By Sean Williams, Motley Fool
Just when you thought it was time to write off pot stocks following a miserable fourth quarter, they’ve come roaring back in a big way. Year to date, through Jan. 30, the Horizons Marijuana Life Sciences ETF, a cannabis basket fund with around four dozen securities, has gained 42%! That’s blazing hot.
Tilray appears to have plenty of positive catalysts
But not every marijuana stock has participated equally. Canadian grower Tilray(NASDAQ: TLRY), the second-largest publicly traded pot stock in the world by market cap, has only gained about 10% since the year began, and it’s lost roughly three-quarters of its value since its super-spike to $300 a share in mid-September.
On the surface, many things look to be going right for Tilray. Most notably, it landed two brand-name partnerships in December. First, it announced that it’d be working with Novartis‘ generic drug subsidiary Sandoz to globally distribute noncombustible cannabis products. Shortly thereafter, Tilray formed a $100 million joint venture with Anheuser-Busch InBev that’ll see the duo putting $50 million each toward researching and developing cannabis-infused beverages.
Beyond these deals, Tilray has also done a solid job of expanding into international markets, as well as branding its medical cannabis products. As one of the first growers to be licensed by Health Canada, Tilray has had a head start on most of its competition. Assuming the company utilizes close to 3 million square feet in land at its disposal, it could easily become a top-five cannabis producer in Canada.