Pot Stocks are currently "More ridiculous than Bitcoin"!
The bubble in crypto burst a while ago, but it seems that money has just shifted to a new investment vehicle.
That's right, the same fast money that helped push bitcoin back up near $20k has likely been helping push pot stocks to nose-bleed levels.
There is one stock in particular that stands out more than the rest.
Check this chart out:
(Source: https://www.ccn.com/more-ridiculous-than-bitcoin-pot-stocks-go-parabolic-as-crypto-markets-cool/)
That is the chart of Tilray, a cannabis producer.
Much of the madness is being driven by the impending legalization of recreational marijuana in Canada on Oct. 17.
However, that doesn't stop it from being madness indeed.
Some stats about Tilray:
Tilray went public in July with a $17 stock price.
Today it went over $230 per share.
That is over a 1,300% increase in 2 months. Numbers even crypto investors wouldn't sneeze at.
It currently sports a market cap of over $22 billion, all the while only having 243 employees total.
I won't get into specifics as to how much each employee would technically be worth given those numbers, but it's in the tens of millions.
(Source: https://www.ccn.com/more-ridiculous-than-bitcoin-pot-stocks-go-parabolic-as-crypto-markets-cool/)
Apart from the impending legalization in Canada, much of the stock's rise is likely due to a short squeeze.
Citron Research has been pounding the table on Tilray for weeks now as a screaming short.
Saying that the prices don't justify the fundamentals in any shape or form.
This is their latest commentary on the price action:
“These stock prices are equivalent to bitcoin mania – although it is even more ridiculous than bitcoin. Whereas people liked Bitcoin because it was a blue sky, unregulated, difficult to mine, and had no real competition in crypto currency. Cannabis is highly regulated, can be farmed worldwide for cheap, and has many different players involved. Cannabis has more similarities to tomatoes than bitcoin (not saying we would be long either tomatoes or bitcoin).”
(Source: https://www.ccn.com/more-ridiculous-than-bitcoin-pot-stocks-go-parabolic-as-crypto-markets-cool/)
More ridiculous than bitcoin?!
You don't say...
Citron was also a big naysayer about bitcoin when it was running up in late 2017.
I don't feel bad one bit that it appears Citron is caught on the wrong side of a trade for the time being.
Though, they are likely right in my opinion, just early on their call.
These pot stocks don't justify anywhere near these valuations. They will come crashing down just like bitcoin did back in early 2018 once the euphoria wears off.
I would expect to see a similar correction in Tilray in the near future.
If you can short Tilray in your brokerage account at these levels, do it.
Stay informed my friends.
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Follow me: @jrcornel
Smoke Smoke Smoke.or is it Edibles Edibles Edibles?
Not sure, but short those things. They are way too HIGH right now... See what I did there?!
Give it another year or so as the next wave of states decriminalize! Soon enough it will pop, don't forget to buy the dip! (not investing advice.. lol)
Talking about pot stocks or bitcoin?
They sure are! I just got in somewhat recently and have been playing the small dips and making huge gains.
Nice work. Just be ready to take profits quickly. It is a bubble that is waiting to be popped.
waw good
Panic covering this morning pre-market. Show is likely close to over for now. Of courses since retail Joe is just finding out about this they will buy at the highs....per usual $TLRY
Yep. Usually when the media starts talking about it, it is very near the top. Media talks, time to fade.
Financial Media is the original fake news for sure
I'm not sure about fake news, but usually by the time they wind of something to the point it makes the news. The move is likely about over. Which also happens to be the time retail starts buying in.
Yeah I agree. Nothing special as it will become a Commodity just like tomatoes . Maybe it should be traded in Futures exchange
Haha perhaps it should be. In that case it would be under the jurisdiction of the CFTC.
Hi check out this article
"Ex SpaceX Engineer Launched Cryptocurrency Exchange LXDX."
https://steemit.com/bitcoin/@altcoin-alerts/ex-spacex-engineer-launched-cryptocurrency-exchange-lxdx
This made me laugh, maybe these pot smokers got too used to smoking their own crap back in Dec 2017. people never learn, tis will retrace like every other market. Bitcoin was no exception to this and this will be no different. be hard for these to call the top though, as they are probably too high themselves to start with.
The Tilray Bubble burst... dropped from $300 down to $100...and will probably fall back to $17 ... this week Canopy Growth and all the rest will also crash...
I saw that. Were you able to short it?
No ...I was left holding 50 shares while I was away from my computer.... now at a $5,000 loss ... oh well
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