Despite cannabis stocks being mostly in the red this week, GrowGeneration Corp (NASDAQ: GRWG) managed to close in the green, with gains of 24%. This still meant giving up some of the gains accrued between Aug. 12 and Aug. 19.
The rally started last Friday when the grow supplies company reported its second-quarter financial results, establishing a new revenue record for the tenth consecutive quarter.
GrowGeneration continued to spike on Monday after Jim Cramer interviewed CEO Darren Lampert on CNBC, describing its business model as the “most exciting” he’s seen in retail.
Following a five-day rally, GrowGeneration’s stock hit a peak of $22.30 on Wednesday, and commenced a small decline as excitement around its earnings wore off and some investors looked to take profits. On Friday, shares took a dive of more than 9% after Hindenburg Research published a report arguing the “Euphoric Retail Stock Has The Brightest Management Red Flags” that analysts have “ever seen,” saying downside surpasses 70%.
In an email to Benzinga, GrowGeneration president Michael Salaman said the company will be responding to the short report soon, and encouraged investors to rely on the Aug.13 earnings release.
Read all about this story, including commentary from Alan Brochstein, founder of New Cannabis Ventures, following this link.
Among notable earnings reports this week was one out of Helix Technologies Inc. (OTC: HLIX), which posted a second-quarter revenue increase of 20% to $5.4 million, with overall gross profit of $4.7 million.
CFO Scott Ogur told Benzinga, “In a market where it seems that ‘profits’ is a 4 letter word, we are proud to buck the trend and become the first competitor in the space to post positive Adjusted EBITDA. The entire team has worked incredibly hard to maximize the ROI on every dollar spent and gone above and beyond to deliver superior value to clients and shareholders.”
Also reporting earnings were TerrAscend Corp. (CSE: TER) (OTC: TRSSF), which saw a 169% year-over-year spike in sales, Vibe Bioscience Ltd. (CSE: VIBE), Delta 9 Cannabis Inc. (TSX: DN) (OTC: VRNDF), Avicanna Inc (TSX: AVCN) (OTC: AVCNF), Curaleaf HoldingsInc. (CSE: CURA), Halo Labs Inc.(NEO: HALO) (OTCQX: AGEEF), Endexx Corp. (OTC: EDXC), and Canopy Rivers Inc. (TSX: RIV) (OTC: CNPOF). See all details on these results on Benzinga Cannabis’ Earnings Center.
ETFs were down this week. Over the five trading days of the week:
- The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 2.9%
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was down 2.7%
- The Cannabis ETF (NYSE: THCX): tumbled 2.9%.
- The Amplify Seymour Cannabis ETF (NYSE: CNBS): was flat.
- The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 0.77%.
Benzinga Cannabis’ content is now available in Spanish on El Planteo.
On Tuesday, Benzinga hosted its second Virtual Benzinga Cannabis Capital Conference, featuring speakers like NBA stars Isiah Thomas and Al Harrington, former Detroit Red Wing Darren McCarty, …