Sign up Australia
Proactive Investors - Run By Investors For Investors

Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in

Shares stage rip-roaring rally after company is allowed to ship drug for a study in the US; stock swung wildly before closing up over 40% for the session
cannabis plants
Tilray rallies strongly before trading halted.

Trading in Canadian cannabis company Tilray Inc (NASDAQ:TLRY) was halted twice on Wednesday in a wild session where the stock nearly doubled from the previous close at one point, whipsawed into negative ground later and then spiked in the last 15 minutes of business to finish higher.

Tilray stock soared to trade at a record US$300 per share before suspected sell-stop orders kicked in from players taking money off the table to knock the stock down to US$263.34, still up almost 70% on the day.

At that point, trading in the stock was halted for the first time.

READ: Tilray CEO encourages pharma and booze companies to enter the cannabis space; shares soar

The shares began trading some 10 minutes later and traded 64% up at US$257.73 about an hour before the close of business.

Some 40 miuntes before the close, trading was halted again and Tilray was last seen at US$224.68, up almost 45% for the session.  

When trading resumed again about 10 minutes later, Tilray dove to trade at US$151.40, under the previous closing price of US$154.98. The stock then spiked into the close, jumping over 40% in 15 minutes of trade.

Tilray shares ended on Wednesday at US$214.06, higher by US$59.08 or by 38.12%. The stock was down however by 14% in after hours trade to US$183.63.

READ: Cannabis short-sellers may be forced to cover soon as huge losses pile up, says S3 Partners

The rally in Tilray was inspired by news that the company had received approval to send a medical cannabis study drug to California.

S3 Partners analyst Ihor Dusaniwsky said Tilray is not yet a short squeeze, but it is getting close.

The blistering advance forced shorts to fork over larger amounts of funds to maintain their margins and positions in the market, analysts said.

Options activity in Tilray had exploded, with volume nearly quadruple the average daily trading volume of 40,000 contracts, a report by Reuters said.

The Canadian cannabis sector has been a battleground between those touting the market opportunity stemming from the legalization of cannabis in Canada and short sellers who believe the stocks in the market are grossly overvalued.

Tilray is  a cannabis producer based in Canada. 

Join our Crypto, Blockchain and Cannabis Telegram group here
View full TLRY profile View Profile

Tilray Inc Timeline

Related Articles

August 28 2018
Tidal Royalty provides capital to help grow licenced US cannabis firms in exchange for receiving a percentage of future top-line revenues.
October 10 2018
Management behind ICC International Cannabis Corp has a clear buy, build and sell strategy

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use