Buds & Duds: Cronos shares tumble, Newstrike Brands soars on results

Cannabis stocks had a promising start to Tuesday, with broad gains across North American markets. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1.1% to 303.94 on Tuesday midday. The Horizons Marijuana Life Sciences Index ETF edged up 0.1% at C$22.57. 

Duds

The mixed fourth-quarter results of Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) led cannabis news, with shares of the company down 4% at US$19.74 in New York and off 2.9% at C$26.49 in Toronto. 

The Canadian cannabis producer reported 4Q revenue of US$5.6 million, significantly higher than the US$1.6 million a year earlier. But the company still had a net loss of US$11.6 million, or US$0.06 per share, a swing from a profit of a penny per share in the year-ago quarter.

READ: Cronos Group reports higher revenue but widening loss in mixed 4Q earnings results

Curaleaf Holdings Inc (CSE:CURA) (OTCMKTS:CURLF) shares lagged Tuesday, down 2.4% at US$9.02 in New York and off 1.9% at $12.11 in Toronto. 

The Vancouver-based company reported a distribution agreement with US drugstore operator CVS Health Corp (NYSE:CVS) last week, with management’s “hope to cement” further deals later in the year.

Buds

Shares of Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) popped after it released its fourth-quarter financial results. 

Shares of the Toronto-based company were up 8% at C$0.54 in Toronto and climbed 4% at US$0.40 in New York. 

The company reported sales of C$5.3 million of cannabis in the adult-use and wholesale markets and posted a net loss of C$9,423,000 or C$0.01 per share. 

READ: True Leaf Medicine International to sell hemp-based pet supplements in Pet Planet stores

True Leaf Medicine International Ltd (CSE:MJ) (OTCMKTS:TRLFF) shares perked up Tuesday, rising 1.7% at C$0.60 in Toronto, and advancing 3.4% at US$0.46 in New York. 

True Leaf is a Vernon, British Columbia-based cannabis and hemp wellness brand for pets.

Other cannabis gainers included CBD- and hemp-focused Isodiol International Inc (CSE:ISOL) (OTCMKTS:ISOLF), which was up 9.8% at US$1.12 in New York and gained 7.3% at C$1.47 in Toronto. 

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors