The broader stock markets are seemingly defying gravity, including hard evidence that the United States will be in recession in 2020. But that doesn't stop US equities from ever reaching all-time highs, marking a new peak yesterday. And the newly reconstructed cannabis sector would not be left behind. Let's call Monday the day of double digit pot share gains.
The list of marijuana companies that saw their stock prices go up was extensive, led by Quebec-based HEXO (NYSE :), which jumped nearly 48% on the New York Stock Exchange and rallied 44.4 % in Toronto (TSX :).
A large number of rival cannabis companies saw strong rallies on Monday.
Green Organic Dutchman (OTC 🙂 (TSX 🙂 achieved 25% in New York (23.75% in Toronto). The Ontario-based grower has seen his stock lose more than 85% of its value in the past year. Cronos (NASDAQ 🙂 also reached the list of top performers on Monday, winning 21.5% in New York and 20.34% in Toronto (TSX :).
iAnthus Capital (OTC 🙂 was one of the few American cannabis companies that were part of the upward momentum Monday. It won 20.6% yesterday. Earlier this spring, the company defaulted on interest payments totaling US $ 159.2 million as it struggled with liquidity as the COVID-19 pandemic flooded North America.
OrganiGram (NASDAQ 🙂 increased 15.34% in New York and 13.87% on the Canadian stock exchange (TSX :).
Aphria (NYSE 🙂 added 13.44% in the US and just under 14% in Canada (TSX :).
Investors Reward Aurora Stake Sale
Aurora Cannabis (NYSE 🙂 shares gained over 12.5% ??in New York through Monday to close US $ 15.74, partly as a result of the company's decision last week to lose its stake in Canadian Alcana (TSX:), one of the largest private alcohol retailers in North America.
According to Alcana's announcement, Aurora will sell its 23% stake in the company for $ 27.6 million, after paying $ 138 million in 2018 to the retailer that also operates 31 cannabis stores in Alberta and Ontario.
Tilray (NASDAQ 🙂 was another pot stock that posted double-digit gains yesterday and recorded just over 10% to end the day Monday at US $ 10.44
Canopy Defies Outlook
Shares of Canopy Growth (NYSE 🙂 ended the day with a respectable showing and added more than 8.5%. This was a welcome relief after a setback last week, when a Wall Street analyst lowered its price target, citing that the largest cannabis company by market capitalization is "fit for growth," but that all that growth may not be realized in the medium term. The downgrade hit Canopy's shares back from a high of three and a half months. Canopy closed for US $ 17.94 (C $ 23.93) yesterday.
Analyst Bill Kirk at Wall Street's MKM Partners maintained a neutral rating of the Canadian-based marijuana giant last Thursday, but lowered the price target to C $ 19 (US $ 14.08). ) from CA $ 21 (US $ 15.56.)
Small Canadian retailer buys Phivida
Choom (CSE :), a small Canadian cannabis trader, saw its share price rise for a third day Monday, after last week's announcement an all-stock deal of C $ 7.3 million ($ 5.42 million) to buy CBD producer Phivida (OTC 🙂 (CSE :). Shares have risen more than 50% in three trading days, closing at C $ 0.20.
The deal is part of Choom's strategy to become one of the dominant national retailers in Canada, according to a statement from the Vancouver-based company. Choom is focused on expansion in Ontario and British Columbia.
Phivida specializes in CBD-based consumer goods. Headquartered in Vancouver, it has operations in San Diego, Toronto and Belgrade.
