This Stock Has Doubled in the Past 6 Months: Is It Too Late to Buy?

Core Viewpoint - Tilray Brands has experienced a significant stock increase of over 150% in the past six months, driven by optimism surrounding potential U.S. marijuana legalization, despite still being in penny stock territory at approximately $1.65 per share [2][3]. Group 1: Company Performance - Tilray Brands has lagged behind broader equities over the past five years as the cannabis industry has not met expectations [2]. - The company's diverse business operations include medical and recreational cannabis, pharmaceutical products, hemp-based wellness products, and craft brewing, with significant opportunities in the U.S. market if federal legalization occurs [4]. - The stock's recent surge is attributed to positive developments regarding U.S. marijuana legalization, including comments from President Trump about rescheduling cannabis [5][6]. Group 2: Market Challenges - The Canadian cannabis market, which legalized recreational use in late 2018, faced saturation and regulatory challenges, leading to a supply glut and inconsistent financial results for companies like Tilray [7][8][10]. - Despite the legalization in Canada, a significant portion of cannabis sales remained illicit, with illegal sales accounting for 24.3% of the market as of 2023, indicating ongoing challenges for legal operators [9]. Group 3: Future Considerations - The potential federal legalization of cannabis in the U.S. could change the market dynamics for Tilray, but the specifics of such legalization, including licensing and taxation, remain uncertain [11][12]. - The competitive landscape may also pose challenges, as larger companies with experience in regulated markets could enter the cannabis space [12].