Only a few months ago we saw CGC finally gain some upside traction as the market embraced its full-year results which revealed revenue lifting 30% and EBITDA up 10%. However, a few weeks on and the downtrend looks to have resumed with the stock the weakest on the mainboard yesterday, remember CGC was an $8 stock less than 4-years ago. It’s easy to say that people have to eat but growers need to deliver fruit & veg in a profitable fashion, it can be a far tougher game than being a simple supermarket. The $1.4bn company feels on the cheap side as it approached $3 but we believe it demands a risk premium before MM gets excited, another 10% and we would again be running the numbers.
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Thursday 28th March – ASX200 +80pts, All Time High, Retail Sales
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Performance for February & 4 stocks we like here and now
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Thursday 28th March – DOW up +477pts, SPI up +60pts
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MM is neutral CGC
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