Tilray Inc (NASDAQ: TLRY) is climbing early on in the trading session this morning. However, if you dig for press releases, you’ll quickly see that the company has not issued any new news. Nonetheless, there’s a good reason for the climb after the world’s largest marijuana ETF doubled down on the stock in a big bode of confidence. As you can imagine, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from TLRY; and
- what we’ll be watching for ahead.
World’s Largest Marijuana ETF Doubles Down On TLRY
As mentioned above, Tilray is having an incredibly strong start to the trading session this morning after news broke that the world’s largest ETF just made a move that proved to be a big bode of confidence. In a story that first broke on Bloomberg, news was released that Horizons Marijuana Life Sciences Index ETF (HMMJ), added eight new stocks to its portfolio . More importantly for today’s topic, the company incrased its holdings in several companies, including TLRY.
The story states that the fund’s manager, Horizons ETFs Management, cut positions in stocks that had run up and become large portions of its portfolio. In doing so, it freed up the cash needed to increase its stake in TLRY and add other investments. The ETF also increased its holdings in Aurora Cannabis, Canopy Growth Corp. (CGC) and GW Pharmaceuticals Plc (GWPH).
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Tilray, while the company has not released any news of its own, the news did prove to be positive. After all, the increased stake from HMMJ is a major bode of confidence for this high flying cannabis stock. So, it comes as no surprise that excited investors are sending the stock screaming for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (11:02), TLRY is trading at $129.30 per share after a gain of $14.80 per share or 12.93% 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 story surrounding the company’s continued work to take its share of the coming Canadian recreational cannabis market as well as maintain its leadership in the Canadian medical cannabis market. We’re also watching as the company continues to expand its global efforts with recent announcements of its products being shipped to the United States for a clinical trial, patients in the UK and patients in Germany. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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