Pot-Skeptic Citron Says This Marijuana Stock 'Could Double' – Investor's Business Daily

Marijuana stock Pyxus International (PYX) buzzed higher after being backed long by infamous short-seller Citron Research.

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The share price rocketed after Citron, which had questioned the performance of rival stock Cronos (CRON) and shorted Tilray (TLRY) in recent weeks, said Pyxus stock is up to snuff.

“$PYX would not short … speculative long. Real management and tight float,” Citron said in a tweet. “The stock could double from here as long as investors are Cannabis crazy. Our favorite hire … and it wasn’t last week.”

The last sentence tweet referred to the hiring of Bryan Mazur, a former executive vice president at Dr Pepper Snapple Group. Cannabis-infused beverages are seen as a big opportunity, with Coca-Cola (KO) admitting it is watching the space closely.

Pyxus shares rose 4.1% to 41.69 on the stock market today. Recent marijuana IPO Tilray stock fell 3.55%. Canopy Growth (CGC) dipped 1.5%, while Cronos stock lost 5.7%.

Despite being backed by short-seller Citron, many other investors are betting against it. Short interest in the stock as a percentage of float has jumped above 18%, according to Markit. This compares with less than 5% in June.

Marijuana Stock Pyxus Has ‘Material Upside’

But Citron, which is led by activist investor Andrew Left, gave a more detailed explanation of its position in a research note.

It said Pyxus is the only U.S.-listed marijuana stock with a “material upside,” and that both its provincial supply agreement and its production capacity had been overlooked by the market. Citron also said the fact that it has a smaller float than Tilray is a plus point.

“In the last 12 months, CGC, TLRY and CRON have generated slightly over $100 million in combined revenue while PYX alone generated almost $2 billion,” Citron said in a research note. “Despite this large discrepancy, PYX only

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