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How Was 2020’s First Trading Day for Cannabis?

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Euphoria in cannabis stocks drove the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) 5.6% and 7.1%, respectively, on December 31. However, this optimism was not visible today.

At 1:23 PM ET, MJ was down by 2.1%, while HMMJ was trading 2.6% lower at 1:05 PM ET. Meanwhile, the S&P 500 Index was trading 0.3% higher. Let’s look at the cannabis stocks that are in the news today.

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Canopy Growth receives a positive commentary

On December 30, James Hodgins of Curvature Hedge Strategies spoke to BNN Bloomberg about the cannabis sector. On December 31, Cantech Letter reported the details of Hodgins’ commentary.

According to the article, Hodgins was still concerned about the cannabis sector due to the excess supply and pricing pressure. However, he added that Canopy Growth (CGC), which has $2 billion in cash, was in a comparatively better position than its peers.

CGC stock was trading down 5.0% at 1:10 PM ET. Last year, the company had lost 25.4% of its stock value. For analysts’ estimates, please read Canopy Gets Estimates Revised by Analysts for 2020.

GTII opens its first adult-use cannabis store in Illinois

Illinois allowed the sale of adult-use cannabis as of January 1, 2020. Today, Green Thumb Industries (GTII) announced that it opened its first adult-use cannabis store in the state. It was also the company’s 40th store.

GTII already operates six stores in the state, including The Clinic Effingham and 3C Naperville. The Clinic Effingham currently offers only medical cannabis products. However, the company expects to start selling recreational cannabis later this month after the pending hearing for a special use permit.

3C Naperville plans to conduct a referendum on recreational sales in March. Until then, the company plans to sell only medical marijuana products from the store. GTII stock was trading 4.6% lower at 1:02 PM ET. Last year, the company had returned 16.8%.

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HEXO refiles its financial statements

Today, HEXO (HEXO) announced that it had filed restated annual financial statements for the fiscal year ended July 31, 2019. It also filed its interim consolidated financial statements for the quarter ended October 31, 2019.

The company noted that it had overstated a deferred tax liability of 14.3 million Canadian dollars in the earlier financial statements for the fiscal ‎year ended on July 31, 2019. So, the net losses for the fiscal year were also overstated by the same value.

The company added that due to the newly available information, its impairment of inventory increased by 2.4 million Canadian dollars for the same fiscal year. The announcement appears to have boosted investors’ confidence. Today at 1:10 PM ET, the company was trading 1.5% higher.

Cresco Labs’ first day of cannabis sales in Illinois

On the first day after allowing recreational sales, Cresco Labs (CRLBF) announced that it had served 3,145 people from its five Sunnyside dispensaries located in Illinois. It had sold 9,258 cannabis products with an average ticket size of $135.

Today, CRLBF stock was trading 4% lower at 1:06 PM ET. Last year, the company had lost 3.5% of its stock value. For analysts’ opinions and recommendations, please read Cresco Labs: Analysts’ Ratings Post Q3 Earnings.

Please check 420 Investor Daily for more cannabis-related news and update.

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