TLRY cannabis stocksHexo turned out to be a bummer pick
but TLRY is still remaining
Which leads me to believe that the only thing that could cause a price to drop this much and then project this high upwards, has got to be due to federal legalization THC drinks and possibly more.
Lots of legal hoops to jump through for states and cannabis and more, but there is good that comes from legalization, meaning research money, meaning jobs, meaning genetics, meaning new ways of grow cannabis and using it that could ultimately be safer to consume vs now, maybe leads to dosages being figured out and effects to be specifically altered per user or use or effect or whatever you want to imagine.
Maybe not every state is ready to allow it but it seems across the board, it's a favorable issue for a lot of members of both parties. I've heard trump say, he doesn't need or want to use it but he has seen it do amazing things to help other, I've heard Kamala can help undo damage done during the course of a long a difficult career, and allow people who were simply selling to get by vs selling to commit crime and harm others, which ultimately means, she could probably do some good with the current fentanyl issue. As clearly she is now thinking about it from some views other than her own and how it can be used as a net good.
On top of that, it's clear the big companies or execs maybe even pharma companies need a look and a whole lot of questions asked about why cannabis caused the inability to fund through loans, borrow money, pay with credit and more.
So TLRY has overseas connections, favorable politics swinging their way through years of work, and drinks infused with THC, which as more research comes out, there might be ways to safely allow bars to serve drinks without someone being unable to get home within a reasonable amount of time. Would this ever occur, maybe, but the important key to take away is open research and money into science and then obviously trying to work with Mexico to literally end cartels (I have deep core ties to Columbia) and Escobar from stories I've heard personally and have no idea if they are true, really took care of the area he controlled, but yeah, he also probably was doing some awful stuff to others.
Lesson to learn here is that maybe some evil can be treated with a new direction, but some evil needs two major governments and police/technology and security that both keeps each place within their areas trying to solve a common goal and allowing each other to assist when a task is too difficult to handle on their own or ours. And clearly show the world that Mexico won't allow groups of evil to thrive and America can secure the border by doing it all in Mexico which could then theoretically lead to a an open border discussion, but say what you want. There is a major issue with cocaine usage and literally and knowingly killing other humans to profit, which is maybe evil, and something we could easily do which defense stocks getting obviously so much money pretty much all the time.
Again, why can't we help our vets to the point where it's not a issue? And they can seek help without losing status, rank, pay, benefits and more.
again, political views aside, America has a bad ass military that runs one hell of task, why aren't we using them to flush out corruption and evil and still find a way to maintain being an ideal view of how the military used to stand up to bad, and maybe we should have listened better should a former president suggest that money can cause an issue where oversight is gone, paraphrasing of course, as it's quite obvious this president have some serious foresight and tried to express that concern.
finally, cut anything out of this that you want to make it make sense in your world, but to make short a sweet, legalization allows the states more power, gives institutions power to direct lots of money towards meaningful research, gives avenues where we can actually start to work on the drugs that are laced with awful stuff coming into the country so frequently. And then you figure out who funds it and destroy whatever is left of that system, maybe dismantle is a better term, and start to setup some form of life that means someone in south america shouldn't feel the need to risk their life to leave their home, or why so many innocent people die for "drugs" which is probably a way better start a securing the border. A big wall can still have value in metal, and value can lead to an even better wall for cyber crimes, especially as we head to space. The space force is no joke, It was some well done prep work from former presidents and a realization of how much valuable stuff will be in a space making it targets for "evil"
Why do I say all of this, probably because a big first step is exactly the one I mention, legalization, and then locking up or whatever the leader decides is needed at that time. Ideally with a new lens of money being used to manipulate others at will. but my view is just one, I can't say my way is best, right or even possible, but again, legal leads to open freedom in safe environments. In fact, maybe the best person to handle an issue like that is someone who is potentially willing to legalize something that her decisions in the past have led to jail or worse.
