Why the Next Quarter Could Be Tough for Canadian Cannabis Companies

For many Canadian pot stocks, growing sales just isn't a given anymore. Now that the industry is more developed and there are more competitors, companies are getting more aggressive in trying to pad their top lines, like introducing value brands to wrestle away sales from the illegal market and rivals. But that only exacerbates another issue in the industry: A lack of profitability. Many pot producers in Canada are deep in the red. 

It's a challenging time to be investing and holding shares of Canadian cannabis companies. Unlike their U.S. counterparts, their market isn't as large and it's already completely legal, so brand new areas of the country aren't suddenly opening up for business. And with lockdowns still affecting the market, there could be some more near-term pain for cannabis investors who decide to hang on to Canadian pot stocks.

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Source Fool.com