3 of the top performing cannabis stocks from Q1 2021
The first quarter of 2021 was great for the cannabis sector. The industry has seen a lot of growth and the emerging sector will continue to grow as more companies go public in Canada and the US. Here are some of the best performing cannabis stocks in the first quarter.
In the first quarter, cannabis-focused ETFMG Alternative Harvest ETF posted good growth of 40%. This index is designed to measure the performance of various companies in the cannabis sector. It is also tracked as it benefits from global medical cannabis and recreational cannabis legalization initiatives.
OrganiGram Holdings: + 134%
At the end of the first quarter, the Canadian manufacturer OrganiGram Holdings ended the first quarter with an overall growth of 134%. There were two main catalysts attributed to its growth.
A key catalyst that boosted OrganiGram’s share price was the Reddit frenzy in early February – even if short interest wasn’t particularly high at the time. Retail investors were chasing the momentum of a few penny stocks. This included companies with a share price between $ 1 and $ 6, and OrganiGram is suitable for retail investors.
The second catalyst came on March 11th when OrganiGram announced it was partnering with British American Tobacco. The research and development company, which focuses on the development of derivatives such as CBD, has a 20% stake in OrganiGram.
Sundial Breeder: + 105%
Another cannabis stock with a fantastic first quarter was Sundial Growers, another Canadian producer. Sundial was another stock caught in the Reddit frenzy in late January and early February. The stock also doubles as a penny stock, which doubles its attractiveness for retail investors.
For much of the first quarter, retail investors in the WallStreetBets subreddit joined forces to buy stocks and call options in stocks with high short interest.
Sundial Growers has a high percentage of shorts relative to its float. The short percentage of the float as of March 31, 2021 was 11.66%. The goal of private investors was to trigger a brief press. It’s an event that uses the stock price of a stock skyrocket or the WallStreetBets phrase “to the moon” is used.
There was a point in February when sundial stock was up over 500% since the start of the year. At the end of the first quarter, Sundial was up 105% even after the entire Reddit frenzy.
Tilray: + 153%
This stock was mentioned earlier, but it deserves another mention with overall growth of 153% at the end of the first quarter. The merger of Aphria and Tilray has played a key role in propelling both companies up.
Tilray was hit by the Reddit wave back in February. Tilray has long been one of the top selling top stocks. It has a short percentage of 17.38% with 28.49 million shares held by short sellers.
As always, these are just a few examples of a much broader market. The stocks mentioned here just had a great first quarter, and leave the rest of the year to see if other companies can replace them.