TLRY
TLRY Tilray Brands Options Ahead of EarningsAnalyzing the options chain and the chart patterns of TLRY Tilray Brands prior to the earnings report this week,
I would consider purchasing the 1usd strike price in the money Calls with
an expiration date of 2024-10-11,
for a premium of approximately $0.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Tilray Brands (TLRY) to Report Q1 FY2025 Results October 10thTilray Brands Inc. (NASDAQ: NASDAQ:TLRY ), a global lifestyle and consumer packaged goods giant, is set to announce its Q1 Fiscal Year 2025 financial results on October 10, 2024. As the market eagerly anticipates the latest earnings report, let's dive into the company's recent performance, its strategic acquisition moves, and the stock's technical outlook, which offer both opportunities and potential risks for investors.
Overview
Tilray (NASDAQ: NASDAQ:TLRY ) has been making waves in both the cannabis and beverage industries, diversifying its portfolio and expanding its reach globally. Most notably, Tilray has completed the acquisition of Atwater Brewery from Molson Coors Beverage Company, further cementing its position in the craft beer industry. The acquisition adds Atwater Brewery, a historic Michigan-based craft brewery, to Tilray's growing list of premium brands, which includes SweetWater Brewing Company, Montauk Brewing Company, and more.
According to Tilray’s CEO, Irwin D. Simon, this acquisition enhances the company's presence in the Great Lakes region and strengthens its distribution channels. Tilray aims to leverage its resources to grow Atwater’s brand and introduce its signature brews to more beer enthusiasts across the U.S.
Financially, Tilray has shown strong revenue growth, reporting a 25.80% increase in revenue for FY2024, bringing in $788.94 million compared to $627.12 million the previous year. However, challenges persist on the profitability front, as the company posted losses of -$244.98 million, which, while substantial, are an 83.14% improvement compared to its previous year’s loss. This signals Tilray is making efforts to reduce its financial burden, though it has not yet reached profitability.
Analyst Sentiment and Stock Price Forecast
The average analyst sentiment for Tilray Brands’ stock is “Hold,” with a 12-month price target of $2.00. Currently trading at $1.70, this represents an expected 17.65% upside, a modest gain but potentially compelling for those seeking short- to medium-term investment opportunities.
It’s worth noting that Tilray (NASDAQ: NASDAQ:TLRY ) operates in an industry marked by volatility, as it juggles both the cannabis and consumer packaged goods markets. This makes its future growth trajectory dependent on various regulatory developments and the company’s ability to continue expanding into new markets and sectors.
Technical Analysis: Key Levels to Watch
From a technical perspective, NASDAQ:TLRY has seen a modest recovery, trading up 1.18% in premarket trading on Friday. The stock had previously been in a downward trend, but recent price action signals a potential shift.
Relative Strength Index (RSI) Currently sits at 45.58, the RSI indicates that the stock is neither overbought nor oversold. This suggests that while there’s some weakness, it also provides an opportunity for investors to capitalize on potential upside if a breakout occurs.
Support and Resistance Levels: Tilray's stock finds support at $1.50. Should the stock dip below this level, we may see a return to bearish momentum. Conversely, resistance at $2.00 serves as the next key level to break. If the stock can break through this resistance, it may attract new momentum traders and long-term investors, pushing it higher.
While the stock has recently bounced off support, the overall trend remains weak. Investors should closely monitor the stock’s movement approaching its Q1 results, as a move above or below the critical $1.50 support could signal further action.
Upcoming Earnings & Potential Catalysts
With the Q1 FY2025 earnings release scheduled for October 10, 2024, investors will be watching for several key metrics:
Revenue growth, particularly how the Atwater Brewery acquisition has impacted the top line.
Cost reduction efforts, as Tilray continues to narrow its losses.
Any updates on expansion plans, particularly in the cannabis market, which could provide a catalyst for stock price appreciation.
Additionally, Tilray’s diverse portfolio in cannabis, beverages, and consumer packaged goods offers multiple streams of revenue, which provides a level of insulation against market-specific headwinds. However, its success in achieving profitability and growing margins will remain critical for future stock price appreciation.
