CA - POTX: The Weed Barge Is Sinking So Consider Abandoning Ship

2023-05-03 01:10:16 ET

Summary

• POTX invests mainly in healthcare and real estate institutions that are focused on cannabis.
• The demand for and spending towards cannabis is increasing, but many dispensaries and cannabis-focused institutions are still struggling to pull in sufficient cash.
• Relevant companies’ profits are impeded by their inaccessibility to traditional banking services, strict governmental regulation, and social stigma around marijuana products.
• I rate POTX a Sell, as the cannabis industry is likely to struggle in the coming periods, amid high interest rates and other business-related hurdles.

For further details see: