Though in recent months during the COVID-19 pandemic the Cannabis industry has lost some of the spotlight, that doesn’t mean that the industry as a whole isn’t finding new ways to make waves. While still a relatively new industry with the passing of certain regulations, this sector should at the very least be on every investors’ radar.
Month to date, the sector has underperformed the overall S&P 500 with some of investors’ medical portfolio exposure moving to biotech stocks in hopes to capture a big pop due to the Pandemic. More specifically, using The Cannabis ETF (NYSE:THCX) as a proxy, this portfolio of securities has fallen almost 9% month to date versus the -2.6% drop in the S&P 500. One noteworthy point to make about the Sector ETF is that it is currently trading around a decent support point back from late June 2020.
In the News:
Though the sector has been lagging in performance when compared to the overall market, this certainly doesn’t mean that some companies within the space don’t have potential. Cardiol Therapeutics Inc. (OTCQX:CRTPF) made the news this morning after announcing it’s initiation of a Phase I clinical study in the company’s search for uses for CBD for the treatment of acute myocarditis of the heart. The results of this trial could assist in providing key information for the already-planned phase II of the experiment.
Furthermore, the release goes on to discuss what’s ahead for CBD as a drug and for Cardiol itself. It goes on to mention the California-based company “is anticipating the imminent launch of a consumer version of its CBD formulation to the medical cannabis market in Canada.” Expansion into new markets while sometimes risky, could lead to potential new revenue streams.
Shares are trading OTC up almost $0.12 or 4.6% from the previous close on the news. This is a nice gain in momentum since it broke through a key resistance level at the start of this month!
One addition company that came through the wire was Wildflower Brands Inc. (OTC-Pink:WLDFF) after it announced that it partnered with Rubicon Organics to bring Wildflower CBD Products into Canada. Shares of the Vancouver-based company are trading OTC over around 11%. Coming off of all-time lows in April, this pop is a breath of fresh air for those holding onto shares of the company.