Pyxus International Inc. (NYSE: PYX)
Shares of Pyxus ($PYX) jumped over 36.7% on Monday in response to a bullish tweet from Citron Research. The firm, a well-known stock commentary platform, tweeted that “$PYX would not short…speculative long,” and that “The stock could double from here as long as investors are Cannabis crazy.”
The tweet also spoke favorably of Pyxus’s management, mentioning their “favorite hire” Bryan Mazur as Executive Vice President, whose tenure included a 12-year tenure as an executive with Keurig Dr Pepper.
Citron Research is led by the well-known short-seller Andrew Left, whose opinion is closely followed by many eager investors and speculators alike. Earlier in August, a negative report released by Citron regarding Cronos Group, another Canadian marijuana grower, saw the companies shares plunge over 30%.
Pyxus, previously known as Alliance One, has been traditionally known as a tobacco leaf supplier to cigarette manufacturers and is only one of two public, independent tobacco leaf merchants in the world.
The company began expanding into the Cannabis business on October 2nd when Pyxus announced that its indirect subsidiary, Goldleaf Pharm, acquired a medical cannabis cultivation license in Canada. This piece of good news was followed by another announcement that another indirect subsidiary, Island Garden Inc., won approval from Health Canada to market its cannabis oil products.
Together, Pyxus expects their total growing capacity to reach a combined 1 million sq. ft within the next three years.
Pyxus shares jumped from $30.76 to $38.52 by the end of the day in response to the favorable tweet and is now up 190.72% year-to-date.
Additionally, there are a few similarities between Pyxus and other cannabis-related companies that have exploded in the past few weeks. For one, the company has a relatively low stock float, with Pyxus shares numbering at only 8.3 million.
In comparison to another marijuana grower Tilray (NASDAQ: TLRY) which saw triple-digit percentage gains in a short period, Pyxus’ stock float appears similar to the Tilray’s levels before it’s drastic upturn. The two stocks also trade on U.S. stock exchanges, making them visible to a larger pool of speculators and investors.
Earlier in August, Alliance One International (now Pyxus) announced strong fiscal first-quarter results according to PR News Wire. President and Chief Executive officer Pieter Sikkel said that “This fiscal year is off to a strong start and progressing in line with our expectations.”
He added that “We are continuing to make measured investments in industrial hemp, e-liquids and legal Canadian cannabis business lines as we build out capabilities to position them for further success in evolving regulatory and consumer environments.” These fundamentals are another reason why investors remain confident in the companies future performance.
Pyxus Inc. Company Profile
Pyxus International, Inc., an agricultural company, engages in the provision of various agricultural products, ingredients, and services to businesses and customers. It offers products in the leaf tobacco, e-liquids, industrial hemp, and cannabis industries.
The company was formerly known as Alliance One International, Inc. and changed its name to Pyxus International, Inc. in September 2018. Pyxus International, Inc. was founded in 1873 and is based in Morrisville, North Carolina. – Bloomberg
