300 EMPLOYEES but worth more than American Airlines, what?!

[Cannerald]

Let me get this straight a company in the cannabis sector called Tilray is worth more than 20 billion USD, they have not even 300 people working for them and made no profit so far, the company was valued at a couple of millions some month ago but investors are going crazy since weeks! On the other hand we have American Airlines with over 122'000 employees i  mean what is going on in this world?!

The stock of Tilray exploded yesterday and went from 150$ up to nearly 300$ just because people think Cannabis is the next big and huge thing!  Well some of course made a lot of money within the last couple of weeks with this but what about all the small investors, will they go home with profit or a loss?

Experts talk about Bitcoin and how the rise was too qucik but looking at the Cannabis stocks at the moment they break new hihgs every day and just double themself within a day, where is the logic behind this, and people still speak bad about Bitcoin and cryptos while there are stocks going up 1100% in some weeks...

Crazy world if you ask about my opinion!

https://www.vox.com/business-and-finance/2018/9/19/17879830/tilray-stock-cannabis-peter-thiel-short-squeeze

My opinion this will end bad an pop...

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[jackg]

Airlines are so 20th century, get with the times dude .

Often valuations by stock traders aren't based on how the company is doing now it's based on future potential, a greater amount of investment means a bigger farm and more assets (and a lot of money is made from legal drug sales).

[The Sceptical Chymist]

Often valuations by stock traders aren't based on how the company is doing now it's based on future potential, a greater amount of investment means a bigger farm and more assets (and a lot of money is made from legal drug sales).

Right, but investors have been known to fail miserably when trying to predict the future.  The dot com bubble is a great example of that, where stocks of never-to-be-profitable companies exploded, and it was all based on speculation.  This marijuana thing seems to be another example of that. 

There's a lot of competition and no one knows who's going to emerge the winner of them.  As I said in another thread, I think it's going to be only one or two if the industry gets big enough. 

How many tobacco companies are there in the US?  There are only a handful of big ones that I know of.

[suchmoon]

The number of employees doesn't really matter these days. Lots of the day-to-day boring stuff should be outsourced/contracted anyway, keeping the company lean and mean and focused on what makes it different from others. Helps when the bubble bursts too - you can scale down quickly without having to deal with thousands of layoffs.

Having said that, this one sounds particularly bubbly. I said the same about Amazon and Netflix years ago so you know I'm an expert.

[worldofcoins]

This sounds like a trend market bubble and those who are of the same opinion that the cannabis business is going to explode could get a lot of quick profit. My opinion, temporary, but you gotta be where money is.

[Cannerald]

Often valuations by stock traders aren't based on how the company is doing now it's based on future potential, a greater amount of investment means a bigger farm and more assets (and a lot of money is made from legal drug sales).

Right, but investors have been known to fail miserably when trying to predict the future.  The dot com bubble is a great example of that, where stocks of never-to-be-profitable companies exploded, and it was all based on speculation.  This marijuana thing seems to be another example of that. 

There's a lot of competition and no one knows who's going to emerge the winner of them.  As I said in another thread, I think it's going to be only one or two if the industry gets big enough. 

How many tobacco companies are there in the US?  There are only a handful of big ones that I know of.

But still how in the world do they explain a company with no profit to be worth more than American Airlines i mean that is silly in my opinion...of course when the business grows and they can make themself a name I would understand but right now these people have not a good company but people still invest... OVER 1600% within weeks i mean 

In the US are 33 tabacco companies, but we talk here about a hemp producer not more, Tilray stock just fell again from 300$ to 150$ this is worse than any crypto bubble, at least in my opinion.

The number of employees doesn't really matter these days. Lots of the day-to-day boring stuff should be outsourced/contracted anyway, keeping the company lean and mean and focused on what makes it different from others. Helps when the bubble bursts too - you can scale down quickly without having to deal with thousands of layoffs.

Having said that, this one sounds particularly bubbly. I said the same about Amazon and Netflix years ago so you know I'm an expert.

I just think many people get rich cause of this hype but so many more loose everything, but maybe that is just how the wolrd works. In my opinion it is just a joke, tell me the next bubble and i will short whatever i can, I believe in you 

[ShareAccepted]

The number of employees doesn't really matter these days. Lots of the day-to-day boring stuff should be outsourced/contracted anyway, keeping the company lean and mean and focused on what makes it different from others. Helps when the bubble bursts too - you can scale down quickly without having to deal with thousands of layoffs.

Having said that, this one sounds particularly bubbly. I said the same about Amazon and Netflix years ago so you know I'm an expert.

It is the typical case in which even if the company follows perfectly their plans and realises all the gains that the investors are assuming, even in that case, the investors will not make a lot. I think that most people here have lived the dot com just like you, yet most of the lessons that should have been learned are not.

Now, for this case, even the most basic analysis disproves any possible real value for these companies. Cannabis is not an strategic product at all. It can be easily grown, it takes very little time to setup a facility and grow the product, the resources to produce it are abundant, the seed easy to get and the technology basically non-existant. No patents, no regional advantage...

This company does not have anything that can prevent another rival to do basically the same and possibly at a lower price. There is nothing justifying a premium price for it IMO.

[The Sceptical Chymist]

In the US are 33 tabacco companies,

I pulled this statistic from teh interwibz:

Looks like 4 companies in the United States account for 92% of cigarettes sales.

If I'm not mistaken, back in the early 1900s there were far more tobacco companies in existence.  Competition drove a lot of them to consolidate with buyouts or drove the lesser companies into bankruptcy.  That's my recollection based on something I read a while back, and it could be accurate.  However, my point is that only a few tobacco firms survived and thrived.
 
In the early days of a new industry, there emerges an abundance of new companies trying to capitalize on the new technology.  It happened with railroads, cars, internet stocks, and more.  Keep in mind that very few survive and eventually become profitable.  I think this new marijuana stock trend is just like all those other examples I mentioned--while you might be able to make good money by day trading them, I think it's foolish to go long on any of them until they concoct a solid plan to become and remain profitable.

[entar pasar]

This sounds like a trend market bubble and those who are of the same opinion that the cannabis business is going to explode could get a lot of quick profit. My opinion, temporary, but you gotta be where money is.

i think so, because I think this is just a trend that increases prices drastically, but time will answer when the bubble has exploded 

[tazmannia]

In the US are 33 tabacco companies, but we talk here about a hemp producer not more, Tilray stock just fell again from 300$ to 150$ this is worse than any crypto bubble, at least in my opinion.

Bubble or not, I can not say for sure. But I can tell you with 100% probability that the manipulation of the stock market was and will be. The whales must have lowered their prices to implement some kind of plan. Classic: "sell more expensive, buy cheaper." I do not follow this company and its shares, but I believe that money can move from one form to another, from one share to another or maybe in cryptocurrency....
These are just thoughts I share.