Current market cap: over $20 billion. Current quarterly revenues: under $10 million. Float: a measly 17+ million shares. Borrow rates: over 500% right now.
Lots of momentum × tiny float = crazy market cap + crazy borrow rates.
https://finance.yahoo.com/quote/TLRY/options?p=TLRY
The stock moved up so much today that you can't see any calls that are out of the money or puts that are in the money on the main page of options on yahoo finance... (as of 3:16 PM ET)
> Citron Research said it remains short on Tilray, calling the stock’s surge “beyond comprehension” in a Tweet Wednesday.
and
> Tilray jumped as much 55 percent to in New York Wednesday to $240, giving it a value of more than $20 billion, higher than American Airlines Group Inc
Q2 revenue up just a touch from Q1, but losses have doubled. Of course this could be growth spending.
Up 60% today, which is absurd.
I don't see any possible way for the fund to actually make use of the "value" here. It's just a pumped stock that's had trading halted 3 times in the past hour or so. They wouldn't be able to sell without crashing the price and I highly highly doubt price is going to remain so high over time.
There was a Canadian VC that was banned for life at the US boarder for investing in a US cannabis company. Wonder if these guys will have problems.
Personally, this is starting to look like a pump scheme.
Which is weird...
Because Tilray supposedly has a decent business (just Google "seekingalpha Tilray"). But the price action to date has been (as others have noted) nothing short of insane. The CEO has been on a press tour the past few weeks which culminated in an interview on CNBC, and he's yet to even reference the stock price. Another commenter mentioned the craziest part, "You can't even buy $TLRY call options that are out of the money as of today" - meaning, absolutely 0 people foresaw the price action going this crazy.
Why let it get this out of hand? It's a legit business doing legit business? Why do they need the stock price at these insane levels? The resulting burst of this bubble is only going to hurt the retail investors, and cannabis stocks in general (at least short term). Obviously my first answer is the ol' Jordan Belfort pump and dump, but outside of just pure greed, it seems Tilray hardly needs this to happen.
I also learned via Bloomberg that the Tilray CEO, is a leading partner in the (private equity) firm that owns 75 million shares of unlisted Tilray stock. Which makes me wonder if he's working for Tilray, or for private equity (still).
Something is just very, very fishy about this to me.
> “Our long-term vision is if a patient walks into any pharmacy in any country in the world that has legalized cannabis that patient should be able to obtain a Tilray product. That’s our global goal,” Kennedy said in an interview this week from New York.
Hopefully this doesn't signal the beginning of cannabis consolation. It's possible that the market will follow the model of the beer market, where a few large companies have bought out numerous microbrewers.
The news about Tilray today made me think about XRP or Ripple last year when it spiked to $4
I am actually surprised the Feds allow the stock to be traded on a US exchange. I would think that there may be some regulations on the money raised (e.g. during an IPO) and transferred out of the country based on their industry.
The price will crash even if he sells a tiny amount of it.
How much can he get out from this? any way to hedge his exposure to this until lockup expires?
He better sell it quick!
I guess the "Thiel-backed" bit in the title worked as clickbait. It's not like Thiel had foresight, the Privateer people did.
Or to extend it further, it's not like Privateer had amazing foresight either.
Someone please explain this: Revenues in 2017: ~$21M, loss: $7.5M
But, market cap: $27B
Why?
So, is Thiel going to be in trouble for this or is that threat only for small investors?
http://fortune.com/2018/09/14/canada-cannabis-ban-us-border/
I know this is somewhat tangential to the story, but with now it looking like there will be a bunch of newly-minted billionaires in the burgeoning cannabis sector, I can't help but think of all of the (largely poor and minority) people whose lives were ruined by marijuana charges.
It's just kind of fascinating to me how we reserve the terms "drug dealer" mainly for (again, largely poor and minority) illegal drug sellers, but that very word "drug dealer" conjurs up more than illegality, but a real moral judgement that these are "bad people". But if you're rich and pulling on the levels of power to do it "correctly", you are a forward-thinking entrepreneur.
Not really sure what my point is in posting this, but just I guess as a reminder that how we even talk about morality is subtlely guided by the structures of society that are not "right or wrong" in and of themselves, but just how powerful people set things up to benefit them.