Connect with us

Business

Is the Spotlight Heating Up for Canopy Growth Corp (NYSE:CGC)?

Published

on

As we see it, Canopy Growth Corp (NYSE:CGC) would make a great pair trade if paired with a short position in TLRY. The stock is perhaps rich, but hardly as rich as TLRY. It is also quite well-positioned in terms of a diversified strategic investment portfolio – probably second best on the planet in that respect to Aurora. Now, Canopy has set another first in place.

To wit: The company just announced it has completed a legal transfer of cannabis products to a research partner in the United States. According to the release, “To the Company’s knowledge, this transfer is the first export of legal cannabis products from Canada to the United States pursuant to an import permit issued by the federal United States Drug Enforcement Administration (DEA). The shipment was completed for the sole purpose of supporting medical research and development.”

Canopy Growth Corp (NYSE:CGC) engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps.

The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands.

The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada.

In the company’s words, Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.

The Company has operations in 12 countries across five continents. The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its partly owned subsidiary, Canopy Health Innovations, has devoted millions of dollars toward cutting edge, commercializable research and IP development. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector.

 

To Boldly Go

Canopy Growth Corp (NYSE:CGC) generated sales of $25.9M, according to information released in the company’s most recent quarterly financial report.

That adds up to a sequential quarter-over-quarter growth rate of 13.6% on the top line.

We know this is an extremely intensive business in terms of cash from operations, which makes it unsurprising that the company has a strong balance sheet, with cash and marketable securities ($659.8M) far exceeding current obligations of $130.6M.

As we discussed in our introductory section, CGC just announced it has completed a legal transfer of cannabis products to a research partner in the United States. In terms of the action, shares of the stock have powered higher over the past week, rallying roughly 7% in that time on strong overall action.

And those gains have come on surging volume, with interest rising nearly 200% relative to its longer-term transaction volume averages. In other words, the spotlight is heating up in front of Canadian adult-use legalization.

“The United States presents a unique market opportunity and as the most established cannabis business in the world we, in turn, offer a unique ability to advance standardization, IP development, and clinical research that can improve the understanding and legal application of cannabis and cannabinoids,” said Mark Zekulin, President and Co-CEO, Canopy Growth. “By engaging in the market through federally legal means and with the right partners, we can create a US-based centre of expertise while also supporting our rapidly expanding global business.”

Moreover, it’s not surprising to see Canopy finding an advantaged market position once again.

Trading Symbol

OTC: MJMD

The Next Big Global Cannabis Trade




FEATURED STORIES

Business8 hours ago

Is it Time to Move Back into Hexo Corp (OTCMKTS:HYYDF)?

Hexo Corp (OTCMKTS:HYYDF) is one of the most interesting names in the cannabis space. There are only a few plays...

Business1 day ago

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Should Be on the Radar

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) shares closed last week by dipping under the key 50-day simple moving average to finish...

Business1 day ago

Will Auxly Cannabis Group Inc (OTCMKTS:CBWTF) Start to Play Catch-up?

Auxly Cannabis Group Inc (OTCMKTS:CBWTF) is an interesting play. The company has a massive stockpile of cash but hasn’t been...

Business1 day ago

Expansion Continues for Aphria Inc (OTCMKTS:APHQF), With Strong Catalysts Likely Ahead

Aphria Inc (OTCMKTS:APHQF) remains one our favorites primarily because it likely has some interesting catalysts ahead. It’s plausible to imagine...

Business2 days ago

What’s the Story Behind the Launch in Puration Inc (OTCMKTS:PURA) Shares?

Puration Inc (OTCMKTS:PURA) shares have been racing higher over the past month, and none of the catalysts contained in company...

Business2 days ago

How Medmen Enterprises Inc (OTCMKTS:MMNFF) is Positioned to Win on US Reform

Medmen Enterprises Inc (OTCMKTS:MMNFF) represents perhaps the cannabis company most likely to benefit the most from an eventual shift toward...

Business2 days ago

Hemp Inc (OTCMKTS:HEMP) Forges on as US Hemp Laws Progress

Hemp Inc (OTCMKTS:HEMP) recently announced that it applauds California’s commitment to agriculture, industrial hemp specifically, with the passing of SB...

Business3 days ago

Is New Age Beverages Corp (NASDAQ:NBEV) Setting Up for Some Interest From Above?

New Age Beverages Corp (NASDAQ:NBEV) is, as we see it, a very logical possibility for some kind of strategic interest,...

Business3 days ago

Why Aurora Cannabis Inc (OTCMKTS:ACBFF) is Set to Benefit from the Narrow US Market

Aurora Cannabis Inc (OTCMKTS:ACBFF) continues to be the top dog in the cannabis space as we see it. Capacity will...

Business4 days ago

Will Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Evolve From Prey to Predator?

Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) has an extremely strong balance sheet at this point, with cash levels at $261.8M...

Create a future where the human body can repair, restore, and rejuvenate itself

 

Trading Symbol

OTC: MJMD

The Next Big Global Cannabis Play