Pot Stock Shorts Smoked As Reddit Raiders Chase Prices Higher
With Gamestop stock in freefall, down a further 5% Wednesday morning to the low 47-handle, r/WallStreetBets has gravitated to cannabis stocks in recent days, squeezing the living daylights out of any hedge fund that is short pot stocks.
Cannabis firms Sundial Growers and Tilray both jumped more than 30% at the beginning of the US cash session. Other pot stocks, including Aphria Inc (+12%), Canopy Growth (+12%), Aurora Cannabis (+12%), and Organigram (+27%), saw tremendous gains at the open.
ETFMG Alternative Harvest ETF, otherwise known as the pot ETF, has nearly doubled in price in a few weeks.
Before Tilray erupted, the short interest in the stock was around a quarter, giving r/WallStreetBets a good enough reason to pile into it and pressure the “suits” who are short.
r/WallStreetBets most discussed tickers on Tuesday were Tilray (#2), Aphria (#3), and Sundial Growers (#4).
The Reddit community of daytraders has exponentially increased since the parabolic move in Gamestop. In weeks, the forum has added millions of members, now 8.8 million members.
r/WallStreetBets has also made a concerted effort to squeezed tiny biotech names (under $2 billion in market cap).
They’ve also jumped into penny stocks as our “ZH ‘Penny Stocks’ Basket” shows.
Think of r/WallStreetBets as a decentralized activist hedge fund where tiny retail traders can band together and cause significant disruptions in markets.
If you’ve missed these moves, here’s a list of other companies the Reddit forum might target (read: here).
Wed, 02/10/2021 – 10:16