Investors Jump Ship On Marijuana Stocks

No one knows why Canadian marijuana stocks are taking a hit. The easy answer is coronavirus or plunging oil prices, but why? The answer is more likely none of the top Canadian cannabis producers are profitable yet and investors are giving up.

Aurora Cannabis (NYSE:ACB) and Tilray (NASDAQ:TLRY) stocks were hit the hardest. Aurora ended at $0.95 per share on the NYSE and Tilray closed at $7.67 on Nasdaq. The companies have fiscal disipline going for them, according to Keith Speights, a Motley Crew writer. But they lack large partners.

Shares of Canopy Growth (NYSE:CGC) closed at $13.22 Monday, its lowest in a year. Cronos Group (NASDAQ:CRON) closed at $5.26, OrganiGram Holdings (NASDAQ:OGI) closed at $1.77.

But the low prices are not seen as buying opportunities. U.S. laws counter state regulations where marijuana and CBD are concerned. Many farmers, perhaps too many, have turned to harvesting hemp. Hemp that measures more than 0.3% THC delta-9 concentration is marijuana and illlegal, acccording to federal law.

The USDA has not authorized any CBD products for cosmetic, drink, edible or medical uses. Thus those products are illegal in the U.S.

One place coronavirus will affect the marijuana industry is conferencing. Two of North America's largest shows have suspended or rescheduled their meetings. Colorado-based NoCo Hemp Expo, which was scheduled for March 26-28, has moved this year’s event to Aug. 6-8. Southern Hemp Expo, originally scheduled for Aug. 14-15 in Nashville, Tennessee, is on hold.

Natural Products Expo West postponed its event in California just one week before it was to start tomorrow; and Israel-based CannaTech rescheduled its annual gathering from March 30-April 1 to June 15-16.