Here's Why Pot Stocks Should Stop Promising Profits
Why is it that Canadian pot companies are struggling while revenue is soaring for their peers in the U.S., where marijuana is not even federally legal?
Firstly, Canada is a much smaller market than the U.S. With a population of just under 39 million, it's comparable to California. Secondly, regulatory hold-ups delayed the opening of cannabis stores in many provinces. In addition, some Canadian pot companies' errors have left them in distress.
As a result, cannabis players like Aurora Cannabis (NASDAQ: ACB), and Canopy Growth (NASDAQ: CGC) -- which were popular with investors for many years -- have failed miserably and consistently to report positive adjusted earnings in the last two years. Yet these companies keep making promises on the subject every quarter.
Source Fool.com