Conclusion: Opportunity With Caution
Tilray Brands (NASDAQ: NASDAQ:TLRY ) presents an interesting investment case with its significant growth potential driven by acquisitions and a diversified product line. However, the company is still facing financial hurdles, and its stock reflects ongoing volatility in the broader cannabis and consumer goods sectors.
For short-term traders, the current technical setup offers an opportunity to capitalize on a breakout above $2.00 or a potential pullback to the $1.50 support level. Long-term investors should focus on the company’s Q1 earnings and any signals that point toward sustained revenue growth and eventual profitability.
While Tilray’s stock is currently rated a Hold by analysts, its acquisition strategy and diversified portfolio position it as a potential turnaround candidate, making it a stock worth watching closely as Q1 results are unveiled.
TLRY Tilray Brands Options Ahead of EarningsAnalyzing the options chain and the chart patterns of TLRY Tilray Brands prior to the earnings report this week,
I would consider purchasing the 2.50usd strike price Calls with
an expiration date of 2025-1-17,
for a premium of approximately $0.29.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
SNDL a MJ penny stock in reversal from trend down LONGSNDL is shown on a weekly chart with a volume profile and VWAP band lines anchored back
three years. Perhaps due to recent news of potential federal legalization or other catalysts
SNDL is now above its pivot low. The EMA cloud ( periods 7, 21 and 42) is now green as
lines converged into a zero slope and are now rising. Price is now approaching the first lower
band line and will thus enter the fair value zone above the undervalued zone. A reasonable
target is 7.0 where the POC line of the volume profile is confluent with the black mean VWAP
line. The is more than 100% upside and will not occur quickly. Price may get spikes with
marijuana-related news along the way. A sign the trade is going bad is if both the faster green
RSI line and the slower black RSI line both go below the 50 level. The stop loss will be
at 1.86 below the EMA cloud. Accordingly. the risk is $0.50 per risk. If only $100 is to be risked
the trade can be 200 shares. Risk is off when price rises to $2.85 and the stop-loss is adjusted
to the entry price. Beyond $3.00, the stop loss can be adjusted to a trailing 10-15% or the
ATR. I see the last weekly candle as a Doji and so consolidation and price consensus making for
a best entry.
OGI - a MJ penny stock upgraded LONGOGI got an upgrade from hold to buy and with it a target of 5.25 or more than double current
valuation. The ballot iniative in Florida and legalization in Gremany are recent news. VP Harris
seeks to make legalization an lection issue this fall while pushing for a DEA reboot on the whole
cleassification of MJ. Prospects for growth seem more clear for OGI . I will take a long trade
here with the National MJ Day upcoming this weekend. I will target the horizontal levels
of recent pivots as drawn in black on the 60 minute chart.
OGI Swing Trades Continue More Volatlity from Fed News SHORTOGI has completed another trend up from the federal news about a push for legalization
of marijuana as a handout from incumbents seeking another term. My recent idea on OGI
as to demonstrate its suitability for high return short duration swing trades to add compounding
into the profit and returns. The increased volatility due to the federal news only adds to
the overall picture. I will short OGI here looking for price to fall to the area of the mean VWAP
where I will reverse my position and begin to take a long position in increments at optimal
entries.
FLGC rides MJ rallying from being beatdown long term LONGFLGC here on a 30 minue chart reflects the new agenda in the swamp as incumbents try to
fortify their re-election agenda. Same is happening in Germany !. My trade started 10 days
ago. I am looking for 300% got 200% so far. Momentum continues. Hot is hot until it is not.
(See also ideas on OGI, ACB and TLRY.) Adding on any pullback or consolidation.
TLRY and its peers jump on high federal news catalyst LONGTLRY on the 2H sharge shows a draamatic trading response to the DOJ recommending the
reclassification of marijuana. No much to the analysis = these will have momentum until it
fades. I suspect good continuation plays here until mid -day on Friday when profit taking
and sell-offs will dominate. Short sellers will take positions at the tops as well. In the
meanwhile long trades are the low lying fruit.. The risk is a bit lessens by the surge from
the news. Others include SNDL, OGI , ACB and the ETF MJ for those who like to spread risk
across a basket of stocks. For the time being these stocks will be truly buzzed but do not be
late. Stay home if you are.
