The shark-like feeding frenzy surrounding cannabis stocks seems to be summed up a pair of stocks which have gyrated wildly the past few weeks despite the absence of news in both companies.
Violent gyrations in both stocks kicked off around the same time cannabis stocks such as Tilray (NASDAQ:TLRY) rallied in the last third of September to an all-time peak of $300 per share.
But New Age and DAVIDs TEA continued moving sharply, riding the wave of cannabis legalization in Canada this month.
New Age and DAVIDs TEA both spiked on September 19, exchange data compiled by Proactive Investors showed.
Volume in New Age soared to 86.8 million shares as the stock swung from a low of $3.04 to a high of $4.94. In DAVIDs TEA, the volume hit 643,700 as the stock ranged between a low of $2.87 and $3.35.
That was the same day when trading in Tilray was just as volatile.
READ: Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in
In the following days, trading in both New Age and DAVIDs TEA surged.
New Age volume hit 129.92 million shares on September 20 as the stock moved from $5.27 to $8.95. The volume slowed down to 104 million shares on September 21. DAVIDs TEA volume soared to 14.45 million shares while trading between $2.40 and $5.35 on September 21.
"In light of the recent significant increase in the price of its shares and in trading volume, DAVIDs TEA Inc wishes to confirm that it is not aware of any corporate development or other reason for the recent market activity," the company said in a statement last month.
The average daily trading volume for New Age on Tuesday, October 2, was at 10.4 million shares. The average daily volume for DAVIDs TEA is at 609,123 shares.
The heavy volume of trading has shown no sign of slowing down.
On October 2, volume in early trade for New Age has already reached 25 million shares. In the premarket, the volume jumped to 96.1 million. Volume in DAVIDs TEA was at 9 million shares in early business.
New Age, the Colorado-based organic and natural beverage company, intends to debut its portfolio of CBD-infused beverages at the upcoming North American Convenience Store show to be held at the Las Vegas Convention Center on October 7 to 10, 2018.
The company said that given the growing awareness of the potential health benefits of CBD, the New Age Health Sciences Division evaluated the data and science supporting the emerging segment. As a result of that assessment, New Age began testing a CBD-infused beverage earlier this year in its home market in Colorado.
DAVIDs TEA is a retailer of specialty tea, offering a differentiated selection of proprietary loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, accessories and food and beverages.
The global market for recreational cannabis will top $12.5 billion by 2025, according to research from New Frontier Data.
Non-psychotropic CBD is one of the most medicinal compounds in the cannabis plant, reportedly helping with everything from arthritis to epilepsy and cancer, and is seen by many as a natural remedy instead of a pharmaceutical or narcotic drug.
The 2018 US Farm Bill, which was recently passed by both the House and Senate, would likely legalize CBD for farmers across the country and allow it for sale nationally in all channels.