*By Carlo Versano*
Investors of a certain age look at the movement in cannabis stocks ー led by Tilray's 1,000 percent gain since its July IPO ー and can't help but draw parallels to the dot-com bubble of the late 1990s and early aughts. The difference, at least according to one cannabis financier, is that unlike the frothy valuations of those early internet companies (Pets.com, anyone?), marijuana is "actually a market that exists."
During an interview on Cheddar Thursday, president of Tidal Royalty Terry Taouss ー whose firm finances legal weed ventures ー refuted the notion that cannabis is in a bubble.
"This is a market that is a generational opportunity," he said, pointing to global trends toward legalization for both recreational and medicinal uses.
The industry is still nascent and in flux, as governments get their regulatory houses in order and companies build their growing and distribution infrastructure. Taouss envisions a day when cannabis is as big as alcohol.
"This is going to be a massive industry," he said.
As for Tilray, which has become the de facto poster child for the weed-as-bubble theory, the stock's wild movements ー as illustrated on Wednesday when it had to be halted five times in an hour for volatility, rising more than 90 percent and giving back all those gains before closing up nearly 40 percent ー have more to do with the fact that there are relatively few shares of the company available.
A thinly-traded stock riding a wave of positive press is apt to trade at dizzying price-to-earnings ratios, Taouss said.
Tilray reported less than $10 million in revenue last quarter, though its market cap is sitting around $20 billion. To put that in context, Best Buy has roughly the same valuation and did $9 billion in revenue in the second quarter.
Even still, this is a "race to see who gets out of the gate," Taouss said. When all the operational, regulatory, and compliance issues shake out, some of these cannabis producers are positioned to get exposure to recreational use, food and beverage partners, and pharmaceutical plays all in one.
Bearing that in mind, "I don't think the valuations are necessarily out of line," Taouss said.
For full interview [click here](https://cheddar.com/videos/tilray-blazes-a-trail).
Joe Cecela, Dream Exchange CEO, explains how they are aiming to form the first minority-controlled company to operate an exchange in U.S. history. Watch!
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
At 100 years old, the Goodyear Blimp is an ageless star in the sky. The 246-foot-long airship will be in the background of the Daytona 500 — flying roughly 1,500 feet above Daytona International Speedway, actually — to celebrate its greatest anniversary tour. Even though remote camera technologies are improving regularly and changing the landscape of aerial footage, the blimp continues to carve out a niche. At Daytona, with the usual 40-car field racing around a 2½-mile superspeedway, views from the blimp aptly provide the scope of the event.
You'll just have to wait for interest rates (and prices) to go down. Plus, this deal's a steel, the big carmaker wedding is off, and bribery is back, baby!
