Short sellers, or those betting stocks will fall, have steadily increased their exposure to the cannabis sector this year with short interest in the top 20 most shorted stocks climbing 78% to $1.89 billion, according to financial analytics firm S3 Partners.
The cannabis sector has hit a summer slump following a series of scandals and continued regulatory deadlock. A crop of weaker-than-expected earnings from Canadian licensed producers, the ousting of Bruce Linton from market leader Canopy Growth Corp. and a scandal involving illegal growing at CannTrust Holdings Inc. have weighed on stock prices.
Read now: One Canopy Growth co-CEO is out, and the other isn’t far behind in major shake-up at world’s largest cannabis companyCanopy Growth CGC, -4.47% WEED, -4.46% short sellers were in the red to the tune of $227 million, GW Pharma GWPH, -2.84% short sellers were down $167 million and Cronos Group CRON, -7.82% CRON, -7.65% short sellers were losing $85 million.
Hexo was in the news this week in reports that it used Snapchat SNAP, -0.71% and Twitter TWTR, -0.54% to advertise its products, testing Canada’s strict laws on cannabis advertising, which ban targeting young people and teenagers.Still, the overall weakness in the cannabis sector in July allowed short sellers to recoup more than half their prior year-to-date losses, according to S3.
Yup
The reality is weed will become cheaper and cheaper in the future.Once it legal nation wide that shit will be worth as much as corn on the cob.
There's to much dam weed at this point I'm short.