Investing in cannabis has never been more challenging than it is today. There are many pot stocks to choose from and not all of them carry the same risks. In addition to cash flow and profitability, investors need to consider how much growth to expect from the company as well as the stock's current valuation.
However, as a result of the coronavirus pandemic, there's another item that needs to enter the equation: Where its operations are. Being in the wrong state could prove to be catastrophic.
The coronavirus pandemic has forced some states to make difficult decisions, including which businesses are essential and which are not. And that has significant ramifications since being considered essential can be the difference between a company generating enough cash to get by this year and going under.