Cannabis stocks dropped sharply on Monday, with shares broadly down across US and Canadian markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 3.6% to 241.6 points on Monday. The Horizons Marijuana Life Sciences Index ETF sank 2.8% to C$18.09.

Buds

A number of cannabis stocks outperformed on Monday. 

Friday, May 31st, marked a huge day for the marijuana industry and for the near-term future of marijuana stocks. The US Food and Drug Administration held its first hearing on CBD. The hearing could lead to a decision that allows US companies to add CBD to food, drinks, and supplements under the oversight of the FDA.

Because it is only the first meeting regarding CBD, the most likely outcome is general guidelines for future hearings. But, even if a decision is not made, the slightest amount of good new that moves towards pro-CBD could push marijuana penny stocks.

One of the advantages of operating in Quebec or New Brunswick for a cannabis company is that it may be easier to obtain supply agreements with these provinces. This is because Quebec is primarily a French-speaking province, and New Brunswick is Canada’s only officially bilingual province.

French-Canadians tend to be accommodating towards one another, meaning supply agreements may be more prevalent from both Quebec and New Brunswick towards cannabis companies headquartered in these provinces. Today we have identified three cannabis stocks that are headquartered within these provinces and have secured agreements to supply the Société Québécoise du Cannabis (SQDC) with recreational cannabis.

Last month, Aurora Cannabis (TSX:ACB)(NYSE:ACB) management reiterated its guidance for a positive EBITDA beginning this current quarter ending June 30. Such an achievement could be a huge confidence booster to the marijuana investing public, which has placed astronomical valuation multiples on the growth stock. Could this noble target be achievable this quarter?

There are a lot of moving parts that require investor attention, as the company finally targets operating profitability, but a reduction in the company’s quarterly operating expense bill for a rapidly growing cannabis operation isn’t likely one of them.

When it comes to the fast-paced marijuana industry, Aurora Cannabis (NYSE:ACB) is arguably the most popular choice among investors. Following 15 acquisitions since August 2016, Aurora has built itself into a production and international powerhouse.

Stocks wilted in May. The S&P 500 plunged 6.4%, including dividends, which is a huge monthly drop that equates to an annualized loss of nearly 77%.

Last month was the market's first down month in 2019, and the worst May for stocks since 2010.

High-flying stocks were generally the hardest hit, particularly those in the cannabis space. Amid the carnage in the sector, however, there was a little-known gainer: EnWave (TSXV:ENW) (NASDAQOTH:NWVCF). Along with making all-natural dried cheese snacks, the Canada-based company licenses, manufactures, and installs equipment for dehydrating organic materials, including marijuana and hemp. 

The Canadian market for next-generation cannabis products is worth an estimated $2.7 billion annually, with edibles contributing more than half, according to a new report from Deloitte.

This spending once the final edible pot regulations roll out in the coming months is expected to be on top of the roughly $6-billion estimated domestic market for recreational and medical cannabis, the consultancy said Monday.

Few industries have investors seeing green quite like the marijuana industry. The Horizons Marijuana Life Sciences ETF, the very first tradable cannabis exchange-traded fund, has more than tripled the year-to-date gains of the broad-based S&P 500, which is also having quite the year. Thanks to expectations that Canada will continue to ramp-up sales, Mexico joining Canada as a legalized recreational market later this year, and U.S. cannabis sales continuing to soar, marijuana stock valuations are getting pushed higher.

A couple of big Wall Street banks recently weighed in on a basket of widely traded marijuana stocks. Analysts at Jefferies and Bank of America agreed that two of the world's largest cannabis companies are good stocks to buy right now, but they disagreed sharply about a third licensed producer.

Blindly following recommendations is a surefire way to underperform the overall market, but understanding why analysts are willing to make bold calls is almost always worth the effort. Here's why Wall Street banks think you should buy these three stocks.

In a week that can only be described as eventful, Illinois lawmakers passed a bill to legalize adult-use cannabis – which now only needs the governor’s signature; the FDA held a public hearing on the regulation of products containing CBD; and a federal appeals court