#9 - Tilray (NASDAQ:TLRY)
Tilray (NASDAQ: TLRY) - Tilray is the second largest cannabis company in terms of market cap at approximately $16 billion dollars. Their stock has been on a meteoric rise and in their last earnings report, the first one Tilray issued as a publicly traded company, they reported that their revenues had double year-over-year. That doesn’t mean the company is profitable. And they are only expected to generate $41 million in sales for 2018 fiscal year. In fact, it reported a loss of $12.8 million in the quarter. But right now, investors are choosing to overlook that. The question is why? Like Canopy Growth, Tilray is eagerly positioning itself as a partner with major beverage companies that are looking for ways to infuse cannabis into their products. To that end, Tilray was chosen to be the supplier for Nova Scotia Liquor Corporation as well as Prince Edward Island Cannabis Management Corp. And Tilray is also making in-roads into the medical marijuana market. The company recently announced that they had received approval from the U.S. Drug Enforcement Administration to import a cannabinoid capsule to the United States for use in clinical trials. The capsule is designed to treat essential tremor, a neurological disorder.
About Tilray
Tilray, Inc engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc is headquartered in Canada.
- Current Price
- $1.41
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $2.63 (86.0% Upside)
In just a few short years, marijuana stocks have gone from being something you would, pardon the pun, have to be high to invest into something that is now being considered the next big bubble. Which is it? The market is still so very young. And while the track record of other emerging industries may provide some clues to the direction cannabis companies and stocks, will take, nobody knows for sure. That's a reason for investors to be excited and a little skeptical.
When you’re considering investing in cannabis companies, you have to pay attention to their size and scope. The market is getting crowded and as every investor knows, industries don't expand forever. Eventually, there will be a contraction and when that happens, you'll want to make sure you're invested in the major producers. These players will be able to attract the highest margins and best prices. As our list shows, right now that means retail investors in the U.S. have to look to Canada.
One final thought, no matter your political inclinations, the November elections in the United States bring ballot proposals that would legalize marijuana for medicinal and recreational to sixteen states. If you’re an investor looking to get in on the pot craze, this election may be an important barometer.
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