Hype over hemp stocks: Proceed with caution : vimarsana.com

Hype over hemp stocks: Proceed with caution


Cannabis plants on display at an expo in Buri Ram province.
Hemp and cannabis-related businesses have become an investment trend in Thailand after the Food and Drug Administration (FDA) opened up the market to products using the plants' non-psychoactive ingredients.
Firms that announced plans to produce hemp products have seen healthy bumps in their share prices. But the industry has yet to prove there is demand among Thai consumers, and more established players overseas have struggled to turn profits.
Risks abound investing in this untested industry, and analysts warn shareholders may lose money if many of these businesses fail as a result of inconsistent regulations or a lack of economy of scale.

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