Pot stocks have taken an absolute shellacking in recent months. Just look at the top five Canadian cannabis producers. Shares of Canopy Growth (NYSE: CGC), Aurora Cannabis (NYSE: ACB), Cronos Group (NASDAQ: CRON), Tilray (NASDAQ: TLRY), and Aphria (NYSE: APHA) are all down more than 30% from their highs earlier in the year.
My colleague George Budwell even wrote recently that “the marijuana stock bubble has officially burst.” But has it really? I don’t think so — at least not in the sense that many investors think of how a stock bubble ends. Here’s why.
It’s been worse
Probably the most important thing to know is that all of the top pot stocks have seen worse declines than what they’re experiencing right now. You don’t even have to go back very far in time to see that this is true. Take a look at the following chart that depicts the percent off highs for the leading Canadian cannabis stocks in 2018.
– Read the entire article at Yahoo News.