Jan 23, 2018 Samara Malkin

Top Traded Companies on the TSX Venture Exchange are Cannabis

Newstrike Resources Ltd. (TSXV:HIP), a producer of medical cannabis, is, at the time of writing, the highest traded stock on the TSX Venture Exchange according to Investors Hub, The company currently has 21,365 stock trades. In fact, of the top ten ranking companies for trades on the TSX Venture Exchange, the top nine of those are cannabis companies. (The number 10 spot is currently going to HIVE Blockchain Technologies Ltd. (TSXV:HIVE) with 1,725 stock trades.)

The number of stock trades for Newstrike far outranks the second-highest trading company on the TSX Venture Exchange, which is Emerald Health Therapeutics (TSXV:EMH), currently with 5,606 stock trades. Given the 15,759 difference, the likelihood that Newstrike will be stripped of its number one placement by the end of the day is slim, but I suppose stranger things have happened.

Cannabis stocks also doing well on the CSE >>

Newstrike may be a high trader today, but many of the trades appear to be sells, given that the stock is currently trading in the red at $1.86, which puts it down $0.33, or 15.07%, compared to the previous closing price of $2.19. So far, the day’s range has gone between $1.80 and $2.63, compared to a 52-week range of a low of $0.13 and a high of $3.30. Until today, the stock had been trading up for the past five trading days.

So, what happened today? What’s made Newstrike so unpopular with investors that it made the stock so popular to trade?

The mass exodus of trading could be related to ongoing discussions with Aurora Cannabis Inc. (TSX:ACB). Aurora has been avidly after CanniMed Therapeutics Inc. (TSX:CMED). So far, CanniMed has been resisting what it believes to be a “hostile takeover” by Aurora. CanniMed itself has been in discussions with Newstrike for CanniMed to takeover Newstrike, meaning that Aurora now needs to adjust its plans if it wishes to overtake both the smaller companies.

Read more about the Aurora proposed takeover of CanniMed >>

Discussions of this potential three-way takeover have been postponed to January 25 (they were originally supposed to happen today). If the merger were to take place, then the merged company would become the biggest cannabis company in Canada by market cap.

It’s possible that the delayed resolutions have frustrated Newstrike investors, enough to make them want to sell Newstrike stock. Perhaps they feel the delay is an indication that the merger won’t happen at all.

Newstrike trading was also halted by the IIROC at 9:57 am EST. It was promptly resumed at 10:02 am EST. This temporary halt in trading may have also been a cause for the selloff of Newstrike stock.

The other top traded companies on the TSX Venture Exchange include:

  1. Newstrike Resources Ltd: medical cannabis producer; 21,365 trades; down 15.07%
  2. Emerald Health Therapeutics: cannabis producer; 5,606 trades; up 9.71%
  3. Abcann Global Corporation (TSXV:ABCN) : medical cannabis producer; 4,260 trades; up 12.50%
  4. The Hydropothecary Corp. (TSXV:THCX): medical cannabis producer; 4,152 trades; up 2.85%
  5. Cronos Group (TSXV:MJN): medical cannabis producer; 3,773 trades; up 6.61%
  6. Cannabis Wheaton Income Corp. (TSXV:CBW): cannabis investor company; 3,194 trades; up 2.30%
  7. Organigram Holdings Inc. (TSXV:OGI): medical cannabis producer; 2,710 trades; up 3.32%
  8. The Supreme Cannabis Company (TSXV:FIRE): medical cannabis producer; 2,432 trades; down 1.85%
  9. Harvest One Cannabis (TSXV:HVST): cannabis producer; 1,831 trades; down 1.59%

So, really, of the top nine traded companies on the TSX Venture Exchange, six of the cannabis companies are trading up on the market today.

Featured image: briandcolwell

If You Liked This Article Click To Share

STOCKS YOU MAY LIKE


Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on my research and understanding of the sector.

2) Market Jar Media Inc. has or expects to receive the following amounts indirectly from the following companies mentioned in this Article: Cannabis Wheaton Income Corp.  Click here for important disclosures about fees.

3) The Article and content related to the profiled company represent the personal and subjective views of the Author of this article, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, Market Jar Media Inc. or any of their respective affiliates, guarantee the accuracy or completeness of any such information.  The author was paid by Native Ads Inc. for this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'ss terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on Market Jar Media Inc. should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on Market Jar Media Inc.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.