Tilray Inc. (Nasdaq: TLRY) was the first cannabis company to go public on a major U.S. exchange.
But even though that happened only two months ago, it's old news.
It's Stone Age news.
Here's the current news.
Over the past five days, this stock is up 92%. Over the past month, it's up 496%.
The company went public July 19, at the price of $22 per share. It closed yesterday at $214.06. That means Tilray has skyrocketed 873% since its IPO.
Speaking of yesterday, it was a wild ride. Though the stock finished the day up 38%, it approached triple-digit gains for the day at one point – and then fell sharply. Along the way, trading got halted five times due to volatility.
This most recent bout of big gains started early this week after the British Columbia–based company got the go-ahead from the U.S. Drug Enforcement Agency (DEA) to ship marijuana to the United States for a clinical trial. Right after the news broke, Tilray's shares surged 12% overnight. By the end of the day, they had risen 30% in 24 hours.
As I write this, Tilray's market cap is $19.94 billion. This can no longer be described as a "tiny cannabis company" – and neither can many of its Canadian competitors.
This is a first. And a big one.
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Marijuana remains illegal at the federal level, and so the feds have had a historically stingy attitude toward marijuana – and they make no exceptions for research projects.
Until now, only the National Institute on Drug Abuse could provide dried-flower cannabis for such investigations. Dried flower can only be smoked or vaporized, meaning there was no way to control the dosage, and no way to measure the health implications of smoking the plant versus simply consuming it.
But now the DEA is allowing Tilray to export encapsulated medical marijuana, with precise doses and formulations, to the University of California, San Diego, for clinical trials.
In other words, Tilray has busted through a door to U.S. medical research that was previously closed, locked, and barricaded. So you should expect to see more opportunities from cannabis companies at the forefront of medical research cropping up.
And where there are opportunities, there's a straight path to profits.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.