The North American Marijuana index rebounds! The index rose slightly in the last two sessions after hitting the lowest level in the previous 50 days earlier this week.
North American Marijuana Index Rebounds after Brief Sell-off
The marijuana index has been under pressure since Canada legalized recreational marijuana across the country. Although traders were expecting the marijuana index to rally after the announcement, the dip is blamed mainly on lofty valuations. The majority of cannabis stocks had already climbed more than 100% in the last twelve months from the increasing demand and encouragement of legalization across the world.
The latest dip, however, isn’t presenting any signs of continuation for the long bearish trend. Indeed, traders expect the marijuana index to create a bull-run due to the improving market fundamentals.
>> Marijuana Index Tumbles Despite Solid Results from Marijuana Industry
Market reports show that legal marijuana sales could hit $25 billion in North America alone by 2021. To put into perspective, marijuana sales were at $9 billion in fiscal 2017.
Marijuana producers have been experiencing substantial sales growth over the last couple of quarters and are investing significantly in growth opportunities to capitalize on the increasing demand.
Big Movers Today
Isodiol International Inc (OTCPK:ISOLF) is the biggest gainer in Friday’s trade. Isodiol stock price jumped more than 11% today to $0.47. Its market cap stands at around $135 million – with a trading volume of 8.71 million shares. Its recent acquisitions, including KURE Corp and BSPG Laboratories Ltd, helped it generate record revenues of C$3.32 million in May this year. Isodiol management says that they are aggressively working on the expansion in international markets to enjoy the boom in the marijuana industry.
MariMed Inc (OTCQB:MRMD) is the second largest gainer in Friday’s trade. Its share price rose almost 8% today to $2.40, with the market cap of $448 million. MariMed shares are up more than 260% in the last twelve months, thanks to robust growth in its financial numbers. MariMed reported its sales growth of 80% in the first quarter and expects to generate similar growth in the following quarter.
Featured Image: Depositphotos/© zhudifeng
