Tilray Brands Is Pulling Back – New Cannabis Ventures

You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news.

Friends,

Tilray Brands reports its Q1 on Wednesday. The stock, the worst-performing member of the NCV Global Cannabis Stock Index in September and now down 11.2% year-to-date, is very overvalued. With a $1.7 billion market capitalization, the company is still very significant to the cannabis sector, though it operates mainly outside of cannabis.

After the Q4 report in late July, the stock shot up when the company reported better-than-expected revenue. It left a gap from the $1.72 high the prior day, trading as low as $1.90. It traded subsequently to as high as $3.40 in early September:

The analysts are expecting Q1 revenue to rise 14% from a year ago to $174 million, a 5% sequential decline. Adjusted EBITDA is projected to fall about 50% sequentially to $11 million, down 16% from a year ago.

The Q4 report wasn’t so great in our view, and this quarterly report will not excite investors unless it beats again. The stock extended its rally when investors became more interested in cannabis stocks after the potential rescheduling of cannabis came out in late August, but the stock has actually declined slightly since that news. We believe that Tilray could post a new all-time low and suggest readers consider alternative Canadian LPs.

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New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:

Exclusives

The Global Cannabis Stock Index Wins Again in September

Capital Raises

Aurora Cannabis Sells 46.25 Million Shares at C$0.73

Curaleaf Sells Stock at C$6

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View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Sincerely,

Alan & Joel

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email