Cannabis stocks suffered a broad retreat in afternoon trading on Thursday, September 13 after Canada Post workers voted in favour of a strike if a deal is not reached by September 26.
The vote count was released earlier in the week but Canopy Growth (TSX: WEED) Vice President of Communications Jordan Sinclair warned that a strike could lead to users turning to the black market.
That leaves investors until next Wednesday to mull over the potential blowback from such a move. A prolonged Canada Post strike could disrupt several industries, but it may be particularly unfortunate for the fledgling cannabis market.
The Horizons Marijuana Life Sciences ETF (TSX:HMMJ) rose 5.53% on September 18 as the ETF threatened to drop below the $20 mark in the hours following the announcement. The ETF is up 48% over the past month as cannabis stocks have roared ahead of the October 17 recreational legalization date.
Should investors be worried about a potential strike throwing a wrench into the rollout?
Predicting resolutions in labour disputes is tricky, but recent history has shown prolonged stoppages to be extremely rare. If a strike were to go forward, it would be shocking to see a stoppage extend into mid-October.
The rebound in cannabis stocks suggests that this temporary slide was likely nothing more than a buy-the-dip opportunity for traders. The Horizons Marijuana ETF is still an attractive hold ahead of next month’s big date.
