Cannabis stocks go for a bumpy ride after becoming the most recent target of coordinated Reddit open market moves.

A stock market researcher issued a new report highlighting the recent changes in short selling for the cannabis space.


Keep reading to find out more cannabis highlights from the past five days.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Cannabis stocks tumble after seeing Reddit-led rally

The days of unpredictability in the cannabis stock market continued this past week as the sector received the interest of online traders.

The initial rally for leading cannabis names in senior exchanges like Canopy Growth (NASDAQ:CGC,TSX:WEED), Aphria (NASDAQ:APHA,TSX:APHA) and Tilray (NASDAQ:TLRY) ended up dissipating as confusion over US policy impact took over in the discussion surrounding the sentiment of these stocks.

A report from Markets Insider, indicated the popular Reddit forum r/wallstreetbets, in which investors discuss potential trade and market activity, saw an uptick in discussion surrounding the possible gains from betting heavily in cannabis companies. The online discussion was also fuelled by recent comments from cannabis executives surrounding the possible legalization efforts in the US market.

However, while there have been hints about the approach US President Joe Biden’s administration will take towards cannabis policy several experts have told the Investing News Network (INN) the likelihood of sweeping federal legalization is scarce.

Last Wednesday (February 10) proved to be the key day of highs for cannabis names, with many reaching year highs. But then the drops showed up. Bloomberg News reported Tilray saw a drop in value of 50 percent highlighting the volatility still present with the cannabis stock market alongside substantial drops for funds covering the cannabis space.

“I think people need to be more educated about (how) all cannabis stocks aren’t the same,” Dan Ahrens, managing director and chief operating officer at AdvisorShares, which oversees the AdvisorShares Pure Cannabis ETF (ARCA:YOLO) and the AdvisorShares Pure US Cannabis ETF (ARCA:MSOS), previously told INN about the lack of clarity present for those evaluating the cannabis stock market at times.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Short selling report warns of future squeezes

The impact of the cannabis stocks volatility period also reached the short selling market. According to S3 Analytics, a research group evaluating short selling tactics in the stock market, short interest in cannabis names grew by nearly US$2 billion in the past month as of last Wednesday.

The researchers indicated Canopy Growth was still the largest short from the cannabis names but Tilray was closing in.

“We can see that short sellers have been trimming their positions into the sector’s rally with $1.54 billion of net short covering in the sector for the year,” the report prepared by Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, said.

Dusaniwsky warned short squeezes may continue for cannabis names alongside the potential for US cannabis policy changes rises.

“With general sector sentiment very positive we should expect more general short covering as short sellers look for greener pastures elsewhere,” the report said. “But with short sellers already bloodied, full blown short squeezes in many of these stocks should not be a surprise and long shareholders will have a tailwind of buy-to-covers helping drive stock prices even higher.

Cannabis company news

  • Village Farms International (NASDAQ:VFF,TSX:VFF) confirmed to the market a full repayment completion to Emerald Health Therapeutics (TSXV:EMH,OTCQX:EMHTF) for the acquisition of producer Pure Sunfarms, for the remaining shares not owned by Village Farms.
  • Aphria announced the appointment of Denise Faltischek, the company’s chief strategy officer, as the managing director of Aphria Germany also. “We believe the European Union continues to have many robust growth opportunities for Aphria and Germany represents the most sought-after market within those countries,” Faltischek said.
  • Subversive Real Estate Acquisition REIT LP (NEO:SVX.U,OTCQX:SBVRF) informed investors it is on the way to complete its qualifying transaction as it filed preliminary prospectus for the agreed deal with InterCure (TASE:INCR), an Isreali-based cannabis company.
  • Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) reached the mark of 100 cannabis stores under its management across the US cannabis market. “Reaching 100 dispensaries nationwide is a remarkable milestone and Curaleaf is honored to be a trusted source for high-quality cannabis products and education for patients in Florida and communities across the country,” Joe Bayern, CEO of Curaleaf, said.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Numinus Wellness Inc. (“Numinus” or the “Company”) (TSXV: NUMI), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced that it will participate in two upcoming events hosted by Microdose:

  • Psychedelic Capital to be held virtually on Thursday, October 28, 2021 . Payton Nyquvest , Founder and CEO of Numinus, will present at 1:45 p.m. ET . To attend, please register here .
  • Wonderland: Miami to be held at the Adrienne Arsht Center for the Performing Arts in Miami, FL on November 8-9, 2021 . Mr. Nyquvest and Dr. Evan Lewis , Founder & Director of the Neurology Centre of Toronto , will give a presentation called Psychedelic Neurology in the Treatment of Trauma on Monday, November 8 at 4:40 p.m. ET . In addition, Sharan Sidhu , Science Officer & General Manager of Numinus, will participate in the Patent Wars panel on Tuesday, November 9 at 4:30 p.m. ET . To attend, please register here .

For more information about the events or to schedule a one-on-one meeting with Numinus‘ management, please contact KCSA Strategic Communications at NuminusIR@kcsa.com .

Keep reading... Show less

Florida’s leading cannabis company to open three new Miami dispensaries

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), the largest multi-state operator (MSO) in the United States today announced the reopening of three medical marijuana dispensaries in Miami, Florida . The locations were formerly branded as Harvest House of Cannabis.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, announced today the opening of a new Sunnyside dispensary in Tallahassee, Florida. Tallahassee is Cresco Labs’ first location in the Panhandle, 10 th in Florida and 39 th nationwide.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211026005417/en/

Keep reading... Show less

Ayurcann Holdings Corp. (CSE: AYUR) (FSE:3ZQ0) (the “ Company ” or “ Ayurcann ”) a Canadian cannabis extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, is pleased to announce that it has entered into a patient-referral agreement with The Herb Clinic (“ Clinic ”), providing Canadians guidance and access to managing discomfort with medicinal cannabis.

The Herb Clinic has over 4000 patients registered and is comprised of compassionate and knowledgeable service providers who are defined by their ability to provide exceptional patient care. They help educate and integrate cannabis into the patient’s medical treatment plans and partner with medicinal cannabis providers such as Ayurcann, to ensure their patients are getting top-quality advice with exceptional value.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, announced today its “Summer of Social Justice” nationwide initiative raised over $250,000 for social justice-focused community organizations and supported the expungement process for over 1,000 individuals with cannabis-related criminal records.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211025005254/en/

Keep reading... Show less