TLRY - 420 to the MOON or is CANNABIS FINISHED?This chart is pretty explanatory, and probably doesn't require much explanation.
I'm bullish on this stock.
I'm 90% sure Dems push cannabis legislation through as it's a bipartisan issue for the most part, and will look good for both parties pre election. Starts with credit cards and banks, imo.
Don't follow green line path as gospel, it is often incorrect, but helps me plan a preliminary "ideal" path based on indicators. It helps with backtracking predictions, and keeping emotions in check, as you know what "past you" saw.
I like 1.89 as a big time buy target, but it could easily go lower.
Relevant trends and targets marked.
Watch out, current trends are showing the run-up into earnings, which would allow for a drop.
Does this mean anything? Not always, but it's good to note.
current bullish price movement doesn't have to end if rejection trends and targets start to break and confirm.
Good luck!
CGC trade from bounce at fib level LONGCGC fell in a standard Fibonacci retracement of 3 week trend up from Mid-March. News of
an application to issue a new class of shares may as well be considered a dilution of current
shareholders. CGC is 5 days away from National MJ Day of the 20th. I expect a further
pullback into the 0.618 level given the fundamental news but CGC could rally on trader interest
regarding the notable day. My trade plan is to buy a pullback if and whne it finds support at
6.15 and then enter long seeking the target of 7.95 which would be a Fib 0.5 retracement of
the trend down. I will look at other MJ stocks as well.
ACB a MJ small cap set up LONG Aurora Cannabis on a 15 minute chart is sitting on the dynamic support of the second lower
VWAP band in deep undervalued territory also below the high volume area of the immediate
volume profile anchored back to April 11th. The Trend indicator shows bearish momentum has
bottomed. The dual time fram RSI indicator shows RS values in the low 40s. ACB did have some
bullish volume spikes throughout the previous session. Next weekend, is National MJ Day and
a bit celebratory for stocks in this subsector. The backdrop of legalization in Germany and the
ballot initiative in Florida both have relevance and importance. Vice President Harris is pushing
the legalization as an incumbent seeking to be re-elected. All of this helps in ACB's
fundamentals and projects for future growth.
I see an upside of 15% to the recent high pivot and potentially beyond that.
ACB a Cannabis Penny Stock LONGACB is moving of late due to the legalization of marijuana in Germany as well as the election
referendum in Florida in November. It is the best capitalized of the peer penny stocks in
this sector. Today from the low at the opening bell to the high before the NY lunch hour, ACB
moved about 30%. There was both a long and short trade here. The options moved
multiples. National MJ Day is April 20th. I expect these stocks to keep moving at least
until then. ACB is getting support from the mean anchored VWAP line and is able to run
with its bullish momentum to the second upper VWAP line before the shorts take positions
and longs realize profits. Since ACB is now situated at the mean VWAP, it is set up for
a long entry now.
Tilray ($TLRY) 4.20 and beyondLooks like a massive ZigZag has finished on Tilray. C-Wave is pretty much exactly .786 the length of the A-Wave (in log).
If the impulse from the low is completed, it's a bit too early to call for a completed correction, though not entirely impossible, if this finishes as a Zigzag down (meaning we're currently in the C-wave). Timewise it would seem too short though, so this might need a bit more time to offer the next long.
i.ibb.co
Tilray Brands Reports Weak Q3 Fiscal 2024 Financial ResultsTilray Brands, Inc., ( NASDAQ:TLRY ) a leading global cannabis-lifestyle and consumer packaged goods company, recently released its financial results for the third quarter of fiscal year 2024. Despite facing a challenging market environment, the company showcased resilience and growth across various segments, demonstrating its strategic positioning in the evolving cannabis industry.
Steady Revenue Growth Amidst Market Volatility:
Despite market volatility, Tilray Brands ( NASDAQ:TLRY ) reported a remarkable 30% increase in net revenue compared to the prior year quarter, reaching $188 million. This growth was primarily driven by a robust performance in beverage-alcohol and global cannabis segments, reflecting the company's agility in capitalizing on emerging market trends.
Diversification Strategy Pays Off:
Tilray's strategic expansion into complementary markets such as beverages and wellness foods has proven fruitful. The company's beverage-alcohol net revenue surged by an impressive 165%, cementing its position as the 5th largest craft beer brewer in the U.S. Furthermore, its wellness segment witnessed a notable 12% increase in net revenue, highlighting the success of targeted advertising campaigns and continuous innovation efforts.
Global Cannabis Leadership and Market Penetration:
In the global cannabis arena, Tilray Brands ( NASDAQ:TLRY ) solidified its leadership position with a 33% increase in net revenue, driven by significant growth in international markets such as Canada and Germany. With the #1 market share in both countries, Tilray ( NASDAQ:TLRY ) is well-positioned to capitalize on the expanding medicinal and adult-use cannabis markets, showcasing its prowess in navigating complex regulatory landscapes.
Strategic Focus on Financial Stability and Debt Reduction:
The company's focus on financial stability was evident, with a strong liquidity position of approximately $226 million, comprising cash and marketable securities. Notably, Tilray ( NASDAQ:TLRY ) reduced its outstanding convertible debt by $50.7 million compared to the previous quarter, demonstrating prudent financial management amidst economic uncertainties.
CEO Perspective:
Irwin D. Simon, Tilray Brands' Chairman and CEO, emphasized the company's dynamic and diversified portfolio, spanning cannabis, beverages, and wellness products. He underscored Tilray's strategic achievements during the quarter, including revenue growth, debt reduction, and operational synergies. Simon's vision for Tilray as a global leader in the cannabis-lifestyle and consumer products industry highlights the company's commitment to innovation and market leadership.
Conclusion:
Tilray Brands, Inc.'s ( NASDAQ:TLRY ) robust performance in the third quarter of fiscal year 2024 underscores its resilience and strategic foresight amidst market challenges. With steady revenue growth, a diversified product portfolio, and a strong focus on financial stability, Tilray remains poised to capitalize on emerging growth opportunities in the evolving cannabis industry. As the company continues to innovate and expand its market presence, investors can look forward to sustained value creation and long-term growth potential.
Technical Outlook
Tilray Brand ( NASDAQ:TLRY ) stock is down by 20% trading at $2.07 Tuesday Trading session. NASDAQ:TLRY has a weak Relative Strength Index (RSI) of 46.78. The Yearly price chart shows a bearish Harami despite Robust Q3 Fiscal 2024 Financial Results.
ACB Marijuana related volatility in a penny- SHORTOn the 2H chart ACB a penny stock appears to be heading down after an uptrend into
VWAP band resistance. The HMAs have put ina death cross and the lines are downward
and under the histogram. The dual time frame RSI indicator shows the lines falling through
the 50 level. This stock offers shares under $ 1.00 each and also put options. It is likely
not shortable so I will but put options and hope to have a fast ride with them. The stock target
is the psychological level of 0.5 also confluent with the next VWAP line down. Is is a 8% drop
in share price and would yield a good 50% or more on a 7DTE call option. If you are interested
in my specific option setup in mind, please leave a comment.
ACB Cannabais Peeny Stock with News LONGCannabis socks got a boost in the past day as the Biden administration seeks a reclassification
of cannabis with the Drug Enforcement Agency ( DEA) This will likely give the entire sector
some momentum. Here on a 60 minute chart, Aurora ACB is seen in a VWAP band breakout,
crossing over the fair vlaue area of the mean VWAP accompanied on the indicators with
confirmatory volume and volatility. On the zero lag MACD, the lines have crossed above the
zero horizontal and above the histogram. I see this as an excellent long entry targeting 4.35
which was the pivot high after the last earnings. This represents a conservative 17-20% upside
with potential upside beyond that price level given the potential impact of the federal news.
