Canada's venture-exchange does not seem to be taking a break from declining supplies of raw materials to the recent uncertainty in cannabis stocks.
More than a third of the pot stocks accounted for the decline of the S & P / TSX Venture Composite index by 11 percent so far this quarter, with cannabis companies holding the top 15 largest contributors by October 29 to the bottom of the Benchmark form. This has exacerbated a longer-term slump in the commodity-heavy small-cap index, which lost it lost about 80
The over-large influence of pot stocks is an indication of how the composition of the benchmark has changed over time the commodity stocks declined. The S & P / TSX Venture consists of 41
There are similarities between small-cap resources and cannabis companies, said Barry Schwartz, chief investment officer in Toronto Baskin Wealth Management with assets under management of over $ 1.1 billion
"Any company that does not Making money or having extremely low market capitalization or no free cash flow is in the area of speculation, "said Schwartz. "I think all of these Venture Exchange stocks are worthless."
I think all of these Venture Exchange stocks are worthless
Between them, The Supreme Cannabis Co., Org Chart Holdings Inc., Auxly Cannabis Group Inc., Newstrike Brands Ltd , Aleafia Health Inc., Vivo Cannabis Inc., WeedMD Inc., Emerald Health Therapeutics Inc., Radient Technologies Inc. and Aldershot Resources Ltd. contributed 30.49 points to 39 percent of the S & P / TSX Venture's fourth quarter decline of 78.97 points.
Cannabis stocks have been trending recently, just before Canada legalized the use of recreational kippers on October 17, ending a two-month rally. high ratings and drew comparisons with the dotcom bubble or Bitcoin. Supply shortages across the country, limited distribution networks in many provinces, problems in Ontario order fulfillment and shortage of consumption stamps cast doubt on whether companies can meet their sales expectations, wrote Martin Landry, an analyst with GMP Securities, on Monday
"At 12 days Cannabis legalization in the rear view makes it increasingly clear that cannabis sales in 2018 will be much lower than previously expected, "said Landry.