InvestorPlace – Stock market news, stock advice and trading advice
I believe both Of Tilari (NASDAQ:TLRY) Possible positive indicators are really good. However, TLRY’s stock is highly speculated, as it may reflect a significant discrepancy, and may have a positive view of US legitimacy.
Source – Jarretera / Shutterstock.com
For this reason, I recommend that investors sell their shares at their current level.
2 Possible positive stimuli can be realized
During the July 28 call for Tilray’s fourth quarter revenues, Tilray CEO Erwin Simon said the company could use its “strong cash flow and balance sheet flexibility” and, with its various strengths, “use brands to transform the industry, including a diverse medical and adult portfolio.”
Simon probably can’t change the cannabis industry. But with the advanced age of Canada and the European Union and their people getting older, I think medical marijuana could be useful for TLRY storage and its peers.
With so many baby boomers and generations – some of whom are more addicted to cannabis than previous generations – I am not surprised that the demand for medical marijuana has increased more than ever before. This is especially true in countries of the European Union that have legalized cannabis, which is illegal, as many people who want to try cannabis but do not want to get caught in those countries may want to get medical marijuana.
Tira is taking steps to curb the growing demand for medical marijuana. Last month, for example, German pharmacies began producing medicinal cannabis planted in Germany. Simon says he is on track to become “the first licensed manufacturer to develop medical cannabis in Germany.” Entertainment cannabis is illegal in the country, but medical cannabis is allowed.
The company also developed a new medical cannabis product called Simbios, which “has been developed to provide a wide range of formats and specific cannabinoid dosages at a better price point” and provides “a general classification of products, including flowers and oils.” And precautions for their health. ”
And Tilray cannabis, which is clearly present in the EU, could benefit from many countries legalizing cannabis. Denmark, Luxembourg and the Netherlands are considering doing so, and Portugal may soon consider such an initiative. Although they are all small countries, large EU countries may legalize the drug in the next few years.
TLRY stock reflects unrealistic stimuli
Tilray merged with Afria in May. In a strange move that has never been seen before in 14 years of reporting on the stock, the company seems to have compared Q2’s financial results to its reported earnings for more than a year. Alone, for 2020 Q2.
On the other hand, Tiller announced that last month’s financial Q4 net revenue jumped 27% over the same period a year ago and sales of cannabis increased by 55% over the previous year. Achieving results in 2020 at the same time.
Many retail investors do not realize that the comparison is very distorted. As a result, the TLRY stock may have aggravated the value of the shares, reflecting the company’s erroneous growth over the years.
In addition, Simon is optimistic that full legalization of cannabis will soon take place in the United States. However, in line with previous forecasts, the Los Angeles Times reported on July 29 that most experts did not expect the Senate to pass the legal cannabis bill described by Senate Majority Leader Chuck Schumer.
Legitimacy because of filibusters requires the support of every Senate Democrat and 10 Republicans. That, according to the Times, would be hard work. And as we approach the 2022 congressional elections, I think the legitimacy of passing the Senate is even lower.
Most strong lawmakers are likely to vote for Democratic congressional candidates in a legal way. I don’t think Democratic senators will have much incentive to get some swing voters out by voting to legalize cannabis to run again in 2022. And almost all Republicans are reluctant to provoke conservative voters who strongly oppose legitimacy.
Unless Filibuster is expected, I think the only way for legitimacy to pass the Senate is if Democrats have at least 54 seats and the legitimacy of a Democratic president is a priority.
Since both of these conditions are now far from being met, I do not expect full federal legitimacy to occur for years to come.
Bottom line on TLRY collection
I believe it is right for Tilray to focus on the medical marijuana market, especially in recreational marijuana countries. And Tilra could increase its effectiveness by entering the EU legally.
But I think the TLRY collection now reflects unrealistic expectations about its growth and the legitimacy of the United States.
At the time of publication, Larry Ramer had no place of employment (directly or indirectly) in the securities mentioned in this article.
Larry has been researching and writing articles on American stocks for 14 years. He is employed by The Fly and Israel’s largest commercial newspaper, Globes. Some of the most successful contraceptive options are solar stocks, rockets, plugs and sprays. You can find him on @larryramer on StockTwits. Larry began writing columns for InvestorPlace in 2015.
Post Tilray stock probably reviewed at this price appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and, of course, Nasdaq, Inc.