Yesterday’s Cannabis Stock Advancers and Decliners, and What to Watch For

FinancialNewsMedia.com News Alert:

FN Media Group Presents Rotten Tomato Stocks Commentary

DUBAI – Rotten Tomato Stocks – This week’s trading opened with some pretty significant advances and declines in the cannabis market, which included some surprises that may impact the remainder of trading activity through Friday. It was an overall rough day at the office for several cannabis stocks, with only a few escaping harm. Here now is a look at what stood out the most among the sector’s players.

Advancers: Altria Group (NYSE:MO) and Abbvie Inc. (NYSE:ABBV);
Decliners: IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) and Tilray, Inc. (NASDAQ:TLRY).

Advancer: Altria Group (NYSE:MO)

Though technically not a pure play cannabis stock, tobacco giants Altria Group have been on a good run since making a very public foray into the cannabis sector through a $1.8 billion investment in recreational pot in 2019.

Earlier this year the company reiterated its plans for a US cannabis opportunity through its investment partners Cronos Group. The further moves into cannabis may help to mitigate the potential woes ahead after the Food and Drug Administration said it planned to ban menthol in cigarettes, also considering requiring lower nicotine content, to non-addictive levels.

Ten days ahead of its scheduled May 20, 2021 annual shareholders meeting, Altria saw its shares yesterday bump up 1.46%. The upward move was a pleasant shift for shareholders who as of late have noticed the tobacco giant’s stock sliding.

Decliner: IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC)

IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) shares declined yet again, marking the 5^th straight down day for the Israeli-based cannabis company, falling another 2.81% on Tuesday, May 11, 2021.

Now since May 3^rd, shares in IMCC have fallen 29.5% from $6.75 to $4.63—and are down a whopping 54% since March 3^rd, which was shortly after the company’s significant share consolidation move.

It doesn’t help that IM Cannabis announced the closing of a US$35 million equity financing at US$5.75 per share, when the stock closes at a $0.86 per share discount—representing a nearly 15% haircut right out of the gate.

Plummeting confidence in IMCC has also taken its toll on the patience of shareholders of MYM Nutraceuticals (CSE:MYM) (OTC:MYMMF). Back on April 1, these MYM shareholders received word that MYM management wanted to move forward on a merger with an albatross in the form of IMCC. At that point in the story, IMCC shares were worth $7.51, compared to yesterday’s $4.53 value that’s now nearly 35% lower originally agreed upon.

Further details of IMCC’s interesting valuation was covered in a previous report on Rotten Tomato Stocks.

Advancer: Abbvie Inc. (NYSE:ABBV)

Despite an onslaught of investigations of a company it had agreed to acquire, shares of Abbvie finished the day up 0.41% on Monday, May 10, 2021.

The pharmaceutical giant isn’t necessarily a sole cannabis stock, but it is the maker of the popular THC-containing drug Marinol.

Technically then, AbbVie is a way to invest in the medical cannabis market while also gaining exposure to the broader pharmaceutical sector.

Its drug Humira recently retained the top spot on the list of the top 20 selling drugs in 2020—garnering the company a mega revenue of nearly $20.4 billion. However, when its patent expires in 2023, Humira will be facing challengers, which will allow for more biosimilars to enter the game.

Decliner: Tilray, Inc. (NASDAQ:TLRY) (TSX:TLRY)

In a potential case of shifting attention, Tilray didn’t announce its last quarter’s financial results. Not a press release, nor conference call was issued. Filed as a stand-alone business ahead of its is merger with cannabis rival Aphria, Tilray’s numbers weren’t great.

During the March 2021 quarter, Tilray’s revenue slipped to $48 million, down $4 million from Q1 2020’s $52 million.

Equal to its revenue numbers, Tilray’s March quarter filing also showed its accounts payable jumped by more than $30 million, to $48 million at quarter’s end. Thanks to a lawsuit settlement, other accrued expenses rose by more than $20 million to $60 million.

Tilray’s solo March losses were $341 million, or $2.01 a share. Approximately $263 million of that loss came from revaluation of outstanding stock warrants, while another $45 million came from settling a lawsuit.

On the trading day, Tilray stock lost over 7% on May 10, 2021.

Article Source: Rotten Tomato Stocks

Disclaimer:

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 Rotten Tomato Stocks which is a wholly-owned subsidiary of Grain Capital Limited (“GCL”). 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 GCL holds no shares of TLRY, ABBV, MO, IMCC, but own shares in MYM Nutraceuticals Inc.. 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 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.

Rotten Tomato Stocks 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 Rotten Tomato Stocks or any company mentioned herein.  The commentary, views and opinions expressed in this release by Rotten Tomato Stocks are solely those of Rotten Tomato Stocks 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 company mentioned herein to disseminate this press release.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

SOURCE Rotten Tomato Stocks