Marijuana Stock: Is the Pot Industry on the Verge of a Bubble?
The wild ride of marijuana stock continues, now with some analysts claiming marijuana stocks are overvalued and headed for a bubble.
With the drug slated to be legalized in Canada in 2017, investors are rolling in, their engines sparked, hoping to take advantage of what some predict to be a multi-billion-dollar industry with 3.8 million recreational marijuana users in Canada by 2021. Factor in that the U.S. cannabis market is projected to rise from $6.0 billion in legal states in 2015 to $50.0 billion in 2026 according to data from Cowen & Co, and you have a lot of zeroes luring investors into marijuana stocks.
But for others, they’re worried that it could all just be smoke.
“Oh, they’re going to pop,” Nick Brusatore, the largest shareholder of Affinor Growers Inc., said by phone to Bloomberg. Previously a mining company, the Vancouver-based firm now works in greenhouse technology for crops, including cannabis....
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