Up in Smoke: This Marijuana Stock Imploded Last Week
Few industries have put a wider smile on investors' faces this year than marijuana. As recently as June, the average marijuana stock was higher by more than 330% over the trailing 12-month period, and if we look at the sales figures behind the legal weed industry, and favorability surveys, it's not hard to understand why investors are so optimistic.
In terms of U.S. sales, Marijuana Business Daily's newest report entitled "Marijuana Business Factbook 2017" forecasts a quadrupling of legal sales (medical and recreational) between 2016 and 2021. This would imply a U.S. market that's generating $17 billion in annual sales by 2021. Finding industries that can consistently grow around 25% to 30% per year over a five-to-10-year period is practically impossible, which is why investors have latched on so willingly to marijuana stocks.
Image source: Getty Images.
Source: Fool.com
