Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Tilray, Fortuna Silver Mines, and Aimmune Therapeutics Jumped Today

By Dan Caplinger - Dec 20, 2018 at 4:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These stocks managed to avoid the market's broad sell-off.

The stock market's woes continued on Thursday, as the Dow Jones Industrial Average and other popular indexes fell between 1.5% and 2%. Investors continued to react negatively to yesterday's announcement from the Federal Reserve, which suggested that further interest rate increases were likely in 2019. Yet some companies managed to overcome the downward pressure in the broader market with good news that sent their shares higher. Tilray ( TLRY ), Fortuna Silver Mines ( FSM -1.14% ), and Aimmune Therapeuticals ( AIMT ) were among the best performers on the day. Here's why they did so well.

Tilray finds its partner

Shares of Tilray climbed 10% after the marijuana company announced a deal with a major consumer-goods producer. Beer giant Anheuser-Busch InBev ( BUD -1.53% ) and Tilray will work together on a research partnership focused on non-alcoholic beverages containing cannabis derivatives like cannabidiol and tetrahydrocannabinol. As positive as it is that Tilray has the Budweiser maker on its side, the deal is far less extensive than what some of its peers have accomplished, as it's limited in scope only to Canada. Decisions on commercialization of any resulting beverages will have to wait until later, but investors still are optimistic that the partnership will bear fruit in the long run.

Dried cannabis in a jar and scoop on a table.

Image source: Getty Images.

Good fortune for Fortuna

Fortuna Silver Mines saw its stock jump 11% on a strong day for precious metals miners in general. Rising bullion prices were partially responsible for the boost, as gold jumped more than $20 an ounce to $1,264 and silver climbed by about 1.5% to move above $14.75 per ounce. Like other silver mining stocks, Fortuna has been in a downward trend throughout much of 2018, but many investors in precious metals have noted that price disparities between silver and gold have climbed to their highest level in a quarter century. That could bode well for silver's prospects going forward, and Fortuna is among those miners with the most to gain from the metal's recovery.

A competitor's pain is Aimmune's gain

Finally, Aimmune Therapeutics shares finished up 15.5%. The company was the beneficiary of bad news from a key competitor, DBV Technologies, which decided to pull its application for FDA approval for its peanut allergy patch product. Regulators were nervous about quality control, prompting DBV to delay its rollout. Aimmune is working on a competing treatment called AR101 to help those who suffer from peanut allergies, and although shareholders aren't entirely comfortable with some of the findings of recent studies of the drug, they still think that bad news for DBV is potentially good news for Aimmune.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fortuna Silver Mines Inc. Stock Quote
Fortuna Silver Mines Inc.
FSM
$3.48 (-1.14%) $0.04
Aimmune Therapeutics, Inc. Stock Quote
Aimmune Therapeutics, Inc.
AIMT
Tilray Stock Quote
Tilray
TLRY
Anheuser-Busch InBev SA/NV Stock Quote
Anheuser-Busch InBev SA/NV
BUD
$57.36 (-1.53%) $0.89

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
665%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.