2018 hasn't been a good year for many of the ASX's pot stock shareholders. Looking over the charts, it seems the share prices for numerous companies seeking to cash in on Australia's marijuana reforms are coming down hard.
Hydroponics Company Ltd (ASX: THC)
The Hydroponics company share price was trading at above $1 at the start of this year but has since lost more than half its value with shares in the company now going for about 48 cents. However, despite the losses incurred so far over 2018, the Hydroponics Company share price is still up by more than 70% on the 28 cents the company's shares were selling at a year ago.
MMJ Phytotech Ltd (ASX: MMJ)
It's been worse for MMJ Phytotech shareholders with shares in the company shedding almost 60% so far this year with a current price of around 25 cents. MMJ Phytotech's market value has now dropped to below $60 million, having lost more than 30% over the past year.
Botanix Pharmaceuticals Ltd (ASX: BOT)
Botanix shareholders have had a better year, with shares in the company almost doubling over that period. But more recently the Botanix share price has been heading down. At the end of May, Botanix shares were trading for about 18 cents but you can pick them up today for around 10 cents.
Cann Group Ltd (ASX: CAN)
Cann Group shareholders have done well over the past year with shares in the company gaining more than 180%. But recently it seems Cann Group is starting to suffer the fate of the other medical marijuana companies. Cann Group shares have lost about 30% since late June.
Auscann Group Holdings Ltd (ASX: AC8)
The Auscann Group share price is up by more than 60% in a year despite embarking on a downward trend since early January. Auscann shares were trading at around $1.85 in early January but are now fetching about 86 cents. On Monday, Auscann shares lost about 8 per cent.
What went wrong?
Australia's pot stocks have largely been the domain of speculators. With the companies yet to turn profits amid skyrocketing market valuations, such corrections as outlined above were inevitable. So, will they continue to fall? While companies continue to burn cash with no sign of profits in sight, it's highly likely.
