3 Weed Stocks Popping After Michigan Legalizes Pot

Michigan became the 10th U.S. state to legalize recreational marijuana use

Nov 7, 2018 at 1:03 PM
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Pot stocks are surging today, after Michigan on Tuesday voted to legalize recreational marijuana -- becoming the 10th U.S. state to do so -- while voters in Utah and Missouri approved measures giving access to medical marijuana in both states. Among those trading higher today are GW Pharmaceuticals PLC (NASDAQ:GWPH), New Age Beverages Corp (NASDAQ:NBEV), and Tilray Inc (NASDAQ:TLRY).

Analysts Remain Bullish on GW Pharmaceuticals Stock

GW Pharmaceuticals stock was up 4.4% at its intraday peak, last seen trading 2.1% higher at $145.71. The shares sold off sharply from their late-September high near $180, but found a foothold around $132 -- around its 320-day moving average, mid-April bull gap, and year-to-date breakeven level.

gwph stock daily price chart nov 7

Analysts remain bullish on GWPH, with seven of eight maintaining "buy" or better ratings on the stock. Plus, the average 12-month price target of $178.50 is a 22.4% premium to current trading levels.

Short Sellers Target New Age Beverages Stock

New Age Beverages stock shed 15.3% in October, before finding support at its 60-day moving average. The shares are up 3% today to trade at $4.36, set for just their second close in positive territory this month. Longer term, NBEV has more than doubled on a year-to-date basis.

nbev stock daily chart nov 7

NBEV's recent struggles have come alongside intense selling pressure from shorts. Short interest surged 13.8% in the most recent reporting period to 11.62 million shares -- the most on record -- representing more than one-third of the security's available float.

Tilray Options Bears Bet on a Quick Retreat

Tilray stock is up 5.3% at $112.52, but remains stuck below its 50-day moving average. The equity breached this recently formed trendline late last month, but remains well above Tilray's July 18 initial public offering (IPO) price of $17 per share.

tlry stock daily chart nov 7

Options traders appear to be bracing for a quick retreat for TLRY stock. The weekly 11/9 110-strike put is the equity's most active option today, and it looks like new positions are being purchased here for a volume-weighted average price of $3.50. If this is the case, breakeven for the put buyers at this Friday's close is $106.50 (strike minus premium paid).

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