I just read an article by Forbes that was talking about how the pot stocks in Canada are a terrible buy right now and they are extremely over-extended and overprices, even after taking a huge crash in prices.

The more concerning part is that it said only around 4% of the Cannabis produced was actually consumed in August, and similar numbers from the rest of the year. This means that there is a massive amount of bud sitting in warehouses just waiting to flood the market. Their solution to this is to simply produce more bud to lower the prices even further- they are doing the same thing that farmers did in the early 20th century....

They massively overproduced to drop cost of production in order to compensate for the already high supply and competition, flooded the markets with their crops, which in turn became literally useless as nobody wanted to buy them. People resorted to literally burning those crops or just dumping them in order to reduce overall supply. We will see this happen in the Cannabis industry as the supply glut continues to grow.