Tilray Stock: TLRY Skyrockets Post Landing Supply Agreements, Earnings Report In-Bound

tlry stock price forecast
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Tilray Stock Forecast

With the marijuana industry as strong as it is now, it seems you can pick any marijuana stock and you’ll see fast gains. Of course, that is not the case; all pot stocks are not created equal. That brings us to one of the most successful marijuana companies over the past few weeks, Tilray Inc (NASDAQ:TLRY). Tilray stock is up big and looks like it will only continue to improve.

TLRY stock has soared 46% over the past five days, climbing over 21% on Monday alone.

The company is being bolstered—like a great many other pot stocks—by the massive investment from Constellation Brands, Inc. (NYSE:STZ) in Canopy Growth Corp (NYSE:CGC), but has since supplemented that goodwill with victories of its own.

The most recent came as the company announced a supply agreement with the Canadian province of Nova Scotia, which Tilray will fulfill via its subsidiary, High Park Holdings Ltd. 

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“We’re thrilled High Park will have the opportunity to supply the province of Nova Scotia with a safe, secure and reliable source of adult-use cannabis products,” said Adine Fabiani-Carter, Chief Marketing Officer at High Park, in a statement. (Source: “Tilray Selected by Nova Scotia Liquor Corporation to Supply a Variety of Adult-Use Cannabis Brands and Products,” The Financial Post, August 27, 2018.)

“Our intention is to deliver on the high expectations Nova Scotians have of us by cultivating and distributing a portfolio of world-class adult-use brands and products that will lead the market in quality, excellence and craftsmanship.”

This is the second major supply agreement that the company has signed in the past week, helping set TLRY stock apart from its competition.

The other deal came by way of Ontario, Canada’s most populous province.

The province recently shifted from a public monopoly on marijuana storefronts to private ownership, radically altering how marijuana sales will function in the region.

Chart courtesy of StockCharts.com

As such, Ontario has been signing supply deals with a good number of marijuana companies and many of the heavy hitters, including Tilray.

The Cannabis Retail Store, a government entity, signed a supply agreement with Tilray for the marijuana company to supply the province with a variety of cannabis products for use starting on October 17.

“Our goal is to deliver on the high expectations that Ontarians have of us by cultivating and distributing a portfolio of world-class adult-use brands and products that will lead the market in quality, excellence and craftsmanship,” said Fabiani-Carter in a separate statement. (Source: “Tilray® Announces Agreement with the Ontario Cannabis Retail Corporation to Supply a Variety of Adult-Use Cannabis Brands and Products,Business Wire, August 20, 2018.)

What to Expect from the Tilray Earnings Report 

With the Tilray earnings report coming shortly, I can’t imagine that the numbers will be enough to spur growth.

The stock is already rocketing sky high on the back of the hype surrounding the marijuana industry. Unless the numbers are truly spectacular, I doubt they’ll be enough to encourage more investors to jump into Tilray stock.

The problem is that many of the people getting in on the marijuana industry during the recent rush have been doing so for the future potential of the industry, not for short-term gains.

With more investment deals on the way and marijuana legalization spreading, the future is exciting. But the reality of the current sales is likely to disappoint newcomers to the industry, and that’s why I don’t expect much movement as a result of the earnings report.

I expect the stock value to drop on Tuesday slightly as a result.

Analyst Take

Overall, the Tilray stock forecast is looking very bright as the company completes these major supply agreements.

The company has already seen triple-digit growth since it had its initial public offering (IPO) on the Nasdaq in July, becoming the first marijuana company to do so.

The next major event on the horizon for TLRY stock is its earnings report, which will be released on August 28.