Shares in North American cannabis firms were heading for new highs on Thursday, with Reddit-inspired retail investors betting they could beat the short-sellers and benefit from new legislation that is expected under U.S. President Joe Biden.
U.S.-listed Tilray and Sundial Growers, which have already doubled in value so far this week, were up 6% and 50% respectively in U.S. premarket trading, as European retail investors piled in to the rally.
Participants on the WallStreetBets forum on Reddit, which inspired a price spike in GameStop earlier this year that squeezed out Wall Street short-sellers who had bet on a price fall, have turned attention to U.S. and Canadian cannabis firms.
“The involvement of Reddit means a frenzy is the right word,” said Jasper Lawler, head of research at London Capital Group in London.
Source: Reuters
