Cannabis Stocks: Go with the Ones That Other Companies Are Investing In – Smarter Analyst (blog)

By Jimmy Butts

I’ve avoided the topic and industry for a while now. But there’s no denying that it’s a burgeoning space with considerable momentum. One that I get plenty of questions about…

I’m talking about the cannabis market, or pot stocks.

Pot stocks have been a hot topic for years now, but investing in the industry has been volatile and tricky. That’s because there are more than 600 cannabis stocks being traded. Most of those stocks trade over-the-counter (OTC), a market that is lightly-regulated and has limited access to capital.

To make it worse, the vast majority of these companies will likely disappear. Many are fly-by-night firms with no sales or earnings. Investors in this space might see dramatic gains in a short amount of time, only to watch them vanish in a matter of days.The penny pot stock, MyDX, for instance, lost 99% of its value over the last couple of years… even as the cannabis industry has surged.

Then there’s the clinical-stage cannabinoid (CBD)-based drug developer Zynerba Pharmaceuticals (ZYNE). Zynerba’s shares tumbled 70% since their April 2017 highs.

These are only two examples in the long list of failed pot stocks.

Now don’t get me wrong, there is opportunity in the cannabis industry and plenty of pot stocks have seen their shares rise by thousands of percent.

A Wild, Crazy Ride

The cannabis industry has also been in the spotlight recently because we’re nearing October 17… this is the day in which recreational marijuana will officially become legal in Canada. Our neighbors to the north will become only the second country in the world to legalize the drug (Uruguay legalized it in December 2013).

Shares of Canadian marijuana producer Tilray (TLRY) have been in the spotlight recently as shares have been on a

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