The countdown is on: it’s a mere 21 days until recreational cannabis is legalized in Canada and stocks on both sides of the border faced some pot-holes today.
It’s safe to say marijuana stocks have had an exciting ride, particularly in the last few months. But this market is also fueling speculation and potential quick gains -- and losses.
"Assessing the valuation of a company in a fledgling industry that has virtually no revenue or earnings is no easy feat, even for us investment pros," wrote Martin Pelletier in a column for Canada's Financial Post. "That’s something retail investors should keep in mind amid the current mania."
Some highlights from the day:
Buds
Aurora Cannabis Inc (TSE:ACB) (OTCMKTS:ACBFF) were up today after it released impressive fiscal-fourth quarter results, but a confirmation of its plan to list on a major US exchange may have stolen the spotlight.
The cannabis company reported revenue of C$19.1 million, more than triple the C$5.9 million in revenue reported in the previous fourth quarter.
Shares of Aurora were up 4.0% to C$12.77 while its US shares closed up 3.7% to US$9.81.
READ: Aurora Cannabis triples revenue in 4Q, confirms plans to list on a major US exchange
Tilray Inc (NASDAQ:TLRY) shares popped 8.4% to US$107.88.
The company announced Monday that it has successfully exported medical cannabis from Canada to Australia to distribute to critically ill children.
Tilray will distribute its CBD 100 product to three hospitals in the state of Victoria through its wholly owned subsidiary, Tilray Australia New Zealand Pty Ltd. The hospitals are Royal Children's Hospital,
Monash Children's Hospital and Austin Health and will be used mainly for children suffering intractable epilepsy.
Tilray climbed last week to an all-time high of US$300 per share before pulling back sharply.
READ: Tilray stock rises after announcing deal to supply medical cannabis to critically ill Australian children
Duds
Cronos Group Inc (TSE:CRON, NASDAQ:CRON) shares dipped today down 3.3% at US$11.47 in New York and were down 1.8% at C$15.03.
Cronos also took a hit a few weeks ago after the infamous short seller Andrew Left’s firm Citron Research delivered a pessimistic call on the stock.
Shares of Surna Inc (OTCMKTS:SRNA) were down 8.9% at US$0.14 on Wednesday.
The company manufactures equipment for the legal cannabis industry.
The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, was up 0.24% at C$24.73.
The North American Marijuana Index, comprised of the leading cannabis stocks in the U.S. and Canada, was also on the decline down 2.35% at US$341.92.