The End of the High

Back in 2018, marijuana stocks were seen as the next big thing – since then calling the decline, “a cool off” would be an understatement. Tilray, a very popular marijuana stock, was at one point $300 dollars and today was trading around $11. My skepticism of the marijuana market extends past the general two year decline though, as many are significantly low on cash and in the uncertainty of the pandemic one thing still remains as certain: cash is king. The CEO of Tilray hypothesized that around 12 marijuana companies will go bankrupt at some point in 2020 due to their lack of reserved cash. A marijuana ETF (collection of marijuana stocks under one symbol) that I found is MJ. Trading at $14.28 at the end of today’s close after a small increase, the longer the lock down moves on the more the marijuana market will burn cash.

-Darnel Shillingford

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