Down 84% in 2019, Is CannTrust Holdings Now a Buy?
The year couldn't have started any better for marijuana stocks. During the first quarter of 2019, the Horizons Marijuana Life Sciences ETF, the very first cannabis-focused exchange-traded fund, gained more than 50%, while over a dozen popular pot stocks surged at least 70%.
After that, cannabis stocks became a major buzzkill. Many of the most popular pot stocks are now at or near multiyear lows, with few performing worse than Ontario-based CannTrust Holdings (NYSE: CTST), which has fallen 84%, through this past weekend.
But with CannTrust's valuation deflating as much as it has, the question has to be asked: Is CannTrust now a buy? Before answering that, let's weigh both the buy and avoid theses. Although I usually start by examining the reasons to buy a stock, I'm going to mix things up here and first explain why avoiding CannTrust might be a good idea.
Source Fool.com
