Vancouver, BC – May 5, 2021 – Rotten Tomato Stocks – It’s officially the middle of the week, and as investors look ahead to the second half of this week’s trading it’s worth looking over the biggest cannabis stock movers for Wednesday, May 5, 2021— Winners: Tilray, Inc. (NASDAQ:TLRY) (TSX:TLRY) and The Scotts Miracle-Gro Company (NYSE:SMG); Losers: IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) and Cronos Group Inc. (NASDAQ:CRON).
Advancer: Tilray, Inc. (NASDAQ:TLRY)
Tilray, Inc. (NASDAQ:TLRY) is still savouring the victory of a job well done, having finally closed perhaps the cannabis industry’s most monumental merger to date with Aphria Inc. At the stroke of a pen, the duo formed the world’s largest cannabis company by revenue on Monday May 3, 2021—which will now move forward solely under the Tilray banner.
By Wednesday, Tilray commenced trading on the Toronto Stock Exchange also under the ticker symbol “TLRY”, which coincided with a midweek bump in share price $0.13, or roughly 0.75%.
It’s worth noting that Bloomberg is reporting a shift of what’s been called a “meme stock trading frenzy” away from a group of stocks (which included Tilray) that benefitted from a retail investor rush driven by communities such as the /r/WallStreetBets subreddit on the popular social media site Reddit.com. This same group of people have seemingly moved on towards cryptocurrency, thus leaving the future performance of Tilray back squarely in the company’s hands.
IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) shares are diving by double-digits today, having fallen more than a buck per share for a loss of 16.20% on the day. The plummeting began nearly instantaneously after the company announced the pricing of its Proposed Public Offering of Securities at $5.75 per offered share.
The price point came as a stark contrast from the post-consolidation high water mark of $10.26 that the company hit on March 3rd. Today’s $5.38 level represents a 47.5% drop in value in just over two months’ time.
The one-day slide is yet another indicator of the hard fall from grace that IMCC share value has witnessed over that duration. It’s something shareholders of the company must be getting used to by now, having witnessed at the close on the 45 trading days over that time period a whopping 27 down days, 4 neutral days, and only 14 days in the gainer category.
IMCC’s negative momentum has also taken its toll on shareholders of MYM Nutraceuticals (CSE:MYM) (OTC:MYMMF), who on April 1 received word that MYM management was proposing a merger with the downward-moving IMCC. At that point in the story, IMCC shares were worth $7.51, compared to today’s $5.38 value that’s nearly 30% lower. Further details of IMCC’s interesting valuation was covered in a previous report on Rotten Tomato Stocks.
Advancer: The Scotts Miracle-Gro Company (NYSE:SMG)
Though not directly a cannabis stock, The Scotts Miracle-Gro Company (NYSE:SMG) has long been associated with the sector due to its integral part in the cultivation side of the industry. The company opened the day with a relatively rosy earnings call, where the company announced record second quarter results, and a sales increase of 32%.
Shares of the stock exploded for a $10 gain by midday Wednesday, representing a 4.53% gain at the midway point of the week.
The market seems to be responding quite positively to the company’s latest financials, having surpassed its Q2 Earnings and Revenue Estimates. SMG came out of the quarter with quarterly earnings of $5.64 per share, beating a previous Zacks Consensus Estimate of $5.51 per share—a surprise of 2.36%.
Since the beginning of the year, SMG shares have added about 14.5% versus the S&P 500’s gain of 10.9%.
Decliner: Cronos Group Inc. (NASDAQ:CRON)
Shares of CRON fell slightly on Wednesday, slipping $0.12 for a midweek-midday loss of 1.51%. With no news accompanying the company on their timeline for at least a week, the blip can’t formally be blamed on any one action, other than general market sentiment of the day.
The company got a slight mention in a report from Argus Analyst Kristina Ruggeri, who cut her rating on tobacco giant Altria Group (NYSE:MO) from ‘Hold’ to ‘Buy’. In the report, Cronos Group is briefly mentioned due to Altria owning a 45% stake in the Canadian cannabis company, which has delivered mixed results in recent quarters.
Meanwhile, it’s been less than two weeks since Raymond James analyst Rahul Sarugaser suggested Cronos was undervalued. According to Sarugaser, the company’s upcoming quarterly release could be a turning point, citing that Cronos’ cannabinoid biosynthesis investments are about to pay off. Cronos has scheduled a Virtual 2021 Annual Meeting of Shareholders for June 25, 2021.
Article Source: Rotten Tomato Stocks
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