Canadian cannabis grower Tilray is known for being the first cannabis company to have an initial public offering on a US stock exchange, however it has since proven that it has failed to be profitable in competition with the significant number of important segments related to marijuana. By basing the price of their shares on how the cannabis market develops in the long term and not on solid fundamentals, it has become a chain with volatile value internationally.
Tilray distinguishes itself from other cannabis companies by the competitive strategy that makes the difference in its long-term performance, capturing the interest of some investors in its infrastructure dedicated to the production and global distribution of cannabis. It also has an abundant activity of research and development to drive growth and establish itself as a leading medical marijuana company. It is currently in the process of conducting at least 10 different clinical trials in conjunction with different medical centers and universities.
After the most recent trading session Tilray is priced at $8.43, while the company’s stock is registering –63.27% over the 52 week period from the high price and 246.92% higher than the highest low for the same time period, leaving its stock price range in that same period between $2.43 and $22.95 of fixed return. In terms of year-to-date metrics, Tilray’s reported return to the market was –52.89% and revenue was 25.12% quarterly compared to the same period of the previous year, so the total market value of the company is set at $946.93 million dollars, with a total of 1646 employees.
Over the past 12 months, shares of Tilray fell -54.44%. The market capitalization of the shares reached $1.06 billion, with 129.10 million shares outstanding and 66.51 million shares in the current float, compared to the average trading volume of 13.94 million shares, reaching a trading volume of 51,167,627 points on the most recent trading day.
These figures could mean that people who buy shares in the company at this time may face a dilution of their capital, especially if it takes longer than expected to reach the profitability that the company is finding so hard to achieve. While the company’s strategy is to focus on medicinal cannabis products in the European Union segment, it will only be effective in the long term, rather than focusing on pointing out constant trends of reducing costs and increasing revenue.
Tilray has been trading for a short time and has a record high of 104.63 marked on 01/14/19 from which it has not stopped falling to its record low at 3.91 on 09/29/20. The price since September has had a bullish rally surpassing its psychological level of 10 and marking a maximum at 11.60 from which it has created a “cup and handle ” pattern from that price with a rebound at the Fibonacci 78.6% of the range of its last push at 6.26. Currently the price is at 8.53 already with a test of the Fibo level 38.2% at 9.00.
It stands at the Fibonacci 38.2% at 7.58, the moving average of 21-day as well as the Fibonacci 61.8% at 7.40, the 200-day moving average at 6.96, the bullish guideline, and the 100-day moving average daily at 6.16 which is below the 78.6% Fibonacci level at 6.26. The Resistances as well as the bullish targets of the pattern are at the Fibo 38.2% at 9.00, the psychological level of 10 and the levels of the Fibonacci Extension at 61.8% at 10.40, the previous maximum at 11.60 and continuing to rise in the FE100 at 12.99, the FE 127.2 at 14.57 with the psychological level of 15.
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Aldo Weidner Zapien, Market Analyst – HF Office of Education – Mexico
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