TLRY - Tilray, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
44.58
+0.40 (+0.91%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close44.18
Open44.22
Bid0.00 x 1200
Ask0.00 x 800
Day's Range43.66 - 44.79
52 Week Range20.10 - 300.00
Volume890,074
Avg. Volume1,661,980
Market Cap4.335B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-1.05
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est98.00
Trade prices are not sourced from all markets
  • HEXO, CTST, and Other Cannabis Stocks Gain as Tension Eases
    Market Realist12 hours ago

    HEXO, CTST, and Other Cannabis Stocks Gain as Tension Eases

    Aphria Stock Rises on Cultivation License in Germany(Continued from Prior Part)Cannabis stocks gainToday, the cannabis sector was making positive moves after last week was fraught with pessimism due to trade tensions. HEXO (HEXO) was up 1.3% while

  • Novartis CEO says cannabis isn't a focus despite Tilray partnership
    CNBC14 hours ago

    Novartis CEO says cannabis isn't a focus despite Tilray partnership

    Speaking with CNBC's Jim Cramer from the "Healthy Returns" conference in New York City, Novartis CEO Vas Narasimhan says cannabis is "not a focus" for the pharma company.

  • Even at These Prices, Tilray Stock Still Has Too Much Success Priced In
    InvestorPlace19 hours ago

    Even at These Prices, Tilray Stock Still Has Too Much Success Priced In

    Shares of Tilray (NASDAQ:TLRY) dropped in mid-May after the Canadian cannabis company reported first quarter numbers that didn't quite live up to expectations. Revenues topped estimates, but profits missed estimates. Despite the profit miss, all the growth trends moved in the right direction. Revenues rose big sequentially. So did cannabis sales volumes. Gross margins improved, too. Broadly, the numbers looked good, but Tilray stock still had people disappointed.Source: Shutterstock The big story for the past year is that Tilray has simply been priced for much more than just good. For context, TLRY has always been richly valued relative to peers for no reason outside of market hype. This is the pot stock that went extra parabolic during the mid-2018 cannabis craze. At one point in time, Tilray touched $300. It has since consistently retreated. Now, shares trade hands under $50. * 7 High-Yield REITs to Buy (Even When the Market Tanks) Naturally, the question following earnings is whether or not TLRY stock has finally bottomed. Ostensibly, the answer appears to be yes. The numbers missed expectations, but were pretty good. The stock dropped. But, not by much. The valuation now makes sense relative to peers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, the numbers, the price action, and the valuation all imply that Tilray stock could indeed bottom here just below $50.But, will it? I'm not sure. As such, I think this is a wait-and-see situation. TLRY has been a falling knife for some time. Reversing the course of this falling knife will take some time, too. There's no rush to buy in just yet. Tilray's Numbers Were Pretty GoodDespite the headline profit miss, Tilray's first quarter numbers were actually pretty good, and broadly much better than most observers anticipated.Both revenues and kilograms of cannabis sold rose nearly 50% quarter-over-quarter. Relative to peers Cronos (NASDAQ:CRON) and Aurora (NYSE:ACB) (both of which have reported early 2019 numbers) that near 50% sequential revenue and volume growth rate is very impressive. The growth rates at Cronos were below 20%. Over at Aurora, they were between ~20% and ~40%.To be sure, Tilray is growing from a small base, but the takeaway nonetheless remains clear. Tilray gained share in the cannabis market in early 2019. On top of that market share expansion, gross margins also improved sequentially, so Tilray importantly gained share without sacrificing margins.Overall, then, Tilray's first quarter numbers actually underscore that this company is making material progress in the potentially enormous cannabis space. From that perspective, these numbers could help Tilray bottom here. Tilray Stock Could Bottom Here, but Will It?I've shied away from Tilray stock over the past several months for one reason: valuation. Quite simply, after this stock popped all the way to $300 on hype alone, it needed to do a lot of compressing before it became even somewhat reasonably valued. On top of that, Tilray reported number in late 2018 which implied that it was growing more slowly than peers, only adding to the stock's valuation concerns.But, as stated earlier, Tilray is now growing more quickly than many of its peers. Further, the valuation is now more reasonable, as each kilogram of cannabis produced at Tilray last quarter is being valued at roughly $1.5 million, which is in-line with the valuation for Canopy (NYSE:CGC).As such, there's reason to believe that TLRY stock could bottom here. The numbers are reversing course, and the stock is finally trading at arguably reasonable valuation levels.But, while there's reason to a believe a bottom is in, I'm not convinced. CGC and TLRY now feature similar valuations. But, Canopy has a $4 billion investment on its balance sheet from Constellation Brands (NYSE:STZ). Tilray has no such investment. They have a few partnerships, but no big money investment.Thus, one should ask: does TLRY deserve a CGC-like valuation? I don't think so. But, let's see what the market says. Bottom Line on Tilray StockIt has been a long fall from $300 for TLRY stock. Certain indicators suggest that this fall could be over. But, I'm not convinced. As such, I think this is a wait-and-see situation with Tilray.As of this writing, Luke Lango was long CGC and ACB. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Even at These Prices, Tilray Stock Still Has Too Much Success Priced In appeared first on InvestorPlace.

