A worker examines cannabis plants at a Tilray farm.
Source: Tilray
A group of cannabis stocks jumped again on Thursday, while the Reddit trading crowd continues to crowd on behalf of the highest.
Tilray shares rose 13% in premarket trading on Thursday, after gathering about 150% this week. Aphria grew by more than 11% in extended transactions, after a 57% increase this week. Aurora Cannabis grew by almost 14% in premarket trading after a rally of almost 50% on Monday. Canopy growth increases by 1% in early trading, bringing the weekly gain to over 20%. Sundial Growers grows 50% in premarket trading after a weekly gain of 160%.
Cannabis stocks rise again on Thursday
The group of cannabis companies is attracting the attention of the same RedSit Army WallStreetBets that contributed to the short epic leak from GameStop last month. Members of social media posted messages about their profits in pot stocks and encouraged other traders to join the climb.
“Here we are! TLRY on the moon !!!”, said a post on Thursday.
“Weedstocks, the new dear WSB,” another post said on Thursday.
The movement of pot stocks could also be related to low interest rates, which measure how many shares traded by a company are used in betting against the company. GameStop and AMC Entertainment were targeted by retailers, in part because their high interest in short made the shares attractive candidates for the so-called short squeeze. Tilray’s short interest is equal to 22.5% of the shares available for trading, according to FactSet.
Certainly, some of these retail investors kept these shares from their price action in 2017 and 2018 and express their optimism about the new interest discovered from other investors.
Part of the discussion on Reddit focused on the pending merger between Tilray and Aphria. Other social media users mention the decriminalization of the factory at the federal level under the new administration.
Several analysts covering cannabis companies told CNBC that this week’s price action has little fundamental basis.
Subscribe to CNBC PRO for exclusive statistics and analysis, and live scheduling on weekdays around the world.