Canopy Growth stock (TSX:WEED) (NYSE:CGC) is currently selling for $51.89 CAD—up 0.78% at the time of writing.
This isn't Canopy's finest hour. Still reeling from the industry-wide sell-off, the stock has fought hard to climb back over $73—it's highest selling price to date, which it achieved just one day before cannabis became legal across Canada on October 17th.
Canopy Growth Stock
However, a 'second-wave' of legalization is set for 2019 and so begins the next focus for Canopy—edibles. Will this market bring further gains for Canopy Growth stock in 2019? More than likely it will, as excitement for this newly legalized market ramps up.
It may follow 2018's trend, where, cannabis companies—inclusive of Canopy Growth stock—made unprecedented gains in the months prior to legalization.
Canopy Stock: Preparation is Key
The federal government has said that"edibles containing cannabis and cannabis concentrates would be legal on or before October 17th, 2019."
Canopy Growth stock is prepared for this new market. The new products developed by Tweed, the cannabis brand owned by Canopy and based in Smiths Falls, are the next big opportunity.
"I think if you're not preparing things two years in advance, you're never ready," Linton said.
He furthered, "Right now, none of the chocolate or gummy bears or beverages can be prepared or sold, but we're doing experiments on how to make them."
Canopy has also been at the core of the cannabis drinks movement; Constellation Brands (NYSE:STZ) made an industry-first investment of $4 billion into the company back in August. The deal was the largest investment into a cannabis company yet. It gave surety to any skeptics that cannabis-infused drinks are going to be the next big thing.
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Canopy Growth Stock: Legalizing Edibles is Important
Not only lucrative, edibles and drinks are also important cannabis products to legalize. Because edibles, infused drinks, and vaping products remain illegal under Canada's current legislation, they dominate the black market. To drive out the black market, these products need to be available legally.
Demand is also a significant factor. Eating and drinking are more socially acceptable than smoking; as such there's potential that this market may actually be greater than the dried cannabis plant market.
As Bruce Linton, founder and co-CEO of Canopy Growth, puts it;
"Many people find it socially comfortable to have a beverage."
It's that simple. Will it be that simple for Canopy Growth stock though?
Featured Image: Depositphotos/© eightshot