  • Aurora Cannabis, Cronos Group, and Tilray Earnings Results Are In: Here's What They Could Mean for Canopy Growth
    Motley Fool20 hours ago

    Aurora Cannabis, Cronos Group, and Tilray Earnings Results Are In: Here's What They Could Mean for Canopy Growth

    Based on its peers' results, Canopy Growth could be in for a pretty good quarter.

  • Marijuana Stocks & ETFs: What Investors Need to Know
    Zacksyesterday

    Marijuana Stocks & ETFs: What Investors Need to Know

    Here is what investors need to know about cannabis investing and the first actively managed pot ETF.

  • Can Tilray Turn Itself Around?
    Motley Foolyesterday

    Can Tilray Turn Itself Around?

    Despite a lagging share price, the company has ambitious goals.

  • How Are TLRY, APHA, CTST, and HEXO Holding Up Today?
    Market Realistyesterday

    How Are TLRY, APHA, CTST, and HEXO Holding Up Today?

    Cannabis Stocks Fell despite Biden's Support of Legalization(Continued from Prior Part)TLRY edges lowerTilray (TLRY) continued to move lower in the first half of today with the stock declining by nearly 1.8% around noon. The company has been in the

  • Top Paid CEOs for 2018
    Investopediayesterday

    Top Paid CEOs for 2018

    Skyrocketing compensation received by Corporate America's leading chief executives continues to be a topic of heated debate, and that's nowhere more clear than in the latest list of best paid CEOs, which includes well-known names such as Tesla Inc. CEO Elon Musk, Walt Disney Co. CEO Bob Iger and Apple Inc. leader Tim Cook. The first among them was Tilray Inc. (TLRY), a Canadian company majority-owned by private equity firm Privateer Holdings. Among the biggest beneficiaries of Tilray's IPO was its CEO and President, Brendan Kennedy, who was the second-highest paid U.S. executive in 2018 among companies traded on U.S. exchanges.

  • Why Strong Q3 Numbers Make Aurora Stock Worth Buying
    InvestorPlaceyesterday

