Why Weed Stocks are NOT the Next GameStop

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Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Weed stocks have been rocketing in value this February, before crashing on Thursday. Reddit and the infamous /r/WallStreetBets forum got behind certain Canadian-based cannabis companies this last week (Canopy Growth Corp NASDAQ: CGC TSE: WEED and Aphria Inc NASDAQ: APHA  TSE: APHA most notably) spurring 100% plus gains. Many investors are now worried that the large runup and crash has now burst a bubble like GameStop Corp. NYSE: GME before it.

However, the cannabis story differs entirely. This recent dip could be more a case of the sector suffering from its own success.

There has been great momentum in the sector for good reason. Weed stocks have all been buoyed with expectations of U.S. federal decriminalization and interstate cannabis commerce.

Watch the entire interview for a full breakdown of the cannabis industry and its current trading patterns.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.