Cannabis stocks are down significantly in recent weeks. Tax-Loss Season is here, the time of year when some investors feel compelled to dump their losers – and lock-in losses. But Stockhouse wants to talk cannabis…are we high?
Hardly.
The only thing that has changed about the cannabis sector since the enthusiasm leading up to the official legalization of cannabis on October 17th is that these cannabis stocks are currently on sale. Cannabis is still the world’s most versatile plant species, with the cannabis industry still in its infancy in terms of commercializing this plant.
This is not some Dot-Com mirage or Dow bubble. Numerous multi-billion dollar (and in some cases, multi-trillion dollar) markets have already been identified in which cannabis will claim substantial market share.
What’s “news” in the cannabis sector (other than the falling share prices of cannabis companies)? Cannabis shortages in Canada.
Canada-wide cannabis shortages could last years, producers warn
Canada’s cannabis shortage is so severe retailers watch 24/7 for chance to scoop up fresh supply
Those aren’t the sort of headlines that should make investors want to sell cannabis stocks. Rather, it should be inducing people to buy with both hands. But wait, isn’t this “Tax Loss Season”?
Yes. And as Stockhouse’s Jon Brown points out, while some investors are dumping their losers, other astute investors are scooping up Christmas bargains. For investors who see the cannabis glass as “half full”, there are lots of reasons to talk cannabis right now – and lots of investors talking cannabis at Stockhouse.
Here are the Stockhouse cannabis Bullboards that have generated the most “buzz” over the period November 21 – 27.
FSD Pharma Inc. – (CSE: HUGE, OTCQB: PGTMF, Forum) – 89120 views
FSD Pharma was one of the best-performing cannabis stocks prior to the downturn in valuations. Its chart (up to November 27, 2018) shows a stock down more than 2/3rds from its all-time high. Turn that around. Back in September, some investors might have been willing to swap their first-born offspring for a chance to buy this stock below $0.30. Nov. 21 (Open) 0.258¢ | Nov. 27 (Close) 0.212¢ Down 17.83% [Editor’s note: C. HUGE is up 11.27% on the day, and trading at $0.395 on positive news from its Q3 report.]
Recent news:
• FSD Pharma Appoints Top GW Pharmaceuticals Executive, Rupert Haynes, as Chief Executive Officer
• FSD Pharma Facility Valued at $105,000,000 with 3,000,000 ft Expansion Assessed at $420,000,000
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Aurora Cannabis Inc. – (TSX: ACB, OTCQB: ACBFF, Forum) – 82662 views
ACB has had an even more erratic previous 12 months than FSD Pharma in terms of share price volatility. The bottom-line however is that this is an industry leader in the Canadian cannabis industry that has been very active in adding value for shareholders. For any investor with a longer term perspective, the current share price shouts “bargain”. Nov. 21 (Open) $8.25 | Nov. 27 (Close) $7.29 Down 11.64%
Recent news:
• Aurora Cannabis Receives Final Regulatory Approval and Completes Acquisition of ICC Labs
• Aurora Cannabis to Ship Medical Cannabis to the Czech Republic
• Change in Attorney General Could Mean a Cannabis Revolution in the U.S.
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Aphria Inc. – (TSX: APHA, OTCQB: APHQF, Forum) – 50326 views
Another Canadian cannabis industry leader, with a one-year chart that is a virtual clone of the chart for Aurora Cannabis. But while the charts are similar, these cannabis companies are forging their own paths. Do your own due diligence. For some investors, ACB will look like the sure bet, while others will be equally adamant about putting their money into Aphria. Nov. 21 (Open) $12.00 | Nov. 27 (Close) $10.29 Down 14.25%
Recent news:
• Blending the Talent of the Beverage Industry to Create the Cannabis Drinks of the Future
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Canopy Growth Corp. – (TSX: WEED, NYSE: CGC, Forum) – 27678 views
We can’t forget about Canopy Growth Corporation – the Big Dog in the Canadian cannabis industry – and neither are Stockhouse investors. WEED helped kick-start an abortive summer rally in cannabis stocks, much like it helped to propel the industry higher near the end of 2017. While the past year has been a mixed one for most other industry leaders, Canopy Growth’s 1-year chart still looks pretty solid – despite the sector-wide pullback. Technically-inclined investors may be more interested in adding WEED shares, while value investors would probably favor the previous leaders. Nov. 21 (Open) $43.58 | Nov. 27 (Close) $42.14 Down 3.30%
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For the last two companies on this week’s most popular cannabis Bullboards, the general pullback in the sector is only part of the story. ISOL and ASNT have had recent stumbles. As with any companies that are dealing with some level of adversity, investors need to be especially thorough in their due diligence. For experienced investors looking for the cheapest cannabis stocks, maybe these companies are now starting to look attractive?
Isodiol International Inc. – (CSE: ISOL, OTCQB: ISOLF, Forum) – 21302 views
Nov. 21 (Open) $1.65 | Nov. 27 (Close) $1.36 Down 17.58%
Ascent Industries Corp. – (CSE: ASNT, OTCQB: PGTMF, Forum) – 20389 views
Nov. 21 (Open) 0.28¢ | Nov. 27 (Close) 0.23¢ Down 17.85%
Switching gears, in our never-ending quest to assist the Stockhouse Community with their investing, we’re offering another online Virtual Conference – our coverage of the “3CM” Canadian Cannabis Capital Markets Conference, held recently in Germany. Watch for further details in the days ahead.
Last but not least, it’s time to update the Stockhouse Community on our Investor Pulse Polls. In our last poll, we wanted you to tell us where you’ve managed to find the best gains in 2018 – a very uneven year for most investors. And here was your response.
Cannabis investors have been down-in-the-dumps for several weeks concerning valuations, as well as in the first half of the year. Resource investors have been seeing soft valuations across most sectors throughout 2018. Yet these are also the two areas where Stockhouse investors have found their greenest pastures.
Now for our new Investor Pulse Poll, located as always on the Stockhouse homepage. Given that we wanted to shine the spotlight back on cannabis, here is our new question.
Outside of North America, which other cannabis jurisdiction is of the most interest to you?
- Germany
- Israel
- Switzerland
- Australia
- None of the above
Vote now!
Cannabis is growing. While share price valuations are currently soft. That’s just a paper look at this industry. Back in the real world, a brand-new (huge and legal) industry is taking shape – and companies are currently on sale now.
FULL DISCLOSURE: FSD Pharma Inc. and Ascent Industries Corp. are paid clients of Stockhouse Publishing.