Factors Though Have Contributed to Failure of Cannabis Stock In Canada

Since legalization of cannabis in Canada last year, the stocks have dropped drastically. In the previous year, the stock was trading $12.52 per share. The stocks are now trading at around $4.16 which is     a third of the initial price.

For investors, this might be seen as the best time to purchase the stocks; however, chances are that the stocks may drop further.

Let’s see what is leading to the failure of cannabis stocks in Canada.

  1. Cannabis Low Sales

Most cannabis companies in Canada have experienced drop in sales. This is because the industry is still in its early stages of growth.

The earlier rise was probably contributed to the promises of growth in the industry and potential capability in the market.

However, it is worth noting that Canadian market only had an estimate of $5.2 for a period of  five years.

May be increase of retail pot shops will increase the sales in cannabis and hence increase the share value of cannabis stocks.

2. Oversupply

Due to legalization of the cannabis and high expectations of demand and growth in the industry, the supply has increased.

Due to legalization of cannabis in Canada, there was high expectation of drastic growth in the industry. However, the industry is still young and hence the demand is not as expected.

Oversupply and low demand of the products have also contributed to the failure of cannabis stock in Canada.

  1. High taxation

Expected high taxation of the cannabis has also contributed to failure in cannabis stock in Canada. Though the government has legalized cannabis, there might be high taxation and this fact is pushing investors away from the industry.

Heavy tax on the product is likely to promote the black market rather than promoting the legal industry.

With all those factors that led to failure of cannabis stocks in Canada, what are key takeaways for investors?

  • One of the biggest challenges in the industry has been sales estimation of cannabis. It is likely for the demand to rise after legalization and hence this might be the best time to purchase the stocks.
  • There are high chances of growth in the industry as Canada is planning to expand their market to overseas.
  • Canadian government acknowledged the fact that there are only a few retail shops available and they are willing to facilitate more retail shops to boost the cannabis sales.
  • Domestic demand is likely to increase hence rise in cannabis
  • The Canadian government is aware that high taxation of the product can only decrease the sales in the legal market and hence they are likely to reduce the tax. Reduction of tax will promote the legal market while increase in tax will promote the black market.
  • For investors who are focused on long term projects, this is the best time to venture into cannabis stocks as even though the stock value might continue to decrease, the stocks will eventually rise.

With all  the reasons identified that has caused failure of cannabis stocks in Canada, It  all depends on the long term investors to revive the value of stocks in the sector.

Why you should consider legal cannabis and not that from the black market

Cannabis is a drug that can be used for both positive and negative purposes. When used for medicinal purposes, results are often positive because it is aimed at improving the patient’s quality of life mail order marijuana. If it is acquired for recreational purposes, the outcome is often fatal. This is because there is often no prescription in terms of the quantities fit for consumption and this can result in long-term addiction. Whatever the reason, it can be acquired legally or from the black market. Both options have their own attractive features. For instance, the black market provides cheap cannabis that can be afforded by people in different economic classes. Additionally, it provides more options in comparison to those given by legal dealers. The following are some reasons why you should consider legal cannabis and not that from the black market:

  1. Quality control – legal cannabis has the involvement of various regulatory bodies. These bodies are aimed at ensuring that related products are of the best quality. You are, therefore, assured of its quality when purchasing it. Cannabis from the black market does not go through any quality checks. This is because there is no government permission to supply it. The dealers are only interested in selling to as many users as possible so that they can make profits. They do not care whether you face health implications in future or not. Owing to this, it is advisable to buy legal cannabis. 
  2. Economic value – legal cannabis influences the economy positively. This is because employment is created for those who will deal in its sale. Additionally, government revenue increases as a result of the taxes on various cannabis products. This means that the economy grows considerably thus ensuring an affordable cost of living. The black market does not promote the economy because no legal employment is created. Also, government revenue does not increase and this might lead to an increase in the cost of living. Before daring to buy cannabis from the black market, consider all cost implications and not the low price you will pay upfront.
  3. Dosage – this defines the amount of cannabis you should consume at a go. Buying from a legal dealer gives you a chance to obtain clear guidelines on the amount to consume. The packaging, in this case, includes metric definitions of how much cannabis each product contains. This characteristic is not found in the black market. Insisting on buying from the black market lives you at risk of consuming more than what your body can take and this can be fatal.
  4. Safe environment – when buying legal cannabis you are not required to visit unsafe corners that are characterized by activities such as theft. You also don’t have to be afraid of police arrests.  This is unlike buying from the black market where you always have to watch your back because you are engaging in an illegal transaction. 

