Considering how poorly marijuana stocks have performed since the end of the first quarter of 2019, you might find what I'm about to say hard to believe. National agency Health Canada delayed the launch of high-margin derivatives (e.g., vapes, edibles, topicals, concentrates, and infused beverages) by two months.
Marijuana should be one of fastest-growing industries in North America this decade. There are currently tens of billions of dollars in cannabis sales conducted annually in the black market. Despite becoming the first industrialized country to legalize recreational cannabis, Canada and its more than a half-dozen well-known licensed producers have struggled mightily.
As of noon EDT, shares of Aurora Cannabis (NYSE: ACB) were trading 4% lower, OrganiGram Holdings (NASDAQ: OGI) was down 4.3%, and Charlotte's Web (OTC: CWBHF) was off 4%. In a veritable tic-tac-toe of bad news, three analysts in a row have cut their price targets on Charlotte's Web, a producer of hemp-derived cannabidiol (CBD) wellness products. There are few details on the reasons for the cuts in price targets.