>>21374117>>21374167This is the fact I stumbled upon while trading the 2017 canadian dude weed bubble. There are two critical issues with the crop:
1. While legal in the places it's now legal, that legality has universally come packaged with a number of government hooks. Regularity hooks and tax hooks. It's a ton of bullshit just to sell a crop. Marketing is hard, securing land to run your facilities is hard, moving product on the logistics end is hard, brick and mortar lease and location is hard, online is- you get the picture here. The profit margins are not impressive at all, either.
2. Weed is not a growth market. It was never going to become greatly more popular when legal than it already was when illegal. It's not really a party drug. Most people feel the need to plan around their use of it more carefully than they would with some small amount of alcohol. Alcohol has a big market from, for example, one glass of wine or beer with dinner type drinkers who don't exceed that. There isn't a weed equivalent to that demographic.
What do with weed stocks? Treat them like pump and dumps. Short term, momentum trade, get out. No long hodling and no penny trash. The large cap ones are volatile enough without the CTO risk of the penny startups.
