Canada has been leading the charge alongside the U.S. when it comes to marijuana stocks. Although there are a handful of pot stocks on U.S. exchanges, it seems as though the majority of them hail from our northern neighbor. In the current state of the market, it is very difficult to tell if any stocks are buys, let alone pot stocks. This is due strictly to the effects that the coronavirus has taken on the industry. With so much uncertainty surrounding the cannabis industry, the only thing we can do is take a step back and look at a company’s financials.
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In this way, we can avoid the volatility that comes with the coronavirus, and simply view the fundamentals. It may also be wise to avoid trading at this time unless you are a swing trader or someone else who is actively watching the market on a regular basis.
What Trading Pot Stocks is Like In the Current Day
For others, this could be a great time to get into pot stocks as many of the top companies in the industry have fallen in value by substantial amounts. The majority of this market volatility has hit the top of the cannabis industry. The largest companies in the marijuana market seem to be the ones hit the hardest.
This is simply because they have the most exposure to the industry overall. But moving forward, are the big pot stocks still worth watching? Well, there are a few key aspects that have to shift in order for the market to flourish. This includes shrinking down the black market as well as shifting legislation to fit the needs of the market. If these both happen, there’s no telling how far the cannabis industry could go in the next few years.
Pot Stock Spotlight: Tilray
Tilray (TLRY Stock Report) is arguably one of the largest and most fundamental pot stocks in the industry. The company has definitely had its rough patches, but it has worked tirelessly to move past them. For the year, the company is down as much as 90% which is more than substantial. The company currently trades at around the $10 mark which is a big step down from where it was even six months ago. It seems as though Tilray has been hit quite hard by the coronavirus, being one of the largest cannabis stocks in the market. But, the company has one major thing going for it.
Since the massive worldwide lockdown, those in areas where cannabis is legal, have been stocking up on the stuff. This means that in the past few weeks, we have seen an overall demand for cannabis skyrocket. In Canada, where Tilray works out of, the national government has deemed cannabis businesses to be essential during this pandemic. This means that they are allowed to stay open. But, Tilray may not be out of the waters yet.
The company is still working to show the success on its balance sheet, after having somewhat disappointing year-end results earlier in March. But, it’s revenue is more than four times what it was last year at the same time, at around $167 million. If Tilray can manage to decrease the number of losses it is taking on, there’s no telling where it could go in the near future. For now, however, the company remains a pot stock to watch; but a risky one at that.
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