Futu learned that tonight, Xiang Citrate tweeted thatBe bearish on the recent hot hemp stocksTilrayIt is believed that in the past period of time, many of the strong performance of marijuana stocks were bubbles and stock market crashes were imminent.
At the start of trading today, as of press time, Tilray has risen more than 40%, hitting an all-time high of $236. The share price has soared more than 1200 per cent in two months compared with the offering price of $17 a share on July 19.
Tilray shares soar in two months / Source: Futu Securities
The bearish position of the incense rafters
There is a reason for the bearishness of the rafters this time. Namaste, one of the world's largest online retailers of marijuana delivery systems, has been declared to have violated Quebec and Canadian laws and will be investigated, Agence France-Presse reported. Namaste's promotion of leisure marijuana products may be suspended, and its NamasteMD platform has also been implied that it may be illegal. Xiang rafters believe that Namaste also has a number of stock price manipulation behavior, and marijuana manufacturer Tilray will be affected by the incident.
On the other hand, Xiang rafters have been unimpressed by the frenzy of marijuana stocks, believing that the market bubble is serious and is doomed to give birth to a large number of losers. Before that,Xiang rafters have twice shorted Cronos, who is also a hemp stock company.Lower its target price to $3.50 (Cronos shares are currently around $14).
At the end of the Namaste incident report, Xiang rafters pointed out that the Securities and Exchange Commission (SEC) usually does not make superfluous comments, while just last week, SEC issued a statement on "marijuana investment and fraud", saying that "some fraudulent artists often take advantage of so-called hot industries to deceive investors by promising false high returns and low risks." Xiang rafters think that SEC means something. (editor / Shen Siyu)
Fragrant rafters' report on Namaste events / source: fragrant rafters