An influential, Wall Street firm’s newfound support of one of Canada’s biggest cannabis companies – as well as the overall industry – sent the stock soaring this week.

Big run-ups are nothing new to the biggest Canadian cannabis producers. We’ve seen these hot runs many times now at The National Institute for Cannabis Investors prior to our launch.

But the reasoning behind the Canopy Growth Corp. (NYSE: CGC) surge by 11.76% on Thursday after posting a 13% gain the day before is deeply encouraging news for cannabis investors.

Investment bank and asset management firm Piper Jaffray announced mid-week that it was launching coverage of Canopy and gave it a rating of “overweight.” That basically means the stock is trading at a price that is lower than its realistic, analysis-based value.

Piper Jaffray analyst Michael Lavery told CNBC this week that he believes the total market for cannabis in the long term is between $250 billion and $500 billion.

A big part of the optimistic endorsement comes from the continued mainstreaming of CBD.

We happen to agree with the research on the tremendous potential of CBD-based products in the over-the-counter wellness market. We talked about that yet again in yesterday’s edition of Cannabis Profits Daily, as a major footwear retailer will now be selling such products in 44 states.

This brought the stock to a two-month high heading into Friday trading.

You’ll get no argument on the bullish outlook from ever-confident Canopy CEO Bruce Linton. In fact, our Cannabis Investor’s Report members can watch an exclusive interview with Linton from last year’s MJBizCon in Toronto by clicking here.

Interestingly enough, the “Big Alcohol” company that paid so much ($3.8 billion) for a 38% stake in Canopy Growth got hammered this week. Constellation Brands (NYSE: STZ) remains a great company with a lot for investors to like.

A big part of its latest earnings weakness is simply because of the interest charges related to the Canopy deal, which shocked the industry – and markets overall – five months ago just as the aforementioned MJBizCon was getting ready to start its opening session.

Thank you for being an important part of the National Institute for Cannabis Investors,

Greg Miller
Executive Director, National Institute for Cannabis Investors


Comments

8 responses to “Canada’s Most Aggressive Cannabis Company Draws an Important Endorsement, And Started Another Hot Run”

  1. Great reading.
    I wish we keep getting periodic reports like that, on low priced and higher priced issues. Keep giving there near and long term potentials.
    I enjoy your reports.
    gsk

  2. Can you please put the date the article was written at the top by your name, so we know how recent and relevant the information is?

  3. The anti-anxiety effects and sleep benefits of CBD will play an important role in how companies utilize it in beverages. For most people, the anti-seizure effects will not be relevant. Another emerging benefit of CBD is its anti-inflammatory effect on joint pain (arthritis). Some people claim a reduction in pain levels when utilizing CBD. This may prove to be one of the most valuable effects of the substance. More study is needed to really make claims on CBD. However, in a marketplace where consumers purchase many nutriceutical substances without clinical trials to prove efficacy, CBD may be a big winner. That being said, approach CBD with a speculative investment outlook (my opinion). What may be the most exciting beverage to come will be the THC/CBD combined content that provides the consumer with both the activating effects of THC with the grounding effects of CBD. There will likely be many combinations marketed with concentrations labeled on the containers. This will allow consumers to choose the beverage that feels best. The potential for abuse and the burden that could place on law enforcement is being worked on. Startups that are focused on quantifying serum levels of THC in its active form are emerging–I’d like to see NICI publish some information on those companies in this space. I think that each state will have a system for monitoring drivers who are operating their vehicles while under the influence of cannabinoids. Either breathalizers or pulse-oximeter-like products will emerge to detect active THC levels in individuals. Blood testing via laboratories is another more invasive method available for quantification. Urine testing has been the standard, however. This has been a limited test which has been either positive or negative for cannabinoids–it has been short of accurate quantification which would help determine if a person is “indeed” actually under the influence at the present time–or if they have merely used cannabinoids recently and are no longer under the influence.

  4. I love the work the Institute is doing! Thank you!

    However I am frustrated by the fact that many articles are being published without dates. We, as subscribers have a lot of information to sort out. I am spending considerable time pouring through articles trying to get a glimpse of when it was written.

    As more articles are posted to the site, and as time goes by, it is getting more and more difficult to sort out the information! I find myself looking at an article and thinking, was this written in November 2018 or January 2019.

    The timeline IS important! Events change, developments occur, trends begin…. prices dip and surge. And since company profiles are updated only periodically(understandable), this makes it even more important to have dated material, in order to make the best decisions as an investor.

    PLEASE date the articles!

    Thank you for creating such a wonderful resource!
    Michael Gatto,

  5. I agree with Micheal Gatto. I am constantly comparing articles trying to determine timelines. They ARE very important as the industry is constantly evolving and as investors we need to stay ahead of it. Remember Mike Ward’s warning “don’t get left behind”!
    Dating the articles would be a great help

Leave a Reply

Your email address will not be published. Required fields are marked *