Which Marijuana Companies Will Survive ??

  • By Trevor
  • August 24, 2017
  • Comments Off on Which Marijuana Companies Will Survive ??

Remember the dot-com era? Most of us who were into economic events during the last years of the previous millennium, will most likely remember the events of this epoch. If you’ve forgotten, it was a period of too much market speculation-occurring from 1997 to 2001. During this period, there was an increase in the usage and adaptation of the Internet by businesses and consumers. Many Internet-based organisation referred to as dot-coms, were founded, many of which failed. Marijuana companies today are kinda in an almost similar dilemma.

With so many marijuana companies opening overnight and being listed on Stock Exchanges, the rate at which it’s happening worries me a bit. I’m all for marijuana legalization, but I have a bad feeling many of these new companies won’t last long. Sadly, investors are gonna  get burnt. So much speculation exists today when it comes to the future of marijuana stocks. No one really knows what the future legislation will stipulate. Today, so many grey areas exist within the Marijuana Industry, and with time when the laws are finally clarified, not everyone will still be able to be profitable.

Today, countries like Canada have over 30 marijuana companies on the TSX, with many of these highly overvalued. This is all because no one really knows the true value of weed. Today legal marijuana businesses are selling marijuana with similar prices to street dealers, not making much sense at all. Street dealers who have an added risk of being arrested, have historically always charged more due to that added risk. With full legalization, the price of weed is going to drop drastically and competition will increase. Today many folks have the burden of getting a doctors authorisation first, but once that obstacle is removed, many changes within the industry are going to change.

So which particular companies will survive then? I think it’s very tough to tell, but some will surely survive. A lot of them will most likely end up being bought by much bigger companies and some are just going to fail to compete and eventually close down. Those that have set up clear long term goals, especially those that plan to go international, are the ones most likely to survive. I could be wrong, but I remember learning that excess speculation with penny stocks, usually leads to bankruptcy for many companies. Today with so many marijuana penny stocks, the future is surely gloomy.

Remember, legalization is just around the corner and is as sure as death. Keep the bongs loaded and the joints burning folks.

Categories: Marijuana News

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