This week, we’ll talk about Canopy Growth, pet CBD, updates on New York, and how to find a broker!
It’s normally quiet the day before a holiday in the investing world, but this year, there were fireworks before July 4. I know on Friday I said I would talk more about Canopy Growth Corp. (NYSE: CGC) next week.
But I wanted to make sure you were all caught up thus far with what has happened.
Bruce Linton was fired from Canopy on July 3. It’s no secret that I was a fan of the former CEO, and Linton deserves credit for having the first cannabis company listed on the New York Stock Exchange. Canopy was also the first marijuana firm to reach a valuation of $1 billion.
I liked his plans for the long term.
However, Constellation Brands (NYSE: STZ) is a major shareholder of Canopy, and the executives at Constellation wanted more immediate results.
Then, Mark Zekulin, Linton’s co-CEO, announced that he would step down when his replacement is found.
I expect a quick search and a new CEO who will not talk about being the world’s largest cannabis company, but of being the world’s most profitable cannabis company. I think this is a positive outcome for shareholders, and again, I will have more on what this means soon.
Now, let’s get to a few of your questions.
Questions and Answers
The CBD market is exploding. I project it will reach $2 billion in 2019, and it could ultimately grow more than 15 times faster than the cannabis industry as a whole in the coming year.
However, there’s also a growing segment within the CBD market that could have huge gains all on its own.
Pet CBD wasn’t even a thing a few years ago, but by 2022, it could be worth $1.16 billion. To speak to the growing popularity of CBD pet products for your furry friends, I’ve seen more members asking questions about CBD for dogs and cats.
Frank M. asks: “Where do I get information on getting CBD for my small dog that has had seizures? We have put her on some prescriptions that the vet recommended, which seem to be working, but I think CBD would be safer for her. Can I order CBD online for my dog?”
Hi, Frank! You sure can. There are many places to order CBD pet food online, and the good news is that an increasing percentage of them are legitimate companies selling good products. Two of my favorites are from Charlotte’s Web Holdings Inc. (TSX: CWEB, OTC: CWBHF) and the Pet Releaf line.
I know where each of those companies sources its CBD, so I can be confident in the product quality. I would suggest you mention this to your vet. I’m not aware of any negative interactions between CBD and any known human or pet medications, but a professional’s opinion in this matter is important.
Our next question is about New York and its dispensaries.
Cameron B. asks: “I was just talking to a friend of mine who just returned from New York and the first thing he said was, ‘I saw cannabis dispensary trucks, dispensary stores selling edibles and the flower (bud).’ This was two days ago. So what’s the news on New York, some parts can, some parts can’t, so how does it work?”
Hi, Cameron. New York is a medical cannabis state. Throughout the state, medical patients can purchase cannabis if they have a card from New York State allowing them to do so. However, New York is more restrictive than most states with medical programs – relatively few disorders qualify.
But it’s still becoming a big business in New York, and several of the multi-state cannabis operators (MSOs) are in the state. These operators are doing limited business now and waiting for the state’s legislature to get its act together and legalize all cannabis for adult use.
And yes, those businesses do a lot of promotion – the firms paint trucks, buy billboards, and have attractive storefronts that catch the eye. Many are doing that to increase brand awareness ahead of the coming boom in legalization.
However, if you saw someone selling flower, it was either CBD-only flower, or it was an illicit dispensary. Smoked cannabis is illegal in the state.
Thanks again for the question, Cameron.
Our next member wants to know more about how to find a broker, and I hope the newer investors out there in particular find this answer helpful.
Bernadette J. asks: “Need to know how to purchase shares. Do I need a broker?”
Bernadette, you do need a broker. The good news is that getting a broker is easier than ever. Any of the big brokerage firms (Schwab, Fidelity, E-Trade, etc.) have sign-up forms that are every bit as easy as creating an Amazon account, applying for a credit card online, or even when you add our NICILytics database investing tool to your resources to dominate the cannabis market! When wanting to learn more about our investing tool, what most people do next is check out this free resource guide for NICILytics.
Good luck, and happy trading!
Executive Director, National Institute for Cannabis Investors
4 responses to “Canopy, CBD, Your Pets, and Investing”
July 06 2019