The trading tail of shares in GameStop and now AMC Entertainment looks familiar to Tilray CEO Brendan Kennedy.
Back in 2018, shortly after it was announced, the Canadian potmaker's stock was caught in a wild short squeeze and rose about 1400% between July and September of that year on a daily basis.
"I've had some PTSD for the last couple of days," Kennedy said Wednesday on CNBC's "Squawk on the Street." "I remember getting five different calls from Nasdaq in one day that our stock was stopped because the card sellers were being pressured so badly."
As CEOs of GameStop and AMC are now in a similar, yet strange position to what he experienced just a few years ago, Kennedy offered a cautious perspective.
"My advice to CEOs would be that, at times like this, it is not your company and not your stock," he said. "Keep it all in perspective as these very unusual market dynamics take place."
In July 201
"I think the card sellers lost something like $ 600 million just that day, September 19, 2018, which actually pales in comparison to what I've read about GameStop," Kennedy added.
Tilray broke the record close to barely $ 150 in October 2018, but the massive stock gains did not last. The company's shares traded around $ 19 during Wednesday's session – but they had fallen in single digits during last year's coronavirus – driven market jump.
Shares in GameStop rose again on Wednesday, up more than 100%, even as some high-profile short sellers indicated that they had resigned from their positions. The video game retailer's shares are being hyped by investors in online forums on sites like Reddit, causing it to jump from about $ 6 just four months ago to around $ 330 on Wednesday. That is a gain of around 5400%.
The GameStop rally has put pressure on card sellers, who sell borrowed shares in the hope of buying them lower back in the future. They return the borrowed number of shares and put the price difference in their pocket.
AMC shares rose 235% on Wednesday to over $ 16 apiece. In November, the stock traded below $ 3 per share as the movie theater industry continued to be hit by the coronavirus pandemic.
The company revealed in an SEC filing on Monday that it had raised $ 917 million of new equity and debt since December, which is enough funding to keep the company running well into 2021.