By Jacob Wolinsky

Whitney Tilson’s additional comments on the hottest new stock TLRY. Excerpted from an email to colleagues.

A quick follow-up to my email this morning:

1) After seeing my comments on Tilray (TLRY) in my email earlier today, Yahoo Finance invited me on their afternoon streaming video show, The Final Round, where I:

  • Heaped scorn on this obvious bubble stock, saying it’s overvalued by at least 10x, maybe even 100x
  • Compared it to cryptocurrency, 3D printing, and alternative power stocks at their peaks
  • Noted that TLRY short sellers can’t correct this inefficiency because the cost of borrow and put options are so expensive
  • Said it’s a great cautionary tale for short sellers, as it appeared to be a great short at $50 a few weeks ago – the lesson is to avoid hot stocks in hot sectors, with limited floats and a big short interest
  • Predicted that it’s certain to be down by 90% from its high today of $300 within a year (probably sooner; I think it’ll be below $100 within a month)
  • Lamented how many greedy, naïve, inexperienced individual investors are going to get incinerated
  • Said the SEC should halt TLRY trading for a week so it can investigate possible market manipulation

 

You can watch it here (10 minutes).

PS—Here is a short (<2 minute) video about our Advanced Seminar on Short Selling, and here is further information on it.

2) We only got through half of our material on Understanding Financial Statements last Thursday (defining and explaining the major line items of the income statement, balance sheet and cash flow statement), so we’re hosting a two-hour follow-up webinar tomorrow during which we’ll show how to do basic analyses of the financial statements, calculating growth rates, margins, EBIT, EBITDA, current and quick ratios, debt to equity ratio, return on equity and free cash flow. Lastly, we will show how the financial statements tell a story about a company, how a company is raising and allocating capital, and potential warning flags.

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