Is TLRY Stock A Buy As Germany Legalizes Cannabis?

Canadian cannabis producer Tilray Brands (TLRY) is the Canadian market share leader and continues to add new products. With the stock nearing all-time lows and Germany decriminalizing cannabis for recreational use, is TLRY stock a bargain buy now?

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Cannabis stocks may get a lift as Germany is set to become the largest country in Europe to legalize cannabis in 2024. Germany’s parliament is scheduled to approve the decriminalizing of cannabis for recreational use for adults on Friday, and it would take effect April 1. The law will allow adults to grow up the three plants for personal consumption and carry up to 25 grams of the plant, according to Forbes.

TLRY Stock Near Lows

Tilray stock has fallen back near new lows as the stock slowly deteriorates. Shares sank nearly 10% in heavy volume following Tilray’s November-ended quarterly earnings report on Jan. 9. The pot stock fell below its 21-day exponential moving average and its 50-day moving average. Tilray stock is still above its 52-week low of 1.50 marked on June 21.

TLRY stock’s IBD Relative Strength Rating has weakened to a low 13 out of 99.

The stock’s decline has been spectacular. Tilray went public in July 2018 at 17 a share and peaked exactly at 300 in September 2018. It’s now back around 1.79 a share after the post-earnings decline.

TLRY stock pulled down competitors Canopy Growth (CGC) and Cronos Group (CRON) following its earnings report.

Sales Continue To Grow

Tilray reported a smaller-than-expected loss but lower sales than estimated. The company reported a 7-cent loss per share for the November-ended quarter vs. an 11-cent loss for the year-ago quarter. Its quarterly revenue was a record high, but analysts expected even more.

Fiscal second-quarter net sales grew 34%, up from 20% and 15% increases in the prior two quarters. The growth trend ended a streak of three declining quarters.

The company’s cannabis net revenue grew 35% vs. the year-ago quarter, but its alcoholic beverage net…