Analysts say the stock price of Pyxus could fluctuate as dramatically as Tilray, but they could be wrong
Marijuana stock analysts are talking about a new company this week: the Canadian grower Pysux International NYSE:PYX. They say this rising stock could be the industry’s next Tilray, an indication that its price could soon skyrocket.
Tilray Inc NASDAQ: TLRY joined the Nasdaq stock exchange in July. The listing preceded its rapid growth to a high of 856 percent in only two months of trading. It’s share price spiked over 80 percent after August 20, when it was announced the company had won one of the first 26 supply agreements for Ontario’s recreational market.
Pyxus stock is benefiting from a similar catalyst. Last week, Citron Research tweeted about the stock saying they would not short it, and predicted that it could soon double. Their prediction has nearly come to fruition with Pyxus’ price swelling over 50 percent. The tweet appears to be the only driver for the same spike it predicted.
However, Citron’s prediction was not random. It was based on Pyxus’ combination of a high short interest and a low stock float – two factors it has in common with Tilray. Analysts say this puts stocks in a position to swing dramatically based on buying and selling pressures.
Pyxus has at least one advantage over Tilray. While Tilray had never been publicly traded before its listing on the Nasdaq, Pyxus a trading history that goes back decades under its previous name, Alliance One.
The two companies also have very different businesses. While Tilray began as a grower in the Canadian medical marijuana market, Pyxus is a long-time supplier of tobacco leaf for cigarette companies and other specialty products.