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.


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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