Some cannabis stocks are seeing their prices surge as investors hunt for winners in the ashes of an industry shakeout that hammered share prices last year.
Shares of Tilray Inc (TLRY.O) and Canopy Growth Corp (WEED.TO) have climbed more than 20% since the start of the year, while Cronos Group Inc (CRON.TO) and Aphria Inc (APHA.TO) are up more than 10%. The ETFMG Alternative Harvest exchange-traded fund (MJ.P), which targets the global cannabis industry, is up 5.8% in that period.
A speculative “green rush” fueled by the legalization of cannabis in Canada and some U.S. states faltered last year, as investors grew worried about oversupply and whether companies could bring enough customers out of the black market. Uncertainties over U.S. regulations and revenue shortfalls further weighed on the sector.