The Weekly Buzzing Stocks by Billy KawasakiTilray Inc.TLRYTOP PICKOct 07, 2021
The medical marijuana space is looking good according to Larry Berman. Legalization is expanding in the US. There will be volatility so sell into strength. Social media mentions have increased 7% in the past 24 hours.
Are diversifying away from cannabis into alcohol which diversifies their revenues. They bought Hexo. Interesting company. Also, they hold a lot of cash which will allow them buying more companies.
In past years, executives were lavishly compensated. He owns no cannabis stocks. Have been hopes that the Democrats will decriminalize cannabis and is unlikely to happen. So, these businesses are stuck in no-man's land. For instance, they can't deduct rent from expenses, or can't get bank loans.
It reports Friday. He expects them to make a bold announcement about the U.S. legalization of cannabis. Shares are so low. For once, this could be a decent spec buy.
Bullish on medical marijuana. We will see legalizing banking in the US for the sector. There will be volatility. He sold into strength. Likes it here. Has lots of upside potential.
It will be a big industry that will be huge in the future. There is still 30%-50% upside in the future. The question should be whether you would add new money or not. If you do not want to , it is time to cash out.
He would not buy this. It collapsed from $350. Not the story he invests in. A long term story, hopefully with another couple years of losses yet to come. Too risky for him.
There is some downside pressure on HMMJ-T. At the $14 or $17 range there is resistance. Who knows what the effect would be if the government changes in October. [Caller asked about TLRY] He sees $34 as a target on TLRY-T as there is nothing to hold it higher.