TLRY - 1 Stock I Wouldn't Touch With a 10-Foot Pole
2024-03-21 07:50:00 ET
For every good stock you can buy, there's usually at least a couple of bad ones you are better off avoiding. Stocks that are falling in value can seem like tempting buys since they look cheap, but often they're declining for a good reason. If a stock is down more than 80% over the past five years, that's probably a good sign that there's something seriously wrong with the business. And unless you have an extremely compelling reason to invest in it and believe that it will turn things around, you probably are better off avoiding it.
That brings me to a stock I could never envision buying, and that's cannabis producer Tilray Brands (NASDAQ: TLRY) . The stock has fallen more than 95% during the past five years. And although many cannabis investors still remain bullish on it, the business is incredibly risky. Here's why if I were to make a never-buy list, Tilray Brands stock would definitely be on it.
To be fair to Tilray, I would never buy any Canadian cannabis stock . The simple reason is that the market is has too many marijuana producers, driving up supply and pushing down prices. This is why you see Tilray getting into the alcohol industry and focusing on the international cannabis markets; the growth potential in the Canadian cannabis market just isn't appealing at all.
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1 Stock I Wouldn't Touch With a 10-Foot Pole