Cannabis stocks traded lower almost across the board yesterday, with some of the biggest names showing losses of 2% -7% as investors collectively chose to cash in gains since the beginning of the month.
The seemingly synchronized movement is perhaps a measure of how nervous investors remain in the industry after suffering more than a year of steady losses in this space.
One of the biggest lows posted yesterday was Aphria (NASDAQ 🙂 (TSX :), which saw its stock fall just over 7% in one day to close at US $ 12.01 (CS15.31 for stocks traded on the Toronto Stock Exchange).
Last Tuesday, Stifel analysts raised their target price for the Canada-based pot grower to U $ 12.18.
Shares of Cronos Group (NASDAQ 🙂 (TSX 🙂 also fell yesterday, losing just below 7% to close at $ 9.91 (C $ 12.68 for stocks listed on the TSX are traded). The stock is still up more than 30% in the last 12 months.
Aurora Cannabis (NYSE 🙂 (TSX 🙂 was also one of the pot stocks in the red yesterday, falling 4.6% to close at $ 10.16. . (C $ 12.96 on the TSX)
In the case of Aurora, yesterday's drop comes on the heels of a drop of more than 3.5% posted last Friday. That downward movement was attributed to the company's announcement the day before that it had closed a purchased deal worth US $ 125 million (C $ 160 million).
According to a statement released by the company, proceeds from the offering, which closes today, "will be used for general business purposes." This means that the money can be used to reduce debt. However, it also runs the risk of diluting its outstanding shares.
Marijuana Greater Than Milk in Maine
How Big Are Legal Cannabis Markets in the US? And what does it mean for the treasury when taxes are collected?
Here is a measure of the state of Maine. In 2020, medicinal marijuana officially became the most valuable cultivated crop, surpassing all traditional agricultural products, including potatoes, blueberries and milk.
According to a report in the Portland Press Herald, sales of medical marijuana in the first 10 months of 2020 totaled US $ 221.8 million, more than double the figure for the same period in 2019. By comparison, based on sales tax figures, the number of potatoes sold in the state was US $ 184.1 million, US $ 123.6 million for milk and US $ 26 million for blueberries.
These figures are totals of the eight Maine dispensaries licensed to provide medical marijuana and the state network of approximately 3,000 registered health care providers. They don't include recreational marijuana sales, which include $ 1.4 million in sales for October, the first month of legal sales in the state.
Market Growth Looks Prosperous: Reports
And while we're on the topic of quantifying the size of cannabis markets, the latest report from Arcview Group and BDS Analytics estimates that the global marijuana market will reach $ 42.7 billion by 2024.
Looking at a longer timeline, another report, by Grand View Research, goes even further and predicts that the global legal cannabis market will reach $ 73.5 billion by 2027.
One of the largest segments of this growing market, Grand View claims this is the medical marijuana segment, "due to the growing acceptance of cannabis as a pharmaceutical for the treatment of serious medical conditions, such as cancer. arthritis and Parkinson's disease and Alzheimer's disease, among other neurological conditions. ”