SMG- it's spring time for SMG to make some green LONGSMG has good reason to trend up- the spring brings out consumers looking to get their lawn
off to a good start and the rise in marijuana stocks on the run-up to April 20th and the recent
legislative catalysts in Germany and Florida bring Scott's into focus as cultivators often use
it in their soil-based and hydroponic grow operations. The indicators show price momentum
and adequate volume to support a move higher. The predictive algorithm forecasts that move.
I will take a long position here targeting 86, the pivot high of 11 months ago.
Tilray Brands Unveils Exciting 420 Product Lineup: Stock up 18%As the cannabis industry continues to evolve, Tilray Brands, Inc. ( NASDAQ:TLRY ) emerges as a frontrunner in the global cannabis lifestyle and consumer packaged goods market. In a recent announcement, Tilray ( NASDAQ:TLRY ) unveiled its latest product lineup and 420 celebratory activations across Canada, offering consumers an array of diverse cannabis products from its leading brands.
Tilray Brands ( NASDAQ:TLRY ), known for its commitment to quality and innovation, showcases an impressive selection of flower, beverages, pre-rolls, and vapes, catering to both seasoned cannabis enthusiasts and curious newcomers alike.
Flower Selection:
Redecan Space Age Cake, Good Supply Melon Dream, and Broken Coast EmergenZ and Cherry Cheesecake are among the standout strains offered, each boasting unique aromas and taste profiles that promise to elevate the cannabis experience.
Beverage Innovation:
XMG+ Non-Carbonated Banana Brain-Freeze and Berry Rocket, Solei Cold Brews in Peach Cranberry and Wildberry Hibiscus, and Mollo Seltzers in Lemon, Mango, and Pineapple showcase Tilray's commitment to providing consumers with innovative and refreshing beverage options infused with THC and other cannabinoids.
Pre-Rolls for Convenience:
Good Supply's 'Cherry on Top' Blunts, Redecan Hemp'd Khalifuel Redees, and Canaca Darts in Berries & Cream and Twisted Citrus offer convenient and pre-rolled options for consumers seeking quality and consistency.
Vape Excellence:
Good Supply Gooey Gold and Cherry Loops vapes deliver high potency and rich flavors, enhancing the vaping experience with every inhale.
In celebration of 420, Tilray Brands invites consumers to explore these exciting new products through a series of educational budtender events hosted in partnership with over 1000 Canadian cannabis retailers nationwide. These events offer a unique opportunity for consumers to learn about Tilray Brands' products and the ever-changing landscape of cannabis innovation and culture.
With a commitment to quality, diversity, and consumer satisfaction, Tilray Brands ( NASDAQ:TLRY ) continues to push the boundaries of cannabis innovation, setting the standard for excellence in the industry. Whether it's the creamy vanilla notes of Redecan Space Age Cake or the tropical sweetness of XMG+ Non-Carbonated Banana Brain-Freeze, Tilray Brands offers something for every cannabis enthusiast to enjoy.
Technical Outlook
Tilray Brands Inc. ( NASDAQ:TLRY ) stock is up by 18.26% prior to new product lineup news. In our recent technical Outlook on Tilray Brands ( NASDAQ:TLRY ) stock, we predicted the stock to spark a bullish breakout after forming a symmetrical triangle pattern. which did fill the order.
Wednesday, 4th April 2024. NASDAQ:TLRY is trading above the 200-day Moving Averages (MA) with a bullish Relative Strength Index (RSI) of 77.82 indicating an overbought position or continuation of the current trend.
Swing Trading a Marijuana Penny Stock OGI LongOGI is a highly volatile penny stock in the marijuana subsector. It is too cheap to short It does
have options. ( The strike $2 for 3/15 contract on Friday went 67% from the LOD to the high of
day). On the 15-minute chart is shown my swing trading strategy for OGI. Each up arrow is one
lot of shares while the red arrow is to sell a lot. The lot size can be number for example
1,20,50, 100. consistency helps the strategy.
