These are exciting times for marijuana stock investors. For the first time in history, a developed country stands on the verge of legalizing recreational marijuana. By this coming summer, in either August or September, it appears likely that adults aged 18 and over in Canada will be able to legally purchase cannabis from licensed dispensaries. In doing so, Canada will be opening the door to an additional $5 billion in annual sales, if not more.
But while these are exciting times for green-rush investors, they're also somewhat worrisome. In the wake of an expected recreational legalization, pot stock valuations have headed into the stratosphere. While this has made money for investors, and allowed cannabis companies to raise capital via bought-deal offerings, it's also led to the growing possibility of a supply glut.
