The cannabis stocks have lost significant market value since July 2019. The CannTrust scandal drove the overall market lower.

Earlier this month, Canopy Growth announced its quarterly results which did not inspire investor confidence. These events drove cannabis stocks lower. So, does this pullback provide an opportunity for investors?

Some analysts indicate their displeasure with a stock by lowering their price target. Others cut their rating on such stocks. And a few analysts don't hold anything back, expressing their feelings in no uncertain terms.

Count Vertical Group analyst Gordon Johnson in the last category. Johnson recently slashed his price target for Tilray(NASDAQ:TLRY) to $4 per share. That's more than 85% below the cannabis producer's current price. The analyst also wrote to investors that they should short-sell Tilray and lambasted the company's performance. But is he right? 

The Alcohol and Gaming Commission of Ontario (AGCO) will select winners from a pool of applicants that sent in expressions of intent earlier this month. The winning stores are expected to open in October.

Toronto will get the largest amount of brick-and-mortar stores, adding 13 new locations to the existing five that were opened after the first round of the lottery in January. The larger Greater Toronto Area will be awarded with six stores, and other locations will be divvied up across what the AGCO refers to as the north, east and west regions.

Things just keep getting uglier for cannabis stocks. Following a brief uplift, CannTrust Holdings (TSX:TRST)(NYSE:CTST) resumed its tumble on news that Health Canada had found even more unlicensed grow sites. CannTrust shares have fallen about 56% since the scandal began, while other marijuana stocks are being hit hard as well, whether due to regulatory concerns or growing losses.

The marijuana industry projects as a big-money business. Already on track for more than $14 billion in legal global sales in 2019, various Wall Street forecasts have opined that cannabis sales could hit $50 billion to $200 billion by the end of the next decade. That, presumably, leaves plenty of room for industry expansion, and for investors to make a boatload of money.

The problem is that there's a veritable laundry list of marijuana stocks to choose from, with new pot stocks coming to market on a fairly regular basis. That makes finding a place to begin your research somewhat challenging.

It’s been a wild ride for cannabis investors so far this summer, and not like in the summer of 2018.

Whereas last year, there were the super highs from investors excited about the new industry, after several ups and downs, investors have become a lot more wary of where stocks are headed. With some cannabis stocks reporting profits and others severe losses, many are wondering where cannabis could be headed in the next month — especially as derivatives legalization comes ever closer.

Cannabis stocks perked up on Tuesday, with broad-based drops across North American markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 0.7% at 193.2 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF dropped 0.8% to C$15.33, while the OTCQX Cannabis Index was flat at 669.1 points.

Buds

Despite the drops, a number of cannabis stocks were outperforming Monday. 

BevCanna Enterprises Inc (CSE:BEV) shares were on the rise after the Vancouver-headquartered firm announced Health Canada has granted it a research license to examine stability and homogeneity of water-soluble cannabinoid infusions in water-based beverages. 

If you’ve been following the cannabis industry, you’ll know that most companies are telling a growth story. While some tales are more exciting than others, it remains to be seen whether these cannabis companies can reach their full potential.

On that front, one small pot stock just made a big progress toward reaching their target.

I’m talking about Green Organic Dutchman Holdings Ltd(OTCMKTS:TGODF, TSE:TGOD), a Canadian cannabis producer headquartered in Toronto, Ontario.

Backlogs in permit processing at Health Canada have the potential to stall cannabis research in this country, according to a University of Guelph researcher.

In an article written Monday, the American Association for the Advancement of Science said as of the end of July, 251 researchers were waiting in line for their permits to be approved. 

When cannabis was legalized in Canada on Oct. 17, it became legal for individuals to have up to 30 grams for personal use, but researchers must apply for a permit under the Cannabis Act to study the plant for recreational — or medicinal purposes. 

That means Mike Dixon's Ph.D and master's students have to partner with an industrial cultivator in Napanee to get real-life experience. 

There has been turmoil in the cannabis industry over the course of the past few months. But it needs to be reiterated that the sector remains a hugely valuable one. Quarterly results of some of the marijuana penny stocks is a case in point. If there is room for a lot of growth in a sector, then it is also possible for smaller operators to grow quickly to turn into big players.