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With the boom of cannabis stocks in 2017 amid news of legalization in Canada and their subsequent fall from grace, you might think investors have learned a lesson.
Canopy Growth (TSX:WEED), the largest Canadian cannabis company, saw its share prices decline, and the business was doing so badly that it was forced to merge shares. Yet, Canopy Growth stock saw share prices soar by 100% between April 1 and April 30.
The surge in share prices shows many people are hopeful about Canadian marijuana stocks again. I will discuss what is happening and tell you why it might be a better idea to avoid the volatile stock instead.
The sudden rise
Canopy Growth, like many of its peers, saw a massive surge in share prices in April. The reason was simple: News came from across the border that might see marijuana being reclassified as a Schedule III substance in the United States. On the surface, it looks like great news….
