MJ - 2 Marijuana Stocks With the Most Cash in 2020
Since the beginning of the year, marijuana companies have seen dramatic declines due to concerns regarding oversupply in Canada and the uncertainty of legalization in the U.S. Year to date as of June 28, the ETFMG Alternative Harvest ETF (NYSEMKT: MJ), an exchange-traded fund tracking the performance of pot stocks, has declined by more than 25%. During the same period, the S&P 500 index fell by less than 7%.
One major concern for investors is the crazy amount of cash that cannabis companies have been burning as they struggle to turn a profit. Before the COVID-19 pandemic began, the median cash runway left for U.S. multistate operators stood at 14.4 months, and just 6.5 months for Canadian-licensed producers.
As a result, it has become paramount to invest only in cannabis stocks with comfortable cash positions that can weather significant business headwinds. Today, let us examine two candidates that fit these criteria.