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Thursday, September 20, 2018

Pot stock Tilray set to open 11% higher after more wild trading overnight

Shares of Canadian pot company Tilray were set to rise at Thursday's open after the cult pot stock continued its wild trading overnight.

The stock had risen more than 11 percent in the premarket at around 7:35 a.m. ET after trading in a wide range overnight. At one point, Tilray had dropped as much as 18.5 percent in the overnight session.

Tilray shares overnight

Source: FactSet

Tilray shares have been on fire over the past two days. In that time period, the stock has shot up 56 percent. The stock was driven 38.1 percent higher on Wednesday after CEO Brendan Kennedy told CNBC's Jim Cramer that global pharmaceuticals must think about partnering cannabis producers as a "hedge" against the space. On Tuesday, the stock surged 28.9 percent after Tilray announced the Drug Enforcement Administration approved it to import marijuana to the U.S. for medical research.

Tilray's rise has not been without its bumps, however. The stock was halted five times on Wednesday as it failed to hold a more than 90 percent gain. Tilray shares even turned lower at one point before closing up 38.1 percent.

These wild price swings could also be a byproduct of the small number shares of the stock that are available for trading as well as the large number of those shares sold short. Tilray currently has 21.7 million floating shares and 19.5 percent of those are being used to bet against the company, according to FactSet data.

Still, the stock has had a meteoric rise since going public in July. Tilray — which priced its IPO at $17 per share — is up more than 1,100 percent since its IPO and nearly 500 percent over the past month.

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