Tilray Inc (NASDAQ: TLRY) has seen incredible gins since its IPO. In fact, looking at the more than $200 price tag on the stock today, most wouldn’t imagine that the company launched its IPO in July at just $17 per share. Now that the price has gained in multiples over the past few months, a big question is starting to emerge. That question is, “Did I miss the boat?” Today, we’ll talk about:
- Why TLRY has seen such monumentous growth;
- whether or not there is still opportunity here; and
- what we’ll be watching for with regard to the stock ahead.
Why TLRY Has Seen Such Incredible Growth
Tilray is a cannabis company located in the country that recently announced that it would be the second in the world to legalize the substance, Canada. Since the announcement, several companies have been working to carve out their slice of the market through supply agreements with retail providers in the country. While several have worked, few have worked as hard as Tilray.
At the moment, TLRY has executed supply agreements in several provinces in territories throughout Canada for the supply of cannabis to the retail market. Under the terms of these agreements, the company has cemented a place in stores within provinces and territories that represent more than 77% of the Canadian population. As a result, the company’s products will likely be in front of more than 77% of its target audience.
Nonetheless, Canada is only one small piece of the puzzle here. The truth is that the global ambitions displayed by TLRY are just as important as their activities in Canada. As we speak, opinions with regard to cannabis are changing all around the world, opening the door to opportunity after opportunity for marijuana-related companies. Tilray is taking advantage of these opportunities.
In fact, in very recent times, the company has announced that it received approval to ship cannabis to the United States for a clinical trial, made its first shipment of cannabis to the UK, and received approval to ship medical cannabis to Germany.
As the company continues to execute on its aggressive strategy, it continues to excite investors, which is ultimately the reason for the gains that we’ve seen.
Will The Stock Go Higher?
The big question here is whether or not you’ve missed the boat, and in my opinion, the answer is no. The truth of the matter is that while I will admit that Tilray’s valuation is quite high, the stock has room to head upward. That room is ultimately being created by investor excitement. I believe, that leading up to the open of the Canadian cannbis sector, TLRY and other leading cannabis stocks in the space will continue to rise. Whether or not these gains continue once investors start to see the actual revenue generated through the sales of cannabis in Canada is a topic of conversation for another day. However, leading into the opening of the cannbis market in the region, I believe that we will see more gains.
On a long run view, whether or not TLRY holds onto its gains depends on various factors:
- Continued work toward aggressive global expansion must continue.
- Continued changing tides with regard to cannbis laws around the world must continue.
- Tilray must do well selling its products in the retail-cannabis market in Canada.
Should these three factors continue, I believe that TLRY will see continued growth for the foreseeable future.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. Recent news surrounding Tilray has been overwhelmingly positive. Not only has the company cemented key supply agreements, but it has been aggressively expanding around the world. So, it comes as no surprise that excited investors continue to send the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:23), TLRY is trading at $235.52 per share after a gain of $21.46 per share or 10.03% 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 through the opening of the retail cannabis market in Canada as well as their work to expand on a global level. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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