    Why Strong Q3 Numbers Make Aurora Stock Worth Buying

    Aurora Canncbabis (NYSE:ACB) stock traded higher in mid-May after the Canadian cannabis giant reported third-quarter numbers that, while short of expectations, broadly confirmed that ACB is benefiting from favorable underlying trends. Investors cheered the favorable results, and ACB stock traded slightly higher in response to the report.Context is important in this case. Many expected Aurora's third-quarter numbers to be pretty bad. There was an overwhelming amount of data which suggested that the Canadian cannabis market had flat-lined in the early parts of 2019. Consequently, expectations were low heading into the print. * 7 High-Yield REITs to Buy (Even When the Market Tanks) But Aurora didn't report bad third-quarter numbers. Instead, Aurora reported pretty good third -quarter results. Across the board, everything from revenues to volumes to margins improved sequentially, implying that while the Canadian cannabis market may have flat-lined in early 2019, Aurora did not.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's bullish for ACB stock. For a long time, Aurora stock has been the most undervalued big name Canadian pot stock. Two things have held it back. Specifically, concerns that its current leadership position in the Canadian cannabis market is slipping and the fact that the company doesn't have a big-time investment from a consumer-staples giant.The first of those concerns was addressed by the company's strong third-quarter numbers. The second concern should be addressed later this year. As a result, now seems like a good time to get bullish on ACB stock, since the relative valuation discount of Aurora Cannabis stock won't last forever. Aurora Reported Strong NumbersFrom head to toe, Aurora's third-quarter earnings report was pretty good. Despite the headline misses, every single metric rapidly moved in the right direction for Aurora. This confirms that Aurora is not only a leader in the Canadian cannabis market, but also that it's widening its lead.Its total revenues rose 21% sequentially, as its revenue from consumers surged 37% quarter-over-quarter and its medical revenue increased 8%. Meanwhile, the number of kilograms of cannabis that it produced rose nearly 100% quarter-over-quarter, while the number of kilograms it sold rose over 40%. Production cost per gram of cannabis dropped more than 25% quarter-over-quarter, and its gross margins rose four points sequentially.Across the board, Aurora's operations improved from late 2018 to early 2019. In the wake of murmurs that the Canadian cannabis market was flat during that stretch and the muted growth numbers Cronos (NASDAQ:CRON) reported not too long ago, it's clear that Aurora is accelerating its leadership position in the Canadian cannabis market.This acceleration of leadership, coupled with the large investment that the company should receive soon, pave the path for ACB stock to head way higher in 2019. Aurora Stock Can Rise MeaningfullyThe relative undervaluation of ACB stock, which won't last too long, creates a compelling opportunity for investors in 2019.The market currently values each kilogram of cannabis that Tilray (NASDAQ:TLRY) and Canopy (NYSE:CGC) sold last quarter at about $1.5 million. The market simultaneously values each kilogram of cannabis that Cronos sold last quarter at more than $4.5 million. But when it comes to Aurora, the market thinks each kilogram of cannabis sold last quarter is worth less than $1 million.The disparity has nothing to do with growth. Aurora's revenues, production capacity, and sales volumes are growing as quickly as anyone else's in the industry. It has nothing to do with size, either, as Aurora is the second-biggest player in the market behind Canopy. Nor does it have anything to do with profitability, as Aurora has one of the highest gross margins in the sector.Instead, it has everything to do with two things. First, investors question the longevity and sustainability of Aurora's current leadership position. Second, investors question how Aurora can compete with companies that have received billion-dollar investments from consumer-staples giants.The first concern was addressed by ACB's strong third-quarter numbers. The second concern will be addressed later this year. Aurora didn't receive a large investment like Canopy or Cronos, yet But, considering this company continues to expand its production footprint and leadership position, and that ACB stock trades at a huge discount to its peers, it's only a matter of time before some big consumer-staples giant steps in and pours in a few billion dollars.Once that happens, there will be no reason for ACB stock to trade at a lower valuation than other major marijuana stocks. The discrepancy will go away, and as it does, Aurora Cannabis stock will fly higher. The Bottom Line on ACB StockAurora's third-quarter numbers were actually much better than most expected, and imply that Aurora is extending its leadership position in the Canadian cannabis market. The longer its position in the market improves, the higher the odds that the company will receive a huge investment from a consumer-staples giant. The higher those odds go, the higher ACB stock will go.As of this writing, Luke Lango was long ACB and CGC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Why Strong Q3 Numbers Make Aurora Stock Worth Buying appeared first on InvestorPlace.

  • Barrons.com2 days ago

    Canadians Are Using Marijuana More and Drinking Beer Less, Survey Says

    Cowen and Co. report notes that recreational use of the drug Canada is surging, and the rise of pot is a headwind to beer sales.

