(C) Reuters. Does Columbia Care Deserve a Place in Your Cannabis Portfolio?
Multi-state cannabis operator Columbia Care (OTC:CCHWF) has been expanding its medical cannabis operations rapidly to capitalize on growing demand for marijuana in the United States. However, given that the company is far from profitability at a time when competition in the sector is intense and growing, the question is, will CCHWF’s share price be able to advance in the near term? Read more to find out.One of the largest multi-state cannabis operators, Columbia Care Inc. (CCHWF) manufactures and supplies cannabis-based health and wellness solutions and derivative products. The company holds licenses in 15 jurisdictions in the United States and the European Union.
Shares of CCHWF have advanced 104.6% over the past year due to its rapidly expanding national and regional footprint and progress on key acquisitions in California and Colorado. However, its stock price has declined by 8% over the past month. Closing yesterday’s trading session at $5.65, CCHWF’s stock is trading 28.4% below its 52-week high of $7.89, which it hit on February 10.
While investors remain optimistic about the company’s strategic investments in the New York, New Jersey and Virginia markets, it hasn’t been able to generate much profit from its business so far. Furthermore, with increasing legalization of cannabis in the United States, the competition in this space is expected to intensify.
Does Columbia Care Deserve a Place in Your Cannabis Portfolio?
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