Like the rest of the market, the cannabis sector traded at the end of this week. The ETFMG Alternative Harvest ETF (MJ) closed down almost 5% from where it opened on Monday.
Canopy Growth (CGC) lays off 200 more employees
Canopy Growth is planning to lay off 200 workers across its Canadian, U.S and UK operations. This is part of the company’s latest efforts to scale down, cut costs, and readjust to the current market conditions.
The company’s CEO David Klein said, “Although difficult, the decisions that have been made over the last few months are to allow Canopy Growth to remain focused on the areas where we are winning and ensure that we are delivering the highest quality products to our consumers in every market where we operate.” Klien also mentioned that more information about his “new vision” for the company will be revealed when CGC reports its latest quarterly earnings on May 29. The company already announced that they would be writing down a substantial portion of their goodwill in the range of $700-800 million.
Aurora Cannabis (ACB) prepares for their earnings and reverse split
ACB shareholders could be in for a volatile May. The company is estimated to be reporting earnings a day after the reverse split takes place. With the company’s share price consolidating by a factor of 12, this could set up the perfect storm for more short sellers to move in if the company reports bad earnings. However, despite wave after wave of negative news for ACB, the company remains one of the top traded stocks on the online broker Robinhood and on the Canadian app Wealthsimple Trade.
Innovative Industrial Properties, Inc. (IIPR) barely holds onto a week of gains
The cannabis sector saw a pretty substantial rally on Monday, thanks in part to IIPR. The company tacked on an almost $5 per share gain and continued higher throughout the week until Friday, when the stock market fell 2.81%. IIPR has held up especially well compared to many of the pure-play cannabis companies in the sector.
The company has shown it is able to generate stable long term profits and offer shareholders a substantial dividend. That is impressive especially in the economic environment we are in right now. We look forward to IIPR reporting earnings in early May.
Want More Great Investing Ideas?
9 “BUY THE DIP” Growth Stocks for 2020
7 “Safe-Haven” Dividend Stocks for Turbulent Times
REVISED 2020 Stock Market Outlook– Discover why there is more downside ahead and the Top 10 picks for the bear market.
ACB shares rose $0.02 (+2.40%) in after-hours trading Friday. Year-to-date, ACB has declined -67.59%, versus a -11.71% rise in the benchmark S&P 500 index during the same period.
About the Author: Aaron Missere
Aaron is an experienced investor who is also the CEO of Departures Capital. His primary focus is on the cannabis industry. He also hosts a weekly show on YouTube about marijuana stocks. Learn more about Aaron’s background, along with links to his most recent articles. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
ACB | Get Rating | Get Rating | Get Rating |
CGC | Get Rating | Get Rating | Get Rating |
IIPR | Get Rating | Get Rating | Get Rating |