The Next Coronavirus Play You Need to See
Here’s a lockdown impact that you may not have predicted…
According to Bloomberg, cannabis use reached an all-time high in March amid lockdown measures.
And no wonder…
With more than 17 million Americans now unemployed – and under quarantine – it’s logical to think that a large majority of this group will decide to just sit around and smoke some pot.
Never before have more people in the U.S. had this much free time – with nothing to do.
Oh, and give them an extra $1,200 – thanks to Uncle Sam – and the appeal of increased cannabis use becomes even greater.
This is why I’d like to bring Tilray (Nasdaq: TLRY) to your attention today…
As you probably know, Tilray engages in the research, cultivation, processing and distribution of medical cannabis. It offers its products to patients, physicians, pharmacies, governments and hospitals all over the world.
At one point at the height of the cannabis bubble, Tilray traded for $300 per share.
But then, in one of the most stunning reversals you’ll ever see, it traded down to $2.50 per share. Right now, it’s trading just below $7.
Just look at this massive price swing…
Action Plan: Here’s what I find interesting…
Right now, even after this massive fall, 47% of Tilray’s float is still currently sold short. This means that there could easily be a short squeeze in play that takes it up to $10 (or higher) pretty quickly.
If cannabis popularity (and usage) continues to rapidly grow amid the lockdown, this just might be the trigger to extend the upside for Tilray. You may want to dip a toe into the water on owning some shares at these levels.
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