Most cannabis stocks on the TSX and Venture exchanges are down anywhere from 1% to 6% in mid-day trading, while the Senate session that will see a vote on the amended Cannabis Act, or Bill C-45, is scheduled to begin in about an hour.
These stock movements are occurring in an environment that is a combination of anticipation, anxiety, speculation and uncertainty, based on past legalization legislation passed in various countries and U.S. states. Some industry experts are predicting shortages, others vast oversupply, as the legal and illegal cannabis communities clash for market dominance. As pent-up demand encounters pent-up inventories and ramped-up production, wild market moves can be expected.
Into the fray steps Sean Williams, writing for Motley Fool who more or less (perhaps more…) issued warnings about some of the best-performing stocks in the Canadian equity market of late, including Aurora Cannabis (TSX: ACB, NASDAQOTH:ACBFF), MedReleaf (TSX:LEAF, NASDAQOTH:MEDFF), MedMen Enterprises (CSE:MMEN, NASDAQOTH:MTTPF), and Cronos Group (CSE:CRON, NASDAQ:CRON). All four stocks are down in trading this morning and they are joined by many others including Emerald Health Therapeteutics, Canopy Growth, and others. Even Aphria, given relatively higher marks than the four mentioned, is down today. Interestingly, OrganiGram Inc., a company we covered through our CEO Hotline interview with Greg Engel, CEO, is up 2% as of this writing.
The Senate vote is likely to usher in a new era in Canada, and the accountants, lawyers, financiers, and business types are already actively engaged, off and running. Notwithstanding any market hiccups today and in the future, the upcoming O’Cannabiz Conference and Expo should be ‘abuzz’ tomorrow.
The information and opinions presented here are that of the analyst and do not represent the thoughts and opinions of this website. The analyst does not own or represent any of the companies listed in this article and receives no compensation from any party mentioned in this article. Readers are urged to do their own research and due diligence and should seek advice from an independent financial advisor before making any financial investment.
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