Tilray Inc (NASDAQ: TLRY) is having a rough start to the trading session this morning. While the company hasn’t released any news today, we believe that we know why the stock is falling. All in all, it looks like traders are taking profits, opening the door to opportunity for those looking for a good time to get involved. Today, we’ll talk about:
- Why today’s declines likely represent a profitable opportunity;
- what we’re seeing from TLRY stock; and
- what we’ll be watching for ahead.
Why TLRY Declines Represent An Opportunity
Thilray has been compared to bitcoin, the tech bubble, and more as of late as the stock has gone on a dramatica climb for the top. So, what’s the deal? Well, there are a few reasons fro the climb:
Canada Legalizes Marijuana – The gains first started a couple of months back when Canada announced that it would be the first in the G7 group of countries, and second country in the world to legalize cannabis for adult use. Considering that TLRY already had a strong presence in the medical cannabis space in Canada, this was great news for the company.
Supply Agreements – Since the announcement, TLRY has been working hard to take its corner of the cannabis market in Canada, and has done a great job in the process. The company has signed more supply agreements than any other cannabis provider in the region. As a result, its products will be in front of more than 77% of its target audience. So, investors are excited about the potential revenue that will be created here.
Aggressive Global Ambitions – Finally, Tilray isn’t only interested in Canada. In fact the company has pretty aggressive global ambitions, and it has been executing well on them. In fact, starting less than 2 weeks ago, the company announced three moves that would bring its products into new regions, including Germany, the UK and the United States.
While traders are taking profits this morning, as you can see from the information outlined above, TLRY likely represents a strong long term opportunity. The company is positioned to take the Canadian recreational market by storm while setting the foundation to take the leadership position in the global space.
What We’re Seeing From The Stock
Although we are seeing declines from Tilray in the market this morning, I see these declines as an opportunity to get in at a discount. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (8:58), TLRY is trading at $104.30 per share after a loss of $18.70 per share or 15.20% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TLRY. In particular, we’re interested in following the company’s continued work to tackle both, the Canadian market and the global cannabis market as it seems to be having success in both areas. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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