While the overall cannabis sector experienced weakness on April 23, as is evident in the declines in benchmark ETFs such as the Horizons Marijuana Life Sciences ETF (HMMJ), which was down by about 0.2%, some cannabis stocks managed to gain some positive momentum in the first half of the day.
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During the first half of the day, the gainers included Canopy Growth (WEED)(CGC), which was almost 0.54% higher, while Aphria (APHA) was trading higher by 0.3% around noon. HEXO (HEXO) also managed to stay afloat with a small gain of 0.1%, while Innovative Industrial Properties (IIPR) was trading almost 3% higher during the day. Emerald Health (EMHTF) and Supreme Cannabis (SPRWF) were also in the green with a gain of 0.27% and 0.63%, respectively.
In the red
In contrast to the above stocks, US-based KushCo Holdings (KSHB) was trading lower by 1.2%, while Green Thumb Industries (GTBIF) was trading lower by about 1% in the first half of April 23. Slang Worldwide (SLNG) was also trading in the red with a daily decline of about 4.3% around noon.
The weakness in cannabis stocks was primarily coming from slow movement in the industry. Particularly, the supply bottleneck has caused delays in revenue realization and was evident in the earnings of these companies. However, we must point out that some of these cannabis stocks saw an impressive rally in January, which has still held up well for some. For example, HEXO has returned about 91% YTD, while WEED, APHA, and CTST have returned in excess of 60%, 30%, and 40%, respectively.