The cannabis sector is also likely to be highly competitive, as it has fairly low barriers to entry. After all, to paraphrase the old expression , growing and selling marijuana isn’t exactly rocket science, and independent individuals have been successfully carrying out both activities for eons.
Further, I think conservative Democrats in Congress could well prevent the legalization of the drug by America’s federal government.
American Cannabis “offers consulting services for companies associated with the cannabis and hemp industries,” including “cannabis and hemp business planning, cannabis and hemp business license applications, cultivation build-out oversight services, cannabis regulatory compliance.” The company also sells many products that help businesses produce cannabis.
Again, I don’t think the cannabis business is that complicated. As a result, I don’t believe that most companies in the business will require extensive consulting services. Further, American Cannabis’ top line came in at just $1.57 million last year, down from $2.13 million in 2019, even though it was founded back in 2013.
American Cannabis recently agreed to acquire Colorado-based medical marijuana retailer NaturaLeaf, but this small firm is unlikely to move the needle much for American Cannabis, whose market capitalization is now $16.1 million.