Is Tilray Stock In Trouble?
One of the reasons investors are cautious about buying pot stocks is that many cannabis companies aren't profitable. Indeed, there's a danger that some will go out of business. And so when Tilray (NASDAQ: TLRY) released its latest results earlier this month featuring a significant increase in its net loss, investors rushed to sell the stock, sending its shares down 13% the following day.
Let's take a closer look at the company's recent results to see whether investors should be worried about Tilray being in trouble or whether this could instead be an attractive buying opportunity. Here are some of the more alarming items from Tilray's most recent quarterly report that may have investors on edge:
On Aug. 10, Tilray released its second-quarter results for the period ending June 30, showing yet another big loss -- this time, $81.7 million. That's up 125% from the $36.3 million loss reported in the prior-year period. The deeper loss is because the British Columbia-based pot producer incurred inventory adjustments of $18.6 million (just $201,000 a year ago) and asset impairment charges of $28.4 million (nonexistent last year). Those two items add up to $47 million, which is more than the $45.4 million increase in net loss.
Source Fool.com
