Marijuana stocks continue burn out in afternoon trading following likely short squeeze

  • After a run that has seen some cannabis names such as Tilray (NASDAQ:TLRY) and Sundial Growers (NASDAQ:SNDL) more than double in price through the past 5 trading days ending yesterday, the sector is off today.
  • Several companies were actually up before the opening bell, then subsequently went into the red, and have continued to stay there.
  • An article today in Barron's cites Ihor Dusaniwsky, managing director at S3 Partners, a short-selling analytics firm, that a short-selling angle may be in play.
  • For example, S3 says that Tilray began the year with a short interest of about 48%, a figure that now stands around 23%.
  • The financial newspaper reported that according to Dusaniwsky, Tilray and Cronos Group (NASDAQ:CRON) saw the largest yearly decrease in short interest as a percentage of tradable shares.
  • Dusaniwsky noted that the top 20 cannabis shorts were off more than $4.3B in net-of-financing mark-to-market losses this year as of yesterday.
  • Pot stocks are lower this afternoon: Aurora Cannabis (NYSE:ACB) -21.9%; Hexo (NYSE:HEXO) -22.4%; Tilray (TLRY) -44.6%; Canopy Growth (NYSE:CGC) -22.3%; Cronos (CRON) -21.3%; OrganiGram Holdings (NASDAQ:OGI) -27.9%; AdvisorShares Pure Cannabis ETF (NYSEARCA:YOLO) -10.6%; and Global X Cannabis ETF (NASDAQ:POTX) -25.8%

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