A worker examines cannabis plants on a Tilray farm.
Source: Tilray
A group of marijuana stocks jumped again on Thursday as Reddit trading crowds continued to pile up in high-flying names.
Shares of Tilray rose 13% in the trading market on Thursday, after rising about 150% this week. Aphria is up more than 11% in extended trading, after a 57% increase this week. Aurora Cannabis rises nearly 14% in trading on the market after a nearly 50% rally since Monday.
Canopy Growth rose 1% in early trading, bringing its weekly profit to more than 20%. Sundial Growers rose 50% in the pre-trade after a weekly profit of 160%.
Cannabis stocks rise again on Thursday
The group of cannabis companies are drawing the attention of the same WallStreetBets Reddit army that contributed to the epic short print on GameStop last month. The social media members posted messages about their profits in the pot stock and encouraged other traders to join on their way to the top.
‘Here we go! TLRY to the moon !!! ‘, one report said on Thursday.
“Weedstocks, the new WSB treasure,” another report said Thursday.
Part of the discussion on Reddit focused on the pending merger between Tilray and Aphria. Other social media users mention the decriminalization of the plant at the federal level under the new administration.
The move in pot shares may also be related to a high short-term interest rate ratio, which measures how much of a company’s traded shares are used in betting against the company. GameStop and AMC Entertainment were targeted in part by retailers because their high short interest made the stock attractive for a so-called short press. According to FactSet, Tilray’s short stake is equal to 22.5% of the shares available for trading.
Some of these retail investors have been holding these stocks since their price action in 2017 and 2018, expressing optimism about the newfound interest of other investors.
Several analysts covering the cannabis business told CNBC on Wednesday that this week’s price action has little basis in the fundamentals.
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