Neptune Wellness Solutions: Buy the Dip?
While the market opportunity of the fledgling cannabis industry is undeniable on paper, the direction and velocity of policy decisions in major markets have been difficult to pin down in reality. The regulatory uncertainty, coupled with the sheer number of companies hoping to carve out a piece of the market, may make it difficult for investors to identify the stocks and businesses best positioned for success.
One way to remove some risk from the search for cannabis stocks is to focus on companies with supply or service agreements already in place. Case in point: Neptune Wellness Solutions (NASDAQ: NEPT). The extraction services company has contracts with some of the top cannabis producers. It promises to deliver a rapid expansion of both extraction capacity and revenue in the next few years, which has sent shares soaring in the last year or so. Following a 30% decline in the last month, should investors with a long-term mindset consider the stock a buy?
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Source Fool.com
