U.S. Investing

CANNABIS CORNER: CANNTRUST IS DONE

We’ve been talking for weeks about consolidation as the road forward for the battered Big Cannabis group. This took a major step in that direction.

CannTrust Holdings Inc., once traded under the symbol CTST, has been under the shadow of a potential delisting since March 31. That order was finalized in Toronto on April 13.

CTST had been a zombie stock for months. Losing it actually gives most of the names left on my screen room to rally.

But there’s still a lot of work to do. Watching Aurora Cannabis Inc. (NYSE:ACB) this week makes me think we’ll need to see a much bigger implosion before shareholders in other companies will get satisfaction.

Consider: CTST was halted with the stock at a lowly $0.64, having been cut in half over the trailing year. ACB is only $0.69 now.

A lot of great companies trade at low price points for a good reason. But ACB relies on the public market for capital. If it doesn’t rally fast, it’s in trouble.

We won’t cheer, but we won’t cry either. I am eager for a little sunlight in this space. If it means the second-biggest grower giving its business to better-capitalized rivals, that’s progress.

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. The Financial Times describes Ms. Kramer as “A one-woman financial investment powerhouse” and The Economist distinguishes her as “one of the best-known investors in America”. Ms. Kramer is often quoted in publications such as the Wall Street Journal, New York Post, Bloomberg, and Reuters. She is a frequent guest commentator on CNBC, CBS, Fox News and Bloomberg, providing investment insight and economic analysis. Ms. Kramer was an analyst and investment banker at Morgan Stanley and Lehman Brothers. Ms. Kramer founded and ran a long-short hedge fund and has been chief investment officer overseeing debt and equity portfolios. Since 2010, Ms. Kramer’s financial publications have provided stock analysis and investment advice to her subscribers. Her products include GameChangers, Value Authority, High Octane Trader, Triple-Digit Trader, 2-Day Trader, IPO Edge and Inner Circle. Ms. Kramer, a Certified Fraud Examiner, has also testified as an expert in investment suitability, risk management, compliance, executive compensation, and corporate governance. Ms. Kramer received her MBA from the Wharton School at the University of Pennsylvania and her BA with honors from Wellesley College. Ms. Kramer has provided testimony regarding investment policy to the U.S. Senate and is a frequent speaker on the markets, portfolio management and securities fraud and compliance. Ms. Kramer is also the author of “Ahead of the Curve” (Simon & Schuster 2007) and “The Little Book of Big Profits from Small Stocks” (Wiley 2012).