The world’s biggest cannabis stock dropped 50pc and local pot stocks are struggling

The world’s most valuable cannabis stock Tilray has lost almost all the big gains it made last week — and despite a stellar pot stock debut on Friday, Australia’s cannabis stocks are also struggling.

It was a swift fall from grace for NASDAQ-listed Tilray (TLRY).

Shares in the high-flying Canadian cannabis producer have crashed 58 per cent since topping out at $US300 on Thursday.

They now trade at $US123 apiece — still up more than 600 per cent from their July initial public offering price of $US17.

Investor interest in the cannabis space reached a fever pitch this week as Tilray shares soared as much as 93 per cent Thursday — the day after CEO Brendan Kennedy appeared on Jim Cramer’s “Mad Money” and laid out his company’s future growth prospects.

Kennedy told Cramer that Canada was just the tip of the iceberg for full legalisation when it came to marijuana.

“I think you’ll see the third country within 12 months of October, and that’s where the real opportunity is,” he said. “It’s not about Canada – it’s about all the countries that follow.”

Tilray’s performance helped boost Friday’s debut of Australia’s newest pot stock Althea which enjoyed a stellar ASX debut, tripling its 20c issue price.

Still, only a third of the ASX’s 29 cannabis-related stocks were in the green on Friday and over six months only six have are in the black. They are:

— Rhinomed (ASX:RNO) which has only just entered the space with a marijuana nose spray

— Bod Australia (ASX:BDA) which is selling its cannabis cosmetics overseas

— Jayex Healthcare (ASX:JHL) which is licensing its BluePoint remote dispensing terminals to medical cannabis producers

— Elixinol Global (ASX:EXL), the only pot stock on the ASX to be making serious money yet

— TPI Enterprises (ASX:TPE) which isn’t even in cannabis yet — they’re on the sidelines waiting for the market to tell them its ready

— Roto-Gro (ASX:RGI) which sells weed growing machines.

By the end of its first trading day, Althea (ASX:AGH) almost tripled its new investors’ money.

This comes after a week of highs and lows for international pot stocks.

Besides the Tilray rollercoaster, trading app Robinhood suspended Aurora Cannabis earlier in the week because it got too high after reports — since debunked — that it was doing a drinks deal with Coca Cola.

Tilray’s Kennedy has suggested industries such as alcohol and pharmaceuticals need to get involved in the marijuana space or risk being left behind.

The latest wave of cannabis sentiment got started in the middle of August after Constellation Brands — the beverage giant behind Corona beer and Svedka vodka — invested $US4 billion in producer Canopy Growth.

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There is a bright point on the horizon for Aussie pot enthusiasts: multiple cannabis companies both here and from abroad are considering listings over the next six to nine months.

And brokers are saying that revenue is now key — companies with a licence and hope are unlikely to get a foot in the door anymore.

Here’s a table of cannbabis stocks and theur recent share price performance:

Swipe or scroll to reveal table. Click headings to sort:

Additional reporting from Business Insider Australia