3 Reasons I'm Still Not Buying Tilray Stock -- Even at Penny-Stock Prices
Tilray's stock isn't the bargain it appears to be at first.
Overview
Penny stocks are publicly traded companies whose shares trade below $5 each. They may appear to be cheap, but many of them are anything but. Penny stocks are sometimes corporations that have lost substantial market value due to significant challenges. That describes Tilray Brands (NASDAQ: TLRY), a cannabis company, to a T. The pot grower has lost more than 90% of its market value over the past five years, but even at current levels -- shares are trading hands at a bit under $4 a piece -- the stock isn't a buy. Here are three reasons why.
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One key reason Tilray has underperformed broader equities is that the company has generally posted subpar financial results. Consider the company's most recent update, for the first quarter of its fiscal year 2027, which ended Aug. 31. At first glance, the results look strong. Tilray's revenue increased by 23% year over year to $257.1 million. That was a record first-quarter revenue for the company. However, there is more to the story. In March, the cannabis company acquired some of BrewDog's assets.
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Originally published at www.fool.com.