CAN.AX down 25% to A$0.006 pre-market ASX 26 Feb 2026: watch liquidity
CAN.AX stock fell 25.0% pre-market to A$0.006 on 26 Feb 2026, making Cann Group Limited (CAN.AX) one of the top losers on the ASX. We see steep intraday selling, thin liquidity and a negative valuation backdrop. Volume is elevated at 2,866,787 shares versus an average of 8,035,892, and market cap sits at A$4,221,450. In this note we explain the drivers behind the move, assess the financials and give a short forecast for traders and investors.
Price action and market context for CAN.AX stock
CAN.AX stock opened at A$0.008 and hit a day low of A$0.006 in pre-market trading on 26 Feb 2026. The one-day decline of 25.0% follows a longer downtrend: year-to-date the share price is down 33.33% and one-year change is -79.31%.
The Healthcare sector on the ASX is under pressure, down 2.07% on the prior session, which adds sector headwinds. We note the 50-day average price of A$0.00872 and 200-day average of A$0.011925, both above the current quote, indicating short- and medium-term technical weakness.
Earnings, fundamentals and valuation: CAN.AX analysis
Cann Group reports negative earnings with EPS -0.04 and a trailing PE of -0.15, reflecting losses. Revenue per share is 0.02298 and net income per share is -0.03874. These figures connect to weak profitability and a stretched balance-sheet picture.
Key ratios show a low current ratio 0.1183, book value per share -0.00481, and enterprise value A$80,051,450. That mix explains why valuation metrics look distorted and why the stock trades with sharp volatility.
Liquidity, volume and trading risks for CAN.AX stock
Trading liquidity is a core risk: current volume 2,866,787 versus average volume 8,035,892, a relative volume of 0.3567. Intraday gaps are likely when bid-ask spreads widen at sub‑cent prices.
We advise traders to expect large percentage moves on small orders. Low free float and 703,575,000 shares outstanding increase the potential for swings when market interest changes.
Operational outlook and sector factors affecting CAN.AX stock
Cann Group operates in medicinal cannabis cultivation, manufacturing and clinical evaluation. Sector demand in Healthcare remains mixed with regulatory and reimbursement risks. Research and development to revenue is 5.89%, showing continued investment in product development.
Export opportunities exist but are counterbalanced by tight cash flow. Operating cash flow per share is -0.01672, and free cash flow per share is -0.01699, which point to ongoing cash burn and execution risk.
Meyka AI grade and consensus view on CAN.AX stock
Meyka AI rates CAN.AX with a score out of 100: 71.08 | Grade: B+ | Suggestion: BUY. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus.
The grade balances recovery potential against clear operational and liquidity risks. These grades are not guaranteed and we are not financial advisors.
Technicals and short-term triggers for CAN.AX stock
Momentum indicators show oversold signals: RSI 37.51, CCI -101.32, and Williams %R -100.00. The 50-day and 200-day averages both sit above the current price, signalling a bearish trend.
Key short-term triggers include any earnings update, liquidity injections, or regulatory approvals. The company has an earnings announcement timestamped 26 Feb 2026 which traders should monitor closely for surprise guidance or cash-raising news.
Final Thoughts
Key takeaways for CAN.AX stock: the pre-market fall to A$0.006 reflects weak fundamentals, thin liquidity and negative technicals. EPS is -0.04, PE is -0.15, and the company shows negative cash-flow per share. For risk-managed traders, the combination of low market cap A$4,221,450 and elevated volatility argues for very small position sizes.
Meyka AI’s forecast model projects a 12-month median scenario of A$0.010, implying a potential upside of +66.67% from the current A$0.006. We also model a downside case to A$0.002 (implied -66.67%) if dilution or continued cash drain occurs. Forecasts are model-based projections and not guarantees. Use earnings updates and liquidity signals to re-assess exposure. For live metrics and alerts see the Cann Group page on Meyka’s platform and follow official company announcements.
FAQs
Why did CAN.AX stock drop 25% pre-market?
The 25.0% drop reflects weak trading liquidity, negative technicals and poor earnings metrics. Low current ratio 0.1183, EPS -0.04, and elevated volatility at sub‑cent pricing amplified selling into limited bids.
What are the main valuation risks for CAN.AX stock?
Valuation risks include negative EPS (PE -0.15), negative book value per share -0.00481, small market cap A$4,221,450, and enterprise value that appears large versus reported sales, increasing downside on adverse news.
How should traders manage position size in CAN.AX stock?
Manage size tightly due to thin liquidity and high percent swings. Use limit orders, set clear stop levels, and avoid large orders that can move price. Consider liquidity risk and potential dilution.
What price outlook does Meyka AI give for CAN.AX stock?
Meyka AI’s 12-month median projection is A$0.010, implying +66.67% versus A$0.006 today. This is a model projection and not a guarantee; downside scenarios remain possible.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.