Many marijuana manufacturers sector observers regarded the beginning of 2021 as a very successful - shares of many leading companies sector rose to two-digit values due to the prospect of the legalization of marijuana in the United States. But, regardless of the hopes of investors to receive by the administration of Byyden, permits for the cultivation of hemp in medical and recreational purposes, in early March, the volatility characteristic of the sector was returned.
Shares of many marijuana producers have demonstrated positive dynamics until the end of February.
For February, Tilray (NASDAQ: Tlry), Canopy Growth (NASDAQ: CGC) (TSX: WEED), Aurora Cannabis (NYSE: ACB) (TSX: ACB) and CRONOS GROUP (TSX) (TSX: CRON) . But when February was changed on the calendar March, these companies began to go down in price. By the end of the first week of trading in March, short-term price fluctuations on the market were returned.
Tilray shares, which for February rose by 35%, in the first days of March lost part of the February growth.
Tilray shares completed a week with a decrease by 11%. At the end of last month, they significantly went up after the company has published the first income report after a merger declaration with APHRIA (NASDAQ: APHA). The report turned out to be better than the forecasts of analysts.
As for the CANOPY GROWTH, at the end of the trading of Monday, the shares of this giant cannabis market cost $ 30.86, cheapering for about 1% for about 1% and continued in the first week of March a decline of 5%. Thus, CANOPY GROWTH has proven to be also subject to trends as other sector companies. However, in order to shake this stable manufacturer, you need something more than a small hint of a decline in the course of shares.
Over the past year, CANOPY GROWTH shares rose by more than 100%.
Last week, Aurora Cannabis shares lost 9% in price. At the end of Monday trading, they cost $ 9.61 after in February they rose to the maximum of $ 18.97.
Promotions Cronos Group over the past week also asked for 9%. At the end of the Monday trading session, they cost $ 9.44, consistently cheap after in February they fixed a maximum of $ 15.55.
Looking at these graphs, you should pay attention to their sharp growth in early February, when the news came about the adoption of the law on the legalization of marijuana in Virginia.
All the above arguments lead to one: marijuana sector investors are not particularly worried about merger negotiations, concluded transactions and income reports. At the moment, all their attention is concentrated only at one - on legalization at the state level in the United States.
This is the only thing they are waiting for now.
Mexico is ready for legalization
Former President of Mexico Vicente Fox at the end of last week said that his country would most likely legalize marijuana.
In an interview with Reuters, Fox, which is headed by the Columbia-Canadian company Khiron Life Sciences (OTC: Khrnf), producing goods from marijuana for medical purposes, said that the Mexico Parliament votes for the legalization of these medicines this week.
In favor of legalization, the current President of Mexico Andres Manuel Lopez Ordor. The approval of marijuana will become a significant change in the country's policies, which for a long time suffers from wars with drug carriers.
As a result, one of the largest markets for the goods from hemp may appear, which many companies seek to go through, including Khiron Life Sciences.
On Monday, the action of Khiron Life Sciences rose by more than 29% and at the closure of the trading session cost $ 0.425, returning to February levels. Nevertheless, this company remains relatively small with a capitalization of $ 64.26 million. Over the past year, its shares fell by 34%.
Read Original Articles on: Investing.com