- Since we upgraded Tilray on January 6 and reaffirmed our view on January 15, its shares have rallied ~300% in just one month.
- We believe Tilray shares are overheated in the near-term due to its massive outperformance against Aphria, leading to a 50% merger arbitrage which is highly unusual.
- Investors should be reminded of the 2019 crash in Tilray shares that resulted in ~98% loss of value over the next two years.
- We believe taking some profits off Tilray shares would be a good idea; whether to keep skin in the game depends on your risk tolerance.
For further details see:
Tilray: Please Take Some Profits