Aleafia Stock May Be Trading in the Red but Q2 Report is Still Impressive

Aleafia stock

Stock markets are a tricky place. Even when companies announce partnerships or better-than-expected financial reports, stocks can still trade in the red. Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) is experiencing the latter, after having released a positive quarterly report on Wednesday, only for Aleafia stock to trade down nearly 3% Thursday.

Here’s what we know.

Aleafia Stock and the Company’s Q2 Report

Toronto-based Aleafia Health published its Q2 financial report yesterday, August 14, highlighting a significant revenue increase as well as cost reductions and a growing base of cannabis patients. Management was so thrilled by the company’s second-quarter results that CEO Geoffrey Benic said: “the best is yet to come.”

With a revenue increase of 159% over the previous quarter—revenue came in at $4.0 million—it seems Benic’s comments may be justified. Not only that, but Aleafia Health saw a strengthened balance sheet, a 41% decrease in total expenses, and—wait for it—reduced capital risk.

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But even with the positive results, Aleafia Health realizes that it has a lot of room to grow and improve. And really, that’s what you want from a company. One good result doesn’t mean it should stop trying.

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“And despite these substantial improvements, there remains a tremendous amount of room to grow. Leveraging our global distribution platform, brands and data-driven production expertise requires a significant increase in cannabis supply and extraction capacity. This has been the strategy we have executed on since day one and 2019 will see this objective become reality.”

And yet, Aleafia stock is trading down on both the TSX and OTC markets.

According to Yahoo Finance, as of 11:17 AM EDT, ALEAF stock is trading at $0.84 on the OTC market, which puts it down 2.97%. Meanwhile, on the TSX, Aleafia stock is down 2.6%, trading at $1.12.

Takeaway

Stock markets are tricky. Figures don’t always reflect what’s happening inside the walls of the company. Aleafia stock may be trading in the red Thursday, but we cannot let that get the majority of the market’s attention, as its second-quarter report remains impressive.

>> Read More Aleafia News

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