Q: Hi, any specific reason for the recent surge in VFF? Up 65% in the last month (albeit from a very low base). I have held on to this one thinking/hoping that one day it may do well again. (Perhaps this is the catalyst it needs). Can it be picked away at over the next 6 months? Or still too speculative?
I know there was the German law that recently passed but was this enough for the surge?
Also VFF in your db is still showing it belongs to the TSX but I believe it is now listed only on the US exchange (Nasdaq?).
Cheers,
Steve
I know there was the German law that recently passed but was this enough for the surge?
Also VFF in your db is still showing it belongs to the TSX but I believe it is now listed only on the US exchange (Nasdaq?).
Cheers,
Steve
5i Research Answer:
Thank you; we will adjust our database.
The whole sector has surged. The Germany news was certainly a big catalyst, but there has also been new discussions in the US about the potential reclassification of cannabis under Federal law to Schedule III from Schedule I. VFF is now up 72% YTD. Its small size adds risk and its balance sheet is leveraged. It is also still losing money. We would still consider it too small and speculative for a strong endorsement.