What's happening with cannabis stocks like Tilray?

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If you had bought 100 shares of Tilray, a cannabis production and processing company, when it went public on July 19 at $ 17 per share.^e, you're probably very happy with yourself: when the market peaked on Thursday, these shares were worth $ 300 each, which means your investment of $ 1,700 was worth $ 30,000. It's a good return on a two-month investment.

Today, it seems that some of the magic of this week has disappeared. At the time of publication, the share price was $ 176.35 per share, which could mean significant losses (or modest gains) for those who were late. We may not have seen the end of Tilray's volatility. But to be fair, it is also possible that we did not see its summit.

However, those who focus solely on volatility are missing the forest for trees. What matters most is that the trends over the last few months have been consistent. The Canadian market, spurred by companies like Aurora Cannabis and Canopy, shows us that marijuana continues to grow as it crosses major industries, enters new markets, and gains credibility with large companies.

In other words, if you plan to take advantage of cannabis in your investment portfolio, follow not the market, but market players such as Coca-Cola, the beer industry, and the research and development needs. development. The first Tilray investors may have enriched this week thanks to the instability of these market players.

On Tuesday, Tilray shares jumped 29% to a new high after the Drug Enforcement Administration (DEA) put forward a plan to allow Tilray products to be shipped to the US for medical research and testing. clinics. This alone was a success, as research on cannabis products has been heavily regulated and incredibly limited for decades due to its designation in Appendix I.

This is also, I hope, the first of many initiatives in favor of R & D or legislative developments that could advance the market, such as the Congress Action on Bipartite Legislation such as as the law on the collection of marijuana data. and Carlos Curbelo (R-Fla.).

On Wednesday, the stock rose again after Brendan Kennedy, CEO of Tilray, told CNBC's Jim Cramer that investors in pharmaceutical companies would be well advised to invest in cannabis companies to "offset cannabis substitution."

There was also news this week that Coca-Cola was in "serious talks" with Aurora Cannabis to develop a line of cannabis-infused drinks designed to relieve pain and anxiety. Although they were quick to point out that they were only interested in the potential of non-psychoactive CBD as an ingredient in wellness drinks, they followed Molson Coors. Brewing Co. and Constellation Brands, manufacturer of Corona and Modelo. make their own moves in the industry.

And, of course, Canada's national legalization for recreational use of cannabis is expected to occur in less than a month starting October 17.^e, opening vast new markets in the second largest country in the world by size. Tilray's Kennedy sees this as the beginning.

"There is an obvious global growth opportunity in medical cannabis," he told Cramer. "With Canada, we are on the brink of 100% growth: one country, Uruguay, in two countries, Canada. What intrigues me, is the country three, four, five and six.

Kennedy added, "I think you'll see the third country in the 12 months of October and that's where the real opportunity lies. It's not Canada, but all the countries that follow. "

In other words, as we have seen in the United States, legalization around the world can have a domino effect, as countries see their neighbors adopt legalization and do not want to miss out on income opportunities. do the same. For gaming companies and investors who want to support them, the future could be bright.

Make no mistake: there are still risks in this market. Look no further than Jim Cramer, who said Squawk in the street that buyers of Tilray could make money in the short term, the risk was not worth it. He said there was nothing in terms of company fundamentals or industry trends to justify this decision.

The history of cannabis in the United States is long and fraught with errors and misinterpretations, which has created a stigma that still persists today. But when big players throw their hats into the ring, these perceptions erode, cannabis becomes slightly more accepted by the general public and, as a result, the risks associated with it diminish.

The listed cannabis companies are still in unknown territory. For values ​​such as Tilray, external forces will have more influence on their forces and overflows than most others. These forces need to be closely monitored, but the fact that they are moving in the right direction is certainly attractive.

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If you had bought 100 shares of Tilray, a cannabis production and processing company, when it went public on July 19 at $ 17 per share.^e, you're probably very happy with yourself: when the market peaked on Thursday, these shares were worth $ 300 each, which means your investment of $ 1,700 was worth $ 30,000. It's a solid return on a two-month investment.

Today, it seems that some of the magic of this week has disappeared. At the time of publication, the share price was $ 176.35 per share, which could mean significant losses (or modest gains) for those who were late. We may not have seen the end of Tilray's volatility. But to be fair, it is also possible that we did not see its summit.

However, those who focus solely on volatility are missing the forest for trees. What matters most is that the trends over the last few months have been consistent. The Canadian market, spurred by companies like Aurora Cannabis and Canopy, shows us that marijuana continues to grow as it crosses major industries, enters new markets, and gains credibility with large companies.

In other words, if you plan to take advantage of cannabis in your investment portfolio, follow not the market, but market players such as Coca-Cola, the beer industry, and the research and development needs. development. The first Tilray investors may have enriched this week thanks to the instability of these market players.

On Tuesday, Tilray shares jumped 29% to a new high after the Drug Enforcement Administration (DEA) put forward a plan to allow Tilray products to be shipped to the US for medical research and testing. clinics. This alone was a success, as research on cannabis products has been heavily regulated and incredibly limited for decades due to its designation in Appendix I.

This is also, I hope, the first of many initiatives in favor of R & D or legislative developments that could advance the market, such as the Congress Action on Bipartite Legislation such as as the law on the collection of marijuana data. and Carlos Curbelo (R-Fla.).

On Wednesday, the stock rose again after Brendan Kennedy, CEO of Tilray, told CNBC's Jim Cramer that investors in pharmaceutical companies would be well advised to invest in cannabis companies to "offset cannabis substitution."

There was also news this week that Coca-Cola was in "serious talks" with Aurora Cannabis to develop a line of cannabis-infused drinks designed to relieve pain and anxiety. Although they were quick to point out that they were only interested in the potential of non-psychoactive CBD as an ingredient in wellness drinks, they followed Molson Coors. Brewing Co. and Constellation Brands, manufacturer of Corona and Modelo. make their own moves in the industry.

And, of course, Canada's national legalization for recreational use of cannabis is expected to occur in less than a month starting October 17.^e, opening vast new markets in the second largest country in the world by size. Tilray's Kennedy sees this as the beginning.

"There is an obvious global growth opportunity in medical cannabis," he told Cramer. "With Canada, we are on the brink of 100% growth: one country, Uruguay, in two countries, Canada. What intrigues me, is the country three, four, five and six.

Kennedy added, "I think you'll see the third country in the 12 months of October and that's where the real opportunity lies. It's not Canada, but all the countries that follow. "

In other words, as we have seen in the United States, legalization around the world can have a domino effect, as countries see their neighbors adopt legalization and do not want to miss out on income opportunities. do the same. For gaming companies and investors who want to support them, the future could be bright.

Make no mistake: there are still risks in this market. Look no further than Jim Cramer, who said Squawk in the street that buyers of Tilray could make money in the short term, the risk was not worth it. He said there was nothing in terms of company fundamentals or industry trends to justify this decision.

The history of cannabis in the United States is long and fraught with errors and misinterpretations, which has created a stigma that still persists today. But when big players throw their hats into the ring, these perceptions erode, cannabis becomes slightly more accepted by the general public and, as a result, the risks associated with it diminish.

The listed cannabis companies are still in unknown territory. For values ​​such as Tilray, external forces will have more influence on their forces and overflows than most others. These forces need to be closely monitored, but the fact that they are moving in the right direction is certainly attractive.