Marijuana stocks, such as Aphria Inc. (TSE:APH), continue to rise but are investor hopes for the industry too high?
The Marijuana industry has performed exceptionally well this year, as countries all over the world are adopting more relaxed marijuana laws due to people becoming increasingly open to the herb. On the Canadian side, big news came from Ottawa as the Liberal Government released their proposed law to legalize and regulate recreational marijuana. There are now over 40 publicly-listed marijuana companies in Canada, comprising a total market value of over $5B. Stocks in our Ubika Index, including Aphria Inc. (TSX: APH), have increased over 200% on average this year, which makes you wonder, are high valuations justified by growth prospects, or has investor speculation gotten out of control?
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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