Cannabis News: Stocks Rebound as Summer Rolls On

Cannabis News

Cannabis news headlines haven’t been kind to investors this summer. Between mounting scandals and falling prices, the sector has been taking hit after hit. Rich has already discussed everything that cannabis stock watchers need to know about the summer slump, and how low prices can present unique buying opportunities.

Today, as most cannabis companies in North America go green for the first time in more than a week, we’re getting indications of the great rebound. While cannabis stock prices always go up around September, an early upturn means that the buying opportunities might be coming to a premature end.

“I believe we have reached the bottom, and the resurrection is coming,” explains Rich.

Check out Rich’s latest video for the cannabis news you need to know about if you’re thinking about buying before the slump ends.

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Aphria Stock Jumpin’ on Jamaican Deal

One of the biggest movers in the sector was Aphria Inc (TSX:APHA) (NYSE:APHA). Cannabis news took a turn for the better when the company announced that its subsidiary, Marigold Projects Jamaica, received a retail license from Jamaica’s Cannabis Licensing Authority.

“Aphria is back from the dead at $7.34,” explains Rich. “Up 4.56 percent.”

This is Aphria’s first upturn since falling to $1.50 in mid-July. Earlier, in April, it tumbled 16 percent after posting its fiscal third-quarter results. News that the company’s CEO was stepping down evidently did not sit well with investors.

Trulieve is for True Cannabis Believers

Late last week, Rich announced that Trulieve Cannabis Corp. (CSE:TRUL) (OTCPK:TCNNF) was his number one cannabis stock for August. It didn’t take long for this pick to start paying out, as just yesterday news broke that the company closed a deal with Innovative Industrial Properties, Inc. (NYSE:IIPR).

The deal saw IIPR acquire a 150,000 square-foot industrial space from Trulieve for $43.5 million. Located in Massachusetts, the property will be redeveloped and then leased back to Trulieve for the cultivation of cannabis to begin. The news caused Trulieve stock to jump from a low of $9.96 on Friday to a high of $10.73 on Monday.

Cannabis News Forecast: Sunny for Sunniva

Rich points out Sunniva Inc. (CSE:SNN) (OTCQB:SNNVF) as a stock of particular interest for the near and long-term future.

“Sunniva is an interesting one. Sunniva exploded after their IPO, as high as $16.48 CAD. Since then, it’s just been falling to where it is right now, where it just hit $2.00 a day ago.”

Despite the fall—or, perhaps, because of it—Rich says that he absolutely loves this company. He notes that it is one of the few penny stock cannabis companies generating significant revenue this early in the sector’s growth. In its last quarter, it generated more than $14 million, making it 9th in Canada for revenue generated.

Another reason Rich likes Sunniva is its share structure.

“Very few companies have a share structure like this,” he says. “38.75 million total shares … and only 35,000 shares are being shorted. There’s nobody shorting Sunniva. If the big boys aren’t shorting Sunniva, it means they’ve got a tight float.”

What do you think? Has the sector found its floor? Or is the summer slump going to keep slouching along through August? Let us know your thoughts in the comments below; we’d love to hear from you.

Featured Image: DepositPhotos © lightsource

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