For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the cannabis industry. From that interview, you get to clearly see that Tilray, as one of the leading cannabis companies in the world, is on to something great.
As far as Kennedy is concerned, the cannabis industry is still in “day one”, meaning there is tremendous growth opportunity ahead. The executive noted that only two countries, Canada and Uruguay have legalized cannabis for adult-use. But he sees three to four more countries, most likely Germany, France, the UK, and Ireland, joining them in the next 12 months to 18 months.
Moreover, the executive hinted that at this point Tilray wants to focus on long-term opportunities and steady growth to creating shareholder value.
Tilray executives like Kennedy are deeply invested in the company. Tilray insiders, who are only a small group, have invested about $130 million in the company’s stock, translating to about 7.0% insider ownership.
Expanding global presence
Tilray is steadily growing its global presence as it anticipates cannabis legalization in more countries and a bigger market to serve. It recently made its first shipment of cannabis to Israel, bringing to 15 the number of countries where it exports to. Last month, Tilray made its first shipment of medical cannabis to Switzerland, which brought its export markets to 14. The shipments to Israel and Switzerland were made from the company’s facility in Portugal. The opening of the Portugal facility is one of the results of Tilray’s efforts to expand its capacity.
Tilray is also expanding its executive team as it works to better position itself to pursue the opportunities in the cannabis market. The company has created a new executive position for the chief operating officer, a role it has assigned to former Revlon Inc (NYSE:REV) executive Jon Levin.
Revlon is a respected American cosmetics and personal care company. At Revlon, Levin most recently served as the head of consumer sales for the company’s US market. Therefore, Levin brings decades of experience in sales to Tilray just as the company works to take full advantage of the market opportunity in Canada and overseas.
Tilray has also hired former Molson Coors Beverage (NYSE:TAP) executive Michael Kruteck as its new chief financial officer. Molson is a multinational beverage company and one of the world’s largest brewers. Kruteck boasts decades of experience in fields that will make him a valuable addition to Tilray’s executive team. Kruteck will replace Mark Castaneda, who transitions to an advisory role in the company.
NASDAQ:TLRY continues robust revenue growth
Tilray is not expanding its capacity and leadership team for nothing. The company’s financial results clearly justify the investment in a bigger capacity and larger executive team. Revenue rose 408.6% to $51.1 million in Q3, supported by strong sales of adult-use cannabis sales in Canada and the international sale of medicinal cannabis products. The company says it expects robust growth to continue in 2020. Tilray’s revenue has been increasing consistently over the past several quarters.
In addition to expanding capacity, Tilray is also expanding its brand portfolio to cater to a broad and diversified cannabis market both in Canada and overseas.
The future belongs to cannabis companies that have prepared for that future today. You can’t dispute that Tilray has taken the right steps to positioning itself well for the future. At current levels, NASDAQ:TLRY is going for a steep discount with tremendous upside.
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Disclosure: We have no position in NASDAQ:TLRY and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…