Pot Stock Trades Under $1 — But Red Flags Say Don’t Buy

One of my favorite parts about working for Money & Markets is researching your requested cannabis stocks and running them through Adam O’Dell’s Green Zone Ratings system.

Research is important in this sector because, as I’ve mentioned, when comparing cannabis stocks with the big FAANG tech stocks and others, it’s wise to look beyond the Green Zone Ratings and dive into the company fundamentals.

I did just that in this week’s Marijuana Market Update video.

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This week, I’m covering a stock many of you have requested: KushCo Holdings Inc. (OTC: KSHB).

About KushCo Stock

Founded in 2010, KushCo is a $68 million Cypress, California-based company with a decent footprint in the cannabis industry:

  • It distributes packaging supplies and branding solutions in the U.S., Canada and Europe.
  • It provides vaporizer cartridges and accessories for vaping in both the tobacco and legal cannabis arenas.
  • It creates and sells products used by urban farmers, greenhouse growers and medical and recreational cannabis dispensaries.
  • The company also operates a creative design agency for cannabis clients that provides brand strategy, design, marketing, web app development and e-commerce solutions.

KushCo reported third-quarter earnings in July.

I dug into those numbers in the video, as well as its balance sheet. And, frankly, I found some red flags.

As you can see in the chart below, KushCo stock trades for well under $1 today — which makes it attractive to investors who are looking for a deal.

But the stock is 600% off its 52-week highs. And sometimes, when a stock falls that far, it’s with good reason.

KSHB Is 600% Off 52-Week Highs

KushCo stock

Check out my new Marijuana Market Update to see how the stock ranks according to Adam O’Dell’s Green Zone Ratings system, the red flags I see and more.

Stick around until the end of the video to catch updates on two stocks I covered in recent Marijuana Market Updates: Aphria Inc. (Nasdaq: APHA) and Curaleaf Holdings Inc. (OTC: CURLF).

Thanks for the Feedback on Cannabis Stocks!

Finally, thanks to all of you who wrote in to tell me why you’re interested in marijuana stocks!

I feature feedback this week from Raymond, plus some great questions from Bill:

How long do you think I will wait for this to succeed? Who are the main opponents for their future success?

Let us know what you think! Do you agree with my timeline for federal legalization?

Of course, if there’s a stock you’d like me to run through Adam’s Green Zone Ratings system, be sure to send an email to [email protected] — or leave a comment on the video!

And to make sure you see my Marijuana Market Updates as soon as I post them, plus our other videos — The Bull & The Bear podcast and The Week Ahead — subscribe to our Money & Markets YouTube channel!

Until next time …

Safe trading,

Matt Clark signature

Matt Clark

Research Analyst, Money & Markets

Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.

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