Pot stocks in Canada were having an amazing run-up this week — i.e. “really stupid valuations,” as one Financial Post report said — when circuit-breaking halts were triggered on the stock exchanges Wednesday, spoiling all the fun.
According to the aforementioned report, “Circuit breaks are tripped when a stock climbs or falls at least 10 per cent in a five-minute period, which appears to have been the case with six marijuana stocks Wednesday.”
Sigh . . . All but one of the six pot stocks ended the day on losing notes, after soaring incredibly in the morning. Pity the poor investors who bought Canopy Growth Corporation at $17.86 before 11 a.m. only to see it close at $11.40, posting a $2.05 (15.24%) loss on the day.
No doubt, all of the stocks that hit high points today will get back there and beyond, and it remains to be seen if it will happen in the near term or the long term.
It is a speculative game for sure, though as analyst Khurram Malik points out in the article, “unlike the past tech bubble there is a fundamental business to support here. People want recreational cannabis … If you have a longer investing horizon then you’ll do fine — these stocks will be trading higher a year from now than where they are trading today.”
And they were still trading high today, even after the correction brought on by the halts.
We’ll know more in the next couple of weeks, after a Task Force on Marijuana Legalization report is delivered, providing “a roadmap for how the Liberal government goes about implementing a legal recreational marijuana market.”
And then there is the weather: We’re in for three balmy days in my neck of the woods, with doubt-digit temperatures. And then the stupid weather begins — and I will be California Dreamin’ again, even as the Donald Trump era begins. It starts Sunday with plummeting temperatures and rain during the day, snow at night, snow Monday and . . . more of the same for much of the week and right through to springtime, if the current forecast holds up.
Good thing I’ve had the winter tires installed on my vehicles. If you live in snow country, you might have yours installed, too — if you haven’t done so already.
Photo Credit: Chmee2, Wikimedia Commons
Did you right that marijuana stocks were high?
Yes, I wrote that. And they are up again today. Puns intended.