Is Popular Cannabis Stock HEXO a Buy in 2020?
The cannabis industry was supposed to be unstoppable in 2019, with Canada launching derivatives and a number of U.S. states delivering strong organic growth. But reality hadn't come close to matching the perception by the time the curtain finally closed.
Following a red-hot first quarter that saw more than a dozen pot stocks gain at least 70%, cannabis companies finished the remainder of the year in a steep nine-month downtrend. Persistent supply issues in Canada, exorbitant tax rates on cannabis in select U.S. states, and a huge black market presence have all made life difficult for North American pot stocks.
This decline also has some investors believing that marijuana stocks may now be intriguing values. This is especially true of Quebec-based HEXO (NYSE: HEXO), which shed 54% of its value in 2019 and lost more than 80% from its closing high in late April.
Source Fool.com
