FLWPF - 3 Intriguing Cannabis Stocks That Were Clobbered in August
Legal marijuana projects as one of the fastest-growing industries in the world over the next decade. Regardless of which Wall Street forecast you favor, growth prospects suggest a healthy double-digit compound annual growth rate for the industry through 2030, and hopefully plenty of opportunity for investors to make some green while cannabis companies sell the green.
Unfortunately, there wasn't much green made in August. Following a month where a mere nine pot stocks rose in July, August fared little better, with only 10 marijuana stocks ending in the green. Comparatively, 48 of the 58 direct and ancillary players I follow moved lower last month, with 34 shedding at least 10% of their value, not including rounding. Put another way, almost 3 out of 5 pot stocks lost 10% or more last month.
For many of these cannabis stocks, there are viable reasons for this decline -- namely, they and the industry have a lot of growing up to do. Persistent supply issues in Canada, high tax rates in the U.S. on legal weed, and resilient black markets throughout North America are making life difficult for pot stocks.