The US Marijuana Index is up 7.7%

RIVERSIDE, Calif. - Dec. 1, 2019 - PRLog -- In today's news, we are going into a short week of trading and overall, the US Marijuana Index is up 7.7% from the week before. The Marijuana Index is comprised of 10 of the largest publicly traded companies, including Aurora Cannabis, Medmen, Cronos, Tilray and Canopy Growth.

Speaking of Canopy Growth, it The company announced that it has won an operating and secure storage permit from Health Canada, which is the country's cannabis industry regulator. The permit is for a beverage production and development facility.
This already operational production line, is part of Canopy Growth's existing facility in its headquarters town of Smiths Falls, Ontario.
The company isn't wasting any time starting production of drinks infused with cannabis substances. In Monday's press release announcing the new license, Canopy Growth said it was in production the same day the permit was granted. The product will be available across Canada "within weeks," the company said, with specific timing depending on each province.

So, are the companies in the Marijuana Index a good buy? Well, look at the facts: The stocks took off last week upon news that a US House of Representatives introduced the MORE bill to decriminalize cannabis on a national level, only to decline on the realization that the Senate is unlikely to even consider the bill.
While their coffers still may hold tons of cash, the valuation of the stocks are grossly overpriced. If you subscribe to the pie in the sky mentality, then the streets of cannabis are likely paved with gold. If you are more pragmatic, then expect a continued decline, possibly up to 50% more, before things turn around.

As I stated two weeks ago, who knows where the markets will head, but as it seems today, good news is short lived and the long play is skeptical. While I am no stock expert and this certainly isn't meant to be stock advice, what I can say is delving into the financials and looking for fiscal responsibility is hard to come by as CEO's are replaced, markets are slower to develop than expected, and burn rates far exceed revenue streams.

Cannabis Market Insider gives you an in side financial look at today's cannabis marketplace. Gain insight on current pricing and company reports.

Journalist: Dr. Wise (aka Dr.D)

https://youtu.be/i_0jGsRdotQ