Up in Smoke best describes what happened to cannabis investors this week

Aurora Cannabis shares have been pummelled since the start of the year; over the same period, Tilray stock has fared nearly as badly.

investors cannabis investors stock price

Tommy Chiong and Cheech Marin smoked plenty of doobies on-screen. Photo from Up in Smoke

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Ouch! This week, some cannabis investors took a noogie from the market. It came in the form of Aurora Cannabis Inc.’s stock price tumbling 19.9 percent. And since January 2, Aurora shares are down a devastating 78.5 percent.

As a result, the market value of Aurora Cannabis has fallen to $765.4 million. On Friday (September 25), the stock closed at $6.78 in Toronto.

Why? No doubt, the company’s horrible year-end results caused some shareholders to stampede for the exits. Aurora reported a $3-billion annual loss after markets closed on September 22. The next day, investors savaged the stock.

In the cannabis world, the term Up in Smoke is normally associated with a famous Cheech and Chong movie. But this year, it’s a metaphor for investment prospects in Canada’s legal weed sector.

The problems plaguing Aurora these days make other licenced producers’ miserable stock performances seem fairly tepid in comparison. But don’t kid yourself—the numbers are still wretched for cannabis investors.

For example, Canopy Growth Corp. shares were only down a mere 10.7 percent on the week. They closed on Friday at $18.94 on the Toronto Stock Exchange.

The Smith Falls company’s market cap still stands at slightly more than $7 billion, retaining its position as Canada’s most valuable weed company.

Year-to-date, shareholders have been stung by Canopy Growth’s decline of 27.5 percent.

Meanwhile, one of the brighter lights in recent weeks has been Toronto-based Cronos Group. In this context, “brighter” means fewer losses for investors.

This week, its share price declined by 1.6 percent. Cronos shares closed the week at $6.79 in Toronto, leaving it with a market cap of $2.38 billion.

But the picture isn’t nearly as pretty on the year. Since January 2, Cronos stock has sunk by 28.9 percent—bad news for its investors.

Tilray’s performance mirrors Aurora’s for cannabis investors

But hey, that’s not as awful as what’s happened to Nanaimo-based Tilray. Its stock has fallen a whopping 70.8 percent this year. It closed on Friday at US$4.79 on NASDAQ. If there’s anything positive to say, it’s this: the 8.9 percent fall this week beat Canopy Growth’s performance.

Tilray’s ever-shrinking market cap stands at US$609.2 million.

Even the CEO, Brendan Kennedy, thought this week was a good time to dump some stock. He sold 500,000 shares on the market at an average price of $5.13, generating $2.6 million.

Meanwhile, Leamington-based Aphria’s shares fell 5.98 percent on the week to close at $5.66 in Toronto. With a market cap of $1.63 billion, it remains one of Canada’s bigger players.

Year-to-date, Aphria shares have fallen by 13 percent. That’s truly miraculous compared to the other billion-dollar companies.

And if you think that a better option would have been to put your money in smaller weed companies, guess again.

Investors in Delta-based Village Farms International saw their shares drop by 12.38 percent this week to close at $6.44 in Toronto. Year-to-date, the company’s stock has declined by 19.3 percent.

Village Farm International’s market cap stands at $424 million.

Moncton-based Organigram Holdings shares closed at $1.43 on Friday. That’s down 53.1 percent on the year. The company is worth $278.15 million.

And Ottawa-based Hexo Corp. shares endured a 10.3 percent decline in Toronto, closing at $0.87. Year-to-date, the stock is down around 54 percent and the company’s market cap is $403.37 million.

All in all, it marked a brutal week for cannabis shareholders

Charlie Smith

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

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