Often valuations by stock traders aren't based on how the company is doing now it's based on future potential, a greater amount of investment means a bigger farm and more assets (and a lot of money is made from legal drug sales).
Right, but investors have been known to fail miserably when trying to predict the future. The dot com bubble is a great example of that, where stocks of never-to-be-profitable companies exploded, and it was all based on speculation. This marijuana thing seems to be another example of that.
There's a lot of competition and no one knows who's going to emerge the winner of them. As I said in another thread, I think it's going to be only one or two if the industry gets big enough.
How many tobacco companies are there in the US? There are only a handful of big ones that I know of.