The record-breaking year for the marijuana industry just keeps motoring along. This week we witnessed two more states — Utah and Missouri — pass sweeping medical marijuana laws, bringing the number of states to have legalized marijuana in some capacity to 32. Michigan also got in on the action, becoming the 10th state (along with Washington, DC) to OK recreational cannabis use.
Prior to midterms, we witnessed a laundry list of game-changing events, all of which were eclipsed by the legalization of recreational marijuana throughout Canada on Oct. 17. Becoming the first industrialized country in the world to green light adult-use weed, Canada has opened the door to what could be $5 billion or more in added annual sales…
The No. 1 pot stock to avoid
And yet despite all of these positives, major risks remain for marijuana stock investors. Pot stocks have been catapulted into the heavens and now must meet investors’ lofty expectations if they’re to maintain their exorbitant market caps.
Of course, no two cannabis stocks are alike, and some clearly bear more risk for investors than others. Across the dozens of marijuana stocks that investors could buy right now, the one that has the words “danger” and “avoid” written all over it for the time being is once again British Columbia-based Tilray (NASDAQ:TLRY).
For those who may not recall, Tilray took the stock market by storm over a four-week period between mid-August and mid-September, rallying from approximately $25 a share to $300 a share on the dot. It brought back memories of the investing fervor experienced during the dot-com days. It also demonstrated just what a bubble marijuana stocks had become. Within a few days of hitting $300 on an intraday basis, Tilray would wind up shedding two-thirds of its value.
However, this sleeping giant is far from…
Continue reading at THE MOTLEY FOOL