🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Economic Case For Cannabis Being Made In Davos As Pot Stocks Tick Higher

Published 2020-01-21, 06:39 a/m

World leaders are not the only people in Davos, Switzerland, for the World Economic Forum this week. Movers and shakers within the cannabis sector from a cross-section of nations are there to rub shoulders with the political and economic heavyweights from around the globe to further the push of the cannabis industry.

CannTech Davos 2020 is hosting a two-day conference at Cannabis House, located in the heart of the Economic Forum, to focus attention on the economic role of cannabis and the growing industry around it and how they will play in the future of health care, international trade, investment and environmental and resource security and climate change.

Speakers from a variety of countries will present at the marijuana conference – from Israel, Switzerland and across Asia. The aim is to induce delegates to the World Economic Forum to visit and learn about the industry. Among the sponsors of the conference is the Canadian Securities Exchange, one of the country’s stock exchanges.

Dubbed a “premier cannabis event” for the industry, the conference “will showcase leading thinkers and influencers from across the globe and present the most relevant conversations industry wide,” the organizers stated.

Pot Stocks Showing Uptick, But Not All

Flaunting the future of cannabis in Switzerland will be a little bit easier this week after marijuana stocks saw significant gains last week.

The North American Marijuana Index was up 11.2% last week, while the Horizons Marijuana Life Sciences Index (TSX:HMMJu) increased by about 19%, the biggest one-week increase since the latter half of 2018.

The gains were produced despite some notable individual stock drops.

Among the biggest losers was Hexo (NYSE:HEXO), (TSX:HEXO), which saw its stock seesaw throughout the last week, hitting a high of C$2.51 (US$1.93) last Wednesday only to close in Toronto yesterday at C$2.05 — an 18% drop. On the New York Stock Exchange, which was closed on Monday for Martin Luther King Day, the shares ended the Jan. 17 session at US$1.62 — a 16% decline.

Hexo Weekly Prices

Aphria (NYSE:APHA), (TSX:APHA) was another stock that took it in the teeth last week.

Aphria reported its latest earnings last Tuesday, failing to meet analysts’ expectations. The Ontario-based grower also cut its guidance for the year. The information issued last Tuesday put downward pressure on its stock, which dropped about 8.5% in Toronto, and slightly more in the New York Stock Exchange.

Among the stocks that saw notable gains last week was OrganiGram Holdings (NASDAQ:OGI), (TSX:OGI).

Its U.S-traded shares soared slightly over 46% last Wednesday. On the Toronto Stock Exchange, it shares jumped 40.5% after the New Brunswick-based producer reported first quarter earnings on Jan. 14. The company said revenues jumped more than 102% to C$25.15 million (US$19.24 million) in the period.

OrganiGram Holdings Weekly Prices

OrganiGram closed at US$3.26 on Friday in New York, down 4.12%, while in Toronto yesterday it tumbled 1.17% to end the day at C$4.21.

Study Shows Curiosity About CBD

The latest study by New Frontier Data found that among 84% of Europeans surveyed who reported to have never used CBD, a non-psychoactive cannabinoid extracted from cannabis, 18% — or about one-fifth — said they expected to try it in the next six months.

The survey also found that pain management was the most common reason (40%) cited by those who use CBD. It was also the most compelling reason cited (33%) by those considering it. Relaxation and stress relief were also identified by an equal number of non-consumers of CBD (19%) as motivating them to want to try it.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.