Cannabis stocks went on a big circular ride this week, ultimately ending up roughly where they started. I am not concerned, but I’m not especially thrilled either.
Tilray Inc. (NASDAQ:TLRY), for example, soared 150% early in the week, only to drop a harrowing 56% in the last two days.
Other Big Green stocks like Canopy Growth Corp. (NASDAQ:CGC) and Aurora Cannabis Inc. (NYSE:ACB) swung in roughly the same pattern, leaving investors with little or nothing to show for the overall experience.
What’s going on? I’m thinking the day traders who drove similar crazy moves on stocks like GameStop Corp. (NYSE:GME) hoped they could engineer something similar for the most depressed members of the cannabis group.
They don’t need to waste their time. These stocks aren’t heavily shorted. Robinhood and similar trading platforms probably won’t feel the same heat here.
The real fire is in the next wave of cannabis companies, selling the technology that helps retailers obey regulations and make money in the meantime. One of them is in my IPO Edge portfolio.
Until recently, it wasn’t even open to everyday investors. You’ll have to subscribe to see it.
P.S. My recent presentation on the 2-Day Wealth Calendar can now be seen on the Global Financial Wealth TV network. Click here now to watch it.