ITHUF - 3 Cannabis Stocks at High Risk of a Writedown
It'd be fair to say that the past year has not gone as planned for marijuana stocks. Although the first quarter of 2019 started off well, the remaining nine months of the year were a nightmare for investors.
In Canada, supply issues were clearly front and center, with Ontario's inability to open a sufficient number of dispensaries and Health Canada's delayed launch of high-margin derivatives adversely impacting pot stocks. Meanwhile, in the U.S., exceptionally high tax rates have made it virtually impossible for licensed producers to compete with the black market. With few exceptions, cannabis stocks have disappointed.
Unfortunately, this disappointment could grow in 2020.