Two major pot growers reported a sizable decline
The marijuana industry has taken the stock market by storm in 2018 — and for good reason. A little more than a month ago, Canada became the first industrialized country in the world to legalize recreational cannabis, which paves the way for Canadian pot stocks to grab their piece of what might be a $5-billion-plus pie. Mind you, this sales estimate from Wall Street doesn’t take into account the potential for Canadian-based marijuana stocks to find new overseas sales channels, so it’s likely conservative.
Investors turn their attention to tangible results
However, this major marijuana event also signals a transformation in the way investors view and analyze pot stocks. Before Oct. 17 (the day the Cannabis Act went into effect in our neighbor to the north), cannabis companies made pie-in-the-sky promises about production, product diversification, partnerships, and international expansion. And they were typically rewarded for those announcements. Now, with weed legal in Canada, investors will be looking for tangible results that they can wrap their hands around.
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