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Although Tilray publishes the kind of quarterly sales figures that Wall Street expects on Monday, the marijuana company's shares will trade with a tenfold annualized turnover.
Tilray Stock (TLRY) was one of the most volatile cannabis stocks in an unstable sector. Trading at about $ 72 a share on Friday, his multiple of sales is one of the reasons why Jefferies analyst Owen Bennett rated Tilray at Underperform.
The BC-based company has struggled to put its product on the shelf in Canada since the country legalized sales of marijuana for recreational purposes in October. Unable to produce enough cannabis, Tilray sought out third-party suppliers, but indicated in its September report that the quality of external supply was disappointing. Thus, during the conference call on Monday, set at 17 hours. E.T. – investors will want to know more about Tilray's supply plans.
Read our recent cover story: You have to be high to buy American marijuana stocks
Tilray also announced a number of deals that will be of interest to investors. After the United States legalized hemp in December, under the 2018 Farm Bill, Tilray agreed to buy Manitoba Harvest, one of North America's largest producers of hemp food products. Cannabis companies have high hopes for hemp, a cannabis strain that does not contain THC, a very buzzing chemical, but a lot of soothing ingredient known as CBD. So, Tilray will surely discuss his CBD ambitions during Monday's call.
All in all, Tilray fans will likely receive the news on Monday, affirming the long-term ambitions of the company. But skeptics will look for a substance that could justify the bubbling valuation of the title.
Write to Bill Alpert at [email protected]
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