Pot Stocks Flash Back to 2018 Surge as Record Gains Continue

  • Bloomberg
  • Stock Market News
Pot Stocks Flash Back to 2018 Surge as Record Gains Continue
Credit: © Reuters.

(Bloomberg) -- Pot stocks extended their record-setting rally to a fourth day Thursday as Reddit-inspired traders continued to pump up the sector to multiyear highs.

Sundial Growers (NASDAQ: SNDL ) Inc. led the pack, surging 49% premarket to add to its 161% gain over the first three trading days of the week. FSD Pharma Inc. rose 21%, Organigram Holdings Inc. added 25%, Aurora Cannabis (NYSE: ACB ) Inc. gained 13% and Tilray (NASDAQ: TLRY ) Inc. climbed 14%. The ETFMG Alternative Harvest ETF, known by its ticker MJ, rose 7.1%.

The moves are reminiscent of late 2018 when Canada was about to become the first large economy to legalize recreational marijuana use, sending cannabis stocks surging. Tilray’s three-day gain to start the week was its biggest ever, although it’s still well below the intraday high of $300 it hit in September 2018.

“As witnessed with GameStop (NYSE: GME ) and AMC, retail investors from the WallStreetBet Reddit crowd obviously have a lot of influence and power,” said Matt Hawkins (NASDAQ: HWKN ), managing partner at Entourage Effect Capital, a cannabis-only private equity firm. Hawkins said he doesn’t see as much risk to U.S.-focused cannabis companies from such activity, though some of the Canadian growers are more vulnerable.

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