3 Reasons Tilray Brands Investors Shouldn't Assume U.S. Marijuana Legalization Would Fix the Stock's Problems
A big reason many investors think Canadian pot producer Tilray Brands (NASDAQ: TLRY) is worth the risk is because of the potential upside if the U.S. legalizes marijuana. It would open up a large market for the cannabis company, one that could help it drastically improve its revenue growth.
But that doesn't mean it would transform the risky business into a safe one. Here are three reasons marijuana legalization in the U.S. won't solve Tilray's problems.
Tilray has been posting adjusted earnings numbers, but what's much more important for cannabis investors to consider is the rate of cash burn. If a company is using up a lot of cash over the course of its operations, then there's a risk that it will need to issue shares, and thus dilute its existing shareholders and put downward pressure on the stock price.
Source Fool.com
