Cannabis Stocks Do Not Trade on Earnings, Instead on Pipeline of Drugs
Cannabis and biotech stocks are not affected by the volatility in prices during earnings season and instead trade on positive data such as potential FDA approval on their pipeline of drugs.
Investors typically face a greater risk trading during earnings season, since the price of stocks, futures and options can be more volatile. While novice investors find it more exhilarating to trade stocks around earnings, the timing of their trades can be tricky.
Cannabis companies who are in the biotech sector such as GW Pharmaceuticals (GWPH) and Zynerba Pharmaceuticals (ZYNE) find their stocks often respond better in response to positive drug data, cultural and political paradigm shifts such as the passage of recreational and medicinal use on the state level than their quarterly earnings, said Jason Spatafora, co-founder of Marijuanastocks.com and a Miami-based trader and investor known as @WolfofWeedST on Twitter.
Read more at Thestreet.com