Investors’ optimism about the US and China signing a trade deal appears to have led the US market to trade in the green today—and cannabis stocks are also trending higher overall. At 12:38 PM ET, the S&P 500 index and the Dow Jones Industrial Average were both up by 0.4%.
The cannabis sector was also trading higher today. At 12:38 PM, the ETFMG Alternative Harvest ETF (MJ) was up 0.1%. The Horizons Marijuana Life Sciences Index ETF (HMMJ) was trading 0.1% higher at 12:24 PM ET. In fact, the majority of the cannabis stocks are trading in the green today.
Curaleaf launches adult-use cannabis operations
Also today, Curaleaf Holdings (CURA)(CURLF) launched its first adult-use or recreational cannabis operation in Massachusetts at Oxford. The adult-use dispensary will operate alongside the company’s medical dispensary, which began operating in April 2018. The company also owns two additional provisional licenses to open recreational cannabis dispensaries in the state.
The announcement appears to have led to a rise in the company’s stock price. At 12:19 PM ET, Curaleaf was trading 1.9% higher. Curaleaf’s stock was under pressure since revising its acquisition terms with Cura Partners, the owner of the Select brand.
MedMen stock rises over 7%
This year, MedMen Enterprises (MMEN)(MMNFF) has lost 63.6% of its stock value as of November 1. The weak fourth-quarter earnings, the termination of its merger agreement with PharmaCann, the accusation of financial irregularities, and weakness in cannabis stocks overall appear to have dragged the company’s stock down.
Investors seem to think that MedMen stock is oversold. Today, at 12:22 PM ET, the stock was trading 7.1% higher.
Aphria receives a cultivation license
Today, Aphria (APHA) announced that it received a cultivation license for its Aphria Diamond facility in Ontario from Health Canada. The new facility spans 1,300,000 square feet and can produce 140,000 kilograms of cannabis annually. The new facility has increased Aphria’s production capacity to 255,000 kilograms per annum.
Despite the announcement, and unlike most cannabis stocks today, APHA was trading 0.4% lower at 12:25 PM ET. Recently, Aphria received a “buy” rating from Jefferies. For more, please read Aphria: Why Jefferies Recommends a ‘Buy.’
KushCo Holdings stock falls over 8%
Another ticker that’s not keeping up with the overall strength in cannabis stocks today is KushKo Holdings (KSHB). Street Insider reported that Northland Capital Markets lowered its price target for the stock from $8.00 to $6.00. However, the investment firm maintained its “outperform” rating for the stock. As of November 1, eight analysts followed the company. All these analysts have rated the stock as “buy,” and they’ve given an average 12-month price target of $6.25, which implies a return potential of 236%.
Northland’s price cut appears to have led the stock to fall. At 12:26 PM ET, the company was trading 8.6% lower than its previous day’s closing price. As of November 1, the company has lost 65.4% of its stock value this year.
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