This week has seen cannabis stocks soar ---- Tilray (ticker:
TLRY) has nearly doubled this week - and is up 1000% since its IPO!
Will Canopy Growth Company (ticker: CGC) be added to the AIM Funds? Follow this blog to obtain the AIM student write-up of CGC and four other stocks click here: September 21st Write-Ups.
To do background work prior to the AIM stock pitch on Friday 9/21,
here is a story published last night by Finimize
about the growing Canadian cannabis story.
The Future’s Green - “Puff puff, pass along this story”
What’s Going On Here?
Canadian
cannabis company Tilray’s stock rose by almost 50% on Wednesday (it’s tripled in value in September). The medical-marijuana maker is now worth
more than American Airlinesand CBS Group, making some investors paranoid.
What Does This Mean?
On
Tuesday, the US Drug Enforcement Administration gave Tilray
permission to export its cannabis to the US for use in medical research.
Tilray’s now testing its products for medical applications in four countries –
potentially encroaching on Big Pharma’s turf, which is worth around $450 billion a year in the US alone. It also has its eye on cannabis-infused consumer products.
Tilray only “went public” in June, and its stock is up 1,000% since then. Cannabis sales in North America were $9 billion in 2017, and forecast to be $47 billion by 2027 (tweet this).
Tilray only “went public” in June, and its stock is up 1,000% since then. Cannabis sales in North America were $9 billion in 2017, and forecast to be $47 billion by 2027 (tweet this).
Why Should I Care?
Marijuana stocks have gotten high as kites in recent
weeks, stoked by news of Coca-Cola’s interest in partnering with Aurora Cannabis over
infused drinks – and Constellation Brands(owner of Corona beer) raising its stake in Canopy Growth last month. Investors have
called Tilray’s stock rally “beyond comprehension”. The value of its shares
is currently over $20 billion, even though it only made about $20 million in sales last year.
The bigger
picture: The next big thing.
Consumer trends are set firmly toward health, with soda consumption
down and people handing in their cigarettes for vapes (cannabis can be vaped, too).
Some millennials prefer to spend their money on experiences – like going out to a bar
with their friends – rather than material things. Maybe weed will be a (potentially healthier) alternative to alcohol
for some. Between pharmaceuticals, beer, cola, and everything else, weed’s got
its fingers in a fair few pies.
The Burning Question?
Will the AIM pitch convince students to add the stock to the portfolio? They will need to weigh the merits of the stock and the ethical issues --- another great example of experiential learning in Marquette's Applied Investment Management program.
