Pot Investors Brace for Writedowns, Not Profits, in Second Half
- Most large Canadian pot companies won’t make money by year end
- Investors flee for U.S., where firms are seeing better numbers
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Cannabis investors banking on profitability in the second half of the year may have another thing coming: More losses at best, and maybe a surprise stack of writedowns.
Although pot stocks have enjoyed a heady start in 2019 due to global marijuana legalization efforts and the burgeoning use of CBD as a wellness product, backers are starting to judge their investments by profitability instead of hype, and patience is wearing thin. Of the five largest Canadian pot companies, only Cronos Group Inc. is expected to report adjusted net income by the final quarter of the year, according to Bloomberg data.