Pot Stocks Pummelled - Investors Dazed And Confused
RETAIL INVESTORS GONE WILD
GLOBAL CANNABIS STOCK INDEX
FUNDAMENTALS FOR MARIJUANA STOCKS ARE AS SKETCHY AS THE MANAGEMENT TEAMS
SPOT LEGAL PRICESHT: ZeroHedge
Although the Grizzle story doesn't mention it (nor ZH who should have caught it), Barron's cover story last week may have had something to do with the decline in the stocks:
Marijuana Stocks Could Be a Buzzkill
With its legalization of recreational marijuana later this year, Canada is pioneering a new industry. Investors may want to wait for the smoke to clear.
A cold rain beat down recently on the boarded-up cinder-block homes and empty factories of Smiths Falls, Ontario, melting the last snows in this industrial town about an hour south of Ottawa. One parking lot was full, however. Inside a shuttered chocolate factory, it is artificial summer for the marijuana crop of the largest cannabis company in the world, Canopy Growth.
In brightly lit, high-tech “grow rooms,” Canopy is preparing for the expected legalization of recreational cannabis this year in Canada—the first industrialized nation to do so at the federal level. Workers in lab coats harvest, trim, and package Canopy’s Tweed-brand products, then store them in a giant vault whose heavy door would do a bank proud.
It is a scene being repeated by companies across Canada, which wants to become the Silicon Valley of recreational pot.
Canada’s experiment is being closely watched by other countries, including the U.S., where federal law still classifies marijuana as an illegal narcotic, but where more than half of the states allow prescription sales and nine have legalized recreational use. The visitor log at Canopy’s Smiths Falls facility shows delegations from dozens of countries.
As they often do, investors have celebrated this emerging business early by embracing Canadian companies that claim a cannabis connection. Traveling in Canada, cabbies, bankers, and even border guards will tell you their favorites in a bubble that has floated Canadian cannabis stocks to a collective stock-market value above $30 billion. That’s already about half the market capitalization of Canada’s gold mining industry....MUCH MORE