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What Are Pot Stocks Doing Pre-Market?

After all the sell-on-news hype, where will the stocks open?

Photo by Mark Finn on Unsplash

Cannabis stock investors heard one phrase more than any this week: buy on rumors, sell on news. Now the Canadian legalization dust settled, let’s take a look at the majors in pre-market trading.

Buying opportunities?

Savvy investors built up their cannabis stock positions in the months leading up to October 17th. Many of them either sold on hype at all-time highs or are sitting pretty with their positions. The market sentiment predicted a sell-off upon legalization in Canada and warned of rocky markets thereafter.

Here we are on October 17th, and while discussions focus on who made the first online purchase, we turn to markets.

If pot stocks plunge as predicted, there may be a buying opportunity.

After and pre-markets

So, what did the major inter-listed stocks do overnight, and where are they trading pre-market?

Canopy Growth Corp.

Canopy Growth Corp. closed at $53.01 on Nasdaq (NSDQ: CGC) and at $68.70 on the Toronto Stock Exchange (TSX: WEED). The U.S. stock is down only slightly in pre-market trading at 51.33 after reaching an after-hours low of $50.53. The Canadian listing looks to open down to $67 with an hour to go before the open.

Tilray Inc.

Tilray (NYSE: TLRY) closed at $158.38 yesterday in the U.S. and reached a pre-market low of $145.50 after trading up to $162.40. It has settled down to around $150.85 which would be a drop of close to 5% for the stock.

Aurora Cannabis Inc.

Aurora Cannabis Inc. closed at $10.81 on Nasdaq OTC (NSDQ: ACBFF) and at $13.98 on the Toronto Stock Exchange (TSX: ACB). The U.S. stock is down in pre-market trading to $10.70 but on a low volume trade of 64 shares. The premarket high actually had Aurora up 10 cents to $10.90. On the TSX, the stock looks to open around $13.80 with an hour to go.

Aphria Inc.

Aphria Inc. closed at $14.43 on Nasdaq OTC (NSDQ: APHQF) and at $18.69 on the Toronto Stock Exchange (TSX: APH). The U.S. stock is down in pre-market trading to $14.30 on very low volume of a whopping 10 shares. The Canadian stock, however, looks to open down around $17.78, which would be the biggest jump down of the majors if the price doesn’t firm up.

Cronos Group Inc.

Cronos Group Inc. closed at $11.52 on Nasdaq (NSDQ: CRON) and at $14.93 on the Toronto Stock Exchange (TSX: CRON). Its Nasdaq listing is down in pre-market trading to $10.87 on higher total volume with nearly 400,000 shares traded. The after-hours high was $11.41, and it hit a low of $10.75. The Canadian stock is sitting at a bid-ask of $14.36 with an hour to go.

Overall, the trading day could be a little anti-climactic. It may take a little more time to know where these stocks will land, but with some necessary consolidation left in the space, the majors may still have room to grow.

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