Canopy Growth Corporation Rallying After Major Meltdown  The House Judiciary Committee passed the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) on November 20.... Canopy Growth Corporation: This News Could Mean Massive Gains for CGC Stock

Canopy Growth Corporation: The News That Could Mean Massive GainsCanopy Growth Corporation Rallying After Major Meltdown 

The House Judiciary Committee passed the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) on November 20. This bodes very well for the pot sector, as the proposed move would legalize the use of marijuana federally. And Canopy Growth Corporation (NYSE:CGC), currently priced at an attractive  level, would benefit greatly!

We are seeing rising marijuana sales across the U.S., and the positive trend will only go up moving forward.  Pot growers are expanding their infrastructure and driving capacity higher, which bodes well in anticipation of the strong growth expected for cannabis products.

Why CGC Stock’s an Intriguing Risk/Reward Play 

Canopy Growth is based in Canada, but the vertically integrated grower and seller operates in over 12 countries and five continents.  In fact, it has over five million square feet of licensed globally/commercial scale GMP manufacturing space.

In the lucrative U.S. pot market, Canopy Growth is in the process of completing its previously announced deal to buy Acreage Holdings (CNSX: ACRG.U). Acreage Holdings holds 88 dispensary licenses in 17 states and 24 grow/process licenses in 16 states.

Advertisement

On the chart, Canopy Growth stock recovery of $20.00 is positive, as the stock looks to break higher at trendline resistance with a potential move towards the 200-day moving average at the mid-$30.00 price.

Chart courtesy of StockCharts.com

Analyst Take

Canopy Growth is a top pot stock. Armed with around CAD$2.0 billion in cash, the company has sufficient funds for capital expenditures. Canopy Growth is also expected to ramp up annual revenues to as high as CAD$1.35 billion by fiscal 2021. (Source: “Canopy Growth Corporation (CGC),”Yahoo! Finance, last accessed November 21, 2019.)

For aggressive risk capital, CGC stock is priced for longer-term gains. When the pot sector stabilizes, companies like Canopy Growth will rally.

The key to buying pot stocks like Canopy Growth is to enter in tranches, with small positions, especially at times when the stock is sold off.

By taking this approach, investors in CGC stock will likely be rewarded in the long term once the pot sector builds its infrastructure and sales rise.

MJ Shareholders avatar

MJ Shareholders

MJShareholders.com is the largest dedicated financial network and leading corporate communications firm serving the legal cannabis industry. Our network aims to connect public marijuana companies with these focused cannabis audiences across the US and Canada that are critical for growth: Short and long term cannabis investors Active funding sources Mainstream media Business leaders Cannabis consumers

No comments so far.

Be first to leave comment below.

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )