27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
On Monday, Canadian cannabis giant Tilray, Inc. (NASDAQ:TLRY) (TSX:TLRY) held its first annual meeting of shareholders as the 'new' Tilray, following the merger with Aphria, Inc. in May.
"In just six months, we have made concrete and measurable progress integrating our operations while capitalizing on the fast-growing consumer demand for wellness and consumer lifestyle products," Irwin D. Simon, the company's CEO and chairman, said. "Our assets in pursuit of this goal – a portfolio of highly sought-after, high-quality brands, significant operational scale, a broad global distribution footprint, and a commitment to operational excellence – provide clear and differentiated benefits as we plan to build long-term, sustainable shareholder value."
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Operational And Financial Highlights
- In the fiscal year ended May 31, 2021, Tilray generated $513 million in revenue, representing a 27% YoY increase.
- The company also achieved $55 million in synergies on a run-rate basis through the end of the first quarter of fiscal 2022, while it currently expects to deliver approximately $80 million of annual pre-tax cost synergies by one year from now, ahead of its original plan.
- Tilray ended the first fiscal quarter with net revenue of $168 million, up by 43% from $117 million in the same period of fiscal 2021.
- Adjusted EBITDA came in positive in the first quarter, reaching $12.7 million, which is 58% higher than in the same quarter of fiscal 2021, marking the tenth consecutive quarter of positive adjusted EBITDA.
- The company also reaffirmed its long-term vision of achieving $4 billion in revenues by 2024.
"In fiscal 2021, our brand platform generated positive Adjusted EBITDA with the added benefit of enhanced operational efficiencies, infrastructure, production facilities, and distribution networks to capitalize on the long-term growth opportunity that comes with ongoing cannabis legalization," Simon explained. "This 'current value plus upside' model is the backbone of the pursuit of our target of delivering $4 billion in revenue by the end of fiscal 2024. I remain highly optimistic about the future."
Canada Presence
Six months following the big merger, Tilray is still the largest licensed producer within the Canadian cannabis market, worth CAD$4.62 billion ($3.65 billion), the company said.
According to HiFyre sales data for August through October 2021, Tilray's portfolio ranks in the top five sales brands across adult-use categories. Moreover, the company is making strategic investments in sales and distribution to grow its market share to a target of 30% by the end of the fiscal year 2024.
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E.U. And U.S. Presence
In the E.U., Tilray expects to generate $1 billion in revenue by the end of fiscal 2024 with a mix of organic growth and acquisitions.
Both Simon and Cantor Fitzgerald's analyst Cantor Zuanic share this view, highlighting that mergers and acquisitions can fast-track the process allowing the company to avoid building a business from scratch. In addition, the company runs state-of-the-art cultivation facilities in Portugal and Germany that supply pharmaceutical-grade medical cannabis across international markets.
Tilray is also building its U.S. business on several fronts:
Growing the Sweetwater brand through expansion of distribution, building awareness and new product development, following the 2020 acquisition of the 11th largest craft brewer in the U.S.
Growing Manitoba Harvest business, a pioneer in branded hemp and wellness products, with access to 17,000 stores in North America.
TLRY Price Action
Tilray's shares traded 2.76% lower at $10.20 per share during the pre-market session on Tuesday morning.
Photo: Courtesy of Tilray, Inc.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.