Canadian Marijuana Stocks.... Yes or No?

Since the legislation of recreational marijuana in Canada was signed....Let's all jump on the band wagon and buy buy buy buy buy marijuana stocks.

When you look on google... you get these sites:

• Marijuana stocks euphoria: Should you join the wild ride?
• A 'Marijuana' Stock Bubble' in Canada? Investors Bet Millions there is

and on and on about whether to invest or not. 

Can these investments be the next dot.com rush? Maybe. Just look at the P/E ratios on google finance or price to revenue of almost 50x!!!! 50!! Must be a bargain right? Getting upwards to the ratios we saw before the crash of technology stocks in 2000.

All joking aside, there is definitely a market for these stocks and they are hard to ignore. Especially since marijuana use is a multi-billion dollar industry. 

Here would be my steps to determine whether to invest:

• Do some google research just on the industry itself;
• Determine the major players (Canopy Growth Corp, Aphria);
• Print off the Company's financial statements and read from front to back; 
• Read through the MD&A and see what Management's plan is;
• Be vigilant in your research, many marijuana stocks don't have any exposure to the industry at all; and,
• Determine an amount of money you can risk. This is an important one. These stocks can swing up and down a lot so determine how much you can lose.

Happy hunting!