• Cannabis stocks with a weak 2022
• Jim Cramer thinks Tilray is a buy
• Strong positioning in the US market
Tilray stock has lost a good 48 percent in value over the year to date. This was due to – in addition to a broad market weakness – the extremely disappointing business development of the company. In the first fiscal quarter, the company not only continued to write red figures, but even increased its losses. The development of sales did not convince analysts and investors either: sales fell from 168.0 million US dollars to 153.2 million US dollars and were thus below the forecasts of market experts.
Jim Cramer sees the bottom hit
Entry prices have now been reached for former hedge fund manager Jim Cramer, who scrutinizes the stock market in his show “Mad Money” and gives investor tips. “Ultimately, you’ll only be sorry if you don’t buy anything during the big sales,” the expert recently said on his show. “However, when the market is finally oversold enough, you have to strike”.
Tilray is targeting the US market
One of the reasons for the confidence in Tilray’s price development is likely to be recent legalization efforts in the United States. There, US President Joe Biden not only promised to take action against the criminalization of cannabis, but also announced that he would pardon “all previous federal offenses of simple possession of marijuana” and that governors were called upon to treat state possession offenses in the same way.
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While legalization of the U.S. market is not yet on the horizon, the U.S. government’s moves are giving cannabis companies and investors hope. Tilray could be one of the biggest beneficiaries then, as the company has established a strong foothold in the U.S. market. Using a debt deal, the Americans bought into MedMen Enterprises, a distribution company with a number of stores across the United States. The acquisition is “a critical step in achieving our goal of enabling Tilray to lead the US market once legalization permits,” said Tilray CEO Irwin D. Simon.
The purchase of the Montauk Brewing Company, which Tilray announced a few days ago, is also intended to strengthen the company’s position in the important US market. The New York brewery sells its products through 6,400 outlets and is set to complement Tilray’s roster of alcohol and beverage brands, which includes Breckenridge Distillery, SweetWater Brewing Company, Green Flash and Alpine.
Tilray would be well positioned in the event of cannabis legalization in the United States, so combined with the current low share price, the company is an investment for stock market expert Cramer. “Your time has come… I say buy Tilray,” the Mad Money host said.
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