Which Cannabis Stock Is a Better Investment? By StockNews
The Canadian cannabis market is expanding, but it’s difficult to forecast long-term winners. Numerous companies still suffer huge losses and are reducing shareholder wealth at an alarming rate. Tilray, (NASDAQ:), and OrganiGram, (OGI) are two pot producers we will be comparing to determine which one is better. Canadian marijuana stocks have struggled recently because of a range of structural issues. The current cannabis market is still at a very early stage of development and has drawn many players.
For companies to reap the benefits of economies-of-scale, cannabis cultivation requires substantial capital investment. The regulation of marijuana is strict. In fact, the slow rollout in many Canadian provinces of retail licenses for cannabis stores has negatively impacted the demand over the past three years.
Tilray and OrganiGram are attractive long-term investment options due to the ease in lockdown regulations in Canada, a growing addressable market, and the prospect of legalization of cannabis in the U.S. Today I’ll analyze both stocks to determine which is currently the better buy.
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