There's a New Most-Hated Pot Stock on Wall Street
Heading into 2019, marijuana stocks looked to be set up for success. Canada had recently legalized recreational marijuana, derivative pot products were set to hit dispensary shelves later in the year, and legalization momentum in the U.S. seemingly couldn't be stopped. The table appeared set for the green rush to produce "the green" by year-end. However, things didn't go as planned.
To our north, supply issues have remained persistent since day one of legalization in October 2018, with Ontario issuing far too few licenses and Health Canada struggling mightily to work through an enormous backlog of cultivation and sales license applications. Health Canada also delayed the launch of derivatives, pushing any chance of profitability for Canadian pot stocks out even further.
Meanwhile, marijuana stocks in the U.S. have been clobbered by high tax rates in select states, the ability of jurisdictions to deny retailers a presence, and a resilient black market. In California, for instance, legal weed sales have just about been stagnant over the past two years.
Source Fool.com
