This Troubling News Could Send Pot Stocks Crashing This Week

One of the reasons many U.S. marijuana stocks are undervalued right now is that they can't reach a broad pool of investors. The federal ban on marijuana prevents them from trading on major exchanges like the Nasdaq or the New York Stock Exchange (NYSE). Marijuana companies in the U.S. also struggle to obtain funding as many banks shun them out of fear of facing repercussions from the federal government.

And despite there being optimism that legalization may be around the corner, that's by no means a guarantee as the industry might still have a long road ahead of it, especially in light of the recent actions made by top bank JPMorgan Chase (NYSE: JPM).

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Source Fool.com