Before spending any amount of money, make sure that the course is worth it. Carry out enough research in regards to the implications of consuming cannabis so that you do not end up regretting later on.  

 

Tips on how you can cope with a synthetic marijuana addict

Addiction can be defined as continuously engaging in a certain activity for an extended period of time. The most common form of addiction in the world involves use of non-medicinal drugs such as synthetic marijuana. It is experienced when people keep using them even when they are aware of the negative side effects that might arise. Dealing with these addicts require for everyone involved to be very patient because the process might not go as smooth as expected. Explained below, therefore, are some tips on how you can cope with a synthetic marijuana addict:

  • Conduct research – it is very important to be knowledgeable before handling a synthetic marijuana addict. This will help understand how one is being affected by the drugs especially in terms of their brain activity. For instance, understanding that hallucinations are one of the side effects of this drug will help you know how to structure your responses when an addict starts talking about non-existent things. This is similar to dealing with seniors. When they start asking for their spouses who have long been dead, the one providing care should know how to respond without agitating them further. 
  •  Engage in fun activities – handling addicts can be stressful especially if they are difficult. It is therefore important that you engage in fun activities such as swimming, attending dance classes, playing music instruments and baking. This way, you will have an escape from all the stress order online here. You should also involve the synthetic marijuana addict in such activities so that they become aware of healthy ways to deal with life’s difficulties. This can be a very good withdrawal technique for them.
  • Talk to someone – you do not have to embark on this journey alone. Dealing with an addict does not mean that you have to be 100% perfect. At times, you may not be in a position to offer the necessary support. Communicating with your family members and friends is, therefore, advisable so that they can offer assistance when you get to a breaking point. Another option involves seeking the services of a therapist. All these parties will provide solutions to problems that you are unable to solve on your own. 
  • Set goals – these are the expected outcomes. Some people end up being frustrated because of setting unrealistic goals in terms of the recovery of the addicts they are dealing with. For instance, a person who has been using synthetic marijuana over a period of ten years might not be expected to stop within one month. In order to stay clean for a long period, the process must be as effective as possible which means that time taken will be equally long. You should, therefore, set goals that can be achieved so that the addict does not end up feeling as if they are doing nothing in terms of their progress. 

Before offering to help a synthetic marijuana addict, make sure that you are aware of challenges that may present themselves. This way, you will come up with ways to overcome them early enough. 

 

Things parent should do to avoid concerns linked to teens cannabis use

Parents are usually worried when they find out that their teens use illegal drugs like cannabis, among others. They know very well that there are many problems linked to cannabis use such as memory loss, and schools drop out among the teens. So, to avoid all those concerns, parents ought to do the following.

Discuss your expectation

Parent-child communication is important in discouraging drug use.  Based on research conducted in the United States, it is clear that when parents set strong expectation, teens are not likely to use drugs despite peer pressure.

Stick to the fact

Teen in most cases are known to getting information from the internet and then citing it to justify their posture when it comes to cannabis sales from Kush Dispensary. But the question is what kind of information are they pulling out from the internet? They usually pull out unreliable information from the drug promotional site to support the advantages linked to using cannabis. They don’t want to know the fact that the internet can provide inaccurate and deceitful information as well. So, as a parent, you should teach teens to get information from the most reliable sources before jumping to a mistaken conclusion. As well, parents need to tell their teens to be checking both the supporting and opposing sites to know which one weighs more fact than the other.

Get involved

As much as teens years are a time for autonomy and independence, still, parents need to continue to bond with them. Parents are required to be actively involved in the entire life of their teens. Research has revealed that when teens and parents are in a good relationship, then the chance that teens will involve in cannabis use is less because they don’t want to disappoint their parents. So, parents are required to get involved in their teen’s life to avoid too much concern that can give them sleepless nights.

Keep the lines of communication open

Once the parent set the expectation, they must walk a good line between having a good relationship and adhering to rules – see more detail here https://bud365.ca/. It’s fundamental for teens to feel comfortable whenever they are going to discuss issues such as drug and sex with trusted adults. Open frank discussion is not best because it leads to precautionary educational dialogue. The best parent-child communication starts with less talk and a full of listening. So, the parent should look at possible ways to ensure that children avoid the use of cannabis.

Conclusion

Every parent wants the best to come out of their children in whatever they are doing. When their children involve themselves in cannabis use, they get worried so much because they want a bright future for their teens. Parents are, therefore supposed to follow the mentioned above things to avoid a lot of worries regarding their teens. In doing so, they will have accomplished one of the responsibility that is required from them that is guidance and control.