Hashish shares have taken successful since Election Day, Nov. 3.

The most recent Hifyre hashish gross sales knowledge out of Canada suggests some regarding traits within the hashish market.

The Numbers: Month-over-month, Canadian retail hashish gross sales have been up simply 4% in October and down 3% in November, Hifyre estimates.

Cantor Fitzgerald analyst Pablo Zuanic mentioned prime Canadian hashish corporations seem like shedding market share as competitors rises. In December 2019, Aurora Hashish Inc. ACB 3.29%, Aphria Inc. APHA 0.83%, OrganiGram Holdings Inc. OGI 3.33%, Tilray Inc. TLRY 5.18% and Cover Development Corp. CGC 0.14% accounted for a mixed 59% of whole Canadian market gross sales. In November, that mixed market share had dropped to simply 38%.

Aphria is having one of the best fourth quarter up to now, with gross sales in October up 14% in comparison with the earlier quarter’s run fee. Cover gross sales are additionally up 4% quarter-over-quarter up to now, whereas Organigram and Aurora’s gross sales are down 13% every.

Pricing Pressures: Maybe extra troubling for hashish producers is that Canadian flower costs have stabilized at round $5 per gram, between half and a 3rd of the value ranges at the moment seen within the US market, based on Zuanic.

“Web, large image, low costs (and low margins) and share loss make us assume our protection group might not profit as a lot as anticipated from an eventual market progress acceleration in Canada (as extra shops open, and retailers turn into extra subtle, partly on consolidation), and a struggle of attrition of types might play out (occurring now),” Zuanic mentioned.

Canadian hashish corporations are more and more needing publicity to worldwide medical markets, entry to the US market, and extra diversified product choices to keep away from “turning into much less fascinating investments.”

Zuanic’s prime two Canadian hashish inventory picks are Aphria and Organigram.