Could some of the most popular pot stocks go belly-up?
The table appeared set in 2019 for cannabis stocks to deliver significant sales growth and push toward recurring profitability. It was supposed to be the year when pot stocks proved to doubters that the cannabis industry wasn’t a fad, and that the pricey valuations bestowed on marijuana stocks were backed up by real potential.
But that’s not how things shook out. When the curtains closed on 2019, cannabis stocks were mired in a steep, nine-month downtrend that was precipitated by persistent supply problems in Canada, exorbitant tax rates in a number of recreationally legal U.S. states, and a resilient black market.
While most Wall Street analysts and investors expect a better year for pot stocks in 2020, this may not be the case for all cannabis stocks. There are a handful of marijuana companies that may not survive the year, meaning 2020 could be remembered less for growth in the pot industry and more for cannabis stock bankruptcies.
MedMen might be the poster child for marijuana bankruptcies
Though it was inevitable that not all marijuana stocks were going to be winners, the idea that bankruptcy is a real possibility has been brought to light by the struggles of vertically integrated multistate operator MedMen Enterprises (OTC:MMNFF). [Read More @ The Motley Fool]
