Buyout Boom: Tilray Buys Hemp Company for $419 Million

One of the biggest marijuana stocks just announced another acquisition.
One of Canada’s top cannabis stocks is jumping into hemp with a huge $419 million investment.
Hemp is one of the biggest growth trends for 2019 . . .
But my #1 Big Trade for 2019 could be even more profitable!
Click here for urgent details.
Tilray (NASDAQ: TLRY) plans to acquire 100% of a Canadian hemp company called Manitoba Harvest.
Manitoba Harvest is the world’s largest maker of hemp foods, including oils, granola, protein powder and milk.
In 2019, the hemp company plans to launch a new line of CBD foods and wellness bars.
Manitoba Harvest is a private hemp company that’s owned by Compass Diversified (NYSE: CODI). News of the acquisition sent CODI shares rising 4%.
The deal shows Tilray’s ambitious plans to be a cannabis leader.
The company is aggressively pursuing acquisitions to expand the business.
Plus, Tilray is forming partnerships with Anheuser-Busch InBev (NYSE: BUD) to work on cannabis drinks . . .
And with pharmaceutical giant Novartis (NYSE: NVS) to distribute medical marijuana and work on drug development.
After debuting on the NASDAQ at $17 per share . . .
Tilray stock became the hottest new publicly traded company.
Shares quickly soared to top $300 per share within a couple of months – handing IPO investors a staggering 1,664% profit.
Click here to get my #1 big trade for 2019 (bigger than “pot stocks.”)
Tilray stock has since settled down – with shares now trading at $79. At the current share price, Tilray is valued at over $7.4 billion.
Cannabis critics will argue that even at this price, the valuation is rich.
This year, Tilray is expected to report sales of $156 million. That’s a 281% increase from last year.
That means this stock is trading at 47 times the 2019 sales projection!
Of course, folks investing in Tilray are buying the stock and thinking well beyond 2019.
After all, cannabis will become a $10 billion market in Canada . . .
A $100 billion market in the United States . . .
And a $150 billion market in Europe.
Tilray is among the top 10 current cannabis players. And buying the stock is really a bet on that market growing.
For example, let’s say that the legal cannabis market grows to $250 billion within the next 10 to 15 years.
If Tilray can grab a 5% market share, we’re talking about $12.5 billion in annual sales.
Let’s assume the stock is valued like an alcohol, tobacco or pharmaceutical company. Let’s say that shares trade at a multiple of five times sales.
On that basis, Tilray could be worth $62.5 billion.
That would suggest that Tilray’s stock price could shoot to $667! That’s a 745% increase.
Now, that back-of-the-napkin analysis suggests NO additional share dilution due to acquisitions or future financing. And we know that isn’t realistic.
The point is this:  Tilray is a market leader in a huge and growing sector. And if it is able to secure even a small share of the global market, it could be looking at billions of dollars in annual sales.
Legal weed will be huge.
My #1 Big Trade could be even bigger than “pot stocks” in 2019.
Go here now for urgent details.

To top