GRWG: 3 Overvalued Cannabis Stocks to Avoid in April – StockNews.com

<!– GRWG: 3 Overvalued Cannabis Stocks to Avoid in April

The U.S. cannabis market’s prospects look rosy amid anticipation of federal legalization under Biden’s presidency, and with that a potential substantial increase in the consumption of various cannabinoid products for medical and  recreational use. The purchase of adult-use CBD products is expected to increase further because more consumers are seeking these products to deal with anxiety and boredom exacerbated by the COVID-19 pandemic.

Nevertheless, the cannabis industry will still have to clear many hurdles before seeing full-scale legalization. Although the likelihood of pot legalization has vastly improved, the U.S. economy is still tackling the pandemic, which could delay legalization plans. While most pot stocks are currently trading at high prices, driven by the legalization hype, not all the companies possess sufficiently strong fundamentals and cash positions to justify their valuations.

Against this backdrop, we think investors should avoid GrowGeneration Corp. (GRWG), Planet 13 Holdings Inc. (PLNHF), and Clever Leaves Holdings Inc. (CLVR). Their  weak fundamentals and slower growth prospects don’t justify their current valuations.

GrowGeneration Corp. (GRWG)

Formerly known as Easylife Corp., GRWG operates organic gardening and retail hydroponic stores in the United States. The company distributes  products

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