For this year’s MoneyShow report, I am also highlighting a bonus recommendation – which is not an official Safe Money holding -- that is highly speculative but could skyrocket in the year ahead. It’s Tilray Brands Inc. (TLRY), notes Nilus Mattive, editor of Safe Money Report.

Shares of the Canadian cannabis company soared from under $25 a share to north of $142 during the heady days for cannabis stocks. But it has since lost almost all of its value.

What happened? Well, once the initial buzz wore off, reality set in. Competition among cannabis companies grew fierce and all the massive profit forecasts went up in smoke. Investors started bailing on the industry and share prices plunged precipitously.

That said, cannabis consumption IS still quite substantial in Canada. In dollar terms, legal cannabis sales totaled $3.8 billion (US dollars) last year. That represented a 12.2% increase from a year earlier. But the Canadian market is really just the anchor that will keep Tilray chugging along. The company has also been diversifying its business in two important ways.

First, on the cannabis side of things, it received approval to begin selling medicinal products in Germany and has already garnered the #1 position in the country.

Second, massive opportunities in the US could quickly materialize as well. While 24 individual states have legalized cannabis for recreational use and 38 have legalized it for medicinal purposes, cannabis remains a schedule 1 substance under the federal Controlled Substance Act. That might change after the US Attorney Generally circulated a proposal to reclassify marijuana as a Schedule 3 substance – a category that recognizes legitimate medical uses for the drug.

However, unlike many of its cannabis peers, Tilray has also been preparing for the possibility that cannabis markets DON’T expand at all. Alcoholic beverages have become a particular focus. Tilray has already become the fifth-largest craft beer company in the United States after buying eight brands from Anheuser-Busch.

It also owns spirits brands like Breckenridge Bourbon...has been further moving into non-alcoholic beverage categories like energy drinks…and has added packaged foods like hemp seeds. When you add it all up, this diversification strategy is positioning the company to succeed under a range of different scenarios.

All told, the company posted a net loss of just $15.4 million in the fourth quarter of fiscal 2024 vs. $119.8 million in the same period a year earlier. But it’s quite possible that Tilray will start turning a profit in 2025. That alone could send its shares much higher from their current levels.

Remember: This is anything but a “Safe Money” stock. Rather it’s what I like to call an “intelligent speculation” – a high-risk, high-reward play for money you can afford to lose.

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