Weed Will Continue To Become More Like Alcohol

Weed continues to become legalized across the United States with now 15 states passing legislation for adult recreational use. Growing up in Seattle & Boulder, I often saw weed in much as the same way as alcohol. I imagine one day, weed will be legalized nationally and we’ll have weed bars like in Amsterdam.

Oddly enough, many people still think of weed as a “drug” instead of a plant. People also believe weed legislation is uncertain and may never become fully legal nationally.

Personally, I have conviction in the future of weed, and I have invested in Tilray ($TLRY) the world’s largest global cannabis company by revenue.

The largest beer company in the world, AB InBev, which has products such as Corona, Budweiser, and Stella, did $52B in revenue and has a market cap of $117B.

In 2019, TLRY did $167M in revenue (up 287% from the year prior) and as of 2021 boasts a tiny market cap of only $2.4B. The stock is currently trading around $20 per share.

In 2017 when TLRY went public, it was filled with hype achieving an all-time-high of nearly $150 per share.

Now, TLRY has merged Aphria, one of the largest weed companies in the world creating a potential winner takes most play in the weed market.

With Canada passing weed nationally in 2018 and Mexico to legalize weed in 2021, TLRY is poised to execute in the US as well as major markets internationally.

TLRY has significantly increased their revenue from 2017 ($20M) to 2019 ($167M) and I think they are poised to demonstrate great results for 2020 and beyond.

Currently, they are trading nearly 7X below from there all-time-high ($20 today and ATH was $150). I believe their ATH is easily achievable given the stock will now rise on the execution including increased revenue, legislation passing and other corporate developments (i.e. Aphria merger) as opposed to simply “hype”.

While 7X of your money is meaningful, I think TLRY could be like the AB InBev of weed. With AB InBev at $120B~ market cap and TLRY at $3B~ market cap, it is quite possible to see a 40X on your investment.

I’m quite bullish on TLRY and excited to watch the growth over the years.