This translation has been automatically generated and has not been verified for accuracy.When it comes to investing in cannabis stocks, the marijuana bud’s faded bloom has shown few signs of returning this year.
“The big issue there has been an issue of oversupply,” said Canaccord Genuity analyst Bobby Burleson. “This last earnings season you saw companies struggling from excess supply and shortfalls in demand.” The Department of Justice is still reviewing several proposed deals that were announced late last year and early this year for possible antitrust concerns.Two companies involved in one of those mergers said last month that they had entered a 30-day waiting period after complying with a request for more information on the deal from the Department of Justice.
A U.S. House committee approved a proposal to decriminalize and tax marijuana at the federal level last month. The news only gave pot stocks a momentary bump. It’s unclear whether the measure will be taken up in the GOP-controlled Senate.Vaping-related deaths and illnesses have also hurt cannabis stocks, though recent data suggest the scare dampened sales mainly in California, where vaping products make up a larger share of overall sales.