Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?

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.

About NASDAQ:TLRY

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.

Bottom line

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.