Key Developments in the Cannabis Sector Last Week



The week ending February 16

The week ending February 16 wasn’t so positive for marijuana stocks even though the broader market indexes ended in the positive territory. The S&P 500 Index (SPY) rose 4% from the closing on February 9 to the closing on February 16. Over this period, the TSX (Toronto Stock Exchange) 300 Composite Index rose 3%. However, some of the major marijuana stocks took a deep dive, and the marijuana ETFs also ended in the negative territory. Let’s look at them in more detail.

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Marijuana ETFs’ weekly performance

In the above chart, we see that four out of five ETFs ended in the negative territory. Of the five ETFs, two debuted just last week. The Evolve Marijuana ETF (SEED), which began trading on February 12, has lost 4% since that date. The Emerging Marijuana Growers Index ETF (HMJR), which began trading on February 14, lost 6% since that date. We’ll discuss these two ETFs in more detail in the proceeding parts of this series.

The Horizons Marijuana Life Sciences (HMMJ) and the Horizons Marijuana Life Sciences Index ETF (HMLSF) fell 3% each last week.

Marijuana stocks’ weekly performance

In the above chart, we can see that six out of nine marijuana stocks fell week-over-week. Emerald Health Therapeutics (EMHTF) emerged as the biggest loser with a fall of 16% last week. Aphria (APHQF) and Aurora Cannabis (ACBFF) both followed with losses of 13% and 11%, respectively. Canopy Growth (WEED) was also in the red with a 6% weekly decline, followed by Supreme Cannabis (SPRWF), which fell 5%. Cronos (PRMCF) was also down slightly by 1%.

Last week, Canopy Growth reported its earnings. Read our coverage in Canopy Growth Reported Losses in 3Q18 despite Surging Sales.

Among the stocks that ended in positive territory, MedReleaf (LEAF) emerged as the biggest gainer with a rise of 13%, followed by CannTrust (EMHTF) with a rise of 8%, and The Hydropothecary Corporation (HYYDF) with a rise of 1% last week.


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