Marijuana Investors Lost $23.3 Billion In Penny Stocks Last Year | Motherboard

My Marijuana Canada , a company that grows and distributes medical weed, slid down a money ladder and is currently down 72.93 percent from its peak. As a whole, penny stocks for marijuana are down 88 percent from their peak in the last year, while other penny stocks fell an average of 45.2 percent. As a result, the total dollar amount lost by investors is in the tens of billions. The volatility is mostly due to the novice investors who are flooding into the stocks on the promise that they’ll find riches with the decriminalization/legalization of marijuana, Simon Burns, an Openfolio representative, wrote in an email. In reality, few public marijuana companies are well positioned to capture this growth. Your basic pump and dump scheme tends to target new industries with a lot of hype. And hype is what legal pot has in spades. In the last three years, several states have legalized recreational pot smoking. Just this week, Alaska hopped on the big, kush-laden legal weed bandwagon , following in the footsteps of Colorado and Washington state. Today, Washington, DC, legalized recreational toking . But who is convincing novice investors to put their money in pot company penny stocks, when only a handful of states have legalized recreational herb?

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