Although 2019 began well for cannabis stocks and industry hopes were (pardon the pun) high, it ended in disaster.
With Canada having legalized recreational pot in October 2018, growers on track to launch derivative products later in 2019, and legalization momentum remaining strong in the U.S., the forecast was for marijuana stocks to push toward profitability by year’s end. However, this didn’t happen.
In Canada, supply issues have been persistent since day one of legalization, and the launch of derivatives wound up being delayed by at least two months, until mid-December. Meanwhile, select U.S. states that have legalized recreational pot have been taxing the daylights out of consumers, which has made it virtually impossible to compete with black-market producers on price. In short, illicit growers have been thriving throughout North America.