Tilray (TLRY) Sell-Off Likely Just Getting Started, Stock Harder to Squeeze - GLJ Research
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Gordon Johnson of GLJ Research reiterated his Sell rating on Tilray, Inc. (NASDAQ: TLRY) and thinks the sell-off is just getting started. He said due to the size of the cannabis stock floats, he does think they can be squeezed by the Reddit Amry like GME and TSLA.
Johnson commented: "In short, we believe the “herculean” (likely) Redditt-driven rise in the cannabis stocks, particularly TLRY, is likely over. Moreover, given the size of the float in the cannabis stocks (i.e., large) vs. that of GME and TSLA (last year) when they were being squeezed (i.e., small), we don’t think the Redditt army has the ability to squeeze the cannabis stocks as much as they did GME/TSLA. Furthermore, in discussions we just had with the managers of the ETFMG Alternative Harvest ETF, we found that: (a) based on their investment mandate, no single security can comprise more than 10% of the index (as detailed in Ex. 1 below, this puts both TLRY and AHPA at risk), and (b) 100% of their selling to rebalance happens the day of the rebalancing (i.e., today’s move lower in TLRY is not due to rebalancing)."
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