© Reuters. 4 Cannabis Stocks to Avoid in September
The cannabis industry is booming on the back of a dramatic increase in support for legalization and increased acceptance of recreational and CBD products across several states in the United States. However, some cannabis operators have been unable to capitalize on the industry tailwinds due to their shaky fundamentals. With this in mind, we believe that investors are better off avoiding the following stocks in the coming months: GrowGeneration (NASDAQ:), 4Front Ventures (OTC:), Charlotte’s Web Holdings (OTC:), Acreage Holdings (OTC:) (ACRHF). Let’s discuss these names.The cannabis industry continues to maintain steady momentum with the rising consumption of recreational and medical marijuana and growing support for decriminalizing marijuana at the federal level. With 36 states and four territories approving cannabis products for medical use, the changing legal landscape has boosted investors’ optimism about the industry.
Because Congress is perceived to be on the verge of decriminalizing marijuana at the federal level to unwind the decades-old war on weed, several pot stocks are gaining momentum. However, not all cannabis companies are poised to capitalize on the legalization of cannabis in the United States.
Given this backdrop, we think it could be wise to avoid cannabis stocks with weak growth prospects and bleak financials. Accordingly, we believe GrowGeneration Corp. (GRWG), 4Front Ventures Corp. (FFNTF), Charlotte’s Web Holdings, Inc. (CWBHF), and Acreage Holdings, Inc. (ACRHF) are best avoided now.
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