Almost exactly a year ago, a small Canadian cannabis company was generating a lot of buzz (sorry, couldn’t resist the pun). Despite trifling quarterly revenue of US$9.7 million, Tilray Inc.’s (TLRY:UN) market capitalization got so high (sorry again, I’ll stop) that it briefly eclipsed that of major companies people have actually heard of, such as American Airlines Group Inc. (AAL:US).
The boom quickly faded — not surprising, given how senseless it looked even in the moment — and Tilray’s stock has continued to decline. And the cannabis sector has also stumbled recently.
But this dampened enthusiasm for marijuana stocks does not necessarily reflect fading prospects for the marijuana market, which still has promise. Instead, it is related to short-term challenges associated with a bumpy rollout of legal marijuana in Canada, which are making it hard for winners to quickly emerge.
– Read the entire article at BNN Bloomberg.