Sundial Growers, Aphria and Tilray shares started to rise on Monday and peaked early Wednesday, but then started to lose value.
Shares of Canadian marijuana companies Sundial Growers, Aphria and Tilray soared this week as a result of a new campaign by users of the Reddit platform r / WallStreetBets sub-forum.
In all three cases, the gains started with the opening of the Eastern US stock exchanges in the early hours of Monday and peaked early Wednesday. At that peak, Sundial Growers grew 3.5 times, Aphria 1.8 times and Tilray 2.5 times, compared to opening deals on Monday.
Despite such a rapid rise, the dynamics turned around on Wednesday and the three companies merged on Wednesday and Thursday. Sundial Growers shares, for example, were 2.1 times more expensive at the time of the offer’s closing than at dawn on Monday, and Tilray’s 1.2 times. Aphria’s, in turn, were 2% below Monday’s level.
Of the three companies, only Tilray made positive news this week, securing the import and distribution of its medicinal cannabis in the UK. However, several Reddit users called to not compare the ‘boom’ to the rise of the retailer GameStop, triggered by forum members in January. In particular, they indicated that a possible federal-level legalization of marijuana in the US raises expectations of such companies’ expansion.
Remember, the US House of Representatives passed a bill last December to decriminalize cannabis, only to have that legislation disappear in the Senate, still controlled by the Republican Party. of Congress, cannabis has taken a much clearer and easier path to legalization. […] People are buying stocks now, ahead of potential growth growth, ”a netizen said on the forum.
Despite these claims, several forum members were disappointed with the campaign. For example, one of them illustrated what it would be like to take part in it with the video of a man sliding down a huge slide.
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