Buds & Duds: Cannabis stocks show early gains; The Green Organic Dutchman higher as it ups Canadian footprint

Cannabis stocks inched higher on Tuesday in a small sign of life for the marijuana sector across North America.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, gained 1% at 112.1 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF was up 3.3% to C$8.71, while the OTCQX Cannabis grew 1.2% at 448.7 points.

Buds

The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF) shares rose on Tuesday morning after it announced significant increases in the company’s distribution area.

Adding Alberta, Manitoba and Nova Scotia gives the organic cannabis company access to more than 340 new retail stores, on top of its current 24 stores in Ontario.

The Toronto-based company said it is on track to distribute nationally in 1Q 2020.

Shares gained 9.2% in Toronto at C$0.71 and 10.1% over the counter at US$0.54.

After a week of earnings to forget, Trulieve Cannabis Corp (CSE:TRUL) (OTCMKTS:TCNNF) bucked the disappointing trend by posting higher-than-expected third-quarter revenue of nearly US$71 million, beating analyst expectations of US$65 million.

The US multistate operator is based in Florida, a robust cannabis state. The company opened six additional dispensaries in the state during the three-month period.

Shares of Trulieve moved 3.2% higher in Canada and 3.5% higher over the counter at C$15.42 and US$11.69, respectively.

Also up after a tough few days was Hexo Corp (TSE:HEXO), up 10% in Toronto and New York at C$2.32 and US$1.75, respectively.

Duds

MedMen Enterprises Inc (CSE:MMEN) continued to fall on Tuesday, losing 12.2% in Canada at C$0.86 and 13.6% over the counter at US$0.66. The company announced earlier that it is cutting its workforce by 20% and shedding non-core assets as the pot retailer’s business continues to struggle.

Also in the red on Tuesday morning were Ignite International Brands Ltd (CSE:BILZ) (OTCMKTS:BILZF), down nearly 7% in Canada at C$1.61 and 8.4% over the counter at US$1.20, and iAnthus Capital Holdings Inc (CSE:IAN), which lost 2.4% in Canada at C$1.66 and 3.1% over the counter at US$1.35 on Tuesday morning.

Story by ProactiveInvestors