Marijuana Stocks: Why Tilray Inc. Skyrocketed 23%

12:12 01/11/2019

Marijuana stocks are already the hottest trades of the year.

Just take a look at Canopy Growth CGC  and Tilray Inc. TLRY , which we suggested buying on January 9, 2019. At the time, each traded at $82.25 and $35.55, respectively. They’re now up to $102.45 and $39.73, respectively.

For one, lawmakers in Kentucky and West Virginia are now considering full marijuana legalization. Lawmakers in India, Missouri, Texas and Virginia could also soon vote on legalization bills that were recently introduced.

Two, stocks like Tilray Inc. skyrocketed on the day after its biggest shareholder said it would hold the stock until at least the second half of 2019.

"We do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019," Privateer Holdings’ Michael Blue noted. "When we decide to distribute shares, we will do so in an orderly and deliberate manner to maximize tax-efficiency considerations for Privateer investors, while also taking into consideration potential impacts on Tilray's public float. And we will do it in a way that reflects our long-term confidence in Tilray's business model and management team."

Three, considering the sizable growth there are plenty of reasons to get excited.

According to analysts at Cowen, U.S. cannabis sales alone could reach $80 billion by 2030 – an increase of $5 billion from earlier estimates, and a 4% compound annual growth rate.

And four, we’re seeing considerable interest from corporate America.

Constellation Brands invested $4 billion in Canopy Growth. Molson Coors even listed legal cannabis among the biggest possible risks to its business in its annual shareholder report.

Anheuser-Busch InBev (BUD) looks to be jumping on the bandwagon, too.

Controversial or not, the marijuana story is also one of the most rewarding.

Here’s another hot pot stock you may want to consider buying for the long haul.

Aurora Cannabis ACB 

The company now anticipates revenue for the quarter ended in December 2018 of between $50 million and $55 million, compared to $11.7 million year over year.

That implies growth of nearly 330% in a single year.

"Revenue growth for the quarter was driven by the Company's strong position in the adult consumer use market in Canada, continued shipments of medical cannabis to Aurora's expanding base of approximately 71,000 patients in Canada, and relatively stable, supply restricted shipments, to its growing international markets," according to the company.

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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