It May Be Time to Swear Off Canadian Cannabis Companies
In October 2018, Canada became the first industrialized western nation to legalize recreational use of marijuana. This event -- likely still the most important for the marijuana industry to date -- was well received by investors, who saw a golden opportunity to cash in on the projected growth of sales of marijuana products by investing in cannabis stocks.
Unfortunately, once the initial honeymoon phase was over, a slate of issues got in the way of Canadian pot companies, which haven't performed nearly as well as expected. Let's review two of those issues and whether, in light of these developments, it might be worth removing all Canadian pot stocks from your buy list.
Some Canadian cannabis companies have been involved in major scandals. For instance, Aphria (NYSE: APHA) got itself in a world of trouble after allegations emerged that the company overpaid for its LATAM Holdings acquisition in a ploy by some of its executives to enrich themselves. Aphria denied these accusations and even appointed a special committee to investigate them.
Source Fool.com
