The well known cannabis company Tilray may end its losing streak. Over the past few quarters they consistently missed their earnings estimates. They also lost more than half their share price in the previous 6 months. At one point almost a year ago a share in this company was about $214. As of today it is priced at $32, and I believe would continue to fall. This drastic change in price was due to the fact that it was a new company in a completely new sector. With this it showed that there was a lot of hype (potential) resulting in a $214 stock price. This is why they had been priced so exclusively and reasonably so, fell dramatically. During this past year the company was able to successfully use this inflated stock price to partner with the Anheuser- Busch company. This might mean for new cannabis infused beverages, among other products in the next few years. Also the company had grew this year despite its stock price, which shows that things might not be all bad.
In the end, TLRY stock is overvalued and as a result the price will continue to fall until it shows signs of a reversal, which might not take place for another few months. Despite this, there is still promising potential. The TLRY stock had captured much attention in the market and definitely established its name in the cannabis sector because of it. Getting attention is crucial for any company in the market especially when it is a young company such as this one. They can use this to establish their name as a key player, as well as use it to differentiate themselves from all the other new young cannabis startups in the sector.
I would wait until November or early December to see whether or not to buy shares in TLRY
Source: https://finance.yahoo.com/quote/TLRY?p=TLRY