  • 3 Ways to Buy Into the Marijuana Boom Without the Risk
    InvestorPlace2 days ago

    3 Ways to Buy Into the Marijuana Boom Without the Risk

    [Editor's note: This story was previously published in April 2019. It has since been updated and republished.]Marijuana stocks are all the rage these days as legalized cannabis has hit the scene. Analysts now project that the market for both medical and recreational cannabis use will reach a staggering $200 billion in global sales in just five years. As a result, stocks in the sector have surged on the wave of optimism.The problem is, marijuana stocks aren't exactly a slam dunk.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMany are fraught with some big-time risks, hefty volatility, zero profits, etc. At this point, many marijuana stocks are just speculative bets. They could pay off or they could crash and burn. But one thing many of the top cannabis stocks do have is partners. Specifically, major corporate partners that are as far from speculative plays as you can get.It's here that more conservative investors can cash in on the marijuana stock mania and benefit from everything it has to offer. Sure, these stocks won't rise as much as some of the pure marijuana stocks. But, you know what? They won't fall as much either and they'll still be able to reap potential billions in revenues derived from cannabis. * 7 High-Yield REITs to Buy (Even When the Market Tanks) With that, here are the three top partners of the marijuana stocks and why they are good stocks to buy. Constellation Brands (STZ)Source: Shutterstock Seemingly overnight, Constellation Brands (NYSE:STZ) become one of the biggest marijuana stocks out there. That's thanks to its big partnership with Canopy Growth (NYSE:CGC). For a cool $4 billion, STZ purchased a 38% stake in Canopy last year. The firm now owns warrants that would allow it own a majority stake in 2021.The end game for STZ is pretty simple. Marijuana would be a perfect "fourth leg of a stool" to the company's beer, wine, and spirits operations. Constellation owns over 100 world class beverage brands including Corona beer, Svedka Vodka, and Robert Mondavi wines. These are highly regulated consumer products. The end goal is for STZ to do the same with cannabis. That is, apply its vast branding knowledge and distribution network to get various pot products into the hands of the masses.Constellation has already started working with Canopy on cannabis-infused drinks. At the same time, it's looking to parlay is vast marketing knowledge into other cannabis areas such as edibles and other consumable products. These can and will all be major sources of revenues once the switch is flipped and full legalization happens.In the meantime, STZ is no slouch with regards to what it already generates money on and its recently undergone some moves to shore up its balance sheet and pay for CGC purchase. This allows it to be a safer play than any of the marijuana stocks. Novartis (NVS)Source: Shutterstock One of the main reasons why marijuana stocks have surged so far has been the growing use of medical marijuana and cannabis treatments. Demand in that area has already begun to surge, and it could grow further as doctors look for alternatives to addictive opioids for pain relief.International drug giant Novartis (NYSE:NVS) saw the writing on the wall and decided that it needed to get into the cannabis game. This prompted it to partner with major grower Tilray (NASDAQ:TLRY).That partnership allows for NVS division Sandoz to develop and distribute TLRY's medical marijuana in legal jurisdictions around the world. With the deal, Tilray is able to tap into Novartis' vast distribution network and will allow TLRY to help commercialize its non-smokable/noncombustible medical cannabis products. For NVS, it's able to collect fees and revenues from sales. Moreover, the deal allows it to co-brand some products to help enhance sales further.For both partners, the deal seems like a win-win. NVS gets its hands-on fast-growing medical marijuana, while Tilray can actually sell its products to more consumers. Given how good the deal is, both firms decided to expand more on those partnerships and look into developing new cannabis-related drugs. * 7 High-Yield REITs to Buy (Even When the Market Tanks) The win for investors by choosing NVS over TLRY is that you get the backing of one of the largest drug manufacturers on the planet. Altria (MO)Source: Peyri Herrera via Flickr (Modified)Big Tobacco has been eyeballing legalized cannabis sales for what seems like decades, so it's no surprise that cigarette-king Altria (NYSE:MO) would be looking at the marijuana stocks for a partnership. That came from a $1.8 billion investment in pot grower Cronos Group (NASDAQ:CRON). MO now has a 45% stake in the firm.Traditional cigarette sales continue to fall and MO has been looking for ways to expand its portfolio and reduce potential revenue loss. This helps explain its major purchase of vaping specialist Juul Labs. Its CRON buy helps expand on that vaping tech.Speculation has already begun that Altria could fill Juul Pods with CBD once pot is legal everywhere or add it to its other vaping/e-cigarette brands. Meanwhile, MO's huge production facilities could instantly be flipped towards smokable marijuana products. The deal also allows for CRON to co-develop new products that could be sold on Altria's large network. Together, it gives Altria an instant foothold in a growing business.And that's important for the firm. Potentially, it gives Big Tobacco a way to really reduce its multi-year declines. Last quarter again, Altria managed to miss analysts' consensus sales estimates.Meanwhile, investors buying MO over other marijuana stocks getsplenty of stability, profits and a hefty 5.93% dividend yield.Disclosure: At the time of writing, Aaron Levitt did not hold a position in any of the marijuana stocks mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post 3 Ways to Buy Into the Marijuana Boom Without the Risk appeared first on InvestorPlace.

