Global equities are in rally mode on this Friday before a long weekend. The Eurozone surprised with better-than-expected GDP, a welcome relief. The U.S. dollar was weaker, oil rallied and stocks recouped record highs.
Volumes in the cannabis space were nonexistent. Not surprising given the general trend of Fridays and the day before a long weekend. It is hard to gauge sentiment and price with volumes so low. However, the space had a mildly positive tone on the day mostly driven by PINKs and sub penny stocks.
Daily Positive: The recent downtick in the U.S. dollar has been a nice tailwind for international positions. For example, GW Pharma (NASDAQ: GWPH) rallied strongly today, breaking back above 78.
Daily Negative: Too many low quality companies putting out “red giant” press releases and lousy 4th quarter updates.
The public cannabis markets are significantly plagued with low quality companies. The price action has been terrible for months and many are throwing up their hands with disgust. However, there is unbelievable growth and progress happening on the private side of the industry and this is where our optimism lies.
For example, San Francisco is home to this weekend’s International Cannabis Business Conference. We are looking forward to meeting with several industry players that are attending the event. Let us know if you are coming to town. We are always looking to connect with more people in this wonderful industry.