Tilray stock
Cannabis

Is Tilray Stock (NASDAQ:TLRY) About To Squeeze The Shorts?

One of the keys to successful trading is finding momentum before it happens. One way to do this is look for stocks where a high percentage of the float is short. Our subscribers just caught the big move in Aurora Cannabis stock after we called the bottom and the shorts got squeezed. The next pot stock that we think is going squeeze the shorts is Tilray stock (NASDAQ:TLRY).

The short squeeze potential in Tilray stock is even greater than what happened in Aurora Cannabis stock as 29.68% of Tilray’s float is shorted. This compares to 17.07% in Aurora Cannabis, which just saw its stock almost quadruple from the lows. A similar move could be building in Tilray stock. As you can see from the chart below, there’s a lot of runway for Tilray to go higher.

Tilray Stock Daily Chart

About Tilray Stock

First up, here’s a little background info on Tilray stock for those that aren’t familiar with the company. Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and consumers in 15 countries spanning five continents.

Cost-Saving Measures

Tilray is closing High Park Gardens, licensed cannabis greenhouse located in Leamington, Ontario. The facility closure is expected to yield $7.5 million in annualized net savings as part of global cost-efficiency and restructuring measures to achieve profitability and grow revenues. Tilray said tha tHigh Park Farms and High Park London remain core to Company’s growth strategy in the adult-use market in Canada. Brendan Kennedy, Tilray CEO, said:

“The decision to close a facility is never easy but we are confident that this will immediately put Tilray in a better position to achieve our goals of driving revenues across our core businesses and working towards positive adjusted EBITDA by the end of 2020. We are very confident our existing operations team will continue to serve our valued patients and customers with no interruption. On behalf of myself, the rest of our executive team and our colleagues across the organization, I’d like to extend my sincere gratitude to the team at High Park Gardens for their contributions to Tilray and High Park.”

Tilray Stock Receives Complete GMP Certification at EU Campus

Tilray has established sales and distribution arrangements to supply medical cannabis through major pharmaceutical distribution channels throughout Germany and other European markets. These arrangements allow patients in need to access Tilray’s finished medical cannabis products. New licensing expands company’s international export capacity to serve authorized medical cannabis markets. It also provides authorization to complete medical cannabis extraction on-site and the production of bulk extracts to manufacture medical cannabis oil as a finished product. The certification signals another milestone for EU campus as Tilray’s international medical cannabis hub. Sascha Mielcarek, Tilray’s Managing Director in Europe, said:

“This is an important milestone for our strategic growth in the international medical cannabis market. Our third GMP certification will enable us to manufacture more products at our facility and export a greater range of medical products to international patients, partners and markets. As demand increases around the world and more legal medical cannabis markets emerge, Tilray’s EU campus is ready to serve more partners and patients across the EU and other international medical markets.”

Bullish Cannabis News

Last week, Statistics Canada reported that cannabis sales skyrocketed in March. Bank of America also came out with a Buy rating on industry giant Canopy Growth Corp (NYSE:CGC). In addition, the NY Post was out with a story that a team of Canadian scientists believes it has found strong strains of cannabis that could help prevent or treat coronavirus infections. All of this has contributed to the bullish enthusiasm surrounding the pot sector.

Sentiment Change

Anyone that has traded cannabis stocks for as long as we have here at Insider Financial knows that the cannabis market is a boom/bust type of market. Either things are really good for cannabis stocks or they really suck. It’s either a bull or a bear market. No in between.

In addition to strong quarterly numbers, Green Thumb Industries Inc (OTCMKTS:GTBIF) blew the lid off its quarterly numbers. Revenue of $102.6M (+267.6% Y/Y) beats by $10.19M. This is a big beat on pretty impressive numbers in a beaten down sector, growing at a time when others go bankrupt, we MAY be on the verge of the cannabis resurgence 2.0. This week Trulieve Cannabis Corp (OTCMKTS:TCNNF) and Curaleaf Holdings Inc (OTCMKTS:CURLF) report earnings as well. Strong reports from those two giants can lift the entire sector higher.

Bottom Line

Currently trading with a market cap of $1.25 billion, Tilray stock is an exciting play in pot land. We believe overall market sentiments have changed and we are about to embark on a new epic bull run for cannabis names. With its market-leading position and top-quality assets, Tilray looks set to lead the way. Tilray stock is one name that belongs in every cannabis investor’s portfolio.

Good luck to all (except the shorts)!

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Disclosure: We have no position in any of the stocks mentioned and have not been compensated for this article.

Image by gate74 from Pixabay

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Is Tilray Stock (NASDAQ:TLRY) About To Squeeze The Shorts?
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