Investors in marijuana stocks may have to wait a little longer for something to cheer, as an early bounce faded Wednesday, placing the sector in danger of extending an already lengthy losing streak. The Horizons Marijuana Life Sciences exchange-traded fund
fell 4.1% in afternoon trade, after erasing an earlier gain of as much as 3.4%. The sector tracker had already tumbled 24% amid a six-session losing streak through Tuesday, which was the longest stretch of losses since the seven-day streak ending June 9, 2017. The ETFMG Alternative Harvest ETF
slumped 3.2%, after being up 3.3% at the intraday high. The ETF had dropped 22% the past six days.
The sector has had a rough time since marijuana became fully legal for adult use in Canada on Oct. 17. Among the most active pot stocks, Aurora Cannabis Inc.
seesawed back into negative territory, falling 2.5% in afternoon trades after being up as much as 6.9% then down as much as 1.7% intraday. The stock had marked its NYSE debut on Tuesday with a 12% plunge. Read more MarketWatch’s profile on Aurora Cannabis. Shares of ICC Labs Inc.
, the company Aurora said last month it was buying for the U.S. dollar equivalent of about $220.4 million, dropped 2.9%. The Vancouver-based producer and distributor of medicinal cannabinoid extracts and recreational hemp in Uruguay and medicinal cannabis in Colombia said Wednesday that advisory firms Institutional Shareholder Services Inc. and Glass Lewis & Co. both recommended ICC shareholders for in favor of the acquisition by Aurora.
Shares of Tilray Inc.
tumbled 8.0%, reversing an earlier gain of as much as 5.8%, and have now plunged 33% over the past seven sessions. Among other active stocks, Canopy Growth Corp.
dropped 5.7%, Cronos Group Inc.
shed 6.1%, Aprhia Inc.
lost 4.9%, Hexo Corp.
slipped 0.8% and New Age Beverages Corp.
slid 11%, while Supreme Cannabis Co.
gained 1.1%. Elsewhere, shares of GW Pharmaceuticals PLC
slid 4.9%, Green Organic Dutchman Holdings Ltd.
lost 4.2%, India Globalization Capital Inc.
declined 8.4% and MedMen Enterprises Inc.
gave up 4.6%. Don’t miss: Possible red flags for potential investors in IGC Shares of Corbus Pharmaecuticals Holdings Inc.
which develops drugs to treat inflammatory and fibrotic diseases by targeting the endocannabinoid system, declined 2.9%. B. Riley FBR analyst George Zavoico started coverage of the company with a buy rating and a share- price target of $22, which is 206% above current levels, citing optimism over the outlook for ongoing clinical trials. “If the trials show a significant improvement in disease symptoms, quality of life and reduction in caregiver burden, [then] we expect rapid adoption by patients who are poorly served with available therapies,” Zavoico wrote in a note to clients. Despite the sector’s long streak of losses, the Horizons ETF was up 18% the past three months and the ETFMG ETF was up 18%, while the S&P 500 index
has lost 4.7%. Check out next: MarketWatch’s comprehensive coverage of the cannabis sector, including profiles of a number of key players, in one place
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