Coronavirus Market Crash: 2 Cannabis Stocks to Avoid

As a result of the recent market correction, many stocks are much cheaper than they were just a few months ago. However, just because a stock is cheap doesn't necessarily mean it's a buy. While now may be an opportune time to buy shares of great businesses with solid prospects, there are many stocks investors should avoid no matter how cheap they seem to be. In particular, here are two cannabis companies I think investors had better stay away from: Aurora Cannabis (NYSE: ACB) and Hexo (NYSE: HEXO).

Last year, shares of Aurora Cannabis plunged by 56.5%; that was even worse than the industry benchmark, the Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF), which slid by about 36% over the same time. Unfortunately for Aurora, so far, 2020 hasn't been much better: The company's shares are down by 63% year to date. At writing, Aurora's stock is worth a mere $0.81. However, investors shouldn't be fooled into thinking Aurora is a buy at current levels. Let's consider two reasons why the pot grower is not worth the trouble.

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Source Fool.com