5 Best Cannabis Stocks to Own for the Next Decade
Cannabis stocks haven't exactly shone over the last year. Capital constraints, weak internal controls, overaggressive management teams, regulatory bottlenecks, exceedingly high tax rates, a thriving black market, and unrealistic expectations have all played a part in bringing the industry to its proverbial knees since the end of the first quarter of 2019. As a result, the legal cannabis space has witnessed a spike in companies attempting to seek bankruptcy protection, a mass exodus of top-level executives, a sea of goodwill impairment charges, widespread downsizing, and numerous capital projects getting shelved or outright canceled, all in the past three months. That's not the kind of backdrop that tends to attract growth investors, even those with a high tolerance for risk.
Cannabis equities, however, may be nearing an inflection point. Keeping with this theme, many companies, vis-a-vis their new management teams, have instituted tighter cost controls, begun the process of cleaning up their balance sheets, and doubled down on simply growing great weed in a cost-efficient manner. Legal cannabis, in turn, should slowly morph into a more professionally managed industry with a rather bright long-term outlook. Here are five cannabis stocks poised to benefit from these ongoing structural and tactical changes over the next decade.
Image source: Getty Images.
Source Fool.com
