4 Signs the Cannabis Industry Is Still Ultra-High-Risk
If you're looking to invest in the cannabis industry, you have to be prepared to take on some significant risks. The industry's been struggling during the past year, and a turnaround is not necessarily imminent. This year is already setting up to be a challenging one for many pot stocks, and investors should be careful not to be lured in by low prices. Here are four signs that the industry is still extremely risky and why a turnaround isn't likely just yet:
When things were going well for the industry, all the talk was about mergers and acquisitions (M&A). Aurora Cannabis (NYSE: ACB) was busy scooping up many of its rivals, buying MedReleaf Corp for $2.5 billion and CanniMed Therapeutics for $852 million, both in 2018. There was also excitement about a partnership with soft drink giant Coca-Cola (NYSE: KO).
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Source Fool.com
