This Is What Investors Should Be Looking At When Tilray Posts Q4 Earnings Next Week

Later this month, Tilray, Inc. (TSX: TLRY) (Nasdaq: TLRY) will report fourth quarter financial results and we expect the market to be highly focused on this.

A few months ago, Tilray completed a mega-merger with Aphria, a leading Canadian and global cannabis operator, and this will be the first quarter to include numbers from Aphria. We are favorable on the growth prospects that are associated with the combined company and believe the business is positioned to be a major beneficiary of the legal cannabis movement.

Although the market initially responded favorably to the merger, the recent trend has been to the downside, and we have continued to closely follow the global cannabis leader. We believe the market will be highly focused on how the combined company performs in the European Union (EU), the United States (US), and Canada.

Prior to the completion of the merger, both Aphria and Tilray had leverage to the US market through strategic acquisitions. In late 2020, Aphria acquired SweetWater Brewing Company and we are favorable on how this transaction will support the growth of the cannabis beverage business once cannabis is legalized in the US. Through the ownership of Manitoba Harvest, Tilray has leverage to the US hemp market and we are favorable on the infrastructure that it has in the US.

In February, Tilray surged higher and the shares traded as high as $67. Since then, the shares have fallen almost 80% and are trading below the $15 level. Although the recent price movements have been mixed, momentum is trending to the downside and this a metric that we are highly focused on.

Despite the massive decline from its February highs, Tilray has a market capitalization that is near $6.5 billion. This makes the global cannabis company one of the most valuable operators in the cannabis sector. With a valuation of this magnitude, expectations for Tilray and we will monitor how the management team is able to drive the story forward and capitalize on emerging market trends.

We believe that Tilray is executing on a multi-national and are bullish on the growth prospects that are associated with it. If you are interested in learning more about Tilray, please send an email to support@technical420.com with the subject “Tilray” to be added to our distribution list.

For the fastest access to data on Tilray, sign up for our free newsletter!

Share

Tags

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Top Stories