discussion

Identify and propose risk mitigation techniques from the company that is listed below.

The industry that I have chosen for this discussion it is a medical marijuana. There are four companies that are represented on the stock market.

Aphria(NASDAQ: APHA), Hexo (NYSE: HEXO), Cronos Group (NASDAQ: CRON) and Aurora Cannabis (NYSE:ACB) these are the big four companies, there are other smaller pharmaceutical companies that dabble in the medical marijuana industry but also has other pharmaceuticals as well.  that you are able to invest do the medical marijuana industry reports show that the first half or six months of this year numbers have been down due to the covid-19 pandemic, experts are saying that you plant your seed today and bear fruit in the second half of 2020 so they are expecting high potential marijuana stocks. Living in Colorado well we have medical and recreational marijuana that is legal but during the Covid pandemic these industries had to shut down therefore causing and surplus and the industry.  At the beginning of the pandemic people were complaining about this is an essential medicine and that the pharmacy should be open and eventually the governor did allow them to open. As a licensed professional grower, myself I took a big lose when it came to the Hemp industry I had to large greenhouses and its sole purpose was for the hemp industry.  My medical marijuana crops I still made it good prophet even during the pandemic.

 

1. Canopy Growth CGCshares have fallen 46% over the last 2 years and are still down 16% year-to-date. It is making beverages and chocolates. Is it time to buy?

2. Aurora Cannabis ACBrecently announced more layoffs and is closing operations at 5 smaller facilities. It is also taking a $140 inventory charge. Shares are down 45% year-to-date. Is the worst priced in?

3. Hexo Corporation HEXO is a Canadian grower trading under $1. Many investors love that but that increases the risk. It has a $314 million market cap, however, and is a play on beverages due to a joint venture with Molson Coors.

4. GW Pharmaceuticals GWPHhas the first FDA approved cannabis drug which is approved for some rare forms of epilepsy. Sales are expected to rise 82% this year. (Speights 2020)