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BILL PETERS – Investor’s Business Daily, 9/04/2018
Days after casting doubt on Canadian marijuana producer Cronos Group (CRON), short-seller Citron Research is now betting that rival Tilray (TLRY) is destined to fall. But Tilray stock, Cronos stock and Canopy Growth (CGC) all rallied Tuesday.
Citron, in a tweet on Tuesday, called Tilray stock”by far” the “most expensive in space.”
Tilray stock, however, only got more expensive on Tuesday. Shares soared 18% to 77.01 in the stock market today, hitting a fresh all-time high. Tilray’s market cap is at $7 billion, though the company reported just under $10 million in quarterly sales last week.
The rally on Tuesday, for Cronos, came after it announced a partnership with Boston-based Gingko Bioworks, a biotech company. Gingko, Cronos said, “will complement Cronos Group’s technologies for producing a full spectrum of cannabinoids.” Cronos has also agreed to issue stock as Gingko hits certain production milestones.
The statement also said that the use of Gingko’s technology is “expected to unlock access to potentially medically-important and valuable cannabinoids that are present only in low quantities in the plant.”
In an interview last week, Citron Research Executive Editor Andrew Left said Tilray stock was overvalued. Citron, in a separate tweet on Tuesday, said Tilray was more expensive than Canopy despite having no deal with a beverage maker.