1 Marijuana Stock to Avoid at All Costs
Marijuana stocks have been far from the safest investments to hold over the past year. The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) has tanked by more than 70% over the past 12 months, and some cannabis stocks have done even worse. One of those companies is Harvest Health & Recreation (OTC: HRVSF). It's crashed by 81% during the same period, and unfortunately, there's little reason for investors to expect things to get much better in 2020. Here's why you should avoid this stock.
Harvest Health released its year-end earnings results on April 24. Revenue during the fourth quarter reached $37.8 million, which is more than double the $16.9 million that the vertically integrated cannabis company brought in during the same period last year. But the problem for the Arizona-based company is that its losses continue to spiral; in Q4, they totaled $89.5 million, and that was an increase from $71.5 million in the prior-year period. For the full year, the results are even worse: a loss of $175.6 million in 2019, which is more than double the $68.1 million loss that Harvest Health incurred in the previous year.
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Source Fool.com