Specialist investors argued that retail investors, by driving money into Canadian companies, were not picking investments that would benefit from federal legalisation in the US. Shares trade on Canadian exchanges and off-exchange “pink sheets” instead. However, American companies are largely unable to list on US exchanges because cannabis remains illegal at a federal level. The top five shares traded on Robinhood the day after the election were all cannabinoid companies.Ĭanadian cannabis operators are able to list on US exchanges because they operate legally in Canada. This herd behaviour is unusual in the way that investors move into one asset category and out of another extremely quickly, Patel said.Ĭannabis bulls point to the favourable path of US policy: flows into cannabis shares have grown since the US election, when legalisation passed in many state ballots. “Then you see the flows, the money and finally the price action happens.” “You see a certain amount of names gaining traction on Reddit r/WallStreetBets, Twitter and StockTwits well in advance of the big move, the hype is created and there’s a network effect,” said Viraj Patel, senior strategist at Vanda Research. But it is still about 83 per cent higher for the week. Its share price rose from just above $1 on Monday to with spitting distance of $4 on Thursday, before tumbling to $2 by Friday. Following its initial public offering in 2018, the price briefly rocketed to $300 a share thanks to a so-called short squeeze - where investors pile into a stock that has been subject to negative bets, forcing hedge funds to reverse their positions, fuelling the rally.Ĭanadian cannabis producer Sundial was also among the most traded shares on the Robinhood platform on Thursday. Tilray has been the subject of retail investor attention before.

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