MARIJUANA Stocks in 2019 - The Future of Cannabis Stocks | Summary and Q&A

TL;DR

Many popular cannabis stocks are currently overvalued based on their price-to-revenue ratios, and investors should be cautious about investing in them.

Key Insights

• 👁️‍🗨️ Cannabis stocks are currently trading far above their revenue, similar to past bubbles like the dotcom bubble and the railroad bubble.
• 🛀 While these stocks have shown impressive growth, their valuations are not sustainable in the long term.
• 🪛 Investors should be wary of the direction of these stocks, which may be driven more by investor excitement than company performance.
• 🌥️ Waiting for major investments or buyouts from larger companies may offer better opportunities for investors.
• 🔬 Diversification is important to spread the risk of investing in these volatile stocks.
• 🤯 The video encourages investors to bear in mind that past performance is not always a reliable indicator of future success.
• 🤩 Profitability should be a key consideration when evaluating cannabis stocks.

Transcript

Hey YouTube. I'm Jimmy in this video. I'm going to go through what I believe to be the future of many cannabis stocks. Now I recently published a video called Three my three favorite cannabis stocks for 2019. You can see a link to the description below for that video and the premise of that video was that I chose companies that I believe had a chan... Read More

Questions & Answers

Q: Why does the video focus on price-to-revenue ratios rather than other factors in valuing stocks?

The video explains that using price-to-revenue ratios is more relevant for industries like cannabis that are not yet profitable. Other factors like profitability, margins, and growth are important but may not be applicable in this case.

Q: Can cannabis stocks continue to perform well despite their overvaluation?

While it's possible for these stocks to continue to rise in the short term, the video warns that overpricing like this tends to correct itself eventually. It suggests that investors should be cautious and not rely solely on past performance.

Q: How can investors make money in cannabis stocks?

The video suggests waiting for these stocks to receive big investments from major companies, as such investments can cause stock prices to jump. It also recommends diversifying and identifying potential acquisition targets among these stocks.

Q: What is the video's overall view on investing in cannabis stocks?

The video advises caution and suggests that investors should consider these stocks as speculative holdings. It warns that the current high valuations are not justified and that eventually, these stocks will be priced similarly to other stocks in the market.

Summary & Key Takeaways

• The video discusses the current market cap and revenue of popular cannabis stocks such as Canopy Growth, TilRay, Aurora, Cronus, Aphria, MedMen, and OrganiGram.

• It highlights the problem of these stocks trading far above their revenue and compares it to past bubbles like the dotcom bubble and the railroad bubble.

• The video suggests that investors should wait for these stocks to receive major investments from larger companies or prepare for a potential bubble burst.