Bumpy week for cannabis stocks following rocket ride up since U.S. Election Day

Billion-dollar cannabis companies on both sides of the border endured declining share values over the past five days of trading.

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After impressive gains since U.S. Election Day, many pot stocks pulled back this week. But investors needn’t worry too much—these weed-company share prices remain far higher than where they stood in early November.

Take the example of the most valuable publicly traded company, Canopy Growth Corporation. Its shares declined by 7.7 percent over the last five days of trading. On Friday (December 11), the Smith Falls, Ontario–based licensed producer’s stock closed at $33.84.

However, that’s still up nearly 22 percent from the opening price on November 3 when Americans went to the polls. And Canopy Growth’s market cap remains at an impressive $12.6 billion.

Investors in Edmonton-based Aurora Cannabis Inc. also endured some doldrums this week as their shares fell 6.9 percent. The stock closed on Friday at $12.61 in Toronto.

It means that Aurora Cannabis is now worth $2.32 billion. Yet that’s still 92 percent above its market cap when trading opened on Election Day on November 3.

So it’s still a bit early to shed any tears.

Toronto-based Cronos Group is another Canadian weed stock that recently took a tumble. Its shares declined by the same percentage as Aurora’s—6.9 percent—over five days.

Cronos stock closed on Friday at $10.19 on the Toronto Stock Exchange, leaving it with a market cap of $3.63 billion. But investors can take comfort in the shares still flying 28.3 percent above where they stood at the opening bell on Election Day.

Another billion-dollar Canadian cannabis company, Aphria Inc., experienced a 5.8-percent decline in share value this week. Its market cap stands at $2.95 billion.

On the morning of November 3, Aphria shares opened at $6.77 on the Toronto Stock Exchange. So in five weeks, they’re still up by slightly more than 50 percent. Crack open the Champagne.

Aphria is based in Leamington, Ontario.

Tilray and Curleaf post lower gains than others since Election Day

Cannabis stocks surged since early November partially as a result of ballot measures that were approved in five states.

Voters in New Jersey, Arizona, South Dakota, and Montana all approved legalizing recreational cannabis for residents over the age of 21. South Dakota and Mississippi voters gave the green light to new state medical-marijuana programs.

In addition, President-Elect Joe Biden has promised to decriminalize weed at the federal level.

The fifth and final billion-dollar Canadian cannabis company is Tilray. The Nanaimo-based licensed producer endured the sharpest drop in share value of the five over the past week, dipping by 9.4 percent.

On Friday, it closed at US$7.77 on NASDAQ on Friday, leaving it with a market cap of US$1.04 billion. That’s $1.33 billion in Canadian currency.

Tilray stock also hasn’t fared as well as the others since early November.

At the opening on Election Day, the shares were trading at US$6.88. This means that the stock has only gone up by 12.9 percent since then.

Meanwhile, the largest cannabis company by revenue is Massachusetts-based Curaleaf Holdings. It trades on the Canadian Securities Exchange.

Its share price only fell by 0.06 percent this week, or $0.18, closing on Friday at $15.27. Its market cap is now at $8.58 billion.

However, Curaleaf shares are up 13.8 percent since Election Day. That’s better than Tilray’s performance, but falls far short of the four other Canadian weed companies mentioned above.

Another U.S. producer, Colorado-based Charlotte’s Web Holdings Inc., is in a better position to brag, despite suffering a 16.3-percent decline in share price this week. Its stock closed at $5.83 on Friday on the Toronto Stock Exchange, leaving it with a market value of $744 million.

Nevertheless, Charlotte’s Web’s share price is still up 40 percent from the opening price on Election Day. Only Aurora Cannabis and Aphria have done better over the same period among the billion-dollar Canadian weed companies.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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