Will This Announcement Drive Canopy Growth (CGC) Higher?

: CGC | Canopy Growth Corporation  News, Ratings, and Charts

CGC – For many long term investors in Canopy Growth Corporation, 2019 has been a dramatic year.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

For many long term investors in Canopy Growth Corporation, 2019 has been a dramatic year. We have seen the stock start out the year at a blistering pace — nearly doubling by the spring, but since then we’ve seen the stock sell off. The company has gone through a lot, their Co-Founder and former CEO Bruce Linton was fired, the company proposed the acquisition of acreage holdings betting on US legalization and after their recent quarter, the company announced a loss of over 1 billion dollars. 

Many of Canopy Growths long term shareholders are probably wondering what is next for the company and is the stock going to be able to escape the horrible downtrend that it has been in. What will the next catalyst be and what is going to drive the stock higher?

Recently Canopy Growth announced that they are acquiring a majority stake in a very interesting company called BioSteel Nutrition. This company is focused on the cannabis-infused sports drink market and is very excited about the cannabis 2.0 market launch. When it comes to the details of the deal, Canopy Growth will acquire 72 percent of the Toronto based company with a special agreement in place that will lead to total ownership eventually.

Canopy’s new CEO Mark Zekulin expressed his enthusiasm towards the deal “This is a very exciting strategic opportunity to take a known, established product and brand that speaks for itself and to layer in CBD and bring a differentiated offering into the marketplace,” On top of this acquisition Canopy Growth is getting ready to release their own THC-infused beverages under their Tweed brand. These drinks will be available just in time for the cannabis 2.0 launch and should be for sale by mid-December. 

Is this going to be the push that Canopy and many of its peers need in order to escape the deep bear market that we have been stuck in for so many months? 

Another encouraging message from Mark Zekulin Canopy’s CEO regarding the status of legalization in the United States is definitely something to stay positive about as well. Mark mentioned, “We certainly are bullish on legalization happening”.  He also said that “I think there is a general view that states’ rights probably make sense. What we are seeing now is conversations about the details.” 

All these positive signs should point towards an eventual push towards legalization. With many things in the works at canopy growth, the company does have lots to look forward to if and when the US does eventually legalize. The company has its partnership with constellation brands, they have the possible acreage holdings deal and last but not least they have their most recent acquisition of BioSteel Nutrition for THC infused beverages. At current prices, Canopy Growth could be considered undervalued and the fact that the company is sitting at fresh 52 week lows, investors may have something to get excited about real soon if things fall into place. Keep your eyes on Canopy Growth.

(Disclosure: The author is long Canopy Growth)

 

 


Canopy Growth Corporation (CGC - Get Rating) shares were trading at $22.31 per share on Thursday afternoon, up $0.33 (+1.50%). Year-to-date, Canopy Growth Corporation (CGC - Get Rating) has declined -16.97%, versus a 17.43% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaron Missere


Aaron is an experienced investors who is also the CEO of Departures Capital. His primary focus is on the cannabis industry. He also hosts a weekly show on YouTube about marijuana stocks. Learn more about Aaron’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CGCGet RatingGet RatingGet Rating
GNLNGet RatingGet RatingGet Rating
ACBGet RatingGet RatingGet Rating
CRONGet RatingGet RatingGet Rating
APHAGet RatingGet RatingGet Rating
TLRYGet RatingGet RatingGet Rating
CTSTGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: VXX | iPath Series B S&P 500 VIX Short-Term Futures ETN News, Ratings, and Charts

Shorting Volatility is Bigger, and Riskier, Than Ever

Selling option premium or shorting volatility has often been compared to picking up dimes in front of a steamroller.  Despite the risks and the not-too-distant blow-up of VIX- related products earlier this year, more money than ever is piling into these strategies. Read for details.
: ctst | CannTrust Holdings Inc. Common Shares News, Ratings, and Charts

Is CannTrust (CTST) Poised For a Recovery?

Last week CannTrust provided an important update on their plan towards compliance.
: .INX | S&P 500 Index News, Ratings, and Charts

What Investors Need To Know About Brexit

The Brexit soap opera has included no less than the collapse of Britain's gov't & the ousting of ex-Prime Minister Teresa May. With the end game seemingly upon us, here's what investors need to know about Brexit and how it might affect their portfolio.
NYSE: SLV | iShares Silver Trust News, Ratings, and Charts

Is Silver Preparing To Break Above $18?

A lot of the talk about silver right now centers around a chart formation called a bull flag — begging the question if silver is preparing to break above $18? Read for a thorough analysis.
NYSE: BABA | Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share News, Ratings, and Charts

Are These 18 Chinese Growth Stocks Ready to Rise?

It may finally be time for Chinese growth stocks to shake off their slumber and move ahead. BABA is a prime example. Learn more about the 18 Buy rated Chinese stocks below.

Read More Stories


More Canopy Growth Corporation (CGC) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CGC News
Page generated in 1.9882 seconds.