Can the simple laws of nature be applied to the cannabis sector? Namely, as 2019 has shown, marijuana files that go up – all the way up – can have the same and opposite reaction and go down – all the way down. But will they spring back?
That is what many who keep a close eye on the sector are asking. And perhaps more importantly, which shares will rebound? And which not?
Also for those pot stocks that showed early signs in 2020 that they have a second leap in it, will the revival have significant and sustainable sustainability?
Cannabis stocks that regained some control in January:
Canopy Growth (NYSE :), (TSX 🙂 , by far the largest marijuana grower in North America, has shown evidence that it is one of the rebounders. In the first half of January, the stock achieved a steady gain and reached a high point in 2020 of US $ 25.48 (C $ 33.19) on January 15, a jump of 20.5% compared to the opening on January 2nd.
But it lost some ground in the second half of the month. It ended yesterday with US $ 21.56 (C $ 28.39) to bring the profit so far to 4.8%
Weekly growth of the canopy
Tilray (NASDAQ :), the Toronto-based grower who trades only on the US Nasdaq stock market, has done even better with his jump in 2020. In the first half of January, stocks rose by more than 34% and reached US $ 22.29 on January 15, a highlight for the year so far. Like Canopy, however, it has since lost some ground and closed yesterday with US $ 19.56, making it a respectable profit of 17.9% this month.
But other big names in the pot sector do not show a sustainable bounce in 2020. Such as Canopy and Tilray, Cronos Group (NASDAQ :), (TSX 🙂 and Hexo (NYSE :), (TSX 🙂 showed promising results in the first half of January, but both saw the early price gains evaporate as the month went on. approaching.
Shares of the Ontario-based Cronos Group opened the year at US $ 7.53 (C $ 9.79), peaking for the month US $ 8.80 (C $ 11.48) on January 15, and closed 4.35% for the day at US $ 7.25 (C9.57) yesterday for an overall decline of 3.7% for the month.
At Hexo, the numbers were worse. After a terrible 2019, in which the company's share lost about 70% of its value, the shares opened at US $ 1.60 (C $ 2.08) in 2020 and reached 20% by January 15. They closed 5.67% on US $ 1.33 (C $ 1.75) yesterday for a decrease of 16.87% so far this month.
Evolving to Drop Two Marijuana ETFS
Perhaps another sign of a lack of hope for a recovery in cannabis stock prices this year yesterday came from the Evolve Funds Group, which announced that it would close two of its cannabis shares ETF & # 39; s – the Evolve Marijuana Fund (TSX 🙂 and the Evolve US Marijuana ETF (NLB :).
Evolve is a relatively new but fast-growing Canadian ETF provider. The Evolve Marijuana Fund contains 10 marijuana shares based primarily in Canada, while the Evolve U.S. Marijuana Fund contains a mix of 10 Canadian and US stocks that are traded on US stock exchanges.
The company has not given any reason to end the funds, which will be removed at the end of March.
MediPharm Stock Dives On Court Action News
Shares of MediPharm Labs Corp. (OTC :), (TSX 🙂 had a reversal yesterday and lost more than 18% to end up at US $ 2.32 (C $ 3.03). The fall came on the news that the Canadian company released late last Friday evening that its subsidiary, MediPharm Labs Inc., is suing another Canadian license producer for non-payment of C $ 9.8 million (US $ 7.4 million) for private label cannabis oil.
MediPharm Labs weekly prices
The case, filed with the Ontario Supreme Court, claims that the producer has been working with MediPharm since last February. A BNN Bloomberg report claims that the undisclosed target of the suit is the Hexo Corp in Quebec.
According to a statement released last Friday, MediPharm said, "the claim includes the payment of outstanding amounts of approximately $ 9.8 million."
MediPharm signed a deal with Newstrike Brands last year that was said to be worth $ 35 million in the first year (C $ 46.2 million). The contract also included an option for an additional $ 13.5 million (C $ 17.8 million) of product if needed. Hexo acquired Newstrike last March.
MediPharm & # 39; s latest financial report issued in November, covering the three-month period ending September 30, 2019, showed that it had $ 40.87 million (C $ 54 million) in receivables, significantly higher than the $ 6.4 million (C $ 8.5 million) at the end of December 2018.
MediPharm specializes in the production of purified pharmaceutical grade cannabis oil and concentrates used in a variety of derivatives.
