Canada’s weed stocks are out of control

“There is so much hype and overvalue that a lot of investors who get into this now will get taken and robbed”
Vice (Canada)
Monday, January 22, 2018

canada dollar cannabisStocks in Canada’s biggest cannabis companies skyrocketed the past year – with the three largest rising more than 200 percent each. Analysts are warning the high times won’t last as the nascent legal weed sector seems to be heading towards a bubble. The combined market capitalization — the value of a company’s stocks multiplied by the number of shares‚ of Canada’s three largest weed firms, Canopy Growth Corp., Aurora Cannabis and Aphira Inc., topped $14.5 billion at the end of 2017. But the combined revenue of the three largest firms was less than $110 million in that same period, as analysts said that rapidly rising stock price are unsustainable given the companies’ sales and future prospects. (See also: Cannabis growers in marijuana mega-merger)