This was another brutal week for cannabis stocks, with all major ETFs posting double-digits losses. Over the last five trading days:
- The ETFMG Alternative Harvest ETF (NYSE: MJ) lost 13.7%.
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) tumbled 17.4%.
- The Cannabis ETF (NYSE: THCX) dropped 16.4%.
- The Amplify Seymour Cannabis ETF (NYSE: CNBS) shed 17.8%.
- The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period down 2.2%.
“Certainly the Covid19 virus is affecting some cannabis companies, especially the vape producers who experienced supply chain interruptions from China,” said Debra Borchardt, CEO of Green Market Report. “However, if sales remain strong at dispensaries, this could be a big test for the claim that the cannabis industry is recession-proof. If that’s the case, this becomes a strong argument to get back into select stocks.”
A long list of cannabis events have also been cancelled, postponed, or transitioned to a digital or online format. Check out Leafly’s list of cancelled events.
Meanwhile, the U.S. House Veterans Affairs Committee passed two pieces of legislation concerning cannabis: one directing the Veterans Administration to start research on marijuana, and one allowing V.A. doctors to fill out medical marijuana recommendations.
Michigan announced it would be phasing out the sale of marijuana by caregivers to regulated operators in three steps, with a cutoff date of Sept. 30. Starting Oct. 1, medical cannabis caregivers won’t be allowed to sell products to licensed businesses, the state regulatory agency said.
Read full article here: https://finance.yahoo.com/news/week-cannabis-coronavirus-drop-major-125317576.html