The second full week of August 2019 might go down in the history books as a turning point. This was when the benchmark Dow Jones index absorbed an 800-point drop, the worst day so far this year. Naturally, the volatility impacted already beleaguered marijuana stocks.

In my view, the cannabis market suffered from a two-pronged attack. First, it takes a brave soul to go against broader market bearishness. Obviously, there were few takers of the contrarian approach. Second, cannabis players delivered poor earnings results. That sent skeptical investors to run for the exits, turning marijuana stocks to buy into something else entirely.

Funded Capacity is used to approximate future cannabis production that has been fully funded to be constructed or operated (most are not fully constructed/operating). Investors use EV/Fully-Funded Capacity to help value a cannabis company. A more attractive investment will have a lower EV/Funded Capacity.

Today we have weeded out four Canadian cannabis stocks strictly with Canadian operations that trade at a discounted EV/Fully-Funded Capacity. For reference the average ratio was 11.7x.

The Aurora Cannabis (TSX:ACB)(NYSE:ACB) acquisition of Hempco Food and Fiber is another brilliant and purposeful branding move from Terry Booth, Aurora’s fearless founder and CEO.

The acquisition comes at the perfect time to purchase the stock below $8.00 per share. Aurora will now fully own the hemp-derived food and nutritional supplement brands, Planet Hemp and Praise.

The Hempco acquisition expands hemp-derived CBD extraction capacity to research and develop topical medical marijuana products. In fact, the Hempco acquisition is perfectly timed as its new, state-of-the-art Nisku facility nears completion.

 Aurora Cannabis Inc.(“Aurora” or the “Company”) (NYSE | TSX: ACB), the Canadian company defining the future of cannabis worldwide, is pleased to announce today the completion of the previously announced plan of arrangement (the “Arrangement”) with Hempco Food and Fiber Inc. (“Hempco”) (TSX-V: HEMP) pursuant to which Aurora has acquired all of the issued and outstanding common shares of Hempco (“Hempco Shares”) not already owned by Aurora, reflecting a valuation of approxi

It’s no question that the marijuana industry is a budding space. The industry saw $10.9 billion in sales last year, not including sales that occurred illegally. Not to mention analysts predict this figure could jump by anywhere between $50 billion to $200 billion over the next ten years.

However, somewhere along the way things went awry for cannabis stocks. A few have actually seen growth slow with some being bogged down by supply-side issues and tax concerns in the U.S. That’s not to say that these stocks won’t see upside again, but investors will have to be patient and pay close attention to determine whether or not they can recover.

Analysts from Wall Street’s top firms highlight 3 beaten-down cannabis stocks to watch. Let's take a closer look:

Among marijuana equities, Hexo (NYSE: HEXO ) stock continues to gain increased attention. An alliance with Molson Coors (NYSE: TAP ) and a solid base of business in its home province of Quebec have bolstered its business. Also, it looks poised to establish another niche once Canada legalizes cannabis-infused beverages.

Steadily, the cannabis industry is budding into a big-money business. After generating a little more than $3 billion in worldwide licensed-store sales in 2014, the global pot industry nearly hit $11 billion in sales last year. By 2024, the team of Arcview Market Research and BDS Analytics foresees worldwide weed sales surpassing $40 billion, at least according to their newest report, State of the Legal Cannabis Markets.

Regardless of how widely sales estimates vary among researchers and on Wall Street, it's abundantly clear that the legal cannabis industry is going to be a force to be reckoned with – and that could mean great news for investors.

So, you want to open up a pot shop.

Perhaps you’re a shopkeeper at heart, drawn to a rare bright spot in a retail landscape mired in doom-and-gloom. Maybe you missed out on the first phase of the green gold rush and you’re looking to make your mark on this (literal) growth industry, knowing it’s a sector where consumers have indicated a preference for buying in-person rather than online. Or maybe you’ve just heard that Canadians bought $85 million dollars’ worth of legal cannabis in May of this year and want your own piece of that green.

Is Canopy Growth (TSX:WEED)(NYSE:CGC) heading into freefall? The stock fell by 14.4% to $36.41 after the largest cannabis producer reported $1.28 billion losses in the first quarter of fiscal 2020 ended June 30, 2019. It was a far cry from the $90 million loss in Q1 of fiscal 2019.

Likewise, Canopy’s operating loss rose by 300.65% to $123 million in the June quarter compared with the same quarter a year ago. The latest earnings result is a sign that Canopy would not be profitable anytime soon.

It seems investors have no patience with unprofitable pot stocks at the moment. Staring down a recession while sitting on potentially overvalued pot stocks is not a comfortable position to stay in for too long, and with the sell-off in cannabis stocks on the TSX in the last few weeks, it would appear that shareholders have finally decided that enough is enough, with very few exceptions.

With signs that both China and Germany could be facing their own recessions, investors all over the world are facing some tough decisions. Two questions are on every stock investor’s lips at the moment: Should you sell, and what should you hold on to if you stay in the game?

Let’s take a look at which Canadian cannabis stocks are on the move amid a growing storm of market stressors.