Opportunities for investing in the marijuana market
There are many different players in the growing marijuana market. However, most companies are quite young and are not listed on any trading floors. Invest in marijuana stocks in such a business carries enormous risks that are not permissible for an investor.
Today can be found when trading assets through a broker on the stock exchange.
Despite the fact that these organizations have already been able to prove their success and occupy certain niches, investing in their assets still carries increased risks.
In this case, they consist of conditionally two main factors:
- Internal (strong revaluation of shares);
- External (political influence).
It appears that the shares of most of the companies reviewed are greatly overvalued. Substantial growth in the market generated excitement and stocks were bought on a large scale, which in turn pushed the price of the ticket up. As a result, the value of assets in a larger account today is provided only by the expectation of a huge sale of marijuana in the future.
- So the value of Cronus Group shares is 130 times higher than the total sales of all the companies it acquired.
- Aurora Cannabis is not much behind the competitor in this indicator – 129 times,
- Canopy Growth Corporation in this case came off decently – 73 times.
- Do not shine with Apria indicators – 60 times
- The most underrated MedReleaf list is 35 times.
Against this background, an external factor directly related to the legalization of cannabis is becoming increasingly relevant. There is no guarantee that sales growth from legalizing marijuana will live up to expectations, as there is no guarantee that cannabis legalization processes will be supported in most regions.