The short-seller's allegations focus only on Aphria and one other small company. It has nothing to do with other cannabis stocks. Also, the negative report carries less substance than mainstream headline writers want to believe.
The biggest winners, hands down, in the Canadian cannabis supply shortage are all of the smaller, later-to-market producers. It buys them time to get to market, and it will take longer for the first wave of suppliers who are already in stores to build up the brand loyalty they were counting on.
There are still riches to be made from medical cannabis. Maryland showed it this month by smashing annual estimates for sales. And a New York company just made almost $50 million by selling its license before ever selling any actual marijuana.
It's difficult to see a stock you recently bought go down. But as those who sold during Canopy Growth's three significant declines dating back to 2015 would attest, now is not the time to lose our resolve.
The eyes of the cannabis industry continue to shift east, as Massachusetts opens its first recreational dispensaries. But a neighbor is trying to do something much bigger even without expanding beyond medical use.
The last week shaped up to be a historic one for the cannabis industry. But as impressive as last week was, this week is shaping up to be even bigger. That's because you can bank on one recurring situation that inspires the titans of industries to try and outdo each other.