Finally, Some Good News for Marijuana Stocks
In just one year, marijuana stocks went from being a cash machine for investors to a vacuum looking to suck their investment capital dry.
Following an incredible first quarter, which saw more than a dozen pot stocks gain at least 70% in value, cannabis stock investors would endure a steep nine-month downtrend the remainder of the year. Supply issues in Canada, exorbitant tax rates on weed in key U.S. markets, and a mammoth black-market presence have worked together to keep marijuana stocks from realizing their potential. As a result, cannabis stocks suffered, while short-sellers rejoiced.
However, a recent check of short interest on a number of marijuana stocks listed on the Nasdaq or New York Stock Exchange (NYSE) revealed some good news: Shares held by short-sellers declined for some of the most popular pot stocks between the end of November and the end of December. Put in another context, pessimism waned for the first time in a long time.
Source Fool.com
