Shares of cannabis company Tilray Brands (TLRY) soared quickly to around $300 back in 2018 but today trade for just a touch above $3 -- a rude awakening to buy-and-hold investors who looked for ground-floor opportunities in a new industry with great promise. There should be a case study on this at Harvard.
Tilray recently closed on an investment in HEXO Corp. (HEXO) that seems to promise cost-synergies but the charts may need more help. Let's take a close look.
In the daily bar chart of TLRY, below, we can see that the shares have declined from $15 back in early August to around $3 in June and July. TLRY trades below the declining 50-day and declining 200-day moving averages.
The On-Balance-Volume (OBV) line shows a temporary advance in March that was wiped out by early June. Aggressive buyers do not seem to hang around for long.
The 12-day price momentum study shows improvement from April to June to July but that has happened before and only resulted in a temporary advance.