In full disclosure, when I first read that Canadian cannabis company Tilray was going public on the Nasdaq, becoming the first cannabis IPO on the U.S. Stock market and just the third such company even listed on a major U.S. stock exchange, I made it a point to buy a few shares on its opening day. I’m not a stock market expert by any means, so I’m not advising anyone to make any purchases of Tilray or any other stock. However, how Tilray and other marijuana-related stocks perform is very relevant to the cannabis industry, so I’ll be blogging about the highs (pun intended) and lows these businesses experience. After its first few days on the Nasdaq, Tilray has been a big winner as Seeking Alpha reports:
Tilray Jumps 75% in Two Days Post-IPO
The last major Canadian cannabis company Tilray (TLRY) just officially debuted on the Nasdaq, marking the first IPO on a major U.S. exchange by Canadian cannabis companies. Tilray has long been one of the most anticipated IPO in the cannabis world due to its long operating history and early involvement of private equity. Tilray chose to list in the U.S. instead of Canada in order to attract higher quality investor base including institutions. The majority of Canadian-listed cannabis companies are held by retail investors which made trading more volatile and short term in nature. Tilray has its eyes set on the big prize and has taken its time to execute and raise capital. Clearly, the listing was a huge success and investors are all over it. However, despite our great enthusiasm for Tilray, we would caution investors against buying now due to the high risk of a major pullback. We can’t predict the market but believe the 75% jump is a bit too much and involves some level of speculation. We plan to publish a detailed analysis of Tilray this week.
Anyone thinking of investing in Tilray should definitely do their due diligence. It will be interesting to see how the stock performs when early major investors sell off some shares to make a profit off of their initial investment and big news events, such as when Canada officially legalizes cannabis commerce October 17th or other nations open up to cannabis exports from the Great White North. No matter how well Tilray ends up doing, and I’ll have to admit that I would rather not lose my humble investment in the company, we’re likely to see more and more cannabis companies listed on major exchanges around the world was the legalization movement continues its success.
Want to know about cannabis stocks or any other potential business venture in the burgeoning industry? Then the International Cannabis Business Conference is the event for you. Next up, the ICBC is headed to beautiful Portland, Oregon, on September 27th-28th. Don’t miss this excellent opportunity to learn the latest and network with top investors and entrepreneurs from around the globe. Get your tickets by September 12th to save $200!