If you’ve invested in the marijuana industry over the past couple of years, there’s a good chance that you’re seeing green. Many of the top pot stocks have delivered triple- and quadruple-digit percentage moves higher over the trailing three-year period.
The primary impetus for this rally is the legalization of recreational cannabis in Canada. Prime Minister Trudeau had been angling to legalize the drug for years, but was finally able, with the assistance of Parliament, to push through the Cannabis Act this year…
However, what many investors have overlooked is just how long it’s going to take before growers have their capacity up to spec. Although nearly 1.9 million kilograms could be produced by the country’s five top growers once they’re at full capacity, these five growers are only producing at a meager annual run rate of about 150,000 kilograms at the moment. This means investor expectations for marijuana stocks are more than baked in (pun fully intended). It also suggests that a handful of pot stocks could be worth avoiding like the plague this December…
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