The action is heating back up in the cannabis patch. Bigtime. Investors have been taught to sit on the sidelines in these stocks because “they keep going down”. That’s what happens in a bear market. These stocks got too far ahead of themselves a couple years ago, and we were seeing ridiculous valuations on a price-to-sales basis, and fears of a supply glut destroying the cannabis pricing market on a commodity level. We saw stocks in this space trading at 50x sales.

But, fast forward about 18 months, and you have absurdity in the other direction. Investors have been taught to doubt pot stocks – taught they were a sucker’s bet. And they learned that lesson so well that you are now living in a world where a company making hundreds of millions of dollars a quarter can post 430% growth and still trade at 1.8x sales.

Of course, it’s not just about the big names. There is a real narrative of entrepreneurial success going on here as well. Companies are solving problems and providing a strong product to an end market with seemingly bottomless demand.

One big key is that we are now starting to see many of the high-growth cannabis stocks ramping above their 50-day moving averages as a group. That hasn’t happened in nearly two years, and it represents a strong signal – along with the valuation metrics – that we are now in a new cyclical cannabis bull market inside of the larger secular cannabis bull.
https://www.wallstreetpr.com/five-pot-stocks-with-next-level-potential-cgc-hrvsf-nugs-crlbf-tlry-43071