There's no doubt 2019 has been a difficult year for ASX cannabis shares.
Many of the ASX-listed producers have struggled to climb higher and, in many cases, have experienced heavy losses. So is there hope for long-term investors in the Aussie pot stocks?
What's been happening to ASX cannabis shares
Many of the biggest producers have been hammered lower as investor optimism has faded throughout the year.
The AusCann Group Holdings Ltd (ASX: AC8) share price is now down a whopping 71.43% for the year. The group still has a market cap of $57.07 million but is at the bottom of its 52-week trading range.
Cann Global Ltd (ASX: CGB) shares fell 6.67% lower to a new 52-week low of $0.014 per share. That's more than a 50% decline from where the Aussie producer's shares started the year.
THC Global Group Ltd (ASX: THC) has had a volatile year and has now slumped 62.00% since the start of 2019 in what is a clear trend amongst ASX cannabis shares.
The Cann Group Ltd (ASX: CAN) share price climbed 2.38% higher yesterday but is still trading near its 52-week low at $0.43 per share.
Will 2020 see a rebound in share prices?
It's difficult to say where the ASX cannabis shares are heading in 2020. There have been a number of updates from the producers in 2019 but concerns of oversupply have weighed on valuations.
I think there are promising signs but ultimately it looks like it'll be a war of attrition. I think it's unlikely we'll see so many ASX cannabis shares in a decade's time, so it's a matter of who is likely to win that race.
Stronger ties with Canada and the United States could help with short-term earnings given their relative market maturity. However, that also means there are big international competitors in the market.
Shareholders will be hoping for more sales agreements and improved cash flow but many of these groups are still relatively young.
If 2020 sees improved legislation here in Australia and more trade into key Asian markets, that could be a recipe for success for the best and brightest ASX cannabis shares.
