Are There Any Cannabis Stocks Worth Buying Right Now?
Cannabis stocks are in the dumps this year, but that doesn't necessarily mean you should avoid the entire industry. Certain types of stocks can make for good investments and be suitable for certain types of investors. Here's a look at which stocks might be worth investing in today.
It can be challenging to find good buys in the industry. If you look at a cannabis company's financials, they're often littered with adjusted numbers for profitability, margins, and sometimes even revenue.
What generally doesn't lie, however, is the cash position. And that's arguably the most important one for investors to consider when looking at cannabis stocks. If a business isn't generating positive cash flow from its day-to-day operations, then it really doesn't matter if it's profitable on an adjusted earnings basis before interest, taxes, depreciation, and amortization (EBITDA) basis.
Source Fool.com
