Three Pot Stocks Blowing Smoke
The cannabis industry is the hottest industry in the United States and it is growing at a rapid rate. This growth has led to a surge in the number of publicly traded cannabis companies. There are more 300 such companies and most of them will dissolve or shut down over the next two years.
When it comes to marijuana stocks, you cannot analyze them like your typical investment. These are developmental companies and a lot of them do not even generate revenue yet. For this reason, you cannot look into metrics like Earnings Per Share (EPS), Price to Sales (P/S) or Price to Book (P/B). Many investors do not have the time to perform thorough due diligence and look into all of the necessary factors, so we are going to focus on the most important ones. These are:
- Who makes up the management team
- Share count and capital structure ...
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