In 2018, shares of Tilray, went from $17 per share in July to just over $300 in August, an increase of more than 600%. With a market cap at that reached over $10 billion, but with only sales of $28 million short sellers saw an opportunity.
Short interest on the stock spiked to about 3.5 million shares, approximately a third of the company’s overall float. Many short sellers got burned on the way up, but the lucky few made a killing on the way down.
Because Tilray isn’t producing much cannabis now and its peak annual output is nothing to write home about for a company with a $5.5 billion market cap, losses are likely for 2019 and 2020.
However, the start of the second quarter brought with it a new round of selling for Kennedy and Pastorius. According to recent filings with the Securities and Exchange Commission, Kennedy disposed of a little more than 106,100 shares of Tilray stock at an average price of $63.44 on April 1 and April 2 for a grand total of $6.7 million in proceeds. Meanwhile, Pastorius sold a little more than 46,500 shares on April 1 and April 2 for about $3 million.
Corporate officers and members of the board of directors have deeper insight into a company’s operations than any analyst or hedge fund. Quite simply, they are in the top tier when it comes to the Smart Money. The insider investment strategy is an investment strategy that follows the buying and selling decisions of insiders.
And when I look at the chart, the chart suggests further downside. The two levels that should slow down price, if not reverse price is the daily demand at $38 or $29.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.