Tilray-the must-own bellwether weed stock?

At last check, Tilray (TLRY) shares were trading at 19.72 USD (+4.89%) (MARKET CLOSED-JUN 07 19:59 UTC-4). They’re trading at less than a third of their 52-week high of $67, set in early February. We believe that three positive news surrounding Tilray and the cannabis market make it a good buy for both the short term and long term period.

1.The 4 Billion USD merger of two of the biggest name in Cannabis.

Last month, Tilray and Aphira completed their 4 billion USD merger. A match made in heaven combining Aphira’s leading recreational position in Canada with Tilray’s strength in international markets. The pair is now seen as a power couple in the sector and represents the world’s biggest cannabis outfit. With a strong presence in both Europe and Canada, Tilray has announced plans to enter USA legal cannabis market.

The next big prize is the United States,”

Tilray CEO Brendan Kennedy

2. Amazon (AMZN) support for cannabis

Amazon announced in its blog last week that it supports federal cannabis legalisation efforts, and called for other companies to do the same. The e-commerce giant will also no longer need a marijuana drug test for new job applicants. The news certainly sent weed stocks flying up. Sundial Growers is up 11.5% since the news, while both Aurora and Canopy rose upward right after the news. Investors can rest assure that cannabis reform will make it easier for weed companies to do business, and boost demand for recreational weed.

3. Media coverage with a guest appearance from r/wallstreetbets

The 4 billion dollar merger, the MORE Act, and Amazon coming out to support legal marijuana have created a lot of hype in both mainstream and social media. Despite the low chances that the MORE Act is passed by the Senate, increasing media coverage is likely to attract the attention of the average retail investor. Tilray was also the most mentioned weed stock on WallStreetBetsover the week, and overall seventh-most mentioned on the subreddit during this period.

AT 19.72 USD per stock, we see Tilray (TLRY-NASDAQ) as the quintessential weed stock to buy for both short term (25 USD target) and long term hold.

DISCLAIMER- The author is not sponsored by TILRAY or any of its subsidiaries.

DISCLAIMER-This is not financial advice and the article is a blog piece analysing the positive outlook of TILRAY.

Leave a Comment

Shopping Cart