Even With $1.5 Billion in Cash, This Pot Stock Isn't a Buy
Over the past 13 months, the marijuana industry has done a 180 -- and not the good kind. Following a first quarter in 2019 that saw more than a dozen pot stocks gain at least 70%, the past 13 months have featured across-the-board declines for North American cannabis stocks of 50% to 95%.
To our north, Canadian licensed producers have been held back by a plethora of regulatory issues. Health Canada was slow to approve cultivation and sales licenses and delayed the launch of high-margin derivatives until mid-December. Additionally, Ontario's previous lottery-based retail licensing system didn't work, with just two dozen dispensaries opening in the first year of adult-use weed being legal.
Meanwhile, in the U.S., high tax rates on legal cannabis have made it virtually impossible for retailers to compete with the black market.
Source Fool.com
