The cannabis industry currently is among the fast-paced industries whereby turning your back for a second you miss out on some next big merger or announcement. For that reason, there’s an immense excitement, especially from investors.
As like any industry, however, there’ll be successful cannabis stock investments as well as a fair share of those who’ll fail to cash the opportunities. One cannabis stock that’s looking to be on the winning side is the Canadian grower Tilray (NASDAQ: TLRY).
The Seattle-based cannabis company operates in the Canadian marijuana market. It makes a plethora of drug treatments for medical use. The products are mainly based on tetrahydrocannabinol (THC) and cannabinoid (CBD) compounds, both extracted from marijuana.
Tilray Price Overview
Tilray has been a bottle-rocket since its debut in July and has been in the spotlight in the past because of becoming the first-ever stock in Canada to go with the initial public offering way. However, the stock hasn’t received positive news recently but rather negative ones as a result of going down in such a short period.
The past five months have seen the stocks’ market cap slip by almost 25% while its valuation cut nearly in half from its initial high. The price alone this year has followed a downward trend to a current $43.88.
The most important thing at this moment is the fact that the stock has already started to show signs of recovery despite the struggle it has experienced this year.
What Keeps Tilray on the Move?
Few popular stocks have struggled this year, and Tilray hasn’t escaped that arm of shock, but if you think Tilray is down for the count, think again.
The fact that any stock could lose almost 85% of the value in less than a year may be crazy, but the stock could be breathing its last breathe of negative sentiments and start the journey up. It’s just last year that the stock reached $300, meaning that it has all it takes to be anyone’s number one choice.
For instance, the Q1 results showed some good news as the revenues topped the consensus views. Besides the sales volumes grew as did the metrics by almost 50% from last quarter.
Also, it has made several business developments to ensure a rapid revival. First up, the company expanded its strategic alliance with Novartis Division Sandoz which allows it to increase its global access to medical cannabis.
Tilray is also poised to benefit from the partnership it made with AB InBev, a non-alcohol THC as well as CBD beverages firm. From the agreement, each company is to invest about $50 million and hence a total of almost $100.
Moreover, to boost the company’s production capacity, it recently acquired Natura Naturals that has a massive cultivation center in Canada. Besides, with the increasing interest in CBD and hemp, the company also bought Manitoba Harvest, a hemp-food company to ensure it stays on top of the game.
Tilray has also added more than 15,000 kilograms to its High Park Gardens facility in Canada to bolster production capacity. Further, it’s building production capacity in Portugal to support the move more into the European market.
The main focus for Tilray at the moment is building branded consumer products with which Manitoba Harvest acquisition will significantly help.
A Good Buy?
Tilray could be down, but it’s not out yet. The stock deserves much credit with the number of deals it’s making, which would help the company become a winner and get back to shape sooner than many might be expecting.
The pot firm’s reliable management team also gives it an upper hand for a promising future as it’s full of experience. Going as per the last quarter results, it’s inevitable that Tilray will make a turnaround, and it more likely wouldn’t be too much late for most investors.
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Disclosure: We have no position in 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 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.
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…