at This specific point is usually not the time to invest in Tilray, former NYSE President Tom Farley told CNBC on Thursday.
“Your viewers should not trade Tilray if they are concerned about losing all their money. If they have some leftover money in their budget … go ahead, yet This specific is usually not an investment at This specific point, This specific’s a mania,” Farley said on “Power Lunch.”
Canadian medical marijuana supplier Tilray has had a wild few days. The stock rose as much as 14 percent at one point Thursday, only to give up that will gain as well as also go negative. This specific was last down 15.7 percent. On Wednesday, Tilray gave up a 0 percent one-day surge as well as also turned negative, before ending the day up 38 percent — its best day since going public in July. The moves followed Tilray’s Tuesday announcement that will the U.S. Drug Enforcement Administration approved its efforts to export a cannabinoid study drug into the United States through Canada for a clinical trial.
Farley, who is usually also a CNBC contributor, described Tilray’s wild moves as akin to a “video game,” yet said Tilray as well as also its fellow marijuana stocks wouldn’t be so volatile if there were just more of them listed.
“This specific’s actually genuinely unfortunate – one of the reasons why Tilray as well as also Canopy are trading so crazy is usually they’re the only two stocks listed here within the U.S. Some investors are restricted by their charter to only invest as well as also trade U.S. stocks. I wish there were more marijuana stocks listed within the U.S.,” he said. Canopy Growth is usually a leading medical marijuana company in Canada, which listed on the NYSE earlier in 2018.
Farley, who was NYSE president through 2014 until he was succeeded by Stacey Cunningham in May, said he was supportive of approving more marijuana companies for trading on the NYSE, yet had to rethink his approach when U.S. Attorney General Jeff Sessions, who as Farley said is usually “very against marijuana,” took office as well as also made his feelings known.
“I was very high on that will idea, as well as also when Attorney General [Eric] Holder was in office, I was willing at the NYSE to approve those marijuana-based stocks,” Farley said. “The one that will I said yes to, when I was there at the NYSE, was Canopy, because all of their operations are in Canada, so they don’t violate a federal law here within the United States.”
Companies that will want to list on the NYSE are required to be fully legal as well as also compliant within the countries in which they operate. Both Canopy as well as also Tilray fit that will criteria. If either of them were to pick up operations within the U.S., Farley said he guarantees “the Nasdaq could have a tough conversation with [Tilray], or the NYSE could have a tough conversation with Canopy.”
“In Canada, they have a whole lot of marijuana stocks that will are listed there that will wish they could be listed in America, as well as also I wish they could be listed here in America,” Farley added.
Despite those sentiments, Farley said This specific’s best for investors to steer clear of Tilray right at This specific point, until the volatility eases or more marijuana companies pick up trading on major U.S. exchanges.
Carter Worth, the Cornerstone Macro technical analyst who last week called a surge in pot stocks, told “Fast Money” on Wednesday that will Tilray has topped out for the foreseeable future.
“The high of today, does that will stand for a long time? This specific’s my hunch that will This specific does,” Worth said. “Pot stocks in general, This specific’s a long run. We have talked about that will, This specific is usually just the beginning. yet This specific particular stock on This specific particular day has all the indications of a key reversal, a bad close.”
Tilray was last trading down 15.7 percent at $180.46 per share, after hitting an all-time, intraday high of $300 on Wednesday. The stock has skyrocketed more than 680 percent since This specific began trading on the Nasdaq at $23.05 per share in July.
Tilray did not immediately respond to CNBC’s request for comment.