Alcanna Inc. updated MArch 28, 2021

Our report on Alcanna Inc. is updated and rated (lower) Sell at $7.83. It’s Q4 profits were somewhat disappointing. It could be held as a speculative especially for exposure to Cannabis retail. It’s up 89% since it was added to our list in September at $4.14. I’m inclined to take the profit and sell at this point. It should however report a strong Q1 in terms of profit. And the company indicated that same-store-sales will be similar to the 7.6% of Q4. But after that it faces “tough comparables” as Alberta restaurants and bars reopen. The potential of its Cannabis stores remains to be seen.

I’m also holding its 4.7% convertible debenture which is scheduled to mature next January 31. It’s trading right around par value. Those seem reasonably safe. In fact Alcanna may have enough cash on hand to redeem these at par at any time before next January. 

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