GREY:CHALF - Post by User
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daveinvestoron Aug 14, 2018 7:02pm
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sector doldrums explained
sector doldrums explained Cannabis stocks rattled by Ontario rule changes
https://www.thestar.com/news/cannabis/2018/08/14/cannabis-stocks-rattled-by-ontario-rule-changes.html The Conservative government also said it will allow municipalities to opt out of recreational marijuana sales, a move that may have created uncertainty buffeting stocks, although MacGregor of Aurora said she believes the economic opportunity will be too compelling for municipalities not to climb on board.
MacGregor said the opt-out provision was a surprise, adding that retail pot locations offer the potential for the creation of a “significant number of jobs.”
Pot stocks traded lower Tuesday , with Canopy Growth Corp. down $3.03 or nearly 9 per cent at $32.01 and Aurora Cannabis off 59 cents or nearly 10 per cent at $5.34 as some investors said the delay means short-term pain for cannabis producers.
Canaccord Genuity’s Matt Bottomley in a note to investors said “we believe a shift to a private-sector model will likely further complicate an already challenging process and result in a slower ramp for rec sales in Ontario,” adding that the April 1 date may not be realistic. But he said some cannabis companies could benefit from the opportunity to become an vertically integrated producer and retailer under the rules laid out Monday.