Cannabis Stock News
Cannabis stock news is a hot subject right now. When people think ‘cannabis industry’ green comes to mind for a variety of reasons. It’s theorized that the cannabis industry is recession-proof, but how are cannabis stocks faring during COVID-19? Today Tom and Miggy were joined by Frank Lane from CFN Media and special co-host Josh Kincaid from The Talking Hedge to talk cannabis stocks and upcoming trends.
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What is CFN Media?
Cannabis stock news is a fast-moving topic and CFN Media has dedicated its platform to providing a space where cannabis businesses and investors can discover each other.
- CFN Media offers:
- Media visibility for brands looking for investors
- Information on public and private cannabis businesses
- An iOS app to track breaking news and trends
- Founded in 2013
- Founded by Frank Lane
- Headquartered in Seattle, WA
Why do some cannabis companies grow too big too fast?
“I think vertical integration, companies that do everything from growing to processing to packaging thought they would own everything but what we’re learning now is that you need to have a core competency – you need to be good at one thing. Companies like Medifarm who are focused on one thing do really well.” – Frank Lane, CFN Media
Cannabis Stock News
Written by: Howell.Natasha
The cannabis industry is one of the most significant hit industries with tremendous loss of value that has affected the progress the industry had made before the pandemic. However, the rate of consumption has continued to increase. With most of the consumers believed to be using the black market. While this doesn’t help the current situation and the decline the industry is experiencing, it is a sign of hope that shows that there could be an improvement if the consumers using the black market are wooed over to the legal side. This still doesn’t guarantee that every cannabis stock is in a position to enjoy the potential benefits these consumers bring.
Despite the good news, there continues to be a controversy surrounding the ability of cannabis stock to start thriving again. Currently, the purchase of marijuana is at an all-time high, but there is a lot of speculation as to whether that will last a long time. With the lockdown, people are purchasing marijuana from dispensaries and other outlets near them, but that doesn’t affect the downward spiral of the stock market. Some analysts believe that it will take a very long time before the stock market becomes valuable again to attract new investors. As the pandemic continues to affect the economy in all countries, chances of the stock market reviving after the pandemic are very minimal.
Are Cannabis Stocks a Good Buy?
Given the current state, many people still wonder whether investing in marijuana companies trading on the US stock exchange is a good idea. While this will depend on personal preferences, you still need to factor in several factors and the fact that the COVID-19 pandemic has made predicting the future impossible, especially in the stock market. Analyzing the performance of every cannabis company is also very important. One of the companies that have continued to receive buy-ins but should be avoided is Aurora Cannabis. The company has never failed to make headlined in every cannabis stock news, and most of the time, it’s always for the wrong reasons. One of the reasons why investing in it isn’t a good idea is the fact that they recently enacted a reverse split to avoid being delisted on the stock exchange. With this move, they were also able to make their stock appealing to short-sellers again, which led to shareholders going down to 92%. Another issue is that the company stopped the construction of a couple of its largest projects and even put up one of their greenhouses for sale. These show that the company is struggling to keep up with its operations. And it is likely to close its doors by the time the pandemic is over. Other than these, Aurora Cannabis has also shown signs of struggling with its balance sheet, something that could lead to more loss of revenue.
Other companies having similar problems to Aurora are Tilray and HEXO. Tilray was once one of the best cannabis companies in the stock market, but that has changed. The fact that the management is only focusing on the European and American markets doesn’t seem to help its course. Although their share price is one of the lowest, they have attached a clause on it, and that could lead to shareholders end up losing out on short term gains if the warrants are exercised. HEXO, on the other and, has also been trying to converse money. By stopping some of its operations like the Niagra facility. The initial plan was to pause on the operations there. But there have been talks about permanent closure and sale of the facility. Other than this, they have also tried to raise funds by offering common stock and issuing convertible debts to try and get by. While these are red flags that should not be ignored, they don’t mean that these companies are doomed to close. They serve as precautions for those interested in the cannabis stock market investment. It is better to wait until the end of the year before giving these companies a chance.
There are also other companies like CannabisFN, Canopy Growth, Cronos Group, and Aphria that are in a better position in terms of funds. While the pandemic may make a financial forecast for these companies and even force them to shut down some of their operations, they have a better chance of bouncing back after the pandemic.
- CFN Media
- The Talking Hedge
- Medical Cannabis Sales Surge In Florida & Arizona
- Legalizing Marijuana May Be Too Complicated For New York Lawmakers To Do Via Zoom, Governor Says
- Florida’s attorney general tries new approach to stopping recreational marijuana
- Tom Howard at CannabisIndustryLawyer.com
- Miggy at Cannabis Legalization News
Interested in coming on as a guest? Email our producer at [email protected].