The cannabis market is volatile, but we know this. Sometimes, seemingly redundant cannabis news can cause an unexpected market reaction and vice-versa.
Today, two major cannabis companies made two not-exactly-earth-shattering announcements that yielded very different results.
CannTrust (TSX:TRST) announced a new CEO and Tilray (NASDAQ:TLRY) announced a sales license. But what did this mean for their stocks?
Cannabis News: CannTrust (TSXV:TRST)
CannTrust announced the appointment of Peter Aceto as its new CEO, effective immediately. But it seems investors are disappointed as shares are currently down 3.23%. TRST stock opened this morning at the 6-month-high which it hit on Friday—$12.95.
It didn't stay up there, though. Currently, it is at $12.28 and is continuing its steady decline that started this morning.
I would expect cannabis news announcing a new CEO to entice investors. But previous CEO Eric Paul was also the co-founder of the company, so perhaps there are sentiments attached to the falling stocks. Paul has been named Chairman of the Board, however, and will be a Special Advisor to CannTrust's management team.
So there is a silver lining after all.
>> Cannabis Penny Stocks: Canadian Cannabis Companies Open October in the Green
Cannabis News: Tilray (NASDAQ:TLRY)
Tilray went on a winning streak in the middle of September. It reached a high of $214.06 on the 19th and experienced gains of 20%–40% day-on-day.
Then last week, what went up... came down. However, the company is beginning to climb again, and it seems a pretty innocuous sales license may be the reason.
Currently, Tilray is in the green to the tune of 20%.
One of its subsidiaries, High Park Farms, announced earlier in the morning that it had received a cannabis sales license from Health Canada. High Park Farms will now sell recreational marijuana products once the Canadian adult-use market opens on October 17th.
Receiving the sales license was good cannabis news for Tilray, but it wasn't unexpected news. High Park Farms received its cultivation license in April 2018, so it was almost a rite of passage.
Who knew that even expected cannabis news would cause a market rally! That's stocks for you!
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