Too high? Hedge funds unimpressed by Canadian cannabis stocks’ rally

(Reuters) – A rally in Canadian cannabis stocks since Joe Biden was declared U.S. president-elect has done little to change hedge funds’ bearish view on the industry as money managers say the election outcome may not solve the troubles of weed producers north of the U.S. border.

Canada’s cannabis producers have been losing money and investor interest, plagued by over-expansion, slow retail stores roll-out, oversupply and governance issues. But the promise of U.S. decriminalization with the Biden win had investors cheering for the sector on a possible opening of U.S. markets.

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