Is it possible to make profit on Tilray Inc. shares?
12 Dec 2018
Tilray Inc., a Canada-based company that produces and sells medical cannabis to consumers and pharmaceutical distributors, has been trading on the NASDAQ since July 2018. Around 76% of the company shares are owned by Privateer Holdings Inc., founded by Brendan Kennedy, Michael Blue and Christian Gros.
After the law legalizing the storage and use of cannabis for recreational purposes came into force in Canada last June, Tilray was the first company in the sector to hold an IPO. Later, the Drug Enforcement Administration officially authorized Tilray Inc. to import medical cannabis for testing in California.
A total of 109 million shares of Tilray are listed on the stock exchange. According to the company’s plans, Tilray’s market cap may increase to $100 billion in the future. In the meantime, this figure is slightly below $10 billion.
In July, the share price was $17, and today it costs a bit over $100. At some point, the price exceeded $200, although about a month after the IPO, it was just $20. After that, the price skyrocketed, similarly to the Bitcoin boom. The investors showed an increased interest in the sector, which, at that time, was not very actively represented on the market. Later, the rise slowed, as the euphoria was over and a number of other companies operating in this field entered the market, after which Tilray securities lost its exclusive nature.
At the moment, a number of large companies is showing interest in the cannabis market. In particular, Microsoft has entered into a partnership agreement with Kind Financial, a US-based startup that develops software for government agencies controlling the production and sale of cannabis. Coca-Cola has also announced plans to produce drinks that incorporate cannabis.
It's highly likely that the opportunity to make a large profit by investing in Tilray has already passed. Nevertheless, the stock price is steadily increasing, and it is likely to continue.