With one week to go before cannabis is legalized across Canada, is it worrisome that cannabis penny stocks are in the red?
Cannabis Penny Stocks: A Sea of Red
Across the marijuana board, stocks are a sea of red. It’s a sorry sight to see this close to such a momentous occasion for this industry.
Today we will look at two cannabis penny stocks that represent the lull across the market right now: Vivo Cannabis (TSXV:VIVO) and Golden Leaf Holdings (CSE:GLH).
There doesn’t seem to be any major catalyst for this stagnation but let’s have a look.
On October 4th, Vivo entered an agreement with Pharmascience Inc. to develop products containing cannabis for medical reasons. Pharmascience is a global pharmaceutical company that holds a Dealers License from Health Canada, and the global potential of this deal should have meant exciting things for Vivo stock.
And in fairness, it did… for about a day. The stock climbed 5% on the news to $1.52 but then began to decline.
In fact, this cannabis penny stock company has not recovered since its high of $1.89 back in September. Why?
There is no obvious reason, so perhaps investors are jumping between penny stocks during this volatile time before legalization.
Golden Leaf Holdings
When a cannabis company announces something new, be it a product, deal, or even a new boss, the stocks usually reflect positively on the news. Anything ‘new’ represents movement, and movement means growth to investors—and any savvy investor will want to see a company grow.
So, okay, a new flavor of CBD oil isn’t exactly a momentous announcement, but I’m still surprised to see that GLH penny stocks dropped on this announcement.
The company added CBD-only Green Apple flavor as an extension of its cannabis-infused fruit chews product line. The chew offers consumers a restorative effect through the use of clean, hemp-derived cannabidiol isolate and real fruit. So what’s not to love!?
Well apparently, lots.
Since the announcement Golden Leaf stock has dropped and it is currently down 3.77%. The mind boggles.
Is this really a reaction to a new additional flavor? Or are cannabis penny stocks simply having a volatile week?
Or maybe investors just don’t like apple.
Featured Image: Depositphotos/© denisismagilov