2 Marijuana Companies That Have Recently Turned Profits
Marijuana companies are known to be risky investments. U.S.-based marijuana businesses operate in a quasi-legal environment where cannabis can be both illegal at the federal level but still legal in certain states. It can make for a confusing situation for investors who aren't familiar with the industry. The short answer is that the federal government effectively chooses to let the individual states do what they want with respect to marijuana, even though it could technically step in and shut marijuana companies down.
The problem, however, is that creates a really challenging environment for many marijuana companies. If they're operating in Washington State and Oregon, for instance, they are OK to do so within those bubbles. But they can't legally transport cannabis across state lines. This is just one example of the inefficiency and additional costs this brings to a marijuana company looking to be a dominant player; growth isn't easy as there's no logistical advantage to be operating in neighboring states.
This is why turning a profit can be particularly impressive in the industry. Two marijuana producers that recently posted profits, however, are Cresco Labs (OTC: CRLBF) and Green Thumb Industries (OTC: GTBIF). Here's a look at how they have been able to avoid staying out of the red.
Source Fool.com
