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The Week In Cannabis: Aurora's Roller Coaster Ride, USDA's Hemp Moves, MJ's Dividend And More
Javier Hasse

In This Article:

The last full week of the year, and decade, came with relatively few developments.

We started off with some sad news, as we learned psychedelic pioneer and spiritual teacher Ram Dass, born Richard Alpert, died at 88. His work lives on in the hearts and minds of the many people he touched. For further information on Ram Dass’ life and teachings, follow this link.

The U.S. Department of Agriculture announced hemp farmers in more than 20 states will be able to apply for crop insurance under a pilot program next year, and later approved several sets of regulations presented by states and Native American tribes.

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On the markets front, shares of Aurora Cannabis Inc (NYSE: ACB) went on a bit of a roller coaster as Chief Corporate Officer Cam Battley left the company. Later in the week, rumors about Coca-Cola Co (NYSE: KO) planning to enter the CBD beverages market emerged — and were quickly shut down by Coke.

Following Battley's resignation, MKM Partners’ Bill Kirk reiterated a Sell rating on Aurora, lowering the price target from CA$3 ($2.28) to CA$2 ($1.52). “Directors selling and executives leaving give us increased confidence that profitability is not on the horizon and Aurora's 2.0 products will do little to turn the ship,” the analyst said.

The issuer of the ETFMG Alternative Harvest ETF (NYSE: MJ), the world’s largest cannabis-focused ETF, announced a $13,056,000 quarterly dividend Friday. Stockholders of record as of the close of business Dec. 30 will receive 32 cents per share on Jan. 3.

Over the course of 2019, investors in MJ received a total of more than $34.2 million in quarterly dividend payouts. The latest dividend projects an annualized return of 7.68%. This translates into a 6.93% yield after the fund’s 0.75% expense ratio is deducted.

See Also: 65 Outstanding Black And Hispanic Men Leading In Cannabis

Cannabis stocks were back in rthe ed, dragging ETFs down. Over the last five trading days, including Friday, Dec. 20:

  • The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE: HMMJ) was down 3.27%.

  • The ETFMG Alternative Harvest ETF (NYSE: MJ) lost 2.28%.

  • The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) was down 1.56%.

  • The Cannabis ETF (NYSE: THCX) tumbled 3.22%.

  • The Amplify Seymour Cannabis ETF (NYSE: CNBS) slipped 1.65%.

  • The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 0.66%.

More News From The Week

In other news, Shineco Inc (NASDAQ: TYHT), a Chinese producer of herbal medicines and products, including hemp products, announced a strategic cooperation agreement with the Wuchang Municipal Government of Heilongjiang Province.

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