The marijuana industry is shaping up to be a once-in-a-generation investment opportunity, although it’ll require the patience of long-term investors.
On the surface, the legal weed industry looks to be on track for between $50 billion and $75 billion in annual sales by the end of the following decade. That’s up from just $12.2 billion in worldwide revenue in 2018, according to Arcview Market Research and BDS Analytics. Assuming you’re invested in a basket of pot stocks, this growth should translate into at least some of the companies you own turning out to be winners.
Then again, the short term brings…
numerous hurdles. Canadian supply has been severely constrained, with regulatory agency Health Canada completely bogged down by more than 800 cultivation, processing, and sales license applications, and compliant packaging solutions lacking. This had led to falling sales and profit estimates for most marijuana stocks, thereby testing the patience of investors, and the premium bestowed upon pot stocks.
One of the most popular pot stocks that’s caught in the middle of this bull-bear debate is British Columbia-based Village Farms International (NASDAQ:VFF). Although it’s reasonably small at a market cap of $667 million, as of this past Thursday, May 23, it’s hands down the top-performing marijuana stock in 2019. Year to date, Village Farms’ share price has surged more than 310% (in Canada).
The big question is: Should investors still be buying Village Farms International…
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