Short selling Andrew Left early Friday he left his position in Canadian cannabis manufacturer Aphria Inc. and had begun to shorten Cronos Group Inc., referring to his high valuation relative to analysts' price targets.
Left's Citron Research said December .18 that it expected the Aphria shares to climb to $ 8 by the end of 2018, and in a Friday tweet, the stock had won more than 60%. In the December report, Citron said that it was expected that Aphria would receive 40% by the end of last year. Aphria
APHA, + 1
APHA, + 10.34%
share closed up 10% Friday and has achieved more than 80% since Citron made its call. Aphria said on Friday that it has transferred plant stings from four weed strings to Denmark-based Schroll Medical. Aphria will now be one of the first pot plants to produce its own pot in Europe.
Citron did not return a request for comment.
In the same tweet, Citron said it was short Cronos
CRON, + 5.74%
CRON, + 6.06%
because the stock traded 70% over seller analysis estimates. According to FactSet, there are seven analysts covering the name, with an average target price of $ 17.61. Including Friday's increase of 5.7%, Cronos trades about 55% above the average target price, according to FactSet.
See also: Green Growth Hostile Bid for Aphria Official
The Cronos share rose 60% since its announced $ 1.8 billion investment in the company of Marlboro maker Altria Group Inc.
Thursday, Altria's CEO said he expects the global cannabis market to reach $ 40 billion in 10 years without the new cannabis identification law and $ 250 billion if the pot was legal all over the world . He said the company did not plan to stop at Cronos when investing in the industry.
Cannabis shares largely achieved Friday, with Horizons Marijuana Life Sciences Index ETF
increases 2.2%, and ETFMG Alternative Harvest ETF
MJ, + 1.99%
increases 2% for the day. The world's largest pottery company, Canopy Growth Corp.
WEED, -0.81% [0.2659005] fell 0.2%, Aurora Cannabis Inc.
ACB, + 4.37%
ACB, + 4.30%
was up 4.4% and Tilray Inc.
TLRY, + 1.76%
Other cannabis news
– MedMen Enterprises Inc.