Are Pot Stocks Ever Going To Be Profitable?
This is a question that cannabis investors need to ask themselves.
The biggest players in the market continue to report large net losses. In fact, in spite of all of the excitement surrounding Canadian cannabis, not a single producer has yet to report a dime of net profit.
A key risk facing producers (especially the smaller ones) is the likelihood that the domestic market (in Canada) will become substantially oversupplied over the next 2 to 3 years. 157 cultivation licences have been granted to date and more applications are being processed. The top 10 producers alone have plans to ramp up production to well over double the expected domestic demand.
It is important to be selective when investing in pot stocks. There are around 180 companies listed today in the cannabis sector and only a small handful will likely be successful long-term and make their investors money.
Click the link to find out more about KeyStone’s 2019 Cannabis Report