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By Eric Vengroff, Financial Analyst
Amidst another circa. 400-point selloff on the Dow this morning, and a 0.6% drop on the TSX, cannabis stocks are trading mixed on the various North American exchanges. At 11:55 Tilray (US:TLRY) is down 4% to $71.75 per share while Canopy Growth (CA:WEED) is up 3.7.% to C$37.30 per share.
As reports about orchestrated shorting of Aphria emerge, (CA:APHA) was up 17.9% to $7.66 as investors re-buy some of their positions back.
Other notables, CannTrust (CA:TRST) was up 45 cents or 7.4% to C$6.56 per share, Aurora Cannabis (CA:ACB) up 2% to C$6.81 and 48 North Cannabis (CA:NRTH) also up 2% to $0.52.
As uncertainty reigns in North American stock markets on Monday, effects if the partial U.S. government shutdown have yet to be felt, as it being December 24th, it is a federal government holiday, as is tomorrow, Christmas Day. As it appears all but certain that equities markets will experience their worst single month since the Great Depression, cannabis stocks, which already experienced their own precipitous decline in the month prior post-Canadian legalization, are bouncing around much lower levels, and in some cases may be oversold, along with other market sectors due to negative market sentiment caused by everything from lower oil prices to higher interest rates and the prospect of them going higher.
Canadian cannabis stocks, with the accompanying disappointment that followed relating to widespread reports of cannabis shortages in the cities across the country, the postal strike that delayed initial deliveries, and the ongoing supply chain and compliance challenges, have been hard hit. This week, Ontario Justice Minister Caroline Mulroney told the Globe and Mail in an interview that the Canadian federal government needs to fix the supply shortage, as provinces are getting less than a quarter of what they need to fulfill demand. No solutions were proposed in the article.