logo-loader
Aphria

Short-seller Andrew Left of Citron Research sounds off: take profits in Aphria, short Cronos Group

Citron Research said 'Canadian weed' has 'run too far' and would be moving into US names

dollar sign on cannabis
Shares of Aphria and Cronos jumped on Friday

Famed short-seller Andrew Left of Citron Research was taking profits in Aphria Inc (NYSE:APHA) while shorting Cronos Group (TSE: CRON) on Friday. 

Markets didn't seem fazed by the news, with shares of Aphria up 8.7% to $9.50 in afternoon trading while Cronos Group climbed 8.5% to $21.35.

In a tweet, Citron Research said it was focusing investing effort on US cannabis stocks, writing "Canadian weed" has "run too far". 

Aphria shares also saw a boost, thanks to a Bloomberg report saying that Green Growth Brands is flexible and open to negotiations about its unsolicited bid for the Canadian cannabis company. Under the deal’s current terms, Ohio-based Green Growth has offered Aphria stakeholders 1.5714 shares of Green Growth stock for each Aphria share.

CIBC focuses on handful of players 

Left pointed to a report by CIBC released earlier this month that said it expects only a handful of players to end up dominating the global cannabis market.

“We believe Canopy and Cronos are likely to be two of those winners,” the authors wrote in the report, which was titled “The Beginning Of A Global Seismic Shift.”

“We view Aphria as a manufacturing and automation expert but believe concerns about capital allocation and corporate governance could deter investors," said the report. 

Contact Katie Lewis at [email protected]

Quick facts: Aphria

Price: $8.18

Market: TSX
Market Cap: $2.05 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Highgold Mining begins trading on the Venture exchange under...

Highgold Mining (CVE: HIGH) President ad CEO Darin Green sat down with Steve Darling from Proactive Vancouver to discuss their brand new company that has just gone public. Green telling Proactive about their strong management team and their stable of properties with big upside.

36 minutes ago

2 min read