Why Tilray Inc. is up 200% since August 2018


 
 
12:49 09/04/2018

Shares of Tilray Inc. TLRY  are up another $8 a share today.

While there isn’t anything new to speak of, the most likely answer is that investors have a fear of missing out. All this stock has done is gap higher in recent days. It’s also running on speculation that it could secure a deal like Canopy Growth did with Constellation Brands.

Constellation, by the way, just invested another $4 billion in Canopy.

In the last week alone, TLRY has run from $40 to $73 a share. And some analysts believe it could run to $80, even $90 a share at this pace. All as marijuana stocks continue to build of legalization in Canada this October 17, 2018.

There are plenty of reasons to like TLRY here.

One, “Tilray has a defensible competitive position as an early leader, with its partnership with Privateer offering ability to leverage established and recognizable U.S. brands,” analysts at Cowen said in an August 2018 note.



Two, TLRY appeared to be in good shape at the time.

Not only does it have ample production capacity, it expected to have 912,000 sq. ft. of growing space by the close of 2018, it also had supply-agreements in British Columbia, Quebec, Manitoba, and Yukon with a medical marijuana agreement in place with Novartis. At 912,000 sq. ft., the company would be right behind Aphria Inc., which had over one million sq. ft. of growing space at the time.

Three, the company could have quite an advantage in the international cannabis market.

In 2016, the company became the first Canadian marijuana producer to export cannabis to Europe. Tilray currently exports medical marijuana to nine countries, most importantly including Germany. Many more countries could be added to the list.

And three, the company is making waves in the corporate world.

In fact, the Canadian pot producer announced it would supply marijuana to Nova Scotia Liquor. That follows news that global alcoholic drink giant Diageo is in talks with Canadian marijuana companies about investments or alliances.

TLRY also signed an agreement with the Ontario Cannabis Store (OCS).

No wonder investors have a fear of missing out.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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