There are seven trades taken, three are completed while four are open. The three completed
trades average 2.5 to 4 % daily return and compounding when the cash returns from
settlement or new cash is deployed while awating settlment. There is no need for
margin. The options strategy yields more than 10% per day for capital deployed into
call contracts. The mass index indicator is used in lieu of a set of moving averages.
The dual time frame RSI looks for an early warning of a reversal with bearish divergence and
the faster RSI < slower RSI while the linear regression line in a reversal goes to a zero slope
before becoming downsloping.
This is an easy strategy with very little time and effort involved that can be scaled
once experience and results demand it.
This is an effective strategy to grow a small account in a short time. For those with significant
math skills or who know how to use a scientific calculator. Calculate the number of trading days needed to 10X initial money when the account balance is compounding each session and the compound rate is 2%. ( This strategy will compound an account 2% per trading day if 65%
of the account balance is in trade at any time with the remaining 35% settling or waiting
in cash for the next trade- I have done this several times with a few mentees.) ( Post your
result and I will private message you the calculation)
YCBD- another marijuana pneey stock lights it up LONGThe idea is on the 15 minute chart here- See also ideas for OBI, ACB, TLRY, and CGC
Germany also is pushing full legalization. A new day is dawning? Several states are working
on releasing minor offenders ( clemency and pardoning).
YCBD is risky but the potential rewards are great. As for me, a fair position with a stop loss
of 10% targets of 50%, 100% and 200%. I am in no hurry and will accept the cup and handle
as being over a relatively short period of time and so not necessarily highly reliable.
Nevertheless, i will chase some of the hottest things around- penny and low priced
marijuana stocks. (Very) HOT until they are not.
Tilray's 8% Surge: High-Risk Gamble or a Path to Redemption?Tilray Brands (NASDAQ: NASDAQ:TLRY ), once a shining star in the cannabis industry, finds itself in turbulent waters as its stock price struggles amidst a series of setbacks last week. Despite aggressive growth through acquisitions, Tilray's stock has plummeted, trailing behind major indices and leaving investors questioning the efficacy of its strategy.
The Acquisition Frenzy:
Tilray's growth trajectory has been marked by a flurry of acquisitions, positioning itself as a major player in both the cannabis and alcoholic beverages markets. From snapping up eight beer brands from AB InBev to acquiring Truss Beverage from Molson Coors, Tilray seemed determined to diversify its revenue streams and mitigate the inherent risks of the cannabis industry.
Revenue Growth vs. Mounting Losses:
While acquisitions have propelled Tilray's revenue growth, with annual revenues soaring from $179.3 million in 2019 to over $700 million in the trailing twelve months, the company's bottom line tells a different story. Net losses have ballooned, surging from $36.1 million in 2019 to over $1.4 billion in the same period, raising concerns about the sustainability of its expansion strategy.
Cannabis vs. Beverages: A Shifting Landscape:
Despite its roots in cannabis, Tilray's focus seems to be shifting towards alcoholic beverages, evident in its recent revenue breakdown. While the cannabis segment still contributes significantly to its revenue, the beverages segment is gaining ground, a trend likely to continue as integration efforts persist.
Challenges on Multiple Fronts:
Tilray ( NASDAQ:TLRY ) faces an array of challenges, both domestically and internationally. In Canada, its home market, saturation is squeezing margins, while regulatory hurdles in the United States pose obstacles to expansion. Even in Germany, touted as a potential growth market, barriers loom large, underscoring the uphill battle Tilray faces in realizing its ambitious revenue targets.
Stock Price Forecast:
Tilray's ( NASDAQ:TLRY ) stock price paints a bleak picture, with a strong downward trend persisting throughout the year. Despite its downward trend, Tilray ( NASDAQ:TLRY ) stock was up 8% in early market trading this could be a sign of a bullish breakout after the stock's poor performance last year. Technical indicators suggest that further downside could be in store, with key support levels looming as potential targets.