Don’t let the $0.25 price tag fool you into thinking this stock is a buy…
Finely crafted wood tables with a handful of top-tier products displayed like works of art.
Expert employees who were easily identifiable in their uniforms could answer any of your questions and make sure you got exactly what you need.
If that sounds like an Apple store, that’s what one cannabis company was trying to accomplish.
On the surface, it had a lot going for it.
It had the look.
The founders talked a good game.
And it appeared to be in a prime position to become the first national cannabis brand with plenty of momentum on its side.
Going public in May 2018, Michigan legalized recreational marijuana in November 2018 and Missouri legalized medical cannabis use, two states that showed legalization was more than just a trend.
Of course, under the surface, trouble was brewing.
The company got way too big, way too fast, and didn’t have enough experience, and that has cost them dearly.
The founders were sued and accused of everything from manipulating the stock price to bank fraud.
They have both stepped down.
While cannabis sales are increasing year-over-year in the United States, from $12.1 billion in 2019 to $17.5 billion in 2021, this company is letting employees go, shutting down stores, and selling assets.
The stock has taken a nosedive over the past two years, selling for $2.25 on July 12, 2019.
Today, it trades for roughly $0.25 per share.
Now, the company is making efforts to turn things around. But that is a steep challenge, and I don’t see it happening anytime soon.
I don’t want people to continue to keep this stock, hoping things will get better. I also don’t want people speculating that just because of the cheap price tag, this is a penny stock that could make them a lot of money.
It’s trading at $0.25 for a reason, and you’re more likely to lose money than make money if you buy shares.
Sell MedMen Now
The company I’m talking about is MedMen Enterprises Inc. (OTC: MMNFF), and it is my sell of the week.
I like to keep things concise, so you can find out in less than five minutes the biggest reasons why I’d sell this stock right now, as well as the companies that I like better than MedMen.
All the best,
Partner, RADD Capital
One response to “Sell of the Week (July 12): This Isn’t the Apple of Cannabis”
July 12 2021