Several cannabis companies such as Canopy Growth Corp. CGC, Tilray Inc. TLRY and Aurora Cannabis Inc. ACB kicked off the week with an uptick in their respective stock prices.
Alan Brochstein, founder of 420 Investor and New Cannabis Ventures, says there are "two factors" that led to this, citing Aphria Inc. APHA.
Aphria Earnings: "First, Aphria rallied yesterday ahead of tomorrow's report," he said. "I pointed this to perhaps shifting sentiment."
Aphria shares traded higher by 9.2% on Monday and remains Cantor Fitzgerald's "top pick" among Canadian LPs.
MSO Breakouts: "Second, there is a lot of interest being generated by technical breakouts in the U.S. by MSOs (multi-state operators)," Brochstein said.
The share prices of Green Thumb Industries Inc. GTBIF, Trulieve Cannabis Corp. TCNNF and Curaleaf Holdings Inc. CURLF also spiked.
"GTI, Trulieve and Curaleaf have all posted 52-week highs, while Cresco has moved to a new high since before the March sell-off."
Chicago-based Cresco Labs reached a high of $5.12 per share on Tuesday. GTI reached a 52-week high of $13.67 while Trulieve reached $16.75.
Curaleaf's 52-week high was $8.50 on Tuesday afternoon.
The U.S. cannabis market is expected to grow from $12 billion in 2019 to $31 billion by 2024, according to analysts. The Canadian cannabis market will likely expand from $1.6 billion in 2019 to $6.2 billion by 2024.
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