Is Now the Time to Buy These 3 Pot Stocks?
Investors have been used to paying big premiums to own marijuana stocks in the past. However, with pot stocks falling sharply over the past several months, valuations have come down sharply. The three stocks listed below have all declined by more than 50% since July 1. However, let's take a look to see if they've become good buys today or if there is still too much risk to invest in them.
OrganiGram Holdings (NASDAQ: OGI) lost nearly 60% of its market cap in the past six months. The cannabis producer released its year-end results in November, which showed OrganiGram's net revenue was $80.4 million Canadian dollars for the 2019 fiscal year, more than six times the CA$12.4 million it posted in the prior year. Unfortunately, amid all the growth, the company still incurred a loss of CA$9.5 million in fiscal 2019, compared to a profit of CA$22.1 million a year ago.
However, things could improve for the company as OrganiGram expects to be a big player in the cannabis edibles market, especially when it comes to chocolate. On Dec. 13, the company announced Health Canada approved 16 additional rooms for cannabis cultivation. OrganiGram now has a licensed capacity of 89,000/kg per year out of its Moncton, New Brunswick headquarters.
Source Fool.com
