Jim Cramer explains that, while he's a believer in the cannabis business, conviction should be tempered with discipline.
The cannabis cohort is another group that has had a similar result as American states gradually legalize the drug and taboo dies down.
"Whenever you see this kind of boom, you need to take the more exuberant pronouncements with a grain of salt," thehost said. "I think we're witnessing a pretty straightforward problem. I wanna call it reefer madness." While some stocks of marijuana companies have performed much better than others, such as Cramer's favorite cannabis pick, Cramer noted that its stock shot u from $100 to about $300 within a matter of days last October prior to legalization in Canada. The stock collapsed to $100 a month later, and has since drifted below $50.
"In Tilray's case, there haven't been any major negative catalysts," he said. "It's just the stock should never been so high in the first place."Visitors pass in front of the Huawei's stand on the first day of the Mobile World Congress in Barcelonaon on February 27, 2017 in Barcelona.
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