By: Rob Wertheimer
We are lowering our industry rating to Negative. Cannabis has been in shortage since legalization in Canada last October. Licensed producers are rushing to build out capacity, to supply a market that has not had enough product. This note suggests that that phase of growth is just about over. Stocks that have been judged by production capacity will have to find other metrics in an oversupplied market as well; that phase of valuation for equities will soon be over too.