TLRY - Downside Bets on These 3 Pot Stocks Rocketed Higher in January
As recently as last March, marijuana stocks were considered the greatest thing since sliced bread. During the first quarter, pot stocks wound up surging, with more than a dozen ending higher by at least 70%.
But the past 11 months have been highlighted by a precipitous decline in marijuana stock valuations. Canadian supply problems and high tax rates in core legalized U.S. states have wreaked havoc on the industry and caused Wall Street to reevaluate its expectations (and valuations) for cannabis stocks.
The hope has been that the changing of the calendar from 2019 to 2020 would allow the marijuana industry to begin the year with a clean slate, at least in the eyes of investors. But according to short-interest data between Dec. 31, 2019, and Jan. 31, 2020, pessimism still abounds in the cannabis space.