Tilray (NYSE:TLRY) is an American company with a license to produce cannabis in Canada.
Since completing an IPO in July, the stock has been on a wild roller coaster, going from $17 to $300 in just two months, and then back down again to $100 shortly thereafter. Even still, at the $100 mark Tilray is by far the most expensive in the space. That has some investors saying it’s a bubble — but is it?
Because cannabis has yet to become legal, the fundamentals surrounding all cannabis stocks are based on speculation and investor sentiment at this point. While some estimate that the cannabis market could be worth $146.4 billion by 2025, if and when that will happen remains a big question because the infrastructure is still being built out for this market.
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Nonetheless, most seem to agree that cannabis stocks will continue to surge until sometime after legalization day in Canada, which is October 17, 2018. Some believe positive momentum will continue until the first quarterly report post-legalization occurs; at that point the penny may drop if sales don’t come close to reflecting market caps.
Tilray is caught in the mix of this debate, the same as any other pot stock. However, it does have some characteristics that makes it especially worth watching. Read on to learn more.
While Tilray only did its IPO recently the company certainly is not new. It’s been around since 2013, making it one of the original brands in the space. As such, it has a solid foundation in infrastructure and a broad set of supply deals Continue Reading