3 Beaten-Down Marijuana Stocks to Avoid for Now

Support for legalizing marijuana has reached an all-time high in America, where total demand is estimated at roughly $50 billion annually. In a Gallup poll conducted a week before Canada became the second country in the world to permit recreational cannabis sales, two-thirds of Americans were in favor of similar legislation at home that could send legal cannabis sales soaring.  Unfortunately for…

Unfortunately for Canopy Growth Corporation (NYSE:CGC)Cronos Group Inc.(NASDAQ:CRON), and Tilray Inc. (NASDAQ:TLRY), investors have started paying attention to numbers these companies are reporting in the areas where they can sell marijuana now, which don’t include the giant U.S. market. Here’s why you might want to avoid these Canadian companies until dreams of major international revenues begin to materialize.

Canopy Growth Corporation: A big platform

With an established 5.6-million-square-foot platform, Canopy Growth Corporation will probably be able to grow a lot more marijuana than it can sell. As of Aug. 14, 2018, the company boasted supply agreements totaling 67,500 kilograms (148,812 pounds) annually. Canopy Growth Reported an average sale price of 8.94 Canadian dollars ($6.83) per gram during the three months ended June. Maintaining this impressive pricing point would translate to roughly CA$600 million annually in top-line revenue.

Canopy Growth’s operating expenses hit an annualized run rate of…

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