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Home / Business / Cannabis shares mingled with choppy trading with Canopy Growth and Hexo

Cannabis shares mingled with choppy trading with Canopy Growth and Hexo



Cannabis stocks were mixed on Tuesday, and there were a lot of announcements about US advances for medical and recreational purposes.

Pennsylvania's medical cannabis businesses made at least 600,000 transactions in the first year, giving 83,000 patients access to the substance, said Governor Tom Wolf over the weekend. Revenue was over $ 132 million, with the Commonwealth generating more than $ 2 million in tax revenue so far.

"Our goal for next year and beyond is to increase the number of producers / processors and dispensaries in operation, to register more doctors and to continue the growth of our scientific, medical-based program," said the department the health secretary dr. Rachel Levine said in a statement.

For now, the media cannabis program has granted permits to 25 farmers / processors and 50 dispensaries throughout Pennsylvania.

New Jersey has moved closer to legalizing weed for recreational use with Governor Phil Murphy According to NJ.com, a marketing agency and a local news provider, leaders are reaching agreement in principle on taxation and regulation of the market. The site said the proposed bill would tax cannabis with the ounce instead of charging a flat-rate sales tax that US Senate President Stephen Sweeney rejected.

Click here to cover all MarketWatch reports on cannabis companies.

Do Not Miss: Co-CEO of Canopy Growth Reveals Top Priorities for the World's Largest Legal Marijuana Company

The legislature has been unable to agree on a legal framework amid concern about declining weed prices would reduce the tax revenues that the state could collect a problem that has occurred in other states that have been legalized. They were also at odds with regulation, with the new bill proposing the creation of an independent commission. The bill would also allow the lifting of previous convictions for cannabis possession. The bill must be passed by both houses of democratically-led state legislators before it can be incorporated into a law.

Among the individual securities is Canopy Growth Corp.

CGC, -2.50%

WEED, -2.80%

fell 2.8% in morning trade. Benchmark said the company's third-quarter earnings, released late last week, showed that the company made use of the first deliveries in Canada's adult legal market.

"We expect continued revenue growth as the company benefits from the use of adults and the sale of adult medical cannabis, somewhat offset by the slower Canadian sale of medical cannabis as some consumers switch from medicinal to adult use," wrote the analyst Mike Hickey in a message. "We expect future product offerings, including food and beverages, to accelerate growth in fiscal 2020 and beyond."

Hickey rates the stock with a price target of $ 100 (75 USD), which is about 38% higher than the current trading level.

See also: This is the reason why the craft cannabis industry can thrive in the face of Big Marijuana.

Other sectors of the sector have listed US equities of Quebec-based Hexo Corp.

HEXO, + 1.61%

HEXO, + 1.35%

were flat after Oppenheimer set a target price of outperformance with a target price of 12 to 18 months about 7.00 USD or about 18% above the current trading level.

"Overall, we see the early efforts of the HEXO management team as a foundation to become a leading global provider of consumer packaged goods (CPG) in the cannabis category," said Rupesh analysts Parikh in a note.

The analyst cited Hexo's success in building the Canadian infrastructure through its association with leading CPG player Molson Coors Brewing Inc.

TAP, + 0.49%

and in his early innovations.

"We consider Molson Coors' partnership a very positive development and a vote of confidence in the company's ability to implement it," Parikh wrote. "We are watching closely for the company's ability to partner with other categories such as cosmetics, food, vapors, etc."

Hexo stock trades at a discount to larger peers, many of which are still raised by M & A Ratings enjoy strategic investment and scarcity value. However, Oppenheimer pointed out that given the industry's immaturity, the industry rating is more speculative than other CPG companies.

In January, PI Financial Hexo named one of the six best options for the first quarter of 2019.

"We believe the company is well positioned to play a significant role in the cannabis-infused beverage industry," said Chris Thompson and Philip Ker, who said they offered the stock a speculative buy rating and a 12-month Price target of 10 US dollars gave.

Read: British researchers launch a study on cannabis-based therapy for Alzheimer's

Aurora Cannabis Inc.

ACB, -1.99%

ACB, -2.15%

shares decreased by 0.7%. The company recorded its last quarterly sales last week, nearly quadrupling sales, but also posted large losses and a declining margin.

Tilray Inc. Stocks

TLRY, + 0.44%

were flat and the Cronos Group Inc.

CRON, + 1.55%

CRON, + 1.85%

shares rose 2.5%. Aleafia Health Inc. gained 1.7%.

The ETFMG Alternative Harvest ETF

MJ, -0.28%

increased by 0.4% and the Horizons Marijuana Life Sciences ETF

HMMJ, -0.10%

increased by 0.5%. The S & P 500

SPX, + 0.32%

and the Dow Jones Industrial Average

DJIA, + 0.22%

had dropped flat to slightly.

See also: Washington is Closer to the Protection of Banks Working Together with the Top Industry


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