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”
Monday, January 22, 2018
Stocks 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)
