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USA NEWS GROUP MARKET COMMENTARY
Vancouver, BC – April 16, 2021 – USA News Group – The marijuana industry is a budding sector that is increasing rapidly as more companies become public in the U.S. and Canada, but some of them are overvalued and can be attractive to short sellers. While investors are drawn to the industry, there are too many players, which can create a lot of ‘white noise’ out there; there’s definitely a seasonality with pot stocks and come April, the liquidity usually drops off a cliff into the summer and generally speaking, that could be a good entry point.
Here are three marijuana stocks with recent published commentary to be aware of:
Sundial Growers (NASDAQ: SNDL) Barron’s reported “Sell Sundial Growers, Analyst Says. The Cannabis Stock’s Price Doesn’t Match Fundamentals.” Among companies with a market cap of at least $2 billion, data from Finviz shows that Canadian marijuana stock Sundial Growers has a high short percentage, relative to its float. had 166,390,000 shares are held short as of March 15, 2021 or about 10.07% of float currently held short. Canaccord on March 19, 2021 downgraded Sundial to a SELL. Sundial has been falling since February 10, 2021 from a high of USD$2.95 to the current price of ~USD$0.98. BMO Capital Markets downgraded Sundial to Underperform on March 10, 2021.
IM Cannibis (NASDAQ: IMCC) was recently profiled by Rotten Tomato Stocks (RTS) who found the valuation of USD$358 million suspect. They went further to outline the company has three class action lawsuits against them and there may be some controversy over one of their bigger assets, an Israeli marijuana license. IMCC share price in March alone dropped 30% from an intraday high of USD$11.63 on March 3, 2021 to a closing price of USD$7.125 on March 31, 2021. The stock price has continued to decline in April so far.
Tilray (NASDAQ: TLRY) Canadian weed manufacturer, is overvalued, Jason Spatafora of Marijuanastocks.com says the Canadian weed manufacturer’s meteoric rise was due to its share structure. “Every quarter there was another 60 million shares entering the market and diluting the value of the current shares,” he says. After its initial public offering last July, the price of the shares rose to $300, with interest from enthusiastic investors. “Tilray will never see $100 again,” Spatafora says. It’s a good company, but not worth a billion dollars.” The company reported a first-quarter net loss of $30.3 million on revenue of $23 million. Since November 2020 four analysts have downgraded Tilray and the share price has followed in a downward trend. Since February 10, 2021 it has declined from a high of USD$63.91 to the current price of USD$19.84. Steady insider selling has not helped the share price either.
In a booming industry like marijuana, there’s no need to make life complicated. Own the clear winners, not the struggling turnaround stories.
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this publication is not provided to any individual with a view toward their individual circumstances. This report is provided by USA News Group which is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). Individuals are strongly encouraged to not use this publication as the basis for any investment decision.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. The owner/operator of MIQ holds no shares of TLRY or SNDL, but has shorted shares of IMCC and will cover this short position at anytime hereafter. We also reserve the right to buy long, or sell short, any of the stocks mentioned herein, and will buy and/or sell shares in said companies effective immediately. Individuals should assume that all information contained in any of our reports is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public or private company mentioned herein to disseminate this press release.
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SOURCE USA News Group
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