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Sundial Growers (NASDAQ:SNDL) Inc. led the pack, surging 49% premarket to add to its 161% gain over the first three trading days of the week. FSD Pharma Inc. rose 21%, Organigram Holdings Inc. added 25%, Aurora Cannabis (NYSE:ACB) Inc. gained 13% and Tilray (NASDAQ:TLRY) Inc. climbed 14%. The ETFMG Alternative Harvest ETF, known by its ticker MJ, rose 7.1%.
The moves are reminiscent of late 2018 when Canada was about to become the first large economy to legalize recreational marijuana use, sending cannabis stocks surging. Tilray’s three-day gain to start the week was its biggest ever, although it’s still well below the intraday high of $300 it hit in September 2018.
“As witnessed with GameStop (NYSE:GME) and AMC, retail investors from the WallStreetBet Reddit crowd obviously have a lot of influence and power,” said Matt Hawkins (NASDAQ:HWKN), managing partner at Entourage Effect Capital, a cannabis-only private equity firm. Hawkins said he doesn’t see as much risk to U.S.-focused cannabis companies from such activity, though some of the Canadian growers are more vulnerable.
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