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Cannabis Stocks Are A Sea Of Red As Selloff Stretches To Sixth Straight Day

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Cannabis stocks were a sea of red again on Monday, with Aurora Cannabis tumbling another 9% following disappointing earnings and MedMen down 17% on news of job cuts and asset sales.

The ETFMG Alternative Harvest ETF was last down 2.3% with 23 of its 36 member stocks trading lower. The ETF has fallen for six straight days and is now down 34% in the year to date.

The Horizons Marijuana Life Sciences ETF  was down 1.9%, with 35 of its constituent stocks declining. The S&P 500  was down 0.1% and the Dow Jones Industrial Average  was flat.

Aurora  ,  which suffered its worst trading session in more than five years Friday with a decline of 17%, extended its one-month losses to 32%, in a continued response to last week’s earnings report and news it is stopping construction at two facilities and converting C$155 million of convertible bonds into stock as it works to conserve cash.

The news spooked investors, coming after a period of retrenchment in the sector and broad re-rating of risk. Investors who enthusiastically bought up stocks earlier this year are looking at heavy losses as the rollout of legal cannabis in Canada has not reaped the hoped-for rewards.

See also: Short sellers are increasing bets on cannabis stocks even after summer selloff

Don’t miss: All the excuses cannabis companies are making for an ugly crop of earnings

Source: https://www.marketwatch.com/story/cannabis-stocks-are-a-sea-of-red-again-as-selloff-stretches-to-sixth-straight-day-2019-11-18?mod=cannabis-watch

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