[ad_1]
The cannabis stocks were mixed on Tuesday, amidst a host of announcements on the evolution of bills related to medical and recreational use in the United States.
Pennsylvania medical cannabis companies made at least 600,000 transactions in its first year, giving 83,000 patients access to the drug, Governor Tom Wolf said over the weekend. Sales totaled more than $ 132 million, with the Commonwealth collecting more than $ 2 million in tax revenue to date.
"Our goal for the coming year and beyond is to increase the number of producers / processors and dispensaries operating, to enroll even more physicians and to continue the growth of our scientific program. based on medical criteria, "said Dr Rachel Levine, secretary of the Department of Health. in a report.
For the moment, the medical cannabis program has helped 25 producers / processors and 50 dispensaries in Pennsylvania.
Governor Phil Murphy and state legislators have reached an agreement in principle on how to tax and regulate the market, announced NJ.com, a local marketing agency and news provider in New Jersey. The website said the bill would tax cannabis on an ounce basis, instead of imposing a uniform sales tax that Senate President Stephen Sweeney would oppose.
For all the coverage of cannabis companies by MarketWatch, click here.
Do not miss: Canopy Growth Co-CEO Reveals Key Priorities of Largest Legal Marijuana Company in the World
Lawmakers have been unable to agree on a framework for a legal market, fearing that falling weed prices will reduce tax revenues that the state could collect as a problem encountered in others. Legalized states. They also disagreed over regulation, with the new bill proposing the creation of an independent commission. The bill would also remove previous convictions for possession of cannabis. The bill must be passed by both chambers of the legislatures of Democratic-led states before it can be proclaimed.
Among the individual shares, the shares of Canopy Growth Corp.
GSC -2.80%
CANNABIS, -2.53%
decreased by 2.8% in morning trading. Benchmark said the company's financial results for the third quarter of the fiscal year published late last week showed that the company was taking advantage of the first deliveries in the Canadian market for the legal use of adults .
"We expect continued sales growth as the company will benefit from adult consumption and international sales of medical cannabis, somewhat offset by the slowdown in medical cannabis sales in Canada, with some consumers moving from medical consumption to consumption. adult, "writes analyst Mike Hickey. "We anticipate that future product offerings, including edible products and beverages, will accelerate growth during fiscal year 2020 and beyond."
Hickey credits the stock with a price target of C $ 100 (US $ 75), about 38% higher than its current trading level.
See also: That's why the artisanal cannabis industry can thrive against Big Marijuana
Elsewhere in the sector, Hexo Corp.'s US-listed shares, established in Quebec,
hexo, + 0.54%
hexo, + 0.14%
remained unchanged following Oppenheimer's initiation of a hedge with an outperformance rating and a market price target of $ 7.00 over 12-18 months, approximately 18% above its current trading level.
"Overall, we welcome the initial efforts of the HEXO management team to create a foundation that will enable it to become a leading global player in consumer staples in the cannabis category," wrote analysts led by Rupesh Parikh.
The analyst cited Hexo's success in building Canadian infrastructure, joining forces with Molson Coors Brewing Inc., a leading GPC player.
TAP, -0.05%
and in his first innovations.
"We view the Molson Coors partnership as a significant positive development for the company and a vote of confidence on the company's ability to execute," wrote Parikh. "We are closely monitoring the company's ability to win partnerships in other categories such as cosmetics, food products, wine, etc."
Hexo shares are trading at a lower price than their larger counterparts, many of which continue to benefit from high valuations supported by mergers and acquisitions, strategic investments and scarcity value. However, Oppenheimer noted that, given the immature state of the industry, its rating should be considered more speculative than the ratings of other commodity companies.
Read now: British researchers launch a trial of cannabis therapy for the treatment of Alzheimer's disease.
Aurora Cannabis Inc.
CBA -1.11%
CBA -0.43%
shares fell 0.7%. This company announced its last quarterly sales last week, almost quadrupling its sales, while posting significant losses and a falling margin.
Shares of Tilray Inc.
TLRY, -0.11%
were flat, and Cronos Group Inc.
CRON, + 0.94%
CRON, + 1.32%
shares rose 2.5%. Aleafia Health Inc. increased by 1.7%.
The ETFMG Alternative Harvest ETF
MJ -0.50%
down 0.4%, and Horizons Marijuana Life Sciences ETF
HMMJ, + 0.05%
was up 0.5%. The S & P 500
SPX, + 0.25%
and the Dow Jones Industrial Average
DJIA, + 0.14%
were flat to slightly lower.
See also: Washington is getting closer to the establishment of protections for banks working with the pot industry
[ad_2]
Source link