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5 months ago
#Tilray Needs An Adult In The Room | $TLRY
Shareholders of Tilray, Inc (NASDAQ: TLRY) have suffered, blow after blow, throughout 2019 and 2020. Every day seems like Groundhog Day, with just another story to detract from any long-term positivity. From a bull’s perspective, there are several very worrying recurrences within the behavior of the company.
Firstly, the CEO, Brendan Kennedy, has made numerous appearances on television; pumping the stock, while at the same time has been dumping stock, to the value of over $30 million, on already beleaguered retail shareholders. There is no legal issue whatsoever in insiders selling shares to raise capital, however the timing has been truly awful. Buying is required to reassure investors to hold equity in TLRY under times of intense scrutiny.
Brendan Kennedy’s Recent $TLRY Transactions. (Source: Fintel)
Secondly, much speculation among the investor community continues around the unscrupulous activity amongst certain analysts and media companies, in the continued release of downgrades lacking in much substance. This behavior has halted any attempts by the TLRY stock to move higher, and the entire Marijuana industry to stage any resemblance of a rally.
TLRY has proven to be a fantastic trade for short sellers, whom continue to pile on misery to the bulls. Earnings are on Monday, March 2nd after the close, and the short interest has not seen any considerable decline. This means that there is widespread belief that the company will disappoint once again. The likelihood of a post earnings short squeeze for TLRY is low; but at this stage in the game, there is not much point in throwing in the towel.
Let’s Have A Look at TLRY’s 1-Day Chart for Some Possible Guidance:
There are Several Factors to Consider:
- The 100-day Moving average is very strong resistance. Until this is reclaimed as support, then the downtrend continues.
- RSI is showing us bullish divergences.
- Volume is higher on up days and lower on down days; which is bullish and sellers may be running out of gas.
- Stochastic is attempting to reset and rise higher, which should result in positive price action.
- Momentum is showing signs of reversing.
In summary, TLRY is entering earnings at a all-time low price, with low expectations, and high short interest. The markets, overall, are still very unstable; following the worst weekly self-off that we have seen in sometime. If you’re not already in a TLRY position, then there is no need to be a hero and try to buy this now. Above the $20-mark would still be an appealing entry, and if your still holding shares, there is no point running for the door now. Trapped bulls have to look at this as a 5-10 year story now and hope that they can get a exit much higher than from this level.
*The publishers of this report are not investment advisors and do not provide investment advice. This message is meant for informational and educational purposes only. The publishers of this report have purchased shares and call options of TLRY in the open market. We reserve the right to buy or sell at any time. This is not a solicitation or recommendation to buy, sell, or hold securities.