Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis.
The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada.
We see the company as something approaching a catastrophe for investors in terms of actual fundamental model and path analysis. It’s a giant pile of hype and convertible debt. Technically, the stock has been racing to the downside for nearly a year after the short-squeeze fever pitch parabolic moved topped last fall at exactly $300/share.
It has already lost 90% of its value from that point, and the trend continues to point lower following a disastrous Q2 report that featured a much larger bottom line loss than expected, with the culprit being the worst possible factor: debt-servicing payments on long-term convertible debt. That will likely be hanging on the company for years to come.
International Spirits and Wellness Holdings, Inc (OTCMKTS:ISWH) is a refreshing alternative to TLRY because it sits at much cheaper levels… It’s a sub-penny stock. We normally wouldn’t cover the sub-penny plays, but this is interesting.
The company just posted its first real revenue quarter this week (data for quarter-ended June 30), posting solid results with a massive 6,400% sequential quarterly top-line growth number.
According to the company, that growth came on the back of its new and emerging home healthcare segment – this is a bit of pivot play. But the company has a partnership deal apparently in the works that will push its CBD segment onto the stage for coming reports as another growth driver for sales.
“Now that we are recognizing revenues from our Home Healthcare segment, shareholders will be pleased to see robust signals in terms of new top-line growth,” commented Terry Williams, ISWH CEO. “The product mix is very strong looking ahead, with our CBD product lines in place, the Home Healthcare segment showing robust tangible growth, and our award-winning spirits segment continuing to represent enormous potential.”
We would also note that the company appeared to hint toward another big q/q sequential growth performance underway in the current quarter, which could spark plenty of interest in shares if the news gets around.
It may be one to watch this week.
Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products.
Shares of the stock have been in correction mode over the past 5 months, but are now beginning to test some extremely interesting levels. The zone from $10-13/share represents potentially important support, marking the region that gave rise to the stock’s parabolic advance from November to February, where we saw shares push as much as 150% higher in a matter of weeks.
In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).
The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week after falling over recent months.
Cronos Group Inc (NASDAQ:CRON) pulled in sales of $6.7M in its last reported quarterly financials, representing top line growth of 768.7%. In addition, the company has an extremely strong balance sheet, with cash levels far exceeding current liabilities ($2.3B against $0).
