FFNTF: 3 American Marijuana Stocks to Avoid in March – StockNews.com

Marijuana stocks have been generating solid momentum, capitalizing on the optimism over the potential for large-scale legalization or decriminalization of marijuana at the federal level. However, Democrats’ slim majority in Congress significantly reduces the chances of a full-scale, nationwide legalization. Also, it should be noted that while the Democrats’ control of Congress and the White House has so far been a boon for most pot producers, some are still struggling to stay afloat.

Although there’s little doubt that the likelihood of pot legalization has vastly improved, it’s still far from a lock. Moreover, there have been signs that cannabis stocks have gotten swept up in the reddit-driven surge that led GameStop to skyrocket this year. While these stocks gained significant attention from WallStreetBets Reddit army that contributed to GameStop’s epic short squeeze in January, their shares tumbled after the Reddit trade lost its momentum.

Against this backdrop, investors should avoid marijuana stocks with weak fundamentals and slower growth prospects at all cost. 4Front Ventures Corp. (FFNTF), Jushi Holdings Inc. (JUSHF) and Charlotte’s Web Holdings, Inc. (CWBHF) have had a difficult time growing their sales and their expenses are high. So, we believe that it’s better to avoid these names for now.

4Front Ventures Corp. (FFNTF)

Headquartered in Phoenix, Arizona, FFNTF operates licensed cannabis facilities in in the United States through Retail, Production, Pure Ratios, and Real Estate segments. The company also sells supplies to cannabis producers, as well as non-TCH products, imports equipment and supplies for resale.

In January, the company received approval from the Brookline, Massachusetts Planning Board to start the construction of a new mission-branded dispensary. It will serve adult-use customers and is on track to open in the second quarter of this year.

Last December, FFNTF completed the sale and leaseback of its cultivation and production facilities

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