Investors’ collective high over Canada’s burgeoning marijuana industry has evaporated
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by Jen Skerritt
Investors’ collective high over Canada’s burgeoning marijuana industry has evaporated, to be replaced by a comedown.
Marijuana stocks tumbled Friday amid a wave of “panic-selling" and concern that companies that had seen ballooning share prices recent are now overvalued. The BI Canada Cannabis Index plunged as much as 19 percent, its biggest intraday drop on record, while the nation’s biggest producers including Canopy Growth Corp. and Aurora Cannabis Inc. have tumbled more than 40 percent from their January highs.
“There’s a lot of investors that got in in the last month and many of them are looking at significant losses,” PI Financial analyst Jason Zandberg said by telephone. “It now looks like it’s a pile-on. There’s a bit of panic selling.”
Shares of Canopy tumbled as much as 16 percent in Toronto to the lowest intraday price in six weeks, while Aurora dropped 17 percent and Aphria Inc. fell 14 percent.
“People are panicking because they are losing their money,” Chris Damas, editor of the BCMI Cannabis Report, said in an email. “Stocks are in bear market territory.”
Copyright Bloomberg News
Related stories:
Horizons announces changes to pot ETF
Plunge in cannabis stocks tests investors
Investors’ collective high over Canada’s burgeoning marijuana industry has evaporated, to be replaced by a comedown.
Marijuana stocks tumbled Friday amid a wave of “panic-selling" and concern that companies that had seen ballooning share prices recent are now overvalued. The BI Canada Cannabis Index plunged as much as 19 percent, its biggest intraday drop on record, while the nation’s biggest producers including Canopy Growth Corp. and Aurora Cannabis Inc. have tumbled more than 40 percent from their January highs.
“There’s a lot of investors that got in in the last month and many of them are looking at significant losses,” PI Financial analyst Jason Zandberg said by telephone. “It now looks like it’s a pile-on. There’s a bit of panic selling.”
Shares of Canopy tumbled as much as 16 percent in Toronto to the lowest intraday price in six weeks, while Aurora dropped 17 percent and Aphria Inc. fell 14 percent.
“People are panicking because they are losing their money,” Chris Damas, editor of the BCMI Cannabis Report, said in an email. “Stocks are in bear market territory.”
Copyright Bloomberg News
Related stories:
Horizons announces changes to pot ETF
Plunge in cannabis stocks tests investors