  • Why Is Tilray’s Brendan Kennedy One of the Highest Paid CEOs?
    Market Realist2 days ago

    Why Is Tilray’s Brendan Kennedy One of the Highest Paid CEOs?

    Tilray CEO Says Some Cannabis Companies Misled Investors(Continued from Prior Part)Tilray CEO’s salaryLast week, Bloomberg reported a list of the highest paid CEOs in 2018. Interestingly, Tilray’s (TLRY) CEO, Brendan Kennedy, was the second

  • Tilray Fell More after Its Earnings Last Week
    Market Realist2 days ago

    Tilray Fell More after Its Earnings Last Week

    Cannabis Stocks Experienced Extended Weakness Last Week(Continued from Prior Part)Tilray fell last weekTilray (TLRY) reported its earnings on May 14. The company reported revenues of $23 million—better than the expectation of $20.2 million. The

  • Tilray CEO Says Some Cannabis Companies Misled Investors
    Market Realist2 days ago

    Tilray CEO Says Some Cannabis Companies Misled Investors

    Tilray CEO Says Some Cannabis Companies Misled InvestorsTilray’s CEO in focusLast week, Tilray’s (TLRY) CEO claimed that some cannabis companies have misled investors by inflating their capacity metrics, which could have skewed valuations

  • 3 Big-Name Pot Stocks Money Managers Dumped in the First Quarter
    Motley Fool3 days ago

    3 Big-Name Pot Stocks Money Managers Dumped in the First Quarter

    According to quarterly 13-F filings, Wall Street rang the register on these popular marijuana stocks.

  • How Did Tilray Stack Up to the Competition?
    Motley Fool3 days ago

    How Did Tilray Stack Up to the Competition?

    Here's a look at Tilray's recent performance compared with its largest competitors.

  • Marijuana Companies Lied to You, Major Pot CEO Alleges
    Motley Fool3 days ago

    Marijuana Companies Lied to You, Major Pot CEO Alleges

    Pot stocks were more concerned with supporting inflated valuations than meeting grow expectations, according to this prominent cannabis CEO.

  • TheStreet.com4 days ago

    Cannabis Stocks Fall: General Cannabis Up 3.8%; Tilray Off 4.1%

    Cannabis stocks and exchange-traded funds fell Friday. Among cannabis stocks tracked by TheStreet, two rose while nine fell. General Cannabis shares rose 6 cents, or 3.77%, to $1.65. Tilray shares fell $1.

  • Investing.com4 days ago

    3 Things Under the Radar This Week

    Investing.com - Here are three things that flew under the radar of the market this week.

  • The Cannabis Craze
    Zacks4 days ago

    The Cannabis Craze

    The "Cannabis Craze" had everyone and their brother buying up marijuana stocks. These cannabis stocks didn't have enough free-floating shares to cover the massive amount of buy interest leading them to skyrocketed at the end of 2018 far above their fair value.

  • Are These Marijuana Stocks A Good Buy Now? Look Past The Hype
    Investor's Business Daily4 days ago

    Are These Marijuana Stocks A Good Buy Now? Look Past The Hype

    Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.

