Cannabis Report

Cannabis Report: Watch for Misleading Profits or Losses

Cannabis Report: Watch for Misleading Profits or Losses
By Early Investing
Date February 14, 2019

Since the cannabis industry is still so young and institutional investors are locked out for the most part (because marijuana is still illegal at the federal level in the U.S.), there’s a shortage of the kind of information needed to make sound investment decisions. Luckily, we’re here to help.

So this week in weed, we’re emphasizing your first-mover advantage in pot stocks and covering two important things cannabis investors should keep an eye on: profits and company investments.

Many Canadian marijuana companies have to follow international accounting rules, which means they can claim a profit based on the value of the marijuana they’re holding without generating any revenue. That can be pretty misleading.

And the investments a marijuana company makes also play a big role in profitability. In our first look at this month’s earnings reports, we take a look at how investments affected the bottom line of Aurora Cannabis.

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