Over the past two years, the cannabis sector has seen massive volatility, even in some of the largest cap companies which are usually the most stable. From penny stocks to billion-dollar corporations, we have seen swings of over 1000% in a very short period of time. It's safe to say that volatility has defined the cannabis sector over the past few years, but are we finally seeing some sort of stability within the industry now? On the market today there are tons of companies within the cannabis sector that may “look” cheap based on their charts, or the fact that the stock is constantly touching fresh 52 week lows, but this is not necessarily a great way to find solid companies that are trading at a discount. In the current environment it takes a lot more than just finding the stocks which are downtrending or hitting fresh lows, we need to think ahead and envision what is going to bring them back up. Research the company, check out their financial position and do your due diligence to determine if its a great undervalued company or its a “value trap”.
One company that comes to mind is Tilray (TLRY). I have personally watched the rise and fall of Tilray from 20 dollars a share all the way to $300 and back down like an exciting roller coaster. I will never forget the day I was vacationing in Sicily, I would shoot my daily video about the stock market and day after day, Tilray was setting headlines going up 20%, then 40%, then another double-digit day, multiple times in a row. One night I was at dinner and I checked the market and almost choked on my food, Tilray was up another 96% and the stock hit $300 per share. I was astonished at how the market could pour that much capital into one company, and that moment in time really defined the pre-legalization hype for me. Those were exciting times, but now things are much different and after the dust settles, we are left with opportunities as well as forgotten companies that will eventually fade out or be bought out.
So now we arrive at Tilray once again, and things look a lot different. The stock has been stuck in a downtrend since its peak, yet the company has made positive developments and is looking a lot more attractive at 30 as opposed to 300.
Taking a look at Tilray, the company has managed to achieve some pretty great milestones. They are a global leader in the research, cultivation, production, and distribution of medical cannabis and cannabinoids. Tilray was the first licensed producer of medical cannabis in the world to have its facility (GMP) Good Manufacturing Practices certified in accordance with the European Medicine Agency (EMA) standards. Tilray is also an internationally diverse company with a presence in eight countries spanning across four continents, Australia and New Zealand (Tilray Australia New Zealand Pty Ltd), Canada (Tilray Canada Ltd), Germany (Tilray Deutschland GmbH), and Portugal (Tilray Portugal Unipessoal Lda). When it comes to the future Tilray is doing a lot of things right, international and global presence, focus on the medical cannabis market and focus on the CBD market through their recent acquisition of Manitoba Harvest. Tilrays stock could be poised for a swift recovery in the latter part of 2019.
All in all, with a 4.28 billion dollar market cap/$45 per share, now is the time to take a look at shares of Tilray.
To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here.
Disclosure: No position in TLRY stock.
Read more on TLRY:
- Seaport Releases Updated Estimates for Tilray (TLRY)
- Tilray Is a Great Cannabis Company, But the Stock Is Overvalued
- For Cannabis Stock Tilray (TLRY), Marijuana Oversupply Could Be a Good Thing