Today, the US cannabis markets were trading a little higher than we have seen in the recent past. The optimism about the US-China talks today may have led to a rise in the US markets, reported CNBC. Also, the Federal Reserve cut interest rates by 25 basis points yesterday.
Performance of the cannabis sector
At 1:50 PM ET, the S&P 500 Index and the Dow Jones Industrial Average Index were up by 0.2% and 0.1%, respectively. But, the ETFMG Alternative Harvest ETF (MJ) was down by 0.5%. In addition, the Horizons Marijuana Life Sciences Index ETF (HMMJ) was down by 1.9%. Today, major cannabis players expect CannTrust Holdings (CTST) (TRST) to trade in the red.
CannTrust Holdings rises over 12.0%
Today, CannTrust Holdings (CTST) (TRST) announced that the AGLC decided to return CannTrust’s products, which are worth $1.3 million Canadian dollars. AGLC (Alberta Gaming, Liquor and Cannabis Commission) is responsible for the distribution of cannabis products across the Alberta province.
Yesterday, the company received a notice. Health Canada partially suspended the company’s standard cultivation license. For more on that, read “CannTrust Loses License: Will It Fall below $1?”
Despite all this bad news, the company was trading at a 12.8% high today at 1:50 PM ET. Year-to-date, the company has lost 73.8% of its stock value as of yesterday. So, investors must be thinking that the stock has moved into oversold territory. This may have led to a rise in the stock price.
Curaleaf falls 1.2%
Yesterday, Curaleaf announced the opening of its seventh dispensary in Arizona. The company opened its flagship dispensary, Curaleaf Pavilions, in the Phoenix metro area. Curaleaf’s president and CEO Joseph Lusardi said, “By opening the seventh Curaleaf dispensary in Arizona, we will be able to provide this expanding population with access to our high-quality cannabis products and exceptional customer service.”
But, the company was trading 1.2% lower at 1:00 PM ET today. Additionally, Curaleaf has returned 63.6% year-to-date as of September 18. The management’s bullish outlook for fiscal 2020 may have played a part in the stock price spike. Also, Curaleaf buying Select and Grassroots Cannabis played a part.
Cronos Group partners with MediPharm Labs
Today, Cronos Group announced that it has partnered with MediPharm Labs (MEDIF). This partnership will help fill and package vaporizer devices. However, the deal needs the approval of Health Canada. And, both companies have signed a two-year deal with an option to renew.
Mike Gorenstein, CEO of Cronos Group, said, “Working with MediPharm Labs gives us the quality and optionality that we are looking for as we introduce our proprietary vape pen formulations.” Further, he said, “We are committed to continuing to the lead the industry responsibly as derivative products are introduced to the expanding Canadian marketplace.” However, despite the news, Cronos Group was trading 4.7% lower at 1:50 PM ET.
Canopy Growth falls over 5.0%
But, Oppenheimer analyst Rupesh Parikh gave Canopy Growth a “market perform” rating, as reported by Market Watch yesterday. For more on that, read “Canopy Growth Stock Rises, Oppenheimer Initiates Coverage.” However, yesterday’s optimism was not seen today. At 1:00 PM ET, Canopy Growth was trading 5.7% lower. It looks like the weakness across the cannabis sector has dragged the company’s stock down. Year-to-date, the company has returned 4.5% as of September 18.