3 Cannabis Stocks to Avoid Like the Plague in September
Oversupply, pricing headwinds, inventory writedowns, and retail store closures due to COVID-19 containment measures -- these things and more have meant a tough year for the legal marijuana market worldwide. Since the beginning of January, the Horizons Marijuana Life Sciences ETF (TSX: HMMJ) is down 27%. That is an abysmal performance compared with the S&P 500, which is up more than 6% during the same period.
But business results -- good or bad -- are not the only metric investors should consider when picking cannabis stocks. It's also important to look at valuation. Many high-flying marijuana companies are ludicrously valued right now, indicating that all (or more!) of their future growth is potentially priced in. These three extremely overvalued cannabis stocks are among those investors would be wise to avoid.
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Source Fool.com
