2 Beaten-Down Stocks to Avoid

Group 1: Tilray Brands - Tilray has experienced a significant decline of over 90% in its stock value over the past five years, despite being a leader in the cannabis industry [2][7] - The company has diversified its operations beyond cannabis, with its beverages segment showing some promise due to acquisitions [3][4] - Regulatory changes, such as potential federal legalization of cannabis, could create opportunities for Tilray, but competition and regulatory hurdles remain significant challenges [4][5] Group 2: Innovative Industrial Properties - Innovative Industrial Properties (IIP) operates as a real estate investment trust (REIT) that rents facilities to cannabis companies, providing critical services in a challenging funding environment [8] - The company has faced unimpressive revenue and earnings growth, and its largest tenant, PharmaCann, recently defaulted on rent obligations, accounting for 17% of IIP's revenue [9][10] - Despite potential growth opportunities in the U.S. medical cannabis market, IIP's performance is hindered by the overall struggles of the cannabis industry and the regulatory landscape [11][12]