Cannabis stocks are all the rage, but a BMO Capital note downgrading Cronos Group (CRON) - Get Cronos Group Inc Report based on valuation reiterates the importance of focusing on the fundamentals of individual companies.
Paul Rosen, managing director of Toronto-based BreakWater Venture Capital, believes that cannabis stocks will provide the same safe haven during any potential U.S. economic downturn that vice stocks have traditionally provided for investors.
But not all cannabis companies are created equal, and Rosen gives advice on what to look for when deciding to invest in a pot stock.
Year to date, the ETFMG Alternative Harvest ETF (MJ) - Get ETFMG Alternative Harvest ETF Report is up 1.3%, recovering from an end of the year downturn that hit pot stocks across the board and forced the ETF down below the $24 per share level. MJ is trading above $36 per share in March.
Rosen also breaks down the growth drivers for the cannabis industry going forward as legislatures across the country continue to soften their stance on both medical and recreational use.
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