2 Cannabis Stocks Down More Than 10% Last Week
StockNews
Published Aug 18, 2021 11:18AM ET
Updated Aug 18, 2021 12:30PM ET
2 Cannabis Stocks Down More Than 10% Last Week
While the cannabis industry has generated significant momentum lately on legalization hype and growing demand for cannabis products, uncertainties surrounding the potential for federal level legalization could limit the industry’s growth prospects. Keeping this in mind, we believe investors should avoid financially weak cannabis stocks Cronos Group (NASDAQ:CRON) and GrowGeneration (NASDAQ:GRWG) that have lost more than 10% in price over the past week. Read for an explanation.The cannabis revolution is gaining traction as the legalization of recreational and medical cannabis accelerates. So far, 19 states have allowed the cultivation and use of recreational cannabis. However, while most cannabis companies are well-positioned to profit from the expanding domestic and foreign marijuana markets, some appear to have lost momentum due to strong competition in the industry.
Furthermore, the cannabis industry’s prospects appear to be uncertain owing to the Senate’s disagreement over the decriminalization of marijuana at the federal level. The Cannabis Administration and Opportunity Act, floated by Senate majority leader Chuck Schumer last month, which would remove marijuana from the Controlled Substances Act, does not yet have sufficient supporters in the Senate.
Amid this uncertainty, we think it would be wise to avoid fundamentally weak cannabis stocks Cronos Group Inc. (CRON) and GrowGeneration Corp. (GRWG). These two stocks have declined more than 10% in price over the past week.
Continue reading on StockNews
Get The News You Want
Written By: StockNews
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.