5 Ways Publicly Traded Cannabis Companies Can Gain Credibility With Investors

Publicly traded cannabis stocks are off to an incredible start this year, with many of them doubling or tripling and some increasing by as much as tenfold.

Excitement about the implementation of legal cannabis in Colorado has fueled what appears to be a bubble, with demand from new investors overwhelming the limited supply of shares available for purchase. It was only 11 months ago that the market enjoyed similar ebullience, but that ended quite poorly as most stocks in the sector lost in excess of half their peak value in the ensuing months.

There were several reasons for the collapse from the February peak last year, but one of the key challenges was that many of the companies failed to deliver on promises, losing credibility with their shareholders.

With the recent sharp rise in prices, companies would be well-served to consider these five steps to become more shareholder-friendly.

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