Marijuana stocks, after declines of over 50%, are now only ludicrously overpriced

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A look at this pot stocks chart and... 'Wouldn’t you really like a nice little index fund right about now?' via brian_livin

The idea is that even a stiff feline can rebound off a concrete sidewalk if tossed from the top of a building.

Compare those three-digit ratios with some of the most successful publicly traded names in industries other than marijuana. For example, the enterprise value of Amazon AMZN, +0.57% is 3.4 times sales, while Alphabet’s GOOG, +0.05% GOOGL, +0.06% is at 4.6 times, based on the stock prices as of the Oct. 11 close.

Deaths and serious lung ailments that are attributed to cannabis-vaping devices are all over the news lately, but that isn’t the primary cause of the publicly traded firms’ pounding. The Centers for Disease Control and Prevention first warned Aug. 1 about the illnesses. As the graph shows, the major cannabis stocks had already fallen more than halfway down their rocky road before vaping warnings became widely known.

Despite price collapses that have slashed the major cannabis companies’ stock prices by more than half, the valuations have only moved from ludicrously overpriced to merely horribly overpriced.

 

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Brian_Livin I bought $CNAB on the way down on new hiring and lots of new revenue coming in. Market cap is now below what they make in a quarter. Sick

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