4 of the Biggest Risks Facing the Cannabis Industry Today

If you're looking to invest in pot stocks, you need to know they come with risk. Marijuana is not yet legal at the federal level in the U.S., and that puts cannabis stocks in a unique situation, one that involves more dangers than you might expect as an investor. Here are four of the biggest risks facing pot stocks today that shouldn't be ignored.

Arguably the most important consideration for any company is its cash flow. If a company has no available cash, it'll struggle to keep its lights on and continue doing business.

That's a reality faced by many pot stocks today. A recent analysis done by investment bank Ello Capital found that some cannabis companies are just months away from running into liquidity issues; Ello estimated in February that Harvest Health & Recreation (OTC: HRVSF) has about nine months of liquidity remaining, and that was among the highest listed.

Source Fool.com