IGC stock rockets, but pares some gains after short-seller Citron takes aim

IGC stock rockets, but pares some gains after short-seller Citron takes aim

India Globalization Capital Inc. IGC, +51.44% known by cannabis investors as IGC, ran up 53% in midday trade Tuesday, but has pared earlier gains of as much as 62%, after famed short seller Andrew Left’s Citron Research tweeted, “This hype stock is the poster child of a cannabis bubble.” Citron said investors able to short the stock, they should consider it a “gift,” as the company has no product and is “all hype.” Citron said it has a target on the sock at “$6 fast,” which would be 56% below current levels. The stock started shooting higher last week, after the company said it entered the cannabidiol-infused energy drink market with its agreement to distribute “Nitro G.” The stock has rocketed 2,682% over the past three months, while the ETFMG Alternative Harvest ETF MJ, -1.94% has climbed 36% and the S&P 500 SPX, +0.18% has gained 7.4%.

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