1.3500 -0.01 (-0.74%)
After hours: 6:41PM EDT
|Bid||1.3300 x 1300|
|Ask||1.3800 x 900|
|Day's Range||1.2400 - 1.4000|
|52 Week Range||0.7730 - 10.1700|
|Beta (3Y Monthly)||4.45|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Cannabis Countdown: Top 10 Marijuana Stock News Stories of the Week Welcome to the Cannabis Countdown . In this week’s rendition, we’ll recap and countdown the top 10 marijuana stock news stories for ...
Shares of Cronos Group Inc. rampaged in the extended session Wednesday, gaining as much as 41.5% as of 6:22 p.m. Eastern time on heavy volume, before dropping to a 33% gain at 6:45 p.m. Eastern time. It was not immediately clear why the stock surged in the extended session but two block trades totaling roughly 1.2 million shares crossed at 5:09 p.m. Eastern time at a price of $8.40 a share. If Cronos shares hold on to the gains, the late Wednesday move will be the second largest in the company's history and the largest since the company began trading on the Nasdaq. Previously other cannabis companies' stocks, such as CannTrust Holdings Inc. have notched double-digit gains because an exchange traded fund has re-balanced its portfolio after significant changes to the market price. Cronos Group stock closed up roughly 1% to $8.40 during the regular session. The stock was up 14% in premarket trade Thursday.
Oct. 17 marks one full year of legalized cannabis in Canada — and the road to this moment could have been smoother. “Canada’s rollout of legalization has been hampered by a number of things,” Alan Brochstein, author of 420 Investor, said this week on Benzinga’s PreMarket Prep show. “They should have opened up medical dispensaries first and gotten that distribution out there,” Brochstein said.
Today CannTrust Holdings is trading at $1.30 on the NYSE, 25.60% higher than its last closing price. It's risen even faster on the Toronto Stock Exchange.
With a boost from Aphria’s (APHA) impressive first-quarter earnings, cannabis stocks and ETFs were trading higher today. Let's take a closer look.
The broader US markets were relatively flat today. Weakness in the cannabis sector continued, with the ETFMG Alternative Harvest ETF down 0.4%.
CannTrust Holdings Inc (NYSE: CTST) shares rocketed higher by 16% on Monday after the company reported its next step in bringing its cannabis production business back into compliance following a September license suspension. CannTrust had its license suspended by Health Canada on Sept. 17 after the company was found to be growing cannabis in unlicensed rooms. CannTrust is in a race to get its production back up and running after Health Canada shut down its entire operation in September.
Health Canada had frozen over half of CannTrust's stock of marijuana and the company had earlier estimated its inventory and assets impacted by regulatory issues to be about C$51 million. The Canadian health regulator canceled CannTrust's license to produce and sell cannabis in September, months after it found the company was illegally cultivating pot. The Ontario-based company said its plan to regain regulatory compliance includes measures to recover cannabis that was not authorized by CannTrust's license and improve its inventory tracking.
Canadian cannabis company CannTrust Holdings Inc. said Monday it is still working to attain the full reinstatement of licenses that were suspended after the company was found to be growing cannabis in unlicensed rooms. As part of a series of measures the company is planning to improve practices, it believes it necessary to destroy about C$12 million ($9.07 million) of biological assets and about $65 million worth of inventory that was not authorized by its licence. The material to be destroyed includes product that was returned by patients, distributors and retailers. "Given the status of its licenses, the company is unable to process the material being destroyed or sell it to other licensed producers," it said in a statement. "The destruction process will allow the Company to free up much needed capacity to both implement remediation measures and store material that has been grown and processed in accordance with the Company's license since April 5, 2019. " The company is planning to submit a plan of remediation to Health Canada on or before Oct. 21. Shares were halted for the news down 9% at a record low of 83 cents. The stock has fallen 83% in 2019, while the ETFMG Alternative Harvest ETF has fallen 27% and the S&P 500 has gained 18%.
VAUGHAN, ON, Oct. 14, 2019 /PRNewswire/ – CannTrust Holdings Inc. ("CannTrust" or "the Company", TSX: TRST, NYSE: CTST) announced that it continues to make significant progress on its commitment to take any and all actions required to both bring the Company into full regulatory compliance and seek the full reinstatement of its licenses. On September 17, 2019, CannTrust announced that Health Canada had suspended the Company's licenses to produce cannabis and sell cannabis, without affecting the Company's ability to continue cultivating and harvesting cannabis.
The company announces it will destroy about $12 million of biological assets and another $65 million in pot inventory that it wasn't authorized to produce.
