IS TILRAY THE BEST CANNABIS STOCK




Famous for being the first cannabis company to ๐—œ๐—ฃ๐—ข on an American stock exchange (2018), Tilray rose 600% in its first 3 months! The bubble quickly popped and the stock fell 97% over the next 2 years. After a complete washout, it looks as though Tilray has finally ๐—•๐—ข๐—ง๐—ง๐—ข๐— ๐—˜๐——! I'm very optimistic about the stock in 2021 and below are 3 reasons why.



โšก STOCK MOMENTUM

Over the past 4 months, Tilrayโ€™s stock has stabilised and has began ๐—ฆ๐—ง๐—˜๐—”๐——๐—œ๐—Ÿ๐—ฌ ๐—–๐—Ÿ๐—œ๐— ๐—•๐—œ๐—ก๐—š. This steadying of the stock is resulting in more rational and dependable price movements which should entice investors who rely on ๐—ง๐—˜๐—–๐—›๐—ก๐—œ๐—–๐—”๐—Ÿ ๐—”๐—ก๐—”๐—Ÿ๐—ฌ๐—ฆ๐—œ๐—ฆ. Below you can see how Tilray stock has been trending higher before breaking out above $9 per share. This chat also suggests that the stock might pullback to test support between $9-10 which I believe would represent an excellent entry point for investors looking to get into Tilray!




โšก UPCOMING INDUSTRY GROWTH

More often than not, it pays to invest in stocks that are at the centre of industries expecting to benefit from near-term positive catalysts. With the Democrats winning the US presidential election & the Senate, the prospects for federal ๐—Ÿ๐—˜๐—š๐—”๐—Ÿ๐—œ๐—ฆ๐—”๐—ง๐—œ๐—ข๐—ก looks like a slam dunk! This will ensure that the total addressable market (TAM) continues to grow for all within the cannabis sector for years to come. However, investors hoping for short term gains based on upcoming cannabis reform must ๐—•๐—˜ ๐—ฃ๐—”๐—ง๐—œ๐—˜๐—ก๐—ง! Itโ€™s likely that legalisation will take longer than many expect as more pressing issues (pandemic, unemployment, struggling businesses etc.) take priority! Investors must also consider that if cannabis were to become legal across the US then not only will the TAM increase but so too will competition!

โšก UPCOMING MERGER

Tilray will soon merge with Aphria! This deal is expected to close within the next 3 months and will create the ๐—ช๐—ข๐—ฅ๐—Ÿ๐——'๐—ฆ ๐—Ÿ๐—”๐—ฅ๐—š๐—˜๐—ฆ๐—ง cannabis company by revenue. The table below compares Aphria's fundamentals with other top cannabis companies.


As a larger company, the โ€œ๐—ก๐—˜๐—ช ๐—ง๐—œ๐—Ÿ๐—ฅ๐—”๐—ฌโ€ will save on costs and be able to use 2 sets of existing partnerships to reach new markets! For example, Tilray will now be able to get itโ€™s products into the German market thanks to Aphriaโ€™s network in Europe whilst they can begin distributing Aphriaโ€™s top products in the US through Tilrayโ€™s subsidiaries! Just to confirm, the newly merged company will trade under Tilrayโ€™s name and therefore Tilray shareholders will see ๐—ก๐—ข ๐—”๐——๐—๐—จ๐—ฆ๐—ง๐— ๐—˜๐—ก๐—ง to their holdings whereas Aphria shareholders will receive 0.83 Tilray shares for each Aphria share they own when the deal completes in Q2.

SUMMARY

Despite these reasons, I do want to point out that the Cannabis sector is a particularly ๐—ฅ๐—œ๐—ฆ๐—ž๐—ฌ industry to invest in. Cannabis companies are fairly new and donโ€™t have proven track records of success and this makes it harder to separate the best and worst companies in the sector. That said, I expect the cannabis market to grow quickly for many years to come and as things stand, Tilray is positioned as well as anybody to ๐—ฅ๐—œ๐——๐—˜ ๐—ง๐—›๐—˜ ๐—ช๐—”๐—ฉ๐—˜!


In fact, I included Tilray in a post that I did 3 months ago where I highlighted ๐Ÿญ๐Ÿฌ ๐—ฆ๐—ง๐—ข๐—–๐—ž๐—ฆ ๐—ง๐—›๐—”๐—ง ๐—–๐—ข๐—จ๐—Ÿ๐—— ๐——๐—ข๐—จ๐—•๐—Ÿ๐—˜ ๐—œ๐—ก ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿญ. Since that post Tilray has already doubled and you can check out the entire list HERE!




Make sure to check out these popular blog posts!


SHOULD YOU INVEST IN AURORA CANNABIS


WILL BITCOIN REACH $1,000,000


COULD NETFLIX BE WORTH $1 TRILLION



#tradeinplaces #trading #trade #learntotrade #learntoinvest #etoro #finance #financialfreedom #investing #travelblog #travelling #stocks #stockmarket #stockstowatch #investor #investment #howtoinvest #howtotrade #aurora #aphria #tilray #cannabis #blockchain #cryptocurrency #bitcoin #ethereum #eth #2021

BLOG POSTS

POPULAR POSTS

INSTAGRAM

 

Disclaimer: All trading involves risk. Only invest money that you can afford to lose and remember that past performance doesnโ€™t necessarily guarantee future results. Everything posted by me is for educational purposes only. I am not a financial advisor and no information on this website or any accounts linked with myself should be considered as financial advice. Remember, all trades are at your own risk. 

ยฉ 2020 TradeinPlaces
  • YouTube
  • Instagram Social Icon
  • etoro
  • Email