Today, the broader US equity market was trading in the red. At 2:15 PM ET, both the S&P 500 Index and the Dow Jones Industrial Average were down 0.1%. The cannabis sector showed more weakness. The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down 0.9% and 0.6%, respectively.
Curaleaf and Cresco Labs were trading in the green
Yesterday, the House of Representatives passed the SAFE (Secure and Fair Enforcement) Banking Act of 2019. The act allows financial institutions to do business with cannabis players. This change will likely infuse much-needed capital into cannabis companies, which is required to fund their expansion plans. The optimism over the initial clearance of the bill appears to have driven US-based cannabis companies’ stock prices. At 2:15 PM ET today, Curaleaf Holdings (CURLF) and Cresco Labs (CRLBF) (CL) were up 2.3% and 5.5%, respectively.
YTD (year-to-date), Curaleaf has returned 30.7% as of September 25. Its management’s bullish fiscal 2020 outlook appears to have led to a rise in its stock price.
During the same period, Cresco Labs has lost 13.8% of its stock value. The company reported its second-quarter earnings results on August 21. In the quarter, the company outperformed analysts’ revenue estimates. However, its net losses were higher than expected, leading to a fall in its stock price. The stock has fallen 28.5% since then. To learn more about analysts’ ratings on Cresco Labs, read Cresco Labs: Target Price and Valuation Multiple.
Cronos Group is trading in the red
Today, at 2:15 PM ET, Cronos Group (CRON) was down 3.4%. The weakness in the broader equity market and the cannabis sector appears to have dragged the company’s stock down. YTD, it’s fallen 11.5%. Its higher-than-expected operating loss in the second quarter appears to have dragged its stock price down. For a look at analysts’ ratings on Cronos Group, read Cronos Group: Target Price and Valuation Update.
MedMen Enterprises falls over 7.0%
Despite the optimism over the passage of the SAFE Act by the House of Representatives, MedMen Enterprises (MMEN) (MMNFF) was down 7.7% today as of 2:15 PM ET.
On September 24, the company announced the opening of three more stores in Florida. These new stores have raised the total number of MedMen stores in the state to four. The company also plans to open eight more stores in Florida this year. MMEN has lost 42.3% of its stock value this year as of September 25.