In 2019, marijuana stocks have been on a roller coaster ride. Until mid-March, cannabis investors enjoyed an uptrend. And many marijuana stocks have surged 100%+ in just a few weeks.Source: Shutterstock But since April, many of them have lost considerable value, driven by the sector's general weakness and poor earnings results.Investors are now wondering which marijuana stocks to buy and hold for the-long term. If you are interested in buying marijuana shares, you may also want to take a closer look at the ETFMG Alternative Harvest ETF (NYSEARCA:MJ). The MJ ETF is a marijuana ETF that has about $1 billion of assets under management.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy for the Rest of 2019 Long-term investors should have realistic expectations about the cannabis market. They should also be ready for large daily stock price fluctuations.The marijuana stocks that make up the majority of the MJ ETF also tend to be very volatile around the time when their quarterly earnings are announced. Given the risk posed by the cannabis sector, no cannabis-oriented ETF is going to be completely safe. But MJ's diversification makes it safer than many alternatives. Cannabis Companies in the MJ ETFThe MJ ETF currently holds 38 stocks. About 70% of its assets are allocated to pot companies and growers. Many of the companies whose stock it owns are based in Canada.Among the major stocks in the MJ ETF are Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY) and Green Organic Dutchman Holdings (OTCMKTS:TGODF). It also owns the shares of some tobacco stocks and fertilizer companies.A recent study by Lake Land College has concluded that Canadian "[c]annabis stocks on average possess higher level of risk when compared with growth and speculative stocks on the TSX."With the recent decline in the the price of individual marijuana stocks, many of them have come down to more attractive levels.But one fundamental point that investors need to keep in mind is that most cannabis producers are not profitable yet. Analysts value cannabis companies mostly based on their belief that these companies will be profitable in the future.But I'd bet that several marijuana stocks may not be around in several years because some of them have negative cash flows, poor business models, and intense competition.The MJ ETF can avoid some of the bad marijuana stocks. But the ETF will have difficulty outperforming several of its large holdings, such as Cronos Group, Aurora Cannabis and Canopy Growth. Nonetheless, the diversification of the MJ ETF limits its volatility and declines while retaining exposure to the potential gains of the cannabis market. Two Other Stocks to Note in the MJ ETFA wide range of products are made from cannabis, including CBD oils, edibles, cannabis-infused beverages, and concentrates used in vaping, creams, and lotions. Thus the industry includes companies that make, market, and distributing these products and their components.I'd like to highlight one stock, GW Pharmaceuticals (NASDAQ:GWPH), in the MJ ETF that is quite different than the other marijuana stocks. GW is MJ's largest holding, accounting for 7.91% of its assets.A 2018 report by the United Nations revealed that Britain is the biggest producer and exporter of legal cannabis in the world. In 2016, the UK produced 95 tonnes of marijuana and exported 2.1 tons.Virtually all of the U.K.'s cannabis exports are contained in one drug, Sativex, which is produced by UK-based GW Pharmaceuticals, a leading cannabinoid-focused biotech company.GW's Sativex is used to treat spasms in multiple sclerosis patients. Last year the company obtained U.S. regulatory approval of its CBD drug, Epidiolex, for the treatment of epilepsy.GW stock has gone from about $10 in 2013 to an all-time high of $196 in May 2019. Currently it is hovering around $110.MJ also owns shares of the companies that provide ancillary products and services to the cannabis companies. One such name is Scotts Miracle-Gro (NYSE:SMG), which is known for its fertilizer products. Where Is the MJ ETF Price Now?In the past two years, marijuana stocks have been choppy and highly speculative. Their valuations can and do change suddenly and drastically, both as a result of company news and developments in the industry.For most of 2019, cannabis stocks have struggled. And MJ ETF reflects their weakness.In 2019, the MJ ETF is down over 20%. After reaching an intraday low of $23.3 on Dec. 24, 2018, it rallied to a high of $39.25 on March 19. Its 52-week high remains at $44.29, reached on Oct. 16, 2018. Currently it is hovering around $18.70.Those investors who pay attention to charts should note that, due to the decline of its price since late March, MJ ETF has a not-so-pretty technical picture. In the long run, MJ needs to build a base again before a long-term, sustained rally can occur.MJ stock probably won't surpass the high it reached on March 19, 2019 in the near-term.And MJ may reach a new 52-week low,possibly around $18, very soon. In the coming weeks, I expect MJ to mostly trade between $22.5 and $17.5.However, in case of a broader market selloff, the fund could easily near $15. The Bottom Line on the MJ ETFMJ ETF offers exposure to Canadian cannabis producers and a number of biotech firms. Therefore, it may be appropriate for some long-term investors who are interested in the cannabis sector.It is important to note that unless the U.S. federal government legalizes marijuana, the worldwide cannabis market consists, for the most part, of Canada. And most of these cannabis companies cannot become profitable from the limited Canadian market alone. As a result, the high valuations of some marijuana stock are quite difficult to justify.Most Canada-based cannabis companies have high operating expenses. The continuous red ink at the bottom of their income statements is a major worry for the shareholders. If the international cannabis market does not grow as expected, then MJ ETF could drop further.Investors who buy MJ ETF in the near-term should hold the ETF for several years.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post What to Know Before Investing in the ETFMG Cannabis ETF appeared first on InvestorPlace.
VAUGHAN, ON, Oct. 10, 2019 /PRNewswire/ - CannTrust Holdings Inc. ("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) today is providing a status update in accordance with its obligations under the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders ("NP 12-203"), which require the Company to provide bi-weekly updates until such time as the Company is current with its filing obligations under Canadian securities laws. As previously announced, the Company is subject to a management cease trade order ("MCTO") issued by the Ontario Securities Commission. The MCTO prohibits the directors and executive officers of the Company from trading in or acquiring securities of the Company until two full business days after the Company files an interim financial report for the three and six month periods ended June 30, 2019, an interim management's discussion and analysis for the corresponding period and certifications of interim filings.
Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.
Today, President Trump announced that a US-China trade deal could happen earlier than expected. Equities were up, but cannabis stocks were mixed.
CannTrust (CTST) (TRST) was one of the worst performers in the cannabis sector last week. The stock lost almost 19.6% in one week alone.
GW Pharmaceuticals (GWPH) wins EU approval for Epidyolex as an adjunctive treatment of seizures associated with Lennox-Gastaut syndrome or Dravet syndrome in patients aged two years and above.