Wall Street’s crypto guru says pot stocks feel like bitcoin last year — so he’s shorting them


#1

KEY POINTS

  • “The prices of cannabis stocks today feel like bitcoin and ethereum did in December of last year,” says Novogratz.
  • Bitcoin was marked by double-digit gains on certain days last year, rising more than 1,000 percent to almost $20,000 in December.
  • Tilray, the Canadian pot stock captivating Wall Street, has shot up more than 50 percent in two days.

Former Goldman Sachs macro trader Michael Novogratz sees a lot in common with the cannabis craze and last year’s record-setting crypto gains. For that reason, he’s betting against it.

“The prices of cannabis stocks today feel like bitcoin and ethereum did in December of last year, ” Novogratz, a closely bitcoin evangelist, said Thursday at the Yahoo Finance All Markets Summit.

This week, as pot stock Tilray jumped 50 percent, Novogratz said he “tried real hard” and found a “cool way” to short it.

“The companies trade up to $28 billion on almost no revenue,” he said. “If I was long them, I’d sell them and if you’re a speculator, I’d get short them.”

Bitcoin, which Novogratz has been a vocal investor in, similarly shot up by double-digit percentages last year. The cryptocurrency has plummeted 66 percent since its high, according to data from CoinDesk.

Novogratz is hardly the only one betting against the cannabis craze. Data from S3 Partners show that short interest in Tilray is around 3.5 million shares, up from about 2.5 million late last month.

This week was an expensive time to bet against the stock. Fees for borrowing Tilray stock, which you need to do to short it, were between 500 and 700 percent, according to S3′s managing director of predictive analytics Ihor Dusaniwsky.

Still, Novogratz is optimistic on the industry long-term and predicted the entire “cannabis business is going to grow, and it’s going to grow relatively rapidly.”

Novogratz launched his crypto merchant bank Galaxy Digital in November, a month before bitcoin hit its all-time high near $20,000. The firm took a $134 million hit in the first quarter of this year, according to its first-ever financial disclosure released in Canada after the company went public.

The former Fortress hedge fund manager told CNBC in November that bitcoin could “easily” hit $40,000 by the end of 2018. He also predicted ethereum, which was trading near $211 this week, could hit roughly $1,500.

Those two cryptocurrencies have gone the opposite direction. Bitcoin is down more than 50 percent this year after starting 2018 above $14,000. Ethereum meanwhile has dropped 83 percent from its high in January, according to CoinDesk.

source: https://www.cnbc.com/2018/09/20/michael-novogratz-pot-stocks-feel-like-bitcoin-last-year.html


#2

please you do not post this type copied news post your own views


#3

“Well I believed that this section is created for news to be brought here. Not everyone is expected to have read the recent news from other sites, that’s why I am bringing it here. And as far as I know, there have been news here too which I have read from the other sites too. Excerpt from those articles written by journalist. We are here to make everyone be informed on what is happening outside. Should I make my own news then, if have these as source of what is going on? Should I not let others know about it?”

Well, I have been telling about most of my views and opinions on the topics created for discussion. Here, we want to inform everyone about the news. So if you got some news, bring it here so we all get informed. Don’t you wanna know on of these or do you know everything happening arround us already?


#4

ok bring the news but only authentic and usefulness and not in every minute


#5

Okidoks. I fully understand. No worries. Will just bring it from time to time. Just getting excited now, with what’s going on. Hoping these news, like the market being green, will continue. It has been a long bear market. That’s why I am bringing here, well, most probably what affected such movements. Happy weekend! By the way, I am getting the news from cointelegraph and newsbtc, which I think have reputation over the news they are publishing but then again, they can mislead us sometimes. :smiley::smiley::rofl::rofl:


#6

thank you
but if you want to increase your share from bounty you write and post regularly in this forum
otherwise you will not get much leax coin


#7

Haha Lol. Good luck with that! I am reading posts in this forum too. Hopefully, there will be a section just for LEAX. Wherein we can see the development and we can communicate with the project team too. Just like what the other project I know has created. To get the community involved even after the ICO period. I honestly do not have everyday to check on every social media accounts of what I am supporting. So, I think that will be great for us, investors and supporters. But I saw there have been progress regarding the wallet. Will check more of that. :smiley::smiley:


#8

He has given the source and credits at the end of the answer, so its all right.

All this news is real and authentic. There is nothing useless about it and you would know it if you had read this news which you clearly didn’t.

If you’ll compare his posts with yours, you’ll find that most of your posts are baseless or too easy that a person who has speny even a week in this market knows about it. You are just making posts which are literally either spam or useless.

So stop judging others and work on improving yourself. That would be good for you and this forum too.

Admins will decide finally who deserves what.


#9

Your posts are actually very useful and I do enjoy them. Keep them coming buddy.

I don’t know whether should I laugh on her comments or feel bad for her understanding of useful posts :stuck_out_tongue:


#10

Haha. Sometimes we are just misunderstood and we need to understand their stand and understanding regarding the statements laid out so we can get what they are pointing out. But so much for that, we need and we want a healthy community, full support of this project and blockchain technology. I think we are on the same boat regarding that. Haha. By the way, will keep posting those news here as we do not have official news released by the platform or the team so we can make ourselves well informed but will do it one at a time. She might have got fed up with all the news. However, there really are a lot of news to share every hour or everyday.


#11

We are cool buddy. Just hoping BTC has really reached its bottom and reversed already with 6K as its more or less stable value. And currently, we are seeing green on most of the tokens and coins. I hope this is a good sign. Fingers crossed. By the way, I have shared how Novogratz compared the current cannabis craze with Bitcoin craze last year. Hoping there will be another rally and pull away to a much higher position. And wishing it will be another boom not bust.


#12

Hoping for the same here. Its time that I make some money in crypto.

Btw whenever there will be a boom, a bust will follow, so we need to learn to sell at right time too. I have missed that opportunity to sell at top many times and I don’t intend to repeat.


#13

So its a warning for the holders to sell of thier stacks before same bear trean take the profits


#14

Nah, its not a warning. Its the nature of any market. For example, if nay new coin gets listed on binance, it jumps 200-800% in a day. Now the good move is to sell and book profits because price is going to come down in a day or two and if you don’t sell, you lose that profit.

After selling, you can buy it back when price falls.


#15

yeah, i mean like it, its a sign to sell and after the price corrected, just buy again with profit you earn at this pricr


#16

Of course. If the project is good, it will moon eventually but the spikes in prices are temporary when they are listed on any exchange for the first time. For example if you have 1000 coins all bought for 1$ each, when the coin will get listed on binance, it’ll go minimum 2 or even 4$ instantly. Sell all and get 4000$. In a day or two, it’ll come back and settle at a price higher than 1$ but much lower than 4$. Now you can buy more number of coins from those 4$ if you wish. Or invest in other coins but don’t hold the coins when it gets listed on big one, you’ll lose the profit which you can have easily.


#17

Yes, binance always spiking price extreamly, very good exchanger to get a quick rich if we can see future :slight_smile:


#18

There is no need to see the future. Almost every coin which reaches hard cap amd raises more than 10 million gets listed there. Their listing fee is almost 1 million $. So visit ICODrops and see which good projects are under their ICO and get into them.


#19

I think its bad move if ico project choose to pay listing fee at there, they must make binance listing by it self, like ONZ and others


#20

all big exchanges not offer free listing and all want their coin list in top exchanges
so they pay listing fees and this is not bad