Stock Alert: Canopy Growth Tumbles 18% On Earnings Miss, Uncertain Outlook

Shares of Canopy Growth Corp. (CGC, WEED.TO) are losing more than 18 percent or $3.94 in Friday’s morning trade at $17.78 after the Canadian cannabis company’s fourth-quarter results missed analysts’ estimates. The stock has traded in a range of $9.00 to $44.17 in the past 52 weeks.

Friday, Canopy Growth reported fourth-quarter net loss of C$1.30 billion or C$3.72 per share, wider than net loss of C$379.52 million or C$1.10 per share in the year-ago period, primarily driven by impairment and restructuring charges. However, net revenue for the quarter rose to C$107.91 million from C$94.05 million last year.

Analysts expected loss of C$0.40 per share on revenues of C$130 million. Analysts’ estimates typically exclude special items.

Canopy Growth also withdrew its previously communicated outlook for achieving positive adjusted EBITDA and net income in fiscal 2021, citing the COVID-19 related uncertainties.

Atlanta Man Charged For Cheating Employer By Faking Coronavirus Sick Note

An employee in Atlanta has been charged with fraud after falsely telling his Fortune 500 employer that he had tested positive for coronavirus, causing a loss of more than $100,000 to the company.

According to the charges, Santwon Antonio Davis submitted to his employer a fake medical excuse letter to prove he was infected with the deadly disease.

In concern for its employees and customers, the corporation closed its business and sanitized the workplace. All the employees were asked to go on quarantine, and the company was forced to pay them during the shutdown. The corporation incurred heavy loss while dealing with its employee’s misrepresentation, according to the charge sheet.

FBI arrested the 34 year old man from Morrow, and is investigating this case as part of Georgia’s COVID-19 Fraud Task Force.

Davis, who appeared before U.S. Magistrate Judge Justin S. Anand, admitted that he did not contract the virus.

“The defendant caused unnecessary economic loss to his employer and distress to his coworkers and their families,” said U.S. Attorney Byung J. “BJay” Pak.

Chris Hacker, Special Agent in Charge of FBI Atlanta, said the agency is receiving several complaints every day related to the COVID-19 pandemic.

The case was revealed by U.S. Attorney’s Office for the Northern District of Georgia Thursday.

It did not disclose the name of the defrauded company.

U.S. Pending Home Sales Plummet More Than Expected In April

Pending home sales in the U.S. plunged by more than expected in the month of April, the National Association of Realtors revealed in a report on Thursday.

NAR said its pending home sales index plummeted by 21.8 percent to 69.0 in April after tumbling by 20.8 percent to 88.2 in March. Economists had expected pending home sales to slump by 15.0 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

“With nearly all states under stay-at-home orders in April, it is no surprise to see the markedly reduced activity in signing contracts for home purchases,” said Lawrence Yun, NAR’s chief economist.

The steep drop in pending home sales in April reflected the biggest decline since NAR begin tracking such transactions in January 2001.

However, Yun expects April will be the lowest point for pending contracts and May, consequently, will be the lowest point for closed sales.

“While coronavirus mitigation efforts have disrupted contract signings, the real estate industry is ‘hot’ in affordable price points with the wide prevalence of bidding wars for the limited inventory,” Yun said.

He added, “In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”

U.S. Merchandise Trade Fell in April to Lowest Level in a Decade

U.S. merchandise trade in April slumped to the lowest level in a decade as the coronavirus pandemic curtailed demand and disrupted supply lines.

Goods exports plummeted 25.2% in April from the prior month, the biggest decline in records back to 1989, to $95.4 billion, according to Commerce Department data released Friday. Imports decreased 14.3%, also the largest yet, to $165 billion. Combined, the value of U.S. exports and imports dropped to $260.4 billion, the lowest since April 2010.

The goods-trade deficit widened to $69.7 billion from a revised $65 billion a month earlier. The median forecast in a Bloomberg survey of economists called for a $65 billion gap.

The advance indicators report also showed retail inventories declined 3.6% from March. Wholesale stockpiles rose 0.4%.

The data indicate the second quarter got off to a weaker start as companies and consumers largely remained on lockdown. Analysts use these numbers to adjust estimates for quarterly economic growth.

Trump Threatens To Shut Social Media Platforms Following Twitter Alerts

President Donald Trump threatened to close down social media platforms after Twitter alerted users to “fact-check” his tweets.

“There is NO WAY (ZERO!) that Mail-In Ballots will be anything less than substantially fraudulent,” Trump tweeted on Tuesday.

Disputing the accuracy of the tweet, Twitter put a “fact-check” warning label on it, and posted a link which read “Get the facts about mail-in ballots.”

Trump responded to it by accusing that Twitter is now interfering in the 2020 Presidential Election. “They are saying my statement on Mail-In Ballots, which will lead to massive corruption and fraud, is incorrect, based on fact-checking by Fake News CNN and the Amazon Washington Post,” he added.

Trump blasted Twitter by accusing it of “completely stifling free speech”. He said that as President, he will not allow it to happen.

“We can’t let large scale Mail-In Ballots take root in our Country. It would be a free for all on cheating, forgery and the theft of Ballots,” he said.

Republicans feel that social media platforms totally silence conservatives voices, according to him. “We will strongly regulate, or close them down, before we can ever allow this to happen”.

Trump accused the social media of unsuccessfully attempting to rig the 2016 Presidential Election.

“We can’t let a more sophisticated version of that happen again,” he added.