Several Canadian cannabis stocks fall sharply after Bloomberg headline warns of "scary down days"

    1 of 1 2 of 1

      Yesterday was not one to remember for those who've fattened their net worth with cannabis stocks.

      The share price of one of the industry kingpins, Canopy Growth Corp., fell 13.62 percent to close at $57.28.

      This dragged down its market capitalization to $13.09 billion.

      It's still well above its 52-week low of $9.83.

      Shares in Aphria Inc. plummeted even further—dropping 16.91 percent—whereas Cronos Group fell 10.29 percent and Aurora Cannabis was off 8.89 percent.

      It came after Bloomberg quoted Canadian mutual fund manager Bruce Campbell warning about "scary days" ahead for cannabis stocks.

      These shares have risen sharply in 2018 as Canada moves closer to legalizing cannabis on October 17, so the pullback has been anticipated by others for a while.

      In addition, Politico reported that Canadian workers in the cannabis industry could face lifetime bans on entering the United States, where several companies are operating.

      Under section 212 of the U.S. Immigration and Nationality Act, anyone who obtains a financial benefit trafficking in a controlled substance can be barred from crossing the border.

      “Facilitating the proliferation of the legal marijuana industry in U.S. states where it is deemed legal or Canada may affect an individual’s admissibility to the U.S.,” the executive assistant commissioner for the office of field operations for U.S. Customs and Border Protection, Todd Owen, told Politico

      Nanaimo-based Tilray, however, bucked the trend, rising 14.11 percent on the day to close at US$119.76 on the NASDAQ exchange. Its market capitalization is US$11.15 billion.

      After converting that into Canadian currency, Tilray's market capitalization is $14.5 billion. This makes it the most valuable publicly traded cannabis company in North America.