1 Risky Cannabis Stock to Avoid
The future of the cannabis industry is looking bright. Voters in Arizona, New Jersey, Montana, and South Dakota legalized marijuana for recreational use as of the election, and more states may follow. Several countries already allow recreational use in the E.U., and Luxembourg will allow adult-use sales starting in 2022, with other countries potentially moving forward even sooner. But don't let that fool you into thinking that any old cannabis company will outperform the market.
Tilray (NASDAQ: TLRY) is representative of many of the problems and risks of cannabis investing. Between its consistently high operating costs, poor revenue growth, and weak stock performance, investing in it would be a bold bet on a turnaround. Efforts to get the company to a more sustainable place over recent years haven't exactly panned out the way Tilray had hoped.
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Source Fool.com
