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This is how Canopy Growth is targeting the NFL…

In 2018, the NFL brought in $15 billion, and Commissioner Roger Goodell has a plan to reach $27 billion in revenue by 2027.

As a reference point, that’s about as much money as all of Twitter Inc. is worth right now.

And here’s an interesting note – ratings fell 10% last season.

However, merchandise sales were still up 40% year-over-year.

Unfortunately, this season – and for many, many seasons – my New York Jets haven’t given me much to be excited about.

Quarterback Sam Darnold gave some life to the team when he returned from an injury against the Dallas Cowboys, but I’m not getting my hopes up. It will be a long road to displace the New England Patriots from their spot at the top of the AFC West.

But whether you’re rooting for Patriots or the winless Miami Dolphins, the fact remains that the NFL still owns a day of a week.

And it’s going past just Sunday. Millions are watching Monday Night Football and Thursday Night Football.

And now, Canopy Growth Corp. is targeting that loyal fan base that’s spending billions on NFL products…

Canopy Growth’s Next Big Bet

Canopy Growth Corp. (NYSE: CGC) recently bought a majority stake in BioSteel Sports Nutrition.

Biosteel Sports is a sports-beverage firm that focuses on hydration and recovery products for athletes.

Source: Biosteel

But this is far more than just your average beverage company.

Its products are used by athletes in the NFL, MLB, and NHL.

BioSteel also has an impressive roster of brand ambassadors that includes former NHL great Wayne Gretzky and running back sensation Ezekiel Elliott.

Now with the resources of BioSteel at its disposal, Canopy Growth can create CBD-infused sports drinks. While NFL players aren’t allowed to use CBD right now, there’s belief that change is coming.

Carson Palmer, a former NFL quarterback, was asked on a sports talk show if the NFL would ever partner with a CBD company.

“I absolutely think so. I think it’s already in locker rooms in all sports,” Palmer said.

Would BioSteel be able to score a deal with the NFL?

That’s not worth speculating on until the league changes its policy on cannabis.

But BioSteel is already selling non-CBD products, so it is generating revenue in the here and now.

Buying Growth

I’ve written before about the shifting views in the cannabis industry.

We know how the story will end; this is unlike any other market I’ve seen in my lifetime. Eventually, marijuana companies will be seen as a defensive stocks that can ride out recessions.

But investors also want to see some results right now.

One way to do that is to “buy growth.”

Building something from scratch works in certain situations, but it requires a lot of capital and time to get things up and running. On the flip side, if you buy an established company, you immediately get access to a customer base and the revenue generated from those customers.

Ultimately, this is a very strategic move and, when Canopy gets a new CEO, he or she should benefit from BioSteel being under Canopy’s umbrella.

Sincerely,

Greg Miller

Executive Director, National Institute for Cannabis Investors


Comments

15 responses to “Canopy’s Next Big Target Is the NFL”

  1. Good to hear the that CGC is still in the market. Bought at $7.00 go to $54.00 and then down to $24.00. Still hanging in there but hope it gets back in the picture.

  2. I feel long term CGC will be one of the leaders in cannabis industry and one should have at least 10% of portfolio in cannabis.

  3. When I bought into cannabis lots I inquired about spreads & loophole trades of which I was assured there would not be many in cannabis lots, was I ever led astray! I am using TD Ameritrade & am only a level 2 investor; Tom how about some regular old call or puts? Many of your customers would appreciate it. Thank you. -Michael Murphy

  4. I’m riding it out. I think the cannabis industry is going to prevail. It is truly the drug of choice For almost everything , from the average person to all athletes male or female. Just need to shake off the old school mentality of cannabis and break thru all the red tape.

  5. I’m riding it out, my cannabis stock I’ve always considered long term. The market will continue to grow and CGC is positioning its self to succeed into the next century!

  6. i write books and hope to have sharks to invest in my book HACKMAN at bonsnovles giving them one hundred % OF MY BOOK AND SCRipt just get in some contact with DEnero he knows about me Tookie Smith and her brother Willy what the heii Robert Go for something different?

  7. Waiting for a new CEO for Canopy Growth …. ? Who then is taking such a major decision to buy a ‘majority’ stake of a couple of BILLIONS of USD ….
    These guys are doing a great job – They have my trust !

  8. CGC is my favorite cannabis stock as I believe it has the correct backing and positioning to be a world market leader as well as Auora (not in our portfolio). Originally I paid too much for these but they are currently trading at a discount so picking up some shares here and there to bring my total cost down.

  9. I have taken a bath in Cannabis stocks having entered the market in April 2019 and continued to buy during the downturn until my stocks were painfully down and sold everything about 30 days ago. After taking significant short term tax losses, I now need to decide if I go back in. Many of the stocks are still below my selling price. I am also all in on the services provided through NICI and like Michael above, I am a level 2 investor and cannot trade the Tom Gentile trades that have been recommended. As a result, I am not able to recoup the cost of the basic expensive service. Like many, am disappointed in the results. Of course no one anticipated the vaping crisis and what it could cause.

  10. I have cgc long term and looking into selling covered calls. I have bought some recently at a $20+ est

    I also have very small shared of a few other pot stocks.

  11. Just waiting for Canopy to start growing again. I start to get nervous but keep on adding and lowering overall cost basis. Hope at 68 Im still around tosee the tremendous gains in the future.

  12. I got on the band wagon with Canopy the wrong time and down quite a bit, but each time I read good stories that The Cannabis is here to stay and getting even bigger, I can’t help but to keep on buying. I hope we are on the lowest point right now. Canada 2.0 hopefully will make all the difference.

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