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What happened
Actions of Tilray, Inc. (NASDAQ: TLRY) jumped today, up 15.3% at 10:55 EDT, after the Canadian marijuana producer announced earlier in the morning that it was exporting medical cannabis to three hospitals in Australia for help seriously ill children with epilepsy.
So what
Does the news that Tilray exported medical cannabis to Australia justify the rebound of the action today? The announcement was not really new for Tilray. The company has already shipped medical cannabis to Australia, its first export going back to March 2017.
Source of the image: Getty Images.
Arcview Market Research and BDS Analytics estimate that the Australian medical marijuana market will generate only $ 3 million in sales this year and $ 48 million by 2022. This is not enough to get Tilco.
So, what's really happening with the Tilray jump today? We are likely to see continued volatility as a result of a short tightening that increased the marijuana stock by more than 830% between August 1 and September 19, and after the short tightening of prices, which lasted three days before rebound on Tuesday.
Now what
The best thing for investors to do is sit back and breathe deeply. It is best to stay away from Tilray while the wild race continues.
In the long run, Tilray is expected to have strong business prospects as medical and recreational marijuana markets around the world expand. However, the big movement of the stock today is further evidence that Tilray remains too difficult to manage for long-term investors. Do not be surprised if the actions go up and down erratically for a while.
Keith Speights has no position on the titles mentioned. The Motley Fool has no position in the stocks mentioned. Motley Fool has a disclosure policy.
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