It has been a flat week for Wall Street as a whole, but Big Cannabis, led by Canopy Growth Corp. (NYSE:CGC) and Tilray Inc. (NASDAQ:TLRY), is soaring.
My favorite stock in the space, Aphria Inc. (NASDAQ:APHA), is down close to 8%. What happened? As far as I can see, it’s healthy rotation at work.
APHA made cannabis bulls a lot of money a week ago, and it remains a store of relative value in an industry where big names like Aurora Cannabis Inc. (NYSE:ACB) are down 60% year to date (YTD).
Even TLRY, which is up about 4% this week, has a lot of lost ground to make up before it can claim to be a $17 stock again. What I think we’re seeing is that fast money is moving out of APHA and into these truly battered companies.
If so, it’s actually a show of confidence. Investors who wrote TLRY off for dead early this year see potential here again. They’re willing to take a chance.
Maybe it’s only the mood lifting, but if it turns into something more, rest assured, I’ll keep you posted.