logo-loader

Buds & Duds: Cronos shares tumble, Newstrike Brands soars on results

Last updated: 21:46 26 Mar 2019 GMT, First published: 15:26 26 Mar 2019 GMT

cannabis flower
Cronos shares sank on its 4Q earnings report, which reported a swing to a loss

Cannabis stocks had a promising start to Tuesday, with broad gains across North American markets. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1.47% to 305.16 by Tuesday's close. The Horizons Marijuana Life Sciences Index ETF edged up 0.1% at C$22.80.

Duds

The mixed fourth-quarter results of Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) led cannabis news, with shares of the company down 1.4% at US$20.24 in New York and down 1.1% at C$27.06 in Toronto. 

The Canadian cannabis producer reported 4Q revenue of US$5.6 million, significantly higher than the US$1.6 million a year earlier. But the company still had a net loss of US$11.6 million, or US$0.06 per share, a swing from a profit of a penny per share in the year-ago quarter.

READ: Cronos Group reports higher revenue but widening loss in mixed 4Q earnings results

Curaleaf Holdings Inc (CSE:CURA) (OTCMKTS:CURLF) shares lagged Tuesday, down 3.7% at US$8.90 in New York and down 3.6% at $11.90 in Toronto. 

The Vancouver-based company reported a distribution agreement with US drugstore operator CVS Health Corp (NYSE:CVS) last week, with management’s “hope to cement” further deals later in the year.

Buds

Shares of Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) popped after it released its fourth-quarter financial results. 

Shares of the Toronto-based company were up 10% at C$0.55 in Toronto and climbed 7.8% at US$0.42 in New York. 

The company reported sales of C$5.3 million of cannabis in the adult-use and wholesale markets and posted a net loss of C$9,423,000 or C$0.01 per share. 

READ: True Leaf Medicine International to sell hemp-based pet supplements in Pet Planet stores

Other cannabis gainers included CBD- and hemp-focused Isodiol International Inc (CSE:ISOL) (OTCMKTS:ISOLF), which was up 8.8% at US$1.11 in New York and gained 9.5% at C$1.50 in Toronto.

 

Contact Katie Lewis at katie@proactiveinvestors.com

Accesso's landmark deal with SEVEN marks strategic growth in the Saudi Market

Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) chief executive Steve Brown joins Proactive's Stephen Gunnion with details of a significant partnership with Saudi Entertainment Ventures (SEVEN). Brown noted the collaboration highlights accesso's strategy to grow its global footprint,...

24 minutes ago