3 Hot Marijuana Stocks That Could Easily Turn $5,000 Into $500

3 Hot Marijuana Stocks That Could Easily Turn $5,000 Into $500

Investing in the most popular marijuana stocks can easily make you big bucks, as evidenced by the AdvisorShares Pure US Cannabis ETF losing over 65% in the last 12 months alone.

With supply and demand mismatches occurring frequently and the stock market aggressively souring with risky growth assets like cannabis stocks, now is the time to shake up underperforming companies.

Apparently, It’s Pretty Hard To Sell Pots And Make A Profit.

If you decide to step into the world of cannabis in the near future, avoiding industry shooting stars is key to protecting your wealth. Let’s take a look at three cannabis companies that are likely to wipe out your $5,000 investment.

 

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1. Aurora Cannabis

Aurora Cannabis (ACB -4.23%) is down over 96% over the past three years and remains an excellent choice for loss-seeking investors. There are many problems, but perhaps the most dangerous to shareholders is his habitually overly optimistic communication style.

For example, Aurora claims to have the highest adjusted gross profit margin among Canadian cannabis companies, beating out giants such as Tilray Brands (TLRY -2.10%). However, when we look at our competitors’ unadjusted gross margins, the story is very different, as you can see below.

A customer investigates a display case with marijuana edibles while shopping at a marijuana dispensary.

2. Sundial Growers

Sundial Growers (SNDL -3.47%) is another top-rated cannabis strain likely to turn thousands into hundreds, but its lack of debt gives it a significant advantage over Aurora. Over the past 12 months, his earnings have grown by just over 5.9% to more than $50.7 million over the past three years.

That’s pretty slow to compete in a fast-growing industry like cannabis. Over the same period, gross profit over the last 12 months, it fell by 100.6%. The problem with Sundial is the lack of a clear strategic focus. It sells cannabis products, but it also has investments in marijuana companies and owns a major Canadian liquor chain called Alcanna.

With 183 stores, it has the largest cannabis retail footprint in Canada, with 171 liquor stores enjoying parity among Canadian independent liquor retailers. As such, we pay a huge overhead in distribution to grow facilities, cannabis retailers, liquor retailers, and all of the above.

3. Tilray Brands

Unlike the two cannabis breeders above, Tilray may have a problem solved, and that’s what makes it particularly appealing. The largest market share in Canada, with $613.2 million in revenue over the last 12 months. Beyond, thin but high-profit margins make it look like an attractive investment. But like Sundial Growers, the focus is pretty divided, and it could end up being an issue that drives the stock price higher.

How to turn $500 to $1,000 quickly - Quora

Must Read: Marijuana stocks soar on report of Senate decriminalization bill

Game-Changing Factors:

  • Cannabis stocks are rising.
  • Poor financial performance exacerbates the situation.
  • A company trying to compete in too many markets at once is a risky bet.

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