Why Marijuana Stock OrganiGram Holdings Tumbled by 9% on TuesdayPosted by On

What happened

Hardly a day goes by when at least one marijuana stock posts an outsized gain or a steep drop in price. One prominent example on Tuesday was Canada’s OrganiGram Holdings (NASDAQ:OGI), which closed 9% lower.

So what

That reaction comes one day after OrganiGram released its Q4 of fiscal 2020 results, which all in all weren’t particularly bad.

A marijuana bud on fire.

Image source: Getty Images.

Rather, OrganiGram on Tuesday seemed to fall victim to investor gloom that settled over marijuana stocks generally, with top names such as Aurora Cannabis and Aphria also declining. Outside of some restructuring news from Aurora, there wasn’t much in the way of material developments to drive the sector down as a whole.

Investors might also be concerned about U.S. politics. While there is optimism that the incoming Biden administration might be more accommodating to cannabis companies, it’s becoming apparent that it might — at least initially — have its hands full coping with a messy transition from the Trump era. Given their consistently money-losing ways, pot companies need all the legislative help they can get ASAP.

Now what

Marijuana stock investors know well that they have bought into a sector that is highly…

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