Is this year? Tilray brands(Nasdaq: tlry) Finally, her return begins? During the past five years, the company has left wider shares because the cannabis industry, where it is a pioneer, is still much lower than expectations. However, Tilray Brands has caught fire this year, and during the past six months, the stock has risen by more than 150 % (as of October 2). However, stocks are still in the shares area and are currently trading of about $ 1.65 each.
If Tilray can maintain this year’s momentum until the end of the contract, then those who miss this opportunity to invest in stocks may regret it in the future. Let’s see if there is more bullish trend of TILRAY brands.
Photo source: Getty Images.
TILRAY work extends over many industries, including medical and entertainment HashishBuy and resell pharmaceutical products, cannabis well -based wellness products, and the company’s handicrafts. Tilray also operates in many countries, including Canada (where its headquarters), the United States, Germany and others. However, the company’s greatest chances in the United States may lie, especially if hemp is legalized at the federal level, which it hopes to be.
During the past six months, TILRAY shares have increased specifically due to optimism about the legalization of American marijuana. The latest signs of possible developments came directly from the White House. In August, President Donald Trump said that his administration was considering reschedule hemp from table 1 (the most dangerous category) to Table 3 (materials with medical uses, but with risks). Although this is less than a complete legalization, it may still move the needle for the industry.
Recently, Trump posted a video on social media that strengthened the alleged health benefits of the Convention on Biological Diversity. Wall Street is very excited about these developments, and Telri’s shares He jumped on this news.
The entertainment use of cannabis was legally in Canada since late 2018. The shares of the leading utensils in the country increased as a result of this achievement, as investors rushed to benefit from what they believed would be a huge and continuously growing market. Things did not turn this way. Although hemp had been codified in Canada, the market opportunity was not what many expected.
First, the market was saturated. There were many companies competing for the market share. This competition created the abundance of the show. Second, despite the hemp, he remained under strict organizational supervision. The process of obtaining the appropriate licenses to operate and sell cannabis has slowed the market progress. Third, old habits die heavily. Many people who were buying hashish illegally for a long time continued to do so, although it became legal.
The illegal market is dramatically. According to one of the studies, medical cannabis sales accounted for 11.8 % of the market before legalization, as illegal channels acquired 88.2 %. As of 2023, illegal sales decreased to 24.3 %, which is a significant decrease, but this still means that about a quarter of each dollar spends on cannabis in the country is of illegal treatment.
This is still a meaningful amount. All of these challenges have been weighed on Tilray and their peers in this industry. Tilray has achieved inconsistent financial results (at best) because of these opposite winds and others. For this reason, the company has lost most of its market value during the past seven years.
Of course, if the United States gives legitimacy to hemp at the federal level, things may go differently for Lilry. But this greatly depends on the details of this virtual development. Will retailers need to obtain appropriate licenses? How will this process look like? Will there be special taxes for hemp products sales – similar to those on alcohol and tobacco – at the federal level?
These factors (and others) will affect the market opportunity. As in Canada, Tilray may have to face intense competition, perhaps one of the large companies with great experience in the markets of highly organized products, such as tobacco and alcohol.
And while we continue to speculate, there is nothing that does not guarantee that the Trump administration will already give cannabis. For this reason, Tilray remains a speculative play at this stage. Investors should avoid stocks.
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