Friday was an interesting day for CannTrust Holding to say the least. Initially, the stock was down as a result of a press release that said its auditors, KPMG, were pulling their most recent reports in light of the scandal surrounding the company and after CannTrust itself cautioned against relying on the most recent financials, including the year-end results.
It’s a move that made sense by KPMG and that, predictably, led to the stock declining to as low as $2.68 on the day. What wasn’t predictable was what happened later in the day.
Not only did CannTrust reverse those losses toward the end of the day, but it would also hit as high as $4.57 — a price not seen since early July, when the stock was in the midst of a large sell-off, which happened soon after investors learned of the illegal growing scandal.
With movement like that, you might have expected some big (positive) news from Health Canada — some major development related to the scandal that all of a sudden changed the trajectory for the company. However, that wasn’t the case.
There was no press release, nothing to indicate there was any news-related item that led to the big surge in share price. There also wasn’t some broader development in the industry or in the markets as a whole that likely led to CannTrust suddenly becoming a more attractive investment….CLICK for complete article