Even before the legalization of marijuana in Canada in 2018, cannabis companies were busy investing billions of dollars in facilities to meet implausible demand projections, as well as acquiring their competitors at inflated prices. Looking back, the entire series of events placed the foundation for a catastrophe in the sector. Indeed, the Horizons Marijuana Life Sciences ETF (TSX:HMMJ), an index that tracks the performance of sector constituents, is now down nearly 80% from all-time highs.
Now that the bubble has burst, investors have opportunities to do the previously unthinkable — buy top marijuana stocks at a great value. Today, let us look at two companies in this category and how they can reignite their momentum for long-term growth.