Indopedia All Things Marijuana
Investment firm Edward Jones released a report on Dec. 20 that highlights their very conservative outlook for the Canadian marijuana sector, despite increased enthusiasm as a result of pending legalization and enormous gains for cannabis stocks in 2017.
Courtesy of Bloomberg
The Edward Jones report states that although marijuana is currently all the rage, risks exist for “any startup company in a new, growing market.” The review added that because of an increasing number of competitors and changing regulations, it’s challenging to determine the eventual dominant players in the burgeoning industry.
While other investment firms including Merrill Lynch have been all-in when it comes to investing in pot, Edward Jones seemingly downplayed the industry by claiming Canada’s medical marijuana market is “relatively small.” The Edward Jones report stated that medical cannabis sales in 2017 were hovering over $300 million, while the total prescription drug market reached $25 billion.
This comparison failed to highlight the fact that access to medical cannabis is still relatively difficult, but will improve as more licensed producers enter the mix. Further, the report…
