Is Troubled Pot Stock CannTrust a Buy in 2020?
Last year was supposed to be a pivotal one for cannabis stocks. With valuations having soared, pot stocks were expected to push toward profitability on the back of rapidly rising sales. Unfortunately, investor expectations weren't realized.
To our north, Canada has contended with supply problems since day one of recreational sales, which began on Oct. 17, 2018. Meanwhile, in the U.S., high tax rates in select states, along with the ability of jurisdictions to deny retailers a presence in legalized states, have fueled an already resilient black market. In short, pot stocks plunged across the board in 2019.
However, this decline in marijuana stocks has some investors wondering if deep discounts abound. For example, embattled pot stock CannTrust Holdings (NYSE: CTST) shed more than 90% from its highs and wound up losing 81% last year. But is an 81% decline in this troubled marijuana stock reason to enough to pull the trigger and take a position in 2020?
Source Fool.com
