Cannabis stocks fall
IIPR and others
Innovative Industrial Properties (IIPR) was one of the biggest underperformers at the start of the day, with its stock falling 0.46%, while OrganiGram (OGRMF) continued to fall as much as 2.3% in the first half of the day. HEXO Corporation (HEXO) wasn’t far behind with a daily decline of 1.6%, and KushCo Holdings (KSHB) slid another 0.7% during the same timeframe.
Aphria (APHA), another major player, was also trading lower around noon with a fall of 2.1%.
Cannabis stocks are trading at the lower end of their historical valuations, which some investors may consider attractive. However, recent disappointing earnings in the sector may have put some of them off. It appears investors are thinking that maybe the kind of growth they’ve expected is too optimistic. Read Do Cannabis Stocks Look Cheap at These Valuations? to learn more.
Nonetheless, the world continues to open up to the cannabis sector, which could provide a tailwind to the earnings of the above-mentioned cannabis players.