Here at CLR we are only too happy to admit that we are no finance markets experts and we stay well away from playing the cannabis stocks lottery.. if we report it we don’t play it is our mantra.
Around November the Cannabis propaganda has been in full swing and it always smelt a bit fishy to us so it os good to see the publication that knows what it is talking about confirm our suspicions..
The FT write..
Analysis shows 43 out of 59 companies in major marijuana funds were lossmaking
Investors in the burgeoning array of exchange traded funds tracking the sector are being warned to ensure they understand exactly what it is they are buying.
Even some ETF managers are raising red flags. “In recent months, Canadian [cannabis] stocks have traded in a way that doesn’t make sense.
They have traded on false optimism, on hype and on misinformation,” said Dan Ahrens, chief operating officer and portfolio manager at AdvisorShares, the largest marijuana ETF provider by assets.
Financial Times analysis of 59 companies found in eight major cannabis ETFs reveals that 43 made a loss over their last reported 12-month period, 27 chalked up net losses that were larger than their total revenue, and six — with a combined market capitalisation of $794m — had no sales at all. Moreover, of the 16 that were profitable, 14 were not primarily cannabis companies at all, and were at most tangentially involved in the industry.
Read the full article at https://www.ft.com/content/8db5d51b-ad69-48e7-9e58-fa2a191bdf96