Categories Cannabis

Tilray lingers near a yearly low as lack of clarity about pot industry continues

Tilray Inc. (NASDAQ: TLRY) stock is trading near the yearly low on Wednesday after falling over 64% in the year so far and over 75% in the past year. The shares have been grounded since late 2018 as questions arose about the future of the medical cannabis player. Pot stocks have been under pressure during this week due to the continuation of lack of clarity in the marijuana industry.

There has been adversity around the company’s investments as those could yield returns only in the future. Despite Tilray contributing considerably in the beverage and retail partnerships, the opinion in the markets is increasing that these investments are overvalued.

The company’s stock has been impacted by the changes in the cannabis price per gram that is likely to remain as a sign of the future market pricing. The current pricing weakness is likely to continue at least for the next 12 to 18 months. After this, the market could find a balance between supply and demand.

Tilray stock heads to yearly low on future concerns
Courtesy: Tilray

For the second quarter, Tilray reported a wider loss due to higher operating expenses. However, the top line soared over 371% year-over-year backed by the Manitoba Harvest acquisition, the legalization of the Canadian adult-use market, and growth in Europe. Total kilogram equivalents sold tripled to 5,588 kilograms from 1,514 kilograms last year, while average net selling price per gram decreased to $4.61 from $6.38 a year ago.

The company was able to manage its debt properly. As of June 30, 2019, the total debt stood at $434.68 million while total cash remained at $247.76 million. For the trailing twelve months, the return on assets was at a negative of 10.44% and the return on equity was at a negative of 58.20%.

Tilray has been facing weakness in the selling price as the company and the industry has harvested cannabis roughly double the actual sales. Investors remained concerned about how the company will achieve its revenue target of $350 million in 2020 and $588 million in 2021 if the pricing continued to be weak.

Read: PriceSmart stock rebounds to 11-month high

However, the company is expected to significantly increase its capacity after its purchase of Natura and greenhouse. The production remained an important aspect of Tilray’s success in Canada. The company’s purchase of Manitoba Harvest turned out to be logical and reasonably priced for traders and Tilray’s valuation metric has improved significantly after Manitoba purchase.

Tilray went from $20 in July 2018 to $200 in September 2018 on pure speculation, and the stock hit $300 on September 19, 2018. Ever since the stock has come crashing down and turned out to be a better low-priced cannabis stock by the investors. The Tilray stock is on the verge of going down but a hugely positive catalyst, as expected by the market, could turn the ship around.

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Comments

  1. Pingback: Leandro Farland
  2. Pingback: future university
  3. Pingback: Refereed articles
  4. Pingback: Summer Internship
  5. Pingback: Orthodontics
  6. Pingback: Credit Hour System
  7. Pingback: IT Certifications
  8. Pingback: human-development
  9. Pingback: Rota evaporators
  10. Pingback: machine hip thrust
  11. Pingback: machine pectoraux
  12. Pingback: Fiverr Earn
  13. Pingback: Fiverr Earn
  14. Pingback: Fiverr Earn
  15. Pingback: Fiverr Earn
  16. Pingback: Fiverr Earn
  17. Pingback: Fiverr Earn
  18. Pingback: Fiverr Earn
  19. Pingback: Fiverr Earn
  20. Pingback: Fiverr Earn
  21. Pingback: Fiverr Earn
  22. Pingback: fiverrearn.com
  23. Pingback: fiverrearn.com
  24. Pingback: prodentim buy
  25. Pingback: fiverrearn.com
  26. Pingback: clima de hoy
  27. Pingback: fiverrearn.com
  28. Pingback: fiverrearn.com
  29. Pingback: aussiedoodle
  30. Pingback: Digital Marketing
  31. Pingback: swimsuit for women
  32. Pingback: weather new hope
  33. Pingback: future university
  34. Pingback: future university
  35. Pingback: future university
  36. Pingback: rolex hoodie
  37. Pingback: french bulldog
  38. Pingback: lean manufacturing
  39. Pingback: Classic Books 500
  40. Pingback: FiverrEarn
  41. Pingback: FiverrEarn
  42. Pingback: FiverrEarn
  43. Pingback: Coach
  44. Pingback: FiverrEarn
  45. Pingback: partners
  46. Pingback: amiclear reviews
  47. Pingback: glucofreeze
  48. Pingback: ultra k9 pro
  49. Pingback: neurozoom reviews
  50. Pingback: live sex cams
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: FiverrEarn
  59. Pingback: FiverrEarn
  60. Pingback: FiverrEarn
  61. Pingback: FiverrEarn
  62. Pingback: Bilona
  63. Pingback: wix login
  64. Pingback: education
  65. Pingback: FiverrEarn
  66. Pingback: FiverrEarn
  67. Pingback: neurorise legit
  68. Pingback: cheap sex cams
  69. Pingback: french bulldog buy
  70. Pingback: rare breed-trigger
  71. Pingback: 늑대닷컴
  72. Pingback: Turnamen slot
  73. Pingback: One Peace AMV
  74. Pingback: superslot
  75. Pingback: allgame
  76. Pingback: 918kiss
  77. Pingback: หวย24
  78. Pingback: pg slot
  79. Pingback: catskills hotel
  80. Pingback: 300 wsm ammo
  81. Pingback: itsMasum.Com
  82. Pingback: masumintl
  83. Pingback: itme.xyz
  84. Pingback: Bulk URL Shortener
  85. Pingback: itme.xyz
  86. Pingback: itme.xyz
  87. Pingback: ItMe.Xyz
  88. Pingback: masumintl.com

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top