REUTERS/Blair Gable
- A number of cannabis company stocks surged on Tuesday, the last trading day of 2019.
- The last-minute gains come after a rough year for pot stocks as the sector has struggled with vaping illnesses, regulatory uncertainty, and disappointing earnings.
- The surge could be a good sign showing that investor confidence is building going into 2020.
- Read more on Business Insider.
On the last trading day of 2019, pot stocks are enjoying last-minute buying after a rough year were many of the most popular cannabis growers struggled to post gains.
A number of hurdles have weighed on investor confidence in the cannabis industry this year, from disappointing earnings,injuries related to vaping, and regulatory issues that led at least one company to destroy millions of dollars of weed inventory.
On Monday, the first-ever cannabis ETF, Horizons Marijuana Life Sciences ETF, ticker HMMJ, slid to its lowest level since launching in April 2017, seemingly capping off a dismal year for the entire sector.
But on Tuesday, HMMJ traded up more than 7% in the year-end rally. It could be a good sign for the cannabis industry, showing that investors are setting up for a stronger performance in 2020.
There are some bright spots on the horizon for the industry, especially in the US. The number of states that have legalized marijuana is climbing rapidly, and on January 1, Illinois will become the latest state where adults over the age of 21 can legally purchase cannabis.
Here’s how much some of the top pot companies were up during intraday trading Tuesday:
- Cronos: 16%
- Aurora Cannabis: 12%
- Canopy Growth: 12%
- Tilray: 11%
- Aphria: 11%
- Hexo: 5%
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