Most marijuana stocks resumed their downward trajectory last week. Tax-loss selling pressures mean that recovery in these stocks is now unlikely before 2020.
However, forward-looking cannabis investors are intent on positioning themselves for the inevitable boomerang in this space. Revenues are rising. Profitable companies are emerging. (Stock) price is on a clear collision course with value.
For such investors, one particularly interesting sub-sector in the cannabis industry is Canadian cannabis retail.
Despite the poor execution of Canada’s largest provinces (Ontario and Quebec) in licensing retail cannabis stores, Canada remains a more advantageous jurisdiction for cannabis investing. Recent regulatory chaos in the U.S. (at both the state and federal level) has only emphasized this advantage.
The Seed Investor has previously looked at Canada’s leading cannabis retailers. One of these companies is Fire & Flower Holdings (CAN:FAF / US:FFLWF).
Fire & Flower has executed well. It has efficiently become one of Canada’s largest cannabis retailers. But that hasn’t spared the Company (and its shareholders) from the relentless sell-off in cannabis stocks in 2019.
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