Cannabis Investors Should Move Past 'Hopeful Phase' And Focus On Business Fundamentals, Expert Says

As the cannabis industry continues to evolve, investors are urged to shift their focus from government-led momentum to the fundamentals of business performance. Gary Santo, CEO of Rx Green Technologies and upcoming speaker at the Benzinga Cannabis Capital Conference emphasized the importance of moving past the early "green wave" excitement and honing in on the real value of cannabis operators.

Past the Hopeful Phase

Santo argues that the time has come for investors to stop relying on the hope that government regulations will bring a quick turnaround for the cannabis industry. "By now, investors should have moved past the hopeful phase of, ‘Let's wait and see if the government fixes things.' That momentum play can't be the foundation anymore," he said during a recent interview. According to him, investors must assess companies based on their underlying business models and operations rather than potential regulatory changes.

In the early days of cannabis investing, many companies attracted attention simply because they were part of the cannabis industry. This initial rush, however, led to a lot of money flowing into businesses that didn't necessarily have strong, sustainable business models.

“Investors need to shift their attention toward the fundamentals of the businesses out there. Some exceptional operators are flying under the radar because the entire industry has been painted with this broad brush,” Santo said.

Also Read: Legal Medical Cannabis Could Save US Healthcare $29B Annually, New Study Finds

Looking at Fundamentals

He is optimistic that the regulatory environment for cannabis will improve, even if the pace of change remains slow. "The good news is the regulatory environment cannot get any worse for cannabis, right? So it's only going to get better," he noted.

Additionally, Santo dispelled concerns that cannabis could be made illegal again. "We're not at risk of cannabis suddenly becoming illegal again where it's already legal. That's simply not going to happen, so there's stability in that," he explained. This reassurance is crucial for investors who have hesitated to fully commit to the industry due to the uncertainty surrounding federal laws.

Building for the Future

Santo will speak at the upcoming Benzinga Cannabis Capital Conference in Chicago, where industry leaders will discuss the future of cannabis investing. With more than 120 speakers confirmed, including major players in the cannabis space, Santo's insights will add depth to the ongoing conversation about how to invest in cannabis wisely.

Investors attending the event will hear firsthand how focusing on business fundamentals is essential for long-term success.

As the cannabis industry matures, he believes that operators with strong, profitable business models will shine. "Investors need to focus on grabbing these companies now before their value becomes more widely recognized," he said.

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Cannabis rescheduling seems to be right around the corner. Want to understand what this means for the future of the industry? Hear directly from top executives, investors, advocates, and policymakers at the 19th Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

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