Pot stocks take another dive in wake of worst week for the sector in nearly 9 months

Cannabis Stock Picks

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There’s still no reprieve for weed investors. Shares of cannabis companies took another big hit Monday, adding to the worst week for the sector in nearly nine months, led by a big and active selloff in Aurora Cannabis Inc.

The Horizons Marijuana Life Sciences exchange-trade fund

HMMJ, -10.96%

took an 11% dive and the ETFMG Alternative Harvest ETF

MJ, -8.66%

were knocked 9.4% lower in afternoon trade. The 17% plunge in the Horizons ETF last week, and the 15% tumble in the ETFMG ETF, were both the biggest percentage declines in a calendar week since the week ending Feb. 2, 2018.

Among the more-active cannabis stocks, shares of Aurora Cannabis

ACB, -16.05%

dropped 16%, and were among the NYSE’s biggest percentage decliners. Trading volume topped 24.5 million shares, compared with the full-day average of about 15.4 million shares. The stock has now plummeted 44% in the past seven sessions, putting it on track to close at a 2-month low.

India Globalization Capital Inc.’s stock

IGC, -3.86%

has been halted for news pending since 9:03 a.m. Eastern Time. The stock, which was up 4.8% in premarket trade before the halt, has lost 81% of its value since it closed at an 8 ½-year high of $13.00 on Oct. 2. Read more about all the red flags for investors in IGC.

Meanwhile, shares of Massachusetts-based MariMed Inc.

MRMD, +10.86%

soared 8%, after the owner and manager of cannabis facilities and branded products said Monday that it has completed the acquisition of New Jersey-based licensing, consulting and operations company BSC Group.

Aleafia Health Inc.

ALEAF, -10.94%

said Monday it is launching a research, development and innovation division to be called Aleafia Labs, to advance the development of proprietary cannabis products, including those that may act as replacements for addictive prescription opioids and sleeping aids.

The company has previously announced a cannabis sleep study with Cronos Group Inc.

Aleafia shares dropped 11%, on track for a 10th-straight decline, according to FactSet, while Cronos’ stock

CRON, -12.60%

fell 14%, after declining in seven of the previous nine sessions.

Among other more-active marijuana sector stocks, Tilray Inc.

TLRY, -16.11%

tumbled 17%, Canopy Growth Corp.

CGC, -14.57%

fell 14%, New Age Beverages Corp.

NBEV, -11.43%

gave up 11%, Green Organic Dutchman Holdings Ltd.

TGODF, -16.08%

slid 18% and Aphria Inc.

APHQF, -16.96%

shed 18%.

Vancouver-based Namaste Technologies Inc.’s stock

NXTTF, -15.82%

declined 15%. The company announced before the open that its wholly owned subsidiary, Cannmart Inc., has signed a medical cannabis supply agreement with RMMI Corp. subsidiary Rocky Mountain Marijuana Inc., in which Cannmart will have the right of first refusal to buy 20% of RMMI’s gross production of medical cannabis.

Curaleaf Holdings Inc. shares debuted on the Canadian Securities Exchange Monday, under the ticker symbol “CURA.” GMP Securities analyst Robert Fagan initiated coverage of the medical and wellness cannabis company, which is the parent of Massachusetts-based Curaleaf Inc., with a buy rating.

Fagan said to his knowledge, the company has both the largest dispensary chain in the U.S. and the footprint with the most common-branded stores, with 28 stores all under the “Curaleaf” banner. He expects store count will climb to 60 in 2019.

“Hence, we view the ‘Curaleaf’ brand as having the highest visibility at the national level among peers, which should support market share,” Fagan wrote in a note to clients.

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