Will cannabis stocks ever recover?

Access to this page has been denied because we believe that you are using automation tools to navigate the website. At the moment, there are a couple of problems for cannabis companies that make the prospect of selling especially attractive. The names that trade at a very low price with strong fundamentals, I have positioned the cannabis growth portfolio to focus on the United States. As a group, marijuana stocks have crashed this year, and the profitability of the AdvisorShares Pure US Cannabis ETF (MSOS 1.39%) has plummeted by more than 50%.

The cannabis sectors have been in a downtrend for quite some time, but the decline in the ACB is something different. Only Trulieve Cannabis (TCNNF 3.91%) is still seeing significantly higher sales than a year ago. Subscribe to The Cannabis Growth Portfolio for exclusive coverage of the cannabis industry, including a portfolio of models and real-time buy and sell alerts. The other disadvantage is that this is not exactly a favorable market environment for cannabis growers seeking funding to issue new shares, since their stock prices are considerably lower than before.

Cannabis Growth Portfolio is the leading cannabis research service, led by Julian Lin, a Seeking Alpha contributor who is among the 1% highest in terms of return on investment. But the decline was much greater for Canadians overall, as the cannabis market there has been incredibly tough compared to the strong US market. For emerging industries, such as cannabis, that's bad news, as it means that companies will have to bear higher interest expenses in the future if they want to borrow money to expand. Worse still, with inflation rising and consumer portfolios seem too small to justify spending money on cannabis, there isn't necessarily a big recovery to expect in the short term.

For more coverage on cannabis stocks, including my best options, consider subscribing to the Cannabis Growth Portfolio. Subscribers have access to the model portfolio, cannabis industry research panels, real-time updates and more. If you're seeing a red wall in the investment account where you hold your cannabis shares and you're wondering if you've made a series of terrible mistakes, you're not alone. Then, with Congress stuck on almost everything, cannabis stocks faltered and fell into disrepair.

Layla Johnson
Layla Johnson

Avid coffee ninja. Incurable twitter ninja. Infuriatingly humble food ninja. Passionate social media nerd. Hardcore food junkie.

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