Aphria continued to fall
Aphria (APHQF) (APHA) has been reeling due to scandalous allegations regarding the company’s business activities. There doesn’t seem to be a bottom for the stock. Aphria stock lost nearly 25% on December 5. The stock has lost 42% in the three trading days in December.
On December 5, we published Aphria Continued to Fall despite the Company’s Defense. We discussed that a number of law firms are investigating the company. Since then, more law firms have announced investigations.
We discussed that Aphria received analyst downgrades this week, which continued on December 5. Eight Capital cut its target price to 7 Canadian dollars from 22 Canadian dollars, which translates into nearly a 68% decline in Aphria’s target price.
Aphria’s issues brought back all of the fears related to the cannabis industry. Canopy Growth (WEED) fell 10%, Aurora Cannabis (ACB) (ACBFF) fell nearly 12.8%, and Cronos Group (CRON) fell nearly 8.4% on December 5.
Looking at the overall cannabis sector, represented by the Horizons Marijuana Life Sciences ETF (HMMJ), the sector fell nearly 7.4% on December 5. The overall market sentiment was bearish on December 5. The S&P 500 Index fell 3.2%.