Is the Reefer Madness Ending? Canada Pot Stocks in Meltdown
- Analysts cite valuation concerns after recent rally in shares
- Canadian cannabis index posts record drop of as much as 19%
Trudeau Says Canada Is Legalizing Pot to Protect Kids
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Investors’ collective high over Canada’s burgeoning marijuana industry has evaporated, to be replaced by a comedown.
Marijuana stocks tumbled Friday amid a wave of “panic-selling" and concern that companies that had seen ballooning share prices recently are now overvalued. The BI Canada Cannabis Index plunged as much as 19 percent, its biggest intraday drop on record, while the nation’s largest producers including Canopy Growth Corp. and Aurora Cannabis Inc. tumbled more than 40 percent from their January highs.