Tilray (TLRY) Stock: Does The Recent Fall Offers A Good Buying Opportunity?

Canadian cannabis company Tilray Inc (TLRY) is among the bigger players in the cannbais industry, however, the company’s stock dipped during the month of May and according to information from S&P Global Market Intelligence, the stock dropped by as much as 26% during the month. In this regard, it is important to have a closer look at the company’s recent performance.

Tilray’s Stock: Wild Move

After Canada’s legalization of recreational marijuana the company’s revenues skyrocketed and jumped by as much as 195% to reach $23 million. In addition to that, the company also made a key acquisition in the form of Manitoba Harvest, a company that is engaged in producing hemp-based food products and that will definitely allow it to venture into a new space with ease.

Brendan Kennedy, the Chief Executive Officer of Tilray, stated that the company is in the process of integrating the acquisitions that are had made recently and wants to start operating in the United States soon. All this seems like positive news, but the stock went in a completely different direction last month.

The company’s losses continued to mount. While its revenues have grown, its losses mounted as well. In Q1 2019, the company recorded losses of $25.2 million and that is a significant rise from $5.2 million in the year-ago period. In addition to that, the growth of sales in Canada has not been particularly impressive and the Tilray’s failure to control costs has also been one of the bigger reasons behind the company’s struggles. Consequently, the margins have shrunk considerably as well.

Big Move Overseas

In the middle of this significant churn that the company is going through, Tilray has decided to pivot in an unexpected way and has decided to make a big move overseas. While the move into the United States market is a sensible one, considering the fact that it is the most lucrative cannabis in the world, it is surprising that the company is simultaneously making a move into Europe.

Considering the fact that Tilray is struggling to manage its costs, the timing might not be please many of the company’s investors.