2 Beaten-Down Stocks I Wouldn't Buy With Free Money
The cannabis industry must be in the running for the worst-performing industry for the past 12 months. Even major names, such as Aurora Cannabis (NASDAQ: ACB) and Cronos Group (NASDAQ: CRON), haven't escaped the bloodbath. Moreover, both pot growers face severe (and somewhat similar) issues that make it hard to justify purchasing their shares today. Here is why investors should stay far away from Aurora Cannabis and Cronos Group, at least for now.
Aurora Cannabis is one of the largest pot growers in Canada by market cap, and it also has operations in various other countries worldwide, including Germany and Australia. One of the company's key issues is that it faces stiff competition in the Canadian cannabis market. This isn't surprising: Canada famously legalized recreational adult use of the substance in late 2018, inviting plenty of players to benefit from this potential gold mine.
But there have been challenges. For instance, illegal avenues to purchase cannabis remain, and that's eating into the revenue that could be going to Aurora Cannabis. That's despite the hundreds of millions of dollars the pot grower has invested in its attempt to dominate the market.
Source Fool.com
