The Financial Post reports in its Thursday, Feb. 11, edition that Canopy Growth
and Aurora Cannabis
rallied more than 12 per cent on Wednesday. A Reuters dispatch to the Post reports that the moves came as posts touting cannabis stocks as the next Gamestop spread throughout the popular Wallstreetbets forum on Reddit, linking it with the short squeeze that pushed shares of Gamestop up more than 1,650 per cent in January.
"I missed the Gamestop boat, but I don't think we're gunna miss this one," one user wrote.
The forum has become a must-watch for traders at financial institutions since concerted action by some of its eight million participants proved enough to force deep losses in a handful of short-selling hedge funds in January. Mirabaud sales trader Mark Taylor says: "I don't think the retail punter story goes away overnight. I am really only watching the price action and trying to make sense of it all."
Changes promised by some democrats in Congress could help give U.S. cannabis companies access to more traditional methods of banking and open the sector to new, institutional investors.
However, some analysts argue that the valuations of the companies are becoming unjustifiable.
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