Why Tilray Stock Shouldn’t Take the Heat for Aphria’s Problem

You can never take anything for granted in the legal-cannabis sector, and Tilray (NASDAQ:TLRY) offered the latest cautionary tale. After several trading sessions stabilizing around the $100 level suggested relative normalization, Tilray stock entered a full-blown meltdown. Since the start of the week, TLRY has hemorrhaged over 25% of market value.

What is going on here? All eyes are focused on cannabis competitor Aphria (NYSE:APHA). Earlier this month, APHA shares slumped badly as the cheekily named Hindenburg Research published a damning report on the company. Hindenburg, a short-selling specialist if you couldn’t tell from its name, alleged that Aphria is a “shell game with a cannabis business on the side.”

As expected, the short-seller critiqued Aphria’s financial metrics, including its consistently negative cash flow. Moreover, Hindenburg impugned the cannabis firm’s product quality, which is a major no-no. Marijuana consumer research indicates that buyers are willing

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