The green rush is nearly upon us. In just 15 days, on Oct. 17, the green flag will wave in Canada, marking the official start of recreational marijuana sales in licensed dispensaries. Despite being a long time coming, the legalization of adult-use weed in Canada should yield billions of dollars in added annual sales for the industry, once it’s fully ramped up.
This large expected influx of demand, and the belief that pot stocks will be rolling in the dough, has sent marijuana stock valuations through the roof in recent months. But no marijuana stock has caught fire to the extent of Tilray (NASDAQ:TLRY), which has only been a publicly traded company for about two and a half months after pricing its shares at $17…
In September, shares of Tilray tripled in less than three days, hitting $300 a share on an intraday basis, and peaked at a valuation of $28 billion, making it briefly worth more than widely followed companies such as Twitter and CBS. In the days that followed its rapid ascension, Tilray would lose roughly two-thirds of its value. It was a ride reminiscent of internet stocks before the popping of the dot-com bubble, and the stock has remained volatile ever since.
However, the grim reality for Tilray and its shareholders is that it could easily lose another 50% of its value, if not more. Here are four reasons investors should be worried about Tilray in the interim and expect further downside…
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