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 USD
in afternoon trading while Cronos Group (CRON) climbed 8.5% to $21.35.USD
In a tweet, Citron Research said it was focusing investing effort on US cannabis stocks, having decided that "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.
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