Many investment questions have two components. The first is running calculations, and seeing if a risk adjusted return of a particular asset fits within a portfolio and investment plan. The second is determining if the investment should be made given the moral and ethical questions that may be raised by the activity of a firm or the use of particular assets.

Tilray $($TLRY$)$ Priced its IPO on the NASDAQ July $18,2018.$ TLRY is a Canada based marijuana grower. The Tilray IPO priced at $$17$ per share. The stock has traded as high as $$300,$ and traded recently under three dollars per share. The return of almost $20$ X from the IPO was certainly attractive in the decline of $99\%$ from the high is not.

Ignoring what business Tilray is involved in$,$ should the stock be purchased today? Se how other consumer stocks are trading, the type of portfolio of equities your risk profile prefers, the growth prospects in marijuana, and your analysis of the competition in marijuana in the table below:

Company Price Market Capitalization $($million$)$ Cash $-$ As of last month posted Total Debt $-$ As of last month posted EBIT EBITDA EV$/$EBIT EV$/$EBITDA EPS Estimate EPS TTM P:E F P:E T Beta Expected Return

Canabis

TLRY $2\mathrm{.}051,552448590$ $$(178,195)$ $$93,489$ $$(0\mathrm{.}01)$ $$0\mathrm{.}02-0\mathrm{.}14-0\mathrm{.}3$ $$(14\mathrm{.}64)$ $$(6\mathrm{.}83)2\mathrm{.}3517\mathrm{.}8\%$

CRON $2\mathrm{.}619,9518612,553(71,910)5,044$ $$(0\mathrm{.}16)$ $$2\mathrm{.}31-0\mathrm{.}06-0\mathrm{.}08$ $$(43\mathrm{.}50)$ $$(32\mathrm{.}63)1\mathrm{.}048\mathrm{.}3\%$

ACB $6\mathrm{.}84373\mathrm{.}1437262(219,375)48$ $$(0\mathrm{.}00)$ $$4\mathrm{.}13-0\mathrm{.}32-0\mathrm{.}92$ $$(21\mathrm{.}38)$ $$(7\mathrm{.}43)2\mathrm{.}821\mathrm{.}3\%$

NIO $4\mathrm{.}619,6351985451(15,640)(15,640)$ $$(0\mathrm{.}95)$ $$(0\mathrm{.}95)00$ $$-$ $$-1\mathrm{.}9414\mathrm{.}8\%$

CGC $8\mathrm{.}09737\mathrm{.}14621305(555,859)37717$ $$(0\mathrm{.}00)$ $$0\mathrm{.}04-0\mathrm{.}99-0\mathrm{.}44$ $$(8\mathrm{.}17)$ $$(0\mathrm{.}99)1\mathrm{.}6312\mathrm{.}6\%$

Consumer Discretionary

SBUX $83\mathrm{.}179,8653,55124,5965,5021,3625\mathrm{.}6222\mathrm{.}694\mathrm{.}714\mathrm{.}0517\mathrm{.}720\mathrm{.}50\mathrm{.}977\mathrm{.}8\%$

Monster Beverages $($MNST$)55\mathrm{.}015,7612,2977681,9531,8402\mathrm{.}172\mathrm{.}302\mathrm{.}071\mathrm{.}8226\mathrm{.}630\mathrm{.}20\mathrm{.}726\mathrm{.}0\%$

The Coca$-$Cola Company $($KO$)59\mathrm{.}322,5579,36642,06413,01615,0002\mathrm{.}712\mathrm{.}3532\mathrm{.}8119\mathrm{.}821\mathrm{.}10\mathrm{.}595\mathrm{.}0\%$

PepsiCo $($PEP$)169\mathrm{.}242,3259,7116,51012,91336,677(0\mathrm{.}07)-0\mathrm{.}028\mathrm{.}828\mathrm{.}1519\mathrm{.}220\mathrm{.}80\mathrm{.}534\mathrm{.}6\%$

Is marijuana an appropriate business for you to invest in$?$ Consider the positive and negative issues that may be associated with marijuana.