Weed Stocks: Yes? No? Maybe So?

pot stocks

A very good friend of mine asked me this week if she should invest in a cannabis company.

My answer was “I don’t know.”  Because I have no idea who the winner, or winners, will be.

Here’s an interesting piece of information…

As you may know, 2018 has been a monumental year for the legalization of marijuana.  Canada made it legal to use marijuana for recreation, as did the state of Vermont.  Beer, wine and spirits company Constellation Brands (NYSE: STZ) invested in cannabis company Canopy Growth (NYSE: CGC), and tobacco company Altria (NYSE: MO) announced on Friday that it was investing $2.4 billion in Cronos Group (NASDAQ: CRON), another pot company.  Yet the marijuana exchange traded fund (ETF) Alternative Harvest (MJ) is down 36% from its all time high.

Why is that?

Well, for starters, most if not all of these cannabis companies are losing money.  Even the well capitalized ones.  I know that their goal is to focus on growth and sacrifice profits in the short run, but I still don’t know who will end up winning.

I myself have not started a position in any cannabis company as of yet.

I will post more on this sector as time goes on, so keep tuning in!


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