  • Don’t Let the Great Q1 Numbers Fool You into Buying Tilray Stock
    InvestorPlace4 days ago

    Don’t Let the Great Q1 Numbers Fool You into Buying Tilray Stock

    After a revenue beat Tilray Inc (NASDAQ:TLRY) saw its stock jump 5% for the day. However, that optimism has faded rather quickly, and Tilray stock has not been able to capitalize on that momentum.Source: Shutterstock Unequivocally, it has been a wild ride for Tilray investors. Last fall, against a very frothy overall market and marijuana stocks going more mainstream, the stock price exceeded the $200 mark before getting cut down by three quarters, trading at less than $50 per share as of this writing. * 6 Chinese Stocks That Could Pop On a Trade Deal Still though, I remain cautious on Tilray stock. The company hit a major milestone by landing a partnership with Novartis AG (NYSE:NVS), the Swiss pharmaceutical company, late last year. That's certainly been a positive catalyst, but after all the hype, investors need to see meaningful progress toward a more profitable future.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray Stock Has a Mixed First QuarterA lot of the focus immediately after earnings was around revenues. TLRY delivered a massive 195 increase in year-over-year revenues. The legalization of marijuana use in Canada for adults last year in addition to hemp food sales from Tilray's acquisition of Manitoba Harvest were big drivers.Gross margins also saw a slight increase, but despite these positive signs, net losses for the quarter increased dramatically. Last quarter $5 million to $30 million most recently. For a growth company, it's not necessarily unexpected. Expansion costs money as companies need to lay the foundation for future endeavors, but the point is that it's naive to look only at the revenue beat and think TLRY stock is headed for the sky.Total kilogram equivalents sold did double to 3,012 kilograms, but compare that to fellow competitor Canopy Growth (NYSE:CGC) that sold 10,102 kilogram equivalents in the most recent quarter and has a higher pricing structure.TLRY is still doesn't have pricing figured out seeing as average net selling price per gram decreased over the prior year period. As the space gets more and more competitive, TLRY needs to optimize this quickly as increasing supply toward medical and consumer purposes will put pressure on prices. The trend is not going in the right direction. Tilray Stock Is OvervaluedUltimately, TLRY stock looks lofty in terms of valuation. This, of course, does not mean the stock cannot get more expensive from here, but it's not a screaming buy despite some decent first quarter numbers.Tilray's consensus forward P/E is the kind of number that makes you triple check because you don't think it can be right: 1,111x. Compare that 357x for CGC. It's a relative game with P/E ratios, so even though 357x may also sound extraordinarily rich, it goes to show that 1,111x is completely irrational.There is just so many ways for that multiple to get rerated downward, again and again. Final Note on Tilray StockThe first quarter earnings was a bit of a mixed bag. The market gave credit where it was due but no more than that, recognizing the weak points in the financials.Tilray has made progress on expansion via M&A, which may bolster future earnings, but only time will tell. There is a lot of success already built into the current valuation, meaning that TLRY can't miss a beat. As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Don't Let the Great Q1 Numbers Fool You into Buying Tilray Stock appeared first on InvestorPlace.

  • Without a Better Story, Cronos Stock May Have Further to Fall
    InvestorPlace4 days ago

