BigMike Straumietis, Global Cannabis Expert, Advises Research Before Investing In Canadian Cannabis Stocks
Billions of dollars have poured into Canadian cannabis stocks in the last few months as the country prepares to legalize recreational cannabis.
LOS ANGELES, Sept. 27, 2018 /PRNewswire-PRWeb/ -- BigMike Straumietis, founder and CEO of Advanced Nutrients— the No. 1-selling cannabis brand in the world — advises that potential investors thoroughly research Canadian cannabis stocks before bankrolling these companies.
In the past few months alone, billions of dollars have poured into Canada's cannabis industry as the country prepares to legalize recreational cannabis this October. Canada's federal government also plans to legalize consumable forms of the plant in 2019. As a result, and with the possibility that the US and other countries will follow suit, many investors are now wholeheartedly buying into the industry.
"I would caution investors to do their due diligence before going in deep on a random cannabis startup," BigMike warns. "Right now, we're seeing some stupid money being thrown at these Canadian stocks."
In a fledgling industry populated by new businesses, extreme spikes and drops in value are seen as par for the course. For instance, the value of one company, British Columbia-based Tilray, jumped tenfold since its initial public offering just two months ago. The company conducted $20 million in sales in 2017, but it's now worth considerably more.
"Some will be around for the long haul, but a lot of these companies will die off quickly," BigMike continues.
With the purchase of cannabis stocks, giant gains continue to rise for Canadian companies listed on US stock exchanges. However, some experts are concerned that the expected payoff will be underwhelming.
Today, cannabis remains illegal in the US at the federal level. It is legal for recreational use in nine states and Washington, D.C. and for medical use in 31 states, according to the National Conference of State Legislatures.
Although the temptation to invest in Canadian cannabis stocks is high right now, BigMike concludes with this warning: "Investors need to do some serious homework before going all-in."
SOURCE “BigMike” Straumietis
Share this article