Is Marijuana Stock Tilray on the Verge of Collapse?
Shares of Tilray (NASDAQ: TLRY) fell more than 10% on Friday, after an analyst said investors should bet against the struggling cannabis company's stock.
Vertical Group analyst Gordon Johnson thinks Tilray's second-quarter report was "an unmitigated disaster." Soaring costs resulted in a net loss of $35 million, or $0.36 per share, for the Canadian cannabis company.
Worse still, Johnson expects Tilray's operations to burn through $117 million in cash in 2019 and $192 million in 2020. Yet Tilray has only $221 million of cash and equivalents on its balance sheet. Thus, Johnson thinks Tilray could run out of money in the first half of 2020.
Source Fool.com
