If the legalization of cannabis was supposed to hurt the black market, the new head of Cannabis New Brunswick says it hasn't happened.

In fact, he believes more illegal dispensaries have opened up in the province, and that's curtailing the province's profits from cannabis.

Patrick Parent has been on the job for just over two months, but says the province won't be making money off cannabis this year. 

Somewhat atypically for a marijuana stock, Cronos Group's (NASDAQ:CRON) latest growth initiative isn't an acquisition -- it's an initial public offering (IPO).

Yes, the company is already listed on the Toronto Stock Exchange and the Nasdaq, and no, it didn't float a pack of new shares on either. Rather, the company's latest stock market adventure took place far overseas. Here's the skinny about Cronos' recent involvement in an IPO, and why you might not be familiar with it.

Canadian cannabis producers and extractors are sitting on a massive stash of unfinished inventory that is growing so quickly that some analysts are concerned it could precipitate a price crash in the burgeoning industry.

Since January of 2019, the amount of unfinished inventory of dried cannabis has nearly tripled, reaching a staggering 328,000 kilograms at the end of August. That compares to roughly 118,000 kilograms eight months earlier, according to Health Canada data.

It can be challenging to witness stocks that you have invested in on the decline, right before your very eyes. You look for stocks that can provide you with high returns in the future. Facing losses is the last thing you want to think about when investing in stocks.

However, stocks in a volatile industry are prone to both significant gains and crippling losses. I think you would agree that one of the most volatile sectors operating on the TSX right now is the legal marijuana industry.

Companies rose to phenomenal heights in anticipation of the legalization of recreational marijuana. In lieu of reaching profitability and rising to greater heights, pot producers are struggling to achieve profitability.

A New York-based analyst says Canada’s cannabis sector has bottomed out, predicting several positive events in the coming year should catalyze pot stocks as valuations trade at two-year lows.

Cantor Fitzgerald Analyst Pablo Zuanic, who initiated coverage of six cannabis stocks Monday, said in a report to clients that several pot companies are attractive at current levels based on the long-term opportunity and that concerns hanging over the sector are priced in and overdone.

Marijuana stocks have been through their own share of highs and lows so far this year. Despite being a fast growing industry, supply issues in Canada have affected legal marijuana purchases of late.

High tax rates in some of the U.S. states as well as increase in black-market producers, especially in North America, have hurt sales. As a result, marijuana companies have been seeing a drop in operating margins across the board and have significantly lost value.

Yet, as we focus on November, there are three marijuana stocks that look like solid bargains, while one in particular should be avoided in the near future. Let us take a look —

This past October,

HEXO (HEXO), one of the important players in the cannabis space, has been in the news for a while now.

The company reported its fourth-quarter earnings on October 28. HEXO’s preliminary results were disappointing with lower revenues.

In the fourth-quarter earnings call, the company discussed how it thinks that legal cannabis won’t solve the problem with the illegal market in Canada.

Let’s discuss what HEXO’s management said.

Hungry for cannabis

Aphria Inc. plans to bring its newly-licensed Diamond facility to full capacity in the coming weeks to meet demand for vaping and edible products, the company’s chairman and interim CEO said while shrugging off any concern about oversupplying the Canadian cannabis market.

The Leamington, Ont.-based company announced Monday it received a cultivation licence from Health Canada for a cannabis greenhouse facility that will add 1.3 million square feet of production space and 140,000 kilograms in annual capacity to its operations.