Marketwatch Report Says Cannabis Investors Are Spooked After 6th Day Of Tumbling Stocks
Marketwatch write……..Cannabis stocks were a sea of red again on Monday, with Aurora Cannabis tumbling another 15% following disappointing earnings and MedMen down 23% on news of job cuts and asset sales.
The ETFMG Alternative Harvest ETF was last down 4% with 26 of its 36 member stocks trading lower. The ETF has fallen for six straight days and is now down 35% in the year to date.
The Horizons Marijuana Life Sciences ETF was down 5%, with 48 of its constituent stocks declining. The S&P 500 was up 0.1% and the Dow Jones Industrial Average was up about the same.
Aurora , which suffered its worst trading session in more than five years Friday with a decline of 17%, extended its one-month losses to 37%, 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, in a transaction that is expected to be highly dilutive.
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.