The global marijuana / medical marijuana industry is forecasted to be at least a $500 billion industry and we are just in the first inning of a nine inning ball game.
Canopy Growth Corporation, the largest publicly traded marijuana company, grows, and sales medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps under brands such as Tweed, Black Label, Leafs By Snoop, etc.
Constellation Brands one of the largest wine and spirits companies in the world now owns 35% of Canopy. The investment provides Canopy Growth with the necessary funding needed to build scale in the more than 30 countries currently pursuing federally permissible medical cannabis programs.
Canopy like most of the companies in the space have taken a hit in recent months, as valuation has gotten ahead of reality, but this could be an opportunity to buy at a discount.
A brand new report on Canadian cannabis market share seems to confirm the idea that Canopy is dominating the nascent Canadian market. Experienced investors know a first-mover advantage is extremely valuable in the long-term.
“Canopy remains a company, if a still imperfect story, with a chance at becoming a leading global player in cannabis, especially given its industry leading [balance] sheet and partnership,” he said.
Bank of America has a “buy” rating and $27.66 price target for Canopy Growth stock.
If you are a cannabis investor that believes the industry is just getting started, I think you can’t go wrong owning Canopy Growth stock.
The chart suggests price is going lower before moving higher due to downward momentum and the weekly supply at $34.
However, the chart also suggest to buy price if and when price hits the weekly demand at $14
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.