shareholders.
Earlier this month, Canopy completed the acquisition of AV Cannabis.
CGC saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 26, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 09, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on CGC as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CGC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CGC entered a downward trend on May 26, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where CGC advanced for three days, in of 210 cases, the price rose further within the following month. The odds of a continued upward trend are .
CGC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CGC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.415) is normal, around the industry mean (42.146). P/E Ratio (0.000) is within average values for comparable stocks, (53.405). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.704). CGC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.026). P/S Ratio (1.129) is also within normal values, averaging (54.597).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CGC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a producer of medical marijuana
A.I.dvisor indicates that over the last year, CGC has been closely correlated with TLRY. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if CGC jumps, then TLRY could also see price increases.
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