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Below is a brief excerpt from a complimentary research note written by our Cannabis analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more. |
Canadian Cannabis stocks continue to surge higher yesterday, powered in part by increased interest from retail traders who see significant legalization potential.
TLRY was the biggest winner, closing the day up 51%, with LONG BIAS CLVR up 40.5% and now up 105% in the past month.
CRON, ACB, APHA, and CGC gained 21%, 14%, 10% and 6%, respectively. No, this is not a GME situation. Yes, cannabis stocks are getting attention on Reddit forums (one post with over 100k upvotes said, “Weed about to make me a millionaire in 2021”).
Still, Cannabis is a growth industry, unfortunately for the Redditors that have the wrong stocks. The current line up of Canadian LP's will find it very expensive to enter the US market, and many don't have the balance sheets to play in the game.
Short interest in Tilray currently stands at around 23% of shares outstanding, compared to the 114% GME was dealing with at one point. The pending merger between Tilray and APHA also helps explain some of the optimism.
The fundamentals will ultimately win out, and the US MSO's will dominate the Canadian Cannabis companies.