    Without a Better Story, Cronos Stock May Have Further to Fall

    Marijuana stocks like Cronos (NASDAQ:CRON) look a bit creaky at the moment, and CRON stock may be Exhibit A in the case that the group is stalling out. Cronos stock has dropped by over one-third just since early March, with the near-term question whether a recent bottom can hold.Source: Shutterstock I'm skeptical it will. Valuation is a bit more reasonable than it was earlier this year, when I thought Cronos Group stock was overvalued. But CRON is hardly cheap. Analysts have turned bearish. And that bearishness seems to coincide with the core problem here.Cronos simply hasn't driven the right kind of narrative for a marijuana stock at this valuation. Looking around the sector, there are concise, obvious bull cases for most of the well-covered stocks. Outside of the nearly $2 billion in cash coming in from Altria (NYSE:MO), Cronos lacks that case. And until that changes, Cronos is likely to struggle.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Chinese Stocks That Could Pop On a Trade Deal The Need for a StoryInvesting in cannabis stocks at the moment isn't about the fundamentals. This is an industry at the very beginning of its growth. Price/earnings and even price/sales multiples are enormous and not necessarily comparable. The fundamental toolkit an investor might use to value a mature company simply doesn't apply in the sector at the moment.And so both the decision to invest in the sector at all, and which cannabis stock to choose, come down largely to long-term projections and even feel. Will the industry grow for years, as proponents argue? Is the oversupply already seen in legalized U.S. markets like Oregon a long-term risk? When does broader U.S. legalization arrive? Who of the myriad publicly traded cannabis plays wins and who loses?In that type of investing environment, a stock needs a succinct bull case, an elevator pitch so to speak. And most of the well-covered cannabis plays have that type of case. Canopy Growth (NYSE:CGC) is the early leader, and thanks to Constellation Brands (NYSE:STZ,NYSE:STZ.B) has the largest war chest. Aurora Cannabis (NYSE:ACB) is taking so many shots on goal that it's likely to score on at least one of them. Charlotte's Web (OTCMKTS:CWBHF) is the pure play on CBD (cannabidiol) oil. Even struggling Tilray (NASDAQ:TLRY) may have positioned itself to win if capacity gets overbuilt. And so on. What Is the Story Behind CRON Stock?What's the story behind CRON stock, however? The company has a ton of cash coming in, to be sure. But its production capabilities aren't particularly impressive: as The Motley Fool noted, Cronos isn't even in the top ten in terms of available capacity. Its Spinach retail brand doesn't appear as strong as those from Canopy or Hexo (NYSE:HEXO). Its positioning in the Canadian adult-use market seems behind that of many peers.Even analysts somewhat favorable to the stock aren't sure what to make of it, as James Brumley noted earlier this month. CIBC World Markets analyst John Zamparo wrote that the company hadn't given much colors on its plans for actually using that capital. Cannacord Genuity cited "a number of strategic initiatives that could eventually unlock longer-term value."Those aren't compelling points in favor of Cronos stock. Rather, they're something more akin to a "poke and hope" strategy. Cronos has a lot of cash, and the marijuana industry should grow, so the company will eventually figure something out. That kind of case might work in the middle of 2018, or the beginning of 2019, when marijuana stocks on the whole are soaring. As we've seen of late, however, it can't work forever. Cronos Group Stock Isn't CheapMeanwhile, Cronos remains priced in line with those peers who have better stories - and better growth. Cronos' Q1 report wasn't particularly impressive either fundamentally or in terms of management commentary. The company did turn a profit but only thanks to non-cash benefits, some of which related to the Altria deal. On an operating basis, Cronos continues to lose money.That's not a problem on its own: most stocks in the space are posting operating losses as they build out production, processing, and supply chain capabilities. But CRON, relative to revenue, continues to be valued roughly in line with the leaders of the space.That's not going to hold if Cronos can't prove that it will be a leader long-term. Right now, it's not making a good enough case - and until that changes, Cronos stock is going to underperform. And with marijuana stocks right now seeming to stall out, that in turn suggests that CRON is headed below $15.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post Without a Better Story, Cronos Stock May Have Further to Fall appeared first on InvestorPlace.

  • Benzinga5 days ago

    Cramer To Cannabis Investors: Be Cautious With 'Promotional' Executives

    This logic holds true in the cannabis space, where only some companies boast ample capital and are backed by a strong management team, CNBC's Jim Cramer said during his daily "Mad Money" show Thursday. Shares of Tilray Inc (NASDAQ: TLRY) briefly soared from $100 to $300 per share ahead of recreational legalization in Canada, Cramer said. When Tilray became a public company in the summer of 2018, CEO Brendan Kennedy was "very, very, very, very, very, very, very, very positive about the whole industry — but in retrospect, maybe too positive?" Cramer said.