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!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

 

 

 

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