A Marijuana Venture Capital Firm Has an IPO
If you were watching the market yesterday, you may have noticed the complete lunacy on display as shares of Tilray breached $250 per share. It’s almost impossible to fathom such irrational exuberance. When the company CEO sat down on CNBC’s Mad Money recently, talking about his company reaching a $100 billion market cap, people must have actually interpreted that as solid investment advice. Just to put this share price increase into perspective, at yesterday’s peak, Tilray was more valuable than any of the below companies:
- Best Buy – Sold $39 billion of technology products, services, and solutions in 2017
- Hershey Company – Sold $7.5 billion of confectionery products in 2017
- Tyson Foods – Sold $38 billion of chicken, beef, pork, and prepared foods in 2017
- Stanley Black & Decker – Sold $12.7 billion worth of tools and storage, accessories, and security solutions in 2017
- Nasdaq Inc. – A financial exchange that cleared nearly $4 billion in 2017, and ironically, the same exchange Tilray trades on
Compare those numbers with the $20.5 million in revenues that Tilray managed in 2017 and you can get some idea of how much this stock is being driven by hype.
We recently penned a piece titled “Buying Marijuana Stocks in 2018 – Is it Too Late?” in which we talked about how there’s probably going to be a correction soon. We also talked about how “experienced investors could try and play the short side of the trade now, but it’s not a good idea to bet against irrational people who are stoned out of their gourds.” You can almost feel the pain of shorts like Citron, who scratch their heads and wonder just how dumb the herd
