It’s hard to believe that a market that was so promising before cannabis became legal in Canada can look so bearish after the fact. Cannabis penny stocks are seeing red across the board and not by small measures.
Is cannabis an over-hyped and over-valued sector that we are only waking up to now? Investors must be running for the hills because some of our much-loved penny stocks are down a lot today.
Today, we’re looking at Namaste Technologies, Emerald Health Therapeutics, The Supreme Cannabis Company, and FSD Pharma.
Cannabis Penny Stocks: Namaste Technologies (TSXV:N)
Oh dear. Namaste is down just under 14% at the time of writing. Shares are selling for $1.91 CAD. There was a time not too long ago when this stock was gunning for a NASDAQ listing. It was looking very promising. But since the end of September, the Namaste penny stock has lost over half of its value. What needs to happen to see Namaste Technologies on an upward trajectory again?
Cannabis Penny Stocks: Emerald Health Therapeutics (TSXV:EMH)
A week ago, EMH stock began a steady decline. There was no catalyst—it just seems like the air went out of the balloon. In one week, Emerald has dropped from $5.10 to $3.42, about 30%. In the last 24 hours alone, the stock has lost a further 13% on the day.
Cannabis Penny Stocks: Supreme Cannabis Company Inc (TSXV:FIRE)
Supreme Cannabis Company is down 16.57% on the day. Similar to Emerald Health Therapeutics, the beginning of last week seemed to trigger a significant downturn.
Supreme has lost nearly 40% on the year; however, operations are going strong for this company. Recent cannabis supply signings along with robust revenue growth would suggest this penny stock is unfortunately caught up in a bearish market. At the time of writing, the stock is trading at $1.51.
Cannabis Penny Stocks: FSD Pharma Inc (CSE:HUGE)
Our biggest loser today is FSD Pharma, with losses nearing 20% on the day. Selling for $0.48 CAD, this penny stock could still offer opportunity, however.
FSD is reporting a new acquisition today. The company has signed a binding LOI to take over Therapix Biosciences (NASDAQ:TRPX).
Therapix Biosciences is a NASDAQ-traded pharmaceutical company that focuses on developing cannabinoid-based treatments. The acquisition sees FSD set to develop a new medical cannabis innovator.
Cannabis Penny Stocks: Hype?
Have we been lulled into a false sense of security with this market? Is this bearish downturn just simply the end of all the hype? If so, then whichever companies can sustain growth when the hype is over will be the pillars of this market and perhaps the ones you want to look out for moving forward. The next months will be very interesting.
Featured Image: Depositphotos/© shirotie