Pot Stocks: The Run in Tilray May be Far from Over


 
 
06:12 09/12/2018

Tilray Inc. TRLY  has become the runaway stock of 2018.

Just weeks ago, the stock priced under $30.

Now it’s up to $105, as we near October 2018 legalization in Canada.

The legalization of recreational marijuana just in Canada is expected to generate $5 billion in sales. The industry could balloon to $8.7 billion shortly after, as marijuana retail sales just in Canada are likely to surpass beer, wine and spirit sales combined. However, some analysts believe even those predictions are too low.

According to Oracle Poll Research, Canada could see more than 11 million marijuana users by 2021, which could produce between $8 billion and $12 billion in annual sales.

But it’s not just Canadian news that’s giving the stock a boost.

Shares rocketed higher after its medical cannabis product was successfully imported into the United Kingdom. The product was for a pediatric patient in need, says Market Watch. The successful import of the product followed an announcement by U.K. Home Secretary Sajid Javid in July that clinicians will be able to prescribe cannabis-derived medicines to patients with exceptional clinical need.



Not even short sellers can bring the stock down. And they’re trying.

In fact, Citron Research reiterated its short call on the stock, believing it’ll sink back to $50.

They believe TLRY carries a “ridiculous valuation discrepancy.”

And they believe TLRY may need to conduct a secondary to raise additional capital. “These stock prices are equivalent to bitcoin mania – although it is even more ridiculous than bitcoin.”

But it’s not derailing the rally. In fact, with this much momentum, it could push to $150.


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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