Many cannabis industry observers thought 2021 was a tumultuous start, with the shares of a number of leading companies making double-digit gains on the prospect of national legalization of marijuana in the United States. But regardless of investor hopes for the recreational and medicinal plant under Biden's government, the up-and-down volatility that characterized the industry returned in early March.
Many cannabis stocks performed well until the end of February.
Companies such as Tilray (NASDAQ :), Canopy (NASDAQ 🙂 (TSX :), Aurora Cannabis (NYSE 🙂 (TSX 🙂 and Cronos Group (NASDAQ 🙂 (TSX 🙂 all posted impressive increases in February. But when the calendar turned the page in March, profits slipped. Towards the end of the first full week of trading in March, short-term fluctuations showed signs of a return.
Tilray, who saw its stock increase by about 35% in February, saw some of those profits disappear. the early days of March.
In fact, at last Friday's close, Tilray stock had lost just over 11% in the week.
The stock performed well at the end of last month after a better poll. than expected, the first revenues after the announced merger with Aphria (NASDAQ :).
Then there was Canopy Growth. Shares of the cannabis giant closed at US $ 30.86 yesterday, down about 1% in a day, contributing to the stock's loss of about 5% in the first week of March, proving it is not immune for trends. But it takes a lot more than the whispers of a retreat to shake up this regular performer.
In the past year, his shares have risen by more than 100%.
Shares of Aurora Cannabis shaved 9% of their value last week. They closed at $ 9.61 yesterday after hitting a brief high of $ 18.97 in February.
Meanwhile, the shares of Cronos Group also shrank by about 9% last week. They closed at $ 9.44 yesterday, a steady decline after reaching a February high of $ 15.55.
The only thing that stands out when looking at all of these graphs is the peak in early February, which matches the Virginia state news. passing legislation to legalize marijuana.
All this points to one thing: Currently, there is only one thing that investors in the cannabis sector are targeting that outweighs a company's merger talks, deal announcements, or earnings results – and that is federal legalization in the US.
That's all investors are waiting for right now.
Mexico set to legalize
Former Mexican President Vicente Fox said late last week that the Central American country is expected to legalize cannabis.
In an interview with Reuters, Fox, who is director of the Colombian-Canadian Khiron Life Sciences (OTC :), which focuses on the medicinal cannabis sector, said Mexican lawmakers will vote later this week to rule out the legalize drug.
The legislation, backed by President Andes Manuel Lopez Orbrador, represents a major shift for Mexico, which has long been plagued by warring drugs. cartels.
The move would create one of the largest cannabis markets that many companies in the industry, including Khiron Life Sciences, want to tap into.
Shares of Khiron Life Sciences rose more than 29% yesterday to close at 42.5 cents and return to levels it reached in February. Still a relatively small company, with a market cap of US $ 64.26 million, the company's stock has struggled, losing about 34% in the last year.
